Baldwin & Lyons posts 21-percent boost in profit

Indianapolis-based Baldwin & Lyons Inc. on Thursday reported healthy jumps in second-quarter profit and revenue, spurred by record premiums from the company’s insurance subsidiaries.

The insurer of trucking and auto fleets recorded profit of $4.9 million, or 33 cents per share—a 21-percent jump from $4.05 million, or 27 cents per share, in the second quarter of 2012.

Profit was boosted by investment gains of $467,000. In the same quarter last year, investment losses of $3.5 million dragged down the bottom line.

Revenue jumped 13 percent to $66 million.

The company said premiums written by its insurance subsidiaries hit a record $92.8 million, an increase of 18 percent.

Baldwin & Lyons shares slipped nearly 2 percent in early trading Thursday, to $26.24.

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CNO profit jumps 17 percent

CNO Financial Group's profit rose 17 percent in the second quarter, partly on lower expenses and higher investment income.

The Carmel-based insurer and financial services company reported on Monday morning earnings of $77.1 million, or 34 cents a share, for its second quarter—compared with $65.7 million and 24 cents a share in the second quarter of 2012. On average, nine analysts polled by Thomson Reuters expected earnings per share of 26 cents for the quarter.

Net operating income per share was 30 cents in the quarter, a 50-percent rise from 20 cents in the period last year.

Total revenue for CNO grew 1.5 percent to $1.08 billion.

“The vitality and stability of CNO’s business model continues to produce solid results, with sales momentum increasing, and consistent growth in core business premium income and profitability,” CEO Ed Bonach said in a statement. 

Sales, as defined by new annualized premium, rose 5 percent to $102.3 million. 

Bankers Life, CNO’s Chicago-based unit that sells insurance to consumers at or near retirement age, saw a gain of 6 percent in new annualized premium, totaling $63.2 million.

Bankers Life opened nine new sales offices in the first six months of this year, CNO reported.

By contrast, new premium at CNO's Colonial Penn unit rose 1 percent to $15.8 million, “in line with our expectations given our advertising spend this quarter,” the company said.

Colonial Penn life insurance products are heavily touted over television and sold direct to consumers.

CNO shares were up about 2 percent at midmorning amid a broader market decline.

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WellPoint raises forecast after profit surges

Business continued to improve at WellPoint Inc. in the second quarter, helping the health insurer beat Wall Street’s expectations and raise its profit forecast for the year.

The Indianapolis-based company reported Wednesday morning that it earned $2.64 per share in the three months ended June 30. Excluding investment gains, WellPoint earned $2.60 per share, a 27.5-percent increase over the same quarter a year ago.

Analysts were expecting earnings of $2.11 per share, according to a survey by Thomson Financial.

WellPoint raised its full-year profit forecast by 20 cents per share, excluding the impact of investments, to $8 per share.

Overall profit for the quarter rose 24 percent from a year ago to $800.1 million, as WellPoint’s customers continued to file modest amounts of medical claims. WellPoint spent 83.9 percent of its premium revenue on claims, a tick higher than in the first quarter but well below its predicted level of 85.5 percent for the year.

“We are pleased with our second quarter results and encouraged by the positive momentum we have across the organization. Our commercial businesses continue to perform well and we have achieved improvements in our Medicaid operations,” WellPoint CEO Joe Swedish said in a prepared statement.

WellPoint’s revenue for the quarter rose 16 percent to $17.8 billion. Those numbers were boosted by WellPoint’s acquisition of Virginia-based Amerigroup Corp. in December.

Analysts were expecting revenue of $17.9 billion.

WellPoint provided health benefits for 35.7 million Americans at the end of June, more than any other company in the United States. WellPoint lost 143,000 members from its health plans in the second quarter, primarily because its employer customers trimmed their staffs.

WellPoint shares closed Tuesday at $87.51 apiece. They have soared in value since WellPoint named Swedish as its next CEO in February, rising nearly 33 percent.

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