Exhibit 99
Jefferson Pilot Reports First-Quarter Earnings
GREENSBORO, N.C., April 27 /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, fixed annuities, and employee benefits, today reported net income
of $0.90 per share for the first quarter of 2004, versus $0.76 for the first
quarter of 2003. Jefferson Pilot's earnings before the cumulative effect of a
change in accounting principle (SOP 03-1) increased 30 percent to $0.99 per
share from $0.76 in the first quarter of 2003. Earnings before realized
investment gains, and excluding the cumulative effect of SOP 03-1, increased
five percent to $0.89 per share for the quarter from $0.85 in the year-earlier
period.
All per-share results are on a diluted basis.
Earnings from Jefferson Pilot's Individual Products business were
$75.0 million in the first quarter, versus $76.0 million in the first quarter
of 2003. For the quarter, individual market life insurance annualized premium
sales were $48.7 million, compared to $56.0 million a year ago. Universal life
policyholder fund balances grew 6 percent for the quarter to $10.9 billion,
and total life fund balances increased 8 percent to $12.4 billion. Jefferson
Pilot's Premier Partnering program continued to perform well, with Premier
Partners contributing over 71 percent of total life insurance production in
the quarter, up from 53 percent in 2003.
Earnings from the Annuity and Investment Products segment were
$19.0 million for the quarter, versus $21.2 million a year earlier. Fixed
annuity sales of $310.1 million were up sharply from $115.3 million in the
prior-year period, reflecting continued good market acceptance of Jefferson
Pilot's products, particularly equity indexed products. Fixed annuity average
fund balance growth was a solid 8 percent for the quarter, to $8.9 billion
from $8.2 billion a year ago.
The Benefit Partners group insurance segment earned $11.5 million in the
first quarter, versus $11.9 million in the first quarter last year. Group
insurance sales were $53.9 million in the quarter, compared to $73.0 million
in the year-earlier period. Integration of the non-medical group insurance
business of Canada Life is progressing well.
Jefferson-Pilot Communications reported excellent results in the first
quarter. Revenues increased 16 percent, which, combined with effective expense
control, drove earnings up 49 percent to $10.6 million from $7.1 million a
year ago. Broadcast cash flow grew 39 percent to $21.8 million from
$15.7 million.
The Corporate and Other segment reported first-quarter earnings before
realized investment gains of $10.4 million, up from $5.3 million in the 2003
quarter. Realized investment gains of $14.7 million brought total Corporate
and Other earnings to $25.1 million for the quarter, compared to a loss of
$7.1 million, including realized investment losses of $12.4 million, in the
first quarter of 2003.
During the first quarter, Jefferson Pilot bought 1,884,200 of its shares
in the open market for a total investment of $101.2 million.
Stockholders' equity per share grew 12 percent to $28.39 at the end of the
first quarter from $25.35 a year ago.
Summarizing the quarter, Jefferson Pilot CEO Dennis Glass said, "We are
pleased with the overall health of our businesses and we continue to actively
and appropriately manage our operations in response to market conditions,
including historically low interest rates. In both our individual life
insurance and annuity businesses, our distribution remains strong and our
asset balances are growing. We are building our business platforms by
investing in technology, distribution support, and product capability. The
addition of Canada Life further strengthens our group insurance distribution
and platform. Jefferson-Pilot Communications' earnings performance was
excellent, demonstrating again Communications' ability to produce industry-
leading profitability. We are optimistic that our basic strategies, combined
with a strengthening economy, will result in improved performance."
Throughout this release, "reportable segment results" is defined as net
income before realized investment gains and losses (and cumulative effect of
change in accounting principle, if applicable). Reportable segment results is
a non-GAAP measure. We believe reportable segment results provides relevant
and useful information to investors, as it represents the basis on which we
assess the performance of our business segments. We deem reportable segment
results to be a meaningful measure for this purpose because, except for losses
from other-than-temporary impairments, realized investment gains and losses
occur primarily at our sole discretion. Note that reportable segment results
as described above may not be comparable to similarly titled measures reported
by other companies.
A conference call for the investment community to discuss these results
will be held tomorrow at 10:00 EDT. The call will be broadcast live on the
Internet at www.jpfinancial.com , and will be archived.
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 18 radio stations, and
produces and syndicates sports programming. Additional information on
Jefferson-Pilot can be found at www.jpfinancial.com .
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
significantly affect our actual results or financial condition. These risks
and uncertainties include, among others, general economic conditions, the
impact on the economy from any further terrorist activities or U.S. military
engagements, and interest rate levels, changes and fluctuations, earnings; any
failure to complete successfully the integration of our recently completed
group acquisition; 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.
SOURCE Jefferson-Pilot Corporation
-0- 04/27/2004
/CONTACT: Investment Community, John Still, +1-336-691-3382, or News
Media, Paul Mason, +1-336-691-3313/
/FIRST ADD -- TABULAR MATERIAL TO FOLLOW/
/Web site: http://www.jpfinancial.com /
(JP)
CO: Jefferson-Pilot Corporation
ST: North Carolina
IN: INS
SU: ERN
/FIRST ADD -- CLTU019 -- Jefferson-Pilot Earnings/
Jefferson-Pilot Corporation and Subsidiaries
2004 Report
Three Months Ended
Net Income Mar 31, 2004 Mar 31, 2003
(Dollars in thousands)
Individual $75,027 $75,989
AIP 19,070 21,215
Benefit Partners 11,454 11,917
Communications 10,552 7,064
Corporate and Other 10,423 5,264
Total reportable segment results 126,526 121,449
Realized investment gains (losses),
net of taxes 14,705 (12,394)
Net income before cumulative effect
of change in accounting principle 141,231 109,055
Cumulative effect of change in
accounting for long duration
contracts, net of taxes (12,884) -
Net income $128,347 $109,055
Per share information
Income before cumulative effect of
change in accounting principle $1.00 $0.76
Cumulative effect of change in
accounting principle, net of taxes (0.09) -
Net income $0.91 $0.76
Per share information - assuming dilution
Income before cumulative effect of
change in accounting principle $0.99 $0.76
Cumulative effect of change in
accounting principle, net of taxes (0.09) -
Net income $0.90 $0.76
Average number of shares outstanding 140,659,329 142,804,138
Average number of shares outstanding
- assuming dilution 142,169,281 143,662,337
Supplemental per share information
Realized investment gains (losses),
net of taxes - assuming dilution $0.10 $(0.09)
Jefferson-Pilot Corporation and Subsidiaries
(Unaudited)
Consolidated Balance Sheets (In
Thousands) Mar 31, 2004 Dec 31, 2003
Assets:
Cash and investments $27,156,243 $25,823,574
Accrued investment income 337,527 326,073
Due from reinsurers 1,321,719 1,340,395
Deferred policy acquisition costs 1,745,449 1,771,174
Value of business acquired 449,440 459,270
Goodwill, net 311,894 311,894
Other assets 633,443 498,428
Separate account assets 2,228,721 2,165,524
$34,184,436 $32,696,332
Liabilities:
Policy liabilities $25,253,219 $24,369,234
Debt:
Commercial paper borrowings 153,974 654,232
Obligations under repurchase
agreements 453,980 400,590
Long-term notes payable 599,625 -
Junior subordinated debentures 309,279 309,279
Income tax liabilities 615,064 471,922
Accrued expenses and other liabilities 600,333 519,654
Separate account liabilities 2,228,721 2,165,524
30,214,195 28,890,435
Stockholders' equity:
Common stock and paid in capital 174,779 175,762
Retained earnings 2,966,549 2,946,869
Accumulated other comprehensive
income - net unrealized gains on
securities 828,913 683,266
3,970,241 3,805,897
$34,184,436 $32,696,332
Components of Equity (Dollars in
thousands except share amounts)
Common stock and paid in capital $174,779 $175,762
Retained earnings 2,966,549 2,946,869
Net unrealized gains
