Ct Healthmarket via BizWire
08-05-2003, 04:40 AM
NEW YORK--(BUSINESS WIRE)--Aug. 5, 2003--The MONY Group Inc.
(NYSE:MNY) today reported results for the second quarter and first six
months of 2003.
Net income for the quarter ended June 30, 2003 was $20.7 million
or $0.43 per share and included:
-- $3.3 million or $0.07 per share of adjusted operating income;
-- $6.8 million or $0.14 per share of after-tax venture capital
income;
-- $10.6 million or $0.22 per share of after-tax net realized
gains from investments.
For the first six months of 2003, net income was $28.3 million or
$0.60 per share and included:
-- $6.7 million or $0.14 per share of adjusted operating income;
-- $1.6 million or $0.03 per share of after-tax venture capital
income;
-- $20.0 million or $0.43 per share of after-tax net realized
gains from investments.
Reflecting the company's strategic focus on expanding distribution
channels, enhancing product offerings and increasing productivity,
sales increased across each of MONY's business segments. The primary
driver behind higher life and annuity sales during the quarter was
MONY Partners, the company's wholesaling business. Against a backdrop
of more favorable market conditions and increased retail investment
activity, Advest's revenues increased, and MONY's accumulation assets
under management rose to $8.7 billion.
"The strategic actions we have taken to sharpen the focus of our
business units, coupled with a more positive market environment, drove
increased sales across product areas and distribution channels," said
Michael I. Roth, chairman and CEO, The MONY Group. "At the mid-point
of the year, our plan to grow and diversify revenues and improve
profitability is on track. We remain committed to executing our
strategy and building on this success over the remainder of 2003."
Second Quarter and First Half 2002
For the second quarter of 2002, the company reported a net loss of
$11 million or $0.23 per share, which was comprised of:
-- Adjusted operating income of $7.5 million or $0.15 per share,
including interest and litigation fees of $4.5 million or
$0.10 per share related to a dispute on the sale of real
estate in 1999;
-- A net after-tax venture capital loss of $3 million or $0.06
per share;
-- Net after-tax realized losses on investments of $15.5 million
or $0.32 per share.
The company's net income for the first half of 2002 was $3.3
million or $0.07 per share, which includes:
-- Adjusted operating income of $19.4 million or $0.39 per share;
-- Net after-tax venture capital income of $200,000 or $0.01 per
share;
-- Net after-tax realized losses on investments of $16.3 million
or $0.33 per share.
An earnings summary is as follows:
($ millions except share data and per share amount)
Three Months Three Months Six Months Six Months
Ended June 30, Ended June 30, Ended Ended
2003 2002 June 30, June 30,
2003 2002
Net Income (Loss) $20.7 $(11.0) $28.3 $3.3
Net Realized (Gains)
Losses From
Investments (10.6) 15.5 (20.0) 16.3
------ ------ ------ ----
Adjusted Operating
Income Including Net
Results From Venture
Capital Investments 10.1 4.5 8.3 19.6
Net (Income) Loss From
Venture Capital
Investments (6.8) 3.0 (1.6) (0.2)
----- --- ----- -----
Adjusted Operating
Income (1): $3.3 $7.5 (4) $6.7 (3) $19.4 (4)
Per Share Amounts
Net Income (Loss) $0.43 $(0.23) $0.60 $0.07
Net Realized (Gains)
Losses From
Investments (0.22) 0.32 (0.43) 0.33
------ ---- ------ ----
Adjusted Operating
Income Including Net
Results From Venture
Capital Investments 0.21 0.09 0.17 0.40
Net (Income) Loss From
Venture Capital
Investments (0.14) 0.06 (0.03) (0.01)
------ ---- ------ ------
Adjusted Operating
Income (1): $0.07 $0.15 (4) $0.14 (3) $0.39 (4)
Share Data (2):
Weighted-average
Shares
Outstanding 46,961,194 47,994,628 46,961,194 48,003,420
Plus: Incremental
Shares from Assumed
Conversion of
Dilutive Securities 405,988 - 76,787 1,667,333
------- - ------ ---------
Weighted-average
Shares Used in
Per-Share
Calculations 47,367,182 47,994,628 47,037,981 49,670,753
========== ========== ========== ==========
(1) In addition to reporting and measuring the company's results
of operations based on net income/(loss) as determined in accordance
with generally accepted accounting principles (GAAP), the company also
reports what it refers to as "adjusted operating income", which, while
derived from our results in accordance with GAAP, represents a
non-GAAP financial measure. The company defines "adjusted operating
income" as net income/(loss) determined in accordance with GAAP
excluding after-tax net realized gains/(losses) and the net after-tax
results from the company's venture capital investments. These items
will fluctuate from period to period depending on the prevailing
interest rate and economic environment, and are not necessarily
indicative of the overall operating trends in our core operations. The
company also reports "adjusted operating income" including the net
after-tax results from the company's venture capital investments which
is also a non-GAAP financial measure. Both the company and many users
of its financial information use these non-GAAP financial measures to
evaluate the company's operating performance.
(2) 1,597,371 incremental shares from the assumed conversion of
dilutive securities were not included in the computation of per share
amounts for the three-month period ended June 30, 2002 because their
inclusion would be anti-dilutive.
(3) 2003 year-to-date includes a gain from an insurance settlement
from the events of September 11, 2001 of $2.6 million or $0.05 per
share.
(4) 2002 includes interest and litigation fees of $4.5 million or
$0.10 per share and $0.09 per share for the three and six-month
periods, respectively, related to a dispute regarding the sale of real
estate in 1999.
Highlights:
-- Total new life sales for the 2003 second quarter increased 11%
over the comparable year-ago period to $67.8 million. New life
sales during the 2003 first half increased by 23% over the
first half last year to $135.2 million.
-- MONY Life's individual life insurance sales were $24.2 million
in the 2003 second quarter vs. $18.6 million in the 2002
second quarter. On a comparable six-month basis, MONY Life's
individual insurance sales were $42.8 million vs. $37 million.
The increases reflect growth in new life sales through the
brokerage channel, which totaled $10.3 million in the 2003
second quarter (vs. $0.2 million in the second quarter last
year) and $16.6 million in 2003 first half (vs. $3 million
last year).
-- Career agency sales of proprietary and nonproprietary
protection and annuity products increased for the 2003 second
quarter compared to the year-ago period. As part of its plan
to improve the productivity and profitability of its career
system, the company has enhanced its focus on high-performing
financial professionals, and on capturing its career agents'
nonproprietary sales through its MONY Securities Corp. and
MONY Brokerage Inc. subsidiaries. The increase in
non-proprietary sales, as reflected in the higher revenues
reported by these subsidiaries, offset a decline in
proprietary sales.
