7 Insurers Release Q2 Results
AEGON, Kingsway Financial and National Planning Holdings issue financial statements.
Insurance Networking News, August 18, 2010
A number of insurers have begun to release their financial results for Q2
2010. The following is a compilation of their announcements:
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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. 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.”
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