) reported third quarter 2013 net operating income of $1.43 per
share which was up 10.9% year over year.
Total insurance premium at Torchmark increased 7% year over
year to $757.2 million led by higher premium from the Life and
Health Insurance partly offset by lower premium from Medicare
Part D operations.
Net investment income increased 4% year over year to $182.8
Excess investment income, a measure of the segment's
profitability, was down 2% to $53.6 million.
Torchmark reported underwriting income of $151.8 million which
was up 10.0% year over year. The increase came on the back of
higher margins in all the three lines - Life, Health as well as
Medicare Part D operations.
Torchmark reported administrative expenses of $45.0 million,
up 11% year over year. The increase was due to expenses from the
acquisition of Family Heritage.
operations, premium revenue increased 4% year over year to $470.9
million, attributable to higher premiums written by distribution
channels - American Income Agency (up 8%) and Direct Response (up
4%), partially offset by a 2% decline in premiums written by
Liberty National Life Agency. Life underwriting income increased
7.0% to $139.0 million. Net sales of life insurance went down by
premium revenue (excluding Medicare Part D ) increased 23% year
over year to $209.2 million while underwriting income increased
19% year over year to $47.0 million. The addition of Family
Heritage led to 54% increase in health net sales.
Premium revenue from the
Medicare Part D
business decreased 6% year over year to $77.0 million.
Underwriting income increased 25% year over year to $9.1
Share Repurchase Update
During the quarter Torchmark repurchased 1.2 million shares at
a total cost of $85.1 million.
Shareholders' equity as of Sep 30, 2013 increased 5.0% year
over year to $3.5 billion.
Torchmark reported book value per share of $37.60 which
was up 9.3% year over year.
For the reported quarter Return on equity was 15.6%, unchanged
year over year.
Management expects 2013 earnings in the range of $5.68 to
$5.72 per share and $6.00 to $6.40 for the year ending Dec 31,
Torchmark carries Zacks Rank # 3 (Hold).
Among other players
StanCorp Financial Group Inc.
) with Zacks Rank #2 (Buy) reported third quarter earnings ahead
of the Zacks Consensus Estimates, whereas
Lincoln National Corp.
Sun Life Financial Inc.
) both with Zacks Rank # 2 (Buy) are expected to release third
quarter earnings on Oct 30 and Nov 7, respectively.
LINCOLN NATL-IN (LNC): Free Stock Analysis
STANCORP FNL CP (SFG): Free Stock Analysis
SUN LIFE FINL (SLF): Free Stock Analysis
TORCHMARK CORP (TMK): Free Stock Analysis
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