(May 12 – 11:00) – Maritime Life released its first quarter results this morning, showing much lower net income. The firm is reporting net income of $5.3 million, down from $11.8 million in the period a year ago. Although operating income was up 13.6%, the firm says that the costs of integrating Aetna Canada impacted the bottom line.
Insurance sales were flat on a combined basis. “Customer retention for group insurance has been excellent. It’s a result of the commitment Maritime Life employees make to customer service,” said Bill Black, president and chief executive officer of Maritime Life. Investment product sales are up 43% year over year.
Apart from integration costs the firm also took a hit on higher than expected mortality among the clients it acquired. “We don’t expect claims fluctuations to have a long-term impact on profitability,” said Black. “The costs of integrating the two companies will continue to impact profitability in the short term. However, we believe the acquisition will have excellent long-term benefits.”