Voya Financial, Prudential, MetLife Miss 3Q Estimates – InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading INN Weekly Newsletter Featured Story
Topics
    • Life Insurance
    • Annuity News
    • Health/Employee Benefits
    • Property and Casualty
    • Advisor News
    • Washington Wire
    • Regulation News
    • Sponsored Content
    • Webinars
    • Monthly Focus
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • Magazine
  • Free Newsletters
  • Insider
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Newsletters

Get Social

  • Facebook
  • Twitter
  • LinkedIn
Advisor News
INN Weekly Newsletter Featured Story RSS Get our newsletter
Order Prints
November 5, 2015 INN Weekly Newsletter Featured Story No comments
Share
Share
Tweet
Email

Voya Financial, Prudential, MetLife Miss 3Q Estimates

By Cyril Tuohy InsuranceNewsNet

Voya Financial Inc., the New York-based annuity, retirement, insurance and employee benefits giant, reported third-quarter net income of $40.3 million, a 90 percent drop from the $406 million profit the company reported in the year-ago period.

Net income per share diluted was 18 cents compared to $1.59 per share diluted in the year-ago period, the company also said Wednesday.

Adjusted for nonrecurring costs, earnings came to 42 cents per share. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of 79 cents per share.

The company also reported third quarter revenue of $210 million, which also fell short of Wall Street estimates. Thirteen analysts surveyed by Zacks expected revenue of $326.7 million.

“Despite the market volatility we saw during the quarter, our most equity market sensitive businesses — Retirement and Investment Management — performed well,” said chairman and CEO Rodney O. Martin Jr., in a news release.

The company’s annuity segment reported adjusted operating earnings of $63 million in the third quarter compared with $61 million in the year-ago period, the company said.

But in the individual life segment, the company reported third quarter adjusted operating earnings of $19 million, compared to $47 million in the year-ago period due to higher mortality claims severity.

Prudential Financial Inc.

Prudential Financial Inc., the Newark, N.J.-based global life, annuity and retirement services company, reported third-quarter net income of $1.46 billion Wednesday, compared with $465 million in the year-ago period.

Net income per share diluted for the quarter was $3.16. Adjusted for nonrecurring costs, operating income was $1.1 billion, compared to $1 billion in the year-ago period, the company reported. Operating income per share was $2.40, missing Wall Street expectations.

The average estimate of 10 analysts surveyed by Zacks called for operating income of $2.43 per share.

Third-quarter revenue of $9.53 billion also fell short of expectations. Three analysts surveyed by Zacks were looking for revenue of $11.1 billion.

Pre-tax operating income in each of the company’s individual annuities, retirement, asset management and individual life segments was lower in the quarter compared to the year-ago period, the company said.

Prudential’s individual annuities business is “showing success with its diversification strategy,” as the bulk of the company’s annuity sales don’t retain living benefit risk linked to the performance of stock markets, said Chairman and CEO John Strangfeld said in a news release.

MetLife Inc.

Third-quarter net income at New York-based MetLife Inc. was $1.2 billion, a 42 percent drop from the year-ago period, the company reported.

Net income per share dropped 41 percent to $1.06, the company said Wednesday.

Adjusted for nonrecurring gains, operating income was 62 cents per share, a drop of 61 percent from the year-ago period.

The average estimate of 10 analysts surveyed by Zacks called for operating income of 76 cents per share, Automated Insights reported.

Third-quarter revenue of $15.7 billion missed Wall Street expectations by $1.65 billion, Automated Insights said.

“Macroeconomic factors, including foreign currency, equity market and interest rates, as well as a previously announced non-cash tax-related charges, negatively impacted MetLife’s third quarter results,” said Steven A. Kandarian, chairman, president and CEO of MetLife, in a news release.

In the company’s retail segment revenue from premiums, fees and other sources was $3.3 billion, a drop of 5 percent from the year-ago period due to lower sales of single premium immediate annuities (SPIA) and lower annuity balances, the company said.

Retail life insurance sales rose 36 percent compared to the year-ago period, and retail annuity sales rose 20 percent, also over the year-ago period, the company said.

