Hits (Mostly) and Misses in 2Q Earnings

The two-week quarterly earnings reporting period for the nation’s major life and retirement insurers finds most of them exceeded expectations.

It was a generally upbeat second-quarter earnings season ending June 30. Many major insurers beat Wall Street analysts’ estimates by handy margins.

The summaries of earnings results are generated by Automated Insights and distributed by the Associated Press.

Hit: Lincoln National

Lincoln National reported second-quarter net income of $411 million.

The Radnor, Pa.-based company had profit of $1.81 per share. Earnings, adjusted for non-recurring costs, were $1.85 per share.

The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.73 per share.

The insurance and retirement business posted revenue of $3.58 billion in the period.

Company shares climbed about 11 percent from the beginning of the year through Aug. 2, in line with the Standard & Poor's 500.

Hit: MetLife

MetLife reported second-quarter profit of $884 million.

The New York-based company had net income of 77 cents per share. Earnings, adjusted for non-recurring costs, came to $1.30 per share.

The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.28 per share.

MetLife posted revenue of $17.25 billion and adjusted revenue came to $17.58 billion.
Shares rose about 3 percent from the beginning of the year to Aug. 2.

Hit: American Equity Investment Life

American Equity Investment Life Holding Co. reported second-quarter profit of $26.9 million.

On a per-share basis, the West Des Moines, Iowa-based company said it had profit of 30 cents.

Earnings, adjusted for one-time gains and costs, were 71 cents per share.

The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 59 cents per share.

The underwriter posted revenue of $819.1 million in the period. Adjusted revenue was $493.5 million, also surpassing Street forecasts. Three analysts surveyed by Zacks expected $484.8 million.

Year to date ending Aug. 2, American Equity shares have increased about 19 percent.

Hit: Principal Financial

Principal Financial Group Inc. reported second-quarter net income of $309.5 million.

The Des Moines, Iowa-based company said it had profit of $1.06 per share. Earnings, adjusted for investment costs, came to $1.31 per share.

The results shot past Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.22 per share.

The company posted revenue of $3.18 billion in the period. Its adjusted revenue was $3.27 billion.

Company shares have increased 15 percent since the beginning of the year and ending July 27, while the Standard & Poor's 500 index has increased 11 percent.

Hit: Torchmark Corp.

Torchmark Corp. reported second-quarter earnings of $140 million.

The McKinney, Texas-based company said it had net income of $1.18 per share. Earnings, adjusted for non-recurring costs, came to $1.19 per share.

The results surpassed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.17 per share.

The life and health insurer posted revenue of $1.03 billion in the period.

Year to date ending July 27, Torchmark shares have increased roughly 6 percent.

Hit: American Financial Group

American Financial Group reported second-quarter net income of $145 million.

The Cincinnati-based company said it had net income of $1.61 per share.

The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.30 per share.

The insurer posted revenue of $1.65 billion in the second quarter. Its adjusted revenue was $1.58 billion.

As of Aug. 1, American Financial shares have increased about 16 percent since the beginning of the year.

Hit: CNO Financial

CNO Financial Group reported second-quarter profit of $83.4 million.

The Carmel, Ind. holding company said it had net income of 48 cents per share. Earnings, adjusted for non-recurring gains, came to 45 cents per share.

The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 37 cents per share.

The insurer posted revenue of $1.06 billion in the period.

Year to date ending July 26, CNO shares have increased 14 percent.

Miss: Voya Financial

Voya Financial reported second-quarter earnings of $167.2 million.

The New York-based company said it had net income of 89 cents per share. Earnings, adjusted for non-recurring gains, were 67 cents per share.

The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 85 cents per share.

The company posted revenue of $2.59 billion in the period.

Its adjusted revenue was $272.9 million, which also did not meet Street forecasts. Twelve analysts surveyed by Zacks expected $318.8 million.

Voya shares have risen about 1 percent since the beginning of the year to Aug. 1.

Miss: Prudential Financial

Prudential Financial reported second-quarter profit of $491 million.

On a per-share basis, the Newark, N.J.-based company said it had profit of $1.12. Earnings, adjusted for non-recurring costs, were $2.09 per share.

The results did not meet Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $2.70 per share.

The financial services company posted revenue of $13.44 billion in the period. Its adjusted revenue was $13.03 billion.

Ending on Aug. 2, Prudential shares have climbed 11 percent this year, in-line with the Standard & Poor's 500 index.

FBL Financial Posts Revenue of $189M

FBL Financial Group Inc. reported second-quarter profit of $32.3 million.

The West Des Moines, Iowa-based company said it had profit of $1.29 per share. Earnings, adjusted for investment gains, were $1.23 per share.

The parent company of Farm Bureau Life Insurance posted revenue of $189 million in the second quarter.

Sending the beginning of the year and ending Aug. 3, FBL Financial shares have fallen 14 percent.

A consensus estimate from analysts was not available.

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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Cyril Tuohy is a writer based in Pennsylvania. He has covered the financial services industry for more than 15 years. He can be reached at [email protected].