-----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, Jv7TZ+xyGLeyutDiuY4LRbLf2q8+V8FeT87zAb53thioJnY71Ql1lWlz7gONbNZ9 dVrH6q0tUlX3MkEEYEK6wg== 0000950109-01-504781.txt : 20020410 0000950109-01-504781.hdr.sgml : 20020410 ACCESSION NUMBER: 0000950109-01-504781 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20011108 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20011108 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: 1778149 BUSINESS ADDRESS: STREET 1: 1740 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127082000 8-K 1 d8k.txt 8K ================================================================================ 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) - November 8, 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 November 8, 2001, The MONY Group Inc. issued a News Release reporting its financial results for the third 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 November 8, 2001. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three and Nine-Month Periods Ended September 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: November 8, 2001 Exhibit Index 99.1 News Release of The MONY Group Inc., dated November 8, 2001. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three and Nine-Month Periods Ended September 30, 2001 and 2000." EX-99.1 3 dex991.txt NEWS RELEASE THE The MONY Group Inc. News Release [LOGO] MONY 1740 Broadway MEDIA CONTACTS: GROUP 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 Inc. Meets Revised Expectations for Third Quarter Third Quarter Operating EPS is $0.06 Excluding Venture Capital NEW YORK (November 8, 2001) - The MONY Group Inc. (NYSE: MNY) today reported operating income, excluding venture capital, for the quarter ended September 30, 2001 of $2.8 million or $0.06 per share. Including a venture capital loss of $10.1 million or $0.21 per share, the company reported an operating loss of $7.3 million or $0.15 per share. For the quarter ended September 30, 2000, operating income, excluding venture capital income, was $24.2 million or $0.50 per share. Including venture capital returns of $29.8 million or $0.63 per share, operating income was $54 million or $1.13 per share. For the quarter ended September 30, 2001, MONY had a net loss of $8.7 million or $0.18 per share. This included a $1.4 million or $0.03 per share after tax net realized loss from investments. Comparably, net income was $66.2 million or $1.39 per share for the quarter ended September 30, 2000. This included net realized gains from investments of $13.2 million after tax or $0.28 per share and included an extraordinary charge of $1.0 million or $0.02 per share. "As we previously reported, our results were affected by the challenging economic environment and the tragic events of September 11th," said Michael I. Roth, chairman and CEO, The MONY Group. "Specifically, we experienced a small amount of life insurance claims as a result of the World Trade Center tragedy; lower earnings from our retail brokerage segment due in part to the four-day close in the market; and lower accumulation assets under management. At the same time, we experienced sales increases in our individual life insurance businesses as well as net inflows for our mutual funds and annuities." "Our profit enhancement initiatives will be complete by year end, and we expect to realize the benefit of these efforts in 2002," added Roth. "Specifically, our manufacturing unit plans to decrease the time-to-market of new products and our distribution group has clearly defined growth opportunities to reach new customers, all of which will lead to increased market share and revenue growth." 2 Third quarter highlights include: - -------------------------------- . MONY is on target to complete the strategic initiatives outlined earlier this year to enhance profitability and achieve $35 million in cost savings. These initiatives are designed to generate new revenue opportunities, enhance operating efficiency, and more effectively allocate resources and capital. As part of these strategic initiatives, the company is implementing revenue generation and cost containment initiatives at both MONY Life Insurance Company and Advest. These measures will result in the elimination of approximately 10 percent of the company's workforce. . As part of the company's continuing efforts to enhance its product and service offering and expand its distribution channels, MONY's Advest subsidiary announced its intent to acquire Lebenthal & Co. The acquisition is expected to close by the end of the fourth quarter. A financial services firm offering a range of investment products and services to a nationwide customer base, Lebenthal is one of the nation's leading experts in tax-exempt investing through its concentrated expertise in municipal bonds. Lebenthal also has an asset management subsidiary and manages three open-ended municipal bond funds including the first taxable municipal bond fund. . As of September 30, 2001, book value was $43.19 per share (excluding accumulated comprehensive income) compared to $42.55 per share as of June 30, 2001. . As of November 6, the company had repurchased approximately 46 percent of the 2.5 million shares authorized for the company's second stock repurchase program at an average share price of $34. The company has repurchased all of the 2.4 million shares authorized through MONY's first stock repurchase program at an average share price of $33. Nine-Month Results - ------------------ Operating income, excluding venture capital income, for the nine months ended September 30, 2001 was $35.2 million or $0.70 per share. Including a venture capital loss of $9.1 million or $0.18 per share, operating income was $26.1 million or $0.52 per share. Operating income, excluding venture capital income, for the nine months ended September 30, 2000 was $71.9 million or $1.51 per share. Including a venture capital gain of $157.3 million or $3.30 per share, operating income for the nine months ended September 30, 2000 was $229.2 million or $4.81 per share. Net income for the nine months ended September 30, 2001 was $26.9 million or $0.53 per share. Net income for the first nine months of 2000 was $215.5 million or $4.53 per share. 3 An earnings summary is as follows: ($ in million except share data and per share amount)
Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended 9/30/01 9/30/00 9/30/01 9/30/00 Operating Income, excluding $ 2.8 $ 24.2 $ 35.2 $ 71.9 Venture Capital Venture Capital Income (loss) (10.1) 29.8 (9.1) 157.3 ---------------- ---------------- ---------------- ---------------- Operating Income (loss) (7.3) 54.0 26.1 229.2 Realized gains/(losses)from (1.4) 13.2 0.8 24.0 Investments Extraordinary Item - Net - (1.0) - (37.7) ---------------- ---------------- ---------------- ---------------- Net Income $ (8.7) $ 66.2 $ 26.9 $ 215.5 ================ ================ ================ ================ Diluted Per Share Amounts (See Note 1): Operating Income Before Venture $ 0.06 $ 0.50 $ 0.70 $ 1.51 Capital Venture capital income (loss) (0.21) 0.63 (0.18) 3.30 ---------------- ---------------- ---------------- ---------------- Operating income (loss) (0.15) 1.13 0.52 4.81 Realized gains/(losses) from (0.03) 0.28 0.01 0.51 investments Extraordinary - (0.02) - (0.79) ---------------- ---------------- ---------------- ---------------- Net income (loss) $ (0.18) $ 1.39 $ 0.53 $ 4.53 ================ ================ ================ ================ Share Data: Weighted-average shares outstanding 48,642,274 46,147,359 48,915,523 46,572,467 Plus: Incremental shares from 0 1,517,693 1,597,601 1,046,639 ---------------- ---------------- ---------------- ---------------- assumed conversion of dilutive securities Weighted-average shares used in 48,642,274 47,665,052 50,513,124 47,619,106 ================ ================ ================ ================ diluted per-share calculations
Note 1: 1,634,471 incremental shares from the assumed conversion of dilutive - ------- securities were not included in the computation of per share amounts for the three month period ended September 30, 2001 because their inclusion would be antidilutive. 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. "Our individual life sales exceeded the prior year and reflect the growing demand for life insurance as part of a well-rounded financial plan," said Roth. "Our career organization is beginning to grow sales levels of insurance products through more focused customer outreach that will only be enhanced as a result of our reorganization efforts. And our USFL business unit continues to build market share in the niche insurance segment of specialty-risk life insurance." New life insurance premiums (first-year and single premiums) sold through the career organization were $22.6 million for the quarter compared to $19.5 million during the third quarter of 2000. Year-to-date premiums from the career organization were $60.9 million, compared with $62.7 million for the first nine months of 2000. U.S. Financial Life Insurance Company (USFL) premiums were $11.7 million for the third quarter, compared with $10.2 million for the quarter ended September 30, 2000. Year-to-date sales were $34.2 million compared with $30.3 million during the same period last year. Total new annualized and single life insurance premiums for the third quarter of 2001 were $54.8 million, compared with $95.8 million during the third quarter of 2000 and reflect a $46 million reduction in COLI sales. Annualized premiums for the nine months ended September 30, 2001 were $151.9 million compared with $205.3 million during the prior year period. Accumulation Segment - -------------------- The MONY Group provides variable annuities and proprietary retail mutual funds through its career organization, member companies and third-party broker-dealers. Within the context of 16 percent and 31 percent declines for the Dow Jones and NASDAQ markets respectively during the quarter, accumulation assets under management decreased 12 percent to $8.2 billion as of September 30, 2001 from $9.3 billion as of June 30, 2001. Despite the adverse market conditions, new accumulation assets raised in the 2001 third quarter were $414 million compared to $523 million during the prior year period. MONY experienced net inflows from both its mutual fund and annuities businesses during the quarter. For the nine months ended September 30, 2001, new accumulation 5 assets raised were $1.3 billion, compared with a record $2 billion for the first nine months of 2000. The Enterprise Group of Funds had third quarter 2001 sales of $316 million, $244 million of which were sold by third-party broker-dealers and $72 million were sold through The MONY Group's career organization. Comparably, third quarter 2000 sales for Enterprise were $433 million, $305 million of which were from third-party broker dealers and $128 million from the career organization. For the first nine months of 2001, Enterprise sales were approximately $1 billion, $749 million of which were sold by third-party broker-dealers and $288 million were sold through The MONY Group's career organization. For the first nine-months of 2000, Enterprise sales were approximately $1.7 billion, $1.2 billion of which were sold by third-party broker-dealers and $509 million were sold through The MONY Group's career organization. Annuity sales were $98 million during the third quarter of 2001 compared to $90 million during the third quarter of 2000. For the nine months ended September 30, 2001, annuity sales were $272 million compared with $322 million for the prior year period. 