 |
March 27, 2007
GUARDIAN ACHIEVES STRONG EARNINGS IN 2006
Projects Largest Total Dividend Payout to Policyholders in Company's 147-Year History
| For media inquiries, contact:
|
Peter Harris
Manning Selvage & Lee
Tel: 212.468.4346
Fax: 212.468.3654
peter.harris@mslpr.com
|
| Anayo Afolabi
The Guardian Life Insurance Company of America
Tel: 212.598.8329
Fax: 212.919.2790
anayo_afolabi@glic.com
|
New York, March 27, 2007 — The Guardian Life Insurance Company of America (Guardian) today announced strong financial results for 2006. Consolidated results for Guardian and its subsidiaries include growth in operating income before taxes to $393 million, among the highest in the company's history. Guardian's capital grew to $4.3 billion, making 2006 the first year the company's capital has exceeded $4 billion.
"2006 was an outstanding year for Guardian," said Dennis J. Manning, President and Chief Executive Officer of Guardian. "Our track record of growth and innovation has continually driven us to new levels of success throughout our history. We experienced strong business results and continued to build for future profitable growth."
Guardian declared a dividend of $619 million for 2007, the highest total expected payout in the company's 147-year history.
"As a well-run mutual company, Guardian operates completely in the interests of its policyholders, passing any efficiencies in our operations on to them in the form of dividends and lower costs for coverage," said Manning.
Additional financial highlights from consolidated 2006 results include:
 | Total revenue, including premiums and investment income, grew to $9.7 billion. |
|
| Policyholder Surplus grew to $3.5 billion, the highest in company history. Over the last five years, the company's Surplus has grown at an 18% compound annual growth rate. |
|
| The company provided $5.6 billion in benefits and dividends to policyholders in 2006. |
|
| Premiums rose to $7.7 billion in 2006 reflecting an exceptional rate of policies renewed each year and strong growth in both new and in-force premiums. |
|
The Company experienced double-digit sales increases in most of its major businesses.
| Group sales were up 15% over 2005, with worksite sales up 29% over the prior year. |
|
| Individual Disability sales increased +13%. |
|
| Long Term Care sales doubled versus 2005. |
|
| Variable annuity sales were up 26% over 2005, driven by strong sales of a new Guaranteed Minimum Withdrawal Benefit (GMWB) rider. |
|
Whole life sales were flat following a 7% percent increase in 2005. Investments in recruitment and proprietary technology, combined with Guardian's commitment to a career agency distribution system, put Guardian in a strong position to underscore the value of permanent insurance.
In 2006 Guardian had considerable accomplishments in laying the foundation for future success. The Company:
| Acquired a majority interest in RS Investments, which will allow Guardian to offer a more diversified range of funds and provides it with an opportunity to increase the profitability of its asset management business, which can be used to enhance the dividends paid to participating life policyholders. |
|
| Sold its interest in Private Healthcare Systems (PHCS) to MultiPlan, which will provide significant advantages, including greater access to provider networks and more competitive medical products. |
|
| Received ratings outlook changes from "stable" to "positive" from three major ratings agencies — S&P, Fitch, and A.M. Best. |
|
| Continued to make enhancements to The Living Balance SheetSM, a proprietary, state-of-the-art online system that allows Guardian's Financial Representatives and their clients to organize and manage all their finances in one convenient place. |
|
| Launched Guardian AnytimeSM, Group's state-of-the-art plan administration Web portal for brokers, planholders, and employees. |
|
| Introduced innovative products throughout its businesses, including: The Guardian Gold Series, a new generation of life insurance to meet the unique needs of different generations; two new Guaranteed Minimum Withdrawal Benefit (GMWB) rider options for its annuity offerings; and a catastrophic disability benefit rider for its market leading individual disability insurance product, ProVider Plus. |
|
| Experienced a net increase of Financial Representatives that exceeded its 2006 recruitment goals. |
|
Added Manning, "The future belongs to those companies that create their own growth; we are well positioned to do this thanks to our significant strengths, achievements and excellence. We look forward to continued growth as we write the next chapter in our company's 147-year history of serving our policyholders with distinction."
About Guardian
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is one of the largest mutual life insurance companies in the United States. As of December 31, 2006, Guardian and its subsidiaries had $39.5 billion in assets (on a consolidated statutory basis). With more than 5,000 employees and 3,000 financial representatives, as well as more than 80 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses, and their employees with life, disability, health, long-term care, and dental insurance products, and offer 401(k), annuities and other financial products and trust services. More information about Guardian can be obtained at: www.guardianlife.com.
| |
