Midwest Holding Inc. has announced a GAAP net income of $9.3 million for the second quarter of 2022, against a loss of $5 million for the prior year period.
Alongside the year-on-year improvement in net income, Midwest also reported a substantial rise in non-GAAP annuity direct written premium at $156 million, compared to $126 million from the prior year quarter.
At the same time, ceded premiums for the quarter were $60 million, compared to $86.1 million from the prior year period.
Additionally, investment income in Q2 22 was $10.5 million compared with $3.2 million in the prior- year’s second quarter.
Midwest noted that driving the change was an increase in invested assets as well as performance on those assets, benefiting from core capabilities developed around sourcing assets with a higher yield – generating approximately a 5.5% return on the investment portfolio.
CEO of Midwest, Georgette Nicholas, commented: “We are seeing strong results from the actions we took in the first quarter to position the Company for growth relating to distribution, pricing, products, investment management, and reinsurance. We are investing in technology and foundational capabilities to strengthen the business. We saw strong trends in premiums written in the second quarter.
“We are benefiting from movements in interest rates, as consumers seek stable returns, and from the performance of our investment portfolio. Overall, the second quarter showed very positive trends and positioned us for a strong start to the third quarter.
“Our opportunities are substantial to build on the value of our platform. The focus of the team continues to be on the key drivers of growth and profitability: Deepening distribution relationships, state expansion to achieve sales growth, reinsurance, investment management, and operational readiness and efficiency. With these five keys to our strategy, we will deliver on our commitment to shareholders to produce strong growth paired with a high return on capital.”
