-----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, Vxx+j/1FCzoQ0RnR0mDpLuzVApjDMWGPcEpRqGv3h5Ez4joGVnRh3tw2eiAgYmvw qaFuZtrsVN+51I2qL8giYQ== 0000950109-02-002708.txt : 20020507 0000950109-02-002708.hdr.sgml : 20020507 ACCESSION NUMBER: 0000950109-02-002708 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020507 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020507 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: 02635975 BUSINESS ADDRESS: STREET 1: 1740 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127082000 8-K 1 d8k.txt NEWS RELEASE ================================================================================ 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) - May 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 May 7, 2002, The MONY Group Inc. issued a News Release reporting its financial results for the first quarter of 2002. 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 May 7, 2002. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three-Month Periods Ended March 31, 2002 and 2001." 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: May 7, 2002 Exhibit Index 99.1 News Release of The MONY Group Inc., dated May 7, 2002. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three-Month Periods Ended March 31, 2002 and 2001." EX-99.1 3 dex991.txt NEWS RELEASE Exhibit 99.1 [LOGO] The MONY Group Inc. News Release THE MONY GROUP 1740 Broadway MEDIA CONTACTS: New York, NY 10019 Doug Myers 212 708 2472 212 708 2472 Christopher Breslin 212 708 2435 212 708 2399 Fax INVESTOR CONTACT: Jay Davis 212 708 2917 The MONY Group Inc. Meets First Quarter Expectations Operating Income Is $0.24 Per Share Excluding Venture Capital Gains of $0.07 Per Share NEW YORK (May 7, 2002) -- The MONY Group Inc. (NYSE: MNY) today reported operating income for the quarter ended March 31, 2002 of $11.9 million or $0.24 per share excluding venture capital gains of $3.3 million or $0.07 per share. Operating income was $15.2 million or $0.31 per share. Net income for the first quarter was $14.3 million or $0.29 per share after a $0.9 million or $0.02 per share realized loss from investments. For the first quarter of 2001, the company reported operating income of $14.8 million or $0.29 per share excluding a $3.1 million or $0.06 per share loss from the company's venture capital portfolio. Operating income was $11.7 million or $0.23 per share. Net income during the first quarter of 2001 was $13.3 million or $0.26 per share, after a $1.6 million or $0.03 per share realized gain from investments. "During the quarter, we realized early benefits from our reorganization in the form of higher productivity and improved operating efficiencies," said Michael I. Roth, chairman and CEO, The MONY Group Inc. "Our manufacturing and distribution businesses are improving bottom line results by streamlining their operations, raising performance standards and aggressively pursuing growth opportunities." "Our results reflect this new clarity and focus within our business units," continued Mr. Roth. "Sales of annuities and broker-dealer sales of Enterprise mutual funds both increased while our U.S. Financial Life subsidiary continues to grow. The productivity of our career system has increased through more extensive wholesaling efforts and higher performance requirements." 1 An earnings summary is as follows: Three Months Ended March 31, 2002 2001 ($ in millions except share data and per share amounts) Operating income excluding venture capital $ 11.9 $ 14.8 Venture capital income (losses) 3.3 (3.1) ------- -------- Operating income 15.2 11.7 Realized (losses)/gains from investments (0.9) 1.6 -------- ------- Net income $ 14.3 $ 13.3 Diluted Per Share Amounts: Operating income before venture capital $ 0.24 $ 0.29 Venture capital income (losses) $ 0.07 $ (0.06) ------- ------- Operating income $ 0.31 $ 0.23 Realized (losses)/gains from investments $ (0.02) $ 0.03 -------- ------- Net income $ 0.29 $ 0.26 Share Data: Weighted-average shares outstanding 48,012,310 48,720,335 Plus: incremental shares from assumed Conversion of dilutive securities 1,724,895 1,594,447 ------------- ------------ Weighted-average shares used in diluted per-share calculations 49,737,205 50,314,782 ============= ============ 2 First-quarter highlights include: ... In April, MONY securitized its closed block by successfully completing a $300 million debt offering. This transaction provides MONY with greater financial flexibility as the company continues to invest in its manufacturing and distribution businesses as well as pursue acquisition opportunities. Under the terms of the transaction, MONY has the option to issue up to an additional $150 million in notes until December 31, 2004. ... As of March 31, 2002, book value was $40.60 per share (excluding accumulated comprehensive income). ... Boston Advisors, Inc., an asset management firm and wholly owned subsidiary of The Advest Group, Inc., signed a definitive agreement to acquire substantially all of the assets of Babson-United Investment Advisors, Inc., a registered investment advisory firm. Upon the closing of this acquisition, Boston Advisors will have 20 investment professionals and approximately $3.5 billion in assets under management. 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 and last survivor variable universal) to higher-income individuals, particularly small business owners, family builders and pre-retirees as well as corporations. Total new annualized and single life insurance premiums for the first quarter of 2002 were $48.7 million, approximately level with the prior year, while recurring premiums increased to $30 million from $21.9 million. During the quarter, the company also experienced favorable mortality. 3 During the quarter, higher sales from the company's U.S. Financial Life subsidiary and higher recurring premiums of the company's corporate-owned life insurance (COLI) product were offset by lower single deposits of individual and corporate-owned life insurance. U.S. Financial Life Insurance Co. (USFL) premiums for the first quarter of 2002 increased to $12.1 million from $9.8 million in the first quarter of 2001 with a greater percentage of higher-margin universal life sales. Sales of corporate-owned life insurance (COLI) were $18.2 million during the first quarter of 2002, half of which were recurring premiums. During the first quarter of 2001, COLI premiums were $22.1 million, $3.8 million of which was in recurring premiums. The sale of corporate-owned life insurance fluctuates over the course of the year. New career agency life insurance premiums (first-year and single premiums) were $15.6 million in the first quarter of 2002 compared with $17.1 million in the first quarter of 2001. Following the implementation of the company's previously announced reorganization, a smaller and more focused career system produced relatively the same amount of premiums, reflecting increased productivity. Accumulation Segment - -------------------- The MONY Group distributes variable annuities and mutual funds through its career agency system, member companies and third-party broker-dealers. New accumulation assets raised in the 2002 first quarter were $444 million compared with $437 million in the first quarter of 2001. Accumulation assets under management were $9.1 billion as of March 31, 2002, slightly higher than the level of $9 billion reported on December 31, 2001 and slightly ahead of the $8.9 billion as of March 31, 2001. The increase in assets was primarily due to net inflows during the period, which totaled $76 million. 