0000950109-01-504365.txt : 20011026
0000950109-01-504365.hdr.sgml : 20011026
ACCESSION NUMBER: 0000950109-01-504365
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20011018
ITEM INFORMATION: Other events
ITEM INFORMATION: Financial statements and exhibits
FILED AS OF DATE: 20011018
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MONY GROUP INC
CENTRAL INDEX KEY: 0001069822
STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311]
IRS NUMBER: 133976138
STATE OF INCORPORATION: DE
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-14603
FILM NUMBER: 1761426
BUSINESS ADDRESS:
STREET 1: 1740 BROADWAY
CITY: NEW YORK
STATE: NY
ZIP: 10019
BUSINESS PHONE: 2127082000
8-K
1
d8k.txt
FORM 8-K
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of Earliest Event Reported) - October 18, 2001
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THE MONY GROUP INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-14603 13-3976138
(State or other jurisdiction of (Commission File Number) (IRS Employer
Incorporation) Identification No.)
1740 Broadway 10019
New York, New York (Zip Code)
(Address of principal executive offices)
(212) 708-2000
(Registrant's telephone number, including area code)
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N/A
(Former name or address, if changed since last report)
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Item 5. Other Events.
On October 18, 2001, The MONY Group Inc. issued a News Release. A copy of
the News Release is filed herewith as Exhibit 99.1 and is incorporated in this
Item 5 by reference thereto.
Item 7. Financial Statements and Exhibits.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
99.1 News Release of The MONY Group Inc., dated October 18, 2001.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, The
MONY Group Inc. has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE MONY GROUP INC.
By: /s/ Richard Daddario
--------------------------------
Richard Daddario
Executive Vice President and
Chief Financial Officer
Date: October 18, 2001
Exhibit Index
99.1 News Release of The MONY Group Inc., dated October 18, 2001.
EX-99.1
3
dex991.txt
NEWS RELEASE OF THE MONY GROUP INC.
Exhibit 99.1
[LOGO] THE MONY GROUP The MONY Group Inc. News Release
1740 Broadway MEDIA CONTACTS:
New York, NY 10019 Doug Myers 212 708 2472
212 708 2472 Christopher Breslin 212 708 2435
212 708 2399 Fax INVESTOR CONTACT:
Jay Davis 212 708 2917
The MONY Group Revises Outlook for Third and Fourth Quarters;
Company Continues to Implement Reorganization and Profit Enhancement Plans
NEW YORK -- October 18, 2001 - The MONY Group Inc. (NYSE:MNY) today stated that
continuing difficult market conditions have had a negative impact on its retail
brokerage results, assets under management and the performance of the company's
venture capital portfolio. As a result, the company expects operating income
(excluding venture capital income) for the third quarter of 2001 to be within a
range of $0.05 - $0.08 per share. The company expects to report an operating
loss of approximately $0.12 - $0.15 per share including an estimated $0.20 per
share loss from the company's venture capital portfolio, which reflects the
decline in value of equity assets in the portfolio.
"Weakness in the economy, the sharp decline in the equity markets and the events
of September 11th combined to reduce our profitability during the third quarter.
We experienced slightly higher mortality, reduced trading volume, and a lower
level of assets under management," said Michael I. Roth, chairman and CEO, The
MONY Group. "During the quarter, however, we saw improvement in life insurance
sales through our career agency system and U.S. Financial Life, and our
accumulation business experienced modest net inflows."
MONY Reorganization
The company said that it is on target to complete the strategic initiatives
outlined earlier this year and achieve the previously announced cost savings of
$35 million. These initiatives are designed to improve the company's overall
profitability by enhancing operating efficiency, generating new revenue
opportunities and more effectively allocating resources and capital.
The company's plan includes the outsourcing of the back office operations of its
Advest subsidiary, which will be effective early in 2002 and will result in
annualized savings of $12 million. In addition, the company is reorganizing MONY
Life Insurance Company, its principal insurance subsidiary, and will discontinue
certain non-core operations. Combined, these measures will result in the
elimination of approximately 10 percent of the company's workforce, and support
the company's overall objective to realize its previously announced expense
savings in 2002.
