“The Presidential Life management team remains focused on providing high quality service to its customers as the sale of the Company to Athene Holding Ltd. continues to progress,” said Donald Barnes, Vice Chairman of the Board, CEO and President.Key Items for the Third Quarter Results
- Our investment spread margin 1 totaled 0.69% for the nine months ended September 30, 2012 compared to 0.91% for the nine months ended September 30, 2011. The decline primarily relates to the effect of lower market reinvestment yields on the company’s fixed income portfolio, partly offset by lower OTTI losses in the first nine months of 2012 relative to 2011. Net realized investment gains and OTTI losses tend to fluctuate from period-to-period as a result of changing economic conditions.
- Total annuity sales 2 were $13.8 million and $12.9 million in the third quarter 2012 and 2011, respectively, an increase of $0.9 million or 7.0% compared to 2011 levels as the low interest rate environment continues to challenge sales of fixed annuity products.
- Deferred annuity surrenders were $28.4 million in the third quarter of 2012 compared to $24.2 million for the same period in 2011, a 17.4% increase, representing average surrender rates of 1.42% and 1.30% for the third quarters of 2012 and 2011, respectively.
- Our statutory capital base remains strong at September 30, 2012 with our estimated Risk-Based Capital ratio 3 at 571% compared with 556% at December 31, 2011.