Bonds, net of DAC, VOBA and taxes 545,300 390,230
Equities, net of taxes 283,613 293,036
Total unrealized gains 828,913 683,266
Stockholders' equity $3,970,241 $3,805,897
Shares outstanding 139,824,510 140,610,540
Per share $28.39 $27.07
Per share excluding unrealized gains $22.47 $22.21
Jefferson-Pilot Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
Three Months Ended
(Dollars in thousands except share amounts) Mar 31, 2004 Mar 31, 2003
Revenue:
Premiums and other considerations $279,781 $230,825
UL & investment product charges 181,583 172,244
Net investment income(A) 406,461 410,038
Realized investment gains (losses) 23,461 (19,068)
Communications sales 58,132 50,103
Broker-dealer concessions and other 35,398 23,581
Total revenue 984,816 867,723
Benefits and Expenses:
Insurance and annuity benefits 540,979 498,026
Insurance commissions, net of deferrals 59,652 24,990
General and administrative expenses,
net of deferrals 37,633 31,406
Insurance taxes, licenses and fees 17,410 21,165
Amortization of policy acquisition
costs and value of business acquired 66,788 81,537
Interest expense(A) 10,748 8,824
Communications operations 36,662 34,745
Total benefits and expenses 769,872 700,693
Income before income taxes and
cumulative effect of change in
accounting principle 214,944 167,030
Income taxes 73,713 57,975
Income before cumulative effect of
change in accounting principle 141,231 109,055
Cumulative effect of change in
accounting for long-duration
contracts, net of taxes (12,884) -
Net income $128,347 $109,055
Average number of shares outstanding 140,659,329 142,804,138
Average number of shares
outstanding - assuming dilution 142,169,281 143,662,337
Quarterly return on equity(B) 16.2% 16.5%
Earnings Per Share
Earnings per share before cumulative
effect of change in accounting principle $1.00 $0.76
Cumulative effect of change in
accounting for long-duration
contracts, net of income taxes (0.09) -
Earnings per share $0.91 $0.76
Earnings per share before cumulative
effect of change in accounting
principle - assuming dilution $0.99 $0.76
Cumulative effect of change in
accounting for long-duration
contracts, net of income
taxes - assuming dilution (0.09) -
Earnings per share - assuming dilution $0.90 $0.76
Supplemental per share information
Realized investment gains (losses),
net of taxes - assuming dilution $0.10 $(0.09)
(A) Prior year amounts have been restated to conform to presentation
under FIN 46.
(B) 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 and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
Three Months Ended
(In Thousands) Mar 31, 2004 Mar 31, 2003
Cash Flows from Operating Activities:
Net income(A) $128,347 $109,055
Adjustments to reconcile net income
to net cash provided by operating
activities:
Change in policy liabilities 114,878 41,164
Net amount credited to
policyholder accounts 26,284 16,286
Net deferral of policy
acquisition costs and sales
inducements (88,972) (67,997)
Net (deferral) amortization of
value of business acquired (17,678) 16,763
Acquisition of group blocks via
coinsurance 327,992 -
Other (8,687) (25,980)
Net cash provided by operations 482,164 89,291
Cash Flows from Investing Activities:
Securities and loans purchased and sold (805,901) (184,367)
Other investing activities (24,463) 3,210
Net cash used in investing activities (830,364) (181,157)
Cash Flows from Financing Activities:
Policyholder contract deposits 729,929 637,109
Policyholder contract withdrawals (383,020) (404,575)
Net borrowings (repayments) 152,757 (82,599)
Net repurchase of common shares (63,299) (29,859)
Cash dividends to common and
preferred stockholders(A) (46,653) (43,254)
Other 7,032 1,187
Net cash provided by financing activities 396,746 78,009
Increase (decrease) in cash and cash
equivalents 48,546 (13,857)
Cash and cash equivalents at
beginning of period 71,768 66,777
Cash and cash equivalents at end of period $120,314 $52,920
Supplemental Cash Flow Information:
Income taxes paid $(6,356) $44,900
Interest paid on borrowed money(A) $16,264 $16,081
(A) Prior amounts have been restated to presentation under FIN 46.
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
2004 2003
UL-Type Products:
Net investment income $184,128 $185,138
Interest credited to policyholders (125,661) (126,471)
Interest margin 58,467 58,667
Product charge revenue:
Cost of insurance charges 132,628 125,429
Expense charges 37,424 35,602
Surrender charges 11,096 10,325
Total product charge revenue 181,148 171,356
Death benefits and other insurance
benefits (77,203) (71,244)
Expenses, excluding amortization of
DAC and VOBA (22,483) (23,813)
Amortization of DAC and VOBA (45,077) (40,930)
Miscellaneous expense (183) (3)
UL-type product income before taxes 94,669 94,033
Traditional Products:
Premiums and other considerations 40,145 44,169
Net investment income 38,546 41,937
Benefits (47,417) (53,378)
Expenses, excluding amortization of
DAC and VOBA (7,160) (5,161)
Amortization of DAC and VOBA (3,962) (4,694)
Traditional product income before taxes 20,152 22,873
Income before income taxes 114,821 116,906
Income taxes (39,794) (40,917)
Reportable segment results $75,027 $75,989
Operating Measures
Annualized equivalent life
insurance premiums:
-Individual Markets Excl.
Community Banks and BOLI $48,682 $56,031
-Community Banks and BOLI 945 5,411
$49,627 $61,442
Average UL policyholder fund
balances $10,930,580 $10,351,111
Average VUL separate account assets 1,489,461 1,105,805
Total $12,420,041 $11,456,916
Average Face Amount of Insurance In
Force:
- Total $166,444,000 $163,794,000
- UL-Type Contracts $126,103,000 $122,245,000
Average assets $17,936,560 $16,750,174
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
Mar 31
2004 2003
Investment product charges and premiums $2,406 $2,040
Net investment income 143,518 145,478
Broker-dealer concessions and other 29,392 22,190
Total revenue 175,316 169,708
Policy benefits (including
interest credited) 103,612 103,575
Insurance expenses 14,919 13,106
Broker-dealer expenses 27,512 20,348
Total benefits and expenses 146,043 137,029
Income before income taxes 29,273 32,679
Income taxes 10,203 11,464
Reportable segment results $19,070 $21,215
Operating Measures
Fixed annuity premium sales $310,101 $115,339
Variable annuity premium sales 112 1,041
Total $310,213 $116,380
Investment product sales $1,323,800 $614,665
Average fund balances:
Fixed annuity $8,875,604 $8,242,025
Variable annuity 350,354 335,366
Total annuity $9,225,958 $8,577,391
Effective investment spreads for
fixed annuities 1.71% 1.89%
Fixed annuity surrenders as a % of
beginning fund balance 9.5% 7.9%
Fixed annuity general and
administrative expenses
as a % of average invested assets 0.18% 0.18%
Average assets $10,116,787 $9,404,408
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
Mar 31
2004 2003
Premiums and other considerations $232,500 $181,792
Net investment income 18,382 15,882
Total revenue 250,882 197,674
Policy benefits 180,401 137,658
Expenses 52,859 41,682
Total benefits and expenses 233,260 179,340
Income before income taxes 17,622 18,334
Income taxes 6,168 6,417
Reportable segment results $11,454 $11,917
Operating Measures
Life, Disability and Dental:
Annualized sales $53,898 $72,960
Reportable segment results:
Life $3,459 $2,510
Disability 6,790 8,396
Dental 641 336
Other 564 675
Total $11,454 $11,917
Loss Ratios:
Life 79.0% 82.0%
Disability 72.9% 63.4%
Dental 78.3% 79.8%
Combined 76.2% 74.1%
Total expenses as a % of premium income 22.8% 23.0%
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
Mar 31
2004 2003
Communications revenues, net $58,507 $50,478
Cost of sales 14,713 13,453
Operating expenses 21,949 21,292
Broadcast cash flow 21,845 15,733
Depreciation and amortization 2,225 2,103
Corporate general and
administrative expenses 1,599 1,490
Net interest expense and other 423 588
Income before income taxes 17,598 11,552
Income taxes 7,046 4,488
Reportable segment results $10,552 $7,064
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, and federal and state income taxes
not otherwise allocated to business segments are reported in the
"Corporate and Other" category. Reportable segment results were:
Three Months Ended
Mar 31
2004 2003
Earnings on investments and other
income(A) $25,937 $21,796
Interest expense on debt(A) (10,748) (8,824)
Operating expenses (3,018) (6,346)
Income taxes (1,748) (1,362)
Reportable segment results 10,423 5,264
Realized investment gains (losses),
net of taxes 14,705 (12,394)
Reportable segment results,
including net realized investment
gains (losses) $25,128 $(7,130)
(A) Prior year amounts have been restated to conform to presentation
under FIN 46.
