Life and annuity operations did well at Allstate Corp. in the second quarter despite a sharp drop in sales of fixed deferred annuities.
Allstate, Northbrook, Ill, is reporting $1.4 billion in net income for the quarter on $9.5 billion in revenue, up from $1.2 billion in net income on $8.9 billion in revenue for the second quarter of 2006.
The Allstate Financial unit, which sells life insurance, fixed annuities and indexed annuities, is reporting $200 million in net income on $1.6 billion in revenue, up from $73 million in net income on $1.5 billion in revenue.
The unit performed well even though fixed deferred annuity premiums and deposits fell to $657 million, from $1.7 billion, Allstate says.
"The decrease compared to the prior year is indicative of lower industry-wide fixed annuity sales and our strategy to raise new business returns on capital for these products," Allstate says.
In other earnings news:
-Torchmark Corp., McKinney, Texas, is reporting $127 million in net income for the second quarter on $877 million in revenue, compared with $127 million in net income on $869 million in revenue for the second quarter of 2006.
Sales of supplemental health insurance products aimed at U.S. residents under age 65 continued to be strong, Torchmark says.
