x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware |
13-3976138 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification
No.) |
Page | ||||
PART I FINANCIAL INFORMATION |
||||
Item 1: |
3 | |||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
8 | ||||
Item 2: |
21 | |||
Item 3: |
49 | |||
PART II OTHER INFORMATION |
||||
Item 1: |
50 | |||
Item 4: |
50 | |||
Item 6: |
51 | |||
52 |
June 30, 2002 |
December 31, 2001 |
|||||||
($ in millions) |
||||||||
ASSETS |
||||||||
Investments: |
||||||||
Fixed maturity securities available-for-sale, at fair value |
$ |
7,406.3 |
|
$ |
6,976.0 |
| ||
Fixed maturity securities held to maturity, at amortized cost |
|
0.1 |
|
|
0.1 |
| ||
Trading account securities, at market value |
|
793.2 |
|
|
378.5 |
| ||
Securities pledged as collateral |
|
|
|
|
345.5 |
| ||
Equity securities available-for-sale, at fair value |
|
288.1 |
|
|
299.2 |
| ||
Mortgage loans on real estate |
|
1,757.8 |
|
|
1,809.7 |
| ||
Policy loans |
|
1,212.0 |
|
|
1,229.0 |
| ||
Other invested assets |
|
363.4 |
|
|
347.5 |
| ||
|
|
|
|
|
| |||
|
11,820.9 |
|
|
11,385.5 |
| |||
|
|
|
|
|
| |||
Cash and cash equivalents |
|
494.3 |
|
|
441.0 |
| ||
Accrued investment income |
|
213.7 |
|
|
192.9 |
| ||
Amounts due from reinsurers |
|
567.6 |
|
|
595.8 |
| ||
Premiums receivable |
|
8.7 |
|
|
11.1 |
| ||
Deferred policy acquisition costs |
|
1,237.6 |
|
|
1,233.8 |
| ||
Securities borrowed |
|
0.3 |
|
|
601.0 |
| ||
Receivable from brokerage customers, net |
|
|
|
|
452.1 |
| ||
Other assets |
|
910.1 |
|
|
893.5 |
| ||
Assets transferred in Group Pension Transaction (Note 4) |
|
4,581.9 |
|
|
4,650.4 |
| ||
Separate account assets |
|
4,672.4 |
|
|
5,195.2 |
| ||
|
|
|
|
|
| |||
Total assets |
$ |
24,507.5 |
|
$ |
25,652.3 |
| ||
|
|
|
|
|
| |||
LIABILITIES AND SHAREHOLDERS EQUITY |
||||||||
Future policy benefits |
$ |
7,916.3 |
|
$ |
7,870.0 |
| ||
Policyholders account balances |
|
2,424.9 |
|
|
2,337.1 |
| ||
Other policyholders liabilities |
|
271.5 |
|
|
281.1 |
| ||
Amounts due to reinsurers |
|
77.0 |
|
|
74.6 |
| ||
Securities loaned |
|
|
|
|
392.4 |
| ||
Securities sold, not yet purchased, at market value |
|
578.1 |
|
|
539.2 |
| ||
Payable to brokerage customers |
|
0.1 |
|
|
374.4 |
| ||
Accounts payable and other liabilities |
|
870.0 |
|
|
867.8 |
| ||
Short term debt |
|
7.0 |
|
|
320.0 |
| ||
Long term debt |
|
879.0 |
|
|
578.8 |
| ||
Current federal income taxes payable |
|
79.0 |
|
|
81.6 |
| ||
Deferred federal income taxes |
|
126.7 |
|
|
104.3 |
| ||
Liabilities transferred in Group Pension Transaction (Note 4) |
|
4,513.2 |
|
|
4,586.5 |
| ||
Separate account liabilities |
|
4,669.5 |
|
|
5,192.3 |
| ||
|
|
|
|
|
| |||
Total liabilities |
$ |
22,412.3 |
|
$ |
23,600.1 |
| ||
|
|
|
|
|
| |||
Commitments and contingencies (Note 5) |
||||||||
Common stock, $0.01 par value; 400 million shares authorized; 51.3 and 51.2 million shares issued at June 30, 2002 and December 31, 2001, respectively; 48.0 and 48.1 million shares outstanding at June 30, 2002 and December 31, 2001, respectively |
|
0.5 |
|
|
0.5 |
| ||
Capital in excess of par |
|
1,761.5 |
|
|
1,760.3 |
| ||
Treasury stock at cost: 3.3 million and 3.1 million shares at June 30, 2002, and December 31, 2001,
respectively |
|
(112.4 |
) |
|
(104.7 |
) | ||
Retained earnings |
|
362.6 |
|
|
359.3 |
| ||
Accumulated other comprehensive income |
|
84.0 |
|
|
38.1 |
| ||
Unamortized restricted stock compensation |
|
(1.0 |
) |
|
(1.3 |
) | ||
|
|
|
|
|
| |||
Total shareholders equity |
|
2,095.2 |
|
|
2,052.2 |
| ||
|
|
|
|
|
| |||
Total liabilities and shareholders equity |
$ |
24,507.5 |
|
$ |
25,652.3 |
| ||
|
|
|
|
|
|
2002 |
2001 |
|||||||
($ in millions, except share data and per share amounts) |
||||||||
Revenues: |
||||||||
Premiums |
$ |
169.9 |
|
$ |
173.4 |
| ||
Universal life and investment-type product policy fees |
|
52.5 |
|
|
52.3 |
| ||
Net investment income |
|
181.9 |
|
|
189.5 |
| ||
Net realized (losses) gains on investments |
|
(25.5 |
) |
|
3.0 |
| ||
Group Pension Profits (Note 4) |
|
7.5 |
|
|
9.3 |
| ||
Retail Brokerage and Investment Banking revenues |
|
97.6 |
|
|
99.8 |
| ||
Other income |
|
29.3 |
|
|
41.7 |
| ||
|
|
|
|
|
| |||
|
513.2 |
|
|
569.0 |
| |||
|
|
|
|
|
| |||
Benefits and Expenses: |
||||||||
Benefits to policyholders |
|
199.5 |
|
|
194.5 |
| ||
Interest credited to policyholders account balances |
|
27.9 |
|
|
27.0 |
| ||
Amortization of deferred policy acquisition costs |
|
38.0 |
|
|
28.3 |
| ||
Dividends to policyholders |
|
56.8 |
|
|
60.6 |
| ||
Other operating costs and expenses |
|
207.1 |
|
|
226.8 |
| ||
|
|
|
|
|
| |||
|
529.3 |
|
|
537.2 |
| |||
|
|
|
|
|
| |||
(Loss)/Income before income taxes |
|
(16.1 |
) |
|
31.8 |
| ||
Income tax (benefit)/expense |
|
(5.1 |
) |
|
9.5 |
| ||
|
|
|
|
|
| |||
Net (loss)/income |
|
(11.0 |
) |
|
22.3 |
| ||
Other comprehensive income/(loss), net |
|
62.2 |
|
|
(23.2 |
) | ||
|
|
|
|
|
| |||
Comprehensive income/(loss) |
$ |
51.2 |
|
$ |
(0.9 |
) | ||
|
|
|
|
|
| |||
Net (loss)/income per share data: |
||||||||
Basic (loss)/earnings per share |
$ |
(0.23 |
) |
$ |
0.45 |
| ||
|
|
|
|
|
| |||
Diluted (loss)/earnings per share |
$ |
(0.23 |
) |
$ |
0.44 |
| ||
|
|
|
|
|
| |||
Share Data: |
||||||||
Weighted-average shares used in basic per share calculation |
|
47,994,628 |
|
|
49,363,512 |
| ||
Plus: incremental shares from assumed conversion of dilutive securities |
|
|
|
|
1,549,587 |
| ||
|
|
|
|
|
| |||
Weighted-average shares used in diluted per share calculations |
|
47,994,628 |
|
|
50,913,099 |
| ||
|
|
|
|
|
|
2002 |
2001 |
|||||||
($ in millions, except share data and per share amounts) |
||||||||
Revenues: |
||||||||
Premiums |
$ |
334.3 |
|
$ |
338.5 |
| ||
Universal life and investment-type product policy fees |
|
101.5 |
|
|
102.0 |
| ||
Net investment income |
|
371.6 |
|
|
373.2 |
| ||
Net realized (losses) gains on investments |
|
(27.9 |
) |
|
5.5 |
| ||
Group Pension Profits (Note 4) |
|
15.2 |
|
|
19.2 |
| ||
Retail Brokerage and Investment Banking revenues |
|
188.4 |
|
|
170.9 |
| ||
Other income |
|
67.5 |
|
|
72.0 |
| ||
|
|
|
|
|
| |||
|
1,050.6 |
|
|
1,081.3 |
| |||
|
|
|
|
|
| |||
Benefits and Expenses: |
||||||||
Benefits to policyholders |
|
390.2 |
|
|
392.2 |
| ||
Interest credited to policyholders account balances |
|
55.8 |
|
|
55.3 |
| ||
Amortization of deferred policy acquisition costs |
|
70.8 |
|
|
65.5 |
| ||
Dividends to policyholders |
|
118.3 |
|
|
115.2 |
| ||
Other operating costs and expenses |
|
410.5 |
|
|
401.0 |
| ||
|
|
|
|
|
| |||
|
1,045.6 |
|
|
1,029.2 |
| |||
|
|
|
|
|
| |||
Income before income taxes |
|
5.0 |
|
|
52.1 |
| ||
Income tax expense |
|
1.7 |
|
|
16.5 |
| ||
|
|
|
|
|
| |||
Net income |
|
3.3 |
|
|
35.6 |
| ||
Other comprehensive income/(loss), net |
|
45.9 |
|
|
(4.1 |
) | ||
|
|
|
|
|
| |||
Comprehensive income |
$ |
49.2 |
|
$ |
31.5 |
| ||
|
|
|
|
|
| |||
Net income per share data: |
||||||||
Basic earnings per share |
$ |
0.07 |
|
$ |
0.73 |
| ||
|
|
|
|
|
| |||
Diluted earnings per share |
$ |
0.07 |
|
$ |
0.70 |
| ||
|
|
|
|
|
| |||
