Anzeige
Mehr »
Login
Freitag, 29.03.2024 Börsentäglich über 12.000 News von 687 internationalen Medien

Indizes

Kurs

%
News
24 h / 7 T
Aufrufe
7 Tage

Aktien

Kurs

%
News
24 h / 7 T
Aufrufe
7 Tage

Xetra-Orderbuch

Fonds

Kurs

%

Devisen

Kurs

%

Rohstoffe

Kurs

%

Themen

Kurs

%

Erweiterte Suche
PR Newswire
6 Leser
Artikel bewerten:
(0)

TORCHMARK CORPORATION - Half-yearly Report

Torchmark Corporation Reports Second Quarter 2014 Results

MCKINNEY, Texas, July 23, 2014 -- Torchmark Corporation (NYSE: TMK)
reported today that for the quarter ended June 30, 2014, net income was
$.98 per share, compared with $.96 per share for the year-ago quarter. Net
operating income for the quarter was $1.02 per share, compared with $.95 per
share for the year-ago quarter.

Reconciliations between net income and net operating income, GAAP ROE and
management ROE, and GAAP book value and management book value are shown in the
Financial Summary below.

Note: All share and per share information has been adjusted to reflect the
three-for-two stock split that was effective on July 1, 2014.

HIGHLIGHTS:

  * Net operating income per share increased 7% over the year-ago quarter.
  * ROE (excluding net unrealized gains on fixed maturities) was 15.4%.
  * Total net life sales increased 11% over the year-ago quarter.  Increases by
    major distribution channel were:
      + American Income  9%
      + Direct Response  12%
      + Liberty National     7%
  * Total net health sales, excluding Medicare Part D, increased 21% over the
    year-ago quarter. Increases by major distribution channel were:
      + UA Independent   34%
      + Liberty National    22%
      + Family Heritage   15%
  * End of quarter agent counts increased over the year-ago quarter as follows:
      + American Income   6%
      + Liberty National    17%
      + Family Heritage      4%
  * 1.6 million shares of common stock were repurchased.

FINANCIAL SUMMARY

Net operating income, a non-GAAP financial measure, has long been consistently
used by Torchmark's management to evaluate the operating performance of the
Company, and is a measure commonly used in the life insurance industry. It
differs from net income primarily because it excludes certain non-operating
items such as realized investment gains and losses and certain nonrecurring or
unusual items which are included in net income. Management believes that an
analysis of net operating income is important in understanding the
profitability and operating trends of the Company's business.

                                               Financial Summary
                                 (dollars in millions, except per share data)

                                    Per Share
                                 Quarter Ended              Quarter Ended
                                    June 30,         %        June 30,      %
                                 2014      2013     Chg.  2014     2013    Chg.

Insurance underwriting income*   $1.17     $1.08     8   $155.6   $151.7    3
Excess investment income*         0.43      0.39    10     57.2     54.9    4
Parent company expense           (0.02)    (0.02)          (2.3)    (2.8)
Income tax                       (0.52)    (0.48)    8    (68.7)   (66.8)   3
Stock option expense, net of     (0.04)    (0.03)          (5.8)    (4.4)
tax

Net operating income             $1.02     $0.95     7   $136.0   $132.7    3


Reconciling items, net of tax:

  Realized gains on               0.00      0.03            0.4      3.8
  investments
  Medicare Part D adjustment     (0.03)    (0.01)          (3.6)    (1.5)
  Guaranty Fund Assessment        0.00     (0.01)           0.0     (0.8)
  Legal settlements               0.00      0.00            0.1     (0.3)
  Administrative Settlements     (0.01)     0.00           (2.0)     0.0


Net income                       $0.98     $0.96         $130.9   $133.9

Weighted average diluted
  shares outstanding (000)     133,315   139,946



*See definitions in the following sections and in the Torchmark 2013 SEC
Form 10-K.
Note: Tables in this news release may not foot due to rounding


                                      Financial Summary, continued
                                      Management vs. GAAP Measures
                              (dollars in millions, except per share data)

                               Management
                             (excluding the         Revaluation
                           Revaluation Adj.**)     Adjustment**        GAAP
                                at June 30,        at June 30,      at June 30,
                             2014          2013    2014   2013     2014    2013


Net income as a ROE*** (year    -             -                    12.7%   12.2%
to date)

Net operating income as a     15.4%       15.6%                        -       -
ROE (year to date)


Shareholders' equity         $3,592      $3,408    $917     $414  $4,509  $3,822

Book value per share         $27.02      $24.48   $6.91    $2.98  $33.93  $27.46


** Accounting guidance (ASC-820, which includes guidance formerly set forth in
FAS 115) requires a revaluation adjustment of fixed maturities available for
sale to fair value.  Without the revaluation adjustment, these assets would be
reported at amortized cost.

