7 Insurers Release Q2 Results

A number of insurers have begun to release their financial results for Q2
2010. The following is a compilation of their announcements:

AEGON N.V.

AEGON has issued a release to announce its financial results for Q2 of 2010. The insurer reports that underlying earnings before tax increased to EUR 522 million in Q2, a significant improvement compared with the same period last year. This increase in earnings was due mainly to improved financial markets, strengthening of the U.S. dollar against the euro and growth of the business, while last year's earnings also had included several exceptional items.

In the Americas, underlying earnings totaled EUR 437 million, a 51% increase compared with last year, primarily the result of higher investment income, a recovery in equity markets and lower expenses.

Underlying earnings in the Netherlands came in strong at EUR 97 million. However, earnings declined as Q2 last year had included a one-time release in provisions of EUR 20 million. Results for Q2 of 2010 were also affected by lower investment income and the sale of AEGON's Dutch funeral insurance business.

In the United Kingdom, underlying earnings increased slightly to EUR 22 million as higher profits from annuities were partly offset by higher project-related expenses.

Underlying earnings from new markets declined to EUR 40 million. The inclusion of AEGON Asset Management was more than offset by lower results from Central & Eastern Europe and further investments in the company's operations in Asia.

Expenses for the holding company increased slightly in Q2 of 2010 to EUR 74 million, primarily a result of higher funding costs.

 

GAINSCO Inc.

GAINSCO Inc. announced net income for Q2 2010 of $1.8 million, or $0.38 per common share, basic and diluted. This compares to Q2 2009 net income of $1.6 million, or $0.34 per common share, basic and diluted. Net income for the six months ended June 30, 2010 was $3.7 million, or $0.78 per common share, basic and diluted. This compares to net income of $3.7 million for the six months ended June 30, 2009, or $0.76 per common share, basic and diluted.

Gross premiums written decreased approximately 24% during Q2 of 2010 and approximately 20% during the six months ended June 30, 2010, from gross premiums written in the comparable 2009 periods.

 

Kingsway Financial Services Inc.

Kingsway Financial Services Inc. announced its financial results for Q2 ended June 30, 2010. All amounts are in U.S. dollars unless indicated otherwise.

Kingsway reported a second quarter net loss of $18.5 million (net income of $5.6 year to date) or loss of $0.36 (income of $0.11 year to date) per share diluted. The book value has decreased from $3.28 per share at December 31, 2009 to $2.91 per share at June 30, 2010.

The Board of Directors has decided that a quarterly dividend will not be declared for Q2 of 2010.

 

National Planning Holdings Inc.

National Planning Holdings Inc. (NPH), one of the nation’s largest independent broker-dealer networks, announced that it booked record revenue of more than $342 million in the first half of 2010, a 20.4% increase over the first half of 2009. The four firms in the network generated more than $7.2 billion in gross product sales, a 4.6% increase over the prior year period.

NPH’s second-quarter revenue of more than $176 million is a quarterly record for the network, up 5.8% from the first quarter of 2010, while sales of nearly $3.7 billion rose 4.7% from the prior quarter. NPH has maintained a relatively consistent representative base over the past year, with slight decreases in the first half and second quarter.

NPH’s second-quarter results also compare favorably to Q2 of 2009, with an 18.6% increase in revenue and a 6.3% increase in sales.

“Our results during the first half of the year reflect NPH’s long-term approach to growing the business, as well as our continued commitment to helping advisers achieve sustainable growth in their practices,” said Jim Livingston, president and CEO of National Planning Holdings. “NPH has remained consistent in the key areas of representative support, technology development and operational efficiency. At the same time, we are flexible enough to adapt to the changes occurring in the industry and the overall economy. Achieving this balance has been vital to our success, and it will continue to shape the strategic direction of the network going forward.” 

 

Summit Financial Services Group Inc.