Share Data: |
||||||||
Weighted-average shares used in basic per share calculation |
|
48,003,420 |
|
|
49,044,496 |
| ||
Plus: incremental shares from assumed conversion of dilutive securities |
|
1,667,333 |
|
|
1,580,133 |
| ||
|
|
|
|
|
| |||
Weighted-average shares used in diluted per share calculations |
|
49,670,753 |
|
|
50,624,629 |
| ||
|
|
|
|
|
|
Common Stock
|
Capital In Excess of Par |
Treasury Stock |
Retained Earnings |
Accumulated Other Comprehensive Income |
Unamortized Restricted Stock Compensation |
Total Shareholders Equity |
||||||||||||||||||
($ in millions) |
||||||||||||||||||||||||
Balance, December 31, 2001 |
$ |
0.5 |
$ |
1,760.3 |
$ |
(104.7 |
) |
$ |
359.3 |
$ |
38.1 |
$ |
(1.3 |
) |
$ |
2,052.2 |
| |||||||
Issuance of Shares |
|
1.2 |
|
1.2 |
| |||||||||||||||||||
Purchases of treasury stock, at cost |
|
(7.7 |
) |
|
(7.7 |
) | ||||||||||||||||||
Unamortized restricted stock compensation |
|
0.3 |
|
|
0.3 |
| ||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||
Net income |
|
3.3 |
|
3.3 |
| |||||||||||||||||||
Other comprehensive income(1) |
|
45.9 |
|
45.9 |
| |||||||||||||||||||
|
|
| ||||||||||||||||||||||
Comprehensive income |
|
49.2 |
| |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Balance, June 30, 2002 |
$ |
0.5 |
$ |
1,761.5 |
$ |
(112.4 |
) |
$ |
362.6 |
$ |
84.0 |
$ |
(1.0 |
) |
$ |
2,095.2 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Represents unrealized gains on investments (net of unrealized losses, the effect of unrealized gains on deferred acquisition costs and dividends to
policyholders), reclassification adjustments, minimum pension liability and taxes. |
2002 |
2001 |
|||||||
($ in millions) |
||||||||
Net cash used in operating activities |
$ |
(23.3 |
) |
$ |
(52.8 |
) | ||
Cash flows from investing activities: |
||||||||
Sales, maturities or repayment of: |
||||||||
Fixed maturities securities |
|
550.1 |
|
|
749.0 |
| ||
Equity securities |
|
9.8 |
|
|
34.2 |
| ||
Policy loans, net |
|
17.0 |
|
|
12.1 |
| ||
Other invested assets |
|
149.0 |
|
|
139.8 |
| ||
Acquisitions of investments: |
||||||||
Fixed maturities securities |
|
(893.8 |
) |
|
(554.9 |
) | ||
Equity securities |
|
(14.0 |
) |
|
10.5 |
| ||
Other invested assets |
|
(114.9 |
) |
|
(240.0 |
) | ||
Property, plant and equipment, net |
|
(9.2 |
) |
|
(12.0 |
) | ||
Acquisition of subsidiaries, net of cash acquired |
|
(7.1 |
) |
|
(208.0 |
) | ||
|
|
|
|
|
| |||
Net cash used in investing activities |
$ |
(313.1 |
) |
$ |
(69.3 |
) | ||
|
|
|
|
|
| |||
Cash flows from financing activities: |
||||||||
Repayments of debt |
|
|
|
|
(0.1 |
) | ||
Issuance of debt |
|
300.0 |
|
|
|
| ||
Receipts from annuity and universal life policies credited to policyholders account balances(1) |
|
511.2 |
|
|
571.1 |
| ||
Return of policyholder account balances on annuity and universal life policies(1) |
|
(414.9 |
) |
|
(530.5 |
) | ||
Treasury stock repurchases |
|
(7.7 |
) |
|
(27.8 |
) | ||
Issuance of common stock |
|
1.1 |
|
|
0.5 |
| ||
|
|
|
|
|
| |||
Net cash provided by financing activities |
|
389.7 |
|
|
13.2 |
| ||
|
|
|
|
|
| |||
Net increase/(decrease) in cash and cash equivalents |
|
53.3 |
|
|
(108.9 |
) | ||
Cash and cash equivalents, beginning of period |
|
441.0 |
|
|
869.6 |
| ||
|
|
|
|
|
| |||
Cash and cash equivalents, end of period |
$ |
494.3 |
|
$ |
760.7 |
| ||
|
|
|
|
|
|
(1) |
Includes exchanges to a new FPVA product series. |
For the Three-month Periods Ended June
30, |
For the Six-month Periods Ended June 30, |
|||||||||||||||
2002 |
2001 |
2002 |
2001 |
|||||||||||||
($ in millions) |
($ in millions) |
|||||||||||||||
Premiums: |
||||||||||||||||
Protection Products |
$ |
164.5 |
|
$ |
169.8 |
|
$ |
324.9 |
|
$ |
331.4 |
| ||||
Accumulation Products |
|
3.3 |
|
|
1.1 |
|
|
4.8 |
|
|
2.4 |
| ||||
Other Products |
|
2.1 |
|
|
2.5 |
|
|
4.6 |
|
|
4.7 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
169.9 |
|
$ |
173.4 |
|
$ |
334.3 |
|
$ |
338.5 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Universal life and investment-type product policy fees: |
||||||||||||||||
Protection Products |
$ |
39.8 |
|
$ |
37.1 |
|
$ |
75.5 |
|
$ |
71.6 |
| ||||
Accumulation Products |
|
12.6 |
|
|
14.3 |
|
|
24.7 |
|
|
29.5 |
| ||||
Other Products |
|
0.1 |
|
|
0.9 |
|
|
1.3 |
|
|
0.9 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
52.5 |
|
$ |
52.3 |
|
$ |
101.5 |
|
$ |
102.0 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net investment income and net realized gains (losses) on investments: |
||||||||||||||||
Protection Products |
$ |
128.8 |
|
$ |
153.6 |
|
$ |
280.5 |
|
$ |
303.5 |
| ||||
Accumulation Products |
|
13.5 |
|
|
20.3 |
|
|
34.5 |
|
|
40.5 |
| ||||
Retail Brokerage and Investment Banking |
|
3.1 |
|
|
2.1 |
|
|
5.4 |
|
|
2.9 |
| ||||
Other Products |
|
4.5 |
|
|
7.3 |
|
|
11.0 |
|
|
13.3 |
| ||||
Reconciling amounts |
|
6.5 |
|
|
9.2 |
|
|
12.3 |
|
|
18.5 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
156.4 |
|
$ |
192.5 |
|
$ |
343.7 |
|
$ |
378.7 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other income: |
||||||||||||||||
Protection Products(1) |
$ |
4.9 |
|
$ |
17.9 |
|
$ |
18.4 |
|
$ |
25.6 |
| ||||
Accumulation Products |
|
25.8 |
|
|
27.0 |
|
|
51.6 |
|
|
53.2 |
| ||||
Retail Brokerage and Investment Banking(1) |
|
98.6 |
|
|
99.8 |
|
|
189.4 |
|
|
170.9 |
| ||||
Other Products |
|
3.8 |
|
|
4.1 |
|
|
8.8 |
|
|
8.6 |
| ||||
Reconciling amounts |
|
1.3 |
|
|
2.0 |
|
|
2.9 |
|
|
3.8 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
134.4 |
|
$ |
150.8 |
|
$ |
271.1 |
|
$ |
262.1 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Amortization of deferred policy acquisition costs: |
||||||||||||||||
Protection Products |
$ |
30.2 |
|
$ |
24.3 |
|
$ |
57.1 |
|
$ |
55.2 |
| ||||
Accumulation Products |
|
7.8 |
|
|
4.0 |
|
|
13.7 |
|
|
10.3 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
38.0 |
|
$ |
28.3 |
|
$ |
70.8 |
|
$ |
65.5 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Benefits to policyholders:(2) |
||||||||||||||||
Protection Products |
$ |
198.5 |
|
$ |
198.7 |
|
$ |
389.9 |
|
$ |
397.4 |
| ||||
Accumulation Products |
|
23.2 |
|
|
16.3 |
|
|
39.8 |
|
|
32.4 |
| ||||
Other Products |
|
3.8 |
|
|
4.5 |
|
|
12.1 |
|
|
12.9 |
| ||||
Reconciling amounts |
|
1.9 |
|
|
2.0 |
|
|
4.2 |
|
|
4.8 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
227.4 |
|
$ |
221.5 |
|
$ |
446.0 |
|
$ |
447.5 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income before income taxes: |
||||||||||||||||
Protection Products |
$ |
(0.2 |
) |
$ |
26.9 |
|
$ |
25.3 |
|
$ |
47.4 |
| ||||
Accumulation Products |
|
(6.4 |
) |
|
12.9 |
|
|
2.1 |
|
|
24.9 |
| ||||
Retail Brokerage and Investment Banking |
|
0.7 |
|
|
(2.1 |
) |
|
(0.1 |
) |
|
(4.0 |
) | ||||
Other Products |
|
(2.6 |
) |
|
0.7 |
|
|
(7.2 |
) |
|
(4.8 |
) | ||||
Reconciling amounts |
|
(7.6 |
) |
|
(6.6 |
) |
|
(15.1 |
) |
|
(11.4 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
$ |
(16.1 |
) |
$ |
31.8 |
|
$ |
5.0 |
|
$ |
52.1 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2002 |
As of December 31, 2001 |
||||||
($ in millions) |
|||||||
