Jefferson Pilot (JP) 8-K Other events

JEFFERSON-PILOT CORPORATION
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME

	Dec 31, 2003			Sep 30, 2003			Jun 30, 2003			Mar 31, 2003			Dec 31, 2002			Sep 30, 2002			Jun 30, 2002			Mar 31, 2002
(In thousands except share amounts)
Revenue:
Premiums and other considerations	$	243,303		$	237,629		$	238,951		$	230,825		$	212,005		$	215,038		$	213,133		$	200,966
U.L. & Investment product charges		171,472			180,106			167,154			172,244			161,807			161,522			158,965			155,642
Net investment income1		418,891			413,265			414,755			410,038			416,026			406,387			405,835			406,572
Realized investment (losses) gains		(42,814	)		(5,135	)		20,222			(19,068	)		(63,799	)		3,767			4,377			33,635
Communications sales		63,792			51,729			50,674			50,103			61,844			49,891			49,972			48,094
Broker-dealer concessions and other		28,367			28,206			24,634			23,581			23,991			24,141			29,407			27,187
Total revenue		883,011			905,800			916,390			867,723			811,874			860,746			861,689			872,096
Benefits and Expenses:
Insurance and annuity benefits		501,362			501,241			503,527			498,026			477,078			490,433			476,286			469,975
Insurance commissions, net of deferrals		27,537			31,333			24,603			24,990			23,359			28,081			32,322			30,973
General and administrative expenses, net of deferrals		40,754			38,566			38,467			31,406			64,725			33,664			35,249			33,701
Insurance taxes, licenses and fees		14,309			19,298			18,444			21,165			19,765			18,905			19,887			19,683
Amortization of policy acquisition costs and value of business acquired		86,880			91,375			81,653			81,537			82,109			71,357			69,055			63,274
Interest expense1		8,432			8,159			8,442			8,824			9,125			9,174			8,866			8,771
Communications operations		34,664			28,127			27,536			34,745			34,881			29,251			27,842			33,660
Total benefits and expenses		713,938			718,099			702,672			700,693			711,042			680,865			669,507			660,037
Income before income taxes		169,073			187,701			213,718			167,030			100,832			179,881			192,182			212,059
Income taxes		52,752			61,625			73,559			57,975			34,226			61,125			66,909			72,487
Net income	$	116,321		$	126,076		$	140,159		$	109,055		$	66,606		$	118,756		$	125,273		$	139,572
Quarterly return on equity2		18.6	%		17.0	%		16.9	%		16.5	%		14.8	%		15.6	%		16.0	%		15.6	%

1	Prior year amounts have been restated to conform to presentation under FIN 46.
2	Return on equity is calculated utilizing reportable segment results as the numerator and average equity excluding the impact of net unrealized gains as the denominator.

