EXHIBIT 99.1
[DELPHI FINANCIAL GROUP, INC. LOGO] 1105 North Market Street
Suite 1230
Wilmington, Delaware 19801
www.delphifin.com
PRESS RELEASE
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Contact: Bernard J. Kilkelly FOR IMMEDIATE RELEASE
Vice President, Investor Relations 10/6/05
Phone: 212-303-4349
E-mail: bernie-kilkelly@dlfi.com
DELPHI FINANCIAL PREANNOUNCES THIRD QUARTER RESULTS
Wilmington, Delaware - October 6, 2005 - Delphi Financial Group, Inc. (NYSE:
DFG) announced today that the company expects to report operating earnings (1)
per share in the third quarter of 2005 in a range of $0.57 to $0.59. This
includes the impact of approximately $12.2 million, or $0.36 per share, of
after-tax losses in the company's non-core property catastrophe reinsurance
business, which covers the company's maximum exposure to Hurricane Katrina. The
company expects to report net income per share of $0.63 to $0.65 for the third
quarter of 2005, including $0.06 per share of after-tax realized investment
gains.
Robert Rosenkranz, Chairman and Chief Executive Officer, said, "Excluding the
impact of the Katrina losses, we expect Delphi's third quarter operating
earnings per share will be in a range of $0.93 to $0.95 per share, which is
above the $0.91 to $0.93 range of guidance we provided in July. This is based on
continued strong premium growth and higher margins in our core insurance
businesses. In particular, we are achieving improved profitability in group
long-term disability at Reliance Standard Life and benefiting from a continued
hard market for excess workers' compensation at Safety National. Based on these
ongoing trends, we remain confident in our outlook for continued strong earnings
growth in the fourth quarter of 2005 and in 2006." Delphi made a $15 million
capital contribution to Safety National in the third quarter to offset the
capital impact of the Katrina provision and to support expansion in Safety
National's excess workers' compensation business.
Mr. Rosenkranz added, "Our non-core insurance lines have included property
catastrophe reinsurance since 2000. This business has been consistently
profitable for us, even in 2004 in which there were four major hurricanes. Even
after taking into account the current quarter's provision for Katrina, the
largest insured catastrophe loss in history, the business has been profitable on
a cumulative basis since inception and has generated attractive returns on
capital over the long term."
Delphi will release its financial results for the third quarter of 2005 on
Tuesday, October 25, 2005. On Wednesday, October 26, 2005 at 11:00 AM (Eastern
time), Delphi will broadcast the Company's third quarter 2005 earnings
teleconference live on the Internet, hosted by Robert Rosenkranz, Chairman and
Chief Executive Officer. Investors can access the broadcast at www.delphifin.com
by clicking on the webcast icon on the home page. It is advisable to register at
least 15 minutes prior to the call to download and install any necessary audio
software. The online replay will be available on Delphi's website for one week
beginning at approximately 1:00 PM (Eastern time) on October 26, 2005.
DELPHI EXPECTS TO REPORT THIRD QUARTER 2005 OPERATING PAGE 2
EPS OF $0.57 - $0.59
In connection with, and because it desires to take advantage of, the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995,
Delphi cautions readers regarding certain forward-looking statements in the
foregoing discussion and in any other statements made by, or on behalf of,
Delphi, whether in future filings with the Securities and Exchange Commission or
otherwise. Forward-looking statements are statements not based on historical
information and which relate to future operations, strategies, financial
results, prospects, outlooks or other developments. Some forward-looking
statements may be identified by the use of terms such as "expects," "believes,"
"anticipates," "intends," "judgment," "outlook" or other similar expressions.
Forward-looking statements are necessarily based upon estimates and assumptions
that are inherently subject to significant business, economic, competitive and
other uncertainties and contingencies, many of which are beyond Delphi's control
and many of which, with respect to future business decisions, are subject to
change. Examples of such uncertainties and contingencies include, among other
important factors, those affecting the insurance industry generally, such as the
economic and interest rate environment, federal and state legislative and
regulatory developments, including but not limited to changes in financial
services, employee benefit and tax laws and regulations, market pricing and
competitive trends relating to insurance products and services, acts of
terrorism or war, and the availability and cost of reinsurance, and those
relating specifically to Delphi's business, such as the level of its insurance
premiums and fee income, the claims experience, persistency and other factors
affecting the profitability of its insurance products, the performance of its
investment portfolio and changes in Delphi's investment strategy, acquisitions
of companies or blocks of business, and ratings by major rating organizations of
Delphi and its insurance subsidiaries. These uncertainties and contingencies can
affect actual results and could cause actual results to differ materially from
those expressed in any forward-looking statements made by, or on behalf of,
Delphi. Delphi disclaims any obligation to update forward-looking information.
Delphi Financial Group, Inc. is an integrated employee benefit services company.
Delphi is a leader in managing all aspects of employee absence to enhance the
productivity of its clients and provides the related insurance coverages: group
life, long-term and short-term disability, excess workers' compensation for
self-insured employers, travel accident and dental. Delphi's asset accumulation
business emphasizes individual fixed annuity products. Delphi's common stock is
listed on the New York Stock Exchange under the symbol DFG and its corporate
website address is www.delphifin.com.
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(1) Operating earnings, which is a non-GAAP financial measure, consist of net
income excluding after-tax realized investment gains and losses, as applicable.
The Company believes that because realized investment gains and losses arise
from events that, to a significant extent, are within management's discretion
and can fluctuate significantly, thus distorting comparisons between periods, a
measure excluding their impact is useful in analyzing the Company's operating
trends. Investment gains or losses may be realized based on management's
decision to dispose of an investment, and investment losses may be realized
based on management's judgment that a decline in the market value of an
investment is other than temporary. Thus, realized investment gains and losses
are not reflective of the Company's ongoing earnings capacity, and trends in the
earnings of the Company's underlying insurance operations can be more clearly
identified without the effects of these gains and losses. For these reasons,
management uses the measure of operating earnings to assess performance and make
operating plans and decisions, and analysts and investors typically utilize
measures of this type when evaluating the financial performance of insurers.
However, realized investment gains and losses occur frequently and should not be
considered as nonrecurring items. Further, operating earnings should not be
considered a substitute for net income, the most directly comparable GAAP
measure, as an indication of the Company's overall financial performance and may
not be calculated in the same manner as similarly titled captions in other
companies' financial statements. All per share amounts are on a diluted basis.
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