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 primarily through MONY's Advest and MONY Securities Corp. subsidiaries. The Retail Brokerage and Investment Banking segment, formed during the first quarter of 2001, had revenues of $82.1 million for the third quarter and $253 million for the period ended September 30, 2001. Overall market conditions, coupled with the four-day market close in September, affected trading volume at Advest and MONY Securities Corporation. Advest revenues were $72 million for the third quarter of 2001, compared to $101.4 million on a proforma basis for the third quarter of 2000. Revenues from Advest's private client group were $42.5 million for the quarter ended September 30, 2001, compared to $57.4 million on a proforma basis 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. MONY Securities Corp., a registered securities broker-dealer for MONY's career network, posted revenues of $10 million for the third quarter of 2001, compared with $12.3 million during the comparable 2000 quarter. Fourth Quarter and 2002 Outlook - ------------------------------- 6 MONY maintains its earnings outlook for the fourth quarter of $0.10 - $0.15 per share excluding venture capital income. This outlook assumes an improvement in market conditions that will increase assets under management and trading volumes. As announced on October 18, 2001, MONY anticipates that it will take a one-time, after-tax charge of approximately $2.00 per share in the fourth quarter. This charge includes severance and compensation for affected employees, discontinued real estate leases, and certain other charges, all in connection with the reorganization. It also anticipates the inclusion of other charges that may result from the uncertain market conditions. For 2002, MONY expects operating income to be $1.25 per share excluding venture capital income. This guidance assumes an approximate 7 percent annual appreciation in the equity markets. An additional $0.70 per share gain is expected from the closing payment in the company's pension business. 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 $55 billion in assets under management and administration, provides life insurance, annuities, mutual funds, brokerage, asset management, business & estate planning, trust and investment banking products and services to individual and institutional clients through several member companies. The MONY Group focuses primarily on offering customized financial solutions through multiple distribution channels, including a career network, brokerage general agencies, financial advisors, brokers, and other complementary channels. The MONY Group's (www.mony.com) member companies include The Advest Group, Inc., MONY Life Insurance Company, MONY Life Insurance Company of America, Matrix Capital Markets Group Inc., Enterprise Capital Management, Inc., U.S. Financial Life Insurance Company, MONY Securities Corporation and Trusted Securities Advisors Corp. 7 Note: The MONY Group Inc. will host a conference call to discuss 3Q 2001 financial results at 9:00 am (EST) on Thursday, November 8, 2001. The call can be heard via the Investor Relations link at www.mony.com. ------------ SUPPLEMENTAL FINANCIAL INFORMATION To assist interested parties in analyzing the Company's consolidated financial results attached is the following supplemental information: Exhibit I presents certain summary consolidated income statement data of The MONY Group for the three-month and nine-month periods ended September 30, 2001 and 2000. Exhibit II presents certain summary consolidated balance sheet data as of September 30, 2001. Exhibit III presents information regarding new business generated by the Company for the three-month and nine-month periods ended September 30, 2001 and 2000. 8 Exhibit I THE MONY GROUP INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT
($ in millions, except share data and per Three Months Ended Nine Months Ended share amounts) September 30, September 30, 2001 2000 2001 2000 Revenues: Premiums $ 162.0 $ 162.5 $ 500.5 $ 504.0 Universal life and investment-type product policy fees 50.1 51.2 152.1 157.0 Net investment income 172.9 231.6 546.1 812.9 Net realized gains (losses) on investments 0.5 22.9 6.0 32.6 Group Pension Profits 8.0 10.8 27.2 29.0 Retail brokerage and investment banking 82.1 12.3 253.0 46.7 Other income 21.8 40.0 93.8 127.3 -------------- -------------- -------------- -------------- 497.4 531.3 1,578.7 1,709.5 Benefits and Expenses: Benefits to policyholders 203.9 194.0 596.1 577.1 Interest credited to policyholders' account balances 27.9 28.9 83.2 83.1 Amortization of deferred policy acquisition costs 32.9 30.7 98.4 105.4 Dividends to policyholders 54.5 61.0 169.7 170.9 Other operating costs and expenses 190.0 116.4 591.0 389.0 -------------- -------------- -------------- -------------- 509.2 431.0 1,538.4 1,325.5 Income before income taxes and extraordinary item (11.8) 100.3 40.3 384.0 Income tax expense (3.1) 33.1 13.4 130.8 -------------- -------------- -------------- -------------- Income before extraordinary item (8.7) 67.2 26.9 253.2 Extraordinary item, net -- (1.0) (37.7) -------------- -------------- -------------- -------------- Net income $ (8.7) $ 66.2 $ 26.9 $ 215.5 ============== ============== ============== ============== Operating Income: Net income $ (8.7) $ 66.2 $ 26.9 $ 215.5 Adjustments: Net realized losses/(gains) after tax 1.4 (13.2) (0.8) (24.0) on investments excluding closed block Extraordinary items -- 1.0 -- 37.7 -------------- -------------- -------------- -------------- Operating income $ (7.3) $ 54.0 $ 26.1 $ 229.2 ============== ============== ============== ============== Diluted Per Share Amounts (See Note 1): Diluted Operating Income $ (0.15) $ 1.13 $ 0.52 $ 4.81 Diluted Net Income Before Extraordinary Item $ (0.18) $ 1.41 $ 0.53 $ 5.32 Diluted Net Income $ (0.18) $ 1.39 $ 0.53 $ 4.53 Share Data: Weighted-average Shares Outstanding 48,642,274 46,147,359 48,915,523 46,572,467 Plus: Incremental Shares from Assumed Conversion of Diluted Securities -- 1,517,693 1,597,601 1,046,639 -------------- -------------- -------------- -------------- Weighted-average Shares Used in Diluted Per Share Calculations 48,642,274 47,665,052 50,513,124 47,619,106 ============== ============== ============== ==============
Note 1: 1,634,471 incremental shares from the assumed conversion of dilutive - ------- securities were not included in the computation of per share amounts for the three month period ended September 30, 2001 because their inclusion would be antidilutive. 9 Exhibit II SUMMARY CONSOLIDATED BALANCE SHEET DATA
Consolidated Balance Sheet Data: As of September, ($ in millions, except per share amounts) 2001 Invested assets (including cash and cash equivalents) $ 11,862.6 Assets transferred in Group Pension Transaction 4,811.8 Separate account assets 4,767.0 Other assets 4,166.0 ------------------ Total assets $ 25,607.4 ================== Policyholders' liabilities $ 10,412.6 Liabilities transferred in Group Pension Transaction 4,742.3 Separate account liabilities 4,764.3 Short-term debt 546.8 Long-term debt 585.6 Other liabilities 2,376.4 ------------------ Total liabilities $ 23,428.0 Equity 2,117.5 Accumulated comprehensive income 61.9 ------------------ Total shareholders' equity 2,179.4 Total liabilities and shareholders' equity $ 25,607.4 ================== Per share amounts: Diluted book value per share $ 44.46 ================== Diluted book value per share (Ex. Accumulated Comprehensive income) $ 43.19 ==================
