-----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, SQakcPQA11wCXOYzPDYwmezur+H3j3R9EtOh44SZhvyRBCI+Rc6JavUgJfPMtSDc Elk12RrQ3+CdIyJK10mfKw== 0000950109-02-000620.txt : 20020414 0000950109-02-000620.hdr.sgml : 20020414 ACCESSION NUMBER: 0000950109-02-000620 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020207 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020207 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: 02529942 BUSINESS ADDRESS: STREET 1: 1740 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127082000 8-K 1 d8k.txt MONY 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _______________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of Earliest Event Reported) - February 7, 2002 _______________ 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 February 7, 2002, The MONY Group Inc. issued a News Release reporting its financial results for the fourth 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 February 7, 2002. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three Months and Twelve Months Ended December 31, 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: February 7, 2002 Exhibit Index 99.1 News Release of The MONY Group Inc., dated February 7, 2002. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three Months and Twelve Months Ended December 31, 2001 and 2000." EX-99.1 3 dex991.txt NEWS RELEASE [LETTERHEAD OF THE MONY GROUP] The MONY Group Inc. Reports Fourth Quarter Operating Income of $0.14 Per Share Excluding Previously Announced Charges Fourth Quarter Results Are In-Line With Company Guidance NEW YORK (February 7, 2002) -- The MONY Group Inc. (NYSE:MNY) today reported operating income of $6.9 million or $0.14 per share for the quarter excluding reorganization and other charges. Including net realized gains on investments of $0.4 million or $0.01 per share and a previously announced fourth quarter charge of $95 million or $1.99 per share, the company reported a net loss of $87.7 million or $1.84 per share for the quarter. The $95 million fourth quarter charge consists of $36.9 million or $0.77 per share of charges taken in connection with the company's previously announced reorganization, which will result in $35 million in cost savings by the end of 2002; and $58.1 million or $1.22 per share of other charges unrelated to the company's reorganization activities. These charges include asset impairments and other valuation related asset write-downs. Operating earnings for the 2000 fourth quarter were $20.6 million or $0.43 per share excluding venture capital results. With a $14.7 million or $0.30 per share after-tax loss from the company's venture capital investments, a $1.7 million or $0.04 per share gain after-tax realized loss from the sale of assets in the company's transferred pension business and a $4.9 million or $0.10 per share gain from investments, net income was $9.1 million or $0.19 per share for the fourth quarter of 2000. "The economic environment continued to affect our results in the fourth quarter," said Michael I. Roth, chairman and CEO, The MONY Group. "While we saw strength in aspects of our business over the quarter, namely sales growth from our specialty-risk insurer, US Financial Life, and positive flows in our accumulation business - our mutual fund and retail brokerage businesses continued to be affected by the weak market conditions." 1 "MONY is positioned for higher growth levels in 2002 and beyond as a result of our reorganization over the year," continued Mr. Roth. "The internal separation of our operations into manufacturing and distribution entities has intensified our focus on business unit accountability and laid the foundation for greater revenue generation, better expense management, more targeted capital allocation and increased earnings." Full-Year Results Operating income for the year-ended December 31, 2001 was $42.1 million or $0.87 per share excluding the fourth quarter charge and venture capital results. With a net realized gain on investments of $1.2 million or $0.02 per share, the fourth quarter charge of $95 million or $1.95 per share and a venture capital loss of $9.1 million or $0.19 per share, the company reported a net loss of $60.8 million or $1.25 per share. Operating income for the year-ended December 31, 2000 was $91.5 million or $1.91 per share excluding venture capital results. With a $142.7 million or $2.98 per share gain from the company's venture capital portfolio, a $0.8 million or $0.01 per share gain after-tax realized loss from the sale of assets in the company's transferred pension business, net realized gains on investments of $28.9 million or $0.60 per share and a $37.7 million or $0.79 per share after-tax extraordinary charge from the company's debt refinancing, the company reported net income of $224.6 million or $4.70 per share. "As we enter 2002, the overall economic environment remains uncertain. However, we are in a strong position to compete effectively under any market conditions due to our extensive array of products and services, broad distribution channels and professional advice-based approach," added Mr. Roth. 2 An earnings summary is as follows: ($ in million except share data and per share amount)
Three Months Three Months Year Year Ended 12/31/01 Ended 12/31/00 Ended 12/31/01 Ended 12/31/00 Net (loss)/income $(87.7) $9.1 $(60.8) $224.6 Adjustments: Realized losses included in the 4th Quarter Charge 13.1 - 13.1 - Net realized (gains)/losses from investments (0.4) (4.9) (1.2) (28.9) Extraordinary item - net 37.7 ---------------- ---------------- ---------------- ---------------- Operating (loss) income (75.0) 4.2 (48.9) 233.4 Operating losses included in the 4th Quarter Charge 81.9 81.9 Net realized losses from transferred pension business 1.7 0.8 Venture capital (income)/loss 14.7 9.1 (142.7) ---------------- ---------------- ---------------- ---------------- Operating income, as adjusted (see Note 2) $6.9 $20.6 $42.1 $91.5 ================ ================ ================ ================ Diluted Per Share Amounts (see Note 1): Net (loss) income $(1.84) $0.19 $(1.25) $4.70 ================ ================ ================ ================ Operating (loss) income $(1.57) $0.09 $(1.01) $4.88 ================ ================ ================ ================ Operating income, as adjusted $ 0.14 $0.43 $ 0.87 $1.91 ================ ================ ================ ================ Share Data (see Note 1): Weighted-average shares outstanding 47,786,913 46,149,301 48,608,378 46,466,675 Plus: Incremental shares from assumed conversion of dilutive securities 0 2,038,563 0 1,321,218 ---------------- ---------------- ---------------- ---------------- Weighted-average shares used in diluted per-share calculations 47,786,913 48,187,864 48,608,378 47,787,893 ================ ================ ================ ================
Note 1: 1,227,397 and 1,333,745 incremental shares from the assumed conversion of dilutive securities were not included in the computation of per share amounts for the three-month period and year ended December 31, 2001, respectively, because their inclusion would be anti-dilutive. Note 2: Operating income reported for the three months and year ended December 31, 2001 includes after-tax realized gains/(losses) reflected in Group Pension Profits of $(0.6) million or $(0.01) per share and $2.6 million or $0.05 per share, respectively. These amounts do not reflect realized losses of $1.6 million after tax or $0.03 per share that were included in the Reorganization and Other Charges. 3 Developments: . MONY completed its strategic initiatives to improve profitability throughout the organization. These initiatives included implementing revenue generation and cost containment initiatives at both MONY Life Insurance Company and Advest. As a result, the company will achieve the previously announced goal of $35 million in cost savings by the end of 2002. . To date, the company repurchased 3.7 million shares at an average share price of $33.48. The company has 1.2 million shares remaining in its share repurchase program. . MONY declared an annual cash dividend of $0.45 per share of common stock on November 14, 2001. The dividend was paid on December 21, 2001 to shareholders of record on November 30, 2001. . As of December 31, 2001, book value was $40.78 per share (excluding accumulated comprehensive income) and has increased 20 percent from $33.94 as of December 31, 1998. . MONY's Advest subsidiary closed its acquisition of Lebenthal & Co. 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. . MONY Life Insurance Company of America introduced a new variable annuity product that provides access to an expanded group of money managers and enhanced its permanent life insurance portfolio by offering more competitively priced premiums, optional extension of death benefit coverage and a wider range of investment options for its variable products. MONY also introduced an enhanced conversion feature to its level term product and added a portfolio rate to its corporate-sponsored variable universal life (CSVUL) product. 4 Business Segments Protection Segment - ------------------ Through its protection segment, The MONY Group sells a wide range of life insurance products (including whole, term, universal, variable universal, survivorship universal, last survivor variable universal, and group universal life) to higher-income individuals, particularly small business owners, family builders and pre-retirees as well as corporations. Total new annualized and single life insurance premiums were $62.8 million and $214.7 million for the quarter and year-ended December 31, 2001, respectively, compared with $60.7 and $266 million for the comparable periods in 2000. U.S. Financial Life Insurance Company (USFL) premiums increased 26 percent to $14.8 million for the fourth quarter ended December 31, 2001 from $11.7 million for the comparable quarter in 2000. For the year ended December 31, 2001, premiums increased 17 percent to $49 million from $42 million for the year ended December 31, 2000. Higher universal life sales as well as successful marketing efforts to promote USFL's value offering contributed to these results. New life insurance premiums (first-year and single premiums) sold through the career agency system were $25.8 million for the quarter ended December 31, 2001 compared with $34.5 million for the comparable quarter. Career life insurance sales were $86.7 million for the year ended December 31, 2001 compared with $97.2 million for the year ended December 31, 2000. "As part of our reorganization, we have closed non-profitable locations and reduced the size of our career system by escalating our productivity standards," commented Mr. Roth. "These efforts will result in more profitable growth levels in 2002." Sales of corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) were $19 million for the quarter ended December 31, 2001 compared with $14 million for the quarter ended December 31, 2000. The sale of corporate-owned and bank-owned life insurance products fluctuate over the course of the year due to the unpredictable nature of corporate needs for this product. For the year ended December 31, 2001, COLI sales were $74 million compared with $124 million for the year-ended December 31, 2000. 