MLP posts a significant rise in third quarter earnings

• EBIT more than doubled to EUR 7.1 million (Q3 2008: EUR 3.4 million)
• Total revenues increase by 8 percent compared to the previous quarter, rising to EUR 113.9 million despite a continuingly difficult market environment
• Efficiency improvement programme produces further savings – greatest earnings effect in Q4
• Assets under management reach a new record high of EUR 12.5 billion
• Outlook: Further pick-up in business expected during the year end period

Wiesloch, 11th November 2009 - MLP’s business in the third quarter picked up despite the continuingly difficult framework conditions. Total revenues rose by 8 percent compared to the second quarter, climbing to EUR 113.9 million (Q2 2009: EUR 105.9 million). As anticipated, total revenues fell slightly compared to the corresponding quarter of the previous year (Q3 2008: EUR 123.8 million), which was significantly less influenced by the far-reaching economic and financial crisis. At the same time, MLP considerably improved its profit situation: Earnings before interest and taxes (EBIT) for the period July to September amounted to EUR 7.1 million and thus more than doubled compared to the previous quarter as well as to the corresponding figure of the previous year. Net profit from continuing operations also rose by over 100 percent.

“Despite a continuingly challenging environment we have witnessed a pick-up in business during the past few weeks and are therefore satisfied with the third quarter,” comments MLP Chief Executive Officer Dr. Uwe Schroeder-Wildberg. “In addition to benefiting from increased revenues in several consulting areas, we also are continuing to feel the positive effects of our strict cost management programme on our earnings”.

The analysis of revenues in the third quarter shows growth in the areas of health insurance, non-life insurance as well as loans and mortgages. The continuing focus by many clients on increasing their risk protection led to an increase in revenues in non-life insurance of 24 percent compared to the previous year to EUR 3.5 million (Q3 2008: EUR 2.8 million). In health insurance, revenues rose to EUR 10.4 million (Q3 2008: EUR 10.2 million). In the loans and mortgages business, revenues from commissions and fees increased by 36 percent, climbing to EUR 3.5 million (Q3 2008: EUR 2.5 million). In this respect, MLP benefited from a heightened level of interest in property acquisition.

The restraint on the part of many clients with respect to medium and long-term investments continues to be reflected in the development of the old-age pension provision business as well as in wealth management – although both areas are showing a rising trend. In old-age pension provision, revenues rose to EUR 65.1 million compared to EUR 60.1 million in the second quarter (Q3 2008: EUR 70.8 million). In wealth management, revenues increased from EUR 15.9 million between April and June to EUR 18.7 million in the third quarter (Q3 2008: EUR 19.4 million).

EBIT for the period from July through to September increased to EUR 7.1 million (Q3 2008: EUR 3.4 million). Net profit from continuing operations rose from EUR 1.4 million to EUR 5.1 million. After inclusion of the discontinued operations, the net profit of the MLP Group amounted to EUR 4.7 million (Q3 2008: EUR 0.5 million).

This development in earnings reflects the benefits resulting from the cost reduction programme initiated in February 2009: After adjustment for special effects and acquisition-related costs MLP reduced the fixed costs by a total of EUR 17.1 million up to the end of September. “We are very much on schedule with our efficiency improvement programme and will continue this strict cost management strategy,” explains Andreas Dittmar, Head of Finance at MLP.

On a nine-month basis, total revenues fell by 15 percent to EUR 345.3 million (9M 2008: EUR 406.1 million) – the same period in the previous year having benefited from the final rise in the subsidised premiums for the “Riester” pension scheme which accounted for around EUR 40 million. Due to the effects of the economic and financial crisis EBIT fell from EUR 39.2 million to EUR 12.9 million. This figure includes exceptional and one-off expenses for capital market-relevant consulting services amounting to EUR 2.9 million in consequence of Swiss Life’s stake in MLP. In addition, there was a one-off charge amounting to around EUR 1.7 million on account of restructuring measures at subsidiaries. Net profit from continuing operations amounted to EUR 5.0 million (9M 2008: EUR 18.8 million).

The balance sheet strength of MLP is reflected in an equity ratio of 28 percent and liquid funds amounting to EUR 156.4 million at 30th September 2009.

Positive development in the capital market and light inflows lifted assets under management in the third quarter to EUR 12.5 billion (30.6.2009: EUR 11.7 billion) – representing the highest figure achieved so far in the history of MLP. New business in old-age pension provision is also showing signs of a pick-up. Following EUR 0.9 billion and EUR 1.0 billion in the first and second quarters of 2009 respectively, the premium sum in the third quarter amounted to EUR 1.1 billion. On a nine-month basis this results in a new business figure of EUR 3.0 billion (9M 2008: EUR 4.2 billion), whereby the corresponding period in the previous year was significantly influenced by the so-called “Riester” step. The occupational pension business area once again accounted for a larger portion of new business, contributing 9 percent (full year 2008: 8 percent).

In terms of new clients, the third quarter proved to be the strongest quarter so far of the current financial year - in which MLP welcomed 9,200 new clients. Overall, in the period from January to September MLP was able to gain more than 24,000 new clients, thus taking the total number of clients to 781,000. The number of consultants stood at 2,360 (30.6.2009: 2,405).

In mid of September MLP successfully sold its foreign business unit in Austria to Aragon AG. MLP will book the sale proceeds in discontinued operations after closing – probably in the fourth quarter.

The German coalition government agreement concluded in October between the CDU, CSU and FDP political parties for the new legislative period contains many important policy course decisions in fields of politics relevant to MLP. One of the positive aspects will be the planned abolition of the three-year lock-out period for a transfer to private health insurance that is expected to take effect in 2011. Furthermore, MLP welcomes other stated intentions such as the standardisation of the requirements for financial consultants, further strengthening of the capital-based old-age pension provision and the supplementation of statutory nursing care insurance through capital-based funding.

Traditionally, the fourth quarter, particularly the last few weeks of the year, significantly influence MLP’s result for the full year. Despite the continuingly difficult business environment, MLP has been registering a pick-up in its year-end business since October. “We currently anticipate that there will be a further pick-up over the coming weeks,” comments Uwe Schroeder-Wildberg. “At the same time we are continuing to benefit from our cost reduction measures and will achieve our savings objective“. As previously announced, MLP will reduce its fixed costs by EUR 24 million to EUR 290 million by the end of 2009 and to EUR 280 million by the end of 2010. Overall, MLP’s aim remains to develop better than the market.

Continuing operations (in EUR million)	Q3/ 2009	Q3/ 2008	Change in %	9 months 2009	9 months 2008	Change in %
Revenues	109.4	117.4	-7	330.2	378.1	-13
Revenues from comissions and fees	102.0	106.7	-4	305.5	347.9	-12
Interest income	7.4	10.7	-31	24.8	30.1	-18
Other revenues	4.5	6.4	-30	15.1	28.0	-46
Total revenues	113.9	123.8	-8	345.3	406.1	-15
Profit before interest and taxes (EBIT)	7.1	3.4	>100	12.9	39.2	-67
Profit before tax (EBT)	8.1	3.2	>100	11.9	30.2	-61
Net profit	5.1	1.4	>100	5.0	18.8	-74
Earnings per share (diluted) in EUR	0.05	0.01	>100	0.05	0.19	-74
Clients				781,000	728,000*	7
Consultants				2,360	2,413*	-2

*) 31/12/2008