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Fidelity & Guaranty Life Reports Fiscal Second Quarter 2017 Results
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PR Newswire
DES MOINES, Iowa, May 3, 2017
DES MOINES, Iowa, May 3, 2017 /PRNewswire/ -- Fidelity & Guaranty Life (NYSE: FGL), a leading provider of annuities and life insurance, today announced financial results for the fiscal second quarter of 2017.
- Reported net income was $22 million or $0.38 per diluted share for the second quarter
- Adjusted operating income was $36 million or $0.62 per diluted share for the second quarter
- Total annuity sales were $732 million; including fixed indexed annuity ("FIA") sales of $438 million, up 5% over prior year
- Indexed universal life ("IUL") sales increased 27% over prior year to $14 million
- Average assets under management increased to $20.0 billion, up 9% over prior year
Net income for the fiscal second quarter of 2017 ended on March 31, 2017(1) was $22 million or $0.38 per diluted common share. Adjusted operating income for the fiscal second quarter of 2017 was $36 million, or $0.62 per diluted share, compared to adjusted operating income of $43 million, or $0.73 per diluted share, in the prior year period.
The table below reconciles reported after-tax net income to adjusted operating income ("AOI").
| (In millions) | | Three months ended | | | ||||||||
| | | (Unaudited) | | | ||||||||
| Reconciliation from Net Income to AOI(2): | | 2017 | | 2016 | | Increase | ||||||
| Net income | | $ | 22 | | | $ | 9 | | | $ | 13 | |
| Effect of investment losses (gains), net of offsets | | 15 | | | (5) | | | 20 | | |||
| Effect of change in FIA embedded derivative discount rate, net of offsets | | (2) | | | 43 | | | (45) | | |||
| Effect of change in fair value of reinsurance related embedded derivative, net of offsets | | 8 | | | 14 | | | (6) | | |||
| Tax impact of adjusting items | | (7) | | | (18) | | | 11 | | |||
| Adjusted operating income | | $ | 36 | | | $ | 43 | | | $ | (7) | |
| See footnotes at end of release. | ||||||||||||
The current quarter included net unfavorable items of $3 million or $0.05 per diluted share. The prior year quarter included net favorable items of $10 million or $0.17 per diluted share. The table below details notable items in both periods.
| | | | | | |
| | Current Year Fiscal Quarter | | | | |
| | | - Net unfavorable adjustments related to higher deferred acquisition cost ("DAC") amortization, primarily due to equity market fluctuations | | ($3) million | |
| | | - Higher expense related to merger transaction costs & legacy incentive compensation plans | | ($3) million | |
| | | - Favorable actual to expected mortality within single premium immediate annuity ("SPIA") product line and other annuity reserve movements | | $3 million | |
| | Prior Year Fiscal Quarter | | | | |
| | | - Favorable performance within SPIA product line | | $5 million | |
| | | - Net favorable adjustments related to lower DAC amortization, primarily due to equity market fluctuations | | $6 million | |
| | | - Higher expense related to merger transaction costs | | ($1) million | |
| | | | | | |
"Our business momentum continues and we delivered another strong quarter with year-over-year increases in sales, net income, net investment income and assets under management," said Chris Littlefield, President and CEO of FGL. "We are continuing to explore and negotiate strategic alternatives with other parties in light of our termination of the merger agreement with Anbang and are working to maximize value for our shareholders."
| Summary Financial Results (Unaudited) | |||||||||||||||
| | |||||||||||||||
| | | Three months ended March 31, | Six months ended March 31, | ||||||||||||
| (In millions, except per share data) | | 2017 | | 2016 | 2017 | | 2016 | ||||||||
| Fixed indexed annuity sales (2) | | $ | 438 | | | $ | 418 | | $ | 989 | | | $ | 855 | |
| Total annuity sales (2) | | $ | 732 | | | $ | 601 | | $ | 1,380 | | | $ | 1,090 | |
| Average assets under management (2) | | $ | 20,162 | | | $ | 18,465 | | $ | 19,963 | | | $ | 18,349 | |
| Net investment spread - FIA (2) | | 3.05 | % | | 2.93 | % | 3.03 Werbung Mehr Nachrichten zur FIDELITY+GUAR.LIFE Aktie kostenlos abonnieren
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