*** ROE is calculated using average equity for the measurement period.


INSURANCE OPERATIONS - comparing the second quarter 2014 with second quarter
2013:

Life insurance accounted for 70% of the Company's insurance underwriting margin
for the quarter and 62% of total premium revenue.

Health insurance accounted for 25% of Torchmark's insurance underwriting margin
for the quarter and 27% of total premium revenue.

Medicare Part D accounted for 4% of insurance underwriting margin and 11% of
total premium revenue.

Net sales of life insurance increased 11%, while health sales, excluding
Medicare Part D, increased 21%.

Insurance Premium Revenue

                       Insurance Premium Revenue
                        (dollars in millions)

                  Quarter Ended     Quarter Ended     %
                  June 30, 2014     June 30, 2013    Chg.

Life insurance     $492.0            $475.1           4
Health insurance    215.1             218.2          (1)
Medicare Part D      85.0              73.1          16
Annuity               0.1               0.2
Total              $792.1            $766.6           3


Insurance Underwriting Income

Insurance underwriting margin is management's measure of profitability of its
life, health, Medicare Part D, and annuity segments' underwriting performance,
and consists of premiums less policy obligations, commissions and other
acquisition expenses.

Insurance underwriting income is the sum of the insurance underwriting margins
of the life, health, Medicare Part D, and annuity segments, plus other income,
less insurance administrative expenses. It excludes the investment segment,
parent company expense and income taxes.

                                    Insurance Underwriting Income
                             (dollars in millions, except per share data)

                        Quarter Ended     % of    Quarter Ended   % of     %
                           June 30,      Premium   June 30,      Premium  Chg.
                            2014                    2013

Insurance underwriting
margins:

 Life                        $140.7        29        $135.7        29       4
 Health                        49.8        23          50.3        23      (1)
 Medicare Part D                8.6        10           8.2         11      6
 Annuity                        1.1                     1.0
                              200.2                   195.2

Other income                   0.7                     0.7
Administrative expenses      (45.4)                  (44.1)                 3
Insurance underwriting      $155.6                  $151.7                  3
income
 Per share                   $1.17                   $1.08                  8


Insurance Results by Distribution Channels

Total premium, underwriting margins, first-year collected premium and net sales
by all distribution channels are shown at www.torchmarkcorp.com on the Investor
Relations page at Financial Reports.

American Income Agency was Torchmark's leading contributor to total
underwriting margin ($70 million), on premium revenue of $210 million. Life
premiums of $190 million were up 7% and life insurance underwriting margin of
$60 million was up 6%. As a percentage of life premiums, life underwriting
margin was 32%, same as the year-ago quarter and the highest of the major life
distribution channels at Torchmark. The producing agent count was 5,890, up 6%
from a year ago. The average agent count during the quarter was 5,744, up 8%
from the first quarter. Net life sales were $45 million, up 9% compared to the
year-ago quarter.

Direct Response was Torchmark's second leading contributor to total
underwriting margin ($47 million), on premium revenue of $190 million. Life
premiums of $177 million were up 5% and the life underwriting margin was $44
million, up 2%. As a percentage of life premiums, life underwriting margin was
25%, down from 26%. Net life sales were $44 million, up 12%.

LNL Agency was Torchmark's third leading contributor to total underwriting
margin ($31 million), on premium revenue of $124 million. Life premiums of $68
million were down 2% and life underwriting margin of $18 million was up 6%. As
a percentage of life premiums, life underwriting margin was 27%, up from 25%.
Net life sales for the LNL Agency were $9 million, up 7%.

LNL Agency was Torchmark's second leading contributor to health underwriting
margin ($13 million), on health premium of $56 million. Health underwriting
margin as a percentage of health premium was 23%, same as the year-ago quarter.
Net health sales were $4 million, up 22%.

