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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 25, 1998
THE GUARANTEE LIFE COMPANIES INC.
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(Exact name of registrant as specified in its charter)
Delaware 0-26788 47-0785066
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(State of Incorporation) (Commission File Number) (IRS Employer Identification
Number)
8801 Indian Hills Drive,
Omaha, Nebraska 68114
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(Address of principal executive offices) (Zip Code)
(402) 361-7300
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(Registrant's telephone number, including area code)
Not applicable
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(Former name or former address, if changed since last report)
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Item 5. OTHER EVENTS.
(a) The registrant issued the following press release on June 25,
1998:
FOR IMMEDIATE RELEASE
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Company Contact: Contact:
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William L. Bauhard, CFO John Lovallo, SVP
The Guarantee Life Companies Inc. Makovsky & Company
Diane T. Kohout, Director IR John Menditto, Account Exec.
The Guarantee Life Companies Inc. Makovsky & Company
(402) 361-2848 (212) 508-9600
THE GUARANTEE LIFE COMPANIES INC.
COMMENTS ON EXPECTED SECOND QUARTER EARNINGS
Omaha, Nebraska, June 25, 1998 -- The Guarantee Life Companies Inc.
(Nasdaq: GUAR) today announced that it expects its earnings for the second
quarter ending June 30, 1998 to be between $0.15 and $0.20 per diluted share,
excluding realized investment gains, versus the mean analyst estimate on First
Call of $0.42 per diluted share and the Company's first quarter 1998 earnings of
$0.03 per diluted share. For its second quarter 1997, Guarantee Life earned
$0.43 per diluted share, excluding realized investment gains. The Company
expects to release its second quarter 1998 and six-month financial results on
July 23, 1998.
Guarantee Life attributes the lower than expected second quarter
results primarily due to the continued unfavorable loss ratios in its Employee
Benefits Division's group dental product line. Robert D. Bates, Chairman and
Chief Executive Officer, commented, "As we previously reported, we have
implemented price increases in our dental product line, and we have strengthened
our risk management in this area. We anticipated that the benefits from these
actions would not be realized until later this year, and consequently, we expect
that our earnings for the full year will be lower than the current analysts'
estimates. Operationally, as we have noted before, we have initiated a
comprehensive analysis of our dental business."
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The Guarantee Life Companies Inc. operates through three subsidiaries. Its
principal subsidiary is Guarantee Life Insurance Company. The other two
subsidiaries are Westfield Life Insurance Company and PFG, Inc., including its
principal subsidiary, AGL Life Assurance Company. Guarantee Life markets group
life and health insurance products to employers and other groups, and life
insurance and annuities to individuals. The principal business operations are
conducted in 48 states and the District of Columbia. Insurance coverage and
related benefits are provided through more than 310,000 individual and group
policies issued to almost 1.9 million customers. Guarantee Life is
headquartered in Omaha, Nebraska.
Certain statements contained in this press release, including
statements regarding the anticipated development and expansion of the Company's
business, the intent, belief, or current expectations of the Company, its
directors, or its officers, primarily with respect to the future operating
performance of the Company, and other statements contained herein regarding
matters that are not historical facts, are "forward-looking" statements (as such
term is defined in the Private Securities Litigation Reform Act of 1995).
Because such statements are subject to risks and uncertainties, actual results
may differ materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements include, but are
not limited to, uncertainties regarding the market, difficulties inherent in
consummating and merging acquisitions, and those risks and uncertainties
discussed in filings made by the Company with the Securities and Exchange
Commission.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE GUARANTEE LIFE COMPANIES INC.
By /s/ Richard A. Spellman
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Richard A. Spellman, Senior Vice President,
General Counsel and Secretary
June 25, 1998
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