NU Online News Service, Nov. 7, 9:30 a.m. – The MONY Group Inc., New York, reports a net loss of $30.2 million on operating income of $2.8 million for the third quarter.
Contributing to the loss was the company’s acceleration of amortization of deferred policy acquisition costs and increased death benefit reserves. These actions resulted in a cost of $8 million, MONY says.
The company also reported net realized losses on investments of $23.4 million, including a $7.9 million charge for venture capital losses and a $14.5 million reduction in the value of a hotel property.
“The decline in accumulation assets under management led to the acceleration of deferred policy acquisition cost amortization, an increase in guaranteed minimum death benefit reserves and lower fees – all of which affected earnings,” says Michael I. Roth, chairman and CEO of MONY. “However, our life insurance and annuity sales increased, and we experienced favorable mortality in our life insurance business. In addition, retail brokerage revenues increased due to higher fixed income and municipal bond sales and trading activity.”
“While equity market performance is impossible to gauge, we are actively managing our business, adapting to the changing market conditions and we will improve our operating performance,” adds Mr. Roth.