Delphi Announces First Quarter 2001 Results

Apr 24, 2001, 01:00 ET from Delphi Financial Group, Inc.

    WILMINGTON, Del. April 24 /PRNewswire Interactive News Release/ -- Delphi
 Financial Group, Inc. (NYSE:   DFG) today announced first quarter 2001 operating
 earnings(A) of $0.82 per share, or $17.3 million.  These levels are on plan,
 and consistent with the earnings guidance of $3.50 for 200l that the Company
 has provided.  Net income for the quarter was $0.98 per share, or
 $20.6 million.  Net income includes a $0.15 per share gain on the repurchase
 of Capital Securities and realized investment gains of $0.01 per share.
     During the quarter, the Company substantially completed its deleveraging
 strategy.  Bank debt of $150 million was repaid in full, and $21.3 million of
 Capital Securities were repurchased.  By quarter end, the ratio of debt to
 total capitalization was reduced to 15%, down from 30% at year-end and 32% a
 year ago.
     The substantial reduction in trading account securities and other higher
 yielding investment activities at the holding company had the anticipated
 effect of reducing operating net income per share compared with last year.
 But the Company's deleveraging strategy was designed to allow insurance
 operations to be clearly reflected.  And these results were indeed excellent.
     Core group employee benefit premiums grew 14% from the same period a year
 ago.  Group employee benefits combined ratio was 92.0% in the first quarter,
 in line with full-year 2000 results, and significantly improved from 95.1% in
 the first quarter of 2000.  Pricing trends continue strong in the flagship
 excess workers' compensation and long-term disability lines.  The Company
 maintained disciplined pricing of our annuity products in the first quarter,
 deliberately cutting back on new production as competitors failed to react
 quickly enough to declining interest rates.
     Robert Rosenkranz, Chairman and Chief Executive Officer, commented, "We
 are very pleased with the performance of our insurance operations during the
 first quarter of 2001.  The strength of these operations is more readily
 apparent after the substantial completion of our deleveraging strategy.  Core
 premiums were up decisively and profitability remained strong.  We also paid
 our first quarterly cash dividend of $0.07 per share in March."
     On April 25, 2001 at 11:00 AM (Eastern Daylight Time), Delphi will
 broadcast the Company's first quarter 2001 earnings teleconference live on the
 Internet, hosted by Robert Rosenkranz, Chairman and Chief Executive Officer.
 Investors can access the broadcast at www.delphifin.com.  It is advisable to
 register at least 15 minutes prior to the call to download and install any
 necessary audio software.  The on-line replay will be available for one week
 beginning at approximately 1:00 PM (Eastern Daylight Time) on April 25, 2001.
 
     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: long-term and short-term disability, excess and primary workers'
 compensation, group life, and travel accident.  Delphi's asset accumulation
 business emphasizes individual 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.
 
     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 statement 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" 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 and tax laws and
 regulations, and market pricing and competitive trends relating to insurance
 products and services, and those relating specifically to Delphi's business,
 such as the level of its insurance premiums and fee income, the claims
 experience 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 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.
 
     (A)  Operating earnings exclude after-tax realized investment gains and
 losses and extraordinary gain.  All per share amounts are on a diluted basis.
 
                          DELPHI FINANCIAL GROUP, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
                (Unaudited; in thousands, except per share data)
 
 
                                                     Three Months Ended
                                                     03/31/01       03/31/00
 
     Revenue:
       Premium and fee income                        $123,305       $112,759
       Net investment income                           39,066         50,676
                                                      162,371        163,435
       Benefits and expenses:
         Benefits, claims and interest
          credited to policyholders                    89,699         85,771
       Commissions and expenses                        41,067         37,446
                                                      130,766        123,217
 
         Operating income                              31,605         40,218
 
     Interest expense                                   3,809          5,359
     Income tax expense                                 8,981         11,046
     Dividends on Capital Securities of
      Delphi Funding L.L.C.                             1,480          1,513
 
         Income before realized investment gains
          (losses) and extraordinary gain              17,335         22,300
 
     Realized investment gains (losses), net of taxes     293         (1,006)
 
     Extraordinary gain on repurchase of
      Capital Securities, net of taxes                  3,017              -
 
