Citigroup Life Unit Reports Higher 2nd Quarter Profits

By Allison Bell

July 14, 2003 at 08:00 PM

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NU Online News Service, July 14, 2003, 5:47 p.m. EDT – Citigroup Inc., New York, is getting better results from its Travelers Life and Annuity life insurance operations, and the performance of the Travelers Life variable annuity business is also starting to stabilize.

The company as a whole is reporting $4.3 billion in net income for the second quarter on $19 billion in revenue, up from $4.1 billion in net income on $18 billion in revenue for the second quarter of 2002.

Travelers Life has increased its income from continuing operations to $190 million, from $137 million for the second quarter of 2002.

Travelers Life improved its profits mainly by cutting losses on investments sold, written off or written down during the quarter to $2 million. The unit realized $182 million in investment losses during the comparable quarter in 2002.

Net written premiums and deposits for life insurance increased to $232 million, from $221 million, and life insurance account balances and benefit reserves increased to $4.2 billion, from $3.6 billion.

Net written premiums and deposits for individual variable annuities amounted to $960 million in the second quarter, down 14% from the total for the second quarter of 2002.

But the rebound in the stock market helped push VA account balances and benefit reserves up 4%, to $21 billion.

Meanwhile, net written premiums and deposits for variable annuities fell to $171 million at Citigroup's Primerica Financial Services unit, from $250 million for the second quarter of 2002.

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