A number of insurers have released their financial results for Q4 2011 as well as the full year. The following is a compilation of their announcements:
For the fourth quarter ending Dec. 31, 2011, P&C net premiums written and earned increased five percent and seven percent, respectively. For the year, P&C net premiums written and earned increased 12 percent and 14 percent, respectively. For the fourth quarter ending Dec. 31, 2011, total company net premiums written and earned increased six percent and seven percent, respectively, and for the year, increased 12 percent and 14 percent, respectively.
For the fourth quarter ending Dec. 31, 2011, total pre-tax catastrophe losses including reinstatement premiums were $155 million, of which $117 million was associated with the floods in Thailand, compared with $50 million for the fourth quarter of 2010. The catastrophe losses represent 4.6 percentage points of the combined ratio. For the year, total pre-tax catastrophe losses including reinstatement premiums were $899 million compared with $401 million in 2010.
The P&C combined ratio was 92.9 percent for the fourth quarter ending Dec. 31, 2011, compared to 90.3 percent last year. The P&C combined ratio for the year was 94.6 percent, compared with 90.2 percent in 2010. P&C underwriting income was $240 million compared with $310 million in 2010. For the year, P&C underwriting income was $731 million compared with $1.2 billion in 2010.
Net investment income for the quarter increased 6 percent to $565 million due to higher invested assets and higher distributions from private equity funds, partially offset by lower new money rates.
Aetna announced fourth-quarter 2011 operating earnings of $354.3 million, or $.97 per share, a per share increase of 54 percent over 2010. Full-year 2011 operating earnings for Aetna were $1.97 billion, or $5.17 per share, which represents a per share increase of 40 percent over 2010. Net income for the fourth quarter was $372.6 million, or $1.02 per share, including $.05 per share of net realized capital gains. Full-year net income was $1.99 billion, or $5.22 per share, a per share increase of 25 percent over 2010.
Net Income was $372.6 million for the fourth quarter of 2011 compared with $215.6 million for the fourth quarter of 2010. For full-year 2011, net income increased 12 percent to $1.99 billion, compared to $1.77 billion in 2010.
Total company revenues for the fourth quarter of 2011 were $8.54 billion, compared with $8.51 billion for the fourth quarter of 2010. For full-year 2011, revenues were $33.61 billion compared with $34.02 billion for 2010.
Operating Expenses were $1.83 billion for the fourth quarter of 2011. The operating expense ratio was 21.5 percent in the fourth quarter of 2011 and 21.2 percent in the fourth quarter of 2010. Including net realized capital gains and other items, these ratios were 21.4 percent and 22.1 percent for the fourth quarters of 2011 and 2010, respectively.
For full-year 2011, the operating expense ratio increased to 19.8 percent from 19.3 percent in 2010 primarily reflecting the addition of fee-based businesses with operating expenses higher than the company average. Including net realized capital gains and other items, these ratios were 20.1 percent and 19.0 percent for the full years 2011 and 2010, respectively.
Net income for 2011 was $788 million, or $1.51 per diluted share, compared to $928 million in 2010. The decrease was primarily due to lower Property-Liability operating income partially offset by capital gains realized in 2011 versus capital losses realized in 2010 and an increase in Allstate Financial operating income. Total operating income was $689 million, or $1.32 per share, compared to $1.5 billion, or $2.84 per diluted share in 2010. The decline in operating income was driven by a substantial increase in catastrophe losses experienced in 2011 compared to 2010.
For the fourth quarter of 2011, net income was $724 million, or $1.43 per diluted share, an improvement of $428 million, or $0.88 per diluted share, from the prior year’s fourth quarter.
The recorded combined ratio for the 2011 fourth quarter was 90.7 compared to 100.8 in the prior year period. During the quarter we had $66 million of catastrophe losses, including 19 catastrophe events estimated to cost $216 million, that were substantially offset by favorable reserve re-estimates of $150 million, $118 million of which related to prior 2011 events. In the fourth quarter of 2010 we recorded $537 million in catastrophe losses.
For the fourth quarter ending Dec. 31, 2011, gross premiums written increased 5 percent to $667 million and 9 percent for the year to $4.1 billion. Net premiums earned increased 12 percent in the quarter to $847 million and 12 percent for the year to $3.3 billion. Combined ratios of 100.5 percent and 112.3 percent for the quarter and year, respectively, compared to 85.6 percent and 88.7 percent in 2010.