JEFFERSON-PILOT CORPORATION
INDIVIDUAL PRODUCTS SEGMENT

	Dec 31, 2003			Sep 30, 2003			Jun 30, 2003			Mar 31, 2003			Dec 31, 2002			Sep 30, 2002			Jun 30, 2002			Mar 31, 2002
(In Thousands)
UL-Type Products:
Net investment income	$	189,031		$	187,243		$	187,777		$	185,138		$	187,835		$	186,805		$	184,805		$	184,663
Interest credited to policyholders		(129,846	)		(130,497	)		(128,564	)		(126,471	)		(135,252	)		(137,230	)		(132,653	)		(129,469	)
Interest margin		59,185			56,746			59,213			58,667			52,583			49,575			52,152			55,194
Product charge revenue:
Cost of insurance charges		128,210			134,913			123,384			125,429			122,534			120,626			119,072			116,719
Expense charges		34,391			38,719			32,913			35,602			28,202			29,178			29,276			28,780
Surrender charges		7,888			6,756			9,961			10,325			9,891			10,201			9,030			8,877
Total product charge revenue		170,489			180,388			166,258			171,356			160,627			160,005			157,378			154,376
Death benefits and other insurance benefits		(63,117	)		(71,949	)		(66,105	)		(71,244	)		(55,537	)		(65,092	)		(59,667	)		(65,645	)
Expenses, excluding amortization of DAC and VOBA		(20,696	)		(25,306	)		(26,608	)		(23,813	)		(20,122	)		(27,791	)		(26,823	)		(26,986	)
Amortization of DAC and VOBA		(47,986	)		(50,002	)		(40,120	)		(40,930	)		(48,552	)		(38,763	)		(35,127	)		(32,001	)
Miscellaneous income (expense)		(859	)		(17	)		(1,236	)		(3	)		(3	)		55			12			93
UL-type product income before taxes		97,016			89,860			91,402			94,033			88,996			77,989			87,925			85,031
Traditional Products:
Premiums and other considerations		44,315			41,253			42,245			44,169			42,900			44,820			45,630			47,079
Net investment income		41,309			40,759			41,200			41,937			45,270			44,537			44,445			45,285
Benefits		(50,686	)		(42,299	)		(51,413	)		(53,378	)		(49,668	)		(44,268	)		(53,803	)		(60,538	)
Expenses, excluding amortization of DAC and VOBA		(6,719	)		(6,787	)		(5,493	)		(5,161	)		(9,551	)		(6,467	)		(5,645	)		(6,030	)
Amortization of DAC and VOBA		(3,511	)		(3,470	)		(4,566	)		(4,694	)		(2,991	)		(2,954	)		(3,499	)		(3,580	)
Traditional product income before taxes		24,708			29,456			22,973			22,873			25,960			35,668			27,128			22,216
Income before income taxes		121,724			119,316			114,375			116,906			114,956			113,657			115,053			107,247
Income taxes		(41,279	)		(40,703	)		(40,031	)		(40,917	)		(40,234	)		(39,780	)		(40,268	)		(37,537	)
Reportable segment results	$	80,445		$	78,613		$	74,344		$	75,989		$	74,722		$	73,877		$	74,785		$	69,710
Operating Measures
Annualized equivalent life insurance premiums:
- Individual Markets Excl. Community Banks and BOLI	$	61,408		$	48,523		$	49,360		$	56,031		$	60,191		$	51,726		$	51,647		$	38,766
- Community Banks and BOLI		2,189			2,153			—			5,411			8,470			7,348			19,592			22,591
	$	63,597		$	50,676		$	49,360		$	61,442		$	68,661		$	59,074		$	71,239		$	61,357
Average UL policyholder fund balances	$	10,823,708		$	10,657,827		$	10,507,662		$	10,351,111		$	10,174,141		$	9,989,816		$	9,778,948		$	9,558,857
Average VUL separate account assets		1,384,892			1,277,027			1,166,356			1,105,805			1,085,865			1,137,553			1,289,788			1,331,981
Total	$	10,208,600		$	11,934,854		$	11,674,018		$	11,456,916		$	11,260,006		$	11,127,369		$	11,068,736		$	10,890,838
Average Face Amount of Insurance In Force:
- Total	$	165,787,000		$	164,669,000		$	164,139,000		$	163,794,000		$	162,933,000		$	161,863,000		$	160,749,000		$	160,061,000
- UL-Type Contracts		124,981,000			123,497,000			122,716,000			122,245,000			121,283,000			120,168,000			119,174,000			118,577,000
Average assets	$	17,540,855		$	17,244,613		$	16,977,002		$	16,750,174		$	16,531,675		$	16,355,557		$	16,300,972		$	16,219,037

