-----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, ULW+0sJLzT/0yHZpUN1DMXDr0fRsfB2HGOqfe3X4AMmUQ7yNxf5kTRBMB0IWMQPi KkxiRin2XhxBGJUuzxhK3A== 0000950109-02-005543.txt : 20021107 0000950109-02-005543.hdr.sgml : 20021107 20021107084811 ACCESSION NUMBER: 0000950109-02-005543 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20021107 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20021107 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: 02811829 BUSINESS ADDRESS: STREET 1: 1740 BROADWAY CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 2127082000 8-K 1 d8k.txt THE MONY GROUP 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) - November 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 New York, New York 10019 (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 and Required FD Disclosure. On November 7, 2002, The MONY Group Inc. issued a News Release reporting its financial results for the third 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 November 7, 2002. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three and Nine Month Periods Ended September 30, 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: November 7, 2002 Exhibit Index 99.1 News Release of The MONY Group Inc., dated November 7, 2002. 99.2 Presentation entitled "The MONY Group Inc. Statistical Supplement as of and for the Three and Nine Month Periods Ended September 30, 2002 and 2001." EX-99.1 3 dex991.txt NEWS RELEASE OF THE MONY GROUP INC. Exhibit 99.1 [LOGO] The MONY Group Inc. News Release 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. Reports Third Quarter Results NEW YORK (November 7, 2002) - The MONY Group Inc. (NYSE: MNY) today reported results for the third quarter and first nine months of 2002. The company accelerated the amortization of deferred policy acquisition costs and increased death benefit reserves. These actions resulted in a cost of $8.0 million or $0.17 per share and contributed to the company's operating loss of $1.7 million or $0.04 per share for the quarter before venture capital losses. Venture capital losses amounted to $5.1 million or $0.11 per share for an operating loss of $6.8 million or $0.15 per share. These results reflect the poor performance of the equity markets over the third quarter. The company had net realized losses on investments of $23.4 million or $0.49 per share. The major components include a $7.9 million or $0.17 per share charge for venture capital losses and a $14.5 million or $0.31 per share charge due to a previously discussed reduction in the value of a hotel property. These factors contributed to a net loss for the quarter of $30.2 million or $0.64 per share. "The decline in accumulation assets under management led to the acceleration of deferred policy acquisition cost amortization, an increase in guaranteed minimum death benefit reserves and lower fees - all of which affected earnings," said Michael I. Roth, chairman and CEO, The MONY Group. "However, our life insurance and annuity sales increased and we experienced favorable mortality in our life insurance business. In addition, retail brokerage revenues increased due to higher fixed income and municipal bond sales and trading activity." 1 "While equity market performance is impossible to gauge, we are actively managing our business, adapting to the changing market conditions and we will improve our operating performance," added Mr. Roth. "Not only are we focused on organic growth but we will also take significant actions to improve efficiencies and reduce expenses." Third Quarter 2001 - ------------------ For the quarter ended September 30, 2001, operating income was $2.8 million or $0.06 per share before a venture capital loss. After the venture capital loss of $10.1 million or $0.21 per share, the company reported an operating loss of $7.3 million or $0.15 per share. The company had a net loss of $8.7 million or $0.18 per share including a $1.4 million or $0.03 per share net realized loss from investments. Nine-Month Results - ------------------ Operating income for the nine months ended September 30, 2002 was $22.2 million or $0.46 per share before venture capital results and one-time charges. These 2002 results include a $10.1 million or $0.21 per share charge for the acceleration of deferred policy acquisition costs and an increase in guaranteed minimum death benefit reserves for the company's variable annuity business. After a venture capital loss of $4.9 million or $0.10 per share and $4.5 million or $0.09 per share in fees and interest related to litigation, operating income was $12.8 million or $0.27 per share. The company reported a net loss of $26.9 million or $0.56 per share after realized losses on investments of $39.7 million or $0.83 per share. Operating income for the nine months ended September 30, 2001 was $35.2 million or $0.70 per share before venture capital results. After a venture capital loss of $9.1 million or $0.18 per share, operating income was $26.1 million or $0.52 per share. Net income for the nine months ended September 30, 2001 was $26.9 million or $0.53 per share. Developments: - ------------ 2 .. The Annuities Division of MONY Life Insurance Company introduced two new variable annuity products in October - `MONY C Variable Annuity' and `MONY L Variable Annuity.' Both products are competitive 401(k) rollover retirement vehicles with minimal-to-no sales load and low initial investment requirements. This follows the introduction of variable annuity and fixed annuity products earlier this year. .. Continuing to diversify its product portfolio, the Life Insurance Division of MONY Life Insurance Company introduced an interest sensitive whole life product (ISWL). MONY Life is now one of a select group of life insurance providers to offer this easy to understand, non-equity-based insurance option. .. The synergies among MONY member companies continued to expand. Advest continued to see strong demand for its managed account products by MONY Life financial professionals with $19.5 million in assets raised during the third quarter and $55.5 million year-to-date. MONY Life's fixed annuity was well-received by Advest and Advest is now the fourth largest seller of Enterprise mutual funds. .. The wholesaling division of MONY Life Insurance Company, MONY Partners, continued to strengthen its relationships with the brokerage community over the quarter, leading to $21 million in fixed annuity sales over the quarter. .. MONY Life Insurance Company's Life Insurance Division continued to streamline its underwriting process by improving application turn-around time, leading to greater efficiencies throughout the business. .. MONY Life Insurance Company's career agency system successfully implemented a new business approach including an enhanced compensation plan and a fee-for-service model, resulting in a more streamlined and competitive approach to managing the business. .. As of September 30, 2002, book value was $41.49 per share (excluding accumulated comprehensive income). 3 An earnings summary is as follows: ($ in million except share data and per share amount)
Three Months Three Months Nine Months Nine Months Ended 9/30/02 Ended 9/30/01 Ended 9/30/02 Ended 9/30/01 Operating (Loss) Income, excluding Venture Capital and Litigation Related Charges $(1.7) $2.8 $22.2 $35.2 Venture Capital Loss (5.1) (10.1) (4.9) (9.1) Litigation Related Charges 0 0 (4.5) 0 ---------- ---------- ---------- ----------- Operating (Loss) Income (6.8) (7.3) 12.8 26.1 Realized (Losses)/Gains from Investments (23.4) (1.4) (39.7) 0.8 ---------- ---------- ---------- ----------- Net (Loss) Income $(30.2) $(8.7) $(26.9) $26.9 ========== ========== ========== =========== Diluted Per Share Amounts (See Note 1): Operating (Loss) Income Before Venture Capital and Litigation $(0.04) $0.06 $0.46 $0.70 Related Charges Venture Capital Loss (0.11) (0.21) (0.10) (0.18) Litigation Related Charges 0 0 (0.09) 0 ---------- ---------- ---------- ----------- Operating (Loss) Income (0.15) (0.15) 0.27 0.52 Realized (Losses)/Gains from investments (0.49) (0.03) (0.83) 0.01 ---------- ---------- ---------- ----------- Net (Loss) Income $(0.64) $(0.18) $(0.56) $0.53 ========== ========== ========== =========== Share Data: Weighted-average shares outstanding 47,414,250 48,642,274 47,804,872 48,915,523 Plus: Incremental shares from assumed conversion of dilutive securities 0 0 0 1,597,601 ---------- ---------- ---------- ----------- Weighted-average shares used in diluted per-share calculations 47,414,250 48,642,274 47,804,872 50,513,124 ========== ========== ========== ==========
Note 1: 587,795, 1,315,776 and 1,634,471 incremental shares from the assumed - ------ conversion of dilutive securities were not included in the computation of per share amounts for the three and nine-month periods ended September 30, 2002 or for the three-month period ended September 30, 2001, respectively, because their inclusion would be antidilutive. 4 Business Segments Protection Segment - ------------------ Through its protection segment, The MONY Group sells a wide range of life insurance products (including whole, term, universal, variable universal, survivorship universal, last survivor variable universal, group universal life and interest sensitive whole life) to higher-income individuals, particularly small business owners, family builders and pre-retirees as well as corporations through its U.S. Financial Life Insurance Company (USFL) and MONY Life Insurance Company subsidiaries. Total new annualized and single life insurance premiums increased to $109 million for the third quarter of 2002 compared to $55 million during the third quarter of 2001. The increase was due to higher bank-owned life insurance (BOLI) sales that exceeded the company's expectations. For the first nine months of 2002, premiums increased to $219 million from $152 million during the comparable period in 2001. New life insurance premiums (first-year and single premiums) sold through the career agency system were $16 million compared with $23 million for the comparable quarter. Year-to-date premiums from the career agency system were $50 million, compared with $61 million for the first nine months of 2001. "Lower demand for variable universal life insurance led to a decline in career life insurance sales over the quarter," commented Mr. Roth. "Moving forward, MONY Life will enhance its non-equity based insurance offerings, the introduction of interest sensitive whole life being the latest example." U.S. Financial Life Insurance Company (USFL) premiums for the first nine months increased to $38 million during 2002 compared with $34 million during the same period last year. Quarter-over-quarter sales were basically flat at approximately $11 million. Accumulation Segment - -------------------- The MONY Group provides proprietary annuities and retail mutual funds through its career agency system, member companies and third-party broker-dealers. 