MLP Maintains Robust Growth Path in Third Quarter.

Business Editors

HEIDELBERG, Germany--(BUSINESS WIRE)--Nov. 15, 2002

MLP:

- Total Revenues Increase Up 14 Percent in Q3

- Increase in Number of Clients for Q3 to 495,000

- Earnings Before Taxes (EBT) for 2002 Considerably Higher Than Eur 100 Million

- Operating Profit Additionally Burdened by General Conditions

In the 3rd quarter of 2002 MLP withstood the weak economic environment and external criticism and continued to grow. MLP chief executive officer Bernhard Termuhlen said, "We have been able to sustain our growth path despite the difficult environment in the third quarter."

MLP relevant financial indicators - revenues, clients, business volume and financial consultants - have shown a stable development. MLP has increased both its revenues and market share in the segments consultation and sales, as well as non-life and life insurance. "This shows the enormous robustness and success of our business model ", emphasises Termuhlen. "Even in the current situation we continue to build upon our position as the leading private finance group for graduates and sophisticated private clients in Europe."

Robust organic growth in the 3rd quarter

In contrast to the general market trend MLP reported an increase of 14 percent in total revenues for the 3rd quarter of EUR 246.5 million (2001: 215.6 million). Interest earnings from banking business increased strongly by 29 percent to EUR 4.5 million (2001: EUR 3.5 million) as did the insurance premiums with 23 percent to EUR 127.6 million (2001: EUR 104.2 million). The success of MLP Finanzdienstleistungen AG (MLP's consulting and broker division) is reflected in its sales revenues that have risen by 26 percent to EUR 81.6 million (2001: 64.8 million). From an overall group perspective, sales revenues rose by five percent under-proportionately as a result of consolidation effects and lower revenues in the banking and asset management segment.

As expected, pre-tax profit was lower than for the same quarter in 2001 totaling EUR 7.7 million in comparison with EUR 15.3 million last year.

Total revenues increase by 15 percent in nine-month period

MLP increased its total revenues within the first nine months by 15 percent to EUR 752.4 million. Growth was driven largely by the insurance premiums (EUR 373.5 million) with an increase of 27 percent and interest income from banking business which rose by 39 percent to EUR 13.1 million. Group profit totalled EUR 60.8 million in comparison with EUR 69.0 million for the same period last year. The DVFA earnings per share declined for the first nine months from 44 cent to 36 cent. This was caused mainly by the fact that the number of shares was increased to 108.6 million in comparison with last year's figure of 79.2 million.

New business on target

Developments in this unusually difficult 3rd quarter for MLP once again underline the stability of the MLP business model. The group still reports successfull growth rates of 23 percent in the 3rd quarter for insurance premiums and 26 percent for unconsolidated broker revenues.

"The decision to focus on the existing client base in the second and third quarter has been proven correct," says Termuhlen. "The figures proof the unrestricted faith of our clients in MLP." The customer base grew to 495,000 with 9,000 new clients in the 3rd quarter.

Continued high investments

This positive development reinforces MLP in its decision to continue focussing strongly upon investments for the future. Investments after the first nine months of the financial year 2002 totalled EUR 45.4 million (2001: EUR 34.0 million). They were composed of EUR 20.6 million (2001: EUR 11.5 million) for the expansion of the IT infrastructure and of EUR 24.8 million (2001: EUR 22.5 million) for group infrastructure. The number of branch offices increased in comparison with last year from 310 to 390.

Number of consultants grows by 22 percent

The number of MLP consultants also increased considerably in the 3rd quarter to 2,971 as per 30th September (2001: 2,442). This represents an increase of 22 percent over 2001. At the end of September MLP employed 1,631 fulltime staff (2001: 1,371). "We lay the path for MLP's future with these investments on the one hand and on the other hand by building up the MLP staff", says Bernhard Termuhlen.

General conditions burden business at year end

Earnings before taxes (EBT) for 2002 will considerably exceed EUR 100 million including proceeds from the sale of the first slice of the 50 percent stake in MLP-Lebensversicherung AG, Austria.

The continuing weakness of capital markets, the planned changes in matters of taxation and social security contributions in Germany as well as the public discussion about the Riester pension have burdened the general conditions traditionally leading to a strong business at year end. In light of this background an operating profit of EUR 100 million seems quite difficult to reach. From today's point of view however, the 4th quarter will contribute a considerable part to the operating profit for the full year 2002.

Confidence for the future

MLP again expects to see clear double-figure growth rates for the coming years. These will of course be subject to influences from the economic environment. The inherent necessity of increased private pension provisions are congenial for MLP's unique comprehensive Personal Finance Management, the high level of consultant competence as well as the individually tailored financial concepts.

Overview of major financial indicators

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                         Q3/02    Q3/01    %         9         9
                                          Change    Months     Months
                                                    /02        /01
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Total revenues
(T Euro)                246.503  215.645   14.3    752.355     654.508

 of these, sales
  revenues               62,410   59.471    4.9    210.554     193.735

 of these, interest
  earnings from
  banking business        4,520    3.509   28.8     13.121       9.467

 of these, insurance
  premiums              127,590  104.152   22.5    373.546     293.095

 of these, income from
  outward insurance
  business               50.109   46,590    7.6    135.642     141.101

 of these, other
  operating income        1.874    1.924   -2.6     19.494      17.109

Pre-tax profit
 (T Euro)                 7.663   15.253  -49.8     60.792      69.007

DVFA-result per share
 (Euro)                    0.05     0.06  -16.7       0.36        0.44

Number of clients                                  495,000     434,000

Consultants                                          2.971       2.442

Branch offices                                         390         310
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Internet: www.mlp.de