National Financial Partners dips into red ink for first quarter

National Financial Partners Corp. today reported a net loss of $515.8 million, or $12.59 per diluted share, for the first quarter, compared with net income of $8.5 million, or $0.21 per diluted share, in the first quarter of 2008.
MAY 12, 2009
National Financial Partners Corp. today reported a net loss of $515.8 million, or $12.59 per diluted share, for the first quarter, compared with net income of $8.5 million, or $0.21 per diluted share, in the first quarter of 2008. The net loss reflected a $607.3 million pretax impairment of goodwill and intangible assets. “The impairment taken during the quarter reflected the stressed macroeconomic environment and its impact on NFP’s market value and revenue, particularly in the life insurance area,” the New York-based firm said in a statement. Cash earnings for the first quarter totaled $18.1 million, or $0.44 per diluted share, from $24.1 million, or $0.59 per diluted share, in the first quarter of 2008. Revenue decreased 24.2% to $217 million in the first quarter, compared with the year-earlier period, the report said. “While revenue declined somewhat at our benefits firms, the economic environment had a greater impact on our life insurance firms,” Jessica Bibliowicz, chairman, president and chief executive, said in the statement. General and administrative expenses decreased 22.2% to $12.6 million in the quarter due to previous reductions in staff and other expense reductions, the report said.

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