EXHIBIT 99.1
Exhibit 99.1 AmerUs Group Co. Consolidated Statements of Income, Consolidated Balance
Sheets and Consolidated Statements of Stockholders’ Equity
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except share data)
For The Three Months Ended | For The Year Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2003 | 2002 | 2003 | 2002 | ||||||||||||||
Revenues: | |||||||||||||||||
Insurance premiums | $ | 71,593 | $ | 88,040 | $ | 297,188 | $ | 351,300 | |||||||||
Product charges | 45,186 | 33,383 | 181,354 | 144,494 | |||||||||||||
Net investment income | 250,816 | 252,858 | 1,001,914 | 1,001,257 | |||||||||||||
Realized gains (losses) on investments | (44 | ) | (46,691 | ) | 41,522 | (104,710 | ) | ||||||||||
Unrealized gains (losses) on investments | 55,970 | 19,346 | 89,769 | (45,209 | ) | ||||||||||||
Other income | 17,838 | 17,389 | 68,298 | 68,513 | |||||||||||||
441,359 | 364,325 | 1,680,045 | 1,415,645 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||
Policyowner benefits | 267,011 | 228,243 | 940,158 | 871,892 | |||||||||||||
Underwriting, acquisition and other expenses | 40,935 | 39,991 | 155,468 | 162,267 | |||||||||||||
Demutualization costs | — | — | — | 1,186 | |||||||||||||
Restructuring costs | 5,879 | 10,445 | 23,294 | 21,225 | |||||||||||||
Amortization of deferred policy acquisition costs and value of business acquired | 45,585 | 36,114 | 193,340 | 139,565 | |||||||||||||
Dividends to policyowners | 12,063 | 32,866 | 98,393 | 104,866 | |||||||||||||
371,473 | 347,659 | 1,410,653 | 1,301,001 | ||||||||||||||
Income from continuing operations | 69,886 | 16,666 | 269,392 | 114,644 | |||||||||||||
Interest expense | 7,917 | 6,709 | 30,154 | 25,487 | |||||||||||||
Income before income tax expense | 61,969 | 9,957 | 239,238 | 89,157 | |||||||||||||
Income tax expense | 20,109 | 3,375 | 78,610 | 28,375 | |||||||||||||
Net income from continuing operations | 41,860 | 6,582 | 160,628 | 60,782 | |||||||||||||
Income from discontinued operations, net of tax | 247 | 617 | 1,815 | 2,084 | |||||||||||||
Net income before cumulative effect of change in accounting | 42,107 | 7,199 | 162,443 | 62,866 | |||||||||||||
Cumulative effect of change in accounting, net of tax | (1,296 | ) | — | (1,296 | ) | — | |||||||||||
Net income | $ | 40,811 | $ | 7,199 | $ | 161,147 | $ | 62,866 | |||||||||
Net income from continuing operations per common share: | |||||||||||||||||
Basic | $ | 1.07 | $ | 0.17 | $ | 4.10 | $ | 1.52 | |||||||||
Diluted | $ | 1.04 | $ | 0.17 | $ | 4.05 | $ | 1.50 | |||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 1.04 | $ | 0.18 | $ | 4.11 | $ | 1.57 | |||||||||
Diluted | $ | 1.02 | $ | 0.18 | $ | 4.07 | $ | 1.56 | |||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 39,268,068 | 38,919,178 | 39,175,924 | 39,972,328 | |||||||||||||
Diluted | 40,133,053 | 39,168,989 | 39,618,217 | 40,398,378 | |||||||||||||
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
December 31, | ||||||||||||
2003 | 2002 | |||||||||||
Assets | ||||||||||||
Investments: | ||||||||||||
Securities available-for-sale at fair value: | ||||||||||||
Fixed maturity securities | $ | 13,944,961 | $ | 13,328,902 | ||||||||
Equity securities | 74,890 | 63,345 | ||||||||||
Short-term investments | 28,556 | 32,318 | ||||||||||
Securities held for trading purposes: | ||||||||||||
Fixed maturity securities | 2,089,502 | 1,843,868 | ||||||||||
Equity securities | 1,652 | — | ||||||||||
Short-term investments | 591 | — | ||||||||||
Mortgage loans | 968,572 | 883,034 | ||||||||||
Real estate | 33 | 476 | ||||||||||
Policy loans | 494,646 | 496,753 | ||||||||||
Other investments | 339,436 | 283,794 | ||||||||||
Total investments | 17,942,839 | 16,932,490 | ||||||||||
Cash and cash equivalents | 274,150 | 102,612 | ||||||||||
Accrued investment income | 205,492 | 185,660 | ||||||||||
Premiums, fees and other receivables | 42,761 | 13,082 | ||||||||||
Reinsurance receivables | 663,452 | 865,930 | ||||||||||
Deferred policy acquisition costs | 1,120,130 | 884,239 | ||||||||||
Value of business acquired | 419,582 | 454,159 | ||||||||||
Goodwill | 224,075 | 218,995 | ||||||||||
Property and equipment | 48,849 | 74,188 | ||||||||||
Other assets | 311,331 | 296,994 | ||||||||||
Separate account assets | 261,657 | 235,913 | ||||||||||
Assets of discontinued operations | 27,950 | 29,403 | ||||||||||
Total assets | $ | 21,542,268 | $ | 20,293,665 | ||||||||
AMERUS GROUP CO.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
December 31, | |||||||||||
2003 | 2002 | ||||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Policy reserves and policyowner funds: | |||||||||||