Assets by Segment (In Millions)
Individual Products $18,087 $16,829
Annuity and Investment Products 10,293 9,412
Benefit Partners 1,710 945
Communications 199 200
Corporate and Other 3,895 3,429
Total assets $34,184 $30,815
Jefferson-Pilot Corporation and Subsidiaries
Quarterly Financial Results by Business Segment
(Unaudited)
Mar 31, Dec 31, Sept 30, June 30,
(In millions) 2004 2003 2003 2003
Revenue:
Individual $443.8 $444.3 $449.7 $437.2
AIP 175.3 177.4 173.7 172.9
Benefit Partners 250.9 208.1 206.2 207.8
Communications 58.1 63.3 51.2 50.1
Corporate and Other 33.3 32.7 30.1 28.2
Realized investment gains (losses) 23.4 (42.8) (5.1) 20.2
Total revenue $984.8 $883.0 $905.8 $916.4
Reportable Segment Results:
Individual $75.0 $80.4 $78.6 $74.3
AIP 19.1 22.3 20.0 21.5
Benefit Partners 11.4 16.2 10.0 12.5
Communications 10.6 15.4 11.4 11.6
Corporate and Other 10.4 9.8 10.0 7.1
Total reportable segment results 126.5 144.1 130.0 127.0
Realized investment gains (losses),
net of taxes 14.7 (27.8) (3.9) 13.1
Net income before cumulative effect
of change in
accounting principle 141.2 116.3 126.1 140.1
Cumulative effect of change in
accounting principle, net of taxes (12.9) - - -
Net income $128.3 $116.3 $126.1 $140.1
Earnings Per Share
Earnings per share before cumulative
effect of change in
accounting principle $1.00 $0.82 $0.89 $0.99
Cumulative effect of change in
accounting principle, net of taxes (0.09) - - -
Earnings per share $0.91 $0.82 $0.89 $0.99
Earnings per share before cumulative
effect of change in
accounting principle - assuming
dilution $0.99 $0.82 $0.88 $0.98
Cumulative effect of change in
accounting principle, net of
taxes - assuming dilution (0.09) - - -
Earnings per share - assuming
dilution $0.90 $0.82 $0.88 $0.98
Supplemental per share information
Realized investment gains (losses),
net of taxes - assuming dilution $0.10 $(0.19) $(0.03) $0.09
Jefferson-Pilot Corporation and Subsidiaries
Quarterly Financial Results by Business Segment
(Unaudited)
Mar 31, Dec 31, Sept 30, June 30, Mar 31,
(In millions) 2003 2002 2002 2002 2002
Revenue:
Individual $442.5 $436.7 $436.2 $432.3 $431.5
AIP 169.7 175.1 170.5 171.1 169.7
Benefit Partners 197.7 178.3 180.0 176.6 163.4
Communications 49.9 61.2 49.2 49.2 47.9
Corporate and Other 27.0 24.4 21.0 28.1 26.0
Realized investment gains
(losses) (19.1) (63.8) 3.8 4.4 33.6
Total revenue $867.7 $811.9 $860.7 $861.7 $872.1
Reportable Segment Results:
Individual $76.0 $74.7 $73.9 $74.8 $69.7
AIP 21.2 20.7 18.9 19.3 21.4
Benefit Partners 11.9 12.8 9.2 12.5 12.9
Communications 7.1 13.0 9.8 10.5 6.5
Corporate and Other 5.3 (12.5) 4.6 5.4 7.2
Total reportable segment results 121.5 108.7 116.4 122.5 117.7
Realized investment gains
(losses), net of taxes (12.4) (42.1) 2.4 2.8 21.9
Net income before cumulative
effect of change in
accounting principle 109.1 66.6 118.8 125.3 139.6
Cumulative effect of change in
accounting principle, net of
taxes - - - - -
Net income $109.1 $66.6 $118.8 $125.3 $139.6
Earnings Per Share
Earnings per share before
cumulative effect of change in
accounting principle $0.76 $0.47 $0.82 $0.84 $0.93
Cumulative effect of change in
accounting principle, net of
taxes - - - - -
Earnings per share $0.76 $0.47 $0.82 $0.84 $0.93
Earnings per share before
cumulative effect of change in
accounting principle -
assuming dilution $0.76 $0.46 $0.81 $0.83 $0.92
Cumulative effect of change in
accounting principle, net of
taxes - assuming dilution - - - - -
Earnings per share - assuming
dilution $0.76 $0.46 $0.81 $0.83 $0.92
Supplemental per share information
Realized investment gains
(losses), net of taxes - assuming
dilution $(0.09) $(0.29) $0.01 $0.02 $0.14
Jefferson-Pilot Corporation and Subsidiaries
Investment Summary (Unaudited)
(in Thousands)
March 31, 2004 December 31, 2003
Allocation of Invested Assets Amount Percent Amount Percent
Cash and cash equivalents $120,314 0.4% $71,768 0.3%
Bonds 21,707,254 79.9% 20,443,770 79.2%
Preferred stocks 16,725 0.1% 16,463 0.1%
Common stocks, unaffiliated 728,880 2.7% 753,958 2.9%
Mortgages loans (net) 3,496,672 12.9% 3,472,340 13.4%
Real estate (net) 131,342 0.5% 131,600 0.5%
Policy loans and other 955,056 3.5% 933,675 3.6%
Invested assets $27,156,243 100.0% $25,823,574 100.0%
March 31, 2004 December 31, 2003
Bond Portfolio Amount Percent Amount Percent
U.S. Government $282,354 1.3% $267,847 1.3%
Mortgage-backed 2,811,860 13.0% 2,904,444 14.2%
Private placements 4,819,662 22.2% 4,504,954 22.0%
Public - corporates 13,793,378 63.5% 12,766,525 62.5%
Total bonds $21,707,254 100.0% $20,443,770 100.0%
Yield to maturity 6.20% 6.33%
Average life 7.53 yrs 7.36 yrs
Duration 5.23 5.08
Average quality A2 A2
March 31, 2004 December 31, 2003
Bond Portfolio Quality Amount Percent Amount Percent
NAIC Rating S&P
Equivalent
1 AAA - A $12,760,924 58.8% $11,707,882 57.3%
2 BBB 7,558,862 34.8% 7,284,384 35.6%
3-6 BB and lower 1,387,468 6.4% 1,451,504 7.1%
Total Bonds $21,707,254 100.0% $20,443,770 100.0%
Fixed Maturity Securities
Unrealized Gains (Losses) March 31, 2004 December 31, 2003
Gross unrealized gains $1,513,534 $1,179,211
Gross unrealized (losses) (66,575) (126,275)
Net unrealized gains (losses) $1,446,959 $1,052,936
Mortgage Loan Portfolio March 31, 2004 December 31, 2003
Yield to maturity 7.59% 7.63%
Average maturity 6.86 6.99
Total delinquent loans and
loans in foreclosure
at amortized cost $6,395 $10,984
Delinquent loans as a percent of
total ML 0.18% 0.32%
Net book value of real estate
acquired in
satisfaction of mortgage
indebtedness $5,070 $6,276
Realized Investment
