Equitable Life Insurance Company of Iowa
Balance Sheet - Statutory Basis
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September 30,
2003
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(In Thousands)
Admitted assets
Cash and invested assets:
Bonds $ 3,658,954
Preferred stocks 441
Common stocks 1,232,540
Mortgage loans 950,456
Real Estate 2,968
Policy loans 127,934
Other invested assets 251,805
Cash and short-term investments 149,468
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Total cash and invested assets 6,374,566
Deferred and uncollected premiums 4,954
Accrued investment income 48,458
Reinsurance balances recoverable 5,797
Data processing equipment 92
Indebtedness from related parties 34,330
Federal income tax recoverable 19,328
Separate account assets 980,432
Other assets 376,094
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Total admitted assets $ 7,844,051
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Liabilities and capital and surplus
Liabilities:
Policy and contract liabilities:
Life and annuity reserves 4,639,169
Deposit type contracts 620,616
Policyholders' funds 301
Dividend payable 16,935
Unpaid claims 3,445
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Total policy and contract liabilities 5,280,466
Accounts payable and accrued expenses 28,110
Indebtedness to related parties 50,703
Interest maintenance reserve 25,466
Asset valuation reserve 33,398
Borrowed money 207,767
Other liabilities 65,941
Separate account liabilities 980,432
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Total liabilities 6,672,283
Capital and surplus:
Common stock 5,000
Additional paid-in capital 1,236,632
Unassigned surplus (69,864)
Total capital and surplus 1,171,768
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Total liabilities and capital and surplus $ 7,844,051
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Equitable Life Insurance Company of Iowa
Statements of Operations - Statutory Basis
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Nine months ended September 30,
2003 2002
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(In Thousands)
Premiums and other revenues:
Life, annuity, and accident and health premiums $ 1,465,594 $ 1,459,082
Policy proceeds and dividends left on deposit 1,615 1,528
Net investment income 219,545 159,853
Amortization of interest maintenance reserve (1,996) (1,694)
Commissions, expense allowances and reserve adjustments
on reinsurance ceded 56 393
Other income 13,255 24,526
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Total premiums and other revenues 1,698,069 1,643,688
Benefits paid or provided:
Death benefits 33,945 33,338
Annuity benefits 85,821 100,014
Surrender benefits 512,112 500,073
Interest on policy or contract funds 7,410 4,897
Other benefits 121 1,469
Life contract withdrawals 4,608 4,625
Change in life, annuity, and accident and health reserves 344,825 410,507
Net transfers to separate accounts (95,353) (100,078)
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Total benefits paid or provided 893,489 954,845
Insurance expenses:
Commissions 128,805 118,638
General expenses 41,281 36,435
Insurance taxes, licenses and fees, excluding
federal income taxes 1,933 3,201
Other 629,060 598,866
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Total insurance expenses 801,079 757,140
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Gain (loss) from operations before policyholder dividends,
federal income taxes and net realized capital losses 3,501 (68,298)
Dividends to policyholders 9,272 17,618
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Gain (loss) from operations before federal income taxes
and net realized capital losses (5,771) (85,916)
Federal income taxes (2,842) 27,581
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Gain from operations before net realized capital losses (2,929) (113,497)
Net realized capital gains or (losses), net of income
taxes 2003 - $3,633; 2002 - $(6,927) and excluding net
transfers to the interest maintenance reserve 2003- $4,307; 2002- $1,856 (17,564) (19,005)
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Net income (loss) $ (20,493) $ (132,502)
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Equitable Life Insurance Company of Iowa
Statements of Changes in Capital and Surplus - Statutory Basis
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Nine months ended September 30,
2003 2002
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(In Thousands)
Common stock:
Balance at beginning and end of year $ 5,000 $ 5,000
Paid-in and contributed surplus:
Balance at beginning of year 1,236,632 721,632
Capital contributions - 195,000
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Balance at end of year 1,236,632 916,632
Unassigned surplus:
Balance at beginning of year (97,422) 329,096
Net income (20,493) (132,502)
Change in net unrealized capital gains or losses 54,643 (297,737)
Change in nonadmitted assets (12,433) 20,696
Change in asset valuation reserve (7,274) 4,783
Change in net deferred income tax 13,115 (10,971)
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Balance at end of year (69,864) (86,635)
Total capital and surplus $ 1,171,768 $ 834,997
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Equitable Life Insurance Company of Iowa
Statements of Cash Flows - Statutory Basis
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Nine months ended September 30,
2003 2002
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(In Thousands)
Operations
Premiums, policy proceeds, and other considerations
received, net of reinsurance paid $ 1,462,703 $ 1,450,381
Net investment income received 263,891 254,823
Commission and expense allowances received on reinsurance ceded - 393
Benefits paid (729,890) (643,942)
Net transfers to separate accounts 98,088 114,056
Insurance expenses paid (778,614) (151,228)
Dividends paid to policyholders (15,966) (17,942)
Federal income taxes (paid) received 28,915 (57,692)
Net other (expenses) revenues 14,300 (573,936)
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Net cash provided by operations
343,427 374,913
Investments
Proceeds from sales, maturities, or repayments of investments:
Bonds 3,039,822 2,688,381
Stocks - 357
Mortgage loans 132,417 66,595
Real estate 750 491
Other invested assets 828 52,576
Miscellaneous proceeds 66,555 (20,336)
Net gains or (losses) on cash and short-term investments (169) -
Net tax on capital gains - 6,927
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Net proceeds from sales, maturities, or repayments of investments 3,240,203 2,794,991
Cost of investments acquired:
Bonds 3,535,481 3,147,911
Preferred stocks 246,024 245,192
Mortgage loans 218,253 51,840
Other invested assets 460 804
Miscellaneous applications 73,382 28,163
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Total cost of investments acquired 4,073,600 3,473,910
Net increase (decrease) in policy loans 2,857 (9,373)
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Net cash used in investment activities (830,540) (669,546)
Financing and miscellaneous activities Cash provided (used):
Capital and surplus paid-in - 195,000
Borrowed money 58,771 48,416
Net deposits on deposit-type contract funds 430,415 (822)
Other sources 119,393 12,406
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Net cash provided by financing and miscellaneous activities 608,579 255,000
Net change in cash and short-term investments 121,466 (39,633)
Cash and short-term investments:
Beginning of year 28,002 85,403
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End of year $ 149,468 $ 45,770
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