SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    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, 1999.

Commission file number 333-16279, 333-77385
                       --------------------

            FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

           New York                                     13-3919096
---------------------------------           ------------------------------------
   (State or other jurisdiction             (I.R.S. Employer Identification No.)
of incorporation or organization)

   230 Park Avenue, Suite 966
       New York, New York                                10169-0999
---------------------------------           ------------------------------------
     (Address of principal                               (Zip Code)
        executive offices)

Registrant's Telephone Number, including area code : (212) 973-9647
                                                     --------------

Securities Registered Pursuant to Section 12(b) of the Act:

      TITLE OF EACH CLASS           NAME OF EACH EXCHANGE ON WHICH REGISTERED
             N/A
--------------------------------------------------------------------------------
Securities Registered Pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

Yes   X     No     .
    ----       ----

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation S-K (229.405 of this chapter) is not contained herein, and will
not be contained,  to the best of registrant's knowledge, in definitive proxy or
information  statements  incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [X].

As of March 27, 2000,  200,000 shares of Common Stock, $10 par value, are issued
and outstanding.

NOTE: WHEREAS FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK MEETS THE
CONDITIONS SET FORTH IN GENERAL  INSTRUCTION I (1)(a) AND (b) OF FORM 10-K, THIS
FORM IS BEING  FILED WITH THE  REDUCED  DISCLOSURE  FORMAT  PURSUANT  TO GENERAL
INSTRUCTIONS I (2).

DOCUMENTS INCORPORATED BY REFERENCE

See exhibit index - page 35.
                                                                    Page 1 of 36
<PAGE>


PART I

ITEM 1. BUSINESS.

OVERVIEW

First Golden  American  Life  Insurance  Company of New York ("First  Golden" or
"Company") is a stock life  insurance  company  organized  under the laws of the
State of New York. The Company was  incorporated on May 24, 1996 and is a wholly
owned life  insurance  subsidiary  of Golden  American  Life  Insurance  Company
("Golden  American").  Golden American is a wholly owned subsidiary of Equitable
of Iowa Companies,  Inc. ("EIC").  EIC is an indirect wholly owned subsidiary of
ING  Groep  N.V.,  a global  financial  services  holding  company  based in The
Netherlands.

First Golden was capitalized in December 1996. First Golden became licensed as a
life  insurance  company  under the laws of the State of New York on  January 2,
1997 and the State of  Delaware  on  December  23,  1997 and has since  received
regulatory product approvals to sell insurance  products in these states.  First
Golden offers variable annuity products.  See Note 8 of the financial statements
for further information regarding related party transactions.

PRODUCTS

The Company offers variable annuity products designed to meet customer needs for
tax-advantaged  saving for  retirement and  protection  from death.  The Company
believes longer life expectancies, an aging population, and growing concern over
the  stability  and  availability  of  the  Social  Security  system  have  made
retirement  planning a priority for many  Americans.  The target  market for all
products is consumers and corporations in New York and Delaware.

Variable  annuities  are  long-term  savings  vehicles  in  which  contractowner
premiums  (purchase  payments) are recorded and maintained in a fixed account or
variable  separate  account.  The variable  separate account is established as a
registered unit investment  trust. At December 31, 1999, funds on deposit in the
Company's variable annuity separate and fixed accounts totaled $47.2 million and
$7.6  million,  respectively.  Variable  annuities  provide the Company with fee
based  revenues  in  the  form  of  various  charges  and  fees  charged  to the
contractowner's  account.  Revenues  include  charges for  mortality and expense
risk, contract administration, and surrender charges.

Marketing   of  the  variable   products  in  New  York  is  primarily   through
broker/dealers.

BUSINESS ENVIRONMENT

The current business and regulatory  environment presents many challenges to the
insurance industry. The variable annuity competitive environment remains intense
and is  dominated  by a  number  of  large  highly  rated  insurance  companies.
Increasing  competition from traditional insurance carriers as well as banks and
mutual fund companies offers consumers many choices. However, overall demand for
variable  products  remains strong for several reasons  including:  strong stock
market  performance over the last four years;  relatively low interest rates; an
aging U. S. population that is increasingly  concerned about retirement,  estate
planning, and maintaining their standard of living in retirement;  and potential
reductions in government and employer-provided  benefits at retirement,  as well
as lower public confidence in the adequacy of those benefits.

REGULATION

The Company's  operations are conducted in a highly regulated  environment.  The
primary regulator of First Golden's  insurance  operations is the Superintendent
of  Insurance  for the State of New York.  The Company is also  regulated by the
Securities and Exchange  Commission  and the National  Association of Securities
Dealers,  Inc. See Item 7,  Management's  Discussion  and Analysis of Results of
Operations.



                                       2
<PAGE>



ITEM 2. PROPERTIES.

First Golden's business  operations are housed in leased  facilities  located at
230 Park  Avenue  in New  York,  New  York.  Property  and  equipment  primarily
represent leasehold  improvements,  office furniture,  and equipment and are not
considered to be significant to the Company's overall  operations.  Property and
equipment are reported at cost less allowances for depreciation.

ITEM 3. LEGAL PROCEEDINGS.

The Company, like other insurance companies,  may be named or otherwise involved
in lawsuits,  including  class action lawsuits and  arbitrations.  In some class
action and other  actions  involving  insurers,  substantial  damages  have been
sought and/or material  settlement or award payments have been made. The Company
currently  believes no pending or threatened  lawsuits or actions exist that are
reasonably likely to have a material adverse impact on the Company.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Information called for by this item is omitted pursuant to General Instruction I
(2) (c) of Form 10-K.

PART II.

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

The  Registrant is a wholly owned  subsidiary of Golden  American Life Insurance
Company. There is no public trading market for the Registrant's common stock.

First Golden is required to maintain a minimum total statutory-basis capital and
surplus of not less than $6 million under the  provisions of the insurance  laws
of the State of New York in which it is  presently  licensed  to sell  insurance
products.

Under the  provisions  of the  insurance  laws of the  State of New York,  First
Golden cannot distribute any dividends to its stockholder,  Golden American Life
Insurance  Company,  unless a notice of its intent to declare a dividend and the
amount of the dividend has been filed with the New York Insurance  Department at
least thirty days in advance of the proposed declaration.  If the Superintendent
of the New York  Insurance  Department  finds the  financial  condition of First
Golden does not warrant the distribution,  the Superintendent may disapprove the
distribution  by giving  written notice to First Golden within thirty days after
the filing.  First Golden did not pay common stock dividends  during 1999, 1998,
or 1997.

ITEM 6. SELECTED FINANCIAL DATA.

Information called for by this item is omitted pursuant to General Instruction I
(2) (a) of Form 10-K.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS.

The purpose of this section is to discuss and analyze First Golden American Life
Insurance  Company of New York's ("First  Golden" or the  "Company")  results of
operations.  In addition,  some  analysis and  information  regarding  financial
condition and liquidity and capital  resources is also  provided.  This analysis
should be read jointly with the financial  statements,  related  notes,  and the
Cautionary  Statement  Regarding   Forward-Looking   Statements,   which  appear
elsewhere in this report.



                                       3
<PAGE>



RESULTS OF OPERATIONS
---------------------

MERGER

On October 23, 1997,  Equitable of Iowa  Companies'  ("Equitable")  shareholders
approved an Agreement and Plan of Merger ("Merger Agreement") dated July 7, 1997
among Equitable,  PFHI Holdings,  Inc. ("PFHI"),  and ING Groep N.V. ("ING"). On
October 24, 1997, PFHI, a Delaware corporation,  acquired all of the outstanding
capital stock of Equitable  according to the Merger Agreement.  PFHI is a wholly
owned  subsidiary of ING, a global  financial  services holding company based in
The  Netherlands.  Equitable,  an  Iowa  corporation,  in  turn,  owned  all the
outstanding capital stock of Equitable Life Insurance Company of Iowa and Golden
American Life Insurance Company ("Golden American" or "Parent") and their wholly
owned  subsidiaries.  In addition,  Equitable owned all the outstanding  capital
stock of Locust Street Securities,  Inc., Equitable  Investment  Services,  Inc.
(subsequently  dissolved),  Directed Services, Inc., Equitable of Iowa Companies
Capital Trust,  Equitable of Iowa  Companies  Capital Trust II, and Equitable of
Iowa  Securities  Network,  Inc.  (subsequently  renamed ING Funds  Distributor,
Inc.).  In exchange for the  outstanding  capital stock of  Equitable,  ING paid
total  consideration of approximately $2.1 billion in cash and stock and assumed
approximately  $400 million in debt. As a result of this transaction,  Equitable
was  merged  into  PFHI,  which was  simultaneously  renamed  Equitable  of Iowa
Companies, Inc. ("EIC"), a Delaware corporation.