Major catastrophe-related losses in the quarter included: Estimated pre-tax net losses (net of reinstatement premiums) of $64 million in relation to the Thai flooding; and a $75 million aggregate increase in our pre-tax net loss estimate (net of reinstatement premiums) for catastrophe events that occurred in the first three quarters of 2011, including $32 million in relation to the Japanese earthquake and tsunami and $31 million in relation to the February New Zealand earthquake.
Net favorable prior year reserve development of $78 million in the quarter, pre-tax, benefiting the combined ratio by 9.2 points, compared with $81 million in the prior year quarter, benefiting the combined ratio by 10.7 points; Net investment income for the quarter declined 5 percent to $102 million; Net cash flows from operations were $199 million for the quarter and $1.2 billion for the year; Operating income of $67 million for the quarter, representing an annualized operating return on average common equity of 5.5 percent.
Cigna reported full year 2011 shareholders’ net income1 of $1.33 billion, or $4.84 per share, compared to $1.35 billion, or $4.89 per share, for full year 2010. Cigna's adjusted income from operations for full year 2011 was $1.43 billion, or $5.21 per share, compared with $1.28 billion, or $4.64 per share, for full year 2010, representing an increase of 12 percent per share. The 2011 adjusted income from operations of $5.21 per share includes the dilutive effect of $0.03 per share for the equity financing of the HealthSpring acquisition. For the fourth quarter of 2011, adjusted income from operations was $310 million, or $1.11 per share, compared with $313 million, or $1.15 per share, for the fourth quarter of 2010.
Consolidated revenues for full year 2011 increased to $22.0 billion, highlighted by 6 percent growth in premiums and fees for Health Care8, and 32 percent growth in premiums and fees in International, reflecting continued success in our targeted customer segments.
Cigna completed the acquisition of HealthSpring, Inc. on January 31, 2012, expanding Cigna's diversified portfolio into the growing seniors and Medicare market. The acquisition adds approximately 365,000 Medicare Advantage customers and a large stand-alone Medicare prescription drug business with approximately 650,000 customers.
Everest Re Group, Ltd. reported fourth quarter 2011 net income of $41.0 million, compared to $302.5 million for the same period last year. Gross written premiums were $1.1 billion for the quarter, an increase of 10 percent when compared to the same quarter in 2010. For the year ended December 31, 2011, the net loss was $80.5 million, or $1.49 per common share, compared to net income of $610.8 million, or $10.70 per diluted common share, for 2010.
Pre-tax catastrophe losses, net of reinstatement premiums, were $370.7 million in the quarter compared to $52.6 million in the fourth quarter of 2010. As previously announced, the current quarter losses include $218.0 million for the Thailand floods, increased reported loss estimates on the earthquakes in Japan and New Zealand that occurred earlier in the year, and an additional catastrophe reserve provision of $50.0 million for all 2011 events due to their complexity and the systemic late reporting that has resulted. For the full year, net after-tax catastrophe losses amounted to $959.7 million in 2011.
The loss ratio was 101.4 percent for the quarter and 90.9 percent for the year, compared to 70.6 percent and 74.9 percent, respectively, for the same periods in 2010. For the full year, excluding catastrophe losses noted above, related reinstatement premiums, and nominal prior year loss development, the attritional loss ratio was trending positive at 60.0 percent compared to 61.2 percent for 2010 reflecting portfolio changes and improved rates.
Net investment income declined to $126.3 million for the quarter and $620.0 million for the year compared to $184.9 million and $653.5 million, respectively, for 2010. Eliminating the impact of limited partnership results, investment income was down 3 percent for the year due to lower re-investment rates.
The Hartford reported net income of $127 million for the fourth quarter of 2011, compared with $619 million in the fourth quarter of 2010. Core earnings in the fourth quarter of 2011 were $339 million, or $0.69 per diluted share, compared with $529 million, or $1.06 per diluted share, in the fourth quarter of 2010.
"The Hartford made good progress in the fourth quarter," said The Hartford's Chairman, President and CEO Liam E. McGee. "P&C Commercial pricing continued to firm and margins improved across the board, including a 7 percent rate increase in Middle Market. Margins are also expanding in Consumer Markets as we shift to a more preferred book of business. Wealth Management is focused on increasing returns and managing risk in this low-rate environment."
Excluding catastrophes and prior year development, the combined ratio was 101.5 percent, up 6.5 points in the fourth quarter of 2011 compared with 95.0 percent in the fourth quarter of 2010.