5 Accumulation Segment - -------------------- The MONY Group distributes variable annuities and mutual funds through its career agency system, member companies and third-party broker-dealers. Accumulation assets under management were $9 billion as of December 31, 2001 compared to $9.9 billion as of December 31, 2000 and $8.2 billion as of September 30, 2001. New accumulation assets raised during the quarter were $405 million compared with $475 million for the fourth quarter of 2000. For the year, assets raised were $1.71 billion compared with a record $2.47 billion in 2000. The company had positive flows of $50 million and $115 million for the quarter and year respectively. "2001 asset levels remained below levels experienced in 1999 and 2000, resulting in lower fees from these assets," commented Mr. Roth. "Compared to a record year in 2000, we had lower sales of Enterprise Funds through both our career agency system and third-party relationships in 2001." For the quarter ended December 31, 2001, Enterprise sales were $284 million, $213 million of which were sold by third-party broker-dealers and $71 million were sold through The MONY Group's career agency system. For the quarter ended December 31, 2000, Enterprise sales were $376 million, $270 million of which were sold by third-party broker-dealers and $106 million through the career agency system. For the year ended 2001, Enterprise sales were $1.32 billion, $962 million of which were sold by third-party broker-dealers and $359 million were sold through The MONY Group's career agency system. For the year ended 2000, Enterprise sales were approximately $2.05 billion, $1.4 billion of which were sold by third-party broker-dealers and $615 million were sold through The MONY Group's career agency system. Annuity sales increased to $121 million for the fourth quarter of 2001 compared with $99 million for the quarter ended December 31, 2000. Sales were $393 million for the year ended December 31, 2001 compared with $421 million for the year ended December 31, 2000. 6 Retail Brokerage & Investment Banking - ------------------------------------- The Retail Brokerage and Investment Banking segment includes securities brokerage, trading, investment banking, trust and asset management services for 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 $90.5 million during the fourth quarter ended December 31, 2001 and $343.5 million for the year ended December 31, 2001. Advest revenues were $79 million for the fourth quarter and $297 million for the eleven months ended December 31, 2001. On a proforma basis, revenues were $96 million and $371 million for the comparable periods respectively. Continued market volatility affected these results. Advest completed its previously announced outsourcing of its back-office processing operations - resulting in cost savings of approximately $10 million. The outsourcing will provide Advest financial advisors with enhanced technological and operational support to expand and develop their practices. MONY Securities Corp., a registered securities broker-dealer for MONY's career agency system, posted revenues of $10.5 million for the fourth quarter and $43.5 million for the year. Comparably, revenues were $13 million during the fourth quarter of 2000 and $59.7 million for the year 2000. 2002 Outlook - ------------ As announced on November 8, 2001, MONY expects to earn $1.25 per share excluding venture capital income. This estimate reflects the elimination of goodwill amortization, stronger results from the company's retail brokerage segment and the benefits of expense initiatives. This estimate assumes an approximate 7 percent annual appreciation in the equity markets over the year. An additional $0.70 per share gain expected from the closing payment in the company's pension business is not included in the $1.25 estimate. 7 "The economic environment reinforces the importance of diversification in financial planning. This plays well to our strengths," added Mr. Roth. "Our qualified financial advisors help customers plan for the long-term. Our advice-based approach and personalized touch is supplemented by our broad array of products and services - including not only equity-based products but also life insurance, tax-exempt and municipal bond investing through Lebenthal as well as annuity and mutual fund products with risk-adverse and conservative investment options. Our ability to help customers during various life stages and market conditions will be an important growth driver in 2002 and beyond." 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 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 implemented. 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 $55 billion in assets under management and administration, provides life insurance, annuities, mutual funds, brokerage, asset management, business & estate planning, trust and investment banking products and services to individual and institutional clients through several member companies. The MONY Group focuses primarily on offering customized financial solutions through multiple distribution channels, including a career network, brokerage general agencies, financial advisors, brokers, and other complementary channels. The MONY Group's (www.mony.com) member companies include The Advest Group, Inc., MONY Life Insurance Company, MONY Life Insurance Company of America, Matrix Capital Markets Group Inc., Enterprise Capital Management, Inc., U.S. Financial Life Insurance Company, Lebenthal & Co., MONY Securities Corporation and Trusted Securities Advisors Corp. Note: The MONY Group Inc. will host a conference call to discuss year-end and 4Q 2001 financial results at 9:00 am (EST) on Thursday, February 7, 2002. The call can be heard via the Investor Relations link at www.mony.com. ------------ 8 SUPPLEMENTAL FINANCIAL INFORMATION To assist interested parties in analyzing the Company's consolidated financial results attached is the following supplemental information: Exhibit I presents certain summary consolidated income statement data of The MONY Group for the three-months and year-end December 31, 2001 and 2000. Exhibit II presents certain summary consolidated balance sheet data as of December 31, 2001. Exhibit III presents information regarding new business generated by the Company for the three-months and year-end December 31, 2001 and 2000. 9 Exhibit I THE MONY GROUP INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT
($ in millions, except share data and per share amounts) Three Months Ended Year Ended December 31, December 31, 2001 2000 2001 2000 ---- ---- ---- ---- Revenues: Premiums $ 194.8 $ 196.5 $ 695.3 $ 700.5 Universal life and investment-type product policy fees 55.1 48.8 207.2 205.8 Net investment income 146.0 165.2 692.1 978.1 Net realized gains (losses) on investments (18.3) 4.9 (12.3) 37.5 Group Pension Profits 3.5 8.1 30.7 37.1 Retail brokerage and investment banking 90.5 13.0 343.5 59.7 Other income 53.3 36.3 147.1 163.6 ------------ ------------ ------------ ------------ 524.9 472.8 2,103.6 2,182.3 Benefits and Expenses: Benefits to policyholders 218.6 210.7 814.7 787.8 Interest credited to policyholders' account balances 27.3 27.5 110.5 110.6 Amortization of deferred policy acquisition costs 60.4 33.7 158.8 139.1 Dividends to policyholders 66.9 64.6 236.6 235.5 Other operating costs and expenses 285.4 124.2 876.4 513.2 ------------ ------------ ------------ ------------ 658.6 460.7 2,197.0 1,786.2 (Loss) Income before income taxes and extraordinary item (133.7) 12.1 (93.4) 396.1 Income tax benefit (expense) 46.0 (3.0) 32.6 (133.8) ------------ ------------ ------------ ------------ (Loss) Income before extraordinary item (87.7) 9.1 (60.8) 262.3 Extraordinary item, net (37.7) ------------ ------------ ------------ ------------ Net (loss) income $ (87.7) $ 9.1 $ (60.8) $ 224.6 ============ ============ ============ ============ Operating Income: Net (loss)/income $ (87.7) $ 9.1 $ (60.8) $ 224.6 Adjustments: Realized losses included in the 4th Quarter Charge 13.1 13.1 Net realized (gains)/losses from investments (0.4) (4.9) (1.2) (28.9) Extraordinary item - net 37.7 ------------ ------------ ------------ ------------ Operating (loss) income (75.0) 4.2 (48.9) 233.4 Operating losses included in the 4th Quarter Charge 81.9 81.9 Net realized losses from transferred pension business 1.7 0.8 Venture capital loss (income) 14.7 9.1 (142.7) ------------ ------------ ------------ ------------ Operating income, as adjusted (see Note 2) $ 6.9 $ 20.6 $ 42.1 $ 91.5 ============ ============ ============ ============ Diluted Per Share Amounts (see Note 1): Net (Loss) Income $ (1.84) $ 0.19 $ (1.25) $ 4.70 Reported Operating (Loss) Income $ (1.57) $ 0.09 $ (1.01) $ 4.88 Adjusted Operating Income $ 0.14 $ 0.43 $ 0.87 $ 1.91 Share Data (see Note 1): Weighted-average Shares Outstanding 47,786,913 46,149,301 48,608,378 46,466,675 Plus: Incremental Shares from Assumed Conversion of Diluted Securities 2,038,563 1,321,218 ------------ ------------ ------------ ------------ Weighted-average Shares in Diluted Per Share 47,786,913 48,187,864 48,608,378 47,787,893 Calculations ============ ============ ============ ============
Note 1: 1,227,397 and 1,333,745 incremental shares from the assumed conversion of dilutive securities were not included in the computation of per share amounts for the three month period and year ended December 31, 2001 because their inclusion would be anti-dilutive. Note 2: Operating income reported for the three months and year ended December 31, 2001 includes after-tax realized gains/(losses) reflected in Group Pension Profits of $(0.6) million or $(0.01) per share and $2.6 million or $0.05 per share, respectively. These amounts do not reflect realized losses of $1.6 million after tax or $0.03 per share that were included in the Reorganization and Other Charges. 10 Exhibit II SUMMARY CONSOLIDATED BALANCE SHEET DATA ($ in millions, except per share amounts) As of December 31, 2001 ---- Assets: Invested assets (including cash and cash equivalents) $ 11,826.5 Assets transferred in the Group Pension Transaction 4,650.4 Separate account assets 5,195.2 Other assets 3,980.2 ------------ Total assets $ 25,652.5 ============ Liabilities: Policyholders' liabilities $ 10,488.2 Liabilities transferred in the Group Pension Transaction 4,586.5 Separate account liabilities 5,192.3 Short-term debt 320.0 Long-term debt 578.8 Other liabilities 2,434.4 ------------ Total liabilities 23,600.2 Shareholders' equity: Equity 2,014.2 Accumulated comprehensive income 38.1 ------------ Total shareholders' equity 2,052.3 ------------ Total liabilities and shareholders' equity $ 25,652.5 ============ Per share amounts: Diluted book value per share $ 41.55 ============ Diluted book value per share (Ex. Accumulated Comprehensive Income) $ 40.78 ============ 11 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 Year Ended Year Ended Period Ended Period Ended 12/31/01 12/31/00 12/31/01 12/31/00 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- New Business ($ millions) - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Protection Products - ------------------- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Career Agency System $25.8 $34.5 $86.7 $97.2 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- U.S. Financial Life Insurance 14.8 11.7 49.0 42.0 Company - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Complementary Distribution* 22.2 14.5 79.0 126.8 ---- ---- ---- ----- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Total New Life Insurance Premiums $62.8 $60.7 $214.7 $266.0 ===== ===== ====== ====== - ------------------------------------- ---------------- ----------------- ---------------- ----------------- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Accumulation Products - --------------------- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Variable Annuities $121 $99 $393 $421 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Career Agency System - Mutual Funds 71 106 359 615 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Third Party Distribution - Mutual 213 270 962 1,438 --- --- --- ----- Funds - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Total Accumulation $405 $475 $1,714 $2,474 ==== ==== ====== ====== - ------------------------------------- ---------------- ----------------- ---------------- ----------------- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Revenues ($ millions) - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Retail Brokerage & Investment - ----------------------------- Banking - ------- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Advest $79.0 $96.4** $296.9 $371.1** - ------------------------------------- ---------------- ----------------- ---------------- ----------------- MONY Securities Corp. 10.5 13.1 43.5 59.7 - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Other 1.0 0.9*** 3.1 5.2*** --- ------ --- ------ - ------------------------------------- ---------------- ----------------- ---------------- ----------------- Total Revenue $90.5 $110.3 $343.5 436.0 ===== ====== ====== ===== - ------------------------------------- ---------------- ----------------- ---------------- ----------------- - ------------------------------------- ---------------- ----------------- ---------------- ----------------- - ------------------------------------- ---------------- ----------------- ---------------- -----------------