For financial statement  purposes,  the change in control of the Company through
the ING merger was accounted for as a purchase  effective October 25, 1997. This
merger resulted in a new basis of accounting reflecting estimated fair values of
assets and liabilities at the merger date. As a result, the Company's  financial
statements  for  the  periods  after  October  24,  1997  are  presented  on the
Post-Merger  new basis of accounting.  The financial  statements for October 24,
1997 and prior periods are presented on the Pre-Merger  historical cost basis of
accounting.

The purchase price was allocated to EIC and its subsidiaries  with $25.9 million
allocated  to the  Company.  Goodwill of $1.4  billion was  established  for the
excess of the merger cost over the fair value of the assets and  liabilities  of
EIC with $96,000  attributed to the Company.  Goodwill resulting from the merger
is being  amortized over 40 years on a straight-line  basis.  The carrying value
will be reviewed periodically for any indication of impairment in value.

PREMIUMS

The Company  reported  variable  annuity  premiums of $11.7 million for the year
ended  December 31, 1999 and $29.2 million for the year ended December 31, 1998.
This decrease was mainly due to the  discontinuance of a sales relationship with
a  distributor  that sold 62.1% of the  Company's  products  during  1998.  This
distributor  discontinued  the  sales  relationship  as of  July,  1999  for new
business.

For the Company's  variable  contracts,  premiums  collected are not reported as
revenues, but as deposits to insurance liabilities.  Revenues for these products
are recognized over time in the form of investment spread and product charges.

Premiums,  net of  reinsurance,  for variable  products  from three  significant
broker/dealers,  each having at least ten percent of total  sales,  for the year
ended December 31, 1999 totaled $10.6 million,  or 90.6% of premiums compared to
$27.5 million, or 94.4% from three significant broker/dealers for the year ended
December 31, 1998.

REVENUES

Product charges from variable annuities totaled $556,000 in 1999 and $239,000 in
1998.  This  increase  is due to higher  account  balances  associated  with the
Company's fixed account and separate account options.  Net investment income was
$2.1 million for the year ended December 31, 1999. This was an increase of 16.4%
compared to net  investment  income of $1.8 million for the year ended  December
31,  1998.  The  Company  recognized  realized  losses of  $166,000  during 1999
compared to a realized gain of $24,000 from the sale of investments during 1998.



                                       4
<PAGE>



EXPENSES

The Company  reported total insurance  benefits and expenses of $1.2 million for
the year ended  December 31, 1999 and  $830,000 for the year ended  December 31,
1998.  Insurance benefits and expenses consisted of interest credited to account
balances,  benefit claims incurred in excess of account  balances,  commissions,
general expenses,  insurance taxes,  state licenses,  and fees,  amortization of
deferred policy acquisition expenses, goodwill, and value of purchased insurance
in force, net of deferred policy acquisition costs. Interest credited to account
balances was  $590,000  and  $376,000 for the years ended  December 31, 1999 and
December  31,  1998,  respectively.  This  increase is  primarily  due to higher
average  account  balances  associated  with the Company's  fixed account option
within the variable product.

Commissions,  general expenses,  and insurance taxes,  state licenses,  and fees
were $697,000, $362,000 and $128,000,  respectively, for the year ended December
31, 1999. For the year ended December 31, 1998,  commissions,  general expenses,
and insurance taxes,  state licenses,  and fees were $1.8 million,  $834,000 and
$44,000,  respectively.  Most  costs  incurred  as the result of sales have been
deferred, thus having very little impact on current earnings.

The Company's  deferred policy  acquisition costs ("DPAC") was eliminated and an
asset of $132,000  representing  value of purchased  insurance in force ("VPIF")
was established  for policies in force at the merger date. The Company  deferred
$879,000 of expenses  associated with the sale of variable annuity contracts for
the year ended December 31, 1999. Expenses of $2.3 million were deferred for the
year  ended  December  31,  1998.  These  acquisition  costs  are  amortized  in
proportion to the expected gross profits.  Amortization of DPAC was $201,000 and
$76,000  for the years  ended  December  31,  1999 and 1998,  respectively.  The
amortization of VPIF was $35,000 for the year ended December 31, 1999 and $8,000
for the year ended December 31, 1998. During 1999 and 1998, VPIF was adjusted to
increase amortization by $3,000 and $6,000, respectively,  to reflect changes in
the assumptions related to the timing of future gross profits.  Based on current
conditions  and  assumptions  as to the  impact  of future  events  on  acquired
policies in force, the expected approximate net amortization relating to VPIF as
of December 31, 1999 is $12,000 in 2000, $10,000 in 2001, $9,000 in 2002, $8,000
in 2003, and $7,000 in 2004. Actual  amortization may vary based upon changes in
assumptions and experience.

INCOME

Net  income for the year  ended  December  31,  1999 was  $811,000.  This was an
increase of $36,000 from net income for the year ended December 31, 1998.

Comprehensive  loss for 1999 was  $452,000,  a decrease  of  approximately  $1.5
million from $1.0 million for 1998.

FINANCIAL CONDITION
-------------------

RATINGS

Currently,  the Company's  ratings are A+ by A.M.  Best  Company,  AAA by Duff &
Phelps  Credit  Rating  Company,  and AA+ by Standard & Poor's  Rating  Services
("Standard & Poor's").

INVESTMENTS

First Golden's  assets are invested in accordance with  applicable  laws.  These
laws govern the nature and the quality of  investments  that may be made by life
insurance  companies and the percentage of their assets that may be committed to
any particular type of investment.  In general,  these laws permit  investments,
within specified limits subject to certain  qualifications,  in federal,  state,
and municipal  obligations,  corporate bonds,  preferred or common stocks,  real
estate mortgages, real estate, and certain other investments.

First Golden purchases investments in accordance with investment guidelines that
take into account investment quality, liquidity, and diversification and invests
primarily in investment  grade  securities.  All of First Golden's assets except
for variable separate account assets are available to meet its obligations under
the contracts.


                                       5
<PAGE>


All of the  Company's  investments  are  carried at fair value in the  Company's
financial  statements.  The  decrease  in the  carrying  value of the  Company's
investment  portfolio  was due to changes in  unrealized  depreciation  of fixed
maturities.  The Company manages the growth of insurance  operations in order to
maintain adequate capital ratios.

FIXED MATURITIES: At December 31, 1999, the Company had fixed maturities with an
amortized  cost of $29.2 million and an estimated  fair value of $28.1  million.
The  Company  classifies  100% of its  securities  as  available  for sale.  Net
unrealized  depreciation  on fixed  maturities  of $1.1  million  was  comprised
entirely  of  gross  depreciation.   Net  unrealized  holding  losses  on  these
securities,  net of adjustments  for VPIF,  DPAC,  and deferred  income taxes of
$603,000 was included in stockholder's equity at December 31, 1999.

The  individual  securities  in the  Company's  fixed  maturities  portfolio (at
amortized cost) include  investment grade securities,  which include  securities
issued by the U. S. government, its agencies, and corporations that are rated at
least A- by Standard & Poor's ($18.6  million or 63.6%),  that are rated BBB+ to
BBB- by Standard & Poor's ($9.1 million or 31.1%),  and below  investment  grade
securities which are securities issued by corporations that are rated BB+ to BB-
by Standard & Poor's ($1.5 million or 5.3%).

Fixed  maturities rated BBB+ to BBB- may have  speculative  characteristics  and
changes in economic conditions or other circumstances are more likely to lead to
a weakened  capacity of the issuer to make principal and interest  payments than
is the case with higher rated fixed maturities.  The Company intends to purchase
additional  below  investment  grade  securities,  but it does  not  expect  the
percentage  of its  portfolio  invested in such  securities to exceed 10% of its
investment  portfolio.  At December 31, 1999, the yield at amortized cost on the
Company's  below  investment  grade  portfolio was 7.3% compared to 6.7% for the
Company's  investment grade corporate bond portfolio.  The Company estimates the
fair value of its below investment grade portfolio was $1.4 million, or 94.0% of
amortized cost value, at December 31, 1999.

Below investment grade securities have different characteristics than investment
grade  corporate debt  securities.  Risk of loss upon default by the borrower is
significantly  greater with respect to below  investment  grade  securities than
with other corporate debt  securities.  Below  investment  grade  securities are
generally unsecured and are often subordinated to other creditors of the issuer.
Also, issuers of below investment grade securities usually have higher levels of
debt and are more sensitive to adverse economic conditions,  such as a recession
or increasing  interest rates,  than are issuers of investment grade securities.
The Company  attempts to reduce the overall risk in its below  investment  grade
portfolio, as in all of its investments, through careful credit analysis, strict
investment policy guidelines, and diversification by company and by industry.