 
         Net income                                   $20,645        $21,294
 
     Basic results per share of common stock:
       Income before realized investment gains
        (losses) and extraordinary gain                 $0.84          $1.09
       Realized investment gains (losses), net of taxes  0.01          (0.05)
       Extraordinary gain on repurchase of
        Capital Securities, net of taxes                 0.16              -
         Net income                                     $1.01          $1.04
 
     Weighted average shares outstanding
      (in thousands)                                   20,528         20,387
 
     Diluted results per share of common stock:
       Income before realized investment gains
        (losses) and extraordinary gain                 $0.82          $1.06
       Realized investment gains (losses),
        net of taxes                                     0.01          (0.05)
       Extraordinary gain on repurchase of
        Capital Securities, net of taxes                 0.15              -
         Net income                                     $0.98          $1.01
 
       Weighted average shares outstanding
       (in thousands)                                  21,090         20,996
 
 
                          DELPHI FINANCIAL GROUP, INC.
                     SUMMARIZED CONSOLIDATED BALANCE SHEETS
                (Unaudited; in thousands, except per share data)
 
 
                                                     03/31/01       12/31/00
 
     Assets:
       Invested assets                             $2,390,165     $2,488,289
       Other assets                                   983,050        951,721
 
         Total assets                              $3,373,215     $3,440,010
 
     Liabilities and shareholders' equity:
       Policy liabilities and accruals             $1,189,318     $1,170,144
       Policyholder account balances                  794,548        782,452
       Corporate debt                                 117,733        267,770
       Other liabilities                              620,096        581,451
 
         Total liabilities                          2,721,695      2,801,817
 
       Capital Securities of Delphi Funding L.L.C.     78,750        100,000
 
       Shareholders' equity                           572,770        538,193
 
         Total liabilities and
          shareholders' equity                     $3,373,215     $3,440,010
 
     Diluted book value per share of common stock      $28.01         $26.87
 
     Diluted book value per share of common stock
      before net unrealized depreciation
      on investments                                   $29.67         $29.15
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X89321117
 
 

SOURCE Delphi Financial Group, Inc.
    WILMINGTON, Del. April 24 /PRNewswire Interactive News Release/ -- Delphi
 Financial Group, Inc. (NYSE:   DFG) today announced first quarter 2001 operating
 earnings(A) of $0.82 per share, or $17.3 million.  These levels are on plan,
 and consistent with the earnings guidance of $3.50 for 200l that the Company
 has provided.  Net income for the quarter was $0.98 per share, or
 $20.6 million.  Net income includes a $0.15 per share gain on the repurchase
 of Capital Securities and realized investment gains of $0.01 per share.
     During the quarter, the Company substantially completed its deleveraging
 strategy.  Bank debt of $150 million was repaid in full, and $21.3 million of
 Capital Securities were repurchased.  By quarter end, the ratio of debt to
 total capitalization was reduced to 15%, down from 30% at year-end and 32% a
 year ago.
     The substantial reduction in trading account securities and other higher
 yielding investment activities at the holding company had the anticipated
 effect of reducing operating net income per share compared with last year.
 But the Company's deleveraging strategy was designed to allow insurance
 operations to be clearly reflected.  And these results were indeed excellent.
     Core group employee benefit premiums grew 14% from the same period a year
 ago.  Group employee benefits combined ratio was 92.0% in the first quarter,
 in line with full-year 2000 results, and significantly improved from 95.1% in
 the first quarter of 2000.  Pricing trends continue strong in the flagship
 excess workers' compensation and long-term disability lines.  The Company
 maintained disciplined pricing of our annuity products in the first quarter,
 deliberately cutting back on new production as competitors failed to react
 quickly enough to declining interest rates.
     Robert Rosenkranz, Chairman and Chief Executive Officer, commented, "We
 are very pleased with the performance of our insurance operations during the
 first quarter of 2001.  The strength of these operations is more readily
 apparent after the substantial completion of our deleveraging strategy.  Core
 premiums were up decisively and profitability remained strong.  We also paid
 our first quarterly cash dividend of $0.07 per share in March."
     On April 25, 2001 at 11:00 AM (Eastern Daylight Time), Delphi will
 broadcast the Company's first quarter 2001 earnings teleconference live on the
 Internet, hosted by Robert Rosenkranz, Chairman and Chief Executive Officer.
 Investors can access the broadcast at www.delphifin.com.  It is advisable to
 register at least 15 minutes prior to the call to download and install any
 necessary audio software.  The on-line replay will be available for one week
 beginning at approximately 1:00 PM (Eastern Daylight Time) on April 25, 2001.
 
