A number of insurers have released their financial results for Q4 2011 as well as the full year. The following is a compilation of recent announcements (
Argo Group International Holdings, Ltd. today reported net income of $1.4 million and a net loss of $82.4 million for the quarter and year ended Dec. 31, 2011, respectively, compared to net income of $12.8 million and $82.6 million for the same periods in 2010.
Fourth quarter financial highlights include: Revenue was $318.6 million, an increase of $2.1 million over the fourth quarter of 2010; Gross written premiums were $341.8 million, an increase of $52.8 million over the fourth quarter of 2010; Net income was $1.4 million or $0.05 per diluted share compared to $12.8 million or $0.44 per diluted share in the fourth quarter of 2010; Estimated pre-tax catastrophe losses net of reinsurance and estimated reinstatement premiums were $36.1 million compared to $16.6 million in the fourth quarter of 2010. Included in the current quarter’s total are $27.5 million of losses related to the Thailand Floods; The combined ratio was 112.4 percent compared to 103.6 percent in the fourth quarter of 2010. The impact of catastrophe activity on the combined ratio was 13.4 loss ratio points compared to 5.8 loss ratio points in the fourth quarter of 2010.
Full-year financial highlights for 2011 include: Total revenue was $1.258 billion compared to $1.385 billion in 2010; Gross written premiums were $1.545 billion compared to $1.527 billion in 2010; Estimated pre-tax catastrophe losses net of reinsurance and estimated reinstatement premiums and aggregate reinsurance cover losses were $207.8 million and approximately $10.0 million, respectively. Catastrophe losses net of reinsurance and estimated reinstatement premiums were $73.3 million in 2010; The combined ratio was 119.9 percent compared to 103.2 percent in 2010. The impact of catastrophe activity on the combined ratio, including losses related to the aggregate reinsurance covers, was 20.3 loss ratio points compared to 6.1 loss ratio points in 2010.
CNA Financial Corporation today announced fourth quarter 2011 results, which included net operating income of $191 million, or $0.71 per common share, and net income of $190 million, or $0.70 per common share. Full-year 2011 net operating income and net income were $614 million, or $2.28 per common share.
Property/casualty operations’ combined ratio for the fourth quarter and full year 2011 were 87.2 percent and 98.4 percent respectively. Book value per common share was $42.92 at Dec. 31, 2011, as compared to $40.70 at Dec. 31, 2010.
Net operating income for the three months ended Dec. 31, 2011 decreased $135 million as compared with the same period in 2010. Net operating income for core property/casualty operations decreased $19 million, primarily due to decreased net investment income, partially offset by increased favorable net prior year development. For the three months ended Dec. 31, 2011, catastrophe losses were $11 million after-tax as compared to $14 million after-tax for the same period in 2010. Property/casualty operations produced fourth quarter combined ratios of 87.2 percent and 89.6 percent in 2011 and 2010. Excluding the impacts of catastrophe losses and development, the company’s combined ratio improved to 102.2 percent from 102.8 percent for the same comparable periods.
FBL Financial Group, Inc. today reported a net loss for the fourth quarter of 2011 of $60.3 million, or $1.96 per diluted common share, due to one-time charges relating to the previously announced sale of its subsidiary, EquiTrust Life Insurance Company. This loss compares to net income of $51.6 million, or $1.67 per diluted common share, for the fourth quarter of 2010.
Operating income totaled $21.8 million, or $0.70 per common share, for the fourth quarter of 2011, compared to $21.7 million, or $0.70 per common share, for the fourth quarter of 2010. Operating income differs from the GAAP measure, net income attributable to FBL Financial Group, in that it excludes the impact of realized gains and losses on investments, the change in net unrealized gains and losses on derivatives, the net impact of discontinued operations and the loss on debt redemption.
Premiums and product charges for the fourth quarter of 2011 totaled $66.8 million compared to $64.7 million in the fourth quarter of 2010. Both interest sensitive product charges and traditional life insurance premiums increased three percent during the quarter.
Premiums collected in the fourth quarter of 2011 totaled $144.2 million compared to $156.0 million in the fourth quarter of 2010. Life insurance premiums collected increased six percent, while annuity premiums collected declined 13 percent, reflecting the suspension of certain annuity products due to the low interest rate environment.
Net investment income in the fourth quarter of 2011 totaled $86.0 million compared to $82.3 million in the fourth quarter of 2010.