The Company analyzes its investment portfolio,  including below investment grade
securities, at least quarterly in order to determine if the Company's ability to
realize  the  carrying  value  on any  investment  has been  impaired.  For debt
securities,  if impairment  in value is  determined  to be other than  temporary
(i.e.,  if it is probable  the Company will be unable to collect all amounts due
according  to the  contractual  terms of the  security),  the cost  basis of the
impaired  security  is written  down to fair value,  which  becomes the new cost
basis.  The amount of the write-down is included in earnings as a realized loss.
Future events may occur,  or additional or updated  information may be received,
which  may  necessitate  future  write-downs  of  securities  in  the  Company's
portfolio.  Significant  write-downs in the carrying value of investments  could
materially adversely affect the Company's net income in future periods.

During  the year  ended  December  31,  1999,  the  amortized  cost basis of the
Company's fixed maturities portfolio was reduced by $10.8 million as a result of
sales,  maturities,  and scheduled principal  repayments.  In total, net pre-tax
losses from sales, calls, and scheduled principal repayments of fixed maturities
amounted to $166,000 in 1999.



                                       6
<PAGE>



At December 31, 1999, no fixed  maturities  were deemed to have  impairments  in
value that are other than  temporary.  At December 31, 1999,  the Company had no
investment in default.  The Company's fixed maturities  portfolio had a combined
yield at amortized cost of 6.5% at December 31, 1999.

OTHER ASSETS

DPAC  represents  certain  deferred  costs of acquiring new insurance  business,
principally  first year  commissions  and  interest  bonuses and other  expenses
related to the production of new business  after the merger.  The Company's DPAC
was eliminated as of the merger date and an asset of $132,000  representing VPIF
was  established for all policies in force at the merger date. VPIF is amortized
into income in proportion to the expected  gross profits of in force acquired in
a manner similar to DPAC amortization. Any expenses which vary directly with the
sales of the  Company's  products are deferred  and  amortized.  At December 31,
1999,  the Company had VPIF and DPAC  balances  of  $102,000  and $3.2  million,
respectively.

Goodwill totaling $96,000,  representing the excess of the acquisition cost over
the fair value of net  assets  acquired,  was  established  at the merger  date.
Accumulated  amortization of goodwill as of December 31, 1999 was  approximately
$5,000.

At December 31, 1999,  the Company had $47.2 million of separate  account assets
compared to $26.7 million at December 31, 1998. The increase in separate account
assets resulted from market appreciation, increased transfer activity, and sales
of the Company's variable products, net of redemptions.

At December 31, 1999, the Company had total assets of $83.1 million, an increase
of 25.8% over total assets at December 31, 1998.

LIABILITIES

Future policy benefits  decreased $3.2 million during 1999 to $7.6 million,  due
to  net  reallocations  to  the  Company's  separate  account.  Policy  reserves
represent the premiums  received plus  accumulated  interest less  mortality and
administration  charges.  At December 31, 1999, the Company had $47.2 million of
separate account liabilities. This is an increase of 76.7% over separate account
liabilities  as of  December  31,  1998,  and is  primarily  related  to  market
appreciation,  increased transfer activity,  and sales of the Company's variable
annuity products, net of redemptions.

Other liabilities decreased $187,000 during 1999. The decrease results primarily
due to a decrease in outstanding checks and accounts payable.

The Company's total liabilities  increased $17.3 million,  or 45.0%, during 1999
and totaled  $56.4  million at December 31, 1999.  The increase is primarily the
result of an increase in separate account liabilities.

The effects of inflation and changing prices on the Company's financial position
are not material  since  insurance  assets and  liabilities  are both  primarily
monetary and remain in balance.  An effect of  inflation,  which has been low in
recent years, is a decline in  stockholder's  equity when monetary assets exceed
monetary liabilities.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

Liquidity  is the ability of the Company to  generate  sufficient  cash flows to
meet  the  cash  requirements  of  its  operating,   investing,   and  financing
activities.  The  Company's  principal  sources  of cash  are  variable  annuity
premiums and product  charges,  investment  income,  and  maturing  investments.
Primary uses of these funds are payments of commissions and operating  expenses,
investment purchases, as well as withdrawals and surrenders.

Net cash provided by operating  activities  was $892,000 in 1999 compared to net
cash used in  operations of $307,000 in 1998.  The  operating  cash flows result
primarily from an increase in annuity product  charges,  net investment  income,
and decreased commission expense.



                                       7
<PAGE>



Net cash  provided  by  investing  activities  was $1.9  million  during 1999 as
compared to $6.3 million net cash used in  investing  activities  in 1998.  This
increase is primarily due to greater net sales of fixed maturities. Net sales of
fixed  maturities  were $1.0  million  in 1999  versus  net  purchases  of fixed
maturities of $3.9 million in 1998.

Net cash used in financing  activities  was $3.7 million during 1999 as compared
to net cash provided by financing  activities  of $8.0 million  during the prior
year. In 1999,  net cash used in financing  activities was impacted by net fixed
account  deposits of $780,000  compared to $8.8 million in 1998.  The change was
also impacted by net  reallocations  to the Company's  separate  account,  which
increased to $4.6 million from $872,000 during the prior year.

The Company's  liquidity  position is managed by maintaining  adequate levels of
liquid assets,  such as cash or cash  equivalents  and  short-term  investments.
Additional sources of liquidity include borrowing  facilities to meet short-term
cash requirements.  The Company has a $10.0 million revolving note facility with
SunTrust  Bank,  Atlanta,  which expires on July 31, 2000.  Management  believes
these sources of liquidity are adequate to meet the  Company's  short-term  cash
obligations.

First Golden believes it will be able to fund the capital required for projected
new business  primarily with existing  capital and future capital  contributions
from  its  Parent.   First  Golden  expects  to  continue  to  receive   capital
contributions from Golden American,  if necessary.  It is ING's policy to ensure
adequate  capital  and surplus is provided  for the Company  and, if  necessary,
additional funds will be contributed.

The Golden American Board of Directors has agreed by resolution to provide funds
as needed  for the  Company to  maintain  policyholders'  surplus  that meets or
exceeds the greater of: (1) the minimum capital adequacy standards to maintain a
level of capitalization  necessary to meet A.M. Best Company's  guidelines for a
rating one level less than the one  originally  given to First Golden or (2) the
New York State Insurance  Department  risk-based capital minimum requirements as
determined in accordance with New York statutory accounting principles. No funds
were  transferred  from Golden  American in 1998 or 1999.  On January 31,  2000,
Golden  American  provided a cash capital  contribution of $2.1 million to First
Golden.

First Golden's  principal office is located in New York, New York, where certain
of the Company's  records are maintained.  The 2,568 square feet of office space
is leased through 2001.

First  Golden is required to maintain a minimum  capital and surplus of not less
than $6 million under the  provisions of the insurance  laws of the State of New
York.

Under the  provisions  of the  insurance  laws of the  State of New York,  First
Golden cannot  distribute  any dividends to its  stockholder,  Golden  American,
unless a notice  of its  intent  to  declare a  dividend  and the  amount of the
dividend has been filed with the New York  Insurance  Department at least thirty
days in advance of the proposed  declaration.  If the  Superintendent of the New
York Insurance Department finds the financial condition of First Golden does not
warrant the distribution,  the Superintendent may disapprove the distribution by
giving written  notice to the Company  within thirty days after the filing.  The
management of First Golden does not  anticipate  paying  dividends to its Parent
during 2000.

The NAIC's  risk-based  capital  requirements  require  insurance  companies  to
calculate  and report  information  under a risk-based  capital  formula.  These
requirements  are  intended  to  allow  insurance   regulators  to  monitor  the
capitalization  of insurance  companies based upon the type and mixture of risks
inherent in a company's  operations.  The formula includes  components for asset
risk, liability risk, interest rate exposure, and other factors. The Company has
complied with the NAIC's  risk-based  capital  reporting  requirements.  Amounts
reported indicate the Company has total adjusted capital well above all required
capital levels.

VULNERABILITY  FROM  CONCENTRATIONS:  First Golden's  operations  consist of one
business  segment,  the sale of variable annuity  products.  First Golden is not
dependent upon any single customer,  however, three broker/dealers accounted for
a significant portion of its sales volume in 1999. One distributor sold 62.1% of
the  Company's  products  in  1998.  This  distributor  discontinued  the  sales
relationship as of July, 1999 for new business.  All premiums are generated from
consumers and corporations in the states of New York and Delaware.



                                       8
<PAGE>


REINSURANCE: At December 31, 1999, First Golden had a reinsurance treaty with an
unaffiliated  reinsurer  covering a significant  portion of the mortality  risks
under its  variable  contracts.  First Golden  remains  liable to the extent its
reinsurer does not meet its obligation under the reinsurance agreement.

