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Presidential Life Corporation (“Presidential Life” or the “Company”) (NASDAQ: PLFE) today announced results for the third quarter and nine months ended September 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 nine months ended September 30, 2012 was $12.1 million or $0.41 per share, compared with net income of $24.2 million or $0.82 per share for the nine months ended September 30, 2011. Third quarter 2012 net income was $5.2 million or $0.18 per share, compared with net income of $2.9 million or $0.10 per share for the comparable quarter in 2011. Income before income taxes was $7.9 million and $4.4 million for the third quarters of 2012 and 2011, respectively, a period-over-period increase of $3.5 million. The growth in income before income taxes of $3.5 million is principally due to an increase in net realized gains of $2.1 million, a decrease in other-than-temporary-impairment losses (“OTTI”) of $2.8 million and a net decrease in liability for future policy benefits of $2.1 million, partially offset by an increase in general expenses of $2.1 million and a decrease in net investment spread of $1.4 million. Income taxes were $2.8 million and $1.5 million for the third quarter of 2012 and 2011, respectively, an increase of $1.3 million.
Total revenues in the third quarter of 2012 were $62.4 million, an increase of 14.1% or $7.7 million from $54.7 million in the third quarter 2011. Total revenues for the nine months ended September 30, 2012 were $179.5 million, a decrease of 7.4% or $14.3 million from $193.8 million for the nine months ended September 30, 2011. The increase in revenues of $7.7 million for the third quarter was principally attributable to the aforementioned increase in net realized investment gains of $2.1 million, lower OTTI losses of $2.8 million and higher annuity considerations.