Jefferson Pilot Reports First-Quarter Results

Apr 30, 2001, 01:00 ET from Jefferson-Pilot Corporation

    GREENSBORO, N.C., April 30 /PRNewswire/ -- Jefferson-Pilot Corporation
 (NYSE:   JP), parent of the Jefferson Pilot Financial companies and one of the
 nation's leading providers of universal and variable universal life insurance
 and annuities, today reported earnings per share of $0.96 for the first
 quarter of 2001, up eight percent from first-quarter 2000 earnings of $0.89.
 These results represent a record for the first quarter.
     Before realized investment gains, Jefferson Pilot earned $0.72 per share,
 up four percent from $0.69 in the prior-year period.  Operating earnings for
 the first quarter of 2001 were affected by high mortality in Jefferson Pilot's
 Individual Products business segment, and by a decline at Jefferson-Pilot
 Communications Company reflecting the current extremely weak advertising
 environment.
     All per-share results are on a diluted basis and are adjusted for a three-
 for-two stock split that was completed April 9, 2001.
     In the first quarter, Jefferson Pilot's core Individual Products business
 earned $69.5 million, up from $68.3 million in the first quarter of 2000.
 First-quarter sales of individual life insurance, at $36.6 million of new
 annualized premiums, were down from the prior-year quarter in part due to
 general economic conditions and uncertainty surrounding estate tax changes.
 However, we expect several important product and marketing initiatives to have
 a positive impact later this year.  New product introductions include single-
 life and survivorship universal life plans with innovative design and
 flexibility that will allow us to be highly competitive in our key markets.
 We also continue to implement a number of marketing initiatives related to our
 new Premier Partnering strategy, which has generated very positive feedback
 from key producers.
     Annuity and Investment Product segment earnings of $20.7 million for the
 quarter represented a solid performance in line with the first quarter of
 2000.  Earnings benefited from income relating to the cumulative effect of a
 change in accounting for derivatives, and were affected adversely by a decline
 in earnings of Jefferson Pilot Securities Corp. due to weak equity markets.
 Fixed annuity premium receipts increased a strong 25 percent from the year-
 earlier quarter to almost $300 million, and fixed annuity fund balances grew
 six percent to more than $6.5 billion.  Fixed annuities experienced a lower
 lapse rate, reflecting the combined effects of lower interest rates on
 competing investments, increased surrender charge protection on our in-force
 block of business, and internal conservation initiatives.
     Jefferson Pilot's Benefit Partners' non-medical group insurance business
 continued to enjoy synergistic benefits of the combination of Guarantee Life's
 operations with Jefferson Pilot's group business.  Benefit Partners' non-
 medical sales increased 21 percent and expense performance continued to
 improve.  The result was an excellent 26 percent increase in earnings for the
 quarter to $10.4 million from $8.3 million a year earlier.
    Jefferson-Pilot Communications Company experienced a decline in revenues
 and earnings, as slowing business conditions in the national economy adversely
 affected advertising revenues.  Broadcast cash flow slowed to $16.8 million
 from $20.1 million a year ago, while Communications' earnings declined to
 $6.8 million in the quarter from $8.8 million in the first quarter last year,
 reflecting economic conditions that have deteriorated significantly for
 broadcasters since the beginning of the year.  The markets in which we operate
 remain, we believe, some of the most attractive in the nation from a long-term
 growth perspective, notwithstanding the current slowdown.
     Balance sheet quality remains a high priority at Jefferson Pilot.
 Investment grade bonds constitute 94 percent of our bond investments, and the
 average quality of our bonds is high "A".
     Our commercial mortgage portfolio is in excellent condition, with a very
 low delinquency rate.
     Consistent with our longstanding strategy of taking advantage of market
 opportunity, Jefferson Pilot aggressively purchased its stock in the first
 quarter, retiring 2.2 million shares at an average cost of $43.03 per share.
     Commenting on the quarter, Jefferson Pilot CEO David A. Stonecipher
 observed that "Despite the sluggishness of general business activity in the
 first quarter and a modest spike in death claims in our individual life
 insurance business, Jefferson Pilot continues to make good progress on many
 fronts.  We are intensely focused this year on implementing our Premier
 Partnering strategic initiative, an exciting new marketing thrust that we
 believe will accelerate growth markedly in our core individual life business.
 To that end, a number of new products were introduced during the first quarter
 which we believe will have a positive effect on our individual life insurance
 sales beginning in the second half of this year.  Looking farther out, we
 expect Premier Partnering to provide the momentum that will allow Jefferson
 Pilot to remain a growth leader in the industry."
 