The reinsurance  treaty that covered the nonstandard  minimum  guaranteed  death
benefits for new business has been terminated for business issued after December
31, 1999. The Company is currently pursuing alternative reinsurance arrangements
for new business issued after December 31, 1999.  There can be no assurance that
such  alternative  arrangements  will be  available.  Any  reinsurance  covering
business in force at December 31, 1999 will continue to apply in the future.

IMPACT OF YEAR  2000:  In prior  years,  the  Company  discussed  the nature and
progress of Golden  American's  plans for the Company to become Year 2000 ready.
In late 1999, Golden American completed remediation and testing of the Company's
systems. As a result of those planning and implementation  efforts,  the Company
experienced  no  significant   disruptions  in  mission   critical   information
technology  and  non-information  technology  systems and believes those systems
successfully  responded to the Year 2000 date change.  Golden American  incurred
all expenses during 1999 in connection with  remediating the Company's  systems.
The  Company  is not aware of any  material  problems  resulting  from Year 2000
issues,  either with its  products,  its internal  systems,  or the products and
services  of third  parties.  Golden  American  will  continue  to  monitor  the
Company's  mission  critical  computer  applications  and those of suppliers and
vendors  throughout  the Year 2000 to ensure that any latent  Year 2000  matters
that may arise are addressed promptly.

MARKET RISK AND RISK MANAGEMENT
-------------------------------

Asset/liability  management  is  integrated  into many aspects of the  Company's
operations,  including investment decisions,  product development, and crediting
rates determination.  As part of its risk management process, different economic
scenarios  are  modeled,  including  cash flow testing  required  for  insurance
regulatory  purposes,  to determine  that  existing  assets are adequate to meet
projected liability cash flows. Key variables include contractowner behavior and
the variable separate account's performance.

Contractowners bear the majority of the investment risks related to the variable
annuity  products.   Therefore,   the  risks  associated  with  the  investments
supporting the variable separate account are assumed by  contractowners,  not by
the Company (subject to, among other things,  certain minimum  guarantees).  The
Company's  products also provide  certain  minimum death benefits that depend on
the  performance  of the variable  separate  account.  Currently the majority of
death  benefit  risks are  reinsured,  which  protects  the Company from adverse
mortality experience and prolonged capital market decline.

A surrender,  partial withdrawal,  transfer,  or annuitization made prior to the
end of a  guarantee  period  from the fixed  account  may be subject to a market
value adjustment.  As the liabilities in the fixed account are subject to market
value  adjustment,  the Company  does not face a material  amount of market risk
volatility.   The  fixed  account  liabilities  are  supported  by  a  portfolio
principally  composed of fixed rate investments  that can generate  predictable,
steady rates of return. The portfolio  management strategy for the fixed account
considers the assets  available for sale. This enables the Company to respond to
changes  in market  interest  rates,  changes  in  prepayment  risk,  changes in
relative values of asset sectors and individual securities and loans, changes in
credit quality outlook,  and other relevant factors.  The objective of portfolio
management is to maximize returns,  taking into account interest rate and credit
risks,  as  well  as  other  risks.  The  Company's  asset/liability  management
discipline  includes  strategies to minimize  exposure to loss as interest rates
and economic and market conditions change.

On the  basis of  these  analyses,  management  believes  there  is no  material
solvency  risk to the Company.  With respect to a 10% drop in equity values from
year end 1999 levels,  variable  separate account funds,  which represent 86% of
the in force,  pass the risk in underlying fund performance to the contractowner
(except for certain minimum guarantees). With respect to interest rate movements
up or down 100 basis points from year end 1999 levels,  the remaining 14% of the
in force are fixed  account  funds and  almost all of these  have  market  value
adjustments  which provide  significant  protection  against changes in interest
rates.



                                       9
<PAGE>


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
---------------------------------------------------------

Any forward-looking  statements contained herein or in any other oral or written
statement  by the Company or any of its  officers,  directors,  or  employees is
qualified by the fact that actual  results of the Company may differ  materially
from such  statement,  among  other  risks  and  uncertainties  inherent  in the
Company's business, due to the following important factors:

1.   Prevailing  interest  rate levels and stock market  performance,  which may
     affect the ability of the Company to sell its  products,  the market  value
     and liquidity of the Company's investments, fee revenue, and the lapse rate
     of the Company's policies, notwithstanding product design features intended
     to enhance persistency of the Company's products.

2.   Changes in the federal  income tax laws and  regulations,  which may affect
     the tax status of the Company's products.

3.   Changes in the regulation of financial  services,  including bank sales and
     underwriting  of  insurance  products,  which may  affect  the  competitive
     environment for the Company's  products.

4.   Increasing competition in the sale of the Company's products.

5.   Other factors that could affect the performance of the Company,  including,
     but not limited to, market conduct claims,  litigation,  insurance industry
     insolvencies,  availability  of  competitive  reinsurance  on new business,
     investment  performance  of  the  underlying  portfolios  of  the  variable
     products,  variable product design, and sales volume by significant sellers
     of the Company's variable products.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The matters set forth under the caption  "Market  Risk and Risk  Management"  in
Management's  Discussion  and Analysis of Results of Operations  (Item 7 of this
report) are incorporated herein by reference.



                                       10
<PAGE>


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

REPORT OF INDEPENDENT AUDITORS

--------------------------------------------------------------------------------

The Board of Directors and Stockholder
First Golden American Life Insurance Company of New York

We have audited the  accompanying  balance sheets of First Golden  American Life
Insurance  Company of New York as of December 31, 1999 and 1998, and the related
statements of operations,  changes in stockholder's  equity,  and cash flows for
the years ended  December 31, 1999 and 1998 and for the periods from October 25,
1997 through December 31, 1997 and January 1, 1997 through October 24, 1997. Our
audits also included the financial  statement  schedules  listed in the Index at
Item 14(a).  These financial  statements and schedules are the responsibility of
the Company's  management.  Our responsibility is to express an opinion on these
financial statements and schedules based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable  assurance about whether the financial  statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting  the amounts and  disclosures in the financial  statements.  An audit
also includes assessing the accounting principles used and significant estimates
made by  management,  as well as  evaluating  the  overall  financial  statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the  financial  position of First Golden  American Life
Insurance  Company of New York at December 31, 1999 and 1998, and the results of
its operations and its cash flows for the years ended December 31, 1999 and 1998
and for the periods from October 25, 1997 through  December 31, 1997 and January
1, 1997 through  October 24, 1997,  in  conformity  with  accounting  principles
generally  accepted in the United  States.  Also,  in our  opinion,  the related
financial  statement  schedules,  when  considered  in  relation  to  the  basic
financial  statements taken as a whole,  present fairly in all material respects
the information set forth therein.

                                     s/Ernst & Young LLP

Des Moines, Iowa
February 4, 2000



                                       11
<PAGE>
<TABLE>
<CAPTION>



                                                           BALANCE SHEETS
                                            (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

                                                                                          POST-MERGER
                                                                       ---------------------------------------------------
                                                                          December 31, 1999         December 31, 1998
                                                                       ------------------------- -------------------------
<S>                                                                              <C>                       <C>
  ASSETS

  Investments:
    Fixed maturities, available for sale, at fair value
       (Cost: 1999 - $29,178; 1998 - $30,431).....................               $28,095                   $30,994
    Short-term investments........................................                 2,309                     3,231
                                                                       ------------------------- -------------------------
  Total investments...............................................                30,404                    34,225

  Cash and cash equivalents.......................................                 1,026                     1,932

  Due from affiliates.............................................                   539                        37

  Accrued investment income.......................................                   443                       414

  Deferred policy acquisition costs...............................                 3,198                     2,347

  Value of purchased insurance in force...........................                   102                       117

  Property and equipment, less allowances for
     depreciation of $31 in 1999 and $16 in 1998..................                    41                        48

  Goodwill, less accumulated amortization of $5 in
     1999 and $3 in 1998..........................................                    91                        93

  Current income taxes recoverable................................                    --                        89

  Other assets....................................................                    19                        15

  Separate account assets.........................................                47,215                    26,717
                                                                       ------------------------- -------------------------
  Total assets....................................................               $83,078                   $66,034
                                                                       ========================= =========================












</TABLE>

See accompanying notes.