-- Accumulation assets under management rose to $8.7 billion at
quarter-end, compared to $7.7 billion at the end of 2002. The
increase reflects an improved market environment, slightly
more than $0.9 billion in sales during the first six months of
2003, and net inflows during the second quarter and first
half.
-- Advest's revenues increased by 11% in the 2003 second quarter
over the year-ago quarter, with both its Private Client Group
and institutional fixed-income business experiencing growth
during the period.
-- As of June 30, 2003, book value, excluding accumulated
comprehensive income, was $41.21 per share.
Business Segments
Protection Segment
Through its protection segment, The MONY Group sells a wide range
of life insurance products (including whole, term, universal, variable
universal, survivorship universal, group universal life and interest
sensitive whole life) to higher-income individuals, particularly small
business owners, family builders and pre-retirees as well as
corporations through its U.S. Financial Life Insurance Company (USFL)
and MONY Life Insurance Company subsidiaries.
Total new life sales for the second quarter of 2003 were $67.8
million compared with $61.3 million in the second quarter of 2002. The
growth was driven primarily by higher proprietary life sales through
the brokerage channel, with USFL sales also increasing during the
quarter.
For the first half of 2003, total new life sales were $135.2
million compared with $110 million in the first half of 2002, with
brokerage channel, USFL and corporate-owned life insurance sales
rising during the period.
MONY Life's individual life insurance sales were $24.2 million in
the second quarter of 2003 compared with $18.6 million in the
prior-year quarter. The brokerage channel, including MONY Partners,
generated $10.3 million in new proprietary life sales vs. $0.2 million
in the prior year quarter. The career agency system generated $13.9
million in new proprietary life sales during the second quarter of
2003 compared with $18.4 million in the second quarter of 2002.
Including non-proprietary sales (which are written through MONY
Securities Corp. and MONY Brokerage Inc.), total career agency
protection sales rose slightly on a quarter-over-quarter basis.
For the first six months of 2003, MONY Life's individual life
insurance sales were $42.8 million compared with $37 million in the
prior year period. Brokerage channel sales of MONY Life individual
insurance products rose to $16.6 million from $3 million in the 2002
first half. Career agency sales of MONY Life individual insurance
products were $26.2 million during the first half of 2003 compared
with $34 million in the 2002 first half. Including non-proprietary
sales, total career agency protection sales increased slightly in the
2003 first half vs. the year-ago period.
U.S. Financial Life Insurance Co. (USFL) sales for the second
quarter of 2003 increased to $15.7 million from $14.8 million during
the second quarter of 2002. For the first six months of 2003, USFL
sales were $31.1 million vs. $26.9 million in last year's first half.
Sales of corporate-owned life insurance (COLI) were $27.9 million
during the second quarter of 2003, level with 2002 second quarter
sales. For the first six months of 2003 and 2002, they were $61.3
million and $46.1 million, respectively.
Accumulation Segment
The MONY Group distributes proprietary annuities and retail mutual
funds through its career agency system, member companies and
third-party broker-dealers.
New accumulation assets raised in the 2003 second quarter were
$471 million compared with $467 million during the second quarter of
2002. For the first six months of 2003, accumulation assets raised
were $906 million, compared with $911 million in the prior-year
period.
Accumulation assets under management were $8.7 billion at June 30,
2003, compared with $7.7 billion as of December 31, 2002 and $7.9
billion as of March 31, 2003. The increase in assets resulted
primarily from market appreciation, with net inflows during the
quarter also contributing.
Sales of the company's annuity products were $141 million during
the second quarter of 2003 compared with $132 million for the second
quarter of 2002. Fixed annuity sales were $44 million; the product was
introduced in the second quarter of 2002. Variable annuity sales were
$97 million vs. $132 million in the year-ago period.
MONY Partners generated $14 million and $4 million of proprietary
fixed and variable annuity product sales, respectively, through the
brokerage channel in the current quarter. Career agency sales of
proprietary annuities were $118 million, which included fixed and
variable annuity sales of $27 million and $91 million, respectively.
In the 2002 second quarter, proprietary variable annuity sales by the
career system were $130 million. Including nonproprietary sales, total
career agency sales of annuity products during the quarter were
roughly even with the second quarter of last year.
For the first six months of 2003, total sales of the company's
annuity products were $287 million compared with $232 million. Fixed
annuity sales were $98 million, and variable annuity sales were $189
million, compared with $232 million in the 2002 first half.
Proprietary fixed and variable annuity sales through MONY Partners
were $32 million and $10 million, respectively, in the 2003 first
half, for a total of $42 million. Career agency sales of the company's
annuity products totaled $236 million, and included fixed and variable
annuity sales of $59 million and $177 million, respectively. In the
2002 first half, career agency sales of the company's annuity products
were $230 million. Including nonproprietary sales, total career agency
sales of annuity products increased by about 20% in the 2003 first
half compared to the 2002 first half.
The Enterprise Group of Funds had 2003 second quarter sales of
$330 million compared with $335 million in the second quarter of 2002.
Enterprise mutual fund sales through third-party broker-dealers were
$257 million compared with $254 million while sales through MONY
Life's career system were $57 million compared with $65 million during
the second quarter of 2002.
For the 2003 first half, Enterprise mutual fund sales were $619
million compared with $679 million in the first six months of 2002. Of
these amounts, third-party broker-dealers generated $493 million in
sales, compared with $512 million last year, while sales through MONY
Life's career system were $99 million compared with $139 million
during the second quarter of 2002.
Retail Brokerage & Investment Banking Segment
The Retail Brokerage and Investment Banking segment includes
securities brokerage, trading, investment banking, trust and asset
management services for high-net worth individuals and small to
mid-size business owner clients primarily through MONY's Advest and
MONY Securities Corp. subsidiaries.
The Retail Brokerage and Investment Banking segment had revenues
of $101.4 million for the second quarter of 2003 compared with $91.2
million during the second quarter of 2002.
Revenues at Advest rose to $87.9 million for the 2003 second
quarter from $78.9 million in the year-ago period, with its Private
Client Group benefiting from the market upturn and improved retail
investing environment. Advest's institutional fixed-income business
also generated a higher level of revenues. Revenues for MONY
Securities Corporation were $12.8 million compared with $11.8 million
during the 2002 second quarter.
For the first six months of 2003, the Retail Brokerage and
Investment Banking segment's revenues were $188.8 million vs. $175.6
million in the year-ago period. The increase was attributable to
higher revenues at Advest, which were $165 million vs. $152.2 million
in the year-ago period.
Revenues for MONY Brokerage Inc., which include sales by the
company's career agents of certain nonproprietary protection and other
products, and which are reported in the company's "Other Products"
segment, rose to $5.5 million in the 2003 second quarter from $2.8
million in the year-ago period. For the first six months of 2003, MONY
Brokerage Inc. revenues were $11.2 million, more than double the $4.8
million reported in the 2002 first half.