Assets:(3) |
|||||||
Protection Products(4) |
$ |
16,376.9 |
$ |
16,188.1 |
| ||
Accumulation Products |
|
4,709.6 |
|
5,077.7 |
| ||
Retail Brokerage and Investment Banking |
|
1,019.2 |
|
1,101.3 |
| ||
Other Products |
|
1,258.0 |
|
1,116.1 |
| ||
Reconciling amounts |
|
1,143.8 |
|
2,169.1 |
| ||
|
|
|
|
| |||
$ |
24,507.5 |
$ |
25,652.3 |
| |||
|
|
|
|
| |||
Deferred policy acquisition costs: |
|||||||
Protection Products |
$ |
1,089.8 |
$ |
1,087.0 |
| ||
Accumulation Products |
|
147.8 |
|
146.8 |
| ||
|
|
|
|
| |||
$ |
1,237.6 |
$ |
1,233.8 |
| |||
|
|
|
|
| |||
Policyholders liabilities: |
|||||||
Protection Products(5) |
$ |
10,403.8 |
$ |
10,366.5 |
| ||
Accumulation Products |
|
1,195.0 |
|
1,142.5 |
| ||
Other Products |
|
358.0 |
|
361.7 |
| ||
Reconciling amounts |
|
16.0 |
|
16.3 |
| ||
|
|
|
|
| |||
$ |
11,972.8 |
$ |
11,887.0 |
| |||
|
|
|
|
| |||
Separate account liabilities:(3) |
|||||||
Protection Products(6) |
$ |
3,769.3 |
$ |
3,783.7 |
| ||
Accumulation Products |
|
3,053.7 |
|
3,464.3 |
| ||
Other Products |
|
365.9 |
|
429.7 |
| ||
Reconciling amounts |
|
639.7 |
|
694.1 |
| ||
|
|
|
|
| |||
$ |
7,828.6 |
$ |
8,371.8 |
| |||
|
|
|
|
|
(1) |
Includes Group Pension Profits, Retail Brokerage and Investment Banking revenues and other income. |
(2) |
Includes benefits to policyholders and interest credited to policyholders account balances. |
(3) |
Each segment includes separate account assets in an amount not less than the corresponding liability reported. |
(4) |
Includes assets transferred in the Group Pension Transaction of $4,581.9 million and $4,650.4 million as of June 30, 2002 and December 31, 2001, respectively
(see Note 4). |
(5) |
Includes policyholder liabilities transferred in the Group Pension Transaction of $1,354.1 million and $1,407.0 million as of June 30, 2002 and December 31,
2001, respectively (see Note 4). |
(6) |
Includes separate account liabilities transferred in the Group Pension Transaction of $3,159.1 million and $3,179.5 million as of June 30, 2002 and December 31,
2001 respectively (see Note 4). |
Three-month Periods
Ended June 30, |
Six-month Periods
Ended June 30, | |||||||||||
2002 |
2001 |
2002 |
2001 | |||||||||
($ in millions) |
($ in millions) | |||||||||||
Premiums: |
||||||||||||
Individual life |
$ |
164.5 |
$ |
169.7 |
$ |
324.9 |
$ |
331.4 | ||||
Group insurance |
|
2.1 |
|
2.5 |
|
4.6 |
|
4.7 | ||||
Disability income insurance |
|
0.1 |
|
0.1 |
|
0.2 |
|
0.2 | ||||
Other |
|
3.2 |
|
1.1 |
|
4.6 |
|
2.2 | ||||
|
|
|
|
|
|
|
| |||||
Total |
$ |
169.9 |
$ |
173.4 |
$ |
334.3 |
$ |
338.5 | ||||
|
|
|
|
|
|
|
| |||||
Universal life and investment-type product policy fees: |
||||||||||||
Universal life |
$ |
14.5 |
$ |
17.8 |
$ |
32.8 |
$ |
35.7 | ||||
Variable universal life |
|
23.2 |
|
17.1 |
|
38.2 |
|
31.2 | ||||
Group universal life |
|
2.2 |
|
2.3 |
|
4.6 |
|
4.8 | ||||
Individual variable annuities |
|
12.6 |
|
14.2 |
|
24.7 |
|
29.4 | ||||
Individual fixed annuities |
|
0.0 |
|
0.9 |
|
1.2 |
|
0.9 | ||||
|
|
|
|
|
|
|
| |||||
Total |
$ |
52.5 |
$ |
52.3 |
$ |
101.5 |
$ |
102.0 | ||||
|
|
|
|
|
|
|
|
As of June 30, 2002 |
As of December 31, 2001 | |||||
($ in millions) | ||||||
Assets: |
||||||
General Account |
||||||
Fixed Maturities: available-for-sale, at estimated fair value (amortized cost; $1,306.0 million and $1,371.2 million,
respectively) |
$ |
1,334.8 |
$ |
1,400.5 | ||
Mortgage loans on real estate |
|
24.8 |
|
26.5 | ||
Cash and cash equivalents |
|
39.1 |
|
19.4 | ||
Other assets |
|
24.1 |
|
24.5 | ||
|
|
|
| |||
Total general account assets |
|
1,422.8 |
|
1,470.9 | ||
Separate account assets |
|
3,159.1 |
|
3,179.5 | ||
|
|
|
| |||
Total assets |
$ |
4,581.9 |
$ |
4,650.4 | ||
|
|
|
| |||
Liabilities: |
||||||
General Account(1) |
||||||
Policyholders account balances |
$ |
1,354.1 |
$ |
1,407.0 | ||
Separate account liabilities(2) |
$ |
3,159.1 |
$ |
3,179.5 | ||
|
|
|
| |||
Total Liabilities |
$ |
4,513.2 |
$ |
4,586.5 | ||
|
|
|
|
(1) |
Includes general account liabilities transferred in connection with the Group Pension Transaction pursuant to indemnity reinsurance of $69.9 million and $71.2
million as of June 30, 2002 and December 31, 2001, respectively. |
(2) |
Includes separate account liabilities transferred in connection with the Group Pension Transaction pursuant to indemnity reinsurance of $11.7 million and $11.8
million as of June 30, 2002 and December 31, 2001, respectively. |
For the Three-Month Periods Ended June 30, |
For the Six-Month Periods Ended June 30, | |||||||||||
2002 |
2001 |
2002 |
2001 | |||||||||
($ in millions) | ||||||||||||
Revenues: |
||||||||||||
Product policy fees |
$ |
4.6 |
$ |
4.2 |
$ |
9.3 |
$ |
9.5 | ||||
Net investment income |
|
22.6 |
|
25.8 |
|
45.8 |
|
53.0 | ||||
Net realized gains (losses) on investments |
|
0.3 |
|
2.0 |
|
0.1 |
|
3.6 | ||||
|
|
|
|
|
|
|
| |||||
Total Revenues |
$ |
27.5 |
$ |
32.0 |
$ |
55.2 |
$ |
66.1 | ||||
Benefits and Expenses: |
||||||||||||
Interest Credited to policyholders account balances |
$ |
16.6 |
$ |
18.6 |
$ |
32.4 |
$ |
37.1 | ||||
Other operating costs and expenses |
|
3.4 |
|
4.1 |
|
7.6 |
|
9.8 | ||||
|
|
|
|
|
|
|
| |||||
Total benefits and expenses |
|
20.0 |
|
22.7 |
|
40.0 |
|
46.9 | ||||
|
|
|
|
|
|
|
| |||||
Group Pension Profits |
$ |
7.5 |
$ |
9.3 |
$ |
15.2 |
$ |
19.2 | ||||
|
|
|
|
|
|
|
|
June 30, 2002 |
December 31, 2001 | |||||
($ in millions) | ||||||
Assets: |
||||||
Fixed Maturities: |
||||||
Available for sale, at estimated fair value (amortized cost; $3,803.5 and $3,780.9, respectively) |
$ |
4,028.2 |
$ |
3,868.9 | ||
Mortgage loans on real restate |
|
566.2 |
|
622.1 | ||
Real estate to be disposed of |
|
8.0 |
|
| ||
Policy loans |
|
1,120.1 |
|
1,144.3 | ||
Cash and cash equivalents |
|
72.8 |
|
56.2 | ||
Amounts due from broker |
|
0.6 |
|
6.2 | ||
Premiums receivable |
|
9.2 |
|
12.5 | ||
Deferred policy acquisition costs |
|
471.3 |
|
500.6 | ||
Other assets |
|
225.4 |
|
219.3 | ||
|
|
|
| |||
Total Closed Block assets |
$ |
6,501.8 |
$ |
6,430.1 | ||
|
|
|
| |||
Liabilities: |
||||||
Future policy benefits |
$ |
6,885.5 |
$ |
6,869.8 | ||
Policyholders account balances |
|
291.1 |
|
292.9 | ||
Other policyholders liabilities |
|
157.1 |
|
162.2 | ||
Other liabilities |
|
223.8 |
|
163.9 | ||
|
|
|
| |||
Total Closed Block liabilities |
$ |
7,557.5 |
$ |
7,488.8 | ||
|
|
|
|
For the three-month Periods Ended June 30, |
For the six-month Periods Ended June 30, | |||||||||||||
2002 |
2001 |
2002 |
2001 | |||||||||||
($ in millions) | ||||||||||||||
Revenues: |
||||||||||||||
Premiums |
$ |
127.6 |
|
$ |
138.2 |
$ |
248.0 |
|
$ |
267.5 | ||||
Net investment income |
|
98.5 |
|
|
99.1 |
|
196.7 |
|
|
199.0 | ||||
Net realized (losses)/gains on investments |
|
(1.8 |
) |
|
2.1 |
|
(2.9 |
) |
|
2.0 | ||||
Other income |
|
0.5 |
|
|
0.5 |
|
0.9 |
|
|
1.0 | ||||
|
|
|
|
|
|
|
|
|
| |||||
Total revenues |
|
224.8 |
|
|
239.9 |
|
442.7 |
|
|
469.5 | ||||
|
|
|
|
|
|
|
|
|
| |||||
Benefits and Expenses: |
||||||||||||||
Benefits to policyholders |
|
142.7 |
|
|
152.0 |
|
274.8 |
|
|
293.4 | ||||
