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|   |
|--------|

| (Mark One) | FORM 10-K |
|------------|-----------|

|  x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) |
|---------|-----------------------------------------------|
|    | OF THE SECURITIES EXCHANGE ACT OF 1934        |
|    | For the fiscal year ended December 31, 2007   |

|    | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                                                    |
|---------|-------------------------------------------------------------------------------------------------------------|
|  o | SECURITIES EXCHANGE ACT OF 1934                                                                             |
|    | For the transition period                            from        to |

| New York                        |   | 13-5570651          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| 1290 Avenue of the Americas, New York, New York |   | 10104      |
|-------------------------------------------------|--------|------------|
| (Address of principal executive offices)        |   | (Zip Code) |

| Title of each class |   | Name of each exchange onwhich                                registered |
|---------------------|--------|-------------------------------------------------------------------------|
| None                |   | None                                                                    |

|   | Yes |                      o |   | No |                      x |
|--------|-----|-----------------------------|--------|----|-----------------------------|

|   | Yes |                      o |   | No |                      x |
|--------|-----|-----------------------------|--------|----|-----------------------------|

|   | Yes |                      x |   | No |                      o |
|--------|-----|-----------------------------|--------|----|-----------------------------|

| Large                    accelerated filer  o                                                              |  | Accelerated filer                    o         |  |
|-----------------------------------------------------------------------------------------------------------------|--|------------------------------------------------|--|
| Non-accelerated                    filerx (Do not check                    if a smaller reporting company) |  | Smaller reporting company                    o |  |
|                                                                                                                 |  |                                                |  |

|   | Yes |                      o |   | No |                      x |
|--------|-----|-----------------------------|--------|----|-----------------------------|

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| Part                            I                       |                                                                                                                                                                                                               | Page       |   |
|---------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------|
|                                                    |                                                                                                                                                                                                               |       |   |
| Item 1.                                                 | Business                                                                                                                                                                                                           | 1-1        |   |
|                                                    | Overview                                                                                                                                                                                                           | 1-1        |   |
|                                                    | Segment Information                                                                                                                                                                                                | 1-1        |   |
|                                                    | Employees                                                                                                                                                                                                          | 1-7        |   |
|                                                    | Competition                                                                                                                                                                                                        | 1-7        |   |
|                                                    | Regulation                                                                                                                                                                                                         | 1-7        |   |
|                                                    | Parent Company                                                                                                                                                                                                     | 1-10       |   |
|                                                    | Other Information                                                                                                                                                                                                  | 1-11       |   |
| Item 1A.                                                | Risk Factors                                                                                                                                                                                                       | 1A-1       |   |
| Item 1B.                                                | Unresolved Staff Comments                                                                                                                                                                                          | 1B-1       |   |
| Item 2.                                                 | Properties                                                                                                                                                                                                         | 2-1        |   |
| Item 3.                                                 | Legal Proceedings                                                                                                                                                                                                  | 3-1        |   |
| Item 4.                                                 | Submission of Matters to a Vote of Security Holders*                                                                                                                                                               | 4-1        |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| Part                            II                      |                                                                                                                                                                                                               |       |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| Item 5.                                            | Market for Registrant’s Common Equity, Related Stockholder                            Matters and                                                        Issuer Purchases of Equity Securities          | 5-1        |   |
| Item 6.                                                 | Selected Financial Data*                                                                                                                                                                                           | 6-1        |   |
| Item 7.                                                 | Management’s Discussion and Analysis of Financial Condition and                                                        Results of Operations (“Management                            Narrative”) | 7-1        |   |
| Item 7A.                                                | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                         | 7A-1       |   |
| Item 8.                                                 | Financial Statements and Supplementary Data                                                                                                                                                                        | FS-1       |   |
| Item 9.                                                 | Changes In and Disagreements With Accountants on Accounting and                                                        Financial Disclosure                                                                        | 9-1        |   |
| Item 9A(T).                                             | Controls and Procedures                                                                                                                                                                                            | 9A-1       |   |
| Item 9B.                                           | Other Information                                                                                                                                                                                                  | 9B-1  |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| Part                            III                     |                                                                                                                                                                                                               |       |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| Item 10.                                                | Directors, Executive Officers and Corporate Governance                                                                                                                                                        | 10-1       |   |
| Item 11.                                                | Executive Compensation*                                                                                                                                                                                            | 11-1       |   |
| Item 12.                                                | Security Ownership of Certain Beneficial Owners and Management                                                        and Related Stockholder Matters*                                                             | 12-1       |   |
| Item 13.                                                | Certain Relationships and Related Transactions, and Director                            Independence*                                                                                                              | 13-1       |   |
| Item 14.                                                | Principal Accounting Fees and Services                                                                                                                                                                             | 14-1       |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| Part                            IV                      |                                                                                                                                                                                                               |       |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| Item 15.                                                | Exhibits, Financial Statement Schedules                                                                                                                                                                            | 15-1       |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| Signatures                                              |                                                                                                                                                                                                               |  S-1  |   |
| Index to Exhibits                                       |                                                                                                                                                                                                               |  E-1  |   |
|                                                    |                                                                                                                                                                                                               |       |   |
|                                                    |                                                                                                                                                                                                               |       |   |
| *Omitted pursuant to General Instruction I to Form 10-K |                                                                                                                                                                                                               |       |

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|                                |   |   |     |       |   |    |
|-------------------------------------|--------|--------|----------|------------|--------|---------|
|                                |   | Amount |     | % of Total |   |
|                                |   |   |     |       |   |    |
| Fixed maturities                    |   | $      | 27,596.5 |       | 73.3   | %  |
| Mortgages                           |   |   | 3,730.6  |       | 9.9    |    |
| Equity real estate                  |   |   | 382.0    |       | 1.0    |    |
| Other equity investments            |   |   | 1,500.5  |       | 4.0    |    |
| Policy loans                        |   |   | 3,937.3  |       | 10.5   |    |
| Cash and short-term investments (2) |   |   | 485.0    |       | 1.3    |    |
| Total                               |   | $      | 37,631.9 |       | 100.0  |  % |
|                                |   |   |     |       |   |    |

| (1)   | Net amortized cost is the cost of the General Account Investment Assets                            (adjusted for impairments in value deemed to be other than temporary,                            if any) less depreciation and amortization, where applicable, and less                            valuation allowances on mortgage and real estate portfolios. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Comprised of “Cash and cash equivalents” and short-term                            investments included within the “Other invested assets”                            caption on the consolidated balance sheet. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·                                 | Sustained equity market declines that result in decreases in the                            account values of our variable life and annuity contracts could reduce                            the amount of revenue we derive from fees charged on those account and                            asset values; |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Sustained equity market declines that result in decreases in the                            account values of our variable life and annuity contracts that provide                            guaranteed benefits would increase the size of our potential                            obligations related to such guaranteed benefits.  This could                            result in an increase in claims and reserves related to those                            contracts, net of any reinsurance reimbursements or proceeds from our                            hedging program; |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Increased volatility of equity markets may result in changes to the                            fair value of our GMIB reinsurance contracts, which could result in                            increased volatility of our earnings; |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Increased volatility of equity markets may increase surrenders and                            withdrawals of our variable life and annuity contracts or cause                            contract owners to reallocate a portion of their account balances to                            less volatile investment options (which may have lower fees), which                            could negatively impact our future profitability; |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Equity market declines could negatively impact the value of equity                            securities we hold for investment, including our investment in                            AllianceBernstein, thereby reducing our capital; |
|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Equity price declines may decrease the value of assets held to fund                            payments to employees from our qualified pension plan, which could                            result in increased pension plan costs; and |
|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Deferred acquisition costs, referred to as DAC, and value of business                            acquired, referred to as VOBA, are accounting methods for amortizing                            the sales costs related to the acquisition of new life insurance and                            annuity business over the period in which that business will generate                            earnings for us.  DAC and VOBA amortization rates are based                            in part on investment return and related estimates that, in turn, are                            based on actual market trends and reasonable expectations as to future                            performance drawn from those trends.  Equity market declines                            could lead to reductions in these estimates that, in turn, could                            accelerate our DAC and VOBA amortization and reduce our current                            earnings. |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·                                 | We could experience long-term interruptions in our service due to the                            vulnerability of our information and operation systems and those of our                            significant vendors to the effects of catastrophic                            events.  Some of our operational systems are not fully                            redundant, and our disaster recovery and business continuity planning                            cannot account for all eventualities.  Additionally,                            unanticipated problems with our disaster recovery systems could further                            impede our ability to conduct business, particularly if those problems                            affect our computer-based data processing, transmission, storage and                            retrieval systems and destroy valuable data. |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | The occurrence of a pandemic disease such as the Avian Influenza Virus                            (H5N1) could have a material adverse effect on our liquidity and the                            operating results of the Insurance segment due to increased mortality                            and, in certain cases, morbidity rates. |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | The occurrence of any pandemic disease, natural disaster or terrorist                            attacks or any catastrophic event which results in our workforce being                            unable to be physically located at one of our facilities could result                            in lengthy interruptions in our service. |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | A terrorist attack on the financial services industry in the United                            States could have severe negative effects on our investment portfolio                            and disrupt our business operations.  Any continuous and                            heightened threat of terrorist attacks could also result in increased                            costs of reinsurance. |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                   |   | 2007          |   |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|
|                                                                                                   |   | (In Millions) |   |
|                                                                                                   |   |          |   |   |   |   |
| (Losses) Earnings from Discontinued Operations, Net of Income                            Taxes:        |   |          |   |   |   |   |
| Wind-up Annuities                                                                                      |   | $             | (.1    | )      |   | $      | 30.2 |   |
| Real estate held-for-sale                                                                              |   |          | (6.8   | )      |   |   | 1.1 |   |
| Disposal of business - Enterprise                                                                      |   |          | 1.0    |   |   |   | (.1 | ) |
| Total                                                                                                  |   | $             | (5.9   | )      |   | $      | 31.2 |   |
|                                                                                                   |   |          |   |   |   |   |   |   |
| Gains (Losses) on Disposal of Discontinued Operations,                            Net of Income Taxes: |   |          |   |   |   |   |   |   |
| Disposal of business - Enterprise                                                                      |   | $             | (.4    | )      |   | $      | (1.9 | ) |
| Real estate held-for-sale                                                                              |   |          | 3.2    |   |   |   | - |   |
| Total                                                                                                  |   | $             | 2.8    |   |   | $      | (1.9 | ) |

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|                                                                                                     |   |   |     |   |   |
|----------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|
|                                                                                                     |   | 2007   |     | 2006   |   |
|                                                                                                     |   |   |     |   |   |   |
|                                                                                                     |   |   |     |   |   |   |
| Universal life and investment-type product policy fee income                                             |   | $      | 2,741.7  |   |   | $ | 2,252.7 |   |
| Premiums                                                                                                 |   |   | 804.9    |   |   |   | 817.8 |   |
| Net investment income                                                                                    |   |   | 2,548.4  |   |   |   | 2,237.1 |   |
| Investment losses, net                                                                                   |   |   | (40.6    | )      |   |   | (3.0 | ) |
| Commissions, fees and other income                                                                       |   |   | 883.6    |   |   |   | 662.3 |   |
| Total revenues                                                                                           |   |   | 6,938.0  |   |   |   | 5,966.9 |   |
|                                                                                                     |   |   |     |   |   |   |   |   |
| Policyholders’ benefits                                                                            |   |   | 1,998.5  |   |   |   | 1,960.5 |   |
| Interest credited to policyholders’ account balances                                               |   |   | 1,065.2  |   |   |   | 1,082.5 |   |
| Compensation and benefits                                                                                |   |   | 595.4    |   |   |   | 520.6 |   |
| Commissions                                                                                              |   |   | 1,744.2  |   |   |   | 1,394.4 |   |
| Amortization of DAC                                                                                      |   |   | 1,099.2  |   |   |   | 689.3 |   |
| Capitalization of DAC                                                                                    |   |   | (1,719.3 | )      |   |   | (1,363.4 | ) |
| Rent expense                                                                                             |   |   | 53.8     |   |   |   | 48.4 |   |
| Amortization of other intangible assets, net                                                             |   |   | (.3      | )      |   |   | - |   |
| Interest expense                                                                                         |   |   | 48.8     |   |   |   | 47.6 |   |
| All other operating costs and expenses                                                                   |   |   | 753.6    |   |   |   | 705.1 |   |
| Total benefits and other deductions                                                                      |   |   | 5,639.1  |   |   |   | 5,085.0 |   |
|                                                                                                     |   |   |     |   |   |   |   |   |
| Earnings from Continuing Operations before Income Taxes and Minority                            Interest |   | $      | 1,298.9  |   |   | $ | 881.9 |   |

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|                                                                                             |   | 2007   |    |   | 2006   |   |
|--------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                             |   |   |    |   |   |   |
| Revenues:                                                                                        |   |   |    |   |   |   |
| Investment advisory and services fees                                                        (1) |   | $      | 3,386.2 |   |   | $      | 2,890.2 |   |
| Distribution revenues                                                                            |   |   | 473.4   |   |   |   | 421.0 |   |
| Institutional research services                                                                  |   |   | 423.5   |   |   |   | 375.1 |   |
| Other revenues                                                                                   |   |   | 116.4   |   |   |   | 132.3 |   |
| Commissions, fees and other income                                                               |   |   | 4,399.5 |   |   |   | 3,818.6 |   |
|                                                                                             |   |   |    |   |   |   |   |   |
| Investment income                                                                                |   |   | 323.3   |   |   |   | 322.0 |   |
| Less: interest expense to finance trading activities                                             |   |   | (194.4  | )      |   |   | (187.8 | ) |
| Net investment income                                                                            |   |   | 128.9   |   |   |   | 134.2 |   |
|                                                                                             |   |   |    |   |   |   |   |   |
| Investment gains, net                                                                            |   |   | 33.4    |   |   |   | 49.9 |   |
| Total revenues                                                                                   |   |   | 4,561.8 |   |   |   | 4,002.7 |   |
|                                                                                             |   |   |    |   |   |   |   |   |
| Expenses:                                                                                        |   |   |    |   |   |   |   |   |
| Compensation and benefits                                                                        |   |   | 1,858.1 |   |   |   | 1,570.1 |   |
| Distribution plan payments                                                                       |   |   | 335.1   |   |   |   | 292.9 |   |
| Amortization of deferred sales commissions                                                       |   |   | 95.5    |   |   |   | 100.4 |   |
| Interest expense                                                                                 |   |   | 23.2    |   |   |   | 22.8 |   |
| Rent expense                                                                                     |   |   | 170.5   |   |   |   | 155.7 |   |
| Amortization of other intangible assets, net                                                     |   |   | 23.5    |   |   |   | 23.6 |   |
| Other operating costs and expenses                                                               |   |   | 672.0   |   |   |   | 647.2 |   |
| Total expenses                                                                                   |   |   | 3,177.9 |   |   |   | 2,812.7 |   |
|                                                                                             |   |   |    |   |   |   |   |   |
| Earnings from Continuing Operations beforeIncome Taxes and Minority Interest                     |   | $      | 1,383.9 |   |   | $      | 1,190.0 |   |

| (1)   | Included fees earned by AllianceBernstein totaling $31.8 million and                            $32.2 million in 2007 and 2006, respectively, for services provided to                            the Insurance Group. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                 |   | December 31, |    |
|--------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                 |   | 2007         |    |   | 2006 |   |
|                                                                                 |   |         |    |   |   |   |
| Third party                                                        (1)               |   | $            | 734,112 |   |   | $ | 646,899 |   |
| General Account and other                                                        (2) |   |         | 50,576  |   |   |   | 51,617 |   |
| Insurance Group Separate Accounts                                                    |   |         | 96,726  |   |   |   | 84,989 |   |
| Total Assets Under Management                                                        |   | $            | 881,414 |   |   | $ | 783,505 |   |

| (1)   | Includes $34.01 billion and $29.46 billion of assets managed on behalf                            of AXA affiliates at December 31, 2007 and 2006,                            respectively.  Also included in 2007 and 2006 are $19.75                            billion and $17.83 billion, respectively, in assets related to an                            Australian joint venture between AllianceBernstein and an AXA                            affiliate. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Includes invested assets of the Company not managed by                            AllianceBernstein, principally cash and short-term investments and                            policy loans, totaling approximately $10.92 billion and $9.71 billion                            at December 31, 2007 and 2006, respectively, as well as mortgages and                            equity real estate totaling $4.28 billion and $3.98 billion at December                            31, 2007 and 2006, respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                 |   | Contractual Obligations – December 31, 2007 |           |   |                   |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|----------------|--------|------------------------|---------|
|                                                                                                                                                 |   | (In Millions)                                     |           |   |                   |    |
|                                                                                                                                                 |   |                                              |           |   | Payments Due by Period |    |
|                                                                                                                                                 |   |                                              |           |   | Less than              |    |   |   |   |   |   |   |   | Over |   |
|                                                                                                                                                 |   | Total                                             |           |   | 1 year                 |    |   | 1 – 3 years |   |   | 4 – 5 years |   |   | 5 years |   |
|                                                                                                                                                 |   |                                              |           |   |                   |    |   |   |   |   |   |   |   |   |   |
| Contractual obligations:                                                                                                                             |   |                                              |           |   |                   |    |   |   |   |   |   |   |   |   |   |
| Policyholders liabilities -                                                                                                                          |   |                                              |           |   |                   |    |   |   |   |   |   |   |   |   |   |
| policyholders' account balances, future policy benefits and other                            policyholders                            liabilities(1) |   | $                                            |  76,799.8 |   |                   | $  |  2,876.8 |   |   | $  | 5,646.7  |   |   | $  |  4,978.5 |   |   | $  |  63,297.8 |   |
| Long-term debt                                                                                                                                       |   |                                              | 448.3          |   |                   |    | 248.3 |   |   |   | - |   |   |   | - |   |   |   | 200.0 |   |
| Operating leases                                                                                                                                     |   |                                              | 2,878.9        |   |                   |    | 196.6 |   |   |   | 387.2 |   |   |   | 337.3 |   |   |   | 1,957.8 |   |
| Employee benefits                                                                                                                                    |   |                                              | 42.3           |   |                   |    | 1.8 |   |   |   | 6.1 |   |   |   | 8.9 |   |   |   | 25.5 |   |
| Total Contractual                                 Obligations                                                                                   |   | $                                                 | 80,169.3       |   |                   | $       | 3,323.5 |   |   | $ | 6,040.0 |   |   | $ | 5,324.7 |   |   | $ | 65,481.1 |   |

| (1)   | Policyholders liabilities represent estimated cash flows out of the                            General Account related to the payment of death and disability claims,                            policy surrenders and withdrawals, annuity payments, minimum guarantees                            on Separate Account funded contracts, matured endowments, benefits                            under accident and health                            contracts,                            policyholder dividends and future renewal premium-based and fund-based                            commissions offset by contractual future premiums and deposits on                            in-force contracts.  These estimated cash flows are based on                            mortality, morbidity and lapse assumptions comparable with the                            Company’s experience and assume market growth and interest                            crediting consistent with assumptions used in amortizing                            DAC.  These amounts are undiscounted and, therefore, exceed                            the Policyholders’ account balances and Future policy benefits                            and other policyholder liabilities included in the consolidated balance                            sheet included elsewhere herein.  They do not reflect                            projected recoveries from reinsurance agreements.  Due to the                            use of assumptions, actual cash flows will differ from these estimates                            (see “Critical Accounting Estimates – Future Policy                            Benefits”).  Separate Accounts liabilities have been                            excluded as they are legally insulated from General Account obligations                            and will be funded by cash flows from Separate Accounts assets. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                              Interest Rate Risk Exposure |   |
|---------------------------------------------------------------|--------|
|                      (In Millions)                       |   |

|                   |   |              |     |   |                                       |   |     |      |   |    |                                |   |
|------------------------|--------|-------------------|----------|--------|--------------------------------------------|--------|----------|-----------|--------|---------|-------------------------------------|--------|
|                   |   | December 31, 2007 |     |   | December 31, 2006                          |   |
|                   |   | Fair**Value**     |     |   | Balance After**+100 Base****Point Change** |   |     | FairValue |   |    | Balance After+100 BasisPoint Change |   |
| Continuing Operations: |   |              |     |   |                                       |   |     |      |   |    |                                |   |
| Fixed maturities:      |   |              |     |   |                                       |   |     |      |   |    |                                |   |
| Fixed rate             |   | $                 | 27,433.0 |   |                                       | $      | 25,994.8 |      |   | $  | 29,137.4                            |   |   | $  | 27,656.5 |   |
| Floating rate          |   |              | 300.9    |   |                                       |   | 300.5    |      |   |    | 260.5                               |   |   |   | 259.9 |   |
| Mortgage loans         |   |              | 3,766.9  |   |                                       |   | 3,594.6  |      |   |    | 3,285.6                             |   |   |   | 3,144.1 |   |
|                   |   |              |     |   |                                       |   |     |      |   |    |                                |   |   |   |   |   |
| Wind-up Annuities:     |   |              |     |   |                                       |   |     |      |   |    |                                |   |   |   |   |   |
| Fixed maturities:      |   |              |     |   |                                       |   |     |      |   |    |                                |   |   |   |   |   |
| Fixed rate             |   | $                 | 705.0    |   |                                       | $      | 678.5    |      |   | $       | 764.8                               |   |   | $ | 735.6 |   |
| Mortgage loans         |   |              | 2.3      |   |                                       |   | 2.3      |      |   |    | 3.0                                 |   |   |   | 3.0 |   |

