UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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: January 27, 2004)
AMERUS GROUP CO.
(Exact Name of Registrant as Specified in its Charter)
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IOWA 001-15166 42-1458424
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(State or Other (Commission (IRS Employer
Jurisdiction of File Number) Identification No.)
Incorporation)
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699 WALNUT STREET 50309-3948
DES MOINES, IOWA
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(Address of principal executive offices) (Zip Code)
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Registrant's telephone number, including area code: (515) 362-3600
ITEM 9. REGULATION FD DISCLOSURE
On January 27, 2004, Roger Brooks, the Chairman and Chief Executive
Officer of AmerUs Group Co. (Company) made the following disclosures at the 2004
Citigroup Smith Barney Financial Services Conference (Conference), which was
also webcast.
The Company estimated that 2003 protection product sales would be $119
million and accumulation product sales would be $1.7 billion. Sales are
presented as annualized premium, which is in accordance with industry practice,
and represent the amount of new business sold during the period. Sales are a
non-GAAP financial measure for an insurance company for which there is no
comparable GAAP financial measure. We use sales to measure the productivity of
our distribution network and for compensation of sales and marketing employees
and agents. Sales are also a leading indicator of future revenue trends.
However, revenues are driven by prior period sales as well as current period
sales, and therefore, a reconciliation of sales to revenues would not be
meaningful or determinable.
The Company also estimated that the midpoint of the published adjusted
net operating income guidance range for 2003 is $147.9 million and projected
that the midpoint of the published adjusted net operating income guidance range
for 2004 is $160.4 million. Adjusted net operating income per share is a
non-GAAP financial measure. Due to the unpredictability of the timing and
recognition of gains and losses, especially items such as credit impairments,
trading gains and losses, FAS 133 adjustments as well as the unpredictable
nature of certain other unusual or non-recurring items that management believes
are not indicative of ongoing operational performance, guidance on GAAP net
income cannot readily be estimated because management has not regularly
projected the foregoing non-recurring items. Accordingly, the Company is unable
to provide guidance with respect to, or a reconciliation of guidance on adjusted
net operating income, to GAAP net income.
The Company has previously disclosed that adjusted net operating income
guidance was estimated to be in the range of $3.70 to $3.80 per share for 2003
and has projected that adjusted net operating income guidance for 2004 will be
in the range of $4.00 to 4.10 per share. For purposes of illustration at the
Conference, the Company referred to the midpoint of 2003 and 2004 adjusted net
operating income guidance, $3.75 and $4.05 per share, respectively. The
Company's average operating EPS growth rate has been approximately 11.3% over
the past five years. The Company's current estimate of its P/E multiple is 8.6
times 2004 operating EPS guidance (based upon recent prices). Adjusted net
operating income per share is a non-GAAP financial measure. Due to the
unpredictability of the timing and recognition of gains and losses, especially
items such as credit impairments, trading sales and losses, FAS 133 adjustments
as well as the unpredictable nature of certain other unusual or non-recurring
items that management believes are not indicative of ongoing operational
performance, guidance on GAAP net income cannot readily be estimated because
management has not regularly projected the foregoing non-recurring items.
Accordingly, the Company is unable to provide guidance with respect to, or a
reconciliation of guidance on adjusted net operating income per share, to GAAP
net income per share.
The Company views adjusted net operating income and adjusted net
operating income per share, non-GAAP financial measures, as important indicators
of financial performance. This
presentation can enhance an investor's understanding of the Company's underlying
profitability and normalized results from operations. Adjusted net operating
income is also used for goal setting, determining employee and management
compensation and evaluating the Company's performance on a comparable basis to
that used by security analysts.
The Company's estimated 2003 operating return on equity is 12% and the
projected operating return on equity for 2004 is approximately 12%. This
calculation is based on adjusted net operating income which is a non-GAAP
financial measure. Due to the unpredictability of the timing and recognition of
gains and losses, especially items such as credit impairments, trading gains and
losses, FAS 133 adjustments as well as the unpredictable nature of certain other
unusual or non-recurring items that management believes are not indicative of
ongoing operational performance, GAAP net income cannot readily be estimated.
Since GAAP net income cannot be readily estimated, the Company is unable to
provide guidance with respect to annualized operating return on equity.
Management of the Company believes that projecting the annualized operating
return on equity assists investors in evaluating the performance of the company.
The Company's current estimate of its P/B multiple is less than 1.1
times the 2003 book value (based on recent prices).
All statements, trend analyses and other information contained in the
following statements relative to markets for products and trends in operations
or financial results, as well as other statements including words such as
"anticipate", "believe", "plan", "estimate", "expect", "intend", and other
similar expressions, constitute forward-looking statements under the Private
Securities Litigation Reform Act of 1995. Factors that may cause actual results
to differ materially from those contemplated by these forward-looking statements
include, among others, the following possibilities (a) general economic
conditions and other factors, including prevailing interest rate levels and
stock market performance, which may affect the Company's ability to sell
products, the market value of investments and the lapse rate and profitability
of policies; (b) the ability to achieve anticipated levels of operational
efficiencies and cost-saving initiatives and to meet cash requirements based
upon projected liquidity sources; (c) customer response to new products,
distribution channels and marketing initiatives; (d) mortality, morbidity, and
other factors which may affect the profitability of insurance products; (e) the
ability to develop and maintain effective risk management policies and
procedures and to maintain adequate reserves for future policy benefits and
claims; (f) changes in the federal income tax laws and regulations which may
affect the relative tax advantages of some products; (g) increasing competition
in the sale of insurance and annuities and the recruitment of sales
representatives; (h) regulatory changes or actions, including those relating to
regulation of insurance products and of insurance companies; (i) ratings and
those subsidiaries by independent rating organizations which the Company
believes are particularly important to the sale of products; (j) the performance
of investment portfolios; (k) the impact of changes in standards of accounting
for derivatives and business combinations, goodwill and other intangibles and
purchase accounting adjustments; (l) the Company's ability to integrate the
business and operations of acquired entities; (m) expected life and annuity
product margins; (n) the impact of anticipated investment transactions; and (o)
unanticipated litigation or regulatory investigations.
There can be no assurance that other factors not currently anticipated
by the Company will not materially and adversely affect results of operations.
You are cautioned not to place undue reliance on any forward-looking statements
made by the Company or on its behalf. Forward-looking statements speak only as
of the date the statement was made. The Company undertakes no obligation to
update or revise any forward-looking statement.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMERUS GROUP CO.
By: /s/ Melinda S. Urion
Melinda S. Urion
Executive Vice President
and Chief Financial Officer
Dated: January 27, 2004