A number of insurers have released financial results for Q1 2012. The following is a compilation of their announcements. To read last week's roundup,
Aetna reported Q1 2012 earnings of $477.4 million, or $1.34 per share, a decline of 15 percent compared to $560.2 million, or $1.14 per share reported in the same quarter last year, excluding the impact of favorable prior-years reserve development in 2011.
Net income was $511.0 million, or $1.43 per share, including $.09 per share of net realized capital gains, a decrease from $586.0 million, or $1.50 per share, including $.07 per share of net realized capital gains in Q1 2011.
Q1 2012 revenue was $8864.1 million, a 6 percent increase compared with $8348.1 last year.
"Our first-quarter results are a good start to the year, and we expect continued strong performance in 2012," said Mark Bertolini, Aetna chairman, CEO and president. "We're balancing growth and profitability, and are confident of our ability to increase membership over the course of this year to 18.2 million medical members.”
Q1 2012 earnings for health care were $468.9 million, compared with $443.4 for the same quarter last year, excluding the impact of favorable prior-years reserve development for the corresponding period in 2011. The Q1 2012 increase was primarily due to higher Medicare Advantage underwriting margins.
Q1 2012 revenues for health care were $8.20 billion, compared with $7.71 for the same quarter last year. The increase was is due to higher premium primarily from higher Commercial premium yields, higher Medicare premium from Medicare Advantage membership growth and the addition of Genworth's Medicare Supplement business, and higher fees and other revenue primarily from the inclusion of revenues from our other 2011 acquisitions.
Group insurance results (group life, disability and long-term care): Q1 2012 earnings of $40.9 million, compared with $42.9 million for the same quarter last year. Q1 2012 net income was $48.8 million, compared with $47.1 million for the same quarter last year. Q1 2012 revenue was $532.0 million, compared with $504.4 million for the first quarter last year. Total revenue, which includes net realized capital gains, was $544.2 million in 2012 and $510.9 million in 2011.
Total Q1 revenues for Aflac increased 21.9 percent to $ 6,240 million from $ 5,117 million for the same quarter last year, reflecting the benefit from a stronger yen/dollar exchange rate. Net earnings were $785 million, or $1.68 per diluted share, compared with $389 million, or $.83 per share, a year ago.
Q1 2012 operating earnings were $814 million, compared with $765 million for the same quarter last year, and operating earnings per diluted share rose 7.4 percent to $1.74, compared with $1.62 a year ago; operating earnings benefited by $23 million, or $.05 per share, from the increase in investment income. The company announced it will pay a second-quarter dividend of $.33 per share on June 1, 2012.
For Aflac Japan total revenues in yen were up 7.8 percent for Q1 2012; premium income in yen rose 7.8 percent, and net investment income increased 8.7 percent, benefiting from the receipt of a deferred coupon. The Q1 2012 pretax operating profit margin decreased to 21.3 percent from 22.3 percent, reflecting a higher benefit ratio partially offset by a lower expense ratio. Pretax operating earnings in yen increased 3.2 percent.
The average yen/dollar exchange rate was 79.59, or 3.4 percent stronger for the quarter than the average rate of 82.32 in Q1 2011. Aflac Japan produced significant sales growth; new annualized premium sales rose 53.8 percent to a record ¥52.4 billion for the quarter. In dollar terms, new annualized premium sales were $659 million.
In the United States total revenues increase 5.2 percent to $1.4 billion for Q1 2012. Premium income increased 5.2 percent to $1.2 billion, and net investment income increased 5.5 percent to $152 million. The pretax operating profit margin increased to 19.6 percent from 19.1 percent a year ago. Pretax operating earnings were $271 million, an increase of 8.1 percent for the quarter. Total new annualized premium sales increased 4.5 percent to $351 million; sales benefited from strong performance by the broker channel
Aspen Insurance Holdings reported Q1 2012 after tax net income of $78.7 million, or $0.99 per diluted share, compared with a net loss for the same quarter last year of $152.8 million, or $2.25 per diluted share in the same quarter last year.
Net investment income for Q1 2012 declined 5.6 percent to $52.4 million from $55.5 million in the same quarter last year.