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|                              Equity Price Risk Exposure |
|--------------------------------------------------------------|
|                              (In Millions)              |

|                  |   |                                      |   |   |                                                                                             |   |   |                                      |   |   |                                                                                             |   |
|-----------------------|--------|-------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|--------------------------------------------------------------------------------------------------|--------|
|                  |   | December 31, 2007                         |   |   | December 31, 2006                                                                                |   |
|                  |   | Fair                                Value |   |   | Balance After                            -10% Equity                                Price Change |   |   | Fair                                Value |   |   | Balance After                            -10% Equity                                Price Change |   |
|                  |   |                                      |   |   |                                                                                             |   |   |                                      |   |   |                                                                                             |   |
| Insurance Group:      |   |                                      |   |   |                                                                                             |   |   |                                      |   |   |                                                                                             |   |
| Continuing operations |   | $                                         | 7.2    |   |                                                                                             | $      | 6.5    |                                      |   | $      | 232.5                                                                                            |   |   | $ | 209.3 |   |
| Wind-up Annuities     |   |                                      | -      |   |                                                                                             |   | -      |                                      |   |   | -                                                                                                |   |   |   | - |   |

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|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |
|---------------------|--------|------------------------------------------------|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------------------|-------------------------------------------|
|                |   |                                           |     |   |                                                                                                                                   |   |   | Interest Rate Sensitivity                                                                               |   |
|                |   | Notional                                Amount |     |   | Weighted                                Average                                    Term                                        (Years) |   |   | Balance After                                -100 Basis                                    Point Change |   |   | Fair                                Value |   |   | Balance After                                +100 Basis                                    Point Change |                                      |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |
| December 31, 2007   |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |
| Options:            |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |
| Floors              |   | $                                              | 27,000.0 |   |                                                                                                                                   |   | 3.25   |                                                                                                    |   | $      | 193.2                                     |   |   | $                                                                                                       | 162.9                                     |   |   | $ | (79.0 | ) |
| Futures             |   |                                           | 1,159.4  |   |                                                                                                                                   |   | .22    |                                                                                                    |   |   | 71.0                                      |   |   |                                                                                                    | -                                         |   |   |   | (71.0 | ) |
| Interest rate swaps |   |                                           | 125.0    |   |                                                                                                                                   |   | 9.14   |                                                                                                    |   |   | 9.3                                       |   |   |                                                                                                    | 4.9                                       |   |   |   | (9.2 | ) |
| Total               |   | $                                              | 28,284.4 |   |                                                                                                                                   |   |   |                                                                                                    |   | $      | 273.5                                     |   |   | $                                                                                                       | 167.8                                     |   |   | $ | (159.2 | ) |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
| December 31, 2006   |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
| Options:            |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
| Floors              |   | $                                              | 32,000.0 |   |                                                                                                                                   |   | 2.88   |                                                                                                    |   | $      | 30.2                                      |   |   | $                                                                                                       | 8.7                                       |   |   | $ | 4.3 |   |
| Futures             |   |                                           | 565.8    |   |                                                                                                                                   |   | .22    |                                                                                                    |   |   | 40.5                                      |   |   |                                                                                                    | -                                         |   |   |   | (40.5 | ) |
| Total               |   | $                                              | 32,565.8 |   |                                                                                                                                   |   |   |                                                                                                    |   | $      | 70.7                                      |   |   | $                                                                                                       | 8.7                                       |   |   | $ | (36.2 | ) |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   | Equity Sensitivity                                                                                      |                                      |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    | Fair                                Value |   |   |   | Balance after                                -10% Equity                                    Price Shift |   |
| December 31, 2007   |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
| Futures             |   | $                                         | (5,081.1 | )      |                                                                                                                                   |   | .22    |                                                                                                    |   |   |                                      |   |   | $                                                                                                       | -                                         |   |   | $ | 508.1 |   |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
| December 31, 2006   |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |
| Futures             |   | $                                         | (2,970.5 | )      |                                                                                                                                   |   | .22    |                                                                                                    |   |   |                                      |   |   | $                                                                                                       | -                                         |   |   | $ | 297.0 |   |
|                |   |                                           |     |   |                                                                                                                                   |   |   |                                                                                                    |   |   |                                      |   |   |                                                                                                    |                                      |   |   |   |   |   |

----

|                              Interest Rate Risk Exposure |
|---------------------------------------------------------------|
|                              (In Millions)               |

|                   |   |                                        |   |   |                                                                                        |   |   |                                  |   |   |                                                                                        |   |
|------------------------|--------|---------------------------------------------|--------|--------|---------------------------------------------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|---------------------------------------------------------------------------------------------|--------|
|                   |   | December 31, 2007                           |   |   | December 31, 2006                                                                           |   |
|                   |   |  Fair                            Value |   |   | Balance After                            -100 Basis                            Point Change |   |   | Fair                            Value |   |   | Balance After                            -100 Basis                            Point Change |   |
|                   |   |                                        |   |   |                                                                                        |   |   |                                  |   |   |                                                                                        |   |
| Continuing Operations: |   |                                        |   |   |                                                                                        |   |   |                                  |   |   |                                                                                        |   |
| Fixed rate             |   | $                                           | 224.6  |   |                                                                                        | $      | 238.6  |                                  |   | $      | 229.7                                                                                       |   |   | $ | 245.6 |   |

|   | Interest Rate Risk Exposure |   |
|--------|-----------------------------|--------|
|   | (In Millions)               |   |

|                                     |   |                                            |   |   |                                                                                                |   |   |                                      |   |   |                                                                                                |   |
|------------------------------------------|--------|-------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------------|--------|
|                                     |   | December 31, 2007                               |   |   | December 31, 2006                                                                                   |   |
|                                     |   |  Fair                                Value |   |   | Balance After                                +100 Basis                                Point Change |   |   | Fair                                Value |   |   | Balance After                                +100 Basis                                Point Change |   |
|                                     |   |                                            |   |   |                                                                                                |   |   |                                      |   |   |                                                                                                |   |
| Fixed Income Investments:                |   |                                            |   |   |                                                                                                |   |   |                                      |   |   |                                                                                                |   |
| Trading                                  |   | $                                               | 106.2  |   |                                                                                                | $      | 101.0  |                                      |   | $      | 31.7                                                                                                |   |   | $ | 30.2 |   |
| Available-for-sale and other investments |   |                                            | 28.4   |   |                                                                                                |   | 27.0   |                                      |   |   | 32.0                                                                                                |   |   |   | 30.5 |   |

----

|                                                                                                   |   |                                  |   |   |                                                      |   |   |                                  |   |   |                                                                                                  |   |
|--------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|---------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------|--------|
|                                                                                                   |   |  December 31, 2007               |   |   | December 31, 2006                                         |   |
|                                                                                                   |   | Fair                            Value |   |   | Balance After                    -10% equity Price Change |   |   | Fair                            Value |   |   |  Balance                    After                    -10% Equity                    Price Change |   |
|                                                                                                   |   |                                  |   |   |                                                      |   |   |                                  |   |   |                                                                                                  |   |
| Equity Investments:                                                                                    |   |                                  |   |   |                                                      |   |   |                                  |   |   |                                                                                                  |   |
| Trading                                                                                                |   | $                                     | 466.1  |   |                                                      | $      | 419.5  |                                  |   | $      | 432.1                                                                                                 |   |   | $ | 388.9 |   |
| Available for sale and                                other                                investments |   |                                  | 314.5  |   |                                                      |   | 283.0  |                                  |   |   | 251.8                                                                                                 |   |   |   | 226.7 |   |

|   |   | December 31, 2007 |   |    | December 31, 2006                                                                                                                                      |
|--------|--------|-------------------|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | Fair Value        |   |    | Balance                                        After -100                                            Basis Point                                Change |   |   | Balance                                            After -10%                                    Exchange                                Rate Change |   |   | Fair Value |   |   | BalanceAfter                                        -100Basis                                    PointChange |   |   | Balance                    After -10%                    Exchange                    Rate Change |
|   |   |              |   |    |                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt   | $      |  534.0       |   |  $ | 557.5                                                                                                                                                  |   |  $ | 534.0 |   |  $ | 335.0 |   |  $ | 349.4 |   |  $ |  335.0 |

----

| Reports of Independent Registered Public Accounting Firms:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Report of PricewaterhouseCoopers LLP on AXA Equitable Life Insurance                            Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | F-1    |
| Report of KPMG LLP on AllianceBernstein                            L.P.                                                                                                                              | F-2    |
| Report of KPMG LLP on AllianceBernstein Holding L.P.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | F-3    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Consolidated Financial Statements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |
| Consolidated Balance Sheets, December 31, 2007 and 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | F-4    |
| Consolidated Statements of Earnings, Years Ended December 31, 2007,                            2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | F-5    |
| Consolidated Statements of Shareholder’s Equity and Comprehensive                            Income, Years Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
| December 31, 2007, 2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | F-6    |
| Consolidated Statements of Cash Flows, Years Ended December 31, 2007,                            2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | F-7    |
| Notes to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | F-9    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Report of Independent Registered Public Accounting Firm on Financial                            Statement Schedules                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | F-58   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |
| Consolidated Financial Statement Schedules:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| Schedule I - Summary of Investments - Other than Investments in Related                            Parties,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | F-59   |
| Schedule II - Balance Sheets (Parent Company), December 31, 2007 and                            2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | F-60   |
| Schedule II - Statements of Earnings (Parent Company), Years                            Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| December 31, 2007, 2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | F-61   |
| Schedule II – Statements of Cash Flows (Parent Company), Years                            Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| December 31, 2007, 2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | F-62   |
| Schedule III – Supplementary Insurance Information, Years                            Ended                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |
| December 31, 2007, 2006 and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | F-63   |
| Schedule IV – Reinsurance, Years Ended December 31, 2007, 2006                            and 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | F-66   |

----

         

         

----

****

****

****

****

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |      |   |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2007          |      |   | 2006   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (In Millions) |      |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |      |   |   |   |
| Investments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |      |   |   |   |
| Fixed maturities available for sale, at estimated fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $             | 27,159.5  |   |   | $      | 29,031.1 |   |
| Mortgage loans on real                            estate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 3,730.6   |   |   |   | 3,240.7 |   |
| Equity real estate, held for the production of income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 381.7     |   |   |   | 396.9 |   |
| Policy                            loans                                                                                                            |   |          | 3,938.8   |   |   |   | 3,898.1 |   |
| Other equity                            investments                                                                                                |   |          | 1,820.3   |   |   |   | 1,562.1 |   |
| Trading securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 573.3     |   |   |   | 465.1 |   |
| Other invested                            assets                                                                                                   |   |          | 1,000.9   |   |   |   | 891.6 |   |
| Total                            investments                                                                                                                      |   |          | 38,605.1  |   |   |   | 39,485.6 |   |
| Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 1,173.2   |   |   |   | 1,122.2 |   |
| Cash and securities segregated, at estimated fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 2,370.0   |   |   |   | 2,009.8 |   |
| Broker-dealer related receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 1,623.5   |   |   |   | 3,481.0 |   |
| Deferred policy acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 9,019.3   |   |   |   | 8,316.5 |   |
| Goodwill and other intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | 3,724.6   |   |   |   | 3,738.6 |   |
| Amounts due from reinsurers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | 2,890.6   |   |   |   | 2,689.3 |   |
| Loans to affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 638.3     |   |   |   | 400.0 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 3,341.8   |   |   |   | 3,241.5 |   |
| Separate Accounts’ assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | 96,539.6  |   |   |   | 84,801.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |      |   |   |   |   |   |
| Total                            Assets                                                                                             |   | $             | 159,926.0 |   |   | $      | 149,286.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |      |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |      |   |   |   |   |   |
| Policyholders’ account balances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $             | 25,168.2  |   |   | $      | 26,439.0 |   |
| Future policy benefits and other policyholders liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | 14,304.7  |   |   |   | 14,085.4 |   |
| Broker-dealer related payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | 595.1     |   |   |   | 950.3 |   |
| Customers related payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | 2,722.2   |   |   |   | 3,980.7 |   |
| Amounts due to reinsurers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 1,119.5   |   |   |   | 1,070.8 |   |
| Short-term and long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 982.0     |   |   |   | 783.0 |   |
| Loans from affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | 325.0     |   |   |   | 325.0 |   |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 3,398.9   |   |   |   | 2,971.8 |   |
| Other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 1,963.2   |   |   |   | 1,818.2 |   |
| Separate Accounts’ liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          | 96,539.6  |   |   |   | 84,801.6 |   |
| Minority interest in equity of consolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | 2,478.9   |   |   |   | 2,289.9 |   |
| Minority interest subject to redemption rights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | 142.7     |   |   |   | 288.0 |   |
| Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 149,740.0 |   |   |   | 139,803.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |      |   |   |   |   |   |
| Commitments and contingent liabilities (Notes 2, 5, 9, 18 and                            19)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |      |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |      |   |   |   |   |   |
| SHAREHOLDER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |      |   |   |   |   |   |
| Common stock, $1.25 par value, 2.0 million shares                                authorized,issued and                                outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 2.5       |   |   |   | 2.5 |   |
| Capital in excess of par value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | 5,265.4   |   |   |   | 5,139.6 |   |
| Retained earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 5,186.0   |   |   |   | 4,507.6 |   |
| Accumulated other comprehensive loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | (267.9    | )      |   |   | (167.3 | ) |
| Total shareholder’s equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 10,186.0  |   |   |   | 9,482.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |      |   |   |   |   |   |
| Total Liabilities and Shareholder’s Equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $             | 159,926.0 |   |   | $      | 149,286.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |      |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2007          |     |   | 2006   |   |     | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (In Millions) |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |   |   |     |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |   |   |     |   |   |
| Universal life                                and investment-type product policy fee income                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $             | 2,741.7  |   |   | $      | 2,252.7  |   |   | $ | 1,889.3 |   |
| Premiums                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 804.9    |   |   |   | 817.8    |   |   |   | 881.7 |   |
| Net investment income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 2,695.0  |   |   |   | 2,389.2  |   |   |   | 2,481.8 |   |
| Investment (losses) gains, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | (7.2     | )      |   |   | 46.9     |   |   |   | 55.4 |   |
| Commissions, fees and other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | 5,174.0  |   |   |   | 4,373.0  |   |   |   | 3,626.2 |   |
| Total revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | 11,408.4 |   |   |   | 9,879.6  |   |   |   | 8,934.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |   |   |     |   |   |   |   |   |
| BENEFITS AND OTHER DEDUCTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |     |   |   |   |     |   |   |   |   |   |
| Policyholders’                            benefits                                                                                         |   |          | 1,998.5  |   |   |   | 1,960.5  |   |   |   | 1,859.8 |   |
| Interest credited to policyholders’ account balances                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 1,065.2  |   |   |   | 1,082.5  |   |   |   | 1,065.5 |   |
| Compensation and                            benefits                                                                                             |   |          | 2,453.2  |   |   |   | 2,090.4  |   |   |   | 1,802.9 |   |
| Commissions                                                                                                                                      |   |          | 1,744.2  |   |   |   | 1,394.4  |   |   |   | 1,128.7 |   |
| Distribution plan                            payments                                                                                            |   |          | 335.1    |   |   |   | 292.9    |   |   |   | 292.0 |   |
| Amortization of deferred sales                            commissions                                                                            |   |          | 95.5     |   |   |   | 100.4    |   |   |   | 132.0 |   |
| Interest                            expense                                                                                                      |   |          | 72.0     |   |   |   | 70.4     |   |   |   | 76.3 |   |
| Amortization of deferred policy acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 1,099.2  |   |   |   | 689.3    |   |   |   | 601.3 |   |
| Capitalization of deferred policy acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | (1,719.3 | )      |   |   | (1,363.4 | )      |   |   | (1,199.4 | ) |
| Rent                            expense                                                                                                          |   |          | 224.3    |   |   |   | 204.1    |   |   |   | 165.2 |   |
| Amortization of other intangible                            assets                                                                               |   |          | 23.2     |   |   |   | 23.6     |   |   |   | 23.5 |   |
| Other operating costs and                            expenses                                                                                    |   |          | 1,334.5  |   |   |   | 1,262.6  |   |   |   | 952.4 |   |
| Total benefits and other                            deductions                                                                                                                      |   |          | 8,725.6  |   |   |   | 7,807.7  |   |   |   | 6,900.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |   |   |     |   |   |   |   |   |
| Earnings from continuing operations before                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |     |   |   |   |     |   |   |   |   |   |
| income taxes and minority                            interest                                                                                              |   |          | 2,682.8  |   |   |   | 2,071.9  |   |   |   | 2,034.2 |   |
| Income                            taxes                                                                                                          |   |          | (759.8   | )      |   |   | (424.5   | )      |   |   | (515.8 | ) |
| Minority interest in net income of consolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | (686.3   | )      |   |   | (599.9   | )      |   |   | (466.9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |   |   |     |   |   |   |   |   |
| Earnings from continuing                            operations                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 1,236.7  |   |   |   | 1,047.5  |   |   |   | 1,051.5 |   |
| (Losses) earnings from discontinued operations,net of income                                taxes                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          | (5.9     | )      |   |   | 31.2     |   |   |   | 22.3 |   |
| Gains (losses) on disposal of discontinued                                operations,net of income                                taxes                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | 2.8      |   |   |   | (1.9     | )      |   |   | - |   |
| Net Earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $             | 1,233.6  |   |   | $      | 1,076.8  |   |   | $ | 1,073.8 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2007          |     |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|--------|--------|---------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (In Millions) |     |
| SHAREHOLDER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |     |
| Common stock, at par value, beginning and end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $             | 2.5      |   |   | $      | 2.5     |   |   | $ | 2.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |   |   |    |   |   |   |   |   |
| Capital in excess of par value, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 5,139.6  |   |   |   | 4,976.3 |   |   |   | 4,890.9 |   |
| Changes in capital in excess of par value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | 125.8    |   |   |   | 163.3   |   |   |   | 85.4 |   |
| Capital in excess of par value, end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 5,265.4  |   |   |   | 5,139.6 |   |   |   | 4,976.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |   |   |    |   |   |   |   |   |
| Retained earnings, beginning of                            year                                                                                 |   |          | 4,507.6  |   |   |   | 4,030.8 |   |   |   | 3,457.0 |   |
| Cumulative effect adjustment to adopt FIN 48                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 44.8     |   |   |   | -       |   |   |   | - |   |
| Retained earnings, beginning of year as adjusted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 4,552.4  |   |   |   | 4,030.8 |   |   |   | 3,457.0 |   |
| Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 1,233.6  |   |   |   | 1,076.8 |   |   |   | 1,073.8 |   |
| Dividends on common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          | (600.0   | )      |   |   | (600.0  | )      |   |   | (500.0 | ) |
| Retained earnings, end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | 5,186.0  |   |   |   | 4,507.6 |   |   |   | 4,030.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |   |   |    |   |   |   |   |   |
| Accumulated other comprehensive (loss)                                income,beginning of                                year                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | (167.3   | )      |   |   | 432.3   |   |   |   | 874.1 |   |
| Other comprehensive                            loss                                                                                             |   |          | (100.6   | )      |   |   | (150.1  | )      |   |   | (441.8 | ) |
| Adjustment to initially apply SFAS No.158, net of income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          | -        |   |   |   | (449.5  | )      |   |   | - |   |
| Accumulated other comprehensive (loss) income, end of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | (267.9   | )      |   |   | (167.3  | )      |   |   | 432.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |     |   |   |   |    |   |   |   |   |   |
| Total Shareholder’s Equity, End of Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $             | 10,186.0 |   |   | $      | 9,482.4 |   |   | $ | 9,441.9 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |  2007    |    |   | 2006   |   |    |  2005 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------|--------|---------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (In Millions) |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |   |   |    |       |   |
| COMPREHENSIVE INCOME                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |   |   |    |       |   |
| Net                            earnings                                                                                      |   | $             | 1,233.6 |   |   | $      | 1,076.8 |       |   | $ | 1,073.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |   |   |    |       |   |   |   |   |
| Change in unrealized losses, net of                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |    |   |   |   |    |       |   |   |   |   |
| reclassification                            adjustment                                                                                      |   |          | (178.6  | )      |   |   | (150.1  | )          |   |   | (441.8 | ) |
| Defined benefit plans:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |    |   |   |   |    |       |   |   |   |   |
| Net gain arising during                            year                                                                                     |   |          | 38.8    |   |   |   | -       |       |   |   | - |   |
| Prior service cost arising during                            year                                                                           |   |          | 1.7     |   |   |   | -       |       |   |   | - |   |
| Less: reclassification adjustment for:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |    |   |   |   |    |       |   |   |   |   |
| Amortization of net losses included in net periodic cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | 41.2    |   |   |   | -       |       |   |   | - |   |
| Amortization of net prior service credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |    |   |   |   |    |       |   |   |   |   |
| included in net periodic cost                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | (3.6    | )      |   |   | -       |       |   |   | - |   |
| Amortization of net transition asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | (.1     | )      |   |   | -       |       |   |   | - |   |
| Other comprehensive income – defined benefit plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | 78.0    |   |   |   | -       |       |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |   |   |    |       |   |   |   |   |
| Other comprehensive loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | (100.6  | )      |   |   | (150.1  | )          |   |   | (441.8 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |   |   |    |       |   |   |   |   |
| Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $             | 1,133.0 |   |   | $      | 926.7   |       |   | $ | 632.0 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2007          |     |   | 2006   |   |     | 2005   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (In Millions) |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |     |
| Net                            earnings                                                                                               |   | $             | 1,233.6  |   |   | $      | 1,076.8  |   |   | $ | 1,073.8 |   |
| Adjustments to reconcile net earnings to net cash provided                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |     |   |   |   |     |   |   |   |   |   |
| by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |     |   |   |   |     |   |   |   |   |   |
| Interest credited to policyholders’ account balances                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 1,065.2  |   |   |   | 1,082.5  |   |   |   | 1,065.5 |   |
| Universal life and investment-type                                productpolicy                                fee income                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | (2,741.7 | )      |   |   | (2,252.7 | )      |   |   | (1,889.3 | ) |
| Net change in broker-dealer and customer                                 relatedreceivables/payables                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 98.5     |   |   |   | 117.2    |   |   |   | (347.4 | ) |
| Investment losses (gains),                            net                                                                                       |   |          | 7.2      |   |   |   | (46.9    | )      |   |   | (55.4 | ) |
| Change in deferred policy acquisition                            costs                                                                          |   |          | (620.1   | )      |   |   | (674.1   | )      |   |   | (598.1 | ) |
| Change in future policy                            benefits                                                                                     |   |          | 95.4     |   |   |   | 52.7     |   |   |   | 64.4 |   |
| Change in income taxes                            payable                                                                                       |   |          | 532.9    |   |   |   | 425.9    |   |   |   | 340.5 |   |
| Change in accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 102.6    |   |   |   | 85.5     |   |   |   | 23.7 |   |
| Change in segregated cash and securities, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | (360.3   | )      |   |   | (245.0   | )      |   |   | (240.0 | ) |
| Minority interest in net income of consolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | 686.3    |   |   |   | 599.9    |   |   |   | 466.9 |   |
| Change in fair value of guaranteed minimum income benefit                                reinsurance contracts                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | (6.9     | )      |   |   | 14.8     |   |   |   | (42.6 | ) |
| Amortization of deferred sales commissions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 95.5     |   |   |   | 100.4    |   |   |   | 132.0 |   |
| Other depreciation and                            amortization                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 133.8    |   |   |   | 144.9    |   |   |   | 149.6 |   |
| Amortization of other intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | 23.2     |   |   |   | 23.6     |   |   |   | 23.6 |   |
| (Gains) losses on disposal of discontinued operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | (2.8     | )      |   |   | 1.9      |   |   |   | - |   |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | (5.0     | )      |   |   | 363.5    |   |   |   | (134.6 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |     |   |   |   |     |   |   |   |   |   |
| Net cash provided by operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 337.4    |   |   |   | 870.9    |   |   |   | 32.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |     |   |   |   |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |     |   |   |   |     |   |   |   |   |   |
| Maturities and repayments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 2,143.1  |   |   |   | 2,962.2  |   |   |   | 2,926.2 |   |
| Sales of investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 2,356.5  |   |   |   | 1,536.9  |   |   |   | 2,432.9 |   |
| Purchases of investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          | (3,525.3 | )      |   |   | (4,262.3 | )      |   |   | (5,869.1 | ) |
| Change in short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 107.0    |   |   |   | 65.6     |   |   |   | 13.8 |   |
| Decrease in loans to affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 400.0    |   |   |   | -        |   |   |   | - |   |
| Increase in loans to affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          | (650.0   | )      |   |   | -        |   |   |   | - |   |
| Change in capitalized software, leasehold improvements and EDP                            equipment                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | (205.0   | )      |   |   | (146.1   | )      |   |   | (101.2 | ) |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | (189.5   | )      |   |   | (390.4   | )      |   |   | (116.3 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |     |   |   |   |     |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 436.8    |   |   |   | (234.1   | )      |   |   | (713.7 | ) |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007          |     |   | 2006   |   |     | 2005   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | (In Millions) |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |   |   |     |   |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |     |   |   |   |     |   |   |
| Policyholders’ account balances:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |     |   |   |   |     |   |   |
| Deposits                                                                                                                                                         |   | $             | 4,102.1  |   |   | $      | 3,865.2  |   |   | $ | 3,816.8 |   |
| Withdrawals from and transfers to Separate Accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | (3,831.7 | )      |   |   | (3,569.1 | )      |   |   | (2,779.1 | ) |
| Net change in short-term                            financings                                                                                         |   |          | 199.0    |   |   |   | 327.7    |   |   |   | - |   |
| Repayments of long-term                            debt                                                                                                |   |          | -        |   |   |   | (400.0   | )      |   |   | (400.0 | ) |
| Proceeds in loans from                            affiliates                                                                                           |   |          | -        |   |   |   | -        |   |   |   | 325.0 |   |
| Shareholder dividends                            paid                                                                                                  |   |          | (600.0   | )      |   |   | (600.0   | )      |   |   | (500.0 | ) |
| Other,                            net                                                                                                                  |   |          | (592.6   | )      |   |   | (206.5   | )      |   |   | (417.3 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |   |   |     |   |   |   |   |   |
| Net cash (used in) provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          | (723.2   | )      |   |   | (582.7   | )      |   |   | 45.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |   |   |     |   |   |   |   |   |
| Change in cash and cash                            equivalents                                                                               |   |          | 51.0     |   |   |   | 54.1     |   |   |   | (635.7 | ) |
| Cash and cash equivalents, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | 1,122.2  |   |   |   | 1,068.1  |   |   |   | 1,703.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |   |   |     |   |   |   |   |   |
| Cash and Cash Equivalents, End of                            Year                                                                            |   | $             | 1,173.2  |   |   | $      | 1,122.2  |   |   | $ | 1,068.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |     |   |   |   |     |   |   |   |   |   |
| Supplemental cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          |     |   |   |   |     |   |   |   |   |   |
| Interest                            Paid                                                                                                               |   | $             | 52.6     |   |   | $      | 59.9     |   |   | $ | 74.5 |   |
| Income Taxes Paid (Refunded)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $             | 178.1    |   |   | $      | (40.8    | )      |   | $ | 146.5 |   |

