The Insurance segment had operating income of $56 million for the second quarter of Fiscal 2012 compared to $37 million for the first quarter of Fiscal 2012. Income for the period included net realized investment gains from the sale of securities of $36 million during the quarter, net of amortization. The realized gains resulted from sales made to shorten the duration of the Insurance segment’s portfolio and improve its asset/liability matching profile. Adjusted operating income was $14 million (pre-tax) for the second quarter of Fiscal 2012, compared to $24 million (pre-tax) in the first quarter of Fiscal 2012. The $10 million decrease is primarily due to the temporary accounting mismatch related to FIA and a decrease in the net investment spread as a result of an increase in the level of cash held during the quarter ended April 1, 2012, and other one-time items. Adjusted operating income is a non-U.S. GAAP insurance industry measure that eliminates the impact of realized investment gains (losses), the effect of interest rate changes on the FIA embedded derivative liability, and the effects of acquisition-related reinsurance transactions – see “Non-U.S. GAAP Measures” and Table 4 for a reconciliation of adjusted operating income to the Insurance segment’s operating income.Insurance segment FIA product sales improved substantially during the period to $540 million, compared to $344 million in the first quarter of Fiscal 2012. FIA sales volume in the second quarter was at a five-year high primarily driven by the newly launched Prosperity Elite SM product line. Accordingly, FGL has returned to the top ten market share position for FIA sales.
Harbinger Group Inc. Announces $1.1 Billion In Revenues And Continued Operational Progress At Operating Subsidiaries For Second Quarter Fiscal 2012
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