Exhibit 99
Jefferson Pilot Reports Nine Percent Increase in Earnings Per Share Before
Realized Investment Losses
GREENSBORO, N.C., April 28 /PRNewswire-FirstCall/ -- Jefferson-Pilot
Corporation (NYSE: JP), 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 first quarter of 2003.
Jefferson Pilot's net income per share for the first quarter was $0.76
including net realized investment losses of $0.09, versus net income per share
of $0.92 in the first quarter of 2002, including net realized investment gains
of $0.14. Jefferson Pilot's earnings per share before realized investment
gains and losses increased nine percent in the first quarter of 2003 to $0.85
from $0.78 in the first quarter of 2002.
All per-share results are on a diluted basis.
Earnings from Jefferson Pilot's Individual Products segment increased nine
percent to $76.0 million in the first quarter from $69.7 million in the first
quarter of 2002. Sales growth from core agency channels was excellent.
Annualized first-year premiums grew 48 percent versus the first quarter last
year excluding small-case BOLI ("Target Marketing") sales, which were
intentionally limited due to market conditions. Life policyholder fund
balance growth also was strong at eight percent, to a record $10.4 billion.
The Annuity and Investment Products segment earned $21.2 million in the
first quarter, versus $21.4 million a year ago. Fixed annuity sales once
again were significantly lower for the quarter, as Jefferson Pilot continued
to follow a highly disciplined approach to product pricing, electing not to
pursue business at dilutive returns. Despite lower sales, fixed annuity
average fund balances showed good growth of nine percent for the quarter, as
surrenders remained at a low level. Investment product sales totaled $615
million in the quarter, a good result notwithstanding a decline from the first
quarter last year.
Benefit Partners' segment earnings for the quarter of $11.9 million,
compared to $12.9 in the first quarter of 2002, were reduced by an adverse
mortality fluctuation in group life insurance. Loss ratios for both short-
term and long-term group disability lines continued to be good, and expenses
remained well controlled. Benefit Partners' sales growth was excellent,
reflecting continued growth in the sales force, higher productivity among the
sales reps, and the advantages Jefferson Pilot enjoys in the group insurance
business from high financial strength ratings and superior technology. Group
life, disability, and dental products sales reached almost $73 million in the
quarter, up 30 percent versus a year ago.
Through effective expense control, Jefferson-Pilot Communications
leveraged sales growth of four percent into earnings growth of eight percent,
with earnings rising to $7.1 million in the quarter from $6.5 million a year
ago. Broadcast cash flow grew five percent to $15.7 million from $15.0
million in the first quarter last year. Notable Communications trends in the
first quarter included good growth in television profits offset by lower than
expected results from sports operations.
The Corporate and Other segment recorded earnings before realized
investment losses of $5.3 million in the quarter, versus $7.2 million before
investment gains in the year-earlier period. Realized net investment losses
of $12.4 million in the quarter produced a net segment loss of $7.1 million,
compared to earnings, including net realized investment gains of $21.9
million, of $29.1 million in the first quarter of 2002. While appropriate
write downs of distressed securities served to strengthen Jefferson Pilot's
asset quality, investment credit trends improved somewhat in the first
quarter, with the bond portfolio experiencing limited defaults and a
moderating trend in rating downgrades.
During the first quarter, Jefferson Pilot bought 1,000,000 of its shares
for a total investment of $37.9 million.
Commenting on the quarter, Jefferson Pilot CEO David A. Stonecipher said,
"Jefferson Pilot again produced good overall results notwithstanding a
challenging business environment. In our important individual life insurance
business, Premier Partnering continued to deliver excellent growth in core
agency life insurance sales. Once again our Annuity and Investment Products
business declined to chase sales in a very difficult pricing environment,
instead following the same sound, disciplined approach we have always pursued.
Our Benefit Partners business continued to pursue successfully its well-
conceived growth strategy based on sound product design and technological
leadership. Jefferson-Pilot Communications again demonstrated its ability to
produce bottom-line growth in a less-than-robust economy."