Interest credited to policyholders account balances |
|
2.1 |
|
|
2.1 |
|
4.2 |
|
|
4.2 | ||||
Amortization of deferred policy acquisition cost |
|
12.5 |
|
|
11.0 |
|
24.2 |
|
|
32.2 | ||||
Dividends to policyholders |
|
56.0 |
|
|
59.9 |
|
116.2 |
|
|
113.4 | ||||
Other operating costs and expenses |
|
2.0 |
|
|
2.4 |
|
3.1 |
|
|
4.1 | ||||
|
|
|
|
|
|
|
|
|
| |||||
Total benefits and expenses |
|
215.3 |
|
|
227.4 |
|
422.5 |
|
|
447.3 | ||||
|
|
|
|
|
|
|
|
|
| |||||
Contribution from the Closed Block |
$ |
9.5 |
|
$ |
12.5 |
$ |
20.2 |
|
$ |
22.2 | ||||
|
|
|
|
|
|
|
|
|
|
Three-month Periods Ended June 30, |
Six-month Periods Ended June 30, |
||||||||||||
2002 |
2001 |
2002 |
2001 | ||||||||||
($ in millions except earnings per share amounts) | |||||||||||||
Reported net (loss) income |
$ |
(11.0 |
) |
$ |
22.3 |
$ |
3.3 |
$ |
35.6 | ||||
Add back: Goodwill amortization |
|
|
|
|
2.3 |
|
|
|
3.8 | ||||
|
|
|
|
|
|
|
|
| |||||
Adjusted net (loss) income |
$ |
(11.0 |
) |
$ |
24.6 |
$ |
3.3 |
$ |
39.4 | ||||
|
|
|
|
|
|
|
|
| |||||
Basic earnings per share: |
|||||||||||||
Reported net (loss) income |
$ |
(0.23 |
) |
$ |
0.45 |
$ |
0.07 |
$ |
0.73 | ||||
Goodwill amortization |
|
|
|
|
0.05 |
|
|
|
0.08 | ||||
|
|
|
|
|
|
|
|
| |||||
Adjusted net (loss) income |
$ |
(0.23 |
) |
$ |
0.50 |
$ |
0.07 |
$ |
0.81 | ||||
|
|
|
|
|
|
|
|
| |||||
Diluted earnings per share: |
|||||||||||||
Reported net (loss) income |
$ |
(0.23 |
) |
$ |
0.44 |
$ |
0.07 |
$ |
0.70 | ||||
Goodwill amortization |
|
|
|
|
0.05 |
|
|
|
0.08 | ||||
|
|
|
|
|
|
|
|
| |||||
Adjusted net (loss) income |
$ |
(0.23 |
) |
$ |
0.49 |
$ |
0.07 |
$ |
0.78 | ||||
|
|
|
|
|
|
|
|
|
Three-month Period Ended June 30, 2001 |
Six-month Period Ended June 30, 2001 | |||||
Protection Products |
$ |
0.4 |
$ |
0.5 | ||
Retail Brokerage and Investment Banking |
|
1.9 |
|
3.3 | ||
|
|
|
| |||
Total |
$ |
2.3 |
$ |
3.8 | ||
|
|
|
|
December 31, 2001 |
Payments/ Revisions to Estimates |
June 30, 2002 | ||||||||
Restructuring Charges Liability: |
||||||||||
Severance benefits |
$ |
8.1 |
$ |
(3.9 |
) |
$ |
4.2 | |||
Other reorganization charges |
|
4.5 |
|
(0.8 |
) |
|
3.7 | |||
|
|
|
|
|
|
| ||||
Total Restructuring Charges Liability |
$ |
12.6 |
$ |
(4.7 |
) |
$ |
7.9 | |||
|
|
|
|
|
|
|
· |
In accordance with GAAP, the amortization of deferred policy acquisition costs (DPAC) requires management to make assumptions about future
investment yields, contract charges, interest crediting rates, mortality rates, lapse rates, expense levels, and policy duration. In addition, GAAP requires that management must periodically evaluate the recoverability of DPAC based on historical
and projected future results. For
|
many of the Companys products, amortization of DPAC varies with profit margins of the policies and contracts supporting the DPAC balances. Changes in managements assumptions or actual
results that differ significantly from managements estimates may materially affect the Companys financial position and operating results. |
· |
As with DPAC, the provision of loss reserves on annuity products requires management to make assumptions regarding the ultimate profitability of such business.
The factors affecting the ultimate profitability that will be realized from such business include the yield from investments supporting the business, mortality rates, lapse rates, expense levels, policyholder dividends and policy duration. To the
extent that circumstances lead management to conclude that the business will not ultimately be profitable, the Company would be required to record its best estimate of such loss in the period such determination was made. While management believes
such a scenario is unlikely, a sustained deterioration in the securities markets will significantly impact such determination and, as a result, there can be no assurance that the Companys business will be profitable and such a determination
may materially affect the Companys financial position and operating results. |
· |
Certain of the Companys annuity products contain contractual provisions that guaranty minimum death benefits. These provisions require the Company to pay
the estate of a contract holder any excess of the guaranteed minimum benefit over the cash value of the annuity contract. Its the Companys practice to establish reserves for the payment of any guaranteed minimum death benefit claims
based on managements mortality expectations and the expected cash values of annuity contracts. At June 30, 2002, the Company carried a reserve of approximately $5.0 million with respect to such claims. While management believes that this
reserve is sufficient, there can be no assurance that additional reserves for such claims may not need to be established, particularly if there is a sustained or continuing deterioration in the securities markets. In addition, the American Institute
of Certified Public Accountants is deliberating the issuance of guidance concerning the establishment of such reserves. This guidance may require the Company to change the methodology it applies in determining the amount of reserves that should be
established for such claims. There can be no assurance that the Company wont have to establish additional reserves upon the adoption of any new guidance issued by the FASB. |
· |
As discussed above under the caption General Discussion of Factors Affecting Profitability, revenues from the Companys separate account and mutual
fund products depend, in large part, upon the amount of the Companys assets under management. Accordingly, a continuing or sustained deterioration in the securities
|
markets can adversely affect the Companys revenues and there can be no assurance that such affect wont be material to the Companys results of operations and financial condition.
|
· |
Management estimates that the cumulative impact from the matters discussed above on the earnings from the Companys Accumulation Product segment would
result in break even results for the balance of 2002 if securities market valuations remain at June 30, 2002 levels. However, if security valuations for the balance of the year remain at the lows experienced in July then management estimates that
the Accumulation Products segment will earn $8.5 million less in each of the 3rd and 4th quarters of 2002, as compared to the 2nd quarter of 2002. Approximately $5.0 million of the $8.5 million in each quarter results from the unlocking of assumptions underlying the
amortization of DPAC. |
· |
The carrying value of goodwill in the Companys Retail Brokerage and Investment Banking segment approximates $175.0 million at June 30, 2002. While
management, based on its long term outlook for these operations, has concluded that no impairment of such goodwill exists as of June 30, 2002, there can be no assurance that an impairment charge may not be necessary in the future if securities
market conditions worsen or there is a prolonged downturn in retail securities trading volumes. |
· |
As required under GAAP, the rate of return assumption for 2002 on assets funding the Companys pension liabilities was established at December 31, 2001.
