-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SRDQiykHNPYakfUK7KM1K2cIi4ogJHFARr9JJkJQL5UNoO1/AW3SthrWH87Mvvzp R3DQTroVBhSRgnrr32Yb9A== 0000950109-01-502633.txt : 20010808 0000950109-01-502633.hdr.sgml : 20010808 ACCESSION NUMBER: 0000950109-01-502633 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010807 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20010807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONY GROUP INC CENTRAL INDEX KEY: 0001069822 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 133976138 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14603 FILM NUMBER: 1699510 BUSINESS ADDRESS: STREET 1: 1740 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127082000 8-K 1 d8k.txt FORM 8-K ================================================================================ 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) - August 7, 2001 --------------- THE MONY GROUP INC. (Exact name of registrant as specified in its charter) DELAWARE 1-14603 13-3976138 (State or other jurisdiction of (Commission File Number) (IRS Employer Incorporation) Identification No.) 1740 Broadway 10019 New York, New York (Zip Code) (Address of principal executive offices) (212) 708-2000 (Registrant's telephone number, including area code) --------------- N/A (Former name or address, if changed since last report) ================================================================================ Item 5. Other Events. On August 7, 2001, The MONY Group Inc. issued a News Release reporting its financial results for the second quarter of 2001. A copy of the News Release is filed herewith as Exhibit 99.1 and is incorporated in this Item 5 by reference thereto. Item 7. Financial Statements and Exhibits. (a) Not applicable. (b) Not applicable. (c) Exhibits. 99.1 News Release of The MONY Group Inc., dated August 7, 2001. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three and Six-Month Periods Ended June 30, 2001 and 2000." Item 9. Regulation FD Disclosure. The material attached hereto as Exhibit 99.2, which is incorporated in this Item 9 by reference thereto, is furnished pursuant to Regulation FD. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, The MONY Group Inc. has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. THE MONY GROUP INC. By: /s/ Richard Daddario -------------------------------- Richard Daddario Executive Vice President and Chief Financial Officer Date: August 7, 2001 Exhibit Index 99.1 News Release of The MONY Group Inc., dated August 7, 2001. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the News Three and Six-Month Periods Ended June 30, 2001 and 2000." EX-99.1 3 dex991.txt NEWS RELEASE OF THE MONY GROUP INC. Exhibit 99.1 The MONY Group Inc. News Release 1740 Broadway MEDIA CONTACTS: [LOGO OF MONY] New York, NY 10019 Doug Myers 212 708 2472 212 708 2472 Christopher Breslin 212 708 2435 212 708 2399 Fax INVESTOR CONTACT: Jay Davis 212 708 2917 The MONY Group Reports $0.43 Per Share In Operating Income for the Second Quarter Company Provides Guidance for Remainder of 2001 and 2002 NEW YORK (August 7, 2001) - The MONY Group Inc. (NYSE: MNY) today reported operating income excluding venture capital for the second quarter of 2001 of $17.6 million or $0.35 per share. Including a $4.1 million or $0.08 per share after tax gain from the company's venture capital portfolio, second quarter operating income was $21.7 million or $0.43 per share. For the comparable 2000 period, operating income excluding venture capital was $24.7 million or $0.52 per share. Including $26.3 million or $0.55 per share in income from the company's venture capital portfolio, operating income was $51.0 million or $1.07 per share. Net income for the quarter ended June 30, 2001 was $22.3 million or $0.44 per share. Net income was $48.1 million or $1.01 per share for the quarter ended June 30, 2000, and included $2.9 million or $0.06 per share of net realized losses on investments after tax. For the second quarter, MONY had approximately 51 million weighted-average shares outstanding, representing a 3.4 million increase from the prior year period primarily due to the company's acquisition of Advest. "Market conditions and an uncertain economic environment continued to affect the demand for our equity-based products and services and consequently, our earnings," said Michael I. Roth, chairman and CEO, The MONY Group Inc. "As we announced in May, we are acting on a number of initiatives to help reposition our businesses and reduce expenses by $35 million," said Mr. Roth. "For example, Advest, our main retail brokerage subsidiary, announced a plan during the quarter to outsource its back-office processing operations, which will result in cost savings of $12 million." "In addition, we are implementing plans for other businesses that will leverage the distribution and manufacturing capacity of our entire organization," continued Mr. Roth. "We will improve operating efficiencies and increase profitability by refocusing our career network and allocating resources and capital to higher-performing businesses." 1 The company's 2001 operating income is expected to be approximately $1.30 per share, including venture capital income of $0.15 per share and excluding an expected restructuring charge of at least $50 million related to the company's $35 million expense savings initiative. The company currently has approximately $10 million of pretax gains related to its equity partnership investments that may be realized in the future but are subject to market fluctuations. For 2002, MONY expects operating income to increase approximately 30 percent to $1.50 per share. In addition to reflecting improvements in the company's operating efficiencies and goodwill amortization, this estimate assumes a modest appreciation in the equity markets and excludes any operating income from the company's venture capital portfolio. First-Half Results - ------------------ Operating income excluding venture capital was $32.4 million or $0.64 per share for the six months ended June 30, 2001. Including a $1 million or $0.02 per share after tax gain from the company's venture capital portfolio, operating income for the six months ended June 30, 2001 was $33.4 million or $0.66 per share. For the six month period ended June 30, 2000, operating income excluding venture capital was $47.7 million or $1.00 per share. Including $127.5 million or $2.68 per share after tax gain from the company's equity partnership portfolio, operating income for the six month period ended June 30, 2000 was $175.2 million or $3.68 per share. Net income for the six months ended June 30, 2001 was $35.6 million or $0.70 per share compared with $149.3 million or $3.14 per share for the comparable period in 2000. 2 An earnings summary is as follows: ($ million except share data and per share amount)
Three Months Three Months Six Months Six Months Ended June 30, Ended June 30, Ended June 30, Ended June 30, 2001 2000 2001 2000 Operating Income excluding Venture Capital $ 17.6 $ 24.7 $ 32.4 $ 47.7 Venture Capital Income 4.1 26.3 1.0 127.5 ---------- ---------- ---------- ---------- Operating Income 21.7 51.0 33.4 175.2 Realized gains/(losses)from Investments 0.6 (2.9) 2.2 10.8 Extraordinary Item - Net - - - (36.7) ---------- ---------- ---------- ---------- Net Income $ 22.3 $ 48.1 $ 35.6 $ 149.3 ========== ========== ========== ========== Diluted Per Share Amounts: Operating Income Before Venture Capital $ 0.35 $ 0.52 $ 0.64 $ 1.00 Venture Capital Income 0.08 0.55 0.02 2.68 ---------- ---------- ---------- ---------- Operating Income 0.43 1.07 0.66 3.68 Realized gains/(losses) from investments 0.01 (0.06) 0.04 0.23 Extraordinary - Net - - - (0.77) ---------- ---------- ---------- ---------- Net Income $ 0.44 $ 1.01 $ 0.70 $ 3.14 ========== ========== ========== ========== Share Data: Weighted-average shares outstanding 49,363,512 46,528,902 49,044,496 46,812,447 Plus: Incremental shares from assumed conversion of dilutive securities 1,549,587 1,020,958 1,580,133 783,395 ---------- ---------- ---------- ---------- Weighted-average shares used in diluted per-share calculations 50,913,099 47,549,860 50,624,629 47,595,842 ========== ========== ========== ==========
3 Second quarter highlights include: . As of June 30, 2001, book value was $42.55 per share (excluding accumulated comprehensive income). . As part of the company's continuing efforts to build shareholder value, MONY's Board of Directors approved a plan to repurchase up to an additional 5 percent or approximately 2.5 million of the outstanding common shares of the company. As of August 3, the company had repurchased approximately 92 percent of the 2.4 million shares authorized through the company's first stock repurchase program at an average share price of $33. . The company's equity partnerships generated $6.3 million of pre-tax operating income ($4.1 million or $0.08 per share after tax) in the second quarter of 2001 and $1.5 million of pre-tax operating income ($1 million or $0.02 per share after tax) in the first half of 2001. . In a move to enhance the service capabilities provided by its financial advisors, Advest, a subsidiary of The MONY Group, announced its plan to outsource a majority of its brokerage processing operations. These efforts will result in annualized savings of approximately $12 million beginning in 2002 and are part of initiatives announced by MONY on May 8 to create annualized savings of $35 million. . Despite volatile market conditions, The Enterprise Group of Funds, MONY's mutual fund family, had net inflows of $53 million during the quarter and $121 million during the first half of the year. . In order to take advantage of market opportunities and continue to provide retail investors with access to institutional advisors, The Enterprise Group of Funds announced three new funds during the quarter. Enterprise launched the New Enterprise Deep Value Fund subadvised by Wellington Management. Enterprise also announced the registration of two new funds that will be launched at the end of August: Enterprise Strategic Allocation Fund, managed by Brinson Advisors, a member of UBS Asset Management, and the Enterprise Total Return Fund to be managed by PIMCO. . Enterprise launched a Dublin-based mutual fund company, Enterprise Global Funds plc, that will initially offer eight mutual funds to investors in Europe, South America and Asia. These funds will be managed by leading institutional investment money managers. . During the quarter, MONY Life Insurance Company of America, a subsidiary of The MONY Group, introduced a new, competitively priced custom universal life (UL) insurance product. A non-variable product, it expands the company's portfolio of protection products. 4 Business Segments Protection Segment - ------------------ Through its protection segment, The MONY Group sells a wide range of life insurance products (including whole, term, universal, variable universal, survivorship universal, last survivor variable universal, and group universal life) to higher-income individuals, particularly small business owners, family builders and pre-retirees as well as corporations. Total new annualized and single life insurance premiums for the second quarter of 2001 were $47.8 million, compared with $56.8 million during the second quarter of 2000. Recurring premium sales, which represent revenue from policies that can produce renewable business, increased to $28.4 million during the quarter, compared to $23.8 million for the second quarter of 2000. U.S. Financial Life Insurance Company (USFL) sales were $12.7 million for the second quarter, compared to $11.2 million during the comparable 2000 period due to an increase in universal life sales. New life insurance premiums (first-year and single premiums) sold through the career network remained steady for the quarter at $21.2 million compared to $23 million for the comparable period. New life insurance premiums increased 24 percent from the first quarter of 2001 compared to a 14 percent increase during the same period last year. Sales of COLI and BOLI were $13 million, compared with $21 million during the second quarter of 2000. The decrease in sales reflects an increase in competition in the marketplace. In addition, corporate sales are large-premium cases, which typically generate revenues that can fluctuate considerably from quarter-to-quarter. During the quarter, MONY Independent Network (MIN) increased the size of its network to a total of 88 brokerage general agencies and broker/dealers selling MONY life insurance products. Through these agreements, MONY now has access to 190 locations, representing approximately 15,000 active producers. Accumulation Segment - -------------------- The MONY Group provides variable annuities and proprietary retail mutual funds through its career network, member companies and third-party broker-dealers. Due to appreciation in the equity markets, accumulation assets under management rose 4.5 percent to $9.3 billion as of June 30, 2001 from $8.9 billion as of March 31, 2001. Assets under management are still below $9.9 billion as of December 31, 2000 and $10.6 billion as of June 30, 2000. New accumulation assets raised in the 2001 second quarter were up 5 percent from the first quarter of 2001 to $458 million. Second quarter 2000 sales were $599 million. 