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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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AMENDMENT NO. 2 ON
FORM 8-K/A
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): November 30, 2001
FIRST FORTIS LIFE INSURANCE COMPANY
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(Exact Name of Registrant as Specified in Charter)
NEW YORK 33-71690 13-2699219
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(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
308 MALTBIE STREET
SUITE 200
SYRACUSE, NEW YORK 13204
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(Address of Principal Executive Offices)
(315) 451-0066
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(Registrant's telephone number, including area code)
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
This Current Report on Form 8-K/A is filed to amend the Company's
Current Report on Form 8-K dated December 13, 2001, as amended on December 17,
2001, pursuant to Item 7(a) and Item 7(b) of Form 8-K.
(a) The following financial information of Bankers
American Life Assurance Company, as required by Item
7(a), is filed herewith:
BANKERS AMERICAN LIFE ASSURANCE COMPANY
BALANCE SHEET (In Thousands)
ASSETS BALAC BALAC
9/30/2001 12/31/2000
Unaudited Unaudited
------------------ ---------------
Investments:
Fixed maturities, at fair value $ 50,849 $ 44,733
Equity securities, at approximate market value 2,863 1,982
Policy loans -- --
Short-term investments 8,649 1,704
--------- --------
62,361 48,419
Cash and cash equivalents (412) 110
Receivables:
Uncollected premiums, less allowance 202 854
Reinsurance recoverable on unpaid and paid losses 51,811 38,400
Other 787 878
--------- --------
52,800 40,132
Accrued investment income 651 603
Deferred policy acquisition costs 3,688 3,037
Property and equipment at cost, less accumulated depreciation -- --
Deferred federal income taxes -- --
Goodwill, less accumulated amortization -- --
Assets held in separate accounts -- --
--------- --------
Total assets $ 119,088 $ 92,301
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POLICY RESERVES AND LIABILITIES AND SHAREHOLDER'S EQUITY
Policy reserves and liabilities:
Future policy benefit reserves:
Life insurance $ 3,107 $ 2,942
Interest sensitive and investment products -- --
Accident and health 17,270 17,689
--------- --------
20,377 20,631
Unearned revenues 45,932 31,019
Other policy claims and benefits payable 8,362 2,522
Income taxes payable 4,085 1,444
Deferred income taxes 881 601
Deferred gain on reinsurance transactions -- --
Other liabilities 247 2,406
Liabilities related to separate accounts -- --
--------- --------
Total policy reserves and liabilities 79,884 58,623
--------- --------
Shareholder's equity:
Common stock, $20 par value: authorized, issued and
outstanding shares - 100,000 2,000 2,000
Additional paid-in capital 4,100 4,100
Retained earnings (accumulated deficit) 32,069 27,503
Accumulated other comprehensive loss 1,035 75
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Total shareholder's equity 39,204 33,678
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Total policy reserves, liabilities and shareholder's equity $ 119,088 $ 92,301
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BANKERS AMERICAN LIFE ASSURANCE COMPANY
INCOME STATEMENT (In Thousands)
BALAC
9/30/2001
Unaudited
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Revenues:
Insurance operations:
Life insurance premiums $ 5,310
Interest sensitive and investment product policy charges --
Accident and health insurance premiums 10,388
---------
15,698
Net investment income 2,502
Net realized (losses) gains on investments (167)
Other income --
---------
Total revenues 18,033
Benefits and expenses:
Benefits to policyholders:
Life insurance 2,424
Interest sensitive investment products --
Accident and health claims 3,091
---------
5,515
Amortization of deferred policy acquisition costs --
Insurance commissions 4,742
General and administrative expenses 807
---------
Total benefits and expenses 11,064
Income before federal income taxes 6,969
Federal income taxes 2,403
---------
Net income $ 4,566
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BANKERS AMERICAN LIFE ASSURANCE COMPANY
