Exhibit 99.1
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except share data)
For The Three Months Ended March 31, | |||||||||
2003 | 2002 | ||||||||
Revenues: | |||||||||
Insurance premiums | $ | 81,605 | $ | 90,458 | |||||
Universal life and annuity product charges | 44,107 | 37,128 | |||||||
Net investment income | 253,217 | 239,770 | |||||||
Realized gains (losses) on investments | 15,148 | (5,254 | ) | ||||||
Unrealized (losses) on investments | (7,293 | ) | (19,458 | ) | |||||
Other income | 17,168 | 12,468 | |||||||
403,952 | 355,112 | ||||||||
Benefits and expenses: | |||||||||
Policyowner benefits | 218,055 | 206,163 | |||||||
Underwriting, acquisition and other expenses | 37,719 | 36,251 | |||||||
Demutualization costs | — | 285 | |||||||
Restructuring costs | 3,193 | 1,795 | |||||||
Amortization of deferred policy acquisition costs and value of business acquired | 50,397 | 39,842 | |||||||
Dividends to policyowners | 34,574 | 28,403 | |||||||
343,938 | 312,739 | ||||||||
Income before interest and income tax expense | 60,014 | 42,373 | |||||||
Interest expense | 6,799 | 6,027 | |||||||
Income before income tax expense | 53,215 | 36,346 | |||||||
Income tax expense | 17,426 | 11,432 | |||||||
Net income | $ | 35,789 | $ | 24,914 | |||||
Net income per common share: | |||||||||
Basic | $ | 0.92 | $ | 0.60 | |||||
Diluted | $ | 0.91 | $ | 0.59 | |||||
Weighted average common shares outstanding: | |||||||||
Basic | 38,984,807 | 41,349,785 | |||||||
Diluted | 39,217,951 | 41,968,570 | |||||||
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
March 31, | December 31, | |||||||||||
2003 | 2002 | |||||||||||
Assets | ||||||||||||
Investments: | ||||||||||||
Securities available-for-sale at fair value: | ||||||||||||
Fixed maturity securities | $ | 13,432,473 | $ | 13,328,902 | ||||||||
Equity securities | 64,042 | 63,345 | ||||||||||
Short-term investments | 20,741 | 32,318 | ||||||||||
Securities held for trading purposes: | ||||||||||||
Fixed maturity securities | 1,760,274 | 1,843,868 | ||||||||||
Mortgage loans | 888,323 | 883,034 | ||||||||||
Real estate | 475 | 476 | ||||||||||
Policy loans | 493,086 | 496,753 | ||||||||||
Other investments | 430,359 | 283,794 | ||||||||||
Total investments | 17,089,773 | 16,932,490 | ||||||||||
Cash and cash equivalents | 921,054 | 102,612 | ||||||||||
Accrued investment income | 187,672 | 185,660 | ||||||||||
Premiums, fees and other receivables | 43,252 | 13,082 | ||||||||||
Reinsurance receivables | 1,004,194 | 865,930 | ||||||||||
Deferred policy acquisition costs | 871,646 | 884,239 | ||||||||||
Value of business acquired | 450,210 | 454,159 | ||||||||||
Goodwill | 225,075 | 218,995 | ||||||||||
Property and equipment | 73,908 | 74,188 | ||||||||||
Other assets | 308,371 | 326,397 | ||||||||||
Separate account assets | 219,801 | 235,913 | ||||||||||
Total assets | $ | 21,394,956 | $ | 20,293,665 | ||||||||
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
March 31, | December 31, | |||||||||||
2003 | 2002 | |||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Policy reserves and policyowner funds: | ||||||||||||
Future life and annuity policy benefits | $ | 16,453,162 | $ | 16,244,016 | ||||||||
Policyowner funds | 1,483,713 | 1,335,144 | ||||||||||
17,936,875 | 17,579,160 | |||||||||||
Accrued expenses and other liabilities | 942,819 | 283,836 | ||||||||||
Dividends payable to policyowners | 327,054 | 303,062 | ||||||||||
Policy and contract claims | 39,237 | 39,569 | ||||||||||
Income taxes payable | 58,783 | 61,325 | ||||||||||
Deferred income taxes | 25,928 | 16,499 | ||||||||||
Notes payable | 533,593 | 511,353 | ||||||||||
Separate account liabilities | 219,801 | 235,913 | ||||||||||
Total liabilities | 20,084,090 | 19,030,717 | ||||||||||
Stockholders’ equity: | ||||||||||||
Preferred Stock, no par value, 20,000,000 shares authorized, none issued | — | — | ||||||||||
Common Stock, no par value, 230,000,000 shares authorized; 43,695,889 shares issued and 39,051,187 shares outstanding in 2003; 43,656,280 shares issued and 39,011,578 shares outstanding in 2002 | 43,696 | 43,656 | ||||||||||
