Delphi is both an archaeological site and a modern town in Greece on the south-western spur of Mount Parnassus in the valley of Phocis.
In Greek mythology, Delphi was the site of the Delphic oracle, the most important oracle in the classical Greek world, and a major site for the worship of the god Apollo after he slew the Python, a deity who lived there and protected the navel of the Earth. Python (derived from the verb pythein, "to rot") is claimed by some to be the original name of the site in recognition of the Python that Apollo defeated.[2] The Homeric Hymn to Delphic Apollo recalled that the ancient name of this site had been Krisa.[3]
Apollo's sacred precinct in Delphi was a panhellenic sanctuary, where every four years, starting in 586 BC[4] athletes from all over the Greek world competed in the Pythian Games, one of the four panhellenic (or stephanitic) games, precursors of the Modern Olympics. The victors at Delphi were presented with a laurel crown which was ceremonially cut from a tree by a boy who re-enacted the slaying of the Python.[4] Delphi was set apart from the other games sites because it hosted the mousikos agon, musical competitions.[2] These Pythian Games rank second among the four stephanitic games chronologically and based on importance.[4] These games, though, were different from the games at Olympia in that they were not of such vast Importance to the city of Delphi as the games at Olympia were to the city of Olympia. Delphi would have been a renowned city whether or not it hosted these games; it had other attractions that led to it being labeled the "omphalos" (navel) of the earth, in other words, the center of the world.[5]
In the inner hestia ("hearth") of the Temple of Apollo, an eternal flame burned. After the battle of Plataea, the Greek cities extinguished their fires and brought new fire from the hearth of Greece, at Delphi; in the foundation stories of several Greek colonies, the founding colonists were first dedicated at Delphi.
Delphi Financial Group, Inc. (Delphi) is a holding company whose subsidiaries provide integrated employee benefit services. The Company manages all aspects of employee absence and provides the related group insurance coverage, such as long-term and short-term disability, life, excess workers’ compensation self-insured employers, large casualty programs including large deductible workers’ compensation, travel accident, dental and limited benefit health insurance. The Company’s asset accumulation business emphasizes individual fixed annuity products. Delphi offers its products and services in all 50 states and the District of Columbia. The Company operates in two segments: group employee benefit products and asset accumulation products.
The Company’s operating subsidiaries include, Reliance Standard Life Insurance Company (RSLIC), Safety National Casualty Corporation (SNCC) and Matrix Absence Management, Inc. (Matrix). RSLIC and its subsidiary, First Reliance Standard Life Insurance Company (FRSLIC), underwrite a portfolio of group life, disability travel accident, dental and benefit health insurance products targeted principally to the employee benefits market. RSLIC also markets asset accumulation products, primarily fixed annuities, to individuals and groups. SNCC focuses primarily on providing excess workers’ compensation insurance to the self-insured market, while Matrix provides integrated disability and absence management services to the employee benefits market across the United States.
Group Employee Benefit Products
Delphi is a provider of disability, group life and excess workers’ compensation insurance products to small and mid-sized employers, with more than 35,000 policies in force. It also offers travel accident, voluntary accidental death and dismemberment, and group dental insurance. The Company markets its group products to employer-employee groups and associations in a variety of industries. It insures groups ranging from two to more than 5,000 individuals, although the size of an insured group generally ranges from 10 to 1,000 individuals. Delphi markets its employee benefit products on an unbundled basis and as part of an Integrated Employee Benefit program that combines employee benefit insurance coverages and absence management services. In addition, the Company offers a suite of voluntary disability, group life and accidental death and dismemberment insurance products that are purchased by employees on an elective basis at their worksite. The Company also offers a group limited benefit health insurance product, which provides employee-paid coverage for hourly, part-time or other employees with seasonal or other irregular work schedules who would generally not be eligible for other employer-provided health insurance plans.
Asset Accumulation Products
The Company’s asset accumulation products consist of fixed annuities, primarily single premium deferred annuities (SPDAs) and flexible premium annuities (FPAs). An SPDA provides for a single payment by an annuity holder to the Company and the crediting of interest by the Company on the annuity contract at the applicable crediting rate. An FPA provides for periodic payments by an annuity holder to the Company, the timing and amount, of which are at the discretion of the annuity holder, and the crediting of interest by the Company on the annuity contract at the applicable crediting rate. Interest credited on SPDAs and FPAs is not paid to the annuity holder but instead is added to the annuity contract’s account value and accumulates. During the year ended December 31, 2008, the Company’s SPDA products accounted for $186.7 million of asset accumulation product deposits, of which $133.6 million was attributable to the market value adjustment (MVA) annuity product, and $39 million was attributable to the indexed annuity.