Business Outlook
"We are encouraged by our success in increasing sales through new
and existing distribution channels, as well as by the market upturn
and improving investor environment, which benefit our accumulation and
retail brokerage businesses," said Mr. Roth. "If the economy continues
to strengthen as expected during the second half of 2003 and the
positive market trends continue, we will be on target to meet our
business objectives for the year."
Forward Looking Statements
This release contains forward-looking statements concerning the
Company's operations, economic performance, prospects and financial
condition. Forward-looking statements include statements expressing
management's expectations, beliefs, estimates, forecasts, projections
and assumptions and include all statements concerning the Company's
operations, economic performance, prospects and financial condition
for 2003 and following years. The Company claims the protection
afforded by the safe harbor for forward-looking statements as set
forth in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to many risks and
uncertainties. Actual results could differ materially from those
anticipated by forward-looking statements due to a number of important
factors including the following: the Company could have further
venture capital losses; the Company could be subjected to further
downgrades by rating agencies of our senior debt ratings and the
claims-paying and financial-strength ratings of our insurance
subsidiaries; the Company could be required to take a goodwill
impairment charge relating to our investment in Advest if the market
deteriorates further; the Company could have to accelerate
amortization of deferred policy acquisition costs if market conditions
continue to deteriorate; the Company could have to write off
investments in certain securities if the issuers' financial condition
deteriorates; recent improvements in the equities markets may not be
sustained into the future; actual death-claim experience could differ
from our mortality assumptions; the Company could have liability from
as-yet-unknown litigation and claims; larger settlements or judgments
than we anticipate could result in pending cases due to unforeseen
developments; and changes in laws, including tax laws, could affect
the demand for the Company's products. The Company does not undertake
to update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise.
Conference Call
The MONY Group Inc. will host a conference call on Tuesday, August
5, 2003 commencing at 9:00 AM (Eastern Standard Time) to discuss its
second quarter 2003 financial results. To participate in the call,
U.S. participants should dial 1-888-889-5602 and Canadian and other
international participants should dial 1-973-339-3086. Participants
should dial into the call 10 minutes early to facilitate a timely
connection. A simultaneous webcast of the call will also be available
on The MONY Group Inc.'s website at www.mony.com/investorrelations.
A replay of the conference call will be available from 12:00 p.m.
(Eastern Standard Time) on Tuesday, August 5, 2003 through midnight
(Eastern Standard Time) on Tuesday, August 12, 2003. Callers from the
United States should dial 1-877-519-4471 and callers from outside the
United States should dial 1-973-341-3080. The playback access code for
replay calls will be 4000477.
This press release, the Company's quarterly financial supplement
and other financial documents may be accessed at
www.mony.com/investorrelations.
About The MONY Group Inc.
The MONY Group Inc. (NYSE: MNY), with approximately $55 billion in
assets under management and administration, is a financial services
firm that manages a portfolio of member companies. These companies
include MONY Life Insurance Company, The Advest Group, Inc.,
Enterprise Capital Management, Matrix Capital Markets Group, Inc.,
Lebenthal, a division of Advest, Inc., and U.S. Financial Life
Insurance Company. These companies manufacture and distribute
protection, asset accumulation and retail brokerage products and
services to individuals, corporations and institutions through
advisory and wholesale distribution channels. Additional company
information is available at www.mony.com.
SUPPLEMENTARY FINANCIAL INFORMATION
To assist interested parties in analyzing the Company's
consolidated financial results attached is the following supplemental
information:
Exhibit I presents certain summary consolidated income statement
data of The MONY Group prepared in accordance with generally accepted
accounting principles for the three-month and six month periods ended
June 30, 2003, and 2002, along with a reconciliation of the company's
consolidated net income determined in accordance with generally
accepted accounting principles to "adjusted operating income" and
"adjusted operating income/(loss) including the net after-tax results
from venture capital investments". Both "adjusted operating income"
and "adjusted operating income/(loss) including the net after-tax
results from venture capital investments" represent non-GAAP financial
measures. Both the company and many users of its financial information
use these non-GAAP measures to evaluate the company's operating
performance.
Exhibit II presents certain summary consolidated balance sheet
data of The MONY Group as of June 30, 2003, including book value per
share excluding accumulated comprehensive income. Book value per share
excluding accumulated comprehensive income is a statistic that many
users of financial information consider when assessing the fair market
value of a company.
Exhibit III presents information regarding new business generated
by the company for the three-month and six month periods ended June
30, 2003 and 2002. Management uses this information to measure its
periodic sales production. The amounts presented with respect to life
insurance sales represent annualized statutory-basis premiums.
Annualized statutory-basis premiums in the Protection Products segment
represent the total premium scheduled to be collected on a policy or
contract over a twelve-month period. Pursuant to the terms of certain
of the policies and contracts issued by the company, premiums and
deposits may be paid or deposited on a monthly, quarterly, or
semi-annual basis. Annualized statutory-basis premium does not apply
to single premium paying business. All premiums received on COLI and
BOLI business and single premium paying policies during the periods
presented are included. Statutory basis premiums are used in lieu of
GAAP basis premiums because, in accordance with statutory accounting
practices, revenues from all classes of long-duration contracts are
measured on the same basis, whereas GAAP provides different revenue
recognition rules for different classes of long-duration contracts.
The amounts presented with respect to annuity and mutual fund sales
represent deposits made by customers during the periods presented.
The information presented in Exhibit III should not be viewed as a
substitute for revenues determined in accordance with GAAP. Revenues
in accordance with GAAP related to product sales are generated from
both current and prior period sales that are in-force during the
reporting period. For protection products GAAP recognizes premium
revenue when due from a policyholder. For accumulation products, GAAP
revenues are a function of fee based charges applied to a
contractholder's account balance. Because of how revenues are
recognized in accordance with GAAP, we do not believe GAAP revenues
are meaningful in assessing the periodic sales production of a life
insurance company and, accordingly, a reconciliation to GAAP revenues
would not be meaningful.
