Jupai (NYSE:JP)
Historical Stock Chart
From Aug 2019 to Aug 2024
![Click Here for more Jupai Charts. Click Here for more Jupai Charts.](/p.php?pid=staticchart&s=NY%5EJP&p=8&t=15)
Jefferson Pilot Reports 14 Percent Increase in Third-Quarter Earnings Per Share
Before Realized Investment Gains, 9 Percent Increase in Net Income Per Share
GREENSBORO, N.C., Oct. 27 /PRNewswire/ -- Jefferson-Pilot Corporation , parent
of the Jefferson Pilot Financial companies and one of the nation's leading
providers of universal and variable universal life insurance and annuities,
today reported results for the third quarter of 2003. Jefferson Pilot earned
$0.91 per share before realized investment gains in the quarter, up 14 percent
from third-quarter 2002 earnings before realized gains of $0.80. Net income per
share for the third quarter of 2003 increased 9 percent to $0.88, including net
realized investment losses of $0.03 per share, versus net income per share of
$0.81 in the third quarter of 2002, including net realized investment gains of
$0.01.
For the first nine months of 2003, Jefferson Pilot's earnings before realized
investment gains increased 11 percent to $2.64 per share from $2.38 per share
for the first three quarters of 2002. 2003 year-to-date net income per share
including realized investment losses of $0.02 per share was $2.62, versus $2.57
including realized investment gains of $0.19 for the same period last year.
In addition to net income, the company considers earnings before realized
investment gains and losses (or "reportable segment results"), a non-GAAP
financial measure, to be an important indicator of financial performance. We
believe that the combined presentation and discussion of earnings before
realized investment gains and losses, together with net income, provides
relevant and useful information. Earnings before realized investment gains and
losses differs from net income in that it excludes net after-tax realized
investment gains and losses.
All per-share results are on a diluted basis.
Jefferson Pilot's results for the third quarter reflected good asset growth,
continuing robust profitability, and improving investment performance.
Stockholders' equity per share grew 9 percent to $27.00 from $24.79 at year- end
2002. Because of its strong profitability and capital resources, Jefferson
Pilot was able to continue buying its common stock, retiring one million shares
in the third quarter.
Earnings from Jefferson Pilot's Individual Products business increased 6 percent
in the third quarter to $78.6 million from $73.9 million in the third quarter of
2002. Year to date, Individual Product earnings were up 5 percent to $228.9
million from $218.4 million in the first nine months of 2002. Year to date,
individual market life insurance sales are up 8%, demonstrating the continuing
success of the Premier Partnering strategy. Third quarter sales were off from
the prior year, in part reflecting a lag in paid sales caused by new universal
life product introductions. The new and comprehensive series of UL products --
two in the market currently and the last to be issued in early November -- are
responsive to regulatory requirements and shifting consumer preferences, and
will position Jefferson Pilot competitively across a broad range of needs.
Earnings from the Annuity and Investment Products segment increased 5 percent in
the quarter to $20.0 million from $18.9 million a year earlier. Year to date,
segment earnings were also up 5 percent to $62.7 million from $59.6 million for
the comparable period of 2002. Fixed annuity fund balance growth was solid in
the quarter, rising 7 percent to $8.4 billion from $7.9 billion a year earlier.
Third-quarter fixed annuity sales of $187.8 million, while below third-quarter
2002 sales, showed solid growth compared to the second quarter of 2003,
reflecting good market acceptance of Jefferson Pilot's new equity indexed
products.
The Benefit Partners group insurance segment earned $10.0 million in the third
quarter, 9 percent above third-quarter results last year. Benefit Partners'
earnings for the quarter were reduced by a $2.3 million reserve charge related
to a closed block of medical insurance. Year to date, Benefit Partners'
earnings totaled $34.5 million, including the medical reserve, versus $34.7
million for the first nine months of 2002. Benefit Partners' results reflected
solid fundamentals in dental, long-term and short-term disability results, and
modest improvement in group life results. Group life loss ratios improved in
the third quarter from the first half of the year, reflecting adjustments of
policy terms and underwriting in the segments of the life business where loss
ratios have been somewhat higher then expected. Year to date, total sales are
up 16 %, while sales were flat in the third quarter. Third quarter sales results
are expected to compare favorably to industry results.
Jefferson-Pilot Communications' third-quarter results were excellent, with
earnings increasing 17 percent to $11.4 million from $9.8 million in the third
quarter of 2002. Nine-month Communications earnings grew 12 percent to $30.0
million from $26.8 million. Broadcast cash flow for the quarter grew 14 percent
to $23.6 million from $20.6 million in the year-earlier quarter, and increased 8
percent to $62.5 million from $57.8 million for the first nine months.
The Corporate and Other segment benefited in the quarter from higher income from
equity investments and lower interest expense. Third-quarter earnings before
realized investment gains and losses in the segment increased to $10.0 million
from $4.5 million in the third quarter last year. Realized net investment
losses for the quarter totaled $3.9 million, reflecting $14.3 million of net
realized investment losses and a $10.4 DAC offset. Bond write-downs were
dramatically lower than in the prior-year quarter, a result of continuing
improvement in the corporate credit environment as well as proactive portfolio
management. Total segment earnings were $6.1 million for the quarter, compared
to $7.0 million for the third quarter a year ago. For the nine months, segment
earnings before realized investment gains and losses were $22.3 million, versus
$17.0 million last year, and total segment earnings amounted to $19.2 million
versus $44.1 million.
