Category Archives: Western & Southern Financial Group

Western & Southern Financial Group – Company View

A statement by John F. Barrett, Chairman, President and Chief Executive Officer of Western & Southern Financial is given below. The statement has been taken from the company’s 2006 annual report.

For the year ended Dec. 31, 2006, we achieved record GAAP financial results with net income of $306.1 million on revenues of $2.69 billion compared to net income of $267.8 million on revenues of $2.44 billion for 2005. This represents a 14 percent increase in net income. Pretax operating earnings of $280.5 million (also a record) were up $50.9 million, or 22 percent, over pretax operating earnings of $229.6 million in 2005.

Full-year combined life insurance premium, annuity and mutual fund sales of $5.4 billion also reached record proportions, as life insurance premium and annuity sales increased 6.6 percent to $2.8 billion while mutual fund sales reached $2.6 billion, up from $1.1 billion the year before.Total assets owned, managed and under our care reached $47 billion (corporate-owned assets totaled $32.2 billion) and GAAP net worth was $5.2 billion – all record year-end highs.

A number of strategic initiatives fueled our strong performance in 2006:

  • The Lafayette Life Insurance Company completed its first full year as a member of the Western & Southern family;
  • We successfully moved Integrity Life Insurance Company from Louisville, Kentucky and integrated it into our Cincinnati operations (Integrity did not miss a beat, enjoying its best year ever);
  • We acquired and consolidated the Constellation Funds Group into Touchstone Funds, pushing total mutual fund assets to $8 billion;
  • Eagle Realty Group opened downtown Cincinnati’s first new office building in 14 years (now substantially rented); and,
  • We commenced negotiations for the sale of Integrated Investment Services, our mutual fund servicing subsidiary, to JPMorgan Chase. The sale was completed during the first part of 2007.

Despite these initiatives, we continued to carefully manage expenses, keeping our five-year compound annual expense growth rate to 3 percent.

From a historical perspective, we have come a long way. From 1888 to 1982, we built a good business in the moderate- and middle-income markets, selling primarily smaller life insurance policies. But, the times changed and so did we.The key transition year for us was 1982 when we radically changed our business model.We stopped selling weekly premium policies and started selling larger universal life policies. Also in that same year, we purchased what is now Columbus Life Insurance Company. These changes were momentous and expanded our already solid customer base to include greater penetration in the middle market and gave us entrée into the upper middle-income and affluent markets.

The incredible changes brought about by technology improvements and lifestyle changes have impacted the markets we serve. In response, we have greatly diversified our product mix, adding investment, income and retirement solutions to our individual portfolio, and we also entered the institutional investment business. We have worked hard to develop a unique culture that permeates all facets of our corporate headquarters. It is defined by hard work; disciplined, sensible decision making; teamwork; top-notch service; and, the continuous upgrading of our businesses. We favor the long-term outlook over the short term, and we are energized by our ever-improving financial and market performance. However, there is little room for ego, politics or complacency. Simply put, we are trying to create outstanding value for our policyholders and clients as well as the ideal place for a long-term career for our associates, who are the key to our success.

In the traditional life insurance world, innovation too often only means new products. We believe innovation means much more, and we will continue to push ourselves to find new and better ways to do more business with more and more clients.

We entered 2007 with a sharpened focus on our core businesses in order to take full advantage of market opportunities, particularly the burgeoning retirement market. As part of this focus, we made several executive management changes effective March 2007. Among those, Lawrence L. Grypp, who has served as president and chief executive officer of Columbus Life and Lafayette Life, is focusing his chief executive officer responsibilities on Lafayette Life while continuing to have responsibility for our affiliate, Capital Analysts Incorporated, in Radnor, Pa. J. J. Miller, CLU, ChFC, FSA, senior vice president who has held several senior positions at Western & Southern since joining us in 1970, has assumed the leadership of Columbus Life as president and chief executive officer.

Western & Southern has grown substantially through a combination of organic growth and acquisitions, the cultivation of small ideas into highly successful businesses, diversification, solid investment performance and strong expense management. We closed 2006 in the best financial condition in our history, positioning us well to weather any economic challenges which we may encounter.

