Exhibit 99.2
TABLE OF CONTENTS
The following information should be read in conjunction with the financial information of the Company, which has been filed with the Securities and Exchange Commission.
All amounts included herein are unaudited. Certain total amounts herein cannot be recalculated due to rounding.
Wall Street Analyst Coverage Data | 2 | |||
Corporate Offices, Principal Subsidiaries and Ratings | 3 | |||
Summary Financial Information | 4-5 | |||
Consolidated Results | ||||
Exhibit 1 | Consolidated Income Statement Data | 6 | ||
Exhibit 1A | Reorganization and Other 4th Quarter Charges | 7 | ||
Protection Products Segment | ||||
Exhibit 2 | Protection Products Segment Description | 8 | ||
Exhibit 3 | Protection Income Statement Data | 9 | ||
Exhibit 4A | Group Pension Data | 10 | ||
Exhibit 4B | Closed Block Data | 11 | ||
Exhibit 4C | Fixed Maturities by Credit Quality—Closed Block | 12 | ||
Exhibit 5 | Premiums and Inforce | 13 | ||
Exhibit 6 | Statutory Direct Premiums | 14 | ||
Accumulation Products Segment | ||||
Exhibit 7 | Accumulation Products Segment Description | 15 | ||
Exhibit 8 | Accumulation Income Statement Data | 16 | ||
Exhibit 9 | Accumulation Assets Under Management | 17 | ||
Retail Brokerage and Investment Banking | ||||
Exhibit 10 | Retail Brokerage and Investment Banking Segment Description | 18 | ||
Exhibit 11 | Retail Brokerage and Investment Banking Income Statement Data | 19 | ||
Exhibit 12 | Income Statement Detail and Advest Data | 20 | ||
Other Product /Reconciling Segment | ||||
Exhibit 13 | Other/Reconciling Products Segment Description | 21 | ||
Exhibit 14 | Other/Reconciling Income Statement Data | 22 | ||
Investments | ||||
Exhibit 15 | Investments | 23 | ||
Exhibit 16 | Invested Assets | 24 | ||
Exhibit 17 | Investment Results | 25 | ||
Exhibit 18A | Fixed Maturities by Credit Quality | 26 | ||
Exhibit 18B | Fixed Maturities by Industry | 27 | ||
Exhibit 18C | Venture Capital Partnership Investments | 28 | ||
Exhibit 19 | Mortgages at Carrying Value | 29 | ||
Exhibit 20A | Equity Real Estate | 30 | ||
Exhibit 20B | Mortgages and Real Estate | 31 | ||
Historical | ||||
Exhibit 21 | Quarterly Earnings | 32 | ||
Expenses | ||||
Exhibit 22 | Statutory Expense Ratios | 33 |
WALL STREET ANALYST COVERAGE DATA
Brokerage | Analyst | Telephone | ||
Conning Research & Consulting, Inc. | David Montgomery | (917) 368-4753 | ||
Credit Suisse First Boston | Caitlin Long | (212) 325-2165 | ||
Deutsche Bank Securities Inc. | Vanessa Wilson | (212) 469-7351 | ||
Dowling & Partners Securities, LLC | Paul Goulekas | (860) 676-8600 | ||
Fox-Pitt, Kelton Inc. | Ronald McIntosh | (212) 687-1105 | ||
Goldman Sachs | Joan Zief | (212) 902-6778 | ||
Keefe, Bruyette & Woods, Inc. | Jukka Lipponen | (860) 722-5902 | ||
Langen McAlenney | Robert Glasspiegel | (860) 724-1203 | ||
Legg Mason Wood Walker Inc. | Thomas Gallagher | (212) 972-0859 | ||
Lehman Brothers Inc. | E. Stewart Johnson | (212) 526-8190 | ||
Philo Smith & Co., Inc. | James Inglis | (203) 348-7365 | ||
Putnam Lovell NBF | Al Capra | (212) 546-7640 | ||
SalomonSmithBarney | Colin Devine | (212) 816-1682 | ||
Sandler O’Neill & Partners, L.P. | Nick Pirsos | (212) 466-7929 |
Investor Information Line
Contact: Jay Davis
Tel (212) 708-2917
E-mail jdavis@mony.com
Visit our internet site at www.mony.com
2
CORPORATE OFFICES, PRINCIPAL SUBSIDIARIES
MONY Life Insurance Company | Trusted Securities Advisors Corp. | |
1740 Broadway | 7760 France Avenue South, Suite 420 | |
New York, NY 10019 | Minneapolis, MN 55435 | |
MONY Life Insurance Company of America | The Advest Group, Inc. | |
1740 Broadway | 90 State House Square | |
New York, NY 10019 | Hartford, CT 06103 | |
U.S. Financial Life Insurance Company | Matrix Capital Markets Group Inc. | |
10290 Alliance Road | 11 South 12th Street | |
Cincinnati, OH 45242 | Suite 325 | |
Richmond, VA 23219 | ||
Enterprise Capital Management, Inc. | ||
3343 Peachtree Road, NE, Suite 450 | Lebenthal & Co., Inc. | |
Atlanta, GA 30326 | 120 Broadway | |
New York, NY 10271 | ||
MONY Securities Corporation | ||
1740 Broadway | ||
New York, NY 10019 |
CORPORATE RATINGS
CLAIMS PAYING ABILITY/ FINANCIAL STRENGTH RATINGS (1) | SENIOR DEBT RATINGS (2) | |
Standard | Standard | |
& Poors | & Poors | |
A+ | BBB+ | |
A.M. (3) | A.M. | |
Best | Best | |
A | bbb+ | |
Moody’s | Moody’s | |
A2 | Baa2 | |
Fitch | Fitch | |
A+ | BBB+ |
(1) MONY Life Insurance Company and MONY Life Insurance Company of America
(2) The MONY Group Inc.
(3) MONY Life Insurance Company, MONY Life Insurance Company of America, and U.S. Financial Life Insurance Company
3
(Unaudited)
SUMMARY FINANCIAL INFORMATION
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||||
($ millions, except per share amounts) | ||||||||||||||||
CONSOLIDATED INCOME STATEMENT DATA : | ||||||||||||||||
Net Income/(Loss) | $ | 3.6 |
| $ | (87.7 | ) | $ | (23.3 | ) | $ | (60.8 | ) | ||||
Realized losses included in the 4th quarter charge |
| — |
|
| 13.1 |
|
| — |
|
| 13.1 |
| ||||
Net realized losses/(gains) on investments (after-tax) |
| 29.5 |
|
| (0.4 | ) |
| 69.2 |
|
| (1.2 | ) | ||||
Operating income/(loss): |
| 33.1 |
|
| (75.0 | ) |
| 45.9 |
|
| (48.9 | ) | ||||
Operating loss included in the 4th quarter charge |
| 5.0 |
|
| 81.9 |
|
| 5.0 |
|
| 81.9 |
| ||||
Litigation related charges (after-tax) |
| — |
|
| — |
|
| 4.5 |
|
| — |
| ||||
Final payment from transferred pension business |
| (31.3 | ) |
| — |
|
| (31.3 | ) |
| — |
| ||||
Venture capital (income)/loss—(after-tax) |
| (8.5 | ) |
| — |
|
| (3.6 | ) |
| 9.1 |
| ||||
Operating (loss)/income, excluding venture capital, final value payment from transferred pension business, litigation related charges and operating losses included in the fourth quarter charge: | $ | (1.7 | ) | $ | 6.9 |
| $ | 20.5 |
| $ | 42.1 |
| ||||
PER SHARE CALCULATIONS: | ||||||||||||||||
NET INCOME/(LOSS) PER SHARE: | ||||||||||||||||
Basic | $ | 0.08 |
| $ | (1.84 | ) | $ | (0.49 | ) | $ | (1.25 | ) | ||||
Diluted | $ | 0.08 |
| $ | (1.84 | ) | $ | (0.49 | ) | $ | (1.25 | ) | ||||
OPERATING INCOME/(LOSS) PER SHARE : | ||||||||||||||||
Basic | $ | 0.70 |
| $ | (1.57 | ) | $ | 0.97 |
| $ | (1.01 | ) | ||||
Diluted | $ | 0.70 |
| $ | (1.57 | ) | $ | 0.97 |
| $ | (1.01 | ) | ||||
OPERATING (LOSS)/INCOME, EXCLUDING VENTURE CAPITAL, FINAL VALUE PAYMENT FROM TRANSFERRED PENSION BUSINESS, LITIGATION RELATED CHARGES AND OPERATING LOSSES INCLUDED IN THE FOURTH QUARTER CHARGE: | ||||||||||||||||
Basic | $ | (0.04 | ) | $ | 0.14 |
| $ | 0.43 |
| $ | 0.87 |
| ||||
Diluted | $ | (0.04 | ) | $ | 0.14 |
| $ | 0.43 |
| $ | 0.87 |
| ||||
Share Data | ||||||||||||||||
Weighted-average shares outstanding used in basic per share calculations |
| 46,923,822 |
|
| 47,786,913 |
|
| 47,582,799 |
|
| 48,608,378 |
| ||||
Plus: Incremental shares from assumed conversion of dilutive securities (1) |
| 180,266 |
|
| — |
|
| — |
|
| — |
| ||||
Weighted-average shares used in diluted per share calculations |
| 47,104,088 |
|
| 47,786,913 |
|
| 47,582,799 |
|
| 48,608,378 |
| ||||
OTHER DATA: | ||||||||||||||||
Employee count |
| 3,501 |
|
| 3,655 |
| ||||||||||
Career agent count (Domestic and International) |
| 1,639 |
|
| 2,006 |
| ||||||||||
US Financial Life Brokerage General Agencies |
| 223 |
|
| 231 |
| ||||||||||
Trusted Advisors Registered Representatives |
| 467 |
|
| 438 |
| ||||||||||
Active Enterprise Selling Agreements |
| 464 |
|
| 463 |
| ||||||||||
Advest Financial Advisors |
| 513 |
|
| 482 |
|
(1) 1,026,791; 1,227,397; and 1,333,745 shares from the assumed conversion of dilutive securities were not included in the computation of per share amounts for the three-month period ended December 31, 2001 and for the years ended December 31, 2002 and 2001, respectively because their inclusion would be anti-dilutive.
4
(Unaudited)
SUMMARY FINANCIAL INFORMATION—CONTINUED
December 31, 2002 | December 31, 2001 | |||||||
($ millions) | ||||||||
CONSOLIDATED BALANCE SHEET DATA | ||||||||
Invested assets (including cash and cash equivalents) | $ | 12,717.7 |
| $ | 11,826.5 |
| ||
Assets transferred in Group Pension Transaction (1) |
| — |
|
| 4,650.4 |
| ||
Separate accounts assets |
| 4,140.6 |
|
| 5,195.2 |
| ||
Other assets |
| 3,067.4 |
|
| 3,984.5 |
| ||
Total Assets | $ | 19,925.7 |
| $ | 25,656.6 |
| ||
Policyholders’ liabilities | $ | 11,018.8 |
| $ | 10,488.2 |
| ||
Liabilities transferred in Group Pension Transaction (1) |
| — |
|
| 4,597.1 |
| ||
Separate account liabilities |
| 4,137.6 |
|
| 5,192.3 |
| ||
Short term debt |
| 7.0 |
|
| 320.0 |
| ||
Long term debt |
| 876.9 |
|
| 583.1 |
| ||
Other liabilities |
| 1,886.9 |
|
| 2,423.7 |
| ||
Total Liabilities |
| 17,927.2 |
|
| 23,604.4 |
| ||
Equity |
| 1,938.7 |
|
| 2,014.1 |
| ||
Accumulated comprehensive income (ACI) |
| 59.8 |
|
| 38.1 |
| ||
Total Shareholders’ Equity |
| 1,998.5 |
|
| 2,052.2 |
| ||
Total Liabilities and Shareholders’ Equity | $ | 19,925.7 |
| $ | 25,656.6 |
| ||
SHARE DATA: | ||||||||
Diluted book value per share | $ | 42.54 |
| $ | 41.55 |
| ||
Diluted book value per share (excluding accumulated comprehensive income) | $ | 41.26 |
| $ | 40.78 |
| ||
CAPITALIZATION: | ||||||||
Long term debt | $ | 876.9 |
| $ | 583.1 |
| ||
Shareholders' Equity (Excluding ACI) |
| 1,938.7 |
|
| 2,014.1 |
| ||
Total capitalization | $ | 2,815.6 |
| $ | 2,597.2 |
| ||
Debt as Percent of Total Capitalization |
| 31.1 | % |
| 22.5 | % | ||
STATUTORY DATA: | ||||||||
Capital and Surplus | $ | 898.8 |
| $ | 917.4 |
| ||
Asset Valuation Reserve (AVR) |
| 210.6 |
|
| 201.0 |
| ||
Total Capital and Surplus plus AVR | $ | 1,109.4 |
| $ | 1,118.4 |
| ||
(1) As explained in the notes to MONY Group’s consolidated financial statements, in accordance with GAAP, the Group Pension Transaction did not constitute a sale because the Company retained substantially all the risks and rewards associated with the business transferred to Aegon. Accordingly, over the life of the transaction we were required to reflect the transferred assets and liabilities on our balance sheet under separate captions entitled “Assets transferred in Group Pension Transaction” and “Liabilities transferred in Group Pension Transaction”. As a result of the expiration of the transaction at December 31, 2002 and the recognition of earnings from the Final Value Payment from Aegon we have no further interest in the transferred assets and liabilities and, accordingly, such assets and liabilities are no longer reflected on our balance sheet. Refer to the notes to MONY Group's consolidated financial statements filed with the SEC on Form 10-K for the year ended December 31, 2001 for further information.