5 With a 17 percent decline in the Dow Jones Industrial average during the quarter, assets under management declined to $7.3 billion as of September 30, 2002 from $8.2 billion as of June 30, 2002. New accumulation assets raised during the quarter were $382 million compared with $414 million for the third quarter of 2001. For the first nine months, new accumulation assets raised were flat at $1.3 billion. Higher annuities sales were offset by lower mutual fund sales. Annuity sales increased to $133 million during the third quarter of 2002 from $98 million during the third quarter of 2001 due to $48 million in sales for MONY Life's fixed annuity product. For the first nine months of 2002, annuity sales were $365 million compared to $272 million for the comparable year period. "The marketplace responded favorably to the introduction of our fixed annuity product with strong sales from our career agency system, Advest and brokerage channels," commented Mr. Roth. "On the brokerage side, the success of this product solidified relationships with many brokers and provided an entree for the sale of other life insurance and annuity products." The Enterprise Group of Funds had third quarter 2002 sales of $249 million, $205 million of which were sold by third-party broker-dealers and $44 million were sold through MONY Life's career agency system. Comparably, third quarter 2001 sales for Enterprise were $316 million, $244 million of which were from third-party broker dealers and $72 million from the career agency system. For the first nine months of 2002, Enterprise sales were $928 million, $745 million of which were sold by third-party broker-dealers and $183 million were sold through MONY Life's career agency system. For the first nine months of 2001, Enterprise sales were $1 billion, $749 million of which were sold by third-party broker-dealers and $288 million were sold through the career agency system. 6 Net inflows for variable annuities and mutual funds were $50 million during the first nine months of the year while the company experienced slight net outflows during the third quarter. Retail Brokerage & Investment Banking - ------------------------------------- The Retail Brokerage and Investment Banking segment includes securities brokerage, trading, investment banking, trust and asset management services to high-net worth individuals and small to mid-size business owner clients primarily through MONY's Advest, Matrix Capital Markets Group and MONY Securities Corp. subsidiaries. The Retail Brokerage and Investment Banking segment revenues increased to $95 million during the third quarter compared with $70 million during the comparable 2001 period. For the first nine months of 2002, revenues were $271 million compared with $239 million for the first nine months of 2001. Advest revenues were $84 million for the third quarter of 2002 compared to $60 million for the third quarter of 2001. For the first nine months of 2002, Advest revenues were $236 million compared with $204 million for the comparable period on a proforma basis to include January 2001. The increase was driven primarily by higher municipal bond and fixed income sales and trading activity and higher investment banking revenues. Results were also influenced by the events of September 11, 2001 and the addition of Lebenthal. MONY Securities Corp., a registered securities broker-dealer for MONY's career organization, revenues were flat quarter over quarter and for the first nine months of 2001 and 2002 at $10 million and $33 million, respectively. Business Outlook "We are committed to improving earnings and returning to profitability in 2003, notwithstanding the fact that the equity markets continue to impact our business," commented Mr. Roth. "We will be taking actions to reduce expenses and increase 7 efficiencies over the coming months -- while we continue to enhance our product and service offerings and effectively leverage our strong distribution channels." "We remain confident that our advice-based business model will continue to serve our shareholders well," continued Mr. Roth. "Through our strong capital position, high liquidity and experienced leadership, we are committed to delivering long-term value." Forward Looking Statements - -------------------------- This release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of l995, 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, changes in general economic conditions, including the performance of financial markets and interest rates, could negatively impact investment results; the company could be subjected to further downgrades by rating agencies; decreases in the fees earned from assets under management and the demand for variable products could result in significant write-offs of intangible assets; actual death claims experience could differ from our mortality assumptions; and litigation settlements and judgments could be larger than anticipated. The company does not undertake 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 $60 billion in assets under management and administration, is a financial services firm that manages a portfolio of member companies. These companies include MONY Life Insurance Company, The Advest Group, Inc., Enterprise Capital Management, Matrix Capital Markets Group, Inc., Lebenthal, a division of Advest, Inc., and U.S. Financial Life Insurance Company. These companies manufacture and distribute protection, asset accumulation and retail brokerage products and services to individuals, corporations and institutions through advisory and 8 wholesale distribution channels. Additional company information is available at www.mony.com. Note: The MONY Group Inc. will host a conference call to discuss 3Q 2002 financial results at 9:00 a.m. (EST) on Thursday, November 7, 2002. The call can be heard via the Investor Relations link at www.mony.com. ------------ 9 SUPPLEMENTAL FINANCIAL INFORMATION To assist interested parties in analyzing the Company's consolidated financial results attached is the following supplemental information: Exhibit I presents certain summary consolidated income statement data of The MONY Group for the three-month and nine-month periods ended September 30, 2002 and 2001. Exhibit II presents certain summary consolidated balance sheet data as of September 30, 2002. Exhibit III presents information regarding new business generated by the Company for the three-month and nine-month periods ended September 30, 2002 and 2001. 10 Exhibit I THE MONY GROUP INC. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENTS
($ in millions, except share data and per share Three Months Ended Nine Months Ended amounts) September 30, September 30, 2002 2001 2002 2001 Revenues: Premiums 160.5 162.0 494.8 500.5 Universal life and investment-type product policy fees 54.6 50.1 156.1 152.1 Net investment income 170.1 172.9 541.7 546.1 Net realized (losses)/gains on investments (41.2) 0.5 (69.1) 6.0 Group Pension Profits 6.8 8.0 22.0 27.2 Retail brokerage and investment banking 109.1 82.1 297.5 253.0 Other income 24.9 21.8 92.4 93.8 ------------- ------------ ------------- ------------ 484.8 497.4 1,535.4 1,578.7 Benefits and Expenses: Benefits to policyholders 195.3 203.9 585.5 596.1 Interest credited to policyholders' account balances 30.0 27.9 85.8 83.2 Amortization of deferred policy acquisition costs 49.6 32.9 120.5 98.4 Dividends to policyholders 53.4 54.5 171.8 169.7 Other operating costs and expenses 202.9 190.0 613.2 591.0 ------------- ------------ ------------- ------------ 531.2 509.2 1,576.8 1,538.4 (Loss)/Income before taxes (46.4) (11.8) (41.4) 40.3 Income tax (benefit)/expense (16.2) (3.1) (14.5) 13.4 ------------- ------------ ------------- ------------ Net (Loss)/Income (30.2) (8.7) (26.9) 26.9 Operating Income: Net (loss) income $ (30.2) $ (8.7) $ (26.9) $ 26.9 Net realized losses/(gains) from investments (after tax) 23.4 1.4 39.7 (0.8) ------------- ------------ ------------- ------------ Operating (loss) income (6.8) (7.3) 12.8 26.1 Litigation related charges - - 4.5 - Venture capital loss 5.1 10.1 4.9 9.1 ------------- ------------ ------------- ------------ Operating (loss) income excluding Venture Capital and Litigation Related Charges $ (1.7) $ 2.8 $ 22.2 $ 35.2 ============= ============ ============= ============ Diluted Per Share Amounts: Net (Loss) Income $ (0.64) $ (0.18) $ (0.56) $ 0.53 Operating (Loss) Income $ (0.15) $ (0.15) $ 0.27 $ 0.52 Operating (Loss) Income (excluding venture capital & litigation related charges) $ (0.04) $ 0.06 $ 0.46 $ 0.70 Share Data (see Note 1): Weighted-average Shares Outstanding 47,414,250 48,642,274 47,804,872 48,915,523 Plus: Incremental Shares from Assumed Conversion of Diluted Securities - - - 1,597,601 ------------- ------------ ------------- ------------ Weighted-average Shares in Diluted Per Share Calculations 47,414,250 48,642,274 47,804,872 50,513,124 ============= ============ ============= ============
Note 1: 587,795, 1,315,776 and 1,634,471 incremental shares from the assumed conversion of dilutive securities were not included in the computation of per share amounts for the three and nine-month periods ended September 30, 2002 or for the three-month period ended September 30, 2001, respectively, because their inclusion would be anti-dilutive. 11 Exhibit II SUMMARY CONSOLIDATED BALANCE SHEET DATA ($ in millions, except per share amounts) As of September 30, 2002 Assets: Invested assets (including cash and cash equivalents) $ 12,769.8 Assets transferred in the Group Pension Transaction 4,641.5 Separate account assets 4,018.6 Other assets 2,911.9 ------------- Total assets $ 24,341.8 ============= Liabilities: Policyholders' liabilities $ 10,806.1 Liabilities transferred in the Group Pension Transaction 4,562.8 Separate account liabilities 4,015.8 Short-term debt 7.0 Long-term debt 883.2 Other liabilities 1,998.5 ------------- Total liabilities 22,273.4 ------------- Shareholders' equity: Equity 1,958.9 Accumulated comprehensive income 109.5 ------------- Total shareholders' equity 2,068.4 ------------- Total liabilities and shareholders' equity $ 24,341.8 ============= Per share amounts: Diluted book value per share $ 43.81 ============= Diluted book value per share (Ex. Accumulated Comprehensive Income) $ 41.49 ============= 12 Exhibit III SEGMENT INFORMATION The following chart presents MONY's protection and accumulation sales for the quarter as well as revenue generated from the company's retail brokerage and investment banking segment.