Other Products and Services
Delphi provides integrated disability and absence management services on a nationwide basis through Matrix. The Company's disability and absence management services are designed to assist clients in identifying and minimizing lost productivity and benefit payment costs resulting from employee absence due to illness, injury or personal leave. The Company offers services, including event reporting, leave of absence management, claims and case management and return to work management. The Company provides these services on an unbundled basis or in an Integrated Employee Benefit program that combines these services with various group employee benefit insurance coverage
GM conducted an initial public offering (IPO) of 17.7 percent of Delphi's shares in February 1999, which raised $1.7 billion. The IPO had been delayed about a year while Delco was being combined with Delphi. By this time, Delphi had spent six years preparing for its independence, selling off 14 lines of business with sales of $6 billion a year, and closing or selling 62 unprofitable plants.
When GM completed Delphi's spinoff in May 1999, the newly independent company was twice as large as Visteon Corporation, the parts maker that was being spun off from Ford. Revenues were about $28.5 billion in 1998, when the company posted a net loss of $93 million.
Delphi, which had 200,000 employees, had its share of strikes. Union workers protested the loss of jobs and benefits likely to come from outsourcing and globalization; the United Auto Workers had always opposed Delphi's separation from GM, believing this would lead to wage concessions.
Delphi was focusing its research on products that were capital-intensive, rather than labor-intensive. This included electric power steering and a "PC Car" project to bring multimedia services into vehicles. High-tech products accounted for a third of company revenues in 2000.
Delphi sought to expand its core businesses via acquisition soon after its spinoff. Several companies were acquired in the first year, including TRW Inc.'s Lucas Diesel parts unit, bought for $871 million in November 1999. Delphi also bought a wiring harness plant in Asia and entered a number of joint ventures. A joint venture with Palm Inc. was creating a way for drivers to control their Palm Pilots via voice recognition systems.
In July 2000, Delphi announced plans to dismiss 900 manufacturing workers in Europe as part of a restructuring there. The cuts amounted to about 2 percent of its European workforce. The next March, the company announced plans to reduce its worldwide workforce by 11,500 jobs, or 5.5 percent, mostly through attrition. The automobile industry as a whole was experiencing a slowdown. Sales slipped a bit to $29.1 billion in 2000. Slowing auto sales in the fall of 2001 resulted in Delphi's customers making fewer cars and ordering fewer parts.
While looking to expand its business apart from its old parent, Delphi also risked having GM assign its business elsewhere. DENSO Corporation, Toyota's parts spinoff firm, quadrupled its business with GM in four years, attaining sales of $1 billion with the automaker by 2001. Delphi was scheduled to lose its right of last refusal for replacement business in North America with GM on January 1, 2002.
Delphi was aiming to grow its nonautomotive revenues to $700 million by 2005. Sales to the communications, military, aerospace, agriculture, and construction markets stood at $422 million in 1999.
Principal Subsidiaries: Delco Electronics Corporation; Delphi Automotive Systems (Holding), Inc.; Delphi Automotive Systems LLC.
Principal Divisions: Dynamics & Propulsion; Safety, Thermal & Electrical Architecture; Electronics & Mobile Communication.
Principal Operating Units: Delphi Automotive Systems; Aftermarket Operations; Audio and Mobile MultiMedia Systems; Electrical/Electronic Systems; Energy Systems; Engine Management Systems; Intellek Sensors and Actuators; Interior and Occupant Protection Systems; Microelectronics; Ride and Handling Systems; Thermal Systems.
Principal Competitors: DENSO Corporation; Johnson Controls, Inc.; Magna International; Robert Bosch GmbH; Siemens AG; TRW Inc.; Valeo S.A.; Visteon Corporation.
