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Insurer Torchmark cuts FY operating profit outlook
July 25, 2012 / 9:38 PM / in 5 years

Insurer Torchmark cuts FY operating profit outlook

* Sees FY oper profit $5.08-$5.26/shr vs $5.10-$5.40/shr prior view

* Q2 oper profit $1.30 vs est $1.30

* Total premium revenue rises 6 percent to $706.1 million

July 25 (Reuters) - Life and health insurer Torchmark Corp cut its full-year operating profit outlook, citing lower-than-expected net investment income.

The company now expects its operating profit for the year to be in the range of $5.08 to $5.26 per share, down from its earlier forecast of $5.10 to $5.40 per share.

Analysts on average were expecting $5.25 per share, according to Thomson Reuters I/B/E/S.

Operating profit, a key metric of profitability for insurers as it excludes certain investment gains and losses, rose to $1.30 per share for the second quarter from $1.09 a year earlier.

Analysts had expected the company, valued at $4.81 billion, to earn $1.30 per share.

Net profit fell to $129 million from $142.8 million. However, on per share basis, the company’s net earnings increased to $1.32 per share from $1.27 per share.

Total premium revenue rose 6 percent to $706.1 million.

Premium revenue from its life insurance segment -- the largest contributor to total revenue -- climbed 4 percent to $451 million.

Shares of the company closed at $50.37 on Wednesday on the New York Stock Exchange. They have risen about 3 percent in the last three months, outperforming the S&P Insurance Industry Index, which has fallen 5 percent in the same period.

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