-----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, HmluMiyxpp7t+H2DKSyXMNb0VxyemRGh8S+0TEZ+HCj1Inq/R4HBRdllGlS3bI7I 4H3uJnjK0IsmSkG9jUf3YQ== 0000002648-96-000020.txt : 19960416 0000002648-96-000020.hdr.sgml : 19960416 ACCESSION NUMBER: 0000002648-96-000020 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960402 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960415 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AETNA LIFE & CASUALTY CO CENTRAL INDEX KEY: 0000002648 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 060843808 STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05704 FILM NUMBER: 96547259 BUSINESS ADDRESS: STREET 1: 151 FARMINGTON AVE CITY: HARTFORD STATE: CT ZIP: 06156 BUSINESS PHONE: 8602730123 MAIL ADDRESS: STREET 1: 151 FARMINGTON AVE STREET 2: FINANCIAL YF8H CITY PLACE CITY: HARTFORD STATE: CT ZIP: 06156 8-K 1 LIVE FILING 1 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) April 2, 1996 ___________________ Aetna Life and Casualty Company _______________________________________________________________________ (Exact name of registrant as specified in its charter) Connecticut _______________________________________________________________________ (State or other jurisdiction of incorporation) 1-5704 06-0843808 _______________________________________________________________________ (Commission File Number) (I.R.S. Employer Identification No.) 151 Farmington Avenue, Hartford, Connecticut 06156 _______________________________________________________________________ (Address of principal executive offices) (ZIP Code) Registrant's telephone number, including area code (860) 273-0123 __________________ Not Applicable _______________________________________________________________________ (Former Name or Former Address, if Changed Since Last Report) 2 TABLE OF CONTENTS _________________ Page ____ Item 2. Acquisition or Disposition of Assets. 3 Item 7(b). Pro Forma Financial Information. 3 Item 7(c). Exhibits. 3 Signatures 8 3 Item 2. Acquisition or Disposition of Assets. On April 2, 1996, Aetna Life and Casualty Company (the "company") completed the previously announced sale of its property-casualty operations to Travelers/Aetna Property Casualty Corp. (Travelers) (a company newly formed by The Travelers Insurance Group Inc.) for total consideration of approximately $4.1 billion in cash. The purchase price was determined through arms-length negotiations between the parties. Item 7(b). Pro Forma Financial Information. The following unaudited pro forma condensed consolidated statement of income of Aetna Life and Casualty Company for the year ended December 31, 1995, presents results for the company as if its sale of The Aetna Casualty and Surety Company and The Standard Fire Insurance Company and their subsidiaries (the "Companies") to Travelers had occurred as of January 1, 1995. The accompanying unaudited pro forma condensed consolidated balance sheet as of December 31, 1995 gives effect to the sale as if it had occurred as of December 31, 1995. The unaudited pro forma data does not purport to represent what the company's financial position or results of operations actually would have been had the sale in fact occurred on the dates indicated, or to project the company's financial position or results of operations for any future date or period. The pro forma adjustments are based on available information and certain assumptions that the company currently believes are reasonable in the circumstances. Further, the pro forma adjustments related to the pro forma condensed consolidated statement of income do not give effect to any nonrecurring/unusual restructuring charges resulting from the sale. The unaudited pro forma condensed consolidated financial information should be read in conjunction with the accompanying notes thereto, and the separate historical financial statements of the company as of and for the year ended December 31, 1995 which are contained in the company's annual report on Form 10-K for the fiscal year ended December 31, 1995. The pro forma adjustments and pro forma amounts are provided for informational purposes only, and the company's financial statements will reflect the effects of the sale from April 2, 1996, the date of such sale. Item 7(c). Exhibits. Stock Purchase Agreement dated as of November 28, 1995 between The Travelers Insurance Group Inc. and Aetna Life and Casualty Company relating to the purchase and sale of 100% of the Common Stock of The Aetna Casualty and Surety Company and The Standard Fire Insurance Company, incorporated herein by reference to the company's 1995 Form 10-K filed on February 26, 1996. 4 Aetna Life and Casualty Company Unaudited Pro Forma Condensed Consolidated Statement Of Income For the Year Ended December 31, 1995 (in millions, except share and per share data)
Pro Forma Historical Adjustments As Adjusted __________ ___________ ___________ Revenue: Premiums $ 7,431.4 $ - $ 7,431.4 Net investment income, including net realized capital gains 3,622.3 214.1 (a) 3,836.4 Fees and other income 1,924.3 - 1,924.3 _____________________________________________ Total revenue 12,978.0 214.1 13,192.1 _______________________________________________________________________________________________ Benefits and Expenses: Current and future benefits 9,027.2 - 9,027.2 Operating expenses 3,087.5 17.0 (b) 3,104.5 Amortization of deferred policy acquisition costs 137.1 - 137.1 Restructuring costs - - (c) - _____________________________________________ Total benefits and expenses 12,251.8 17.0 12,268.8 _______________________________________________________________________________________________ Income from continuing operations before income taxes (benefits) 726.2 197.1 923.3 Income taxes (benefits) 252.3 (5.9)(b) 321.3 74.9 (a) _____________________________________________ Income from continuing operations 473.9 128.1 602.0 Loss from Discontinued Operations, net of tax (222.2) 222.2 (d) - _____________________________________________ Net Income $ 251.7 $ 350.3 $ 602.0 _______________________________________________________________________________________________ _______________________________________________________________________________________________ Results Per Common Share: Income from continuing operations $ 4.16 $ 5.28 Loss from Discontinued Operations, net of tax (1.95) - __________ __________ Net Income $ 2.21 $ 5.28 ____________________________________________________________ __________ ____________________________________________________________ __________ Weighted average common shares outstanding 113,897,633 113,897,633 ____________________________________________________________ ___________