Additional paid-in capital | 1,180,736 | 1,179,646 | ||||||||||
Accumulated other comprehensive income | 99,886 | 88,522 | ||||||||||
Unearned compensation | (860 | ) | (458 | ) | ||||||||
Unallocated ESOP shares | (1,406 | ) | (1,443 | ) | ||||||||
Retained earnings | 145,306 | 109,517 | ||||||||||
Treasury stock, at cost (4,644,702 shares in 2003 and 2002) | (156,492 | ) | (156,492 | ) | ||||||||
Total stockholders’ equity | 1,310,866 | 1,262,948 | ||||||||||
Total liabilities and stockholders’ equity | $ | 21,394,956 | $ | 20,293,665 | ||||||||
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Three Months Ended March 31, 2003 and the Year Ended December 31, 2002
($ in thousands)
Accumulated | |||||||||||||||||
Additional | Other | ||||||||||||||||
Paid-In | Comprehensive | Unearned | |||||||||||||||
Common Stock | Capital | Income (Loss) | Compensation | ||||||||||||||
Balance at December 31, 2001 | $ | 43,506 | $ | 1,177,688 | $ | 12,669 | $ | (727 | ) | ||||||||
2002: | |||||||||||||||||
Net income | — | — | — | — | |||||||||||||
Net unrealized gain on securities | — | — | 73,646 | — | |||||||||||||
Net unrealized gain on derivatives designated as cash flow hedges | — | — | 3,434 | — | |||||||||||||
Stock issued under various incentive plans, net of forfeitures | 150 | 5,730 | — | 269 | |||||||||||||
Stock issued under exercise of warrants | — | (3,802 | ) | — | — | ||||||||||||
Purchase of treasury stock and ESOP shares | — | — | — | — | |||||||||||||
Dividends declared on common stock | — | — | — | — | |||||||||||||
Allocation of shares in leveraged ESOP | — | 30 | — | — | |||||||||||||
Minimum pension liability adjustment | — | — | (1,227 | ) | — | ||||||||||||
Balance at December 31, 2002 | 43,656 | 1,179,646 | 88,522 | (458 | ) | ||||||||||||
2003: | |||||||||||||||||
Net income | — | — | — | — | |||||||||||||
Net unrealized gain (loss) on securities | — | — | 10,443 | — | |||||||||||||
Net unrealized gain (loss) on derivatives designated as cash flow hedges | — | — | 921 | — | |||||||||||||
Stock issued under various incentive plans, net of forfeitures | 40 | 1,090 | — | (402 | ) | ||||||||||||
Allocation of shares in leveraged ESOP | — | — | — | — | |||||||||||||
Balance at December 31, 2003 | $ | 43,696 | $ | 1,180,736 | $ | 99,886 | $ | (860 | ) | ||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
Unallocated | Total | ||||||||||||||||
ESOP | Retained | Treasury | Stockholders' | ||||||||||||||
Shares | Earnings | Stock | Equity | ||||||||||||||
Balance at December 31, 2001 | $ | (224 | ) | $ | 62,187 | $ | (56,582 | ) | $ | 1,238,517 | |||||||
2002: | |||||||||||||||||
Net income | — | 62,866 | — | 62,866 | |||||||||||||
Net unrealized gain on securities | — | — | — | 73,646 | |||||||||||||
Net unrealized gain on derivatives designated as cash flow hedges | — | — | — | 3,434 | |||||||||||||
Stock issued under various incentive plans, net of forfeitures | — | — | 1 | 6,150 | |||||||||||||
Stock issued under exercise of warrants | — | — | 12,205 | 8,403 | |||||||||||||
Purchase of treasury stock and ESOP shares | (2,522 | ) | — | (112,116 | ) | (114,638 | ) | ||||||||||
Dividends declared on common stock | — | (15,536 | ) | — | (15,536 | ) | |||||||||||
Allocation of shares in leveraged ESOP | 1,303 | — | — | 1,333 | |||||||||||||
Minimum pension liability adjustment | — | — | — | (1,227 | ) | ||||||||||||
Balance at December 31, 2002 | (1,443 | ) | 109,517 | (156,492 | ) | 1,262,948 | |||||||||||
2003: | |||||||||||||||||
Net income | — | 35,789 | — | 35,789 | |||||||||||||
Net unrealized gain (loss) on securities | — | — | — | 10,443 | |||||||||||||
Net unrealized gain (loss) on derivatives designated as cash flow hedges | — | — | — | 921 | |||||||||||||
Stock issued under various incentive plans, net of forfeitures | — | — | — | 728 | |||||||||||||
Allocation of shares in leveraged ESOP | 37 | — | — | 37 | |||||||||||||
Balance at December 31, 2003 | $ | (1,406 | ) | $ | 145,306 | $ | (156,492 | ) | $ | 1,310,866 | |||||||