Exhibit I
THE MONY GROUP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
($ in millions, except share data and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Revenues:
Premiums 173.8 169.9 340.6 334.3
Universal life and
investment-type product
policy fees 54.5 52.5 107.5 101.5
Net investment income 201.1 178.8 376.2 366.2
Net realized gains/(Losses)
on investments 15.0 (25.5) 31.6 (27.9)
Group Pension Profits - 7.5 - 15.2
Retail brokerage and
investment banking 108.9 100.7 203.5 193.8
Other income 51.2 29.3 88.2 67.5
----- ----- ----- -----
604.5 513.2 1,147.6 1,050.6
Benefits and Expenses:
Benefits to policyholders 211.2 199.5 407.5 390.2
Interest credited to
policyholders' account
balances 34.0 27.9 67.9 55.8
Amortization of deferred
policy acquisition costs 28.8 38.0 59.8 70.8
Dividends to policyholders 60.4 56.8 122.3 118.3
Other operating costs and
expenses 243.0 207.1 456.2 410.5
----- ----- ----- -----
577.4 529.3 1,113.7 1,045.6
Income from continuing
operations before income
taxes 27.1 (16.1) 33.9 5.0
Income tax expense
(benefit) 8.1 (5.1) 9.6 1.7
----- ----- ----- -----
Income (Loss) from
continuing operations 19.0 (11.0) 24.3 3.3
Discontinued operations:
Income from real estate to
be disposed of, net of
income tax expense of $0.9
million and $2.1 million
for the three and six-month
periods ended
June 30, 2003. 1.7 - 4.0 -
----- ----- ----- -----
Net Income (Loss) 20.7 (11.0) 28.3 3.3
Reconciliation of Net income
to "Adjusted Operating
Income/(Loss)" and to
"Adjusted Operating
Income/(Loss) including net
after-tax results from
venture capital investments"
Net Income (Loss) $ 20.7 $ (11.0) $ 28.3 $ 3.3
Adjustments:
Net realized
(gains)/Losses from
investments
(after tax) (10.6) 15.5 (20.0) 16.3
----------- ----------- ---------- ---------
Adjusted Operating
Income Including Net
After-Tax Results
From Venture Capital
Investments 10.1 4.5 8.3 19.6
Net After-Tax Income Loss
From Venture Capital
Investments (6.8) 3.0 (1.6) (0.2)
----------- ----------- ---------- ---------
Adjusted Operating
Income $ 3.3 $ 7.5 $ 6.7 $ 19.4
=========== =========== ========== =========
Diluted Per Share
Amounts:
Net Income (Loss) $ 0.43 $ (0.23) $ 0.60 $ 0.07
Adjusted Operating Income
(Loss) Including Net
After-Tax Results From
Venture Capital
Investments $ 0.21 $ 0.09 $ 0.17 $ 0.40
Adjusted Operating
Income $ 0.07 $ 0.25 $ 0.14 $ 0.48
Share Data (see Note 1):
Weighted-average
Shares Outstanding 46,961,194 47,994,628 46,961,194 48,003,420
Plus: Incremental
Shares from Assumed
Conversion of Diluted
Securities 405,988 - 76,787 1,667,333
----------- ----------- ----------- ----------
Weighted-average
Shares in Diluted
Per Share
Calculations 47,367,182 47,994,628 47,037,981 49,670,753
=========== =========== =========== ==========
Note 1: 1,597,371 incremental shares from the assumed conversion
of dilutive securities were not included in the computation of per
share amounts for the three-month period ended June 30, 2002 because
their inclusion would be anti-dilutive.
Exhibit II
SUMMARY CONSOLIDATED BALANCE SHEET DATA
($ in millions, except per share amounts)
As of
June 30,
2003
Assets:
Invested assets (including cash and cash
equivalents) $ 13,264.6
Separate account assets 4,414.8
Other assets 2,923.1
---------------------
Total assets $ 20,602.5
=====================
Liabilities:
Policyholders' liabilities $ 11,246.1
Separate account liabilities 4,411.8
Short-term debt 7.0
Long-term debt 876.3
Other liabilities 2,026.3
---------------------
Total liabilities 18,567.5
---------------------
Shareholders' equity:
Equity 1,968.6
Accumulated comprehensive income 66.4
---------------------
Total shareholders' equity 2,035.0
---------------------
Total liabilities and shareholders' equity $ 20,602.5
=====================
Per share amounts:
Diluted book value per share $ 42.61
=====================
Diluted book value per share (Ex. Accumulated
Comprehensive Income) $ 41.21
=====================
Exhibit III
SEGMENT INFORMATION
The following chart presents MONY's protection and accumulation sales
for the quarter as well as revenue generated from the company's retail
brokerage and investment banking segment.
Three-Months Three-Months Six- Six-
Ended Ended Months Ended Months Ended
6/30/03 6/30/02 6/30/03 6/30/02
----------------------------------------------------------------------
New Business
($ millions)
----------------------------------------------------------------------
Protection Products
----------------------------------------------------------------------
Career Agency
System $13.9 $18.4 $26.2 $34.0
----------------------------------------------------------------------
U.S. Financial Life
Insurance Company 15.7 14.8 31.1 26.9
----------------------------------------------------------------------
MONY Partners
Brokerage and Other 10.3 0.2 16.6 3.0
----------------------------------------------------------------------
COLI/BOLI 27.9 27.9 61.3 46.1
---- ---- ---- ----
----------------------------------------------------------------------
Total New Life
Insurance Premiums $67.8 $61.3 $135.2 $110.0
===== ===== ====== ======
----------------------------------------------------------------------
----------------------------------------------------------------------
Accumulation Products
----------------------------------------------------------------------
Variable Annuities(1) $97 $132 $189 $232
----------------------------------------------------------------------
Fixed Annuities(2) 44 98
----------------------------------------------------------------------
Career Agency System -
Mutual Funds 57 65 99 139
----------------------------------------------------------------------
Third Party
Distribution -
Mutual Funds 273 270 520 540
--- --- --- ---
----------------------------------------------------------------------
Total Accumulation $471 $467 $906 $911
==== ==== ==== ====
----------------------------------------------------------------------
----------------------------------------------------------------------
Revenues ($ millions)
----------------------------------------------------------------------
Retail Brokerage &
Investment Banking
----------------------------------------------------------------------
Advest(3) $87.9 $78.9 $165.0 $152.2
----------------------------------------------------------------------
MONY Securities Corp. 12.8 11.8 22.2 22.6
----------------------------------------------------------------------
Other 0.7 0.5 1.6 0.8
--- --- --- ---
----------------------------------------------------------------------
Total Revenue $101.4 $91.2 $188.8 $175.6
====== ===== ====== ======
----------------------------------------------------------------------
----------------------------------------------------------------------
Other Products
----------------------------------------------------------------------
MONY Brokerage
Inc.(4) $5.5 $2.8 $11.2 $4.8
==== ==== ===== ====
----------------------------------------------------------------------
(1) $91 million and $130 million sold through the career agency
system, and $6 million and $2 million sold through the brokerage
channel in the three month periods ended June 30, 2003 and 2002,
respectively. $176 million and $229 million sold through the career
agency system, and $13 million and $3 million sold through the
brokerage channel in the six month periods ended June 30, 2003 and
2002, respectively.
(2) $27 million and $59 million sold through the career agency
system and $17 million and $39 million sold through the brokerage
channel in the three and six-month periods ended June 30, 2003 and
2002, respectively. MONY Life's fixed annuity was introduced in June
2002.
(3) Excludes interest income of $7.5 million, $6.4 million, $14.6
million and $12.8 million for the three and six-month periods ended
June 30, 2003 and 2002, respectively.
(4) MONY Brokerage Inc. includes sales by the company's career
agents of certain nonproprietary protection and other products.