5 The Enterprise Group of Funds had second quarter sales of $356 million, $256 million of which were sold by third-party broker-dealers and $100 million were sold through The MONY Group's career network. Comparably, second quarter 2000 sales for Enterprise were $483 million, $314 million of which were from third-party broker dealers and $169 million from the career network. The company's mutual fund business continued to experience net inflows during the period. Net inflows were $53 million and $121 million for the quarter and first half of the year, respectively. Annuity sales were $102 million during the second quarter of 2001 compared to $116 million during the second quarter of 2000. Retail Brokerage & Investment Banking - ------------------------------------- The Retail Brokerage and Investment Banking segment includes securities brokerage, trading, investment banking, trust and asset management services to high-net worth individuals and small to mid-size business owner clients through MONY's Advest, Matrix Capital Markets and MONY Securities Corp. subsidiaries. The Retail Brokerage and Investment Banking segment, formed during the first quarter of 2001, had revenues of $99.8 million for the quarter. Reflecting the trends in the industry, market volatility and a decrease in trading volume adversely affected revenue at Advest and MONY Securities Corporation. Advest revenues were $87.5 million for the second quarter of 2001, compared to $98.4 million for the second quarter of 2000. Revenues from Advest's private client group were $46 million for the quarter ended June 30, compared to $56.3 million for the same period in 2000. Advest's private client group includes the retail sale of equities, asset management products, fixed income products and annuities to individual investors through Advest financial advisors. For the quarter ended June 30, 2001, MONY Securities Corp., a registered securities broker-dealer for MONY's career network, posted revenues of $12.1 million, compared with $16 million during the comparable 2000 quarter. Business Focus - -------------- "While we are operating in a difficult environment, we are working hard to reposition our business and to continue to deploy capital effectively," commented Mr. Roth. "Our efforts will result in lowered costs and higher profitability. In the end, our businesses will improve operating efficiencies, more effectively leverage technology and be more aligned with our target markets. At the corporate level, we will be able to more effectively allocate resources to take advantage of future growth opportunities within our different businesses." 6 Forward Looking Statements This release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including all statements relating to MONY's expected results for 2001 and 2002, and the expected savings. There are a number of uncertainties and risks that could cause actual results to differ materially from our expectations, including those described in the company's filings with the Securities and Exchange Commission. Among other things, movements in the equity markets could affect investment results, the fees earned from assets under management and the demand for variable products; actual death claims experience could differ from our mortality assumptions, and MONY may realize savings that are more or less than expected, as the company's action plans are finalized. The company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. About The MONY Group Inc. The MONY Group Inc. (NYSE: MNY), with approximately $55 billion in assets under management and administration, provides life insurance, annuities, mutual funds, brokerage, asset management, business & estate planning, trust and investment banking products and services to individual and institutional clients through several member companies. The MONY Group focuses primarily on offering customized financial solutions through multiple distribution channels, including a career network, brokerage general agencies, financial advisors, brokers, and other complementary channels. The MONY Group's (www.mony.com) member companies include The Advest Group, Inc., MONY Life Insurance Company, MONY Life Insurance Company of America, Matrix Capital Markets Group Inc., Enterprise Capital Management, Inc., U.S. Financial Life Insurance Company, MONY Securities Corporation and Trusted Securities Advisors Corp. Note: The MONY Group Inc. will host a conference call to discuss 2Q 2001 financial results at 9:00 am on Tuesday, August 7, 2001. The call can be heard via the Investor Relations link at www.mony.com. ------------ 7 SUPPLEMENTAL FINANCIAL INFORMATION To assist interested parties in analyzing the Company's consolidated financial results attached is the following supplemental information: Exhibit I presents certain summary consolidated income statement data of The MONY Group for the three-month and six-month periods ended June 30, 2001 and 2000. Exhibit II presents certain summary consolidated balance sheet data as of June 30, 2001. Exhibit III presents information regarding new business generated by the Company for the three-month and six-month periods ended June 30, 2001 and 2000. 8 Exhibit I THE MONY GROUP INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT
($ in millions, except share data and per Three Months Ended Six Months Ended share amounts) June 30, June 30, 2001 2000 2001 2000 Revenues: Premiums $ 173.4 $ 176.5 $ 338.5 $ 341.5 Universal life and investment-type product policy fees 52.3 55.9 102.0 105.8 Net investment income 189.5 229.5 373.2 581.3 Net realized gains (losses) on investments 3.0 (8.9) 5.5 9.7 Group Pension Profits 9.3 8.1 19.2 18.2 Retail brokerage and investment banking 99.8 16.0 170.9 34.4 Other income 41.7 46.1 72.0 87.3 ------------- ------------- ------------ ----------- 569.0 523.2 1,081.3 1,178.2 Benefits and Expenses: Benefits to policyholders 194.5 202.4 392.2 383.1 Interest credited to policyholders' account balances 27.0 25.8 55.3 54.2 Amortization of deferred policy acquisition costs 28.3 37.2 65.5 74.7 Dividends to policyholders 60.6 52.7 115.2 109.9 Other operating costs and expenses 226.8 133.6 401.0 272.6 ------------- ------------- ------------ ----------- 537.2 451.7 1,029.2 894.5 Income before income taxes and extraordinary item 31.8 71.5 52.1 283.7 Income tax expense 9.5 23.4 16.5 97.7 ------------- ------------- ------------ ----------- Income before extraordinary item 22.3 48.1 35.6 186.0 Extraordinary item, net - - (36.7) ------------ ------------ ----------- ---------- Net income $ 22.3 $ 48.1 $ 35.6 $ 149.3 ============ ============ =========== ========== Operating Income: Net income $ 22.3 $ 48.1 $ 35.6 $ 149.3 Less: Net realized gains (losses) on investments (after tax) excluding closed block 0.6 (2.9) 2.2 10.8 Extraordinary items - - - (36.7) ------------- ------------- ------------ ----------- Operating income $ 21.7 $ 51.0 $ 33.4 $ 175.2 ============= ============= ============ =========== Per Share Amounts (diluted): Diluted Operating Income $ 0.43 $ 1.07 $ 0.66 $ 3.68 Diluted Net Income Before Extraordinary Item $ 0.44 $ 1.01 $ 0.70 $ 3.91 Diluted Net Income $ 0.44 $ 1.01 $ 0.70 $ 3.14 Share Data: Weighted-average Shares Outstanding 49,363,512 46,528,902 49,044,496 46,812,447 Plus: Incremental Shares from Assumed Conversion of Diluted Securities 1,549,587 1,020,958 1,580,133 783,395 ------------- ------------- ------------ ----------- Weighted-average Shares Used in Diluted Per Share Calculations 50,913,099 47,549,860 50,624,629 47,595,842 ============= ============= ============ ===========
9 Exhibit II SUMMARY CONSOLIDATED BALANCE SHEET DATA Consolidated Balance Sheet Data: As of June 30, ($ in millions, except per share amounts) 2001 Invested assets (including cash and cash equivalents) $ 11,639.0 Assets transferred in Group Pension Transaction 4,824.9 Separate account assets 5,448.0 Other assets 4,172.9 --------------- Total assets $ 26,084.8 =============== Policyholders' liabilities $ 10,339.6 Liabilities transferred in Group Pension Transaction 4,790.4 Separate account liabilities 5,445.3 Short-term debt 399.7 Long-term debt 585.3 Other liabilities 2,339.8 --------------- Total liabilities $ 23,900.1 Equity 2,175.8 Accumulated comprehensive income 8.9 --------------- Total shareholders' equity 2,184.7 Total liabilities and shareholders' equity $ 26,084.8 =============== Per share amounts: Diluted book value per share $ 42.72 =============== Diluted book value per share (Ex. Accumulated Comprehensive income) $ 42.55 =============== 10 Exhibit III SEGMENT INFORMATION The following chart presents MONY's protection and accumulation sales for the quarter as well as revenue generated from the company's retail brokerage and investment banking segment.
- ------------------------------------- ---------------- ----------------- ---------------- ----------------- Three-Month Three-Month Six- Six- Period Ended Period Ended Month Period Month Period 6/30/01 6/30/00 Ended 6/30/01 Ended 6/30/00 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- New Business ($ millions) - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Protection Products - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Career Agency System $21.2 $23.0 $38.3 $43.2 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- U.S. Financial Life Insurance 12.7 11.2 22.5 20.1 Company - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Complementary Distribution* 13.9 22.6 36.3 46.2 ---- ---- ---- ---- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Total New Life Insurance Premiums $47.8 $56.8 $97.1 $109.5 ===== ===== ===== ====== - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Accumulation Products - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Career Agency System - Variable $102 $116 $174 $232 Annuities - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Career Agency System - Mutual Funds 100 169 216 381 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Third Party Distribution - Mutual 256 314 505 863 --- --- --- --- Funds - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Total Accumulation $458 $599 $895 $1,476 ==== ==== ==== ====== - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Revenues ($ millions) - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Retail Brokerage & Investment Banking - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Advest $87.5 $98.4** $145.9 $173.3** - ------------------------------------- ---------------- ----------------- ---------------- ----------------- MONY Securities Corp. 12.1 16.0 23.1 34.4 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Matrix Capital Markets 0.2 1.4*** 1.9 2.8*** --- --- === ---- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Total Revenue $99.8 $115.8 $170.9 $210.5 ===== ====== ====== ====== - ------------------------------------- ---------------- ----------------- ---------------- -----------------
