Fidelity & Guaranty Life (FGL) has said the profit for the quarter ended Sep. 30, 2016 was unchanged at $30 million or $0.52 a share, when compared with the last year period.
Revenue during the quarter surged 110.67 percent to $316 million from $150 million in the previous year period. Net premium earned for the quarter increased 20 percent or $3 million to $18 million.
Total expenses increase substantiallyBenefits, losses and expenses for the quarter were at $262 million, or 1,455.56 percent of premium earned from $101 million or 673.33 percent of premium earned in the last year period. Operating income for the quarter was $54 million, compared with $49 million in the previous year period. However, the adjusted operating income for the quarter stood at $40 million compared to $42 million in the prior year period. At the same time, adjusted operating margin contracted 1534 basis points in the quarter to 12.66 percent from 28 percent in the last year period.
Net investment income was at $238 million for the quarter, up 6.73 percent or $15 million from year-ago period. The company has recorded a gain on investments of $26 million in the quarter compared with a loss of $112 million for the previous year period.
"We delivered another strong quarter and full year with improvements across most of our key metrics, including sales, net investment income and spread, adjusted operating income, and assets under management," said Chris Littlefield, president and chief executive officer of FGL. "Our FIA sales are up nicely over the prior year quarter while continuing to achieve our targeted profitability, and we have been growing our IUL business with existing and new distribution. In addition, we recently announced the extension of our merger agreement with Anbang. We are continuing the work to secure required regulatory approvals to complete the pending merger, and we remain committed to closing the transaction once the regulatory approval process concludes."
Assets outpace liabilities growthTotal assets increased 8.47 percent or $2,110 million to $27,035 million on Sep. 30, 2016. On the other hand, total liabilities were at $25,101 million as on Sep. 30, 2016, up 7.16 percent or $1,678 million from year-ago. Return on assets stood at 0.11 percent in the quarter, down 0.11 from 0.22 percent in the last year period. At the same time, return on equity was at 1.55 percent in the quarter, down 0.45 from 2 percent in the last year period.
Investments move upInvestments stood at $21,239 million as on Sep. 30, 2016, up 10.13 percent or $1,954 million from year-ago. Meanwhile, yield on investments went down 4 basis points to 1.12 percent in the quarter. Meanwhile, reinsurance recoverable moved down 3.21 percent or $115 million over the year to $3,464 million on Sep. 30, 2016.
Liability for future policy benefits, unpaid claims and claims adjustment expense was stable over the past one year at $ 55 million on Sep. 30, 2016.
Total debt was at $400 million as on Sep. 30, 2016, up 33.33 percent or $100 million from year-ago. Shareholders equity stood at $1,934 million as on Sep. 30, 2016, up 28.76 percent or $432 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 0.21 percent in the quarter from 0.20 percent in the last year period.
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