JP Jupai Holdings Limited

Jefferson Pilot Reports 14 Percent Increase in Third-Quarter Earnings Per Share Before Realized Investment Gains, 9 Percent Increase in Net Income Per Share GREENSBORO, N.C., Oct. 27 /PRNewswire/ -- Jefferson-Pilot Corporation , 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 results for the third quarter of 2003. Jefferson Pilot earned $0.91 per share before realized investment gains in the quarter, up 14 percent from third-quarter 2002 earnings before realized gains of $0.80. Net income per share for the third quarter of 2003 increased 9 percent to $0.88, including net realized investment losses of $0.03 per share, versus net income per share of $0.81 in the third quarter of 2002, including net realized investment gains of $0.01. For the first nine months of 2003, Jefferson Pilot's earnings before realized investment gains increased 11 percent to $2.64 per share from $2.38 per share for the first three quarters of 2002. 2003 year-to-date net income per share including realized investment losses of $0.02 per share was $2.62, versus $2.57 including realized investment gains of $0.19 for the same period last year. In addition to net income, the company considers earnings before realized investment gains and losses (or "reportable segment results"), a non-GAAP financial measure, to be an important indicator of financial performance. We believe that the combined presentation and discussion of earnings before realized investment gains and losses, together with net income, provides relevant and useful information. Earnings before realized investment gains and losses differs from net income in that it excludes net after-tax realized investment gains and losses. All per-share results are on a diluted basis. Jefferson Pilot's results for the third quarter reflected good asset growth, continuing robust profitability, and improving investment performance. Stockholders' equity per share grew 9 percent to $27.00 from $24.79 at year- end 2002. Because of its strong profitability and capital resources, Jefferson Pilot was able to continue buying its common stock, retiring one million shares in the third quarter. Earnings from Jefferson Pilot's Individual Products business increased 6 percent in the third quarter to $78.6 million from $73.9 million in the third quarter of 2002. Year to date, Individual Product earnings were up 5 percent to $228.9 million from $218.4 million in the first nine months of 2002. Year to date, individual market life insurance sales are up 8%, demonstrating the continuing success of the Premier Partnering strategy. Third quarter sales were off from the prior year, in part reflecting a lag in paid sales caused by new universal life product introductions. The new and comprehensive series of UL products -- two in the market currently and the last to be issued in early November -- are responsive to regulatory requirements and shifting consumer preferences, and will position Jefferson Pilot competitively across a broad range of needs. Earnings from the Annuity and Investment Products segment increased 5 percent in the quarter to $20.0 million from $18.9 million a year earlier. Year to date, segment earnings were also up 5 percent to $62.7 million from $59.6 million for the comparable period of 2002. Fixed annuity fund balance growth was solid in the quarter, rising 7 percent to $8.4 billion from $7.9 billion a year earlier. Third-quarter fixed annuity sales of $187.8 million, while below third-quarter 2002 sales, showed solid growth compared to the second quarter of 2003, reflecting good market acceptance of Jefferson Pilot's new equity indexed products. The Benefit Partners group insurance segment earned $10.0 million in the third quarter, 9 percent above third-quarter results last year. Benefit Partners' earnings for the quarter were reduced by a $2.3 million reserve charge related to a closed block of medical insurance. Year to date, Benefit Partners' earnings totaled $34.5 million, including the medical reserve, versus $34.7 million for the first nine months of 2002. Benefit Partners' results reflected solid fundamentals in dental, long-term and short-term disability results, and modest improvement in group life results. Group life loss ratios improved in the third quarter from the first half of the year, reflecting adjustments of policy terms and underwriting in the segments of the life business where loss ratios have been somewhat higher then expected. Year to date, total sales are up 16 %, while sales were flat in the third quarter. Third quarter sales results are expected to compare favorably to industry results. Jefferson-Pilot Communications' third-quarter results were excellent, with earnings increasing 17 percent to $11.4 million from $9.8 million in the third quarter of 2002. Nine-month Communications earnings grew 12 percent to $30.0 million from $26.8 million. Broadcast cash flow for the quarter grew 14 percent to $23.6 million from $20.6 million in the year-earlier quarter, and increased 8 percent to $62.5 