This assumption was made by management based on the historic returns on such assets, managements outlook for future returns, and consideration of the long-term outlook for such returns in the marketplace. However, a continuation or worsening
of current securities market conditions may require management to lower the assumed rate of return assumption thereby causing an increase in net periodic pension expense. In addition, the deterioration of the securities markets during 2002 has
resulted in a decline in the fair market value of the assets funding the Companys pension obligations. If such values do not recover by the end of 2002 this may cause an increase in the Companys net periodic pension expense due to the
requirement under GAAP to amortize unrealized gains and losses through net periodic pension cost over a period of time. There can be no assurance that the impact of the aforementioned items, individually or in the aggregate, will not be material to
the Companys results of operations. |
· |
The Company has a portfolio of real estate invested assets which are classified as to be disposed of with a carrying value at June 30, 2002 of
$195.9 million. A hotel property located in Phoenix Arizona represents approximately $138.7 million, or 70.8%, of this portfolio at June 30, 2002. No other property in the portfolio exceeds 5.0% of the aggregate carrying value of the portfolio at
June 30, 2002. While the Company is actively engaged in trying to sell these properties, circumstances may require the reclassification of certain real estate assets as held for investment by year end. In the event that the Company is
required to reclassify these assets, particularly the Phoenix hotel property, it may be required to recognize a loss and the amount of the loss may be material to the Companys results of operations. |
· |
The Company makes investments in partnerships specializing in venture capital investing. The Companys investments are in the form of limited partnership
interests. As a percentage of its total invested assets, the Company generally limits these investments to no more than 2% to 3%. In accordance with GAAP, certain of the Companys investments in these partnerships are accounted for under the
equity method of accounting, while the balance of the portfolio is accounted for under the cost method. Generally, substantially all the Companys partnership investments acquired before May, 1995 are accounted for under the cost method of
accounting, while those acquired subsequent thereto are accounted for under the equity method of accounting. Because the underlying partnerships are required under GAAP to mark their investment portfolios to market and report changes in such market
value through their earnings, the Companys earnings will reflect its pro rata share of such mark to market adjustment if it accounts for the partnership investment under the equity
|
method. Under the cost method there will be no impact on the Companys earnings until: (i) the underlying investments held by the partnership are distributed to the Company, or (ii) the
underlying investments held by the partnership are sold by the partnership and the proceeds distributed to the Company, or (iii) an impairment of the Companys investment in the partnership is determined to exist. Historically, venture capital
investments owned by the Company have significantly impacted the Companys earnings. The Companys future earnings from its venture capital investments could be adversely affected when market valuations deteriorate and this affect could
materially affect the Company results of operations and financial position. |
· |
Presently there is a significant debate within industry, the accounting profession, and among securities analysts and regulators as to the propriety of the
current generally accepted accounting practice provided in Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (Opinion 25), which provides for the application of the intrinsic value based method
of accounting. For certain stock based compensation plans (including certain stock option plans), the guidance provided in Opinion No. 25 does not require companies to recognize compensation expense. Recently, many companies, in response to this
debate, have announced their intention to adopt the generally accepted accounting guidance prescribed under FASB No. 123, Accounting for Stock-Based Compensation, which provides for the application of the fair value based method of
accounting. In accordance with this method, all forms of employee stock-based compensation are measured at fair value at the date of grant and expensed over the requisite service or vesting period. If the Company adopts FASB No. 123, the adoption
may result in additional expense recognition and the amount may be material to its results of operations. |
For the Three-month Period Ended June 30, 2002 |
|||||||||||||||||||||||
Protection |
Accumulation |
Retail Brokerage and Investment Banking |
Other |
Reconciling |
Consolidated |
||||||||||||||||||
($ in millions) |
|||||||||||||||||||||||
Revenues: |
|||||||||||||||||||||||
Premiums |
$ |
164.5 |
|
$ |
3.3 |
|
$ |
|
$ |
2.1 |
|
$ |
|
|
$ |
169.9 |
| ||||||
Universal life and investment-type product policy fees |
|
39.8 |
|
|
12.6 |
|
|
|
|
0.1 |
|
|
|
|
|
52.5 |
| ||||||
Net investment income and realized losses on investments |
|
128.8 |
|
|
13.5 |
|
|
3.1 |
|
4.5 |
|
|
6.5 |
|
|
156.4 |
| ||||||
Group Pension Profits |
|
7.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
7.5 |
| ||||||
Retail Brokerage and Investment Banking revenues |
|
|
|
|
|
|
|
97.6 |
|
|
|
|
|
|
|
97.6 |
| ||||||
Other income |
|
(2.6 |
) |
|
25.8 |
|
|
1.0 |
|
3.8 |
|
|
1.3 |
|
|
29.3 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total revenue |
|
338.0 |
|
|
55.2 |
|
|
101.7 |
|
10.5 |
|
|
7.8 |
|
|
513.2 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and Expenses: |
|||||||||||||||||||||||
Benefits to policyholders |
|
183.5 |
|
|
12.4 |
|
|
|
|
1.7 |
|
|
1.9 |
|
|
199.5 |
| ||||||
Interest credited to policyholders account balances |
|
15.0 |
|
|
10.8 |
|
|
|
|
2.1 |
|
|
27.9 |
| |||||||||
Amortization of deferred policy acquisition costs |
|
30.2 |
|
|
7.8 |
|
|
|
|
|
|
|
|
|
|
38.0 |
| ||||||
Dividends to policyholders |
|
56.2 |
|
|
0.3 |
|
|
|
|
0.3 |
|
|
|
|
|
56.8 |
| ||||||
Other operating costs and expenses |
|
53.3 |
|
|
30.3 |
|
|
101.0 |
|
9.0 |
|
|
13.5 |
|
|
207.1 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total expense |
|
338.2 |
|
|
61.6 |
|
|
101.0 |
|
13.1 |
|
|
15.4 |
|
|
529.3 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
(Loss)/Income before income taxes |
$ |
(0.2 |
) |
$ |
(6.4 |
) |
$ |
0.7 |
$ |
(2.6 |
) |
$ |
(7.6 |
) |
|
(16.1 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax (benefit) |
|
(5.1 |
) | ||||||||||||||||||||
|
|
| |||||||||||||||||||||
Net Loss |
$ |
(11.0 |
) | ||||||||||||||||||||
|
|
|
For the Three-month Period Ended June 30, 2001 |
||||||||||||||||||||||||
Protection |
Accumulation |
Retail Brokerage and Investment Banking |
Other |
Reconciling |
Consolidated |
|||||||||||||||||||
($ in millions) |
||||||||||||||||||||||||
Revenues: |
||||||||||||||||||||||||
Premiums |
$ |
169.8 |
|
$ |
1.1 |
|
$ |
|
|
$ |
2.5 |
|
$ |
|
|
$ |
173.4 |
| ||||||
Universal life and investment-type product policy fees |
|
37.1 |
|
|
