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Earnings roundup: Cigna adjusted income from operations falls YOY in Q4'17

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Earnings roundup: Cigna adjusted income from operations falls YOY in Q4'17

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

Managed care

Cigna Corp. reported fourth-quarter 2017 adjusted income from operations of $483 million, or $1.94 per share, compared to $485 million, or $1.87 per share, in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.87.

Shareholders' net income for the fourth quarter of 2017 decreased year over year to $266 million, or $1.07 per share, from $382 million, or $1.47 per share.

For the full year 2018, the company expects consolidated adjusted income from operations of $3.08 billion to $3.20 billion, or $12.40 per share to $12.90 per share.

The S&P Capital IQ consensus normalized EPS estimate for 2018 is $12.18.

Mortgage guaranty

Radian Group Inc. reported fourth-quarter 2017 net income of $6.8 million, or 3 cents per share, down from $61.1 million, or 27 cents per share, in the year-ago quarter.

Net income for the quarter included an incremental tax provision of $102.6 million, representing the estimated impact of recently enacted tax reform.

Adjusted pretax operating income for the most recent quarter increased year over year to $172.5 million from $140.2 million. Adjusted net operating income per share for the fourth quarter of 2017 was 51 cents, versus 41 cents in the year-ago quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 44 cents.

Property and casualty

Marsh & McLennan Cos. Inc. reported fourth-quarter 2017 net income attributable to the company of $29 million, or 6 cents per share, compared with $436 million, or 85 cents per share, in the year-ago period.

Adjusted EPS for the quarter was $1.05, versus 89 cents in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 94 cents.

The effective tax rate in the fourth quarter and full year 2017 reflects the estimated impact of the enactment of U.S. tax reform.

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XL Group Ltd. reported fourth-quarter 2017 net income attributable to common shareholders of $28.8 million, or 11 cents per share, compared with $304.7 million, or $1.12 per share, in the fourth quarter of 2016.

The company said a nonrecurring tax charge of $100.5 million related to the revaluation of the net deferred tax asset as a result of the reduced U.S. corporate income tax rate enacted under the U.S. Tax Cuts and Jobs Act was recorded against net income attributable to common shareholders in the fourth quarter of 2017.

Operating net income was $116.1 million, or 45 cents per share, for the quarter, versus $128.4 million, or 47 cents per share, in the prior-year period.

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Validus Holdings Ltd. reported fourth-quarter 2017 net operating income available to common shareholders of $4.2 million, or 5 cents per share, compared with $58.5 million, or 73 cents per share, for the three months ended Dec. 31, 2016.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 83 cents.

The company also reported a fourth-quarter 2017 net loss available to common shareholders of $8.7 million, or a loss of 11 cents per share, compared with net income available to common shareholders of $7.8 million, or 10 cents per share, in the year-ago quarter.

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Selective Insurance Group Inc. reported fourth-quarter 2017 non-GAAP operating income of $51.2 million, or 86 cents per share, compared with $44.4 million, or 75 cents per share, in the prior-year quarter.

Fourth-quarter 2017 net income was $30.2 million, or 51 cents per share, versus $39.4 million, or 67 cents per share, in the year-ago period.