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 Nine-Month Nine-Month Period Ended Period Ended Period Ended Period Ended 9/30/01 9/30/00 9/30/01 9/30/00 - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- New Business ($ millions) - ------------------------------------------------------------------------------------------------------- Protection Products - ------------------- - ------------------------------------------------------------------------------------------------------- Career Agency System $22.6 $ 19.5 $ 60.9 $ 62.7 - ------------------------------------------------------------------------------------------------------- U.S. Financial Life Insurance 11.7 10.2 34.2 30.3 Company - ------------------------------------------------------------------------------------------------------- Complementary Distribution* 20.5 66.1 56.8 112.3 ----- ------ ------ ------ - ------------------------------------------------------------------------------------------------------- Total New Life Insurance Premiums $54.8 $ 95.8 $151.9 $205.3 ===== ====== ====== ====== - ------------------------------------------------------------------------------------------------------- Accumulation Products - --------------------- - ------------------------------------------------------------------------------------------------------- Variable Annuities $98 $ 90 $272 $ 322 - ------------------------------------------------------------------------------------------------------- Career Agency System - Mutual Funds 72 128 288 509 - ------------------------------------------------------------------------------------------------------- Third Party Distribution - Mutual 244 305 749 1,168 ---- ------ ------ ------ Funds - ------------------------------------------------------------------------------------------------------- Total Accumulation $414 $ 523 $1,309 $1,999 ==== ====== ====== ====== - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- Revenues ($ millions) - ------------------------------------------------------------------------------------------------------- Retail Brokerage & Investment - ----------------------------- Banking - ------- - ------------------------------------------------------------------------------------------------------- Advest $72.0 $101.4*** $217.9** $274.7** - ------------------------------------------------------------------------------------------------------- MONY Securities Corp. 10.0 12.3 33.1 46.7 - ------------------------------------------------------------------------------------------------------- Other 0.1 1.5*** 2.0 4.3*** ----- ------ ====== ====== - ------------------------------------------------------------------------------------------------------- Total Revenue $82.1 $115.2 $253.0 $325.7 ===== ====== ====== ====== - ------------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------
* primarily corporate life insurance ** for 8 month period, February - September; prior year is proforma for comparison purposes *** proforma for comparison purposes EX-99.2 4 dex992.txt STATISTICAL SUPPLEMENT Exhibit 99.2 THE MONY GROUP INC. STATISTICAL SUPPLEMENT AS OF AND FOR THE THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 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/(Losses) 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 Dowling & Partners Securities, LLC ...... Paul Goulekas ...... (860) 676-8600 Deutsche Banc Alex Brown ...... 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 Glasspiegel ...... (860) 724-1203 Morgan Stanley Dean Witter ...... Nigel Dally ...... (212) 761-6235 Philo Smith & Co., Inc. ...... James Inglis ...... (203) 348-7365 Putnam Lovell Securities, Inc. ...... Al Capra ...... (212) 546-7640 SalomonSmithBarney ...... Colin Devine ...... (212) 816-1682 Dresdner Kleinwort Wasserstein ...... Thomas Gallagher ...... (212) 903-2191 Lehman Brothers Inc. ...... E. Stewart Johnson ...... (646) 734-8090 Sandler O'Neil & Partners ...... Nick Pirsos ...... (212) 847-5043
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) MONY Life Insurance Company RATINGS PAPER RATINGS 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. 7760 France Avenue South, Suite 420 Minneapolis, MN 55435 The Advest Group, Inc. 90 State House Square Hartford, CT 06103 Matrix Capital Markets Group Inc. 11 South 12th Street Suite 325 Richmond, VA 23219 (1) MONY Life Insurance Company 4 (Unaudited) SUMMARY FINANCIAL INFORMATION
- ----------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED INCOME STATEMENT DATA: Total Revenues $ 497.4 $ 531.3 $ 1,578.7 $ 1,709.5 Operating Income/(Loss)(1) $ (7.3) $ 54.0 $ 26.1 $ 229.2 Income/(Loss) before extraordinary item $ (8.7) $ 67.2 $ 26.9 $ 253.2 Net Income/(Loss) $ (8.7) $ 66.2 $ 26.9 $ 215.5 Operating Income/(Loss) Per Share (1) Basic $ (0.15) $ 1.17 $ 0.53 $ 4.92 Diluted (2) $ (0.15) $ 1.13 $ 0.52 $ 4.81 Operating Income/(Loss), excluding venture capital income Basic $0.06 $ 0.52 $ 0.72 $ 1.54 Diluted (2) $0.06 $ 0.50 $ 0.70 $ 1.51 Income/(Loss) before extraordinary item Basic $ (0.18) $ 1.46 $ 0.55 $ 5.44 Diluted (2) $ (0.18) $ 1.41 $ 0.53 $ 5.32 Net Income/(Loss) Per Share Basic $ (0.18) $ 1.43 $ 0.55 $ 4.63 Diluted (2) $ (0.18) $ 1.39 $ 0.53 $ 4.53 OTHER DATA: Employee count 3,800 * 2,464 Career agent count (Domestic and International) 2,176 2,364 US Financial Life Brokerage General Agencies 236 241 Trusted Advisors Registered Representatives 472 371 Active Enterprise Selling Agreements 448 457 Advest Financial Advisors 472 N/A
* September 30, 2001 employee count includes Advest and Matrix (1) See Exhibit 2 for a reconciliation of Net Income to Operating Income. (2) 1,634,471 Million incremental shares from assumed conversion of dilutive securities were not included in the computation of per share amounts for the three month period ended September 30, 2001 because to do so would be antidilutive. 5 (Unaudited) SUMMARY FINANCIAL INFORMATION - CONTINUED
- ----------------------------------------------------------------------------------------------------- September 30, December 31, 2001 2000 ---- ---- ($ millions) - ----------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET DATA Invested assets (including cash and cash equivalents) $ 11,862.6 $ 11,222.5 Assets transferred in Group Pension Transaction 4,811.8 4,927.7 Separate account assets 4,767.0 5,868.1 Deferred policy acquisition costs 1,152.8 1,209.7 Other assets 3,013.2 1,347.3 ----------- ------------ Total Assets 25,607.4 24,575.3 Policyholders' liabilities 10,412.6 10,281.7 Liabilities transferred in Group Pension Transaction 4,742.3 4,897.2 Separate account liabilities 4,764.3 5,865.3 Short term debt 546.8 52.3 Long term debt - surplus notes 1.9 2.0 Long term debt - other 583.7 569.1 Other liabilities 2,376.4 868.8 ----------- ------------ Total Liabilities 23,428.0 22,536.4 Equity 2,117.5 2,025.9 Accumulated comprehensive income (ACI) 61.9 13.0 ----------- ------------ Total Shareholders' Equity 2,179.4 2,038.9 ----------- ------------ Total Liabilities and Shareholders' Equity $ 25,607.4 $ 24,575.3 =========== ============ SHARE DATA: Number of Shares Used in Basic Calculations 47,808,558 46,153,589 Number of Shares Used in Diluted Calculations 49,023,436 48,635,427 CAPITALIZATION: Long-term debt $ 585.6 $ 571.1 Shareholders Equity (Excluding ACI) 2,117.5 2,025.9 ----------- ------------ Total capitalization $ 2,703.1 $ 2,597.0 =========== ============ Debt as Percent of Total Capitalization 22% 22% =========== ============ STATUTORY DATA: Capital and Surplus $ 923.6 $ 1,154.8 Asset Valuation Reserve (AVR) 208.3 281.3 ----------- ------------ Total Capital and Surplus plus AVR $ 1,131.9 $ 1,436.1 =========== ============
6 Exhibit 1 (Unaudited) CONSOLIDATED INCOME STATEMENT DATA (1)
- ------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 162.0 $ 162.5 $ 500.5 $ 504.0 Universal life and investment-type product policy fees 50.1 51.2 152.1 157.0 Net investment income 172.9 231.6 546.1 812.9 Net realized gains on investments 0.5 22.9 6.0 32.6 Group Pension Profits 8.0 10.8 27.2 29.0 Retail Brokerage and Investment Banking 82.1 12.3 253.0 46.7 Other income 21.8 40.0 93.8 127.3 -------- -------- -------- -------- 497.4 531.3 1,578.7 1,709.5 -------- -------- -------- -------- BENEFITS AND EXPENSES: Benefits to policyholders 203.9 194.0 596.1 577.1 Interest credited to policyholders account balances 27.9 28.9 83.2 83.1 Amortization of deferred policy acquisition costs 32.9 30.7 98.4 105.4 Dividends to policyholders 54.5 61.0 169.7 170.9 Other operating costs and expenses(2) 190.0 116.4 591.0 389.0 -------- -------- -------- -------- 509.2 431.0 1,538.4 1,325.5 -------- -------- -------- -------- Income/(Loss) before income taxes and extraordinary item (11.8) 100.3 40.3 384.0 Income tax expense 3.1 33.1 13.4 130.8 -------- -------- -------- -------- Income/(Loss) before extraordinary item (8.7) 67.2 26.9 253.2 Extraordinary item, net - (1.0) - (37.7) -------- -------- -------- -------- Net income/(Loss) $ (8.7) $ 66.2 $ 26.9 $ 215.5 ======== ======== ======== ========
- -------------------------------------------------------------------------------- (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 nine-month periods ended September 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/(LOSS) AND EARNINGS PER SHARE
- ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2000 2001 2001 2000 ---- ---- ---- ---- ($ millions, except per share amounts) - ----------------------------------------------------------------------------------------------------------------------------------- OPERATING INCOME: Net Income/(Loss) $ (8.7) $ 66.2 $ 26.9 $ 215.5 Net realized (gains)/ losses on investments, after-tax (0.3) (14.9) (3.9) (21.2) Policyholder dividends resulting from Closed Block realized gains 1.7 1.7 3.1 (2.8) (losses), after tax Extraordinary Items -- 1.0 -- 37.7 ------------ ------------ ----------- ------------ Operating Income/(Loss) $ (7.3) $ 54.0 $ 26.1 $ 229.2 Venture Capital (Income)/Loss $ 10.1 $ (29.8) $ 9.1 $ (157.3) ------------ ------------ ----------- ------------ Operating Income/(Loss), excluding venture capital income $ 2.8 $ 24.2 $ 35.2 $ 71.9 ------------ ------------ ----------- ------------ PER SHARE CALCULATIONS: OPERATING INCOME/(LOSS) PER SHARE: BASIC $ (0.15) $ 1.17 $ 0.53 $ 4.92 DILUTED $ (0.15) $ 1.13 $ 0.52 $ 4.81 OPERATING INCOME/(LOSS), EXCLUDING VENTURE CAPITAL INCOME: BASIC $ 0.06 $ 0.52 $ 0.72 $ 1.54 DILUTED $ 0.06 $ 0.50 $ 0.70 $ 1.51 INCOME/(LOSS) BEFORE EXTRAORDINARY ITEM PER SHARE: BASIC $ (0.18) $ 1.46 $ 0.55 $ 5.44 DILUTED $ (0.18) $ 1.41 $ 0.53 $ 5.32 NET INCOME/(LOSS) PER SHARE: BASIC $ (0.18) $ 1.43 $ 0.55 $ 4.63 DILUTED $ (0.18) $ 1.39 $ 0.53 $ 4.53 Share Data: Weighted-average shares outstanding used in basic per share calculations 48,642,274 46,147,359 48,915,523 46,572,467 Plus: Incremental shares from assumed conversion of dilutive securities * -- 1,517,693 1,597,601 1,046,639 ------------ ------------ ----------- ------------ Weighted-average shares used in diluted per per share calculations 48,642,274 47,665,052 50,513,124 47,619,106 ------------ ------------ ----------- ------------
