P&C Other Operations

Third quarter 2013 underwriting loss was $10 million compared with $9 million in third quarter 2012. Third quarter 2013 results included unfavorable PYD of $2 million, before tax, while third quarter 2012 had unfavorable PYD of $1 million, before tax.

GROUP BENEFITSThird Quarter 2013 Highlights:
  • Core earnings of $36 million, up 57% from $23 million in third quarter 2012, due to improved group long-term disability results
  • After-tax core earnings margin of 3.9% improved significantly compared with 2.2% in third quarter 2012
  • Loss ratio improved 2.6 points from third quarter 2012 to 76.7% driven by improving long-term disability pricing and loss trends
GROUP BENEFITS            
($ in millions)         Three Months Ended
          Sept. 30 2013   Sept. 30 2012   Change
Fully insured premiums¹         $817   $926   (12%)
Loss ratio         76.7%   79.3%   2.6
Core earnings         $36   $23   57%

[1] Fully insured ongoing premiums excludes buyout premiums and premium equivalents

Group Benefits third quarter 2013 net income rose 3% to $31 million compared with $30 million in third quarter 2012. Although core earnings improved significantly, the increase was offset by an unfavorable change in after-tax net realized capital gains (losses) of $12 million. Core earnings, which exclude realized capital gains and losses, were $36 million in third quarter 2013, a 57% increase compared with $23 million in third quarter 2012, due to improved group long-term disability results.

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