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|  | 1)    | ORGANIZATION |
|--|----------------------|--------------|

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----

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| ·                                 | The acquirer will recognize 100% of the fair values of acquired assets                            and assumed liabilities (with few exceptions) upon initially obtaining                            control even if it has not acquired 100% of the target company, |
|--------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·                                 | Contingent considerations will be included in the purchase price                            consideration on a fair value basis while transaction costs will be                            expensed as incurred, and |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | The requirements in SFAS No. 146, “Accounting for Costs                            Associated with Exit or Disposal Activities,” must be met at the                            acquisition date in order to accrue for a restructuring plan. |
|--------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Recharacterize minority interests, currently classified within                            liabilities, as noncontrolling interests to be reported as a component                            of consolidated equity on the balance sheet, |
|--------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Include total income in net income, with separate disclosure on the                            face of the consolidated income statement of the attribution of income                            between controlling and noncontrolling interests, and |
|--------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·                                 | Account for increases and decreases in noncontrolling interests as                            equity transactions with any difference between proceeds of a purchase                            or issuance of noncontrolling interests being accounted for as a change                            to the controlling entity’s equity instead of as current period                            gains/losses in the consolidated income statement.  Only when                            the controlling entity loses control and deconsolidates a subsidiary                            will a gain or loss be recognized. |
|--------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  | · | Management having                            the authority to approve the action commits the organization to a plan                            to sell the property.                                                       |  |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
|  | · | The                        property is available for immediate sale in its present condition subject                        only to terms that are usual and customary for the sale of such                        assets. |  |
|  | · | An                        active program to locate a buyer and other actions required to complete the                        plan to sell the asset have been initiated and are continuing.                                |  |
|  | · | The sale of the asset is probable and transfer of the asset is                                expected to qualify for recognition as a completed sale within one                                year.                      |  |
|  | · | The asset is being actively marketed for sale at a price that is                                reasonable in relation to its current fair value.                                                                          |  |
|  | · | Actions required to complete the plan indicate that it is unlikely                                that significant changes to the plan will be made or that the plan                                will be withdrawn.     |  |

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|                                                                                                                                                                                                                                                                                                     |   | Amortized                            Cost |     |   | Gross                            Unrealized                            Gains |   |   | Gross                    Unrealized                    Losses |   |   | Estimated                            Fair Value |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------|----------|--------|------------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|-------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                     |   |  (In Millions)                       |     |
|                                                                                                                                                                                                                                                                                                     |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |
| December 31,                            2007                                                                                                                                                                                                                                                             |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |
| Fixed Maturities:                                                                                                                                                                                                                                                                                        |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |
| Available for Sale:                                                                                                                                                                                                                                                                                      |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |
| Corporate                                                                                                       |   | $                                         | 22,340.2 |   |                                                                         | $      | 623.7  |                                                          |   | $      | 539.6                                           |   |   | $ | 22,424.3 |   |
| Mortgage-backed                                                                                                 |   |                                      | 1,215.4  |   |                                                                         |   | 3.9    |                                                          |   |   | 15.9                                            |   |   |   | 1,203.4 |   |
| U.S. Treasury,                                governmentand agency                                securities                                                                                                                                                                                             |   |                                      | 1,320.6  |   |                                                                         |   | 63.2   |                                                          |   |   | 1.1                                             |   |   |   | 1,382.7 |   |
| States and politicalsubdivisions                                                                                                                                                                                                                                                                    |   |                                      | 169.8    |   |                                                                         |   | 16.7   |                                                          |   |   | .6                                              |   |   |   | 185.9 |   |
| Foreign governments                                                                                                                                                                                                                                                                                      |   |                                      | 237.0    |   |                                                                         |   | 41.9   |                                                          |   |   | -                                               |   |   |   | 278.9 |   |
| Redeemable preferred stock                                                                                                                                                                                                                                                                               |   |                                      | 1,730.7  |   |                                                                         |   | 51.3   |                                                          |   |   | 97.7                                            |   |   |   | 1,684.3 |   |
| Total Available for Sale                                                                                                                                                                                                                                                                                 |   | $                                         | 27,013.7 |   |                                                                         | $      | 800.7  |                                                          |   | $      | 654.9                                           |   |   | $ | 27,159.5 |   |
|                                                                                                                                                                                                                                                                                                     |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| Equity Securities:                                                                                                                                                                                                                                                                                       |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| Available for                            sale                                                         |   | $                                         | 25.1     |   |                                                                         | $      | .8     |                                                          |   | $      | .1                                              |   |   | $ | 25.8 |   |
| Trading                            securities                                                         |   |                                      | 482.2    |   |                                                                         |   | 8.7    |                                                          |   |   | 23.8                                            |   |   |   | 467.1 |   |
| Total Equity                            Securities                                          |   | $                                         | 507.3    |   |                                                                         | $      | 9.5    |                                                          |   | $      | 23.9                                            |   |   | $ | 492.9 |   |
|                                                                                                                                                                                                                                                                                                     |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| December 31,                            2006                                                                                                                                                                                                                                                             |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| Fixed Maturities:                                                                                                                                                                                                                                                                                        |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| Available for Sale:                                                                                                                                                                                                                                                                                      |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| Corporate                                                                                                       |   | $                                         | 23,023.3 |   |                                                                         | $      | 690.4  |                                                          |   | $      | 264.5                                           |   |   | $ | 23,449.2 |   |
| Mortgage-backed                                                                                                                                                                                                                                                                                     |   |                                      | 1,931.1  |   |                                                                         |   | 2.7    |                                                          |   |   | 38.3                                            |   |   |   | 1,895.5 |   |
| U.S. Treasury, governmentand agency                                securities                                                                                                                                                                                                                            |   |                                      | 1,284.3  |   |                                                                         |   | 29.9   |                                                          |   |   | 10.4                                            |   |   |   | 1,303.8 |   |
| States and politicalsubdivisions                                                                                                                                                                                                                                                                    |   |                                      | 170.2    |   |                                                                         |   | 17.3   |                                                          |   |   | .9                                              |   |   |   | 186.6 |   |
| Foreign governments                                                                                                                                                                                                                                                                                      |   |                                      | 219.2    |   |                                                                         |   | 38.1   |                                                          |   |   | .3                                              |   |   |   | 257.0 |   |
| Redeemable preferred stock                                                                                                                                                                                                                                                                               |   |                                      | 1,879.8  |   |                                                                         |   | 78.8   |                                                          |   |   | 19.6                                            |   |   |   | 1,939.0 |   |
| Total Available for Sale                                                                                                                                                                                                                                                                                 |   | $                                         | 28,507.9 |   |                                                                         | $      | 857.2  |                                                          |   | $      | 334.0                                           |   |   | $ | 29,031.1 |   |
|                                                                                                                                                                                                                                                                                                     |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| Equity Securities:                                                                                                                                                                                                                                                                                       |   |                                      |     |   |                                                                         |   |   |                                                          |   |   |                                            |   |   |   |   |   |
| Available for                            sale                                                         |   | $                                         | 95.7     |   |                                                                         | $      | 2.2    |                                                          |   | $      | .9                                              |   |   | $ | 97.0 |   |
| Trading                            securities                                                         |   |                                      | 408.0    |   |                                                                         |   | 35.4   |                                                          |   |   | 9.9                                             |   |   |   | 433.5 |   |
| Total Equity                            Securities                                          |   | $                                         | 503.7    |   |                                                                         | $      | 37.6   |                                                          |   | $      | 10.8                                            |   |   | $ | 530.5 |   |

----

| The contractual maturity of bonds at December 31, 2007 is shown                            below: |   |
|---------------------------------------------------------------------------------------------------|--------|
|                                                                                              |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Available for Sale |         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Amortized          |         | Estimated |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Cost               |         | Fair Value |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (In Millions)      |         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |               |         |
| Due in one year or less                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |               | $            | 783.5 |   |   | $ | 789.8 |   |
| Due in years two through five                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |               |         | 7,393.4 |   |   |   | 7,668.3 |   |
| Due in years six through ten                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |               |         | 8,928.7 |   |   |   | 8,855.0 |   |
| Due after ten years                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |               |         | 6,962.0 |   |   |   | 6,958.7 |   |
| Subtotal                                                                                                                                                                                                                                                                                                                                                                 |               |         | 24,067.6 |   |   |   | 24,271.8 |   |
| Mortgage-backed securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |               |    | 1,215.4 |   |   |   | 1,203.4 |   |
| Total                                                                                      |               | $            | 25,283.0 |   |   | $ | 25,475.2 |   |

|                                            |   | Less than 12 Months |    |   | 12 Months or Longer |   |   | Total      |   |
|-------------------------------------------------|--------|---------------------|---------|--------|---------------------|--------|--------|------------|--------|
|                                            |   |                |    |   | Gross               |   |   |       |   |   | Gross |   |   |   |   |   | Gross |   |
|                                            |   | Estimated           |    |   | Unrealized          |   |   | Estimated  |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
|                                            |   | Fair Value          |    |   | Losses              |   |   | Fair Value |   |   | Losses |   |   | Fair Value |   |   | Losses |   |
|                                            |   | (In Millions)       |    |
|                                            |   |                |    |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Fixed Maturities:                               |   |                |    |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Corporate                                       |   | $                   | 4,424.5 |   |                | $      | 286.4  |       |   | $ | 4,786.7 |   |   | $ | 253.2 |   |   | $ | 9,211.2 |   |   | $ | 539.6 |   |
| Mortgage-backed                                 |   |                | 29.1    |   |                |   | .1     |       |   |   | 967.9 |   |   |   | 15.8 |   |   |   | 997.0 |   |   |   | 15.9 |   |
| U.S. Treasury, government and agency securities |   |                | 105.6   |   |                |   | .3     |       |   |   | 127.2 |   |   |   | .8 |   |   |   | 232.8 |   |   |   | 1.1 |   |
| States and political subdivisions               |   |                | -       |   |                |   | -      |       |   |   | 22.6 |   |   |   | .6 |   |   |   | 22.6 |   |   |   | .6 |   |
| Foreign governments                             |   |                | 2.0     |   |                |   | -      |       |   |   | 5.0 |   |   |   | - |   |   |   | 7.0 |   |   |   | - |   |
| Redeemable preferred stock                      |   |                | 510.2   |   |                |   | 47.7   |       |   |   | 528.8 |   |   |   | 50.0 |   |   |   | 1,039.0 |   |   |   | 97.7 |   |
|                                            |   |                |    |   |                |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Temporarily Impaired Securities           |   | $                   | 5,071.4 |   |                | $      | 334.5  |       |   | $ | 6,438.2 |   |   | $ | 320.4 |   |   | $ | 11,509.6 |   |   | $ | 654.9 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | December 31,  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2007          |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |          |   |
| Impaired mortgage loans with investment valuation allowances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |          | $      | 11.4 |   |   | $ | 76.8 |   |
| Impaired mortgage loans without investment valuation allowances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |   | - |   |   |   | .1 |   |
| Recorded investment in impaired mortgage loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |          |   | 11.4 |   |   |   | 76.9 |   |
| Investment valuation                            allowances                                                                                  |          |   | (1.4 | ) |   |   | (11.3 | ) |
| Net Impaired Mortgage                            Loans                                                                                      |          | $      | 10.0 |   |   | $ | 65.6 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |   |
| Balances, beginning of                            year                                                               |   | $             | 21.0   |   |   | $      | 11.8   |   |   | $ | 11.3 |   |
| Additions charged to                            income                                                               |   |          | 20.9   |   |   |   | 10.1   |   |   |   | 3.6 |   |
| Deductions for writedowns and                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |   |   |   |   |   |   |   |   |   |
| asset                            dispositions                                                                                  |   |          | (40.5  | )      |   |   | (.9    | )      |   |   | (3.1 | ) |
| Balances, End of                            Year                                                                     |   | $             | 1.4    |   |   | $      | 21.0   |   |   | $ | 11.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |   |   |   |   |   |   |   |   |   |   |
| Balances, end of year comprise:                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans on real                            estate                                                                       |   | $             | 1.4    |   |   | $      | 11.3   |   |   | $ | 11.8 |   |
| Equity real                            estate                                                                                  |   |          | -      |   |   |   | 9.7    |   |   |   | - |   |
| Total                                                                                                                |   | $             | 1.4    |   |   | $      | 21.0   |   |   | $ | 11.8 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | December 31,  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007          |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |
| BALANCE SHEETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |   |   |   |
| Investments in real estate, at depreciated                            cost                                                                                      |   | $             | 391.3  |   |   | $ | 421.7 |   |
| Investments in securities, generally at estimated fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |          | 99.3   |   |   |   | 94.6 |   |
| Cash and cash                            equivalents                                                                                                            |   |          | 2.4    |   |   |   | 9.7 |   |
| Other                            assets                                                                                                                         |   |          | -      |   |   |   | 22.3 |   |
| Total                            Assets                                                                                                                         |   | $             | 493.0  |   |   | $ | 548.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |   |   |   |
| Borrowed funds - third                            party                                                                                                         |   | $             | 273.1  |   |   | $ | 278.1 |   |
| Other                            liabilities                                                                                                                    |   |          | 4.8    |   |   |   | 6.8 |   |
| Total                            liabilities                                                                                                                    |   |          | 277.9  |   |   |   | 284.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |   |   |   |
| Partners’                            capital                                                                                                              |   |          | 215.1  |   |   |   | 263.4 |   |
| Total Liabilities and Partners’                            Capital                                                                                        |   | $             | 493.0  |   |   | $ | 548.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |   |   |   |
| The Company’s Carrying Value in These Entities Included                            Above                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $             | 79.5   |   |   | $ | 78.7 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007          |       |   | 2006   |   |       | 2005    |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------|--------|------------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | (In Millions) |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |
| STATEMENTS OF EARNINGS                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |       |   |   |   |       |    |   |
| Revenues of real estate joint ventures                                                                                                                                                                                                                                                                                                                                                                                                              |   | $             | 77.5       |   |   | $      | 88.5       |    |   | $ | 98.2 |   |
| Net                    revenues of other limited partnership interests                                                                                                                                                                                                                                                                                                                                                                         |   |          |  15.3 |   |   |   |  (1.3 | )  |   |   |  6.3 |   |
| Interest expense – third                            party                                                               |   |          | (18.2      | )      |   |   | (18.5      | )       |   |   | (18.2 | ) |
| Other                            expenses                                                                                     |   |          | (43.8      | )      |   |   | (53.7      | )       |   |   | (62.2 | ) |
| Net                            Earnings                                                                                       |   | $             | 30.8       |   |   | $      | 15.0       |    |   | $ | 24.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |       |   |   |   |       |    |   |   |   |   |
| The Company's Equity in Net Earnings of These Entities Included                            Above                                                                                                                                                                                                                                                                                                                                                    |   | $             | 24.6       |   |   | $      | 14.4       |    |   | $ | 11.6 |   |