Gross written premiums for Q1 2012 were $782.1 million, compared with $671.3 million for the same quarter last year, an increase of 16.5 percent. Net earned premiums for the quarter were $495.4 million, compared with $452.4 million for the quarter last year, an increase of 9.5 percent. Net earned premiums were $495.4 million for the quarter, up 9.5 percent compared with $452.4 million in the same quarter last year.
“Our overall results this quarter are encouraging on a number of fronts,” said Chris O’Kane, Aspen CEO. “The quarter saw strong performance in reinsurance whereas insurance results were impacted by the Costa Concordia event. Net income for the quarter included $16.9 million, or $0.23 per diluted share, of after tax catastrophe losses attributable to the severe storms in February and March.
Everest Re Group reported net income of $304.7 million, or $5.68 per diluted common share, for Q1 2012, compared to a net loss of $315.9 million, or $5.81 per common share, for the same period last year.
Excluding realized capital gains and losses, Q1 after-tax operating income was $239.9 million, or $4.48 per diluted common share, compared to an after-tax operating loss of $323.6 million, or $5.95 per common share, for the same period last year.
"We are extremely pleased with our results this quarter, having generated comprehensive income in excess of $400 million, an annualized operating ROE of 17 percent, and growth in book value per share, adjusted for dividends, of 7 percent in the quarter,” said Joseph V. Taranto, chairman and CEO. “Our underwriting portfolio, particularly for catastrophe exposed risks, has seen strong upward rate momentum, which is adding meaningfully to the risk-adjusted returns we are able to achieve. We expect market momentum to continue and we remain well positioned to capitalize on opportunities as they arise."
Gross written premiums decreased 2 percent to $1.05 billion, compared with the same period last year. However, adjusted for reinstatement premiums and foreign currency fluctuations, gross written premiums increased quarter-over-quarter more than 1 percent, with reinsurance premiums up 9 percent.
The loss ratio was 60.4 percent for the quarter, compared with 123.6 percent for the same period last year. Net investment income for Q1 2012 was $152.4 million, down compared with $178.7 million for the same period last year. For the quarter, net after-tax realized capital gains totaled $64.8 million, and unrealized capital gains were $80.4 million. Cash flow from operations remained strong at $165.7 million for the quarter.
During the quarter, the Company repurchased 1.4 million of its common shares at an average price of $90.73 and a total cost of$125.0 million. Shareholders' equity ended the quarter at $6.33 billion, up from $6.07 billion at year end 2011.
MetLife reported a Q1 2012 net loss of $174 million, or $0.16 per share. The loss was driven by derivative net losses of $1.3 billion, after tax, which were largely due to increases in interest rates and MetLife’s lower credit spreads during the quarter.
MetLife also reported first-quarter 2012 operating earnings of $1.5 billion, or $1.37 EPS, an 11-percent increase from $1.3 billion in earnings, or $1.23 EPS in the same quarter last year.
Premiums, fees and other revenues increased 7 percent to $ 11,605 million, from $10,832 million in the same quarter last year. Net investment income increased to $5.1 billion for the quarter, a 6-percent increase over the same quarter last year.
“Year over year, we grew premiums, fees and other revenues by 7 percent and increased operating earnings per share by 11 percent,” said Steven Kandarian, chairman, president and CEO. “These results reflect top-line growth in all of MetLife’s global regions, sound fundamentals and the core earnings power of our diversified businesses.”
OneBeacon Insurance reported Q1 2012 total revenues of $317.4 million, compared with $290 million for the same quarter last year. For Q1 2012, comprehensive income and net income were both $44 million, and operating income was $25 million, or $0.26 per share; operating income is a non-GAAP financial measure.
Earned premiums rose to $272.8 million, from $245.1 million in the same quarter last year. Pre-tax income from operations for the quarter was $55.1 million, an increase from $52.7 million in the same quarter last year.
"We had a strong start to the year, reflecting excellent specialty underwriting results and solid investment returns, partially offset by increased reserves in runoff,” said Mike Miller, CEO of OneBeacon. “Our Specialty written premiums grew by 17 percent to $303 million, and we were pleased to see continued pricing momentum, along with favorable retention and new business trends. During the quarter we launched our newest specialty business -- OneBeacon Program Group -- and we closed the previously announced sale of AutoOne. We are optimistic about improving market conditions and will continue to look for new specialty opportunities."