     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 offer full lines of individual and
 group life insurance products as well as annuity and investment products.
 Jefferson-Pilot Communications Company owns and operates three network
 television stations and 17 radio stations, and produces and syndicates sports
 programming.  Visit us on the Internet at http://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 affect
 our actual results significantly.  These risks and uncertainties include,
 among others, the risks that Jefferson Pilot might fail to complete
 successfully its Premier Partnering strategy for increasing individual life
 insurance sales.  Other uncertainties that could affect these sales include
 general economic conditions; competitive factors, including pricing pressures,
 technological developments, new product offerings, and the emergence of new
 competitors; interest rate trends and fluctuations; changes in federal and
 state taxes; changes in the regulation of the financial services industry; or
 changes in other laws and regulations.  We undertake no obligation to publicly
 correct or update any forward-looking statements.  Readers are advised to
 consult any further disclosures we make on related subjects in our press
 releases and filings with the SEC; in particular, see the section entitled
 "External Trends and Forward Looking Information," and other sections it may
 reference, in our most recent 10-K report to the SEC, as it may be updated in
 our subsequent 10-Q and 8-K reports.
 
                  Jefferson-Pilot Corporation and Subsidiaries
                           First Quarter 2001 Results
 
                                                 Three Months Ended
                                            Mar 31, 2001      Mar 31, 2000
 
     Basic earnings per share available to
      common stockholders, before gain from
       sale of investments                         $0.73             $0.69
 
     Gain from sale of investments, net of
      income taxes                                  0.24              0.21
 
     Basic earnings per share available to
      common stockholders                          $0.97             $0.90
 
     Diluted earnings per share available
      to common stockholders, before gain
       from sale of investments                    $0.72             $0.69
 
     Gain from sale of investments, net of
      income taxes                                  0.24              0.20
 
     Diluted earnings per share available
      to common stockholders                       $0.96             $0.89
 
     Income available to common
      stockholders, before
       gain from sale of investments            $111,966          $107,514
 
      Gain from sale of investments, net
       of income taxes                            36,501            31,331
 
     Net income available to common
      stockholders                              $148,467          $138,845
 
     Average number of shares outstanding    153,529,963 (a)   154,732,190 (a)
 
     Average number of shares outstanding
      - assuming dilution                    155,019,674 (a)   155,913,770 (a)
 
 
     (a) Number of shares has been restated as if the 50% stock dividend
         effective April 9, 2001 had been in effect for all periods presented.
 
                                MAKE YOUR OPINION COUNT -  Click Here
               http://tbutton.prnewswire.com/prn/11690X84662975
 
 

SOURCE Jefferson-Pilot Corporation
    GREENSBORO, N.C., April 30 /PRNewswire/ -- Jefferson-Pilot Corporation
 (NYSE:   JP), parent of the Jefferson Pilot Financial companies and one of the
 nation's leading providers of universal and variable universal life insurance
 and annuities, today reported earnings per share of $0.96 for the first
 quarter of 2001, up eight percent from first-quarter 2000 earnings of $0.89.
 These results represent a record for the first quarter.
     Before realized investment gains, Jefferson Pilot earned $0.72 per share,
 up four percent from $0.69 in the prior-year period.  Operating earnings for
 the first quarter of 2001 were affected by high mortality in Jefferson Pilot's
 Individual Products business segment, and by a decline at Jefferson-Pilot
 Communications Company reflecting the current extremely weak advertising
 environment.
     All per-share results are on a diluted basis and are adjusted for a three-
 for-two stock split that was completed April 9, 2001.
     In the first quarter, Jefferson Pilot's core Individual Products business
 earned $69.5 million, up from $68.3 million in the first quarter of 2000.
 First-quarter sales of individual life insurance, at $36.6 million of new
 annualized premiums, were down from the prior-year quarter in part due to
 general economic conditions and uncertainty surrounding estate tax changes.
 However, we expect several important product and marketing initiatives to have
 a positive impact later this year.  New product introductions include single-
 life and survivorship universal life plans with innovative design and
 flexibility that will allow us to be highly competitive in our key markets.
 We also continue to implement a number of marketing initiatives related to our
 new Premier Partnering strategy, which has generated very positive feedback
 from key producers.
     Annuity and Investment Product segment earnings of $20.7 million for the
 quarter represented a solid performance in line with the first quarter of
 2000.  Earnings benefited from income relating to the cumulative effect of a
 change in accounting for derivatives, and were affected adversely by a decline
 in earnings of Jefferson Pilot Securities Corp. due to weak equity markets.
 Fixed annuity premium receipts increased a strong 25 percent from the year-
 earlier quarter to almost $300 million, and fixed annuity fund balances grew
 six percent to more than $6.5 billion.  Fixed annuities experienced a lower
 lapse rate, reflecting the combined effects of lower interest rates on
 competing investments, increased surrender charge protection on our in-force
 block of business, and internal conservation initiatives.
     Jefferson Pilot's Benefit Partners' non-medical group insurance business
 continued to enjoy synergistic benefits of the combination of Guarantee Life's
 operations with Jefferson Pilot's group business.  Benefit Partners' non-
 medical sales increased 21 percent and expense performance continued to
 improve.  The result was an excellent 26 percent increase in earnings for the
 quarter to $10.4 million from $8.3 million a year earlier.
    Jefferson-Pilot Communications Company experienced a decline in revenues
 and earnings, as slowing business conditions in the national economy adversely
 affected advertising revenues.  Broadcast cash flow slowed to $16.8 million
 from $20.1 million a year ago, while Communications' earnings declined to
 $6.8 million in the quarter from $8.8 million in the first quarter last year,
 reflecting economic conditions that have deteriorated significantly for
 broadcasters since the beginning of the year.  The markets in which we operate
 remain, we believe, some of the most attractive in the nation from a long-term
 growth perspective, notwithstanding the current slowdown.
     Balance sheet quality remains a high priority at Jefferson Pilot.
 Investment grade bonds constitute 94 percent of our bond investments, and the
 average quality of our bonds is high "A".
     Our commercial mortgage portfolio is in excellent condition, with a very
 low delinquency rate.
     Consistent with our longstanding strategy of taking advantage of market
 opportunity, Jefferson Pilot aggressively purchased its stock in the first
 quarter, retiring 2.2 million shares at an average cost of $43.03 per share.
     Commenting on the quarter, Jefferson Pilot CEO David A. Stonecipher
 observed that "Despite the sluggishness of general business activity in the
 first quarter and a modest spike in death claims in our individual life
 insurance business, Jefferson Pilot continues to make good progress on many
 fronts.  We are intensely focused this year on implementing our Premier
 Partnering strategic initiative, an exciting new marketing thrust that we
 believe will accelerate growth markedly in our core individual life business.
 To that end, a number of new products were introduced during the first quarter
 which we believe will have a positive effect on our individual life insurance
 sales beginning in the second half of this year.  Looking farther out, we
 expect Premier Partnering to provide the momentum that will allow Jefferson
 Pilot to remain a growth leader in the industry."
 