(NYSE:MNY) today reported results for the second quarter and first six
months of 2003.
Net income for the quarter ended June 30, 2003 was $20.7 million
or $0.43 per share and included:
-- $3.3 million or $0.07 per share of adjusted operating income;
-- $6.8 million or $0.14 per share of after-tax venture capital
income;
-- $10.6 million or $0.22 per share of after-tax net realized
gains from investments.
For the first six months of 2003, net income was $28.3 million or
$0.60 per share and included:
-- $6.7 million or $0.14 per share of adjusted operating income;
-- $1.6 million or $0.03 per share of after-tax venture capital
income;
-- $20.0 million or $0.43 per share of after-tax net realized
gains from investments.
Reflecting the company's strategic focus on expanding distribution
channels, enhancing product offerings and increasing productivity,
sales increased across each of MONY's business segments. The primary
driver behind higher life and annuity sales during the quarter was
MONY Partners, the company's wholesaling business. Against a backdrop
of more favorable market conditions and increased retail investment
activity, Advest's revenues increased, and MONY's accumulation assets
under management rose to $8.7 billion.
"The strategic actions we have taken to sharpen the focus of our
business units, coupled with a more positive market environment, drove
increased sales across product areas and distribution channels," said
Michael I. Roth, chairman and CEO, The MONY Group. "At the mid-point
of the year, our plan to grow and diversify revenues and improve
profitability is on track. We remain committed to executing our
strategy and building on this success over the remainder of 2003."
Second Quarter and First Half 2002
For the second quarter of 2002, the company reported a net loss of
$11 million or $0.23 per share, which was comprised of:
-- Adjusted operating income of $7.5 million or $0.15 per share,
including interest and litigation fees of $4.5 million or
$0.10 per share related to a dispute on the sale of real
estate in 1999;
-- A net after-tax venture capital loss of $3 million or $0.06
per share;
-- Net after-tax realized losses on investments of $15.5 million
or $0.32 per share.
The company's net income for the first half of 2002 was $3.3
million or $0.07 per share, which includes:
-- Adjusted operating income of $19.4 million or $0.39 per share;
-- Net after-tax venture capital income of $200,000 or $0.01 per
share;
-- Net after-tax realized losses on investments of $16.3 million
or $0.33 per share.
An earnings summary is as follows:
($ millions except share data and per share amount)
Three Months Three Months Six Months Six Months
Ended June 30, Ended June 30, Ended Ended
2003 2002 June 30, June 30,
2003 2002
Net Income (Loss) $20.7 $(11.0) $28.3 $3.3
Net Realized (Gains)
Losses From
Investments (10.6) 15.5 (20.0) 16.3
------ ------ ------ ----
Adjusted Operating
Income Including Net
Results From Venture
Capital Investments 10.1 4.5 8.3 19.6
Net (Income) Loss From
Venture Capital
Investments (6.8) 3.0 (1.6) (0.2)
----- --- ----- -----
Adjusted Operating
Income (1): $3.3 $7.5 (4) $6.7 (3) $19.4 (4)
Per Share Amounts
Net Income (Loss) $0.43 $(0.23) $0.60 $0.07
Net Realized (Gains)
Losses From
Investments (0.22) 0.32 (0.43) 0.33
------ ---- ------ ----
Adjusted Operating
Income Including Net
Results From Venture
Capital Investments 0.21 0.09 0.17 0.40
Net (Income) Loss From
Venture Capital
Investments (0.14) 0.06 (0.03) (0.01)
------ ---- ------ ------
Adjusted Operating
Income (1): $0.07 $0.15 (4) $0.14 (3) $0.39 (4)
Share Data (2):
Weighted-average
Shares
Outstanding 46,961,194 47,994,628 46,961,194 48,003,420
Plus: Incremental
Shares from Assumed
Conversion of
Dilutive Securities 405,988 - 76,787 1,667,333
------- - ------ ---------
Weighted-average
Shares Used in
Per-Share
Calculations 47,367,182 47,994,628 47,037,981 49,670,753
========== ========== ========== ==========
(1) In addition to reporting and measuring the company's results
of operations based on net income/(loss) as determined in accordance
with generally accepted accounting principles (GAAP), the company also
reports what it refers to as "adjusted operating income", which, while
derived from our results in accordance with GAAP, represents a
non-GAAP financial measure. The company defines "adjusted operating
income" as net income/(loss) determined in accordance with GAAP
excluding after-tax net realized gains/(losses) and the net after-tax
results from the company's venture capital investments. These items
will fluctuate from period to period depending on the prevailing
interest rate and economic environment, and are not necessarily
indicative of the overall operating trends in our core operations. The
company also reports "adjusted operating income" including the net
after-tax results from the company's venture capital investments which
is also a non-GAAP financial measure. Both the company and many users
of its financial information use these non-GAAP financial measures to
evaluate the company's operating performance.
(2) 1,597,371 incremental shares from the assumed conversion of
dilutive securities were not included in the computation of per share
amounts for the three-month period ended June 30, 2002 because their
inclusion would be anti-dilutive.
(3) 2003 year-to-date includes a gain from an insurance settlement
from the events of September 11, 2001 of $2.6 million or $0.05 per
share.
(4) 2002 includes interest and litigation fees of $4.5 million or
$0.10 per share and $0.09 per share for the three and six-month
periods, respectively, related to a dispute regarding the sale of real
estate in 1999.
Highlights:
-- Total new life sales for the 2003 second quarter increased 11%
over the comparable year-ago period to $67.8 million. New life
sales during the 2003 first half increased by 23% over the
first half last year to $135.2 million.
-- MONY Life's individual life insurance sales were $24.2 million
in the 2003 second quarter vs. $18.6 million in the 2002
second quarter. On a comparable six-month basis, MONY Life's
individual insurance sales were $42.8 million vs. $37 million.
The increases reflect growth in new life sales through the
brokerage channel, which totaled $10.3 million in the 2003
second quarter (vs. $0.2 million in the second quarter last
year) and $16.6 million in 2003 first half (vs. $3 million
last year).
-- Career agency sales of proprietary and nonproprietary
protection and annuity products increased for the 2003 second
quarter compared to the year-ago period. As part of its plan
to improve the productivity and profitability of its career
system, the company has enhanced its focus on high-performing
financial professionals, and on capturing its career agents'
nonproprietary sales through its MONY Securities Corp. and
MONY Brokerage Inc. subsidiaries. The increase in
non-proprietary sales, as reflected in the higher revenues
reported by these subsidiaries, offset a decline in
proprietary sales.
-- Accumulation assets under management rose to $8.7 billion at
quarter-end, compared to $7.7 billion at the end of 2002. The
increase reflects an improved market environment, slightly
more than $0.9 billion in sales during the first six months of
2003, and net inflows during the second quarter and first
half.