OVERALL
Beta: 1.89
Market Cap (Mil.): $1,692.04
Shares Outstanding (Mil.): 54.60
Annual Dividend: 0.44
Yield (%): 1.42
FINANCIALS
DFG.N Industry Sector
P/E (TTM): 9.36 11.52 23.16
EPS (TTM): 58.65 -- --
ROI: -- 0.01 4.64
ROE: 12.34 3.19 9.30
Statistics:
Public Company
Incorporated: 1998
Employees: 211,000
Sales: $29.14 billion (2000)
Stock Exchanges: New York
Ticker Symbol: DPH
NAIC: 336312 Gasoline Engine and Engine Parts Manufacturing; 336322 Other Motor Vehicle Electrical and Electronic Equipment; 33633 Motor Vehicle Steering and Suspension Components (Except Spring) Manufacturing; 33634 Motor Vehicle Brake System Manufacturing; 33635 Motor Vehicle Transmission and Power Train Parts; 336399 All Other Motor Vehicle Parts Manufacturing; 54171 Research and Development in the Physical, Engineering, and Life Sciences
Key Dates:
1888: Delphi Auto's earliest predecessor is founded.
1991: GM organizes parts holdings into Automotive Components Group.
1992: J.T. Battenberg, III, takes the helm at ACG.
1995: ACG is renamed Delphi Automotive.
1996: Delphi institutes lean manufacturing practices.
1997: GM's Delco Electronics is transferred to Delphi.
1999: Delphi is spun off from GM.
2001: Delphi plans to cut 5.5 percent of workforce (11,500 jobs).
Name Age Since Current Position
Rosenkranz, Robert 68 2006 Chairman of the Board, Chief Executive Officer
Sherman, Donald 60 2006 President, Chief Operating Officer, Director
Daurelle, Lawrence 59 2009 President and Chief Executive Officer of RSLIC
Wilhelm, Mark 58 2010 Chief Executive Officer of SNCC
Coulter, Chad 48 2007 Senior Vice President, General Counsel, Secretary; Senior Vice President, General Counsel and Assistant Secretary of RSLIC
Burghart, Thomas 52 2008 Senior Vice President, Treasurer; Senior Vice President and Treasurer of RSLIC
Fox, Edward 74 1990 Director
Ilg, Harold 63 2010 Director
O'Connor, Philip 62 2003 Independent Director
Meehan, James 65 2003 Independent Director
Brine, Kevin 60 2004 Independent Director
Litvack, James 69 2005 Independent Director
Wright, Robert 85 2005 Independent Director
Hirsh, Steven 71 2005 Independent Director
Address:
5725 Delphi Drive
Troy, Michigan 48098-2815
U.S.A.
In Greek mythology, Delphi was the site of the Delphic oracle, the most important oracle in the classical Greek world, and a major site for the worship of the god Apollo after he slew the Python, a deity who lived there and protected the navel of the Earth. Python (derived from the verb pythein, "to rot") is claimed by some to be the original name of the site in recognition of the Python that Apollo defeated.[2] The Homeric Hymn to Delphic Apollo recalled that the ancient name of this site had been Krisa.[3]
Apollo's sacred precinct in Delphi was a panhellenic sanctuary, where every four years, starting in 586 BC[4] athletes from all over the Greek world competed in the Pythian Games, one of the four panhellenic (or stephanitic) games, precursors of the Modern Olympics. The victors at Delphi were presented with a laurel crown which was ceremonially cut from a tree by a boy who re-enacted the slaying of the Python.[4] Delphi was set apart from the other games sites because it hosted the mousikos agon, musical competitions.[2] These Pythian Games rank second among the four stephanitic games chronologically and based on importance.[4] These games, though, were different from the games at Olympia in that they were not of such vast Importance to the city of Delphi as the games at Olympia were to the city of Olympia. Delphi would have been a renowned city whether or not it hosted these games; it had other attractions that led to it being labeled the "omphalos" (navel) of the earth, in other words, the center of the world.[5]
In the inner hestia ("hearth") of the Temple of Apollo, an eternal flame burned. After the battle of Plataea, the Greek cities extinguished their fires and brought new fire from the hearth of Greece, at Delphi; in the foundation stories of several Greek colonies, the founding colonists were first dedicated at Delphi.
Delphi Financial Group, Inc. (Delphi) is a holding company whose subsidiaries provide integrated employee benefit services. The Company manages all aspects of employee absence and provides the related group insurance coverage, such as long-term and short-term disability, life, excess workers’ compensation self-insured employers, large casualty programs including large deductible workers’ compensation, travel accident, dental and limited benefit health insurance. The Company’s asset accumulation business emphasizes individual fixed annuity products. Delphi offers its products and services in all 50 states and the District of Columbia. The Company operates in two segments: group employee benefit products and asset accumulation products.