Gains/(Losses) First Quarter 2004 First Quarter 2003
Stock gains $28,564 $-
Stock losses (2,392) -
Bond gains 17,665 14,267
Bond losses from sales and calls (3,503) (2,754)
Bond losses from writedowns (15,907) (28,987)
Other gains and losses (net) 2 (631)
Total pretax losses 24,429 (18,105)
DAC amortization (968) (963)
Income taxes (8,756) 6,674
Total losses after taxes and DAC
amortization $14,705 $(12,394)
Jefferson-Pilot Corporation and Subsidiaries
Insurance Segments Expense Analysis
(In Thousands)
Three Months Ended
Mar 31
2004 2003
Individual Products
Commissions $63,769 $79,184
General and administrative expenses 29,801 30,096
Taxes, licenses and fees 11,063 14,897
Total commissions and expenses
incurred 104,633 124,177
Less commissions and expenses
capitalized (74,990) (95,203)
Amortization of DAC and VOBA 49,039 45,624
Net expense $78,682 $74,598
Annuity and Investment Products
Insurance companies:
Commissions - insurance companies $18,454 $6,054
General and administrative expenses 4,860 4,372
Taxes, licenses and fees 646 497
Gross commissions and expenses
incurred 23,960 10,923
Less commissions and expenses
capitalized (20,539) (9,317)
Amortization of DAC and VOBA 11,498 11,500
Net expense - insurance
companies 14,919 13,106
Broker/Dealer:
Commissions 24,767 18,071
Other 2,745 2,277
Net expense - broker/dealer 27,512 20,348
Net expense $42,431 $33,454
Benefit Partners
Commissions $26,881 $20,821
General and administrative expenses 22,952 19,442
Taxes, licenses and fees 4,981 5,263
Total commissions and expenses
incurred 54,814 45,526
Less commissions and expenses
capitalized (8,201) (28,252)
Amortization of DAC and VOBA 6,246 24,408
Net expense $52,859 $41,682
Jefferson-Pilot Corporation and Subsidiaries
DAC and VOBA Balance Sheet Analysis
(In Thousands)
Three Months Ended
Mar 31
2004 2003
Balance, beginning of period $2,230,444 $2,027,317
Cumulative effect of change in
accounting principle 1,064 -
Benefit Partners co-insurance
transaction 34,795 -
Amount capitalized 103,729 132,771
Amortization expense (66,788) (81,537)
Adjustment for realized
investment gains and losses (904) (963)
Adjustment for FAS 115 (107,451) (9,878)
Balance, end of period $2,194,889 $2,067,710
Jefferson-Pilot Corporation and Subsidiaries
Shareholder Information
Listed NYSE: JP
Composite Stock Price and Dividends (Adjusted for 50% stock dividend
effected 04/09/01)
Cash
High Low Close Dividend
1Q04 55.08 48.97 55.01 0.330
2003 50.72 35.75 50.65 1.293
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
Transfer Agent and Dividend Reinvestment Agent
Wachovia Bank Phone: 800/829-8432
Dividend Reinvestment Service Fax: 704/590-7618
1525 West W.T. Harris Blvd., 3C3 Email: equityservices@wachovia.com
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
SOURCE Jefferson-Pilot Corporation
-0- 04/27/2004 AA CLTU019
/PRNewswire -- April 27/
/SECOND AND FINAL ADD -- ADDITIONAL TABULAR MATERIAL -- TO FOLLOW/
/Web site: http://www.jpfinancial.com /
(JP)
CO: Jefferson-Pilot Corporation
ST: North Carolina
IN: INS
SU: ERN
/SECOND AND FINAL ADD -- CLTU019 -- Jefferson-Pilot Earnings/
********************************************************
Jefferson-Pilot Corporation
Supplemental Historical Quarterly Data
********************************************************
JEFFERSON-PILOT CORPORATION
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In thousands except Mar 31, Dec 31, Sep 30,
share amounts) 2004 2003 2003
Revenue:
Premiums and other considerations $279,781 $243,303 $237,629
U.L. & Investment product charges 181,583 171,472 180,106
Net investment income(A) 406,461 418,891 413,265
Realized investment (losses) gains 23,461 (42,814) (5,135)
Communications sales 58,132 63,792 51,729
Broker-dealer concessions and other 35,398 28,367 28,206
Total Revenue 984,816 883,011 905,800
Benefits and Expenses:
Insurance and annuity benefits 540,979 501,362 501,241
Insurance commissions, net of
deferrals 59,652 27,537 31,333
General and administrative
expenses, net of deferrals 37,633 40,754 38,566
Insurance taxes, licenses and fees 17,410 14,309 19,298
Amortization of policy acquisition costs
and value of business acquired 66,788 86,880 91,375
Interest expense(A) 10,748 8,432 8,159
Communications operations 36,662 34,664 28,127
Total Benefits and Expenses 769,872 713,938 718,099
Income before taxes 214,944 169,073 187,701
Income taxes 73,713 52,752 61,625
Cumulative effect of change in
accounting for long-duration
contracts, net of taxes (12,884) - -
Net income available to common
stockholders $128,347 $116,321 $126,076
Average number of shares
outstanding 140,659,329 140,997,195 141,365,238
Average number of shares
outstanding - assuming dilution 142,169,281 142,253,286 142,522,449
Quarterly return on equity(B) 16.2% 18.6% 17.0%
Earnings Per Share
Earnings per share before
cumulative effect of change in
accounting principle $1.00 $0.82 $0.89
Cumulative effect of change in
accounting for long-duration
contracts, net of income taxes (0.09) - -
Earnings Per Share $0.91 $0.82 $0.89
Earnings per share before cumulative
effect of change in accounting
principle - assuming dilution $0.99 $0.82 $0.88
Cumulative effect of change in accounting
for long-duration contracts, net
of income taxes - assuming dilution (0.09) - -
Earnings Per Share - Assuming Dilution $0.90 $0.82 $0.88
Supplemental per share information
Realized investment gains (losses),
net of taxes - assuming dilution $0.10 $(0.19) $(0.03)
(A) Prior year amounts have been restated to conform to current year
presentation for the adoption of FIN 46.