     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: long-term and short-term disability, excess and primary workers'
 compensation, group life, and travel accident.  Delphi's asset accumulation
 business emphasizes individual 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.
 
     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 statement 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" 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 and tax laws and
 regulations, and market pricing and competitive trends relating to insurance
 products and services, and those relating specifically to Delphi's business,
 such as the level of its insurance premiums and fee income, the claims
 experience 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 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.
 
     (A)  Operating earnings exclude after-tax realized investment gains and
 losses and extraordinary gain.  All per share amounts are on a diluted basis.
 
                          DELPHI FINANCIAL GROUP, INC.
                       CONSOLIDATED STATEMENTS OF INCOME
                (Unaudited; in thousands, except per share data)
 
 
                                                     Three Months Ended
                                                     03/31/01       03/31/00
 
     Revenue:
       Premium and fee income                        $123,305       $112,759
       Net investment income                           39,066         50,676
                                                      162,371        163,435
       Benefits and expenses:
         Benefits, claims and interest
          credited to policyholders                    89,699         85,771
       Commissions and expenses                        41,067         37,446
                                                      130,766        123,217
 
         Operating income                              31,605         40,218
 
     Interest expense                                   3,809          5,359
     Income tax expense                                 8,981         11,046
     Dividends on Capital Securities of
      Delphi Funding L.L.C.                             1,480          1,513
 
         Income before realized investment gains
          (losses) and extraordinary gain              17,335         22,300
 
     Realized investment gains (losses), net of taxes     293         (1,006)
 
     Extraordinary gain on repurchase of
      Capital Securities, net of taxes                  3,017              -
 
 
         Net income                                   $20,645        $21,294
 
     Basic results per share of common stock:
       Income before realized investment gains
        (losses) and extraordinary gain                 $0.84          $1.09
       Realized investment gains (losses), net of taxes  0.01          (0.05)
       Extraordinary gain on repurchase of
        Capital Securities, net of taxes                 0.16              -
         Net income                                     $1.01          $1.04
 
     Weighted average shares outstanding
      (in thousands)                                   20,528         20,387
 
     Diluted results per share of common stock:
       Income before realized investment gains
        (losses) and extraordinary gain                 $0.82          $1.06
       Realized investment gains (losses),
        net of taxes                                     0.01          (0.05)
       Extraordinary gain on repurchase of
        Capital Securities, net of taxes                 0.15              -
         Net income                                     $0.98          $1.01
 
       Weighted average shares outstanding
       (in thousands)                                  21,090         20,996
 
 
                          DELPHI FINANCIAL GROUP, INC.
                     SUMMARIZED CONSOLIDATED BALANCE SHEETS
                (Unaudited; in thousands, except per share data)
 
 
                                                     03/31/01       12/31/00
 
     Assets:
       Invested assets                             $2,390,165     $2,488,289
       Other assets                                   983,050        951,721
 
         Total assets                              $3,373,215     $3,440,010
 
     Liabilities and shareholders' equity:
       Policy liabilities and accruals             $1,189,318     $1,170,144
       Policyholder account balances                  794,548        782,452
       Corporate debt                                 117,733        267,770
       Other liabilities                              620,096        581,451
 
         Total liabilities                          2,721,695      2,801,817
 
       Capital Securities of Delphi Funding L.L.C.     78,750        100,000
 
       Shareholders' equity                           572,770        538,193
 
         Total liabilities and
          shareholders' equity                     $3,373,215     $3,440,010
 
     Diluted book value per share of common stock      $28.01         $26.87
 
     Diluted book value per share of common stock
      before net unrealized depreciation
      on investments                                   $29.67         $29.15
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X89321117
 
 SOURCE  Delphi Financial Group, Inc.