Consolidated revenue in the fourth quarter of 2011 was $2.9 billion, an increase of four percent from the fourth quarter of 2010, or three percent on an underlying basis. Underlying revenue measures the change in revenue using consistent currency exchange rates, excluding the impact of certain items such as acquisitions, dispositions and transfers among businesses. Operating income rose 20 percent to $391 million, compared with $325 million in the prior year period. Adjusted operating income, which excludes noteworthy items as presented in the attached supplemental schedules, rose eight percent in the fourth quarter to $409 million.
For the full year of 2011, revenue increased nine percent to $11.5 billion, or five percent on an underlying basis. Operating income was $1.6 billion, compared with $939 million in the prior year. Net income was $993 million, or $1.79 per share, compared with $855 million, or $1.55 per share, in the prior year. Adjusted earnings per share for 2011 increased to $1.77 from $1.64. Results for 2011 include expense of $72 million from the early extinguishment of debt in July.
Risk and insurance services revenue increased six percent to $1.6 billion in the fourth quarter of 2011, or four percent on an underlying basis. Operating income increased 35 percent to $304 million, compared with $225 million. Adjusted operating income in the quarter increased 11 percent to $288 million from $259 million. For the year, risk and insurance services revenue was $6.3 billion, an increase of nine percent from the prior year, and five percent on an underlying basis. Adjusted operating income rose 12 percent to $1.2 billion from $1.1 billion.
MetLife, Inc. today reported fourth quarter 2011 net income of $1.1 billion, or $1.06 per share, and operating earnings of $1.4 billion, or $1.31 per share. MetLife today also reported full year 2011 net income of $6.7 billion, or $6.29 per share, and operating earnings of $5.4 billion, or $5.02 per share.
Fourth quarter financial highlights include: Operating earnings of $1.4 billion, or $1.31 per share, up 17 percent over the fourth quarter of 2010; Total International sales up 12 percent compared with combined MetLife and Alico fourth quarter 2010 results; Premiums, fees & other revenues of $11.5 billion, up 23 percent over the fourth quarter of 2010, largely due to the acquisition of Alico as well as growth in the United States; Book value per share of $54.59, up 24 percent from year-end 2010.
Full year financial highlights for 2011 include: Operating earnings of $5.4 billion, or $5.02 per share, up 40 percent over 2010; Premiums, fees & other revenues of $45.7 billion, up 32 percent over 2010; Total assets of nearly $800 billion, up 9 percent from year-end 2010.
Montpelier Re Holdings Ltd. reported an operating loss for the quarter of $0.27 per common share ($16 million) and net income was $0.40 per common share ($25 million), each expressed after preferred share dividends. The net income for the quarter includes $30 million of net realized and unrealized gains from investments and foreign exchange and an $11 million net gain from the sale of Montpelier U.S. Insurance Company (“MUSIC”). The operating loss for the full year was $2.50 per common share ($154 million) and the net loss was $2.01 per common share ($124 million). The net loss for the year includes $19 million of net realized and unrealized gains from investments and foreign exchange and the aforementioned gain from the sale of MUSIC.
The loss ratio for the quarter was 81 percent, which includes the net financial impact of $66 million of catastrophe losses, including $40 million from the Thailand floods and $26 million from other catastrophe events occurring during 2011, including those occurring in the fourth quarter. These losses were partially offset by $18 million of favorable prior year loss reserve development. The combined ratio was 117 percent for the quarter. The loss ratio for the year was 98 percent and the combined ratio was 131 percent.
Net investment income was $17 million for the fourth quarter and $69 million for the full year. The total return on the investment portfolio was 1.6 percent for the quarter and 3.0 percent for the full year.
Prudential Financial, Inc. recently reported a net income of $3.531 billion ($7.22 per Common share) for the year ended Dec. 31, 2011, compared to $2.714 billion ($5.75 per Common share) for 2010. After-tax adjusted operating income was $3.134 billion ($6.41 per Common share) for 2011, compared to $2.916 billion ($6.17 per Common share) for 2010.
For the fourth quarter of 2011, net income amounted to $606 million ($1.26 per Common share) compared to $213 million (45 cents per Common share) for the fourth quarter of 2010. After-tax adjusted operating income for the fourth quarter of 2011 amounted to $948 million ($1.97 per Common share) compared to $848 million ($1.76 per Common share) for the fourth quarter of 2010.