"There is no doubt," Stonecipher continued, "that the environment remains
challenging. While we are pleased that the credit market appears to be
stabilizing and bond losses are moderating, low investment yields continue to
demand tremendous vigilance in pricing and managing life insurance and annuity
product lines. However, Jefferson Pilot's balance sheet quality remains very
high, our profitability is strong, and we have flexibility to continue
executing appropriate strategies to keep Jefferson Pilot an industry leader in
growth and profitability."
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 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, writedowns, 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, the risk that Jefferson Pilot might fail to complete successfully our
strategy for increasing individual life insurance sales; general economic
conditions, the impact on the economy of any further terrorist activities, and
interest rate 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
First Quarter 2003 Results
Three Months Ended
Mar 31, 2003 Mar 31, 2002
Basic earnings per share available to
common
stockholders, before gain
(losses) from sale of
investments $0.85 $0.78
Gain (losses) from sale of
investments, net of income taxes (0.09) 0.15
Basic earnings per share available to
common
stockholders $0.76 $0.93
Diluted earnings per share available
to common
stockholders, before gain
(losses) from sale of
investments $0.85 $0.78
Gain (losses) from sale of
investments, net of income taxes (0.09) 0.14
Diluted earnings per share available
to common
stockholders $0.76 $0.92
(Dollars in thousands)
Income available to common
stockholders, before
gain (losses) from sale of
investments $121,449 $117,709
Gain (losses) from sale of
investments, net of income taxes (12,394) 21,863
Net income available to common
stockholders $109,055 $139,572
Average number of shares outstanding 142,804,138 150,099,358
Average number of shares outstanding
- assuming dilution 143,662,337 151,804,738
Jefferson-Pilot Corporation and Subsidiaries
(Unaudited)
Consolidated Balance Sheets (In
Thousands) Mar 31, 2003 Dec 31, 2002
Assets:
Cash and investments $24,553,450 $24,345,420
Accrued investment income 306,156 302,344
Due from reinsurers 1,369,311 1,375,341
Deferred policy acquisition costs 1,590,476 1,524,819
Value of insurance in force 477,234 502,498
Goodwill, net 311,894 311,894
Other assets 486,710 462,157
Separate account assets 1,710,248 1,784,821
$30,805,479 $30,609,294
Liabilities:
Policy liabilities $23,409,278 $23,132,411
Debt:
Commercial paper borrowings 373,085 453,442
Obligations under repurchase
agreements 496,985 499,227
Income tax liabilities 464,334 430,795
Accrued expenses and other
liabilities 449,120 468,626
Separate account liabilities 1,710,248 1,784,821
26,903,050 26,769,322
Capital securities 300,000 300,000
Stockholders' equity:
Common stock and paid in capital 177,661 180,120
Retained earnings 2,785,480 2,749,823
Accumulated other comprehensive
income -
net unrealized gains on
securities 639,288 610,029
3,602,429 3,539,972
$30,805,479 $30,609,294
Components of Equity (Dollars in
thousands except share amounts)
Common stock and paid in capital $177,661 $180,120
Retained earnings 2,785,480 2,749,823
Net unrealized gains
Bonds, net of DAC, VOBA and taxes 409,890 370,399
Equities, net of taxes 229,398 239,630
Total unrealized gains 639,288 610,029
Stockholders' equity $3,602,429 $3,539,972
Shares Outstanding 142,105,162 142,798,768
Per share $25.35 $24.79
Per share excluding unrealized gains $20.85 $20.52
Jefferson-Pilot Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Three Months Ended
(Dollars in thousands except share
amounts) Mar 31, 2003 Mar 31, 2002
Revenue:
Premiums and other considerations $230,825 $200,966
UL & investment product charges 195,471 171,326
Investment income, net of expenses 407,355 403,942
Realized investment gains (losses) (19,068) 33,635
Communications sales 50,103 48,094
Broker-dealer concessions and other 23,581 27,187