>                 Derivatives                             At                December 31, 2007, the Company had open exchange-traded futures positions on the                S&P 500, Russell 1000, NASDAQ 100 and Emerging Market indices, having initial                margin requirements of $189.9 million.  At December 31, 2007, the Company                had open exchange-traded futures positions on the 10-year U.S. Treasury Note,                having initial margin requirements of $12.3 million.  At that same date,                the Company had open exchange-trade future positions on the Euro Stoxx, FTSE 100,                European, Australasia, Far East (“EAFE”) and Topix indices as well as                corresponding currency futures on the Euro/U.S. dollar, Yen/U.S. dollar and                Pound/U.S. dollar, having initial margin requirements of $53.0                million.  All contracts are net cash settled daily.                             The                outstanding notional amounts of derivative financial instruments purchased and sold                at December 31, 2007 and 2006 were:

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | December 31,  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 2007          |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | (In Millions) |   |
| Notional Amount by Derivative Type:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |          |   |
| Options:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |          |   |   |   |   |   |
| Floors                                                                                                                       |          | $      | 27,000 |   |   | $ | 32,000 |   |
| Exchange traded U.S. Treasuries, and equity index futures                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |   | 6,241 |   |   |   | 3,536 |   |
| Interest rate                            swaps                                                                               |          |   | 125 |   |   |   | - |   |
| Total                                                                                                    |          | $      | 33,366 |   |   | $ | 35,536 |   |

> At                December 31, 2007 and 2006 and during the years then ended, no significant                financial instruments contained implicit or explicit terms that met the definitions                of an embedded derivative component that needed to be separated from the host                contract and accounted for as a derivative under the provisions of SFAS No.                133.

> 
The            carrying value of goodwill related to the AllianceBernstein totaled $3.4 billion at            December 31, 2007 and 2006.              The gross carrying amount of AllianceBernstein related intangible assets were $556.2            million and $563.7 million at December 31, 2007 and 2006, respectively and the            accumulated amortization of these intangible assets were $243.7 million and $232.1            million at December 31, 2007 and 2006, respectively.  Amortization expense            related to the AllianceBernstein intangible assets totaled $23.5 million, $23.6 million            and $23.5 million for 2007, 2006 and 2005, respectively.
At                December 31, 2007 and 2006, respectively, net deferred sales commissions totaled                $183.6 million and $194.9 million and are included within the Investment Management                segment’s Other assets.  The estimated amortization expense of                deferred sales commissions based on the December 31, 2007 net balance for each of                the next five years is $35.6 million, $29.9 million, $24.9 million, $20.2 million                and $16.7 million.

----

|                                                                                                                                                                                                                                                                                                                                          |   | December 31,  |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|
|                                                                                                                                                                                                                                                                                                                                          |   | 2007          |    |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                          |   | Carrying      |    |   | Estimated |   |   | Carrying |   |   | Estimated |   |
|                                                                                                                                                                                                                                                                                                                                          |   | Value         |    |   | Fair Value |   |   | Value |   |   | Fair Value |   |
|                                                                                                                                                                                                                                                                                                                                          |   | (In Millions) |    |
|                                                                                                                                                                                                                                                                                                                                          |   |          |    |
| Consolidated:                                                                                                                                                                                                                                                                                                                                 |   |          |    |   |   |   |   |   |   |   |   |   |
| Mortgage loans on real estate                                                                                                                                                                                                                                                                                                                 |   | $             | 3,730.6 |   |   | $ | 3,766.9 |   |   | $ | 3,240.7 |   |   | $ | 3,285.7 |   |
| Other limited partnership interests                                                                                                                                                                                                                                                                                                           |   |          | 1,607.9 |   |   |   | 1,607.9 |   |   |   | 1,260.1 |   |   |   | 1,260.1 |   |
| Policyholders liabilities:                                                                                                                                                                                                                                                                                                                    |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment                            contracts                                                              |   |          | 3,817.8 |   |   |   | 3,878.9 |   |   |   | 4,708.7 |   |   |   | 4,772.6 |   |
| Long-term                            debt                                                          |   |          | 199.8   |   |   |   | 224.6 |   |   |   | 199.8 |   |   |   | 229.7 |   |
|                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Closed Block:                                                                                                                                                                                                                                                                                                                                 |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans on real estate                                                                                                                                                                                                                                                                                                                 |   | $             | 1,099.3 |   |   | $ | 1,111.4 |   |   | $ | 809.4 |   |   | $ | 827.8 |   |
| Other equity                            investments                                                |   |          | 3.6     |   |   |   | 3.6 |   |   |   | 2.2 |   |   |   | 2.2 |   |
| SCNILC                            liability                                                        |   |          | 9.2     |   |   |   | 9.2 |   |   |   | 10.4 |   |   |   | 10.3 |   |
|                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Wind-up Annuities:                                                                                                                                                                                                                                                                                                                            |   |          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans on real estate                                                                                                                                                                                                                                                                                                                 |   | $             | 2.2     |   |   | $ | 2.3 |   |   | $ | 2.9 |   |   | $ | 3.0 |   |
| Other equity                            investments                                                |   |          | 1.6     |   |   |   | 1.6 |   |   |   | 2.3 |   |   |   | 2.3 |   |
| Guaranteed interest contracts                                                                                                                                                                                                                                                                                                                 |   |          | 5.5     |   |   |   | 5.8 |   |   |   | 5.8 |   |   |   | 6.0 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | December 31,  |    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007          |    |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | (In Millions) |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |   |   |
| CLOSED BLOCK LIABILITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |    |   |   |   |
| Future policy benefits, policyholders’ account balances and                            other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $             | 8,657.3 |   |   | $ | 8,759.5 |   |
| Policyholder dividend                            obligation                                                                                               |   |          | -       |   |   |   | 3.2 |   |
| Other                            liabilities                                                                                                              |   |          | 115.2   |   |   |   | 29.1 |   |
| Total Closed Block                            liabilities                                                                                                 |   |          | 8,772.5 |   |   |   | 8,791.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |   |   |   |   |
| ASSETS DESIGNATED TO THE CLOSED BLOCK:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |    |   |   |   |   |   |
| Fixed maturities, available for sale, at estimated fair value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |    |   |   |   |   |   |
| (amortized cost of $5,816.6 and                            $5,967.6)                                                                                                     |   |          | 5,825.6 |   |   |   | 6,019.4 |   |
| Mortgage loans on real                            estate                                                                                                  |   |          | 1,099.3 |   |   |   | 809.4 |   |
| Policy                            loans                                                                                                                   |   |          | 1,197.5 |   |   |   | 1,233.1 |   |
| Cash and other invested                            assets                                                                                                 |   |          | 4.7     |   |   |   | 6.8 |   |
| Other                            assets                                                                                                                   |   |          | 240.1   |   |   |   | 286.2 |   |
| Total assets designated to the Closed                            Block                                                                                    |   |          | 8,367.2 |   |   |   | 8,354.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |   |   |   |   |
| Excess of Closed Block liabilities over assets designated tothe Closed Block                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | 405.3   |   |   |   | 436.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |   |   |   |   |
| Amounts included in accumulated other comprehensive income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |    |   |   |   |   |   |
| Net unrealized investment gains, net of deferred income tax                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |    |   |   |   |   |   |
| expense of $3.2 and $17.0 and policyholder dividend                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |    |   |   |   |   |   |
| obligation of $0 and                            $3.2                                                                                                                                    |   |          | 5.9     |   |   |   | 31.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |   |   |   |   |
| Maximum Future Earnings To Be Recognized From Closed Block                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |          |    |   |   |   |   |   |
| Assets and                            Liabilities                                                                                                                        |   | $             | 411.2   |   |   | $ | 468.5 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |   |   |   |   |   |   |   |
| REVENUES:                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |   |   |   |   |   |   |
| Premiums and other                            income                                                                                   |   | $             | 409.6  |   |   | $      | 428.1  |   |   | $ | 449.3 |   |
| Investment                                income (net of investment expenses of $.2, $.1, and $0)                                                                                                                                                                                                                                                                                                                                                                      |   |          | 501.8  |   |   |   | 520.2  |   |   |   | 525.9 |   |
| Investment gains,                            net                                                                                       |   |          | 7.9    |   |   |   | 1.7    |   |   |   | 1.2 |   |
| Total                            revenues                                                                                              |   |          | 919.3  |   |   |   | 950.0  |   |   |   | 976.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |   |   |   |   |   |   |   |   |   |   |
| BENEFITS AND OTHER DEDUCTIONS:                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |   |   |   |   |   |   |   |   |   |   |
| Policyholders’ benefits and                            dividends                                                                 |   |          | 828.2  |   |   |   | 852.2  |   |   |   | 842.5 |   |
| Other operating costs and                            expenses                                                                          |   |          | 2.7    |   |   |   | 3.0    |   |   |   | 3.4 |   |
| Total benefits and other                            deductions                                                                         |   |          | 830.9  |   |   |   | 855.2  |   |   |   | 845.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |   |   |   |   |   |   |   |   |   |   |
| Net revenues before income                            taxes                                                                            |   |          | 88.4   |   |   |   | 94.8   |   |   |   | 130.5 |   |
| Income tax                            expense                                                                                          |   |          | (31.0  | )      |   |   | (31.1  | )      |   |   | (45.6 | ) |
| Net                            Revenues                                                                                                |   | $             | 57.4   |   |   | $      | 63.7   |   |   | $ | 84.9 |   |

----

|                                            | December 31,  |   |
|-------------------------------------------------|---------------|--------|
|                                            | 2007          |   | 2006 |   |
|                                            | (In Millions) |   |
|                                            |          |   |
| Balance                    at beginning of year |          | $      | 3.2 |   |   | $ | 73.7 |   |
| Increase in unrealized investment losses        |          |   | (3.2 | ) |   |   | (70.5 | ) |
| Balance at End of Year                     |          | $      | - |   |   | $ | 3.2 |   |

|                                                            |   | December 31,  |   |
|-----------------------------------------------------------------|--------|---------------|--------|
|                                                            |   | 2006          |   |
|                                                            |   | (In Millions) |   |
|                                                            |   |          |   |
| Impaired mortgage loans with investment valuation allowances    |   | $             | 17.8   |   |
| Impaired mortgage loans without investment valuation allowances |   |          | .1     |   |
| Recorded investment in impaired mortgage loans             |   |          | 17.9   |   |
| Investment valuation allowances                                 |   |          | (7.3   | ) |
| Net Impaired Mortgage Loans                                     |   | $             | 10.6   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | December 31,  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 2007          |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |          |   |
| Balance, beginning of                            year                                                                                      |          | $      | 650.7 |   |   | $ | 555.0 |   |
| Contractholder bonus interest credits deferred                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |   | 174.7 |   |   |   | 155.4 |   |
| Amortization charged to income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |   | (71.2 | ) |   |   | (59.7 | ) |
| Balance, End of                            Year                                                                                                                                                                                                                                                                                                                             |          | $      | 754.2 |   |   | $ | 650.7 |   |

----

|  | ·   | Return of Premium: the benefit is the greater of current account value                            or premiums paid (adjusted for withdrawals); |
|--|----------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Ratchet: the benefit is the greatest of current account value, premiums                            paid (adjusted for withdrawals), or the highest account value on any                            anniversary up to contractually specified ages (adjusted for                            withdrawals); |
|----------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Roll-Up: the benefit is the greater of current account value or                            premiums paid (adjusted for withdrawals) accumulated at contractually                            specified interest rates up to specified ages; or |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Combo: the benefit is the greater of the ratchet benefit or the roll-up                            benefit which may include a five year or annual reset. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | GMDB          |   |   | GMIB   |   |   | Total   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |
| Balance at January 1, 2005                                                                                                                                                                                                                                                                                                                                                                                                  |   | $             | 67.6   |   |   | $      | 117.6  |    |   | $ | 185.2 |   |
| Paid guarantee benefits                                                                                                                                                                                                                                                                                                                                                                                                     |   |          | (39.6  | )      |   |   | (2.2   | )  |   |   | (41.8 | ) |
| Other changes in                            reserve                                                             |   |          | 87.2   |   |   |   | 58.2   |    |   |   | 145.4 |   |
| Balance at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 115.2  |   |   |   | 173.6  |    |   |   | 288.8 |   |
| Paid guarantee benefits                                                                                                                                                                                                                                                                                                                                                                                                |   |          | (31.6  | )      |   |   | (3.3   | )       |   |   | (34.9 | ) |
| Other changes in reserve                                                                                                                                                                                                                                                                                                                                                                                                    |   |          | 80.1   |   |   |   | 58.0   |    |   |   | 138.1 |   |
| Balance at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 163.7  |   |   |   | 228.3  |    |   |   | 392.0 |   |
| Paid guarantee benefits                                                                                                                                                                                                                                                                                                                                                                                                |   |          | (30.6  | )      |   |   | (2.7   | )       |   |   | (33.3 | ) |
| Other changes in reserve                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 120.0  |   |   |   | 84.3   |    |   |   | 204.3 |   |
| Balance at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                |   | $             | 253.1  |   |   | $      | 309.9  |    |   | $ | 563.0 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | GMDB   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |
| Balance at January 1,                            2005                                                                 |   | $      | 10.3   |   |
| Paid guarantee                            benefits                                                                              |   |   | (12.1  | ) |
| Other changes in                            reserve                                                                             |   |   | 24.5   |   |
| Balance at December 31,                            2005                                                               |   |   | 22.7   |   |
| Paid guarantee                            benefits                                                                              |   |   | (9.1   | ) |
| Other changes in                            reserve                                                                             |   |   | 10.0   |   |
| Balance at December 31,                            2006                                                               |   |   | 23.6   |   |
| Paid guarantee                            benefits                                                                              |   |   | (7.6   | ) |
| Other changes in                            reserve                                                                             |   |   | 11.5   |   |
| Balance at December 31,                            2007                                                               |   | $      | 27.5   |   |

----

|                                                                                                                                                                                                                                                                                                                         |   | Return                    of                    Premium |   |   | Ratchet |   |   | Roll-Up |   |   | Combo                     |   |   | Total  |                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|--------|---------------------------|--------|--------|--------|-----------------------------|
|                                                                                                                                                                                                                                                                                                                         |   |                      (Dollars In Millions)         |
|                                                                                                                                                                                                                                                                                                                         |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |
| GMDB:                                                                                                                                                                                                                                                                                                                        |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |
| Account values invested in:                                                                                                                                                                                                                                                                                                  |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |
| General                            Account                                                                           |   | $                                                       | 10,563 |   |    | $      | 375    |    |   | $      | 310                       |   |   | $      | 747                         |   |   | $ | 11,995 |   |
| Separate                            Accounts                                                                         |   | $                                                       | 28,826 |   |    | $      | 8,493  |    |   | $      | 7,279                     |   |   | $      | 31,078                      |   |   | $ | 75,676 |   |
| Net amount at risk,                            gross                                             |   | $                                                       | 234    |   |    | $      | 234    |    |   | $      | 1,404                     |   |   | $      | 557                         |   |   | $ | 2,429 |   |
| Net amount at risk, net of                                                                                                                                                                                                                                                                                                   |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| amounts                            reinsured                                                                         |   | $                                                       | 234    |   |    | $      | 183    |    |   | $      | 853                       |   |   | $      | 557                         |   |   | $ | 1,827 |   |
| Average attained age of                                                                                                                                                                                                                                                                                                      |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| contractholders                                                                                                      |   |                                                    | 49.3   |   |    |   | 61.5   |    |   |   | 65.3                      |   |   |   | 61.6                        |   |   |   | 52.8 |   |
| Percentage of contractholders                                                                                                                                                                                                                                                                                                |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| over age                            70                                                                          |   |                                                    | 7.3    | %      |    |   | 23.5   | %       |   |   | 37.1                      | %      |   |   | 21.6                        | % |   |   | 12.1 | % |
| Range of contractually specified                                                                                                                                                                                                                                                                                             |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| interest rates                                                                                                                                                                                                                                                                                                          |   |                                                    | N/A    |   |    |   | N/A    |    |   |   | 3%-6                      | %      |   |   | 3%                    - 6.5 | % |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                         |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| GMIB:                                                                                                                                                                                                                                                                                                                        |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| Account values invested in:                                                                                                                                                                                                                                                                                                  |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| General                            Account                                                                           |   |                                                    | N/A    |   |    |   | N/A    |    |   | $      | 70                        |   |   | $      | 989                         |   |   | $ | 1,059 |   |
| Separate                            Accounts                                                                         |   |                                                    | N/A    |   |    |   | N/A    |    |   | $      | 4,640                     |   |   | $      | 41,712                      |   |   | $ | 46,352 |   |
| Net amount at risk,                            gross                                             |   |                                                    | N/A    |   |    |   | N/A    |    |   | $      | 274                       |   |   | $      | -                           |   |   | $ | 274 |   |
| Net amount at risk, net of                                                                                                                                                                                                                                                                                                   |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| amounts                            reinsured                                                                         |   |                                                    | N/A    |   |    |   | N/A    |    |   | $      | 71                        |   |   | $      | -                           |   |   | $ | 71 |   |
| Weighted average years remaining                                                                                                                                                                                                                                                                                             |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| until earliest annuitization                                                                                                                                                                                                                                                                                                 |   |                                                    | N/A    |   |    |   | N/A    |    |   |   | 2.0                       |   |   |   | 8.1                         |   |   |   | 7.4 |   |
| Range of contractually specified                                                                                                                                                                                                                                                                                             |   |                                                    |   |   |    |   |   |    |   |   |                      |   |   |   |                        |   |   |   |   |   |
| interest rates                                                                                                                                                                                                                                                                                                          |   |                                                    | N/A    |   |    |   | N/A    |    |   |   | 3%                    - 6 | %      |   |   | 3%                    - 6.5 | % |   |   |   |   |