* 1,634,471 million incremental shares from assumed conversion of dilutive securities were not included in the computation of per share amounts for the three month period ended September 30, 2001 because to do so would be antidilutive. 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. - -------------------------------------------------------------------------------- 9 Exhibit 4 (Unaudited) PROTECTION PRODUCTS SEGMENT (1) INCOME STATEMENTS DATA
- ------------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 159.1 $ 160.3 $ 490.5 $ 497.2 Universal life and investment-type product policy fees 38.4 33.8 110.0 102.3 Net investment income 138.1 183.0 437.5 638.9 Group pension profits 8.0 10.8 27.2 29.0 Other income (5.7) 4.8 0.7 17.7 ------- ------- -------- -------- Total revenues 337.9 392.7 1,065.9 1,285.1 ------- ------- -------- -------- BENEFITS AND EXPENSES: Benefits to policyholders 191.3 182.7 558.6 541.8 Interest credited to policyholder account balances 15.5 14.1 45.6 39.8 Amortization of deferred policy acquisition costs 25.7 23.9 80.9 84.0 Dividends to policyholders 53.9 60.4 167.8 168.9 Other operating costs and expenses 44.2 58.4 162.4 207.1 ------- ------- -------- -------- Total benefits and expenses 330.6 339.5 1,015.3 1,041.6 ------- ------- -------- -------- Pre-tax operating income 7.3 53.2 50.6 243.5 Net realized gains on investments 1.3 14.9 5.4 18.7 ------- ------- -------- -------- Pre-tax income $ 8.6 $ 68.1 $ 56.0 $ 262.2 ======= ======= ======== ======== OPERATING INCOME RECONCILIATION: Pre tax operating income (above) 7.3 53.2 50.6 243.5 Policyholder dividends resulting from closed block realized gains (losses) 2.7 2.6 4.7 (4.3) ------- ------- -------- -------- Operating Income/(Loss) $ 10.0 $ 55.8 $ 55.3 $ 239.2 ======= ======= ======== ======== - --------------------------------------------------------------------------------------
(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 nine-month periods ended September 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 Nine-Months Ended September 30, September 30, INCOME STATEMENT DATA: 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------ REVENUES: Policy Product Fees $ 4.8 $ 7.4 $ 14.3 $ 19.4 Net investment income 25.0 27.8 78.0 86.2 Net realized gains on investments 1.3 1.0 4.9 1.6 ----- ------ ------ ------ Total revenues 31.1 36.2 97.2 107.2 ----- ------ ------ ------ BENEFITS AND EXPENSES: Interest credited to policyholder account balances 19.1 21.7 $ 56.2 $ 64.9 Other operating costs and expenses 4.0 3.7 13.8 13.3 ----- ------ ------ ------ Total benefits and expenses 23.1 25.4 70.0 78.2 ----- ------ ------ ------ Group Pension Profits $ 8.0 $ 10.8 $ 27.2 $ 29.0 ===== ====== ====== ======
ASSETS AND LIABILITIES TRANSFERRED IN GROUP PENSION TRANSACTION
- ----------------------------------------------------------------------------------------- September 30, December 31, 2001 2000 ---- ---- ($ millions) - ----------------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed Maturities $ 1,413.9 $ 1,419.0 Mortgage loans on real estate 28.7 47.5 Cash and cash equivalents 49.9 18.5 Other assets 22.1 26.0 --------- --------- Total general account assets 1,514.6 1,511.0 Separate account assets 3,297.2 3,416.7 --------- --------- Total Assets $ 4,811.8 $ 4,927.7 ========= ========= Liabilities: General account Policyholder account balances $ 1,418.9 $ 1,468.1 Other liabilities 26.2 12.4 --------- --------- Total general account liabilities 1,445.1 1,480.5 Separate account liabilities 3,297.2 3,416.7 --------- --------- Total Liabilities $ 4,742.3 $ 4,897.2 ========= =========
11 Exhibit 5B (Unaudited) CLOSED BLOCK INCOME STATEMENT
- -------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - -------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 129.8 $ 136.0 $ 397.3 $ 419.6 Net investment income 100.0 99.2 299.0 294.2 Net realized gains on investments 2.7 2.6 4.7 (4.3) Other Income 0.5 0.6 1.5 1.7 ------- ------- ------- ------- Total revenues 233.0 238.4 702.5 711.2 ------- ------- ------- ------- BENEFITS AND EXPENSES: Benefits to Policyholders 151.7 148.0 445.1 450.2 Interest Credited to Policyholders Account Balances 2.3 2.2 6.5 6.5 Amort. Of Def. Policy Acquisition Costs 13.9 14.7 46.1 46.6 Dividends to Policyholders 53.9 60.4 167.3 169.1 Operating Costs & Expenses 1.6 2.4 5.7 6.7 ------- ------- ------- ------- Total benefits and expenses 223.4 227.7 670.7 679.1 ------- ------- ------- ------- Closed Block Profit $ 9.6 $ 10.7 $ 31.8 $ 32.1 ======= ======= ======= =======
CLOSED BLOCK ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- September 30, December 31, 2001 2000 ---- ---- ($ millions) - -------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed Maturities $ 3,770.5 $ 3,543.1 Mortgage loans on real estate 596.1 566.0 Policy Loans 1,162.3 1,183.9 Cash and cash equivalents 171.3 167.8 Premiums receivable 10.1 13.6 Deferred policy acquisition costs 433.9 552.6 Other assets 233.5 224.2 --------- --------- Total closed block assets $ 6,377.7 $ 6,251.2 ========= ========= Liabilities: General account Future policy benefits $ 6,853.0 $ 6,826.8 Policyholders' account balances 291.9 293.3 Other policyholders' liabilities 182.9 173.5 Other liabilities 103.0 22.2 --------- --------- Total closed block liabilities $ 7,430.8 $ 7,315.8 ========= ========= 12 Exhibit 5C (Unaudited) FIXED MATURITIES BY CREDIT QUALITY - CLOSED BLOCK
PUBLIC FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------------------- Quarter Ended Year Ended September 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 $ 1,502.2 77.6% $ 1,569.1 $ 1,390.8 77.2% $ 1,395.4 2 Baa 347.8 17.9% 361.3 366.1 19.7% 356.3 3 Ba 93.7 4.3% 85.8 60.5 3.0% 53.2 4 B -- 0.0% -- 0.6 0.0% 0.6 5 Caa and lower 5.6 0.2% 5.0 -- 0.0% -- 6 In or near default -- 0.0% -- 1.4 0.1% 1.4 --------- ----- ---------- --------- ----- --------- Subtotal 1,949.3 100.0% 2,021.2 1,819.4 100.0% 1,806.9 Redeemable preferred stock -- 0.0% -- -- 0.0% -- --------- ----- ---------- --------- ----- --------- Total Public Fixed Maturities $ 1,949.3 100.0% $ 2,021.2 $ 1,819.4 100.0% $ 1,806.9 --------- ----- ---------- --------- ----- --------- PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------------------- Quarter Ended Year Ended September 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 $ 809.5 48.4% $ 846.8 $ 810.1 47.3% $ 820.5 2 Baa 755.5 45.2% 790.3 824.5 48.1% 835.7 3 Ba 100.1 5.8% 100.6 72.1 4.0% 70.3 4 B 4.0 0.2% 4.1 -- 0.0% -- 5 Caa and lower 7.5 0.4% 7.5 9.7 0.6% 9.7 6 In or near default -- 0.0% -- -- 0.0% -- --------- ----- ---------- --------- ----- --------- Subtotal 1,676.6 100.0% 1,749.3 1,716.4 100.0% 1,736.2 Redeemable preferred stock -- 0.0% -- -- 0.0% -- --------- ----- ---------- --------- ----- --------- Total Public Fixed Maturities $ 1,676.6 100.0% $ 1,749.3 $ 1,716.4 100.0% $ 1,736.2 ========= ===== ========== ========= ===== ========= TOTAL FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------------------- Quarter Ended Year Ended September 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 $ 2,311.7 64.1% $ 2,415.9 $ 2,200.9 62.6% $ 2,215.9 2 Baa 1,103.3 30.5% 1,151.6 1,190.6 33.6% 1,192.0 3 Ba 193.8 4.9% 186.4 132.6 3.5% 123.5 4 B 4.0 0.1% 4.1 0.6 0.0% 0.6 5 Caa and lower 13.1 0.4% 12.5 9.7 0.3% 9.7 6 In or near default -- 0.0% -- 1.4 0.0% 1.4 --------- ----- ---------- --------- ----- --------- Subtotal 3,625.9 100.0% 3,770.5 3,535.8 100.0% 3,543.1 Redeemable preferred stock -- 0.0% -- -- 0.0% -- --------- ----- ---------- --------- ----- --------- Total Fixed Maturities $ 3,625.9 100.0% $ 3,770.5 $ 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 Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - -------------------------------------------------------------------------------- PROTECTION BUSINESS SALES: Traditional life $ 0.9 $ 1.0 $ 1.9 $ 3.3 Term 10.7 8.0 29.1 26.3 Universal life 8.3 4.5 20.7 14.8 Variable universal life 15.0 16.1 43.8 48.7 Corporate owned life insurance 19.6 65.7 55.4 110.4 Group universal life 0.3 0.5 1.0 1.8 ------ ------ ------- ------- Total $ 54.8 $ 95.8 $ 151.9 $ 205.3 ====== ====== ======= ======= - -------------------------------------------------------------------------------- September 30, December 31, 2001 2000 ---- ---- - -------------------------------------------------------------------------------- Insurance In Force ($ in millions except number of policies) - -------------------------------------------------------------------------------- Traditional Life (1): Number of policies (in thousands) 861.6 879.5 GAAP life reserves $ 7,356.1 $ 7,283.7 Face amounts $ 71,472.0 $ 67,015.7 Universal Life: Number of policies (in thousands) 74.6 76.4 GAAP life reserves $ 690.5 $ 681.2 Face amounts $ 10,880.3 $ 10,951.6 Variable Universal Life: Number of policies (in thousands) 62.7 55.0 GAAP life reserves $ 683.5 $ 657.3 Face amounts $ 17,159.1 $ 14,798.7 Group Universal Life: Number of policies (in thousands) 44.4 47.3 GAAP life reserves $ 66.5 $ 64.1 Face amounts $ 1,586.7 $ 1,683.0 Total: Number of policies (in thousands) 1,043.3 1,058.2 GAAP life reserves $ 8,796.6 $ 8,686.3 Face amounts $ 101,098.1 $ 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 Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - -------------------------------------------------------------------------------------------------- LIFE INSURANCE: Traditional Life (1): First year & single $ 45.2 $ 40.9 $ 132.5 $ 126.1 Renewal 113.5 122.3 351.5 370.0 ------- ------- ------- ------- Total $ 158.7 $ 163.2 $ 484.0 $ 496.1 ======= ======= ======= ======= Universal Life: First year & single $ 8.8 $ 4.4 $ 20.3 $ 13.1 Renewal 22.9 23.2 71.7 71.4 ------- ------- ------- ------- Total $ 31.7 $ 27.6 $ 92.0 $ 84.5 ======= ======= ======= ======= Variable Universal Life: First year & single $ 17.6 $ 18.0 $ 52.2 $ 58.0 Renewal 24.3 19.5 68.9 52.5 ------- ------- ------- ------- Total $ 41.9 $ 37.5 $ 121.1 $ 110.5 ======= ======= ======= ======= Corporate Sponsored Variable Universal Life: First year & single $ 23.7 $ 50.7 $ 49.8 $ 99.6 Renewal 13.4 2.6 42.0 6.8 ------- ------- ------- ------- Total $ 37.1 $ 53.3 $ 91.8 $ 106.4 ======= ======= ======= ======= Group Universal Life: First year & single $ 0.4 $ 0.7 $ 1.5 $ 1.7 Renewal 2.6 2.7 7.9 8.6 ------- ------- ------- ------- Total $ 3.0 $ 3.3 $ 9.4 $ 10.3 ======= ======= ======= ======= Total life insurance $ 272.4 $ 284.9 $ 798.3 $ 807.8 ======= ======= ======= =======