                                                                 12
<PAGE>


<TABLE>
<CAPTION>

                                                     BALANCE SHEETS - CONTINUED
                                            (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)

                                                                                          POST-MERGER
                                                                       ---------------------------------------------------
                                                                          December 31, 1999         December 31, 1998
                                                                       ------------------------- -------------------------
<S>                                                                               <C>                       <C>
  LIABILITIES AND STOCKHOLDER'S EQUITY

  Policy liabilities and accruals:
     Future policy benefits:
       Annuity products...........................................                 $7,583                   $10,830
  Current income taxes payable....................................                    557                        --
  Deferred income tax liability...................................                    610                       850
  Revolving note payable..........................................                    100                        --
  Due to affiliates...............................................                     32                        17
  Other liabilities...............................................                    323                       510
  Separate account liabilities....................................                 47,215                    26,717
                                                                       ------------------------- -------------------------
                                                                                   56,420                    38,924


  Commitments and contingencies

  Stockholder's equity:
     Preferred stock, par value $5,000 per share,
       authorized 6,000 shares....................................                     --                        --
     Common stock, par value $10 per share, authorized,
       issued, and outstanding 200,000 shares.....................                  2,000                     2,000
     Additional paid-in capital...................................                 23,936                    23,936
     Accumulated other comprehensive income (loss)................                   (927)                      336
     Retained earnings............................................                  1,649                       838
                                                                       ------------------------- -------------------------
  Total stockholder's equity......................................                 26,658                    27,110
                                                                       ------------------------- -------------------------
  Total liabilities and stockholder's equity......................                $83,078                   $66,034
                                                                       ========================= =========================
</TABLE>



















See accompanying notes.



                                                                 13
<PAGE>


<TABLE>
<CAPTION>

                                                      STATEMENTS OF OPERATIONS
                                                       (DOLLARS IN THOUSANDS)



                                                                            POST-MERGER                       |   PRE-MERGER
                                                       ------------------------------------------------------------------------
                                                                                              For the period  | For the period
                                                                                                 October 25,  |     January 1,
                                                            For the year      For the year              1997  |           1997
                                                                   ended             ended           through  |        through
                                                            December 31,      December 31,      December 31,  |    October 24,
                                                                    1999              1998              1997  |           1997
                                                       ------------------------------------------------------------------------
<S>                                                              <C>                <C>                <C>             <C>
  Revenues                                                                                                    |
    Annuity product charges........................                $556               $239               $8   |            $4
    Net investment income..........................               2,147              1,844              286   |         1,449
    Realized gains (losses) on investments.........                (166)                24                1   |            --
    Other income...................................                  63                 --               --   |            --
                                                       ------------------------------------------------------------------------
                                                                  2,600              2,107              295   |         1,453
                                                                                                              |
  Insurance benefits and expenses:                                                                            |
    Annuity benefits:                                                                                         |
       Interest credited to account balances.......                 590                376               26   |            48
       Benefit claims incurred in excess of account                                                           |
         balances..................................                  72                 --               --   |            --
    Underwriting, acquisition, and insurance                                                                  |
       expenses:                                                                                              |
       Commissions.................................                 697              1,754              141   |           267
       General expenses............................                 362                834              124   |           461
       Insurance taxes, state licenses, and fees...                 128                 44               94   |            15
       Policy acquisition costs deferred...........                (879)            (2,264)            (204)  |          (298)
       Amortization:                                                                                          |
         Deferred policy acquisition costs.........                 201                 76               13   |             7
         Value of purchased insurance in                                                                      |
           force...................................                  35                  8                3   |            --
         Goodwill..................................                   2                  2                1   |            --
                                                       ------------------------------------------------------------------------
                                                                  1,208                830              198   |           500
                                                                                                              |
  Interest expense.................................                  12                 --               --   |            --
                                                       ------------------------------------------------------------------------
                                                                  1,220                830              198   |          500
                                                       ------------------------------------------------------------------------
                                                                                                              |
  Income before income taxes.......................               1,380              1,277               97   |           953
                                                                                                              |
  Income taxes.....................................                 569                502               34   |           287
                                                       ------------------------------------------------------------------------
                                                                                                              |
  Net income.......................................                $811               $775              $63   |          $666
                                                       ========================================================================

</TABLE>






See accompanying notes.



                                                                 14
<PAGE>


<TABLE>
<CAPTION>

                                            STATEMENTS OF CHANGES IN STOCKHOLDER'S EQUITY
                                                       (DOLLARS IN THOUSANDS)


                                                                                     Accumulated
                                                                  Additional               Other                             Total
                                                      Common         Paid-in       Comprehensive       Retained      Stockholder's
                                                       Stock         Capital       Income (Loss)       Earnings             Equity
                                              -------------------------------------------------------------------------------------
                                                                                   PRE-MERGER
                                              -------------------------------------------------------------------------------------
<S>                                                   <C>           <C>                  <C>             <C>             <C>
Balance at January 1, 1997...............             $2,000        $23,000                $(99)            $42           $24,943
Comprehensive income:
  Net income.............................                 --             --                  --             666               666
Change in net unrealized investment
  gains (losses).........................                 --             --                (130)             --              (130)
                                                                                                                  -----------------
Comprehensive income.....................                                                                                     536
                                              -------------------------------------------------------------------------------------
Balance at October 24, 1997..............             $2,000        $23,000               $(229)           $708           $25,479
                                              =====================================================================================

                                                                                   POST-MERGER
                                              -------------------------------------------------------------------------------------
Balance at October 25, 1997..............             $2,000        $23,936                  --              --           $25,936
Comprehensive income:
  Net income.............................                 --             --                  --             $63                63
  Change in net unrealized investment
     gains (losses)......................                 --             --                 $96              --                96
                                                                                                                  -----------------
Comprehensive income.....................                                                                                     159
                                              -------------------------------------------------------------------------------------
Balance at December 31,1997..............              2,000         23,936                  96              63            26,095
Comprehensive income:
  Net income.............................                 --             --                  --             775               775
  Change in net unrealized investment
     gains (losses)......................                 --             --                 240              --               240
                                                                                                                  -----------------
Comprehensive income.....................                                                                                   1,015
                                              -------------------------------------------------------------------------------------
Balance at December 31,1998..............              2,000         23,936                 336             838            27,110
Comprehensive income:
  Net income.............................                 --             --                  --             811               811
  Change in net unrealized investment
     gains (losses)......................                 --             --              (1,263)             --            (1,263)
                                                                                                                  -----------------
Comprehensive income.....................                                                                                    (452)
                                              -------------------------------------------------------------------------------------
Balance at December 31,1999..............             $2,000        $23,936               $(927)         $1,649           $26,658
                                              =====================================================================================

</TABLE>













See accompanying notes.



                                                                 15
<PAGE>

<TABLE>
<CAPTION>

                                                      STATEMENTS OF CASH FLOWS
                                                       (DOLLARS IN THOUSANDS)


                                                                                 POST-MERGER                      |   PRE-MERGER
                                                              ----------------------------------------------------|----------------
                                                                                                  For the period  | For the period
                                                                                                     October 25,  |     January 1,
                                                                 For the year      For the year             1997  |           1997
                                                                        ended             ended          through  |        through
                                                                 December 31,      December 31,     December 31,  |    October 24,
                                                                         1999              1998             1997  |           1997
                                                              ----------------------------------------------------|---------------
<S>                                                                    <C>              <C>               <C>              <C>
OPERATING ACTIVITIES                                                                                              |
                                                                                                                  |
Net income..............................................                 $811             $775               $63  |          $666
Adjustments to reconcile net income to net cash                                                                   |
  provided by (used in) operations:                                                                               |
  Adjustments related to annuity products:                                                                        |
     Interest credited to account balances..............                  590              376                26  |            48
     Charges for mortality and administration...........                  (11)             (11)               --  |            (1)
  Decrease (increase) in accrued investment income......                  (29)             (38)               35  |           (73)
  Policy acquisition costs deferred.....................                 (879)          (2,264)             (204) |          (298)
  Amortization of deferred policy acquisition costs.....                  201               76                13  |             7
  Amortization of value of purchased insurance in force.                   35                8                 3  |            --
  Change in other assets, due to/from affiliates, other                                                           |
     liabilities, and accrued income taxes..............                  (32)             248              (625) |           739
  Provision for depreciation and amortization...........                   90               82                12  |            17
  Provision for deferred income taxes...................                  (50)             465                98  |            26
  Realized gains (losses) on investments................                  166              (24)               (1) |            --
                                                              ----------------------------------------------------|----------------
Net cash provided by (used in) operating activities.....                  892             (307)             (580) |         1,131
                                                                                                                  |
INVESTING ACTIVITIES                                                                                              |
                                                                                                                  |
Sale, maturity, or repayment of investments:                                                                      |
  Fixed maturities - available for sale.................               10,849            1,644               556  |          226
  Short-term investments - net..........................                  922               --                --  |            --
                                                              ----------------------------------------------------|----------------
                                                                       11,771            1,644               556  |           226
Acquisition of investments:                                                                                       |
  Fixed maturities - available for sale.................               (9,835)          (5,549)           (2,635) |            --
  Short-term investments - net..........................                   --           (2,432)              (59) |          (390)
                                                              ----------------------------------------------------|----------------
                                                                       (9,835)          (7,981)           (2,694) |         (390)
                                                                                                                  |
Purchase of property and equipment......................                   (8)              (4)               (2) |           (64)
                                                              ----------------------------------------------------|----------------
Net cash provided by (used in) investing activities.....                1,928           (6,341)           (2,140) |          (228)


</TABLE>







See accompanying notes.