Three-Month Three-Month Nine-Month Nine-Month Period Ended Period Ended Period Ended Period Ended 9/30/02 9/30/01 9/30/02 9/30/01 ------------- ------------ ------------ ----------- New Business ($ millions) Protection Products - ------------------- Career Agency System $15.7 $22.6 $49.7 $60.9 U.S. Financial Life Insurance Company 10.9 11.7 37.8 34.2 Complementary Distribution/1/ 82.1 20.5 131.2 56.8 ------ ----- ------ ------ Total New Life Insurance Premiums $108.7 $54.8 $218.7 $151.9 ====== ===== ====== ====== Accumulation Products - --------------------- Variable Annuities $85 $98 $317 $272 Fixed Annuities/2/ 48 -- 48 -- Career Agency System - Mutual Funds 44 72 183 288 Third Party Distribution - Mutual Funds 205 244 745 749 ------ ----- ------ ------ Total Accumulation $382 $414 $1,293 $1,309 ====== ===== ====== ====== Revenues ($ millions) - -------------------- Retail Brokerage & - ------------------ Investment Banking - ------------------ Advest/3,4/ $84.2 $60.2 $236.4 $203.7 MONY Securities Corp. 10.4 10.0 33.0 33.1 Other 0.5 0.1 1.3 2.0 ------ ----- ------ ------ Total Revenue $95.1 $70.3 $270.7 $238.8 ====== ===== ====== ======
/1/ primarily corporate- and bank-owned life insurance /2/ $27 million were sold through retail channels and $21 million were sold through the brokerage channel /3/ The Advest acquisition closed on February 1, 2001. This amount is proforma to include January 2001. /4/ Lebenthal, acquired by Advest in late 2001, and Babson, acquired by Advest on May 31, 2002, account for approximately $6.9 million and $16.4 million of revenue in the third quarter and first nine months of 2002 respectively. 13 EX-99.2 4 dex992.txt THE MONY GROUP INC. STATISTICAL SUPPLEMENT 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 Product/Reconciling 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 Bank Securities Inc. ..... Vanessa Wilson ..... (212) 469-7351 Dowling & Partners Securities, LLC ..... Paul Goulekas ..... (860) 676-8600 Fox-Pitt, Kelton, Inc. ..... Ronald McIntosh ..... (212) 687-1105 Goldman Sachs ..... Joan Zief ..... (212) 902-6778 Keefe, Bruyette & Woods, Inc. ..... Jeffrey Schuman ..... (860) 722-5902 Langen McAlenney ..... Robert Glasspiegel ..... (860) 724-1203 Lehman Brothers Inc. ..... E. Stewart Johnson ..... (212) 526-8190 Philo Smith & Co., Inc. ..... James Inglis ..... (203) 348-7365 Putnam Lovell NOF ..... Al Capra ..... (212) 546-7640 SalomonSmithBarney ..... Colin Devine ..... (212) 816-1682 Sandler O'Neil & Partners, L.P. ..... Nick Pirsos ..... (212) 466-7929 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 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 A+ BBB+ A.M. (3) A.M. Best Best A a- Moody's Moody's A2 Baa2 Fitch Fitch A+ 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 Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions, except per share amounts) - ---------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED INCOME STATEMENT DATA: Net (loss)/income $ (30.2) (8.7) $ (26.9) $ 26.9 Net realized losses/(gains) on investments (after-tax) 23.4 1.4 39.7 (0.8) -------------- -------------- -------------- -------------- Operating (loss)/income: (6.8) (7.3) 12.8 26.1 Litigation related charges (after-tax) - - 4.5 - Venture capital loss/(income) (after-tax) 5.1 10.1 4.9 9.1 -------------- -------------- -------------- -------------- Operating (loss)/income, excluding venture capital and litigation related charges: $ (1.7) 2.8 $ 22.2 $ 35.2 ============== ============== =============== =============== PER SHARE CALCULATIONS: NET (LOSS)/INCOME PER SHARE: Basic $ (0.64) $ (0.18) $ (0.56) $ 0.55 Diluted $ (0.64) $ (0.18) $ (0.56) $ 0.53 OPERATING (LOSS)/INCOME PER SHARE: Basic (0.15) $ (0.15) $ 0.27 $ 0.53 Diluted $ (0.15) $ (0.15) $ 0.27 $ 0.52 OPERATING (LOSS)/INCOME, EXCLUDING VENTURE CAPITAL INCOME AND LITIGATION RELATED CHARGES: Basic $ (0.04) $ 0.06 $ 0.46 $ 0.72 Diluted $ (0.04) $ 0.06 $ 0.46 $ 0.70 Share Data Weighted-average shares outstanding used in basic per share calculations 47,414,250 48,642,274 47,804,872 48,915,523 Plus: Incremental shares from assumed conversion of dilutive securities (1) - - - 1,597,601 -------------- -------------- -------------- -------------- Weighted-average shares used in diluted per share calculations 47,414,250 48,642,274 47,804,872 50,513,124 ============== ============== =============== =============== OTHER DATA: Employee count 3,498 3,800 Career agent count (Domestic and International) 1,631 2,176 US Financial Life Brokerage General Agencies 224 236 Trusted Advisors Registered Representatives 511 472 Active Enterprise Selling Agreements 452 448 Advest Financial Advisors 518 472
(1) 587,795; 1,315,776; and 1,634,471 shares from assumed conversion of dilutive securities were not included in the computation of per share amounts for the three and nine-months periods ended September 30, 2002 and for the three-month period ended September 30, 2001, respectively because to do so would be antidilutive. 4 (Unaudited) SUMMARY FINANCIAL INFORMATION - CONTINUED
- ------------------------------------------------------------------------------------------------------------------------- September 30, December 31, 2002 2001 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET DATA Invested assets (including cash and cash equivalents) $ 12,769.8 $ 11,826.5 Assets transferred in Group Pension Transaction 4,641.5 4,650.4 Separate accounts assets 4,018.6 5,195.2 Other assets 2,911.9 3,984.5 ------------- ------------ Total Assets $ 24,341.8 $ 25,656.6 Policyholders' liabilities $ 10,806.1 $ 10,488.2 Liabilities transferred in Group Pension Transaction 4,562.8 4,597.1 Separate account liabilities 4,015.8 5,192.3 Short term debt 7.0 320.0 Long term debt 883.2 583.1 Other liabilities 1,998.5 2,423.7 ------------- ------------ Total Liabilities 22,273.4 23,604.4 Equity 1,958.9 2,014.1 Accumulated comprehensive income (ACI) 109.5 38.1 ------------- ------------ Total Shareholders' Equity 2,068.4 2,052.2 ------------- ------------ Total Liabilities and Shareholders' Equity $ 24,341.8 $ 25,656.6 ============= ============ SHARE DATA: Diluted book value per share $ 43.81 $ 41.55 Diluted book value per share (excluding accumulated comprehensive income) $ 41.49 $ 40.78 CAPITALIZATION: Long-term debt $ 883.2 $ 583.1 Shareholders' Equity (Excluding ACI) 1,958.9 2,014.1 ------------- ------------ Total capitalization $ 2,842.1 $ 2,597.2 ============= ============ Debt as Percent of Total Capitalization 31.1% 22.5% ============= ============ STATUTORY DATA: Capital and Surplus $ 726.5 $ 917.4 Asset Valuation Reserve (AVR) 217.9 201.0 ------------- ------------ Total Capital and Surplus plus AVR $ 944.4 $ 1,118.4 ============= ============
5 Exhibit 1 (Unaudited) CONSOLIDATED INCOME STATEMENT DATA (1)
- ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 160.5 $ 162.0 $ 494.8 $ 500.5 Universal life and investment-type product policy fees 54.6 50.1 156.1 152.1 Net investment income 170.1 172.9 541.7 546.1 Net realized (losses)/gains on investments (41.2) 0.5 (69.1) 6.0 Group Pension Profits 6.8 8.0 22.0 27.2 Retail Brokerage and Investment Banking 109.1 82.1 297.5 253.0 Other income 24.9 21.8 92.4 93.8 --------------- -------------- --------------- --------------- 484.8 497.4 1,535.4 1,578.7 --------------- -------------- --------------- --------------- BENEFITS AND EXPENSES: Benefits to policyholders 195.3 203.9 585.5 596.1 Interest credited to policyholders account balances 30.0 27.9 85.8 83.2 Amortization of deferred policy acquisition costs 49.6 32.9 120.5 98.4 Dividends to policyholders 53.4 54.5 171.8 169.7 Other operating costs and expenses 202.9 190.0 613.2 591.0 --------------- -------------- --------------- --------------- 531.2 509.2 1,576.8 1,538.4 --------------- -------------- --------------- --------------- (Loss)/Income before income tax (46.4) (11.8) (41.4) 40.3 Income tax (benefit)/expense (16.2) (3.1) (14.5) 13.4 --------------- -------------- --------------- --------------- Net (Loss)/Income $ (30.2) $ (8.7) $ (26.9) $ 26.9 =============== ============== =============== =============== - -----------------------------------------------------------------------------------------------------------------------------------
(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. 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 STATEMENT DATA
- -------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) ($ millions) - -------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 155.9 $ 159.1 $ 480.8 $ 490.5 Universal life and investment-type product policy fees 42.9 38.4 118.4 110.0 Net investment income 146.0 138.1 445.1 437.5 Group Pension Profits 6.8 8.0 22.0 27.2 Other income (11.2) (5.7) (8.0) 0.7 -------- -------- -------- -------- Total revenues 340.4 337.9 1,058.3 1,065.9 -------- -------- -------- -------- BENEFITS AND EXPENSES: Benefits to policyholders 174.5 191.3 534.0 558.6 Interest credited to policyholder account balances 15.8 15.5 46.2 45.6 Amortization of deferred policy acquisition costs 32.4 25.7 89.6 80.9 Dividends to policyholders 52.8 53.9 170.0 167.8 Other operating costs and expenses 42.6 44.2 152.3 162.4 -------- -------- -------- -------- Total benefits and expenses 318.1 330.6 992.1 1,015.3 -------- -------- -------- -------- Pre-tax operating income 22.3 7.3 66.2 50.6 Net realized (losses)/gains on investments (31.3) 1.3 (49.9) 5.4 -------- -------- -------- -------- Pre-tax (loss)/income $ (9.0) $ 8.6 $ 16.3 $ 56.0 ======== ======== ======== ======== OPERATING INCOME RECONCILIATION: Pre tax operating income $ 22.3 $ 7.3 $ 66.2 $ 50.6 Policyholder dividends resulting from closed block realized (losses)/gains (5.1) 2.7 (8.0) 4.7 -------- -------- -------- -------- Operating Income $ 17.2 $ 10.0 $ 58.2 $ 55.3 ======== ======== ======== ======== - --------------------------------------------------------------------------------------------------------------------------------
(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.
