Exhibit 99.1 Liberty Financial Companies, Inc. Unaudited Pro Forma Condensed Consolidated Balance Sheet Sale of the Annuity and Asset Management Businesses September 30, 2001 ($ in millions, except per share data ) Historical Annuity and Historical Asset Management LFC Businesses -------------------------- -------------------------- Assets: Investments $ 12,053.2 $ (11,998.6) Cash and cash equivalents 1,959.4 (1,930.0) Accrued investment income 142.8 (142.8) Deferred policy acquisition costs 531.0 (531.0) Deferred distribution costs 175.2 (175.2) Intangible assets 507.3 (506.2) Other assets 402.3 (382.8) Separate account assets 3,853.3 (3,853.3) -------------------------- -------------------------- $ 19,624.5 $ (19,519.9) ========================== ========================== Liabilities: Policyholder balances $ 12,033.3 $ (12,033.3) Notes payable to affiliates 200.0 Notes payable 565.3 (118.0) Payable for investments purchased and loaned 1,220.9 (1,220.9) Other liabilities 379.8 (351.1) Separate account liabilities 3,823.4 (3,823.4) -------------------------- -------------------------- Total liabilities 18,222.7 (17,546.7) Series A redeemable convertible preferred stock Stockholders' Equity: Common stock 0.5 Additional paid in capital 951.7 Retained earnings 413.9 (1,936.4) Accumulated other comprehensive income 35.7 (36.8) -------------------------- -------------------------- Total stockholders' equity 1,401.8 (1,973.2) -------------------------- -------------------------- $ 19,624.5 $ (19,519.9) ========================== ========================== Book Value Per Share (48,975,583 common shares outstanding) Pro Forma Pro Forma Adjustments LFC -------------------------- -------------------------- Assets: Investments $ 54.6 Cash and cash equivalents $ 2,602.0 (1) 1,963.30 (459.2)(5) (208.9)(6) Accrued investment income Deferred policy acquisition costs Deferred distribution costs Intangible assets 1.1 Other assets (3.8)(5) 15.7 Separate account assets -------------------------- -------------------------- $ 1,930.1 $ 2,034.7 ========================== ========================== Liabilities: Policyholder balances Notes payable to affiliates $ (200.0)(6) Notes payable (447.3)(5) Payable for investments purchased and loaned Other liabilities 369.0 (1) $ 468.0 20.0 (2) 11.2 (3) 48.3 (4) (0.3)(5) (8.9)(6) Separate account liabilities -------------------------- -------------------------- Total liabilities (208.0) 468.0 Series A redeemable convertible preferred stock Stockholders' Equity: Common stock 0.5 Additional paid in capital 951.7 Retained earnings 2,138.1 615.6 (7) Accumulated other comprehensive income (1.1) -------------------------- -------------------------- Total stockholders' equity 2,138.1 1,566.7 -------------------------- -------------------------- $ 1,930.1 $ 2,034.7 ========================== ========================== Book Value Per Share (48,975,583 common shares $ 31.99 outstanding) ========================== The accompanying notes at Exhibit 99.4 are an integral part of the unaudited pro forma condensed consolidated financial statements.