Exhibit 99.1
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except share data)
For The Three Months Ended June 30, | For The Six Months Ended June 30, | ||||||||||||||||
2003 | 2002 | 2003 | 2002 | ||||||||||||||
Revenues: | |||||||||||||||||
Insurance premiums | $ | 79,637 | $ | 91,853 | $ | 161,242 | $ | 182,333 | |||||||||
Universal life and annuity product charges | 51,426 | 35,016 | 95,534 | 74,058 | |||||||||||||
Net investment income | 249,646 | 251,897 | 502,863 | 491,667 | |||||||||||||
Realized gains (losses) on investments | 16,649 | (41,133 | ) | 31,797 | (46,387 | ) | |||||||||||
Unrealized gains (losses) on investments | 42,320 | (34,778 | ) | 35,027 | (54,236 | ) | |||||||||||
Other income | 18,149 | 20,465 | 35,316 | 32,933 | |||||||||||||
457,827 | 323,320 | 861,779 | 680,368 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||
Policyowner benefits | 256,114 | 212,283 | 474,169 | 418,446 | |||||||||||||
Underwriting, acquisition and other expenses | 36,080 | 45,602 | 73,799 | 83,791 | |||||||||||||
Demutualization costs | — | 179 | — | 464 | |||||||||||||
Restructuring costs | 12,670 | 6,416 | 15,864 | 8,211 | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 49,578 | 28,324 | 99,974 | 68,164 | |||||||||||||
Dividends to policyowners | 29,740 | 19,221 | 64,314 | 47,624 | |||||||||||||
384,182 | 312,025 | 728,120 | 626,700 | ||||||||||||||
Income before interest and income tax expense | 73,645 | 11,295 | 133,659 | 53,668 | |||||||||||||
Interest expense | 7,575 | 6,337 | 14,374 | 12,364 | |||||||||||||
Income before income tax expense | 66,070 | 4,958 | 119,285 | 41,304 | |||||||||||||
Income tax expense | 22,359 | 696 | 39,784 | 12,128 | |||||||||||||
Net income | $ | 43,711 | $ | 4,262 | $ | 79,501 | $ | 29,176 | |||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 1.12 | $ | 0.11 | $ | 2.03 | $ | 0.72 | |||||||||
Diluted | $ | 1.11 | $ | 0.10 | $ | 2.02 | $ | 0.71 | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 39,161,780 | 40,155,276 | 39,112,346 | 40,749,054 | |||||||||||||
Diluted | 39,404,467 | 40,661,337 | 39,354,894 | 41,311,695 | |||||||||||||
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
June 30, | December 31, | ||||||||||
2003 | 2002 | ||||||||||
Assets | |||||||||||
Investments: | |||||||||||
Securities available-for-sale at fair value: | |||||||||||
Fixed maturity securities | $ | 13,949,747 | $ | 13,328,902 | |||||||
Equity securities | 71,285 | 63,345 | |||||||||
Short-term investments | 29,831 | 32,318 | |||||||||
Securities held for trading purposes: | |||||||||||
Fixed maturity securities | 1,854,975 | 1,843,868 | |||||||||
Equity securities | 1,921 | — | |||||||||
Mortgage loans | 911,549 | 883,034 | |||||||||
Real estate | 314 | 476 | |||||||||
Policy loans | 492,007 | 496,753 | |||||||||
Other investments | 590,245 | 283,794 | |||||||||
Total investments | 17,901,874 | 16,932,490 | |||||||||
Cash and cash equivalents | 645,836 | 102,612 | |||||||||
Accrued investment income | 186,437 | 185,660 | |||||||||
Premiums, fees and other receivables | 43,683 | 13,082 | |||||||||
Reinsurance receivables | 957,530 | 865,930 | |||||||||
Deferred policy acquisition costs | 862,278 | 884,239 | |||||||||
Value of business acquired | 405,512 | 454,159 | |||||||||
Goodwill | 224,075 | 218,995 | |||||||||
Property and equipment | 49,657 | 74,188 | |||||||||
Other assets | 322,817 | 326,397 | |||||||||
Separate account assets | 242,123 | 235,913 | |||||||||
Total assets | $ | 21,841,822 | $ | 20,293,665 | |||||||
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
June 30, | December 31, | |||||||||||
2003 | 2002 | |||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Liabilities: | ||||||||||||
Policy reserves and policyowner funds: | ||||||||||||
Future life and annuity policy benefits | $ | 16,725,762 | $ | 16,244,016 | ||||||||
