8 Insurers Report Q3 Earnings
The Hartford, Allianz Life, State Auto and five others released their third quarter results.
Insurance Networking News, November 13, 2012
A number of insurers, including The Hartford, Allianz Life, ACE Limited, Alleghany Corp., Baldwin & Lyons Inc., Cincinnati Financial Corp., Enstar, and State Auto Financial Corp., have begun to release their financial results for Q3 2012. The following is a compilation of their announcements.
ACE Limited reported Q3 net income of $640 million, or $1.86 per share, compared with a net loss of $39 million, or $0.11 per share, for the same quarter last year. From the prior quarter, book value increased 4.7 percent to $79.36, and tangible-book value increased 5.0 percent to $64.67. Operating return on equity for the quarter was 11.5 percent; and the P&C combined ratio for the quarter was 92.0 percent.
Other Q3 2012 earnings highlights:
• Total net premiums written increased 8.6 percent
• P&C net premiums written increased 9.6 percent
• P&C underwriting income was $335 million compared with $391 million in the same quarter last year
• The current accident year P&C combined ratio excluding catastrophe losses and crop insurance results was 90.5 percent compared with 91.9 percent last year.
“Premium revenue growth in the quarter was the strongest so far this year with total company net premiums written up 8.6 percent, or 11.1 percent when adjusted for the impact of foreign exchange,” said Evan Greenberg, chairman and CEO. “We continue to benefit from the favorable P&C pricing trend in North America, where we recorded strong double-digit premium growth, and internationally, excluding the impact of foreign exchange, we also registered good growth across a broad spectrum of property and casualty, accident and health, and personal lines businesses, particularly in Asia and Latin America.
Alleghany reported Q3 2012 net earnings before merger related items and income taxes of $224.2 million, compared with $33.7 for the same quarter last year. Net investment income for the quarter was $90.5 million, compared with $22.1 million for the same quarter last year.
“Growth in Alleghany’s book value in the third quarter and year to date reflects the benefits of the transatlantic merger, favorable underwriting results at Transatlantic and RSUI, and a 5.1 percent total return on our investment portfolio,” said Weston Hicks, president and CEO. “We continue to see good premium growth at RSUI and in Capitol Transamerica’s continuing business driven by increased submissions coupled with modest overall rate increases. We believe we have also started to see the beginning of a much needed recovery in the California workers’ compensation market.”
As of September 30, 2012, stockholder’s equity per common share was $388.67, an increase of 13.6 percent from stockholders’ equity per common share of $342.12 at 2011 year-end; that reflects 8,360,959 shares issued in connection with the merger between Alleghany and Transatlantic Holdings Inc., which closed on March 6, 2012.
Allianz Life Insurance Company of North America
Allianz Life reported an operating profit of $559 million through the third quarter of 2012 compared to an operating profit of $379 million through the same period in last year, reflecting diligent pricing, spread management and expense discipline, the company said. Gains on the disposal of bonds also contributed to the increase in operating profit.
"The year‐to‐date operating profit is strong, but challenges posed by low interest rates are significant and demand innovative and sustainable product offerings to achieve future success," said Walter White, president and CEO. "We are actively managing the current environment and have launched new products and enhanced our existing products to lay the groundwork for continued growth in current and new markets."
Total assets under management increased 12 percent to $103.3 billion at September 30, 2012, compared with $92.4 billion at September 30, 2011. The company attributed the increase to strong returns on investments. Premiums decreased to $7.4 billion through the third quarter of 2012, compared to $8.3 billion for the same period last year. Fixed annuity premiums decreased 16 percent to $4.2 billion compared to $5.1 billion in 2011; variable annuity premium decreased 6 percent to $2.7 billion from $2.9 billion in 2011. Life insurance sales increased 109 percent to $48 million through the third quarter from $23 million for the same period in 2011.
Baldwin & Lyons Inc.
Baldwin & Lyons reported Q3 net income of $11.7 million, or $.78 per share, compared to a net loss of $13.0 million, or $.87 per share, for the same quarter last year. After-tax operating income for Q3 2012 was $6.0 million, or $.40 per share, compared to a loss of $1.6 million, or $.11 per share, for the same quarter last year. Net investment gains for the quarter were $5.7 million after tax, or $.38 per share, compared to losses of $11.3 million in the same quarter last year.
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