5
Exhibit 1
(Unaudited)
CONSOLIDATED INCOME STATEMENT DATA (1)
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2002(2) | 2001(2) | 2002(2) | 2001(2) | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 195.7 |
| $ | 194.8 |
| $ | 690.4 |
| $ | 695.3 |
| ||||
Universal life and investment-type product policy fees |
| 44.3 |
|
| 55.1 |
|
| 200.5 |
|
| 207.2 |
| ||||
Net investment income |
| 194.9 |
|
| 146.0 |
|
| 737.3 |
|
| 692.1 |
| ||||
Net realized losses on investments |
| (83.9 | ) |
| (18.3 | ) |
| (153.0 | ) |
| (12.3 | ) | ||||
Group Pension Profits |
| 60.3 |
|
| 3.5 |
|
| 82.3 |
|
| 30.7 |
| ||||
Retail Brokerage and Investment Banking |
| 99.6 |
|
| 90.5 |
|
| 397.1 |
|
| 343.5 |
| ||||
Other income |
| 43.3 |
|
| 53.3 |
|
| 139.9 |
|
| 147.1 |
| ||||
| 554.2 |
|
| 524.9 |
|
| 2,094.5 |
|
| 2,103.6 |
| |||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Benefits to policyholders |
| 217.7 |
|
| 218.6 |
|
| 803.1 |
|
| 814.7 |
| ||||
Interest credited to policyholders account balances |
| 33.5 |
|
| 27.3 |
|
| 119.3 |
|
| 110.5 |
| ||||
Amortization of deferred policy acquisition costs |
| 35.7 |
|
| 60.4 |
|
| 156.1 |
|
| 158.8 |
| ||||
Dividends to policyholders |
| 16.2 |
|
| 66.9 |
|
| 188.0 |
|
| 236.6 |
| ||||
Other operating costs and expenses (3) |
| 241.7 |
|
| 285.4 |
|
| 860.0 |
|
| 876.4 |
| ||||
| 544.8 |
|
| 658.6 |
|
| 2,126.5 |
|
| 2,197.0 |
| |||||
Income/(Loss) from continuing operations before income tax |
| 9.4 |
|
| (133.7 | ) |
| (32.0 | ) |
| (93.4 | ) | ||||
Income tax expense/(benefit) |
| 3.3 |
|
| (46.0 | ) |
| (11.2 | ) |
| (32.6 | ) | ||||
Net Income/(Loss) from continuing operations |
| 6.1 |
|
| (87.7 | ) |
| (20.8 | ) |
| (60.8 | ) | ||||
Discontinued Operations: Loss from real estate operations held for sale, net of income tax benefit of $1.4 million in 2002 |
| (2.5 | ) |
| — |
|
| (2.5 | ) |
| — |
| ||||
Net Income/(Loss) | $ | 3.6 |
| $ | (87.7 | ) | $ | (23.3 | ) | $ | (60.8 | ) | ||||
(1) These income statements present the consolidated results of operations of the Company for the periods indicated as will be reported on the Company’s filings with the Securities and Exchange Commission.
(2) Includes reorganization and other charges recorded in the 4th quarter of 2002 and 2001 aggregating $7.7 million and $146.1 million respectively, on a pre-tax basis. For details of such charges and the line items they are reflected in, refer to Exhibit 1A herein.
(3) Includes operating costs and expenses related to Advest for 11 months in 2001.
6
STATISTICAL SUPPLEMENT
REORGANIZATION AND OTHER CHARGES EXHIBIT
Exhibit 1A—Reorganization and Other 4th Quarter Charges
During the 4th quarter of 2002 and 2001, the Company recorded pre-tax charges aggregating approximately $7.7 million and $146.1 million, respectively. Of this amount approximately $7.7 milion and $56.8 million, respectively, represented “Reorganization Charges” taken in connection with the reorganization of certain of the Company’s businesses and $0 and $89.3 million, respectively, represented “Other Charges” unrelated to the Company's Reorganization activities.
The following tables summarize the components of the aforementioned Reorganization and Other Charges recorded during 2002 and 2001, respectively. None of the charges referred to below as “Reorganization Charges” have been allocated to the Company’s operating segments, however, the charges in 2001 referred to as “Other Charges” have been allocated to the Company’s operating segments. All Reorganization Charges incurred in 2002 and 2001 are reported as reconciling items.
2002:
Operating | Net Realized Losses | Total | |||||||
Reorganization Charges: | |||||||||
Severance benefits | $ | 6.6 | $ | — | $ | 6.6 | |||
Leased offices |
| 1.1 |
| — |
| 1.1 | |||
Total—Reorganization Charges before tax | $ | 7.7 | $ | — | $ | 7.7 | |||
Total—Reorganization Charges after tax | $ | 5.0 | $ | — | $ | 5.0 | |||
2001:
Operating | Net Realized Losses | Total | |||||||
Reorganization Charges: | |||||||||
Severance benefits and incentive compensation | $ | 22.8 | $ | — | $ | 22.8 | |||
Leased offices and equipment |
| 8.7 |
| — |
| 8.7 | |||
Deferred policy acquisition costs |
| 17.0 |
| — |
| 17.0 | |||
Other |
| 8.3 |
| — |
| 8.3 | |||
Subtotal—Reorganization Charges |
| 56.8 |
| — |
| 56.8 | |||
Other Charges: | |||||||||
Asset Impairments and Valuation Related Write-downs |
| 29.9 |
| 20.1 |
| 50.0 | |||
Deferred Sales Charges |
| 7.0 |
| — |
| 7.0 | |||
Information technology assets |
| 9.4 |
| — |
| 9.4 | |||
Other |
| 22.9 |
| — |
| 22.9 | |||
Subtotal—Other Charges |
| 69.2 |
| 20.1 |
| 89.3 | |||
Total—Reorganization and Other Charges before tax | $ | 126.0 | $ | 20.1 | $ | 146.1 | |||
Total—Reorganization and Other Charges after tax | $ | 81.9 | $ | 13.1 | $ | 95.0 | |||
All charges referred to as Reorganization Charges included in the tables above, except $17.0 million related to deferred policy acquisition costs in 2001 and $5.3 million related to investment expenses in 2001, are included in “Other Operating Costs and Expenses” in the Company’s consolidated income statement for the respective years indicated.
The following table indicates the line items in the Company’s consolidated and segmented income statements for the year ended December 31, 2001 that the Other Charges in the table above are reflected in.
Protection | Accumulation | Retail Brokerage and Investment Banking | Other/ Reconciling | Total | |||||||||||
Premiums | $ | 1.0 | $ | — | $ | — | $ | — | $ | 1.0 | |||||
Net investment income |
| 20.3 |
| 3.8 |
| — |
| 8.6 |
| 32.7 | |||||
Group pension profit |
| 2.5 |
| — |
| — |
| — |
| 2.5 | |||||
Benefits to policyholders |
| 1.8 |
| 3.9 |
| — |
| — |
| 5.7 | |||||
Amortization of deferred policy acquisition costs |
| — |
| 2.0 |
| — |
| 17.0 |
| 19.0 | |||||
Other operating costs and expenses |
| 17.6 |
| 10.3 |
| 1.7 |
| 35.5 |
| 65.1 | |||||
Total Other Operating Charges |
| 43.2 |
| 20.0 |
| 1.7 |
| 61.1 |
| 126.0 | |||||
Net realized losses on investments |
| 14.9 |
| 2.8 |
| — |
| 2.4 |
| 20.1 | |||||
Total Other Charges | $ | 58.1 | $ | 22.8 | $ | 1.7 | $ | 63.5 | $ | 146.1 | |||||
7
Exhibit 2
PROTECTION PRODUCTS SEGMENT
The “Protection Products” segment represents a wide range of individual life insurance products, including whole life, term life, universal life, variable universal life, last survivor variable life and group universal life. Also included in the Protection Products segment are the: (i) assets and liabilities transferred pursuant to the Group Pension Transaction, as well as the Group Pension Profits, (ii) the Closed Block assets and liabilities, as well as the contribution from the Closed Block, and (iii) the Company’s disability income insurance business which was transferred in the DI Transaction.
8
Exhibit 3
(Unaudited)
PROTECTION PRODUCTS SEGMENT
INCOME STATEMENT DATA
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2002 | 2001(1) | 2002 | 2001(1) | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 182.2 |
| $ | 185.0 |
| $ | 662.9 |
| $ | 675.5 |
| ||||
Universal life and investment-type product policy fees |
| 33.6 |
|
| 41.6 |
|
| 152.1 |
|
| 151.6 |
| ||||
Net investment income (2) |
| 153.0 |
|
| 128.1 |
|
| 598.8 |
|
| 565.6 |
| ||||
Group Pension Profits |
| 60.3 |
|
| 3.5 |
|
| 82.3 |
|
| 30.7 |
| ||||
Other income |
| 18.7 |
|
| 15.4 |
|
| 15.0 |
|
| 16.1 |
| ||||
Total revenues |
| 447.8 |
|
| 373.6 |
|
| 1,511.1 |
|
| 1,439.5 |
| ||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Benefits to policyholders |
| 195.7 |
|
| 195.9 |
|
| 729.7 |
|
| 754.5 |
| ||||
Interest credited to policyholder account balances |
| 18.3 |
|
| 15.0 |
|
| 64.5 |
|
| 60.6 |
| ||||
Amortization of deferred policy acquisition costs |
| 20.8 |
|
| 34.8 |
|
| 110.3 |
|
| 115.7 |
| ||||
Dividends to policyholders |
| 15.6 |
|
| 66.1 |
|
| 185.6 |
|
| 233.9 |
| ||||
Other operating costs and expenses |
| 76.3 |
|
| 83.1 |
|
| 233.7 |
|
| 245.5 |
| ||||
Total benefits and expenses |
| 326.7 |
|
| 394.9 |
|
| 1,323.8 |
|
| 1,410.2 |
| ||||
Pre-tax operating income/(loss) |
| 121.1 |
|
| (21.3 | ) |
| 187.3 |
|
| 29.3 |
| ||||
Net realized losses on investments (2) |
| (75.7 | ) |
| (11.6 | ) |
| (125.6 | ) |
| (6.2 | ) | ||||
Pre-tax income/(loss) | $ | 45.4 |
| $ | (32.9 | ) | $ | 61.7 |
| $ | 23.1 |
| ||||
OPERATING INCOME RECONCILIATION: | ||||||||||||||||
Pre tax operating income/(loss) | $ | 121.1 |
| $ | (21.3 | ) | $ | 187.3 |
| $ | 29.3 |
| ||||
Policyholder dividends resulting from closed block realized (losses)/gains |
| (43.4 | ) |
| 1.3 |
|
| (51.4 | ) |
| 6.0 |
| ||||
Operating Income/(Loss) | $ | 77.7 |
| $ | (20.0 | ) | $ | 135.9 |
| $ | 35.3 |
| ||||
(1) During the 4th quarter of 2001 the company recorded charges aggregating $146.1 million. This consisted of $56.8 million of reorganization charges and $89.3 million of other charges unrelated to the company's reorganization. None of the reorganization charges have been allocated to the segments, whereas all of the aforementioned other charges have. See Exhibit 1A for details.
(2) Segment results for 2002 include the results from discontinued operations.
Adjusted to exclude litigation related charges, venture capital (gains)/losses, the Final Value Payment from the Group Pension Transaction, reorganization & other charges (see Exhibit 1A) allocated to the segment for the three-months and year ended December 31, 2002 and 2001 as follows:
Three-Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2002 | 2001 | 2002 | 2001 | ||||||||||||
($ millions) | |||||||||||||||
Operating Income/(Loss) | $ | 77.7 |
| $ | (20.0 | ) | $ | 135.9 |
| $ | 35.3 | ||||
Litigation related charges |
| — |
|
| — |
|
| 5.5 |
|
| — | ||||
Venture Capital (gains)/losses |
| (10.8 | ) |
| — |
|
| (4.6 | ) |
| 10.3 | ||||
Final Value Payment from Group Pension Transaction |
| (48.1 | ) |
| — |
|
| (48.1 | ) |
| — | ||||
Reorganization Charges (see Exhibit 1A) |
| — |
|
| — |
|
| — |
|
| — | ||||
Other Charges component of 4th quarter 2001 Restructuring and Other charges (see Exhibit 1A) |
| — |
|
| 43.2 |
|
| — |
|
| 43.2 | ||||
Operating Income excluding venture capital, Final Value Payment from the Group Pension Transaction, Reorganization & Other Charges, and litigation related charges | $ | 18.8 |
| $ | 23.2 |
| $ | 88.7 |
| $ | 88.8 | ||||
9
Exhibit 4A
(Unaudited)
GROUP PENSION PROFIT
SUMMARY INCOME STATEMENT
Three-Months Ended December 31, | Year Ended December 31, | ||||||||||||
INCOME STATEMENT DATA: | 2002 | 2001 | 2002 | 2001 | |||||||||
($ millions) | ($ millions) | ||||||||||||
REVENUES: | |||||||||||||
Policy product fees | $ | 4.6 | $ | 5.3 |
| $ | 18.3 | $ | 19.6 | ||||
Net investment income |
| 20.6 |
| 24.0 |
|
| 88.2 |
| 102.0 | ||||
Net realized (losses)/gains on investments (2) |
| 1.0 |
| (3.4 | ) |
| 0.8 |
| 1.5 | ||||
Total revenues |
| 26.2 |
| 25.9 |
|
| 107.3 |
| 123.1 | ||||
BENEFITS AND EXPENSES: | |||||||||||||
Interest credited to policyholder account balances |
| 15.3 |
| 18.6 |
|
| 63.5 |
| 74.8 | ||||
Other operating costs and expenses |
| 4.7 |
| 3.8 |
|
| 15.6 |
| 17.6 | ||||
Total benefits and expenses |
| 20.0 |
| 22.4 |
|
| 79.1 |
| 92.4 | ||||
Group Pension Profits |
| 6.2 |
| 3.5 |
|
| 28.2 |
| 30.7 | ||||
Final Value Payment (1) |
| 54.1 |
| — |
|
| 54.1 |
| — | ||||
Total | $ | 60.3 | $ | 3.5 |
| $ | 82.3 | $ | 30.7 | ||||
(1) Expenses of approximately $6.0 million relating to the Final Value Payment are recorded in “Other operating costs and expenses” on our consolidated income statement.
