While we are increasingly encouraged with our long-term growth opportunities with the rollout of GWP, we’re also working hard to improve the profitability of our Bank segment.
Our GWP efforts remain concentrated on capturing U.K. GWP markets, as well as launching GWP in the U.S. The next two GWP releases along with the most recent release will complete the baseline functionality for the U.S., significantly enhance the U.K. functionality and then help to improve our operational efficiencies and scale.
Now continue to be encouraged by the feedback I receive from our clients and prospects, and it’s confirmed by our fourth and first quarter sales events across all our markets.
Our investments in infrastructure and new service offerings are helping us differentiate ourselves from our competitors and we certainly expect to capitalize on this even in these challenging markets. Now, our new service offering coupled with our financial strength positions us well for the long-term.
Now this concludes my remarks, so I’ll now ask Dennis McGonigle to give you an update on LSV and the Investment in New Business segment and after that, I’ll turn it over to the other business segments. Dennis?
Thanks, Al. Good afternoon, everyone. I will cover the first quarter results for the Investments in New Business segment, make a few brief comments on LSV Asset Management.
During the first quarter of 2012, the Investments in New Business segment continued its focus on direct marketing and research activities directed to the ultra-high net worth investor and the further development of services.
During the quarter, the Investments in New Business segment incurred a loss of $2.8 million, which compares to a $2.2 million loss during the fourth quarter of 2011. This increase in loss is due to the costs associated with the acquisition and operating run rate of NorthStar, which approximated $750,000. As you’ll recall, we acquired the assets of NorthStar during the first quarter, we expect losses in this segment to continue in this range during 2012.
Regarding LSV, we continue to own approximately 41% of LSV in the first quarter. LSV contributed approximately $27.3 million in income to SEI during the quarter. This compares a $23.4 million in the fourth quarter 2011.
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