E.W. Blanch Holdings, Inc. Reports First Quarter 2001 Earnings

Apr 26, 2001, 01:00 ET from E.W. Blanch Holdings, Inc.

    DALLAS, April 26 /PRNewswire/ -- E.W. Blanch Holdings, Inc. (NYSE:   EWB)
 today announced its financial results for the three months ended
 March 31, 2001.  Revenues for the three months ended March 31, 2001 decreased
 16.8 percent to $47.4 million from $56.9 million during the same period of
 2000.  Net income for the three months ended March 31, 2001 decreased
 19.0 percent to $1.7 million versus $2.2 million in the first quarter of 2000.
     Diluted earnings per share of the three months ended March 31, 2001
 declined to 18.8 percent to $0.13 as compared with $0.16 during the first
 quarter of 2000.  Basic earnings per share for the three months ended
 March 31, 2001 decreased 12.5 percent to $0.14 as compared to $0.16 during the
 first quarter of 2000.
     As previously announced on April 16, 2001, E.W. Blanch and Benfield Greig
 Group plc have entered into a merger agreement under which Benfield Greig will
 acquire all of the outstanding shares of E.W. Blanch for $13.50 per share in
 cash, or approximately $179 million.  The combined company will be the third
 largest reinsurance broker in the world with pro forma revenues of
 $410 million in 2000.  The new group will be the largest privately owned
 reinsurance intermediary in the world and will have a global presence with
 more than 30 offices worldwide and over 1,700 employees.  Following the
 merger, the combined group's U.S. operations will be renamed Benfield Blanch.
     E.W. Blanch also announced that its Board of Directors has determined that
 no dividend will be declared this quarter.
     Except for the historical information contained herein, the matters
 discussed in this news release are forward looking statements that involve
 risks and uncertainties, many of which are outside the Company's control and,
 accordingly, actual results may differ materially.  The Company's Form 10-K
 filed with the SEC on April 2, 2001 includes a discussion of these risk
 factors and is incorporated herein by reference.
     E.W. Blanch Holdings, Inc. is a leading provider of integrated risk
 management and distribution services, including reinsurance intermediary
 services, risk management consulting and administration services and primary
 distribution services.  The Company is headquartered in Dallas, Texas with
 branch offices throughout the United States and strategic locations in Europe
 and Latin America.  For more information, check the Internet at www.ewb.com.
 
 
      E. W. Blanch Holdings, Inc.
 
      Condensed Consolidated Statements of Income (Unaudited)
      (Dollars in thousands except per share amounts)
 
                                                       Three Months Ended
                                                             March 31,
                                                         2001        2000
      Revenues:
        Operations                                       $44,343     $51,488
        Interest income                                    2,968       3,172
        Other income                                          40       2,255
      Total revenues                                      47,351      56,915
 
      Expenses:
        Salaries and benefits                             25,555      32,549
        Travel and marketing                               1,965       4,670
        General and administrative                        13,438      13,689
        Amortization of intangibles                        1,328       1,440
        Interest expense                                   1,359       1,432
      Total expenses                                      43,645      53,780
 
      Income before taxes                                  3,706       3,135
 
      Income taxes                                         1,574       1,300
      Minority interest, net of tax                            3         (45)
      Equity interest in (gain) loss of unconsolidated
       subsidiaries, net of tax                              380        (280)
      Net income                                          $1,749      $2,160
 
      Net income per share, basic                          $0.14       $0.16
 
      Net income per share, assuming dilution              $0.13       $0.16
 
      Wtd. Average number of shares outstanding, basic    12,953      13,184
      Wtd. average number of shares outstanding,
       assuming dilution                                  13,093      13,815
 
      Certain prior year amounts have been reclassified to conform with current
 year presentation.
 
 
      Condensed Consolidated Balance Sheets (Unaudited)
      (Dollars in thousands)
 
                                                       March 31,  December 31,
                                                         2001        2000
 
      Assets
      Current assets                                     $67,707     $70,544
      Other assets                                       150,890     158,699
      Fiduciary accounts - assets                      1,083,861   1,023,329
        Total Assets                                   1,302,458   1,252,572
 
      Liabilities & Shareholders' Equity
      Current liabilities                                 80,722      91,752
      Other liabilities                                    5,747       5,801
      Fiduciary accounts - liabilities                 1,083,861   1,023,329
        Total Liabilities                              1,170,330   1,120,882
 
      Minority Interest                                      409         401
 
      Shareholders' Equity                               131,719     131,289
        Total Liabilities & Shareholders' Equity      $1,302,458  $1,252,572
 