* primarily corporate life insurance ** for eleven month period, February - December; prior year is proforma for comparison purposes *** proforma for comparison purposes 12 EX-99.2 4 dex992.txt STATISTICAL SUPPLEMENT EXHIBIT 99.2 THE MONY GROUP INC. STATISTICAL SUPPLEMENT AS OF AND FOR THE THREE-MONTHS AND TWELVE MONTHS ENDED DECEMBER 31, 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 Reorganization and Other 4th Quarter Charges 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 Credit Suisse First Boston .... Caitlin Long .... (212) 325-2165 Deutsche Banc Alex Brown .... Vanessa Wilson .... (212) 469-7351 Dowling & Partners Securities, LLC .... Paul Goulekas .... (860) 676-8600 Dresdner Kleinwort Wasserstein .... Thomas Gallagher .... (212) 903-2191 Fox-Pitt, Kelton .... Ronald McIntosh .... (212) 687-1105 Goldman Sachs .... Joan Zief .... (212) 902-6778 Keefe, Bruyette & Woods, Inc. .... Jeffrey Schuman .... (860) 297-0300 Langen McAlenney .... Robert Glasspiegel .... (860) 724-1203 Lehman Brothers Inc. .... E. Stewart Johnson .... (646) 351-4345 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 Sandler O'Neil & Partners .... Nick Pirsos .... (212) 847-5043 Investor Information Line Contact: Jay Davis Tel (212) 708-2917 E-mail jdavis@mony.com Visit our internet site at www.mony.com 3 CORPORATE OFFICES, PRINCIPAL SUBSIDIARIES MONY Life Insurance Company Trusted Securities Advisors Corp. 1740 Broadway 7760 France Avenue South, Suite 420 New York, NY 10019 Minneapolis, MN 55435 MONY Life Insurance Company of America The Advest Group, Inc. 1740 Broadway 90 State House Square New York, NY 10019 Hartford, CT 06103 U.S. Financial Life Insurance Company Matrix Capital Markets Group Inc. 10290 Alliance Road 11 South 12th Street Cincinnati, OH 45242 Suite 325 Richmond, VA 23219 Enterprise Capital Management, Inc. 3343 Peachtree Road, NE, Suite 450 Lebenthal & Co., Inc. Atlanta, GA 30326 120 Broadway New York, NY 10271 MONY Securities Corporation 1740 Broadway New York, NY 10019 CORPORATE RATINGS CLAIMS PAYING ABILITY/ SENIOR DEBT FINANCIAL STRENGTH RATINGS (1) RATINGS (2) Standard Standard & Poors & Poors AA- A- A.M. (3) A.M. Best Best A a- Moody's Moody's A2 Baa1 Fitch Fitch AA- A- (1) MONY Life Insurance Company and MONY Life Insurance Company of America (2) The MONY Group (3) MONY Life Insurance Company and MONY Life Insurance Company of America; and U.S. Financial Life Insurance Company 4
(Unaudited) SUMMARY FINANCIAL INFORMATION - ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Year Ended December 31, December 31, 2001 2000 (2) 2001 2000 ---- -------- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED INCOME STATEMENT DATA: Net (Loss)/Income $ (87.7) $ 9.1 $ (60.8) $ 224.6 Realized losses included in the 4th quarter charge 13.1 - 13.1 - Net realized (gains)/losses from investments (0.4) (4.9) (1.2) (28.9) Extraordinary item - net - - - 37.7 --------------- --------------- -------------- --------------- Operating (loss)/income: (75.0) 4.2 (48.9) 233.4 Operating loss included in the 4th quarter charge 81.9 - 81.9 - Net realized losses from transferred pension business - 1.7 - 0.8 Venture capital (income)/loss - 14.7 9.1 (142.7) --------------- --------------- -------------- --------------- Operating income as adjusted: (see note 2) $ 6.9 $ 20.6 $ 42.1 $ 91.5 =============== =============== ============== =============== Diluted Per Share Amounts: (see note 1) Net(loss)/income $ (1.84) $ 0.19 $ (1.25) $ 4.70 =============== =============== ============== =============== Operating (loss)/income $ (1.57) $ 0.09 $ (1.01) $ 4.88 =============== =============== ============== =============== Operating income, as adjusted $ 0.14 $ 0.43 $ 0.87 $ 1.91 =============== =============== ============== =============== Share Data Weighted-average shares outstanding used in basic per share calculations 47,786,913 46,149,301 48,608,378 46,466,675 Plus: Incremental shares from assumed conversion of dilutive securities (1) - 2,038,563 - 1,321,218 --------------- --------------- -------------- --------------- Weighted-average shares used in diluted per per share calculations 47,786,913 48,187,864 48,608,378 47,787,893 =============== =============== ============== =============== OTHER DATA: Employee count 3,655 * 2,466 Career agent count (Domestic and International) 2,006 2,447 US Financial Life Brokerage General Agencies 231 232 Trusted Advisors Registered Representatives 438 380 Active Enterprise Selling Agreements 463 470 Advest Financial Advisors 482 N/A * December 31, 2001 employee count includes Advest and Matrix
(1) 1,227,397 and 1,333,745 incremental shares from assumed conversion of dilutive securities were not included in the computation of per share amounts for the three-months ended and year ended December 31, 2001, respectively because to do so would be antidilutive. (2) Operating income reported for the three months and year ended December 31, 2001 includes after-tax realized gains/(losses) reflected in Group Pension Profits of $(0.6) million or $(0.01) per share and $2.6 million or $0.05 per share, respectively. These amounts do not reflect after-tax realized losses of $1.6 million or $0.03 per share that were included in the Reorganization and Other Charges. 5
(Unaudited) SUMMARY FINANCIAL INFORMATION - CONTINUED - -------------------------------------------------------------------------------------------------------------------------- December 31, December 31, 2001 2000 ---- ---- ($ millions) - -------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET DATA Invested assets (including cash and cash equivalents) $ 11,826.5 $ 11,222.5 Assets transferred in Group Pension Transaction 4,650.4 4,927.7 Separate account assets 5,195.2 5,868.1 Other assets 3,980.2 2,557.0 ------------------- ------------------ Total Assets 25,652.3 24,575.3 Policyholders' liabilities 10,488.2 10,281.7 Liabilities transferred in Group Pension Transaction 4,586.5 4,897.2 Separate account liabilities 5,192.3 5,865.3 Short term debt 320.0 52.3 Long term debt 578.8 571.1 Other liabilities 2,434.3 868.8 ------------------- ------------------ Total Liabilities 23,600.1 22,536.4 Equity 2,014.1 2,025.9 Accumulated comprehensive income (ACI) 38.1 13.0 ------------------- ------------------ Total Shareholders' Equity 2,052.2 2,038.9 ------------------- ------------------ Total Liabilities and Shareholders' Equity $ 25,652.3 $ 24,575.3 =================== ================== SHARE DATA: Diluted book value per share 41.55 41.92 Diluted Book Value (excluding accumulated comprehensive income) 40.78 41.65 CAPITALIZATION: Long-term debt $ 578.8 $ 571.1 Shareholders Equity (Excluding ACI) 2,014.1 2,025.9 ------------------- ------------------ Total capitalization $ 2,592.9 $ 2,597.0 =================== ================== Debt as Percent of Total Capitalization 22% 22% =================== ================== STATUTORY DATA: Capital and Surplus $ 917.4 $ 1,154.8 Asset Valuation Reserve (AVR) 201.0 281.3 ------------------- ------------------ Total Capital and Surplus plus AVR $ 1,118.4 $ 1,436.1 =================== ==================
6 Exhibit 1 (Unaudited) CONSOLIDATED INCOME STATEMENT DATA (1)
- ------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Year Ended December 31, December 31, 2001 (3) 2000 2001 (3) 2000 --------- ---- --------- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 194.8 $ 196.5 $ 695.3 $ 700.5 Universal life and investment-type product policy fees 55.1 48.8 207.2 205.8 Net investment income 146.0 165.2 692.1 978.1 Net realized (losses)/gains on investments (18.3) 4.9 (12.3) 37.5 Group Pension Profits 3.5 8.1 30.7 37.1 Retail Brokerage and Investment Banking 90.5 13.0 343.5 59.7 Other income 53.3 36.3 147.1 163.6 ------------- ------------- -------------- --------------- 524.9 472.8 2,103.6 2,182.3 ------------- ------------- -------------- --------------- BENEFITS AND EXPENSES: Benefits to policyholders 218.6 210.7 814.7 787.8 Interest credited to policyholders account balances 27.3 27.5 110.5 110.6 Amortization of deferred policy acquisition costs 60.4 33.7 158.8 139.1 Dividends to policyholders 66.9 64.6 236.6 235.5 Other operating costs and expenses(2) 285.4 124.2 876.4 513.2 ------------- ------------- -------------- --------------- 658.6 460.7 2,197.0 1,786.2 ------------- ------------- -------------- --------------- (Loss)/Income before income taxes and extraordinary item (133.7) 12.1 (93.4) 396.1 Income tax expense (46.0) 3.0 (32.6) 133.8 ------------- ------------- -------------- --------------- (Loss)/Income before extraordinary item (87.7) 9.1 (60.8) 262.3 Extraordinary item, net - - - (37.7) ------------- ------------- -------------- --------------- Net (Loss)/Income $ (87.7) $ 9.1 $ (60.8) 224.6 ============= ============= ============== ===============
- ---------------------------------------------------------------- (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 twelve-month periods ended December 31, 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. (3) Includes reorganization and other charges recorded in the 4th quarter of 2001 aggregating $146.1 million on a pre-tax basis. For details of such charges and the line items they are reflected in, refer to Exhibit 2 herein. 7 STATISTICAL SUPPLEMENT Reorganization AND OTHER CHARGES EXHIBIT Exhibit 2 - Reorganization and Other 4th Quarter Charges During the 4th quarter of 2001, the Company recorded pre-tax charges aggregating approximately $146.1 million. Of this amount approximately $56.8 million represented "Reorganization Charges" taken in connection with the Company's previously announced Reorganization of certain of its businesses and $89.3 million represented "Other Charges" unrelated to the Company's Reorganization activities. The following table summarizes the components of the aforementioned Reorganization Charges and Other Charges, respectively:
- ------------------------------------------------------------------------------------------------------- Net -------- Operating Realized Total --------- -------- --------- Losses -------- Reorganization Charges: Severance benefits and incentive compensation $ 22.8 $ - $ 22.8 Leased offices and equipment 8.7 - 8.7 Deferred policy acquisition costs 17.0 - 17.0 Other 8.3 - 8.3 -------- ------- -------- Subtotal - Reorganization Charges 56.8 - 56.8 Other Charges: Asset Impairments and Valuation Related Write-downs 29.9 20.1 50.0 Deferred Sales Charges 7.0 - 7.0 Information technology assets 9.4 - 9.4 Other 22.9 - 22.9 -------- ------- -------- Subtotal - Other Charges 69.2 20.1 89.3 -------- ------- -------- Total - Reorganization and Other Charges before tax $ 126.0 $ 20.1 $ 146.1 -------- ------- -------- Total - Reorganization and Other Charges after tax $ 81.9 $ 13.1 $ 95.0 -------- ------- -------- - -------------------------------------------------------------------------------------------------------
All of the components of the Reorganization Charges reflected above, except $17.0 million related to deferred policy acquisition costs and $5.3 million related to investments expenses, are included in "Other Operating Cost and Expenses" in the Company's consolidated income statement for the year ended December 31, 2001. None of the Reorganization Charges reflected in the table above have been allocated to the Company's segments. All such charges are included as reconciling items of the segments to the Company's consolidated income statement for the year ended December 31, 2001 The following table indicates the line items in the Company's consolidated and segmented income statements for the year ended December 31, 2001 that the Other Charges in the table above are reflected in. In addition, all of the reorganization charges are reflected in reconciling in the table as discussed above.