4 Annuity sales through the career system increased 39 percent to $100 million during the first quarter of 2002 from $72 million in the first quarter of 2001. The increase reflects strong demand for MONY's new variable annuity product introduced in early January. The Enterprise Group of Funds had first-quarter sales of $344 million compared with $365 million in the first quarter of 2001. Enterprise mutual fund sales through third-party broker-dealers increased to $270 million during the quarter from $249 million for the first quarter of 2001. Enterprise funds sold through The MONY Group career system were $74 million during the quarter compared with $116 million for the comparable quarter. Retail Brokerage & Investment Banking Segment - --------------------------------------------- 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 had revenues of $84.4 million during the first quarter of 2002 compared with $85.7 million during the first quarter of 2001, the latter on a proforma basis. In a challenging environment, Advest revenues were $73.3 million and MONY Securities Corporation revenues were $10.8 million, both of which were comparable with the prior year period. In addition, Advest completed the outsourcing of its back-office operations. Business Outlook - ---------------- "This quarter demonstrates that we are clearly moving in the direction we intended," added Mr. Roth. "Our business unit heads are leading and changing their businesses while focusing on meeting the needs of their customers through a range of products and services, regardless of the economic climate." The company's 2002 estimate remains $1.25 per share excluding venture capital income. This estimate assumes a 7 percent annual appreciation in the equity markets. As previously 5 announced, the company also expects an additional $0.70 per share gain from the closing payment in the company's pension business that is not included in the $1.25 per share estimate. 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. There are a number of uncertainties and risks that could cause actual results to differ materially from our expectations, including those described under the heading "Forward Looking Statements" in MONY's annual report on Form 10-K for the fiscal year ended December 31, 2001 and in the company's other 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; and actual death claims experience could differ from our mortality assumptions. 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 $57 billion in assets under management and administration, is a financial services firm that manages a portfolio of member companies. These companies include MONY Life Insurance Company, The Advest Group, Inc., Enterprise Capital Management, Matrix Capital Markets Group, Inc., Lebenthal & Co., and U.S. Financial Life Insurance Company. These companies manufacture and distribute protection, asset accumulation and retail brokerage products and services to individuals, corporations and institutions through advisory and wholesale distribution channels. Additional company information is available at www.mony.com. Note: The MONY Group Inc. will host a conference call to discuss 1Q 2002 financial results at 9:00 am on Tuesday, May 7, 2002. The call can be heard via the Investor Relations link at www.mony.com. 6 SUPPLEMENTAL FINANCIAL INFORMATION To assist interested parties in analyzing the Company's consolidated financial results attached is the following supplemental information: Exhibit I presents certain summary consolidated income statement data of The MONY Group for the three-month periods ended March 31, 2002 and 2001. Exhibit II presents certain summary consolidated balance sheet data as of March 31, 2002. Exhibit III presents information regarding new business generated by the Company for the three-month periods ended March 31, 2002 and 2001. 7 Exhibit I THE MONY GROUP INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT
($ in millions, except share data and per share amounts) Three Months Ended March 31, 2002 2001 ---- ---- Revenues: Premiums $ 164.4 $ 165.1 Universal life and investment-type product policy fees 49.0 49.7 Net investment income 189.7 183.7 Net realized (losses) gains on investments (2.4) 2.5 Group Pension Profits 7.7 9.9 Retail brokerage and investment banking 90.8 *71.1 Other income 38.2 30.3 ------------ ------------ 537.4 512.3 Benefits and Expenses: Benefits to policyholders 190.7 197.7 Interest credited to policyholders' account balances 27.9 28.3 Amortization of deferred policy acquisition costs 32.8 37.2 Dividends to policyholders 61.5 54.6 Other operating costs and expenses 203.2 *174.2 ------------ ------------ 516.1 492.0 Income before income taxes 21.1 20.3 Income tax expense 6.8 7.0 ------------ ------------ Net income 14.3 13.3 Operating Income: Net income $ 14.3 $ 13.3 Net realized losses/(gains) from investments (after tax) 0.9 (1.6) ------------ ------------- Operating income 15.2 11.7 Venture capital (income) loss (3.3) 3.1 ------------ ------------- Operating income excluding venture capital $ 11.9 $ 14.8 ============ ============= Diluted Per Share Amounts: Net Income $ 0.29 $ 0.26 Operating Income $ 0.31 $ 0.23 Operating Income (excluding venture capital) $ 0.24 $ 0.29 Share Data: Weighted-average Shares Outstanding 48,012,310 48,720,335 Plus: Incremental Shares from Assumed Conversion of Diluted Securities 1,724,895 1,594,447 ------------ ------------- Weighted-average Shares in Diluted Per Share Calculations 49,737,205 50,314,782 ============ =============
* Includes Advest results for February and March 2001 only. The MONY Group closed its acquisition of Advest on January 31, 2001. 8 Exhibit II SUMMARY CONSOLIDATED BALANCE SHEET DATA ($ in millions, except per share amounts) As of March 31, 2002 ---- Assets: Invested assets (including cash and cash equivalents) $ 11,825.0 Assets transferred in the Group Pension Transaction 4,573.9 Separate account assets 5,181.1 Other assets 2,910.3 ------------- Total assets $ 24,490.3 ============= Liabilities: Policyholders' liabilities $ 10,543.2 Liabilities transferred in the Group Pension Transaction 4,521.0 Separate account liabilities 5,178.2 Short-term debt 7.0 Long-term debt 579.0 Other liabilities 1,611.1 ------------- Total liabilities 22,439.5 Shareholders' equity: Equity 2,029.0 Accumulated comprehensive income 21.8 ------------- Total shareholders' equity 2,050.8 ------------- Total liabilities and shareholders' equity $ 24,490.3 ============= Per share amounts: Diluted book value per share $ 41.03 ============= Diluted book value per share (Ex. Accumulated Comprehensive Income) $ 40.60 ============= 9 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 Period Ended Period Ended 3/31/02 3/31/01 New Business ($ millions) Protection Products =================== Career Agency System $ 15.6 $ 17.1 U.S. Financial Life Insurance Company 12.1 9.8 Complementary Distribution 21.0 22.4 ---- ---- Total New Life Insurance Premiums $ 48.7 $ 49.3 ==== ==== Accumulation Products ===================== Variable Annuities $ 100 $ 72 Career Agency System - Mutual Funds 74 116 Third Party Distribution - Mutual Funds 270 249 Total Accumulation $ 444 $ 437 === === Revenues excluding interest ($ millions) Retail Brokerage & Investment Banking ===================================== Advest* $ 73.3 $ 72.9 MONY Securities Corp. 10.8 11.0 Other 0.3 1.8 --- --- Total Revenue $ 84.4 $ 85.7 ==== ==== * First quarter 2001 revenue is for the three-month period ended 3/31/01 for comparison purposes, although The MONY Group's acquisition of Advest closed on January 31, 2001. 10 EX-99.2 4 dex992.txt THE MONY GROUP STATISTICAL SUPPLEMENT Exhibit 99.2 THE MONY GROUP INC. STATISTICAL SUPPLEMENT AS OF AND FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2002 AND 2001 Exhibit 99.2
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. All amounts included herein are unaudited. Certain total amounts herein cannot be recalculated due to rounding. Wall Street Analyst Coverage Data 2 Corporate Offices, Principal Subsidiaries and Ratings 3 Summary Financial Information 4-5 Consolidated Results Exhibit 1 Consolidated Income Statement Data 6 Protection Products Segment Exhibit 2 Protection Products Segment Description 7 Exhibit 3 Protection Income Statement Data 8 Exhibit 4A Group Pension Data 9 Exhibit 4B Closed Block Data 10 Exhibit 4C Fixed Maturities by Credit Quality - Closed Block 11 Exhibit 5 Premiums and Inforce 12 Exhibit 6 Statutory Direct Premiums 13 Accumulation Products Segment Exhibit 7 Accumulation Products Segment Description 14 Exhibit 8 Accumulation Income Statement Data 15 Exhibit 9 Accumulation Assets Under Management 16 Retail Brokerage and Investment Banking Exhibit 10 Retail Brokerage and Investment Banking Segment Description 17 Exhibit 11 Retail Brokerage and Investment Banking Income Statement Data 18 Exhibit 12 Income Statement Detail and Advest Data 19 Other Segment Exhibit 13 Other/Reconciling Products Segment Description 20 Exhibit 14 Other/Reconciling Income Statement Data 21 Investments Exhibit 15 Investments 22 Exhibit 16 Invested Assets 23 Exhibit 17 Investment Results 24 Exhibit 18A Fixed Maturities by Credit Quality 25 Exhibit 18B Fixed Maturities by Industry 26 Exhibit 18C Venture Capital Partnership Investments 27 Exhibit 19 Mortgages at Carrying Value 28 Exhibit 20A Equity Real Estate 29 Exhibit 20B Mortgages and Real Estate 30 Historical Exhibit 21 Quarterly Earnings 31 Expenses Exhibit 22 Statutory Expense Ratios 32