Three-Months Ended Nine-Months Ended September 30, September 30, ($ millions) 2002 2001 2002 2001 --------- --------- --------- --------- Operating Income $ 17.2 $ 10.0 $ 58.2 $ 55.3 Litigation related charges - - 5.5 - Venture Capital losses 6.5 11.3 6.2 10.3 --------- --------- --------- --------- Operating Income excluding venture capital and litigation related charges $ 23.7 $ 21.3 $ 69.9 $ 65.6 ========= ========= ========= =========
8 Exhibit 4A (Unaudited) GROUP PENSION PROFIT SUMMARY INCOME STATEMENT
- -------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, INCOME STATEMENT DATA: 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) ($ millions) - -------------------------------------------------------------------------------------------------------- REVENUES: Policy product fees $ 4.4 $ 4.8 $ 13.7 $ 14.3 Net investment income 21.8 25.0 67.6 78.0 Net realized (losses)/gains on investments (0.3) 1.3 (0.2) 4.9 ------- ------- -------- -------- Total revenues 25.9 31.1 81.1 97.2 ------- ------- -------- -------- BENEFITS AND EXPENSES: Interest credited to policyholder account balances 15.8 19.1 48.2 56.2 Other operating costs and expenses 3.3 4.0 10.9 13.8 ------- ------- -------- -------- Total benefits and expenses 19.1 23.1 59.1 70.0 ------- ------- -------- -------- Group Pension Profits $ 6.8 $ 8.0 $ 22.0 $ 27.2 ======= ======= ======== ========
ASSETS AND LIABILITIES TRANSFERRED IN GROUP PENSION TRANSACTION - ------------------------------------------------------------------------------------------- September 30, December 31, 2002 2001 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed maturities $ 1,406.1 $ 1,400.5 Mortgage loans on real estate - 26.5 Cash and cash equivalents 23.0 19.4 Other Assets 21.9 24.5 ----------- ----------- Total general account assets 1,451.0 1,470.9 Separate account assets 3,190.5 3,179.5 ----------- ----------- Total Assets $ 4,641.5 $ 4,650.4 =========== =========== Liabilities: General Account Policyholder account balances and other liabilities $ 1,372.3 $ 1,417.6 Separate account liabilities 3,190.5 3,179.5 ----------- ----------- Total Liabilities $ 4,562.8 $ 4,597.1 =========== ===========
9 Exhibit 4B (Unaudited) CLOSED BLOCK INCOME STATEMENT
- ---------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) ($ millions) - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 119.4 $ 129.8 $ 367.4 $ 397.3 Net investment income 101.0 100.0 297.7 299.0 Net realized (losses)/gains on investments (5.1) 2.7 (8.0) 4.7 Other income 0.7 0.5 1.6 1.5 ----------- ----------- ---------- ---------- Total revenues 216.0 233.0 658.7 702.5 ----------- ----------- ---------- ---------- BENEFITS AND EXPENSES: Benefits to policyholders 135.9 151.7 410.7 445.1 Interest credited to policyholders account balances 2.1 2.3 6.3 6.5 Amortization of deferred policy acquisition costs 12.9 13.9 37.1 46.1 Dividends to policyholders 54.0 53.9 170.2 167.3 Operating costs and expenses 1.4 1.6 4.5 5.7 ----------- ----------- ---------- ---------- Total benefits and expenses 206.3 223.4 628.8 670.7 ----------- ----------- ---------- ---------- Closed Block Profit $ 9.7 $ 9.6 $ 29.9 $ 31.8 =========== =========== ========== ==========
CLOSED BLOCK ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------- September 30, December 31, 2002 2001 ---- ---- ($ millions) - ------------------------------------------------------------------------------------------- BALANCE SHEET DATA: Assets: General Account Fixed maturities $ 4,257.2 $ 3,868.9 Mortgage loans on real estate 556.7 622.1 Real estate to be disposed of 8.1 - Amounts due from broker 1.0 6.2 Policy loans 1,114.6 1,144.3 Cash and cash equivalents 39.6 56.2 Premiums receivable 6.8 12.5 Deferred policy acquisition costs 445.6 500.6 Other assets 224.6 219.3 ----------- ---------- Total closed block assets $ 6,654.2 $ 6,430.1 =========== ========== Liabilities: General Account Future policy benefits $ 6,886.3 $ 6,869.8 Policyholders' account balances 290.9 292.9 Other policyholders' liabilities 158.8 162.2 Other liabilities 366.6 163.9 ----------- ---------- Total closed block liabilities $ 7,702.6 $ 7,488.8 =========== ==========
10 Exhibit 4C (Unaudited) FIXED MATURITIES BY CREDIT QUALITY - CLOSED BLOCK PUBLIC FIXED MATURITIES BY CREDIT QUALITY
- ------------------------------------------------------------------------------------------------------------------------------------ As of Year Ended September 30, 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 $ 1,666.1 74.4% $ 1,815.2 $ 1,589.1 76.7% $ 1,631.6 2 Baa 457.5 19.9% 484.5 391.3 18.8% 399.6 3 Ba 118.2 4.7% 112.8 93.1 4.1% 86.2 4 B 36.9 0.9% 21.6 5.0 0.2% 4.9 5 Caa and lower 0.0% 5.0 0.2% 5.1 6 In or near default 3.1 0.1% 3.5 0.6 0.0% 0.5 ---------- ----- ---------- ---------- ----- ---------- Subtotal 2,281.8 100.0% 2,437.6 2,084.1 100.0% 2,127.9 Redeemable preferred stock - 0.0% - - 0.0% - ---------- ----- ---------- ---------- ----- ---------- Total Public Fixed Maturities $ 2,281.8 100.0% $ 2,437.6 $ 2,084.1 100.0% $ 2,127.9 ========== ===== ========== ========== ===== ========== PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------------------------ As of Year Ended September 30, 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 $ 746.1 44.5% $ 809.0 $ 845.3 50.3% $ 875.1 2 Baa 732.7 43.8% 797.5 742.5 43.6% 759.5 3 Ba 155.8 8.7% 157.6 83.6 4.8% 83.3 4 B 38.9 2.0% 36.5 17.8 1.0% 17.1 5 Caa and lower 16.0 0.5% 9.5 7.5 0.3% 6.0 6 In or near default 10.8 0.5% 9.5 - 0.0% - ---------- ----- ---------- ---------- ----- ---------- Subtotal 1,700.3 100.0% 1,819.6 1,696.7 100.0% 1,741.0 Redeemable preferred stock - 0.0% - - 0.0% - ---------- ----- ---------- ---------- ----- ---------- Total Private Fixed Maturities $ 1,700.3 100.0% $ 1,819.6 $ 1,696.7 100.0% $ 1,741.0 ========== ===== ========== ========= ===== ========== TOTAL FIXED MATURITIES BY CREDIT QUALITY - ------------------------------------------------------------------------------------------------------------------------------------ As of Year Ended September 30, 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 $ 2,412.2 61.6% $ 2,624.2 $ 2,434.4 64.8% $ 2,506.7 2 Baa 1,190.2 30.1% 1,282.0 1,133.8 29.9% 1,159.1 3 Ba 274.0 6.4% 270.4 176.7 4.4% 169.5 4 B 75.8 1.4% 58.1 22.8 0.6% 22.0 5 Caa and lower 16.0 0.2% 9.5 12.5 0.3% 11.1 6 In or near default 13.9 0.3% 13.0 0.6 0.0% 0.5 ---------- ----- ---------- ---------- ----- ---------- Subtotal 3,982.1 100.0% 4,257.2 3,780.8 100.0% 3,868.9 Redeemable preferred stock - 0.0% - - 0.0% - ---------- ----- ---------- ---------- ----- ---------- Total Fixed Maturities $ 3,982.1 100.0% $ 4,257.2 $ 3,780.8 100.0% $ 3,868.9 ========== ===== ========== ========== ===== ========== - ------------------------------------------------------------------------------------------------------------------------------------
11 Exhibit 5 (Unaudited) PROTECTION PRODUCTS SEGMENT NEW ANNUALIZED AND SINGLE PREMIUMS AND INFORCE
- --------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2002 2001 2002 20001 ---- ---- ---- ----- ($ millions) ($ millions) - --------------------------------------------------------------------------------------------------------------------- PROTECTION BUSINESS SALES: Traditional life $ 1.7 $ 0.9 $ 3.3 $ 1.9 Term 10.8 10.7 32.2 29.1 Universal life 8.5 8.3 27.5 20.7 Variable universal life 9.0 15.0 29.7 43.8 Corporate owned life insurance 78.2 19.6 124.7 55.4 Group universal life 0.5 0.3 1.3 1.0 ----------- ----------- ----------- ----------- Total $ 108.7 $ 54.8 $ 218.7 $ 151.9 =========== =========== =========== ===========
- --------------------------------------------------------------------------------------------------- As of September 30, December 31, 2002 2001 ---- ---- - --------------------------------------------------------------------------------------------------- Insurance In Force ($ in millions except number of policies) - --------------------------------------------------------------------------------------------------- Traditional Life (1): Number of policies (in thousands) 841.2 857.3 GAAP life reserves $ 7,433.8 $ 7,374.8 Face amounts $ 79,568.8 $ 73,678.2 Universal Life: Number of policies (in thousands) 73.8 74.7 GAAP life reserves $ 747.3 $ 711.2 Face amounts $ 10,844.9 $ 10,843.6 Variable Universal Life: Number of policies (in thousands) 67.6 65.9 GAAP life reserves $ 811.9 $ 772.0 Face amounts $ 18,720.8 $ 18,231.2 Group Universal Life: Number of policies (in thousands) 42.1 43.9 GAAP life reserves $ 68.6 $ 66.7 Face amounts $ 1,494.7 $ 1,571.4 Total: Number of policies (in thousands) 1,024.7 1,041.8 GAAP life reserves $ 9,061.6 $ 8,924.7 Face amounts $ 110,629.2 $ 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 Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) - ------------------------------------------------------------------------------------------------------------------- LIFE INSURANCE: Traditional Life (1): First year & single $ 42.4 $ 45.2 $ 126.7 $ 132.5 Renewal 116.9 113.5 359.3 351.5 ------- ------- ------- ------- Total $ 159.3 $ 158.7 $ 486.0 $ 484.0 ======= ======= ======= ======= Universal Life: First year & single $ 9.4 $ 8.8 $ 27.1 $ 20.3 Renewal 24.3 22.9 71.9 71.7 ------- ------- ------- ------- Total $ 33.7 $ 31.7 $ 99.0 $ 92.0 ======= ======= ======= ======= Variable Universal Life: First year & single $ 10.5 $ 17.6 $ 37.2 $ 52.2 Renewal 28.0 24.3 81.5 68.9 ------- ------- ------- ------- Total $ 38.5 $ 41.9 $ 118.7 $ 121.1 ======= ======= ======= ======= Corporate Sponsored Variable Universal Life: First year & single $ 70.5 $ 23.7 $ 101.8 $ 49.8 Renewal 4.7 13.4 27.2 42.0 ------- ------- ------- ------- Total $ 75.2 $ 37.1 $ 129.0 $ 91.8 ======= ======= ======= ======= Group Universal Life: First year & single $ 0.3 $ 0.4 $ 1.1 $ 1.5 Renewal 2.6 2.6 7.9 8.0 ------- ------- ------- ------- Total $ 2.9 $ 3.0 $ 9.0 $ 9.5 ======= ======= ======= ======= Total life insurance $ 309.6 $ 272.4 $ 841.7 $ 798.4 ======= ======= ======= ======= - -------------------------------------------------------------------------------------------------------------------