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SOURCE E.W. Blanch Holdings, Inc.
    DALLAS, April 26 /PRNewswire/ -- E.W. Blanch Holdings, Inc. (NYSE:   EWB)
 today announced its financial results for the three months ended
 March 31, 2001.  Revenues for the three months ended March 31, 2001 decreased
 16.8 percent to $47.4 million from $56.9 million during the same period of
 2000.  Net income for the three months ended March 31, 2001 decreased
 19.0 percent to $1.7 million versus $2.2 million in the first quarter of 2000.
     Diluted earnings per share of the three months ended March 31, 2001
 declined to 18.8 percent to $0.13 as compared with $0.16 during the first
 quarter of 2000.  Basic earnings per share for the three months ended
 March 31, 2001 decreased 12.5 percent to $0.14 as compared to $0.16 during the
 first quarter of 2000.
     As previously announced on April 16, 2001, E.W. Blanch and Benfield Greig
 Group plc have entered into a merger agreement under which Benfield Greig will
 acquire all of the outstanding shares of E.W. Blanch for $13.50 per share in
 cash, or approximately $179 million.  The combined company will be the third
 largest reinsurance broker in the world with pro forma revenues of
 $410 million in 2000.  The new group will be the largest privately owned
 reinsurance intermediary in the world and will have a global presence with
 more than 30 offices worldwide and over 1,700 employees.  Following the
 merger, the combined group's U.S. operations will be renamed Benfield Blanch.
     E.W. Blanch also announced that its Board of Directors has determined that
 no dividend will be declared this quarter.
     Except for the historical information contained herein, the matters
 discussed in this news release are forward looking statements that involve
 risks and uncertainties, many of which are outside the Company's control and,
 accordingly, actual results may differ materially.  The Company's Form 10-K
 filed with the SEC on April 2, 2001 includes a discussion of these risk
 factors and is incorporated herein by reference.
     E.W. Blanch Holdings, Inc. is a leading provider of integrated risk
 management and distribution services, including reinsurance intermediary
 services, risk management consulting and administration services and primary
 distribution services.  The Company is headquartered in Dallas, Texas with
 branch offices throughout the United States and strategic locations in Europe
 and Latin America.  For more information, check the Internet at www.ewb.com.
 
 
      E. W. Blanch Holdings, Inc.
 
      Condensed Consolidated Statements of Income (Unaudited)
      (Dollars in thousands except per share amounts)
 
                                                       Three Months Ended
                                                             March 31,
                                                         2001        2000
      Revenues:
        Operations                                       $44,343     $51,488
        Interest income                                    2,968       3,172
        Other income                                          40       2,255
      Total revenues                                      47,351      56,915
 
      Expenses:
        Salaries and benefits                             25,555      32,549
        Travel and marketing                               1,965       4,670
        General and administrative                        13,438      13,689
        Amortization of intangibles                        1,328       1,440
        Interest expense                                   1,359       1,432
      Total expenses                                      43,645      53,780
 
      Income before taxes                                  3,706       3,135
 
      Income taxes                                         1,574       1,300
      Minority interest, net of tax                            3         (45)
      Equity interest in (gain) loss of unconsolidated
       subsidiaries, net of tax                              380        (280)
      Net income                                          $1,749      $2,160
 
      Net income per share, basic                          $0.14       $0.16
 
      Net income per share, assuming dilution              $0.13       $0.16
 
      Wtd. Average number of shares outstanding, basic    12,953      13,184
      Wtd. average number of shares outstanding,
       assuming dilution                                  13,093      13,815
 
      Certain prior year amounts have been reclassified to conform with current
 year presentation.
 
 
      Condensed Consolidated Balance Sheets (Unaudited)
      (Dollars in thousands)
 
                                                       March 31,  December 31,
                                                         2001        2000
 
      Assets
      Current assets                                     $67,707     $70,544
      Other assets                                       150,890     158,699
      Fiduciary accounts - assets                      1,083,861   1,023,329
        Total Assets                                   1,302,458   1,252,572
 
      Liabilities & Shareholders' Equity
      Current liabilities                                 80,722      91,752
      Other liabilities                                    5,747       5,801
      Fiduciary accounts - liabilities                 1,083,861   1,023,329
        Total Liabilities                              1,170,330   1,120,882
 
      Minority Interest                                      409         401
 
      Shareholders' Equity                               131,719     131,289
        Total Liabilities & Shareholders' Equity      $1,302,458  $1,252,572
 
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 SOURCE  E.W. Blanch Holdings, Inc.