- -------------------------------------------------------------------------------- (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. - -------------------------------------------------------------------------------- 16 Exhibit 9 (Unaudited) ACCUMULATION PRODUCTS SEGMENT INCOME STATEMENT
- -------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - -------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 1.0 $ - $ 3.4 $ 0.4 Universal life and investment-type product policy fees 12.5 17.3 42.0 53.8 Net investment income 18.6 26.9 56.9 100.3 Other income 23.5 29.8 76.7 92.5 -------- -------- --------- --------- Total revenues 55.6 74.0 179.0 247.0 -------- -------- --------- --------- BENEFITS AND EXPENSES: Benefits to policyholders 7.3 4.2 19.1 17.2 Interest credited to policyholder account balances 10.4 12.2 31.0 36.2 Amortization of deferred policy acquisition costs 7.2 6.8 17.5 21.4 Dividends to policyholders 0.5 0.4 1.2 1.2 Other operating costs and expenses 29.6 26.2 86.9 87.1 -------- -------- --------- --------- Total benefits and expenses 55.0 49.8 155.7 163.1 -------- -------- --------- --------- Pre-tax operating income 0.6 24.2 23.3 83.9 Net realized gains on investments 0.1 3.5 2.3 6.3 -------- -------- --------- --------- Pre-tax income/(Loss) $ 0.7 $ 27.7 $ 25.6 $ 90.2 ======== ======== ========= =========
17 Exhibit 10 (Unaudited) ACCUMULATION PRODUCTS SEGMENT ASSETS UNDER MANAGEMENT(1)
- -------------------------------------------------------------------------------- September 30, September 30, December 31, 2001 2000 2000 ---- ---- ---- - -------------------------------------------------------------------------------- ACCUMULATION SEGMENT: Assets under management ($ billions) Individual variable annuities $ 3.5 $ 4.6 $ 4.4 Individual fixed annuities 0.7 0.8 0.7 Proprietary retail mutual funds 4.0 5.0 4.8 --------- --------- -------- $ 8.2 $ 10.4 $ 9.9 ========= ========= ========
Three Months Ended Nine Months Ended 30-Sep 30-Sep 2001 2000 2001 2000 ---- ---- ---- ---- RECONCILIATION IN ACCOUNT VALUE: VARIABLE ANNUITY(1): Beginning account value $ 4.0 $ 4.7 $ 4.4 $ 4.9 Sales 0.1 0.1 0.3 0.3 Market appreciation (0.5) 0.0 (0.8) 0.0 Mortality and expense (0.0) (0.0) (0.0) (0.0) Surrenders and withdrawals (0.1) (0.1) (0.3) (0.6) ------------------ ------------------ $ 3.5 $ 4.6 $ 3.5 $ 4.6 ================== ================== ENTERPRISE GROUP OF FUNDS: Beginning account value $ 4.5 $ 5.1 $ 4.8 $ 4.8 Sales 0.3 0.4 1.0 1.7 Dividends reinvested 0.0 0.0 0.0 0.2 Market appreciation (0.6) (0.1) (1.0) (0.5) Redemptions (0.3) (0.4) (0.9) (1.0) ------------------ ------------------ Ending account value $ 4.0 $ 5.0 $ 4.0 $ 5.0 ================== ==================
- -------------------------------------------------------------------------------- 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. 2001 sales are net of exchanges to new product series of $71 million in the first quarter, $72 million in the second quarter, and $37 million in the third quarter. 18 Exhibit 11 RETAIL BROKERAGE AND INVESTMENT BANKING - -------------------------------------------------------------------------------- The Retail Brokerage and Investment Banking segment is comprised of results of the Company's subsidiaries, Advest Group Inc ("AGI"), Matrix Capital Markets Group ("Matrix") and MONY Securities Corp. ("MSC"). Advest Group Inc, through its subsidiaries, provides diversified financial services including securities brokerage, trading, investment banking, trust and asset management. Matrix is a middle market investment bank specializing in merger and acquisition services for a middle market client base. MSC is a broker dealer which transacts customer trades primarily in securities and mutual funds. In addition to selling the Company's proprietary investment products, MSC provides customers of the Company's protection and accumulation products access to other non-proprietary investment products (including stocks, bonds, limited partnership interests, tax-exempt unit investment trusts and other investment securities). - -------------------------------------------------------------------------------- 19 Exhibit 12 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DATA - -------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2001 (1) 2000 2001 (1) 2000 -------- ---- -------- ---- ($ millions) ($ millions) - -------------------------------------------------------------------------------- REVENUES: Net investment income 2.1 - 5.2 0.2 Retail Brokerage and Investment Banking 82.1 12.3 253.0 46.7 ------ ------ ------- ------ Total revenues 84.2 12.3 258.2 46.9 ------ ------ ------- ------ BENEFITS AND EXPENSES: Other operating costs and expenses 93.5 14.2 271.3 48.9 ------ ------ ------- ------ Total benefits and expenses 93.5 14.2 271.3 48.9 ------ ------ ------- ------ Pre-tax operating income (9.3) (1.9) (13.1) (2.0) Net realized gains on investments - - (0.2) 0.2 ------ ------ ------- ------ Pre-tax income/(loss) $ (9.3) $ (1.9) $ (13.3) $ (1.8) ====== ====== ======= ====== - -------------------------------------------------------------------------------- (1) Includes Advest results for the 8 month period ended September 30, 2001 and Matrix for the 9 month period ended September 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 Nine Months Ended September 30, September 30, ------------------ ----------------- 2001 2000 2001 2000 ------ -------- ------ ------- REVENUES: Commissions $ 35.7 $ 12.4 $103.1 $ 46.7 Interest 13.9 0.1 46.5 0.2 Principal transactions 17.2 -- 55.2 -- Asset management and administration 12.8 -- 35.2 -- Investment banking 2.9 -- 12.2 -- Other 1.7 (0.2) 5.8 0.2 ------ ------ ------ ------ Total revenues 84.2 12.3 258.0 47.1 EXPENSES: Compensation 48.7 1.4 136.6 3.6 Interest 9.6 -- 32.1 -- Goodwill and other intangible amortization 3.4 0.1 9.2 0.4 Other 31.8 12.7 93.4 44.9 ------ ------ ------ ------ Total expenses 93.5 14.2 271.3 48.9 ------ ------ ------ ------ Pre-tax income/(loss) $ (9.3) $ (1.9) $(13.3) $ (1.8) ====== ====== ====== ====== - --------------------------------------------------------------------------------
ADVEST - NET INTEREST ADVEST - NET INTEREST Three-Months Ended Eight Months Ended September 30 2001 September 30 2000 September 30 2001 September 30 2000 ----------------- ----------------- ----------------- ----------------- Net Interest Income - Interest Income: Brokerage customers 6.8 48.9% $ 13.3 50.8% $ 20.9 44.9% $ 33.6 49.9% Stock borrowed 5.4 38.8% 11.5 43.9% 19.0 40.9% 29.6 43.9% Investments 0.2 1.4% 0.3 1.1% 0.5 1.1% 0.9 1.3% Security inventory 2.0 14.4% 0.8 3.1% 4.8 10.3% 2.5 3.7% Other (0.5) -3.6% 0.3 1.1% 1.3 2.8% 0.8 1.2% ----------------- ------------------ ----------------- ----------------- $ 13.9 100.0% $ 26.2 100.0% $ 46.5 100.0% $ 67.4 100.0% ----------------- ------------------ ----------------- ----------------- Interest Expense: Stock loaned 5.9 61.4% 12.9 66.8% $ 19.4 60.4% 31.0 63.8% Brokerage customers 0.7 7.3% 2.7 14.0% 2.9 9.0% 7.2 14.8% Borrowings 3.0 31.2% 3.5 18.1% 9.6 29.9% 10.1 20.8% Other 0.0 0.1% 0.2 1.0% 0.2 0.6% 0.3 0.6% ----------------- ------------------ ----------------- ----------------- 9.6 100.0% 19.3 100.0% 32.1 100.0% 48.6 100.0% ----------------- ------------------ ----------------- ----------------- Net interest income $ 4.3 30.9% $ 6.9 26.3% $ 14.4 31.0% $ 18.8 27.9% ================= ================== ================= =================
ADVEST STATISTICAL DATA As of September 30, 2001 ------------------ Client Assets (in millions) $ 24,709.0 Number of Client Accounts (in thousands) 242 Assets managed under fee-based programs (AUM) (in millions) $ 6,189.0 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 Nine-Months Ended September 30, September 30, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 1.9 $ 2.2 $ 6.6 $ 6.4 Universal life and investment-type product policy fees (0.8) 0.1 0.1 0.9 Net investment income 14.1 21.7 46.5 73.5 Other income 4.0 5.4 16.4 17.1 ------- ----- ------- ------ Total revenues 19.2 29.4 69.6 97.9 ------- ----- ------- ------ BENEFITS AND EXPENSES: Benefits to policyholders 5.3 7.1 18.4 18.1 Interest credited to policyholder account balances 2.0 2.6 6.6 7.1 Dividends to policyholders 0.1 0.2 0.7 0.8 Other operating costs and expenses 22.7 17.6 70.4 45.9 ------- ----- ------- ------ Total benefits and expenses 30.1 27.5 96.1 71.9 ------- ----- ------- ------ Pre-tax operating income (10.9) 1.9 (26.5) 26.0 Net realized gains on investments (0.9) 4.5 (1.5) 7.4 ------- ----- ------- ------ Pre-tax income/(loss) $ (11.8) $ 6.4 $ (28.0) $ 33.4 ======= ===== ======= ======
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 September 30, 2001 December 31, 2000 Carrying % of Carrying % of Value Total Value Total ----- ----- ----- ----- INVESTED ASSETS ($ Millions) - -------------------------------------------------------------------------------------------------------------------------- Fixed Maturities, Available for Sale $ 6,789.4 60.9% $ 6,693.0 59.6% Fixed Maturities, Held to Maturity 0.4 0.0% - 0.0% Equity Securities, Available for Sale 310.5 2.8% 328.6 2.9% Mortgage Loans on Real Estate 1,814.5 16.3% 1,754.7 15.6% Policy Loans 1,244.8 11.2% 1,264.6 11.3% Real Estate to be Disposed Of 167.7 1.5% 171.3 1.6% Real Estate Held for Investment 56.1 0.5% 40.7 0.4% Other Invested Assets 142.1 1.3% 100.0 0.9% Cash and Equivalents 618.7 5.5% 869.6 7.7% --------- ----- ---------- ----- Invested Assets, excluding Trading Securities $11,144.2 100.0% $ 11,222.5 100.0% ========= ===== ========== ===== Trading Securities 451.5 - Trading Securities, Pledged as Collateral 266.9 - --------- ---------- Total Trading Securities 718.4 - --------- ---------- Total Cash and Invested Assets $11,862.6 $ 11,222.5 ========= ========== - --------------------------------------------------------------------------------------------------------------------------