American Equity Investment Holding Co.

American Equity Investment Holding Co., a top seller of fixed index annuities, reported third-quarter net income of $97.3 million compared to $67.8 million in the year-ago period, on record sales of $1.8 billion.

Third-quarter net income per share diluted was $1.19 compared to 85 cents in the year-ago period, the company also reported Wednesday.

Operating income for the third quarter dropped 28 percent to $45.9 million, said the company, based in West Des Moines, Iowa. Operating income per share diluted was 56 cents per share.

Third-quarter sales were $1.8 billion, a rise of 70 percent from the year-ago period, and a 2 percent increase compared to the second quarter, the company said. American Equity is $200 million short of its $5.1 billion sales record set in 2011.

President and CEO John Matovina hinted at a record-breaking year.

“Our product and service mix has never been more competitive, and we expect strong sales in the fourth quarter,” said Matovina, in a news release. “Those sales may get an additional boost from impending changes to our lifetime income benefit riders. “

Agents are motived to sell still more annuity contracts for the remainder of the year because changes to mortality rates used to establish reserves in 2016 will mean less generous benefits attached to policy riders written after 2015, Matovina said.

American Equity sells fixed indexed and fixed rate annuity products, as well as life insurance through American Equity Life, American Equity of New York and Eagle Life Insurance Co. The company also sells its products to National Guard and firefighter associations.

InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at [email protected].

© Entire contents copyright 2015 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Older

FBL Financial Profits Shrivel 12% In 3Q

Newer

How Agents Are Making It Big On The Internet

Advisor News

  • U.S. markets close flat as more positive inflation data rolls in
  • 69% of Americans concerned about their current financial situation
  • Expand your Social Security knowledge with these four terms
  • FINANCIAL FOCUS: Are you properly insured?
  • Liz Weston: 3 ways to fight inflation and win the long game
More Advisor News

Annuity News

  • National Western Life introduces new fixed indexed annuity, NWL New Frontiers
  • Jackson National announces second quarter 2022 results
  • Brighthouse Financial adds to Shield Level annuity suite with new product
  • Prudential FlexGuard reaches $10B total sales milestone at record pace
  • Retirees can rely on annuities as a source of guaranteed income for life
More Annuity News

Health/Employee Benefits News

  • UnitedHealthcare introduces new business unit Surest
  • Texas lawmakers ask feds to reconsider Medicaid expansion proposal
  • Plan to help poor Mississippians with health insurance stripped from latest federal bill
  • Giannis Antetokounmpo invests in telehealth company
  • Drug companies are warning that pricing reform spells doom. Don't fall for it
More Health/Employee Benefits News

Life Insurance

  • Alex Murdaugh petitions to delay Mallory Beach trial amid murder charges
  • Sales of life combination products rebound in 2021, LIMRA reports
  • Integrity Marketing Group acquires Richman Insurance Agency
  • How to get the most out of Life Insurance Awareness Month
  • Life application activity down in July, MIB Index reports
More Life Insurance

- Presented By -

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

FEATURED OFFERS

Get Linked INN to your industry Connect with INN on LinkedIn to be first on all the news and insights that matter to your industry.

Press ReleasesAll press releases

  • National Western Life introduces newest fixed indexed annuity, NWL® New Frontiers
  • CybeReady Supports Security Defenses with CISO Toolkit
  • Life and Disability Income Insurance Products from MassMutual Now Available on iPipeline®’s End-to-End Digital Platform
  • Business on the Go with The Crump Mobile App
  • iPipeline® Provides Advisors Excel with Unified Path Toward Accessing Core Data Analytics in Financial Services
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty
  • Advisor News
  • Washington Wire
  • Regulation News
  • Sponsored Content
  • Webinars
  • Monthly Focus

Top Sections

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits News
  • Property and Casualty News
  • AdvisorNews
  • Washington Wire
  • Insurance Webinars

Our Company

  • About
  • Editorial Staff
  • Magazine
  • Write for INN
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2022 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.