The LNL Agency producing agent count was 1,500, up 17% from a year ago. The
average agent count during the quarter was 1,492, up 7% from the first quarter.

UA Independent Agency was Torchmark's leading contributor to health
underwriting margin ($15 million), on health premium of $76 million. Health
underwriting margin as a percentage of premium was 19%, down from 20%. Net
health sales were $9 million, up 34%.

Family Heritage Agency was Torchmark's third leading contributor to health
underwriting margin ($10 million) on health premiums of $51 million. Health
underwriting margin as a percentage of health premium was 20%, up from 19%. The
producing agent count was 771, up 4% from a year ago. The average agent count
during the quarter was 758, up 15% from the first quarter. Net health sales
were $13 million, up 15% compared to the year-ago quarter.

Medicare Part D Prescription Drug Plan is distributed by Direct Response and
the UA agency. Second quarter premium revenue was $85 million, up 16%.
Underwriting margin for second quarter 2014 was $9 million, up 6%. Net sales
were $20 million, up from $8 million.

For GAAP reporting, Medicare Part D premiums are recognized evenly throughout
the year when they become due, and benefit costs are recognized when the costs
are incurred. Due to the design of the product, premiums are evenly distributed
throughout the year, but benefit costs are higher earlier in the year. As a
result, under GAAP, benefit costs can exceed premiums in the first part of the
year but be less than premiums during the remainder of the year. For net
operating income purposes, Torchmark defers excess benefits incurred in earlier
interim periods to later periods in order to more closely match the benefit
cost with the associated revenue. For the full year, the total premiums and
benefits are the same under this alternative method as they are under GAAP. The
Company reports this difference between GAAP and management's non-GAAP
disclosures, net of tax, as a reconciling item for the interim periods in the
Financial Summary included in this release. A chart reconciling the Company's
non-GAAP financial presentation to a GAAP presentation may be viewed on the
Company's website at www.torchmarkcorp.com on the Investor Relations page at
Financial Reports.

Administrative Expenses were $45 million, up 3% from the year-ago quarter. The
ratio of administrative expenses to premiums was 5.7%, slightly less than the
year-ago quarter.

INVESTMENTS

Excess Investment Income - comparing the second quarter 2014 with the second
quarter 2013:

Management uses excess investment income as the measure to evaluate the
performance of the investment segment. It is net investment income reduced by
required interest. Required interest includes interest related to net policy
liabilities and interest on debt.

                                            Quarter Ended
                                              June 30,
                                (dollars in millions, except per share data)

                                     2014            2013       % Chg.
Net investment income               $189.9          $184.2         3

Required interest:
 Interest on net policy             (113.6)         (108.5)        5
 liabilities
 Interest on debt                    (19.0)          (20.8)

 Total required interest            (132.7)         (129.3)        3

Excess investment income             $57.2           $54.9         4
 Per share                           $0.43           $0.39        10


Net investment income was up 3%, in line with the 3% increase in average
invested assets. Required interest on net policy liabilities increased 5%, in
line with the 5% increase in average net policy liabilities.

Investment Portfolio

The composition of the investment portfolio at June 30, 2014 is as follows:

                                         Invested Assets
                                      (dollars in millions)

                                         $         % of Total


Fixed maturities (at amortized cost)  $12,699          96
Equities                                    1           0
Policy loans                              458           3
Other long-term investments                12           0
Short-term investments                     49           0

Total                                 $13,219        100%


Fixed maturities at amortized cost by asset class are as follows:

                                          Fixed Maturities
                                        (dollars in millions)

                                                    Below
                                      Investment  Investment
                                        Grade       Grade       Total

Corporate bonds                         $9,987      $372      $10,359

Redeemable preferred stock:
 U.S.                                      316       126          442
 Foreign                                    55                     55

Municipal                                1,278                  1,278
Government-sponsored enterprises           350                    350
Government and agencies                    116                    116
Collateralized debt obligations                       65           65
Residential mortgage-backed securities       6                      6
Other asset-backed securities               28                     28

Total                                  $12,136      $563      $12,699


The market value of Torchmark's fixed maturity portfolio was $14.1 billion;
$1.4 billion higher than amortized cost of $12.7 billion. The $1.4 billion of
net unrealized gains compares to $1.0 billion at March 31, 2014. Net unrealized
gains were comprised of gross unrealized gains of $1.56 billion and gross
unrealized losses of $128 million.