In January, OneBeacon sold subsidiary OneBeacon Holdings (Luxembourg) S.a r.l. to a subsidiary of White Mountains. The sale resulted in a $14 million capital gain, and increased OneBeacon's book value per share by $0.14. Book value per share was $11.93, an increase of 5.0 percent for the first quarter, including dividends.
First quarter net written premiums for Specialty Insurance Operations were $303 million, an increase of 17 percent compared with $258 million for Q1 2011 and reflects growth across business units.
OneBeacon's Q1 total return on invested assets was 1.7 percent, compared to 1.4 percent for the same quarter last year and includes net realized and unrealized investment gains of $30 million and net investment income of $15 million, compared to net realized and unrealized investment gains of $23 million and net investment income of $21 million for the first quarter of 2011.
Principal Financial Group reported Q1 2012 operating earnings of $213.0 million, or $0.70 earnings per diluted share, compared to $219.8 million, or $0.68 EPS, for the same quarter last year. Q1 operating revenues was $2,107.4 million, compared with $2,047.5 million for the same period last year.
“The Principal ended the first quarter with record assets under management, contributing to a solid start to 2012,” said Larry Zimpleman, chairman, president and CEO. “We had strong investment performance and impressive sales and net cash flows across Full Service Accumulation, Principal Funds, Principal International and Principal Global Investors.”
Net income available to common stockholders for the quarter was $201.5 million, or $0.66 per diluted share, compared to $182.0 million, or $0.56 per diluted share for the same quarter last year.
Other highlights from the press release:
• Strong sales in the company’s three key U.S. retirement and investor services accumulation products in the first quarter, with $3.2 billion for full service accumulation, a record $3.7 billion for principal funds and $587 million for individual annuities.
• Net cash flows of $2.0 billion for full service accumulation and a record $1.5 billion for Principal Funds.
• Unaffiliated net cash flows of $3.3 billion contributed to record unaffiliated assets under management of $90.7 billion for principal global investors.
“In the first quarter we announced the acquisition of a majority stake in Claritas, a leading retail mutual fund and asset management company based in Brazil, which was our fourth international acquisition in the last 12 months,” said Terry Lillis, SVP and CFO. “Additionally in the first quarter, we authorized a $100 million share repurchase and paid our first quarterly dividend to shareholders. With $1.6 billion of excess capital at the end of first quarter, an improving investment portfolio and strong ongoing capital generation, we continue to have financial flexibility to invest in our businesses and return more capital to shareholders.”
WellPoint announced that Q1 2012 net income was $856.5 million, or $2.53 per share, a decrease compared with $926.6 million, or $2.44 per share in the same quarter last year. Net investment gains for the quarter were $62.4 million after-tax, or approximately $0.19 per share, compared with $35.6 million after-tax, or approximately $0.09 per share in 2011.
Excluding the net investment gains, adjusted net income was $2.34 per share in the first quarter of 2012, compared with adjusted net income of $2.35 per share
“Our first quarter results exceeded our expectations and were driven by improved performance in the senior business and continued strong operating results in our Commercial segment,” said Angela Braly, chair, president and CEO. “We also executed well in the capital management areas of our company,” adding the company is creating a lower cost operating model, in terms of medical costs and administrative expense, with best-in-class service for our customers.
Wayne DeVeydt, EVP and CFO said operating cash flow was slightly favorable to WellPoint’s first quarter plan; days in claims payable rose 1.2 days and claim inventory levels remained low. “These metrics support the quality of our first quarter performance, as we are continuing to make investments for future growth,” he said. “We are increasing our full year adjusted earnings per share guidance to at least $7.65.”
Other highlights:
• Membership decreased 525,000 members, or 1.5 percent, to 33.7 million from approximately 34.2 million at March 31, 2011
• Operating revenue totaled $15.2 billion for Q1, an increase of $495.4 million, or 3.4 percent, from approximately $14.7 billion the same quarter last year; $266 million of the increase was related to the inclusion of CareMore business this quarter.
To read last week's roundup,