                                                                 16
<PAGE>

<TABLE>
<CAPTION>

                                                STATEMENTS OF CASH FLOWS - CONTINUED
                                                       (DOLLARS IN THOUSANDS)

                                                                                 POST-MERGER                     |   PRE-MERGER
                                                              ---------------------------------------------------|-----------------
                                                                                                  For the period |  For the period
                                                                                                     October 25, |      January 1,
                                                                 For the year     For the year              1997 |            1997
                                                                        ended            ended           through |         through
                                                                 December 31,     December 31,      December 31, |     October 24,
                                                                         1999             1998              1997 |            1997
                                                              ---------------------------------------------------|-----------------
<S>                                                                   <C>               <C>               <C>              <C>
FINANCING ACTIVITIES                                                                                             |
                                                                                                                 |
Proceeds from revolving note payable....................              $13,000               --                -- |             --
Repayment of revolving note payable.....................              (12,900)              --                -- |             --
Receipts from investment contracts credited to account                                                           |
  balances..............................................                1,008           $9,009              $354 |         $2,160
Return of account balances on investment contracts......                 (228)            (178)               (8)|            (15)
Net reallocations to separate account...................               (4,606)            (872)              (20)|            (38)
                                                              ---------------------------------------------------|-----------------
Net cash provided by (used in) financing activities.....               (3,726)           7,959               326 |          2,107
                                                              ---------------------------------------------------|-----------------
                                                                                                                 |
Increase (decrease) in cash and cash equivalents........                 (906)           1,311            (2,394)|          3,010
                                                                                                                 |
Cash and cash equivalents at beginning of period........                1,932              621             3,015 |              5
                                                              ---------------------------------------------------|----------------
Cash and cash equivalents at end of period..............               $1,026           $1,932              $621 |         $3,015
                                                              ===================================================|=================
                                                                                                                 |
SUPPLEMENTAL  DISCLOSURE  OF CASH FLOW  INFORMATION                                                              |
Cash paid during the period for:                                                                                 |
   Interest.............................................                   $1               --                -- |             --
   Income taxes.........................................                   --              $99                -- |           $283







</TABLE>












See accompanying notes.


                                                                 17
<PAGE>



                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 1999

1. SIGNIFICANT ACCOUNTING POLICIES

--------------------------------------------------------------------------------


ORGANIZATION

First Golden  American  Life  Insurance  Company of New York ("First  Golden" or
"Company"),  a wholly owned subsidiary of Golden American Life Insurance Company
("Golden  American" or  "Parent"),  was  incorporated  on May 24,  1996.  Golden
American is a wholly owned  subsidiary of Equitable of Iowa  Companies,  Inc. On
January 2, 1997 and December 23, 1997,  First Golden  became  licensed as a life
insurance  company  under  the laws of the  states  of New  York  and  Delaware,
respectively.  First  Golden  received  policy  approvals  on March 25, 1997 and
December 23, 1997 in New York and Delaware, respectively. The Company's products
are marketed by broker/dealers,  financial  institutions,  and insurance agents.
The Company's primary  customers are consumers and corporations.  See Note 8 for
further information regarding related party transactions.

On October 24, 1997,  PFHI  Holdings,  Inc.  ("PFHI"),  a Delaware  corporation,
acquired all of the  outstanding  capital  stock of Equitable of Iowa  Companies
("Equitable") according to the terms of an Agreement and Plan of Merger ("Merger
Agreement")  dated  July 7, 1997  among  Equitable,  PFHI,  and ING  Groep  N.V.
("ING").  PFHI is a wholly owned subsidiary of ING, a global financial  services
holding  company  based in The  Netherlands.  As a result  of this  transaction,
Equitable was merged into PFHI, which was  simultaneously  renamed  Equitable of
Iowa Companies, Inc. ("EIC"), a Delaware corporation.  See Note 6 for additional
information regarding the merger.

For financial statement purposes, the ING merger was accounted for as a purchase
effective  October 25, 1997.  The merger  resulted in a new basis of  accounting
reflecting  estimated fair values of assets and  liabilities.  As a result,  the
Company's  financial  statements  for the  periods  after  October  24, 1997 are
presented on the  Post-Merger  new basis of accounting and financial  statements
for  October  24,  1997  and  prior  periods  are  presented  on the  Pre-Merger
historical cost basis of accounting.

INVESTMENTS

FIXED  MATURITIES:  The Company accounts for investments  under the Statement of
Financial  Accounting  Standards  ("SFAS")  No.  115,  "Accounting  for  Certain
Investments in Debt and Equity  Securities,"  which requires fixed maturities to
be  designated  as  either  "available  for  sale,"  "held for  investment,"  or
"trading." Sales of fixed maturities  designated as "available for sale" are not
restricted by SFAS No. 115.  Available for sale  securities are reported at fair
value and unrealized gains and losses on these securities are included  directly
in  stockholder's  equity,  after  adjustment  for  related  changes in value of
purchased  insurance  in  force  ("VPIF"),  deferred  policy  acquisition  costs
("DPAC"),  and deferred  income taxes. At December 31, 1999 and 1998, all of the
Company's  fixed  maturities are designated as available for sale,  although the
Company  is  not  precluded  from  designating  fixed  maturities  as  held  for
investment or trading at some future date.

Securities  determined  to have a decline in value that is other than  temporary
are written down to estimated fair value,  which becomes the new cost basis by a
charge to realized  losses in the Company's  Statements of Operations.  Premiums
and  discounts  are  amortized/accrued  utilizing  a method  which  results in a
constant yield over the  securities'  expected  lives.  Amortization/accrual  of
premiums  and   discounts  on  mortgage   and  other   asset-backed   securities
incorporates a prepayment assumption to estimate the securities' expected lives.

OTHER  INVESTMENTS:  Short-term  investments are reported at cost,  adjusted for
amortization  of premiums and accrual of discounts.

REALIZED GAINS AND LOSSES: Realized gains and losses are determined on the basis
of specific identification.

FAIR  VALUES:  Estimated  fair  values,  as  reported  herein,  of  conventional
mortgage-backed  securities not actively traded in a liquid market are estimated
using  a third  party  pricing  process.  This  pricing  process  uses a  matrix
calculation  assuming a spread over U. S. Treasury bonds based upon the expected
average lives of the securities.  Estimated fair values of publicly traded fixed
maturities  are  reported  by an  independent  pricing  service.  Fair values of
private  placement  bonds are  estimated  using a matrix  that  assumes a spread
(based on interest rates and a risk assessment of the bonds) over U. S. Treasury
bonds.



                                       18
<PAGE>


CASH AND CASH EQUIVALENTS

For purposes of the accompanying Statements of Cash Flows, the Company considers
all demand deposits and interest-bearing  accounts not related to the investment
function to be cash equivalents.  All  interest-bearing  accounts  classified as
cash equivalents have original maturities of three months or less.

DEFERRED POLICY ACQUISITION COSTS

Certain  costs of  acquiring  new  insurance  business,  principally  first year
commissions,  interest bonuses,  and other expenses related to the production of
new  business,  have  been  deferred.  Acquisition  costs for  variable  annuity
products are being amortized generally in proportion to the present value (using
the assumed crediting rate) of expected future gross profits.  This amortization
is adjusted  retrospectively when the Company revises its estimate of current or
future gross profits to be realized  from a group of products.  DPAC is adjusted
to  reflect  the pro  forma  impact  of  unrealized  gains  and  losses on fixed
maturities  the Company has  designated as  "available  for sale" under SFAS No.
115.

VALUE OF PURCHASED INSURANCE IN FORCE

As the result of the merger,  a portion of the purchase  price was  allocated to
the right to receive future cash flows from existing insurance  contracts.  This
allocated  cost  represents  VPIF which  reflects  the value of those  purchased
policies calculated by discounting  actuarially  determined expected future cash
flows at the discount rate determined by the purchaser.  Amortization of VPIF is
charged to expense in  proportion to expected  gross  profits of the  underlying
business. This amortization is adjusted retrospectively when the Company revises
its  estimate  of  current  or future  gross  profits  to be  realized  from the
insurance contracts  acquired.  VPIF is adjusted to reflect the pro forma impact
of unrealized gains and losses on available for sale fixed maturities.  See Note
6 for additional information on VPIF resulting from the merger.

PROPERTY AND EQUIPMENT

Property and equipment  primarily  represent  leasehold  improvements and office
furniture  and  equipment  and  are  not  considered  to be  significant  to the
Company's overall  operations.  Property and equipment are reported at cost less
allowances for depreciation.  Depreciation  expense is computed primarily on the
basis of the straight-line method over the estimated useful lives of the assets.

