Jefferson-Pilot Reports Higher Net Income

By Staff Writer

October 30, 2001 at 07:00 PM

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NU Online News Service, Oct. 30, 6:06 p.m. – Jefferson-Pilot Corp., Greensboro, N.C., is reporting $140 million in net income for the third quarter on $845 million in revenue, up from $135 million in net income on $807 million in revenue for the third quarter of 2000.

The company sells employee benefits, life insurance, annuities and related products.

The benefits unit is reporting $12 million in net income on $157 million in revenue, up from $8 million in net income on $137 million in revenue.

The life insurance unit brought in $70 million in net income on $428 million in revenue, compared with $76 million in net income on $417 million in revenue.

The annuity unit generated $17 million in net income on $159 million in revenue, down from $18 million in net income on $166 million in revenue.

Sales of new variable annuities sank to $4 million, from $19 million, but sales of fixed annuities rose to to $524 million, from $399 million, Jefferson-Pilot says.

The fixed annuities are less profitable, however, because the spread for the fixed annuities — the difference between the rate Jefferson-Pilot pays on the annuities and the rate it earns on the annuity assets — has dropped to 1.92%, from 2.15%.

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