(1) Consists of whole life and term policies 13 Exhibit 7 ACCUMULATION PRODUCTS SEGMENT - ------------------------------------------------------------------------------- The Accumulation Products segment represents fixed annuities, single premium deferred annuities, immediate annuities, flexible payment variable annuities and proprietary retail mutual funds. - ------------------------------------------------------------------------------- 14 Exhibit 8 (Unaudited) ACCUMULATION PRODUCTS SEGMENT INCOME STATEMENT DATA
- ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 2.3 $ 1.0 $ 7.1 $ 3.4 Universal life and investment-type product policy fees 11.6 12.5 36.3 42.0 Net investment income 18.4 18.6 60.1 56.9 Other income 21.6 23.5 73.2 76.7 -------------------- -------------------- ------------------- ------------------- Total revenues 53.9 55.6 176.7 179.0 -------------------- -------------------- ------------------- ------------------- BENEFITS AND EXPENSES: Benefits to policyholders 10.8 7.3 29.4 19.1 Interest credited to policyholder account balances 12.0 10.4 33.2 31.0 Amortization of deferred policy acquisition costs 17.2 7.2 30.9 17.5 Dividends to policyholders 0.4 0.5 1.0 1.2 Other operating costs and expenses 29.0 29.6 88.4 86.9 -------------------- -------------------- ------------------- ------------------- Total benefits and expenses 69.4 55.0 182.9 155.7 -------------------- -------------------- ------------------- ------------------- Pre-tax operating (loss)/income (15.5) 0.6 (6.2) 23.3 Net realized (losses)/gains on investments (7.3) 0.1 (14.5) 2.3 -------------------- -------------------- ------------------- ------------------- Pre-tax (loss)/income $ (22.8) $ 0.7 $ (20.7) $ 25.6 ==================== ==================== =================== =================== - ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, ($ millions) 2002 2001 2002 2001 ==================== ==================== =================== =================== Operating (loss)/income $ (15.5) $ 0.6 $ (6.2) $ 23.3 Litigation related charges - - 1.0 - Venture Capital losses 1.1 2.2 1.1 1.9 -------------------- -------------------- ------------------- ------------------- Operating (loss)/income excluding venture capital and litigation related charges $ (14.4) $ 2.8 $ (4.1) $ 25.2 ==================== ==================== =================== ===================
15 Exhibit 9 (Unaudited) ACCUMULATION PRODUCTS SEGMENT ASSETS UNDER MANAGEMENT
- ----------------------------------------------------------------------------------------------------------------------------------- September 30, September 30, December 31, 2002 2001 2001 ($ billions) - ----------------------------------------------------------------------------------------------------------------------------------- ACCUMULATION SEGMENT: Assets under management Individual variable annuities $ 3.1 $ 3.5 $ 3.9 Individual fixed annuities 0.7 0.7 0.7 Proprietary retail mutual funds 3.5 4.0 4.4 ---------------------- -------------------- -------------------- $ 7.3 $ 8.2 $ 9.0 ====================== ==================== ==================== Three-Months Ended Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ billions) ($ billions) RECONCILIATION IN ACCOUNT VALUE: VARIABLE ANNUITY: Beginning account value $ 3.5 $ 4.0 $ 3.9 $ 4.4 Sales 0.1 0.1 0.3 0.3 Market appreciation (0.3) (0.5) (0.7) (0.8) Mortality and expense (0.0) (0.0) (0.0) (0.0) Surrenders and withdrawals (0.1) (0.1) (0.3) (0.3) ---------------------- -------------------- -------------------- ----------------- $ 3.1 $ 3.5 $ 3.1 $ 3.5 ====================== ==================== ==================== ================= ENTERPRISE GROUP OF FUNDS: Beginning account value $ 4.0 $ 4.5 $ 4.4 $ 4.8 Sales 0.2 0.3 0.9 1.0 Dividends reinvested 0.0 0.0 0.0 0.0 Market appreciation (0.5) (0.6) (1.0) (1.0) Redemptions (0.3) (0.3) (0.9) (0.9) ---------------------- -------------------- -------------------- ----------------- Ending account value $ 3.5 $ 4.0 $ 3.5 $ 4.0 ====================== ==================== ==================== =================
16 Exhibit 10 RETAIL BROKERAGE AND INVESTMENT BANKING - ------------------------------------------------------------------------------- The Retail Brokerage and Investment Banking segment is comprised of results of the Company's subsidiaries, The Advest Group, Inc. ("AGI"), Matrix Capital Markets Group ("Matrix") and MONY Securities Corp. ("MSC"). AGI 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 Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) ($ millions) - ------------------------------------------------------------------------------------------------------------------------- REVENUES: Net investment income $ (5.1) $ 2.1 $ 0.3 $ 5.2 Retail brokerage and investment banking 109.1 82.1 297.5 253.0 Other income (0.3) - 0.7 - -------------- -------------- -------------- -------------- Total revenues 103.7 84.2 298.5 258.2 -------------- -------------- -------------- -------------- BENEFITS AND EXPENSES: Other operating costs and expenses 102.2 93.5 297.1 271.3 -------------- -------------- -------------- -------------- Total benefits and expenses 102.2 93.5 297.1 271.3 -------------- -------------- -------------- -------------- Pre-tax operating income/(loss) 1.5 (9.3) 1.4 (13.1) Net realized losses on investments - - - (0.2) -------------- -------------- -------------- --------------- Pre-tax income/(loss) $ 1.5 $ (9.3) $ 1.4 $ (13.3) ============== ============== ============== ===============
18 Exhibit 12 (Unaudited) RETAIL BROKERAGE AND INVESTMENT BANKING INCOME STATEMENT DETAIL
Three-Months Ended Nine-Months Ended September 30, September 30, ---------------------------- --------------------------- REVENUES: 2002 2001 2002 2001 ------- ------- -------- -------- ($ millions) ($ millions) Commissions $ 39.3 $ 35.7 $ 124.7 $ 103.1 Interest 9.0 13.9 27.1 46.5 Principal transactions 31.7 17.2 79.0 55.2 Asset management and administration 6.8 12.8 32.9 35.2 Investment banking 16.0 2.9 30.0 12.2 Other 0.9 1.7 4.8 5.8 ------- ------- -------- -------- Total revenues 103.7 84.2 298.5 258.0 ------- ------- -------- -------- EXPENSES: Compensation 56.7 48.7 167.5 136.6 Interest 5.7 9.6 16.2 32.1 Goodwill and other intangible amortization 1.0 3.4 3.1 9.2 Other 38.8 31.8 110.3 93.4 ------- ------- -------- -------- Total expenses 102.2 93.5 297.1 271.3 ------- ------- -------- -------- Pre-tax income/(loss) $ 1.5 $ (9.3) $ 1.4 (13.3) ======= ======= ======== ======== - ----------------------------------------------------------------------------------------------------------
ADVEST - NET INTEREST ADVEST - NET INTEREST Three-Months Ended Nine-Months Ended September 30, 2002 September 30, 2001 September 30, 2002 September 30, 2001 ----------------------- ---------------------- ----------------------- -------------------- ($ millions) ($ millions) ------------ ------------ Net Interest Income - Interest Income: Brokerage customers (1) $ 3.6 40.0% $ 6.8 48.9% $ 11.7 43.2% $ 20.9 44.9% Stock borrowed (1) 1.2 13.2% 5.4 38.8% 3.6 13.3% 19.0 40.9% Investments 0.1 1.1% 0.2 1.4% 0.2 0.7% 0.5 1.2% Security inventory 3.3 36.7% 2.0 14.4% 8.5 31.3% 4.8 10.3% Other 0.8 9.0% (0.5) -3.5% 3.1 11.5% 1.3 2.7% ----------------------- ---------------------- ----------------------- ------------------ $ 9.0 100.0% $ 13.9 100.0% $ 27.1 100.0% $ 46.5 100.0% ----------------------- ---------------------- ----------------------- ------------------ Interest Expense: Stock loaned (1) 3.8 66.7% 5.9 61.5% 9.9 61.1% 19.4 60.4% Brokerage customers 1.6 28.1% 0.7 7.3% 4.7 29.0% 2.9 9.0% Borrowings 0.3 5.2% 3.0 31.2% 1.3 8.0% 9.6 30.0% Other - 0.0% - 0.0% 0.3 1.9% 0.2 0.6% ----------------------- ---------------------- ----------------------- ------------------ 5.7 100.0% 9.6 100.0% 16.2 100.0% 32.1 100.0% ----------------------- ---------------------- ----------------------- ------------------ Net interest income $ 3.3 36.7% $ 4.3 30.9% $ 10.9 40.2% $ 14.4 31.0% ======================= ====================== ======================= ==================
(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 September 30, 2002 -------------------- Client Assets ( in millions) * $ 30,849.2 Number of Client Accounts (in thousands) 276 * Includes assets managed under fee-based programs of approximately $5,714 million. 19 Exhibit 13 OTHER PRODUCTS SEGMENT - ------------------------------------------------------------------------------- The Company's Other Products segment primarily consists of an insurance brokerage operation and the Run-Off businesses. The insurance brokerage operation provides the Company's career agency sales force with access to non-variable life, annuity, small group health and specialty insurance products written by other carriers to meet the insurance and investment needs of its customers. The Run-Off Businesses primarily consist of group life and health insurance as well as the group pension business that was not included in the Group Pension Transaction. - ------------------------------------------------------------------------------- RECONCILING AMOUNTS - ------------------------------------------------------------------------------- The reconciling amounts include certain benefits for the Company's benefit plans, the results of the holding companies and certain non-recurring items. - ------------------------------------------------------------------------------- 20 Exhibit 14 (Unaudited) OTHER/RECONCILING PRODUCTS SEGMENT INCOME STATEMENT DATA
- ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ millions) ($ millions) - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 2.3 $ 1.9 $ 6.9 $ 6.6 Universal life and investment-type product policy fees 0.1 (0.8) 1.4 0.1 Net investment income 10.8 14.1 36.2 46.5 Other income 14.8 4.0 26.5 16.4 ----------- ----------- ----------- ----------- Total revenues 28.0 19.2 71.0 69.6 ----------- ----------- ----------- ----------- BENEFITS AND EXPENSES: Benefits to policyholders 10.0 5.3 22.1 18.4 Interest credited to policyholder account balances 2.2 2.0 6.4 6.6 Dividends to policyholders 0.2 0.1 0.8 0.7 Other operating costs and expenses 29.1 22.7 75.4 70.4 ----------- ----------- ----------- ----------- Total benefits and expenses 41.5 30.1 104.7 96.1 ----------- ----------- ----------- ----------- Pre-tax operating loss (13.5) (10.9) (33.7) (26.5) Net realized losses on investments (2.6) (0.9) (4.7) (1.5) ----------- ----------- ----------- ----------- Pre-tax loss $ (16.1) $ (11.8) $ (38.4) $ (28.0) =========== =========== =========== =========== - ----------------------------------------------------------------------------------------------------------------------------------- Three-Months Ended Nine-Months Ended September 30, September 30, ($ millions) 2002 2001 2002 2001 ----------- ----------- ----------- ----------- Operating Loss $ (13.5) $ (10.9) $ (33.7) $ (26.5) Litigation related charges - - 0.3 - Venture Capital losses 0.3 2.0 0.3 1.8 ----------- ----------- ----------- ----------- Operating Loss excluding venture capital $ (13.2) $ (8.9) $ (33.1) $ (24.7) =========== =========== =========== ===========
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 September 30, 2002 December 31, 2001 Carrying % of Carrying % of Value Total Value Total ----- ----- ----- ----- INVESTED ASSETS ($ Millions) - ------------------------------------------------------------------------------------------------------------------------------- Fixed Maturities, Available for Sale $ 7,913.6 66.4% $ 6,976.0 62.8% Fixed Maturities, Held to Maturity 0.1 0.0% 0.1 0.0% Equity Securities, Available for Sale 252.4 2.1% 299.2 2.7% Mortgage Loans on Real Estate 1,741.3 14.6% 1,809.7 16.3% Policy Loans 1,206.7 10.1% 1,229.0 11.1% Real Estate to be Disposed Of 158.8 1.3% 172.3 1.6% Real Estate Held for Investment 54.3 0.5% 58.5 0.5% Other Invested Assets 140.5 1.2% 116.7 1.0% Cash and Cash Equivalents 451.1 3.8% 441.0 4.0% -------------------------------------------------------------------------- Invested Assets, excluding Trading Securities $11,918.8 100.0% $11,102.5 100.0% ==========================================================================
The Exhibit above includes invested assets in the Closed Block and excludes Trading Securities in Advest. 23 Exhibit 17 (Unaudited) INVESTMENT RESULTS BY ASSET CATEGORY-COMBINED BASIS
- --------------------------------------------------------------------------------------------------------------------------- Three Months Ended Three Months Ended Nine Months Ended September 30, 2002 September 30, 2001 September 30, 2002 Yield (2) Amount Yield (2) Amount Yield (1) Amount --------- ------ --------- ------ --------- ------ ($ millions) ($ millions) ($ millions) ($ millions) - --------------------------------------------------------------------------------------------------------------------------- FIXED MATURITIES (4) Investment Income 6.6% $ 120.4 7.6% $ 124.8 6.9% $ 369.5 Realized Gains (losses) -0.3% (4.9) 0.3% 4.9 -0.3% (16.6) Total 6.3% $ 115.5 7.9% $ 129.7 6.6% $ 352.9 ---------------------------- --------------------------- ---------------------------- Ending Assets $ 7,429.5 $ 6,568.6 $ 7,429.5 ---------------------------- --------------------------- ---------------------------- EQUITY SECURITIES Investment Income -10.8% $ (7.3) -18.5% $ (14.7) -2.9% $ (5.9) Realized Gains (losses) -24.6% (16.7) -2.3% (1.8) -10.7% (22.2) Total -35.4% $ (24.0) -20.8% $ (16.5) -13.6% $ (28.1) ---------------------------- --------------------------- ---------------------------- Ending Assets $ 252.4 $ 310.5 $ 252.4 ---------------------------- --------------------------- ---------------------------- MORTGAGE LOANS 7.7% $ 33.8 8.0% $ 35.5 7.8% $ 103.5 Realized Gains (losses) 0.6% 2.8 -0.1% (0.4) 0.1% 1.2 Total 8.3% $ 36.6 7.9% $ 35.1 7.9% $ 104.7 ---------------------------- --------------------------- ---------------------------- Ending Assets $ 1,741.3 $ 1,814.5 $ 1,741.3 ---------------------------- --------------------------- ---------------------------- REAL ESTATE (3) Investment Income 3.5% $ 2.0 6.0% $ 3.3 7.8% $ 13.0 Realized Gains (losses) -41.1% (23.4) -1.2% (0.6) -20.3% (33.7) Total -37.6% $ (21.4) 4.8% $ 2.7 -12.5% $ (20.7) ---------------------------- --------------------------- ---------------------------- Ending Assets $ 213.1 $ 223.7 $ 213.1 ---------------------------- --------------------------- ---------------------------- POLICY LOANS Investment Income 6.9% $ 20.7 7.1% $ 22.0 7.0% $ 63.6 Realized Gains (losses) 0.0% - 0.0% $ - 0.0% - Total 6.9% $ 20.7 7.1% $ 22.0 7.0% $ 63.6 ---------------------------- --------------------------- ---------------------------- Ending Assets $ 1,206.7 $ 1,244.8 $ 1,206.7 ---------------------------- --------------------------- ---------------------------- CASH AND CASH EQUIVALENTS Investment Income 2.6% $ 2.8 4.1% $ 6.9 2.2% $ 7.6 Realized Gains (losses) 0.0% (0.0) 0.0% $ 0.0 0.0% (0.0) Total 2.6% $ 2.8 4.1% $ 6.9 2.2% $ 7.6 ---------------------------- --------------------------- ---------------------------- Ending Assets $ 451.1 $ 618.7 $ 451.1 ---------------------------- --------------------------- ---------------------------- OTHER INVESTED ASSETS Investment Income 9.8% $ 3.2 9.1% $ 3.4 12.6% $ 12.1 Realized Gains (losses) 2.8% 0.9 -4.0% $ (1.5) 2.3% 2.2 Total 12.6% $ 4.1 5.1% $ 1.9 14.9% $ 14.3 ---------------------------- --------------------------- ---------------------------- Ending Assets $ 140.5 $ 142.1 $ 140.5 ---------------------------- --------------------------- ---------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 6.2% $ 175.6 6.6% $ 181.1 6.7% $ 563.4 Realized Gains (losses) -1.4% (41.2) 0.0% 0.5 -0.8% (69.1) Total 4.8% $ 134.4 6.6% $ 181.6 5.9% $ 494.3 ---------------------------- --------------------------- ---------------------------- Ending Assets $ 11,434.6 $ 10,923.0 $ 11,434.6 ---------------------------- --------------------------- ---------------------------- Other Fee Income 0.1% $ 2.2 0.1% $ 1.4 0.1% $ 6.5 Investment expense -0.3% $ (7.6) -0.4% $ (9.6) -0.3% $ (28.1) TOTAL AFTER INVESTMENT EXPENSES Investment Income 6.0% $ 170.1 6.3% $ 173.0 6.5% $ 541.7 Realized Gains (losses) -1.4% (41.2) 0.0% 0.5 -0.8% (69.1) Total 4.5% $ 128.9 6.3% $ 173.5 5.7% $ 472.6 ---------------------------- --------------------------- ---------------------------- Ending Assets 11,434.6 10,923.0 11,434.6 ---------------------------- --------------------------- ---------------------------- Net unrealized gains (losses) on fixed maturities 484.2 221.2 484.2 ---------------------------- --------------------------- ---------------------------- Total invested assets $ 11,918.8 $ 11,144.2 $ 11,918.8 ============================ =========================== ============================ - --------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------- Nine Months Ended Year Ended September 30, 2001 December 31, 2001 Yield (1) Amount Yield (1) Amount --------- ------ --------- ------ ($ millions) ($ millions) - -------------------------------------------------------------------------------------------- FIXED MATURITIES (4) Investment Income 7.5% $ 372.6 7.3% $ 492.5 Realized Gains (losses) 0.2% 12.4 0.0% (2.6) Total 7.7% $ 385.0 7.3% $ 489.9 ---------------------------- --------------------------- Ending Assets $ 6,568.6 $ 6,833.0 ---------------------------- --------------------------- EQUITY SECURITIES Investment Income -5.4% $ (13.0) -10.8% $ (33.9) Realized Gains (losses) -3.0% (7.1) -2.5% (7.8) Total -8.4% $ (20.1) -13.3% $ (41.7) ---------------------------- --------------------------- Ending Assets $ 310.5 $ 299.2 ---------------------------- --------------------------- MORTGAGE LOANS 7.8% $ 104.9 7.8% $ 139.8 Realized Gains (losses) 0.4% 4.7 0.5% 9.3 Total 8.2% $ 109.6 8.3% $ 149.1 ---------------------------- --------------------------- Ending Assets $ 1,814.5 $ 1,809.7 ---------------------------- --------------------------- REAL ESTATE (3) Investment Income 6.5% $ 10.6 4.3% $ 9.5 Realized Gains (losses) -1.9% (3.2) -2.4% (5.2) Total 4.6% $ 7.4 1.9% $ 4.3 ---------------------------- --------------------------- Ending Assets $ 223.7 $ 230.8 ---------------------------- --------------------------- POLICY LOANS Investment Income 6.9% $ 65.0 6.9% $ 86.5 Realized Gains (losses) 0.0% - 0.0% - Total 6.9% $ 65.0 6.9% $ 86.5 ---------------------------- --------------------------- Ending Assets $ 1,244.8 $ 1,229.0 ---------------------------- --------------------------- CASH AND CASH EQUIVALENTS Investment Income 4.9% $ 26.4 4.4% $ 29.3 Realized Gains (losses) 0.0% 0.0 -0.1% (0.8) Total 4.9% $ 26.4 4.3% $ 28.5 ---------------------------- --------------------------- Ending Assets $ 618.7 $ 441.0 ---------------------------- --------------------------- OTHER INVESTED ASSETS Investment Income 7.8% $ 7.1 8.4% $ 9.1 Realized Gains (losses) -1.0% (0.9) -4.7% (5.1) Total 6.8% $ 6.2 3.7% $ 4.0 ---------------------------- --------------------------- Ending Assets $ 142.1 $ 116.7 ---------------------------- --------------------------- TOTAL BEFORE INVESTMENT EXPENSES Investment Income 6.9% $ 573.5 6.6% $ 732.8 Realized Gains (losses) 0.1% 6.0 -0.1% (12.3) Total 7.0% $ 579.5 6.5% $ 720.5 ---------------------------- --------------------------- Ending Assets $ 10,923.0 $ 10,959.4 ---------------------------- --------------------------- Other Fee Income 0.0% $ 3.6 0.0% $ 5.3 Investment expense -0.4% $ (31.0) -0.4% $ (46.1) TOTAL AFTER INVESTMENT EXPENSES Investment Income 6.6% $ 546.1 6.2% $ 692.1 Realized Gains (losses) 0.1% 6.0 -0.1% (12.3) Total 6.7% $ 552.1 6.1% $ 679.8 ---------------------------- --------------------------- Ending Assets 10,923.0 10,959.4 ---------------------------- --------------------------- Net unrealized gains (losses) on fixed maturities 221.2 143.1 ---------------------------- --------------------------- Total invested assets $ 11,144.2 $ 11,102.5 ============================ =========================== - --------------------------------------------------------------------------------------------
