Fidelity & Guaranty profit falls, beats expectations
November 25, 2014 by Matthew Patane
Fidelity & Guaranty Life saw its profits fall for the fourth quarter and 2014 fiscal year, but still beat expectations.
The Des Moines-based life insurance company reported operating income of $27.9 million, or 48 cents per share, for the fourth quarter that ended Sept. 30. That is down about 65 percent from $79.7 million, or $1.70 a share, for the same quarter last year.
The company also reported operating income of $135.9 million, or $2.43 per share, for the 2014 fiscal year. That is down from $138.3 million, or $2.94 per share, for 2013.
Analysts had expected Fidelity & Guaranty to report earnings per share of 45 cents for the quarter and $2.40 for the year.
The company saw higher sales of its annuities for the quarter and the year. Annuity sales for all of 2014 hit $2.2 billion, up from $1 billion in 2013.
While annuity sales rose, Fidelity & Guaranty reported higher benefits and expenses for the year and lower net investment gains.
Total revenues were $1.19 billion for 2014, down from $1.35 billion last year.
Fidelity, which trades under the symbol FGL, released its earnings after markets closed Wednesday.
Shares of FGL closed up 3 cents to $24 Wednesday.