(B) 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
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In thousands except Jun 30, Mar 31, Dec 31,
share amounts) 2003 2003 2002
Revenue:
Premiums and other considerations $238,951 $230,825 $212,005
U.L. & Investment product charges 167,154 172,244 161,807
Net investment income(A) 414,755 410,038 416,026
Realized investment (losses) gains 20,222 (19,068) (63,799)
Communications sales 50,674 50,103 61,844
Broker-dealer concessions and other 24,634 23,581 23,991
Total Revenue 916,390 867,723 811,874
Benefits and Expenses:
Insurance and annuity benefits 503,527 498,026 477,078
Insurance commissions, net of
deferrals 24,603 24,990 23,359
General and administrative
expenses, net of deferrals 38,467 31,406 64,725
Insurance taxes, licenses and fees 18,444 21,165 19,765
Amortization of policy acquisition costs
and value of business acquired 81,653 81,537 82,109
Interest expense(A) 8,442 8,824 9,125
Communications operations 27,536 34,745 34,881
Total Benefits and Expenses 702,672 700,693 711,042
Income before taxes 213,718 167,030 100,832
Income taxes 73,559 57,975 34,226
Cumulative effect of change in
accounting for long-duration
contracts, net of taxes - - -
Net income available to common
stockholders $140,159 $109,055 $66,606
Average number of shares
outstanding 142,038,270 142,804,138 143,372,706
Average number of shares
outstanding - assuming dilution 143,055,368 143,662,337 144,326,570
Quarterly return on equity(B) 16.9% 16.5% 14.8%
Earnings Per Share
Earnings per share before
cumulative effect of change in
accounting principle $0.99 $0.76 $0.47
Cumulative effect of change in
accounting for long-duration
contracts, net of income taxes - - -
Earnings Per Share $0.99 $0.76 $0.47
Earnings per share before cumulative
effect of change in accounting
principle - assuming dilution $0.98 $0.76 $0.46
Cumulative effect of change in
accounting for long-duration
contracts, net of income taxes
- assuming dilution - - -
Earnings Per Share - Assuming
Dilution $0.98 $0.76 $0.46
Supplemental per share information
Realized investment gains (losses),
net of taxes - assuming dilution $0.09 $(0.09) $(0.29)
(A) Prior year amounts have been restated to conform to current year
presentation for the adoption of FIN 46.
(B) 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
QUARTERLY CONSOLIDATED STATEMENTS OF INCOME
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In thousands except Sep 30, Jun 30, Mar 31,
share amounts) 2002 2002 2002
Revenue:
Premiums and other considerations $215,038 $213,133 $200,966
U.L. & Investment product charges 161,522 158,965 155,642
Net investment income(A) 406,387 405,835 406,572
Realized investment (losses) gains 3,767 4,377 33,635
Communications sales 49,891 49,972 48,094
Broker-dealer concessions and other 24,141 29,407 27,187
Total Revenue 860,746 861,689 872,096
Benefits and Expenses:
Insurance and annuity benefits 490,433 476,286 469,975
Insurance commissions, net of
deferrals 28,081 32,322 30,973
General and administrative
expenses, net of deferrals 33,664 35,249 33,701
Insurance taxes, licenses and fees 18,905 19,887 19,683
Amortization of policy acquisition costs
and value of business acquired 71,357 69,055 63,274
Interest expense(A) 9,174 8,866 8,771
Communications operations 29,251 27,842 33,660
Total Benefits and Expenses 680,865 669,507 660,037
Income before taxes 179,881 192,182 212,059
Income taxes 61,125 66,909 72,487
Cumulative effect of change in
accounting for long-duration
contracts, net of taxes - - -
Net income available to common
stockholders $118,756 $125,273 $139,572
Average number of shares
outstanding 144,641,968 149,370,907 150,099,358
Average number of shares
outstanding - assuming dilution 145,822,346 151,033,862 151,804,738
Quarterly return on equity(B) 15.6% 16.0% 15.6%
Earnings Per Share
Earnings per share before
cumulative effect of change in
accounting principle $0.82 $0.84 $0.93
Cumulative effect of change in
accounting for long-duration
contracts, net of income taxes - - -
Earnings Per Share $0.82 $0.84 $0.93
Earnings per share before cumulative
effect of change in accounting
principle - assuming dilution $0.81 $0.83 $0.92
Cumulative effect of change in
accounting for long-duration
contracts, net of income taxes
- assuming dilution - - -
Earnings Per Share - Assuming
Dilution $0.81 $0.83 $0.92
Supplemental per share information
Realized investment gains (losses),
net of taxes - assuming dilution $0.01 $0.02 $0.14
(A) Prior year amounts have been restated to conform to current year
presentation for the adoption of FIN 46.
(B) 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
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Mar 31, Dec 31, Sep 30,
2004 2003 2003
UL-Type Products:
Net investment income $184,128 $189,031 $187,243
Interest credited to
policyholders (125,661) (129,846) (130,497)
Interest margin 58,467 59,185 56,746
Product charge revenue:
Cost of insurance charges 132,628 128,210 134,913
Expense charges 37,424 34,391 38,719
Surrender charges 11,096 7,888 6,756
Total product charge
revenue 181,148 170,489 180,388
Death benefits and other
insurance benefits (77,203) (63,117) (71,949)
Expenses, excluding
amortization of DAC and VOBA (22,483) (20,696) (25,306)
Amortization of DAC and VOBA (45,077) (47,986) (50,002)
Miscellaneous income (expense) (183) (859) (17)
UL-type product income before
taxes 94,669 97,016 89,860
Traditional Products:
Premiums and other
considerations 40,145 44,315 41,253
Net investment income 38,546 41,309 40,759
Benefits (47,417) (50,686) (42,299)
Expenses, excluding
amortization of DAC and VOBA (7,160) (6,719) (6,787)
Amortization of DAC and VOBA (3,962) (3,511) (3,470)
Traditional product income
before taxes 20,152 24,708 29,456
Income before income taxes 114,821 121,724 119,316
Income taxes (39,794) (41,279) (40,703)
Reportable segment results $75,027 $80,445 $78,613
Operating Measures
Annualized life insurance
premium sales:
-Individual Markets Excl.
Community Banks and BOLI $48,682 $61,408 $48,523
-Community Banks and BOLI 945 2,189 2,153
$49,627 $63,597 $50,676
Average UL policyholder
fund balances $10,930,580 $10,823,708 $10,657,827
Average VUL separate
account assets 1,489,461 1,384,892 1,277,027
Total $12,420,041 $12,208,600 $11,934,854
Average Face Amount of
Insurance In Force:
- Total $166,444,000 $165,787,000 $164,669,000
- UL-Type Contracts 126,103,000 124,981,000 123,497,000
Average assets $17,935,181 $17,540,855 $17,244,613
JEFFERSON-PILOT CORPORATION
INDIVIDUAL PRODUCTS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Jun 30, Mar 31, Dec 31,
2003 2003 2002
UL-Type Products:
Net investment income $187,777 $185,138 $187,835
Interest credited to
policyholders (128,564) (126,471) (135,252)
Interest margin 59,213 58,667 52,583
Product charge revenue:
Cost of insurance charges 123,384 125,429 122,534
Expense charges 32,913 35,602 28,202
Surrender charges 9,961 10,325 9,891
Total product charge revenue 166,258 171,356 160,627
Death benefits and other
insurance benefits (66,105) (71,244) (55,537)
Expenses, excluding
amortization of DAC and VOBA (26,608) (23,813) (20,122)
Amortization of DAC and VOBA (40,120) (40,930) (48,552)
Miscellaneous income
(expense) (1,236) (3) (3)
UL-type product income before
taxes 91,402 94,033 88,996
Traditional Products:
Premiums and other
considerations 43,245 44,169 42,900
Net investment income 41,200 41,937 45,270
Benefits (51,413) (53,378) (49,668)
Expenses, excluding
amortization of DAC and VOBA (5,494) (5,161) (9,552)
Amortization of DAC and VOBA (4,565) (4,694) (2,990)
Traditional product income
before taxes 22,973 22,873 25,960
Income before income taxes 114,375 116,906 114,956
Income taxes (40,031) (40,917) (40,234)
Reportable segment results $74,344 $75,989 $74,722
Operating Measures
Annualized life insurance
premium sales:
-Individual Markets Excl.