14.3 |
|
|
|
|
|
0.9 |
|
|
|
|
|
52.3 |
| ||||||
Net investment income and realized gains on investments |
|
153.6 |
|
|
20.3 |
|
|
2.1 |
|
|
7.3 |
|
|
9.2 |
|
|
192.5 |
| ||||||
Group Pension Profits |
|
9.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9.3 |
| ||||||
Retail Brokerage and Investment Banking revenues |
|
|
|
|
|
|
|
99.8 |
|
|
|
|
|
|
|
|
99.8 |
| ||||||
Other income |
|
8.6 |
|
|
27.0 |
|
|
|
|
|
4.1 |
|
|
2.0 |
|
|
41.7 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total revenue |
|
378.4 |
|
|
62.7 |
|
|
101.9 |
|
|
14.8 |
|
|
11.2 |
|
|
569.0 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and Expenses: |
||||||||||||||||||||||||
Benefits to policyholders |
|
184.1 |
|
|
6.0 |
|
|
|
|
|
2.4 |
|
|
2.0 |
|
|
194.5 |
| ||||||
Interest credited to policyholders balances |
|
14.6 |
|
|
10.3 |
|
|
|
|
|
2.1 |
|
|
|
|
|
27.0 |
| ||||||
Amortization of deferred policy acquisition costs |
|
24.3 |
|
|
4.0 |
|
|
|
|
|
|
|
|
|
|
|
28.3 |
| ||||||
Dividends to policyholders |
|
59.9 |
|
|
0.3 |
|
|
|
|
|
0.4 |
|
|
|
|
|
60.6 |
| ||||||
Other operating costs and expenses |
|
68.6 |
|
|
29.2 |
|
|
104.0 |
|
|
9.2 |
|
|
15.8 |
|
|
226.8 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total expense |
|
351.5 |
|
|
49.8 |
|
|
104.0 |
|
|
14.1 |
|
|
17.8 |
|
|
537.2 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income/(Loss) before income taxes |
$ |
26.9 |
|
$ |
12.9 |
|
$ |
(2.1 |
) |
$ |
0.7 |
|
$ |
(6.6 |
) |
|
31.8 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense |
|
9.5 |
| |||||||||||||||||||||
|
|
| ||||||||||||||||||||||
Net Income |
$ |
22.3 |
| |||||||||||||||||||||
|
|
|
For the Six-month Period Ended June 30, 2002 | |||||||||||||||||||||
Protection |
Accumulation |
Retail Brokerage and Investment Banking |
Other |
Reconciling |
Consolidated | ||||||||||||||||
($ in millions) | |||||||||||||||||||||
Revenues: |
|||||||||||||||||||||
Premiums |
$ |
324.9 |
$ |
4.8 |
$ |
|
|
$ |
4.6 |
|
$ |
|
|
$ |
334.3 | ||||||
Universal life and investment-type product policy fees |
|
75.5 |
|
24.7 |
|
|
|
|
1.3 |
|
|
|
|
|
101.5 | ||||||
Net investment income and realized losses on investments |
|
280.5 |
|
34.5 |
|
5.4 |
|
|
11.0 |
|
|
12.3 |
|
|
343.7 | ||||||
Group Pension Profits |
|
15.2 |
|
|
|
|
|
|
|
|
|
|
|
|
15.2 | ||||||
Retail Brokerage and Investment Banking revenues |
|
|
|
|
|
188.4 |
|
|
|
|
|
|
|
|
188.4 | ||||||
Other income |
|
3.2 |
|
51.6 |
|
1.0 |
|
|
8.8 |
|
|
2.9 |
|
|
67.5 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total revenue |
|
699.3 |
|
115.6 |
|
194.8 |
|
|
25.7 |
|
|
15.2 |
|
|
1,050.6 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and Expenses: |
|||||||||||||||||||||
Benefits to policyholders |
|
359.5 |
|
18.6 |
|
|
|
|
7.8 |
|
|
4.3 |
|
|
390.2 | ||||||
Interest credited to policyholders account balances |
|
30.4 |
|
21.2 |
|
|
|
|
4.3 |
|
|
(0.1 |
) |
|
55.8 | ||||||
Amortization of deferred policy acquisition costs |
|
57.1 |
|
13.7 |
|
|
|
|
|
|
|
|
|
|
70.8 | ||||||
Dividends to policyholders |
|
117.1 |
|
0.6 |
|
|
|
|
0.6 |
|
|
|
|
|
118.3 | ||||||
Other operating costs and expenses |
|
109.9 |
|
59.4 |
|
194.9 |
|
|
20.2 |
|
|
26.1 |
|
|
410.5 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total expense |
|
674.0 |
|
113.5 |
|
194.9 |
|
|
32.9 |
|
|
30.3 |
|
|
1,045.6 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income/(Loss) before income taxes |
$ |
25.3 |
$ |
2.1 |
$ |
(0.1 |
) |
$ |
(7.2 |
) |
$ |
(15.1 |
) |
|
5.0 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income tax expense |
|
1.7 | |||||||||||||||||||
|
| ||||||||||||||||||||
Net Income |
$ |
3.3 | |||||||||||||||||||
|
|
For the Six-month Period Ended June 30, 2001 | |||||||||||||||||||||
Protection |
Accumulation |
Retail Brokerage and Investment Banking |
Other |
Reconciling |
Consolidated | ||||||||||||||||
($ in millions) | |||||||||||||||||||||
Revenues: |
|||||||||||||||||||||
Premiums |
$ |
331.4 |
$ |
2.4 |
$ |
|
|
$ |
4.7 |
|
$ |
|
|
$ |
338.5 | ||||||
Universal life and investment-type product policy fees |
|
71.6 |
|
29.5 |
|
|
|
|
0.9 |
|
|
|
|
|
102.0 | ||||||
Net investment income and realized gains on investments |
|
303.5 |
|
40.5 |
|
2.9 |
|
|
13.3 |
|
|
18.5 |
|
|
378.7 | ||||||
Group Pension Profits |
|
19.2 |
|
|
|
|
|
|
|
|
|
|
|
|
19.2 | ||||||
Retail Brokerage and Investment Banking revenues |
|
|
|
|
|
170.9 |
|
|
|
|
|
|
|
|
170.9 | ||||||
Other income |
|
6.4 |
|
53.2 |
|
|
|
|
8.6 |
|
|
3.8 |
|
|
72.0 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total revenue |
|
732.1 |
|
125.6 |
|
173.8 |
|
|
27.5 |
|
|
22.3 |
|
|
1,081.3 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Benefits and Expenses: |
|||||||||||||||||||||
Benefits to policyholders |
|
367.3 |
|
11.8 |
|
|
|
|
8.3 |
|
|
4.8 |
|
|
392.2 | ||||||
Interest credited to policyholders balances |
|
30.1 |
|
20.6 |
|
|
|
|
4.6 |
|
|
|
|
|
55.3 | ||||||
Amortization of deferred policy acquisition costs |
|
55.2 |
|
10.3 |
|
|
|
|
|
|
|
|
|
|
65.5 | ||||||
Dividends to policyholders |
|
113.9 |
|
0.7 |
|
|
|
|
0.6 |
|
|
|
|
|
115.2 | ||||||
Other operating costs and expenses |
|
118.2 |
|
57.3 |
|
177.8 |
|
|
18.8 |
|
|
28.9 |
|
|
401.0 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total expense |
|
684.7 |
|
100.7 |
|
177.8 |
|
|
32.3 |
|
|
33.7 |
|
|
1,029.2 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Income/(Loss) before income taxes |
$ |
47.4 |
$ |
24.9 |
$ |
(4.0 |
) |
$ |
(4.8 |
) |
$ |
(11.4 |
) |
|
52.1 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income tax expense |
|
16.5 | |||||||||||||||||||
|
| ||||||||||||||||||||
Net Income |
$ |
35.6 | |||||||||||||||||||
|
|
For the Three-month Periods Ended June 30, |
||||||||
2002 |
2001 |
|||||||
($ in millions) |
||||||||
Individual Life: |
||||||||
Single Premiums |
$ |
32.4 |
|
$ |
36.2 |
| ||
New and Renewal Direct Premiums |
|
145.0 |
|
|
143.0 |
| ||
New and Renewal Premiums Ceded |
|
(12.8 |
) |
|
(9.1 |
) | ||
|
|
|
|
|
| |||
Total Individual Life |
|
164.6 |
|
|
170.1 |
| ||
Other: |
|
(0.1 |
) |
|
(0.3 |
) | ||
|
|
|
|
|
| |||
Total Protection Products |
$ |
164.5 |
|
$ |
169.8 |
| ||
|
|
|
|
|
|
For the Three-month Period Ended June 30, |
||||||||
2002 |
2001 |
|||||||
($ in millions) |
||||||||
Real estate |
$ |
(6.8 |
) |
$ |
(0.9 |
) | ||
Equity securities |
|
(4.4 |
) |
|
(3.7 |
) | ||
Fixed maturities |
|
(16.5 |
) |
|
2.8 |
| ||
Mortgage loans |
|
0.9 |
|
|
3.5 |
| ||
Other |
|
1.3 |
|
|
1.3 |
| ||
|
|
|
|
|
| |||
$ |
(25.5 |
) |
$ |
3.0 |
| |||
|
|
|
|
|
|
For the Six-month Periods Ended June 30, |
||||||||
2002 |
2001 |
|||||||
($ in millions) |
||||||||
Individual Life: |
||||||||
Single Premiums |
$ |
61.9 |
|
$ |
67.9 |
| ||
New and Renewal Direct Premiums |
|
284.1 |
|
|
280.8 |
| ||
New and Renewal Premiums Ceded |
|
(21.1 |
) |
|
(17.1 |
) | ||
|
|
|
|
|
| |||
Total Individual Life |
|
324.9 |
|
|
331.6 |
| ||
Other: |
|
|
|
|
(0.2 |
) | ||
|
|
|
|
|
| |||
Total Protection Products |
$ |
324.9 |
|
$ |
331.4 |
| ||
|
|
|
|
|
|
For the Six-month Periods Ended June 30, |
||||||||
2002 |
2001 |
|||||||
($ in millions) |
||||||||
Real estate |
$ |
(10.4 |
) |
$ |
(2.5 |
) | ||
Equity securities |
|
(5.5 |
) |
|
(5.3 |
) | ||
Fixed maturity securities |
|
(11.7 |
) |
|
7.5 |
| ||
Mortgage loans |
|
(1.6 |
) |
|
5.2 |
| ||
Other |
|
1.3 |
|
|
0.6 |
| ||
|