- -------------------------------------------------------------------------------------------------------- Retail Brokerage and Other/ Investment ----------- Protection Accumulation Banking Reconciling Total ---------- ------------ ------- ----------- -------- Premiums $ 1.0 $ - $ - $ - $ 1.0 Net investment income 20.3 3.8 - 8.6 32.7 Group pension profit 2.5 - - - 2.5 Benefits to policyholders 1.8 3.9 - - 5.7 Amortization of deferred - 2.0 - 17.0 19.0 policy acquisition costs Other operating costs and 17.6 10.3 1.7 35.5 65.1 expenses ---------- ------------ ------- ----------- -------- Total Other Operating 43.2 20.0 1.7 61.1 126.0 Charges ---------- ------------ ------- ----------- -------- Net realized losses on 14.9 2.8 - 2.4 20.1 investments ---------- ------------ ------- ----------- -------- Total Other Charges $ 58.1 $ 22.8 $ 1.7 $ 63.5 $ 146.1 ---------- ------------ ------- ----------- -------- - --------------------------------------------------------------------------------------------------------
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 Year Ended December 31, December 31, 2001 (2) 2000 2001 (2) 2000 --------- ---- --------- ---- ($ millions) ($ millions) REVENUES: Premiums $ 185.0 $ 188.5 $ 675.5 $ 685.7 Universal life and investment-type product policy fees 41.6 32.5 151.6 134.8 Net investment income 128.1 136.1 565.6 775.0 Group Pension Profits 3.5 8.1 30.7 37.1 Other income 15.4 2.9 16.1 20.6 -------------- --------------- ------------- ------------ Total revenues 373.6 368.1 1,439.5 1,653.2 -------------- --------------- ------------- ------------ BENEFITS AND EXPENSES: Benefits to policyholders 195.9 194.8 754.5 736.6 Interest credited to policyholder account balances 15.0 14.7 60.6 54.5 Amortization of deferred policy acquisition costs 34.8 26.8 115.7 110.8 Dividends to policyholders 66.1 63.8 233.9 232.7 Other operating costs and expenses 83.1 55.1 245.5 262.2 -------------- --------------- ------------- ------------ Total benefits and expenses 394.9 355.2 1,410.2 1,396.8 -------------- --------------- ------------- ------------ Pre-tax operating (loss)/ income (21.3) 12.9 29.3 256.4 Net realized (losses)/gains on investments (11.6) 3.0 (6.2) 21.7 -------------- --------------- ------------- ------------ Pre-tax (loss)/income $ (32.9) $ 15.9 $ 23.1 $ 278.1 ============== =============== ============= ============ OPERATING INCOME RECONCILIATION (3): Pre-tax operating (losses)/income (21.3) 12.9 29.3 256.4 Policyholder dividends resulting from closed block realized gains/(losses) 1.3 (2.7) 6.0 (7.0) -------------- --------------- ------------- ------------ Operating (Loss)/Income $ (20.0) $ 10.2 $ 35.3 $ 249.4 ============== =============== ============= ============
(1) These income statements present the results of operations of the Company's protection products segment for the periods indicated as will be reported in the Company's filings with the Securities and Exchange Commission. The results reported for the three and twelve-month periods ended December 31, 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.") (2) During the 4th quarter of 2001 the company recorded charges aggregating $146.1 million. This consisted of $56.8 million of reorganization charges taken in connection with the company's previously announced reorganization and $89.3 million of other charges unrelated to the company's reorganization. None of the reorganization charges have been allocated to the segments, whereas all of the aforementioned other charges have. Refer to Exhibit 2 for details. (3) Adjusted to exclude venture capital (loss) income and Other Charges (see Exhibit 2) allocated to the segment, operating (loss) income for the three-months and year ended December 31, 2001 were as follows:
Three-Months Three-Months Year Ended Year Ended Ended Ended Ended Ended December 31, December 31, December 31, December 31, ($ millions) 2001 2000 2001 2000 ------------ ------------ ------------ ------------ Operating (Loss)/Income $ (20.0) 10.2 $ 35.3 $ 249.4 Venture Capital losses/(income) - 15.5 10.3 (164.0) Reorganization Charges (see Exhibit 2) - - - - Other Operating Charges (see Exhibit 2) 43.2 - 43.2 0 ------------ ------------ ------------ ------------ Operating (Loss)/Income adjusted to exclude Venture Capital results and Reorganization and Other Charges $ 23.2 $ 25.7 $ 88.8 $ 85.4 ============ ============ ============ ============
10 Exhibit 5A (Unaudited) GROUP PENSION PROFIT SUMMARY INCOME STATEMENT
- ----------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Year Ended December 31, December 31, INCOME STATEMENT DATA: 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------- REVENUES: Policy Product Fees $ 5.3 $ 6.9 $ 19.6 $ 26.3 Net investment income 24.0 27.3 102.0 113.5 Net realized gains/(losses) on investments (see note 1) (3.4) (2.8) 1.5 (1.2) -------------- -------------- ------------- ------------ Total revenues 25.9 31.4 123.1 138.6 -------------- -------------- ------------- ------------ BENEFITS AND EXPENSES: Interest credited to policyholder account balances 18.6 19.8 $ 74.8 $ 84.6 Other operating costs and expenses 3.8 3.5 17.6 16.0 -------------- -------------- ------------- ------------ Total benefits and expenses 22.4 23.3 92.4 101.5 -------------- -------------- ------------- ------------ Group Pension Profits $ 3.5 $ 8.1 $ 30.7 $ 37.1 ============== ============== ============= ============
(1) Includes $2.5 million of pretax realized losses ($1.6 million after-tax) relating to the impairment of certain investments which was included in the 4th quarter 2001 Other Charges. ASSETS AND LIABILITIES TRANSFERRED IN GROUP PENSION TRANSACTION
- --------------------------------------------------------------------------------------- December 31, December 31, 2001 2000 ---- ---- ($ millions) - --------------------------------------------------------------------------------------- BALANCE SHEET DATA : Assets: General Account Fixed maturities $ 1,400.5 $ 1,419.0 Mortgage loans on real estate 26.5 47.5 Cash and cash equivalents 19.4 18.5 Other assets 24.5 26.0 --------------- ----------------- Total general account assets 1,470.9 1,511.0 Separate account assets 3,179.5 3,416.7 --------------- ----------------- Total Assets $ 4,650.4 $ 4,927.7 =============== ================= Liabilities: General Account Policyholder account balances $ 1,398.8 $ 1,468.1 Other liabilities 8.2 12.4 --------------- ----------------- Total general account liabilities 1,407.0 1,480.5 Separate account liabilities 3,179.5 3,416.7 --------------- ----------------- Total Liabilities $ 4,586.5 $ 4,897.2 =============== =================
11 Exhibit 5B (Unaudited)
CLOSED BLOCK INCOME STATEMENT - ------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Year Ended Decemeber 31, Decemeber 31, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 154.1 $ 162.8 $ 551.4 $ 582.4 Net investment income 98.6 101.5 397.6 395.7 Net realized gains/(loss) on investments 1.3 (2.7) 6.0 (7.0) Other income 0.9 0.5 2.4 2.2 -------------- ------------- ------------ ------------- Total revenues 254.9 262.1 957.4 973.3 -------------- ------------- ------------ ------------- BENEFITS AND EXPENSES: Benefits to policyholders 161.8 170.7 606.9 620.9 Interest credited to policyholders account balances 2.4 2.3 8.9 8.8 Amortization of deferred policy acquisition costs 13.3 13.8 59.4 60.4 Dividends to policyholders 65.8 63.8 233.1 232.9 Operating costs and expenses 1.3 0.8 7.0 7.5 -------------- ------------- ------------ ------------- Total benefits and expenses 244.6 251.4 915.3 930.5 -------------- ------------- ------------ ------------- Closed Block Profit $ 10.3 $ 10.7 $ 42.1 $ 42.8 ============== ============= ============ ============= CLOSED BLOCK ASSETS AND LIABILITIES - ----------------------------------------------------------------------------------------------------------- December 31, December 31, 2001 2000 ---- ---- ($ millions) - ----------------------------------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed maturities $ 3,868.9 $ 3,543.1 Mortgage loans on real estate 622.1 566.0 Amounts due from broker 6.2 - Policy loans 1,144.3 1,183.9 Cash and cash equivalents 56.2 167.8 Premiums receivable 12.5 13.6 Deferred policy acquisition costs 500.6 552.6 Other assets 219.3 224.2 ----------------- ------------------ Total closed block assets $ 6,430.1 $ 6,251.2 ================= ================== Liabilities: General Account Future policy benefits $ 6,869.8 $ 6,826.8 Policyholders' account balances 292.9 293.3 Other policyholders' liabilities 162.2 173.5 Other liabilities 163.9 22.2 ----------------- ------------------ Total closed block liabilities $ 7,488.8 $ 7,315.8 ================= ==================
12 Exhibit 5C (Unaudited)
FIXED MATURITIES BY CREDIT QUALITY - CLOSED BLOCK PUBLIC FIXED MATURITIES BY CREDIT QUALITY - -------------------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended December 31, 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 $ 1,589.1 76.7% $ 1,631.5 $ 1,390.8 77.2% $ 1,395.4 2 Baa 391.3 18.8% 399.6 366.1 19.7% 356.3 3 Ba 93.1 4.1% 86.2 60.5 2.9% 53.2 4 B 5.0 0.2% 4.9 0.6 0.0% 0.6 5 Caa and lower 5.0 0.2% 5.1 - 0.0% - 6 In or near default 0.6 0.0% 0.5 1.4 0.1% 1.4 ------------- --- ----------- ------------- --- ----------- Subtotal 2,084.1 100.0% 2,127.8 1,819.4 100.0% 1,806.9 Redeemable preferred stock - 0.0% - - 0.0% - ------------- --- ----------- ------------- --- ----------- Total Public Fixed Maturities $ 2,084.1 100.0% $ 2,127.8 $ 1,819.4 100.0% $ 1,806.9 ------------- ----- ----------- ------------- ----- ----------- PRIVATE FIXED MATURITIES BY CREDIT QUALITY - -------------------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended December 31, 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 $ 845.3 50.3% $ 875.1 $ 810.1 47.3% $ 820.5 2 Baa 742.5 43.6% 759.5 824.5 48.1% 835.7 3 Ba 83.6 4.8% 83.3 72.1 4.0% 70.3 4 B 17.8 1.0% 17.1 - 0.0% - 5 Caa and lower 7.5 0.3% 6.0 9.7 0.6% 9.7 6 In or near default - 0.0% - - 0.0% - ------------- --- ----------- ------------- --- ----------- Subtotal 1,696.7 100.0% 1,741.0 1,716.4 100.0% 1,736.2 Redeemable preferred stock - 0.0% - - 0.0% - ------------- ----- ----------- ------------- ----- ----------- Total Public Fixed Maturities $ 1,696.7 100.0% $ 1,741.0 $ 1,819.4 100.0% $ 1,736.2 ------------- ----- ----------- ------------- ----- ----------- TOTAL FIXED MATURITIES BY CREDIT QUALITY - -------------------------------------------------------------------------------------------------------------------------------- Year Ended Year Ended December 31, 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 $ 2,434.4 64.8% $ 2,506.6 $ 2,200.9 62.5% $ 2,215.9 2 Baa 1,133.8 30.0% 1,159.1 1,190.6 33.6% 1,192.0 3 Ba 176.7 4.4% 169.5 132.6 3.5% 123.5 4 B 22.8 0.6% 22.0 0.6 0.0% 0.6 5 Caa and lower 12.5 0.3% 11.1 9.7 0.3% 9.7 6 In or near default 0.6 0.0% 0.5 1.4 0.0% 1.4 ------------- --- ----------- ------------- --- ----------- Subtotal 3,780.8 100.0% 3,868.8 3,535.8 100.0% 3,543.1 Redeemable preferred stock - 0.0% - - 0.0% - ------------- --- ----------- ------------- --- ----------- Total Public Fixed Maturities $ 3,780.8 100.0% $ 3,868.8 $ 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 Year Ended December 31, December 31, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------------------------------------- PROTECTION BUSINESS SALES: Traditional life $ 1.5 $ 2.5 $ 3.3 $ 5.8 Term 12.3 9.1 41.4 35.4 Universal life 10.8 7.4 31.6 22.2 Variable universal life 18.0 26.1 61.8 74.8 Corporate owned life insurance 19.7 14.9 75.1 125.3 Group universal life 0.5 0.7 1.5 2.5 ---------------- --------------- --------------- ------------- Total $ 62.8 $ 60.7 $ 214.7 $ 266.0 ================ =============== =============== =============