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 2 CORPORATE OFFICES, PRINCIPAL SUBSIDIARIES MONY Life Insurance Company Trusted Securites 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 Baa2 Fitch Fitch AA- BBB+ (1) MONY Life Insurance Company and MONY Life Insurance Company of America (2) The MONY Group (3) MONY Life Insurance Company, MONY Life Insurance Company of America, and U.S. Financial Life Insurance Company 3 (Unaudited) SUMMARY FINANCIAL INFORMATION
- ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) - ----------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED INCOME STATEMENT DATA: Net Income $ 14.3 $ 13.3 Net realized losses/(gains) on investments (after-tax) 0.9 (1.6) ----------- ----------- Operating income: 15.2 11.7 Venture capital (income)/loss (3.3) 3.1 ----------- ----------- Operating income, excluding venture capital $ 11.9 $ 14.8 =========== =========== PER SHARE CALCULATIONS: NET INCOME PER SHARE: Basic $ 0.30 $ 0.27 Diluted $ 0.29 $ 0.26 OPERATING INCOME PER SHARE: Basic $ 0.32 $ 0.24 Diluted $ 0.31 $ 0.23 OPERATING INCOME, EXCLUDING VENTURE CAPITAL INCOME: Basic $ 0.25 $ 0.30 Diluted $ 0.24 $ 0.29 Share Data Weighted-average shares outstanding used in basic per share calculations 48,012,310 48,720,335 Plus: Incremental shares from assumed conversion of dilutive securities 1,724,895 1,594,447 ----------- ----------- Weighted-average shares used in diluted per share calculations 49,737,205 50,314,782 =========== =========== OTHER DATA: Employee count 3,550 3,994 Career agent count (Domestic and International) 1,742 2,401 US Financial Life Brokerage General Agencies 229 233 Trusted Advisors Registered Representatives 492 433 Active Enterprise Selling Agreements 376 373 Advest Financial Advisors 480 468
4 (Unaudited) SUMMARY FINANCIAL INFORMATION - CONTINUED
- ----------------------------------------------------------------------------------------------------------------------- March 31, December 31, 2002 2001 ---- ---- ($ millions) - ----------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET DATA Invested assets (including cash and cash equivalents) $ 11,825.0 $ 11,826.5 Assets transferred in Group Pension Transaction 4,573.9 4,650.4 Separate accounts assets 5,181.1 5,195.2 Other assets 2,910.3 3,980.2 ---------- ---------- Total Assets $ 24,490.3 $ 25,652.3 Policyholders' liabilities $ 10,543.2 $ 10,488.2 Liabilities transferred in Group Pension Transaction 4,521.0 4,586.5 Separate account liabilities 5,178.2 5,192.3 Short term debt 7.0 320.0 Long term debt 579.0 578.8 Other liabilities 1,611.1 2,434.3 ---------- ---------- Total Liabilities 22,439.5 23,600.1 Equity 2,029.0 2,014.1 Accumulated comprehensive income (ACI) 21.8 38.1 ---------- ---------- Total Shareholders' Equity 2,050.8 2,052.2 ---------- ---------- Total Liabilities and Shareholders' Equity $ 24,490.3 $ 25,652.3 ========== ========== SHARE DATA: Diluted book value per share 41.03 41.55 Diluted book value per share (excluding accumulated comprehensive income) 40.60 40.78 CAPITALIZATION: Long-term debt $ 579.0 $ 578.8 Shareholders' Equity (Excluding ACI) 2,029.0 2,014.1 ---------- ---------- Total capitalization $ 2,608.0 $ 2,592.9 ========== ========== Debt as Percent of Total Capitalization 22% 22% ========== ========== STATUTORY DATA: Capital and Surplus $ 905.2 $ 917.4 Asset Valuation Reserve (AVR) 200.1 201.0 ---------- ---------- Total Capital and Surplus plus AVR $ 1,105.3 $ 1,118.4 ========== ==========
Exhibit 1 (Unaudited) CONSOLIDATED INCOME STATEMENT DATA (1)
- ------------------------------------------------------------------------------------------ Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------ REVENUES: Premiums $164.4 $165.1 Universal life and investment-type product policy fees 49.0 49.7 Net investment income 189.7 183.7 Net realized (losses)/gains on investments (2.4) 2.5 Group Pension Profits 7.7 9.9 Retail Brokerage and Investment Banking 90.8 71.1 Other income 38.2 30.3 ------ ------ 537.4 512.3 ------ ------ BENEFITS AND EXPENSES: Benefits to policyholders 190.7 197.7 Interest credited to policyholders account balances 27.9 28.3 Amortization of deferred policy acquisition costs 32.8 37.2 Dividends to policyholders 61.5 54.6 Other operating costs and expenses 203.4 174.2 ------ ------ 516.3 492.0 ------ ------ Income before income tax 21.1 20.3 Income tax expense 6.8 7.0 ------ ------ Net Income $ 14.3 $ 13.3 ====== ====== - ------------------------------------------------------------------------------------------
(1) These income statements present the consolidated results of operations of the Company for the periods indicated as will be reported on the Company's filings with the Securities and Exchange Commission. The results reported for the three month period ended March 31, 2002 and 2001 present the individual components of the Closed Block activity combined with the activity outside the Closed Block for the periods indicated. 6 Exhibit 2 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. - -------------------------------------------------------------------------------- 7 Exhibit 3 (Unaudited) PROTECTION PRODUCTS SEGMENT (1) INCOME STATEMENTS DATA
- ------------------------------------------------------------------------------------------------------------------ Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $160.4 $161.6 Universal life and investment-type product policy fees 35.7 34.5 Net investment income 153.7 148.2 Group Pension Profits 7.7 9.9 Other income 5.8 (2.2) ------ ------ Total revenues 363.3 352.0 ------ ------ BENEFITS AND EXPENSES: Benefits to policyholders 176.0 183.2 Interest credited to policyholder account balances 15.4 15.5 Amortization of deferred policy acquisition costs 26.9 30.9 Dividends to policyholders 60.9 54.0 Other operating costs and expenses 56.6 49.6 ------ ------ Total benefits and expenses 335.8 333.2 ------ ------ Pre-tax operating income 27.5 18.8 Net realized (loss)/gains on investments (2.0) 1.7 ------ ------ Pre-tax income $ 25.5 $ 20.5 ====== ====== OPERATING INCOME RECONCILIATION: Pre tax operating income $ 27.5 $ 18.8 Policyholder dividends resulting from closed block realized loss (1.1) (0.1) ------ ------ Operating Income $ 26.4 $ 18.7 ====== ====== - ------------------------------------------------------------------------------------------------------------------
(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 month period ended March 31, 2002 present the individual components of the Closed Block activity combined with the activity outside the Closed Block for the periods indicated.
Three-Months Ended March 31, ($ millions) 2002 2001 ------ ------ Operating Income $ 26.4 18.7 Venture Capital (gains)/losses (3.9) 4.0 ------ ------ Operating Income excluding venture capital $ 22.5 $ 22.7 ====== ======
8 Exhibit 4A (Unaudited)
GROUP PENSION PROFIT SUMMARY INCOME STATEMENT - ------------------------------------------------------------------------------------------------------------------------------ Three-Months Ended March 31, INCOME STATEMENT DATA: 2002 2001 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------------------------------------------ REVENUES: Policy product fees $ 4.7 $ 5.3 Net investment income 23.2 27.2 Net realized (losses)/gains on investments (0.2) 1.6 ------------- ----------- Total revenues 27.7 34.1 ------------- ----------- BENEFITS AND EXPENSES: Interest credited to policyholder account balances 15.8 18.5 Other operating costs and expenses 4.2 5.7 ------------- ----------- Total benefits and expenses 20.0 24.2 ------------- ----------- Group Pension Profits $ 7.7 $ 9.9 ============= =========== ASSETS AND LIABILITIES TRANSFERRED IN GROUP PENSION TRANSACTION - ------------------------------------------------------------------------------------------------------------------------------ March 31, December 31, 2002 2001 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------------------------------------------ BALANCE SHEET DATA : Assets: General Account Fixed maturities $ 1,345.9 $ 1,400.5 Mortgage loans on real estate 25.8 26.5 Cash and cash equivalents 21.9 19.4 Other assets 21.3 24.5 ------------- ----------- Total general account assets 1,414.9 1,470.9 Separate account assets 3,159.0 3,179.5 ------------- ----------- Total Assets $ 4,573.9 $ 4,650.4 ============= =========== Liabilities: General Account Policyholder account balances $ 1,378.9 $ 1,398.8 Other liabilities (16.9) 8.2 ------------- ----------- Total general account liabilities 1,362.0 1,407.0 Separate account liabilities 3,159.0 3,179.5 ------------- ----------- Total Liabilities $ 4,521.0 $ 4,586.5 ============= ===========
