Hancock Reports Higher Profits, $31.5 Million In Federal LTC Premiums

By Allison Bell

July 31, 2003 at 08:00 PM

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NU Online News Service, July 31, 2003, 6:18 p.m. EDT – John Hancock Financial Services Inc., Boston, says its federal long term care insurance operations generated $9 million in sales in the second quarter, up from $5.9 million in the second quarter of 2002.

Sales for the first half increased to $81 million, from $5.9 million.

Hancock as a whole is reporting $290 million in net income for the latest quarter on $2.4 billion in revenue, up from $98 million in net income on $2.3 billion in revenue for the second quarter of 2002.

Some of the improvement came because Hancock reported a realized investment gain of $54 million for the latest quarter, up from a realized investment loss of $95 million for the comparable quarter of 2002.

Hancock's financial supplement also sheds light on the closely watched long term care insurance operation for federal employees that Hancock established with MetLife Inc., New York.

Hancock is reporting $31.5 million in statutory premium revenue for the federal LTC unit, up from $1.4 million in premiums for the comparable quarter in 2002.

The federal LTC unit's separate account liability has increased to $67 million, from $1.4 million, Hancock says.

Statutory premiums for Hancock's own individual and group LTC operations increased to $232 million, from $188 million. New sales fell to $3.9 million, from $6.4 million, at the group unit, but group renewal revenue increased to $27 million, from $20 million, and new individual sales increased to $46 million, from $22 million.

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