Q4 Financials from MetLife, Willis and 8 Other Insurers

CNA, Marsh & McLennan and Montpelier Re also among those to release 2011 figures in the past week.

Insurance Networking News, February 16, 2012

Justin Stephani

A number of insurers have released their financial results for Q4 2011 as well as the full year. The following is a compilation of recent announcements (click here for last week's compilation):

Argo Group

Argo Group International Holdings, Ltd. today reported net income of $1.4 million and a net loss of $82.4 million for the quarter and year ended Dec. 31, 2011, respectively, compared to net income of $12.8 million and $82.6 million for the same periods in 2010.

Fourth quarter financial highlights include: Revenue was $318.6 million, an increase of $2.1 million over the fourth quarter of 2010; Gross written premiums were $341.8 million, an increase of $52.8 million over the fourth quarter of 2010; Net income was $1.4 million or $0.05 per diluted share compared to $12.8 million or $0.44 per diluted share in the fourth quarter of 2010; Estimated pre-tax catastrophe losses net of reinsurance and estimated reinstatement premiums were $36.1 million compared to $16.6 million in the fourth quarter of 2010. Included in the current quarter’s total are $27.5 million of losses related to the Thailand Floods; The combined ratio was 112.4 percent compared to 103.6 percent in the fourth quarter of 2010. The impact of catastrophe activity on the combined ratio was 13.4 loss ratio points compared to 5.8 loss ratio points in the fourth quarter of 2010.

Full-year financial highlights for 2011 include: Total revenue was $1.258 billion compared to $1.385 billion in 2010; Gross written premiums were $1.545 billion compared to $1.527 billion in 2010; Estimated pre-tax catastrophe losses net of reinsurance and estimated reinstatement premiums and aggregate reinsurance cover losses were $207.8 million and approximately $10.0 million, respectively. Catastrophe losses net of reinsurance and estimated reinstatement premiums were $73.3 million in 2010; The combined ratio was 119.9 percent compared to 103.2 percent in 2010. The impact of catastrophe activity on the combined ratio, including losses related to the aggregate reinsurance covers, was 20.3 loss ratio points compared to 6.1 loss ratio points in 2010.

CNA

CNA Financial Corporation today announced fourth quarter 2011 results, which included net operating income of $191 million, or $0.71 per common share, and net income of $190 million, or $0.70 per common share. Full-year 2011 net operating income and net income were $614 million, or $2.28 per common share.

Property/casualty operations’ combined ratio for the fourth quarter and full year 2011 were 87.2 percent and 98.4 percent respectively. Book value per common share was $42.92 at Dec. 31, 2011, as compared to $40.70 at Dec. 31, 2010.

Net operating income for the three months ended Dec. 31, 2011 decreased $135 million as compared with the same period in 2010. Net operating income for core property/casualty operations decreased $19 million, primarily due to decreased net investment income, partially offset by increased favorable net prior year development. For the three months ended Dec. 31, 2011, catastrophe losses were $11 million after-tax as compared to $14 million after-tax for the same period in 2010. Property/casualty operations produced fourth quarter combined ratios of 87.2 percent and 89.6 percent in 2011 and 2010. Excluding the impacts of catastrophe losses and development, the company’s combined ratio improved to 102.2 percent from 102.8 percent for the same comparable periods.

FBL Financial Group, Inc.

FBL Financial Group, Inc. today reported a net loss for the fourth quarter of 2011 of $60.3 million, or $1.96 per diluted common share, due to one-time charges relating to the previously announced sale of its subsidiary, EquiTrust Life Insurance Company. This loss compares to net income of $51.6 million, or $1.67 per diluted common share, for the fourth quarter of 2010.

Operating income totaled $21.8 million, or $0.70 per common share, for the fourth quarter of 2011, compared to $21.7 million, or $0.70 per common share, for the fourth quarter of 2010. Operating income differs from the GAAP measure, net income attributable to FBL Financial Group, in that it excludes the impact of realized gains and losses on investments, the change in net unrealized gains and losses on derivatives, the net impact of discontinued operations and the loss on debt redemption.

Premiums and product charges for the fourth quarter of 2011 totaled $66.8 million compared to $64.7 million in the fourth quarter of 2010. Both interest sensitive product charges and traditional life insurance premiums increased three percent during the quarter.

Premiums collected in the fourth quarter of 2011 totaled $144.2 million compared to $156.0 million in the fourth quarter of 2010. Life insurance premiums collected increased six percent, while annuity premiums collected declined 13 percent, reflecting the suspension of certain annuity products due to the low interest rate environment.

Net investment income in the fourth quarter of 2011 totaled $86.0 million compared to $82.3 million in the fourth quarter of 2010.

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