million from $57.8 million for the first nine months. The Corporate and Other segment benefited in the quarter from higher income from equity investments and lower interest expense. Third-quarter earnings before realized investment gains and losses in the segment increased to $10.0 million from $4.5 million in the third quarter last year. Realized net investment losses for the quarter totaled $3.9 million, reflecting $14.3 million of net realized investment losses and a $10.4 DAC offset. Bond write-downs were dramatically lower than in the prior-year quarter, a result of continuing improvement in the corporate credit environment as well as proactive portfolio management. Total segment earnings were $6.1 million for the quarter, compared to $7.0 million for the third quarter a year ago. For the nine months, segment earnings before realized investment gains and losses were $22.3 million, versus $17.0 million last year, and total segment earnings amounted to $19.2 million versus $44.1 million. During the third quarter, Jefferson Pilot bought 1,000,000 of its shares in the open market for a total investment of $43.7 million, bringing year-to- date purchases to a total of 2,500,000 shares at a cost of $102.3 million. Commenting on the quarter, Jefferson Pilot CEO David A. Stonecipher said "Jefferson Pilot produced excellent results in the third quarter, with earnings increasing in each of our business segments. Premier Partnering is continuing to strengthen our individual life insurance business and to build our key distribution channels. Our Benefit Partners business showed progress. Communications' earnings not only were excellent but also exceeded broadcasting industry norms, as our properties have continued to excel competitively and increase their market share. Throughout our operations, our proven ability to execute our business plans as efficiently as possible is a compelling competitive advantage, as is Jefferson Pilot's strong balance sheet and financial flexibility. And, while we strive to build each of our businesses aggressively, we always remain vigilant about profitability -- as we demonstrated again this quarter -- with a view toward maintaining Jefferson Pilot's long and dependable record of performance for shareholders." 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 known as Jefferson Pilot Financial, 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. Additional information on Jefferson-Pilot can be found at http://www.jpfinancial.com/. In this release, the terms "operating earnings," "earnings," "segment earnings," "earned," and "earnings before realized investment gains or losses," refer to all elements of net income available to common stockholders except realized gains or losses on sales, write-downs, or impairments of investments ("realized investment gains or losses"). Realized investment gains or losses, as defined, are net of related income taxes, and are reported in the Corporate and Other segment. 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, general economic conditions, the impact on the economy of any further terrorist activities or any U.S. military engagements, and interest rate levels, changes and fluctuations, all of which can impact our sales, investments, and earnings; competitive factors, including pricing pressures, technological developments, new product offerings, and the emergence of new competitors; changes in federal and state taxes; changes in the regulation of the financial services industry; or changes in other laws and regulations and their impact. 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 2003 Report Three Months Ended Nine Months Ended Sept 30, 2003 Sept 30, 2002 Sept 30, 2003 Sept 30, 2002 Basic earnings per share available to common stockholders, before gains (losses) from sale of investments $ 0.92 $ 0.81 $ 2.66 $ 2.40 Gains (losses) from sale of investments, net of income taxes (0.03) 0.01 (0.02) 0.19 Basic earnings per share available to common stockholders $ 0.89 $ 0.82 $ 2.64 $ 2.59 Diluted earnings per share available to common stockholders, before gains (losses) from sale of investments $ 0.91 $ 0.80 $ 2.64 $ 2.38 Gains (losses) from sale of investments, net of income taxes (0.03) 0.01 (0.02) 0.19 Diluted earnings per share available to common stockholders $ 0.88 $ 0.81 $ 2.62 $ 2.57 (Dollars in thousands) Income available to common stockholders, before gains (losses) from sale of investments $129,938 $116,308 $378,402 $356,445 Gains (losses) from sale of investments, net of income taxes (3,862) 2,448 (3,112) 27,156 Net income available to common stockholders $126,076 $118,756 $375,290 $383,601 Average number of shares outstanding 141,365,238 144,641,968 142,063,945 148,017,421 Average number of shares outstanding - assuming dilution 142,522,449 145,822,346 143,074,780 149,533,658 DATASOURCE: Jefferson-Pilot Corporation CONTACT: John T. Still, III of Jefferson-Pilot Corporation, +1-336-691-3382 Web site: http://www.jpfinancial.com/

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