Operational highlights from the fourth quarter include: Individual annuity account values increased 7 percent from a year earlier; gross sales of $4.4 billion and net sales of $2.9 billion for the quarter; Retirement account values, $229.5 billion at Dec. 31, 2011, up 12 percent from a year earlier; total Retirement gross deposits and sales of $14.7 billion and net additions of $6.7 billion for the quarter; Individual Life annualized new business premiums of $75 million, up 12 percent from a year ago; Group Insurance annualized new business premiums of $86 million, compared to $109 million a year ago.
State Auto Financial Corporation recently reported a fourth quarter 2011 net income of $100.6 million, or $2.49 per diluted share, versus $37.6 million, or $0.94 per diluted share, for the fourth quarter of 2010. Net income from operations per diluted share for the fourth quarter 2011 was $2.30, versus $0.78 for the same 2010 period.
State Auto’s GAAP combined ratio for the fourth quarter 2011 was 94.0 versus 97.6 for the fourth quarter of 2010. Catastrophe losses during the fourth quarter of 2011, including prior accident period development, favorably impacted the 59.7 loss ratio by 0.5 points, or $1.8 million. For the same 2010 period, catastrophe losses accounted for 2.3 points of the total 62.6 loss ratio points, or $7.7 million.
Net written premium for the fourth quarter of 2011 decreased 54.3 percent from the same period in 2010. The homeowners’ quota share reinsurance arrangement and the year-end pooling change collectively contributed to the entire amount of this decline, as the ceded unearned premium reserve amounts transferred under these two arrangements are reflected as reductions to net written premium. Excluding the impact of these actions, net written premium for the fourth quarter of 2011 increased 12.8 percent from the same period in 2010, with the specialty insurance segment contributing 14.6 points to the 12.8 point overall growth.
Unum Group today reported a net loss of $425.4 million ($1.45 per diluted common share) for the fourth quarter of 2011, compared to net income of $225.8 million ($0.71 per diluted common share) for the fourth quarter of 2010, due largely to an after-tax charge of $561.2 million the company took following its strategic review of the long-term care business and decision to discontinue new group long-term care sales as well as an after-tax reserve charge of $119.3 million in the individual disability closed block.
Unum concluded its strategic review of its long-term care business and announced that it will discontinue new sales of group long-term care contracts during the first quarter of 2012 and reclassify the long-term care line of business from the Unum US segment to the Closed Block segment. The results for the fourth quarter of 2011 include an after-tax charge of $561.2 million ($1.92 per diluted common share) to reflect an increase to long-term care policy and claim reserves of $573.6 million before tax and an impairment of long-term care deferred acquisition costs of $289.8 million before tax.
The results for the fourth quarter of 2011 also include net realized after-tax investment gains of $4.8 million ($0.02 per diluted common share), compared to $17.2 million ($0.05 per diluted common share) in the fourth quarter of 2010. Net realized after-tax investment gains for the fourth quarter of 2011 include an after-tax loss of $9.8 million resulting from changes in the fair value of an embedded derivative in a modified coinsurance contract, compared to an after-tax gain of $16.1 million in the fourth quarter of 2010.
Reported net income from continuing operations for the quarter ended Dec. 31, 2011 was $39 million, or $0.22 per diluted share, compared with $98 million, or $0.57 per diluted share, in the same period a year ago. Reported net income from continuing operations in 2011 was negatively impacted by a $50 million (or $0.20 per diluted share) charge related to the 2011 operational review, and other items, as detailed later in the release.
Adjusted net income from continuing operations for the quarter ended Dec. 31, 2011 was $81 million, or $0.46 per diluted share, compared with $98 million, or $0.57 per diluted share, in the same period a year ago.
Total reported revenues for the quarter ended Dec. 31, 2011 were $825 million compared with $833 million for the same period last year, a decrease of 1 percent. Investment income was $8 million in the fourth quarter of 2011, compared to $9 million in the fourth quarter of 2010.
Reported net income from continuing operations for the year ended Dec. 31, 2011 was $218 million, or $1.24 per diluted share, compared with $455 million, or $2.66 per diluted share, in 2010.
Total reported revenues for 2011 were $3.45 billion compared with $3.33 billion for 2010, an increase of 4 percent.
Reported operating margin was 17.1 percent for 2011 compared with 22.6 percent for 2010. Adjusted operating margin was 22.5 percent for 2011 compared with 23.0 percent in the prior year.