(2) Includes $2.5 million of pretax realized losses ($1.6 million after-tax) relating to the impairment of certain investments which was included in the 4th quarter 2001Other Charges (refer to Exhibit 1A).
ASSETS AND LIABILITIES TRANSFERRED IN GROUP PENSION TRANSACTION
December 31, 2002 | December 31, 2001 | ||||||
($ millions) | |||||||
| (3 | ) | |||||
BALANCE SHEET DATA : | |||||||
Assets: | |||||||
General Account | |||||||
Fixed maturities | $ | — |
| $ | 1,400.5 | ||
Mortgage loans on real estate |
| — |
|
| 26.5 | ||
Cash and cash equivalents |
| — |
|
| 19.4 | ||
Other Assets |
| — |
|
| 24.5 | ||
Total general account assets |
| — |
|
| 1,470.9 | ||
Separate account assets |
| — |
|
| 3,179.5 | ||
Total Assets | $ | — |
| $ | 4,650.4 | ||
Liabilities: | |||||||
General Account | |||||||
Policyholder account balances and other liabilities | $ | — |
| $ | 1,417.6 | ||
Separate account liabilities |
| — |
|
| 3,179.5 | ||
Total Liabilities | $ | — |
| $ | 4,597.1 | ||
(3) As explained in the notes to MONY Group’s consolidated financial statements, in accordance with GAAP, the Group Pension Transaction did not constitute a sale because the Company retained substantially all the risks and rewards associated with the business transferred to Aegon. Accordingly, over the life of the transaction we were required to reflect the transferred assets and liabilities on our balance sheet under separate captions entitled “Assets transferred in Group Pension Transaction” and “Liabilities transferred in Group Pension Transaction”. As a result of the expiration of the transaction at December 31, 2002 and the recognition of earnings from the Final Value Payment from Aegon we have no further interest in the transferred assets and liabilities and, accordingly, such assets and liabilities are no longer reflected on our balance sheet. Refer to the notes to MONY Group’s consolidated financial statements filed with the SEC on Form 10-K for the year ended December 31, 2001 for further information.
10
Exhibit 4B
(Unaudited)
CLOSED BLOCK INCOME STATEMENT
Three-Months Ended December 31, | Year Ended December 31, | |||||||||
2002 | 2001 | 2002 | 2001 | |||||||
($ millions) | ($ millions) | |||||||||
REVENUES: | ||||||||||
Premiums | 141.7 |
| 154.1 | 509.1 |
| 551.4 | ||||
Net investment income | 98.8 |
| 98.6 | 396.5 |
| 397.6 | ||||
Net realized (losses)/gains on investments | (43.4 | ) | 1.3 | (51.4 | ) | 6.0 | ||||
Other income | 0.6 |
| 0.9 | 2.2 |
| 2.4 | ||||
Total revenues | 197.7 |
| 254.9 | 856.4 |
| 957.4 | ||||
BENEFITS AND EXPENSES: | ||||||||||
Benefits to policyholders | 156.1 |
| 161.8 | 566.8 |
| 606.9 | ||||
Interest credited to policyholders account balances | 2.3 |
| 2.4 | 8.6 |
| 8.9 | ||||
Amortization of deferred policy acquisition costs | 12.0 |
| 13.3 | 49.1 |
| 59.4 | ||||
Dividends to policyholders | 15.3 |
| 65.8 | 185.5 |
| 233.1 | ||||
Operating costs and expenses | 1.6 |
| 1.3 | 6.1 |
| 7.0 | ||||
Total benefits and expenses | 187.3 |
| 244.6 | 816.1 |
| 915.3 | ||||
Closed Block Profit | 10.4 |
| 10.3 | 40.3 |
| 42.1 | ||||
CLOSED BLOCK ASSETS AND LIABILITIES
December 31, 2002 | December 31, 2001 | |||||
($ millions) | ||||||
BALANCE SHEET DATA : | ||||||
Assets: | ||||||
General Account | ||||||
Fixed maturities | $ | 4,160.9 | $ | 3,868.9 | ||
Mortgage loans on real estate |
| 633.6 |
| 622.1 | ||
Real estate to be disposed of |
| 8.3 |
| — | ||
Amounts due from broker |
| 0.9 |
| 6.2 | ||
Policy loans |
| 1,119.0 |
| 1,144.3 | ||
Cash and cash equivalents |
| 59.2 |
| 56.2 | ||
Premiums receivable |
| 11.1 |
| 12.5 | ||
Deferred policy acquisition costs |
| 430.5 |
| 500.6 | ||
Other assets |
| 210.5 |
| 219.3 | ||
Total closed block assets | $ | 6,634.0 | $ | 6,430.1 | ||
Liabilities: | ||||||
General Account | ||||||
Future policy benefits | $ | 6,901.4 | $ | 6,869.80 | ||
Policyholders’ account balances |
| 291.6 |
| 292.9 | ||
Other policyholders’ liabilities |
| 159.1 |
| 162.2 | ||
Other liabilities |
| 325.2 |
| 163.9 | ||
Total closed block liabilities | $ | 7,677.3 | $ | 7,488.8 | ||
11
Exhibit 4C
(Unaudited)
FIXED MATURITIES BY CREDIT QUALITY—CLOSED BLOCK
PUBLIC FIXED MATURITIES BY CREDIT QUALITY
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||||||||||||||||
NAIC Rating | Rating Agency Equivalent Designation | Amortized Cost | % of Total | Estimated Fair Value | Amortized Cost | % of Total | Estimated Fair Value | |||||||||||||
($ millions) | ||||||||||||||||||||
1 | Aaa/Aa/A | $ | 1,641.7 | 74.3 | % | $ | 1,787.4 | $ | 1,589.1 | 76.7 | % | $ | 1,631.6 | |||||||
2 | Baa |
| 441.6 | 19.3 | % |
| 465.5 |
| 391.3 | 18.8 | % |
| 399.6 | |||||||
3 | Ba |
| 113.3 | 4.7 | % |
| 113.2 |
| 93.1 | 4.1 | % |
| 86.2 | |||||||
4 | B |
| 36.0 | 1.5 | % |
| 35.0 |
| 5.0 | 0.2 | % |
| 4.9 | |||||||
5 | Caa and lower |
| — | 0.0 | % |
| — |
| 5.0 | 0.2 | % |
| 5.1 | |||||||
6 | In or near default |
| 6.0 | 0.2 | % |
| 6.0 |
| 0.6 | 0.0 | % |
| 0.5 | |||||||
Subtotal |
| 2,238.6 | 100.0 | % |
| 2,407.1 |
| 2,084.1 | 100.0 | % |
| 2,127.9 | ||||||||
Redeemable preferred stock |
| — | 0.0 | % |
| — |
| — | 0.0 | % |
| — | ||||||||
Total Public Fixed | ||||||||||||||||||||
Maturities | $ | 2,238.6 | 100.0 | % | $ | 2,407.1 | $ | 2,084.1 | 100.0 | % | $ | 2,127.9 | ||||||||
PRIVATE FIXED MATURITIES BY CREDIT QUALITY
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||||||||||||||||
NAIC Rating | Rating Agency Equivalent Designation | Amortized Cost | % of Total | Estimated Fair Value | Amortized Cost | % of Total | Estimated Fair Value | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||||||
1 | Aaa/Aa/A | $ | 647.3 | 40.1 | % | $ | 703.0 | $ | 845.3 | 50.3 | % | $ | 875.1 | |||||||
2 | Baa |
| 709.5 | 44.2 | % |
| 776.0 |
| 742.5 | 43.6 | % |
| 759.5 | |||||||
3 | Ba |
| 209.5 | 11.9 | % |
| 208.2 |
| 83.6 | 4.8 | % |
| 83.3 | |||||||
4 | B |
| 29.3 | 1.7 | % |
| 29.7 |
| 17.8 | 1.0 | % |
| 17.1 | |||||||
5 | Caa and lower |
| 16.7 | 0.9 | % |
| 15.3 |
| 7.5 | 0.3 | % |
| 6.0 | |||||||
6 | In or near default |
| 22.3 | 1.2 | % |
| 21.6 |
| — | 0.0 | % |
| — | |||||||
Subtotal |
| 1,634.6 | 100.0 | % |
| 1,753.8 |
| 1,696.7 | 100.0 | % |
| 1,741.0 | ||||||||
Redeemable preferred stock |
| — | 0.0 | % |
| — |
| — | 0.0 | % |
| — | ||||||||
Total Private Fixed | ||||||||||||||||||||
Maturities | $ | 1,634.6 | 100.0 | % | $ | 1,753.8 | $ | 1,696.7 | 100.0 | % | $ | 1,741.0 | ||||||||
TOTAL FIXED MATURITIES BY CREDIT QUALITY
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||||||||||||||||
NAIC Rating | Rating Agency Equivalent Designation | Amortized Cost | % of Total | Estimated Fair Value | Amortized Cost | % of Total | Estimated Fair Value | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||||||
1 | Aaa/Aa/A | $ | 2,289.0 | 59.8 | % | $ | 2,490.4 | $ | 2,434.4 | 64.8 | % | $ | 2,506.7 | |||||||
2 | Baa |
| 1,151.1 | 29.8 | % |
| 1,241.5 |
| 1,133.8 | 29.9 | % |
| 1,159.1 | |||||||
3 | Ba |
| 322.8 | 7.7 | % |
| 321.4 |
| 176.7 | 4.4 | % |
| 169.5 | |||||||
4 | B |
| 65.3 | 1.6 | % |
| 64.7 |
| 22.8 | 0.6 | % |
| 22.0 | |||||||
5 | Caa and lower |
| 16.7 | 0.4 | % |
| 15.3 |
| 12.5 | 0.3 | % |
| 11.1 | |||||||
6 | In or near default |
| 28.3 | 0.7 | % |
| 27.6 |
| 0.6 | 0.0 | % |
| 0.5 | |||||||
Subtotal |
| 3,873.2 | 100.0 | % |
| 4,160.9 |
| 3,780.8 | 100.0 | % |
| 3,868.9 | ||||||||
Redeemable preferred stock |
| — | 0.0 | % |
| — |
| — | 0.0 | % |
| — | ||||||||
Total Fixed | ||||||||||||||||||||
Maturities | $ | 3,873.2 | 100.0 | % | $ | 4,160.9 | $ | 3,780.8 | 100.0 | % | $ | 3,868.9 | ||||||||
12
Exhibit 5
(Unaudited)
PROTECTION PRODUCTS SEGMENT
NEW ANNUALIZED AND SINGLE PREMIUMS AND INFORCE
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||
2002 | 2001 | 2002 | 20001 | |||||||||
($ millions) | ($ millions) | |||||||||||
PROTECTION BUSINESS SALES: | ||||||||||||
Traditional life | $ | 1.4 | $ | 1.5 | $ | 4.7 | $ | 3.3 | ||||
Term |
| 14.6 |
| 12.3 |
| 46.8 |
| 41.4 | ||||
Universal life |
| 10.5 |
| 10.8 |
| 38.0 |
| 31.6 | ||||
Variable universal life |
| 8.6 |
| 18.0 |
| 38.3 |
| 61.8 | ||||
Corporate owned life insurance |
| 23.5 |
| 19.7 |
| 148.2 |
| 75.1 | ||||
Group universal life |
| 1.7 |
| 0.5 |
| 3.0 |
| 1.5 | ||||
Total | $ | 60.3 | $ | 62.8 | $ | 279.0 | $ | 214.7 | ||||
Year Ended | ||||||
December 31, 2002 | December 31, 2001 | |||||
Insurance In Force ($ in millions except number of policies) | ||||||
Traditional Life (1): | ||||||
Number of policies (in thousands) |
| 839.1 |
| 857.3 | ||
GAAP life reserves | $ | 7,447.0 | $ | 7,374.8 | ||
Face amounts | $ | 82,598.6 | $ | 73,678.2 | ||
Universal Life: | ||||||
Number of policies (in thousands) |
| 74.0 |
| 74.7 | ||
GAAP life reserves | $ | 765.4 | $ | 711.2 | ||
Face amounts | $ | 10,790.2 | $ | 10,843.6 | ||
Variable Universal Life: | ||||||
Number of policies (in thousands) |
| 68.0 |
| 65.9 | ||
GAAP life reserves | $ | 880.3 | $ | 772.0 | ||
Face amounts | $ | 18,790.2 | $ | 18,231.2 | ||
Group Universal Life: | ||||||
Number of policies (in thousands) |
| 41.8 |
| 43.9 | ||
GAAP life reserves | $ | 70.3 | $ | 66.7 | ||
Face amounts | $ | 1,497.3 | $ | 1,571.4 | ||
Total: | ||||||
Number of policies (in thousands) |
| 1,022.9 |
| 1,041.8 | ||
GAAP life reserves | $ | 9,163.0 | $ | 8,924.7 | ||
Face amounts | $ | 113,676.3 | $ | 104,324.4 |
(1) Consists of whole life and term policies
13
Exhibit 6
(Unaudited)
PROTECTION PRODUCTS SEGMENT
STATUTORY DIRECT PREMIUMS BY PRODUCT
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||
($ millions) | ||||||||||||
LIFE INSURANCE: | ||||||||||||
Traditional Life (1): | ||||||||||||
First year & single | $ | 54.2 | $ | 54.8 | $ | 180.9 | $ | 187.3 | ||||
Renewal |
| 177.4 |
| 174.3 |
| 536.7 |
| 525.8 | ||||
Total | $ | 231.6 | $ | 229.1 | $ | 717.6 | $ | 713.1 | ||||
Universal Life: | ||||||||||||
First year & single | $ | 12.7 | $ | 9.3 | $ | 39.8 | $ | 29.6 | ||||
Renewal |
| 23.9 |
| 25.2 |
| 95.8 |
| 96.9 | ||||
Total | $ | 36.6 | $ | 34.5 | $ | 135.6 | $ | 126.5 | ||||
Variable Universal Life: | ||||||||||||
First year & single | $ | 8.5 | $ | 18.5 | $ | 45.7 | $ | 70.7 | ||||
Renewal |
| 28.6 |
| 27.5 |
| 110.1 |
| 96.4 | ||||
Total | $ | 37.1 | $ | 46.0 | $ | 155.8 | $ | 167.1 | ||||
Corporate Sponsored Variable Universal Life: | ||||||||||||
First year & single | $ | 32.0 | $ | 9.7 | $ | 133.8 | $ | 59.5 | ||||
Renewal |
| 1.2 |
| 6.2 |
| 28.4 |
| 48.2 | ||||
Total | $ | 33.2 | $ | 15.9 | $ | 162.2 | $ | 107.7 | ||||
Group Universal Life: | ||||||||||||
First year & single | $ | 1.6 | $ | 0.4 | $ | 2.7 | $ | 1.9 | ||||
Renewal |
| 2.5 |
| 2.6 |
| 10.4 |
| 10.5 | ||||
Total | $ | 4.1 | $ | 3.0 | $ | 13.1 | $ | 12.4 | ||||
Total life insurance | $ | 342.6 | $ | 328.5 | $ | 1,184.3 | $ | 1,126.8 | ||||
(1) Consists of whole life and term policies
14
Exhibit 7
ACCUMULATION PRODUCTS SEGMENT
The Accumulation Products segment represents fixed annuities, single premium deferred annuities, immediate annuities, flexible payment variable annuities and proprietary retail mutual funds.
