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EXHIBIT 99.B
REPORT OF INDEPENDENT AUDITORS
ON FINANCIAL STATEMENT SCHEDULES
THE BOARD OF DIRECTORS
THE MANUFACTURERS LIFE INSURANCE COMPANY OF AMERICA
We have audited the financial statements of The Manufacturers Life Insurance
Company of America as of December 31, 1996, 1995 and 1994 and for each of the
three years in the period ended December 31, 1996 and have issued our report
thereon dated March 21, 1997 (included elsewhere in this Registration
Statement). Our audits also included the financial statement schedules included
in this Registration Statement. These schedules are the responsibility of the
Company's management. Our responsibility is to express an opinion based on our
audits.
In our opinion, the financial statement schedules referred to above, when
considered in relation to the basic financial statements taken as a whole,
present fairly, in all material respects, the information set forth therein.
PHILADELPHIA, PENNSYLVANIA Ernst & Young LLP
MARCH 21, 1997
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THE MANUFACTURERS LIFE INSURANCE
COMPANY OF AMERICA
SCHEDULE I -- SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES
DECEMBER 31,1996
($ THOUSANDS)
AMOUNT
FAIR SHOWN IN THE
TYPE OF INVESTMENT COST VALUE BALANCE SHEET
- ----------------------------------- --------- --------- -------------
Fixed maturities:
United States Government $ 9,217 $ 9,507 $ 9,507
Foreign Governments 9,227 9,440 9,440
Corporate 32,971 32,761 32,761
- ----------------------------------- --------- --------- -------------
Total fixed maturities 50,415 51,708 51,708
Equity Securities:
Common stocks - other 19,450 21,572 21,572
Mortgage loans 645 645
Policy loans 9,822 9,822
Cash and short term investments 17,493 17,493
- ----------------------------------- --------- --------- -------------
Total Investments $97,825 $73,280 $101,240
=================================== ========= ========= =============
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THE MANUFACTURERS LIFE INSURANCE COMPANY OF AMERICA
SCHEDULE III -- SUPPLEMENTARY INSURANCE INFORMATION
($ THOUSANDS)
FUTURE
POLICY
BENEFITS BENEFITS, CLAIMS
DEFERRED LOSSES, CLAIMS OTHER POLICY NET LOSSES, AND OTHER
ACQUISITION AND UNEARNED CLAIMS AND PREMIUM INVESTMENT SETTLEMENT OPERATING
SEGMENT COSTS LOSS EXPENSES PREMIUMS BENEFITS PAYABLE REVENUE INCOME EXPENSES EXPENSES
- ---------------------------- -------- -------- ----- ----- -------- -------- -------- --------
1996:
Life Insurance and annuities $102,610 $91,915 $635 $379 $12,898 $6,141 $14,473 $52,067
Other (incl. non-life
subsidiaries) - - - - - 13,510 - 6,185
- ---------------------------- -------- -------- ----- ----- -------- -------- -------- --------
TOTAL $102,610 $91,915 $635 $379 $12,898 $19,651 $14,473 $58,252
============================ ======== ======== ===== ===== ======== ======== ======== ========
1995:
Life Insurance and annuities $78,829 $86,129 $642 $582 $15,293 $5,841 $16,905 $37,151
Other (incl. non-life
subsidiaries) - - - - - 12,888 - 4,787
- ---------------------------- -------- -------- ----- ----- -------- -------- -------- --------
TOTAL $78,829 $86,129 $642 $582 $15,293 $18,729 $16,905 $41,938
============================ ======== ======== ===== ===== ======== ======== ======== ========
1994:
Life Insurance and annuities $60,124 $72,623 $427 $95 $27,578 $3,588 $28,768 $25,108
Other (incl. non-life
subsidiaries) - - - - - 14,103 - 3,499
- ---------------------------- -------- -------- ----- ----- -------- -------- -------- --------
TOTAL $60,124 $72,623 $427 $95 $27,578 $17,691 $28,768 $28,607
============================ ======== ======== ===== ===== ======== ======== ======== ========
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THE MANUFACTURERS LIFE INSURANCE COMPANY OF AMERICA SCHEDULE IV -- REINSURANCE ($ THOUSANDS)
COL.A COL. B COL. C COL. D COL. E COL. F
CEDED TO ASSUMED PERCENTAGE OF
GROSS OTHER FROM OTHER NET AMOUNT
AMOUNT COMPANIES COMPANIES AMOUNT ASSUMED TO NET
- ------------------------------------------ ----------- ------------ ----------- ----------- ---------------
Year ended December 31, 1996:
Life insurance in force $7,700,816 $552,986 $98,741 $7,246,571 1.36%
========================================== =========== ============ =========== =========== ===============
Insurance premiums:
Life $12,998 $776 $676 $12,898 5.24%
========================================== =========== ============ =========== =========== ===============
Year ended December 31, 1995:
Life insurance in force $5,140,950 $147,818 $97,908 $5,091,040 1.92%
========================================== =========== ============ =========== =========== ===============
.
Insurance premiums:
Life $9,809 $475 $5,959 $15,293 38.97%
========================================== =========== ============ =========== =========== ===============
Year ended December 31, 1994:
Life insurance in force $4,628,330 $287,659 $102,918 $4,443,589 2.32%
========================================== =========== ============ =========== =========== ===============
Insurance premiums:
Life $2,380 $188 $25,386 $27,578 92.05%
========================================== =========== ============ =========== =========== ===============
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