Torchmark, a Texas-based holding company for middle market life insurance carriers, reported third quarter net income of $145.4 million. This was up 9.8 percent from the year-ago period, the company said.
Third-quarter net income per share was $1.15, an increase of 15 percent from the year-ago period. The company also reported net operating income of $135.6 million, an increase of 4 percent over the year-ago period.
Net operating income adjusted for investment gains came to $1.08 per share, beating the estimates of $1.06 per share from 12 analysts surveyed by Zacks Investment Research.
Torchmark specializes in selling life and supplemental health insurance to middle-income buyers. Products are marketed through direct response, career and independent insurance agencies.
The company distributes life and health products through American Income Life, National Income Life, Global Life, Family Heritage Life and Liberty National Life.
Life insurance accounts for 63 percent of the company’s premium revenue. Health insurance accounts for 28 percent of premium revenue and Medicare Part D for 9 percent of total premium revenue, the company said.
Total life premiums from all distribution channels rose to $518.9 million, 6 percent over the year-ago period. Health insurance premiums rose to $229.1 million, an increase of 9 percent over the year-ago quarter. However, Medicare Part D premiums shrank to $77.4 million, a drop of 14 percent from the year-ago period, the company also reported.
Expenses rose 8 percent to $49 million compared with the year-ago quarter. This was due to higher information technology costs and employee and pension benefit costs.
Company executives are scheduled to hold a conference call with analysts at 11 a.m. EDT Tuesday.
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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