JEFFERSON-PILOT CORPORATION
ANNUITY AND INVESTMENT PRODUCTS SEGMENT

	Dec 31, 2003			Sep 30, 2003			Jun 30, 2003			Mar 31, 2003			Dec 31, 2002			Sep 30, 2002			Jun 30, 2002			Mar 31, 2002
(In Thousands)
Investment product charges and premiums	$	2,637		$	1,645		$	2,466		$	2,040		$	2,742		$	2,907		$	2,980		$	3,618
Net investment income		148,183			145,591			147,387			145,478			150,247			145,043			140,886			140,630
Broker-dealer concessions and other		26,563			26,489			23,090			22,190			22,105			22,585			27,215			25,407
Total revenue		177,383			173,725			172,943			169,708			175,094			170,535			171,081			169,655
Policy benefits		108,116			101,203			103,692			103,575			111,002			110,180			103,157			100,402
Insurance expenses		11,170			17,005			14,534			13,106			11,869			9,962			12,516			12,467
Broker-dealer expenses		23,932			24,901			21,560			20,348			20,374			21,266			25,664			23,937
Total benefits and expenses		143,218			143,109			139,786			137,029			143,245			141,408			141,337			136,806
Income before income taxes		34,165			30,616			33,157			32,679			31,849			29,127			29,744			32,849
Income taxes		11,856			10,644			11,631			11,464			11,147			10,194			10,411			11,497
Reportable segment results	$	22,309		$	19,972		$	21,526		$	21,215		$	20,702		$	18,933		$	19,333		$	21,352
Operating Measures
Fixed annuity premium sales	$	320,989		$	187,780		$	132,336		$	115,339		$	187,440		$	365,300		$	255,323		$	186,424
Variable annuity premium sales		—			213			589			1,041			1,279			1,510			1,864			5,064
Total	$	320,989		$	187,993		$	132,925		$	116,380		$	188,719		$	366,810		$	257,187		$	191,488
Investment product sales	$	1,054,345		$	926,296		$	662,922		$	614,665		$	632,853		$	754,358		$	773,001		$	743,876
Average fund balances:
Fixed annuity	$	8,611,290		$	8,428,312		$	8,319,515		$	8,242,025		$	8,127,981		$	7,905,171		$	7,674,120		$	7,532,393
Variable annuity		346,699			343,529			335,893			335,366			351,830			385,896			454,759			492,913
Total annuity	$	8,957,989		$	8,771,841		$	8,655,408		$	8,577,391		$	8,479,811		$	8,291,067		$	8,128,879		$	8,025,306
Effective investment spreads for fixed annuities		1.83	%		1.94	%		1.88	%		1.89	%		1.86	%		1.81	%		1.82	%		1.84	%
Fixed annuity surrenders as a % of beginning fund balance		9.1	%		8.5	%		7.8	%		7.9	%		9.7	%		8.5	%		10.2	%		9.2	%
Fixed annuity general and administrative expenses as a % of average invested assets		0.19	%		0.15	%		0.13	%		0.18	%		0.21	%		0.20	%		0.21	%		0.22	%
Average assets	$	9,761,055		$	9,534,079		$	9,449,064		$	9,404,408		$	9,323,584		$	9,135,735		$	8,962,901		$	8,834,628