During the third quarter, Jefferson Pilot bought 1,000,000 of its shares in the
open market for a total investment of $43.7 million, bringing year-to- date
purchases to a total of 2,500,000 shares at a cost of $102.3 million.
Commenting on the quarter, Jefferson Pilot CEO David A. Stonecipher said
"Jefferson Pilot produced excellent results in the third quarter, with earnings
increasing in each of our business segments. Premier Partnering is continuing
to strengthen our individual life insurance business and to build our key
distribution channels. Our Benefit Partners business showed progress.
Communications' earnings not only were excellent but also exceeded broadcasting
industry norms, as our properties have continued to excel competitively and
increase their market share. Throughout our operations, our proven ability to
execute our business plans as efficiently as possible is a compelling
competitive advantage, as is Jefferson Pilot's strong balance sheet and
financial flexibility. And, while we strive to build each of our businesses
aggressively, we always remain vigilant about profitability -- as we
demonstrated again this quarter -- with a view toward maintaining Jefferson
Pilot's long and dependable record of performance for shareholders."
Jefferson-Pilot Corporation, a holding company, is one of the nation's largest
shareholder-owned life insurance companies. Jefferson Pilot's life insurance
and annuity companies, principally Jefferson-Pilot Life Insurance Company,
Jefferson Pilot Financial Insurance Company, and Jefferson Pilot LifeAmerica
Insurance Company, together known as Jefferson Pilot Financial, offer full lines
of individual and group life insurance products as well as annuity and
investment products. Jefferson-Pilot Communications Company owns and operates
three network television stations and 17 radio stations, and produces and
syndicates sports programming. Additional information on Jefferson-Pilot can be
found at http://www.jpfinancial.com/.
In this release, the terms "operating earnings," "earnings," "segment earnings,"
"earned," and "earnings before realized investment gains or losses," refer to
all elements of net income available to common stockholders except realized
gains or losses on sales, write-downs, or impairments of investments ("realized
investment gains or losses"). Realized investment gains or losses, as defined,
are net of related income taxes, and are reported in the Corporate and Other
segment.
This release includes forward-looking statements, and any forward-looking
statements may turn out to be wrong. They can be affected by inaccurate
assumptions or by known or unknown risks and uncertainties that could affect our
actual results significantly. These risks and uncertainties include, among
others, general economic conditions, the impact on the economy of any further
terrorist activities or any U.S. military engagements, and interest rate levels,
changes and fluctuations, all of which can impact our sales, investments, and
earnings; competitive factors, including pricing pressures, technological
developments, new product offerings, and the emergence of new competitors;
changes in federal and state taxes; changes in the regulation of the financial
services industry; or changes in other laws and regulations and their impact.
We undertake no obligation to publicly correct or update any forward-looking
statements. Readers are advised to consult any further disclosures we make on
related subjects in our press releases and filings with the SEC; in particular,
see the section entitled "External Trends and Forward Looking Information," and
other sections it may reference, in our most recent 10-K report to the SEC, as
it may be updated in our subsequent 10-Q and 8-K reports.
Jefferson-Pilot Corporation and Subsidiaries
2003 Report
Three Months Ended Nine Months Ended
Sept 30, 2003 Sept 30, 2002 Sept 30, 2003 Sept 30, 2002
Basic earnings per
share available to
common stockholders,
before gains (losses)
from sale of
investments $ 0.92 $ 0.81 $ 2.66 $ 2.40
Gains (losses) from
sale of investments,
net of income taxes (0.03) 0.01 (0.02) 0.19
Basic earnings per
share available to
common
stockholders $ 0.89 $ 0.82 $ 2.64 $ 2.59
Diluted earnings
per share available to
common stockholders,
before gains
(losses) from sale of
investments $ 0.91 $ 0.80 $ 2.64 $ 2.38
Gains (losses) from
sale of investments, net
of income taxes (0.03) 0.01 (0.02) 0.19
Diluted earnings
per share available to
common
stockholders $ 0.88 $ 0.81 $ 2.62 $ 2.57
(Dollars in thousands)
Income available to
common stockholders,
before gains (losses)
from sale of
investments $129,938 $116,308 $378,402 $356,445
Gains (losses) from
sale of investments,
net of income
taxes (3,862) 2,448 (3,112) 27,156
Net income available to
common
stockholders $126,076 $118,756 $375,290 $383,601
Average number of
shares
outstanding 141,365,238 144,641,968 142,063,945 148,017,421
Average number of
shares outstanding
- assuming
dilution 142,522,449 145,822,346 143,074,780 149,533,658
DATASOURCE: Jefferson-Pilot Corporation
CONTACT: John T. Still, III of Jefferson-Pilot Corporation,
+1-336-691-3382
Web site: http://www.jpfinancial.com/