----

| Investment in Variable Insurance Trust Mutual Funds |   |
|-----------------------------------------------------|--------|
|                                                |   |   |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | December 31,  |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2007          |   | 2006         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |   |
| GMDB:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |         |   |   |
| Equity                                                                                                                     |   | $             | 48,587 |         |   | $ | 42,885 |   |
| Fixed                            income                                                                                    |   |          | 4,392  |         |   |   | 4,438 |   |
| Balanced                                                                                                                   |   |          | 20,546 |         |   |   | 14,863 |   |
| Other                                                                                                                      |   |          | 2,151  |         |   |   | 2,121 |   |
| Total                                                                                                                      |   | $             | 75,676 |         |   | $ | 64,307 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |   |         |   |   |   |   |
| GMIB:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |         |   |   |   |   |
| Equity                                                                                                                     |   | $             | 27,831 |         |   | $ | 22,828 |   |
| Fixed                            income                                                                                    |   |          | 2,687  |         |   |   | 2,727 |   |
| Balanced                                                                                                                   |   |          | 14,816 |         |   |   | 10,439 |   |
| Other                                                                                                                      |   |          | 1,018  |         |   |   | 990 |   |
| Total                                                                                                                      |   | $             | 46,352 |         |   | $ | 36,984 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Direct Liability |   |   | Reinsurance Ceded |   |   | Net |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|-------------------|--------|--------|-----|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (In Millions)    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |             |   |
| Balance at January 1,                            2005                                                                 |   | $                | 20.5   |   |              | $      | (6.1   | )   |   | $ | 14.4 |   |
| Other changes in                            reserve                                                                             |   |             | 14.3   |   |              |   | (14.3  | )   |   |   | - |   |
| Balance at December 31,                            2005                                                               |   |             | 34.8   |   |              |   | (20.4  | )   |   |   | 14.4 |   |
| Other changes in                            reserve                                                                                  |   |             | 32.0   |   |              |   | (27.5  | )   |   |   | 4.5 |   |
| Balance at December 31,                            2006                                                               |   |             | 66.8   |   |              |   | (47.9  | )   |   |   | 18.9 |   |
| Other changes in                            reserve                                                                   |   |             | 68.2   |   |              |   | (59.7  | )   |   |   | 8.5 |   |
| Balance at December 31,                            2007                                                               |   | $                | 135.0  |   |              | $      | (107.6 | )   |   | $ | 27.4 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                              |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |
| Direct premiums                                                                                                                                                                                                                                                                                                                                                                                                   |   | $             | 855.1  |   |   | $      | 858.6  |   |   | $ | 912.6 |   |
| Reinsurance assumed                                                                                                                                                                                                                                                                                                                                                                                     |   |          | 193.0  |   |   |   | 188.4  |   |   |   | 162.5 |   |
| Reinsurance ceded                                                                                                                                                                                                                                                                                                                                                                        |   |          | (243.2 | )      |   |   | (229.2 | )      |   |   | (193.4 | ) |
| Premiums                                                                                                                                                                                                                                                                                                                                                                                 |   | $             | 804.9  |   |   | $      | 817.8  |   |   | $ | 881.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |   |   |   |   |   |   |   |   |   |
| Universal Life and Investment-type Product                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |   |   |   |   |   |   |   |   |   |
| Policy Fee Income Ceded                                                                                                                                                                                                                                                                                                                                                                                 |   | $             | 153.9  |   |   | $      | 99.0   |   |   | $ | 118.4 |   |
| Policyholders’ Benefits                            Ceded                                                                                                                                                                                                                                                                                                                           |   | $             | 510.7  |   |   | $      | 387.5  |   |   | $ | 304.1 |   |
| Interest Credited to Policyholders’ Account                                                                                                                                                                                                                                                                                                                                                                 |   |          |   |   |   |   |   |   |   |   |   |   |
| Balances                            Ceded                                                             |   | $             | 56.1   |   |   | $      | 53.8   |   |   | $ | 50.9 |   |

|                                                                                           |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                           |   | (In Millions) |   |
|                                                                                           |   |          |   |
| Incurred benefits related to current year                                                      |   | $             | 32.9   |   |   | $      | 35.8   |   |   | $ | 35.6 |   |
| Incurred benefits related to prior years                                                       |   |          | 13.2   |   |   |   | 9.9    |   |   |   | 50.3 |   |
| Total Incurred Benefits                                                              |   | $             | 46.1   |   |   | $      | 45.7   |   |   | $ | 85.9 |   |
|                                                                                           |   |          |   |   |   |   |   |   |   |   |   |   |
| Benefits paid related to current                            year      |   | $             | 11.9   |   |   | $      | 14.0   |   |   | $ | 14.8 |   |
| Benefits paid related to prior years                                       |   |          | 32.8   |   |   |   | 30.0   |   |   |   | 44.7 |   |
| Total Benefits Paid                                                        |   | $             | 44.7   |   |   | $      | 44.0   |   |   | $ | 59.5 |   |

|                                                                                             |   | December 31,  |   |
|--------------------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                             |   | 2007          |   |   | 2006 |   |
|                                                                                             |   | (In Millions) |   |
|                                                                                             |   |          |   |
| Short-term debt:                                                                                 |   |          |   |   |   |   |
| Promissory note (with interest rates of 5.16% and 5.27%)                                         |   | $             | 248.3  |   |   | $ | 248.3 |   |
| AllianceBernstein commercial paper                                                               |   |          | 533.9  |   |   |   | 334.9 |   |
| Total short-term                            debt         |   |          | 782.2  |   |   |   | 583.2 |   |
|                                                                                             |   |          |   |   |   |   |   |   |
| Long-term debt:                                                                                  |   |          |   |   |   |   |   |   |
| AXA Equitable:                                                                                   |   |          |   |   |   |   |   |   |
| Surplus Notes, 7.70%, due                            2015          |   |          | 199.8  |   |   |   | 199.8 |   |
| Total long-term debt                                                                        |   |          | 199.8  |   |   |   | 199.8 |   |
|                                                                                             |   |          |   |   |   |   |   |   |
| Total Short-term and Long-term Debt                                               |   | $             | 982.0  |   |   | $ | 783.0 |   |

----

----

|                                        |   | 2007          |    |   | 2006   |   |   | 2005   |   |
|---------------------------------------------|--------|---------------|---------|--------|--------|--------|--------|--------|--------|
|                                        |   | (In Millions) |    |
|                                        |   |          |    |   |   |   |   |   |   |
| Investment advisory and services fees       |   | $             | 1,025.4 |   |   | $      | 840.5  |   |   | $ | 728.5 |   |
| Distribution revenues                  |   |          | 473.4   |   |   |   | 421.0  |   |   |   | 397.8 |   |
| Other revenues - shareholder servicing fees |   |          | 103.6   |   |   |   | 97.2   |   |   |   | 99.3 |   |
| Other revenues – other           |   |          | 6.5     |   |   |   | 6.9    |   |   |   | 8.0 |   |
| Institutional research services        |   |          | 1.6     |   |   |   | 1.9    |   |   |   | 3.9 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                          | 2007          |   | 2006   |   | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                          | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |          |   |
| Service                            cost                                                                                 |          | $      | 39.0   |   |   | $      | 37.6 |   |   | $ | 36.0 |   |
| Interest cost on projected benefit obligations                                                                                                                                                                                                                                                                                                                                                                                                |          |   | 128.8  |   |   |   | 122.1 |   |   |   | 123.7 |   |
| Expected return on                            assets                                                                    |          |   | (191.0 | )      |   |   | (184.8 | ) |   |   | (173.7 | ) |
| Net amortization and                            deferrals                                                               |          |   | 57.5   |   |   |   | 81.0 |   |   |   | 78.8 |   |
| Net Periodic Pension                            Expense                                                                 |          | $      | 34.3   |   |   | $      | 55.9 |   |   | $ | 64.8 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | December 31,  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 2007          |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |          |   |
| Benefit obligations, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          | $      | 2,294.3 |   |   | $ | 2,365.5 |   |
| Service                            cost                                                                                                  |          |   | 31.0 |   |   |   | 30.6 |   |
| Interest                            cost                                                                                                 |          |   | 128.8 |   |   |   | 122.1 |   |
| Plan                            amendments                                                                                               |          |   | 8.2 |   |   |   | - |   |
| Actuarial (gains)                            losses                                                                                      |          |   | (73.6 | ) |   |   | (64.7 | ) |
| Benefits                            paid                                                                                                 |          |   | (166.6 | ) |   |   | (159.2 | ) |
| Benefit Obligations, End of                            Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |          | $      | 2,222.1 |   |   | $ | 2,294.3 |   |

|                                                                                                                                               |   | December 31,  |    |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|
|                                                                                                                                               |   | 2007          |    |   | 2006 |   |
|                                                                                                                                               |   | (In Millions) |    |
|                                                                                                                                               |   |          |    |
| Plan assets at fair value, beginning of year                                                                                             |   | $             | 2,396.0 |   |   | $ | 2,278.5 |   |
| Actual return on plan assets                                                                                                             |   |          | 191.2   |   |   |   | 282.0 |   |
| Contributions                                                                                                        |   |          | 4.8     |   |   |   | 4.3 |   |
| Benefits paid and fees                                                                                                              |   |          | (176.3  | ) |   |   | (168.8 | ) |
| Plan assets at fair value, end of year                                                                                              |   |          | 2,415.7 |   |   |   | 2,396.0 |   |
| Projected benefit                            obligations                |   |          | 2,222.1 |   |   |   | 2,294.3 |   |
| Overfunding of Plan Assets                                OverProjected Benefit Obligations                                                   |   | $             | 193.6   |   |   | $ | 101.7 |   |

----

|                              | December 31,  |   |
|-----------------------------------|---------------|--------|
|                              | 2007          |   | 2006 |   |
|                              | (In Millions) |   |
|                              |          |   |
| Unrecognized net actuarial loss   |          | $      | 575.8 |   |   | $ | 710.7 |   |
| Unrecognized prior service credit |          |   | (4.9 | ) |   |   | (18.8 | ) |
| Unrecognized net transition asset |          |   | (.8 | ) |   |   | (.8 | ) |
| Total                             |          | $      | 570.1 |   |   | $ | 691.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                          |   |  December 31,  |                                                  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|-------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                          |   |  2007          |                                                  |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |  (In Millions) |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |                | Estimated                            Fair Value  |   |   |   | % |   |   |   | Estimated                    Fair Value |   |   |   | % |   |
|                                                                                                                                                                                                                                                                                                                                                                                          |   |                |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Corporate and government debt securities                                                                                                                                                                                                                                                                                                                                                      |   | $                   | 414.3                                                 |   |   |   | 17.1 |   |   | $ | 429.8 |   |   |   | 18.0 |   |
| Equity                            securities                                                          |   |                | 1,723.7                                               |   |   |   | 71.4 |   |   |   | 1,720.7 |   |   |   | 71.8 |   |
| Equity real                            estate                                                         |   |                | 277.7                                                 |   |   |   | 11.5 |   |   |   | 245.5 |   |   |   | 10.2 |   |
| Total Plan                            Assets                                                          |   | $                   | 2,415.7                                               |   |   |   | 100.0 |   |   | $ | 2,396.0 |   |   |   | 100.0 |   |

|                                                             |   | 2007   |   |   | 2006   |   |
|------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Discount rate:                                                   |   |   |   |   |   |   |
| Benefit obligation                      |   |   | 6.25%  |   |   |   | 5.75% |   |
| Periodic cost                                |   |   | 5.75%  |   |   |   | 5.25% |   |
|                                                             |   |   |   |   |   |   |   |   |
| Rate of compensation increase:                                   |   |   |   |   |   |   |   |   |
| Benefit obligation and periodic cost         |   |   | 6.00%  |   |   |   | 6.00% |   |
|                                                             |   |   |   |   |   |   |   |   |
| Expected long-term rate of return on plan assets (periodic cost) |   |   | 8.50%  |   |   |   | 8.50% |   |

----

|                   |   | Pension Benefits |   |
|------------------------|--------|------------------|--------|
|                   |   | (In Millions)    |   |
|                   |   |             |   |
| 2008    |   | $                | 174.3  |   |
| 2009                   |   |             | 187.2  |   |
| 2010                   |   |             | 188.8  |   |
| 2011         |   |             | 189.8  |   |
| 2012              |   |             | 192.4  |   |
| Years 2013-2017        |   |             | 945.5  |   |

| 13)   |    SHARE-BASED COMPENSATION |
|-----------------|--------------------------------------------|

----

|                                                                                                                                                                                              | Options Outstanding |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|--------|
|                                                                                                                                                                                              |                |   |   |   |   |   |   |   |   | AllianceBernstein |   |
|                                                                                                                                                                                              | AXA Ordinary Shares |   | AXA ADRs |   | Holding Units |   |
|                                                                                                                                                                                              |                |   |   | Weighted |   |   |   | Weighted |   |   |   | Weighted |   |
|                                                                                                                                                                                              | Number              |   |   | Average’ |   | Number |   | Average’ |   | Number |   | Average’ |   |
|                                                                                                                                                                                              | Outstanding         |   |   | Exercise |   | Outstanding |   | Exercise |   | Outstanding |   | Exercise |   |
|                                                                                                                                                                                              | (In Millions)       |   |   | Price |   | (In Millions) |   | Price |   | (In Millions) |   | Price |   |
|                                                                                                                                                                                              |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Options outstanding at January 1, 2007                                                                                                                                                            | 7.4                 |   |   | € | 24.82 |   | 26.8 |   | $ | 23.03 |   | 4.8 |   | $ | 41.62 |   |
| Options granted                                                                                                                                                                                   | 3.1                 |   |   | € | 34.56 |   | - |   | $ | - |   | 3.7 |   | $ | 85.07 |   |
| Options exercised                                                                                                                                                                                 | (.1)                |   |   | € | 20.67 |   | (7.4) |   | $ | 24.12 |   | (1.2) |   | $ | 39.25 |   |
| Options forfeited                                                                                                                                                                                 | (.1)                |   |   | € | 23.42 |   | (.4) |   | $ | 22.54 |   | -                            (2) |   | $ | 33.18 |   |
| Options expired                                                                                                                                                                                   | -                   |   |   |   |   |   | - |   |   |   |   | - |   |   | - |   |
| Options Outstanding at                                                                                                                                                                            |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2007                                                                                                                                                                                 | 10.3                |   |   | € | 27.77 |   | 19.0 |   | $ | 22.64 |   | 7.3 |   | $ | 64.20 |   |
| Aggregate Intrinsic Value (1)                                                                                                                                                                     |                |   |   | € | 23.0 |   |   |   | $ | 323.3 |   |   |   | $ | 80.37 |   |
| Weighted Average                                                                                                                                                                                  |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Remaining                                                                                                                                                                                         |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contractual Term                                                                                                                                                                                  |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (in                            years)                           | 8.27                |   |   |   |   |   | 3.94 |   |   |   |   | 6.9 |   |   |   |   |
| Options Exercisable at                                                                                                                                                                            |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2007                                                                                                                                                                                 | 3.3                 |   |   | € | 20.46 |   | 15.8 |   | $ | 22.53 |   | 3.5 |   | $ | 42.52 |   |
| Aggregate Intrinsic Value (1)                                                                                                                                                                     |                |   |   | € | 23.0 |   |   |   | $ | 270.8 |   |   |   | $ | 115.4 |   |
| Weighted Average Remaining                                                                                                                                                                        |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Contractual Term (in years)                                                                                                                                                                  | 7.26                |   |   |   |   |   | 3.36 |   |   |   |   | 3.5 |   |   |   |   |

| (1)   | Intrinsic value, presented in millions, is calculated as the excess of                            the closing market price on December 31, 2007 of the respective                            underlying shares over the strike prices of the option awards. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Approximately 19,500 options on AllianceBernstein Holding units were                            forfeited in 2007. |
|-----------------|--------------------------------------------------------------------------------------------------------------------|

----

|                    | AXA Ordinary |   |   |   |   | AXA    |   |   | AllianceBernstein |
|-------------------------|--------------|--------|--------|--------|--------|--------|--------|--------|-------------------|
|                    | Shares       |   |   |   |   | ADRs   |   |   | Holding Units     |
|                    |         | 2007   |   | 2006   |   |   |   |   | 2005              |   |   |   |   | 2007 |   | 2006 |   | 2005 |   |
|                    |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Dividend yield          |         | 4.10%  |   | 3.48%  |   |   |   |   | 3.01%             |   |   |   |   | 5.6-5.7% |   | 6% |   | 6.2% |   |
|                    |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Expected volatility     |         | 27.5%  |   | 28%    |   |   |   |   | 25%               |   |   |   |   | 27.7-30.8% |   | 31% |   | 31% |   |
|                    |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Risk-free interest rate |         | 4.40%  |   | 3.77%  |   |   |   |   | 4.27%             |   |   |   |   | 3.5-4.9% |   | 4.9% |   | 3.7% |   |
|                    |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Expected life in years  |         | 5.5    |   | 5.0    |   |   |   |   | 5.0               |   |   |   |   | 6.0-9.5 |   | 6.5 |   | 3.0 |   |
|                    |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Weighted average fair   |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| value per option at     |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |
| grant date              |         | $9.61  |   | $7.45  |   |   |   |   | $4.85             |   |   |   |   | $15.96 |   | $12.35 |   | $7.04 |   |
|                    |         |   |   |   |   |   |   |   |              |   |   |   |   |   |   |   |   |   |   |

----

|                                   |   |   | Shares of                    Restricted                    Stock  |   |   |   |   | Weighted                    Average                    Grant Date                    Fair Value |   |
|----------------------------------------|--------|--------|------------------------------------------------------------------------|--------|--------|--------|--------|-------------------------------------------------------------------------------------------------|--------|
|                                   |   |   |                                                                   |   |   |   |   |                                                                                            |   |
| Unvested as of January 1, 2007         |   |   | 514,035                                                                |   |   |   | $      | 23.91                                                                                           |   |
| Granted                 |   |   | 100,187                                                                |   |   |   | $      | 44.59                                                                                           |   |
| Vested                       |   |   | (161,756                                                               | **)**  |   |   | $      | 24.55                                                                                           |   |
| Forfeited                         |   |   | (43,955                                                                | **)**  |   |   |   |
| Unvested as of December 31, 2007  |   |   | 408,511                                                                |   |   |   | $      | 29.67                                                                                           |   |