Total Revenue 888,267 885,150
Benefits and Expenses:
Insurance and annuity benefits 521,253 485,659
Insurance commissions, net of
deferrals 24,990 30,973
General and administrative expenses,
net of deferrals 31,406 33,701
Insurance taxes, licenses and fees 21,165 19,683
Amortization of policy acquisition
costs and
value of business acquired 81,537 63,274
Communications operations 34,745 33,660
Total Benefits and Expenses 715,096 666,950
Income before taxes 173,171 218,200
Income taxes 57,975 72,487
Net income 115,196 145,713
Dividends on capital securities (6,141) (6,141)
Net income available to common
stockholders $109,055 $139,572
Average number of shares outstanding 142,804,138 150,099,358
Average number of shares
outstanding - assuming dilution 143,662,337 151,804,738
Earnings Per Share
Income before gains (losses) from sale
of investments $0.85 $0.78
Gains (losses) from sale of
investments, net of income taxes (0.09) 0.15
Earnings Per Share $0.76 $0.93
Income before gains (losses) from sale
of investments -
assuming dilution $0.85 $0.78
Earnings Per Share - Assuming Dilution $0.76 $0.92
Jefferson-Pilot Corporation and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended
(In Thousands) Mar 31, 2003 Mar 31, 2002
Cash Flows from Operating Activities:
Net income $115,196 $145,713
Adjustments to reconcile net income
to net cash
provided by operating activities:
Change in policy liabilities 41,164 12,710
Net amount credited to
policyholder accounts 16,286 40,637
Net deferral of policy
acquisition costs (67,997) (65,228)
Net amortization of value of
business acquired 16,763 17,598
Other (25,980) (84,840)
Net cash provided by operations 95,432 66,590
Cash Flows from Investing Activities:
Securities and loans purchased and
sold (184,367) (454,955)
Other investing activities 3,210 (2,969)
Net cash used in investing activities (181,157) (457,924)
Cash Flows from Financing Activities:
Policyholder contract deposits 637,109 624,768
Policyholder contract withdrawals (404,575) (325,229)
Net borrowings (82,599) 53,757
Net issuance (repurchase) of common
shares (29,859) 3,541
Cash dividends to common and
preferred stockholders (49,395) (47,438)
Other 1,187 2,654
Net cash provided by financing
activities 71,868 312,053
Decrease in cash and cash equivalents (13,857) (79,281)
Cash and cash equivalents at
beginning of period 66,777 139,464
Cash and cash equivalents at end of
period $52,920 $60,183
Supplemental Cash Flow Information:
Income taxes paid $41,323 $18,587
Interest paid on borrowed money $3,419 $9,261
05:35pm EDT 28-Apr-03 PR Newswire - First Call Wire (Jefferson-Pilot Corporati
Jefferson Pilot Reports Nine Percent Increase in Earnings Per Share Pt(3 of 6)
Jefferson-Pilot Corporation and Subsidiaries
Business Segment Results
(Unaudited)
Individual Products (In Thousands)
The Individual Products distribution system offers a wide array of life
insurance products to individuals and employers through captive
agents (career and home service agency forces), independent agents
(recruited through independent marketing organizations and a
regional marketing network) and financial institutions. Reportable
segment results were:
Three Months Ended
March 31
2003 2002
Life premiums and other
considerations $44,166 $47,172
UL and investment product charges 193,172 168,275
Investment income, net of expenses 227,075 229,948
Other income 1,411 1,785
Total revenues 465,824 447,180
Policy benefits 274,320 271,336
Expenses 74,598 68,597
Total benefits and expenses 348,918 339,933
Reportable segment results before
income taxes 116,906 107,247
Provision for income taxes 40,917 37,537
Reportable segment results $75,989 $69,710
Operating Measures
Annualized equivalent life
insurance premiums:
-Sales excluding large case
BOLI $61,442 $61,357
-Large case BOLI $ -- $ --
Average UL policyholder fund
balances $10,351,111 $9,558,857
Average VUL separate account assets 1,105,805 1,331,981
Total $11,456,916 $10,890,838
Average Face Amount of Insurance In
Force:
- Total $163,794,000 $160,061,000
- UL-Type Contracts $122,245,000 $118,577,000
Average assets $16,750,174 $16,219,037
Jefferson-Pilot Corporation and Subsidiaries
Business Segment Results
(Unaudited)
Annuity and Investment Products (In Thousands)
Annuity and Investment Products (referred to as AIP) offers fixed and
variable annuities and investment products through
proprietary and independent agents, financial institutions, investment
professionals and broker-dealers. Reportable segment
results were:
Three Months Ended
March 31
2003 2002
Investment product charges and
premiums $2,040 $3,618
Investment income, net of expenses 145,478 140,630
Broker-dealer concessions and
other 22,190 25,407
Total revenues 169,708 169,655
Policy benefits (including
interest credited) 103,575 100,402
Expenses 33,454 36,404
Total benefits and expenses 137,029 136,806
Reportable segment results before
income taxes 32,679 32,849
Provision for income taxes 11,464 11,497
Reportable segment results $21,215 $21,352
Operating Measures
Fixed annuity premium sales $115,339 $186,424
Variable annuity premium sales 1,041 5,064
Total $116,380 $191,488
Investment product sales $614,665 $743,876
Average Fund Balances:
Fixed annuity $8,242,025 $7,532,393
Variable annuity 335,366 492,913
Total annuity $8,577,391 $8,025,306
Effective investment spreads for
fixed annuities 1.89% 1.84%
Fixed annuity surrenders as a % of
beginning fund balance 7.9% 9.2%
Fixed annuity general and
administrative expenses
as a % of average invested
assets 0.21% 0.22%
Average assets $9,404,408 $8,834,628
Jefferson-Pilot Corporation and Subsidiaries
Business Segment Results
(Unaudited)
Benefit Partners (In Thousands)
Benefit Partners offers group non-medical products such as term life,
disability and dental insurance to the employer
marketplace. These non-medical products are marketed primarily through a
national distribution system of regional
group offices. These offices develop business through employee benefit
firms, brokers, third party administrators
and other employee benefit providers. Reportable segment results were:
Three Months Ended
March 31
2003 2002
Premiums and other
considerations $181,792 $148,339
Investment income, net of
expenses 15,882 15,022
Total revenues 197,674 163,361
Policy benefits 137,658 109,227
Expenses 41,682 34,265
Total benefits and expenses 179,340 143,492
Reportable segment results
before income taxes 18,334 19,869
Provision for income taxes 6,417 6,954
Reportable segment results $11,917 $12,915
Operating Measures
Life, Disability and Dental:
Annualized sales $72,960 $56,101
Loss ratio 74.1% 71.7%
Total expenses, % of premiums 23.0% 23.1%
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
]
05:35pm EDT 28-Apr-03 PR Newswire - First Call Wire (Jefferson-Pilot Corporati
Jefferson Pilot Reports Nine Percent Increase in Earnings Per Share Pt(4 of 6)
Jefferson-Pilot Corporation and Subsidiaries
Business Segment Results
(Unaudited)
Communications (In Thousands)
Jefferson-Pilot Communications Company operates television and radio
broadcast properties and produces syndicated sports
and entertainment programming. Reportable segment results were:
Three Months Ended
March 31
2003 2002
Communications sales $50,478 $48,643
Operating costs and expenses 34,745 33,660
Broadcast cash flow 15,733 14,983
Depreciation and amortization 2,103 1,908
Corporate general and
administrative expenses 1,490 1,340
Net interest expense and other 588 787
Reportable segment results before
income taxes 11,552 10,948
Provision for income taxes 4,488 4,403
Reportable segment results $7,064 $6,545
Corporate and Other (In Thousands)
Activities of the parent company and passive investment affiliates,
surplus of the life insurance subsidiaries not otherwise allocated
to the reportable segments including earnings thereon, financing expenses
on corporate debt and debt securities including capital
securities, and federal and state income taxes not otherwise allocated to
business segments are reported in the "Other" category.