-- Advest's revenues increased by 11% in the 2003 second quarter
over the year-ago quarter, with both its Private Client Group
and institutional fixed-income business experiencing growth
during the period.
-- As of June 30, 2003, book value, excluding accumulated
comprehensive income, was $41.21 per share.
Business Segments
Protection Segment
Through its protection segment, The MONY Group sells a wide range
of life insurance products (including whole, term, universal, variable
universal, survivorship universal, group universal life and interest
sensitive whole life) to higher-income individuals, particularly small
business owners, family builders and pre-retirees as well as
corporations through its U.S. Financial Life Insurance Company (USFL)
and MONY Life Insurance Company subsidiaries.
Total new life sales for the second quarter of 2003 were $67.8
million compared with $61.3 million in the second quarter of 2002. The
growth was driven primarily by higher proprietary life sales through
the brokerage channel, with USFL sales also increasing during the
quarter.
For the first half of 2003, total new life sales were $135.2
million compared with $110 million in the first half of 2002, with
brokerage channel, USFL and corporate-owned life insurance sales
rising during the period.
MONY Life's individual life insurance sales were $24.2 million in
the second quarter of 2003 compared with $18.6 million in the
prior-year quarter. The brokerage channel, including MONY Partners,
generated $10.3 million in new proprietary life sales vs. $0.2 million
in the prior year quarter. The career agency system generated $13.9
million in new proprietary life sales during the second quarter of
2003 compared with $18.4 million in the second quarter of 2002.
Including non-proprietary sales (which are written through MONY
Securities Corp. and MONY Brokerage Inc.), total career agency
protection sales rose slightly on a quarter-over-quarter basis.
For the first six months of 2003, MONY Life's individual life
insurance sales were $42.8 million compared with $37 million in the
prior year period. Brokerage channel sales of MONY Life individual
insurance products rose to $16.6 million from $3 million in the 2002
first half. Career agency sales of MONY Life individual insurance
products were $26.2 million during the first half of 2003 compared
with $34 million in the 2002 first half. Including non-proprietary
sales, total career agency protection sales increased slightly in the
2003 first half vs. the year-ago period.
U.S. Financial Life Insurance Co. (USFL) sales for the second
quarter of 2003 increased to $15.7 million from $14.8 million during
the second quarter of 2002. For the first six months of 2003, USFL
sales were $31.1 million vs. $26.9 million in last year's first half.
Sales of corporate-owned life insurance (COLI) were $27.9 million
during the second quarter of 2003, level with 2002 second quarter
sales. For the first six months of 2003 and 2002, they were $61.3
million and $46.1 million, respectively.
Accumulation Segment
The MONY Group distributes proprietary annuities and retail mutual
funds through its career agency system, member companies and
third-party broker-dealers.
New accumulation assets raised in the 2003 second quarter were
$471 million compared with $467 million during the second quarter of
2002. For the first six months of 2003, accumulation assets raised
were $906 million, compared with $911 million in the prior-year
period.
Accumulation assets under management were $8.7 billion at June 30,
2003, compared with $7.7 billion as of December 31, 2002 and $7.9
billion as of March 31, 2003. The increase in assets resulted
primarily from market appreciation, with net inflows during the
quarter also contributing.
Sales of the company's annuity products were $141 million during
the second quarter of 2003 compared with $132 million for the second
quarter of 2002. Fixed annuity sales were $44 million; the product was
introduced in the second quarter of 2002. Variable annuity sales were
$97 million vs. $132 million in the year-ago period.
MONY Partners generated $14 million and $4 million of proprietary
fixed and variable annuity product sales, respectively, through the
brokerage channel in the current quarter. Career agency sales of
proprietary annuities were $118 million, which included fixed and
variable annuity sales of $27 million and $91 million, respectively.
In the 2002 second quarter, proprietary variable annuity sales by the
career system were $130 million. Including nonproprietary sales, total
career agency sales of annuity products during the quarter were
roughly even with the second quarter of last year.
For the first six months of 2003, total sales of the company's
annuity products were $287 million compared with $232 million. Fixed
annuity sales were $98 million, and variable annuity sales were $189
million, compared with $232 million in the 2002 first half.
Proprietary fixed and variable annuity sales through MONY Partners
were $32 million and $10 million, respectively, in the 2003 first
half, for a total of $42 million. Career agency sales of the company's
annuity products totaled $236 million, and included fixed and variable
annuity sales of $59 million and $177 million, respectively. In the
2002 first half, career agency sales of the company's annuity products
were $230 million. Including nonproprietary sales, total career agency
sales of annuity products increased by about 20% in the 2003 first
half compared to the 2002 first half.
The Enterprise Group of Funds had 2003 second quarter sales of
$330 million compared with $335 million in the second quarter of 2002.
Enterprise mutual fund sales through third-party broker-dealers were
$257 million compared with $254 million while sales through MONY
Life's career system were $57 million compared with $65 million during
the second quarter of 2002.
For the 2003 first half, Enterprise mutual fund sales were $619
million compared with $679 million in the first six months of 2002. Of
these amounts, third-party broker-dealers generated $493 million in
sales, compared with $512 million last year, while sales through MONY
Life's career system were $99 million compared with $139 million
during the second quarter of 2002.
Retail Brokerage & Investment Banking Segment
The Retail Brokerage and Investment Banking segment includes
securities brokerage, trading, investment banking, trust and asset
management services for high-net worth individuals and small to
mid-size business owner clients primarily through MONY's Advest and
MONY Securities Corp. subsidiaries.
The Retail Brokerage and Investment Banking segment had revenues
of $101.4 million for the second quarter of 2003 compared with $91.2
million during the second quarter of 2002.
Revenues at Advest rose to $87.9 million for the 2003 second
quarter from $78.9 million in the year-ago period, with its Private
Client Group benefiting from the market upturn and improved retail
investing environment. Advest's institutional fixed-income business
also generated a higher level of revenues. Revenues for MONY
Securities Corporation were $12.8 million compared with $11.8 million
during the 2002 second quarter.
For the first six months of 2003, the Retail Brokerage and
Investment Banking segment's revenues were $188.8 million vs. $175.6
million in the year-ago period. The increase was attributable to
higher revenues at Advest, which were $165 million vs. $152.2 million
in the year-ago period.
Revenues for MONY Brokerage Inc., which include sales by the
company's career agents of certain nonproprietary protection and other
products, and which are reported in the company's "Other Products"
segment, rose to $5.5 million in the 2003 second quarter from $2.8
million in the year-ago period. For the first six months of 2003, MONY
Brokerage Inc. revenues were $11.2 million, more than double the $4.8
million reported in the 2002 first half.
Business Outlook
"We are encouraged by our success in increasing sales through new
and existing distribution channels, as well as by the market upturn
and improving investor environment, which benefit our accumulation and
retail brokerage businesses," said Mr. Roth. "If the economy continues
to strengthen as expected during the second half of 2003 and the
positive market trends continue, we will be on target to meet our
business objectives for the year."
