EX-99.3 5 a2062908zex-99_3.txt EX-99.3 Exhibit 99.3 Liberty Financial Companies, Inc. Unaudited Pro Forma Condensed Consolidated Statement of Operations Sale of the Annuity and Asset Management Businesses Nine Months Ended September 30, 2001 ($ in millions, except per share data)
Historical Annuity and Historical Asset Management Pro Forma LFC Businesses Adjustments ----------------- -------------------- ---------------- Investment income $ 670.5 $ (670.5) Interest credited to policyholders (449.9) 449.9 ----------------- -------------------- ---------------- Investment spread 220.6 (220.6) Net derivative loss (1.5) 1.8 Net realized investment gains (losses) (58.4) 52.9 Net change in unrealized and undistributed gains in private equity partnerships (17.1) 17.1 Fee Income: Investment advisory and administrative fees 219.4 (219.4) Distribution and service fees 41.9 (41.9) Transfer agency fees 36.3 (36.3) Surrender charges and net commissions 25.1 (25.1) Separate account fees 39.6 (39.6) ----------------- -------------------- ---------------- Total fee income 362.3 (362.3) Expenses: Operating expenses (303.5) 286.4 Restructuring 0.5 (0.8) Strategic review expenses (91.2) 29.4 $ 20.7 (3) Amortization of deferred policy acquisition costs (87.8) 87.8 Amortization of deferred distribution costs (37.4) 37.4 Amortization of intangible assets (25.6) 25.3 Interest (expense)/income, net (30.5) 37.5 (5)(6) ----------------- -------------------- ---------------- Total expenses (575.5) 465.5 58.2 Pretax income (loss) (69.6) (45.6) 58.2 Income tax benefit 27.0 3.3 (23.3)(3)(5)(6) ----------------- -------------------- ---------------- Income (loss) before cumulative effect of accounting changes $ (42.6) $ (42.3) $ 34.9 ================= ==================== ================ Income (loss) before cumulative effect of accounting changes - basic $ (0.89) (weighted average shares - 48,653,911) ======================= Income (loss) before cumulative effect of $ (0.85) accounting changes - diluted ======================= (weighted average shares - 50,103,055)
Pro Forma LFC -------------------------- Investment income Interest credited to policyholders -------------------------- Investment spread Net derivative loss $ 0.3 Net realized investment gains (losses) (5.5) Net change in unrealized and undistributed gains in private equity partnerships Fee Income: Investment advisory and administrative fees Distribution and service fees Transfer agency fees Surrender charges and net commissions Separate account fees -------------------------- Total fee income Expenses: Operating expenses (17.1) Restructuring (0.3) Strategic review expenses (41.1) Amortization of deferred policy acquisition costs Amortization of deferred distribution costs Amortization of intangible assets (0.3) Interest (expense)/income, net 7.0 -------------------------- Total expenses (51.8) Pretax income (loss) (57.0) Income tax benefit 7.0 -------------------------- Income (loss) before cumulative effect of accounting changes $ (50.0) ========================== Income (loss) before cumulative effect of accounting changes - basic $ (1.03) (weighted average shares - 48,653,911) ========================== Income (loss) before cumulative effect of $ (1.00) accounting changes - diluted ========================== (weighted average shares - 50,103,055)
The accompanying notes at Exhibit 99.4 are an integral part of the unaudited pro forma condensed consolidated financial statements.