Future life and annuity policy benefits | $ | 16,994,255 | $ | 16,244,016 | |||||||
Policyowner funds | 1,306,160 | 1,335,144 | |||||||||
18,300,415 | 17,579,160 | ||||||||||
Accrued expenses and other liabilities | 438,622 | 261,147 | |||||||||
Dividends payable to policyowners | 321,233 | 303,062 | |||||||||
Policy and contract claims | 58,880 | 39,569 | |||||||||
Income taxes payable | 65,202 | 61,325 | |||||||||
Deferred income taxes | 67,680 | 16,499 | |||||||||
Notes payable | 596,101 | 511,353 | |||||||||
Separate account liabilities | 261,657 | 235,913 | |||||||||
Liabilities of discontinued operations | 19,421 | 22,689 | |||||||||
Total liabilities | 20,129,211 | 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; 43,839,304 shares issued and 39,194,602 shares outstanding in 2003; 43,656,280 shares issued and 39,011,578 shares outstanding in 2002 | 43,839 | 43,656 | |||||||||
Additional paid-in capital | 1,184,300 | 1,179,646 | |||||||||
Accumulated other comprehensive income | 87,765 | 88,522 | |||||||||
Unearned compensation | (1,361 | ) | (458 | ) | |||||||
Unallocated ESOP shares | — | (1,443 | ) | ||||||||
Retained earnings | 255,006 | 109,517 | |||||||||
Treasury stock, at cost (4,644,702 shares in 2003 and 2002) | (156,492 | ) | (156,492 | ) | |||||||
Total stockholders’ equity | 1,413,057 | 1,262,948 | |||||||||
Total liabilities and stockholders’ equity | $ | 21,542,268 | $ | 20,293,665 | |||||||
AMERUS GROUP CO.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Years Ended December 31, 2003, 2002 and 2001
($ 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, 2000 | $ | 30,011 | $ | 809,894 | $ | (17,188 | ) | $ | (146 | ) | $ | (683 | ) | $ | 6,067 | $ | — | $ | 827,955 | |||||||||||||||
2001: | ||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 72,907 | — | 72,907 | ||||||||||||||||||||||||||
Change in accounting for derivatives | — | — | 2,661 | — | — | — | — | 2,661 | ||||||||||||||||||||||||||
Transfer related to unrealized loss | ||||||||||||||||||||||||||||||||||
on available-for-sale securities reclassified to trading | — | — | (430 | ) | — | — | — | — | (430 | ) | ||||||||||||||||||||||||
Net unrealized gain on securities | — | — | 35,891 | — | — | — | — | 35,891 | ||||||||||||||||||||||||||
Net unrealized loss on derivatives designated as cash flow hedges | — | — | (5,933 | ) | — | — | — | — | (5,933 | ) | ||||||||||||||||||||||||
Stock issued under various incentive plans, net of forfeitures | 206 | 5,861 | — | (581 | ) | — | — | 108 | 5,594 | |||||||||||||||||||||||||
Stock issued under exercise of warrants | — | (1,383 | ) | — | — | — | — | 4,468 | 3,085 | |||||||||||||||||||||||||
Dividends declared on common stock | — | — | — | — | — | (16,787 | ) | — | (16,787 | ) | ||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | — | — | — | (44,985 | ) | (44,985 | ) | ||||||||||||||||||||||||
Acquisition of IL Holdings | 9,047 | 223,358 | — | — | — | — | — | 232,405 | ||||||||||||||||||||||||||
Conversion of company-obligated mandatorily redeemable preferred capital securities | 4,242 | 139,478 | — | — | — | — | (16,173 | ) | 127,547 | |||||||||||||||||||||||||
Allocation of shares in leveraged ESOP | — | 480 | — | — | 459 | — | — | 939 | ||||||||||||||||||||||||||
Minimum pension liability adjustment | — | — | (2,332 | ) | — | — | — | — | (2,332 | ) | ||||||||||||||||||||||||
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 ESOP shares and treasury stock | — | — | — | — | (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 | — | — | — | — | — | 161,147 | — | 161,147 | ||||||||||||||||||||||||||
Net unrealized gain on securities | — | — | 1,971 | — | — | — | — | 1,971 | ||||||||||||||||||||||||||
Net unrealized gain on derivatives designated as cash flow hedges | — | — | 2,476 | — | — | — | — | 2,476 | ||||||||||||||||||||||||||
Change in accounting transfer of unrealized gain on available-for-sale securities to trading | — | — | (5,204 | ) | — | — | — | — | (5,204 | ) | ||||||||||||||||||||||||
Stock issued under various incentive plans, net of forfeitures | 183 | 11,780 | — | (903 | ) | — | — | — | 11,060 | |||||||||||||||||||||||||
PRIDES purchase contract adjustment and allocated fees and expenses | — | (7,280 | ) | — | — | — | — | — | (7,280 | ) | ||||||||||||||||||||||||
Dividends declared on common stock | — | — | — | — | — | (15,658 | ) | — | (15,658 | ) | ||||||||||||||||||||||||
Allocation of shares in leveraged ESOP | — | 154 | — | — | 1,443 | — | — | 1,597 | ||||||||||||||||||||||||||
Balance at December 31, 2003 | $ | 43,839 | $ | 1,184,300 | $ | 87,765 | $ | (1,361 | ) | $ | — | $ | 255,006 | $ | (156,492 | ) | $ | 1,413,057 | ||||||||||||||||