* primarily corporate life insurance ** for 5 month period, February - June; prior year is proforma for comparison purposes *** proforma for comparison purposes 11 EX-99.2 4 dex992.txt PRESENTATION OF STATISTICAL SUPPLEMENT Exhibit 99.2 THE MONY GROUP INC. STATISTICAL SUPPLEMENT AS OF AND FOR THE THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2001 AND 2000 TABLE OF CONTENTS The following information should be read in conjunction with the financial information of the Company, which has been filed with the Securities and Exchange Commission, and the explanation of the "Basis of Financial Information Presented" on the following page. All amounts included herein are Unaudited. Certain total amounts herein cannot be recalculated due to rounding. Basis of Financial Information Presented 2 Wall Street Analyst Coverage Data 3 Corporate Offices, Principal Subsidiaries and Ratings 4 Summary Financial Information 5-6 Consolidated Results Exhibit 1 Consolidated Income Statement Data 7 Exhibit 2 Operating Income and Earnings Per Share 8 Protection Products Segment Exhibit 3 Protection Products Segment Description 9 Exhibit 4 Protection Income Statement Data 10 Exhibit 5A Group Pension Data 11 Exhibit 5B Closed Block Data 12 Exhibit 5C Fixed Maturities by Credit Quality-Closed Block 13 Exhibit 6 Premiums and Inforce 14 Exhibit 7 Statutory Direct Premiums 15 Accumulation Products Segment Exhibit 8 Accumulation Products Segment Description 16 Exhibit 9 Accumulation Income Statement Data 17 Exhibit 10 Accumulation Assets Under Management 18 Retail Brokerage and Investment Banking Exhibit 11 Retail Brokerage and Investment Banking Segment Description 19 Exhibit 12 Retail Brokerage and Investment Banking Income Statement Data 20 Exhibit 13 Income Statement Detail and Advest Data 21 Other Segment Exhibit 14 Other/Reconciling Products Segment Description 22 Exhibit 15 Other/Reconciling Income Statements Data 23 Investments Exhibit 16 Investments 24 Exhibit 17 Invested Assets 25 Exhibit 18 Investment Results 26 Exhibit 19A Fixed Maturities Credit Quality 27 Exhibit 19B Fixed Maturities by Industry 28 Exhibit 19C Venture Capital Partnership Investments 29 Exhibit 20 Mortgages at Carrying Value 30 Exhibit 21A Equity Real Estate 31 Exhibit 21B Mortgages and Real Estate 32 Historical Exhibit 22 Quarterly Earnings 33 Expenses Exhibit 23 Statutory Expense Ratios 34 BASIS OF FINANCIAL INFORMATION PRESENTED On November 16, 1998, pursuant to an order by the New York Superintendent of Insurance approving its Plan of Reorganization (the "Plan"), The Mutual Life Insurance Company of New York ("MONY") converted from a mutual life insurance company to a stock life insurance company and became a wholly owned subsidiary of The MONY Group, Inc., (the "MONY Group"), a Delaware corporation organized for the purpose of becoming the parent holding company of MONY. In connection with the Plan, MONY established, as required under the New York Insurance law, a closed block to fund the guaranteed benefits and dividends, at the then current dividend scales in effect, of certain participating insurance policies included therein and eligible policyholders of MONY received cash, policy credits, or shares of common stock in the MONY Group in exchange for their membership interests in MONY. Also, on November 16, 1998, the MONY Group consummated an initial public offering of approximately 12.9 million shares of its common stock at an initial public offering price of $23.50 per share. On December 26, 2000 the American Institute of Certified Public Accountants issued Statement of Position 00-3 (SOP 00-3). SOP 00-3 provides guidance with respect to accounting for demutualizations and requires, among other things, that, (i) Closed Block assets, liabilities, revenues, and expenses should be displayed in financial statements combined with all other assets, liabilities, revenues, and expenses outside the Closed Block, and (ii) demutualization expenses be classified as a single line item within income from continuing operations. The guidance in SOP-03 requires restatement of financial statements presented for years prior to its issuance and is effective for fiscal years beginning after December 15, 2000, except as it pertains to demutualization expenses which was effective immediately. Prior to the issuance of SOP 00-3, the Company, in accordance with generally accepted accounting principles, presented Closed Block assets and liabilities in separate line items on its consolidated balance sheet and presented the results of the Closed Block in a separate line item on its consolidated income statement entitled " Contribution from the Clocked Block." In addition, the company presented demutualization expenses as an extraordinary item. Accordingly, the consolidated statements of income and comprehensive income and related per share amounts for periods prior to 2001 presented herein have been restated from that reported in the Company's prior statistical supplements to reflect the new SOP. 2 WALL STREET ANALYST COVERAGE DATA
Brokerage Analyst Telephone Conning & Company Paul S. Goulekas (860) 520-1256 Deutsche Bank Securities Vanessa Wilson (212) 469-5000 Credit Suisse First Boston Caitlin Long (212) 325-2165 Fox-Pitt, Kelton Ronald McIntosh (212) 687-1105 Goldman Sachs Joan Zief (212) 902-6778 Keefe, Bruyette & Woods, Inc. Jeff Schuman (212) 432-4510 Langen McAlenney Robert R. Glasspiegel (860) 724-1203 Morgan Stanley Dean Witter Nigel Dally (212) 761-6235 Philo Smith James Inglis (203) 348-7365 Putnam Lovell, de Guardiola & Thorton, Inc. Al Capra (212) 546-7640 Salomon Smith Barney Colin Devine (212) 816-1682 Dresdner Kleinwort Wasserstein Thomas G. Gallagher (212) 903-2191 Lehman Brothers Inc. E. Stewart Johnson (212) 526-8190 Sandler O'Neil Nick Pirsos (212) 466-7920
Investor Information Line Contact: Jay Davis Tel (212) 708-2917 E-mail jdavis@mony.com 3 CORPORATE OFFICES, PRINCIPAL SUBSIDIARIES AND RATINGS
INDUSTRY (1) COMMERCIAL(1) RATINGS PAPER RATINGS MONY Life Insurance Company 1740 Broadway New York, NY 10017 Standard Standard & Poors & Poors MONY Life Insurance Company of America AA- A- 1740 Broadway New York, NY 10017 A.M. A.M. Best Best U.S. Financial Life Insurance Company A a- 10290 Alliance Road Cincinnati, OH 45242 Moody's Moody's A2 Baa1 Enterprise Capital Management, Inc. 3343 Peachtree Road, NE, Suite 450 Fitch Fitch Atlanta, GA 30326 AA- A-
MONY Securities Corporation 1740 Broadway New York, NY 10017 Trusted Securites Advisors Corp. 9800 Bren Road East, Suite 300 Minnetonka, MN 55343 The Advest Group, Inc. 90 State House Square Hartford, CT 06103 Matrix Capital Markets Group 11 South 12th Street Suite 325 Richmond, VA 23219 (1) MONY Life Insurance Company 4 (Unaudited) SUMMARY FINANCIAL INFORMATION
- ----------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED INCOME STATEMENT DATA: Total Revenues $ 569.0 $ 523.2 $ 1,081.3 $ 1,178.2 Operating Income (1) $ 21.7 $ 51.0 $ 33.4 $ 175.2 Income before extraordinary item $ 22.3 $ 48.1 $ 35.6 $ 186.0 Net Income $ 22.3 $ 48.1 $ 35.6 $ 149.3 Operating Income Per Share (1) Basic $ 0.44 $ 1.10 $ 0.68 $ 3.74 Diluted $ 0.43 $ 1.07 $ 0.66 $ 3.68 Operating Income, excluding venture capital income Basic $ 0.36 $ 0.53 $ 0.66 $ 1.02 Diluted $ 0.35 $ 0.52 $ 0.64 $ 1.00 Income before extraordinary item Basic $ 0.45 $ 1.03 $ 0.73 $ 3.97 Diluted $ 0.44 $ 1.01 $ 0.70 $ 3.91 Net Income Per Share Basic $ 0.45 $ 1.03 $ 0.73 $ 3.19 Diluted $ 0.44 $ 1.01 $ 0.70 $ 3.14
OTHER DATA: Employee count 3,845 * 2,433 Career agent count (Domestic and International) 2,311 2,245 US Financial Life Brokerage General Agencies 238 244 Trusted Advisors Registered Representatives 452 352 Active Enterprise Selling Agreements 428 435 Advest Financial Advisors 472 N/A
* June 30, 2001 employee count includes Advest and Matrix (1) See Exhibit 2A for a reconciliation of Net Income to Operating Income. (Unaudited) SUMMARY FINANCIAL INFORMATION - CONTINUED
- ------------------------------------------------------------------------------------------------------------------------------------ June 30, December 31, 2001 2000 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ CONSOLIDATED BALANCE SHEET DATA Invested assets (including cash and cash equivalents) $ 11,639.0 $ 11,222.5 Assets transferred in Group Pension Transaction 4,824.9 4,927.7 Separate account assets 5,448.0 5,868.1 Deferred policy acquisition costs 1,222.5 1,209.7 Other assets 2,950.4 1,347.3 ------------- ------------ Total Assets 26,084.8 24,575.3 Policyholders' liabilities 10,339.6 10,281.7 Liabilities transferred in Group Pension Transaction 4,790.4 4,897.2 Separate account liabilities 5,445.3 5,865.3 Short term debt 399.7 52.3 Long term debt - surplus notes 1.9 2.0 Long term debt - other 583.4 569.1 Other liabilities 2,339.8 868.8 ------------- ------------ Total Liabilities 23,900.1 22,536.4 Equity 2,175.8 2,025.9 Accumulated comprehensive income (ACI) 8.9 13.0 ------------- ------------ Total Shareholders' Equity 2,184.7 2,038.9 ------------- ------------ Total Liabilities and Shareholders' Equity $ 26,084.8 $ 24,575.3 ============= ============ SHARE DATA: Number of Shares Used in Basic Calculations 49,195,504 46,153,589 Number of Shares Used in Diluted Calculations 51,136,751 48,635,427 CAPITALIZATION: Long-term debt $ 585.3 $ 571.1 Shareholders Equity (Excluding ACI) 2,175.8 2,025.9 ------------- ------------ Total capitalization $ 2,761.1 $ 2,597.0 ============= ============ Debt as Percent of Total Capitalization 21% 22% ============= ============ STATUTORY DATA: Capital and Surplus $ 1,117.8 $ 1,154.8 Asset Valuation Reserve (AVR) 199.3 281.3 ------------- ------------ Total Capital and Surplus plus AVR $ 1,317.1 $ 1,436.1 ============= ============
6 Exhibit 1 (Unaudited) CONSOLIDATED INCOME STATEMENT DATA (1)
- ------------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 173.4 $ 176.5 $ 338.5 $ 341.5 Universal life and investment-type product policy fees 52.3 55.9 102.0 105.8 Net investment income 189.5 229.5 373.2 581.3 Net realized gains on investments 3.0 (8.9) 5.5 9.7 Group Pension Profits 9.3 8.1 19.2 18.2 Retail Brokerage and Investment Banking 99.8 16.0 170.9 34.4 Other income 41.7 46.1 72.0 87.3 ------------ ------------ ----------- ------------ 569.0 523.2 1,081.3 1,178.2 ------------ ------------ ----------- ------------ BENEFITS AND EXPENSES: Benefits to policyholders 194.5 202.4 392.2 383.1 Interest credited to policyholders account balances 27.0 25.8 55.3 54.2 Amortization of deferred policy acquisition costs 28.3 37.2 65.5 74.7 Dividends to policyholders 60.6 52.7 115.2 109.9 Other operating costs and expenses(2) 226.8 133.6 401.0 272.6 ------------ ------------ ----------- ------------ 537.2 451.7 1,029.2 894.5 ------------ ------------ ----------- ------------ Income before income taxes and extraordinary item 31.8 71.5 52.1 283.7 Income tax expense 9.5 23.4 16.5 97.7 ------------ ------------ ----------- ------------ Income before extraordinary item 22.3 48.1 35.6 186.0 Extraordinary item, net - - - (36.7) ------------ ------------ ----------- ------------ Net income $ 22.3 $ 48.1 $ 35.6 $ 149.3 ============ ============ =========== ============ - ----------------------------------------------------------------------------------------------------
(1) These income statements present the consolidated results of operations of the Company for the periods indicated as will be reported on the Company's filings with the Securities and Exchange Commission. The results reported for the three and six-month periods ended June 30, 2001 and 2000 present the individual components of the Closed Block activity combined with the activity outside the Closed Block for the periods indicated (See "Basis of Financial Information presented"). (2) Includes operating costs and expenses related to Advest and Matrix in 2001. 7 Exhibit 2 (Unaudited) OPERATING INCOME AND EARNINGS PER SHARE