- ------------------------------------------------------------------------------------------------- December 31, December 31, 2001 2000 ---- ---- - ------------------------------------------------------------------------------------------------- Insurance In Force ($ in millions except number of policies) - ------------------------------------------------------------------------------------------------- Traditional Life (1): Number of policies (in thousands) 857.3 879.5 GAAP life reserves $ 7,374.8 $ 7,283.7 Face amounts $ 73,678.2 $ 67,015.7 Universal Life: Number of policies (in thousands) 74.7 76.4 GAAP life reserves $ 711.2 $ 681.2 Face amounts $ 10,843.6 $ 10,951.6 Variable Universal Life: Number of policies (in thousands) 65.9 55.0 GAAP life reserves $ 772.0 $ 657.3 Face amounts $ 18,231.2 $ 14,798.7 Group Universal Life: Number of policies (in thousands) 43.9 47.3 GAAP life reserves $ 66.7 $ 64.1 Face amounts $ 1,571.4 $ 1,683.0 Total: Number of policies (in thousands) 1,041.8 1,058.2 GAAP life reserves $ 8,924.7 $ 8,686.3 Face amounts $ 104,324.4 $ 94,449.0 - -------------------------------------------------------------------------------------------------
(1) Consists of whole life and term policies 14 Exhibit 7 (Unaudited) PROTECTION PRODUCTS SEGMENT STATUTORY DIRECT PREMIUMS BY PRODUCT
- ----------------------------------------------------------------------------------------------------------- Three-Months Ended Year Ended December 31, December 31, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------- LIFE INSURANCE: Traditional Life (1): First year & single $ 54.8 $ 54.5 $ 187.3 $ 180.6 Renewal 174.3 177.1 525.8 547.1 --------- --------- --------- --------- Total $ 229.1 $ 231.6 $ 713.1 $ 727.7 ========= ========= ========= ========= Universal Life: First year & single $ 9.3 $ 4.7 $ 29.6 $ 17.8 Renewal 25.2 25.7 96.9 97.1 --------- --------- --------- --------- Total $ 34.5 $ 30.4 $ 126.5 $ 114.9 ========= ========= ========= ========= Variable Universal Life: First year & single $ 18.5 $ 23.0 $ 70.7 $ 81.0 Renewal 27.5 20.2 96.4 72.7 --------- --------- --------- --------- Total $ 46.0 $ 43.2 $ 167.1 $ 153.7 ========= ========= ========= ========= Corporate Sponsored Variable Universal Life: First year & single $ 9.7 $ 26.9 $ 59.5 $ 126.5 Renewal 6.2 20.8 48.2 27.6 --------- --------- --------- --------- Total $ 15.9 $ 47.7 $ 107.7 $ 154.1 ========= ========= ========= ========= Group Universal Life: First year & single $ 0.4 $ 0.6 $ 1.9 $ 2.3 Renewal 2.6 2.8 10.5 11.5 --------- --------- --------- --------- Total $ 3.0 $ 3.4 $ 12.4 $ 13.8 ========= ========= ========= ========= Total life insurance $ 328.5 $ 356.3 $ 1,126.8 $ 1,164.2 ========= ========= ========= ========= - -----------------------------------------------------------------------------------------------------------
(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 Year Ended December 31, December 31, 2001 (1) 2000 2001 (1) 2000 -------- ---- -------- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 1.9 $ 0.9 $ 5.3 $ 1.3 Universal life and investment-type product policy fees 12.7 16.2 54.7 70.0 Net investment income 13.6 17.1 70.5 117.4 Other income 30.7 27.7 107.4 120.2 ------------- -------------- -------------- ------------- Total revenues 58.9 61.9 237.9 308.9 ------------- -------------- -------------- ------------- BENEFITS AND EXPENSES: Benefits to policyholders 15.0 4.0 34.1 21.2 Interest credited to policyholder account balances 10.3 10.8 41.3 47.0 Amortization of deferred policy acquisition costs 8.6 6.9 26.1 28.3 Dividends to policyholders 0.4 0.3 1.6 1.5 Other operating costs and expenses 40.3 32.9 127.2 120.0 ------------- -------------- -------------- ------------- Total benefits and expenses 74.6 54.9 230.3 218.0 ------------- -------------- -------------- ------------- Pre-tax operating (loss)/income (2) (15.7) 7.0 7.6 90.9 Net realized (losses)/gains on investments (4.2) 1.2 (1.9) 7.5 ------------- -------------- -------------- ------------- Pre-tax (loss)/income $ (19.9) $ 8.2 $ 5.7 $ 98.4 ============= ============== ============== ============= - ------------------------------------------------------------------------------------------------------------------------------------
(1) During the 4th quarter of 2001 the company recorded charges aggregating $146.1 million. This consisted of $56.8 million of reorganization charges taken in connection with the company's previously announced reorganization and $89.3 million of other charges unrelated to the company's reorganization. None of the reorganization charges have been allocated to the segments, whereas all of the aforementioned other charges have. Refer to Exhibit 2 for details. (2) Adjusted to exclude venture capital (loss) income and Other Charges (see Exhibit 2) allocated to the segment, operating (loss) income for the three-months and year ended December 31, 2001 were as follows:
Three-Months Three-Months Year Year Ended Ended Ended Ended December 31, December 31, December 31, December 31, ($ millions) 2001 2000 2001 2000 ---------------- ----------------- --------------- --------------- Operating (Loss)/Income $ (15.7) 7.0 $ 7.6 90.9 Venture Capital (losses)/income - 3.7 1.9 (28.7) Reorganization Charges (see Exhibit 2) - - - - Other Operating charges (see Exhibit 2) 20.0 - 20.0 - ---------------- ----------------- --------------- --------------- Operating (Loss)/Income adjusted to exclude Venture Capital results and Reorganization and Other Charges $ 4.3 $ 10.7 $ 29.5 $ 62.2 ================ ================= =============== ===============
17 Exhibit 10 (Unaudited) ACCUMULATION PRODUCTS SEGMENT ASSETS UNDER MANAGEMENT(1)
- -------------------------------------------------------------------------------------------------------------------- December 31, December 31, 2001 2000 ---- ---- ($ billions) - -------------------------------------------------------------------------------------------------------------------- ACCUMULATION SEGMENT: Assets under management Individual variable annuities $ 3.9 $ 4.4 Individual fixed annuities 0.7 0.7 Proprietary retail mutual funds 4.4 4.8 ------------------- ------------------- $ 9.0 $ 9.9 =================== ===================
Three-Months Ended Year Ended December 31, December 31, 2001 2000 2001 2000 ---- ---- ---- ---- ($ billions) ($ billions) RECONCILIATION IN ACCOUNT VALUE: VARIABLE ANNUITY(1): Beginning account value $ 3.5 $ 4.6 $ 4.4 $ 4.9 Sales 0.1 0.1 0.4 0.4 Market appreciation 0.3 (0.2) (0.4) (0.2) Mortality and expense (0.0) (0.0) (0.0) (0.1) Surrenders and withdrawals (0.1) (0.1) (0.4) (0.7) ----------------------------------- ----------------------------------------- $ 3.9 $ 4.4 $ 3.9 $ 4.4 =================================== ========================================= ENTERPRISE GROUP OF FUNDS: Beginning account value $ 4.0 $ 5.0 $ 4.8 $ 4.8 Sales 0.3 0.4 1.3 2.1 Dividends reinvested 0.0 0.2 0.0 0.4 Market appreciation 0.4 (0.5) (0.6) (1.0) Redemptions (0.3) (0.3) (1.2) (1.3) ----------------------------------- ----------------------------------------- Ending account value $ 4.4 $ 4.8 $ 4.4 $ 4.8 =================================== =========================================
- -------------------------------------------------------------------------------- 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, $37 million in the third quarter, and $28 million for the fourth quarter. 18 Exhibit 11 RETAIL BROKERAGE AND INVESTMENT BANKING - -------------------------------------------------------------------------------- The Retail Brokerage and Investment Banking segment is comprised of results of the Company's subsidiaries, Advest Group Inc ("AGI"), Matrix Capital Markets Group ("Matrix") and MONY Securities Corp. ("MSC"). Advest Group Inc, through its subsidiaries, provides diversified financial services including securities brokerage, trading, investment banking, trust and asset management. Matrix is a middle market investment bank specializing in merger and acquisition services for a middle market client base. MSC is a broker dealer which transacts customer trades primarily in securities and mutual funds. In addition to selling the Company's proprietary investment products, MSC provides customers of the Company's protection and accumulation products access to other non-proprietary investment products (including stocks, bonds, limited partnership interests, tax-exempt unit investment trusts and other investment securities). - -------------------------------------------------------------------------------- 19 Exhibit 12 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DATA