Community Banks and BOLI $49,360 $56,031 $60,191
-Community Banks and BOLI - 5,411 8,470
$49,360 $61,442 $68,661
Average UL policyholder fund
balances $10,507,662 $10,351,111 $10,174,141
Average VUL separate account
assets 1,166,356 1,105,805 1,085,865
Total $11,674,018 $11,456,916 $11,260,006
Average Face Amount of
Insurance In Force:
- Total $164,139,000 $163,794,000 $162,933,000
- UL-Type Contracts 122,716,000 122,245,000 121,283,000
Average assets $16,977,002 $16,750,174 $16,531,675
JEFFERSON-PILOT CORPORATION
INDIVIDUAL PRODUCTS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Sep 30, Jun 30, Mar 31,
2002 2002 2002
UL-Type Products:
Net investment income $186,805 $184,805 $184,663
Interest credited to
policyholders (137,230) (132,653) (129,469)
Interest margin 49,575 52,152 55,194
Product charge revenue:
Cost of insurance charges 120,626 119,072 116,719
Expense charges 29,178 29,276 28,780
Surrender charges 10,201 9,030 8,877
Total product charge
revenue 160,005 157,378 154,376
Death benefits and other
insurance benefits (65,092) (59,667) (65,645)
Expenses, excluding
amortization of DAC and VOBA (27,791) (26,823) (26,986)
Amortization of DAC and VOBA (38,763) (35,127) (32,001)
Miscellaneous income (expense) 55 12 93
UL-type product income before
taxes 77,989 87,925 85,031
Traditional Products:
Premiums and other
considerations 44,820 45,630 47,079
Net investment income 44,537 44,445 45,285
Benefits (44,268) (53,803) (60,538)
Expenses, excluding
amortization of DAC and VOBA (6,466) (5,645) (6,030)
Amortization of DAC and VOBA (2,955) (3,499) (3,580)
Traditional product income
before taxes 35,668 27,128 22,216
Income before income taxes 113,657 115,053 107,247
Income taxes (39,780) (40,268) (37,537)
Reportable segment results $73,877 $74,785 $69,710
Operating Measures
Annualized life insurance
premium sales:
-Individual Markets Excl.
Community Banks and BOLI $51,726 $51,647 $38,766
-Community Banks and BOLI 7,348 19,592 22,591
$59,074 $71,239 $61,357
Average UL policyholder fund
balances $9,989,816 $9,778,948 $9,558,857
Average VUL separate account
assets 1,137,553 1,289,788 1,331,981
Total $11,127,369 $11,068,736 $10,890,838
Average Face Amount of
Insurance In Force:
- Total $161,863,000 $160,749,000 $160,061,000
- UL-Type Contracts 120,168,000 119,174,000 118,577,000
Average assets $16,355,557 $16,300,972 $16,219,037
JEFFERSON-PILOT CORPORATION
ANNUITY AND INVESTMENT PRODUCTS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Mar 31, Dec 31, Sep 30,
2004 2003 2003
Investment product charges and
premiums $2,406 $2,637 $1,645
Investment income, net of expenses 143,518 148,183 145,591
Broker-dealer concessions and
other 29,392 26,563 26,489
Total revenues 175,316 177,383 173,725
Policy benefits 103,612 108,116 101,203
Insurance expenses 14,919 11,170 17,005
Broker-dealer expenses 27,512 23,932 24,901
Total benefits and expenses 146,043 143,218 143,109
Income before income taxes 29,273 34,165 30,616
Income taxes 10,203 11,856 10,644
Reportable Segment Results $19,070 $22,309 $19,972
Operating Measures
Fixed annuity premium sales $310,101 $320,989 $187,780
Variable annuity premium sales 112 - 213
Total $310,213 $320,989 $187,993
Investment product sales $1,323,800 $1,054,345 $926,296
Average Fund Balances :
Fixed annuity $8,875,604 $8,611,290 $8,428,312
Variable annuity 350,354 346,699 343,529
Total annuity $9,225,958 $8,957,989 $8,771,841
Effective investment spreads for
fixed annuities 1.71% 1.83% 1.94%
Fixed annuity surrenders as a % of
beginning fund balance 9.5% 9.1% 8.5%
Fixed annuity general and
administrative expenses
as a % of average invested
assets 0.18% 0.19% 0.15%
Average assets $10,116,787 $9,761,055 $9,534,079
JEFFERSON-PILOT CORPORATION
ANNUITY AND INVESTMENT PRODUCTS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Jun 30, Mar 31, Dec 31,
2003 2003 2002
Investment product charges and
premiums $2,466 $2,040 $2,742
Investment income, net of expenses 147,387 145,478 150,247
Broker-dealer concessions and other 23,090 22,190 22,105
Total revenues 172,943 169,708 175,094
Policy benefits 103,692 103,575 111,002
Insurance expenses 14,534 13,106 11,869
Broker-dealer expenses 21,560 20,348 20,374
Total benefits and expenses 139,786 137,029 143,245
Income before income taxes 33,157 32,679 31,849
Income taxes 11,631 11,464 11,147
Reportable Segment Results $21,526 $21,215 $20,702
Operating Measures
Fixed annuity premium sales $132,336 $115,339 $187,440
Variable annuity premium sales 589 1,041 1,279
Total $132,925 $116,380 $188,719
Investment product sales $662,922 $614,665 $632,853
Average Fund Balances :
Fixed annuity $8,319,515 $8,242,025 $8,127,981
Variable annuity 335,893 335,366 351,830
Total annuity $8,655,408 $8,577,391 $8,479,811
Effective investment spreads for fixed
annuities 1.88% 1.89% 1.86%
Fixed annuity surrenders as a % of
beginning fund balance 7.8% 7.9% 9.7%
Fixed annuity general and
administrative expenses
as a % of average invested assets 0.13% 0.18% 0.21%
Average assets $9,449,064 $9,404,408 $9,323,584
JEFFERSON-PILOT CORPORATION
ANNUITY AND INVESTMENT PRODUCTS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Sep 30, Jun 30, Mar 31,
2002 2002 2002
Investment product charges and
premiums $2,907 $2,980 $3,618
Investment income, net of expenses 145,043 140,886 140,630
Broker-dealer concessions and other 22,585 27,215 25,407
Total revenues 170,535 171,081 169,655
Policy benefits 110,180 103,157 100,402
Insurance expenses 9,962 12,516 12,467
Broker-dealer expenses 21,266 25,664 23,937
Total benefits and expenses 141,408 141,337 136,806
Income before income taxes 29,127 29,744 32,849
Income taxes 10,194 10,411 11,497
Reportable Segment Results $18,933 $19,333 $21,352
Operating Measures
Fixed annuity premium sales $365,300 $255,323 $186,424
Variable annuity premium sales 1,510 1,864 5,064
Total $366,810 $257,187 $191,488
Investment product sales $754,358 $773,001 $743,876
Average Fund Balances :
Fixed annuity $7,905,171 $7,674,120 $7,532,393
Variable annuity 385,896 454,759 492,913
Total annuity $8,291,067 $8,128,879 $8,025,306
Effective investment spreads for fixed
annuities 1.81% 1.82% 1.84%
Fixed annuity surrenders as a % of
beginning fund balance 8.5% 10.2% 9.2%
Fixed annuity general and
administrative expenses
as a % of average invested assets 0.20% 0.21% 0.22%
Average assets $9,135,735 $8,962,901 $8,834,628
JEFFERSON-PILOT CORPORATION
BENEFIT PARTNERS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Mar 31, Dec 31, Sep 30,
2004 2003 2003
Premiums and other considerations $232,500 $192,592 $190,313
Net investment income 18,382 15,487 15,879
Total revenue 250,882 208,079 206,192
Policy benefits 180,401 142,397 148,397
Expenses 52,859 40,755 42,368
Total benefits and expenses 233,260 183,152 190,765
Income before income taxes 17,622 24,927 15,427
Income taxes 6,168 8,725 5,399
Reportable segment results $11,454 $16,202 $10,028