9 Exhibit 4B (Unaudited)
CLOSED BLOCK INCOME STATEMENT - ------------------------------------------------------------------------------------------- Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) REVENUES: Premiums $ 120.4 $ 129.3 Net investment income 98.2 99.9 Net realized loss on investments (1.1) (0.1) Other income 0.4 0.5 ------- ------- Total revenues 217.9 229.6 ------- ------- BENEFITS AND EXPENSES: Benefits to policyholders 132.1 141.4 Interest credited to policyholders account balances 2.1 2.1 Amortization of deferred policy acquisition costs 11.7 21.2 Dividends to policyholders 60.2 53.5 Operating costs and expenses 1.1 1.7 ------- ------- Total benefits and expenses 207.2 219.9 ------- ------- Closed Block Profit $ 10.7 $ 9.7 ======= ======= CLOSED BLOCK ASSETS AND LIABILITIES - -------------------------------------------------------------------------------------------------- March 31, December 31, 2002 2001 ---- ---- ($ millions) - -------------------------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed maturities $ 3,834.0 $ 3,868.9 Mortgage loans on real estate 578.9 622.1 Amounts due from broker 18.1 6.2 Policy loans 1,135.3 1,144.3 Cash and cash equivalents 101.9 56.2 Premiums receivable 7.3 12.5 Deferred policy acquisition costs 492.6 500.6 Other assets 245.0 219.3 --------- --------- Total closed block assets $ 6,413.1 $ 6,430.1 ========= ========= Liabilities: General Account Future policy benefits $ 6,870.3 $ 6,869.8 Policyholders' account balances 292.4 292.9 Other policyholders' liabilities 165.6 162.2 Other liabilities 132.2 163.9 --------- --------- Total closed block liabilities $ 7,460.5 $ 7,488.8 ========= =========
10 Exhibit 4C (Unaudited)
FIXED MATURITIES BY CREDIT QUALITY - CLOSED BLOCK PUBLIC FIXED MATURITIES BY CREDIT QUALITY - ----------------------------------------------------------------------------------------------------------------------------------- As Of Year Ended March 31, 2002 December 31, 2001 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 $ 1,678.3 77.4% $ 1,694.5 $ 1,589.1 76.7% $ 1,631.5 2 Baa 400.4 18.3% 401.1 391.3 18.8% 399.6 3 Ba 98.1 4.1% 88.9 93.1 4.1% 86.2 4 B 5.0 0.2% 5.0 5.0 0.2% 4.9 5 Caa and lower - 0.0% - 5.0 0.2% 5.1 6 In or near default 0.6 0.0% 0.7 0.6 0.0% 0.5 ---------- ----- --------- --------- ----- ----------- Subtotal 2,182.4 100.0% 2,190.2 2,084.1 100.0% 2,127.8 Redeemable preferred stock - 0.0% - - 0.0% - ---------- ----- --------- --------- ----- ----------- Total Public Fixed Maturities $ 2,182.4 100.0% $ 2,190.2 $ 2,084.1 100.0% $ 2,127.8 ---------- ----- --------- --------- ----- ----------- PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ----------------------------------------------------------------------------------------------------------------------------------- As Of Year Ended March 31, 2002 December 31, 2001 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 $ 812.9 50.5% $ 831.2 $ 845.3 50.3% $ 875.1 2 Baa 714.6 44.0% 722.6 742.5 43.6% 759.5 3 Ba 76.8 4.5% 74.2 83.6 4.8% 83.3 4 B 16.8 1.0% 15.8 17.8 1.0% 17.1 5 Caa and lower - 0.0% - 7.5 0.3% 6.0 6 In or near default - 0.0% - - 0.0% - ---------- ----- --------- --------- ----- ----------- Subtotal 1,621.1 100.0% 1,643.8 1,696.7 100.0% 1,741.0 Redeemable preferred stock - 0.0% - - 0.0% - ---------- ----- --------- --------- ----- ----------- Total Private Fixed Maturities $ 1,621.1 100.0% $ 1,643.8 $ 1,696.7 100.0% $ 1,741.0 ---------- ----- --------- --------- ----- ----------- TOTAL FIXED MATURITIES BY CREDIT QUALITY - ----------------------------------------------------------------------------------------------------------------------------------- As Of Year Ended March 31, 2002 December 31, 2001 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 $ 2,491.2 65.9% $ 2,525.7 $ 2,434.4 64.8% $ 2,506.6 2 Baa 1,115.0 29.3% 1,123.7 1,133.8 30.0% 1,159.1 3 Ba 174.9 4.3% 163.1 176.7 4.4% 169.5 4 B 21.8 0.5% 20.8 22.8 0.6% 22.0 5 Caa and lower - 0.0% - 12.5 0.3% 11.1 6 In or near default 0.6 0.0% 0.7 0.6 0.0% 0.5 ---------- ----- --------- --------- ----- ----------- Subtotal 3,803.5 100.0% 3,834.0 3,780.8 100.0% 3,868.8 Redeemable preferred stock - 0.0% - - 0.0% - ---------- ----- --------- --------- ----- ----------- Total Fixed Maturities $ 3,803.5 100.0% $ 3,834.0 $ 3,780.8 100.0% $ 3,868.8 ---------- ----- --------- --------- ----- ----------- - -----------------------------------------------------------------------------------------------------------------------------------
The Exhibit above includes invested assets in the Closed Block. 11 Exhibit 5 (Unaudited) PROTECTION PRODUCTS SEGMENT NEW ANNUALIZED AND SINGLE PREMIUMS AND INFORCE - -------------------------------------------------------------------------------- Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) - -------------------------------------------------------------------------------- PROTECTION BUSINESS SALES: Traditional life $ 0.7 $ 0.1 Term 11.2 8.5 Universal life 7.7 4.8 Variable universal life 10.5 12.8 Corporate owned life insurance 18.3 22.8 Group universal life 0.3 0.3 ----------- ---------- Total $ 48.7 $ 49.3 =========== ========== - -------------------------------------------------------------------------------- As of March 31, December 31, 2002 2001 ---- ---- - -------------------------------------------------------------------------------- Insurance In Force ($ in millions except number of policies) - -------------------------------------------------------------------------------- Traditional Life (1): Number of policies (in thousands) 851.5 857.3 GAAP life reserves $ 7,393.7 $ 7,374.8 Face amounts $ 75,275.2 $ 73,678.2 Universal Life: Number of policies (in thousands) 74.2 74.7 GAAP life reserves $ 722.9 $ 711.2 Face amounts $ 10,808.5 $ 10,843.6 Variable Universal Life: Number of policies (in thousands) 66.5 65.9 GAAP life reserves $ 806.9 $ 772.0 Face amounts $ 18,462.3 $ 18,231.2 Group Universal Life: Number of policies (in thousands) 43.0 43.9 GAAP life reserves $ 67.1 $ 66.7 Face amounts $ 1,531.4 $ 1,571.4 Total: Number of policies (in thousands) 1,035.2 1,041.8 GAAP life reserves $ 8,990.6 $ 8,924.7 Face amounts $ 106,077.4 $ 104,324.4 - -------------------------------------------------------------------------------- (1) Consists of whole life and term policies 12 Exhibit 6 (Unaudited) PROTECTION PRODUCTS SEGMENT STATUTORY DIRECT PREMIUMS BY PRODUCT - -------------------------------------------------------------------------------- Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) - -------------------------------------------------------------------------------- LIFE INSURANCE: Traditional Life (1): First year & single $ 39.7 $ 40.3 Renewal 110.7 108.5 ------- ------- Total $ 150.4 $ 148.8 ======= ======= Universal Life: First year & single $ 8.0 $ 4.2 Renewal 24.1 25.5 ------- ------- Total $ 32.1 $ 29.7 ======= ======= Variable Universal Life: First year & single $ 13.5 $ 16.5 Renewal 25.9 21.8 ------- ------- Total $ 39.4 $ 38.3 ======= ======= Corporate Sponsored Variable Universal Life: First year & single $ 14.7 $ 12.6 Renewal 9.1 23.6 ------- ------- Total $ 23.8 $ 36.2 ======= ======= Group Universal Life: First year & single $ 0.4 $ 0.7 Renewal 2.8 2.8 ------- ------- Total $ 3.2 $ 3.5 ======= ======= Total life insurance $ 248.9 $ 256.5 ======= ======= - -------------------------------------------------------------------------------- (1) Consists of whole life and term policies 13 Exhibit 7 ACCUMULATION PRODUCT SEGMENT - -------------------------------------------------------------------------------- The Accumulation Products segment represents fixed annuities, single premium deferred annuities, immediate annuities, flexible payment variable annuities and proprietary retail mutual funds. - -------------------------------------------------------------------------------- Exhibit 8 (Unaudited) ACCUMULATION PRODUCTS SEGMENT INCOME STATEMENT