Forward Looking Statements
This release contains forward-looking statements concerning the
Company's operations, economic performance, prospects and financial
condition. Forward-looking statements include statements expressing
management's expectations, beliefs, estimates, forecasts, projections
and assumptions and include all statements concerning the Company's
operations, economic performance, prospects and financial condition
for 2003 and following years. The Company claims the protection
afforded by the safe harbor for forward-looking statements as set
forth in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to many risks and
uncertainties. Actual results could differ materially from those
anticipated by forward-looking statements due to a number of important
factors including the following: the Company could have further
venture capital losses; the Company could be subjected to further
downgrades by rating agencies of our senior debt ratings and the
claims-paying and financial-strength ratings of our insurance
subsidiaries; the Company could be required to take a goodwill
impairment charge relating to our investment in Advest if the market
deteriorates further; the Company could have to accelerate
amortization of deferred policy acquisition costs if market conditions
continue to deteriorate; the Company could have to write off
investments in certain securities if the issuers' financial condition
deteriorates; recent improvements in the equities markets may not be
sustained into the future; actual death-claim experience could differ
from our mortality assumptions; the Company could have liability from
as-yet-unknown litigation and claims; larger settlements or judgments
than we anticipate could result in pending cases due to unforeseen
developments; and changes in laws, including tax laws, could affect
the demand for the Company's products. The Company does not undertake
to update or revise any forward-looking statement, whether as a result
of new information, future events, or otherwise.
Conference Call
The MONY Group Inc. will host a conference call on Tuesday, August
5, 2003 commencing at 9:00 AM (Eastern Standard Time) to discuss its
second quarter 2003 financial results. To participate in the call,
U.S. participants should dial 1-888-889-5602 and Canadian and other
international participants should dial 1-973-339-3086. Participants
should dial into the call 10 minutes early to facilitate a timely
connection. A simultaneous webcast of the call will also be available
on The MONY Group Inc.'s website at www.mony.com/investorrelations.
A replay of the conference call will be available from 12:00 p.m.
(Eastern Standard Time) on Tuesday, August 5, 2003 through midnight
(Eastern Standard Time) on Tuesday, August 12, 2003. Callers from the
United States should dial 1-877-519-4471 and callers from outside the
United States should dial 1-973-341-3080. The playback access code for
replay calls will be 4000477.
This press release, the Company's quarterly financial supplement
and other financial documents may be accessed at
www.mony.com/investorrelations.
About The MONY Group Inc.
The MONY Group Inc. (NYSE: MNY), with approximately $55 billion in
assets under management and administration, is a financial services
firm that manages a portfolio of member companies. These companies
include MONY Life Insurance Company, The Advest Group, Inc.,
Enterprise Capital Management, Matrix Capital Markets Group, Inc.,
Lebenthal, a division of Advest, Inc., and U.S. Financial Life
Insurance Company. These companies manufacture and distribute
protection, asset accumulation and retail brokerage products and
services to individuals, corporations and institutions through
advisory and wholesale distribution channels. Additional company
information is available at www.mony.com.
SUPPLEMENTARY FINANCIAL INFORMATION
To assist interested parties in analyzing the Company's
consolidated financial results attached is the following supplemental
information:
Exhibit I presents certain summary consolidated income statement
data of The MONY Group prepared in accordance with generally accepted
accounting principles for the three-month and six month periods ended
June 30, 2003, and 2002, along with a reconciliation of the company's
consolidated net income determined in accordance with generally
accepted accounting principles to "adjusted operating income" and
"adjusted operating income/(loss) including the net after-tax results
from venture capital investments". Both "adjusted operating income"
and "adjusted operating income/(loss) including the net after-tax
results from venture capital investments" represent non-GAAP financial
measures. Both the company and many users of its financial information
use these non-GAAP measures to evaluate the company's operating
performance.
Exhibit II presents certain summary consolidated balance sheet
data of The MONY Group as of June 30, 2003, including book value per
share excluding accumulated comprehensive income. Book value per share
excluding accumulated comprehensive income is a statistic that many
users of financial information consider when assessing the fair market
value of a company.
Exhibit III presents information regarding new business generated
by the company for the three-month and six month periods ended June
30, 2003 and 2002. Management uses this information to measure its
periodic sales production. The amounts presented with respect to life
insurance sales represent annualized statutory-basis premiums.
Annualized statutory-basis premiums in the Protection Products segment
represent the total premium scheduled to be collected on a policy or
contract over a twelve-month period. Pursuant to the terms of certain
of the policies and contracts issued by the company, premiums and
deposits may be paid or deposited on a monthly, quarterly, or
semi-annual basis. Annualized statutory-basis premium does not apply
to single premium paying business. All premiums received on COLI and
BOLI business and single premium paying policies during the periods
presented are included. Statutory basis premiums are used in lieu of
GAAP basis premiums because, in accordance with statutory accounting
practices, revenues from all classes of long-duration contracts are
measured on the same basis, whereas GAAP provides different revenue
recognition rules for different classes of long-duration contracts.
The amounts presented with respect to annuity and mutual fund sales
represent deposits made by customers during the periods presented.
The information presented in Exhibit III should not be viewed as a
substitute for revenues determined in accordance with GAAP. Revenues
in accordance with GAAP related to product sales are generated from
both current and prior period sales that are in-force during the
reporting period. For protection products GAAP recognizes premium
revenue when due from a policyholder. For accumulation products, GAAP
revenues are a function of fee based charges applied to a
contractholder's account balance. Because of how revenues are
recognized in accordance with GAAP, we do not believe GAAP revenues
are meaningful in assessing the periodic sales production of a life
insurance company and, accordingly, a reconciliation to GAAP revenues
would not be meaningful.