The following table summarizes the reportable segment results:
Three Months Ended
March 31
2003 2002
Earnings on investments and other
income $21,606 $20,998
Interest expense on debt and
Exchangeable Securities (2,493) (2,426)
Operating expenses (6,346) (4,922)
Provision for income taxes (1,362) (322)
11,405 13,328
Dividends on Capital Securities (6,141) (6,141)
Reportable segment results 5,264 7,187
Realized investment gains (losses),
net (12,394) 21,863
Reportable segment results,
including net realized gains
(losses) $(7,130) $29,050
Assets by Segment (In Millions)
Individual Products $16,829 $16,283
Annuity and Investment Products 9,412 8,904
Benefit Partners 945 824
Communications 200 197
Corporate and Other 3,419 3,119
Total Assets $30,805 $29,327
Jefferson-Pilot Corporation and Subsidiaries
Quarterly Financial Results by Business Segment
(Unaudited)
Mar 31, Dec 31, Sept 30,
(In millions) 2003 2002 2002
Revenues
Individual $465.8 $464.3 $459.2
AIP 169.7 175.1 170.5
Benefit Partners 197.7 178.3 180.0
Communications 49.9 61.2 49.2
Corporate and Other 24.3 21.4 18.0
Realized investment gains (losses) (19.1) (63.8) 3.8
Total revenues $888.3 $836.5 $880.7
Reportable Segments Results
Individual $76.0 $74.7 $73.9
AIP 21.2 20.7 18.9
Benefit Partners 11.9 12.8 9.2
Communications 7.1 13.0 9.8
Corporate and Other 11.4 (6.4) 10.7
127.6 114.8 122.5
Preferred stock dividends (6.1) (6.1) (6.1)
Total Reportable Segments Results 121.5 108.7 116.4
Realized gains (losses), net of tax (12.4) (42.1) 2.4
Reportable Segments Results
including Realized Gains (Losses) $109.1 $66.6 $118.8
Earnings Per Share
Income before gains (losses) from
sale of investments $0.85 $0.76 $0.81
Earnings Per Share $0.76 $0.47 $0.82
Income before gains (losses) from
sale of investments -
assuming dilution $0.85 $0.75 $0.80
Earnings Per Share - assuming
dilution $0.76 $0.46 $0.81
June 30, Mar 31, Dec 31,
(In millions) 2002 2002 2001
Revenues
Individual $451.0 $447.2 $441.7
AIP 171.1 169.7 170.8
Benefit Partners 176.6 163.4 158.1
Communications 49.2 47.9 53.1
Corporate and Other 25.4 23.4 23.6
Realized investment gains (losses) 4.4 33.6 (45.1)
Total revenues $877.7 $885.2 $802.2
Reportable Segments Results
Individual $74.8 $69.7 $78.6
AIP 19.3 21.4 19.3
Benefit Partners 12.5 12.9 11.5
Communications 10.5 6.5 9.9
Corporate and Other 11.5 13.3 11.4
128.6 123.8 130.7
Preferred stock dividends (6.1) (6.1) (6.1)
Total Reportable Segments Results 122.5 117.7 124.6
Realized gains (losses), net of tax 2.8 21.9 (28.2)
Reportable Segments Results
including Realized Gains (Losses) $125.3 $139.6 $96.4
Earnings Per Share
Income before gains (losses) from
sale of investments $0.82 $0.78 $0.83
Earnings Per Share $0.84 $0.93 $0.64
Income before gains (losses) from
sale of investments -
assuming dilution $0.81 $0.78 $0.82
Earnings Per Share - assuming
dilution $0.83 $0.92 $0.64
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
]05:35pm EDT 28-Apr-03 PR Newswire - First Call Wire (Jefferson-Pilot Corporati
Jefferson Pilot Reports Nine Percent Increase in Earnings Per Share Pt(5 of 6)
Sept 30, June 30, Mar 31,
(In millions) 2001 2001 2001
Revenues
Individual $428.8 $425.9 $425.2
AIP 158.7 159.4 160.5
Benefit Partners 156.7 144.2 142.7