- --------------------------------------------------------------------------------------------------- Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) - --------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 1.5 $ 1.3 Universal life and investment-type product policy fees 12.1 15.2 Net investment income 21.2 19.1 Other income 25.8 26.2 ----------------- ---------------- Total revenues 60.6 61.8 ----------------- ---------------- BENEFITS AND EXPENSES: Benefits to policyholders 6.2 5.8 Interest credited to policyholder account balances 10.4 10.3 Amortization of deferred policy acquisition costs 5.9 6.3 Dividends to policyholders 0.3 0.4 Other operating costs and expenses 29.1 28.1 ----------------- ---------------- Total benefits and expenses 51.9 50.9 ----------------- ---------------- Pre-tax operating income 8.7 10.9 Net realized (loss)/gains on investments (0.2) 1.1 ----------------- ---------------- Pre-tax income $ 8.5 $ 12.0 ================= ================
- -------------------------------------------------------------------------------------------------------- Three-Months Ended March 31, ($ millions) 2002 2001 ----------------- ---------------- Operating Income $ 8.7 10.9 Venture Capital (gains)/losses (0.8) 1.3 ----------------- ---------------- Operating Income excluding venture capital $ 7.9 $ 12.2 ================= ================
15 Exhibit 9 (Unaudited) ACCUMULATION PRODUCTS SEGMENT ASSETS UNDER MANAGEMENT - ---------------------------------------------------------------------------- March 31, March 31, December 31, 2002 2001 2001 ($ billions) - ---------------------------------------------------------------------------- ACCUMULATION SEGMENT: Assets under management Individual variable annuities $ 3.9 $ 3.9 $ 3.9 Individual fixed annuities 0.7 0.7 0.7 Proprietary retail mutual funds 4.5 4.3 4.4 ------- ------- ------- $ 9.1 $ 8.9 $ 9.0 ======= ======= ======= Three-Months Ended March 31, 2002 2001 ---- ---- ($ billions) RECONCILIATION IN ACCOUNT VALUE: VARIABLE ANNUITY(1): Beginning account value $ 3.9 $ 4.4 Sales 0.1 0.1 Market appreciation 0.0 (0.4) Mortality and expense (0.0) (0.0) Surrenders and withdrawals (0.1) (0.1) ------- ------- $ 3.9 $ 3.9 ======= ======= ENTERPRISE GROUP OF FUNDS: Beginning account value $ 4.4 $ 4.8 Sales 0.3 0.4 Dividends reinvested 0.0 0.0 Market appreciation 0.0 (0.6) Redemptions (0.3) (0.3) ------- ------- Ending account value $ 4.5 $ 4.3 ======= ======= - -------------------------------------------------------------------------------- 16 Exhibit 10 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). - -------------------------------------------------------------------------------- 17 Exhibit 11 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DATA - --------------------------------------------------------------------------- Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) - -------------------------------------------------------------------------- REVENUES: Net investment income $ 2.3 $ 1.0 Retail Brokerage and Investment Banking 90.8 71.1 ------ ------ Total revenues 93.1 72.1 ------ ------ BENEFITS AND EXPENSES: Other operating costs and expenses 93.9 73.8 ------ ------ Total benefits and expenses 93.9 73.8 ------ ------ Pre-tax operating loss (0.8) (1.7) Net realized losses on investments - (0.2) ------ ------ Pre-tax loss $ (0.8) $ (1.9) ====== ====== - --------------------------------------------------------------------------- 18 Exhibit 12 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DETAIL Three-Months Ended March 31, -------------------------------- 2002 2001 ---------- ----------- ($ millions) REVENUES: Commissions $ 42.4 $ 27.8 Interest 8.7 13.6 Principal transactions 22.7 14.9 Asset management and administration 4.9 2.5 Investment banking 13.3 9.8 Other 1.1 3.3 ------ ------ Total revenues 93.1 71.9 ------ ------ EXPENSES: Compensation 53.3 36.2 Interest 4.6 9.9 Goodwill and other intangible amortization 1.0 1.5 Other 35.0 26.2 ------ ------ Total expenses 93.9 73.8 ------ ------ Pre-tax loss $ (0.8) $ (1.9) ====== ====== - ------------------------------------------------------------------------------- ADVEST - NET INTEREST Three-Months Ended March 31, 2002 March 31, 2001 ----------------- ------------------- ($ millions) ---------- Net Interest Income - Interest Income: Brokerage customers (1) $ 4.1 47.2% $ 6.2 45.6% Stock borrowed (1) 1.2 13.8% 6.2 45.6% Investments 0.1 0.9% 0.1 0.7% Security inventory 2.2 25.3% 0.9 6.6% Other 1.1 12.7% 0.2 1.5% ----------------- ------------------- $ 8.7 100.0% $ 13.6 100.0% ----------------- ------------------- Interest Expense: Stock loaned (1) 2.9 63.0% 6.0 60.6% Brokerage customers 1.3 28.3% 1.2 12.1% Borrowings 0.2 4.3% 2.6 26.3% Other 0.2 4.3% 0.1 1.0% ----------------- ------------------ 4.6 100.0% 9.9 100.0% ----------------- ------------------ Net interest income $ 4.1 47.0% $ 3.7 27.2% ================= ================== (1) The decrease in interest income from 2001 to 2002 reflected in the line items above entitled "Brokerage customers" and "Stock borrowed", as well as the decrease in interest expense from 2001 to 2002 reflected in the line item "Stock loaned" resulted from the outsourcing of Advest's clearing operation to Wexford which was completed in early 2002. In connection with the outsourcing, Advest entered into an interest-sharing agreement with Wexford which has resulted in lower net interest profits in the current year - ------------------------------------------------------------------------------- ADVEST STATISTICAL DATA As of March 31, 2002 -------------- Client Assets (in millions)* $ 28,227.0 Number of Client Accounts (in thousands) 248 * Includes assets managed under fee-based programs of approximately $6.8 million. 19 Exhibit 13 OTHER PRODUCTS SEGMENT - -------------------------------------------------------------------------------- The Company's Other Products segment primarily consists of an insurance brokerage operation and the Run-Off businesses. The insurance brokerage operation provides the Company's career agency sales force with access to non-variable life, annuity, small group health and specialty insurance products written by other carriers to meet the insurance and investment needs of its customers. The Run-Off Businesses primarily consist of group life and health insurance as well as the group pension business that was not included in the Group Pension Transaction. - -------------------------------------------------------------------------------- RECONCILING AMOUNTS - -------------------------------------------------------------------------------- The reconciling amounts include certain benefits for the Company's benefit plans, the results of the holding company and certain non-recurring items. - -------------------------------------------------------------------------------- Exhibit 14 (Unaudited) OTHER/RECONCILING PRODUCTS SEGMENT INCOME STATEMENT DATA
- ------------------------------------------------------------------------------------- Three-Months Ended March 31, 2002 2001 ---- ---- ($ millions) REVENUES: Premiums $ 2.5 $ 2.2 Universal life and investment-type product policy fees 1.2 - Net investment income 12.5 15.4 Other income 6.6 6.3 -------- -------- Total revenues 22.8 23.9 -------- -------- BENEFITS AND EXPENSES: Benefits to policyholders 8.5 8.7 Interest credited to policyholder account balances 2.1 2.5 Dividends to policyholders 0.3 0.2 Other operating costs and expenses 23.8 22.7 -------- -------- Total benefits and expenses 34.7 34.1 -------- -------- Pre-tax operating loss (11.9) (10.2) Net realized gain/(loss) on investments 0.2 (0.1) -------- -------- Pre-tax loss $ (11.7) $ (10.3) ======== ======== - ------------------------------------------------------------------------------------- Three-Months Ended March 31, ($ millions) 2002 2001 -------- -------- Operating Income $ (11.9) $ (10.2) Venture Capital gains/(loss) 0.3 (0.4) -------- -------- Operating Income excluding venture capital $ (11.6) $ (10.6) ======== ========
21 INVESTMENTS ALL INVESTMENT DATA PRESENTED IN THE FOLLOWING SECTION INCLUDES INVESTED ASSETS IN THE CLOSED BLOCK 22 Exhibit 16 (Unaudited)
