Media Contacts
Catherine A. Huggins, M.B.A., APR
Assistant Vice President and Director of Corporate Communications
513.629.1156
E-mail
José Marques, APR
Media Relations Manager
513.629.1448
E-mail
Mailing Address:
Western & Southern Financial Group
Media Relations
Mail Station 90
400 Broadway Street
Cincinnati, OH 45202
Catherine A. Huggins, M.B.A., APR
Assistant Vice President and Director of Corporate Communications
513.629.1156
José Marques, APR
Media Relations Manager
513.629.1448
Mailing Address:
Western & Southern Financial Group
Media Relations
Mail Station 90
400 Broadway Street
Cincinnati, OH 45202
Financial Highlights
Record Year in 2007
Net Income up 19 Percent
Despite the difficult financial market and credit cycle downturn, Western & Southern Financial Group achieved excellent financial results in 2007 with net income of $365.3 million. This record net income was accompanied by record revenues, including record investment income, and it was a 19.3 percent increase over 2006 net income.
Our operating earnings also reached a record $319.1 million, up almost 14 percent over 2006, as we continued to focus on driving efficiencies and profitable growth into our core business units.
With efficiency and profitability as a focus, we successfully merged the Constellation Funds into our Touchstone family of funds and relocated Capital Analysts’ back-office operations from Radnor, Pa., to Cincinnati. As a result, Touchstone and Capital Analysts contributed to a record $236.6 million in fee revenues in 2007, an increase of 14.9 percent over 2006.
While achieving these double-digit growth and profitability records, we managed expenses to $321.0 million in 2007, or 2.1 percent less than 2006.
Western & Southern’s assets owned, managed and under our care grew 3.2 percent from 2006 to reach $48.5 billion at the end of 2007.
Western & Southern remains among the most highly capitalized, if not the most highly capitalized, in the industry with a GAAP capital-to-asset ratio of 15.1 percent at year-end 2007. This is more than double the 6.2 percent average of the 15 largest publicly traded life insurance companies.
Five-Year Growth
Diversification and Efficiency Trends Continue
Western & Southern Financial Group’s culture of taking a longterm strategic approach to our businesses is evident in our fiveyear growth rates, beginning with our bottom-line profit. Net income reached $365.3 million in 2007 compared to $60.3 million in 2002, a 43.4 percent five-year compound annual growth rate.
Operating earnings also grew at double-digit rates over the period, increasing from $181.5 million in 2002 to $319.1 million in 2007, an 11.9 percent five-year growth rate. This is a result of our focus on profitable growth in all our businesses.
Our primary efficiency measure is operating earnings per full-time equivalent employee. In 2007, this measure reached $135,000, up from $77,900 in 2002 for an 11.6 percent annual growth rate over the period.
In addition to these efficiencies, we continued to diversify our operations. Our non-life insurance fee revenue increased from $105.0 million in 2002 to $236.6 million in 2007, a 17.6 percent compound annual growth rate.
Assets owned, managed and under our care increased at a 10.7 percent annual rate since 2002, growing from $29.2 billion to $48.5 billion at year-end 2007 as our diversification contributed to our growth rates.
During this period of double-digit growth throughout our businesses, we have prudently managed expenses to a 1.3 percent annual growth rate, the result of a centralized shared services organization that provides back-office support to all of our business units.
Record Year in 2007
Net Income up 19 Percent
Despite the difficult financial market and credit cycle downturn, Western & Southern Financial Group achieved excellent financial results in 2007 with net income of $365.3 million. This record net income was accompanied by record revenues, including record investment income, and it was a 19.3 percent increase over 2006 net income.
Our operating earnings also reached a record $319.1 million, up almost 14 percent over 2006, as we continued to focus on driving efficiencies and profitable growth into our core business units.
With efficiency and profitability as a focus, we successfully merged the Constellation Funds into our Touchstone family of funds and relocated Capital Analysts’ back-office operations from Radnor, Pa., to Cincinnati. As a result, Touchstone and Capital Analysts contributed to a record $236.6 million in fee revenues in 2007, an increase of 14.9 percent over 2006.
While achieving these double-digit growth and profitability records, we managed expenses to $321.0 million in 2007, or 2.1 percent less than 2006.
Western & Southern’s assets owned, managed and under our care grew 3.2 percent from 2006 to reach $48.5 billion at the end of 2007.
Western & Southern remains among the most highly capitalized, if not the most highly capitalized, in the industry with a GAAP capital-to-asset ratio of 15.1 percent at year-end 2007. This is more than double the 6.2 percent average of the 15 largest publicly traded life insurance companies.
Five-Year Growth
Diversification and Efficiency Trends Continue
Western & Southern Financial Group’s culture of taking a longterm strategic approach to our businesses is evident in our fiveyear growth rates, beginning with our bottom-line profit. Net income reached $365.3 million in 2007 compared to $60.3 million in 2002, a 43.4 percent five-year compound annual growth rate.
Operating earnings also grew at double-digit rates over the period, increasing from $181.5 million in 2002 to $319.1 million in 2007, an 11.9 percent five-year growth rate. This is a result of our focus on profitable growth in all our businesses.
Our primary efficiency measure is operating earnings per full-time equivalent employee. In 2007, this measure reached $135,000, up from $77,900 in 2002 for an 11.6 percent annual growth rate over the period.
In addition to these efficiencies, we continued to diversify our operations. Our non-life insurance fee revenue increased from $105.0 million in 2002 to $236.6 million in 2007, a 17.6 percent compound annual growth rate.
Assets owned, managed and under our care increased at a 10.7 percent annual rate since 2002, growing from $29.2 billion to $48.5 billion at year-end 2007 as our diversification contributed to our growth rates.
During this period of double-digit growth throughout our businesses, we have prudently managed expenses to a 1.3 percent annual growth rate, the result of a centralized shared services organization that provides back-office support to all of our business units.