GOODWILL

Goodwill was  established as a result of the merger and is being  amortized over
40 years on a straight-line basis. See Note 6 for additional  information on the
merger.

FUTURE POLICY BENEFITS

Future policy benefits for the fixed interest  division of the variable products
are established  utilizing the retrospective  deposit accounting method.  Policy
reserves  represent  the  premiums  received  plus  accumulated  interest,  less
mortality and administration charges. Interest credited to these policies ranged
from 4.10% to 6.00% during 1999,  3.95% to 7.10% during 1998, and 5.60% to 7.50%
during 1997.

SEPARATE ACCOUNT

Assets and  liabilities  of the separate  account  reported in the  accompanying
Balance Sheets represent funds that are separately administered  principally for
variable annuity contracts.  Contractowners,  rather than the Company,  bear the
investment   risk  for  the  variable   products.   At  the   direction  of  the
contractowners,  the  separate  account  invests the  premiums  from the sale of
variable  annuity  products in shares of specified  mutual funds. The assets and
liabilities of the separate  account are clearly  identified and segregated from
other assets and liabilities of the Company. The portion of the separate account
assets equal to the reserves and other liabilities of variable annuity contracts
cannot be charged with liabilities arising out of any other business the Company
may conduct.

Variable  separate  account  assets are carried at fair value of the  underlying
investments and generally represent  contractowner  investment values maintained
in  the  accounts.  Variable  separate  account  liabilities  represent  account
balances for the variable annuity  contracts  invested in the separate  account;
the fair  value of these  liabilities  is equal to their  carrying  amount.  Net
investment  income and realized and unrealized  capital gains and losses related
to separate account assets are not reflected in the  accompanying  Statements of
Operations.

Product charges  recorded by the Company from variable  annuity products consist
of charges applicable to each contract for mortality and expense risk,  contract
administration, and surrender charges.


                                       19
<PAGE>


DEFERRED INCOME TAXES

Deferred tax assets or liabilities are computed based on the difference  between
the financial statement and income tax bases of assets and liabilities using the
enacted  marginal tax rate.  Deferred tax assets or liabilities  are adjusted to
reflect the pro forma impact of unrealized  gains and losses on fixed maturities
the Company has designated as available for sale under SFAS No. 115.  Changes in
deferred tax assets or  liabilities  resulting from this SFAS No. 115 adjustment
are charged or credited  directly to stockholder's  equity.  Deferred income tax
expenses or credits  reflected in the Company's  Statements  of  Operations  are
based on the  changes in the  deferred  tax asset or  liability  from  period to
period (excluding the SFAS No. 115 adjustment).

DIVIDEND RESTRICTIONS

Under the  provisions  of the  insurance  laws of the  State of New York,  First
Golden cannot  distribute  any dividends to its  stockholder,  Golden  American,
unless a notice  of its  intent  to  declare a  dividend  and the  amount of the
dividend has been filed with the New York  Insurance  Department at least thirty
days in advance of the proposed  declaration.  If the  Superintendent of the New
York Insurance  Department finds the financial condition of the Company does not
warrant the distribution,  the Superintendent may disapprove the distribution by
giving written notice to the Company within thirty days after the filing.

SEGMENT REPORTING

The Company manages its business as one segment,  the sale of variable  products
designed to meet customer  needs for  tax-advantaged  saving for  retirement and
protection from death.  Variable products are sold to consumers and corporations
throughout New York.

USE OF ESTIMATES

The  preparation  of the  financial  statements  in  conformity  with  generally
accepted  accounting  principles  requires  management  to  make  estimates  and
assumptions  affecting  the amounts  reported in the  financial  statements  and
accompanying notes. Actual results could differ from those estimates.

Management is required to utilize  historical  experience and assumptions  about
future  events and  circumstances  in order to  develop  estimates  of  material
reported  amounts and  disclosures.  Included among the material (or potentially
material)  reported  amounts  and  disclosures  that  require  extensive  use of
estimates and  assumptions  are: (1) estimates of fair values of  investments in
securities  and  other  financial  instruments,   as  well  as  fair  values  of
policyholder  liabilities,  (2)  policyholder  liabilities,  (3) deferred policy
acquisition costs and value of purchased  insurance in force, (4) fair values of
assets and liabilities recorded as a result of the merger transaction, (5) asset
valuation allowances, (6) deferred tax benefits (liabilities), and (7) estimates
for commitments  and  contingencies  including legal matters,  if a liability is
anticipated and can be reasonably estimated. Estimates and assumptions regarding
all of the preceding  items are inherently  subject to change and are reassessed
periodically.  Changes in estimates and assumptions  could materially impact the
financial statements.

RECLASSIFICATIONS

Certain amounts for the periods ended in the 1998 and 1997 financial  statements
have been reclassified to conform to the 1999 financial statement presentation.

2. BASIS OF FINANCIAL REPORTING

--------------------------------------------------------------------------------


The  financial  statements  of the Company  differ from related  statutory-basis
financial statements  principally as follows: (1) acquisition costs of acquiring
new business are deferred  and  amortized  over the life of the policies  rather
than charged to operations as incurred;  (2) an asset  representing  the present
value of future cash flows from insurance  contracts acquired was established as
a result of the merger and is  amortized  and  charged  to  expense;  (3) future
policy benefit reserves for the fixed interest division of the variable products
are based on full  account  values,  rather than the  greater of cash  surrender
value or amounts  derived from  discounting  methodologies  utilizing  statutory
interest rates;  (4) reserves are reported before  reduction for reserve credits
related  to  reinsurance  ceded  and a  receivable  is  established,  net  of an
allowance for uncollectible amounts, for these credits rather than presented net
of these credits;  (5) fixed maturity  investments  are designated as "available
for sale" and valued at fair value  with  unrealized  appreciation/depreciation,
net of adjustments  to value of purchased  insurance in force,  deferred  policy
acquisition  costs, and deferred income taxes (if applicable),  credited/charged
directly to  stockholder's  equity rather than valued at amortized cost; (6) the
carrying  value of fixed  maturities  is  reduced  to fair  value by a charge to
realized  losses in the Statements of Operations when declines in carrying value
                                       20
<PAGE>

are judged to be other than temporary,  rather than through the establishment of
a  formula-determined  statutory  investment  reserve  (carried as a liability),
changes in which are charged directly to surplus;  (7) deferred income taxes are
provided for the difference between the financial statement and income tax bases
of assets  and  liabilities;  (8) net  realized  gains or losses  attributed  to
changes in the level of  interest  rates in the market are  recognized  when the
sale is completed  rather than deferred and amortized over the remaining life of
the fixed maturity security;  (9) revenues for variable annuity products consist
of policy  administration  charges and surrender  charges  assessed  rather than
premiums  received;  and (10) assets and liabilities are restated to fair values
when a change in  ownership  occurs,  with  provisions  for  goodwill  and other
intangible assets, rather than continuing to be presented at historical cost.

A  reconciliation  of  net  income  and  stockholder's  equity  as  reported  to
regulatory  authorities  under  statutory  accounting  principles  to equivalent
amounts reported under generally accepted accounting principles follows:
<TABLE>
<CAPTION>

                                                                                 |    PRE-       |
                                                    POST-MERGER                  |    MERGER     |            POST-MERGER
                                 ------------------------------------------------|---------------|---------------------------------
                                                     Net Income                  |  Net Income   |       Stockholder's Equity
                                 ------------------------------------------------|---------------|---------------------------------
                                                                 For the period  |For the period |
                                    For the year    For the year    October 25,  |    January 1, |
                                           ended           ended   1997 through  |  1997 through |
                                    December 31,    December 31,    December 31  |   October 24, |    December 31,     December 31,
                                            1999            1998           1997  |          1997 |            1999             1998
                                 ------------------------------------------------|---------------|---------------------------------
                                                                    (DOLLARS IN THOUSANDS)       |
<S>                                         <C>             <C>            <C>            <C>            <C>              <C>
                                                                                 |               |
As reported under statutory                                                      |               |
  accounting principles.........            $790            $(966)         $(142)|        $581   |       $25,082          $24,377
Interest maintenance reserve....             (52)              14              1 |          --   |            --               15
Asset valuation reserve.........              --               --             -- |          --   |           145               96
Future policy benefits..........            (681)              45            115 |        (179)  |          (697)             (16)
Nonadmitted assets..............              --               --             -- |          --   |            41               43
Net unrealized appreciation                                                      |               |
  (depreciation) of fixed                                                        |               |
  maturities at fair value......              --               --             -- |          --   |        (1,083)             563
Change in investment basis as                                                    |               |
  result of merger..............            (118)             (39)            (1)|          --   |           200              318
Deferred policy acquisition                                                      |               |
  costs.........................             678            2,188            191 |         291   |         3,198            2,347
Value of purchased insurance in                                                  |               |
  force.........................             (35)              (8)            (3)|          --   |           102              117
Current income taxes                                                             |               |
  payable.......................             193               --             -- |          --   |           193               --
Goodwill........................              (2)              (2)            (1)|          --   |            91               93
Deferred income taxes...........              50             (465)           (98)|         (26)  |          (610)            (850)
Other...........................             (12)               8              1 |          (1)  |            (4)               7
                                 ------------------------------------------------|---------------|---------------------------------
As reported herein..............            $811             $775            $63 |        $666   |       $26,658          $27,110
                                 ==================================================================================================