The Exhibit above includes invested assets in the Closed Block. 25 Exhibit 18 (Unaudited) INVESTMENT RESULTS BY ASSET CATEGORY-COMBINED BASIS
- ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended Three Months Ended Nine Months Ended September 30, 2001 September 30, 2000 September 30, 2001 Yield (2) Amount Yield (2) Amount Yield (1) Amount --------- ------ --------- ------ --------- ------ ($ millions) ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES (4) Investment Income 7.6% $ 124.8 7.4% $ 123.3 7.5% $ 372.6 Realized Gains (losses) 0.3% 4.9 -0.4% (6.4) 0.2% 12.4 Total 7.9% $ 129.6 7.0% $ 116.9 7.7% $ 385.0 ----------------------- -------------------------- ----------------------- Ending Assets $ 6,568.6 $ 6,681.2 $ 6,568.6 ----------------------- -------------------------- ----------------------- EQUITY SECURITIES Investment Income -18.5% $ (14.7) 37.3% $ 49.9 -5.4% $ (13.0) Realized Gains (losses) -2.3% (1.8) -2.4% (3.2) -3.0% (7.1) Total -20.8% $ (16.6) 34.9% $ 46.7 -8.4% $ (20.1) ----------------------- -------------------------- ----------------------- Ending Assets $ 310.5 $ 537.5 $ 310.5 ----------------------- -------------------------- ----------------------- MORTGAGE LOANS Investment Income 8.0% $ 35.5 8.1% $ 35.9 7.8% $ 104.9 Realized Gains (losses) -0.1% (0.4) 3.8% 16.8 0.4% 4.7 Total 7.9% $ 35.1 12.0% $ 52.7 8.2% $ 109.6 ----------------------- -------------------------- ----------------------- Ending Assets $ 1,814.5 $ 1,659.2 $ 1,814.5 ----------------------- -------------------------- ----------------------- REAL ESTATE (3) Investment Income 7.8% $ 4.3 6.1% $ 5.2 7.7% $ 12.6 Realized Gains (losses) -1.2% (0.6) 18.8% 16.0 -1.9% (3.2) Total 6.7% $ 3.7 24.9% $ 21.2 5.8% $ 9.4 ----------------------- -------------------------- ----------------------- Ending Assets $ 223.7 $ 306.3 $ 223.7 ----------------------- -------------------------- ----------------------- POLICY LOANS Investment Income 7.1% $ 22.0 6.9% $ 21.7 6.9% $ 65.0 Realized Gains (losses) 0.0% - 0.0% - 0.0% - Total 7.1% $ 22.0 6.9% $ 21.7 6.9% $ 65.0 ----------------------- -------------------------- ----------------------- Ending Assets $ 1,244.8 $ 1,260.0 $ 1,244.8 ----------------------- -------------------------- ----------------------- CASH AND CASH EQUIVALENTS Investment Income 4.1% $ 6.9 7.6% $ 7.4 4.9% $ 26.4 Realized Gains (losses) 0.0% 0.0 -0.3% (0.3) 0.0% 0.0 Total 4.1% $ 6.9 7.3% $ 7.1 4.9% $ 26.4 ----------------------- -------------------------- ----------------------- Ending Assets $ 618.7 $ 515.3 $ 618.7 ----------------------- -------------------------- ----------------------- OTHER INVESTED ASSETS Investment Income 6.4% $ 2.4 2.4% $ 0.5 5.6% $ 5.1 Realized Gains (losses) -4.0% (1.5) 0.0% 0.0 -1.0% (0.9) Total 2.4% $ 0.9 2.5% $ 0.5 4.6% $ 4.2 ----------------------- -------------------------- ----------------------- Ending Assets $ 142.1 $ 101.6 $ 142.1 ----------------------- -------------------------- ----------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 6.6% $ 181.1 8.9% $ 244.0 6.9% $ 573.5 Realized Gains (losses) 0.0% 0.5 0.8% 22.8 0.1% 6.0 Total 6.6% $ 181.6 9.7% $ 266.8 7.0% $ 579.5 ----------------------- -------------------------- ----------------------- Ending Assets (4) $10,923.0 $11,061.1 $10,923.0 ----------------------- -------------------------- ----------------------- Other Fee Income 0.1% $ 1.4 0.0% $ 0.8 0.0% $ 3.6 Investment expense -0.4% $ (9.6) -0.5% $ (13.1) -0.4% $ (31.0) TOTAL AFTER INVESTMENT EXPENSES Investment Income 6.3% $ 173.0 8.4% $ 231.7 6.6% $ 546.1 Realized Gains (losses) 0.0% 0.5 0.8% 22.8 0.1% 6.0 Total 6.3% $ 173.5 9.2% $ 254.5 6.6% $ 552.1 ----------------------- -------------------------- ----------------------- Ending Assets (4) 10,923.0 11,061.1 10,923.0 ----------------------- -------------------------- ----------------------- Net unrealized gains (losses) on fixed maturities 221.2 (147.9) 221.2 ----------------------- -------------------------- ----------------------- Total invested assets $11,144.2 $10,913.2 $11,144.2 ======================= ========================== ======================= - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ Nine Months Ended September 30, 2000 Yield (1) Amount --------- ------ ($ millions) - ------------------------------------------------------------------------------ FIXED MATURITIES (4) Investment Income 7.3% $ 369.9 Realized Gains (losses) -0.4% (19.2) Total 7.0% $ 350.6 ----------------------- Ending Assets $ 6,681.2 ----------------------- EQUITY SECURITIES Investment Income 65.9% $ 261.3 Realized Gains (losses) 3.5% 13.8 Total 69.4% $ 275.1 ----------------------- Ending Assets $ 537.5 ----------------------- MORTGAGE LOANS Investment Income 8.6% $ 108.9 Realized Gains (losses) 1.6% 19.6 Total 10.2% $ 128.5 Ending Assets $ 1,659.2 REAL ESTATE (3) Investment Income 6.8% $ 17.1 Realized Gains (losses) 7.4% 18.6 Total 14.1% $ 35.8 ----------------------- Ending Assets $ 306.3 ----------------------- POLICY LOANS Investment Income 6.8% $ 64.2 Realized Gains (losses) 0.0% - Total 6.8% $ 64.2 ----------------------- Ending Assets $ 1,260.0 ----------------------- CASH AND CASH EQUIVALENTS Investment Income 6.6% $ 18.7 Realized Gains (losses) 0.0% (0.0) Total 6.6% $ 18.7 ----------------------- Ending Assets $ 515.3 ----------------------- OTHER INVESTED ASSETS Investment Income 6.1% $ 3.2 Realized Gains (losses) -0.5% (0.2) Total 5.6% $ 2.9 ----------------------- Ending Assets $ 101.6 ----------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 10.2% $ 843.3 Realized Gains (losses) 0.4% 32.6 Total 10.6% $ 875.9 ----------------------- Ending Assets (4) $11,061.1 ----------------------- Other Fee Income 0.0% $ 3.1 Investment expense -0.4% $ (33.5) TOTAL AFTER INVESTMENT EXPENSES Investment Income 9.8% $ 812.9 Realized Gains (losses) 0.4% 32.6 Total 10.2% $ 845.5 ----------------------- Ending Assets (4) 11,061.1 ----------------------- Net unrealized gains (losses) on fixed maturities (147.9) ----------------------- Total invested assets $10,913.2 ======================= - ------------------------------------------------------------------------------
(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 $718.4 million and results are excluded from the yield calculation. The Exhibit above includes invested assets in the Closed Block. 26 Exhibit 19A (Unaudited) FIXED MATURITIES BY CREDIT QUALITY PUBLIC FIXED MATURITIES BY CREDIT QUALITY
- ------------------------------------------------------------------------------------------------------------------------------------ Quarter Ended Year Ended September 30, 2001 December 31, 2000 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value - ------ ---------------------- --------- ----- ---------- --------- ----- ---------- ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ 1 Aaa/Aa/A $ 2,606.3 73.8% $ 2,714.1 $ 2,664.8 74.2% $ 2,671.6 2 Baa 722.8 20.3% 745.4 775.2 21.3% 759.9 3 Ba 177.3 4.6% 168.7 133.2 3.5% 125.5 4 B 28.8 0.8% 28.5 30.2 0.7% 25.1 5 Caa and lower 17.1 0.3% 13.1 10.8 0.2% 7.6 6 In or near default -- 0.0% -- 1.8 0.0% 1.6 ---------- -------- ---------- ---------- -------- ---------- Subtotal 3,552.3 99.8% 3,669.8 3,616.0 100.0% 3,591.3 Redeemable preferred stock 6.0 0.2% 5.9 1.0 0.0% 0.8 ---------- -------- ---------- ---------- -------- ---------- Total Public Fixed Maturities $ 3,558.3 100.0% $ 3,675.7 $ 3,617.0 100.0% $ 3,592.1 ========== ======== ========== ========== ======== ==========
PRIVATE FIXED MATURITIES BY CREDIT QUALITY
- ------------------------------------------------------------------------------------------------------------------------------------ Quarter Ended Year Ended September 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 $ 1,032.5 34.7% $ 1,080.0 $ 1,074.9 34.9% $ 1,086.3 2 Baa 1,586.6 52.8% 1,644.2 1,614.6 52.7% 1,628.8 3 Ba 306.5 9.9% 307.6 309.7 9.7% 302.2 4 B 28.1 0.9% 28.4 50.0 1.6% 48.5 5 Caa and lower 20.1 0.6% 19.6 9.9 0.4% 9.9 6 In or near default 8.1 0.2% 5.6 0.2 0.0% 0.2 ---------- -------- ---------- ---------- -------- ---------- Subtotal 2,981.9 99.1% 3,085.4 3,059.3 99.2% 3,075.9 Redeemable preferred stock 28.4 0.9% 28.7 26.4 0.8% 25.0 ---------- -------- ---------- ---------- -------- ---------- Total Private Fixed Maturities $ 3,010.3 100.0% $ 3,114.1 $ 3,085.7 100.0% $ 3,100.9 ========== ======== ========== ========== ======== ==========
TOTAL FIXED MATURITIES BY CREDIT QUALITY
- ------------------------------------------------------------------------------------------------------------------------------------ Quarter Ended Year Ended September 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 $ 3,638.8 55.9% $ 3,794.1 $ 3,739.7 56.1% $ 3,757.9 2 Baa 2,309.4 35.2% 2,389.6 2,389.8 35.7% 2,388.7 3 Ba 483.8 7.0% 476.3 442.9 6.4% 427.7 4 B 56.9 0.8% 56.9 80.2 1.1% 73.6 5 Caa and lower 37.2 0.5% 32.7 20.7 0.3% 17.5 6 In or near default 8.1 0.1% 5.6 2.0 0.0% 1.8 ---------- -------- ---------- ---------- -------- ---------- Subtotal 6,534.2 99.5% 6,755.2 6,675.3 99.6% 6,667.2 Redeemable preferred stock 34.4 0.5% 34.6 27.4 0.4% 25.8 ---------- -------- ---------- ---------- -------- ---------- Total Fixed Maturities $ 6,568.6 100.0% $ 6,789.8 $ 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
- ---------------------------------------------------------------------------------------------------- September 30, 2001 ------------------ ($ millions) - ---------------------------------------------------------------------------------------------------- Industry Public % Private % Total % - -------- ------ - ------- - ----- - Consumer Goods & Services $ 439.0 11.9% 748.5 24.0% 1,187.5 17.6% Non-Government- Asset/Mortgage Backed 520.8 14.2% 245.0 7.9% 765.8 11.3% Public Utilities 431.2 11.7% 312.1 10.0% 743.3 10.9% Other Manufacturing 169.5 4.7% 512.8 16.5% 682.3 10.0% Financial Services 215.2 5.9% 402.6 12.9% 617.8 9.1% Transportation/Aerospace 297.1 8.1% 193.9 6.2% 491.0 7.2% Banks 453.4 12.3% 30.1 1.0% 483.5 7.1% Energy 201.7 5.5% 198.5 6.4% 400.2 5.9% Government & Agency 365.6 9.9% 0.1 0.0% 365.7 5.4% Nat/Res/Manuf(non-energy) 78.3 2.2% 282.5 9.1% 360.8 5.3% Mortgage Backed-Government & Agency 303.2 8.2% 3.0 0.1% 306.2 4.5% Other 91.7 2.5% 17.0 0.5% 108.7 1.6% Telecommunications 84.1 2.3% 21.5 0.7% 105.6 1.6% Media/Adver/Printing 22.9 0.6% 82.0 2.6% 104.9 1.5% Cable Television 1.0 0.0% 33.8 1.1% 34.8 0.5% Bank Holding Companies 1.0 0.0% $ 30.7 1.0% $ 31.7 0.5% ------------------------------------------------- ------- Total 3,675.7 100.0% 3,114.1 100.0% 6,789.8 100.0% ================================================= ======= 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:
- ----------------------------------------------------------------------------------------- September 30, 2001 December 31, 2000 ------------------ ----------------- ($ in millions) ($ in millions) - ----------------------------------------------------------------------------------------- Equity Method Public common stock $ 16.5 $ 47.8 Private common stock 99.2 97.2 -------- -------- Sub-total $ 115.7 $ 145.0 Cost Method Public common stock $ 24.0 $ 26.8 Private common stock 111.5 106.2 -------- -------- Sub-total $ 135.5 $ 133.0 -------- -------- Total Venture Capital Partnership Investments $ 251.3 $ 278.0 ======== ========
VENTURE CAPITAL PARTNERSHIP INVESTMENTS BY SECTOR:
- ----------------------------------------------------------------------------------------------------- September 30, 2001 December 31, 2000 ------------------ ----------------- ($ Millions) % ($ Millions) % - ----------------------------------------------------------------------------------------------------- Information Technology $ 126.5 50.3% $ 144.1 51.8% Domestic LBO 49.6 19.6% 50.8 18.3% Life Sciences 18.9 7.5% 21.0 7.6% Telecommunications 8.3 3.3% 15.9 5.7% International LBO 18.6 7.4% 18.2 6.6% Merchant Banking 12.2 4.9% 13.7 4.9% Other 17.2 6.8% 14.3 5.1% -------- ----- -------- ----- Total Venture Capital Partnership Investments by Sector $ 251.3 100.0% $ 278.0 100.0% ======== ===== ======== =====
29 Exhibit 20 (Unaudited) PROBLEM, POTENTIAL PROBLEM AND RESTRUCTURED COMMERCIAL MORTGAGES AT CARRYING VALUE
- ----------------------------------------------------------------------------------------------------------- September 30, December 31, 2001 2000 ---- ---- ($ millions) - ----------------------------------------------------------------------------------------------------------- Total Commercial Mortgages $ 1,501.1 $ 1,443.3 ========== ========== Problem commercial mortgages (1) 5.2 14.8 Potential problem commercial mortgages 75.3 64.7 Restructured commercial mortgages 60.2 75.6 ---------- ---------- Total problem, potential problem & restructured commercial mortgages $ 140.7 $ 155.1 ========== ========== Total problem, potential problem & restructured commercial mortgages as % of total commercial mortgages 9.4% 10.7% ========== ========== Valuation allowances/writedowns (2) Problem loans $ 0.2 $ 0.4 Potential problem loans 13.1 14.3 Restructured loans 5.9 7.7 ---------- ---------- Total valuation allowances/writedowns $ 19.2 $ 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 12.0% 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
- ---------------------------------------------------------------- Sept 30, Dec 31, 2001 2000 ---- ---- ($ millions) - ---------------------------------------------------------------- TYPE Real estate $ 53.4 $ 54.2 Joint ventures 128.8 116.3 ------- ------- Subtotal 182.2 170.5 Foreclosed 41.5 41.5 ------- ------- Total $ 223.7 $ 212.0 ======= =======
- -------------------------------------------------------------------------------------------- ---------------- Three Months Ended Nine Months Ended Year Ended September 30, September 30, December 31, 2001 2000 2001 2000 2000 ---- ---- ---- ---- ---- ($ millions) ($ millions) ($ millions) - -------------------------------------------------------------------------------------------- ---------------- Sales Proceeds $ 8.1 $ 97.3 $ 15.8 $ 102.3 $ 214.0 Carrying value at date of sale 8.1 78.6 16.1 81.6 182.9 ======= ======= ========= ======== ========= Gain (loss) $ 0.0 $ 18.7 $ (0.3) $ 20.7 $ 31.1 ======= ======= ========= ======== ========= - ---------------------------------------------------------------------------------------------------------------
31 Exhibit 21B (Unaudited) MORTGAGES AND REAL ESTATE
- ------------------------------------------------------------------------------------------------- September 30, 2001 December 31, 2000 ------------------ ----------------- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------- Geographic Region Southeast $ 475.9 23.3% $ 420.3 21.4% West 359.3 17.6% 341.0 17.3% Northeast 300.3 14.7% 337.9 17.2% Mountain 427.2 21.0% 430.0 21.9% Midwest 335.4 16.5% 322.8 16.4% Southwest 140.1 6.9% 114.7 5.8% ---------- ------- ---------- ------- $ 2,038.2 100% $ 1,966.7 100% ========== ======= ========== ======= ------------------------- September 30, 2001 December 31, 2000 ------------------ ----------------- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------- Property Type: Office Buildings $ 849.6 41.7% $ 853.4 43.4% Agricultural 313.5 15.4% 311.3 15.8% Hotel 277.1 13.6% 287.6 14.6% Retail 165.8 8.1% 147.4 7.5% Industrial 153.6 7.5% 133.6 6.8% Other 147.0 7.2% 133.0 6.8% Apartment Buildings 131.6 6.5% 100.4 5.1% --------- ------- --------- ------- $ 2,038.2 100% $ 1,966.7 100% ========= ======= ========= =======
The Exhibit above includes invested assets in the Closed Block. 32 Exhibit 22 (Unaudited) HISTORICAL QUARTERLY DATA
- ----------------------------------------------------------------------------------------------------------------------------------- Q3'01 Q2'01 Q1'01 2000 ($ millions, except per share amounts) - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums 162.0 $ 173.4 $ 165.1 $ 700.5 Universal life and investment-type product policy fees 50.1 52.3 49.7 205.8 Net investment income 172.9 189.5 183.7 978.1 Net realized gains on investments 0.5 3 2.5 37.5 Group pension profits 8.0 9.3 9.9 37.1 Retail Brokerage and Investment Banking 82.1 99.8 71.1 59.8 Other income 21.8 41.7 30.3 163.5 ------------------------------------------------------- Total revenues 497.4 569.0 512.3 2,182.3 ------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 203.9 194.5 197.7 787.8 Interest credited to policyholder account balances 27.9 27 28.3 110.6 Amortization of deferred policy acquisition costs 32.9 28.3 37.2 139.1 Dividends to policyholders 54.5 60.6 54.6 235.5 Demutualization Expense Other operating costs and expenses 190.0 226.8 174.2 513.2 ------------------------------------------------------- Total benefits and expenses 509.2 537.2 492.0 1,786.2 ------------------------------------------------------- Income/(Loss) before income taxes and extraordinary item (11.8) 31.8 20.3 396.1 Income tax expense 3.1 9.5 7.0 133.8 ------------------------------------------------------- Income/(Loss) before extraordinary item (8.7) 22.3 13.3 262.3 Extraordinary item - - - (37.7) ------------------------------------------------------- Net income/(Loss) (8.7) $ 22.3 $ 13.3 $ 224.6 ======================================================= Operating income/(Loss): Net Income/(Loss) (8.7) $ 22.3 $ 13.3 $ 224.6 Less: Net realized (gains)/losses on investments (after-tax) (0.3) (2.1) (1.5) (24.4) Plus: Policyholder dividends resulting from closed 1.7 1.5 (0.1) (4.5) block realized gains (after tax) Surplus tax - - - - Extraordinary Items/Demutualization expenses - - - 37.7 ------------------------------------------------------- Operating income/(Loss) (7.3) $ 21.7 $ 11.7 $ 233.4 Early Retirement and Realignment Charge - - - - ------------------------------------------------------- Operating Income/(Loss) Excluding Charge (7.3) $ 21.7 $ 11.7 $ 233.4 ======================================================= Number of Shares Used in Per Share Calculations(1): BASIC 48,642,274 49,363,512 48,720,335 46,466,675 DILUTED 48,642,274 50,913,099 50,314,782 47,787,893 Net Income/(Loss) Per Share: BASIC $ (0.18) $ 0.45 $ 0.27 $ 4.83 DILUTED $ (0.18) $ 0.44 $ 0.26 $ 4.70 Income/(Loss) before extraordinary item (1) BASIC $ (0.18) $ 0.45 $ 0.27 $ 5.64 DILUTED $ (0.18) $ 0.44 $ 0.26 $ 5.49 Operating Income/(Loss) Before Early Retirement and Realignment Charge Per Share: BASIC $ (0.15) $ 0.44 $ 0.24 $ 5.02 DILUTED $ (0.15) $ 0.43 $ 0.23 $ 4.88 Operating Income/(Loss) Per Share: BASIC $ (0.15) $ 0.44 $ 0.24 $ 5.02 DILUTED $ (0.15) $ 0.43 $ 0.23 $ 4.88 - ----------------------------------------------------------------------------------------------------------------------------------- Q4'00 Q3'00 Q2'00 Q1'00 REVENUES: Premiums $ 196.5 $ 162.5 $ 176.5 $ 165.0 Universal life and investment-type product policy fees 48.8 51.2 55.9 49.9 Net investment income 165.2 231.6 229.5 351.8 Net realized gains on investments 4.9 22.9 (8.9) 18.6 Group pension profits 8.1 10.8 8.1 10.1 Retail Brokerage and Investment Banking 13.1 12.3 16.0 18.4 Other income 36.2 40.0 46.1 41.2 ------------------------------------------------------- Total revenues 472.8 531.3 523.2 655.0 ------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 210.7 194.0 202.4 180.7 Interest credited to policyholder account balances 27.5 28.9 25.8 28.4 Amortization of deferred policy acquisition costs 33.7 30.7 37.2 37.5 Dividends to policyholders 64.6 61.0 52.7 57.2 Demutualization Expense Other operating costs and expenses 124.2 116.4 133.6 139.0 ------------------------------------------------------- Total benefits and expenses 460.7 431.0 451.7 442.8 ------------------------------------------------------- Income before income taxes and extraordinary item 12.1 100.3 71.5 212.2 Income tax expense 3.0 33.1 23.4 74.3 ------------------------------------------------------- Income before extraordinary item 9.1 67.2 48.1 137.9 Extraordinary item - (1.0) - (36.7) ------------------------------------------------------- Net income $ 9.1 $ 66.2 $ 48.1 $ 101.2 ======================================================= Operating income: Net Income $ 9.1 $ 66.2 $ 48.1 $ 101.2 Less: Net realized gains on investments (after-tax) (3.2) (14.9) 5.8 (12.1) Plus: Policyholder dividends resulting from closed (1.7) 1.7 (2.9) (1.6) block realized gains (after tax) Surplus tax - - - - Extraordinary Items/Demutualization expenses - 1.0 - 36.7 ------------------------------------------------------- Operating income $ 4.2 $ 54.0 $ 51.0 $ 124.2 Early Retirement and Realignment Charge - - $ - $ - ------------------------------------------------------- Operating Income Excluding Charge $ 4.2 $ 54.0 $ 51.0 $ 124.2 ======================================================= Number of Shares Used in Per Share Calculations(1): BASIC 46,149,301 46,147,359 46,528,902 47,104,995 DILUTED 48,187,864 47,665,052 47,549,860 47,703,881 Net Income Per Share: BASIC $ 0.20 $ 1.43 $ 1.03 $ 2.15 DILUTED $ 0.19 $ 1.39 $ 1.01 $ 2.12 Income before extraordinary item (1) BASIC $ 0.20 $ 1.46 $ 1.03 $ 2.93 DILUTED $ 0.19 $ 1.41 $ 1.01 $ 2.89 Operating Income Before Early Retirement and Realignment Charge Per Share: BASIC $ 0.09 $ 1.17 $ 1.10 $ 2.64 DILUTED $ 0.09 $ 1.13 $ 1.07 $ 2.60 Operating Income Per Share: BASIC $ 0.09 $ 1.17 $ 1.10 $ 2.64 DILUTED $ 0.09 $ 1.13 $ 1.07 $ 2.60 - ----------------------------------------------------------------------------------------------------------------------------------- 1999 Q4'99 Q3'99 Q2'99 REVENUES: Premiums $ 717.1 $ 203.5 $ 165.0 $ 178.9 Universal life and investment-type product policy fees 196.3 50.6 47.8 52.5 Net investment income 902.3 298.8 219.3 196.1 Net realized gains on investments 125.1 24.4 24.4 43.1 Group pension profits 63.0 15.2 21.5 12.0 Retail Brokerage and Investment Banking 63.4 17.6 15.1 17.5 Other income 133.8 39.6 32.5 32.5 ------------------------------------------------------- Total revenues 2,201.0 649.7 525.6 532.6 ------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 787.1 219.3 180.4 200.5 Interest credited to policyholder account balances 115.5 28.3 28.5 28.6 Amortization of deferred policy acquisition costs 137.8 29.2 41.3 32.6 Dividends to policyholders 230.7 49.5 64.1 53.5 Demutualization Expense 2.0 0.1 1.9 Other operating costs and expenses 547.3 148.8 166.3 125.2 ------------------------------------------------------- Total benefits and expenses 1,820.4 475.2 482.5 440.4 ------------------------------------------------------- Income before income taxes and extraordinary item 380.6 174.5 43.1 92.2 Income tax expense 132.0 60.9 15.5 30.8 ------------------------------------------------------- Income before extraordinary item 248.6 113.6 27.6 61.4 Extraordinary item - ------------------------------------------------------- Net income $ 248.6 $ 113.6 $ 27.6 $ 61.4 ======================================================= Operating income: Net Income $ 248.6 $ 113.6 $ 27.6 $ 61.4 Less: Net realized gains on investments (after-tax) (81.3) (15.8) (15.9) (28.0) Plus: Policyholder dividends resulting from closed 1.9 -3 1.2 0.9 block realized gains (after tax) Surplus tax - - - - Extraordinary Items/Demutualization expenses 2.0 0.1 1.9 - ------------------------------------------------------- Operating income $ 171.2 $ 94.9 $ 14.8 $ 34.3 Early Retirement and Realignment Charge $ 38.8 $ 0.5 $ 38.3 ------------------------------------------------------- Operating Income Excluding Charge $ 210.0 $ 95.4 $ 53.1 $ 34.3 ======================================================= Number of Shares Used in Per Share Calculations(1): BASIC 47,238,328 47,238,328 47,238,166 47,237,950 DILUTED 47,812,953 47,877,402 47,988,904 47,711,875 Net Income Per Share: BASIC $ 5.26 $ 2.40 $ 0.58 $ 1.30 DILUTED $ 5.20 $ 2.37 $ 0.58 $ 1.29 Income before extraordinary item (1) BASIC $ 5.26 $ 2.40 $ 0.58 $ 1.30 DILUTED $ 5.20 $ 2.37 $ 0.58 $ 1.29 Operating Income Before Early Retirement and Realignment Charge Per Share: BASIC $ 4.45 $ 2.02 $ 1.13 $ 0.73 DILUTED $ 4.39 $ 1.99 $ 1.11 $ 0.72 Operating Income Per Share: BASIC $ 3.62 $ 2.01 $ 0.31 $ 0.73 DILUTED $ 3.58 $ 1.98 $ 0.31 $ 0.72 - ----------------------------------------------------------------------------------------------------------------------------------- Q1'99 1998 Q4'98 Q3'98 REVENUES: Premiums $ 169.7 $ 721.8 $ 200.5 $ 167.5 Universal life and investment-type product policy fees 45.4 151.6 39.7 37.6 Net investment income 188.1 735.7 180.9 197.1 Net realized gains on investments 33.2 171.1 1.5 12.0 Group pension profits 14.3 56.8 22.7 11.4 Retail Brokerage and Investment Banking 13.2 43.5 11.3 8.0 Other income 29.2 119.7 36.4 29.1 ------------------------------------------------------- Total revenues 493.1 2,000.2 493.0 462.7 ------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 186.9 789.8 227.4 182.7 Interest credited to policyholder account balances 30.1 113.7 25.7 29.3 Amortization of deferred policy acquisition costs 34.7 131.0 28.1 32.1 Dividends to policyholders 63.6 218.2 54.6 55.2 Demutualization Expense 27.2 11.7 5.8 Other operating costs and expenses 107.0 453.3 123.6 102.7 ------------------------------------------------------- Total benefits and expenses 422.3 1,733.2 471.1 407.8 ------------------------------------------------------- Income before income taxes and extraordinary item 70.8 267.0 21.9 54.9 Income tax expense 24.8 103.0 11.7 19.5 ------------------------------------------------------- Income before extraordinary item 46.0 164.0 10.2 35.4 Extraordinary item ------------------------------------------------------- Net income $ 46.0 $ 164.0 $ 10.2 $ 35.4 ======================================================= Operating income: Net Income $ 46.0 $ 164.0 $ 10.2 $ 35.4 Less: Net realized gains on investments (after-tax) (21.6) (111.2) (0.9) (7.9) Plus: Policyholder dividends resulting from closed 2.8 block realized gains (after tax) Surplus tax - - - (1.9) Extraordinary Items/Demutualization expenses - 27.2 11.7 5.8 ------------------------------------------------------- Operating income $ 27.2 $ 80.0 $ 21.0 $ 31.4 ------------------------------------------------------- Early Retirement and Realignment Charge Operating Income Excluding Charge $ 27.2 $ 80.0 $ 21.0 $ 31.4 ======================================================= Number of Shares Used in Per Share Calculations(1): BASIC 47,238,156 47,241,084 47,241,084 47,238,166 DILUTED 47,434,694 47,884,815 47,884,815 47,988,904 Net Income Per Share: BASIC $ 0.97 $ 3.47 $ 0.22 $ 0.75 DILUTED $ 0.97 $ 3.42 $ 0.21 $ 0.74 Income before extraordinary item (1) BASIC $ 0.97 $ 3.47 $ 0.22 $ 0.75 DILUTED $ 0.97 $ 3.42 $ 0.21 $ 0.74 Operating Income Before Early Retirement and Realignment Charge Per Share: BASIC $ 0.58 $ 1.69 $ 0.44 $ 0.66 DILUTED $ 0.57 $ 1.67 $ 0.44 $ 0.65 Operating Income Per Share: BASIC $ 0.58 $ 1.69 $ 0.44 $ 0.66 DILUTED $ 0.57 $ 1.67 $ 0.44 $ 0.65 - ----------------------------------------------------------------------------------------------------------------------------------- Q2'98 REVENUES: Premiums $ 177.4 Universal life and investment-type product policy fees 37.7 Net investment income 175.5 Net realized gains on investments 100.1 Group pension profits 13.1 Retail Brokerage and Investment Banking 15.0 Other income 28.3 ----------- Total revenues 547.1 ----------- BENEFITS AND EXPENSES: Benefits to policyholders 193.2 Interest credited to policyholder account balances 28.4 Amortization of deferred policy acquisition costs 37.9 Dividends to policyholders 53.8 Demutualization Expense 4.6 Other operating costs and expenses 117.6 ----------- Total benefits and expenses 435.5 ----------- Income before income taxes and extraordinary item 111.6 Income tax expense 41.5 ----------- Income before extraordinary item 70.1 Extraordinary item ----------- Net income $ 70.1 =========== Operating income: Net Income $ 70.1 Less: Net realized gains on investments (after-tax) (65.0) Plus: Policyholder dividends resulting from closed block realized gains (after tax) Surplus tax 0.9 Extraordinary Items/Demutualization expenses 4.6 ----------- Operating income $ 10.6 Early Retirement and Realignment Charge ----------- Operating Income Excluding Charge $ 10.6 =========== Number of Shares Used in Per Share Calculations(1): BASIC 47,237,950 DILUTED 47,711,875 Net Income Per Share: BASIC $ 1.48 DILUTED $ 1.47 Income before extraordinary item (1) BASIC $ 1.48 DILUTED $ 1.47 Operating Income Before Early Retirement and Realignment Charge Per Share: BASIC $ 0.22 DILUTED $ 0.22 Operating Income Per Share: BASIC $ 0.22 DILUTED $ 0.22 - 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(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 Nine Months Ending September 30, September 30, ------------- ------------- 2001 2000 2001 2000 ------- ------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------- PREMIUMS AND DEPOSITS (1) (6): MONY Life Insurance Company $ 209.2 $ 302.6 $ 613.4 $ 856.2 MONY Life Insurance Company of America 228.0 326.0 678.1 1,258.6 -------- -------- ---------- ---------- Total $ 437.2 $ 628.6 $ 1,291.5 $ 2,114.8 ======== ======== ========== ========== GENERAL EXPENSES (2) (4) (5): MONY Life Insurance Company $ 56.2 $ 63.1 $ 174.8 $ 197.2 MONY Life Insurance Company of America 32.5 29.4 97.0 87.5 -------- -------- ---------- ---------- Total $ 88.7 $ 92.5 $ 271.8 $ 284.7 ======== ======== ========== ========== LESS REAL ESTATE EXPENSES (3): MONY Life Insurance Company $ 2.6 $ 6.2 $ 7.4 $ 17.6 MONY Life Insurance Company of America 0.7 0.7 2.0 2.1 -------- -------- ---------- ---------- Total $ 3.3 $ 6.9 $ 9.4 $ 19.7 ======== ======== ========== ========== Expenses (excluding real estate expenses) $ 85.4 $ 85.6 $ 262.4 $ 265.0 ======== ======== ========== ========== Expenses (excluding real estate expenses) to Net Premiums 19.5% 13.6% 20.3% 12.5% and Deposits - ------------------------------------------------------------------------------------------------------------------------------- As of December 31, 2000 1999 1998 1997 1996 -------- -------- -------- -------- -------- - ------------------------------------------------------------------------------------------------------------------------------- PREMIUMS AND DEPOSITS (1) (6): 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) to Net 13.2% 14.0% 19.8% 18.6% 19.1% 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 $37 million and $230 for three month ended September 30, 2001 and 2000 respectively, $180 million and $880 million for nine month ended September 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-----