Insurance FIA product sales improved substantially during the third quarter of Fiscal 2012 to $461 million, compared to $142 million in the comparable period last year. FIA sales volume in the third quarter was primarily driven by continued sales momentum of the newly launched Prosperity Elite SM product line. Accordingly, FGL has risen to as high as the top four market share position for FIA sales in 2012. FGL also experienced lower than expected surrender activity, growing overall assets under management to approximately $17 billion during the past two fiscal quarters.The Insurance segment had an operating loss of $1 million for the third quarter of Fiscal 2012 compared to income of $50 million in the same period of Fiscal 2011. The decrease in the third quarter of Fiscal 2012 operating income compared to the third quarter of Fiscal 2011 was affected by lower interest rates period over period and a change in discount rates, which resulted in a $32 million adverse net effect in the FIA embedded derivative liability and a $7 million net effect of holding excess cash and cash equivalents. The current quarter also included an $11 million increase of primarily a one-time item in claims liability, after reinsurance, in connection with FGL’s use of the U.S. Social Security Administration’s Death Master File and similar databases to identify potential life insurance claims that have not yet been presented to FGL.
Harbinger Group Inc. Reports $1 Billion In Revenues For Third Quarter Fiscal 2012 On Continued Progress At Operating Subsidiaries
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