Communications 45.3 47.2 49.5
Corporate and Other 31.6 21.3 22.5
Realized investment gains (losses) 24.2 30.1 56.3
Total revenues $845.3 $828.1 $856.7
Reportable Segments Results
Individual $70.0 $76.5 $69.5
AIP 17.3 19.0 20.7
Benefit Partners 12.0 10.5 10.4
Communications 8.2 8.7 6.8
Corporate and Other 16.4 6.1 10.7
123.9 120.8 118.1
Preferred stock dividends (6.1) (6.1) (6.1)
Total Reportable Segments Results 117.8 114.7 112.0
Realized gains (losses), net of tax 15.8 19.6 36.5
Reportable Segments Results
including Realized Gains (Losses) $133.6 $134.3 $148.5
Earnings Per Share
Income before gains (losses) from
sale of investments $0.78 $0.75 $0.73
Earnings Per Share $0.88 $0.88 $0.97
Income before gains (losses) from
sale of investments -
assuming dilution $0.77 $0.75 $0.72
Earnings Per Share - assuming
dilution $0.87 $0.87 $0.96
Jefferson-Pilot Corporation and Subsidiaries
Investment Summary (Unaudited)
(in Thousands)
March 31, 2003 December 31, 2002
Allocation of Invested Assets Amount Percent Amount Percent
Cash and cash equivalents $52,920 0.2% $66,777 0.3%
Bonds 19,730,149 80.4% 19,476,765 80.0%
Preferred stocks 26,733 0.1% 25,937 0.1%
Common stocks, unaffiliated 390,908 1.6% 406,956 1.7%
Mortgages loans (net) 3,289,110 13.4% 3,294,258 13.0%
Real estate (net) 131,880 0.5% 132,927 0.5%
Policy loans and other 931,750 3.8% 941,800 3.9%
Invested assets $24,553,450 100.0% $24,345,420 100%
March 31, 2003 December 31, 2002
Bond Portfolio Amount Percent Amount Percent
U.S.Government $357,767 1.8% $367,349 1.9%
Mortgage-backed 4,890,124 24.8% 5,386,570 27.7%
Private placements 4,180,217 21.2% 4,073,829 20.9%
Public - corporates 10,302,041 52.2% 9,649,017 49.5%
Total bonds $19,730,149 100.0% $19,476,765 100.0%
Yield to maturiry 6.79% 6.94%
Average life 6.22 6.22
Duration 4.38 4.00
Average Quality A2 A1
March 31, 2003 December 31, 2002
Bond Portfolio Quality Amount Percent Amount Percent
NAIC Rating S&P
Equivalent
1 AAA - A $12,182,025 61.7% $12,354,785 63.4%
2 BBB 6,174,993 31.3% 5,837,437 30.0%
3-6 BB and lower 1,373,131 7.0% 1,284,543 6.6%
Total Bonds $19,730,149 100.0% $19,476,765 100.0%
Fixed Maturity Securities Unrealized
Gains (Losses) March 31, 2003 December 31, 2002
Gross unrealized gains $1,372,341 $1,140,428
Gross unrealized (losses) (228,772) (287,179)
Net unrealized gains (losses) $1,143,569 $853,249
Mortgage Loan Portfolio March 31, 2003 December 31, 2002
Yield to maturity 7.87% 7.90%
Average maturity 6.98 7.14
Total delinquent loans and loans in
foreclosure
at amortized cost $13,405 $11,931
Delinquent loans as a percent of
total ML 0.41% 0.36%
Net book value of real estate
acquired in
satisfaction of mortgage
indebtedness $3,400 $3,400
Realized Investment Gains/(Losses) First Quarter 2003 First Quarter 2002
Stock gains $-- $51,786
Bond gains 14,267 2,656
Bond losses from sales and calls (2,754) (5,027)
Bond losses from writedowns (28,987) (13,303)
Other gains and losses (net) (631) (2,396)
Total pretax gains (losses) (18,105) 33,716
Provision for income taxes benefit
(expense) 6,674 (11,772)
DAC amortization (963) (82)
Total gains (losses) after tax and
DAC amortization $(12,394) $21,862
First Call Corporation, a Thomson Financial company.