|
|
|
|
| |||
$ |
(27.9 |
) |
$ |
5.5 |
| |||
|
|
|
|
|
|
Three-Month Periods
Ended June 30, |
Six-Month Periods
Ended June 30, | |||||||||||
2002 |
2001 |
2002 |
2001 | |||||||||
($ in millions) | ||||||||||||
Protection Products |
||||||||||||
Career Agency System |
$ |
18.4 |
$ |
21.2 |
$ |
34.0 |
$ |
38.3 | ||||
U. S. Financial Life Insurance Company |
|
14.8 |
|
12.7 |
|
26.9 |
|
22.5 | ||||
Complementary Distribution(1) |
|
28.1 |
|
13.9 |
|
49.1 |
|
36.3 | ||||
|
|
|
|
|
|
|
| |||||
Total New Annualized Life Insurance Premiums |
$ |
61.3 |
$ |
47.8 |
$ |
110.0 |
$ |
97.1 | ||||
|
|
|
|
|
|
|
| |||||
Accumulation Products |
||||||||||||
Career Agency System Variable Annuities(2) |
$ |
132.0 |
$ |
102.0 |
$ |
232.0 |
$ |
174.0 | ||||
Career Agency System Mutual Funds |
|
65.0 |
|
100.0 |
|
139.0 |
|
216.0 | ||||
Third Party Distribution Mutual Funds |
|
270.0 |
|
256.0 |
|
540.0 |
|
505.0 | ||||
|
|
|
|
|
|
|
| |||||
Total Accumulation Sales |
$ |
467.0 |
$ |
458.0 |
$ |
911.0 |
$ |
895.0 | ||||
|
|
|
|
|
|
|
| |||||
Retail Brokerage & Investment Banking Revenues |
||||||||||||
Advest(3)(4) |
$ |
85.3 |
$ |
87.5 |
$ |
165.0 |
$ |
145.9 | ||||
MONY Securities Corp. |
|
11.8 |
|
12.1 |
|
22.6 |
|
23.1 | ||||
Matrix Capital Markets |
|
0.5 |
|
0.2 |
|
0.8 |
|
1.9 | ||||
|
|
|
|
|
|
|
| |||||
Total Accumulation Sales |
$ |
97.6 |
$ |
99.8 |
$ |
188.4 |
$ |
170.9 | ||||
|
|
|
|
|
|
|
|
(1) |
Amounts are primarily comprised of COLI cases. |
(2) |
Excludes sales associated with an exchange program offered by the Company wherein contract holders surrendered old FPVA contracts and reinvested the proceeds
therefrom in a new enhanced FPVA product offered by the Company. |
(3) |
Amounts presented for Advest are for the five-month period ended June 30, 2001. Advest was acquired on January 31, 2001 and accordingly, the Companys
consolidated results of operations include only the activity of Advest for the five-month period ended June 30, 2001. |
(4) |
Lebenthal, acquired by Advest in November 2001, accounts for $4.6 million and $10.0 million, respectively of Advests revenue for the three and six-month
periods ended June 30, 2002. |
As of June 30, 2002 |
As of June 30, 2001 | |||||
($ in billions) | ||||||
Assets under management: |
||||||
Individual variable annuities |
$ |
3.5 |
$ |
4.1 | ||
Individual fixed annuities |
|
0.7 |
|
0.7 | ||
Proprietary retail mutual funds |
|
4.0 |
|
4.5 | ||
|
|
|
| |||
$ |
8.2 |
$ |
9.3 | |||
|
|
|
|
For the Three-month Periods Ended June
30, |
For the Six-month Periods Ended June
30, |
|||||||||||||||
2002 |
2001 |
2002 |
2001 |
|||||||||||||
($ in billions) |
||||||||||||||||
Individual Variable Annuities: |
||||||||||||||||
Beginning account value |
$ |
3.9 |
|
$ |
3.9 |
|
$ |
3.9 |
|
$ |
4.4 |
| ||||
Sales(1) |
|
0.1 |
|
|
0.1 |
|
|
0.2 |
|
|
0.2 |
| ||||
Market appreciation |
|
(0.3 |
) |
|
0.2 |
|
|
(0.3 |
) |
|
(0.2 |
) | ||||
Surrenders and withdrawals(1) |
|
(0.2 |
) |
|
(0.1 |
) |
|
(0.3 |
) |
|
(0.3 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ending account value |
$ |
3.5 |
|
$ |
4.1 |
|
$ |
3.5 |
|
$ |
4.1 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Proprietary Retail Mutual Funds: |
||||||||||||||||
Beginning account value |
$ |
4.5 |
|
$ |
4.3 |
|
$ |
4.4 |
|
$ |
4.8 |
| ||||
Sales |
|
0.3 |
|
|
0.3 |
|
|
0.7 |
|
|
0.7 |
| ||||
Dividends reinvested |
|
0.1 |
|
|
0.1 |
|
|
0.1 |
|
|
0.1 |
| ||||
Market appreciation |
|
(0.5 |
) |
|
0.2 |
|
|
(0.6 |
) |
|
(0.5 |
) | ||||
Redemptions |
|
(0.4 |
) |
|
(0.4 |
) |
|
(0.6 |
) |
|
(0.6 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ending account value |
$ |
4.0 |
|
$ |
4.5 |
|
$ |
4.0 |
|
$ |
4.5 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Excludes sales and surrenders associated with an exchange program offered by the Company wherein contractholders surrendered old FPVA contracts and reinvested
the proceeds therefrom in a new enhanced FPVA product offered by the Company. |
Amount at June
30, 2002 |
Percent of Total |
Amount at December 31, 2001 |
Percent of Total |
|||||||||
($ in millions) |
||||||||||||
Not subject to discretionary withdrawal provisions |
$ |
1,149.9 |
19.9 |
% |
$ |
1,282.1 |
20.4 |
% | ||||
Subject to discretionary withdrawal with market value adjustment or at carrying value less surrender charge
|
|
3,592.1 |
62.1 |
|
|
3,946.9 |
62.8 |
| ||||
|
|
|
|
|
|
|
| |||||
Subtotal |
|
4,742.0 |
82.0 |
|
|
5,229.0 |
83.2 |
| ||||
Subject to discretionary withdrawal without adjustment at carrying value |
|
1,046.2 |
18.0 |
|
|
1,057.6 |
16.8 |
| ||||
|
|
|
|
|
|
|
| |||||
Total annuity reserves and deposit liabilities (gross) |
|
5,788.2 |
100.0 |
% |
|
6,286.6 |
100.0 |
% | ||||
|
| |||||||||||
Less reinsurance |
|
70.3 |
|
71.2 |
||||||||
|
|
|
|
|||||||||
Total annuity reserves and deposit liabilities (net) |
$ |
5,717.9 |
$ |
6,215.4 |
||||||||
|
|
|
|
For the Three-month Periods Ended June
30, |
For the Six-month Periods Ended June
30, | |||||||||||
2002 |
2001 |
2002 |
2001 | |||||||||
Product Line: |
||||||||||||
Tradition life |
$ |
84.4 |
$ |
89.7 |
$ |
167.0 |
$ |
187.5 | ||||
Variable and universal life |
|
12.2 |
|
14.2 |
|
31.1 |
|
42.9 | ||||
Annuities(1)(3) |
|
117.8 |
|
117.0 |
|
219.6 |
|
251.5 | ||||
Pensions(2) |
|
16.6 |
|
15.1 |
|
31.0 |
|
48.8 | ||||
|
|
|
|
|
|
|
| |||||
Total |
$ |
231.0 |
$ |
236.0 |
$ |
448.7 |
$ |
530.7 | ||||
|
|
|
|
|
|
|
|
(1) |
Excludes approximately $16.4 million and $71.1 million for the three months ended June 30, 2002 and 2001, respectively, and $33.3 million and $142.3 million for
the six months ended June 30, 2002 and 2001, respectively, relating to surrenders associated with an exchange program offered by MONY Life wherein contract holders surrendered old FPVA contracts and reinvested the proceeds in a new enhanced FPVA
product offered by MONY Life. |
(2) |
Excludes transfers between funds within the MONY Life benefit plans. |
(3) |
Includes reclassification of approximately $32.3 million and $37.6 million for the three month discreet period ending June 30, 2002 and 2001, respectively, and
$60.7 million and $76.3 million for the six months ended June 30, 2002 and 2001, respectively, for Separate Accounts Deposit Type contract withdrawals. |
As of June 30,
2002 |
As of December 31, 2001 |
|||||||||||
Carrying Value |
% of Total |
Carrying Value |
% of Total |
|||||||||
($ in millions) |
||||||||||||
Invested Assets |
||||||||||||
Fixed Maturities, available-for-sale, at fair value |
$ |
7,406.4 |
64.3 |
% |
$ |
6,976.1 |
62.8 |
% | ||||
Equity Securities, available-for-sale, at fair value |
|
288.1 |
2.5 |
|
|
299.2 |
2.7 |
| ||||
Mortgage loans on real estate |
|
1,757.8 |
15.3 |
|
|
1,809.7 |
16.3 |
| ||||
Policy loans |
|
1,212.0 |
10.5 |
|
|
1,229.0 |
11.1 |
| ||||
Other invested assets |
|
363.4 |
3.1 |
|
|
347.5 |
3.1 |
| ||||
Cash and equivalents |
|
494.3 |
4.3 |
|
|
441.0 |
4.0 |
| ||||
|
|
|
|
|
|
|
| |||||
Invested assets, excluding trading securities |
$ |
11,522.0 |
100.0 |
% |
$ |
11,102.5 |
100.0 |
% | ||||
|
|
|
|
|
|
|
|
Three months ended June
30, |
Six-months ended June 30, |
|||||||||||
2002 |
2001 |
2002 |
2000 |
|||||||||
Fixed Maturity Securities |
7.1 |
% |
7.4 |
% |
7.1 |
% |
7.5 |
% | ||||
Equity securities(1) |
(6.2 |
) |
7.9 |
|
0.9 |
|
1.1 |
| ||||
Mortgage loans on real estate |
8.0 |
|
7.9 |
|
7.8 |
|
7.9 |