CONSOLIDATED GAAP INVESTED ASSETS - ------------------------------------------------------------------------------------------------------------------------ As of As of March 31, 2002 December 31, 2001 Carrying % of Carrying % of Value Total Value Total ----- ----- ----- ----- INVESTED ASSETS ($ Millions) - ------------------------------------------------------------------------------------------------------------------------ Fixed Maturities, Available for Sale $ 6,920.1 62.3% $ 6,976.0 62.8% Fixed Maturities, Held to Maturity 0.1 0.0% 0.1 0.0% Equity Securities, Available for Sale 305.8 2.8% 299.2 2.7% Mortgage Loans on Real Estate 1,763.2 15.9% 1,809.7 16.3% Policy Loans 1,223.7 11.0% 1,229.0 11.1% Real Estate to be Disposed Of 193.5 1.7% 172.3 1.6% Real Estate Held for Investment 46.7 0.4% 58.5 0.5% Other Invested Assets 126.8 1.1% 116.7 1.0% Cash and Cash Equivalents 535.3 4.8% 441.0 4.0% ---------- --------- ---------- -------- Invested Assets, excluding Trading Securities $ 11,115.2 100.0% $ 11,102.5 100.0% ========== ========= ========== ======== - ------------------------------------------------------------------------------------------------------------------------
The Exhibit above includes invested assets in the Closed Block and excludes Trading Securities in Advest. 23 Exhibit 17 (Unaudited) INVESTMENT RESULTS BY ASSET CATEGORY-COMBINED BASIS
- ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ended Three Months Ended Year Ended March 31, 2002 March 31, 2001 December 31, 2001 Yield (2) Amount Yield (2) Amount Yield (1) Amount --------- ------ --------- ------ --------- ------ ($ millions) ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES Investment Income 7.2% $ 123.9 7.5% $ 125.5 7.3% $ 492.5 Realized Gains (losses) 0.3% 4.8 0.3% 4.7 0.0% (2.6) Total 7.5% $ 128.7 7.8% $ 130.2 7.2% $ 489.9 ------------------------------------------------------------------------------- Ending Assets $ 6,862.0 $ 6,728.4 $ 6,833.0 ------------------------------------------------------------------------------- EQUITY SECURITIES Investment Income 7.9% $ 6.0 -5.7% $ (4.6) 10.8% $ (33.9) Realized Gains (losses) -1.5% (1.1) -2.0% (1.6) -2.5% (7.8) Total 6.4% $ 4.8 -7.7% $ (6.2) 13.3% $ (41.7) ------------------------------------------------------------------------------- Ending Assets $ 305.8 $ 317.5 $ 299.2 ------------------------------------------------------------------------------- MORTGAGE LOANS Investment Income 7.7% $ 34.4 8.2% $ 35.4 7.8% $ 139.8 Realized Gains (losses) -0.6% (2.6) 0.4% 1.7 0.5% 9.3 Total 7.1% $ 31.8 8.6% $ 37.1 8.4% $ 149.2 ------------------------------------------------------------------------------- Ending Assets $ 1,763.2 $ 1,701.0 $ 1,809.7 ------------------------------------------------------------------------------- REAL ESTATE (3) Investment Income 12.4% $ 7.3 5.1% $ 2.7 4.3% $ 9.5 Realized Gains (losses) -6.0% (3.5) -2.9% (1.5) -2.4% (5.2) Total 6.4% $ 3.8 2.2% $ 1.2 1.9% $ 4.2 ------------------------------------------------------------------------------- Ending Assets $ 240.2 $ 214.4 $ 230.8 ------------------------------------------------------------------------------- POLICY LOANS Investment Income 7.0% $ 21.5 7.0% $ 22.0 6.9% $ 86.5 Realized Gains (losses) 0.0% - 0.0% - 0.0% - Total 7.0% $ 21.5 7.0% $ 22.0 6.9% $ 86.5 ------------------------------------------------------------------------------- Ending Assets $ 1,223.7 $ 1,259.2 $ 1,229.0 ------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS Investment Income 1.9% $ 2.1 5.8% $ 11.7 4.4% $ 29.3 Realized Gains (losses) 0.0% (0.0) 0.0% (0.0) -0.1% (0.8) Total 1.9% $ 2.1 5.8% $ 11.7 4.3% $ 28.5 ------------------------------------------------------------------------------- Ending Assets $ 535.2 $ 625.1 $ 441.0 ------------------------------------------------------------------------------- OTHER INVESTED ASSETS Investment Income 10.4% $ 3.2 5.5% $ 1.3 8.4% $ 9.1 Realized Gains (losses) 0.1% 0.0 -3.0% (0.7) -4.7% (5.1) Total 10.5% $ 3.2 2.5% $ 0.6 3.7% $ 4.0 ------------------------------------------------------------------------------- Ending Assets $ 126.8 $ 91.2 $ 116.7 ------------------------------------------------------------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 7.2% $ 198.3 7.0% $ 194.1 6.6% $ 732.8 Realized Gains (losses) -0.1% (2.4) 0.1% 2.5 -0.1% (12.3) Total 7.1% $ 195.9 7.1% $ 196.6 6.5% $ 720.6 ------------------------------------------------------------------------------- Ending Assets $11,057.0 $10,936.8 $10,959.4 ------------------------------------------------------------------------------- Other Fee Income 0.1% $ 1.4 0.0% $ 1.2 0.0% $ 5.3 Investment expense -0.1% $ (4.0) -0.4% $ (11.5) -0.4% $ (46.1) TOTAL AFTER INVESTMENT EXPENSES Investment Income 7.1% $ 195.8 6.6% $ 183.7 6.2% $ 692.1 Realized Gains (losses) -0.1% (2.4) 0.1% 2.5 -0.1% (12.3) Total 7.0% $ 193.4 6.7% $ 186.2 6.1% $ 679.8 ------------------------------------------------------------------------------- Ending Assets 11,057.0 10,936.8 10,959.4 ------------------------------------------------------------------------------- Net unrealized gains (losses) on fixed maturities 58.2 120.4 143.1 ------------------------------------------------------------------------------- Total invested assets (4) $11,115.2 $11,057.2 $11,102.5 ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------------------------------------------ Year Ended Year Ended Year Ended December 31, 2000 December 31, 1999 December 31, 1998 Yield (1) Amount Yield (1) Amount Yield (1) Amount --------- ------ --------- ------ --------- ------ ($ millions) ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES Investment Income 7.4% $ 495.4 7.2% $ 477.7 7.4% $ 448.7 Realized Gains (losses) -0.4% (30.1) -0.1% (8.6) 0.1% 8.5 Total 6.9% $ 465.3 7.1% $ 469.1 7.5% $ 457.2 --------------------------- ---------------------------------------------------- Ending Assets $ 6,702.7 $ 6,752.6 $ 6,453.5 --------------------------- ---------------------------------------------------- EQUITY SECURITIES Investment Income 56.4% $ 239.4 39.7% $ 194.2 13.5% $ 53.6 Realized Gains (losses) 5.1% 21.6 15.6% 76.0 1.7% 6.9 Total 61.5% $ 261.0 55.3% $ 270.2 15.2% $ 60.5 --------------------------- ---------------------------------------------------- Ending Assets $ 328.6 $ 519.8 $ 457.2 --------------------------- ---------------------------------------------------- MORTGAGE LOANS Investment Income 8.3% $ 144.4 8.2% $ 127.7 8.7% $ 124.1 Realized Gains (losses) 1.1% 19.8 0.0% 0.8 0.5% 7.6 Total 9.5% $ 164.1 8.2% $ 128.5 9.2% $ 131.7 --------------------------- ---------------------------------------------------- Ending Assets $ 1,754.7 $ 1,713.4 $ 1,420.0 --------------------------- ---------------------------------------------------- REAL ESTATE (3) Investment Income 7.0% $ 20.4 7.0% $ 35.0 5.0% $ 44.4 Realized Gains (losses) 9.2% 26.7 10.4% 52.0 14.6% 127.6 Total 16.2% $ 47.1 17.4% $ 87.0 19.6% $ 172.0 --------------------------- ---------------------------------------------------- Ending Assets $ 212.0 $ 369.1 $ 634.2 --------------------------- ---------------------------------------------------- POLICY LOANS Investment Income 6.8% $ 86.6 6.5% $ 81.9 6.6% $ 82.4 Realized Gains (losses) 0.0% - 0.0% - 0.0% - Total 6.8% $ 86.6 6.5% $ 81.9 6.6% $ 82.4 --------------------------- ---------------------------------------------------- Ending Assets $ 1,264.6 $ 1,268.2 $ 1,269.6 --------------------------- ---------------------------------------------------- CASH AND CASH EQUIVALENTS Investment Income 6.6% $ 28.2 4.1% $ 17.3 4.8% $ 18.8 Realized Gains (losses) 0.0% (0.0) 0.0% - 0.0% - Total 6.6% $ 28.2 4.1% $ 17.3 4.8% $ 18.8 --------------------------- ---------------------------------------------------- Ending Assets $ 869.6 $ 377.1 $ 463.5 --------------------------- ---------------------------------------------------- OTHER INVESTED ASSETS Investment Income 5.9% $ 4.1 -0.5% $ (0.2) 1.8% $ 1.0 Realized Gains (losses) -0.7% (0.5) 12.4% 4.9 37.5% 20.5 Total 5.3% $ 3.6 11.9% $ 4.7 39.3% $ 21.5 --------------------------- ---------------------------------------------------- Ending Assets $ 100.0 $ 38.0 $ 40.7 --------------------------- ---------------------------------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 9.1% $ 1,018.4 8.6% $ 933.6 7.4% $ 773.0 Realized Gains (losses) 0.3% 37.5 1.1% 125.1 1.6% 171.1 Total 9.5% $ 1,055.9 9.7% $ 1,058.7 9.0% $ 944.1 --------------------------- ---------------------------------------------------- Ending Assets $11,232.2 $11,038.2 $10,738.7 --------------------------- ---------------------------------------------------- Other Fee Income 0.0% $ 4.0 0.0% $ 4.2 0.1% $ 4.8 Investment expense -0.4% $ (44.3) -0.3% $ (35.5) -0.4% $ (42.1) TOTAL AFTER INVESTMENT EXPENSES Investment Income 8.8% $ 978.1 8.3% $ 902.3 7.0% $ 735.7 Realized Gains (losses) 0.3% 37.5 1.1% 125.1 1.6% 171.1 Total 9.1% $ 1,015.6 9.4% $ 1,027.4 8.6% $ 906.8 --------------------------- ---------------------------------------------------- Ending Assets 11,232.2 11,038.2 10,738.7 --------------------------- ---------------------------------------------------- Net unrealized gains (losses) on fixed maturities (9.8) (206.4) 252.5 --------------------------- ---------------------------------------------------- Total invested assets (4) $11,222.5 $10,831.8 $10,991.2 - ------------------------------------------------------------------------------------------------------------------------------------
