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Presidential Life Corporation (“Presidential Life” or the “Company”) (NASDAQ: PLFE) today announced results for the second quarter and six months ended June 30, 2012. Presidential Life, through its wholly owned subsidiary, Presidential Life Insurance Company, is engaged in the sale of individual fixed deferred and immediate annuities, life insurance and accident and health insurance products.
Net income for the six months ended June 30, 2012 was $6.9 million or $0.23 per share, compared with net income of $21.3 million or $0.72 per share for the six months ended June 30, 2011. Second quarter 2012 net income was $3.1 million or $0.11 per share, compared with net income of $13.8 million or $0.47 per share for the comparable quarter in 2011. Income before income taxes was $4.7 million and $21.1 million for the second quarters of 2012 and 2011, respectively, a period-over-period decrease of $16.4 million. The decline in income before income taxes of $16.4 million is principally due to a decrease in net realized investment gains of $15.1 million, a decrease in net investment income of $2.2 million, and an increase in general expenses of $1.3 million partially offset by decreases in other-than-temporary impairment (“OTTI”) losses of $1.7 million and the change in policy acquisition costs of $1.1 million. Income taxes were $1.6 million and $7.3 million for the second quarter of 2012 and 2011, respectively, a decline of $5.7 million.
Total revenues in the second quarter of 2012 were $60.4 million, a decrease of 18.7% or $13.9 million from $74.3 million in the second quarter 2011. Total revenues for the six months ended June 30, 2012 were $117.1 million, a decrease of 15.9% or $22.1 million from $139.2 million for the six months ended June 30, 2011. The decrease in revenues of $13.9 million for the second quarter was principally attributable to the aforementioned decline in net realized investment gains of $15.1 million.