- ------------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions, except per share amounts) - ------------------------------------------------------------------------------------------------------------------------------------ OPERATING INCOME: Net Income $ 22.3 $ 48.1 $ 35.6 $ 149.3 Net realized (gains) losses on investments, after-tax (2.1) 5.8 (3.6) (6.3) Policyholder dividends resulting from Closed Block realized gains (losses), after tax. 1.5 (2.9) 1.4 (4.5) Extraordinary Items - - - 36.7 Operating Income $ 21.7 $ 51.0 $ 33.4 $ 175.2 ----------- ----------- ----------- ----------- Venture Capital (Income)/Loss $ (4.1) $ (26.3) $ (1.0) $ (127.5) ----------- ----------- ----------- ----------- Operating Income, excluding venture capital income $ 17.6 $ 24.7 $ 32.4 $ 47.7 =========== =========== =========== =========== PER SHARE CALCULATIONS: OPERATING INCOME PER SHARE : BASIC $ 0.44 $ 1.10 $ 0.68 $ 3.74 DILUTED $ 0.43 $ 1.07 $ 0.66 $ 3.68 OPERATING INCOME, EXCLUDING VENTURE CAPITAL INCOME: BASIC $ 0.36 $ 0.53 $ 0.66 $ 1.02 DILUTED $ 0.35 $ 0.52 $ 0.64 $ 1.00 INCOME BEFORE EXTRAORDINARY ITEM PER SHARE: BASIC $ 0.45 $ 1.03 $ 0.73 $ 3.97 DILUTED $ 0.44 $ 1.01 $ 0.70 $ 3.91 NET INCOME PER SHARE: BASIC $ 0.45 $ 1.03 $ 0.73 $ 3.19 DILUTED $ 0.44 $ 1.01 $ 0.70 $ 3.14 Share Data: Weighted-average shares outstanding used in basic per share calculations 49,363,512 46,528,902 49,044,496 46,812,447 Plus: Incremental shares from conversion of dilutive securities assumed 1,549,587 1,020,958 1,580,133 783,395 ----------- ----------- ----------- ----------- Weighted-average shares used in diluted per per share calculations 50,913,099 47,549,860 50,624,629 47,595,842 =========== =========== =========== ===========
8 Exhibit 3 PROTECTION PRODUCTS SEGMENT - -------------------------------------------------------------------------------- The "Protection Products" segment represents a wide range of individual life insurance products, including whole life, term life, universal life, variable universal life, last survivor variable life and group universal life. Also included in the Protection Products segment are the: (i) assets and liabilities transferred pursuant to the Group Pension Transaction, as well as the Group Pension Profits, (ii) the Closed Block assets and liabilities, as well as the contribution from the Closed Block, and (iii) the Company's disability income insurance business which was transferred in the DI Transaction. - -------------------------------------------------------------------------------- Exhibit 4 (Unaudited) PROTECTION PRODUCTS SEGMENT (1) INCOME STATEMENTS DATA
- ------------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 169.8 $ 174.4 $ 331.4 $ 336.9 Universal life and investment-type product policy fees Net investment income 37.1 38.2 71.6 68.5 Group pension profits 151.2 182.7 299.4 455.9 Other income 9.3 8.1 19.2 18.2 Total revenues 8.6 8.8 6.4 12.9 --------------- --------------- ------------- ------------- 376.0 412.2 728.0 892.4 --------------- --------------- ------------- ------------- BENEFITS AND EXPENSES: Benefits to policyholders Interest credited to policyholder account balances 184.1 188.7 367.3 359.1 Amortization of deferred policy acquisition costs 14.6 12.3 30.1 25.7 Dividends to policyholders 24.3 30.1 55.2 60.1 Other operating costs and expenses 59.9 51.9 113.9 108.5 Total benefits and expenses 68.6 69.6 118.2 148.7 --------------- --------------- ------------- ------------- 351.5 352.6 684.7 702.1 --------------- --------------- ------------- ------------- Pre-tax operating income Net realized gains on investments 24.5 59.6 43.3 190.3 Pre-tax income 2.4 (6.6) 4.1 3.8 --------------- --------------- ------------- ------------- $ 26.9 $ 53.0 $ 47.4 $ 194.1 =============== =============== ============= ============= OPERATING INCOME RECONCILIATION: Pre tax operating income (above) Policyholder dividends resulting from closed block 24.5 59.6 43.3 190.3 realized gains (losses) Operating Income 2.1 (4.4) 2.0 (6.9) --------------- --------------- ------------- ------------- $ 26.6 $ 55.2 $ 45.3 $ 183.4 =============== =============== ============= ============= - ----------------------------------------------------------------------------------------------------
(1) These income statements present the results of operations of the Company's protection products segment for the periods indicated as will be reported in the Company's filings with the Securities and Exchange Commission. The results reported for the three and six-month periods ended June 30, 2001 and 2000 present the individual components of the Closed Block activity combined with the protection segment activity outside the Closed Block for the periods indicated (See "Basis of Financial Information Presented.") 10 Exhibit 5A (Unaudited)
GROUP PENSION PROFIT DETAILED INCOME STATEMENT - ---------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Six-Months Ended June 30, June 30, INCOME STATEMENT DATA: 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES: Policy Product Fees $ 4.2 $ 5.9 $ 9.5 $ 12.0 Net investment income 25.8 28.3 53.0 58.4 Net realized gains on investments 2.0 - 3.6 0.6 ------------------- ----------------- ----------------- ---------------- Total revenues 32.0 34.2 66.1 71.0 ------------------- ----------------- ----------------- ---------------- BENEFITS AND EXPENSES: Interest credited to policyholder account balances 18.6 22.3 $ 37.1 $ 43.2 Other operating costs and expenses 4.1 3.8 9.8 9.6 ------------------- ----------------- ----------------- ---------------- Total benefits and expenses 22.7 26.1 46.9 52.8 ------------------- ----------------- ----------------- ---------------- Group Pension Profits $ 9.3 $ 8.1 $ 19.2 $ 18.2 =================== ================= ================= ================ ASSETS AND LIABILITIES TRANSFERRED IN GROUP PENSION TRANSACTION - ---------------------------------------------------------------------------------------- June 30, December 31, 2001 2000 ---- ---- ($ millions) - ---------------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed Maturities $ 1,388.5 $ 1,419.0 Mortgage loans on real estate 37.6 47.5 Cash and cash equivalents 33.5 18.5 Other assets 24.7 26.0 ------------------- ----------------- Total general account assets 1,484.3 1,511.0 Separate account assets 3,340.6 3,416.7 ------------------- ----------------- Total Assets $ 4,824.9 $ 4,927.7 =================== ================= Liabilities: General account Policyholder account balances $ 1,430.7 $ 1,468.1 Other liabilities 19.1 12.4 ------------------- ----------------- Total general account liabilities 1,449.8 1,480.5 Separate account liabilities 3,340.6 3,416.7 ------------------- ----------------- Total Liabilities $ 4,790.4 $ 4,897.2 =================== =================
11 Exhibit 5B (Unaudited) CLOSED BLOCK INCOME STATEMENT
- ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 138.2 $ 147.9 $ 267.5 $ 283.6 Net investment income 99.1 98.6 199.0 195.0 Net realized gains on investments 2.1 (4.4) 2.0 (6.9) Other Income 0.5 0.3 1.0 1.1 ---------------- ---------------- ---------------- ---------------- Total revenues $ 239.9 $ 242.4 $ 469.5 $ 472.8 ---------------- ---------------- ---------------- ---------------- BENEFITS AND EXPENSES: Benefits to Policyholders $ 152.0 $ 160.6 $ 293.4 $ 302.2 Interest Credited to Policyholders Account Balances 2.1 2.1 4.2 4.3 Amort. Of Def. Policy Acquisition Costs 11.0 14.3 32.2 31.9 Dividends to Policyholders 59.9 52.1 113.4 108.7 Operating Costs & Expenses 2.4 2.5 4.1 4.3 ---------------- ---------------- ---------------- ---------------- Total benefits and expenses 227.4 231.6 447.3 451.4 ---------------- ---------------- ---------------- ---------------- Closed Block Profit $ 12.5 $ 10.8 $ 22.2 $ 21.4 ================ ================ ================ ================ CLOSED BLOCK ASSETS AND LIABILITIES - ------------------------------------------------------------------------------------------- June 30, December 31, 2001 2000 ($ millions) - ------------------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed Maturities $ 3,556.9 $ 3,543.1 Mortgage loans on real estate 592.2 566.0 Policy Loans 1,167.8 1,183.9 Cash and cash equivalents 277.0 167.8 Premiums receivable 9.5 13.6 Deferred policy acquisition costs 520.7 552.6 Other assets 229.3 224.2 ---------------- ---------------- Total closed block assets $ 6,353.4 $ 6,251.2 ================ ================ Liabilities: General account Future policy benefits $ 6,832.2 $ 6,826.8 Policyholders' account balances 292.5 293.3 Other policyholders' liabilities 181.6 173.5 Other liabilities 111.9 22.2 ---------------- ---------------- Total closed block liabilities $ 7,418.2 $ 7,315.8 ================ ================
12 Exhibit 5C (Unaudited)
FIXED MATURITIES BY CREDIT QUALITY - CLOSED BLOCK PUBLIC FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------- Quarter Ended June 30, 2001 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - ------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 1,437.6 77.5% $ 1,448.7 2 Baa 351.6 18.8% 351.2 3 Ba 68.4 3.6% 64.7 4 B 0.6 0.0% 0.6 5 Caa and lower - 0.0% - 6 In or near default 3.6 0.2% 3.9 ------------- --- ------------- Subtotal 1,861.8 100.0% 1,869.1 Redeemable preferred stock - 0.0% - ------------- --- ------------- Total Public Fixed Maturities $ 1,861.8 100.0% $ 1,869.1 ============= ===== ============= PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------- Quarter Ended June 30, 2001 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - ------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 799.5 48.0% $ 812.4 2 Baa 788.6 47.3% 797.9 3 Ba 70.4 4.1% 70.0 4 B 0.0% 5 Caa and lower 7.5 0.4% 7.5 6 In or near default - 0.0% - ------------- --- ------------- Subtotal 1,666.0 100.0% 1,687.8 Redeemable preferred stock - 0.0% - ------------- --- ------------- Total Private Fixed Maturities $ 1,666.0 100.0% $ 1,687.8 ============= ===== ============= TOTAL FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------- Quarter Ended June 30, 2001 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - ------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 2,237.1 63.5% $ 2,261.1 2 Baa 1,140.2 32.3% 1,149.1 3 Ba 138.8 3.8% 134.7 4 B 0.6 0.0% 0.6 5 Caa and lower 7.5 0.2% 7.5 6 In or near default 3.6 0.1% 3.9 ------------- --- ------------- Subtotal 3,527.8 100.0% 3,556.9 Redeemable preferred stock - 0.0% - ------------- --- ------------- Total Fixed Maturities $ 3,527.8 100.0% $ 3,556.9 ============= ===== ============= PUBLIC FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2000 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- - ------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 1,390.8 77.2% $ 1,395.4 2 Baa 366.1 19.7% 356.3 3 Ba 60.5 3.0% 53.2 4 B 0.6 0.0% 0.6 5 Caa and lower - 0.0% - 6 In or near default 1.4 0.1% 1.4 ------------- --- ------------- Subtotal 1,819.4 100.0% 1,806.9 Redeemable preferred stock - 0.0% - ------------- --- ------------- Total Public Fixed Maturities $ 1,819.4 100.0% $ 1,806.9 ============= ===== ============= PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2000 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - ------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 810.1 47.3% $ 820.5 2 Baa 824.5 48.1% 835.7 3 Ba 72.1 4.0% 70.3 4 B - 0.0% - 5 Caa and lower 9.7 0.6% 9.7 6 In or near default - 0.0% - ------------- --- ------------- Subtotal 1,716.4 100.0% 1,736.2 Redeemable preferred stock - 0.0% - ------------- --- ------------- Total Private Fixed Maturities $ 1,716.4 100.0% $ 1,736.2 ============= ===== ============= TOTAL FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------- Year Ended December 31, 2000 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - ------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 2,200.9 62.6% $ 2,215.9 2 Baa 1,190.6 33.6% 1,192.0 3 Ba 132.6 3.5% 123.5 4 B 0.6 0.0% 0.6 5 Caa and lower 9.7 0.3% 9.7 6 In or near default 1.4 0.0% 1.4 ------------- --- ------------- Subtotal 3,535.8 100.0% 3,543.1 Redeemable preferred stock - 0.0% - ------------- --- ------------- Total Fixed Maturities $ 3,535.8 100.0% $ 3,543.1 ============= ===== ============= - --------------------------------------------------------------------------------------------------------------------
The Exhibit above includes invested assets in the Closed Block. 13 Exhibit 6 (Unaudited)
PROTECTION PRODUCTS SEGMENT NEW ANNUALIZED AND SINGLE PREMIUMS AND INFORCE - ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------------- PROTECTION BUSINESS SALES: Traditional life $ 0.8 $ 0.9 $ 0.9 $ 2.3 Term 10.0 9.0 18.4 18.3 Universal life 7.6 6.9 12.5 10.3 Variable universal life 15.9 17.6 28.7 32.6 Corporate owned life insurance 13.1 21.4 35.8 44.7 Group universal life 0.4 1.0 0.8 1.3 ------------- ---------- ----------- ---------- Total $ 47.8 $ 56.8 $ 97.1 $ 109.5 ============= ========== =========== ==========
