0000059558-26-000035
SEC filingRevenue grew 13% to $5.3B, while net loss narrowed to $172M from $722M, driven by improved annuity product features and lower investment losses.
Revenue for the first quarter of 2026 was $5.3 billion, up 13% from $4.7 billion in the prior-year quarter. The increase was primarily driven by higher fee income from higher average daily separate account balances and higher net investment income. This growth reflects the company's ability to generate revenue from asset-based fees and investment performance.
Net loss improved to $172 million from $722 million in the prior-year quarter, a 76% improvement. The narrower loss was driven by lower net annuity product features loss and favorable reinsurance embedded derivatives. The improvement in annuity product features was supported by lower benefits and policyholder liability remeasurement gains, partially offset by less favorable mortality due to higher claims incidence and aging of the block.
Net cash provided by operating activities was $138 million, compared to a use of $272 million in the prior-year quarter. The positive cash flow reflects improved operating results, including lower net losses and favorable changes in working capital. This strengthens the company's liquidity position.
The Life Insurance segment returned to profitability, driven by lower benefits and policyholder liability remeasurement gains. These gains resulted from a decrease in the change in reserves for universal life-type contracts with secondary guarantees. The improvement was partially offset by less favorable mortality due to higher claims incidence and aging of the block.
The Group Protection segment reported higher operating income, benefiting from premium growth and favorable mortality experience. This was partly offset by higher commissions and other expenses due to higher other costs pertaining to business operations. The segment continues to perform well despite expense pressures.