The Company’s operating subsidiaries include, Reliance Standard Life Insurance Company (RSLIC), Safety National Casualty Corporation (SNCC) and Matrix Absence Management, Inc. (Matrix). RSLIC and its subsidiary, First Reliance Standard Life Insurance Company (FRSLIC), underwrite a portfolio of group life, disability travel accident, dental and benefit health insurance products targeted principally to the employee benefits market. RSLIC also markets asset accumulation products, primarily fixed annuities, to individuals and groups. SNCC focuses primarily on providing excess workers’ compensation insurance to the self-insured market, while Matrix provides integrated disability and absence management services to the employee benefits market across the United States.
Group Employee Benefit Products
Delphi is a provider of disability, group life and excess workers’ compensation insurance products to small and mid-sized employers, with more than 35,000 policies in force. It also offers travel accident, voluntary accidental death and dismemberment, and group dental insurance. The Company markets its group products to employer-employee groups and associations in a variety of industries. It insures groups ranging from two to more than 5,000 individuals, although the size of an insured group generally ranges from 10 to 1,000 individuals. Delphi markets its employee benefit products on an unbundled basis and as part of an Integrated Employee Benefit program that combines employee benefit insurance coverages and absence management services. In addition, the Company offers a suite of voluntary disability, group life and accidental death and dismemberment insurance products that are purchased by employees on an elective basis at their worksite. The Company also offers a group limited benefit health insurance product, which provides employee-paid coverage for hourly, part-time or other employees with seasonal or other irregular work schedules who would generally not be eligible for other employer-provided health insurance plans.
Asset Accumulation Products
The Company’s asset accumulation products consist of fixed annuities, primarily single premium deferred annuities (SPDAs) and flexible premium annuities (FPAs). An SPDA provides for a single payment by an annuity holder to the Company and the crediting of interest by the Company on the annuity contract at the applicable crediting rate. An FPA provides for periodic payments by an annuity holder to the Company, the timing and amount, of which are at the discretion of the annuity holder, and the crediting of interest by the Company on the annuity contract at the applicable crediting rate. Interest credited on SPDAs and FPAs is not paid to the annuity holder but instead is added to the annuity contract’s account value and accumulates. During the year ended December 31, 2008, the Company’s SPDA products accounted for $186.7 million of asset accumulation product deposits, of which $133.6 million was attributable to the market value adjustment (MVA) annuity product, and $39 million was attributable to the indexed annuity.
Other Products and Services
Delphi provides integrated disability and absence management services on a nationwide basis through Matrix. The Company's disability and absence management services are designed to assist clients in identifying and minimizing lost productivity and benefit payment costs resulting from employee absence due to illness, injury or personal leave. The Company offers services, including event reporting, leave of absence management, claims and case management and return to work management. The Company provides these services on an unbundled basis or in an Integrated Employee Benefit program that combines these services with various group employee benefit insurance coverage
GM conducted an initial public offering (IPO) of 17.7 percent of Delphi's shares in February 1999, which raised $1.7 billion. The IPO had been delayed about a year while Delco was being combined with Delphi. By this time, Delphi had spent six years preparing for its independence, selling off 14 lines of business with sales of $6 billion a year, and closing or selling 62 unprofitable plants.
When GM completed Delphi's spinoff in May 1999, the newly independent company was twice as large as Visteon Corporation, the parts maker that was being spun off from Ford. Revenues were about $28.5 billion in 1998, when the company posted a net loss of $93 million.
Delphi, which had 200,000 employees, had its share of strikes. Union workers protested the loss of jobs and benefits likely to come from outsourcing and globalization; the United Auto Workers had always opposed Delphi's separation from GM, believing this would lead to wage concessions.
Delphi was focusing its research on products that were capital-intensive, rather than labor-intensive. This included electric power steering and a "PC Car" project to bring multimedia services into vehicles. High-tech products accounted for a third of company revenues in 2000.
Delphi sought to expand its core businesses via acquisition soon after its spinoff. Several companies were acquired in the first year, including TRW Inc.'s Lucas Diesel parts unit, bought for $871 million in November 1999. Delphi also bought a wiring harness plant in Asia and entered a number of joint ventures. A joint venture with Palm Inc. was creating a way for drivers to control their Palm Pilots via voice recognition systems.