15
Exhibit 8
(Unaudited)
ACCUMULATION PRODUCTS SEGMENT
INCOME STATEMENT DATA
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2002 | 2001(1) | 2002 | 2001(1) | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 4.5 |
| $ | 1.9 |
| $ | 11.6 |
| $ | 5.3 |
| ||||
Universal life and investment-type product policy fees |
| 10.5 |
|
| 12.7 |
|
| 46.8 |
|
| 54.7 |
| ||||
Net investment income (2) |
| 22.7 |
|
| 13.6 |
|
| 82.8 |
|
| 70.5 |
| ||||
Other income |
| 22.9 |
|
| 30.7 |
|
| 96.1 |
|
| 107.4 |
| ||||
Total revenues |
| 60.6 |
|
| 58.9 |
|
| 237.3 |
|
| 237.9 |
| ||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Benefits to policyholders |
| 12.5 |
|
| 15.0 |
|
| 41.9 |
|
| 34.1 |
| ||||
Interest credited to policyholder account balances |
| 12.8 |
|
| 10.3 |
|
| 46.0 |
|
| 41.3 |
| ||||
Amortization of deferred policy acquisition costs |
| 14.9 |
|
| 8.6 |
|
| 45.8 |
|
| 26.1 |
| ||||
Dividends to policyholders |
| 0.2 |
|
| 0.4 |
|
| 1.2 |
|
| 1.6 |
| ||||
Other operating costs and expenses |
| 31.0 |
|
| 40.3 |
|
| 119.4 |
|
| 127.2 |
| ||||
Total benefits and expenses |
| 71.4 |
|
| 74.6 |
|
| 254.3 |
|
| 230.3 |
| ||||
Pre-tax operating (loss)/income |
| (10.8 | ) |
| (15.7 | ) |
| (17.0 | ) |
| 7.6 |
| ||||
Net realized losses on investments (2) |
| (9.2 | ) |
| (4.2 | ) |
| (23.7 | ) |
| (1.9 | ) | ||||
Pre-tax (loss)/income | $ | (20.0 | ) | $ | (19.9 | ) | $ | (40.7 | ) | $ | 5.7 |
| ||||
(1) During the 4th quarter of 2001 the company recorded charges aggregating $146.1 million. This consisted of $56.8 million of reorganization charges and $89.3 million of other charges unrelated to the company’s reorganization. None of the reorganization charges have been allocated to the segments, whereas all of the aforementioned other charges have. See Exhibit 1A for details.
(2) Segment results for 2002 include the results from discontinued operations.
Adjusted to exclude litigation related charges, venture capital (gains)/loss, Final Value Payment from Group Pension Transaction, Reorganization & Other charges (see Exhibit 1A) allocated to the segment for the three-months and year ended December 31, 2002 and 2001 as follows:
Three-Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2002 | 2001 | 2002 | 2001 | ||||||||||||
($ millions) | |||||||||||||||
Operating (Loss)/Income | $ | (10.8 | ) | $ | (15.7 | ) | $ | (17.0 | ) | $ | 7.6 | ||||
Litigation related charges |
| — |
|
| — |
|
| 1.0 |
|
| — | ||||
Venture Capital (gains)/losses |
| (1.8 | ) |
| — |
|
| (0.8 | ) |
| 1.9 | ||||
Reorganization Charges (see Exhibit 1A) |
| — |
|
| — |
|
| — |
|
| — | ||||
Other Charges component of 4th quarter 2001 Restructuring and Other charges ( see Exhibit 1A) |
| — |
|
| 20.0 |
|
| — |
|
| 20.0 | ||||
Operating (loss)/income excluding venture capital, Reorganization & Other Charges, and litigation related charges | $ | (12.6 | ) | $ | 4.3 |
| $ | (16.8 | ) | $ | 29.5 | ||||
16
Exhibit 9
(Unaudited)
ACCUMULATION PRODUCTS SEGMENT
ASSETS UNDER MANAGEMENT
December 31, 2002 | December 31, 2001 | |||||
($ billions) | ||||||
ACCUMULATION SEGMENT: | ||||||
Assets under management | ||||||
Individual variable annuities | $ | 3.2 | $ | 3.9 | ||
Individual fixed annuities |
| 0.8 |
| 0.7 | ||
Proprietary retail mutual funds |
| 3.7 |
| 4.4 | ||
$ | 7.7 | $ | 9.0 | |||
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||
($ billions) | ($ billions) | |||||||||||
RECONCILIATION IN ACCOUNT VALUE: | ||||||||||||
VARIABLE ANNUITY: | ||||||||||||
Beginning account value | 3.1 |
| 3.5 |
| 3.9 |
| 4.4 |
| ||||
Sales | 0.1 |
| 0.1 |
| 0.4 |
| 0.4 |
| ||||
Market appreciation | 0.1 |
| 0.3 |
| (0.5 | ) | (0.4 | ) | ||||
Mortality and expense | (0.0 | ) | (0.0 | ) | (0.0 | ) | (0.0 | ) | ||||
Surrenders and withdrawals | (0.1 | ) | (0.1 | ) | (0.4 | ) | (0.4 | ) | ||||
3.2 |
| 3.9 |
| 3.2 |
| 3.9 |
| |||||
ENTERPRISE GROUP OF FUNDS: | ||||||||||||
Beginning account value | 3.5 |
| 4.0 |
| 4.4 |
| 4.8 |
| ||||
Sales | 0.3 |
| 0.3 |
| 1.2 |
| 1.3 |
| ||||
Dividends reinvested | 0.0 |
| 0.0 |
| 0.0 |
| 0.0 |
| ||||
Market appreciation | 0.1 |
| 0.4 |
| (0.9 | ) | (0.6 | ) | ||||
Redemptions | (0.3 | ) | (0.3 | ) | (1.1 | ) | (1.2 | ) | ||||
Ending account value | 3.7 |
| 4.4 |
| 3.7 |
| 4.4 |
| ||||
In 2001 sales are net of exchanges to new product series of approximately $71 million in the first quarter, and $72 million in the second quarter, $37 million in the third quarter and $28 million in the fourth quarter. 2002 sales are net of exchanges to new product series of $17 million in the first quarter, $16 million in the second quarter, $19 million in the third quarter, and $19 million for the fourth quarter.
17
Exhibit 10
RETAIL BROKERAGE AND INVESTMENT BANKING
The Retail Brokerage and Investment Banking segment is comprised of results of the Company’s subsidiaries, The Advest Group, Inc. (“AGI”), Matrix Capital Markets Group (“Matrix”) and MONY Securities Corp. (“MSC”). AGI through its subsidiaries, provides diversified financial services including securities brokerage, trading, investment banking, trust and asset management. Matrix is a middle market investment bank specializing in merger and acquisition services for a middle market client base. MSC is a broker dealer which transacts customer trades primarily in securities and mutual funds. In addition to selling the Company’s proprietary investment products, MSC provides customers of the Company’s protection and accumulation products access to other non-proprietary investment products (including stocks, bonds, limited partnership interests, tax-exempt unit investment trusts and other investment securities).
18
Exhibit 11
(Unaudited)
RETAIL BROKERAGE AND INVESTMENT BANKING
INCOME STATEMENT DATA
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||
2002 | 2001(1) | 2002 | 2001(1) | |||||||||||
($ millions) | ($ millions) | |||||||||||||
REVENUES: | ||||||||||||||
Net investment income | $ | — | $ | 2.8 |
| $ | 0.3 | $ | 8.0 |
| ||||
Retail brokerage and investment banking |
| 99.6 |
| 90.5 |
|
| 397.1 |
| 343.5 |
| ||||
Other income |
| — |
| — |
|
| 0.7 |
| — |
| ||||
Total revenues |
| 99.6 |
| 93.3 |
|
| 398.1 |
| 351.5 |
| ||||
BENEFITS AND EXPENSES: | ||||||||||||||
Other operating costs and expenses |
| 98.6 |
| 100.0 |
|
| 395.7 |
| 371.3 |
| ||||
Total benefits and expenses |
| 98.6 |
| 100.0 |
|
| 395.7 |
| 371.3 |
| ||||
Pre-tax operating income/(loss) |
| 1.0 |
| (6.7 | ) |
| 2.4 |
| (19.8 | ) | ||||
Net realized losses on investments(2) |
| — |
| — |
|
| — |
| (0.2 | ) | ||||
Pre-tax income/(loss) | $ | 1.0 | $ | (6.7 | ) | $ | 2.4 | $ | (20.0 | ) | ||||
(1) During the 4th quarter of 2001 the company recorded charges aggregating $146.1 million. This consisted of $56.8 million of reorganization charges and $89.3 million of other charges unrelated to the company’s reorganization. None of the reorganization charges have been allocated to the segments, whereas all of the aforementioned other charges have. See Exhibit 1A for details.
(2) Segment results for 2002 include the results from discontinued operations.