Operating Measures
Life, Disability and Dental:
Annualized sales $53,898 $48,753 $38,530
Reportable segments results:
Life $3,459 $6,575 $4,483
Disability 6,790 7,330 5,374
Dental 641 1,949 1,958
Other 564 348 (1,787)
Total $11,454 $16,202 $10,028
Loss ratio:
Life 79.0% 73.1% 76.6%
Disability 72.9% 70.2% 72.9%
Dental 78.3% 72.6% 72.4%
Combined 76.2% 71.8% 74.3%
Total expenses as a % of premiums 22.8% 21.2% 22.3%
JEFFERSON-PILOT CORPORATION
BENEFIT PARTNERS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Jun 30, Mar 31, Dec 31,
2003 2003 2002
Premiums and other considerations $191,322 $181,792 $162,643
Net investment income 16,514 15,882 15,679
Total revenue 207,836 197,674 178,322
Policy benefits 147,831 137,658 119,140
Expenses 40,765 41,682 39,440
Total benefits and expenses 188,596 179,340 158,580
Income before income taxes 19,240 18,334 19,742
Income taxes 6,734 6,417 6,912
Reportable segment results $12,506 $11,917 $12,830
Operating Measures
Life, Disability and Dental:
Annualized sales $39,764 $72,960 $50,940
Reportable segments results:
Life $4,189 $2,510 $4,817
Disability 7,084 8,396 6,625
Dental 986 336 1,305
Other 247 675 83
Total $12,506 $11,917 $12,830
Loss ratio:
Life 78.5% 82.0% 73.8%
Disability 69.7% 63.4% 67.3%
Dental 78.0% 79.8% 72.5%
Combined 74.7% 74.1% 71.0%
Total expenses as a % of premiums 21.4% 23.0% 24.3%
JEFFERSON-PILOT CORPORATION
BENEFIT PARTNERS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Sep 30, Jun 30, Mar 31,
2002 2002 2002
Premiums and other considerations $165,094 $162,064 $148,339
Net investment income 14,938 14,565 15,022
Total revenue 180,032 176,629 163,361
Policy benefits 128,726 120,840 109,227
Expenses 37,120 36,521 34,265
Total benefits and expenses 165,846 157,361 143,492
Income before income taxes 14,186 19,268 19,869
Income taxes 4,965 6,744 6,954
Reportable segment results $9,221 $12,524 $12,915
Operating Measures
Life, Disability and Dental:
Annualized sales $38,383 $36,451 $56,101
Reportable segments results:
Life $3,793 $5,641 $5,508
Disability 3,779 4,595 5,588
Dental 781 1,056 1,015
Other 868 1,232 804
Total $9,221 $12,524 $12,915
Loss ratio:
Life 78.5% 73.4% 72.7%
Disability 73.9% 71.8% 68.8%
Dental 75.1% 75.4% 75.4%
Combined 76.1% 73.1% 71.7%
Total expenses as a % of premiums 22.5% 22.7% 23.1%
JEFFERSON-PILOT CORPORATION
COMMUNICATIONS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Mar 31, Dec 31, Sep 30,
2004 2003 2003
Communications revenues, net $58,507 $63,792 $51,729
Cost of sales 14,713 15,824 9,306
Operating expenses 21,949 18,840 18,821
Broadcast cash flow 21,845 29,128 23,602
Depreciation and amortization 2,225 2,273 1,994
Corporate general and administrative
expenses 1,599 2,090 1,697
Net interest expense and other
income 423 468 514
Income before income taxes 17,598 24,297 19,397
Income taxes 7,046 8,906 8,031
Reportable segment results $10,552 $15,391 $11,366
JEFFERSON-PILOT CORPORATION
COMMUNICATIONS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Jun 30, Mar 31, Dec 31,
2003 2003 2002
Communications revenues, net $50,674 $50,478 $61,844
Cost of sales 7,208 13,453 14,229
Operating expenses 20,328 21,292 20,652
Broadcast cash flow 23,138 15,733 26,963
Depreciation and amortization 2,087 2,103 2,371
Corporate general and administrative
expenses 1,155 1,490 2,244
Net interest expense and other
income 561 588 594
Income before income taxes 19,335 11,552 21,754
Income taxes 7,762 4,488 8,733
Reportable segment results $11,573 $7,064 $13,021
JEFFERSON-PILOT CORPORATION
COMMUNICATIONS SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Sep 30, Jun 30, Mar 31,
2002 2002 2002
Communications revenues, net $49,891 $49,972 $48,643
Cost of sales 9,619 7,253 13,052
Operating expenses 19,632 20,589 20,608
Broadcast cash flow 20,640 22,130 14,983
Depreciation and amortization 1,924 1,880 1,908
Corporate general and administrative
expenses 2,260 1,851 1,340
Net interest expense and other
income 717 761 787
Income before income taxes 15,739 17,638 10,948
Income taxes 5,986 7,127 4,403
Reportable segment results $9,753 $10,511 $6,545
JEFFERSON-PILOT CORPORATION
CORPORATE AND OTHER SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Mar 31, Dec 31, Sep 30,
2004 2003 2003
Earnings on investments and other
income (A) $25,937 $25,378 $24,307
Interest expense on debt(A) (10,748) (8,432) (8,159)
Operating expenses (3,018) (10,171) (8,065)
Federal and state income tax
(expense) benefit (1,748) 3,028 1,877
Reportable segment results 10,423 9,803 9,960
Realized investment gains (losses),
net 14,705 (27,830) (3,862)
Reportable Segment Results,
Including Realized Gains (Losses) $25,128 $(18,027) $6,098
Ending Assets by Segment (In Millions)
Individual Products $18,087 $17,717 $17,365
Annuity and Investment Products 10,293 9,941 9,581
Benefit Partners 1,710 1,079 1,032
Communications 199 210 202
Corporate and Other 3,895 3,749 3,816
Total Assets $34,184 $32,696 $31,996
(A) Prior year amounts have been restated to conform to current year
presentation for the adoption of FIN 46.
JEFFERSON-PILOT CORPORATION
CORPORATE AND OTHER SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Jun 30, Mar 31, Dec 31,
2003 2003 2002
Earnings on investments and other
income(A) $22,437 $21,796 $17,965
Interest expense on debt(A) (8,442) (8,824) (9,127)
Operating expenses (6,608) (6,346) (32,510)
Federal and state income tax
(expense) benefit (321) (1,362) 11,076
Reportable segment results 7,066 5,264 (12,596)
Realized investment gains (losses),
net 13,144 (12,394) (42,073)
Reportable Segment Results,
Including Realized Gains (Losses) $20,210 $(7,130) $(54,669)
Ending Assets by Segment (In Millions)
Individual Products $17,124 $16,829 $16,671
Annuity and Investment Products 9,487 9,412 9,397
Benefit Partners 980 945 909
Communications 201 200 204
Corporate and Other 3,896 3,429 3,438
Total Assets $31,688 $30,815 $30,619
presentation for the adoption of FIN 46.
JEFFERSON-PILOT CORPORATION
CORPORATE AND OTHER SEGMENT
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Sep 30, Jun 30, Mar 31,
2002 2002 2002
Earnings on investments and other
income(A) $15,778 $22,280 $21,189
Interest expense on debt(A) (9,166) (8,867) (8,758)
Operating expenses (3,207) (7,309) (4,922)
Federal and state income tax
(expense) benefit 1,119 (829) (322)
Reportable segment results 4,524 5,275 7,187
Realized investment gains (losses),
net 2,448 2,845 21,863
Reportable Segment Results,
Including Realized Gains (Losses) $6,972 $8,120 $29,050
Ending Assets by Segment (In Millions)
Individual Products $16,392 $16,319 $16,283
Annuity and Investment Products 9,250 9,022 8,904
Benefit Partners 878 852 824
Communications 199 197 197
Corporate and Other 3,279 3,278 3,128
Total Assets $29,998 $29,668 $29,336
(A) Prior year amounts have been restated to conform to current year
presentation for the adoption of FIN 46.