- ------------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Year Ended December 31, December 31, 2001 (1) (2) 2000 2001 (1) (2) 2000 ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Net investment income $ 2.8 $ 0.1 $ 8.0 $ 0.3 Retail Brokerage and Investment Banking 90.5 13.0 343.5 59.7 -------------- --------------- ------------- ------------ Total revenues 93.3 13.1 351.5 60.0 -------------- --------------- ------------- ------------ BENEFITS AND EXPENSES: Other operating costs and expenses 100.0 14.4 371.3 63.3 -------------- --------------- ------------- ------------ Total benefits and expenses 100.0 14.4 371.3 63.3 -------------- --------------- ------------- ------------ Pre-tax operating (loss)/income (3) (6.7) (1.3) (19.8) (3.3) Net realized (losses)/gains on investments - - (0.2) 0.2 Pre-tax (loss)/income $ (6.7) $ (1.3) $ (20.0) $ (3.1) ============== =============== ============= ============ - ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes Advest results for the 11 month period ended December 31, 2001 and Matrix for the 12 month period ended December 31, 2001. Advest was acquired by the MONY Group on January 31, 2001. Matrix was acquired on January 1, 2001. (2) During the 4th quarter of 2001 the company recorded charges aggregating $146.1 million. This consisted of $56.8 million of reorganization charges taken in connection with the company's previously announced reorganization and $89.3 million of other charges unrelated to the company's reorganization. None of the reorganization charges have been allocated to the segments, whereas all of the aforementioned other charges have. Refer to Exhibit 2 for details. (3) Adjusted to exclude venture capital (loss) income and Other Charges (see Exhibit 2) allocated to the segment, operating (loss) income for the three-months and year ended December 31, 2001 were as follows:
Three-Months Three-Months Year Ended Year Ended Ended Ended Ended Ended December 31, December 31, December 31, December 31, ($ millions) 2001 2000 2001 2000 ------------------ ---------------- -------------- ------------- Operating (Loss)/Income $ (6.7) (1.3) $ (19.8) (3.3) Venture Capital losses/(income) - - - - Reorganization Charges (see Exhibit 2) - - - - Other Operating Charges (see Exhibit 2) 1.7 - 1.7 - ------------------ ---------------- -------------- ------------- Operating (Loss)/Income adjusted to exclude Venture Capital results and Reorganization and (5.0)nd Other Charges $ 5.0 $ (1.3) $ (18.1) $ (3.3) ================== ================ ============== =============
20 Exhibit 13 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DETAIL
Three-Months Ended Year Ended December 31, December 31, -------------------------------------- --------------------------------------- 2001 2000 2001 2000 ----------------- ----------------- ------------------- ------------------ ($ millions) ($ millions) REVENUES: Commissions $ 37.6 $ 13.0 $ 140.7 $ 59.7 Interest 10.3 - 56.8 - Principal transactions 23.2 - 78.4 - Asset management and administration (17.7) - 17.5 - Investment banking 38.1 - 50.3 - Other 1.7 - 7.5 0.4 --------------- ----------------- ---------------- ------------- Total revenues 93.2 13.0 351.2 60.1 EXPENSES: Compensation 51.8 1.5 188.4 5.1 Interest 5.8 - 37.9 - Goodwill and other intangible amortization 3.6 0.1 12.8 0.5 Other 38.7 12.7 132.1 57.6 --------------- ----------------- ---------------- ------------- Total expenses 99.9 14.3 371.2 63.2 --------------- ----------------- ---------------- ------------- Pre-tax income/(loss) $ (6.7) $ (1.3) $ (20.0) $ (3.1) =============== ================= ================ =============
- ------------------------------------------------------------------------------------------------------------------------------------ ADVEST - NET INTEREST ADVEST - NET INTEREST Three-Months Ended Eleven-Months Ended December 31, 2001 December 31, 2000 December 31, 2001 December 31, 2000 -------------------- ---------------------- --------------------- -------------------- ($ millions) ($ millions) Net Interest Income - Interest Income: Brokerage customers $ 4.7 45.6% $ 13.1 47.1% $ 25.6 45.1% $ 46.8 49.2% Stock borrowed 2.2 21.4% 12.0 43.2% 21.2 37.3% 41.5 43.6% Investments 0.1 1.0% 0.3 1.1% 0.6 1.1% 1.2 1.3% Security inventory 2.7 26.2% 2.1 7.6% 7.5 13.2% 4.6 4.8% Other 0.6 5.8% 0.3 1.1% 1.9 3.3% 1.1 1.2% -------------------- -------------------- --------------------- -------------------- $ 10.3 100.0% $ 27.8 100.0% $ 56.8 100.0% $ 95.2 100.0% -------------------- -------------------- --------------------- -------------------- Interest Expense: Stock loaned 2.6 44.8% 13.6 65.5% $ 22.0 58.0% $ 44.6 64.3% Brokerage customers 0.4 6.9% 2.6 12.5% 3.3 8.7% 9.8 14.1% Borrowings 2.5 43.1% 4.5 21.7% 12.1 31.9% 14.6 21.0% Other 0.3 5.2% 0.1 0.4% 0.5 1.3% 0.4 0.6% -------------------- -------------------- --------------------- -------------------- 5.8 100.0% 20.8 100.0% 37.9 100.0% 69.4 100.0% -------------------- -------------------- --------------------- -------------------- Net interest income $ 4.5 43.7% $ 7.0 25.3% $ 18.9 33.3% $ 25.8 27.1% ==================== ==================== ===================== ==================== - ------------------------------------------------------------------------------------------------------------------------------------
ADVEST STATISTICAL DATA
As of December 31, 2001 -------------------------------------- Client Assets ( in millions) $ 26,404.0 Number of Client Accounts (in thousands) 245 Assets managed under fee-based programs (AUM) ( in millions) $ 6,842.0
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 the Company's benefit plans, the results of the holding company and certain non-recurring items including the reorganization charges recorded in the 4th quarter of 2001. - -------------------------------------------------------------------------------- 22 Exhibit 15 (Unaudited) OTHER/RECONCILING PRODUCTS SEGMENT INCOME STATEMENT DATA
- ------------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended Year Ended December 31, December 31, 2001 (1) 2000 2001 (1) 2000 ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 7.9 $ 7.1 $ 14.5 $ 13.5 Universal life and investment-type product policy fees 0.8 0.1 0.9 1.0 Net investment income 1.5 12.0 48.0 85.5 Other income 7.2 5.7 23.6 22.8 -------------- -------------- ------------- -------------- Total revenues 17.4 24.9 87.0 122.8 -------------- -------------- ------------- -------------- BENEFITS AND EXPENSES: Benefits to policyholders 7.7 11.9 26.1 30.0 Interest credited to policyholder account balances 2.0 2.0 8.6 9.1 Amortization of deferred policy acquisition costs 17.0 - 17.0 - Dividends to policyholders 0.4 0.5 1.1 1.3 Other operating costs and expenses 62.0 21.8 132.4 67.7 -------------- -------------- ------------- -------------- Total benefits and expenses 89.1 36.2 185.2 108.1 -------------- -------------- ------------- -------------- Pre-tax operating (loss)/income (2) (71.7) (11.3) (98.2) 14.7 Net realized (losses)/gains on investments (2.5) 0.6 (4.0) 8.0 -------------- -------------- ------------- -------------- Pre-tax (loss)/income $ (74.2) $ (10.7) $ (102.2) $ 22.7 ============== ============== ============= ==============
- -------------------------------------------------------------------------------- (1) All of the Reorganization charges recorded during the 4th quarter of 2001 constitute reconciling items. Refer to Exhibit 2 for details. (2) Adjusted to exclude venture capital (loss) income and Other Charges (see Exhibit 2) allocated to the segment, operating (loss) income for the three-months and year ended December 31, 2001 were as follows:
Three-Months Three-Months Year Ended Year Ended Ended Ended Ended Ended December 31, December 31, December 31, December 31, ($ millions) 2001 2000 2001 2000 -------------- --------------- --------------- -------------- Operating (Loss)/Income $ (71.7) (11.3) $ (98.2) $ 214.7 Venture Capital losses/(income) - 3.4 1.8 (26.7) Reorganization Charges (see Exhibit 2) 56.8 - 56.8 - Other Operating Charges (see Exhibit 2) 4.3 - 4.3 - -------------- --------------- --------------- -------------- Operating (Loss)/Income adjusted to exclude Venture Capital results and Reorganization and Other Charges $ (10.6) $ (7.9) $ (35.3) $ (12.0) ============== =============== =============== ==============
23 INVESTMENTS ALL INVESTMENT DATA PRESENTED IN THE FOLLOWING SECTION INCLUDES INVESTED ASSETS IN THE CLOSED BLOCK 24 Exhibit 17 (Unaudited) CONSOLIDATED GAAP INVESTED ASSETS
- ------------------------------------------------------------------------------------------------------------- As of As of December 31, 2001 December 31, 2000 Carrying % of Carrying % of Value Total Value Total ----- ----- ----- ----- INVESTED ASSETS ($ Millions) - ------------------------------------------------------------------------------------------------------------- Fixed Maturities, Available for Sale $ 6,976.0 62.8% $ 6,693.0 59.6% Fixed Maturities, Held to Maturity 0.1 0.0% - 0.0% Equity Securities, Available for Sale 299.2 2.7% 328.6 2.9% Mortgage Loans on Real Estate 1,809.7 16.3% 1,754.7 15.6% Policy Loans 1,229.0 11.1% 1,264.6 11.3% Real Estate to be Disposed Of 172.3 1.6% 171.3 1.6% Real Estate Held for Investment 58.5 0.5% 40.7 0.4% Other Invested Assets 116.7 1.0% 100.0 0.9% Cash and Cash Equivalents 441.0 4.0% 869.6 7.7% ---------- ---------- ------------- -------- Invested Assets, excluding Trading Securities $ 11,102.5 100.0% $ 11,222.5 100.0% ---------- ========== ------------- ======== Trading Securities 724.0 - Trading Securities, Pledged as Collateral 0.0 - ---------- ------------- Total Trading Securities 724.0 - ---------- ------------- Total Cash and Invested Assets $ 11,826.5 $ 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 Year Ended December 31, 2001 December 31, 2000 December 31, 2001 Yield (2) Amount Yield (2) Amount Yield (1) Amount --------- ------ --------- ------ --------- ------ ($ millions) ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES (4) Investment Income 7.2% $ 120.5 7.5% $ 125.5 7.3% $ 493.0 Realized Gains (losses) -0.9% (15.0) -0.6% $ (10.8) 0.0% (2.6) Total 6.3% $ 105.5 6.9% $ 114.7 7.2% $ 490.4 ------------------------------ --------------------------------- --------------------------- Ending Assets $ 6,833.0 $ 6,702.7 $ 6,833.0 ------------------------------ --------------------------------- --------------------------- EQUITY SECURITIES Investment Income -26.7% $ (20.9) -20.2% $ (21.9) -10.8% $ (33.9) Realized Gains (losses) -0.9% (0.7) 7.1% $ 7.7 -2.5% (7.8) Total -27.6% $ (21.6) -13.1% $ (14.1) -13.3% $ (41.7) ------------------------------ --------------------------------- --------------------------- Ending Assets $ 299.2 $ 328.6 $ 299.2 ------------------------------ --------------------------------- --------------------------- MORTGAGE LOANS Investment Income 7.8% $ 34.9 8.3% $ 35.5 7.8% $ 139.8 Realized Gains (losses) 1.0% 4.6 0.0% $ 0.1 0.5% 9.3 Total 8.9% $ 39.5 8.3% $ 35.6 8.4% $ 149.2 ------------------------------ --------------------------------- --------------------------- Ending Assets $ 1,809.7 $ 1,754.7 $ 1,809.7 ------------------------------ --------------------------------- --------------------------- REAL ESTATE (3) Investment Income -5.6% $ (3.1) 5.0% $ 3.3 4.3% $ 9.5 Realized Gains (losses) -3.7% (2.1) 12.5% $ 8.1 -2.4% (5.2) Total -9.3% $ (5.2) 17.5% $ 11.4 1.9% $ 4.2 ------------------------------ --------------------------------- --------------------------- Ending Assets $ 230.8 $ 212.0 $ 230.8 ------------------------------ --------------------------------- --------------------------- POLICY LOANS Investment Income 6.9% $ 21.5 7.1% $ 22.3 6.9% $ 86.5 Realized Gains (losses) 0.0% - 0.0% $ - 0.0% - Total 6.9% $ 21.5 7.1% $ 22.3 6.9% $ 86.5 ------------------------------ --------------------------------- --------------------------- Ending Assets $ 1,229.0 $ 1,264.6 $ 1,229.0 ------------------------------ --------------------------------- --------------------------- CASH AND CASH EQUIVALENTS Investment Income 2.2% $ 3.0 6.6% $ 9.4 4.4% $ 29.3 Realized Gains (losses) -0.6% (0.8) 0.0% $ (0.0) -0.1% (0.8) Total 1.6% $ 2.1 6.6% $ 9.4 4.3% $ 28.5 ------------------------------ --------------------------------- --------------------------- Ending Assets $ 441.0 $ 869.6 $ 441.0 ------------------------------ --------------------------------- --------------------------- OTHER INVESTED ASSETS Investment Income 10.4% $ 3.5 3.7% $ 0.9 7.9% $ 8.6 Realized Gains (losses) -12.5% (4.2) -0.9% $ (0.2) -4.7% (5.1) Total -2.2% $ (0.7) 2.8% $ 0.7 3.2% $ 3.5 ------------------------------ --------------------------------- --------------------------- Ending Assets $ 116.7 $ 100.0 $ 116.7 ------------------------------ --------------------------------- --------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 5.8% $ 159.3 6.3% $ 175.0 6.6% $ 732.8 Realized Gains (losses) -0.7% (18.2) 0.2% 4.9 -0.1% (12.3) Total 5.1% $ 141.1 6.5% $ 180.0 6.5% $ 720.6 ------------------------------ --------------------------------- --------------------------- Ending Assets (4) $ 10,959.4 $ 11,232.2 $ 10,959.4 ------------------------------ --------------------------------- --------------------------- Other Fee Income 0.1% $ 1.7 0.0% $ 1.0 0.0% $ 5.3 Investment expense -0.5% $ (15.0) -0.4% $ (10.9) -0.4% $ (46.1) TOTAL AFTER INVESTMENT EXPENSES Investment Income 5.3% $ 145.9 5.9% $ 165.2 6.2% $ 692.1 Realized Gains (losses) -0.7% (18.2) 0.2% 4.9 -0.1% (12.3) Total 4.7% $ 127.7 6.1% $ 170.1 6.1% $ 679.8 ------------------------------ --------------------------------- --------------------------- Ending Assets (4) 10,959.4 11,232.2 10,959.4 ------------------------------ --------------------------------- --------------------------- Net unrealized gains (losses) on fixed maturities 143.1 (9.8) 143.1 ------------------------------ --------------------------------- --------------------------- Total invested assets $ 11,102.5 $ 11,222.5 $ 11,102.5 ============================== ================================= =========================== - ------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------- Year Ended December 31, 2000 Yield (1) Amount --------- ------ ($ millions) - --------------------------------------------------------------- FIXED MATURITIES (4) Investment Income 7.4% $ 495.4 Realized Gains (losses) -0.4% (30.1) Total 6.9% $ 465.3 ------------------------------- Ending Assets $ 6,702.7 ------------------------------- EQUITY SECURITIES Investment Income 56.4% $ 239.4 Realized Gains (losses) 5.1% 21.6 Total 61.5% $ 261.0 ------------------------------- Ending Assets $ 328.6 ------------------------------- MORTGAGE LOANS Investment Income 8.3% $ 144.4 Realized Gains (losses) 1.1% 19.8 Total 9.5% $ 164.1 ------------------------------- Ending Assets $ 1,754.7 ------------------------------- REAL ESTATE (3) Investment Income 7.0% $ 20.4 Realized Gains (losses) 9.2% 26.7 Total 16.2% $ 47.1 ------------------------------- Ending Assets $ 212.0 ------------------------------- POLICY LOANS Investment Income 6.8% $ 86.6 Realized Gains (losses) 0.0% - Total 6.8% $ 86.6 ------------------------------- Ending Assets $ 1,264.6 ------------------------------- CASH AND CASH EQUIVALENTS Investment Income 6.6% $ 28.2 Realized Gains (losses) 0.0% (0.0) Total 6.6% $ 28.2 ------------------------------- Ending Assets $ 869.6 ------------------------------- OTHER INVESTED ASSETS Investment Income 5.9% $ 4.1 Realized Gains (losses) -0.7% (0.5) Total 5.3% $ 3.6 ------------------------------- Ending Assets $ 100.0 ------------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 9.1% $ 1,018.4 Realized Gains (losses) 0.3% 37.5 Total 9.5% $ 1,055.9 ------------------------------- Ending Assets (4) $ 11,232.2 ------------------------------- Other Fee Income 0.0% $ 4.0 Investment expense -0.4% $ (44.3) TOTAL AFTER INVESTMENT EXPENSES Investment Income 8.8% $ 978.1 Realized Gains (losses) 0.3% 37.5 Total 9.1% $ 1,015.6 ------------------------------- Ending Assets (4) 11,232.2 ------------------------------- Net unrealized gains (losses) on fixed maturities (9.8) ------------------------------- Total invested assets $ 11,222.5 =============================== - ---------------------------------------------------------------
(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 $724.0 million and results are excluded from the yield calculation. The Exhibit above include invested assets in the Closed Block. 26 Exhibit 19A (Unaudited) FIXED MATURITIES BY CREDIT QUALITY PUBLIC FIXED MATURITIES BY CREDIT QUALITY
- --------------------------------------------------------------------------------------------- Year Ended December 31, 2001 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - --------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 2,730.4 73.8% $ 2,806.4 2 Baa 769.5 20.6% 784.9 3 Ba 161.9 4.1% 155.3 4 B 37.9 1.1% 40.8 5 Caa and lower 15.5 0.4% 15.0 6 In or near default 1.8 0.0% 1.9 --------- ----- --------- Subtotal 3,717.0 100.0% 3,804.3 Redeemable preferred stock 1.0 0.0% 0.9 --------- ----- --------- Total Public Fixed Maturities $ 3,718.0 100.0% $ 3,805.2 ========= ===== ========= PRIVATE FIXED MATURITIES BY CREDIT QUALITY - --------------------------------------------------------------------------------------------- Year Ended December 31, 2001 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - --------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 1,077.5 35.1% $ 1,113.7 2 Baa 1,620.7 51.9% 1,645.8 3 Ba 270.6 8.5% 269.3 4 B 63.2 1.9% 62.0 5 Caa and lower 20.2 0.6% 18.6 6 In or near default 4.5 0.2% 5.7 --------- ----- --------- Subtotal 3,056.7 98.2% 3,115.1 Redeemable preferred stock 54.6 1.8% 55.8 --------- ----- --------- Total Private Fixed Maturities $ 3,111.3 100.0% $ 3,170.9 ========= ===== ========= TOTAL FIXED MATURITIES BY CREDIT QUALITY - --------------------------------------------------------------------------------------------- Year Ended December 31, 2001 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - --------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 3,807.9 56.2% $ 3,920.1 2 Baa 2,390.2 34.8% 2,430.7 3 Ba 432.5 6.1% 424.6 4 B 101.1 1.5% 102.8 5 Caa and lower 35.7 0.5% 33.6 6 In or near default 6.3 0.1% 7.6 --------- ----- --------- Subtotal 6,773.7 99.2% 6,919.4 Redeemable preferred stock 55.6 0.8% 56.7 --------- ----- --------- Total Fixed Maturities $ 6,829.3 100.0% $ 6,976.1 ========= ===== ========= - --------------------------------------------------------------------------------------------- PUBLIC FIXED MATURITIES BY CREDIT QUALITY - --------------------------------------------------------------------------------------------- Year Ended December 31, 2000 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - --------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 2,664.8 74.4% $ 2,671.6 2 Baa 775.2 21.2% 759.9 3 Ba 133.2 3.5% 125.5 4 B 30.2 0.7% 25.1 5 Caa and lower 10.8 0.2% 7.6 6 In or near default 1.8 0.0% 1.6 --------- ----- --------- Subtotal 3,616.0 100.0% 3,591.3 Redeemable preferred stock 1.0 0.0% 0.8 --------- ----- --------- Total Public Fixed Maturities $ 3,617.0 100.0% $ 3,592.1 ========= ===== ========= PRIVATE FIXED MATURITIES BY CREDIT QUALITY - --------------------------------------------------------------------------------------------- Year Ended December 31, 2000 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - --------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 1,074.9 35.0% $ 1,086.3 2 Baa 1,614.6 52.5% 1,628.8 3 Ba 309.7 9.8% 302.2 4 B 50.0 1.6% 48.5 5 Caa and lower 9.9 0.3% 9.9 6 In or near default 0.2 0.0% 0.2 --------- ----- --------- Subtotal 3,059.3 99.2% 3,075.9 Redeemable preferred stock 26.4 0.8% 25.0 --------- ----- --------- Total Private Fixed Maturities $ 3,085.7 100.0% $ 3,100.9 ========= ===== ========= TOTAL FIXED MATURITIES BY CREDIT QUALITY - --------------------------------------------------------------------------------------------- Year Ended December 31, 2000 NAIC Rating Agency Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ($ millions) - --------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 3,739.7 56.1% $ 3,757.9 2 Baa 2,389.8 35.7% 2,388.7 3 Ba 442.9 6.4% 427.7 4 B 80.2 1.1% 73.6 5 Caa and lower 20.7 0.3% 17.5 6 In or near default 2.0 0.0% 1.8 --------- ----- --------- Subtotal 6,675.3 99.6% 6,667.2 Redeemable preferred stock 27.4 0.4% 25.8 --------- ----- --------- Total Fixed Maturities $ 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
- ------------------------------------------------------------------------------------------------------------------------------------ December 31, 2001 ----------------- ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ Industry Public % Private % Total % - -------- ------ - ------- - ----- - Consumer Goods & Services $ 463.6 12.2% $ 761.5 24.0% $ 1,225.1 17.7% Non-Government- Asset/Mortgage Backed 523.4 13.8% 269.7 8.5% 793.1 11.4% Public Utilities 436.4 11.4% 303.4 9.6% 739.8 10.6% Other Manufacturing 168.0 4.4% 504.8 15.9% 672.8 9.6% Financial Services 222.5 5.8% 372.0 11.7% 594.5 8.5% Banks 467.8 12.3% 42.4 1.3% 510.2 7.3% Transportation/Aerospace 303.4 8.0% 198.5 6.3% 501.9 7.2% Energy 199.9 5.3% 229.0 7.2% 428.9 6.1% Government & Agency 406.5 10.7% 0.1 0.0% 406.6 5.8% Nat/Res/Manuf(non-energy) 95.1 2.5% 282.7 8.9% 377.8 5.4% Mortgage Backed-Government & Agency 293.9 7.7% 1.0 0.0% 294.9 4.2% Media/Adver/Printing 26.7 0.7% 106.2 3.3% 132.9 1.9% Telecommunications 100.4 2.6% 20.3 0.7% 120.7 1.7% Other 94.3 2.5% 16.6 0.6% 110.9 1.6% Cable Television 1.1 0.0% 33.3 1.1% 34.4 0.5% Bank Holding Companies 2.2 0.1% 29.4 0.9% 31.6 0.5% ---------------------------------------------------------------------- -------------- Total $ 3,805.2 100.0% $ 3,170.90 100.0% $ 6,976.1 100.0% ====================================================================== ==============