Adjusted to exclude litigation related charges, venture capital (gains)/loss, Final Value Payment from Group Pension Transaction, Reorganization & Other charges (see Exhibit 1A) allocated to the segment for the three-months and year ended December 31, 2002 and 2001 as follows:
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||
($ millions) | ||||||||||||||
Operating (Loss)/Income | $ | 1.0 | $ | (6.7 | ) | $ | 2.4 | $ | (19.8 | ) | ||||
Litigation related charges |
| — |
| — |
|
| — |
| — |
| ||||
Venture Capital (gains)/losses |
| — |
| — |
|
| — |
| — |
| ||||
Reorganization Charges (see Exhibit 1A) |
| — |
| — |
|
| — |
| — |
| ||||
Other Charges component of 4th quarter 2001 Restructuring and Other |
| — |
| 1.7 |
|
| — |
| 1.7 |
| ||||
Operating (loss)/income excluding venture capital, Reorganization & Other Charges, and litigation related charges | $ | 1.0 | $ | (5.0 | ) | $ | 2.4 | $ | (18.1 | ) | ||||
19
Exhibit 12
(Unaudited)
RETAIL BROKERAGE AND INVESTMENT BANKING
INCOME STATEMENT DETAIL
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||
($ millions) | ($ millions) | |||||||||||||
REVENUES: | ||||||||||||||
Commissions | $ | 40.2 | $ | 37.6 |
| $ | 164.8 | $ | 140.7 |
| ||||
Interest |
| 8.1 |
| 10.3 |
|
| 35.2 |
| 56.8 |
| ||||
Principal transactions |
| 28.1 |
| 23.2 |
|
| 107.2 |
| 78.4 |
| ||||
Asset management and administration |
| 12.1 |
| (17.7 | ) |
| 53.2 |
| 17.5 |
| ||||
Investment banking |
| 10.0 |
| 38.1 |
|
| 31.9 |
| 50.3 |
| ||||
Other |
| 1.1 |
| 1.7 |
|
| 5.8 |
| 7.5 |
| ||||
Total revenues |
| 99.6 |
| 93.2 |
|
| 398.1 |
| 351.2 |
| ||||
EXPENSES: | ||||||||||||||
Compensation |
| 55.4 |
| 51.8 |
|
| 222.9 |
| 188.4 |
| ||||
Interest |
| 4.7 |
| 5.8 |
|
| 20.8 |
| 37.9 |
| ||||
Goodwill and other intangible amortization |
| 1.1 |
| 3.6 |
|
| 4.2 |
| 12.8 |
| ||||
Other |
| 37.4 |
| 38.7 |
|
| 147.8 |
| 132.1 |
| ||||
Total expenses |
| 98.6 |
| 99.9 |
|
| 395.7 |
| 371.2 |
| ||||
Pre-tax income/(loss) | $ | 1.0 | $ | (6.7 | ) | $ | 2.4 | $ | (20.0 | ) | ||||
ADVEST—NET INTEREST Three-Months Ended | ADVEST—NET INTEREST Year Ended | |||||||||||||||||||||||
December 31, 2002 | December 31, 2001 | December 31, 2002 | December 31, 2001(1) | |||||||||||||||||||||
($ millions) | ($ millions) | |||||||||||||||||||||||
Net Interest Income— | ||||||||||||||||||||||||
Interest Income: | ||||||||||||||||||||||||
Brokerage customers (2) | $ | 3.3 | 40.7 | % | $ | 4.7 | 45.6 | % | $ | 15.0 | 42.6 | % | $ | 25.6 | 45.1 | % | ||||||||
Stock borrowed (2) |
| 0.9 | 11.0 | % |
| 2.2 | 21.4 | % |
| 4.5 | 12.8 | % |
| 21.2 | 37.3 | % | ||||||||
Investments |
| 0.1 | 1.2 | % |
| 0.1 | 1.0 | % |
| 0.3 | 0.9 | % |
| 0.6 | 1.2 | % | ||||||||
Security inventory |
| 2.9 | 35.8 | % |
| 2.7 | 26.2 | % |
| 11.4 | 32.4 | % |
| 7.5 | 13.2 | % | ||||||||
Other |
| 0.9 | 11.3 | % |
| 0.6 | 5.8 | % |
| 4.0 | 11.3 | % |
| 1.9 | 3.2 | % | ||||||||
$ | 8.1 | 100.0 | % | $ | 10.3 | 100.0 | % | $ | 35.2 | 100.0 | % | $ | 56.8 | 100.0 | % | |||||||||
Interest Expense: | ||||||||||||||||||||||||
Stock loaned (2) |
| 3.1 | 65.2 | % |
| 2.6 | 44.8 | % |
| 12.9 | 62.0 | % |
| 22.0 | 58.0 | % | ||||||||
Brokerage customers |
| 1.3 | 28.3 | % |
| 0.4 | 6.9 | % |
| 6.0 | 28.8 | % |
| 3.3 | 8.7 | % | ||||||||
Borrowings |
| 0.2 | 4.2 | % |
| 2.5 | 43.1 | % |
| 1.5 | 7.2 | % |
| 12.1 | 32.0 | % | ||||||||
Other |
| 0.1 | 2.3 | % |
| 0.3 | 5.2 | % |
| 0.4 | 2.0 | % |
| 0.5 | 1.3 | % | ||||||||
| 4.7 | 100.0 | % |
| 5.8 | 100.0 | % |
| 20.8 | 100.0 | % |
| 37.9 | 100.0 | % | |||||||||
Net interest income | $ | 3.4 | 43.2 | % | $ | 4.5 | 43.7 | % | $ | 14.4 | 40.9 | % | $ | 18.9 | 33.3 | % | ||||||||
(1) Includes Advest results for the 11 month period ended December 31, 2001. Advest was acquired by the MONY Group on January 31, 2001.
(2) The decrease in interest income from 2001 to 2002 reflected in the line items above entitled “Brokerage customers” and “Stock borrowed”, as well as the decrease in interest expense from 2001 to 2002 reflected in the line item “Stock loaned” resulted from the outsourcing of Advest’s clearing operation to Wexford which was completed in early 2002. In connection with the outsourcing, Advest entered into an interest-sharing agreement with Wexford which has resulted in lower net interest profits in the current year.
ADVEST STATISTICAL DATA
Year Ended December 31, 2002 | |||
Client Assets ( in millions) * | $ | 30,513.5 | |
Number of Client Accounts (in thousands) |
| 277 |
* Includes assets managed under fee-based programs of approximately $5,994 million.
20
Exhibit 13
OTHER PRODUCTS SEGMENT
The Company’s Other Products segment primarily consists of an insurance brokerage operation and the Run-Off businesses. The insurance brokerage operation provides the Company’s career agency sales force with access to non-variable life, annuity, small group health and specialty insurance products written by other carriers to meet the insurance and investment needs of its customers. The Run-Off Businesses primarily consist of group life and health insurance as well as the group pension business that was not included in the Group Pension Transaction.
RECONCILING AMOUNTS
The reconciling amounts include certain benefits for the Company’s benefit plans, the results of the holding companies and certain non-recurring items.
21
Exhibit 14
(Unaudited)
OTHER/RECONCILING PRODUCTS SEGMENT
INCOME STATEMENT DATA
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||
REVENUES: | ||||||||||||||||
Premiums | $ | 9.0 |
| $ | 7.9 |
| $ | 15.9 |
| $ | 14.5 |
| ||||
Universal life and investment-type product policy fees |
| 0.2 |
|
| 0.8 |
|
| 1.6 |
|
| 0.9 |
| ||||
Net investment income (1) |
| 20.1 |
|
| 1.5 |
|
| 56.3 |
|
| 48.0 |
| ||||
Other income |
| 1.6 |
|
| 7.2 |
|
| 28.1 |
|
| 23.6 |
| ||||
Total revenues |
| 30.9 |
|
| 17.4 |
|
| 101.9 |
|
| 87.0 |
| ||||
BENEFITS AND EXPENSES: | ||||||||||||||||
Benefits to policyholders |
| 9.5 |
|
| 7.7 |
|
| 31.5 |
|
| 26.1 |
| ||||
Interest credited to policyholder account balances |
| 2.4 |
|
| 2.0 |
|
| 8.8 |
|
| 8.6 |
| ||||
Amortization of deferred policy acquisition costs |
| — |
|
| 17.0 |
|
| — |
|
| 17.0 |
| ||||
Dividends to policyholders |
| 0.4 |
|
| 0.4 |
|
| 1.2 |
|
| 1.1 |
| ||||
Other operating costs and expenses |
| 35.8 |
|
| 62.0 |
|
| 111.2 |
|
| 132.4 |
| ||||
Total benefits and expenses |
| 48.1 |
|
| 89.1 |
|
| 152.7 |
|
| 185.2 |
| ||||
Pre-tax operating loss |
| (17.2 | ) |
| (71.7 | ) |
| (50.8 | ) |
| (98.2 | ) | ||||
Net realized losses on investments (1) |
| (3.8 | ) |
| (2.5 | ) |
| (8.5 | ) |
| (4.0 | ) | ||||
Pre-tax loss | $ | (21.0 | ) | $ | (74.2 | ) | $ | (59.3 | ) | $ | (102.2 | ) | ||||
(1) During the 4th quarter of 2001 the company recorded charges aggregating $146.1 million. This consisted of $56.8 million of reorganization charges and $89.3 million of other charges unrelated to the company’s reorganization. See Exhibit 1A for details.
(2) Segment results for 2002 include the results from discontinued operations.
Adjusted to exclude litigation related charges, venture capital (gains)/loss, Final Value Payment from Group Pension Transaction, Reorganization & Other charges (see Exhibit 1A) allocated to the segment for the three-months and year ended December 31, 2002 and 2001 as follows:
Three-Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||||
($ millions) | ||||||||||||||||
Operating income | $ | (17.2 | ) | $ | (71.7 | ) | $ | (50.8 | ) | $ | (98.2 | ) | ||||
Litigation related charges |
| — |
|
| — |
|
| 0.3 |
|
| — |
| ||||
Venture capital (gains)/losses |
| (0.5 | ) |
| — |
|
| (0.2 | ) |
| 1.8 |
| ||||
Reorganization Charges (see Exhibit 1A) |
| — |
|
| 56.8 |
|
| — |
|
| 56.8 |
| ||||
Other Charges |
| 7.7 |
|
| 4.3 |
|
| 7.7 |
|
| 4.3 |
| ||||
Operating income excluding venture capital, Reorganization & Other Charges, and litigation related charges | $ | (10.0 | ) | $ | (10.6 | ) | $ | (43.0 | ) | $ | (35.3 | ) | ||||
22
INVESTMENTS
ALL INVESTMENT DATA PRESENTED IN THE FOLLOWING SECTION
INCLUDES INVESTED ASSETS IN THE CLOSED BLOCK
23
Exhibit 16
(Unaudited)
CONSOLIDATED GAAP INVESTED ASSETS
As of December 31, 2002 | As of December 31, 2001 | |||||||||||
Carrying Value | % of Total | Carrying Value | % of Total | |||||||||
($ Millions) | ||||||||||||
INVESTED ASSETS | ||||||||||||
Fixed Maturities, Available for Sale | $ | 7,971.1 | 66.5 | % | $ | 6,976.0 | 62.8 | % | ||||
Fixed Maturities, Held to Maturity |
| 0.1 | 0.0 | % |
| 0.1 | 0.0 | % | ||||
Equity Securities, Available for Sale |
| 249.0 | 2.1 | % |
| 299.2 | 2.7 | % | ||||
Mortgage Loans on Real Estate |
| 1,877.4 | 15.7 | % |
| 1,809.7 | 16.3 | % | ||||
Policy Loans |
| 1,212.5 | 10.1 | % |
| 1,229.0 | 11.1 | % | ||||
Real Estate to be Disposed Of |
| — | 0.0 | % |
| 172.3 | 1.6 | % | ||||
Real Estate Held for Investment |
| 180.2 | 1.5 | % |
| 58.5 | 0.5 | % | ||||
Other Invested Assets |
| 110.8 | 0.9 | % |
| 116.7 | 1.0 | % | ||||
Cash and Cash Equivalents |
| 390.0 | 3.2 | % |
| 441.0 | 4.0 | % | ||||
Invested Assets, excluding Trading Securities | $ | 11,991.1 | 100.0 | % | $ | 11,102.5 | 100.0 | % | ||||
The Exhibit above includes invested assets in the Closed Block and excludes Trading Securities in Advest.