Summit Financial Services Group Inc. announced financial results for the three- and six month-periods ended June 30, 2010. For the three month period ended June 30, 2010, Summit reported revenues of approximately $15.2 million, which represented an increase of approximately $5.0 million, or approximately 50%, from the approximately $10.2 million in revenues reported for the three month period ended June 30, 2009. For Q2 2010, the Summit reported net income of approximately $295,000, or an increase of approximately 230% from net income of approximately $89,000 reported in Q2 2009.

For the six month period ended June 30, 2010, Summit reported revenues of approximately $30.3 million, which represented an increase of approximately $12.0 million, or approximately 66%, from the approximately $18.3 million in revenues reported for the six months ended June 30, 2009. For the first six months of 2010, Summit reported net income of approximately $159,000, compared with approximately $3,000 reported during the same time period in 2009.

"We believe that our revenue growth in 2010 when compared with 2009 was largely attributable to both our success in recruiting some of the finest advisors in the industry, as well as an overall improvement in investor confidence,” said Marshall Leeds, Summit 's chairman, CEO and president. “Additionally, we are pleased to report not only higher net income for both the three- and six-month periods, but higher EBITDA as well. For the three-month period, the Company generated EBITDA of approximately $767,000, as adjusted, and approximately $1,393,000, as adjusted, for the six month period."

 

Triad Guaranty Inc.

Triad Guaranty Inc. reported net income of $79.1 million for its second quarter ended June 30, 2010 compared to a net loss of $27.8 million for the first quarter of 2010 and a net loss of $359.4 million for Q2 of 2009. The 2010 second quarter diluted income per share was $5.24 compared to a diluted loss per share of $1.84 for Q1 2010 and a diluted loss per share of $23.91 for the Q2 2009.

The net income for the six months ended June 30, 2010 was $51.3 million compared to a net loss of $414.6 million for the six months ended June 30, 2009. The diluted income per share was $3.40 for the six months ended June 30, 2010 compared to a diluted loss per share of $27.65 for the six months ended June 30, 2009.

"We continued to see improvement in several key areas during Q2 of 2010, which allowed us to decrease the reserves held for existing defaults at June 30, 2010. Higher actual cures experienced during the first two quarters of 2010 caused us to adjust our reserve factors during Q2 for future cure rates on existing defaults,” said Ken Jones, president and CEO. “These adjustments, along with modestly higher rescission expectations, allowed us to reduce our estimated reserve for losses. The impact of the change in reserve factors on our second quarter financial results, coupled with an additional accrual of earned premiums during the quarter, were the primary drivers of our net income reported for the quarter."

 

Ullico Inc.

Ullico Inc., a multi-line holding company offering insurance and financial products and services, reported pre-tax operating income of $1.4 million for the quarter ended June 30, 2010, compared to a pre-tax operating loss of $3.5 million in the prior year's quarter. Net income for the current quarter was $0.2 million, compared to a net loss of $4.1 million in the prior year's quarter.

An increase in general expenses resulting from investments in new product and marketing initiatives reduced overall consolidated operating income.

The current quarter included a non-recurring loss of $4.7 million related to the settlement of legacy litigation matters. The quarter also includes the impact of an agreement in principle with the IRS related to refund claims filed for previous years. The agreement in principle resulted in additional interest income of $0.9 million, which is reported in operating income and a net income tax benefit of $2.0 million. The prior quarter results included a net non-recurring loss of $2.5 million related to the settlement of several legacy litigation matters.

Total premium and fee revenue for the quarter was $78.0 million compared to $70.8 million in the prior year's quarter, an increase of 10%.

Ed McElroy, Ullico CEO, stated, "We continued our strong revenue growth momentum in Q2 and remained profitable despite significant non-recurring charges. We are pleased that the focused management of our business once again generated positive earnings, and we believe that continued tailoring of our solutions for the union workplace will lead to sustained growth and improved profitability over the long term."

For reprint and licensing requests for this article, click here.
Core systems Customer experience Policy adminstration
MORE FROM DIGITAL INSURANCE