Torchmark has no counterparty risk as it is not a party to any credit default
swaps or other derivatives contracts and does not participate in securities
lending.

At amortized cost, 96% of fixed maturities (96% at market value) were rated
"investment grade."

The fixed maturity portfolio earned an annual effective yield of 5.92% during
the second quarter of 2014, same as the first quarter of 2014, and slightly
less than the 5.95% earned during the year-ago quarter.

Acquisitions of fixed maturity investments during the quarter totaled $167
million at cost. Comparable information for acquisitions of fixed maturity
investments is as follows:

                                       Quarter Ended
                                          June 30,
                                    2014           2013

Average annual effective yield      4.7%           4.1%
Average rating                       BBB            A-
Average life (in years) to:
 First call                         20.9           26.1
 Maturity                           21.2           26.3


SHARE REPURCHASE - during the quarter ended June 30, 2014:

During the quarter, the Company repurchased 1.6 million shares of Torchmark
Corporation common stock at a total cost of $82.1 million at an average price
per share of $52.86.

LIQUIDITY/CAPITAL:

Torchmark's operations consist primarily of writing basic protection life and
supplemental health insurance policies which generate strong and stable cash
flows.

Capital at the insurance companies is sufficient to support current operations.
In addition, the parent company had $47 million of liquid assets at June 30,
2014.

EARNINGS GUIDANCE FOR THE YEAR ENDING DECEMBER 31, 2014:

Torchmark projects that for the year ending December 31, 2014, net operating
income per share will be in a range of $4.05 to $4.15. The midpoint of $4.10 is
$.03 lower than projected earlier in the year primarily because Medicare Part D
claims and investment income have been negatively impacted by newly approved
Hepatitis C drugs.

OTHER FINANCIAL INFORMATION:

More detailed financial information including various GAAP and Non-GAAP ratios
and financial measurements are located at www.torchmarkcorp.com on the Investor
Relations page under "Financial Reports and Other Financial Information."

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

This press release may contain forward-looking statements within the meaning of
the federal securities laws. These prospective statements reflect management's
current expectations, but are not guarantees of future performance.
Accordingly, please refer to Torchmark's cautionary statement regarding
forward-looking statements, and the business environment in which the Company
operates, contained in the Company's Form 10-K for the year ended December 31,
2013, and any subsequent Forms 10-Q on file with the Securities and Exchange
Commission and on the Company's website at www.torchmarkcorp.com on the
Investor Relations page. Torchmark specifically disclaims any obligation to
update or revise any forward-looking statement because of new information,
future developments or otherwise.

EARNINGS RELEASE CONFERENCE CALL WEBCAST:

Torchmark will provide a live audio webcast of its second quarter 2014 earnings
release conference call with financial analysts at 11:00 a.m. (Eastern)
tomorrow, July 24, 2014. Access to the live webcast and replay will be
available at www.torchmarkcorp.com on the Investor Relations page, at the
Conference Calls on the Web icon. Immediately following this press release,
supplemental financial reports will be available before the conference call on
the Investor Relations page menu of the Torchmark website at "Financial Reports
and Other Financial Information."



CONTACT: Mike Majors, Vice President, Investor Relations, Torchmark
Corporation, Phone: 972/569-3627, tmkir@torchmarkcorp.com
Großer Dividenden-Report 2024 von Dr. Dennis Riedl
Der kostenlose Dividenden-Report zeigt ganz genau, wo Sie in diesem Jahr zuschlagen können. Das sind die Favoriten von Börsenprofi Dr. Dennis Riedl
Jetzt hier klicken
© 2014 PR Newswire
Werbehinweise: Die Billigung des Basisprospekts durch die BaFin ist nicht als ihre Befürwortung der angebotenen Wertpapiere zu verstehen. Wir empfehlen Interessenten und potenziellen Anlegern den Basisprospekt und die Endgültigen Bedingungen zu lesen, bevor sie eine Anlageentscheidung treffen, um sich möglichst umfassend zu informieren, insbesondere über die potenziellen Risiken und Chancen des Wertpapiers. Sie sind im Begriff, ein Produkt zu erwerben, das nicht einfach ist und schwer zu verstehen sein kann.