Hancock Reports Higher 4th Quarter Net Income

By Staff Writer

February 07, 2003 at 07:00 PM

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NU Online News Service, Feb. 7, 12:37 p.m. – John Hancock Financial Services Inc., Boston, is reporting $113 million in net income for the fourth quarter of 2002 on $2.3 billion in revenue, compared with $102 million in net income on $2.7 billion in revenue for the fourth quarter of 2001.

Net results for the latest quarter include $109 million in investment losses, up from $98 million in losses for the comparable quarter in 2001. The investment losses included a write-down of $54 million in equipment loans to UAL Corp., Elk Grove Township, Ill., the company says.

Hancock products include protection insurance and "asset-gathering" vehicles.

Protection: Operating income for life insurance and long-term care insurance increased 12% from the fourth quarter of 2001, to $134 million, and operating income for long-term care insurance increased 26%, to $34 million. Sales of long-term care insurance increased 64%, to $47 million, due in part to the introduction of a successful new LTC product.

Asset-gathering: The unit generated $54 million in net operating income for the latest quarter on $8.5 billion in average account balances, compared with $55 million in net operating income on $6.3 billion in revenue for the fourth quarter of 2001.

Sales of fixed annuities increased 35% from the fourth quarter of 2001, to $567 million, and sales of variable annuities increased 14%, to $177 million. The increase for variable annuities "was from certain variable products offering fixed income investments, which were closed to new business in October," Hancock says.

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