Fidelity & Guaranty Life first quarter fiscal year net income soared 125 percent to $108 million on the strength of life and annuity sales and investment income.
The company said it had profit of $1.85 per share. Earnings, adjusted for non-recurring gains, came to 70 cents per share.
“We've delivered another strong quarter and fiscal 2017 is off to a good start with solid increases in sales, net income, net investment income, adjusted operating income and assets under management," Chris Littlefield, president and CEO of Fidelity & Guaranty Life, said in a news release.
"As we look to the future, we expect to benefit if interest rates continue to rise and if the regulatory environment becomes more favorable under President Trump's administration,” he said.
The fiscal year begins Oct. 1.
For the fiscal first quarter ending Dec. 31, fixed indexed annuity (FIA) sales were $551 million, a 26 percent increase compared to the year-ago period, the company said.
Higher FIA sales were due to the company nurturing “protective partnerships” with independent marketing organizations (IMOs), Molly Carman, head of investor relations, said in a conference call.
Sales of multi-year guarantee annuities (MYGAs) rose to $97 million compared to $52 million in the same period last year, the company reported.
Indexed universal life (IUL) sales rose 31 percent in the quarter to $17 million, compared with the year-ago period.
Higher IUL sales represent the fruits of the company’s efforts to expand IUL distribution, Carman said.
After a brief pause in IUL sales in the wake of Actuarial Guideline 49 governing illustration scenarios, analysts expect IUL sales to rise again.
Net investment income rose 8 percent to $240 million for the quarter compared to the year-ago quarter, the company said.
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].
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