----

----

| 14)   | NET INVESTMENT INCOME AND INVESTMENT (LOSSES) GAINS, NET |
|-----------------|----------------------------------------------------------|

|                                                                                                                                                                                                                  |   | 2007          |    |   | 2006   |   |    | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                                                                                                                                                                  |   | (In Millions) |    |
|                                                                                                                                                                                                                  |   |          |    |
| Fixed maturities                                                                                                                                                              |   | $             | 1,728.5 |   |   | $      | 1,848.6 |   |   | $ | 1,870.0 |   |
| Mortgage loans on real                            estate                                                                                                                           |   |          | 233.5   |   |   |   | 245.9   |   |   |   | 238.2 |   |
| Equity real estate                                                                                                                                                                           |   |          | 93.6    |   |   |   | 88.2    |   |   |   | 96.5 |   |
| Other equity investments                                                                                                                                                                               |   |          | 237.4   |   |   |   | 181.2   |   |   |   | 155.2 |   |
| Policy                            loans                              |   |          | 255.9   |   |   |   | 249.8   |   |   |   | 248.8 |   |
| Short-term                            investments                                                                                |   |          | 55.1    |   |   |   | 55.2    |   |   |   | 25.1 |   |
| Derivative                            investments                                             |   |          | 86.6    |   |   |   | (302.4  | )      |   |   | (85.5 | ) |
| Broker-dealer related                            receivables                                                                                                                            |   |          | 234.6   |   |   |   | 226.5   |   |   |   | 124.8 |   |
| Trading                            securities                                                                     |   |          | 36.0    |   |   |   | 53.4    |   |   |   | 28.6 |   |
| Other investment                            income                                                                                                                       |   |          | 50.7    |   |   |   | 43.9    |   |   |   | 16.2 |   |
|                                                                                                                                                                                                                  |   |          |    |   |   |   |    |   |   |   |   |   |
| Gross investment income                                                                                                                                                                 |   |          | 3,011.9 |   |   |   | 2,690.3 |   |   |   | 2,717.9 |   |
|                                                                                                                                                                                                                  |   |          |    |   |   |   |    |   |   |   |   |   |
| Investment expenses                                                                                                                                                                          |   |          | (122.5  | )      |   |   | (113.3  | )      |   |   | (140.2 | ) |
| Interest expenses                                                                                                                                                                                                     |   |          | (194.4  | )      |   |   | (187.8  | )      |   |   | (95.9 | ) |
|                                                                                                                                                                                                                  |   |          |    |   |   |   |    |   |   |   |   |   |
| Net Investment Income                                                                                                                                                                        |   | $             | 2,695.0 |   |   | $      | 2,389.2 |   |   | $ | 2,481.8 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |   |
| Fixed maturities                                                                                                                                                                                                                                                                                                                                                                                                     |   | $             | (55.6  | )      |   | $      | (11.5  | )      |   | $ | 11.1 |   |
| Mortgage loans on real                            estate                                                                                                                                                                                                                                                                                                                                              |   |          | 7.8    |   |   |   | .2     |   |   |   | (2.2 | ) |
| Equity real                            estate                                                                                                                                                                                                                                                                                                                                                    |   |          | 7.3    |   |   |   | 8.8    |   |   |   | 3.9 |   |
| Other equity                            investments                                                                                                                                                                                                                                                                             |   |          | 16.9   |   |   |   | 20.1   |   |   |   | 30.7 |   |
| Other                                                        (1)                                                                                                                                                                                                                                                                                                             |   |          | 16.4   |   |   |   | 29.3   |   |   |   | 11.9 |   |
| Investment (Losses) Gains,                            Net                                                               |   | $             | (7.2   | )      |   | $      | 46.9   |   |   | $ | 55.4 |   |

| (1)   | In 2007, AllianceBernstein issued units to its employees under                            long-term incentive plans.  As a result of this transaction,                            the company recorded a non-cash realized gain of $17.7 million and                            $29.7 million for 2007 and 2006 respectively. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2007          |   |   | 2006   |   | 2005   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |   |
| Balance, beginning of                            year                                                               |   | $             | 282.2  |   |   | $      | 432.3  |   |   | $ | 874.1 |   |
| Changes in unrealized investment gains (losses)                                                                                                                                                                                                                                                                                                                                                                                           |   |          | (380.5 | )      |   |   | (431.4 | )      |   |   | (1,008.1 | ) |
| Changes in unrealized investment (gains) losses                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |   |   |   |   |   |   |   |   |   |
| attributable to:                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |   |   |   |   |   |   |   |   |   |   |
| Participating group annuity contracts,                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |   |   |   |   |   |   |   |   |   |   |
| Closed Block policyholder dividend                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |   |   |   |   |   |   |   |   |   |
| obligation and                            other                                                                                                        |   |          | 15.0   |   |   |   | 90.9   |   |   |   | 186.3 |   |
| DAC                                                                                                                                     |   |          | 83.5   |   |   |   | 85.8   |   |   |   | 146.2 |   |
| Deferred income                            taxes                                                                                        |   |          | 103.4  |   |   |   | 104.6  |   |   |   | 233.8 |   |
| Balance, End of                            Year                                                                     |   | $             | 103.6  |   |   | $      | 282.2  |   |   | $ | 432.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |   |   |   |   |   |   |   |   |   |   |
| Balance, end of year comprises:                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |   |   |   |   |   |   |   |   |   |
| Unrealized investment gains (losses) on:                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |   |   |   |   |   |   |   |   |   |   |
| Fixed                            maturities                                                                                             |   | $             | 155.5  |   |   | $      | 535.4  |   |   | $ | 966.5 |   |
| Other equity                            investments                                                                                     |   |          | .8     |   |   |   | 1.4    |   |   |   | 1.7 |   |
| Subtotal                                                                                                                                          |   |          | 156.3  |   |   |   | 536.8  |   |   |   | 968.2 |   |
| Amounts of unrealized investment (gains) losses                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |   |   |   |   |   |   |   |   |   |
| attributable to:                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |   |   |   |   |   |   |   |   |   |   |
| Participating group annuity contracts,                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |   |   |   |   |   |   |   |   |   |   |
| Closed Block policyholder dividend                                                                                                                                                                                                                                                                                                                                                                                                        |   |          |   |   |   |   |   |   |   |   |   |   |
| obligation and                            other                                                                                                                  |   |          | 16.4   |   |   |   | 1.4    |   |   |   | (89.4 | ) |
| DAC                                                                                                                                               |   |          | (26.9  | )      |   |   | (110.4 | )      |   |   | (196.0 | ) |
| Deferred income                            taxes                                                                                                  |   |          | (42.2  | )      |   |   | (145.6 | )      |   |   | (250.5 | ) |
| Total                                                                                                               |   | $             | 103.6  |   |   | $      | 282.2  |   |   | $ | 432.3 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                          | 2007          |   | 2006   |   | 2005   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                          | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |          |   |
| Income tax expense:                                                                                                                                                                                                                                                                                                                                                                                                           |          |   |   |   |   |   |   |   |   |
| Current                            expense                                                                        |          | $      | 464.0  |   |   | $      | 438.6 |   |   | $ | 237.5 |   |
| Deferred expense                            (benefit)                                                             |          |   | 295.8  |   |   |   | (11.3 | ) |   |   | 278.3 |   |
| Total                                                                                                   |          | $      | 759.8  |   |   | $      | 427.3 |   |   | $ | 515.8 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |   |
| Expected income tax                            expense                                                                    |   | $             | 939.0  |   |   | $      | 725.2  |   |   | $ | 712.0 |   |
| Minority                            interest                                                                              |   |          | (227.3 | )      |   |   | (224.1 | )      |   |   | (175.9 | ) |
| Separate Account investment activity                                                                                                                                                                                                                                                                                                                                                                                                            |   |          | (52.0  | )      |   |   | (45.4  | )      |   |   | (87.2 | ) |
| Non-taxable investment                            income                                                                  |   |          | (21.7  | )      |   |   | (23.1  | )      |   |   | (19.7 | ) |
| Adjustment of tax audit                            reserves                                                               |   |          | 21.5   |   |   |   | (86.2  | )      |   |   | 11.1 |   |
| State income                            taxes                                                                             |   |          | 50.2   |   |   |   | 38.0   |   |   |   | 28.3 |   |
| AllianceBernstein income and foreign taxes                                                                                                                                                                                                                                                                                                                                                                                                      |   |          | 40.2   |   |   |   | 32.9   |   |   |   | 41.4 |   |
| Other                                                                                                                     |   |          | 9.9    |   |   |   | 7.2    |   |   |   | 5.8 |   |
| Income Tax                            Expense                                                                             |   | $             | 759.8  |   |   | $      | 424.5  |   |   | $ | 515.8 |   |

|                                             | December 31, 2007 |   | December 31, 2006 |   |
|--------------------------------------------------|-------------------|--------|-------------------|--------|
|                                             | Assets            |   | Liabilities       |   | Assets |   | Liabilities |   |
|                                             | (In Millions)     |   |
|                                             |              |   |
| Compensation and related benefits                |              | $      | -                 |   |   | $ | 35.4 |   |   | $ | 54.6 |   |   | $ | - |   |
| Reserves and reinsurance     |              |   | 1,312.2           |   |   |   | - |   |   |   | 1,160.3 |   |   |   | - |   |
| DAC                                              |              |   | -                 |   |   |   | 2,735.5 |   |   |   | - |   |   |   | 2,433.5 |   |
| Unrealized investment gains                      |              |   | -                 |   |   |   | 42.5 |   |   |   | - |   |   |   | 129.8 |   |
| Investments                                      |              |   | -                 |   |   |   | 1,044.2 |   |   |   | - |   |   |   | 916.5 |   |
| Other                        |              |   | 81.5              |   |   |   | - |   |   |   | 64.1 |   |   |   |   |   |
| Total                                       |              | $      | 1,393.7           |   |   | $ | 3,857.6 |   |   | $ | 1,279.0 |   |   | $ | 3,479.8 |   |

----

|                                                                                                                                 |   | 2007          |    |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|
|                                                                                                                                 |   | (In Millions) |    |
|                                                                                                                                 |   |          |    |
| Balance at January 1, 2007 (date of                            adoption)           |   | $             | 325.2   |   |
| Additions for tax positions of prior                            years                                       |   |          | 19.2    |   |
| Reductions for tax positions of prior years                                                                                |   |          | (1.5    | ) |
| Additions for tax positions of current years                                                                               |   |          | 3.4     |   |
| Reductions for tax positions of current years                                                                         |   |          | (.3     | ) |
| Settlements with tax authorities                                                                            |   |          | (2.4    | ) |
| Reductions as a result of a lapse of the applicable statute of                            limitations                                |   |          | -  |   |
| Balance, End of Year                                                                                                       |   | $             | 343.6   |   |
|                                                                                                                                 |   |          |    |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2007          |   |    | 2006   |   |   | 2005   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|---------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |    |   |   |   |   |   |
| (Losses) Earnings from Discontinued Operations,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |   |    |   |   |   |   |   |
| Net of Income Taxes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |    |   |   |   |   |   |
| Wind-up                            Annuities                                                                                            |   | $             | (.1    | )       |   | $      | 30.2   |   |   | $ | 15.2 |   |
| Real estate                            held-for-sale                                                                                    |   |          | (6.8   | )       |   |   | 1.1    |   |   |   | 7.2 |   |
| Disposal of business -                            Enterprise                                                                            |   |          | 1.0    |    |   |   | (.1    | )      |   |   | (.1 | ) |
| Total                                                                                                                                   |   | $             | (5.9   | )       |   | $      | 31.2   |   |   | $ | 22.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |    |   |   |   |   |   |   |   |   |
| Gains (Losses) on Disposal of Discontinued Operations,                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |   |    |   |   |   |   |   |   |   |   |
| Net of Income Taxes:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |    |   |   |   |   |   |   |   |   |
| Real estate held for                            sale                                                                                    |   | $             | 3.2    |         |   | $      | -      |   |   | $ | - |   |
| Disposal of business -                            Enterprise                                                                            |   |          | (.4    | )  |   |   | (1.9   | )      |   |   | - |   |
| Total                                                                                                                                   |   | $             | 2.8    |    |   | $      | (1.9   | )      |   | $ | - |   |

----

|                                                                                                                        |   | December 31,  |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|
|                                                                                                                        |   | 2007          |   |   | 2006 |   |
|                                                                                                                        |   | (In Millions) |   |
|                                                                                                                        |   |          |   |
| BALANCE SHEETS                                                                                                              |   |          |   |   |   |   |
| Fixed maturities, available for sale, at estimated fair value                                                               |   |          |   |   |   |   |
| (amortized cost of $696.3 and $752.7)                                                                                  |   | $             | 705.0  |   |   | $ | 764.8 |   |
| Equity real                            estate              |   |          | 165.0  |   |   |   | 169.5 |   |
| Mortgage loans on real estate                                                                                     |   |          | 2.2    |   |   |   | 2.9 |   |
| Other invested assets                                                                                                  |   |          | 1.8    |   |   |   | 2.6 |   |
| Total investments                                                                                                      |   |          | 874.0  |   |   |   | 939.8 |   |
| Cash and cash equivalents                                                                                                   |   |          | -      |   |   |   | .1 |   |
| Other assets                                                                                                      |   |          | 27.3   |   |   |   | 13.7 |   |
| Total Assets                                                                                            |   | $             | 901.3  |   |   | $ | 953.6 |   |
|                                                                                                                        |   |          |   |   |   |   |   |   |
| Policyholders liabilities                                                                                         |   | $             | 756.1  |   |   | $ | 788.2 |   |
| Allowance for future losses                                                                                                 |   |          | -      |   |   |   | 1.0 |   |
| Other liabilities                                                                             |   |          | 145.2  |   |   |   | 164.4 |   |
| Total Liabilities                                                                                                           |   | $             | 901.3  |   |   | $ | 953.6 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |
| STATEMENTS OF EARNINGS                                                                                                                                                                                                                                                                                                                                                                                                            |   |          |   |   |   |   |   |   |   |
| Investment income (net of investment expenses of $19.6, $19.0 and                            $18.4)                                                                                                                                                                                                                                                                                                                               |   | $             | 64.9   |   |   | $      | 71.3   |   |   | $ | 70.0 |   |
| Investment (losses) gains, net                                                                                                                                                                                                                                                                                                                                                                                               |   |          | (.8    | )      |   |   | 6.0    |   |   |   | (.3 | ) |
| Policy fees, premiums and other income                                                                                                                                                                                                                                                                                                                                                                                            |   |          | .2     |   |   |   | -      |   |   |   | - |   |
| Total                            revenues                                                                   |   |          | 64.3   |   |   |   | 77.3   |   |   |   | 69.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |   |   |   |   |   |   |   |   |   |   |
| Benefits and other deductions                                                                                                                                                                                                                                                                                                                                                                                           |   |          | 79.9   |   |   |   | 84.7   |   |   |   | 87.1 |   |
| Losses charged to the allowance for future losses                                                                                                                                                                                                                                                                                                                                                                                 |   |          | (15.6  | )      |   |   | (7.4   | )      |   |   | (17.4 | ) |
| Pre-tax loss from operations                                                                                                                                                                                                                                                                                                                                                                                  |   |          | -      |   |   |   | -      |   |   |   | - |   |
| Pre-tax (loss from strengthening) earnings from releasing the allowance                            for future losses                                                                                                                                                                                                                                                                                                              |   |          | (.1    | )      |   |   | 37.1   |   |   |   | 23.2 |   |
| Income tax                            expense                                                               |   |          | -      |   |   |   | (6.9   | )      |   |   | (8.0 | ) |
| Earnings from Wind-up                            Annuities                                                                                                                                                                                                                                                                                                                                          |   | $             | (.1    | )      |   | $      | 30.2   |   |   | $ | 15.2 |   |

|   | The Company’s quarterly process for evaluating the need for an                            allowance for future losses involves comparison of the current                            period’s results of Wind-up Annuities to previous projections and                            re-estimation of future expected losses, if appropriate, to determine                            whether an adjustment is required.  Investment and benefit                            cash flow projections are updated annually as part of the                            Company’s annual planning process.  These updated                            assumptions and estimates resulted in releases of the allowance in 2006                            and 2005.  If the Company’s analysis in any given                            period indicates that an allowance for future losses is not necessary,                            any current period Wind-up Annuities’ operating losses are                            deferred to the extent that such losses are expected to be offset by                            reasonably assured future net investing and operating cash                            flows.  Management believes the $18.0 million of deferred                            operating losses at December 31, 2007 are offset by projections of                            reasonably assured future net investing and operating cash                            flows. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The determination of projected future cash flows involves numerous                            estimates and subjective judgments regarding the expected performance                            of invested assets held by Wind-up Annuities and the expected run-off                            of Wind-up Annuities liabilities.  There can be no assurance                            the projected future cash flows will not differ from the cash flows                            ultimately realized.  To the extent actual results or future                            projections of Wind-up Annuities are lower than management’s                            current estimates and assumptions and result in deferred operating                            losses not being offset by reasonably assured future net investing and                            operating cash flows, the difference would be reflected in the                            consolidated statements of earnings in Wind-up Annuities.  In                            particular, to the extent income, sales proceeds and holding periods                            for equity real estate differ from management’s previous                            assumptions, periodic adjustments to the loss allowance liability or                            deferred operating loss asset, as applicable, may result. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                           | 2007          |   | 2006   |   | 2005   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                           | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |          |   |
| Unrealized gains on                            investments                                                               |          | $      | 103.6  |   |   | $      | 282.2 |   |   | $ | 432.3 |   |
| Defined benefit pensions                            plans                                                                |          |   | (371.5 | )      |   |   | (449.5 | ) |   |   | - |   |
| Total Accumulated                                OtherComprehensive                                (Loss) Income                                                                                                                                                                                                                                                                                                                               |          | $      | (267.9 | )      |   | $      | (167.3 | ) |   | $ | 432.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2007          |   |   | 2006   |   |   | 2005   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | (In Millions) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |
| Net unrealized (losses) gains on investments:                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |   |   |   |   |   |   |   |
| Net unrealized (losses) gains arising duringthe year                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $             | (357.8 | )      |   | $      | (416.6 | )      |   | $ | (966.2 | ) |
| Losses reclassified into net earningsduring                                the                                year                                                           |   |          | (22.7  | )      |   |   | (14.8  | )      |   |   | (41.9 | ) |
| Net unrealized (losses) gains on investments                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | (380.5 | )      |   |   | (431.4 | )      |   |   | (1,008.1 | ) |
| Adjustments for policyholders liabilities,                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |   |   |   |   |   |   |   |   |   |   |
| DAC and deferred income                            taxes                                                                                                                     |   |          | 201.9  |   |   |   | 281.3  |   |   |   | 566.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |          |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized losses, net of adjustments                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          | (178.6 | )      |   |   | (150.1 | )      |   |   | (441.8 | ) |
| Change in defined benefits pension plans                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 78.0   |   |   |   | -      |   |   |   | - |   |
| Total Other Comprehensive                            Loss                                                                                                |   | $             | (100.6 | )      |   | $      | (150.1 | )      |   | $ | (441.8 | ) |

----

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2007          |                                |   | 2006   |   |     | 2005    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------------------------------|--------|--------|--------|----------|---------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (In Millions) |                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |                                |
| Net change in statutory surplus                                andcapital                                stock                                                                                                                                                                                                                                                                                                                        |   | $             | 71.7                                |   |   | $      | 1,386.5  |    |   | $ | 779.6 |   |
| Change in                            AVR                                                                        |   |          | (167.2                              | )      |   |   | 279.3    |    |   |   | 260.6 |   |
| Net change in statutory surplus,                                capital                                stockand                                AVR                                                                                                                                                                                                                                                                                    |   |          | (95.5                               | )      |   |   | 1,665.8  |    |   |   | 1,040.2 |   |
| Adjustments:                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |                                |   |   |   |     |    |   |   |   |   |
| Future policy benefits and policyholders’ account balances                                                                                                                                                                                                                                                                                                                                                                      |   |          |                      **415.1** |   |   |   | (144.3   | )  |   |   |  (56.6 | )  |
| DAC                                                                                                                       |   |          | 620.1                               |   |   |   | 674.1    |    |   |   | 598.0 |   |
| Deferred income                            taxes                                                                          |   |          | (677.8                              | )      |   |   | 517.3    |    |   |   | 227.6 |   |
| Valuation of                            investments                                                                       |   |          | 2.8                                 |   |   |   | 2.6      |    |   |   | 40.0 |   |
| Valuation of investment                            subsidiary                                                             |   |          | 461.7                               |   |   |   | (2,122.7 | )       |   |   | (1,278.3 | ) |
| Change in fair value of guaranteed                                minimumincome                                benefit reinsurance contracts                                                                                                                                                                                                                                                                                          |   |          | 6.9                                 |   |   |   | (14.8    | )       |   |   | 42.6 |   |
| Shareholder dividends paid                                                                                                                                                                                                                                                                                                                                                                                                       |   |          | 600.0                               |   |   |   | 600.0    |    |   |   | 500.0 |   |
| Changes in non-admitted assets                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 19.4                                |   |   |   | (57.4    | )       |   |   | .5 |   |
| Other,                            net                                                                                     |   |          | (150.3                              | )      |   |   | (72.6    | )       |   |   | (71.1 | ) |
| GAAP adjustments for Wind-up Annuities                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 31.2                                |   |   |   | 28.8     |    |   |   | 30.9 |   |
| Consolidated Net Earnings                                                                                                                                                                                                                                                                                                                                                                                                             |   | $             | 1,233.6                             |   |   | $      | 1,076.8  |    |   | $ | 1,073.8 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | December 31,  |     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2007          |     |   | 2006 |   |   | 2005 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (In Millions) |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |     |
| Statutory surplus and capital stock                                                                                                                                                                                                                                                                                                                                                                                         |   | $             | 6,569.3  |   |   | $ | 6,497.6 |   |   | $ | 5,111.1 |   |
| AVR                                                                                                                                                                                                                                                                                                                                                             |   |          | 1,242.7  |   |   |   | 1,409.9 |   |   |   | 1,130.6 |   |
| Statutory surplus, capital stock and AVR                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 7,812.0  |   |   |   | 7,907.5 |   |   |   | 6,241.7 |   |
| Adjustments:                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |     |   |   |   |   |   |   |   |   |   |
| Future policy benefits and policyholders’ account                            balances                                                                                                                                                                                                                                                                                                                                      |   |          | (2,270.2 | ) |   |   | (2,574.1 | ) |   |   | (2,351.0 | ) |
| DAC                                                                                                                       |   |          | 9,019.3  |   |   |   | 8,316.5 |   |   |   | 7,557.3 |   |
| Deferred income                            taxes                                                                          |   |          | (1,089.3 | ) |   |   | (627.1 | ) |   |   | (1,294.6 | ) |
| Valuation of                            investments                                                                       |   |          | 457.1    |   |   |   | 867.9 |   |   |   | 1,281.6 |   |
| Valuation of investment                            subsidiary                                                             |   |          | (4,458.3 | ) |   |   | (4,920.0 | ) |   |   | (2,797.3 | ) |
| Fair value of GMIB reinsurance                            contracts                                                                                                                                                                                                                                                                                                                                          |   |          | 124.7    |   |   |   | 117.8 |   |   |   | 132.6 |   |
| Non-admitted assets                                                                                                                                                                                                                                                                                                                                                                                               |   |          | 1,014.5  |   |   |   | 994.5 |   |   |   | 1,051.6 |   |
| Issuance of surplus notes                                                                                                                                                                                                                                                                                                                                                                                              |   |          | (524.8   | ) |   |   | (524.8 | ) |   |   | (524.8 | ) |
| Adjustment to initially apply SFAS No. 158, net of income                            taxes                                                                                                                                                                                                                                                                                                                                       |   |          | -        |   |   |   | (449.5 | ) |   |   | - |   |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                   |   |          | 76.0     |   |   |   | 433.6 |   |   |   | 225.4 |   |
| GAAP adjustments for Wind-up Annuities                                                                                                                                                                                                                                                                                                                                                                                                |   |          | 1.5      |   |   |   | (59.9 | ) |   |   | (80.6 | ) |
| Consolidated Shareholder’s Equity                                                                                                                                                                                                                                                                                                                                                                                               |   | $             | 10,162.5 |   |   | $ | 9,482.4 |   |   | $ | 9,441.9 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007          |     |   | 2006   |   |    | 2005   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|--------|--------|---------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (In Millions) |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          |     |   |   |   |    |   |   |
| Segment                            revenues:                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |     |   |   |   |    |   |   |
| Insurance                                                                                                                                      |   | $             | 6,938.0  |   |   | $      | 5,966.9 |   |   | $ | 5,754.1 |   |
| Investment Management                                                        (1)                                                               |   |          | 4,561.8  |   |   |   | 4,002.7 |   |   |   | 3,265.0 |   |
| Consolidation/elimination                                                                                                                      |   |          | (91.4    | )      |   |   | (90.0   | )      |   |   | (84.7 | ) |
| Total                            Revenues                                                                                                      |   | $             | 11,408.4 |   |   | $      | 9,879.6 |   |   | $ | 8,934.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |

|   | (1)  Intersegment investment advisory and other fees of                            approximately $128.9 million, $120.8 million and $123.7 million for                            2007, 2006 and 2005, respectively, are included in total revenues of                            the Investment Management segment. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |          |   |    |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|---------------|--------|---------|--------|--------|
| Segment earnings from continuing                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007   |    |   | 2006          |   |    | 2005   |   |
| operations before income                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |   | (In Millions) |   |    |   |   |
| taxes and minority                            interest:                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |          |   |    |   |   |
| Insurance                                                                                                      |   | $      | 1,298.9 |   |          | $      | 881.9   |   |   | $ | 1,110.0 |   |
| Investment                            Management                                                               |   |   | 1,383.9 |   |          |   | 1,190.0 |   |   |   | 924.2 |   |
| Consolidation/elimination                                                                                      |   |   | -       |   |          |   | -       |   |   |   | - |   |
| Total Earnings from Continuing Operations                                                                                                                                                                                                                                                                                                                                                                                            |   |   |    |   |          |   |    |   |   |   |   |   |
| before Income Taxes and Minority Interest                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 2,682.8 |   |          | $      | 2,071.9 |   |   | $ | 2,034.2 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | December 31,  |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007          |      |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | (In Millions) |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          |      |   |   |   |
| Segment assets:                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |      |   |   |   |
| Insurance                                                                                                      |   | $             | 144,962.2 |   |   | $ | 133,047.0 |   |
| Investment                            Management                                                               |   |          | 14,962.7  |   |   |   | 16,239.4 |   |
| Consolidation/elimination                                                                                      |   |          | 1.1       |   |   |   | (.3 | ) |
| Total                            Assets                                                                        |   | $             | 159,926.0 |   |   | $ | 149,286.1 |   |

----

|                                                                                                                                                                                                                                                                    |   | Three Months Ended |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                                                                                                                                                                                                    |   | March 31           |    |   | June 30 |   |   | September 30 |   |   | December 31 |   |
|                                                                                                                                                                                                                                                                    |   | (In Millions)      |    |
| 2007                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |
| Total                            Revenues                                      |   | $                  | 2,677.9 |   |   | $ | 2,608.2 |   |   | $ | 2,938.5 |   |   | $ | 3,183.8 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings from                                ContinuingOperations                                                                                                                                                                                                  |   | $                  | 295.7   |   |   | $ | 232.0 |   |   | $ | 356.6 |   |   | $ | 352.4 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Earnings                                                                                                                                                                                                                                        |   | $                  | 299.6   |   |   | $ | 218.2 |   |   | $ | 362.4 |   |   | $ | 353.4 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2006                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Revenues                                                                                                                                                                                                                                                     |   | $                  | 2,241.6 |   |   | $ | 2,607.3 |   |   | $ | 2,413.3 |   |   | $ | 2,617.4 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings from                                                                Continuing Operations                                                                                                                                                                      |   | $                  | 232.5   |   |   | $ | 315.3 |   |   | $ | 280.5 |   |   | $ | 219.2 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Earnings                                                                                                                                                                                                                                                  |   | $                  | 235.2   |   |   | $ | 314.2 |   |   | $ | 308.6 |   |   | $ | 218.8 |   |
|                                                                                                                                                                                                                                                                    |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   | Estimated  |    |     | Carrying |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|------------|---------|----------|----------|--------|
| Type of                            Investment                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | Cost (A)      |     |   | Fair Value |    |     | Value    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (In Millions) |     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |
| Fixed maturities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |          |     |   |       |    |     |     |   |
| U.S. government, agencies and authorities                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $             | 1,320.6  |   |       | $       | 1,382.7  |     |   | $ | 1,382.7 |   |
| State, municipalities and political subdivisions                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |          | 169.8    |   |       |    | 185.9    |     |   |   | 185.9 |   |
| Foreign                            governments                                                                                                            |   |          | 237.0    |   |       |    | 278.9    |     |   |   | 278.9 |   |
| Public                            utilities                                                                                                               |   |          | 2,976.3  |   |       |    | 3,062.0  |     |   |   | 3,062.0 |   |
| All other corporate                            bonds                                                                                                      |   |          | 20,579.3 |   |       |    | 20,565.7 |     |   |   | 20,565.7 |   |
| Redeemable preferred                            stocks                                                                                                    |   |          | 1,730.7  |   |       |    | 1,684.3  |     |   |   | 1,684.3 |   |
| Total fixed                            maturities                                                                                               |   |          | 27,013.7 |   |       |    | 27,159.5 |     |   |   | 27,159.5 |   |
| Equity securities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |     |   |       |    |     |     |   |   |   |   |
| Common stocks:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |     |   |       |    |     |     |   |   |   |   |
| Industrial, miscellaneous and all                            other                                                                                        |   |          | 25.1     |   |       |    | 25.8     |     |   |   | 25.8 |   |
| Mortgage loans on real                            estate                                                                                        |   |          | 3,730.6  |   |       |    | 3,766.9  |     |   |   | 3,730.6 |   |
| Real                            estate                                                                                                          |   |          | 209.0    |   |       | XXX     |     |     |   | 209.0 |   |
| Real estate acquired in satisfaction of                            debt                                                                         |   |          | 113.0    |   |       | XXX     |     |     |   | 113.0 |   |
| Real estate joint                            ventures                                                                                           |   |          | 59.7     |   |       | XXX     |     |     |   | 59.7 |   |
| Policy                            loans                                                                                                         |   |          | 3,938.8  |   |       |    | XXX      |     |   |   | 3,938.8 |   |
| Other limited partnership interests and equity investments                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          | 1,794.5  |   |       |    | 1,794.5  |     |   |   | 1,794.5 |   |
| Trading                            securities                                                                                                   |   |          | 587.5    |   |       |    | 573.3    |     |   |   | 573.3 |   |
| Other invested                            assets                                                                                                |   |          | 1,000.9  |   |       |    | 1,000.9  |     |   |   | 1,000.9 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |     |   |       |    |     |     |   |   |   |   |
| Total                            Investments                                                                                                    |   | $             | 38,472.8 |   |       | $  | 34,320.9 |     |   | $ | 38,605.1 |   |

| (A)   | Cost for fixed maturities represents original cost, reduced by                            repayments and writedowns and adjusted for amortization of premiums or                            accretion of discount; for equity securities, cost represents original                            cost reduced by writedowns; for other limited partnership interests,                            cost represents original cost adjusted for equity in earnings and                            distributions. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007          |      |   | 2006   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | (In Millions) |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |      |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |      |   |   |   |
| Investment:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |      |   |   |   |
| Fixed maturities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |      |   |   |   |
| Available for sale, at estimated fair value (amortized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |          |      |   |   |   |
| cost of $26,683.9 and $28,192.9,                            respectively)                                                                                                                                  |   | $             | 26,838.9  |   |   | $      | 28,714.3 |   |
| Mortgage loans on real                            estate                                                                                                                          |   |          | 3,730.6   |   |   |   | 3,240.7 |   |
| Equity real                            estate                                                                                                                                     |   |          | 382.0     |   |   |   | 397.2 |   |
| Policy                            loans                                                                                                                                           |   |          | 3,692.6   |   |   |   | 3,651.8 |   |
| Investments in and loans to                            affiliates                                                                                                                 |   |          | 1,659.1   |   |   |   | 1,735.4 |   |
| Other equity                            investments                                                                                                                               |   |          | 1,520.3   |   |   |   | 1,316.2 |   |
| Other invested                            assets                                                                                                                                  |   |          | 996.0     |   |   |   | 865.7 |   |
| Total                            investments                                                                                                                                                               |   |          | 38,819.5  |   |   |   | 39,921.3 |   |
| Cash and cash                            equivalents                                                                                                                    |   |          | 513.5     |   |   |   | 478.9 |   |
| Deferred policy acquisition                            costs                                                                                                            |   |          | 8,992.3   |   |   |   | 8,286.3 |   |
| Amounts due from                            reinsurers                                                                                                                  |   |          | 1,773.0   |   |   |   | 1,614.5 |   |
| Other                            assets                                                                                                                                 |   |          | 2,495.7   |   |   |   | 2,558.9 |   |
| Loans to                            affiliates                                                                                                                          |   |          | 638.3     |   |   |   | 400.0 |   |
| Prepaid pension                            asset                                                                                                                        |   |          | 199.3     |   |   |   | 114.9 |   |
| Separate Accounts                            assets                                                                                                                     |   |          | 96,539.6  |   |   |   | 84,801.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |      |   |   |   |   |   |
| Total                            Assets                                                                                                                                 |   | $             | 149,971.2 |   |   | $      | 138,176.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |      |   |   |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |          |      |   |   |   |   |   |
| Policyholders’ account                            balances                                                                                                        |   | $             | 24,743.4  |   |   | $      | 26,021.8 |   |
| Future policy benefits and other policyholders liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          | 14,181.7  |   |   |   | 13,959.2 |   |
| Short-term and long-term                            debt                                                                                                                |   |          | 773.2     |   |   |   | 773.1 |   |
| Income taxes                            payable                                                                                                                         |   |          | 2,317.3   |   |   |   | 2,064.3 |   |
| Other                            liabilities                                                                                                                            |   |          | 1,230.0   |   |   |   | 1,074.0 |   |
| Separate Accounts                            liabilities                                                                                                                |   |          | 96,539.6  |   |   |   | 84,801.6 |   |
| Total                            liabilities                                                                                                                                                               |   |          | 139,785.2 |   |   |   | 128,694.0 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |      |   |   |   |   |   |
| SHAREHOLDER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |          |      |   |   |   |   |   |
| Common stock, $1.25 par value, 2.0 million shares authorized,                            issued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |          |      |   |   |   |   |   |
| and                            outstanding                                                                                                                                        |   |          | 2.5       |   |   |   | 2.5 |   |
| Capital in excess of par                            value                                                                                                               |   |          | 5,265.4   |   |   |   | 5,139.6 |   |
| Retained                            earnings                                                                                                                            |   |          | 5,186.0   |   |   |   | 4,507.6 |   |
| Accumulated other comprehensive                            loss                                                                                                         |   |          | (267.9    | )      |   |   | (167.3 | ) |
| Total shareholder’s                            equity                                                                                                                                                |   |          | 10,186.0  |   |   |   | 9,482.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |          |      |   |   |   |   |   |
| Total Liabilities and Shareholder’s                            Equity                                                                                             |   | $             | 149,971.2 |   |   | $      | 138,176.4 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                      2007 |          |   |  2006 |    |          | 2005   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------------|--------|------------|---------|---------------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  (In Millions)            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           |          |   |       |    |          |   |   |
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           |          |   |       |    |          |   |   |
| Universal                    life and investment-type product policy fee income                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                         |  2,741.6 |   |       | $  |  2,252.6 |   |   | $  |  1,888.1 |   |
| Premiums                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                           | 800.0         |   |       |    | 813.9         |   |   |   | 877.2 |   |
| Net investment income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           | 2,544.4       |   |       |    | 2,232.1       |   |   |   | 2,416.1 |   |
| Investment (losses) gains, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                           | (39.0         | )      |       |    | (4.0          | )      |   |   | 14.1 |   |
| Equity in earnings of subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                           | 345.5         |   |       |    | 308.7         |   |   |   | 236.2 |   |
| Commissions, fees and other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                           | 767.9         |   |       |    | 576.4         |   |   |   | 494.9 |   |
| Total revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                           | 7,160.4       |   |       |    | 6,179.7       |   |   |   | 5,926.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           |          |   |       |    |          |   |   |   |   |   |
| BENEFITS AND OTHER DEDUCTIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                           |          |   |       |    |          |   |   |   |   |   |
| Policyholders’                            benefits                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           | 1,993.5       |   |       |    | 1,956.0       |   |   |   | 1,862.8 |   |
| Interest credited to policyholders’ account balances                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                           | 1,044.4       |   |       |    | 1,061.3       |   |   |   | 1,044.5 |   |
| Compensation and benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           | 734.2         |   |       |    | 690.5         |   |   |   | 535.8 |   |
| Commissions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           | 1,835.3       |   |       |    | 1,474.9       |   |   |   | 1,243.9 |   |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                           | 48.8          |   |       |    | 47.6          |   |   |   | 52.8 |   |
| Amortization of deferred policy acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                           | 1,095.2       |   |       |    | 684.5         |   |   |   | 596.7 |   |
| Capitalization of deferred policy acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                           | (1,718.7      | )      |       |    | (1,363.0      | )      |   |   | (1,198.9 | ) |
| Rent expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                           | 47.4          |   |       |    | 41.3          |   |   |   | 45.2 |   |
| Amortization and depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                           | 65.8          |   |       |    | 70.4          |   |   |   | 67.6 |   |
| Premium taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                           | 41.5          |   |       |    | 37.2          |   |   |   | 35.3 |   |
| Other operating costs and                            expenses                                                                                                                                                                                                                                                                                                                                                                                                               |   |                           | 307.9         |   |       |    | 266.8         |   |   |   | 283.6 |   |
| Total benefits and other deductions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                           | 5,495.3       |   |       |    | 4,967.5       |   |   |   | 4,569.3 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                           |          |   |       |    |          |   |   |   |   |   |
| Earnings from continuing operations before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                           | 1,665.1       |   |       |    | 1,212.2       |   |   |   | 1,357.3 |   |
| Income tax                            expense                                                                                               |   |                           | (428.4        | )      |       |    | (164.7        | )      |   |   | (305.8 | ) |
| Earnings from continuing                            operations                                                                              |   |                           | 1,236.7       |   |       |    | 1,047.5       |   |   |   | 1,051.5 |   |
| Equity in (losses) earnings from discontinued operations, net of                            income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                           | (5.9          | )      |       |    | 31.2          |   |   |   | 22.3 |   |
| Equity in gains (losses) on sale of discontinued operations,net of income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                           | 2.8           |   |       |    | (1.9          | )      |   |   | - |   |
| Net                            Earnings                                                                                                     |   | $                              | 1,233.6       |   |       | $       | 1,076.8       |   |   | $ | 1,073.8 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2007          |        |   | 2006     |   |   |   | 2005     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------|--------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (In Millions) |        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Net                            earnings                                                                               | $      | 1,233.6       |        | $      | 1,076.8  |   |   | $      | 1,073.8  |   |
| Adjustments to reconcile net earnings to net cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |        |   |     |   |   |   |     |   |
| provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |          |        |   |     |   |   |   |     |   |
| Interest credited to policyholders’ account balances                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 1,044.4       |        |   | 1,061.3  |   |   |   | 1,044.5  |   |
| Universal life and investment-type policy fee income                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (2,741.6      | **)**  |   | (2,252.6 | )      |   |   | (1,888.1 | )      |
| Investment losses (gains)                            net                                                                                                                                                                                                                                                                                                                                                                                                        |   | 39.0          |        |   | 4.0      |   |   |   | (14.1    | )      |
| Equity in net earnings of subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (345.5        | **)**  |   | (309.5   | )      |   |   | (236.2   | )      |
| Dividends from subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 442.5         |        |   | 277.1    |   |   |   | 232.1    |   |
| Change in deferred policy acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | (623.5        | **)**  |   | (678.5   | )      |   |   | (602.2   | )      |
| Change in future policy benefits and other policyholderfunds                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 96.9          |        |   | 52.0     |   |   |   | 75.7     |   |
| Change in prepaid pension asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (2.3          | **)**  |   | 51.6     |   |   |   | (16.9    | )      |
| Change in fair value of guaranteed                                minimum                                incomebenefit                                 reinsurance contract                                                                                                                                                                                                                                                                                                                                       |   | (6.9          | **)**  |   | 14.8     |   |   |   | (42.6    | )      |
| Change in amounts due to (from) affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | (6.4          | **)**  |   | 125.1    |   |   |   | (32.1    | )      |
| Change in income tax payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 442.7         |        |   | 314.4    |   |   |   | 266.6    |   |
| Amortization and depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 71.7          |        |   | 95.7     |   |   |   | 94.6     |   |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 182.8         |        |   | 490.2    |   |   |   | 59.2     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Net cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | (172.6        | **)**  |   | 322.4    |   |   |   | 14.3     |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |        |   |     |   |   |   |     |   |
| Maturities and                            repayments                                                                            |   | 2,115.7       |        |   | 2,906.1  |   |   |   | 2,868.5  |   |
| Sales                                                                                                                           |   | 2,125.5       |        |   | 1,543.6  |   |   |   | 2,450.9  |   |
| Purchases                                                                                                                       |   | (3,397.0      | **)**  |   | (3,983.3 | )      |   |   | (5,827.2 | )      |
| Change in short-term investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | **107.0**     |        |   | 65.6     |   |   |   | 13.8     |   |
| Change in policy loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (40.7         | **)**  |   | (46.7    | )      |   |   | (0.2     | )      |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | (433.6        | **)**  |   | (445.4   | )      |   |   | (238.3   | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Net cash provided by (used in) investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 476.9         |        |   | 39.9     |   |   |   | (732.5   | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |          |        |   |     |   |   |   |     |   |
| Policyholders’ account balances:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |          |        |   |     |   |   |   |     |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 4,127.6       |        |   | 3,897.7  |   |   |   | 3,821.9  |   |
| Withdrawals and transfers to Separate Accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (3,812.8      | **)**  |   | (3,552.2 | )      |   |   | (2,757.6 | )      |
| Shareholder dividends paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (600.0        | **)**  |   | (600.0   | )      |   |   | (500.0   | )      |
| Repayment of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | -             |        |   | -        |   |   |   | (400.0   | )      |
| Increase in loans from affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | -             |        |   | -        |   |   |   | 325.0    |   |
| Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 15.5          |        |   | 4.5      |   |   |   | (1.9     | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Net cash (used in) provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (269.7        | **)**  |   | (250.0   | )      |   |   | 487.4    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Change in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 34.6          |        |   | 112.3    |   |   |   | (230.8   | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Cash and cash equivalents, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 478.9         |        |   | 366.6    |   |   |   | 597.4    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Cash and Cash Equivalents, End of Year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $      | 513.5         |        | $      | 478.9    |   |   | $      | 366.6    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          |        |   |     |   |   |   |     |   |
| Supplemental cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |          |        |   |     |   |   |   |     |   |
| Interest Paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | $      | 29.2          |        | $      | 27.8     |   |   | $      | 43.2     |   |
| Income Taxes Paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $      | 115.0         |        | $      | 77.3     |   |   | $      | 90.0     |   |