The combined ratio, excluding catastrophes and prior year development, for the fourth quarter of 2011 included current accident year reserve strengthening of $87 million before tax ($57 million after tax), compared with $44 million before tax ($29 million after tax) in the prior year period.
The current year reserve strengthening in both periods was primarily related to workers' compensation. Catastrophe losses in the current quarter totaled $15 million before tax ($10 million after tax), or 1.0 points on the P&C commercial combined ratio, compared with $18 million before tax ($12 million after tax), or 1.2 points in the fourth quarter of 2010.
Despite exceptional major losses and burdens from the financial crisis, Munich Re’s preliminary figures show a profit of €0.71bn for 2011 (previous year: €2.43bn). The profit for the fourth quarter totaled €0.63bn (0.48bn). Subject to the approval of the Supervisory Board and the Annual General Meeting, the dividend is to remain stable at €6.25 per share.
Munich Re estimates its claims costs from the earthquakes in Japan and New Zealand at around €1.5bn for each event. In addition, there was the worsening of the sovereign debt crisis in the eurozone. CFO Jörg Schneider summed up the provisional figures: “We have never experienced a year like 2011 before – extreme burdens from natural catastrophes combined with the financial crisis, which flared up again after the slight recovery in 2009 and 2010. Given the huge strains these placed on results, it is a notable achievement that we still posted a profit of €0.71bn.” Jörg Schneider continued: “With the proposed dividend of €6.25 per share, we are maintaining our attractive dividend policy.” There have not been any cuts in Munich Re’s dividend since 1969.
Gross premiums written by the Group in 2011 rose almost 9 percent to €49.6bn (45.5bn). Group equity increased by around €0.3bn to €23.3bn (Dec. 31, 2010: €23.0bn), rising by €1.1bn in the fourth quarter (30 September 2011: €22.2bn), chiefly thanks to the quarterly profit of €0.63bn and the depreciation of the euro.
The Group’s investment result decreased by 22 percent to €6.8bn (8.6bn).
Fourth Quarter net income available to common stockholders of $164.0 million for the three months ended Dec. 31, 2011 reflects net realized capital losses of $53.4 million, which include: $28.6 million of losses related to credit gains and losses on sales and permanent impairments of fixed maturity securities, including $22.6 million of losses on commercial mortgage backed securities; and $0.9 million of losses on commercial mortgage whole loans.
Full-year net income available to common stockholders of $682.0 million for the 12 months ended Dec. 31, 2011 reflects net realized capital losses of $148.3 million, which include: $119.7 million of losses related to credit gains and losses on sales and permanent impairments of fixed maturity securities, including $90.5 million of losses on commercial mortgage backed securities; and $12.1 million of losses on commercial mortgage whole loans.
Net income also reflects a $79.2 million after-tax loss resulting from the impact of a court ruling regarding some uncertain tax positions and the estimated obligation associated with the New York State Insurance Department’s liquidation plan for Executive Life Insurance Company of New York, both of which were accrued in third quarter 2011.
The U.S. Individual Life and Group Insurance division reported adjusted operating income of $201 million for the fourth quarter of 2011, compared to $200 million in the year-ago quarter.
The Individual Life segment reported adjusted operating income of $146 million for the current quarter, compared to $131 million in the year-ago quarter. The increase came primarily from adjustments of net amortization of deferred policy acquisition costs and other items based on separate account performance in relation to our assumptions, which had a favorable impact of approximately $20 million on current quarter results and about $10 million on results for the year-ago quarter. In addition, current quarter results benefited from a greater contribution from underwriting results, which reflected growth of universal life and term insurance business in force.
The Group Insurance segment reported adjusted operating income of $55 million in the current quarter, compared to $69 million in the year-ago quarter. The decrease reflected a higher level of expenses in the current quarter, a lower contribution from investment results, and less favorable group disability claims experience than that of the year-ago quarter. These items were partly offset by a greater contribution from group life underwriting results in the current quarter, reflecting growth of business in force and more favorable claims experience.
W. R. Berkley Corporation reported net income for the fourth quarter of 2011 of $118 million, or 82 cents per share, compared with $127 million, or 85 cents per share, for the fourth quarter of 2010.
Gross premiums written for the fourth quarter 2011 were $1.26 billion, compared to the fourth quarter, 2010, $1.06 billion. Net premiums written saw a year-to-year increase of 19 percent, from $919 million to $1.09 billion.
Net income for 2011 was $395 million, compared to 2010’s total of $449 million. Meanwhile average renewal rates increased 4.2 percent in 2011, and the company’s GAAP combined ratio was 96.8 percent.
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