| ||||
Policy loans |
7.0 |
|
6.7 |
|
7.0 |
|
6.8 |
| ||||
Real estate |
6.2 |
|
8.4 |
|
9.3 |
|
7.7 |
| ||||
Cash and cash equivalents |
2.0 |
|
4.7 |
|
2.0 |
|
4.3 |
| ||||
Other invested assets |
18.4 |
|
7.8 |
|
14.9 |
|
5.2 |
| ||||
Total invested assets before investment expenses |
6.8 |
% |
7.2 |
% |
7.0 |
|
7.1 |
% | ||||
Investment expenses |
(0.3 |
) |
(0.3 |
) |
(0.3 |
) |
(0.4 |
) | ||||
|
|
|
|
|
|
|
| |||||
Total invested assets after investment expenses(1) |
6.5 |
% |
6.9 |
% |
6.7 |
% |
6.7 |
% | ||||
|
|
|
|
|
|
|
|
(1) |
The decrease in net investment income yields was primarily due to a decrease in limited partnership income included in the equity securities asset category of
$(10.9) million for the three-month period ended June 30, 2002. The net investment income yields excluding the limited partnership income are 6.8% and 6.9% for the three-month periods ended June 30, 2002 and 2001, respectively, and 6.8% and 6.9% for
the six-month periods ending June 30, 2002 and 2001, respectively. |
As of June 30,
2002 |
As of December 31,
2001 | |||||||||||||||||||
NAIC Rating |
Rating Agency Equivalent Designation |
Amortized Cost |
% of Total |
Estimated Fair Value |
Amortized Cost |
% of Total |
Estimated Fair Value | |||||||||||||
($ in millions) | ||||||||||||||||||||
1 |
Aaa/Aa/A |
$ |
4,146.6 |
58.2 |
% |
$ |
4,310.6 |
$ |
3,807.8 |
56.2 |
% |
$ |
3,920.1 | |||||||
2 |
Baa |
|
2,419.3 |
33.8 |
% |
|
2,501.0 |
|
2,390.2 |
34.8 |
% |
|
2,430.7 | |||||||
3 |
Ba |
|
421.1 |
5.6 |
% |
|
411.2 |
|
432.5 |
6.1 |
% |
|
424.6 | |||||||
4 |
B |
|
72.7 |
1.0 |
% |
|
74.0 |
|
101.1 |
1.5 |
% |
|
102.8 | |||||||
5 |
Caa and lower |
|
17.6 |
0.2 |
% |
|
18.6 |
|
35.7 |
0.5 |
% |
|
33.6 | |||||||
6 |
In or near default |
|
35.8 |
0.4 |
% |
|
33.4 |
|
6.3 |
0.1 |
% |
|
7.6 | |||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Subtotal |
|
7,113.1 |
99.2 |
% |
|
7,348.8 |
|
6,773.6 |
99.2 |
% |
|
6,919.4 | ||||||||
Redeemable preferred stock |
|
55.6 |
0.8 |
% |
|
57.6 |
|
55.6 |
0.8 |
% |
|
56.7 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Total Fixed Maturities |
$ |
7,168.7 |
100.0 |
% |
$ |
7,406.4 |
$ |
6,829.2 |
100.0 |
% |
$ |
6,976.1 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, 2002 |
As of December 31, 2001 | |||||
($ in millions) | ||||||
CMOs |
$ |
381.0 |
$ |
449.2 | ||
Pass-through securities |
|
127.1 |
|
22.0 | ||
Commercial MBSs |
|
142.0 |
|
135.4 | ||
Asset-backed securities |
|
486.5 |
|
481.4 | ||
|
|
|
| |||
Total MBSs and asset-backed securities |
$ |
1,136.6 |
$ |
1,088.0 | ||
|
|
|
|
As of June 30,
2002 |
As of December 31,
2001 | |||||||||||
Amortized Cost |
Estimated Fair Value |
Amortized Cost |
Estimated Fair Value | |||||||||
($ in millions) | ||||||||||||
Due in one year or less |
$ |
450.9 |
$ |
457.5 |
$ |
346.1 |
$ |
354.9 | ||||
Due after one year through five years |
|
2,074.7 |
|
2,159.2 |
|
1,996.8 |
|
2,071.2 | ||||
Due after five years through ten years |
|
2,555.4 |
|
2,656.3 |
|
2,480.2 |
|
2,527.4 | ||||
Due after ten years |
|
984.5 |
|
996.8 |
|
939.0 |
|
934.6 | ||||
|
|
|
|
|
|
|
| |||||
Subtotal |
|
6,065.5 |
|
6,269.8 |
|
5,762.1 |
|
5,888.1 | ||||
Mortgage-backed and other asset-backed securities |
|
1,103.2 |
|
1,136.6 |
|
1,067.1 |
|
1,088.0 | ||||
|
|
|
|
|
|
|
| |||||
Total |
$ |
7,168.7 |
$ |
7,406.4 |
$ |
6,829.2 |
$ |
6,976.1 | ||||
|
|
|
|
|
|
|
|
Other Invested Assets | ||||||
June 30, 2002 |
December 31, 2001 | |||||
($ in millions) | ||||||
Real estate |
$ |
241.2 |
$ |
230.8 | ||
Mezzanine real estate loans |
|
39.2 |
|
46.7 | ||
Partnership equities |
|
45.5 |
|
39.4 | ||
Receivables |
|
17.0 |
|
16.9 | ||
Other |
|
20.5 |
|
13.7 | ||
|
|
|
| |||
$ |
363.4 |
$ |
347.5 | |||
|
|
|
|
As of June 30, 2002 |
As of December 31, 2001 |
|||||||||||
($ in millions) |
||||||||||||
Information technology |
$ |
107.9 |
48.4 |
% |
$ |
107.5 |
46.8 |
% | ||||
Domestic LBO |
|
51.7 |
23.2 |
|
|
50.4 |
22.0 |
| ||||
Life sciences |
|
15.3 |
6.9 |
|
|
20.0 |
8.7 |
| ||||
Telecommunications |
|
3.7 |
1.6 |
|
|
8.6 |
3.7 |
| ||||
International LBO |
|
14.4 |
6.5 |
|
|
14.0 |
6.1 |
| ||||
Merchant banking |
|
20.9 |
9.4 |
|
|
11.9 |
5.2 |
| ||||
Other |
|
8.8 |
4.0 |
|
|
17.3 |
7.5 |
| ||||
|
|
|
|
|
|
|
| |||||
Total venture capital partnership investments by sector |
$ |
222.7 |
100.0 |
% |
$ |
229.7 |
100 |
% | ||||
|
|
|
|
|
|
|
|
As of June 30, 2002 |
As of December 31, 2001 | |||||||||||||||||
Impairment Adjustments |
Valuation Allowances |
Total |
Impairment Adjustments |
Valuation Allowances |
Total | |||||||||||||
($ in millions) | ||||||||||||||||||
Fixed maturities |
$ |
54.7 |
$ |
|
$ |
54.7 |
$ |
48.2 |
$ |
|
$ |
48.2 | ||||||
Equity securities |
|
6.6 |
|
|
|
6.6 |
|
2.6 |
|
|
|
2.6 | ||||||
Mortgages |
|
11.1 |
|
20.8 |
|
31.9 |
|
11.1 |
|
28.4 |
|
39.5 | ||||||
Real estate(1) |
|
11.0 |
|
4.1 |
|
15.1 |
|
14.4 |
|
0.8 |
|
15.2 | ||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
$ |
83.4 |
$ |
24.9 |
$ |
108.3 |
$ |
76.3 |
$ |
29.2 |
$ |
105.5 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes $2.9 million and $5.9 million at June 30, 2002 and December 31, 2001, respectively, relating to impairments taken upon foreclosure of mortgage loans.
|
Name of Director |
Votes For |
Votes Against | ||
G. Robert Durham |
26,079,077 |
1,420,670 | ||
James L. Johnson |
26,232,306 |
1,267,441 | ||
Frederick W. Kanner |
26,049,628 |
1,450,119 | ||
Kenneth M. Levine |
26,266,613 |
1,233,134 | ||
David M. Thomas |
26,255,484 |
1,244,263 |
Votes For |
Votes Against |
Abstentions | ||
26,092,231 |
1,149,598 |
257,918 |
Votes For |
Votes Against |
Abstentions | ||
21,023,847 |
5,697,273 |
778,627 |
Votes For |
Votes Against |
Abstentions | ||
21,090,757 |
5,640,753 |
768,237 |
Votes For |
Votes Against |
Abstentions | ||
17,713,263 |
5,012,921 |
671,539 |
10.1 |
The MONY Group Inc. 2002 Annual Incentive Plan for Senior Executive Officers.(1) |
10.2 |
The MONY Group Inc. 2002 Long Term Performance Plan for Senior Executive Officers.(1) |
10.3 |
The MONY Group Inc. 2002 Stock Option Plan.(1) |
10.4 |
Series A Floating Rate Insured Notes Indenture among MONY Holdings, LLC, Ambac Assurance Corporation, The MONY Group Inc. and Bank One Trust Company, N.A., as
Trustee.* |
10.5 |
Form of Series A Floating Rate Insured Global Note.* |
10.6 |
Insurance Agreement dated as of April 30, 2002 among Ambac Assurance Corporation, MONY Holdings, LLC, The MONY Group Inc., MONY Life Insurance Company and Bank
One Trust Company, N.A., as Indenture Trustee.* |
10.7 |
Exchange and Registration Rights Agreement, dated April 30, 2002 by and among MONY Holdings, LLC and the Purchasers.* |
(1) |
Current Report on Form 8-K filed with SEC on April 30, 2002 (responding to Items 5 and 7 of Form 8-K). |
(2) |
Current Report on Form 8-K filed with SEC on May 7, 2002 (responding to Items 5, 7 and 9 of Form 8-K). |
* |
Filed herewith |
(1) |
Incorporated herein by reference to Exhibit A, B, C to the Registrants Proxy Statement included in Schedule 14A filed with the Commission on March 29,
2002. |
THE MONY GROUP INC. | ||
By: |
/s/ RICHARD
DADDARIO | |
Richard Daddario Executive Vice
President and Chief Financial Officer (Authorized Signatory
and Principal Financial Officer) |
By: |
/s/ ARNOLD
BROUSELL | |
Arnold Brousell Vice
PresidentFinancial Reporting and Chief Accounting Officer |