NFP warns investors of revenue drop

National Financial Partners Corp. warned investors that its total revenue took a dive during the third quarter. The New York-based financial adviser network said its total revenue declined by about 7% during the first two months of the third quarter, compared to the same period in 2007. Same-store revenue also fell around 10%. Meanwhile, operating expenses leapt around 11% during the first two months of the third quarter. Numerous factors put a dent in the company’s revenue, including disruptions in the credit market, as well as continued restrictive underwriting and diligence in the high-net-worth, older age life insurance and life settlement market. Nevertheless, the company said that the largest portion of quarterly revenue and earnings is normally generated in the last month of a quarter — September, in this case — but it’s unclear whether this month’s results will follow that pattern. Economic turmoil, as well as an underwriter’s decision to lengthen its mortality tables, could affect financial results for this month and the future, NFP said in a filing with the SEC. The new Commissioners Standard Ordinary mortality table, which goes into effect for all states Jan. 1, assumes a life expectancy of 120, in comparison to the 100-year-life expectancy for the 1980 mortality table which has been in wide use. Specifically, the company predicts that the change in the mortality table will harm the availability of certain life insurance premium financing programs and the pricing of life settlements until those changes are integrated into its pricing models.