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:
- ------------------------------------------------------------------------------------------------------------------------------------ December 31, 2001 December 31, 2000 ----------------- ----------------- ($ in millions) ($ in millions) - ------------------------------------------------------------------------------------------------------------------------------------ Equity Method Public common stock $ 9.0 $ 47.8 Private common stock 83.6 97.2 ------------------------------- ------------------------------- Sub-total $ 92.6 $ 145.0 Cost Method Public common stock $ 22.0 $ 26.8 Private common stock 115.1 106.2 ------------------------------- ------------------------------- Sub-total $ 137.1 $ 133.0 ------------------------------- ------------------------------- Total Venture Capital Partnership Investments $ 229.7 $ 278.0 =============================== ===============================
VENTURE CAPITAL PARTNERSHIP INVESTMENTS BY SECTOR:
- ------------------------------------------------------------------------------------------------------------------------------------ December 31, 2001 December 31, 2000 ----------------- ----------------- ($ Millions) % ($ Millions) % - ------------------------------------------------------------------------------------------------------------------------------------ Information Technology $ 107.5 46.8% $ 144.1 51.8% Domestic LBO 50.4 22.0% 50.8 18.3% Life Sciences 20.0 8.7% 21.0 7.6% Telecommunications 8.6 3.7% 15.9 5.7% International LBO 14.0 6.1% 18.2 6.6% Merchant Banking 11.9 5.2% 13.7 4.9% Other 17.3 7.5% 14.3 5.1% ------------ --- ------------ --- Total Venture Capital Partnership Investments by Sector $ 229.7 100.0% $ 278.0 100.0% ============ ===== ============ =====
29 Exhibit 20 (Unaudited) PROBLEM, POTENTIAL PROBLEM AND RESTRUCTURED COMMERCIAL MORTGAGES AT CARRYING VALUE
- -------------------------------------------------------------------------------------------------------- December 31, December 31, 2001 2000 ---- ---- ($ millions) - -------------------------------------------------------------------------------------------------------- Total Commercial Mortgages $ 1,507.7 $ 1,443.3 ----------- ------------ Problem commercial mortgages (1) 16.3 14.8 Potential problem commercial mortgages 64.5 64.7 Restructured commercial mortgages 57.9 75.6 ----------- ------------ Total problem, potential problem and restructured commercial mortgages $ 138.7 $ 155.1 ----------- ------------ Total problem, potential problem and restructured commercial mortgages as % of total commercial mortgages 9.2% 10.7% ---- ----- Valuation allowances/writedowns (2) Problem loans $ 4.6 $ 0.4 Potential problem loans 8.4 14.3 Restructured loans 4.7 7.7 ----------- ------------ Total valuation allowances/writedowns $ 17.7 $ 22.4 ----------- ------------ Total valuation allowances as a percent of problem, potential problem and restructured commercial mortgages at carrying value before valuation allowances and writedowns 11.3% 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 - ---------------------------------------------------------------------- December 31, December 31, 2001 2000 ---- ---- ($ millions) - ---------------------------------------------------------------------- TYPE Real estate $ 53.2 $ 54.2 Joint ventures 133.3 116.3 ----------- ------------- Subtotal 186.5 170.5 Foreclosed 44.3 41.5 ----------- ------------- Total $ 230.8 $ 212.0 =========== =============
- ------------------------------------------------------------------------------------------ Three-Months Ended Year Ended December 31, December 31, 2001 2000 2001 2000 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------ Sales Proceeds $ - $ 97.1 $ 15.8 $ 214.0 Carrying value at date of sale - 88.0 16.1 182.9 =========== ============ ============= ============ Gain (loss) $ - $ 9.1 $ (0.3) $ 31.1 =========== ============ ============= ============ - ------------------------------------------------------------------------------------------
31 Exhibit 21B (Unaudited) MORTGAGES AND REAL ESTATE
- ---------------------------------------------------------------------------------------- December 31, 2001 December 31, 2000 ----------------- ----------------- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------- Geographic Region Southeast $ 449.1 22.0% $ 420.3 21.4% West 361.6 17.7% 341.0 17.3% Northeast 274.1 13.4% 337.9 17.2% Mountain 414.2 20.3% 430.0 21.9% Midwest 336.2 16.5% 322.8 16.4% Southwest 205.3 10.1% 114.7 5.8% ------------ ----- ------------ -------- $ 2,040.5 100% $ 1,966.7 100% ============ ===== ============ ======== December 31, 2001 December 31, 2000 ----------------- ----------------- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------- Property Type: Office Buildings $ 873.3 42.8% $ 853.4 43.4% Agricultural 304.9 14.9% 311.3 15.8% Hotel 297.8 14.6% 287.6 14.6% Retail 138.8 6.8% 147.4 7.5% Industrial 156.6 7.7% 133.6 6.8% Other 135.1 6.6% 133.0 6.8% Apartment Buildings 134.0 6.6% 100.4 5.1% ------------ ----- ------------ ----- $ 2,040.5 100% $ 1,966.7 100% ============ ===== ============ =====
The Exhibit above includes invested assets in the Closed Block. 32 Exhibit 22 (Unaudited) HISTORICAL QUARTERLY DATA
- ------------------------------------------------------------------------------------------------------------------------------------ 2001 Q4'01 Q3'01 Q2'01 Q1'01 ($ millions, except per share amounts) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 695.3 $ 194.8 $ 162.0 $ 173.4 $ 165.1 Universal life and investment-type product policy fees 207.2 55.1 50.1 52.3 49.7 Net investment income 692.1 146.0 172.9 189.5 183.7 Net realized gains on investments (12.3) (18.3) 0.5 3 2.5 Group pension profits 30.7 3.5 8.0 9.3 9.9 Retail Brokerage and Investment Banking 343.5 90.5 82.1 99.8 71.1 Other income 147.1 53.3 21.8 41.7 30.3 ---------------------------------------------------------------------- Total revenues 2,103.6 524.9 497.4 569.0 512.3 ---------------------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 814.7 218.6 203.9 194.5 197.7 Interest credited to policyholder account balances 110.5 27.3 27.9 27 28.3 Amortization of deferred policy acquisition costs 158.8 60.4 32.9 28.3 37.2 Dividends to policyholders 236.6 66.9 54.5 60.6 54.6 Demutualization Expense - - - - - Other operating costs and expenses 876.4 285.4 190.0 226.8 174.2 ---------------------------------------------------------------------- Total benefits and expenses 2,197.0 658.6 509.2 537.2 492.0 ---------------------------------------------------------------------- Income/(Loss) before income taxes and extraordinary item (93.4) (133.7) (11.8) 31.8 20.3 Income tax expense (32.6) (46.0) (3.1) 9.5 7.0 ---------------------------------------------------------------------- Net income/(loss) (60.8) (87.7) (8.7) 22.3 13.3 ====================================================================== Net Income/(Loss) (60.8) (87.7) (8.7) 22.3 13.3 Realized losses included in the 4th quarter charge 13.1 13.1 - - - Net realized (gains)/losses on investments (after-tax) (1.2) (0.4) 1.4 (0.6) (1.6) ---------------------------------------------------------------------- Operating (loss)/income (48.9) (75.0) (7.3) 21.7 11.7 Operating loss included in the 4th quarter charge 81.9 81.9 - - - Net realized losses from transferred pension business - - - - - Venture capital (income)/loss 9.1 - 10.1 (4.1) 3.1 ---------------------------------------------------------------------- Operating income as adjusted: $ 42.1 $ 6.9 $ 2.8 $ 17.6 $ 14.8 ====================================================================== Number of Shares Used in Per Share Calculations(1): BASIC 48,608,378 47,786,913 48,642,274 49,363,512 48,720,335 DILUTED 48,608,378 47,786,913 48,642,274 50,913,099 50,314,782 Net Income/(Loss) Per Share: BASIC $ (1.25) $ (1.84) $ (0.18) $ 0.45 $ 0.27 DILUTED $ (1.25) $ (1.84) $ (0.18) $ 0.44 $ 0.26 Operating (loss)/income BASIC $ (1.01) $ (1.57) $ (0.15) $ 0.44 $ 0.24 DILUTED $ (1.01) $ (1.57) $ (0.15) $ 0.43 $ 0.23 Operating income as adjusted: BASIC $ 0.87 $ 0.14 $ 0.06 $ 0.36 $ 0.30 DILUTED $ 0.87 $ 0.14 $ 0.06 $ 0.35 $ 0.29
33 Exhibit 23 STATUTORY EXPENSE RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ending As of December 31, December 31, 2001 2000 1999 1998 1997 ------------ ---- ---- ---- ---- ---- 2001 2000 ---- ---- - ------------------------------------------------------------------------------------------------------------------------------------ PREMIUMS AND DEPOSITS (1) (6): MONY Life Insurance Company $ 172.9 $ 270.6 $ 786.3 $ 1,126.8 $ 900.0 $ 919.8 $ 1,003.0 MONY Life Insurance Company of America 232.4 291.1 910.5 1,549.7 1,361.0 774.3 770.6 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total $ 405.3 $ 561.7 $ 1,696.8 $ 2,676.5 $ 2,261.0 $ 1,694.1 $ 1,773.6 ========== ========== ========== ========== ========== ========== ========== GENERAL EXPENSES (2) (4) (5) (7): MONY Life Insurance Company $ 65.6 $ 63.9 $ 240.4 $ 261.1 $ 247.8 $ 308.2 $ 355.9 MONY Life Insurance Company of America 32.7 30.4 129.7 117.9 106.7 86.7 65.1 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total $ 98.3 $ 94.3 $ 370.1 $ 379.0 $ 354.5 $ 394.9 $ 421.0 ========== ========== ========== ========== ========== ========== ========== LESS REAL ESTATE EXPENSES (3): MONY Life Insurance Company $ 2.5 $ 4.9 $ 9.9 $ 22.5 $ 34.9 $ 56.3 $ 86.2 MONY Life Insurance Company of America 0.6 0.6 2.6 2.7 2.8 3.2 5.4 ---------- ---------- ---------- ---------- ---------- ---------- ---------- Total $ 3.1 $ 5.5 $ 12.5 $ 25.2 $ 37.7 $ 59.5 $ 91.6 ========== ========== ========== ========== ========== ========== ========== Expenses (excluding real estate expenses) $ 95.2 $ 88.8 $ 357.6 $ 353.8 $ 316.8 $ 335.4 $ 329.4 ========== ========== ========== ========== ========== ========== ========== Expenses (excluding real estate expenses) to Net Premiums and Deposits 23.5% 15.8% 21.1% 13.2% 14.0% 19.8% 18.6% - ------------------------------------------------------------------------------------------------------------------------------------
(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 $29 million and $116 for three month ended December 31, 2001 and 2000 respectively, $208 million and $998 million for the years ended December 31, 2001 and 2000 respectively. (7) Adjusted to exclude Reorganization and Other Charges of $24.3 million for the three-months and year ended December 31, 2001. 34 -----END PRIVACY-ENHANCED MESSAGE-----