(1) Yields are based on annual average asset carrying values, excluding unrealized gains (losses) in the fixed maturity asset category. (2) Yields are based on quarterly average asset carrying values, excluding unrealized gains (losses) in the fixed maturity asset category. (3) Equity real estate income is shown net of operating expenses, depreciation and minority interest. (4) Trading portfolio balances of $712.5 million and results are excluded from the yield calculation. The Exhibit above include invested assets in the Closed Block. 24 Exhibit 18A (Unaudited) FIXED MATURITIES BY CREDIT QUALITY PUBLIC FIXED MATURITIES BY CREDIT QUALITY
- --------------------------------------------------------------------------------------------------------------------------------- As of As of March 31, 2002 December 31, 2001 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ---- ----- ---------- ($ millions) - --------------------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 2,856.0 74.6% $ 2,887.9 $ 2,730.4 73.8% $ 2,806.4 2 Baa 763.4 19.8% 765.1 769.5 20.6% 784.9 3 Ba 172.3 4.3% 166.5 161.9 4.1% 155.3 4 B 38.2 1.1% 42.0 37.9 1.1% 40.8 5 Caa and lower 4.9 0.2% 5.6 15.5 0.4% 15.0 6 In or near default 1.6 0.0% 1.9 1.8 0.0% 1.9 --------- ----- --------- --------- ----- --------- Subtotal 3,836.4 100.0% 3,869.0 3,717.0 100.0% 3,804.3 Redeemable preferred stock 1.0 0.0% 1.0 1.0 0.0% 0.9 --------- ----- --------- --------- ----- --------- Total Public Fixed Maturities $ 3,837.4 100.0% $ 3,870.0 $ 3,718.0 100.0% $ 3,805.2 ========= ===== ========= ========= ===== ========= PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ---------------------------------------------------------------------------------------------------------------------------------- As of As of March 31, 2002 December 31, 2001 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value ------ ---------------------- ---- ----- ---------- ---- ----- ---------- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 1,060.2 35.5% $ 1,081.3 $ 1,077.5 35.1% $ 1,113.7 2 Baa 1,580.4 52.0% 1,587.6 1,620.7 51.9% 1,645.8 3 Ba 250.1 8.1% 246.4 270.6 8.5% 269.3 4 B 62.1 2.0% 60.4 63.2 1.9% 62.0 5 Caa and lower 12.7 0.4% 12.7 20.2 0.6% 18.6 6 In or near default 4.5 0.2% 5.7 4.5 0.2% 5.7 --------- ----- --------- --------- ----- --------- Subtotal 2,970.0 98.2% 2,994.1 3,056.7 98.2% 3,115.1 Redeemable preferred stock 54.6 1.8% 56.1 54.6 1.8% 55.8 --------- ----- --------- --------- ----- --------- Total Private Fixed Maturities $ 3,024.6 100.0% $ 3,050.2 $ 3,111.3 100.0% $ 3,170.9 ========= ===== ========= ========= ===== ========= TOTAL FIXED MATURITIES BY CREDIT QUALITY - ---------------------------------------------------------------------------------------------------------------------------------- As of As of March 31, 2002 December 31, 2001 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value ------ ---------------------- --------- ----- ---------- ---- ----- ---------- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 3,916.2 57.3% $ 3,969.2 $ 3,807.9 56.2% $ 3,920.1 2 Baa 2,343.8 34.0% 2,352.7 2,390.2 34.8% 2,430.7 3 Ba 422.4 6.0% 412.9 432.5 6.1% 424.6 4 B 100.3 1.5% 102.4 101.1 1.5% 102.8 5 Caa and lower 17.6 0.3% 18.3 35.7 0.5% 33.6 6 In or near default 6.1 0.1% 7.6 6.3 0.1% 7.6 --------- ----- --------- --------- ----- --------- Subtotal 6,806.4 99.2% 6,863.1 6,773.7 99.2% 6,919.4 Redeemable preferred stock 55.6 0.8% 57.1 55.6 0.8% 56.7 --------- ----- --------- --------- ----- --------- Total Fixed Maturities $ 6,862.0 100.0% $ 6,920.2 $ 6,829.3 100.0% $ 6,976.1 ========= ===== ========= ========= ===== =========
The Exhibit above includes invested assets in the Closed Block. Excludes Trading Portfolio Assets. 25 Exhibit 18B (Unaudited) FIXED MATURITIES BY INDUSTRY
- ----------------------------------------------------------------------------------------------------------------------- As of March 31, 2002 -------------------- ($ millions) - ----------------------------------------------------------------------------------------------------------------------- Industry Public % Private % Total % - -------- ------ - ------- - ----- - Consumer Goods & Services $ 474.0 12.2% $ 736.1 24.1% $ 1,210.1 17.5% Non-Government-Asset/Mortgage Backed 504.2 13.1% 255.4 8.4% 759.6 10.9% Public Utilities 423.9 10.9% 287.0 9.4% 710.9 10.3% Other Manufacturing 168.0 4.3% 513.0 16.8% 681.0 9.8% Financial Services 211.3 5.5% 346.7 11.4% 558.0 8.1% Banks 460.5 11.9% 41.8 1.4% 502.3 7.3% Transportation/Aerospace 290.0 7.5% 192.5 6.3% 482.5 7.0% Government & Agency 441.8 11.4% 0.1 0.0% 441.9 6.4% Energy 204.7 5.3% 204.1 6.7% 408.8 5.9% Mortgage Backed-Government & Agency 370.7 9.6% 0.9 0.0% 371.6 5.4% Nat/Res/Manuf(non-energy) 96.8 2.5% 271.4 8.9% 368.2 5.3% Media/Adver/Printing 32.3 0.8% 105.6 3.5% 137.9 2.0% Telecommunications 94.9 2.5% 18.6 0.6% 113.5 1.6% Other 95.9 2.5% 16.3 0.5% 112.2 1.6% Cable Television 1.0 0.0% 32.2 1.1% 33.2 0.5% Bank Holding Companies 0.0 0.0% 28.5 0.9% 28.5 0.4% --------------------------------------------------------------- ------- Total $ 3,870.0 100.0% $ 3,050.2 100.0% $ 6,920.2 100.0% =============================================================== ======= As of 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% Government & Agency 199.9 5.3% 229.0 7.2% 428.9 6.1% Energy 406.5 10.7% 0.1 0.0% 406.6 5.8% Mortgage Backed-Government & Agency 95.1 2.5% 282.7 8.9% 377.8 5.4% Nat/Res/Manuf(non-energy) 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% $ 3,170.9 100.0% $ 6,976.1 100.0% =============================================================== =======
The Exhibit above includes invested assets in the Closed Block. Excludes Trading Portfolio Assets. 26 Exhibit 18C (Unaudited) VENTURE CAPITAL PARTNERSHIP INVESTMENTS VENTURE CAPITAL PARTNERSHIP INVESTMENTS:
- ------------------------------------------------------------------------------------ As of As of March 31, 2002 December 31, 2001 -------------- ----------------- ($ in millions) ($ in millions) Equity Method Public common stock $ 20.2 $ 9.0 Private common stock 76.8 83.6 ------------- ------------- Sub-total 97.0 92.6 ------------- ------------- Cost Method Public common stock 28.0 22.0 Private common stock 111.3 115.1 ------------- ------------- Sub-total 139.3 137.1 ------------- ------------- Total Venture Capital Partnership Investments $ 236.3 $ 229.7 ============= =============
VENTURE CAPITAL PARTNERSHIP INVESTMENTS BY SECTOR: - ---------------------------------------------------------------------------------------------------------------------- As of As of March 31, 2002 December 31, 2001 -------------- ----------------- ($ Millions) % ($ Millions) % - ---------------------------------------------------------------------------------------------------------------------- Information Technology $ 114.6 48.5% $ 107.5 46.8% Domestic LBO 51.8 22.0% 50.4 22.0% Life Sciences 18.7 7.9% 20.0 8.7% Telecommunications 3.8 1.6% 8.6 3.7% International LBO 17.3 7.3% 14.0 6.1% Merchant Banking 21.5 9.1% 11.9 5.2% Other 8.6 3.6% 17.3 7.5% ------- ----- ------- ----- Total Venture Capital Partnership Investments by Sector $ 236.3 100.0% $ 229.7 100.0% ======= ===== ======= =====
27 Exhibit 19 (Unaudited) PROBLEM, POTENTIAL PROBLEM AND RESTRUCTURED COMMERCIAL MORTGAGES AT CARRYING VALUE