JEFFERSON-PILOT CORPORATION
BENEFIT PARTNERS SEGMENT

	Dec 31, 2003			Sep 30, 2003			Jun 30, 2003			Mar 31, 2003			Dec 31, 2002			Sep 30, 2002			Jun 30, 2002			Mar 31, 2002
(In Thousands)
Premiums and other considerations	$	192,592		$	190,313		$	191,322		$	181,792		$	162,643		$	165,094		$	162,064		$	148,339
Net investment income		15,487			15,879			16,514			15,882			15,679			14,938			14,565			15,022
Total revenues		208,079			206,192			207,836			197,674			178,322			180,032			176,629			163,361
Policy benefits		142,397			148,397			147,831			137,658			119,140			128,726			120,840			109,227
Expenses		40,755			42,368			40,765			41,682			39,440			37,120			36,521			34,265
Total benefits and expenses		183,152			190,765			188,596			179,340			158,580			165,846			157,361			143,492
Income before income taxes		24,927			15,427			19,240			18,334			19,742			14,186			19,268			19,869
Income taxes		8,725			5,399			6,734			6,417			6,912			4,965			6,744			6,954
Reportable segment results	$	16,202		$	10,028		$	12,506		$	11,917		$	12,830		$	9,221		$	12,524		$	12,915
Operating Measures
Life, Disability and Dental:
Annualized sales	$	48,753		$	38,530		$	39,764		$	72,960		$	50,940		$	38,383		$	36,451		$	56,101
Reportable segments results:
Life	$	6,575		$	4,483		$	4,189		$	2,510		$	4,817		$	3,793		$	5,641		$	5,508
Disability		7,330			5,374			7,084			8,396			6,625			3,779			4,595			5,588
Dental		1,949			1,958			986			336			1,305			781			1,056			1,015
Other		348			(1,787	)		247			675			83			868			1,232			804
Total	$	16,202		$	10,028		$	12,506		$	11,917		$	12,830		$	9,221		$	12,524		$	12,915
Loss ratio:
Life		73.1	%		76.6	%		78.5	%		82.0	%		73.8	%		78.5	%		73.4	%		72.7	%
Disability		70.2	%		72.9	%		69.7	%		63.4	%		67.3	%		73.9	%		71.8	%		68.8	%
Dental		72.6	%		72.4	%		78.0	%		79.8	%		72.5	%		75.1	%		75.4	%		75.4	%
Combined		71.8	%		74.3	%		74.7	%		74.1	%		71.0	%		76.1	%		73.1	%		71.7	%
Total expenses as a % of premiums		21.2	%		22.3	%		21.4	%		23.0	%		24.3	%		22.5	%		22.7	%		23.1	%

JEFFERSON-PILOT CORPORATION
COMMUNICATIONS SEGMENT

	Dec 31, 2003		Sep 30, 2003		Jun 30, 2003		Mar 31, 2003		Dec 31, 2002		Sep 30, 2002		Jun 30, 2002		Mar 31, 2002
(In Thousands)
Communications revenues, net	$	63,792	$	51,729	$	50,674	$	50,478	$	61,844	$	49,891	$	49,972	$	48,643
Cost of sales		15,824		9,306		7,208		13,453		14,229		9,619		7,253		13,052
Operating expenses		18,840		18,821		20,328		21,292		20,652		19,632		20,589		20,608
Broadcast cash flow		29,128		23,602		23,138		15,733		26,963		20,640		22,130		14,983
Depreciation and amortization		2,273		1,994		2,087		2,103		2,371		1,924		1,880		1,908
Corporate general and administrative expenses		2,090		1,697		1,155		1,490		2,244		2,260		1,851		1,340
Net interest expense and other income		468		514		561		588		594		717		761		787
Income before income taxes		24,297		19,397		19,335		11,552		21,754		15,739		17,638		10,948
Income taxes		8,906		8,031		7,762		4,488		8,733		5,986		7,127		4,403
Reportable segment results	$	15,391	$	11,366	$	11,573	$	7,064	$	13,021	$	9,753	$	10,511	$	6,545

