MLP AG adjusts its forecast for the financial year 2013 to more difficult market conditions

Based on the preliminary key figures for the first nine months of 2013 and on business development in the first few weeks of the fourth quarter, MLP is revising its expectations for the full year. The company is thereby taking account of the increased market burdens in old-age provision and in health insurance, to which it has already alluded during the course of recent months. For the full year 2013, the management continues to anticipate solid earnings development but no longer expects to achieve earnings before interest and tax (EBIT) of at least EUR 65 million. For the financial years 2014 and 2015 MLP reiterates its EBIT forecast, which is expected to range within a corridor of EUR 65 to 78 million.

According to preliminary key figures MLP generated stable total revenue of EUR 338.8 million in the first nine months of 2013 (9M 2012: EUR 355.3 million) and EBIT of EUR 12.3 million (9M 2012: EUR 26.4 million). Third quarter EBIT amounted to EUR 7.3 million (Q3 2012: EUR 11.0 million), this is largest quarterly contribution so far in this financial year. Compared to the previous quarter, total revenue rose by 6 percent to EUR 114.5 million (Q2 2013: EUR 107.9 million), but remained below the corresponding quarter of the previous year (Q3 2012: EUR 121.5 million).

Since September MLP has recorded a pick-up in business compared to the previous months. However, as a result of the prevailing market conditions, business development remained below the high level of momentum achieved in the preceding years so far. This situation also continued in October and in the first few days of November.

Nevertheless, the number of consulting appointments remains high – an aspect which resulted in pleasing development in the areas of wealth management and non-life insurance as well as in loans and mortgages. However, MLP recorded significant decreases in old-age provision and in health insurance. In private health insurance many clients remain hesitant due to the public debate prior to the German parliamentary elections as well as to the still undecided issues associated with the formation of the new federal government. In old-age provision the current low interest rate environment, negative reports about life insurance contracts and fears about possible post-election tax increases have led to even greater hesitancy on the part of clients throughout the industry.

In the fourth quarter MLP anticipates a further pick-up in business development.

The detailed results of the third quarter and of the first nine months of 2013 will be published, as announced, on 14th November 2013.