Insurer Torchmark Corp. posts lower 1Q profit

Torchmark Corp. said Wednesday its first-quarter profit dropped about 35 percent from a year ago as the life and health insurer booked a charge to reflect the declining value of its investments.

The company, whose subsidiaries include American Income Life Insurance Co., First United American Life Insurance Co., and Liberty National Life Insurance Co., said net income slipped to $76.7 million, or 91 cents a share in the three months ended March 31.

That compares with net income of $118.2 million, or $1.29 a share, in the same quarter last year.

The latest results include a charge of 49 cents a share for invested assets that lost value.

Net operating income, which excludes one-time gains and charges, came to $1.49 a share, a 4 percent increase from the prior-year period.

Revenue slipped 3 percent to $685.1 million.

Analysts surveyed by Thomson Reuters, on average, expected profit of $1.48 a share on revenue of $864.4 million. Analyst estimates typically include one-time items.

The insurer said health insurance sales, excluding Medicare Part D, plunged 51 percent during the quarter, while net life insurance sales rose 11 percent.

Torchmark updated its full-year profit guidance, projecting its net operating income per share will range between $6 to $6.15, assuming the company does not repurchase any more shares this year.

Shares slipped 41 cents to $30 in aftermarket trading following the release of the earnings. In the regular session, the stock fell $1.41, or 4.4 percent, to $30.41.