See Notes to Unaudited Pro Forma Condensed Consolidated Statement of Income. 5 Aetna Life and Casualty Company Notes To Unaudited Pro Forma Condensed Consolidated Statement Of Income a. Pro forma adjustment to reflect a full year of interest income at 5.49% (1995 average 3 month Treasury bill rate), and related income taxes, on net sale proceeds (after giving effect to the payment of transaction costs and payments of liabilities associated with the sale) of approximately $3.9 billion. b. Pro forma adjustment to reflect a full year of interest expense (an additional 11.2 months) at 6.01% (1995 average commercial paper rate), and related income tax benefits, on the capital contribution of $303 million which was actually contributed on December 6, 1995. c. No adjustment has been made to give effect to the charge related to CityPlace (see adjustment C. to the Condensed Consolidated Balance Sheet) and any other nonrecurring/unusual restructuring charges resulting from the sale of the Companies to Travelers. Such restructuring charges will be recorded by the company in the second quarter of 1996. d. Pro forma adjustment to eliminate the historical earnings of the property-casualty operations. 6 Aetna Life and Casualty Company Unaudited Pro Forma Condensed Consolidated Balance Sheet As Of December 31, 1995 (in millions)
Pro Forma Historical Adjustments As Adjusted __________ ___________ ___________ Assets: Investments: Marketable securities $ 33,127.8 $ - $ 33,127.8 Other investments 10,922.5 - 10,922.5 _______________________________________________ Total investments 44,050.3 - 44,050.3 _____________________________________________________________________________________________________ Cash and cash equivalents 1,712.7 4,079.0 (A) 5,791.7 Deferred federal and foreign income taxes 271.5 64.0 (B) 437.8 102.3 (C) Separate Accounts assets 29,699.7 - 29,699.7 Net assets of Discontinued Operations 3,932.8 (3,932.8)(A) - Other assets 4,656.7 - 4,656.7 _______________________________________________ Total assets $ 84,323.7 $ 312.5 $ 84,636.2 _____________________________________________________________________________________________________ _____________________________________________________________________________________________________ Liabilities: Future policy benefits $ 18,372.9 $ - $ 18,372.9 Other policy liabilities 1,705.5 - 1,705.5 Policyholders' funds left with the company 22,898.7 - 22,898.7 _______________________________________________ Total insurance liabilities 42,977.1 - 42,977.1 Debt 1,378.7 - 1,378.7 Accounts payable and other liabilities 2,782.2 211.8 (B) 3,286.3 292.3 (C) Separate Accounts liabilities 29,637.9 - 29,637.9 _______________________________________________ Total liabilities 76,775.9 504.1 77,280.0 _____________________________________________________________________________________________________ Minority interest in preferred securities _ of subsidiary 275.0 - 275.0 _____________________________________________________________________________________________________ Shareholders' Equity: Common Capital Stock 1,448.2 - 1,448.2 Net unrealized capital gains (losses) 641.1 (393.1)(A) 248.0 Retained earnings 5,195.6 146.2 (A) 5,397.1 (147.8)(B) (190.0)(C) 393.1 (A) Treasury stock, at cost (12.1) - (12.1) _______________________________________________ Total shareholders' equity 7,272.8 (191.6) 7,081.2 _____________________________________________________________________________________________________ Total liabilities, minority interest and shareholders' equity $ 84,323.7 $ 312.5 $ 84,636.2 ______________________________________________________________________________________________________ ______________________________________________________________________________________________________
See Notes to Unaudited Pro Forma Condensed Consolidated Balance Sheet. 7 Aetna Life and Casualty Company Notes To Unaudited Pro Forma Condensed Consolidated Balance Sheet A. Pro forma adjustments to reflect the sale and resulting excess of proceeds over net assets of the Companies and the realization of the net unrealized capital gain as though the sale had occurred on December 31, 1995 (based on the assumed selling price at that date).: (in millions) ____________________________________________________________________ Proceeds from the sale of the Companies $ 4,079.0 Net assets of the Companies (3,932.8) _________ Excess of proceeds over net assets of the Companies $ 146.2 _________ _________ Realization of net unrealized capital gain $ 393.1 _________ _________
B. Pro forma adjustment to reflect transaction costs and certain employee benefit and similar liabilities, and the related deferred tax asset, of the Companies which are being retained by Aetna Life and Casualty Company. (in millions) ____________________________________________________________________ Establishment of certain liabilities $ 211.8 Less: related tax benefits (64.0) _________ $ 147.8 _________ _________
C. Pro forma adjustment to reflect the restructuring charge, and the related deferred tax asset, associated with the CityPlace office facility which was leased to Travelers in conjunction with the sale. (in millions) ____________________________________________________________________ Establishment of restructuring charge $ 292.3 Less: related tax benefits (102.3) _________ $ 190.0 _________ _________
The company anticipates taking other restructuring charges, however no adjustment has been made to give effect to such charges as they can not be quantified at this time. 8 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Aetna Life and Casualty Company _______________________________ (Registrant) Date April 15, 1996 By /s/ Robert J. Price ____________________________ (Signature) Robert J. Price Vice President and Corporate Controller (Chief Accounting Officer) -----END PRIVACY-ENHANCED MESSAGE-----