     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 offer full lines of individual and
 group life insurance products as well as annuity and investment products.
 Jefferson-Pilot Communications Company owns and operates three network
 television stations and 17 radio stations, and produces and syndicates sports
 programming.  Visit us on the Internet at http://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 affect
 our actual results significantly.  These risks and uncertainties include,
 among others, the risks that Jefferson Pilot might fail to complete
 successfully its Premier Partnering strategy for increasing individual life
 insurance sales.  Other uncertainties that could affect these sales include
 general economic conditions; competitive factors, including pricing pressures,
 technological developments, new product offerings, and the emergence of new
 competitors; interest rate trends and fluctuations; changes in federal and
 state taxes; changes in the regulation of the financial services industry; or
 changes in other laws and regulations.  We undertake no obligation to publicly
 correct or update any forward-looking statements.  Readers are advised to
 consult any further disclosures we make on related subjects in our press
 releases and filings with the SEC; in particular, see the section entitled
 "External Trends and Forward Looking Information," and other sections it may
 reference, in our most recent 10-K report to the SEC, as it may be updated in
 our subsequent 10-Q and 8-K reports.
 
                  Jefferson-Pilot Corporation and Subsidiaries
                           First Quarter 2001 Results
 
                                                 Three Months Ended
                                            Mar 31, 2001      Mar 31, 2000
 
     Basic earnings per share available to
      common stockholders, before gain from
       sale of investments                         $0.73             $0.69
 
     Gain from sale of investments, net of
      income taxes                                  0.24              0.21
 
     Basic earnings per share available to
      common stockholders                          $0.97             $0.90
 
     Diluted earnings per share available
      to common stockholders, before gain
       from sale of investments                    $0.72             $0.69
 
     Gain from sale of investments, net of
      income taxes                                  0.24              0.20
 
     Diluted earnings per share available
      to common stockholders                       $0.96             $0.89
 
     Income available to common
      stockholders, before
       gain from sale of investments            $111,966          $107,514
 
      Gain from sale of investments, net
       of income taxes                            36,501            31,331
 
     Net income available to common
      stockholders                              $148,467          $138,845
 
     Average number of shares outstanding    153,529,963 (a)   154,732,190 (a)
 
     Average number of shares outstanding
      - assuming dilution                    155,019,674 (a)   155,913,770 (a)
 
 
     (a) Number of shares has been restated as if the 50% stock dividend
         effective April 9, 2001 had been in effect for all periods presented.
 
                                MAKE YOUR OPINION COUNT -  Click Here
               http://tbutton.prnewswire.com/prn/11690X84662975
 
 SOURCE  Jefferson-Pilot Corporation