Fidelity & Guaranty Life (FGL) has reported an 144.44 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $22 million, or $0.38 a share in the quarter, compared with $9 million, or $0.16 a share for the same period last year.
Revenue during the quarter surged 60.94 percent to $375 million from $233 million in the previous year period. Net premium earned for the quarter dropped 81.25 percent or $13 million to $3 million.
Total expenses increase substantially
Benefits, losses and expenses for the quarter were at $334 million, or 11,133.33 percent of premium earned from $212 million or 1,325 percent of premium earned in the last year period. Operating income for the quarter was $41 million, compared with $21 million in the previous year period. However, the adjusted operating income for the quarter stood at $36 million compared to $43 million in the prior year period. At the same time, adjusted operating margin contracted 885 basis points in the quarter to 9.60 percent from 18.45 percent in the last year period.
Net investment income was at $247 million for the quarter, up 8.81 percent or $20 million from year-ago period. Meanwhile, income from fees and commission for the quarter jumped 37.50 percent or $12 million to $44 million. The company has recorded a gain on investments of $81 million in the quarter compared with a loss of $42 million for the previous year period.
"Our business momentum continues and we delivered another strong quarter with year-over-year increases in sales, net income, net investment income and assets under management," said Chris Littlefield, president and chief executive officer of FGL. "We are continuing to explore and negotiate strategic alternatives with other parties in light of our termination of the merger agreement with Anbang and are working to maximize value for our shareholders."
Assets outpace liabilities growth
Total assets increased 9.40 percent or $2,398 million to $27,897 million on Mar. 31, 2017. On the other hand, total liabilities were at $25,989 million as on Mar. 31, 2017, up 8.34 percent or $2,001 million from year-ago. Return on assets stood at 0.08 percent in the quarter, up 0.02 from 0.06 percent in the last year period. At the same time, return on equity was at 1.15 percent in the quarter, up 0.56 from 0.60 percent in the last year period.
Investments move up
Investments stood at $21,813 million as on Mar. 31, 2017, up 11.40 percent or $2,233 million from year-ago. Meanwhile, yield on investments went down 3 basis points to 1.13 percent in the quarter. Meanwhile, reinsurance recoverables moved down 2.45 percent or $86 million over the year to $3,426 million on Mar. 31, 2017.
Total debt was at $405 million as on Mar. 31, 2017, up 35 percent or $105 million from year-ago. Shareholders equity stood at $1,908 million as on Mar. 31, 2017, up 26.27 percent or $397 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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