(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 $851 million and results are excluded from the yield calculation. 24 Exhibit 18A (Unaudited) FIXED MATURITIES BY CREDIT QUALITY
PUBLIC FIXED MATURITIES BY CREDIT QUALITY - ---------------------------------------------------------------------------------------------------------------- As of Year Ended September 30, 2002 December 31, 2001 NAIC Rating Agency Amortized % of Estimated Amortized % of Estimated Rating Equivalent Designation Cost Total Fair Value Cost Total Fair Value - ------ ---------------------- ---- ----- ---------- ---- ----- ---------- ($ millions) - ---------------------------------------------------------------------------------------------------------------- 1 Aaa/Aa/A $ 3,175.6 73.1% $ 3,433.8 $ 2,730.4 73.8% $ 2,806.4 2 Baa 903.0 20.4% 958.8 769.5 20.6% 784.9 3 Ba 215.7 4.5% 209.3 161.9 4.1% 155.3 4 B 83.8 1.3% 58.9 37.9 1.1% 40.8 5 Caa and lower 6.0 0.1% 6.1 15.5 0.4% 15.0 6 In or near default 5.3 0.1% 5.6 1.8 0.0% 1.9 --------- ----- --------- --------- ----- --------- Subtotal 4,389.4 99.5% 4,672.5 3,717.0 100.0% 3,804.3 Redeemable preferred stock 23.6 0.5% 25.7 1.0 0.0% 0.9 --------- ----- --------- --------- ----- --------- Total Public Fixed Maturities $ 4,413.0 100.0% $ 4,698.2 $ 3,718.0 100.0% $ 3,805.2 ========= ===== ========= ========= ===== ========= PRIVATE FIXED MATURITIES BY CREDIT QUALITY - ---------------------------------------------------------------------------------------------------------------- As of Year Ended September 30, 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 $ 1,000.6 33.7% $ 1,087.1 $ 1,077.5 35.1% $ 1,113.7 2 Baa 1,520.9 51.0% 1,641.0 1,620.7 51.9% 1,645.8 3 Ba 351.2 11.0% 352.6 270.6 8.5% 269.3 4 B 73.1 2.2% 69.5 63.2 1.9% 62.0 5 Caa and lower 16.4 0.3% 9.8 20.2 0.6% 18.6 6 In or near default 22.4 0.7% 21.2 4.5 0.2% 5.7 --------- ----- --------- --------- ----- --------- Subtotal 2,984.6 98.9% 3,181.2 3,056.7 98.2% 3,115.1 Redeemable preferred stock 32.0 1.1% 34.3 54.6 1.8% 55.8 --------- ----- --------- --------- ----- --------- Total Private Fixed Maturities $ 3,016.6 100.0% $ 3,215.5 $ 3,111.3 100.0% $ 3,170.9 ========= ===== ========= ========= ===== ========= TOTAL FIXED MATURITIES BY CREDIT QUALITY - ---------------------------------------------------------------------------------------------------------------- As of Year Ended September 30, 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 $ 4,176.2 57.1% $ 4,520.9 $ 3,807.9 56.2% $ 3,920.1 2 Baa 2,423.9 32.9% 2,599.8 2,390.2 34.8% 2,430.7 3 Ba 566.9 7.1% 561.9 432.5 6.1% 424.6 4 B 156.9 1.6% 128.4 101.1 1.5% 102.8 5 Caa and lower 22.4 0.2% 15.9 35.7 0.5% 33.6 6 In or near default 27.7 0.3% 26.8 6.3 0.1% 7.6 --------- ----- --------- --------- ----- --------- Subtotal 7,374.0 99.2% 7,853.7 6,773.7 99.2% 6,919.4 Redeemable preferred stock 55.6 0.8% 60.0 55.6 0.8% 56.7 --------- ----- --------- --------- ----- --------- Total Fixed Maturities $ 7,429.6 100.0% $ 7,913.7 $ 6,829.3 100.0% $ 6,976.1 ========= ===== ========= ========= ===== ========= - ----------------------------------------------------------------------------------------------------------------
The Exhibit above includes invested assets in the Closed Block and excludes Trading Securities in Advest. 25 Exhibit 18B (Unaudited) FIXED MATURITIES BY INDUSTRY - --------------------------------------------------------------------------------
As of September 30, 2002 ------------------------ ($ millions) - --------------------------------------------------------------------------------------------------------------------------- Industry Public % Private % Total % - -------- ------ - ------- - ----- - Consumer Goods & Services $ 588.7 12.5% $ 800.1 25.1% $ 1,388.8 17.6% Other Manufacturing 182.8 3.9% 653.6 20.4% 836.4 10.7% Government & Agency 820.6 17.5% 0.0 0.0% 820.6 10.4% Non-Government- Asset/Mortgage Backed 528.9 11.3% 264.5 8.2% 793.4 10.0% Public Utilities 484.6 10.3% 277.1 8.6% 761.7 9.6% Financial Services 251.5 5.4% 350.2 10.9% 601.7 7.6% Banks 501.8 10.7% 45.5 1.4% 547.3 6.9% Transportation/Aerospace 331.2 7.0% 178.2 5.5% 509.4 6.4% Energy 254.2 5.4% 224.0 7.0% 478.2 6.0% Mortgage Backed-Government & Agency 347.5 7.4% 1.0 0.0% 348.5 4.4% Nat/Res/Manuf(non-energy) 119.4 2.5% 219.6 6.8% 339.0 4.3% Media/Adver/Printing 50.0 1.1% 110.8 3.4% 160.8 2.0% Other 133.8 2.8% 16.9 0.5% 150.7 1.9% Telecommunications 87.3 1.9% 14.0 0.4% 101.3 1.3% Cable Television 15.9 0.3% 33.0 1.0% 48.9 0.6% Bank Holding Companies 0.0 0.0% 27.0 0.8% 27.0 0.3% ---------------------------------------------------------------- ------ Total $ 4,698.2 100.0% $ 3,215.5 100.0% $ 7,913.7 100.0% ================================================================ ====== 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% Other Manufacturing 523.4 13.8% 269.7 8.5% 793.1 11.4% Government & Agency 436.4 11.4% 303.4 9.6% 739.8 10.6% Non-Government- Asset/Mortgage Backed 168.0 4.4% 504.8 15.9% 672.8 9.6% Public Utilities 222.5 5.8% 372.0 11.7% 594.5 8.5% Financial Services 467.8 12.3% 42.4 1.3% 510.2 7.3% Banks 303.4 8.0% 198.5 6.3% 501.9 7.2% Transportation/Aerospace 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% Other 100.4 2.6% 20.3 0.7% 120.7 1.7% Telecommunications 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 (1):
- ------------------------------------------------------------------------------------------------------------------------------------ As of As of September 30, 2002 December 31, 2001 ------------------ ----------------- ($ in millions) ($ in millions) ==================================================================================================================================== Equity Method Public common stock $ 10.8 $ 9.0 Private common stock 72.8 83.6 ------- ------ Sub-total 83.6 92.6 ------- ------ Cost Method Public common stock 19.8 22.0 Private common stock 89.6 115.1 ------- ------ Sub-total 109.4 137.1 ------- ------ Total Venture Capital Partnership Investments $ 193.0 $229.7 ======= ======
(1) Includes other net assets included on partnerships financial statements (e.g. cash, receivables, misc. payables, etc.) VENTURE CAPITAL PARTNERSHIP INVESTMENTS BY SECTOR:
- ------------------------------------------------------------------------------------------------------------------------------------ As of As of September 30, 2002 December 31, 2001 ------------------ ----------------- ($ Millions) % ($ Millions) % ==================================================================================================================================== Information Technology $ 94.0 48.7% $107.5 46.8% Domestic LBO 44.8 23.2% 50.4 22.0% Life Sciences 6.0 3.1% 20.0 8.7% Telecommunications 13.3 6.9% 8.6 3.7% International LBO 4.3 2.2% 14.0 6.1% Merchant Banking 13.2 6.8% 11.9 5.2% Other 17.4 9.1% 17.3 7.5% ------ ------ ------ ------ Total Venture Capital Partnership Investments by Sector $193.0 100.0% $229.7 100.0% ====== ====== ====== ======
27 Exhibit 19 (Unaudited) PROBLEM, POTENTIAL PROBLEM AND RESTRUCTURED COMMERCIAL MORTGAGES AT CARRYING VALUE
==================================================================================================== As of As of September 30, December 31, 2002 2001 ---- ---- ($ millions) ==================================================================================================== Total Commercial Mortgages $ 1,433.3 $ 1,507.7 ========= ========= Problem commercial mortgages (1) - 16.3 Potential problem commercial mortgages 50.2 64.5 Restructured commercial mortgages 24.0 57.9 --------- --------- Total problem, potential problem and restructured commercial mortgages $ 74.2 $ 138.7 ========= ========= Total problem, potential problem and restructured commercial mortgages as % of total commercial mortgages 5.2% 9.2% ==== ==== Valuation allowances/writedowns (2) Problem loans $ - $ 4.6 Potential problem loans 6.5 8.4 Restructured loans 4.5 4.7 --------- --------- Total valuation allowances/writedowns $ 11.0 $ 17.7 ========= ========= Total valuation allowances as a percent of problem, potential problem and restructured commercial mortgages at carrying value before valuation allowances and writedowns 12.9% 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 ----- ----- September 30, December 31, 2002 2001 ---- ---- ($ millions) ================================================================================ TYPE Real estate $ 170.5 $ 186.5 ------- ------- Subtotal 170.5 186.5 Foreclosed 42.6 44.3 ------- ------- Total $ 213.1 $ 230.8 ======= ======= 29 Exhibit 20B (Unaudited) MORTGAGES AND REAL ESTATE