In July 2000, Delphi announced plans to dismiss 900 manufacturing workers in Europe as part of a restructuring there. The cuts amounted to about 2 percent of its European workforce. The next March, the company announced plans to reduce its worldwide workforce by 11,500 jobs, or 5.5 percent, mostly through attrition. The automobile industry as a whole was experiencing a slowdown. Sales slipped a bit to $29.1 billion in 2000. Slowing auto sales in the fall of 2001 resulted in Delphi's customers making fewer cars and ordering fewer parts.
While looking to expand its business apart from its old parent, Delphi also risked having GM assign its business elsewhere. DENSO Corporation, Toyota's parts spinoff firm, quadrupled its business with GM in four years, attaining sales of $1 billion with the automaker by 2001. Delphi was scheduled to lose its right of last refusal for replacement business in North America with GM on January 1, 2002.
Delphi was aiming to grow its nonautomotive revenues to $700 million by 2005. Sales to the communications, military, aerospace, agriculture, and construction markets stood at $422 million in 1999.
Principal Subsidiaries: Delco Electronics Corporation; Delphi Automotive Systems (Holding), Inc.; Delphi Automotive Systems LLC.
Principal Divisions: Dynamics & Propulsion; Safety, Thermal & Electrical Architecture; Electronics & Mobile Communication.
Principal Operating Units: Delphi Automotive Systems; Aftermarket Operations; Audio and Mobile MultiMedia Systems; Electrical/Electronic Systems; Energy Systems; Engine Management Systems; Intellek Sensors and Actuators; Interior and Occupant Protection Systems; Microelectronics; Ride and Handling Systems; Thermal Systems.
Principal Competitors: DENSO Corporation; Johnson Controls, Inc.; Magna International; Robert Bosch GmbH; Siemens AG; TRW Inc.; Valeo S.A.; Visteon Corporation.
OVERALL
Beta: 1.89
Market Cap (Mil.): $1,692.04
Shares Outstanding (Mil.): 54.60
Annual Dividend: 0.44
Yield (%): 1.42
FINANCIALS
DFG.N Industry Sector
P/E (TTM): 9.36 11.52 23.16
EPS (TTM): 58.65 -- --
ROI: -- 0.01 4.64
ROE: 12.34 3.19 9.30
Statistics:
Public Company
Incorporated: 1998
Employees: 211,000
Sales: $29.14 billion (2000)
Stock Exchanges: New York
Ticker Symbol: DPH
NAIC: 336312 Gasoline Engine and Engine Parts Manufacturing; 336322 Other Motor Vehicle Electrical and Electronic Equipment; 33633 Motor Vehicle Steering and Suspension Components (Except Spring) Manufacturing; 33634 Motor Vehicle Brake System Manufacturing; 33635 Motor Vehicle Transmission and Power Train Parts; 336399 All Other Motor Vehicle Parts Manufacturing; 54171 Research and Development in the Physical, Engineering, and Life Sciences
Key Dates:
1888: Delphi Auto's earliest predecessor is founded.
1991: GM organizes parts holdings into Automotive Components Group.
1992: J.T. Battenberg, III, takes the helm at ACG.
1995: ACG is renamed Delphi Automotive.
1996: Delphi institutes lean manufacturing practices.
1997: GM's Delco Electronics is transferred to Delphi.
1999: Delphi is spun off from GM.
2001: Delphi plans to cut 5.5 percent of workforce (11,500 jobs).
Name Age Since Current Position
Rosenkranz, Robert 68 2006 Chairman of the Board, Chief Executive Officer
Sherman, Donald 60 2006 President, Chief Operating Officer, Director
Daurelle, Lawrence 59 2009 President and Chief Executive Officer of RSLIC
Wilhelm, Mark 58 2010 Chief Executive Officer of SNCC
Coulter, Chad 48 2007 Senior Vice President, General Counsel, Secretary; Senior Vice President, General Counsel and Assistant Secretary of RSLIC
Burghart, Thomas 52 2008 Senior Vice President, Treasurer; Senior Vice President and Treasurer of RSLIC
Fox, Edward 74 1990 Director
Ilg, Harold 63 2010 Director
O'Connor, Philip 62 2003 Independent Director
Meehan, James 65 2003 Independent Director
Brine, Kevin 60 2004 Independent Director
Litvack, James 69 2005 Independent Director
Wright, Robert 85 2005 Independent Director
Hirsh, Steven 71 2005 Independent Director
Address:
5725 Delphi Drive
Troy, Michigan 48098-2815
U.S.A.