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Insurance earnings roundup, May 6

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Insurance earnings roundup, May 6

With earnings season in gear,S&P Global Market Intelligence presents a snapshot of recently reported financialresults for companies in the insurance space.

Managed care

posted first-quarter adjusted income from operations of $601million, or $2.32 per share, up from $513 million, or $1.96 per share, for the firstquarter of 2015.

The year-over-yearincrease was driven by revenue growth, favorable medical and operating costs inthe global health care segment, and a $23 million after-tax impact related to theadoption of a new accounting standard for corporate income taxes from stock-basedcompensation programs.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was $2.15.

Cignaalso raised its 2016 outlook for consolidated adjusted income from operations toa range of $8.95 per share to $9.35 per share from the earlier range of $8.85 to $9.25 per share. The outlook excludesthe impact of prior-year reserve development and the potential effects of futurecapital deployment.

The S&PCapital IQ consensus normalized EPS estimate for the full year is $9.20.


Property and casualty

first-quarter net incomeattributable to the company of $238 million, or $1.75 per share, down from pro formanet income of $251 million, or $1.82 per share, in the first quarter of 2015.

Adjustednet income for the first quarter came in at $464 million, or $3.41 per share.

The S&PCapital IQ consensus normalized EPS estimate for the quarter was $2.83.

Resultsfor the most recent quarter include $52 million pretax of integration expenses,a $50 million provision for the Stanfordlitigation and $25 million of restructuring costs.

For 2016,Willis Towers Watson continues to expect low-double-digit constant currency revenuegrowth and adjusted EPS in the range of $7.70 to $7.95.

The S&PCapital IQ consensus normalized EPS estimate for the full year is $7.79.


first-quarter operatingincome of $15.4 million, or 74 cents per share, down from $19.8 million, or 97 centsper share, in the year-ago quarter.

Net incomefor the quarter, including realized investment gains and losses, fell to $14.7 million,or 70 cents per share, from $20.3 million, or $1.00 per share, in the prior-yearperiod.

GAAPcombined ratio was 92.7% in the quarter, compared with 87.7% in the year-ago period.Catastrophe and storm losses for the quarter totaled $6.2 million, or 19 cents pershare after tax, compared with $4.6 million, or 15 cents per share after tax, inthe first quarter of 2015.

The catastropheand storm losses accounted for 4.3 percentage points of the combined ratio, downfrom the company's most recent 10-year average of 5.5 percentage points for theperiod.

EMC Insurance'smanagement reaffirmedits 2016 operating-income-per-share guidance of $1.70 to $1.90.