|Business Wire, Inc.|
9% increase in issued term life insurance policies
7% increase in new representatives obtaining a life insurance license
Net income of
Net operating income of
Completion of redundant reserve financing to facilitate
of 5.7 million shares from Warburg Pincus in
Throughout this document, we have retrospectively adjusted prior period numbers to reflect revised accounting standards related to costs associated with acquiring or renewing insurance contracts as described further under segment results.
- Recruiting of new representatives increased by 11% to 58,551 in the first quarter of 2012, compared with the same period a year ago. Recruiting strength in the first quarter led to a sequential increase over the fourth quarter, which is typically a slower recruiting quarter. New life licenses grew by 7% to 7,650, compared with the first quarter of 2011 but decreased by 6% from the fourth quarter of 2011 when licensing results benefited from the third quarter post-convention recruiting surge. The size of our life-licensed insurance sales force was 89,651 at
March 31, 2012down from 91,176 at December 31, 2011, primarily due to recruiting levels in the fourth quarter of 2011.
- Term life insurance policies issued increased 9% to 56,145 in the first quarter of 2012, compared with the year ago period primarily reflecting an increase in applications received and a higher rate of converting applications to issued policies with our new TermNow, rapid-issue term life insurance product. Sequentially, term life insurance policies issued in the first quarter of 2012 decreased 9% compared with the fourth quarter of 2011, largely reflecting fewer applications submitted during the typically slower holiday season. Term Life net premium revenue, excluding the first quarter of 2011 ceded premium recoveries, increased 22% to
$127.6 millionin the first quarter of 2012, compared with the first quarter a year ago and increased by 5% from the fourth quarter as we continue to build the Term Life business.
- Investment and Savings Products sales grew by 7% to
$1.19 billionin the first quarter of 2012 from the year ago quarter primarily driven by variable annuity sales as clients continued transfers of older variable annuity contracts to the current Prime Elite IV variable annuity that offers an attractive living benefit. Results also benefited from sales growth in our recently launched fixed indexed annuity and managed account products. Client asset values were generally flat at $36.30 billionat March 31, 2012relative to a year ago but increased 8% or $2.62 billioncompared with December 31, 2011, reflecting strong retirement savings sales typical of historical first quarter trends and improved market conditions. Investment and Savings Products sales increased 24%, or $231.9 million, in the first quarter of 2012 compared with the fourth quarter of 2011.