24
Exhibit 17
(Unaudited)
INVESTMENT RESULTS BY ASSET CATEGORY-COMBINED BASIS
Three Months Ended December 31, 2002 | Three Months Ended December 31, 2001 | Year Ended December 31, 2002 | Year Ended December 31, 2001 | Year Ended December 31,2000 | |||||||||||||||||||||||||||||||
Yield (2) | Amount | Yield (2) | Amount | Yield (1) | Amount | Yield (1) | Amount | Yield (1) | Amount | ||||||||||||||||||||||||||
($ millions) | ($ millions) | ($ millions) | ($ millions) | ($ millions) | |||||||||||||||||||||||||||||||
FIXED MATURITIES (4) | |||||||||||||||||||||||||||||||||||
Investment Income | 6.5 | % | $ | 121.6 |
| 7.2 | % | $ | 119.9 |
| 6.9 | % | $ | 491.0 |
| 7.3 | % | $ | 492.5 |
| 7.4 | % | $ | 495.4 |
| ||||||||||
Realized Gains (losses) | -3.4 | % |
| (63.0 | ) | -0.9 | % |
| (15.0 | ) | -1.1 | % |
| (79.6 | ) | 0.0 | % |
| (2.6 | ) | -0.4 | % |
| (30.1 | ) | ||||||||||
Total | 3.1 | % | $ | 58.6 |
| 6.3 | % | $ | 104.9 |
| 5.8 | % | $ | 411.4 |
| 7.3 | % | $ | 489.9 |
| 7.0 | % | $ | 465.3 |
| ||||||||||
Ending Assets | $ | 7,453.4 |
| $ | 6,829.2 |
| $ | 7,453.4 |
| $ | 6,829.2 |
| $ | 6,702.7 |
| ||||||||||||||||||||
EQUITY SECURITIES | |||||||||||||||||||||||||||||||||||
Investment Income | 22.1 | % | $ | 13.8 |
| -27.4 | % | $ | (20.9 | ) | 2.9 | % | $ | 7.9 |
| -10.8 | % | $ | (33.9 | ) | 56.4 | % | $ | 239.4 |
| ||||||||||
Realized Gains (losses) | -24.1 | % |
| (15.1 | ) | -0.9 | % |
| (0.7 | ) | -13.6 | % |
| (37.3 | ) | -2.5 | % |
| (7.8 | ) | 5.1 | % |
| 21.6 |
| ||||||||||
Total | -2.0 | % | $ | (1.3 | ) | -28.3 | % | $ | (21.6 | ) | -10.7 | % | $ | (29.4 | ) | -13.3 | % | $ | (41.7 | ) | 61.5 | % | $ | 261.0 |
| ||||||||||
Ending Assets | $ | 249.0 |
| $ | 299.2 |
| $ | 249.0 |
| $ | 299.2 |
| $ | 328.6 |
| ||||||||||||||||||||
MORTGAGE LOANS | |||||||||||||||||||||||||||||||||||
Investment Income | 7.8 | % | $ | 35.5 |
| 7.7 | % | $ | 34.9 |
| 7.5 | % | $ | 138.9 |
| 7.8 | % | $ | 139.8 |
| 8.3 | % | $ | 144.4 |
| ||||||||||
Realized Gains (losses) | -0.9 | % |
| (4.2 | ) | 1.0 | % |
| 4.6 |
| -0.2 | % |
| (3.0 | ) | 0.5 | % |
| 9.3 |
| 1.1 | % |
| 19.8 |
| ||||||||||
Total | 6.9 | % | $ | 31.3 |
| 8.7 | % | $ | 39.5 |
| 7.3 | % | $ | 135.9 |
| 8.3 | % | $ | 149.1 |
| 9.4 | % | $ | 164.2 |
| ||||||||||
Ending Assets | $ | 1,877.4 |
| $ | 1,809.7 |
| $ | 1,877.4 |
| $ | 1,809.7 |
| $ | 1,754.7 |
| ||||||||||||||||||||
REAL ESTATE (3) | |||||||||||||||||||||||||||||||||||
Investment Income | 4.7 | % | $ | 2.3 |
| -10.3 | % | $ | (5.9 | ) | 7.4 | % | $ | 15.3 |
| 2.9 | % | $ | 6.3 |
| 7.0 | % | $ | 20.4 |
| ||||||||||
Realized Gains (losses) | 3.4 | % |
| 1.7 |
| -3.8 | % |
| (2.1 | ) | -15.6 | % |
| (32.1 | ) | -2.4 | % |
| (5.4 | ) | 9.2 | % |
| 26.7 |
| ||||||||||
Total | 8.1 | % | $ | 4.0 |
| -14.1 | % | $ | (8.0 | ) | -8.2 | % | $ | (16.8 | ) | 0.5 | % | $ | 0.9 |
| 16.2 | % | $ | 47.1 |
| ||||||||||
Ending Assets | $ | 180.2 |
| $ | 230.8 |
| $ | 180.2 |
| $ | 230.8 |
| $ | 212.0 |
| ||||||||||||||||||||
POLICY LOANS | |||||||||||||||||||||||||||||||||||
Investment Income | 7.0 | % | $ | 21.2 |
| 6.9 | % | $ | 21.5 |
| 6.9 | % | $ | 84.8 |
| 6.9 | % | $ | 86.5 |
| 6.8 | % | $ | 86.6 |
| ||||||||||
Realized Gains (losses) | 0.0 | % |
| — |
| 0.0 | % |
| — |
| 0.0 | % |
| — |
| 0.0 | % |
| — |
| 0.0 | % |
| — |
| ||||||||||
Total | 7.0 | % | $ | 21.2 |
| 6.9 | % | $ | 21.5 |
| 6.9 | % | $ | 84.8 |
| 6.9 | % | $ | 86.5 |
| 6.8 | % | $ | 86.6 |
| ||||||||||
Ending Assets | $ | 1,212.5 |
| $ | 1,229.0 |
| $ | 1,212.5 |
| $ | 1,229.0 |
| $ | 1,264.6 |
| ||||||||||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||||||||||||||||||||
Investment Income | 1.6 | % | $ | 1.7 |
| 2.2 | % | $ | 3.0 |
| 2.1 | % | $ | 9.3 |
| 4.4 | % | $ | 29.3 |
| 6.6 | % | $ | 28.2 |
| ||||||||||
Realized Gains (losses) | -1.0 | % |
| (1.1 | ) | -0.6 | % |
| (0.8 | ) | -0.2 | % |
| (1.1 | ) | -0.1 | % |
| (0.8 | ) | 0.0 | % |
| (0.0 | ) | ||||||||||
Total | 0.6 | % | $ | 0.6 |
| 1.6 | % | $ | 2.2 |
| 1.9 | % | $ | 8.2 |
| 4.3 | % | $ | 28.5 |
| 6.6 | % | $ | 28.2 |
| ||||||||||
Ending Assets | $ | 390.0 |
| $ | 441.0 |
| $ | 390.0 |
| $ | 441.0 |
| $ | 869.6 |
| ||||||||||||||||||||
OTHER INVESTED ASSETS | |||||||||||||||||||||||||||||||||||
Investment Income | 19.8 | % | $ | 6.2 |
| 20.9 | % | $ | 6.8 |
| 16.1 | % | $ | 18.3 |
| 11.3 | % | $ | 12.2 |
| 5.9 | % | $ | 4.1 |
| ||||||||||
Realized Gains (losses) | -6.7 | % |
| (2.2 | ) | -13.1 | % |
| (4.2 | ) | 0.1 | % |
| 0.1 |
| -4.7 | % |
| (5.0 | ) | -0.7 | % |
| (0.5 | ) | ||||||||||
Total | 13.1 | % | $ | 4.0 |
| 7.8 | % | $ | 2.6 |
| 16.2 | % | $ | 18.4 |
| 6.6 | % | $ | 7.2 |
| 5.2 | % | $ | 3.6 |
| ||||||||||
Ending Assets | $ | 110.8 |
| $ | 116.7 |
| $ | 110.8 |
| $ | 116.7 |
| $ | 100.0 |
| ||||||||||||||||||||
TOTAL BEFORE INVESTMENT EXPENSES | |||||||||||||||||||||||||||||||||||
Investment Income | 7.1 | % | $ | 202.3 |
| 5.8 | % | $ | 159.3 |
| 6.9 | % | $ | 765.6 |
| 6.6 | % | $ | 732.8 |
| 9.2 | % | $ | 1,018.4 |
| ||||||||||
Realized Gains (losses) | -2.9 | % |
| (83.9 | ) | -0.7 | % |
| (18.2 | ) | -1.4 | % |
| (153.0 | ) | -0.1 | % |
| (12.3 | ) | 0.3 | % |
| 37.5 |
| ||||||||||
Total | 4.2 | % | $ | 118.4 |
| 5.1 | % | $ | 141.1 |
| 5.5 | % | $ | 612.6 |
| 6.5 | % | $ | 720.5 |
| 9.5 | % | $ | 1,055.9 |
| ||||||||||
Ending Assets | $ | 11,473.3 |
| $ | 10,959.4 |
| $ | 11,473.3 |
| $ | 10,959.4 |
| $ | 11,232.3 |
| ||||||||||||||||||||
Other Fee Income | -0.2 | % | $ | (5.1 | ) | 0.1 | % | $ | 1.7 |
| 0.0 | % | $ | 1.3 |
| 0.0 | % | $ | 5.3 |
| 0.0 | % | $ | 4.0 |
| ||||||||||
Investment expense | -0.1 | % | $ | (1.5 | ) | -0.5 | % | $ | (15.0 | ) | -0.3 | % | $ | (29.6 | ) | -0.4 | % | $ | (46.1 | ) | -0.4 | % | $ | (44.3 | ) | ||||||||||
TOTAL AFTER INVESTMENT EXPENSES | |||||||||||||||||||||||||||||||||||
Investment Income | 6.8 | % | $ | 194.9 |
| 5.3 | % | $ | 145.9 |
| 6.6 | % | $ | 737.3 |
| 6.2 | % | $ | 692.1 |
| 8.8 | % | $ | 978.1 |
| ||||||||||
Realized Gains (losses) | -2.9 | % |
| (83.9 | ) | -0.7 | % |
| (18.2 | ) | -1.4 | % |
| (153.0 | ) | -0.1 | % |
| (12.3 | ) | 0.3 | % |
| 37.5 |
| ||||||||||
Total | 3.9 | % | $ | 111.0 |
| 4.7 | % | $ | 127.7 |
| 5.2 | % | $ | 584.3 |
| 6.1 | % | $ | 679.8 |
| 9.1 | % | $ | 1,015.6 |
| ||||||||||
Ending Assets |
| 11,473.3 |
|
| 10,959.4 |
|
| 11,473.3 |
|
| 10,959.4 |
|
| 11,232.3 |
| ||||||||||||||||||||
Net unrealized gains (losses) on fixed maturities |
| 517.8 |
|
| 143.1 |
|
| 517.8 |
|
| 146.9 |
|
| (9.8 | ) | ||||||||||||||||||||
Total invested assets | $ | 11,991.1 |
| $ | 11,102.5 |
| $ | 11,991.1 |
| $ | 11,102.5 |
| $ | 11,222.5 |
| ||||||||||||||||||||
(1) | Yields are based on annual average asset carrying values, excluding unrealized gains (losses) in the fixed maturity asset category. |
(2) | Yields are based on quarterly average asset carrying values, excluding unrealized gains (losses) in the fixed maturity asset category. |
(3) | Equity real estate income is shown net of operating expenses, depreciation and minority interest . |
(4) | Trading portfolio balances of $726.6 million and results are excluded from the yield calculation. |
The Exhibit above includes invested assets in the Closed Block and excludes Trading Securities in Advest.
25
Exhibit 18A
(Unaudited)
FIXED MATURITIES BY CREDIT QUALITY
PUBLIC FIXED MATURITIES BY CREDIT QUALITY
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||||||||||||||||
NAIC Rating | Rating Agency Equivalent Designation | Amortized Cost | % of Total | Estimated Fair Value | Amortized Cost | % of Total | Estimated Fair Value | |||||||||||||
($ millions) | ||||||||||||||||||||
1 | Aaa/Aa/A | $ | 3,297.1 | 74.1 | % | $ | 3,552.7 | $ | 2,730.4 | 73.8 | % | $ | 2,806.4 | |||||||
2 | Baa |
| 906.5 | 20.0 | % |
| 961.6 |
| 769.5 | 20.6 | % |
| 784.9 | |||||||
3 | Ba |
| 207.1 | 4.4 | % |
| 210.4 |
| 161.9 | 4.1 | % |
| 155.3 | |||||||
4 | B |
| 64.0 | 1.3 | % |
| 63.8 |
| 37.9 | 1.1 | % |
| 40.8 | |||||||
5 | Caa and lower |
| 1.1 | 0.0 | % |
| 1.3 |
| 15.5 | 0.4 | % |
| 15.0 | |||||||
6 | In or near default |
| 7.3 | 0.2 | % |
| 7.3 |
| 1.8 | 0.0 | % |
| 1.9 | |||||||
Subtotal |
| 4,483.1 | 100.0 | % |
| 4,797.1 |
| 3,717.0 | 100.0 | % |
| 3,804.3 | ||||||||
Redeemable preferred stock |
| 1.0 | 0.0 | % |
| 1.0 |
| 1.0 | 0.0 | % |
| 0.9 | ||||||||
Total Public Fixed | ||||||||||||||||||||
Maturities | $ | 4,484.1 | 100.0 | % | $ | 4,798.1 | $ | 3,718.0 | 100.0 | % | $ | 3,805.2 | ||||||||
PRIVATE FIXED MATURITIES BY CREDIT QUALITY
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||||||||||||||||
NAIC Rating | Rating Agency Equivalent Designation | Amortized Cost | % of Total | Estimated Fair Value | Amortized Cost | % of Total | Estimated Fair Value | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||||||
1 | Aaa/Aa/A | $ | 914.2 | 31.4 | % | $ | 997.1 | $ | 1,077.5 | 35.1 | % | $ | 1,113.7 | |||||||
2 | Baa |
| 1,436.3 | 48.9 | % |
| 1,551.4 |
| 1,620.7 | 51.9 | % |
| 1,645.8 | |||||||
3 | Ba |
| 417.4 | 13.4 | % |
| 426.2 |
| 270.6 | 8.5 | % |
| 269.3 | |||||||
4 | B |
| 86.1 | 2.6 | % |
| 80.8 |
| 63.2 | 1.9 | % |
| 62.0 | |||||||
5 | Caa and lower |
| 20.6 | 0.6 | % |
| 19.0 |
| 20.2 | 0.6 | % |
| 18.6 | |||||||
6 | In or near default |
| 48.6 | 1.5 | % |
| 49.1 |
| 4.5 | 0.2 | % |
| 5.7 | |||||||
Subtotal |
| 2,923.2 | 98.4 | % |
| 3,123.6 |
| 3,056.7 | 98.2 | % |
| 3,115.1 | ||||||||
Redeemable preferred stock |
| 46.0 | 1.6 | % |
| 49.5 |
| 54.6 | 1.8 | % |
| 55.8 | ||||||||
Total Private Fixed | ||||||||||||||||||||
Maturities | $ | 2,969.2 | 100.0 | % | $ | 3,173.1 | $ | 3,111.3 | 100.0 | % | $ | 3,170.9 | ||||||||
TOTAL FIXED MATURITIES BY CREDIT QUALITY
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||||||||||||||||
NAIC Rating | Rating Agency Equivalent Designation | Amortized Cost | % of Total | Estimated Fair Value | Amortized Cost | % of Total | Estimated Fair Value | |||||||||||||
($ millions) | ($ millions) | |||||||||||||||||||
1 | Aaa/Aa/A | $ | 4,211.3 | 57.1 | % | $ | 4,549.8 | $ | 3,807.9 | 56.2 | % | $ | 3,920.1 | |||||||
2 | Baa |
| 2,342.8 | 31.5 | % |
| 2,513.0 |
| 2,390.2 | 34.8 | % |
| 2,430.7 | |||||||
3 | Ba |
| 624.5 | 8.0 | % |
| 636.6 |
| 432.5 | 6.1 | % |
| 424.6 | |||||||
4 | B |
| 150.1 | 1.8 | % |
| 144.6 |
| 101.1 | 1.5 | % |
| 102.8 | |||||||
5 | Caa and lower |
| 21.7 | 0.3 | % |
| 20.3 |
| 35.7 | 0.5 | % |
| 33.6 | |||||||
6 | In or near default |
| 55.9 | 0.7 | % |
| 56.4 |
| 6.3 | 0.1 | % |
| 7.6 | |||||||
Subtotal |
| 7,406.3 | 99.4 | % |
| 7,920.7 |
| 6,773.7 | 99.2 | % |
| 6,919.4 | ||||||||
Redeemable preferred stock |
| 47.0 | 0.6 | % |
| 50.5 |
| 55.6 | 0.8 | % |
| 56.7 | ||||||||
Total Fixed | ||||||||||||||||||||
Maturities | $ | 7,453.3 | 100.0 | % | $ | 7,971.2 | $ | 6,829.3 | 100.0 | % | $ | 6,976.1 | ||||||||
The Exhibit above includes invested assets in the Closed Block and excludes Trading Securities in Advest.
