Earnings Document
For Immediate Release İ
Second Quarter Results Summary*
- Net income of
$370 million , or$0.48 per share, compared to net income of$881 million , or$1.08 per share, in the second quarter of 2022. - Adjusted earnings of
$1.5 billion , or$1.94 per share, compared to adjusted earnings of$1.7 billion , or$2.13 per share, in the second quarter of 2022. - Book value of
$34.92 per share, down 7 percent from$37.52 per share atJune 30, 2022 . - Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of
$53.55 per share, up 2 percent from$52.30 per share atJune 30, 2022 . - Retuon equity (ROE) of 5.4 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 14.6 percent.
- Holding company cash and liquid assets of
$4.2 billion atJune 30, 2023 , which is above the target cash buffer of$3.0 -$4.0 billion .
Commenting on the company's results,
*Long-Duration Targeted Improvements (LDTI)
Financial results presented in this news release reflect LDTI accounting, pursuant to Financial Accounting Standards Board Accounting Standards Update No. 2018-12, which became effective on
Page 1 of 24
Second Quarter 2023 Summary
($ in millions, except per share data)
Premiums, fees and other revenues
Net investment income
Net investment gains (losses)
Net derivative gains (losses)
Total revenues
Adjusted premiums, fees and other revenues
Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT)
Market risk benefit remeasurement gains (losses)
Net income (loss)
Net income (loss) per share
Adjusted earnings
Adjusted earnings per share
Adjusted earnings, excluding total notable items
Adjusted earnings, excluding total notable items per share
Three months ended
2023 2022 Change
|
|
|
|
|
5,072 |
3,583 |
42% |
|
(1,039) |
(682) |
- (970)
|
$ |
16,623 |
$ |
15,474 |
|||
|
$ |
13,594 |
$ |
13,495 |
1% |
||
|
$ |
11,570 |
$ |
10,931 |
6% |
||
|
$ |
817 |
$ |
757 |
|||
|
$ |
370 |
$ |
881 |
(58)% |
||
|
$ |
0.48 |
$ |
1.08 |
(56)% |
||
|
$ |
1,492 |
$ |
1,738 |
(14)% |
||
|
$ |
1.94 |
$ |
2.13 |
(9)% |
||
|
$ |
1,492 |
$ |
1,661 |
(10)% |
||
|
$ |
1.94 |
$ |
2.04 |
(5)% |
||
|
Book value per share |
$ |
34.92 |
$ |
37.52 |
(7)% |
|
Book value per share, excluding AOCI other than FCTA |
$ |
53.55 |
$ |
52.30 |
2% |
Expense ratio
Direct expense ratio, excluding total notable items related to direct expenses and PRT
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT
ROE
Adjusted ROE, excluding AOCI other than FCTA
Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA)
17.7%
12.2%
20.6%
5.4%
14.6%
14.6%
16.5%
12.2%
19.8%
10.3%
16.4%
15.7%
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAP and Other Financial Disclosures" below and in the tables that accompany this news release.
Supplemental slides for the second quarter of 2023, titled "2Q23 Supplemental Slides," are available on the
Page 2 of 24
Total Company Discussion
Net investment income was
Net investment losses were
Net income was
Adjusted Earnings by Segment Summary*
|
Three Months Ended |
||
|
|
||
|
Change from |
||
|
prior-year |
||
|
period (on a |
||
|
Change from |
constant |
|
|
currency |
||
|
Segment |
prior-year period |
basis) |
|
|
1% |
|
|
|
(11)% |
(9)% |
|
|
(13)% |
(21)% |
|
|
6% |
15% |
|
|
(45)% |
|
*The percentages in this table are on a reported and constant currency basis.
Business Discussions
All comparisons of the results for the second quarter of 2023 in the business discussions that follow are with the second quarter of 2022, unless otherwise noted. There were no notable items in the second quarter of 2023, as indicated in the notable items table which follows the Business Discussions section of this release.
Page 3 of 24
|
($ in millions) |
Three Months Ended |
Three Months Ended |
Change |
|
|
|
||
|
Adjusted earnings |
|
|
1% |
|
Adjusted premiums, fees and other |
|
|
1% |
|
revenues |
|||
|
Adjusted premiums, fees and other |
|
|
10% |
|
revenues, excluding PRT |
|||
|
Notable item(s) |
|
|
- Adjusted earnings were
$789 million , up 1 percent, primarily driven by higher recurring interest margins and volume growth, partially offset by less favorable underwriting margins and variable expenses. - Adjusted premiums, fees and other revenues were
$8.8 billion , up 1 percent, primarily driven by growth in Group Benefits and strong structured settlement sales in RIS, partially offset by higher pension risk transfer sales in the prior-year period.
Group Benefits
|
($ in millions) |
Three Months Ended |
Three Months Ended |
Change |
|
|
|
||
|
Adjusted earnings |
|
|
(8)% |
|
Adjusted premiums, fees and other |
|
|
4% |
|
revenues |
|||
|
Notable item(s) |
|
|
- Adjusted earnings were
$372 million , down 8 percent, primarily driven by less favorable underwriting margins and variable expenses, partially offset by volume growth. - Adjusted premiums, fees and other revenues were
$6.0 billion , up 4 percent, driven by solid underlying growth across most products, including voluntary. - Sales were up 13 percent year-to-date, driven by strong growth across all market segments.
Page 4 of 24
Retirement and Income Solutions
|
($ in millions) |
Three Months Ended |
Three Months Ended |
Change |
|
|
|
||
|
Adjusted earnings |
|
|
11% |
|
Adjusted premiums, fees and other |
|
|
(7)% |
|
revenues |
|||
|
Adjusted premiums, fees and other |
|
|
73% |
|
revenues, excluding PRT |
|||
|
Notable item(s) |
|
|
- Adjusted earnings were
$417 million , up 11 percent, largely driven by higher recurring interest margins and volume growth, partially offset by lower variable investment income. - Adjusted premiums, fees and other revenues were
$2.8 billion , down 7 percent, as a result of pension risk transfer sales of$2.0 billion compared to$2.6 billion in the prior-year period. - Excluding pension risk transfers, adjusted premiums, fees and other revenues were
$799 million , up 73 percent, primarily driven by strong structured settlement sales and growth inUK longevity reinsurance. - Sales were down 28 percent year-to-date, primarily due to higher stable value sales in the prior-year period, partially offset by strong structured settlement sales in the current-year period.
|
($ in millions) |
Three Months Ended |
Three Months Ended |
Change |
|
|
|
||
|
Adjusted earnings |
|
|
(11)% |
|
Adjusted earnings (constant |
|
|
(9)% |
|
currency) |
|||
|
Adjusted premiums, fees and other |
|
|
(6)% |
|
revenues |
|||
|
Notable item(s) |
|
|
|
|
|
|
|
2% |
|
management (at amortized cost) |
|||
- Adjusted earnings were
$431 million , down 11 percent on a reported basis, and down 9 percent on a constant currency basis, largely driven by lower variable investment income. - Adjusted premiums, fees and other revenues were
$1.7 billion , down 6 percent, and down 1 percent on a constant currency basis. Asia general account assets under management (at amortized cost) were$125.3 billion , up 2 percent, and up 5 percent on a constant currency basis.- Sales were
$622 million , up 34 percent on a constant currency basis, driven by strong sales across the region, particularly inJapan .
Page 5 of 24
Attachments
Disclaimer


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