INCOME STATEMENT (In Thousands)
BALAC
12/31/2000
Unaudited
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Revenues:
Insurance operations:
Life insurance premiums $ 9,093
Interest sensitive and investment product policy charges --
Accident and health insurance premiums 16,064
--------
25,157
Net investment income 2,977
Net realized (losses) gains on investments 297
Other income --
--------
Total revenues 28,431
Benefits and expenses:
Benefits to policyholders:
Life insurance 3,717
Interest sensitive investment products --
Accident and health claims 6,586
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10,303
Amortization of deferred policy acquisition costs --
Insurance commissions 8,315
General and administrative expenses 2,803
--------
Total benefits and expenses 21,421
Income before federal income taxes 7,010
Federal income taxes 2,340
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Net income $ 4,670
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(b) The following pro forma financial information for
First Fortis Life Insurance Company, as required by
Item 7(b), is filed herewith:
FIRST FORTIS LIFE INSURANCE COMPANY
BALANCE SHEET (In Thousands)
ASSETS FFLIC BALAC PROFORMA FFLIC BALAC RESTATED
9/30/2001 9/30/2001 9/30/2001 12/31/2000 12/31/2000 12/31/2000
Unaudited Unaudited Unaudited Unaudited Unaudited
----------- ----------- ---------- ----------- ----------- ----------
Investments:
Fixed maturities, at fair value $ 119,907 $ 50,849 $ 170,756 $129,784 $ 44,733 $ 174,517
Equity securities, at approximate market value -- 2,863 2,863 -- 1,982 1,982
Policy loans 7 -- 7 4 -- 4
Short-term investments 34,644 8,649 43,293 9,450 1,704 11,154
--------- ------- -------- --------- ------- --------
154,558 62,361 216,919 139,238 48,419 187,657
Cash and cash equivalents 2,152 (412) 1,740 1,659 110 1,769
Receivables:
Uncollected premiums, less allowance
(2000 and 1999 - $100) 2,908 202 3,110 3,417 854 4,271
Reinsurance recoverable on unpaid and paid losses 47,787 51,811 99,598 36,761 38,400 75,161
Other 194 787 981 1,267 878 2,145
--------- -------- --------- ---------- -------- --------
50,889 52,800 103,689 41,445 40,132 81,577
Accrued investment income 2,054 651 2,705 2,215 603 2,818
Deferred policy acquisition costs 169 3,688 3,857 4,127 3,037 7,164
Property and equipment at cost, less accumulated
depreciation (2000 - $1,732; 1999 - $2,287) 49 -- 49 78 -- 78
Deferred federal income taxes 6,020 -- 6,020 3,283 -- 3,283
Goodwill, less accumulated amortization
(2000 - $460; 1999 - $414) 335 -- 335 370 -- 370
Assets held in separate accounts 61,161 -- 61,161 73,582 -- 73,582
--------- -------- --------- ---------- -------- ---------
Total assets $ 277,387 $119,088 $ 396,475 $265,997 $ 92,301 $ 358,298
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POLICY RESERVES AND LIABILITIES AND SHAREHOLDER'S EQUITY
Policy reserves and liabilities:
Future policy benefit reserves:
Life insurance $ 31,681 $ 3,107 $ 34,788 $ 32,443 $ 2,942 $ 35,385
Interest sensitive and investment products 4,319 -- 4,319 4,916 -- 4,916
Accident and health 81,663 17,270 98,933 76,830 17,689 94,519
--------- -------- --------- -------- ------- --------
117,663 20,377 138,040 114,189 20,631 134,820
Unearned revenues 9,955 45,932 55,887 10,058 31,019 41,077
Other policy claims and benefits payable 10,951 8,362 19,313 14,205 2,522 16,727
Income taxes payable 6,904 4,085 10,989 1,035 1,444 2,479
Deferred income taxes -- 881 881 -- 601 601
Deferred gain on reinsurance transactions 12,875 -- 12,875 2,086 -- 2,086
Other liabilities 7,029 247 7,276 7,464 2,406 9,870
Liabilities related to separate accounts 61,161 -- 61,161 73,582 -- 73,582
--------- -------- --------- -------- -------- ---------
Total policy reserves and liabilities 226,538 79,884 306,422 222,619 58,623 281,242
--------- -------- --------- -------- -------- ---------
Shareholder's equity:
Common stock, $20 par value: authorized,
issued and outstanding shares - 100,000 2,000 2,000 4,000 2,000 2,000 4,000
Additional paid-in capital 37,440 4,100 41,540 37,440 4,100 41,540
Retained earnings (accumulated deficit) 8,924 32,069 40,993 4,223 27,503 31,726
Accumulated other comprehensive loss 2,485 1,035 3,520 (285) 75 (210)