----

|                                                                                                                                                                              |   |                                                                                                                                       |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|---------|
| Segment                                                                                                                                                                           |   | Deferred                                Policy                                    Acquisition                                        Costs |    |                              Policyholders’                                Account                                    Balances |   | Future Policy                                Benefits                                    And Other                                        Policyholders’                                            Funds |   | Policy                                Charges                                    and                                        Premium                                            Revenue |   |   | (1)                                Net                                    Investment                                        Income |   |                              Policyholders’                                                        Benefits and                                                        Interest                                                        Credited |   |                                                  Amortization                                of Deferred                                    Policy                                        Acquisition                                            Costs |   |                              (2)                                Other                                    Operating                                        Expense |   |
|                                                                                                                                                                              |   | (In Millions)                                                                                                                              |
|                                                                                                                                                                              |   |                                                                                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance                             |   | $                                                                                                                                          | 9,019.3 |   | $ | 25,168.2 |   | $ | 14,304.7 |   | $ | 3,546.6 |   | $ | 2,548.4 |   | $ | 3,063.7 |   | $ | 1,099.2 |   | $ | 1,476.2 |   |
| Investment                                                                                                                                                                        |   |                                                                                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Management                                      |   |                                                                                                                                       | -       |   |   | - |   |   | - |   |   | - |   |   | 128.9 |   |   | - |   |   | - |   |   | 3,177.9 |   |
| Consolidation/                                                                                                                                                                    |   |                                                                                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| elimination                                     |   |                                                                                                                                       | -       |   |   | - |   |   | - |   |   | - |   |   | 17.7 |   |   | - |   |   | - |   |   | (91.4 | ) |
| Total                                                                    |   | $                                                                                                                                          | 9,019.3 |   | $ | 25,168.2 |   | $ | 14,304.7 |   | $ | 3,546.6 |   | $ | 2,695.0 |   | $ | 3,063.7 |   | $ | 1,099.2 |   | $ | 4,562.7 |   |

| (1)   | Net investment income is based upon specific identification of                            portfolios within segments. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (2)   | Operating expenses are principally incurred directly by a                            segment. |
|-----------------|-----------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                              |   |                                                                       |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|---------|
| Segment                                                                                                                                                                           |   | DeferredPolicyAcquisition                                            Costs |    |  Policyholders’Account                                        Balances |   | Future PolicyBenefitsAnd OtherPolicyholders’                                                Funds |   | PolicyChargesandPremium                                                Revenue |   |   | (1)NetInvestment                                            Income |   |                                                                                                   Policyholders’                                                                Benefits and                                                                Interest                                                                Credited |   | Amortizationof DeferredPolicyAcquisition                                            Costs |   |  (2)OtherOperating                                            Expense |   |
|                                                                                                                                                                              |   | (In Millions)                                                              |
|                                                                                                                                                                              |   |                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance                             |   | $                                                                          | 8,316.5 |   | $ | 26,439.0 |   | $ | 14,085.4 |   | $ | 3,070.5 |   | $ | 2,237.1 |   | $ | 3,043.0 |   | $ | 689.3 |   | $ | 1,352.7 |   |
| Investment                                                                                                                                                                        |   |                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Management                                      |   |                                                                       | -       |   |   | - |   |   | - |   |   | - |   |   | 134.2 |   |   | - |   |   | - |   |   | 2,812.7 |   |
| Consolidation/                                                                                                                                                                    |   |                                                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| elimination                                     |   |                                                                       | -       |   |   | - |   |   | - |   |   | - |   |   | 17.9 |   |   | - |   |   | - |   |   | (90.0 | ) |
| Total                                 |   | $                                                                          | 8,316.5 |   | $ | 26,439.0 |   | $ | 14,085.4 |   | $ | 3,070.5 |   | $ | 2,389.2 |   | $ | 3,043.0 |   | $ | 689.3 |   | $ | 4,075.4 |   |

| (1)   | Net investment income is based upon specific identification of                            portfolios within segments. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (2)   | Operating expenses are principally incurred directly by a                            segment. |
|-----------------|-----------------------------------------------------------------------------------------------|

----

| Segment                                                                                                                           |                                    |                              Policy                                Charges                                    and                                        Premium                                            Revenue |    |   | (1)                                Net                                    Investment                                        Income |   |    | Policyholders’                                Benefits and                                    Interest                                        Credited |   |   | Amortization                                of Deferred                                    Policy                                        Acquisition                                            Costs |   |   |                              (2)                                Other                                    Operating                                        Expense |   |
|-----------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                              |                      (In Millions) |
|                                                                                                                              |                                    |                                                                                                                                                                                                                     |    |   |                                                                                                                               |   |    |                                                                                                                                                         |   |   |                                                                                                                                                                                                  |   |   |                                                                                                                                                                   |   |
| Insurance                     |                                    | $                                                                                                                                                                                                                        | 2,771.0 |   |                                                                                                                               | $      | 2,415.1 |                                                                                                                                                         |   | $      | 2,925.3                                                                                                                                                                                               |   |   | $                                                                                                                                                                      | 601.3  |   |   | $ | 1,117.5 |   |
| Investment Management                                                                                                        |                                    |                                                                                                                                                                                                                     | -       |   |                                                                                                                               |   | 49.1    |                                                                                                                                                         |   |   | -                                                                                                                                                                                                     |   |   |                                                                                                                                                                   | -      |   |   |   | 2,340.8 |   |
| Consolidation/Elimination                                                            |                                    |                                                                                                                                                                                                                     | -       |   |                                                                                                                               |   | 17.6    |                                                                                                                                                         |   |   | -                                                                                                                                                                                                     |   |   |                                                                                                                                                                   | -      |   |   |   | (84.7 | ) |
| Total                                                                                          |                                    | $                                                                                                                                                                                                                        | 2,771.0 |   |                                                                                                                               | $      | 2,481.8 |                                                                                                                                                         |   | $      | 2,925.3                                                                                                                                                                                               |   |   | $                                                                                                                                                                      | 601.3  |   |   | $ | 3,373.6 |   |

| (1)   | Net investment income is based upon specific identification of                            portfolios within segments. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------|

| (2)   | Operating expenses are principally incurred directly by a                            segment. |
|-----------------|-----------------------------------------------------------------------------------------------|

----

|                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      | Assumed  |   |   |      |    | Percentage |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------|-----------------------|--------|-----------|-----------|--------|-----------|----------|--------|--------|-----------|---------|------------|---------|
|                                                                                                                                                                                                                                                        |                             |                  |   |      | Ceded to  |   |      | from     |   |   |      |    | of Amount  |    |
|                                                                                                                                                                                                                                                        |                      Gross  |                  |   | Other     |      |   | Other     |     |   | Net    |      | Assumed |       |
|                                                                                                                                                                                                                                                        |                      Amount |                  |   | Companies |      |   | Companies |     |   | Amount |      | to Net  |       |
|                                                                                                                                                                                                                                                        |                             | (Dollars In Millions) |   |
| 2007                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Life Insurance In-Force                                                                                                                                                                                                                                     | $                                | 319,395.8             |   | $         | 129,342.7 |   | $         | 42,201.0 |   | $      | 232,254.1 |    | 18.17      | %  |
|                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Premiums:                                                                                                                                                                                                                                                   |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Life insurance andannuities                                                                                                                                                                                                                                 | $                                | 735.1                 |   | $         | 159.7     |   | $         | 168.0    |   | $      | 743.4     |    | 22.60      | %  |
| Accident and health                                                                                                                                                                                                                                    |                             | 120.0                 |   |      | 83.5      |   |      | 25.0     |   |   | 61.5      |    | 40.65      | %  |
| Total                            Premiums                                    | $                           | 855.1                 |   | $         | 243.2     |   | $    | 193.0    |   |   | 804.9     |    | 23.99      | %  |
|                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| 2006                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Life Insurance In-Force                                                                                                                                                                                                                                     | $                           | 297,114.1             |   | $         | 113,545.9 |   | $    | 39,347.2 |   | $      | 222,915.4 |    | 17.66      | %       |
|                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Premiums:                                                                                                                                                                                                                                                   |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Life insurance                                and annuities                                                                                                                                                                                                 | $                           | 732.5                 |   | $         | 139.8     |   | $    | 163.7    |   | $      | 756.4     |    | 21.64      | %       |
| Accident and health                                                                                                                                                                                                                                         |                             | 126.1                 |   |      | 89.4      |   |      | 24.7     |   |   | 61.4      |    | 40.23      | %       |
| Total                            Premiums                                    | $                           | 858.6                 |   | $         | 229.2     |   | $    | 188.4    |   | $      | 817.8     |    | 23.04      | %       |
|                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| 2005                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Life Insurance In-Force                                                                                                                                                                                                                                     | $                           | 280,180.3             |   | $         | 100,893.7 |   | $    | 41,273.9 |   | $      | 220,560.5 |    | 18.71      | %       |
|                                                                                                                                                                                                                                                        |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Premiums:                                                                                                                                                                                                                                                   |                             |                  |   |      |      |   |      |     |   |   |      |    |       |    |
| Life insurance                                and annuities                                                                                                                                                                                            | $                           | 778.9                 |   | $         | 105.1     |   | $    | 143.8    |   | $      | 817.6     |    | 17.59      | %       |
| Accident and health                                                                                                                                                                                                                                         |                             | 133.7                 |   |      | 88.3      |   |      | 18.7     |   |   | 64.1      |    | 29.17      | %       |
| Total                            Premiums                                    | $                           | 912.6                 |   | $         | 193.4     |   | $    | 162.5    |   | $      | 881.7     |    | 18.43      | %       |
|                                                                                                                                                                                                                                                        |                             |                  |   |

| (A)   | Includes amounts related to the discontinued group life and health                            business. |
|-----------------|---------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2007           |   | 2006       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | (In Thousands) |   |
| Principal Accounting Fees and Services:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |           |   |
| Audit                            fees                                                                                           |           | $      | 19,470     |   |   | $ | 21,325 |   |
| Audit related                            fees                                                                                   |           |   | 2,626      |   |   |   | 2,187 |   |
| Tax                            fees                                                                                             |           |   | 2,158      |   |   |   | 1,845 |   |
| All other                            fees                                                                                       |           |   | 175        |   |   |   | 78 |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                | **$**  | **24,429** |        |  | $ | 25,435 |  |

----

|  | (A)   |   The following documents are filed as part of this report: |
|--|-----------------|------------------------------------------------------------------|

| 1.   | Financial Statements |
|----------------|----------------------|

| 2.   | Consolidated Financial Statement Schedules |
|----------------|--------------------------------------------|

| 3.   | Exhibits |
|----------------|----------|

----

| Date: | March 12, 2008 |   | AXA EQUITABLE LIFE INSURANCE COMPANY |
|-------|----------------|--------|--------------------------------------|

|   |   |   | By:    | /s/ Christopher M. Condron                                                                        |
|--------|--------|--------|--------|---------------------------------------------------------------------------------------------------|
|   |   |   | Name:  | Christopher M. Condron                                                                            |
|   |   |   |   | Chairman of the Board, President and Chief Executive Officer,                            Director |

|                       |   |                                       |   |                 |
|----------------------------|--------|--------------------------------------------|--------|----------------------|
| /s/ Christopher M. Condron |   | Chairman of the Board, President and Chief |   | March 12, 2008       |
| Christopher M. Condron     |   | Executive Officer, Director                |   |                 |
|                       |   |                                       |   |                 |
| /s/ Richard S. Dziadzio    |   | Executive Vice President and               |   | March 12, 2008       |
| Richard S. Dziadzio        |   | Chief Financial Officer                    |   |                 |
|                       |   |                                       |   |                 |
| /s/ Alvin H. Fenichel      |   | Senior Vice President and Controller       |   | March 12,  2008 |
| Alvin H. Fenichel          |   |                                       |   |                 |
|                       |   |                                       |   |                 |
| /s/ Henri de Castries      |   |  Director                             |   | March 12, 2008  |
| Henri de Castries          |   |                                       |   |                 |
|                       |   |                                       |   |                 |
| /s/ Bruce W. Calvert       |   | Director                                   |   | March 12, 2008  |
| Bruce W. Calvert           |   |                                       |   |                 |
|                       |   |                                       |   |                 |
| /s/ Denis Duverne          |   | Director                                   |   | March 12, 2008  |
| Denis Duverne              |   |                                       |   |                 |
|                       |   |                                       |   |                 |
| /s/ Charlynn Goins         |   | Director                                   |   | March 12, 2008  |
| Charlynn Goins             |   |                                       |   |                 |
|                       |   |                                       |   |                 |
| /s/Anthony J. Hamilton     |   | Director                                   |   | March 12, 2008  |
| Anthony J. Hamilton        |   |                                       |   |                 |
|                       |   |                                       |   |                 |
| /s/ Mary R. Henderson      |   | Director                                   |   | March 12, 2008  |
| Mary R. Henderson          |   |                                       |   |                 |
|                       |   |                                       |   |                 |
| /s/ James F. Higgins       |   | Director                                   |   | March 12, 2008  |
| James F. Higgins           |   |                                       |   |                 |

| /s/ Scott D. Miller  |   | Director |   | March 12, 2008 |
|----------------------|--------|----------|--------|---------------------|
| Scott D. Miller      |   |     |   |                |
|                 |   |     |   |                |
| /s/ Joseph H. Moglia |   | Director |   | March 12, 2008 |
| Joseph H. Moglia     |   |     |   |                |
|                 |   |     |   |                |
| /s/ Lorie A. Slutsky |   | Director |   | March 12, 2008 |
| Lorie A. Slutsky     |   |     |   |                |
|                 |   |     |   |                |
| /s/ Ezra Suleiman    |   | Director |   | March 12, 2008 |
| Ezra Suleiman        |   |     |   |                |
|                 |   |     |   |                |
| /s/ Peter J. Tobin   |   | Director |   | March 12, 2008 |
| Peter J. Tobin       |   |     |   |                |

----

|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   | Tag    |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Number |   | Description                                                                                                                                                                                                     |   | Method of Filing                                                                                                                                                                                              |   | Value  |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 2.1    |   | Stock Purchase Agreement dated as of August 30, 2000 among CSG, AXA,                            Equitable Life, AXA Participations Belgium and AXA Financial                                                    |   | Filed as Exhibit 2.1 to AXA Financial’s Current Report on Form                            8-K dated November 14, 2000 and incorporated herein by reference                                              |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 2.2    |   | Letter Agreement dated as of October 6, 2000 to the Stock Purchase                            Agreement among CSG, AXA, Equitable Life, AXA Participations Belgium                            and AXA Financial |   | Filed as Exhibit 2.2 to AXA Financial’s Current Report on Form                            8-K dated November 14, 2000 and incorporated herein by reference                                              |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 3.1    |   | Restated Charter of Equitable Life, as amended January 1, 1997                                                                                                                                                  |   | Filed as Exhibit 3.1(a) to registrant’s Annual Report on Form                            10-K for the year ended December 31, 1996 and incorporated herein by                            reference      |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 3.2    |   | Restated Charter of AXA Equitable, as amended December 6, 2004                                                                                                                                             |   | Filed as Exhibit 3.2 to registrant’s Annual Report on Form 10-K                            for the year ended December 31, 3004 and incorporated herein by                            reference         |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 3.3    |   | Restated By-laws of Equitable Life, as amended November 21, 1996                                                                                                                                                |   | Filed as Exhibit 3.2(a) to registrant’s Annual Report on Form                            10-K for the year ended December 31, 1996 and incorporated herein by                            reference      |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 10.1   |   | Cooperation Agreement, dated as of July 18, 1991, as amended among                            Equitable Life, AXA Financial and AXA                                                                             |   | Filed as Exhibit 10(d) to AXA Financial’s Form S-1 Registration                            Statement (No. 33-48115), dated May 26, 1992 and incorporated herein by                            reference |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 10.2   |   | Letter Agreement, dated May 12, 1992, among AXA Financial, Equitable                            Life and AXA                                                                                                    |   | Filed as Exhibit 10(e) to AXA Financial’s Form S-1 Registration                            Statement (No. 33-48115), dated May 26, 1992 and incorporated herein by                            reference |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 10.3   |   | Amended and Restated Reinsurance Agreement, dated as of March 29, 1990,                            between Equitable Life and First Equicor Life Insurance Company                                              |   | Filed as Exhibit 10(o) to AXA Financial’s Form S-1 Registration                            Statement (No. 33-48115), dated May 26, 1992 and incorporated herein by                            reference |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |
| 10.4   |   | Fiscal Agency Agreement between Equitable Life and The Chase Manhattan                            Bank, N.A.                                                                                                    |   | Filed as Exhibit 10.5 to registrant’s Annual Report on Form 10-K                            for the year ended December 31, 1995 and incorporated herein by                            reference        |   |   |
|   |   |                                                                                                                                                                                                            |   |                                                                                                                                                                                                          |   |   |

----

|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   | Tag     |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|
| Number |   | Description                                                                                                                                                                                              |   | Method of Filing                                                                                                                                                                                            |   | Value   |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 10.5   |   | Distribution and Servicing Agreement between AXA Advisors (as successor                            to Equico Securities, Inc.) and Equitable Life dated as of May 1,                            1994     |   | Filed as Exhibit 10.7 to the registrant’s Annual Report on Form                            10-K for the year ended December 31, 1999 and incorporated herein by                            reference  |   |    |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 10.6   |   | Agreement for Cooperative and Joint Use of Personnel, Property and                            Services between Equitable Life and AXA Advisors dated as of September                            21, 1999 |   | Filed as Exhibit 10.8 to the registrant’s Annual Report on Form                            10-K for the year ended December 31, 1999 and incorporated herein by                            reference  |   |    |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 10.7   |   | General Agent Sales Agreement between Equitable Life and AXA Network                            dated as of January 1, 2000                                                                              |   | Filed as Exhibit 10.9 to the registrant’s Annual Report on Form                            10-K for the year ended December 31, 1999 and incorporated herein by                            reference  |   |    |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 10.8   |   | Agreement for Services by Equitable Life to AXA Network dated as of                            January 1, 2000                                                                                           |   | Filed as Exhibit 10.10 to the registrant’s Annual Report on Form                            10-K for the year ended December 31, 1999 and incorporated herein by                            reference |   |    |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 13.1   |   | AllianceBernstein Risk Factors                                                                                                                                                                           |   | Filed herewith                                                                                                                                                                                              |   | EX-13.1 |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 21     |   | Subsidiaries of the registrant                                                                                                                                                                           |   | Omitted pursuant to General Instruction I of Form 10-K                                                                                                                                                      |   |    |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 31.1   |   | Section 302 Certification made by the registrant’s Chief                            Executive Officer                                                                                              |   | Filed herewith                                                                                                                                                                                              |   | EX-31.1 |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 31.2   |   | Section 302 Certification made by the registrant’s Chief                            Financial Officer                                                                                              |   | Filed herewith                                                                                                                                                                                              |   | EX-31.2 |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 32.1   |   | Section 906 Certification made by the registrant’s Chief                            Executive Officer                                                                                              |   | Filed herewith                                                                                                                                                                                              |   | EX-32.1 |
|   |   |                                                                                                                                                                                                     |   |                                                                                                                                                                                                        |   |    |
| 32.2   |   | Section 906 Certification made by the registrant’s Chief                            Financial Officer                                                                                              |   | Filed herewith                                                                                                                                                                                              |   | EX-32.2 |