Our impressive financial performance continues to make us one of the 10 highest rated life insurance groups in the world based on our Standard & Poor’s rating. Our forward-thinking perspective positions us well for continued growth as we build this outstanding organization into an even more robust financial services powerhouse.

Western & Southern Financial Group – Locations and Subsidiaries

Head Office
Western & Southern Financial Group
400 Broadway
Cincinnati
Ohio 45202
USA
P:1 513 629 1800
F:1 513 629 1220
http://www.westernsouthern.com

Other Locations and Subsidiaries

Touchstone Securities, Inc.

Integrity Life Insurance Company

221 East Fourth Street

515 West Market Street

Suite 300

8th Floor

Cincinnati

Louisville

Ohio 45202

Kentucky 40202

USA

USA

Todd Investment Advisors, Inc.

Integrated Fund Services, Inc.

101 South Fifth Street

221 East Fourth Street

Suite 3160

Suite 300

Louisville

Cincinnati

Kentucky 40202

Ohio 45202

USA

USA

The Western and Southern Life Insurance

Fort Washington Investment Advisors, Inc.

Company

420 East Fourth Street

400 East Fourth Street

Cincinnati

Cincinnati

Ohio 45202

Ohio 45202

USA

USA

Eagle Realty Group, LLC

IFS Financial Services, Inc.

421 East Fourth Street

221 East Fourth Street

Cincinnati

Suite 300

Ohio 45202

Cincinnati

USA

Ohio 45202

USA

Touchstone Advisors, Inc.

National Integrity Life Insurance Company

221 East Fourth Street

15 Matthews Street

Suite 300

Suite 200

Cincinnati

Goshen

Ohio 45202

New York 10924

USA

USA

Western & Southern Financial Group – Major Products and Services

Western & Southern Financial is a diversified financial services company providing life insurance, retirement planning and investment products and services for consumers and businesses.The group offers a variety of financial services through subsidiary companies. These products and services include:

  • Life insurance
  • Retirement planning
  • Investment products
  • Public and private equity
  • Taxable and tax-free fixed income and cash management
  • Fixed annuities, variable annuities and mutual funds
  • Brokerage services and commercial property management
  • Multi-family management
  • Real estate investment management

Western & Southern Financial Group – Top Competitors

The following companies are the major competitors of Western & Southern Financial Group

  • AEGON N.V.
  • Jefferson-Pilot Corporation
  • The Northwestern Mutual Life Insurance Company
  • Old Republic International Corporation
  • Sky Financial Group, Inc
  • Advest Group, Inc., The
  • BlackRock, Inc.
  • First Banks Inc.
  • Integrity Life Insurance Company
  • Redwood Trust, Inc.
  • Phoenix Companies,

Western & Southern Financial Group – Key Employees

Name

Job Title

Board

John F. Barrett

Chairman, President and Chief Executive Officer

Executive Board

Donald A. Bliss

Director

Non Executive Board

James N. Clark

Director

Non Executive Board

Jo Ann Davidson

Director

Non Executive Board

Lawrence C. Hawkins

Director

Non Executive Board

J. Harold Kotte

Director

Non Executive Board

Eugene P. Ruehlmann

Director

Non Executive Board

Elizabeth A. Smith

Director

Non Executive Board

Jack Twyman

Director

Non Executive Board

George H. Walker

Director

Non Executive Board

Thomas L. Williams

Director

Non Executive Board

William J. Williams

Director

Non Executive Board

Herbert R. Brown

Senior Vice President

Senior Management

Clint D. Gibler

Senior Vice President

Senior Management

Noreen J. Hayes

Senior Vice President

Senior Management

Edward S. Heenan

Senior Vice President

Senior Management

Carroll R. Hutchinson

Senior Vice President

Senior Management

Constance M. Maccarone

Senior Vice President

Senior Management

Nora E. Moushey

Senior Vice President

Senior Management

Robert L. Walker

Senior Vice President

Senior Management

Donald J. Wuebbling

Senior Vice President

Senior Management

J. J. Miller

Senior Vice President

Senior Management

David T. Henderson

Chief Risk Officer

Senior Management

Michael J. Laatsch

Public Relations

Senior Management

Michael R. Moser

Chief Compliance Officer

Senior Management

Douglas Ross

Chief Technology Officer

Senior Management

James J. Vance

Treasurer

Senior Management