Jefferson-Pilot Corporation
Insurance Segments Expense Analysis

	Dec 31, 2003			Sep 30, 2003			Jun 30, 2003			Mar 31, 2003			Dec 31, 2002			Sep 30, 2002			Jun 30, 2002			Mar 31, 2002
(In Thousands)
Individual Products
Commissions	$	83,370		$	66,616		$	66,415		$	79,184		$	73,923		$	66,135		$	67,385		$	63,091
General and administrative expenses		31,738			28,672			32,694			30,096			33,280			30,636			32,367			30,404
Taxes, licenses and fees		9,558			13,326			12,512			14,897			13,109			13,652			13,915			14,690
Total commissions and expenses incurred		124,666			108,614			111,621			124,177			120,312			110,423			113,667			108,185
Less commissions and expenses capitalized		(97,251	)		(76,521	)		(79,520	)		(95,203	)		(90,639	)		(76,165	)		(81,199	)		(75,168	)
Amortization of DAC and VOBA		51,497			53,472			44,686			45,624			51,543			41,717			38,626			35,581
Net expense	$	78,912		$	85,565		$	76,787		$	74,598		$	81,216		$	75,975		$	71,094		$	68,597
Annuity and Investment Products
Insurance companies:
Commissions — insurance companies	$	15,087		$	8,634		$	6,955		$	6,054		$	11,856		$	17,976		$	11,964		$	11,164
General and administrative expenses		5,248			4,299			4,270			4,372			6,260			5,631			5,103			4,638
Taxes, licenses and fees		564			441			436			497			434			425			471			488
Gross commissions and expenses incurred		20,899			13,374			11,661			10,923			18,550			24,032			17,538			16,290
Less commissions and expenses capitalized		(19,799	)		(8,899	)		(9,231	)		(9,317	)		(14,607	)		(22,725	)		(15,168	)		(14,639	)
Amortization of DAC and VOBA		10,070			12,530			12,104			11,500			7,926			8,655			10,146			10,816
Net expense — insurance companies		11,170			17,005			14,534			13,106			11,869			9,962			12,516			12,467
Broker/Dealer:
Commissions		21,312			22,001			19,190			18,071			17,667			18,506			22,971			21,499
Other		2,620			2,900			2,370			2,277			2,707			2,760			2,693			2,438
Net expense — broker/dealer		23,932			24,901			21,560			20,348			20,374			21,266			25,664			23,937
Net expense	$	35,102		$	41,906		$	36,094		$	33,454		$	32,243		$	31,228		$	38,180		$	36,404
Benefit Partners
Commissions	$	21,079		$	21,825		$	21,539		$	20,821		$	19,774		$	18,832		$	18,455		$	17,682
General and administrative expenses		19,721			18,247			18,214			19,442			18,912			17,165			16,746			16,812
Taxes, licenses and fees		3,804			5,060			5,061			5,263			4,507			4,355			5,031			3,993
Total commissions and expenses incurred		44,604			45,132			44,814			45,526			43,193			40,352			40,232			38,487
Less commissions and expenses capitalized		(29,156	)		(28,134	)		(28,909	)		(28,252	)		(26,395	)		(24,207	)		(23,990	)		(23,423	)
Amortization of DAC and VOBA		25,307			25,370			24,860			24,408			22,642			20,975			20,279			19,201
Net expense	$	40,755		$	42,368		$	40,765		$	41,682		$	39,440		$	37,120		$	36,521		$	34,265

DAC and VOBA Balance Sheet Analysis

	Dec 31, 2003			Sep 30, 2003			Jun 30, 2003			Mar 31, 2003			Dec 31, 2002			Sep 30, 2002			Jun 30, 2002			Mar 31, 2002
Balance, beginning of period	$	2,111,305		$	2,006,760		$	2,067,710		$	2,027,317		$	1,999,932		$	2,070,525		$	2,169,713		$	2,069,570
Amount capitalized		146,208			113,552			117,822			132,771			131,805			123,094			120,357			110,903
Amortization expense		(86,880	)		(91,375	)		(81,653	)		(81,537	)		(82,109	)		(71,357	)		(69,055	)		(63,274	)
Adjustment for realized investment gains and losses		1,239			16,092			(1,957	)		(963	)		(2,780	)		(2,364	)		320			(82	)
Adjustment for FAS 115		58,572			66,276			(95,162	)		(9,878	)		(19,531	)		(119,966	)		(150,810	)		52,596
Balance, end of period	$	2,230,444		$	2,111,305		$	2,006,760		$	2,067,710		$	2,027,317		$	1,999,932		$	2,070,525		$	2,169,713