26
Exhibit 18B
(Unaudited)
FIXED MATURITIES BY INDUSTRY
As of December 31, 2002 | ||||||||||||||||||
($ millions) | ||||||||||||||||||
Industry | Public | % | Private | % | Total | % | ||||||||||||
Consumer Goods & Services | $ | 592.5 | 12.3 | % | $ | 865.1 | 27.3 | % | $ | 1,457.6 | 18.3 | % | ||||||
Government & Agency |
| 1,025.0 | 21.4 | % |
| 0.0 | 0.0 | % |
| 1,025.0 | 12.9 | % | ||||||
Other Manufacturing |
| 185.4 | 3.9 | % |
| 662.6 | 20.9 | % |
| 848.0 | 10.6 | % | ||||||
Public Utilities |
| 470.2 | 9.8 | % |
| 292.3 | 9.2 | % |
| 762.5 | 9.6 | % | ||||||
Non-Government—Asset/Mortgage Backed |
| 493.4 | 10.3 | % |
| 215.0 | 6.8 | % |
| 708.4 | 8.9 | % | ||||||
Financial Services |
| 252.7 | 5.3 | % |
| 299.0 | 9.5 | % |
| 551.7 | 6.9 | % | ||||||
Banks |
| 491.0 | 10.2 | % |
| 45.3 | 1.4 | % |
| 536.3 | 6.7 | % | ||||||
Transportation/Aerospace |
| 332.2 | 6.9 | % |
| 186.5 | 5.9 | % |
| 518.7 | 6.5 | % | ||||||
Energy |
| 243.1 | 5.1 | % |
| 196.5 | 6.2 | % |
| 439.6 | 5.5 | % | ||||||
Nat/Res/Manuf(non-energy) |
| 106.6 | 2.2 | % |
| 212.8 | 6.7 | % |
| 319.4 | 4.0 | % | ||||||
Mortgage Backed-Government & Agency |
| 306.9 | 6.4 | % |
| 1.0 | 0.0 | % |
| 307.9 | 3.9 | % | ||||||
Media/Adver/Printing |
| 50.4 | 1.1 | % |
| 112.6 | 3.5 | % |
| 163.0 | 2.0 | % | ||||||
Other |
| 144.5 | 3.0 | % |
| 16.7 | 0.5 | % |
| 161.2 | 2.0 | % | ||||||
Telecommunications |
| 86.8 | 1.8 | % |
| 13.7 | 0.4 | % |
| 100.5 | 1.3 | % | ||||||
Cable Television |
| 17.4 | 0.3 | % |
| 31.9 | 1.0 | % |
| 49.3 | 0.6 | % | ||||||
Bank Holding Companies |
| 0.0 | 0.0 | % |
| 22.1 | 0.7 | % |
| 22.1 | 0.3 | % | ||||||
Total | $ | 4,798.1 | 100.0 | % | $ | 3,173.1 | 100.0 | % | $ | 7,971.2 | 100.0 | % | ||||||
As of December 31, 2001 | ||||||||||||||||||
($ millions) | ||||||||||||||||||
Industry | Public | % | Private | % | Total | % | ||||||||||||
Consumer Goods & Services | $ | 463.6 | 12.2 | % | $ | 761.5 | 24.0 | % | $ | 1,225.1 | 17.7 | % | ||||||
Government & Agency |
| 523.4 | 13.8 | % |
| 269.7 | 8.5 | % |
| 793.1 | 11.4 | % | ||||||
Other Manufacturing |
| 436.4 | 11.4 | % |
| 303.4 | 9.6 | % |
| 739.8 | 10.6 | % | ||||||
Public Utilities |
| 168.0 | 4.4 | % |
| 504.8 | 15.9 | % |
| 672.8 | 9.6 | % | ||||||
Non-Government—Asset/Mortgage Backed |
| 222.5 | 5.8 | % |
| 372.0 | 11.7 | % |
| 594.5 | 8.5 | % | ||||||
Financial Services |
| 467.8 | 12.3 | % |
| 42.4 | 1.3 | % |
| 510.2 | 7.3 | % | ||||||
Banks |
| 303.4 | 8.0 | % |
| 198.5 | 6.3 | % |
| 501.9 | 7.2 | % | ||||||
Transportation/Aerospace |
| 199.9 | 5.3 | % |
| 229.0 | 7.2 | % |
| 428.9 | 6.1 | % | ||||||
Energy |
| 406.5 | 10.7 | % |
| 0.1 | 0.0 | % |
| 406.6 | 5.8 | % | ||||||
Nat/Res/Manuf(non-energy) |
| 95.1 | 2.5 | % |
| 282.7 | 8.9 | % |
| 377.8 | 5.4 | % | ||||||
Mortgage Backed-Government & Agency |
| 293.9 | 7.7 | % |
| 1.0 | 0.0 | % |
| 294.9 | 4.2 | % | ||||||
Media/Adver/Printing |
| 26.7 | 0.7 | % |
| 106.2 | 3.3 | % |
| 132.9 | 1.9 | % | ||||||
Other |
| 100.4 | 2.6 | % |
| 20.3 | 0.7 | % |
| 120.7 | 1.7 | % | ||||||
Telecommunications |
| 94.3 | 2.5 | % |
| 16.6 | 0.6 | % |
| 110.9 | 1.6 | % | ||||||
Cable Television |
| 1.1 | 0.0 | % |
| 33.3 | 1.1 | % |
| 34.4 | 0.5 | % | ||||||
Bank Holding Companies |
| 2.2 | 0.1 | % |
| 29.4 | 0.9 | % |
| 31.6 | 0.5 | % | ||||||
Total | $ | 3,805.2 | 100.0 | % | $ | 3,170.9 | 100.0 | % | $ | 6,976.1 | 100.0 | % | ||||||
The Exhibit above includes invested assets in the Closed Block and excludes Trading Securities in Advest..
27
Exhibit 18C
(Unaudited)
VENTURE CAPITAL PARTNERSHIP INVESTMENTS
VENTURE CAPITAL PARTNERSHIP INVESTMENTS (1):
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||
($ in millions) | ($ in millions) | |||||
Equity Method | ||||||
Public common stock | $ | 27.7 | $ | 9.0 | ||
Private common stock |
| 64.3 |
| 83.6 | ||
Sub-total |
| 92.0 |
| 92.6 | ||
Cost Method | ||||||
Public common stock |
| 15.2 |
| 22.0 | ||
Private common stock |
| 79.0 |
| 115.1 | ||
Sub-total |
| 94.2 |
| 137.1 | ||
Total Venture Capital Partnership Investments | $ | 186.2 | $ | 229.7 | ||
(1) Includes other net assets included on partnerships’ financial statements (e.g. cash, receivables, misc. payables, etc.)
VENTURE CAPITAL PARTNERSHIP INVESTMENTS BY SECTOR:
Year Ended December 31, 2002 | Year Ended December 31, 2001 | |||||||||||
($ Millions) | % | ($ Millions) | % | |||||||||
Information Technology | $ | 97.8 | 52.5 | % | $ | 107.5 | 46.8 | % | ||||
Domestic LBO |
| 36.8 | 19.8 | % |
| 50.4 | 22.0 | % | ||||
Life Sciences |
| 4.5 | 2.4 | % |
| 20.0 | 8.7 | % | ||||
Telecommunications |
| 13.3 | 7.1 | % |
| 8.6 | 3.7 | % | ||||
International LBO |
| 5.8 | 3.1 | % |
| 14.0 | 6.1 | % | ||||
Merchant Banking |
| 10.7 | 5.8 | % |
| 11.9 | 5.2 | % | ||||
Other |
| 17.3 | 9.3 | % |
| 17.3 | 7.5 | % | ||||
Total Venture Capital Partnership Investments by Sector | $ | 186.2 | 100.0 | % | $ | 229.7 | 100.0 | % | ||||
28
Exhibit 19
(Unaudited)
PROBLEM, POTENTIAL PROBLEM AND RESTRUCTURED COMMERCIAL
MORTGAGES AT CARRYING VALUE
December 31, 2002 | December 31, 2001 | |||||||
($ millions) | ||||||||
Total Commercial Mortgages | $ | 1,570.5 |
| $ | 1,507.7 |
| ||
Problem commercial mortgages (1) |
| — |
|
| 16.3 |
| ||
Potential problem commercial mortgages |
| 102.2 |
|
| 64.5 |
| ||
Restructured commercial mortgages |
| 22.9 |
|
| 57.9 |
| ||
Total problem, potential problem and restructured commercial mortgages | $ | 125.1 |
| $ | 138.7 |
| ||
Total problem, potential problem and restructured commercial mortgages as % of total commercial mortgages |
| 8.0 | % |
| 9.2 | % | ||
Valuation allowances/writedowns (2) | ||||||||
Problem loans | $ | 0.0 |
| $ | 4.6 |
| ||
Potential problem loans |
| 9.1 |
|
| 8.4 |
| ||
Restructured loans |
| 5.5 |
|
| 4.7 |
| ||
Total valuation allowances/writedowns | $ | 14.6 |
| $ | 17.7 |
| ||
Total valuation allowances as a percent of problem, potential problem and restructured commercial mortgages at carrying value before valuation allowances and writedowns |
| 10.5 | % |
| 11.3 | % | ||
(1) Problem commercial mortgages include delinquent loans and mortgage loans in foreclosure.
(2) Includes impairment writedowns recorded prior to adoption of SFAS No. 114, Accounting by Creditors for Impairment of a Loan.
The Exhibit above includes invested assets in the Closed Block.
29
Exhibit 20A
(Unaudited)
EQUITY REAL ESTATE
December 31, 2002 | December 31, 2001 | |||||
($ millions) | ||||||
TYPE | ||||||
Real estate | $ | 156.1 | $ | 186.5 | ||
Subtotal |
| 156.1 |
| 186.5 | ||
Foreclosed |
| 24.1 |
| 44.3 | ||
Total | $ | 180.2 | $ | 230.8 | ||
30
Exhibit 20B
(Unaudited)
MORTGAGES AND REAL ESTATE
December 31, 2002 | December 31, 2001 | |||||||||||
($ millions) | ($ millions) | |||||||||||
Geographic Region | ||||||||||||
Southeast | $ | 456.8 | 22.2 | % | $ | 449.1 | 22.0 | % | ||||
West |
| 366.1 | 17.8 | % |
| 361.6 | 17.7 | % | ||||
Northeast |
| 261.9 | 12.7 | % |
| 274.1 | 13.4 | % | ||||
Mountain |
| 384.7 | 18.7 | % |
| 414.2 | 20.3 | % | ||||
Midwest |
| 350.1 | 17.0 | % |
| 336.2 | 16.5 | % | ||||
Southwest |
| 238.0 | 11.6 | % |
| 205.3 | 10.1 | % | ||||
$ | 2,057.6 | 100 | % | $ | 2,040.5 | 100 | % | |||||
December 31, 2002 | December 31, 2001 | |||||||||||
($ millions) | ($ millions) | |||||||||||
Property Type: | ||||||||||||
Office Buildings | $ | 906.5 | 44.1 | % | $ | 873.3 | 42.8 | % | ||||
Agricultural |
| 306.9 | 14.9 | % |
| 304.9 | 14.9 | % | ||||
Hotel |
| 274.2 | 13.3 | % |
| 297.8 | 14.6 | % | ||||
Retail |
| 135.3 | 6.6 | % |
| 138.8 | 6.8 | % | ||||
Industrial |
| 188.2 | 9.1 | % |
| 156.6 | 7.7 | % | ||||
Other |
| 123.2 | 6.0 | % |
| 135.1 | 6.6 | % | ||||
Apartment Buildings |
| 123.3 | 6.0 | % |
| 134.0 | 6.6 | % | ||||
$ | 2,057.6 | 100 | % | $ | 2,040.5 | 100 | % | |||||
The Exhibit above includes invested assets in the Closed Block.