All rights reserved. 888.558.2500
05:35pm EDT 28-Apr-03 PR Newswire - First Call Wire (Jefferson-Pilot Corporati
Jefferson Pilot Reports Nine Percent Increase in Earnings Per Share Pt(6 of 6)
Jefferson-Pilot Corporation and Subsidiaries
Insurance Segments Expense Analysis
(In Thousands)
Three Months Ended
Mar 31
2003 2002
Individual Products
Commissions $79,184 $63,091
General and administrative expenses 30,096 30,404
Taxes, licenses and fees 14,897 14,689
Total commissions and expenses
incurred 124,177 108,184
Less commissions and expenses
capitalized (95,203) (75,168)
Amortization of DAC and VOBA 45,624 35,581
Net expense $74,598 $68,597
Annuity and Investment Products
Commissions - insurance companies $6,054 $11,164
Commissions - broker/dealer 18,071 21,499
General and administrative expenses 6,426 6,821
Taxes, licenses and fees 720 743
Total commissions and expenses
incurred 31,271 40,227
Less commissions and expenses
capitalized (9,317) (14,639)
Amortization of DAC and VOBA 11,500 10,816
Net expense $33,454 $36,404
Benefit Partners
Commissions $20,821 $17,682
General and administrative expenses 19,442 16,812
Taxes, licenses and fees 5,263 3,993
Total commissions and expenses
incurred 45,526 38,487
Less commissions and expenses
capitalized (28,252) (23,423)
Amortization of DAC and VOBA 24,408 19,201
Net expense $41,682 $34,265
Jefferson-Pilot Corporation and Subsidiaries
DAC and VOBA Balance Sheet Analysis
(In Thousands)
Three Months Ended
Mar 31
2003 2002
Balance, beginning of period $2,027,317 $2,069,570
Amount capitalized 132,771 110,903
Amortization expense (81,537) (63,274)
Adjustment for capital gains and
losses (963) (82)
Adjustment for FAS 115 (9,878) 52,596
Balance, end of period $2,067,710 $2,169,713
Jefferson-Pilot Corporation and Subsidiaries
Shareholder Information
Listed NYSE: JP
Composite Stock Price and Dividends (Adjusted for 50% stock dividend
effected
04/09/01 and 04/13/98)
Cash
High Low Close Dividend
1Q03 40.93 35.75 38.48 0.303
2002 53.00 36.35 38.11 1.184
2001 49.67 38.00 46.27 1.072
2000 50.59 33.25 49.83 0.960
1999 53.09 40.79 45.50 0.857
1998 52.25 32.45 50.00 0.770
Transfer Agent and Dividend Reinvestment Agent
Wachovia Bank, N.A. Phone: 800/829-8432
Equity Services Group
1525 West W.T. Harris Blvd. 3C3
Charlotte, NC 28288-1153
Investor Relations
Jefferson-Pilot Corporation Phone: 336/691-3379
Investor Relations - Dept. 3607
P.O. Box 21008
Greensboro, NC 27420
investor.relations@jpfinancial.com
Corporate Website
www.jpfinancial.com