Group, Voluntary & Worksite Benefits
Operating earnings for Group, Voluntary & Worksite Benefits were $167 million, down 30% due to a write-down of an intangible asset in the dental business and higher catastrophe losses. Premiums, fees & other revenues for Group, Voluntary & Worksite Benefits were $4.0 billion, up 8% due to favorable sales and persistency across the business, particularly in dental.
Corporate Benefit Funding
Operating earnings for Corporate Benefit Funding were $305 million, up 35% mostly due to strong interest margins and lower expenses. Premiums, fees & other revenues for Corporate Benefit Funding were $1.9 billion, up from $834 million due to the previously-mentioned conversion of a participating pension contract to a nonparticipating closeout during the quarter, as well as an increase in pension closeout sales.Latin America Operating earnings for Latin America were $148 million, up 20% (18% on a constant currency basis) due to business growth in several countries and a one-time tax-related benefit. Premiums, fees & other revenues in Latin America were $839 million, up 6% (4% on a constant currency basis). Total sales for the region increased 26%, driven by growth in Mexico, Chile, Brazil and Argentina. ASIA Operating earnings for Asia were $198 million, down 24% as growth in the business, continued expense discipline and higher net investment income were offset by the negative impact of the annual review of actuarial assumptions. This annual review lowered operating earnings by $62 million, after tax, and mostly reflects changes in long-term lapse assumptions in Japan. Premiums, fees & other revenues in Asia were $2.5 billion, up 11% (14% on a constant currency basis) due to strong revenue growth in Japan, Korea and Australia as well as improved persistency in Japan. Total sales for the region declined 4% as consistent sales in Japan and Korea were offset by declines in other countries.