- ----------------------------------------------------------------------------------------------------------------------------- 31-Mar 31-Dec 2002 2001 ---- ---- ($ millions) - ----------------------------------------------------------------------------------------------------------------------------- Total Commercial Mortgages $ 1,460.9 $ 1,507.7 ========= ========= Problem commercial mortgages (1) 5.4 16.3 Potential problem commercial mortgages 60.7 64.5 Restructured commercial mortgages 57.9 57.9 --------- --------- Total problem, potential problem and restructured commercial mortgages $ 124.0 $ 138.7 ========= ========= Total problem, potential problem and restructured commercial mortgages as % of total commercial mortgages 8.5% 9.2% === === Valuation allowances/writedowns (2) Problem loans $ 0.1 $ 4.6 Potential problem loans 6.5 8.4 Restructured loans 4.5 4.7 --------- --------- Total valuation allowances/writedowns $ 11.1 $ 17.7 ========= ========= Total valuation allowances as a percent of problem, potential problem and restructured commercial mortgages at carrying value before valuation allowances and writedowns 8.2% 11.3% === ==== - -----------------------------------------------------------------------------------------------------------------------------
(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. 28 Exhibit 20A (Unaudited) EQUITY REAL ESTATE - -------------------------------------------------------------------------------- As of As of ----- ----- March 31, December 31, 2002 2001 ---- ---- ($ millions) - -------------------------------------------------------------------------------- TYPE Real estate $ 52.4 $ 53.2 Joint ventures 136.5 133.3 --------- --------- Subtotal 188.9 186.5 Foreclosed 51.3 44.3 --------- --------- Total $ 240.2 $ 230.8 ========= ========= 29 Exhibit 20B (Unaudited) MORTGAGES AND REAL ESTATE
- -------------------------------------------------------------------------------------------------------------------- As of As of March 31, 2002 December 31, 2001 -------------- ----------------- ($ millions) ($ millions) - -------------------------------------------------------------------------------------------------------------------- Geographic Region Southeast $ 441.3 22.0% $ 449.1 22.0% West 344.3 17.2% 361.6 17.7% Northeast 270.7 13.5% 274.1 13.4% Mountain 398.6 19.9% 414.2 20.3% Midwest 336.7 16.8% 336.2 16.5% Southwest 211.8 10.6% 205.3 10.1% --------- ---- --------- ---- $ 2,003.4 100% $ 2,040.5 100% ========= === ========= === As of As of March 31, 2002 December 31, 2001 -------------- ----------------- ($ millions) ($ millions) - -------------------------------------------------------------------------------------------------------------------- Property Type: Office Buildings $ 849.7 42.4% $ 873.3 42.8% Agricultural 304.6 15.2% 304.9 14.9% Hotel 298.5 14.9% 297.8 14.6% Retail 133.8 6.7% 138.8 6.8% Industrial 158.5 7.9% 156.6 7.7% Other 133.6 6.7% 135.1 6.6% Apartment Buildings 124.7 6.2% 134.0 6.6% --------- --- --------- --- $ 2,003.4 100% $ 2,040.5 100% ========= === ========= ===
The Exhibit above includes invested assets in the Closed Block. 30 Exhibit 21 (Unaudited) HISTORICAL QUARTERLY DATA
- ------------------------------------------------------------------------------------------------------------------------------------ Q1'02 2001 Q4'01 Q3'01 Q2'01 Q1'01 ($ millions, except per share amounts) - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES: Premiums $ 164.4 $ 695.3 $ 194.8 $ 162.0 $ 173.4 $ 165.1 Universal life and investment-type product policy fees 49.0 207.2 55.1 50.1 52.3 49.7 Net investment income 189.7 692.1 146.0 172.9 189.5 183.7 Net realized gains on investments (2.4) (12.3) (18.3) 0.5 3.0 2.5 Group pension profits 7.7 30.7 3.5 8.0 9.3 9.9 Retail Brokerage and Investment Banking 90.8 343.5 90.5 82.1 99.8 71.1 Other income 38.2 147.1 53.3 21.8 41.7 30.3 ----------------------------------------------------------------------------- Total revenues 537.4 2,103.6 524.9 497.4 569.0 512.3 ----------------------------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 190.7 814.7 218.6 203.9 194.5 197.7 Interest credited to policyholder account balances 27.9 110.5 27.3 27.9 27.0 28.3 Amortization of deferred policy acquisition costs 32.8 158.8 60.4 32.9 28.3 37.2 Dividends to policyholders 61.5 236.6 66.9 54.5 60.6 54.6 Demutualization Expense - - - - - - Other operating costs and expenses 203.4 876.4 285.4 190.0 226.8 174.2 ----------------------------------------------------------------------------- Total benefits and expenses 516.3 2,197.0 658.6 509.2 537.2 492.0 ----------------------------------------------------------------------------- Income/(Loss) before income taxes and extraordinary item 21.1 (93.4) (133.7) (11.8) 31.8 20.3 Income tax expense 6.8 (32.6) (46.0) (3.1) 9.5 7.0 ----------------------------------------------------------------------------- Net income/(loss) $ 14.3 $ (60.8) $ (87.7) $ (8.7) $ 22.3 $ 13.3 ============================================================================= Net Income/(Loss) $ 14.3 $ (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) 0.9 (1.2) (0.4) 1.4 (0.6) (1.6) ----------------------------------------------------------------------------- Operating income/(loss) 15.2 (48.9) (75.0) (7.3) 21.7 11.7 Operating loss included in the 4th quarter charge - 81.9 81.9 - - - Venture capital (income)/loss (3.3) 9.1 - 10.1 (4.1) 3.1 ----------------------------------------------------------------------------- Operating income as adjusted: $ 11.9 $ 42.1 $ 6.9 $ 2.8 $ 17.6 $ 14.8 ============================================================================= Number of Shares Used in Per Share Calculations: BASIC 48,012,310 48,608,378 47,786,913 48,642,274 49,363,512 48,720,335 DILUTED 49,737,205 48,608,378 47,786,913 48,642,274 50,913,099 50,314,782 Net Income/(Loss) Per Share: BASIC $ 0.30 $ (1.25) $ (1.84) $ (0.18) $ 0.45 $ 0.27 DILUTED $ 0.29 $ (1.25) $ (1.84) $ (0.18) $ 0.44 $ 0.26 Operating income/(loss) BASIC $ 0.32 $ (1.01) $ (1.57) $ (0.15) $ 0.44 $ 0.24 DILUTED $ 0.31 $ (1.01) $ (1.57) $ (0.15) $ 0.43 $ 0.23 Operating income as adjusted: BASIC $ 0.25 $ 0.87 $ 0.14 $ 0.06 $ 0.36 $ 0.30 DILUTED $ 0.24 $ 0.87 $ 0.14 $ 0.06 $ 0.35 $ 0.29
31 Exhibit 22 STATUTORY EXPENSE RATIOS
- ------------------------------------------------------------------------------------------------------------------------------------ Three Months Ending As of December 31, March 31, 2001 2000 1999 1998 1997 --------- ---- ---- ---- ---- ---- 2002 2001 ---- ---- - ------------------------------------------------------------------------------------------------------------------------------------ PREMIUMS AND DEPOSITS (1) (6): MONY Life Insurance Company $ 161.2 $ 202.4 $ 786.3 $ 1,126.8 $ 900.0 $ 919.8 $ 1,003.0 MONY Life Insurance Company of America 194.5 212.8 910.5 1,549.7 1,361.0 774.3 770.6 ------- ------- --------- --------- --------- --------- --------- Total $ 355.7 $ 415.2 $ 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 $ 62.6 $ 58.1 $ 240.4 $ 261.1 $ 247.8 $ 308.2 $ 355.9 MONY Life Insurance Company of America 26.3 31.5 129.7 117.9 106.7 86.7 65.1 ------- ------- --------- --------- --------- --------- --------- Total $ 88.9 $ 89.6 $ 370.1 $ 379.0 $ 354.5 $ 394.9 $ 421.0 ======= ======= ========= ========= ========= ========= ========= LESS REAL ESTATE EXPENSES (3): MONY Life Insurance Company $ 3.5 $ 2.3 $ 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 $ 4.1 $ 2.9 $ 12.5 $ 25.2 $ 37.7 $ 59.5 $ 91.6 ======= ======= ========= ========= ========= ========= ========= Expenses (excluding real estate expenses) $ 84.8 $ 86.7 $ 357.6 $ 353.8 $ 316.8 $ 335.4 $ 329.4 ======= ======= ========= ========= ========= ========= ========= Expenses (excluding real estate expenses) to Net Premiums and Deposits 23.8% 20.9% 21.1% 13.2% 14.0% 19.8% 18.6% - ------------------------------------------------------------------------------------------------------------------------------------
(1) Full Year Results from Annual Statement Page 4, Line 1 for 2001. And Lines 1 and 1a for the years of 1997 to 2000. (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 $17 million and $71 for three month ended March 31, 2002 and 2001 respectively, $208 million, $998 million, and $742 million for the years ended December 31, 2001, 2000 and 1999 respectively. (7) Adjusted to exclude Reorganization and Other Charges of $24.3 million for the year ended December 31, 2001. 32 -----END PRIVACY-ENHANCED MESSAGE-----