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November 23, 2004
Delphi Financial Comments on Regulatory Inquiries
WILMINGTON, Del., Nov. 22 /PRNewswire-FirstCall/ Monday November 22, 4:15 pm ET-- As part of the ongoing, industry-wide investigations regarding insurance sales practices, the following state regulatory authorities have issued administrative subpoenas or similar requests for information to numerous insurance companies, including insurance subsidiaries of Delphi Financial Group, Inc. : the Illinois Division of Insurance, the New York State Attorney General's Office; and the North Carolina Department of Insurance. Delphi understands that similar inquiries are presently being made by various other regulatory authorities, and anticipates that additional regulatory inquiries may be received by its insurance subsidiaries as the various investigations continue. The Company will fully cooperate with the inquiries it has received to date, as well as any future inquiries of this type.
In connection with, and because it desires to take advantage of, the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, Delphi cautions readers regarding certain forward-looking statements in the foregoing discussion and in any other statement made by, or on behalf of, Delphi, whether in future filings with the Securities and Exchange Commission or otherwise. Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, prospects, outlooks or other developments. Some forward- looking statements may be identified by the use of terms such as "expect," "believe," "anticipate," "outlook," "goal" or other similar expressions. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic, competitive and other uncertainties and contingencies, many of which are beyond Delphi's control and many of which, with respect to future business decisions, are subject to change. Examples of such uncertainties and contingencies include, among other important factors, those affecting the insurance industry generally, such as the economic and interest rate environment, federal and state legislative and regulatory developments, including but not limited to changes in financial services and tax laws and regulations, market pricing and competitive trends relating to insurance products and services, acts of terrorism or war, and the availability and cost of reinsurance, and those relating specifically to Delphi's business, such as the level of its insurance premiums and fee income, the claims experience, persistency and other factors affecting the profitability of its insurance products, the performance of its investment portfolio and changes in Delphi's investment strategy, acquisitions of companies or blocks of business, and ratings by major rating organizations of its insurance subsidiaries. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward- looking statements made by, or on behalf of, Delphi. Delphi disclaims any obligation to update forward-looking information.
Delphi Financial Group, Inc. is an integrated employee benefit services company. Delphi is a leader in managing all aspects of employee absence to enhance the productivity of its clients and provides the related insurance coverages: group life, long-term and short-term disability, excess workers' compensation for self-insured employers, travel accident and dental. Delphi's asset accumulation business emphasizes individual fixed annuity products. Delphi's common stock is listed on the New York Stock Exchange under the symbol DFG and its corporate website address is http://www.delphifin.com.
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A few hours later the following press release was made
Associated Press
Delphi Financial Receives Subpoenas
Monday November 22, 5:48 pm ET
The provider of employee benefits and a variety of insurance products said it plans to cooperate fully with the Illinois Division of Insurance, the New York State Attorney General's Office and the North Carolina Department of Insurance.
Delphi also said it expects similar requests from other regulators as the investigations continue.
Shares closed up 74 cents, or 1.7 percent, at $45.49 on the New York Stock Exchange.
Posted by Tom Troceen