JEFFERSON-PILOT CORPORATION
INSURANCE SEGMENTS EXPENSE ANALYSIS
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Mar 31, Dec 31, Sep 30,
2004 2003 2003
Individual Products
Commissions $63,769 $83,370 $66,616
General and administrative
expenses 29,801 31,738 28,672
Taxes, licenses and fees 11,063 9,558 13,326
Total commissions and
expenses incurred 104,633 124,666 108,614
Less commissions and expenses
capitalized (74,990) (97,251) (76,521)
Amortization of DAC and VOBA 49,039 51,497 53,472
Net expense $78,682 $78,912 $85,565
Annuity and Investment Products
Insurance companies:
Commissions - insurance companies $18,454 $15,087 $8,634
General and administrative expenses 4,859 5,248 4,299
Taxes, licenses and fees 646 564 441
Gross commissions and
expenses incurred 23,959 20,899 13,374
Less commissions and expenses
capitalized (20,539) (19,799) (8,899)
Amortization of DAC and VOBA 11,498 10,070 12,530
Net expense - insurance
companies 14,918 11,170 17,005
Broker/Dealer:
Commissions $24,767 21,312 22,001
Other 2,745 2,620 2,900
Net expense - broker/dealer 27,512 23,932 24,901
Net expense $42,430 $35,102 $41,906
Benefit Partners
Commissions $26,881 $21,079 $21,825
General and administrative expenses 22,952 19,721 18,247
Taxes, licenses and fees 4,981 3,804 5,060
Total commissions and
expenses incurred 54,814 44,604 45,132
Less commissions and expenses
capitalized (8,201) (29,156) (28,134)
Amortization of DAC and VOBA 6,246 25,307 25,370
Net expense $52,859 $40,755 $42,368
JEFFERSON-PILOT CORPORATION
INSURANCE SEGMENTS EXPENSE ANALYSIS
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Jun 30, Mar 31, Dec 31,
2003 2003 2002
Individual Products
Commissions $66,415 $79,184 $73,923
General and administrative
expenses 32,694 30,096 33,280
Taxes, licenses and fees 12,512 14,897 13,109
Total commissions and
expenses incurred 111,621 124,177 120,312
Less commissions and expenses
capitalized (79,520) (95,203) (90,639)
Amortization of DAC and VOBA 44,686 45,624 51,543
Net expense $76,787 $74,598 $81,216
Annuity and Investment Products
Insurance companies:
Commissions - insurance companies $6,955 $6,054 $11,856
General and administrative
expenses 4,270 4,372 6,260
Taxes, licenses and fees 436 497 434
Gross commissions and
expenses incurred 11,661 10,923 18,550
Less commissions and expenses
capitalized (9,231) (9,317) (14,607)
Amortization of DAC and VOBA 12,104 11,500 7,926
Net expense - insurance
companies 14,534 13,106 11,869
Broker/Dealer:
Commissions 19,190 18,071 17,667
Other 2,370 2,277 2,707
Net expense - broker/dealer 21,560 20,348 20,374
Net expense $36,094 $33,454 $32,243
Benefit Partners
Commissions $21,539 $20,821 $19,774
General and administrative expenses 18,214 19,442 18,912
Taxes, licenses and fees 5,061 5,263 4,507
Total commissions and
expenses incurred 44,814 45,526 43,193
Less commissions and expenses
capitalized (28,909) (28,252) (26,395)
Amortization of DAC and VOBA 24,860 24,408 22,642
Net expense $40,765 $41,682 $39,440
JEFFERSON-PILOT CORPORATION
INSURANCE SEGMENTS EXPENSE ANALYSIS
SUPPLEMENTAL HISTORICAL QUARTERLY DATA
(In Thousands) Sep 30, Jun 30, Mar 31,
2002 2002 2002
Individual Products
Commissions $66,135 $67,385 $63,091
General and administrative
expenses 30,636 32,367 30,404
Taxes, licenses and fees 13,652 13,915 14,690
Total commissions and
expenses incurred 110,423 113,667 108,185
Less commissions and expenses
capitalized (76,165) (81,199) (75,168)
Amortization of DAC and VOBA 41,717 38,626 35,581
Net expense $75,975 $71,094 $68,597
Annuity and Investment Products
Insurance companies:
Commissions - insurance companies $17,976 $11,964 $11,164
General and administrative
expenses 5,631 5,103 4,638
Taxes, licenses and fees 425 471 488
Gross commissions and
expenses incurred 24,032 17,538 16,290
Less commissions and expenses
capitalized (22,725) (15,168) (14,639)
Amortization of DAC and VOBA 8,655 10,146 10,816
Net expense - insurance
companies 9,962 12,516 12,467
Broker/Dealer:
Commissions 18,506 22,971 21,499
Other 2,760 2,693 2,438
Net expense - broker/dealer 21,266 25,664 23,937
Net expense $31,228 $38,180 $36,404
Benefit Partners
Commissions $18,832 $18,455 $17,682
General and administrative expenses 17,165 16,746 16,812
Taxes, licenses and fees 4,355 5,031 3,993
Total commissions and
expenses incurred 40,352 40,232 38,487
Less commissions and expenses
capitalized (24,207) (23,990) (23,423)
Amortization of DAC and VOBA 20,975 20,279 19,201
Net expense $37,120 $36,521 $34,265
DAC and VOBA Balance Sheet Analysis
Mar 31, Dec 31, Sep 30,
2004 2003 2003
Balance, beginning of period $2,230,444 $2,111,305 $2,006,760
Cumulative effect of change in
accounting principle 1,064 - -
Benefit Partners co-insurance
transaction 34,795 - -
Amount capitalized 103,729 146,208 113,552
Amortization expense (66,788) (86,880) (91,375)
Adjustment for capital gains
and losses (904) 1,239 16,092
Adjustment for FAS 115 (107,451) 58,572 66,276
Balance, end of period $2,194,889 $2,230,444 $2,111,305
DAC and VOBA Balance Sheet Analysis
Jun 30, Mar 31, Dec 31,
2003 2003 2002
Balance, beginning of period $2,067,710 $2,027,317 $1,999,932
Cumulative effect of change in
accounting principle - - -
Benefit Partners co-insurance
transaction - - -
Amount capitalized 117,822 132,771 131,805
Amortization expense (81,653) (81,537) (82,109)
Adjustment for capital gains
and losses (1,957) (963) (2,780)
Adjustment for FAS 115 (95,162) (9,878) (19,531)
Balance, end of period $2,006,760 $2,067,710 $2,027,317
DAC and VOBA Balance Sheet Analysis
Sep 30, Jun 30, Mar 31,
2002 2002 2002
Balance, beginning of period $2,070,525 $2,169,713 $2,069,570
Cumulative effect of change in
accounting principle - - -
Benefit Partners co-insurance
transaction - - -
Amount capitalized 123,094 120,357 110,903
Amortization expense (71,357) (69,055) (63,274)
Adjustment for capital gains
and losses (2,364) 320 (82)
Adjustment for FAS 115 (119,966) (150,810) 52,596
Balance, end of period $1,999,932 $2,070,525 $2,169,713
SOURCE Jefferson-Pilot Corporation
-0- 04/27/2004 AB CLTU019
/PRNewswire -- April 27/
/END SECOND AND FINAL ADD/
/Web site: http://www.jpfinancial.com /
(JP)
CO: Jefferson-Pilot Corporation
ST: North Carolina
IN: INS
SU: ERN