================================================================================================== As of As of September 30, 2002 December 31, 2001 ------------------ ----------------- ($ millions) ($ millions) ================================================================================================== Geographic Region Southeast $ 436.3 22.2% $ 449.1 22.0% West 350.9 18.0% 361.6 17.7% Northeast 236.5 12.1% 274.1 13.4% Mountain 374.9 19.2% 414.2 20.3% Midwest 335.5 17.2% 336.2 16.5% Southwest 220.3 11.3% 205.3 10.1% -------- ----- -------- ----- $1,954.4 100% $2,040.5 100% ======== ===== ======== ===== As of As of September 30, 2002 December 31, 2001 ------------------ ----------------- ($ millions) ($ millions) ================================================================================================== Property Type: Office Buildings $ 815.5 41.7% $ 873.3 42.8% Agricultural 309.4 15.8% 304.9 14.9% Hotel 279.2 14.3% 297.8 14.6% Retail 147.9 7.6% 138.8 6.8% Industrial 159.1 8.1% 156.6 7.7% Other 120.4 6.2% 135.1 6.6% Apartment Buildings 122.9 6.3% 134.0 6.6% -------- ----- -------- ----- $1,954.4 100% $2,040.5 100% ======== ===== ======== =====
The Exhibit above includes invested assets in the Closed Block. 30 Exhibit 21 (Unaudited) HISTORICAL QUARTERLY DATA
- -------------------------------------------------------------------------------------------------------------------------------- Q3'02 Q2'02 Q1'02 2001 ($ millions, except per share amounts) - -------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums 160.5 $ 169.9 $ 164.4 $ 695.3 Universal life and investment-type product policy fees 54.6 52.5 49.0 207.2 Net investment income 170.1 181.9 189.7 692.1 Net realized (losses)/gains on investments (41.2) (25.5) (2.4) (12.3) Group pension profits 6.8 7.5 7.7 30.7 Retail brokerage and investment banking 109.1 97.6 90.8 343.5 Other income 24.9 29.3 38.2 147.1 ---------------------------------------------------------- Total revenues 484.8 513.2 537.4 2,103.6 ---------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 195.3 199.5 190.7 814.7 Interest credited to policyholder account balances 30.0 27.9 27.9 110.5 Amortization of deferred policy acquisition costs 49.6 38.0 32.8 158.8 Dividends to policyholders 53.4 56.8 61.5 236.6 Other operating costs and expenses 202.9 207.1 203.4 876.4 ---------------------------------------------------------- Total benefits and expenses 531.2 529.3 516.3 2,197.0 ---------------------------------------------------------- (Loss)/Income before income taxes and extraordinary item (46.4) (16.1) 21.1 (93.4) Income tax (benefit)/expense (16.2) (5.1) 6.8 (32.6) ---------------------------------------------------------- Net (loss)/income $ (30.2) $ (11.0) $ 14.3 $ (60.8) ========================================================== Net (loss)/income $ (30.2) $ (11.0) $ 14.3 $ (60.8) Realized losses included in the 4th quarter charge - - - 13.1 Net realized losses/(gains) on investments (after-tax) 23.4 15.5 0.9 (1.2) ---------------------------------------------------------- Operating (loss)/income (6.8) 4.5 15.2 (48.9) Other Charges - 4.5 - 81.9 Venture capital loss/(income) 5.1 3.0 (3.3) 9.1 ---------------------------------------------------------- Operating (loss)/income as adjusted: $ (1.7) $ 12.0 $ 11.9 $ 42.1 ========================================================== Number of Shares Used in Per Share Calculations: BASIC 47,414,250 47,994,628 48,012,310 48,608,378 DILUTED 47,414,250 47,994,628 49,737,205 48,608,378 Net (Loss)/Income Per Share: BASIC $ (0.64) $ (0.23) $ 0.30 $ (1.25) DILUTED $ (0.64) $ (0.23) $ 0.29 $ (1.25) Operating (loss)/income BASIC $ (0.14) $ 0.09 $ 0.32 $ (1.01) DILUTED $ (0.14) $ 0.09 $ 0.31 $ (1.01) Operating (loss)/income as adjusted: BASIC $ (0.04) $ 0.25 $ 0.25 $ 0.87 DILUTED $ (0.04) $ 0.25 $ 0.24 $ 0.87
HISTORICAL QUARTERLY DATA
- -------------------------------------------------------------------------------------------------------------------------------- Q4'01 Q3'01 Q2'01 Q1'01 ($ millions, except per share amounts) - -------------------------------------------------------------------------------------------------------------------------------- REVENUES: Premiums $ 194.8 $ 162.0 $ 173.4 $ 165.1 Universal life and investment-type product policy fees 55.1 50.1 52.3 49.7 Net investment income 146.0 172.9 189.5 183.7 Net realized gains on investments (18.3) 0.5 3.0 2.5 Group pension profits 3.5 8.0 9.3 9.9 Retail Brokerage and Investment Banking 90.5 82.1 99.8 71.1 Other income 53.3 21.8 41.7 30.3 ---------------------------------------------------------- Total revenues 524.9 497.4 569.0 512.3 ---------------------------------------------------------- BENEFITS AND EXPENSES: Benefits to policyholders 218.6 203.9 194.5 197.7 Interest credited to policyholder account balances 27.3 27.9 27.0 28.3 Amortization of deferred policy acquisition costs 60.4 32.9 28.3 37.2 Dividends to policyholders 66.9 54.5 60.6 54.6 Other operating costs and expenses 285.4 190.0 226.8 174.2 ---------------------------------------------------------- Total benefits and expenses 658.6 509.2 537.2 492.0 ---------------------------------------------------------- Income/(Loss) before income taxes and extraordinary item (133.7) (11.8) 31.8 20.3 Income tax (benefit)/expense (46.0) (3.1) 9.5 7.0 ---------------------------------------------------------- Net (loss)/income $ (87.7) $ (8.7) $ 22.3 $ 13.3 ========================================================== Net (loss)/income $ (87.7) $ (8.7) $ 22.3 $ 13.3 Realized losses included in the 4th quarter charge 13.1 - - - Net realized gains/(losses) on investments (after-tax) (0.4) 1.4 (0.6) (1.6) ---------------------------------------------------------- Operating income/(loss) (75.0) (7.3) 21.7 11.7 Other Charges 81.9 - - - Venture capital loss/(income) - 10.1 (4.1) 3.1 ---------------------------------------------------------- Operating income as adjusted: $ 6.9 $ 2.8 $ 17.6 $ 14.8 ========================================================== Number of Shares Used in Per Share Calculations: BASIC 47,786,913 48,642,274 49,363,512 48,720,335 DILUTED 47,786,913 48,642,274 50,913,099 50,314,782 Net (Loss)/Income Per Share: BASIC $ (1.84) $ (0.18) $ 0.45 $ 0.27 DILUTED $ (1.84) $ (0.18) $ 0.44 $ 0.26 Operating income/(loss) BASIC $ (1.57) $ (0.15) $ 0.44 $ 0.24 DILUTED $ (1.57) $ (0.15) $ 0.43 $ 0.23 Operating income as adjusted: BASIC $ 0.14 $ 0.06 $ 0.36 $ 0.30 DILUTED $ 0.14 $ 0.06 $ 0.35 $ 0.29
31 Exhibit 22 STATUTORY EXPENSE RATIOS
======================================================================================================================= Three Months Ending Nine Months Ending September 30, September 30, As of December 31, ------------ ------------ 2002 2001 2002 2001 2001 2000 1999 1998 1997 ---- ---- ---- ---- ---- ---- ---- ---- ---- PREMIUMS AND DEPOSITS(1)(6)(8): MONY Life Insurance Company $188.5 $209.2 $ 559.6 $ 613.4 $ 860.2 $1,126.8 $ 900.0 $ 919.8 $1,003.0 MONY Life Insurance Company of America 279.3 228.0 714.8 678.1 910.5 1,549.7 1,361.0 774.3 770.6 ------ ------ -------- -------- -------- -------- -------- -------- -------- Total $467.8 $437.2 $1,274.4 $1,291.5 $1,770.7 $2,676.5 $2,261.0 $1,694.1 $1,773.6 ====== ====== ======== ======== ======== ======== ======== ======== ======== GENERAL EXPENSES (2)(4)(5)(7): MONY Life Insurance Company $ 48.5 $ 56.2 $ 161.5 $ 174.8 $ 240.4 $ 261.1 $ 247.8 $ 308.2 $ 355.9 MONY Life Insurance Company of America 37.3 32.5 102.3 97.0 129.7 117.9 106.7 86.7 65.1 ------ ------ -------- -------- -------- -------- -------- -------- -------- Total $ 85.8 $ 88.7 $ 263.8 $ 271.8 $ 370.1 $ 379.0 $ 354.5 $ 394.9 $ 421.0 ====== ====== ======== ======== ======== ======== ======== ======== ======== LESS REAL ESTATE EXPENSES(3): MONY Life Insurance Company $ 4.9 $ 2.6 $ 13.4 $ 7.4 $ 9.9 $ 22.5 $ 34.9 $ 56.3 $ 86.2 MONY Life Insurance Company of America 0.7 0.7 2.2 2.0 2.6 2.7 2.8 3.2 5.4 ------ ------ -------- -------- -------- -------- -------- -------- -------- Total $ 5.6 $ 3.3 $ 15.6 $ 9.4 $ 12.5 $ 25.2 $ 37.7 $ 59.5 $ 91.6 ====== ====== ======== ======== ======== ======== ======== ======== ======== Expenses (excluding real estate expenses) $ 80.2 $ 85.4 $ 248.2 $ 262.4 $ 357.6 $ 353.8 $ 316.8 $ 335.4 $ 329.4 ====== ====== ======== ======== ======== ======== ======== ======== ======== Expenses (excluding real estate expenses) to Net Premiums and Deposits 17.1% 19.5% 19.5% 20.3% 20.2% 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 $19 million and $37 for three month ended September 30, 2002 and 2001 respectively, $52 million and $180 million for nine month period ended September 30, 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. (8) Beginning in 2001, contributions relating to contracts issued by an insurer that do not incorporate mortality or morbidity risk (deposit-type contracts) are not reported as premium and deposits, but are accounted for as deposit liabilities. In prior years these amounts were reported as premium and deposits. Contributions for deposit-type contracts of $73.9 million for the year ended December 31, 2001, $60.8 million and $67.2 million for the nine months ended September 30, 2002 and 2001, respectively, and $27.0 million and $24.7 million for the three months September 30, 2002 and 2001, respectively, have been included as premiums and deposits for purposes of the presentation above. 32 -----END PRIVACY-ENHANCED MESSAGE-----