Exhibit I
THE MONY GROUP INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
($ in millions, except share data and per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Revenues:
Premiums 173.8 169.9 340.6 334.3
Universal life and
investment-type product
policy fees 54.5 52.5 107.5 101.5
Net investment income 201.1 178.8 376.2 366.2
Net realized gains/(Losses)
on investments 15.0 (25.5) 31.6 (27.9)
Group Pension Profits - 7.5 - 15.2
Retail brokerage and
investment banking 108.9 100.7 203.5 193.8
Other income 51.2 29.3 88.2 67.5
----- ----- ----- -----
604.5 513.2 1,147.6 1,050.6
Benefits and Expenses:
Benefits to policyholders 211.2 199.5 407.5 390.2
Interest credited to
policyholders' account
balances 34.0 27.9 67.9 55.8
Amortization of deferred
policy acquisition costs 28.8 38.0 59.8 70.8
Dividends to policyholders 60.4 56.8 122.3 118.3
Other operating costs and
expenses 243.0 207.1 456.2 410.5
----- ----- ----- -----
577.4 529.3 1,113.7 1,045.6
Income from continuing
operations before income
taxes 27.1 (16.1) 33.9 5.0
Income tax expense
(benefit) 8.1 (5.1) 9.6 1.7
----- ----- ----- -----
Income (Loss) from
continuing operations 19.0 (11.0) 24.3 3.3
Discontinued operations:
Income from real estate to
be disposed of, net of
income tax expense of $0.9
million and $2.1 million
for the three and six-month
periods ended
June 30, 2003. 1.7 - 4.0 -
----- ----- ----- -----
Net Income (Loss) 20.7 (11.0) 28.3 3.3
Reconciliation of Net income
to "Adjusted Operating
Income/(Loss)" and to
"Adjusted Operating
Income/(Loss) including net
after-tax results from
venture capital investments"
Net Income (Loss) $ 20.7 $ (11.0) $ 28.3 $ 3.3
Adjustments:
Net realized
(gains)/Losses from
investments
(after tax) (10.6) 15.5 (20.0) 16.3
----------- ----------- ---------- ---------
Adjusted Operating
Income Including Net
After-Tax Results
From Venture Capital
Investments 10.1 4.5 8.3 19.6
Net After-Tax Income Loss
From Venture Capital
Investments (6.8) 3.0 (1.6) (0.2)
----------- ----------- ---------- ---------
Adjusted Operating
Income $ 3.3 $ 7.5 $ 6.7 $ 19.4
=========== =========== ========== =========
Diluted Per Share
Amounts:
Net Income (Loss) $ 0.43 $ (0.23) $ 0.60 $ 0.07
Adjusted Operating Income
(Loss) Including Net
After-Tax Results From
Venture Capital
Investments $ 0.21 $ 0.09 $ 0.17 $ 0.40
Adjusted Operating
Income $ 0.07 $ 0.25 $ 0.14 $ 0.48
Share Data (see Note 1):
Weighted-average
Shares Outstanding 46,961,194 47,994,628 46,961,194 48,003,420
Plus: Incremental
Shares from Assumed
Conversion of Diluted
Securities 405,988 - 76,787 1,667,333
----------- ----------- ----------- ----------
Weighted-average
Shares in Diluted
Per Share
Calculations 47,367,182 47,994,628 47,037,981 49,670,753
=========== =========== =========== ==========
Note 1: 1,597,371 incremental shares from the assumed conversion
of dilutive securities were not included in the computation of per
share amounts for the three-month period ended June 30, 2002 because
their inclusion would be anti-dilutive.
Exhibit II
SUMMARY CONSOLIDATED BALANCE SHEET DATA
($ in millions, except per share amounts)
As of
June 30,
2003
Assets:
Invested assets (including cash and cash
equivalents) $ 13,264.6
Separate account assets 4,414.8
Other assets 2,923.1
---------------------
Total assets $ 20,602.5
=====================
Liabilities:
Policyholders' liabilities $ 11,246.1
Separate account liabilities 4,411.8
Short-term debt 7.0
Long-term debt 876.3
Other liabilities 2,026.3
---------------------
Total liabilities 18,567.5
---------------------
Shareholders' equity:
Equity 1,968.6
Accumulated comprehensive income 66.4
---------------------
Total shareholders' equity 2,035.0
---------------------
Total liabilities and shareholders' equity $ 20,602.5
=====================
Per share amounts:
Diluted book value per share $ 42.61
=====================
Diluted book value per share (Ex. Accumulated
Comprehensive Income) $ 41.21
=====================
Exhibit III
SEGMENT INFORMATION
The following chart presents MONY's protection and accumulation sales
for the quarter as well as revenue generated from the company's retail
brokerage and investment banking segment.
Three-Months Three-Months Six- Six-
Ended Ended Months Ended Months Ended
6/30/03 6/30/02 6/30/03 6/30/02
----------------------------------------------------------------------
New Business
($ millions)
----------------------------------------------------------------------
Protection Products
----------------------------------------------------------------------
Career Agency
System $13.9 $18.4 $26.2 $34.0
----------------------------------------------------------------------
U.S. Financial Life
Insurance Company 15.7 14.8 31.1 26.9
----------------------------------------------------------------------
MONY Partners
Brokerage and Other 10.3 0.2 16.6 3.0
----------------------------------------------------------------------
COLI/BOLI 27.9 27.9 61.3 46.1
---- ---- ---- ----
----------------------------------------------------------------------
Total New Life
Insurance Premiums $67.8 $61.3 $135.2 $110.0
===== ===== ====== ======
----------------------------------------------------------------------
----------------------------------------------------------------------
Accumulation Products
----------------------------------------------------------------------
Variable Annuities(1) $97 $132 $189 $232
----------------------------------------------------------------------
Fixed Annuities(2) 44 98
----------------------------------------------------------------------
Career Agency System -
Mutual Funds 57 65 99 139
----------------------------------------------------------------------
Third Party
Distribution -
Mutual Funds 273 270 520 540
--- --- --- ---
----------------------------------------------------------------------
Total Accumulation $471 $467 $906 $911
==== ==== ==== ====
----------------------------------------------------------------------
----------------------------------------------------------------------
Revenues ($ millions)
----------------------------------------------------------------------
Retail Brokerage &
Investment Banking
----------------------------------------------------------------------
Advest(3) $87.9 $78.9 $165.0 $152.2
----------------------------------------------------------------------
MONY Securities Corp. 12.8 11.8 22.2 22.6
----------------------------------------------------------------------
Other 0.7 0.5 1.6 0.8
--- --- --- ---
----------------------------------------------------------------------
Total Revenue $101.4 $91.2 $188.8 $175.6
====== ===== ====== ======
----------------------------------------------------------------------
----------------------------------------------------------------------
Other Products
----------------------------------------------------------------------
MONY Brokerage
Inc.(4) $5.5 $2.8 $11.2 $4.8
==== ==== ===== ====
----------------------------------------------------------------------
(1) $91 million and $130 million sold through the career agency
system, and $6 million and $2 million sold through the brokerage
channel in the three month periods ended June 30, 2003 and 2002,
respectively. $176 million and $229 million sold through the career
agency system, and $13 million and $3 million sold through the
brokerage channel in the six month periods ended June 30, 2003 and
2002, respectively.
(2) $27 million and $59 million sold through the career agency
system and $17 million and $39 million sold through the brokerage
channel in the three and six-month periods ended June 30, 2003 and
2002, respectively. MONY Life's fixed annuity was introduced in June
2002.
(3) Excludes interest income of $7.5 million, $6.4 million, $14.6
million and $12.8 million for the three and six-month periods ended
June 30, 2003 and 2002, respectively.
(4) MONY Brokerage Inc. includes sales by the company's career
agents of certain nonproprietary protection and other products.