- ------------------------------------------------------------------------------------------- June 30, December 31, 2001 2000 ---- ---- - ------------------------------------------------------------------------------------------- Insurance In Force ($ in millions except number of policies) - ------------------------------------------------------------------------------------------- Traditional Life (1) Number of policies (in thousands) 866.3 879.5 GAAP life reserves $ 7,318.1 $ 7,283.7 Face amounts $ 69,827.5 $ 67,015.7 Universal Life: Number of policies (in thousands) 75.1 76.4 GAAP life reserves $ 691.5 $ 681.2 Face amounts $ 10,862.7 $ 10,951.6 Variable Universal Life: Number of policies (in thousands) 59.8 55.0 GAAP life reserves $ 701.6 $ 657.3 Face amounts $ 16,069.2 $ 14,798.7 Group Universal Life: Number of policies (in thousands) 45.3 47.3 GAAP life reserves $ 66.1 $ 64.1 Face amounts $ 1,619.0 $ 1,683.0 Total: Number of policies (in thousands) 1,046.5 1,058.2 GAAP life reserves $ 8,777.3 $ 8,686.3 Face amounts $ 98,378.4 $ 94,449.0 - -------------------------------------------------------------------------------------------
(1) Consists of whole life and term policies 14 Exhibit 7 (Unaudited) PROTECTION PRODUCTS SEGMENT STATUTORY DIRECT PREMIUMS BY PRODUCT
- -------------------------------------------------------------------------------------------------- Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) LIFE INSURANCE: Traditional Life (1): First year & single $ 46.8 $ 44.3 $ 87.3 $ 85.2 Renewal 129.5 133.1 238.0 247.7 ------- ------- ------- ------- Total $ 176.3 $ 177.4 $ 325.3 $ 332.9 ======= ======= ======= ======= Universal Life: First year & single $ 7.3 $ 5.1 $ 11.5 $ 8.7 Renewal 23.3 23.6 48.8 48.3 ------- ------- ------- ------- Total $ 30.6 $ 28.7 $ 60.3 $ 57.0 ======= ======= ======= ======= Variable Universal Life: First year & single $ 18.1 $ 21.4 $ 34.6 $ 40.0 Renewal 22.8 16.5 44.6 33.0 ------- ------- ------- ------- Total $ 40.9 $ 37.9 $ 79.2 $ 73.0 ======= ======= ======= ======= Corporate Sponsored Variable Universal Life: First year & single $ 13.5 $ 40.6 $ 26.1 $ 48.9 Renewal 5.0 2.4 28.6 4.2 ------- ------- ------- ------- Total $ 18.5 $ 43.0 $ 54.7 $ 53.1 ======= ======= ======= ======= Group Universal Life: First year & single $ 0.4 $ 0.5 $ 1.1 $ 1.0 Renewal 2.5 2.9 5.3 6.0 ------- ------- ------- ------- Total $ 2.9 $ 3.4 $ 6.4 $ 07.0 ======= ======= ======= ======= Total life insurance $ 269.2 $ 290.4 $ 525.9 $ 523.0 ======= ======= ======= =======
- -------------------------------------------------------------------------------- (1) Consists of whole life and term policies 15 Exhibit 8 ACCUMULATION PRODUCT SEGMENT - -------------------------------------------------------------------------------- The Accumulation Products segment represents fixed annuities, single premium deferred annuities, immediate annuities, flexible payment variable annuities and proprietary retail mutual funds. - -------------------------------------------------------------------------------- Exhibit 9 (Unaudited) ACCUMULATION PRODUCTS SEGMENT INCOME STATEMENT
- ------------------------------------------------------------------------------------------------------ Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 1.1 $ 0.3 $ 2.4 $ 0.4 Universal life and investment-type product policy fees 14.3 17.6 29.5 36.5 Net investment income 19.2 27.3 38.3 73.4 Other income 27.0 31.4 53.2 62.7 ------ ------ ------ ------ Total revenues 61.6 76.6 123.4 173.0 ------ ------ ------ ------ BENEFITS AND EXPENSES: Benefits to policyholders 6.0 7.7 11.8 13.0 Interest credited to policyholder account balances 10.3 11.5 20.6 24.0 Amortization of deferred policy acquisition costs 4.0 7.1 10.3 14.6 Dividends to policyholders 0.3 0.4 0.7 0.8 Other operating costs and expenses 29.2 31.0 57.3 60.9 ------ ------ ------ ------ Total benefits and expenses 49.8 57.7 100.7 113.3 ------ ------ ------ ------ Pre-tax operating income 11.8 18.9 22.7 59.7 Net realized gains on investments 1.1 (1.7) 2.2 2.8 ------ ------ ------ ------ Pre-tax income $ 12.9 $ 17.2 $ 24.9 $ 62.5 ====== ====== ====== ======
- ------------------------------------------------------------------------------- 17 Exhibit 10 (Unaudited) ACCUMULATION PRODUCTS SEGMENT ASSETS UNDER MANAGEMENT(1)
- ------------------------------------------------------------------------------------------------------------------------------------ June 30, June 30, December 31, 2001 2000 2000 ---- ---- ---- - ------------------------------------------------------------------------------------------------------------------------------------ ACCUMULATION SEGMENT: Assets under management ($ billions) Individual variable annuities $ 4.0 $ 4.7 $ 4.4 Individual fixed annuities 0.7 0.8 0.7 Proprietary retail mutual funds 4.5 5.1 4.8 ----- ----- ----- $ 9.3 $10.6 $ 9.9 ===== ===== ===== Three Months Ended Six Months Ended 30-Jun 30-Jun 2001 2000 2001 2000 RECONCILIATION IN ACCOUNT VALUE: VARIABLE ANNUITY(1): Beginning account value $ 3.9 $ 4.9 $ 4.4 $ 4.9 Sales 0.1 $ 0.1 0.2 0.2 Market appreciation 0.2 $ (0.1) (0.2) (0.0) Surrenders and withdrawals (0.1) $ (0.2) (0.3) (0.5) $ 4.0 $ 4.7 $ 4.0 $ 4.7 -------------------------- ----------------------------- ENTERPRISE GROUP OF FUNDS: Beginning account value $ 4.3 $ 5.2 $ 4.8 $ 4.8 Sales 0.4 $ 0.5 0.7 1.2 Dividends reinvested 0.0 0.0 0.0 0.2 Market appreciation 0.2 $ (0.2) (0.4) (0.4) Redemptions (0.3) $ (0.3) (0.6) (0.7) Ending account value $ 4.5 $ 5.1 $ 4.5 $ 5.1 -------------------------- -----------------------------
- -------------------------------------------------------------------------------- In 2000 sales are net of exchanges to new product series of approximately $294 million in the first quarter, and $358 million in the second quarter, $230 million in the third quarter and $116 million in the fourth quarter. In the first quarter of 2001 sales are net of exchanges to new product series of $71 million and $72 million in the second quarter. 18 Exhibit 11 RETAIL BROKERAGE AND INVESTMENT BANKING - -------------------------------------------------------------------------------- The Retail Brokerage and Investment Banking segment is comprised of results of the Company's subsidiaries, Advest Group Inc ("AGI"), Matrix Capital Markets Group ("Matrix") and MONY Securities Corp. ("MSC"). Advest Group Inc, through its subsidiaries, provides diversified financial services including securities brokerage, trading, investment banking, trust and asset management. Matrix is a middle market investment bank specializing in merger and acquisition services for a middle market client base. MSC is a broker dealer which transacts customer trades primarily in securities and mutual funds. In addition to selling the Company's proprietary investment products, MSC provides customers of the Company's protection and accumulation products access to other non-proprietary investment products (including stocks, bonds, limited partnership interests, tax-exempt unit investment trusts and other investment securities). - -------------------------------------------------------------------------------- 19 Exhibit 12 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DATA
- ---------------------------------------------------------------------------------------------------------------------- Three-Months Ended Six-Months Ended June 30, June 30, 2001(1) 2000 2001(1) 2000 ---- ---- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------------------------------------- REVENUES: Net investment income 2.1 0.1 3.1 0.1 Retail Brokerage and Investment Banking 99.8 16.0 170.9 34.4 -------- -------- -------- ------- Total revenues 101.9 16.1 174.0 34.5 -------- -------- -------- ------- BENEFITS AND EXPENSES: Other operating costs and expenses 104.0 16.6 177.8 34.7 -------- -------- -------- ------- Total benefits and expenses 104.0 16.6 177.8 34.7 -------- -------- -------- ------- Pre-tax operating income (2.1) (0.5) (3.8) (0.2) Net realized gains on investments - 0.2 (0.2) 0.3 -------- -------- -------- ------- Pre-tax income $ (2.1) $ (0.3) $ (4.0) $ 0.1 ======== ======== ======== =======
- -------------------------------------------------------------------------------- (1) Includes Advest results for the 5 month period ended June 30, 2001 and Matrix for the 6 month period ended June 30, 2001. Advest was acquired by the MONY Group on January 31, 2001. Matrix was acquired on January 1, 2001. 20 Exhibit 13 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DETAIL
Three Months Ended Six Months Ended June 30, June 30, -------------------- -------------------- 2001 2000 2001 2000 ------ ------ ------ ------ REVENUES: Commissions $ 39.6 $ 16.0 $ 67.4 $ 34.3 Interest 16.8 - 29.6 0.1 Principal transactions 23.1 - 38.0 - Asset management and administration 5.0 - 7.4 - Investment banking 12.7 - 22.4 - Other 4.7 0.3 9.0 0.4 ------ ------ ------ ------ Total revenues 101.9 16.3 173.8 34.8 EXPENSES: Compensation 52.1 1.3 87.6 2.2 Interest 0.4 - 0.7 - Goodwill and other intangible amortization 3.4 0.2 5.8 0.3 Other 48.1 15.1 83.7 32.2 ------ ------ ------ ----- Total expenses 104.0 16.6 177.8 34.7 ------ ------ ------ ----- Pre-tax income $ (2.1) $ (0.3) $ (4.0) $ 0.1 ====== ====== ====== =====
- --------------------------------------------------------------------------------
ADVEST - NET INTEREST ADVEST - NET INTEREST Three-Months Ended Five Months Ended June 30 2001 June 30 2000 June 30 2001 June 30 2000 ---------------- ------------------- ------------------ ------------------- Net Interest Income - Interest Income: Brokerage customers 7.9 42.0% $ 12.7 49.0% $ 14.1 43.4% $ 20.3 49.2% Stock borrowed 7.3 38.8% 11.5 44.4% 13.5 41.5% 18.2 44.1% Investments 0.2 1.1% 0.3 1.2% 0.4 1.2% 0.6 1.5% Security inventory 1.9 10.1% 1.1 4.2% 2.8 8.6% 1.7 4.1% Other 1.5 8.0% 0.3 1.2% 1.7 5.2% 0.5 1.2% ---------------- ------------------- ----------------- ------------------- $ 18.8 100.0% $ 25.9 100.0% $ 32.5 100.0% $ 41.3 100.0% ---------------- ------------------- ----------------- ------------------- Interest Expense: Stock loaned 7.5 59.5% 11.9 64.0% $ 13.6 60.2% $ 18.1 61.6% Brokerage customers 1.1 8.7% 2.7 14.5% 2.3 10.2% 4.5 15.3% Borrowings 3.9 31.0% 3.9 21.0% 6.6 29.2% 6.6 22.4% Other 0.1 0.8% 0.1 0.5% 0.1 0.4% 0.2 0.7% ---------------- ------------------- ----------------- ------------------- 12.6 100.0% 18.6 100.0% 22.6 100.0% 29.4 100.0% ---------------- ------------------- ----------------- ------------------- Net interest income $ 6.2 33.0% $ 7.3 28.2% $ 9.9 30.5% $ 11.9 28.8% ================ =================== ================= ===================
ADVEST STATISTICAL DATA As of June 30, 2001 --------------- Client Assets (in millions) $ 27,024.0 Number of Client Accounts (in thousands) 258 Assets managed under fee-based programs (AUM) (in millions) $ 6,657.0 21 Exhibit 14 OTHER PRODUCT SEGMENT - -------------------------------------------------------------------------------- The Company's Other Products segment primarily consists of an insurance brokerage operation and the Run-Off businesses. The insurance brokerage operation provides the Company's career agency sales force with access to non-variable life, annuity, small group health and specialty insurance products written by other carriers to meet the insurance and investment needs of its customers. The Run-Off Businesses primarily consist of group life and health insurance as well as the group pension business that was not included in the Group Pension Transaction. - -------------------------------------------------------------------------------- RECONCILING AMOUNTS - -------------------------------------------------------------------------------- The reconciling amounts include certain benefits for Company benefit plans, the results of the holding company and certain non-recurring items. - -------------------------------------------------------------------------------- 22 Exhibit 15 (Unaudited) OTHER/RECONCILING PRODUCTS SEGMENT INCOME STATEMENT DATA