31
Exhibit 21
(Unaudited)
HISTORICAL QUARTERLY DATA
2002 | Q4'02 | Q3'02 | Q2'02 | Q1'02 | 2001 | Q4'01 | Q3'01 | Q2'01 | Q1'01 | |||||||||||||||||||||||||||||||
($ millions, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||||||||||||||
Premiums |
| 690.4 |
|
| 195.7 |
|
| 160.5 |
| $ | 169.9 |
| $ | 164.3 |
| $ | 695.3 |
| $ | 194.8 |
| $ | 162.0 |
| $ | 173.4 |
| $ | 165.1 |
| ||||||||||
Universal life and investment-type product policy fees |
| 200.5 |
|
| 44.3 |
|
| 54.6 |
|
| 52.5 |
|
| 49.1 |
|
| 207.2 |
|
| 55.1 |
|
| 50.1 |
|
| 52.3 |
|
| 49.7 |
| ||||||||||
Net investment income |
| 737.3 |
|
| 194.9 |
|
| 170.1 |
|
| 181.9 |
|
| 194.7 |
|
| 692.1 |
|
| 146.0 |
|
| 172.9 |
|
| 189.5 |
|
| 183.7 |
| ||||||||||
Net realized (losses)/gains on investments |
| (153.0 | ) |
| (83.9 | ) |
| (41.2 | ) |
| (25.5 | ) |
| (2.4 | ) |
| (12.3 | ) |
| (18.3 | ) |
| 0.5 |
|
| 3.0 |
|
| 2.5 |
| ||||||||||
Group pension profits |
| 82.3 |
|
| 60.3 |
|
| 6.8 |
|
| 7.5 |
|
| 7.7 |
|
| 30.7 |
|
| 3.5 |
|
| 8.0 |
|
| 9.3 |
|
| 9.9 |
| ||||||||||
Retail brokerage and investment banking |
| 397.1 |
|
| 99.6 |
|
| 109.1 |
|
| 97.6 |
|
| 90.8 |
|
| 343.5 |
|
| 90.5 |
|
| 82.1 |
|
| 99.8 |
|
| 71.1 |
| ||||||||||
Other income |
| 139.9 |
|
| 43.3 |
|
| 24.9 |
|
| 29.3 |
|
| 38.1 |
|
| 147.1 |
|
| 53.3 |
|
| 21.8 |
|
| 41.7 |
|
| 30.3 |
| ||||||||||
Total revenues |
| 2,094.5 |
|
| 554.2 |
|
| 484.8 |
|
| 513.2 |
|
| 542.3 |
|
| 2,103.6 |
|
| 524.9 |
|
| 497.4 |
|
| 569.0 |
|
| 512.3 |
| ||||||||||
BENEFITS AND EXPENSES: | ||||||||||||||||||||||||||||||||||||||||
Benefits to policyholders |
| 803.1 |
|
| 217.7 |
|
| 195.3 |
|
| 199.5 |
|
| 190.6 |
|
| 814.7 |
|
| 218.6 |
|
| 203.9 |
|
| 194.5 |
|
| 197.7 |
| ||||||||||
Interest credited to policyholder account balances |
| 119.3 |
|
| 33.5 |
|
| 30.0 |
|
| 27.9 |
|
| 27.9 |
|
| 110.5 |
|
| 27.3 |
|
| 27.9 |
|
| 27.0 |
|
| 28.3 |
| ||||||||||
Amortization of deferred policy acquisition costs |
| 156.1 |
|
| 35.7 |
|
| 49.7 |
|
| 38.0 |
|
| 32.9 |
|
| 158.8 |
|
| 60.4 |
|
| 32.9 |
|
| 28.3 |
|
| 37.2 |
| ||||||||||
Dividends to policyholders |
| 188.0 |
|
| 16.2 |
|
| 53.5 |
|
| 56.8 |
|
| 61.5 |
|
| 236.6 |
|
| 66.9 |
|
| 54.5 |
|
| 60.6 |
|
| 54.6 |
| ||||||||||
Other operating costs and expenses |
| 860.0 |
|
| 241.7 |
|
| 202.7 |
|
| 207.1 |
|
| 208.3 |
|
| 876.4 |
|
| 285.4 |
|
| 190.0 |
|
| 226.8 |
|
| 174.2 |
| ||||||||||
Total benefits and expenses |
| 2,126.5 |
|
| 544.8 |
|
| 531.2 |
|
| 529.3 |
|
| 521.2 |
|
| 2,197.0 |
|
| 658.6 |
|
| 509.2 |
|
| 537.2 |
|
| 492.0 |
| ||||||||||
(Loss)/Income before income taxes and extraordinary item |
| (32.0 | ) |
| 9.4 |
|
| (46.4 | ) |
| (16.1 | ) |
| 21.1 |
|
| (93.4 | ) |
| (133.7 | ) |
| (11.8 | ) |
| 31.8 |
|
| 20.3 |
| ||||||||||
Income tax expense/(benefit) |
| (11.2 | ) |
| 3.3 |
|
| (16.2 | ) |
| (5.1 | ) |
| 6.8 |
|
| (32.6 | ) |
| (46.0 | ) |
| (3.1 | ) |
| 9.5 |
|
| 7.0 |
| ||||||||||
Net Income/(Loss) before extraordinary item |
| (20.8 | ) |
| 6.1 |
|
| (30.2 | ) |
| (11.0 | ) |
| 14.3 |
|
| (60.8 | ) |
| (87.7 | ) |
| (8.7 | ) |
| 22.3 |
|
| 13.3 |
| ||||||||||
Discontinued Operations: Loss from real estate operations held for sale, net |
| (2.5 | ) |
| (2.5 | ) |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| — |
| ||||||||||
Net (loss)/income | $ | (23.3 | ) | $ | 3.6 |
| $ | (30.2 | ) | $ | (11.0 | ) | $ | 14.3 |
| $ | (60.8 | ) | $ | (87.7 | ) | $ | (8.7 | ) | $ | 22.3 |
| $ | 13.3 |
| ||||||||||
Net (loss)/income | $ | (23.3 | ) | $ | 3.6 |
| $ | (30.2 | ) | $ | (11.0 | ) | $ | 14.3 |
| $ | (60.8 | ) | $ | (87.7 | ) | $ | (8.7 | ) | $ | 22.3 |
| $ | 13.3 |
| ||||||||||
Realized losses included in the 4th quarter charge |
| — |
|
| — |
|
| — |
|
| — |
|
| — |
|
| 13.1 |
|
| 13.1 |
|
| — |
|
| — |
|
| — |
| ||||||||||
Net realized losses/(gains) on investments (after-tax) |
| 69.2 |
|
| 29.5 |
|
| 23.4 |
|
| 15.5 |
|
| 0.9 |
|
| (1.2 | ) |
| (0.4 | ) |
| 1.4 |
|
| (0.6 | ) |
| (1.6 | ) | ||||||||||
Operating (loss)/income |
| 45.9 |
|
| 33.1 |
|
| (6.8 | ) |
| 4.5 |
|
| 15.2 |
|
| (48.9 | ) |
| (75.0 | ) |
| (7.3 | ) |
| 21.7 |
|
| 11.7 |
| ||||||||||
Other Charges |
| (21.8 | ) |
| (26.3 | ) |
| — |
|
| 4.5 |
|
| — |
|
| 81.9 |
|
| 81.9 |
|
| — |
|
| — |
|
| — |
| ||||||||||
Venture capital (income)/loss—(after-tax) |
| (3.6 | ) |
| (8.5 | ) |
| 5.1 |
|
| 3.0 |
|
| (3.3 | ) |
| 9.1 |
|
| — |
|
| 10.1 |
|
| (4.1 | ) |
| 3.1 |
| ||||||||||
Operating (loss)/income as adjusted: | $ | 20.5 |
| $ | (1.7 | ) | $ | (1.7 | ) | $ | 12.0 |
| $ | 11.9 |
| $ | 42.1 |
| $ | 6.9 |
| $ | 2.8 |
| $ | 17.6 |
| $ | 14.8 |
| ||||||||||
Number of Shares Used in Per Share Calculations: | ||||||||||||||||||||||||||||||||||||||||
BASIC |
| 47,582,799 |
|
| 46,923,822 |
|
| 47,414,250 |
|
| 47,994,628 |
|
| 48,012,310 |
|
| 48,608,378 |
|
| 47,786,913 |
|
| 48,642,274 |
|
| 49,363,512 |
|
| 48,720,335 |
| ||||||||||
DILUTED |
| 47,582,799 |
|
| 47,104,088 |
|
| 47,414,250 |
|
| 47,994,628 |
|
| 49,737,205 |
|
| 48,608,378 |
|
| 47,786,913 |
|
| 48,642,274 |
|
| 50,913,099 |
|
| 50,314,782 |
| ||||||||||
Net (Loss)/Income Per Share: | ||||||||||||||||||||||||||||||||||||||||
BASIC | $ | (0.49 | ) | $ | 0.08 |
| $ | (0.64 | ) | $ | (0.23 | ) | $ | 0.30 |
| $ | (1.25 | ) | $ | (1.84 | ) | $ | (0.18 | ) | $ | 0.45 |
| $ | 0.27 |
| ||||||||||
DILUTED | $ | (0.49 | ) | $ | 0.08 |
| $ | (0.64 | ) | $ | (0.23 | ) | $ | 0.29 |
| $ | (1.25 | ) | $ | (1.84 | ) | $ | (0.18 | ) | $ | 0.44 |
| $ | 0.26 |
| ||||||||||
Operating (loss)/income | ||||||||||||||||||||||||||||||||||||||||
BASIC | $ | 0.97 |
| $ | 0.70 |
| $ | (0.14 | ) | $ | 0.09 |
| $ | 0.32 |
| $ | (1.01 | ) | $ | (1.57 | ) | $ | (0.15 | ) | $ | 0.44 |
| $ | 0.24 |
| ||||||||||
DILUTED | $ | 0.97 |
| $ | 0.70 |
| $ | (0.14 | ) | $ | 0.09 |
| $ | 0.31 |
| $ | (1.01 | ) | $ | (1.57 | ) | $ | (0.15 | ) | $ | 0.43 |
| $ | 0.23 |
| ||||||||||
Operating (loss)/income as adjusted: | ||||||||||||||||||||||||||||||||||||||||
BASIC | $ | 0.43 |
| $ | (0.04 | ) | $ | (0.04 | ) | $ | 0.25 |
| $ | 0.25 |
| $ | 0.87 |
| $ | 0.14 |
| $ | 0.06 |
| $ | 0.36 |
| $ | 0.30 |
| ||||||||||
DILUTED | $ | 0.43 |
| $ | (0.04 | ) | $ | (0.04 | ) | $ | 0.25 |
| $ | 0.24 |
| $ | 0.87 |
| $ | 0.14 |
| $ | 0.06 |
| $ | 0.35 |
| $ | 0.29 |
|
32
Exhibit 22
STATUTORY EXPENSE RATIOS
Three Months Ending December 31, | As of December 31, | |||||||||||||||||||||||||||
2002 | 2001 | 2002 | 2001 | 2000 | 1999 | 1998 | ||||||||||||||||||||||
PREMIUMS AND DEPOSITS (1) (6) (8): | ||||||||||||||||||||||||||||
MONY Life Insurance Company | $ | 261.8 |
| $ | 192.2 |
| $ | 811.3 |
| $ | 860.2 |
| $ | 1,126.8 |
| $ | 900.0 |
| $ | 919.8 |
| |||||||
MONY Life Insurance Company of America |
| 280.2 |
|
| 232.3 |
|
| 995.1 |
|
| 910.5 |
|
| 1,549.7 |
|
| 1,361.0 |
|
| 774.3 |
| |||||||
Total | $ | 542.0 |
| $ | 424.5 |
| $ | 1,806.4 |
| $ | 1,770.7 |
| $ | 2,676.5 |
| $ | 2,261.0 |
| $ | 1,694.1 |
| |||||||
GENERAL EXPENSES (2) (4) (5) (7): | ||||||||||||||||||||||||||||
MONY Life Insurance Company | $ | 61.1 |
| $ | 65.7 |
| $ | 222.6 |
| $ | 240.4 |
| $ | 261.1 |
| $ | 247.8 |
| $ | 308.2 |
| |||||||
MONY Life Insurance Company of America |
| 40.9 |
|
| 38.8 |
|
| 143.3 |
|
| 129.7 |
|
| 117.9 |
|
| 106.7 |
|
| 86.7 |
| |||||||
Total | $ | 102.0 |
| $ | 104.5 |
| $ | 365.9 |
| $ | 370.1 |
| $ | 379.0 |
| $ | 354.5 |
| $ | 394.9 |
| |||||||
LESS REAL ESTATE EXPENSES (3): | ||||||||||||||||||||||||||||
MONY Life Insurance Company | $ | 4.8 |
| $ | 2.6 |
| $ | 18.1 |
| $ | 9.9 |
| $ | 22.5 |
| $ | 34.9 |
| $ | 56.3 |
| |||||||
MONY Life Insurance Company of America |
| 0.7 |
|
| 0.6 |
|
| 2.8 |
|
| 2.6 |
|
| 2.7 |
|
| 2.8 |
|
| 3.2 |
| |||||||
Total | $ | 5.5 |
| $ | 3.2 |
| $ | 20.9 |
| $ | 12.5 |
| $ | 25.2 |
| $ | 37.7 |
| $ | 59.5 |
| |||||||
Expenses (excluding real estate expenses) | $ | 96.5 |
| $ | 101.3 |
| $ | 345.0 |
| $ | 357.6 |
| $ | 353.8 |
| $ | 316.8 |
| $ | 335.4 |
| |||||||
Expenses (excluding real estate expenses) to Net Premiums and Deposits |
| 17.8 | % |
| 23.9 | % |
| 19.1 | % |
| 20.2 | % |
| 13.2 | % |
| 14.0 | % |
| 19.8 | % |
(1) | Full year results from Annual statement Page 4, Line 1 for 2002 and 2001. Includes Lines 1 and 1A for years prior to 2001. |
(2) | Full year results from Annual Statement Exhibit 2, Line 10 for 2002 and Exhibit 5 Line 10 for years prior to 2002. |
(3) | Full year results from Annual Statement Exhibit 2, Line 9.1 for 2002 and Exhibit 5 Line 9.1 for years prior to 2002. |
(4) | 1998 General Expenses Exclude Year to date Disbursements of $20 million for Y2K and other strategic items. |
(5) | 1999 General Expenses excludes $59.7 million of early retirement and realignment charge. |
(6) | Includes transfers to new product series of $18.7 million and $28.4 million for the three months ended December 31, 2002 and 2001, respectively, $70.7 million, $208.5 million, $1,005.1 million, and $742.0 million for the years ended December 31, 2002, 2001, 2000, and 1999, respectively |
(7) | Adjusted to exclude reorganization and other charges of $7.2 million and $24.3 million for the three months and the years ended December 31, 2002 and 2001, respectively. |
(8) | Beginning in 2001, contributions relating to contracts issued by an insurer that do not incorporate mortality of morbidity risk (deposit-type contracts) are not reported as premium and deposits, but are accounted for as deposit liabilities. In prior years these amounts were reported as premium and deposits. Contributions for deposit-type contracts of $ 78.0 and $73.9 million for the years ended December 31, 2002 and 2001, respectively, and $27.2 million and $19.3 million for the three months ended December 31,2002 and 2001, respectively have been included as premium and deposits for the presentation above. |
33