Mixed fortunes for insurers in Q4, 2015
Earnings reports from large insurers for the fourth quarter and the whole of 2015 are being published and reveal some mixed results. Prudential Financial reported higher after-tax operating income for the full year but lower Q4 results than a year earlier. However, the underlying details are more positive with U.S. individual life sales, based on annualized new business premiums, of $179 million, up 38 per cent from the year-ago quarter.
At Primerica, operating revenues increased 3 per cent to $357.5 million and net operating income increased 2 per cent to $50.2 million from the prior year period. The full-year results for operating income and net operating income were up 5 per cent year-over-year.
Zurich reported a bigger loss than had been expected in the fourth quarter, dropping $424 million compared to a profit of $860 million a year earlier. Analysts polled by Bloomberg expected a $261 million loss. The company is currently in the process of reshaping its general insurance business
following the failed takeover of RSA last year.
Manulife to reward healthier Canadians through new program
Life insurer Manulife will be introducing life insurance which rewards people for healthy living. The program will be operated following an agreement with The Vitality Group. The two firms have a similar arrangement in the US through Manulife’s John Hancock business which has been successful in helping policyholders make healthier life choices.
“With Vitality, Manulife is changing the whole notion of life insurance in Canada,” said Marianne Harrison, President and Chief Executive Officer, Manulife Canada.
The program gives customers rewards that can be used at retailers and those partnerships will be developed during the first half of this year.
Lloyds of London fears damage to its $43 billion insurance market
The UK is expected to hold a referendum later this year on whether or not to remain in the European Union. Lloyds of London has now made its views clear warning that an exit, or ‘Brexit’ as it’s been dubbed, could damage the insurance market’s world-leading position. In a speech Thursday, Lloyd’s chief risk officer Sean McGovern will say that the U$43 billion-a-year market is stronger as part of the EU. The FT reports that he will highlight the role that being part of the EU has played in the success story of Lloyd’s and that membership will be key to its growth amid growing worldwide competition.