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Earnings roundup: Anthem, Aflac post higher Q4'17 earnings YOY

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Earnings roundup: Anthem, Aflac post higher Q4'17 earnings YOY

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

Life and health

Aflac Inc. reported fourth-quarter 2017 operating earnings of $633 million, or $1.60 per share, compared with $589 million, or $1.44 per share, in the year-ago quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.55.

Net earnings for the period increased year over year to $2.35 billion, or $5.95 per share, from $751 million, or $1.84 per share in the fourth quarter of 2016.

The year-over-year increase in net earnings reflects the impact of recently enacted federal tax reform of $1.7 billion.

Net earnings included $58 million, or 15 cents per share, of pretax net realized investment gains, compared with $386 million, or 94 cents per share, a year earlier. Pretax net realized losses from securities transactions and impairments for the fourth quarter amounted to $42 million, reflecting pretax net realized investment losses from securities transactions of $32 million, and pretax realized investment losses from impairments and the change in loan loss reserves of $10 million.

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Lincoln National Corp. reported fourth-quarter 2017 net income available to common stockholders of $818.0 million, or $3.67 per share, up from $190.0 million, or 82 cents per share, in the prior-year period.

Income from operations was $440.0 million, or $1.98 per share, compared with $409.0 million, or $1.77 per share, in the fourth quarter of 2016.

Net income for the current quarter and full year included nonrecurring net favorable items of $417 million primarily related to the U.S. tax reform.

The S&P Capital IQ normalized EPS estimate for the period was $1.94.

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Unum Group reported fourth-quarter 2017 after-tax operating income of $253.6 million, or $1.13 per common share, compared with $229.7 million, or 99 cents per common share, in the prior-year fourth quarter.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.08.

Net income was $266.9 million, or $1.19 per common share, compared with $248.0 million, or $1.07 per common share, in the prior-year fourth quarter.

Managed care

Anthem Inc. reported fourth-quarter 2017 net income of $1.23 billion, or $4.67 per share, up from $368.4 million, or $1.37 per share, in the year-ago quarter.

Results for the fourth quarter included net positive adjustment items of $3.38 per share, of which $4.21 was related to a one-time, noncash deferred tax benefit from tax reform.

Excluding these items, adjusted EPS for the quarter was $1.29, down from $1.76 in the year-ago period.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.27.

Property and casualty

American Financial Group Inc. reported fourth-quarter 2017 core net operating earnings of $197 million, or $2.20 per share, compared with $176 million, or $1.98 per share, in the year-ago quarter.

The company reported net earnings attributable to shareholders of $166 million, or $1.84 per share, down from $385 million, or $4.33 per share, in the prior year.

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Hanover Insurance Group Inc. reported a fourth-quarter 2017 after-tax operating income of $86.0 million, or $2.00 per share, compared with the operating loss of $19.7 million, or a loss of 46 cents per share, in the year-ago period.

Net income for the quarter was $51.5 million, or $1.20 per share, compared with a net loss $13.5 million, or a loss of 32 cents per share, in the fourth quarter of 2016.

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RenaissanceRe Holdings Ltd. reported fourth-quarter 2017 operating income available to common shareholders of $41.4 million, or $1.05 per common share, compared with $108.9 million, or $2.66 per common share, in the fourth quarter of 2016.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was $1.10.

The company reported a fourth-quarter 2017 net loss available to common shareholders of $3.5 million, or a loss of 9 cents per share, compared with net income of $69.4 million, or $1.69 per share, in the year-ago period.