- ------------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Six-Months Ended June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 2.5 $ 1.8 $ 4.7 $ 4.2 Universal life and investment-type product policy fees 0.9 0.1 0.9 0.8 Net investment income 17.0 19.4 32.4 51.8 Other income 6.1 5.9 12.4 11.7 ------- ------- ------- ------- Total revenues 26.5 27.2 50.4 68.5 ------- ------- ------- ------- BENEFITS AND EXPENSES: Benefits to policyholders 4.4 6.0 13.1 11.0 Interest credited to policyholder account balances 2.1 2.0 4.6 4.5 Dividends to policyholders 0.4 0.4 0.6 0.6 Other operating costs and expenses 25.0 16.4 47.7 28.3 ------- ------- ------- ------- Total benefits and expenses 31.9 24.8 66.0 44.4 ------- ------- ------- ------- Pre-tax operating income (5.4) 2.4 (15.6) 24.1 Net realized gains on investments (0.5) (0.8) (0.6) 2.9 ------- ------- ------- ------- Pre-tax income $ (5.9) $ 1.6 $ (16.2) $ 27.0 ======= ======= ======= =======
23 INVESTMENTS ALL INVESTMENT DATA PRESENTED IN THE FOLLOWING SECTION INCLUDES INVESTED ASSETS IN THE CLOSED BLOCK 24 Exhibit 17 (Unaudited) CONSOLIDATED GAAP INVESTED ASSETS
- -------------------------------------------------------------------------------------------------------------- As of As of June 30, 2001 December 31, 2000 Carrying % of Carrying % of Value Total Value Total ----- ----- ----- ----- INVESTED ASSETS ($ Millions) - -------------------------------------------------------------------------------------------------------------- Fixed Maturities, Available for Sale $ 6,524.7 59.3% $ 6,693.0 59.6% Fixed Maturities, Held to Maturity 2.7 0.0% - 0.0% Equity Securities, Available for Sale 327.3 3.0% 328.6 2.9% Mortgage Loans on Real Estate 1,759.1 16.0% 1,754.7 15.6% Policy Loans 1,252.6 11.4% 1,264.6 11.3% Real Estate to be Disposed Of 170.4 1.5% 171.3 1.6% Real Estate Held for Investment 47.3 0.4% 40.7 0.4% Other Invested Assets 153.7 1.4% 100.0 0.9% Cash and Equivalents 760.7 6.9% 869.6 7.7% --------- ----- ---------- ----- Invested Assets, excluding Trading Securities $10,998.5 100.0% $ 11,222.5 100.0% ===== ===== Trading Securities 454.5 - Trading Securities, Pledged as Collateral 186.0 - --------- ---------- Total Trading Securities 640.5 - --------- ---------- Total Invested Assets 11,639.0 11,222.5 ========= ==========
- ------------------------------------------------------------------------------- The Exhibit above includes invested assets in the Closed Block. 25 Exhibit 18 (Unaudited) INVESTMENT RESULTS BY ASSET CATEGORY
Three Months Ended Three Months Ended Six Months Ended Six Months Ended June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000 Yield(2) Amount Yield(2) Amount Yield(1) Amount Yield(1) Amount -------- ------ -------- ------ -------- ------ -------- ------ ($ millions) ($ millions) ($ millions) ($ millions) FIXED MATURITIES Investment Income 7.4% $ 122.3 7.4% $ 123.5 7.5% $ 247.8 7.3% $ 246.0 Realized Gains (losses) 0.2% 2.8 -0.6% (9.8) 0.2% 7.5 -0.4% (12.8) Total 7.6% $ 125.1 6.8% $ 113.7 7.7% $ 255.3 7.0% $ 233.2 ----------------------------------------------------------------------------------- Ending Assets $ 6,495.1 $ 6,641.4 $ 6,495.1 $ 6,641.4 ----------------------------------------------------------------------------------- EQUITY SECURITIES Investment Income 7.9% $ 6.4 34.1% $ 44.7 1.1% $ 1.8 80.4% $ 211.4 Realized Gains (losses) -4.6% (3.7) -2.4% (3.1) -3.2% (5.3) 6.5% 17.1 Total 3.3% $ 2.7 31.7% $ 41.6 -2.2% $ (3.5) 86.8% $ 228.4 ----------------------------------------------------------------------------------- Ending Assets $ 327.3 $ 532.5 $ 327.3 $ 532.5 ----------------------------------------------------------------------------------- MORTGAGE LOANS Investment Income 7.9% $ 34.0 8.1% $ 37.6 7.9% $ 69.4 8.1% $ 73.0 Realized Gains (losses) 0.8% 3.5 0.2% 0.7 0.6% 5.2 0.3% 2.8 Total 8.7% $ 37.5 8.3% $ 38.3 8.5% $ 74.6 8.5% $ 75.8 ----------------------------------------------------------------------------------- Ending Assets $ 1,759.1 $ 1,868.9 $ 1,759.1 $ 1,868.9 ----------------------------------------------------------------------------------- REAL ESTATE (3) Investment Income 10.3% $ 5.5 7.9% $ 7.4 7.7% $ 8.3 7.6% $ 14.2 Realized Gains (losses) -1.8% (1.0) 3.3% 3.1 -2.4% (2.5) 1.4% 2.6 Total 8.4% $ 4.6 11.2% $ 10.5 5.3% $ 5.7 9.0% $ 16.8 ----------------------------------------------------------------------------------- Ending Assets $ 217.7 $ 376.3 $ 217.7 $ 376.3 ----------------------------------------------------------------------------------- POLICY LOANS Investment Income 6.7% $ 21.0 6.8% $ 21.3 6.8% $ 43.0 6.7% $ 42.5 Realized Gains (losses) 0.0% - 0.0% - 0.0% - 0.0% - Total 6.7% $ 21.0 6.8% $ 21.3 6.8% $ 43.0 6.7% $ 42.5 ----------------------------------------------------------------------------------- Ending Assets $ 1,252.6 $ 1,260.0 $ 1,252.6 $ 1,260.0 ----------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Investment Income 4.7% $ 7.8 6.7% $ 5.4 5.2% $ 19.5 6.4% $ 11.3 Realized Gains (losses) 0.0% 0.0 0.4% 0.3 0.0% 0.0 0.2% 0.3 Total 4.7% $ 7.8 7.2% $ 5.7 5.2% $ 19.5 6.6% $ 11.7 ----------------------------------------------------------------------------------- Ending Assets $ 760.7 $ 222.2 $ 760.7 $ 222.2 ----------------------------------------------------------------------------------- OTHER INVESTED ASSETS Investment Income 4.5% $ 1.4 3.7% $ 0.7 4.3% $ 2.7 8.9% $ 2.5 Realized Gains (losses) 4.3% 1.3 -0.8% (0.2) 0.9% 0.6 -0.9% (0.3) Total 8.8% $ 2.7 2.8% $ 0.5 5.2% $ 3.3 8.0% $ 2.3 ----------------------------------------------------------------------------------- Ending Assets $ 153.7 $ 76.7 $ 153.7 $ 76.7 ----------------------------------------------------------------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 7.2% $ 198.3 8.7% $ 240.5 7.1% $ 392.4 10.9% $ 600.9 Realized Gains (losses) 0.1% 3.0 -0.3% (8.9) 0.1% 5.5 0.2% 9.7 Total 7.4% $ 201.3 8.3% $ 231.7 7.2% $ 397.9 11.0% $ 610.7 ----------------------------------------------------------------------------------- Ending Assets $ 10,966.2 $10,977.9 $ 10,966.2 $ 10,977.9 ----------------------------------------------------------------------------------- Other Fee Income 0.0% $ 1.0 0.0% $ 0.9 0.0% $ 2.2 0.0% $ 2.2 Investment expense -0.4% $ (9.9) -0.4% $ (12.0) -0.4% $ (21.4) -0.4% $ (21.8) TOTAL AFTER INVESTMENT EXPENSES Investment Income 6.9% $ 189.4 8.3% $ 229.4 6.7% $ 373.2 10.5% $ 581.3 Realized Gains (losses) 0.1% 3.0 -0.3% (8.9) 0.1% 5.5 0.2% 9.7 Total 7.0% $ 192.4 7.9% $ 220.5 6.8% $ 378.7 10.7% $ 591.1 ----------------------------------------------------------------------------------- Ending Assets 10,966.2 10,977.9 10,966.2 10,977.9 ----------------------------------------------------------------------------------- Net unrealized gains (losses) on fixed maturities 32.4 (222.5) 32.2 (222.5) ----------------------------------------------------------------------------------- Total invested assets (4) $ 10,998.5 $10,755.5 $ 10,998.5 $ 10,755.5 =================================================================================== - ---------------------------------------------------------------------------------------------------------------- Year Ended Year Ended Year Ended December 31, 2000 December 31, 1999 December 31, 1998 Yield(1) Amount Yield(1) Amount Yield(1) Amount -------- ------ -------- ------ -------- ------ ($millions) - ---------------------------------------------------------------------------------------------------------------- FIXED MATURITIES Investment Income 7.4% $ 495.4 7.2% $ 477.7 7.4% $ 448.7 Realized Gains (losses) -0.4% (30.1) -0.1% (8.6) 0.1% 8.5 Total 6.9% $ 465.3 7.1% $ 469.1 7.5% $ 457.2 ------------------------------------------------------------- Ending Assets $ 6,702.7 $ 6,752.6 $ 6,453.5 ------------------------------------------------------------- EQUITY SECURITIES Investment Income 56.4% $ 239.4 39.7% $ 194.2 13.5% $ 53.6 Realized Gains (losses) 5.1% 21.6 15.6% 76.0 1.7% 6.9 Total 61.5% $ 261.0 55.3% $ 270.2 15.2% $ 60.5 ------------------------------------------------------------- Ending Assets $ 328.6 $ 519.8 $ 457.2 ------------------------------------------------------------- MORTGAGE LOANS Investment Income 8.3% $ 144.4 8.2% $ 127.7 8.7% $ 124.1 Realized Gains (losses) 1.1% 19.8 0.0% 0.8 0.5% 7.6 Total 9.5% $ 164.1 8.2% $ 128.5 9.2% $ 131.7 ------------------------------------------------------------- Ending Assets $ 1,754.7 $ 1,713.4 $ 1,420.0 ------------------------------------------------------------- REAL ESTATE (3) Investment Income 7.0% $ 20.4 7.0% $ 35.0 5.0% $ 44.4 Realized Gains (losses) 9.2% 26.7 10.4% 52.0 14.6% 127.6 Total 16.2% $ 47.1 17.4% $ 87.0 19.6% $ 172.0 ------------------------------------------------------------- Ending Assets $ 212.0 $ 369.1 $ 634.2 ------------------------------------------------------------- POLICY LOANS Investment Income 6.8% $ 86.6 6.5% $ 81.9 6.6% $ 82.4 Realized Gains (losses) 0.0% - 0.0% - 0.0% - Total 6.8% $ 86.6 6.5% $ 81.9 6.6% $ 82.4 ------------------------------------------------------------- Ending Assets $ 1,264.6 $ 1,268.2 $ 1,269.6 ------------------------------------------------------------- CASH AND CASH EQUIVALENTS Investment Income 6.6% $ 28.2 4.1% $ 17.3 4.8% $ 18.8 Realized Gains (losses) 0.0% (0.0) 0.0% - 0.0% - Total 6.6% $ 28.2 4.1% $ 17.3 4.8% $ 18.8 ------------------------------------------------------------- Ending Assets $ 869.6 $ 377.1 $ 463.5 ------------------------------------------------------------- OTHER INVESTED ASSETS Investment Income 5.9% $ 4.1 -0.5% $ (0.2) 1.8% $ 1.0 Realized Gains (losses) -0.7% (0.5) 12.4% 4.9 37.5% 20.5 Total 5.3% $ 3.6 11.9% $ 4.7 39.3% $ 21.5 ------------------------------------------------------------- Ending Assets $ 100.0 $ 38.0 $ 40.7 ------------------------------------------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 9.1% $ 1,018.4 8.6% $ 933.6 7.4% $ 773.0 Realized Gains (losses) 0.3% 37.5 1.1% 125.1 1.6% 171.1 Total 9.5% $ 1,055.9 9.7% $ 1,058.7 9.0% $ 944.1 ------------------------------------------------------------- Ending Assets $ 11,232.2 $11,038.2 $ 10,738.7 ------------------------------------------------------------- Other Fee Income 0.0% $ 4.0 0.0% $ 4.2 0.1% $ 4.8 Investment expense -0.4% $ (44.3) -0.3% $ (35.5) -0.4% $ (42.1) TOTAL AFTER INVESTMENT EXPENSES Investment Income 8.8% $ 978.1 8.3% $ 902.3 7.0% $ 735.7 Realized Gains (losses) 0.3% 37.5 1.1% 125.1 1.6% 171.1 Total 9.1% $ 1,015.6 9.4% $ 1,027.4 8.6% $ 906.8 ------------------------------------------------------------- Ending Assets 11,232.2 11,038.2 10,738.7 ------------------------------------------------------------- Net unrealized gains (losses) on fixed maturities (9.8) (206.4) 252.5 ------------------------------------------------------------- Total invested assets (4) $ 11,222.5 $10,831.8 $ 10,991.2 -------------------------------------------------------------
- -------------------------------------------------------------------------------- (1) Yields are based on annual average asset carrying values, excluding unrealized gains (losses) in the fixed maturity asset category. (2) Yields are based on quarterly average asset carrying values, excluding unrealized gains (losses) in the fixed maturity asset category. (3) Equity real estate income is shown net of operating expenses, depreciation and minority interest. (4) Trading portfolio balances of $640.5 million as of June 30, 2001and results are excluded from the yield calculation. 26 Exhibit 19A (Unaudited) FIXED MATURITIES BY CREDIT QUALITY PUBLIC FIXED MATURITIES BY CREDIT QUALITY