Policyowner funds | 1,524,760 | 1,335,144 | ||||||||||
18,250,522 | 17,579,160 | |||||||||||
Accrued expenses and other liabilities | 819,138 | 283,836 | ||||||||||
Dividends payable to policyowners | 399,139 | 303,062 | ||||||||||
Policy and contract claims | 37,714 | 39,569 | ||||||||||
Income taxes payable | 57,826 | 61,325 | ||||||||||
Deferred income taxes | 66,434 | 16,499 | ||||||||||
Notes payable | 552,586 | 511,353 | ||||||||||
Separate account liabilities | 242,123 | 235,913 | ||||||||||
Total liabilities | 20,425,482 | 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; 43,728,197 shares issued and 39,083,495 shares outstanding in 2003; 43,656,280 shares issued and 39,011,578 shares outstanding in 2002 | 43,728 | 43,656 | ||||||||||
Additional paid-in capital | 1,181,049 | 1,179,646 | ||||||||||
Accumulated other comprehensive income | 162,364 | 88,522 | ||||||||||
Unearned compensation | (1,921 | ) | (458 | ) | ||||||||
Unallocated ESOP shares | (1,406 | ) | (1,443 | ) | ||||||||
Retained earnings | 189,018 | 109,517 | ||||||||||
Treasury stock, at cost (4,644,702 shares in 2003 and 2002) | (156,492 | ) | (156,492 | ) | ||||||||
Total stockholders’ equity | 1,416,340 | 1,262,948 | ||||||||||
Total liabilities and stockholders’ equity | $ | 21,841,822 | $ | 20,293,665 | ||||||||
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Six Months Ended June 30, 2003 and the Year Ended December 31, 2002
($ in thousands)
Accumulated | |||||||||||||||||||||||||||||||||
Additional | Other | Unallocated | Total | ||||||||||||||||||||||||||||||
Paid-In | Comprehensive | Unearned | ESOP | Retained | Treasury | Stockholders’ | |||||||||||||||||||||||||||
Common Stock | Capital | Income (Loss) | Compensation | Shares | Earnings | Stock | Equity | ||||||||||||||||||||||||||
Balance at December 31, 2001 | $ | 43,506 | $ | 1,177,688 | $ | 12,669 | $ | (727 | ) | $ | (224 | ) | $ | 62,187 | $ | (56,582 | ) | $ | 1,238,517 | ||||||||||||||
2002: | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 62,866 | — | 62,866 | |||||||||||||||||||||||||
Net unrealized gain on securities | — | — | 73,646 | — | — | — | — | 73,646 | |||||||||||||||||||||||||
Net unrealized gain on derivatives designated as cash flow hedges | — | — | 3,434 | — | — | — | — | 3,434 | |||||||||||||||||||||||||
Stock issued under various incentive plans, net of forfeitures | 150 | 5,730 | — | 269 | — | — | 1 | 6,150 | |||||||||||||||||||||||||
Stock issued under exercise of warrants | — | (3,802 | ) | — | — | — | — | 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 | — | 30 | — | — | 1,303 | — | — | 1,333 | |||||||||||||||||||||||||
Minimum pension liability adjustment | — | — | (1,227 | ) | — | — | — | — | (1,227 | ) | |||||||||||||||||||||||
Balance at December 31, 2002 | 43,656 | 1,179,646 | 88,522 | (458 | ) | (1,443 | ) | 109,517 | (156,492 | ) | 1,262,948 | ||||||||||||||||||||||
2003: | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 79,501 | — | 79,501 | |||||||||||||||||||||||||
Net unrealized gain (loss) on securities | — | — | 72,089 | — | — | — | — | 72,089 | |||||||||||||||||||||||||
Net unrealized gain (loss) on derivatives designated as cash flow hedges | — | — | 1,753 | — | — | — | — | 1,753 | |||||||||||||||||||||||||
Stock issued under various incentive plans, net of forfeitures | 72 | 8,490 | — | (1,463 | ) | — | — | — | 7,099 | ||||||||||||||||||||||||
PRIDES purchase contract adjustments and allocated fees and expenses | — | (7,087 | ) | — | — | — | — | — | (7,087 | ) | |||||||||||||||||||||||
Allocation of shares in leveraged ESOP | — | — | — | — | 37 | — | — | 37 | |||||||||||||||||||||||||
Balance at June 30, 2003 | $ | 43,728 | $ | 1,181,049 | $ | 162,364 | $ | (1,921 | ) | $ | (1,406 | ) | $ | 189,018 | $ | (156,492 | ) | $ | 1,416,340 | ||||||||||||||