This reorganization allows the company to better align activities to support
profitability goals and differentiate the company in the marketplace. MONY life
insurance operations are reorganized into manufacturing and distribution
business units that will operate as individual profit centers. The company
expects the new organization to be fully functional on January 2, 2002.
The manufacturing units will produce MONY life insurance products. By operating
as a separate entity, MONY's manufacturing business units will be able to expand
product offerings to the company's distribution unit as well as improve
time-to-market of new products. The units and their business leaders are:
. Life Insurance, which will be headed by Evelyn L. Peos, FSA. Peos has been
Vice President of Product Development for MONY Life since 1992, having
joined MONY in 1978.
. Annuities, which will be headed by Richard E. Connors, CLU. Connors has been
responsible for the marketing organization of MONY Life Insurance Company
since 1994. He joined MONY in 1988.
. Closed Block (which will service pre-demutualization life insurance
business), which will be headed by Michael Slipowitz, FSA. Slipowitz joined
MONY in 1980 and most recently served as vice president - financial
actuarial.
Distribution includes retail units comprised of the company's career agency
system and its network of CPAs and accountants, and wholesale units distributing
products through a variety of channels, such as brokerage general agents and
broker/dealers. Steven G. Orluck, who joined the company in 1998 after 24 years
with Metropolitan Life Insurance Company, will head distribution.
Fourth Quarter 2001 Outlook
MONY anticipates that it will take a one-time, after-tax charge of approximately
$2.00 per share in the fourth quarter. Book value, which was $ 42.55 as of June
30, 2001, will be reduced by the after tax charge. This charge includes
severance and compensation for affected employees, discontinued real estate
leases, and certain other charges, all in connection with the reorganization. It
also anticipates the inclusion of other charges that may result from the
uncertain market conditions.
The company said that the substantial decline in equity prices since its 2001
second quarter conference call in early August will result in lower revenues and
profitability for its
accumulation and brokerage businesses than anticipated at that time. Based on
current market conditions, the company believes its operating earnings excluding
venture capital income for the 2001 fourth quarter will be within a range of
$0.10 - $0.15 per share. This outlook reflects the lower level of assets under
management and reduced trading volumes as of the end of the third quarter.
"Our fourth quarter expectations reflect a difficult market environment," added
Roth. "However, we will begin to see the benefits of our reorganization efforts
in 2002. Should market conditions strengthen beyond current levels, we would
experience stronger results from our accumulation and retail brokerage segments
as a result of increased trading volumes and higher values of our assets under
management."
Earnings Release and Conference Call
MONY will provide further comments on its earnings and restructuring, as well as
its outlook for 2002, when the company issues its third quarter 2001 earnings
release on November 8. A conference call for investors will be held at 9:00 a.m.
(EST) on that day. A live audio webcast of the call will be available through
the investor relations site of www.mony.com.
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Forward Looking Statements
This release contains "forward looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, including all statements
relating to MONY's expected results for 2001 and 2002, and the expected savings.
There are a number of uncertainties and risks that could cause actual results to
differ materially from our expectations, including those described in the
company's filings with the Securities and Exchange Commission. Among other
things, movements in the equity markets could affect investment results, trading
volume, the fees earned from assets under management and the demand for variable
products; actual death claims experience could differ from our mortality
assumptions, and MONY may realize savings that are more or less than
expected, as the company's action plans are finalized. The company undertakes no
obligation to update or revise any forward-looking statement, whether as a
result of new information, future events, or otherwise.
About the MONY Group
The MONY Group Inc. (NYSE:MNY), with $55 billion in assets under management and
administration, provides life insurance, annuities, mutual funds, brokerage,
asset management, business & estate planning, trust and investment banking
products and services to individual and institutional clients through several
member companies. The MONY Group focuses primarily on offering customized
financial solutions through multiple distribution channels, including a career
agency sales force, brokerage general agencies, financial advisors, brokers, and
other complementary channels. The MONY Group's (www.mony.com) member companies
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include The Advest Group, Inc., MONY Life Insurance Company, Matrix Capital
Markets Group, Enterprise Capital Management, Inc., U.S. Financial Life
Insurance Company, MONY Securities Corporation and Trusted Securities Advisors
Corp.