- ------------------------------------------------------------------------------------------------------------------------------------ Quarter Ended Year Ended June 30, 2001 December 31, 2000 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ---- ----- ---------- ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ 1 Aaa/Aa/A $ 2,555.8 73.6% $ 2,576.2 $ 2,664.8 74.2% $ 2,671.6 2 Baa 730.7 20.9% 731.1 775.2 21.3% 759.9 3 Ba 147.6 4.2% 145.6 133.2 3.5% 125.5 4 B 30.1 0.8% 27.6 30.2 0.7% 25.1 5 Caa and lower 6.0 0.2% 7.4 10.8 0.2% 7.6 6 In or near default 4.0 0.1% 4.3 1.8 0.0% 1.6 --------- ---- --------- --------- ----- --------- Subtotal 3,474.2 99.8% 3,492.2 3,616.0 100.0% 3,591.3 Redeemable preferred stock 6.0 0.2% 5.8 1.0 0.0% 0.8 --------- ----- --------- --------- ----- --------- Total Public Fixed Maturities $ 3,480.2 100.0% $ 3,498.0 $ 3,617.0 100.0% $ 3,592.1 ========= ===== ========= ========= ===== ========= PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------------------------ Quarter Ended Year Ended June 30, 2001 December 31, 2000 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ---- ----- ---------- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ 1 Aaa/Aa/A $ 1,032.9 34.5% $ 1,046.1 $ 1,074.9 34.9% $ 1,086.3 2 Baa 1,606.5 53.2% 1,612.3 1,614.6 52.7% 1,628.8 3 Ba 304.5 10.0% 302.7 309.7 9.7% 302.2 4 B 42.0 1.3% 39.0 50.0 1.6% 48.5 5 Caa and lower 7.6 0.3% 7.6 9.9 0.4% 9.9 6 In or near default - 0.0% 0.7 0.2 0.0% 0.2 --------- ----- --------- --------- ----- --------- Subtotal 2,993.5 99.3% 3,008.4 3,059.3 99.2% 3,075.9 Redeemable preferred stock 21.4 0.7% 21.0 26.4 0.8% 25.0 --------- ----- --------- --------- ----- --------- Total Private Fixed Maturities $ 3,014.9 100.0% $ 3,029.4 $ 3,085.7 100.0% $ 3,100.9 ========= ===== ========= ========= ===== ========= TOTAL FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------------------------ Quarter Ended Year Ended June 30, 2001 December 31, 2000 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ---- ----- ---------- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ 1 Aaa/Aa/A $ 3,588.7 55.5% $ 3,622.3 $ 3,739.7 56.1% $ 3,757.9 2 Baa 2,337.2 35.9% 2,343.4 2,389.8 35.7% 2,388.7 3 Ba 452.1 6.9% 448.3 442.9 6.4% 427.7 4 B 72.1 1.0% 66.6 80.2 1.1% 73.6 5 Caa and lower 13.6 0.2% 15.0 20.7 0.3% 17.5 6 In or near default 4.0 0.1% 5.0 2.0 0.0% 1.8 --------- ----- --------- --------- ----- --------- Subtotal 6,467.7 99.6% 6,500.6 6,675.3 99.6% 6,667.2 Redeemable preferred stock 27.4 0.4% 26.8 27.4 0.4% 25.8 --------- ----- --------- --------- ----- --------- Total Fixed Maturities $ 6,495.1 100.0% $ 6,527.4 $ 6,702.7 100.0% $ 6,693.0 ========= ===== ========= ========= ===== ========= - ------------------------------------------------------------------------------------------------------------------------------------
The Exhibit above includes invested assets in the Closed Block. Excludes Trading Portfolio Assets. 27 Exhibit 19B (Unaudited)
FIXED MATURITIES BY INDUSTRY - ---------------------------------------------------------------------------------------------------------------------------------- June 30, 2001 ------------- ($ millions) - ---------------------------------------------------------------------------------------------------------------------------------- Industry Public % Private % Total % - -------- ------ - ------- - ----- - Consumer Goods & Services $ 386.6 11.0% $ 689.0 22.7% $ 1,075.6 16.5% Non-Government-Asset/Mortgage Backed 478.1 13.7% 268.2 8.9% 746.3 11.4% Public Utilities 421.6 12.1% 302.4 10.0% 724.0 11.1% Other Manufacturing 176.6 5.0% 483.5 16.0% 660.1 10.1% Financial Services 207.4 5.9% 394.9 13.0% 602.3 9.2% Transportation/Aerospace 294.7 8.4% 185.2 6.2% 479.9 7.4% Banks 415.1 11.9% 37.3 1.2% 452.4 6.9% Energy 201.7 5.8% 215.8 7.1% 417.5 6.4% Government & Agency 331.8 9.5% 0.2 0.0% 332.0 5.1% Nat/Res/Manuf(non-energy) 75.8 2.2% 274.0 9.0% 349.8 5.4% Mortgage Backed-Government & Agency 315.8 9.0% 3.0 0.1% 318.8 4.9% Telecommunications 80.9 2.3% 23.9 0.8% 104.8 1.6% Other 89.6 2.6% 16.4 0.5% 106.0 1.6% Media/Adver/Printing 21.3 0.6% 71.5 2.4% 92.8 1.4% Cable Television 1.0 0.0% 34.0 1.1% 35.0 0.5% Bank Holding Companies 0.0 0.0% 30.1 1.0% 30.1 0.5% --------------------------------------------------------------------- ------------ Total 3,498.0 100.0% 3,029.4 100.0% 6,527.4 100.0% ===================================================================== ============ December 31, 2000 ----------------- ($ millions) - ---------------------------------------------------------------------------------------------------------------------------------- Industry Public % Private % Total % - -------- ------ - ------- - ----- - Consumer Goods & Services $ 352.5 9.8% $ 690.4 22.2% $ 1,042.9 15.6% Non-Government-Asset/Mortgage Backed 469.6 13.1% 295.4 9.5% 765.0 11.4% Public Utilities 437.6 12.2% 322.9 10.4% 760.5 11.4% Other Manufacturing 190.6 5.3% 483.9 15.6% 674.5 10.1% Financial Services 219.4 6.1% 408.3 13.2% 627.7 9.4% Transportation/Aerospace 291.9 8.1% 189.0 6.1% 480.9 7.2% Energy 219.5 6.1% 235.1 7.6% 454.6 6.8% Banks 410.7 11.5% 37.3 1.2% 448.0 6.7% Government & Agency 366.1 10.2% 0.2 0.0% 366.3 5.5% Nat/Res/Manuf(non-energy) 82.1 2.3% 268.6 8.7% 350.7 5.2% Mortgage Backed-Government & Agency 335.8 9.3% 3.1 0.1% 338.9 5.1% Telecommunications 114.7 3.2% 32.6 1.1% 147.3 2.2% Other 79.8 2.2% 21.5 0.7% 101.3 1.5% Media/Adver/Printing 20.7 0.6% 65.3 2.1% 86.0 1.3% Bank Holding Companies 0.0 0.0% 32.5 1.0% 32.5 0.5% Cable Television 1.0 0.0% 14.9 0.5% 15.9 0.2% --------------------------------------------------------------------- ------------ Total 3,592.0 100.0% 3,101.0 100.0% 6,693.0 100.0% ===================================================================== ============
The Exhibit above includes invested assets in the Closed Block. Excludes Trading Portfolio Assets. 28 Exhibit 19C (Unaudited) VENTURE CAPITAL PARTNERSHIP INVESTMENTS VENTURE CAPITAL PARTNERSHIP INVESTMENTS:
- --------------------------------------------------------------------------------------------------------------------- June 30, 2001 December 31, 2000 ($ in millions) ($ in millions) - --------------------------------------------------------------------------------------------------------------------- Equity Method Public common stock $ 20.7 $ 47.8 Private common stock 113.7 97.2 ----------------- --------------- Sub-total $ 134.4 $ 145.0 Cost Method Public common stock $ 19.4 $ 26.8 Private common stock 113.6 106.2 ----------------- --------------- Sub-total $ 133.0 $ 133.0 ----------------- --------------- Total Venture Capital Partnership Investments $ 267.4 $ 278.0 ================= =============== VENTURE CAPITAL PARTNERSHIP INVESTMENTS BY SECTOR: - ---------------------------------------------------------------------------------------------------------------------------- June 30, 2001 December 31, 2000 -------------------------- -------------------------- ($ Millions) % ($ Millions) % - ---------------------------------------------------------------------------------------------------------------------------- Information Technology $ 138.2 51.7% $ 144.1 51.8% Domestic LBO 48.7 18.1% 50.8 18.3% Life Sciences 21.1 7.9% 21.0 7.6% Telecommunications 10.7 4.0% 15.9 5.7% International LBO 19.2 7.2% 18.2 6.6% Merchant Banking 12.8 4.8% 13.7 4.9% Other 16.7 6.2% 14.3 5.1% ----------------- --- --------------- --- Total Venture Capital Partnership Investments by Sector $ 267.4 100.0% $ 278.0 100.0% ================= ===== =============== =====
Exhibit 20 (Unaudited) PROBLEM, POTENTIAL PROBLEM AND RESTRUCTURED COMMERCIAL MORTGAGES AT CARRYING VALUE - -------------------------------------------------------------------------------- June 30, Dec. 31, 2001 2000 ---- ---- ($ millions) - -------------------------------------------------------------------------------- Total Commercial Mortgages $ 1,444.4 $ 1,443.3 ========== ========== Problem commercial mortgages (1) 13.6 14.8 Potential problem commercial mortgages 75.3 64.7 Restructured commercial mortgages 69.3 75.6 ---------- ---------- Total problem, potential problem & restructured commercial mortgages $ 158.2 $ 155.1 ========== ========== Total problem, potential problem & restructured commercial mortgages as % of total commercial mortgages 11.0% 10.7% ==== ==== Valuation allowances/writedowns (2) Problem loans $ -- $ 0.4 Potential problem loans 13.4 14.3 Restructured loans 6.4 7.7 ---------- ---------- Total valuation allowances/writedowns $ 19.8 $ 22.4 ========== ========== Total valuation allowances as a percent of problem problem, potential problem and restructured commercial mortgages at carrying value before valuation allowances and writedowns 11.1% 12.6% ==== ==== - -------------------------------------------------------------------------------- (1) Problem commercial mortgages include delinquent loans and mortgage loans in foreclosure. (2) Includes impairment writedowns recorded prior to adoption of SFAS No. 114, Accounting by Creditors for Impairment of a Loan. The Exhibit above includes invested assets in the Closed Block. 30 Exhibit 21A (Unaudited)
EQUITY REAL ESTATE - ------------------------------------------------------------------------------------- June 30 Dec 31, 2001 2000 ---- ---- ($ millions) - ------------------------------------------------------------------------------------- TYPE Real estate $ 53.6 $ 54.2 Joint ventures 123.3 116.3 ---------- ----------- Subtotal 176.9 170.5 Foreclosed 40.8 41.5 ---------- ----------- Total $ 217.7 $ 212.0 ========== =========== - --------------------------------------------------------------------------------------------------------- ------------ Three Months Ended Six Months Ended Year Ended June 30 June 30, Dec 31, 2001 2000 2001 2000 2000 ---- ---- ---- ---- ---- ($ millions) ($ millions) ($ millions) - --------------------------------------------------------------------------------------------------------- ------------ Sales Proceeds $ - $ 4.7 $ 7.7 $ 5.0 $ 214.0 Carrying value at date of sale - 2.8 8.0 3.0 182.9 ========== =========== ============ =========== ============ Gain (loss) $ - $ 1.9 $ (0.3) $ 2.0 $ 31.1 ========== =========== ============ =========== ============
31 Exhibit 21B (Unaudited) MORTGAGES AND REAL ESTATE - -------------------------------------------------------------------------------- June 30, 2001 Dec 31, 2000 ------------- ------------ ($ millions) ($ millions) - -------------------------------------------------------------------------------- Geographic Region Southeast $ 428.1 21.6% $ 420.3 21.4% West 340.0 17.2% 341.0 17.3% Northeast 326.5 16.5% 337.9 17.2% Mountain 435.2 22.1% 430.0 21.9% Midwest 327.7 16.5% 322.8 16.4% Southwest 119.3 6.0% 114.7 5.8% --------- ----- ---------- ---- $ 1,976.8 100% $ 1,966.7 100% ========= ===== ========== ---- June 30, 2001 Dec 31, 2000 ------------- ------------ ($ millions) ($ millions) - -------------------------------------------------------------------------------- Property Type: Office Buildings $ 837.8 42.3% $ 853.4 43.4% Agricultural 314.6 15.9% 311.3 15.8% Hotel 281.4 14.2% 287.6 14.6% Retail 160.2 8.1% 147.4 7.5% Industrial 156.1 7.9% 133.6 6.8% Other 125.2 6.3% 133.0 6.8% Apartment Buildings 101.5 5.1% 100.4 5.1% --------- ----- ---------- ---- $ 1,976.8 100% $ 1,966.7 100% ========= ===== ========== ---- The Exhibit above includes invested assets in the Closed Block. 32 Exhibit 22 (Unaudited)