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Total shareholder's equity 50,849 39,204 90,053 43,378 33,678 77,056
--------- -------- --------- -------- -------- ---------
Total policy reserves, liabilities and
shareholder's equity $ 277,387 $119,088 $ 396,475 $265,997 $ 92,301 $ 358,298
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FIRST FORTIS LIFE INSURANCE COMPANY
INCOME STATEMENT (In Thousands)
FFLIC BALAC PROFORMA
9/30/2001 9/30/2001 9/30/2001
Unaudited Unaudited Unaudited
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Revenues:
Insurance operations:
Life insurance premiums $ 15,419 $ 5,310 $ 20,729
Interest sensitive and investment product policy charges 378 -- 378
Accident and health insurance premiums 29,852 10,388 40,240
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45,649 15,698 61,347
Net investment income 7,154 2,502 9,656
Net realized (losses) gains on investments (355) (167) (522)
Other income 1,776 -- 1,776
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Total revenues 54,224 18,033 72,257
Benefits and expenses:
Benefits to policyholders:
Life insurance 10,529 2,424 12,953
Interest sensitive investment products 479 -- 479
Accident and health claims 21,953 3,091 25,044
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32,961 5,515 38,476
Amortization of deferred policy acquisition costs 180 -- 180
Insurance commissions 4,654 4,742 9,396
General and administrative expenses 9,195 807 10,002
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Total benefits and expenses 46,990 11,064 58,054
Income before federal income taxes 7,234 6,969 14,203
Federal income taxes 2,532 2,403 4,935
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Net income $ 4,702 $ 4,566 $ 9,268
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FIRST FORTIS LIFE INSURANCE COMPANY
INCOME STATEMENT (In Thousands)
FFLIC BALAC RESTATED
12/31/2000 12/31/2000 12/31/2000
Unaudited Unaudited
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Revenues:
Insurance operations:
Life insurance premiums $ 24,399 $ 9,093 $ 33,492
Interest sensitive and investment product policy charges 1,197 -- 1,197
Accident and health insurance premiums 39,157 16,064 55,221
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64,753 25,157 89,910
Net investment income 9,330 2,977 12,307
Net realized (losses) gains on investments (1,883) 297 (1,586)
Other income 1,032 -- 1,032
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Total revenues 73,232 28,431 101,663
Benefits and expenses:
Benefits to policyholders:
Life insurance 18,031 3,717 21,748
Interest sensitive investment products 440 -- 440
Accident and health claims 28,657 6,586 35,243
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47,128 10,303 57,431
Amortization of deferred policy acquisition costs 360 -- 360
Insurance commissions 5,773 8,315 14,088
General and administrative expenses 13,208 2,803 16,011
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Total benefits and expenses 66,469 21,421 87,890
Income before federal income taxes 6,763 7,010 13,773
Federal income taxes 2,416 2,340 4,756
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Net income $ 4,347 $ 4,670 $ 9,017
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(c) Exhibits:
EXHIBIT NO. DESCRIPTION
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2.1 Stock Purchase Agreement by and between First Fortis Life
Insurance Company and American Bankers Insurance Group,
Inc., dated as of June 29, 2001.*
2.2 Agreement and Plan of Merger by and among First Fortis Life
Insurance Company, the Voting Trustees under that certain
Voting Trust Agreement dated June 1, 1999, Fortis, Inc.,
Bankers American Life Assurance Company, the Voting Trustees
under that certain Voting Trust Agreement dated August 20, 1999,
and American Bankers Insurance Group, Inc., dated as of June
29, 2001.*
2.3 First Amendment to Agreement and Plan of Merger effective
as of October 30, 2001*
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*Previously filed.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST FORTIS LIFE INSURANCE COMPANY
(Registrant)
Date: February 11, 2002 By: /s/ Larry Cains
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Name: Larry Cains
Title: Treasurer