HISTORICAL QUARTERLY DATA - ------------------------------------------------------------------------------------------------------------------------------------ Q2'01 Q1'01 2000 Q4'00 Q3'00 Q2'00 ($ millions, except per share amounts) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 173.4 $ 165.1 $ 700.5 $ 196.5 $ 162.5 $ 176.5 Universal life and investment-type product policy fees 52.3 49.7 205.8 48.8 51.2 55.9 Net investment income 189.5 183.7 978.1 165.2 231.6 229.5 Net realized gains on investments 3 2.5 37.5 4.9 22.9 (8.9) Group pension profits 9.3 9.9 37.1 8.1 10.8 8.1 Retail Brokerage and Investment Banking 99.8 71.1 59.8 13.1 12.3 16.0 Other income 41.7 30.3 163.5 36.2 40.0 46.1 ----------------------------------------------------------------------------- Total revenues 569.0 512.3 2,182.3 472.8 531.3 523.2 ----------------------------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 194.5 197.7 787.8 210.7 194.0 202.4 Interest credited to policyholder account balances 27 28.3 110.6 27.5 28.9 25.8 Amortization of deferred policy acquisition costs 28.3 37.2 139.1 33.7 30.7 37.2 Dividends to policyholders 60.6 54.6 235.5 64.6 61.0 52.7 Demutualization Expense Other operating costs and expenses 226.8 174.2 513.2 124.2 116.4 133.6 ----------------------------------------------------------------------------- Total benefits and expenses 537.2 492.0 1,786.2 460.7 431.0 451.7 ----------------------------------------------------------------------------- Income before income taxes and extraordinary item 31.8 20.3 396.1 12.1 100.3 71.5 Income tax expense 9.5 7.0 133.8 3.0 33.1 23.4 ----------------------------------------------------------------------------- Income before extraordinary item 22.3 13.3 262.3 9.1 67.2 48.1 Extraordinary item - - (37.7) - (1.0) - ----------------------------------------------------------------------------- Net income $ 22.3 $ 13.3 $ 224.6 $ 9.1 $ 66.2 $ 48.1 ============================================================================= Operating income: Net Income $ 22.3 $ 13.3 $ 224.6 $ 9.1 $ 66.2 $ 48.1 Less: Net realized gains on investments (after-tax) (2.1) (1.5) (24.4) (3.2) (14.9) 5.8 Plus: Policyholder dividends resulting from closed 1.5 (0.1) (4.5) (1.7) 1.7 (2.9) block realized gains (after tax) Surplus tax - - - - - - Extraordinary Items/Demutualization expenses - - 37.7 - 1.0 - ----------------------------------------------------------------------------- Operating income $ 21.7 $ 11.7 $ 233.4 $ 4.2 $ 54.0 $ 51.0 Early Retirement and Realignment Charge - - - - - $ - ----------------------------------------------------------------------------- Operating Income Excluding Charge $ 21.7 $ 11.7 $ 233.4 $ 4.2 $ 54.0 $ 51.0 ============================================================================= Number of Shares Used in Per Share Calculations(1): BASIC 49,363,512 48,720,335 46,466,675 46,149,301 46,147,359 46,528,902 DILUTED 50,913,099 50,314,782 47,787,893 48,187,864 47,665,052 47,549,860 Net Income Per Share: BASIC $ 0.45 $ 0.27 $ 4.83 $ 0.20 $ 1.43 $ 1.03 DILUTED $ 0.44 $ 0.26 $ 4.70 $ 0.19 $ 1.39 $ 1.01 Income before extraordinary item(1) BASIC $ 0.45 $ 0.27 $ 5.64 $ 0.20 $ 1.46 $ 1.03 DILUTED $ 0.44 $ 0.26 $ 5.49 $ 0.19 $ 1.41 $ 1.01 Operating Income Before Early Retirement and Realignment Charge Per Share: BASIC $ 0.44 $ 0.24 $ 5.02 $ 0.09 $ 1.17 $ 1.10 DILUTED $ 0.43 $ 0.23 $ 4.88 $ 0.09 $ 1.13 $ 1.07 Operating Income Per Share: BASIC $ 0.44 $ 0.24 $ 5.02 $ 0.09 $ 1.17 $ 1.10 DILUTED $ 0.43 $ 0.23 $ 4.88 $ 0.09 $ 1.13 $ 1.07 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ Q1'00 1999 Q4'99 Q3'99 Q2'99 Q1'99 ($ millions, except per share amounts) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 165.0 $ 717.1 $ 203.5 $ 165.0 $ 178.9 $ 169.7 Universal life and investment-type product policy fees 49.9 196.3 50.6 47.8 52.5 45.4 Net investment income 351.8 902.3 298.8 219.3 196.1 188.1 Net realized gains on investments 18.6 125.1 24.4 24.4 43.1 33.2 Group pension profits 10.1 63.0 15.2 21.5 12.0 14.3 Retail Brokerage and Investment Banking 18.4 63.4 17.6 15.1 17.5 13.2 Other income 41.2 133.8 39.6 32.5 32.5 29.2 ----------------------------------------------------------------------------- Total revenues 655.0 2,201.0 649.7 525.6 532.6 493.1 ----------------------------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 180.7 787.1 219.3 180.4 200.5 186.9 Interest credited to policyholder account balances 28.4 115.5 28.3 28.5 28.6 30.1 Amortization of deferred policy acquisition costs 37.5 137.8 29.2 41.3 32.6 34.7 Dividends to policyholders 57.2 230.7 49.5 64.1 53.5 63.6 Demutualization Expense 2.0 0.1 1.9 Other operating costs and expenses 139.0 547.3 148.8 166.3 125.2 107.0 ----------------------------------------------------------------------------- Total benefits and expenses 442.8 1,820.4 475.2 482.5 440.4 422.3 ----------------------------------------------------------------------------- Income before income taxes and extraordinary item 212.2 380.6 174.5 43.1 92.2 70.8 Income tax expense 74.3 132.0 60.9 15.5 30.8 24.8 ----------------------------------------------------------------------------- Income before extraordinary item 137.9 248.6 113.6 27.6 61.4 46.0 Extraordinary item (36.7) - ----------------------------------------------------------------------------- Net income $ 101.2 $ 248.6 $ 113.6 $ 27.6 $ 61.4 $ 46.0 ============================================================================= Operating income: Net Income $ 101.2 $ 248.6 $ 113.6 $ 27.6 $ 61.4 $ 46.0 Less: Net realized gains on investments (after-tax) (12.1) (81.3) (15.8) (15.9) (28.0) (21.6) Plus: Policyholder dividends resulting from closed (1.6) 1.9 -3 1.2 0.9 2.8 block realized gains (after tax) Surplus tax - - - - - - Extraordinary Items/Demutualization expenses 36.7 2.0 0.1 1.9 - - ----------------------------------------------------------------------------- Operating income $ 124.2 $ 171.2 $ 94.9 $ 14.8 $ 34.3 $ 27.2 Early Retirement and Realignment Charge $ - $ 38.8 $ 0.5 $ 38.3 ----------------------------------------------------------------------------- Operating Income Excluding Charge $ 124.2 $ 210.0 $ 95.4 $ 53.1 $ 34.3 $ 27.2 ============================================================================= Number of Shares Used in Per Share Calculations(1): BASIC 47,104,995 47,238,328 47,238,328 47,238,166 47,237,950 47,238,156 DILUTED 47,703,881 47,812,953 47,877,402 47,988,904 47,711,875 47,434,694 Net Income Per Share: BASIC $ 2.15 $ 5.26 $ 2.40 $ 0.58 $ 1.30 $ 0.97 DILUTED $ 2.12 $ 5.20 $ 2.37 $ 0.58 $ 1.29 $ 0.97 Income before extraordinary item(1) BASIC $ 2.93 $ 5.26 $ 2.40 $ 0.58 $ 1.30 $ 0.97 DILUTED $ 2.89 $ 5.20 $ 2.37 $ 0.58 $ 1.29 $ 0.97 Operating Income Before Early Retirement and Realignment Charge Per Share: BASIC $ 2.64 $ 4.45 $ 2.02 $ 1.13 $ 0.73 $ 0.58 DILUTED $ 2.60 $ 4.39 $ 1.99 $ 1.11 $ 0.72 $ 0.57 Operating Income Per Share: BASIC $ 2.64 $ 3.62 $ 2.01 $ 0.31 $ 0.73 $ 0.58 DILUTED $ 2.60 $ 3.58 $ 1.98 $ 0.31 $ 0.72 $ 0.57 - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------------ 1998 Q4'98 Q3'98 Q2'98 ($ millions, except per share amounts) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 721.8 $ 200.5 $ 167.5 $ 177.4 Universal life and investment-type product policy fees 151.6 39.7 37.6 37.7 Net investment income 735.7 180.9 197.1 175.5 Net realized gains on investments 171.1 1.5 12.0 100.1 Group pension profits 56.8 22.7 11.4 13.1 Retail Brokerage and Investment Banking 43.5 11.3 8.0 15.0 Other income 119.7 36.4 29.1 28.3 ---------------------------------------------------- Total revenues 2,000.2 493.0 462.7 547.1 ---------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 789.8 227.4 182.7 193.2 Interest credited to policyholder account balances 113.7 25.7 29.3 28.4 Amortization of deferred policy acquisition costs 131.0 28.1 32.1 37.9 Dividends to policyholders 218.2 54.6 55.2 53.8 Demutualization Expense 27.2 11.7 5.8 4.6 Other operating costs and expenses 453.3 123.6 102.7 117.6 ---------------------------------------------------- Total benefits and expenses 1,733.2 471.1 407.8 435.5 ---------------------------------------------------- Income before income taxes and extraordinary item 267.0 21.9 54.9 111.6 Income tax expense 103.0 11.7 19.5 41.5 ---------------------------------------------------- Income before extraordinary item 164.0 10.2 35.4 70.1 Extraordinary item ---------------------------------------------------- Net income $ 164.0 $ 10.2 $ 35.4 $ 70.1 ==================================================== Operating income: Net Income $ 164.0 $ 10.2 $ 35.4 $ 70.1 Less: Net realized gains on investments (after-tax) (111.2) (0.9) (7.9) (65.0) Plus: Policyholder dividends resulting from closed block realized gains (after tax) Surplus tax - - (1.9) 0.9 Extraordinary Items/Demutualization expenses 27.2 11.7 5.8 4.6 ---------------------------------------------------- Operating income $ 80.0 $ 21.0 $ 31.4 $ 10.6 Early Retirement and Realignment Charge ---------------------------------------------------- Operating Income Excluding Charge $ 80.0 $ 21.0 $ 31.4 $ 10.6 ==================================================== Number of Shares Used in Per Share Calculations(1): BASIC 47,241,084 47,241,084 47,238,166 47,237,950 DILUTED 47,884,815 47,884,815 47,988,904 47,711,875 Net Income Per Share: BASIC $ 3.47 $ 0.22 $ 0.75 $ 1.48 DILUTED $ 3.42 $ 0.21 $ 0.74 $ 1.47 Income before extraordinary item(1) BASIC $ 3.47 $ 0.22 $ 0.75 $ 1.48 DILUTED $ 3.42 $ 0.21 $ 0.74 $ 1.47 Operating Income Before Early Retirement and Realignment Charge Per Share: BASIC $ 1.69 $ 0.44 $ 0.66 $ 0.22 DILUTED $ 1.67 $ 0.44 $ 0.65 $ 0.22 Operating Income Per Share: BASIC $ 1.69 $ 0.44 $ 0.66 $ 0.22 DILUTED $ 1.67 $ 0.44 $ 0.65 $ 0.22 - -----------------------------------------------------------------------------------------------------------
(1) Income before extraordinary items has been restated to reflect the reclassification of demutualization expenses from extraordinary items to a separate caption, "Demutualization Expenses." 33 Exhibit 23 STATUTORY EXPENSE RATIOS
- ----------------------------------------------------------------------------------------------------------------------------------- Three Months Ending Six Months Ending June 30, June 30, 2001 2000 2001 2000 ---- ---- ---- ---- - ----------------------------------------------------------------------------------------------------------------------------------- PREMIUMS AND DEPOSITS (1): MONY Life Insurance Company $ 201.8 $ 307.6 $ 404.2 $ 553.6 MONY Life Insurance Company of America 237.3 466.4 450.1 932.6 ------------ ------------ ------------ ------------ Total $ 439.1 $ 774.0 $ 854.3 $ 1,486.2 ============ ============ ============ ============ GENERAL EXPENSES (2) (4) (5): MONY Life Insurance Company $ 59.2 $ 66.0 $ 117.3 $ 134.1 MONY Life Insurance Company of America 33.0 28.7 64.5 58.1 ------------ ------------ ------------ ------------ Total $ 92.2 $ 94.7 $ 181.8 $ 192.2 ============ ============ ============ ============ LESS REAL ESTATE EXPENSES (3): MONY Life Insurance Company $ 2.5 $ 5.6 $ 4.8 $ 11.4 MONY Life Insurance Company of America 0.7 0.7 1.3 1.4 ------------ ------------ ------------ ------------ Total $ 3.2 $ 6.3 $ 6.1 $ 12.8 ============ ============ ============ ============ Expenses (excluding real estate expenses) $ 89.0 $ 88.4 $ 175.7 $ 179.4 ============ ============ ============ ============ Expenses (excluding real estate expenses) to Net Premiums 20.3% 11.4% 20.6% 12.1% and Deposits - ----------------------------------------------------------------------------------------------------------------------------------- As of December 31, 2000 1999 1998 1997 1996 ---- ---- ---- ---- ---- - ----------------------------------------------------------------------------------------------------------------------------------- PREMIUMS AND DEPOSITS (1): MONY Life Insurance Company $ 1,126.8 $ 900.0 $ 919.8 $ 1,003.0 $ 1,046.6 MONY Life Insurance Company of America 1,549.7 1,361.0 774.3 770.6 713.2 ------------ ------------ ------------ ------------ ------------ Total $ 2,676.5 $ 2,261.0 $ 1,694.1 $ 1,773.6 $ 1,759.8 ============ ============ ============ ============ ============ GENERAL EXPENSES (2) (4) (5): MONY Life Insurance Company $ 261.1 $ 247.8 $ 308.2 $ 355.9 $ 417.4 MONY Life Insurance Company of America 117.9 106.7 86.7 65.1 56.4 ------------ ------------ ------------ ------------ ------------ Total $ 379.0 $ 354.5 $ 394.9 $ 421.0 $ 473.8 ============ ============ ============ ============ ============ LESS REAL ESTATE EXPENSES (3): MONY Life Insurance Company $ 22.5 $ 34.9 $ 56.3 $ 86.2 $ 130.4 MONY Life Insurance Company of America 2.7 2.8 3.2 5.4 6.4 ------------ ------------ ------------ ------------ ------------ Total $ 25.2 $ 37.7 $ 59.5 $ 91.6 $ 136.8 ============ ============ ============ ============ ============ Expenses (excluding real estate expenses) $ 353.8 $ 316.8 $ 335.4 $ 329.4 $ 337.0 ============ ============ ============ ============ ============ Expenses (excluding real estate expenses) 13.2% 14.0% 19.8% 18.6% 19.1% to Net Premiums and Deposits - -----------------------------------------------------------------------------------------------------------------------------------
(1) Full Year Results from Annual Statement Page 4, Lines 1 and 1A (2) Full Year Results from Annual Statement Exhibit 5, Line 10 (3) Full Year Results from Annual Statement Exhibit 5, Line 9.1 (4) 1998 General Expenses Exclude Year to date Disbursements of $20 million and quarter to date disbursements of $5.1 million for Y2K and other strategic items (5) 1999 Excludes $59.7 million of early retirement and realignment charge (6) Includes transfers to new products series of $72 million and $358 for three month ended June 30, 2001 and 2000 respectively, $143 million and $652 million for six month ended June 30, 2001 and 2000 respectively, and $1 billion and $727 million for years ended December 31, 2000 and 1999 respectively. 34 -----END PRIVACY-ENHANCED MESSAGE-----