</TABLE>


                                       21
<PAGE>


3. INVESTMENT OPERATIONS
-------------------------------------------------------------------------------

INVESTMENT RESULTS

Major categories of net investment income are summarized below:
<TABLE>
<CAPTION>

                                                                         POST-MERGER                      |   PRE-MERGER
                                                     -----------------------------------------------------|-------------------
                                                                                          For the period  |    For the period
                                                         For the year     For the year       October 25,  |        January 1,
                                                                ended            ended      1997 through  |      1997 through
                                                         December 31,     December 31,      December 31,  |       October 24,
                                                                 1999             1998              1997  |              1997
                                                     -----------------------------------------------------|-------------------
                                                                              (DOLLARS IN THOUSANDS)      |
                                                                                                          |
<S>                                                           <C>               <C>                <C>                <C>
Fixed maturities................................              $1,901            $1,726             $294   |           $1,449
Short-term investments..........................                 148               157               13   |               30
Other, net......................................                 171                --               --   |                2
                                                     -----------------------------------------------------|-------------------
Gross investment income.........................               2,220             1,883              307   |            1,481
Less investment expenses........................                 (73)              (39)             (21)  |              (32)
                                                     -----------------------------------------------------|-------------------
Net investment income...........................              $2,147            $1,844             $286   |           $1,449
                                                     =========================================================================
</TABLE>

The  change  in  unrealized  appreciation  (depreciation)  on  fixed  maturities
designated as available  for sale at fair value for the year ended  December 31,
1999,  the year ended  December  31, 1998,  the period  October 25, 1997 through
December 31, 1997, and the period January 1, 1997 through  October 24, 1997 were
$(1,646,000),  $412,000, $(212,000), and $516,000, respectively.

At December 31, 1999 and December 31, 1998,  amortized  cost,  gross  unrealized
gains and losses,  and estimated fair values of fixed  maturities,  all of which
are designated as available for sale, follows:

<TABLE>
<CAPTION>

                                                                                   POST-MERGER
                                                     -------------------------------------------------------------------------
                                                                                   Gross               Gross        Estimated
                                                              Amortized       Unrealized          Unrealized             Fair
                                                                   Cost            Gains              Losses            Value
                                                     -------------------------------------------------------------------------
                                                                              (DOLLARS IN THOUSANDS)
<S>                                                             <C>                <C>               <C>             <C>
    December 31, 1999
    -------------------------------------------------
    U.S. government and governmental agencies and
       authorities................................               $3,486              --                 $(88)         $3,398
    Public utilities..............................                2,030              --                  (77)          1,953
    Corporate securities..........................               21,994              --                 (910)         21,084
    Mortgage-backed securities....................                1,556              --                   (8)          1,548
    Other asset-backed securities.................                  112              --                   --             112
                                                     -------------------------------------------------------------------------
    Total.........................................              $29,178              --              $(1,083)        $28,095
                                                     =========================================================================

    December 31, 1998
    -------------------------------------------------
    U. S. government and governmental agencies and
       authorities................................               $3,997            $118                  $(3)         $4,112
    Public utilities..............................                2,543              63                   (4)          2,602
    Corporate securities..........................               20,351             426                  (53)         20,724
    Mortgage-backed securities....................                3,540              17                   (1)          3,556
                                                     -------------------------------------------------------------------------
    Total.........................................              $30,431            $624                 $(61)        $30,994
                                                     =========================================================================
</TABLE>

Short-term  investments  with  maturities  of 30 days or less have been excluded
from the above  schedules.  Amortized  cost  approximates  fair values for these
securities.


                                                                 22
<PAGE>


At December 31,  1999,  net  unrealized  investment  losses on fixed  maturities
designated as available for sale totaled  $1,083,000.  Depreciation  of $603,000
was included in stockholder's equity at December 31, 1999 (net of adjustments of
$16,000 to VPIF,  $141,000 to DPAC, and $324,000 to deferred  income taxes).  At
December  31,  1998,  net  unrealized   investment  gains  on  fixed  maturities
designated as available for sale totaled $563,000.  Appreciation of $336,000 was
included in  stockholder's  equity at December 31, 1998 (net of  adjustments  of
$5,000 to VPIF, $32,000 to DPAC, and $190,000 to deferred income taxes).

Amortized  cost and  estimated  fair  value of fixed  maturities  designated  as
available  for sale,  by  contractual  maturity,  at December 31, 1999 are shown
below.  Expected  maturities  will differ from  contractual  maturities  because
borrowers may have the right to call or prepay  obligations with or without call
or prepayment penalties.

<TABLE>
<CAPTION>

                                                                              POST-MERGER
                                                                ------------------------------------
                                                                         Amortized        Estimated
December 31, 1999                                                             Cost       Fair Value
----------------------------------------------------------------------------------------------------
                                                                      (DOLLARS IN THOUSANDS)

<S>                                                                        <C>              <C>
Due in one year or less....................................                 $1,690           $1,616
Due after one year through five years......................                 11,465           11,107
Due after five years through ten years.....................                 14,355           13,712
                                                                ------------------------------------
                                                                            27,510           26,435
Mortgage-backed securities.................................                  1,556            1,548
Other asset-backed securities..............................                    112              112
                                                                ------------------------------------
Total .....................................................                $29,178          $28,095
                                                                ====================================
</TABLE>

An analysis of sales,  maturities,  and  principal  repayments  of the Company's
fixed maturities portfolio follows:

<TABLE>
<CAPTION>
                                                                                 Gross             Gross           Proceeds
                                                             Amortized        Realized          Realized               from
                                                                  Cost           Gains            Losses               Sale
    ------------------------------------------------------------------------------------------------------------------------
                                                                             (DOLLARS IN THOUSANDS)

<S>                                                          <C>                   <C>             <C>              <C>
    POST-MERGER:

    FOR THE YEAR ENDED DECEMBER 31, 1999:
    Scheduled principal repayments, calls, and
      tenders....................................             $2,385                --                --             $2,385
    Sales........................................              8,630                $4             $(170)             8,464
                                                     -----------------------------------------------------------------------
    Total........................................            $11,015                $4             $(170)           $10,849
                                                     =======================================================================

    FOR THE YEAR ENDED DECEMBER 31, 1998:
    Scheduled principal repayments, calls, and
      tenders....................................             $1,080                --                --             $1,080
    Sales........................................                540               $24                --                564
                                                     -----------------------------------------------------------------------
    Total........................................             $1,620               $24                --             $1,644
                                                     =======================================================================

    FOR THE PERIOD OCTOBER 25, 1997 THROUGH
      DECEMBER 31, 1997:
    Scheduled principal repayments, calls, and
      tenders....................................               $555                $1                --               $556
                                                     =======================================================================

    PRE-MERGER:

    FOR THE PERIOD JANUARY 1, 1997 THROUGH
      OCTOBER 24, 1997:

    Scheduled principal repayments, calls, and
      tenders....................................               $226                --                --               $226
                                                     =======================================================================
</TABLE>


                                                                 23
<PAGE>


INVESTMENT VALUATION ANALYSIS:  The Company analyzes its investment portfolio at
least  quarterly in order to determine if the carrying  value of any  investment
has been  impaired.  The carrying  value of fixed  maturities is written down to
fair value by a charge to realized losses when an impairment in value appears to
be other than  temporary.  During 1999,  1998,  and 1997,  no  investments  were
identified as having an impairment other than temporary.

INVESTMENTS  ON DEPOSIT:  At December 31, 1999 and 1998,  affidavits of deposits
covering  bonds with a par value of  $400,000  were on deposit  with  regulatory
authorities pursuant to certain statutory requirements.

INVESTMENT  DIVERSIFICATIONS:  The Company's  investment policies related to its
investment  portfolio  require  diversification  by  asset  type,  company,  and
industry  and set limits on the amount  which can be invested  in an  individual
issuer.  Such  policies  are at  least as  restrictive  as  those  set  forth by
regulatory authorities. The following percentages relate to holdings at December
31, 1999 and  December  31,  1998.  Fixed  maturities  included  investments  in
industrials (48% in 1999, 40% in 1998), financial companies (29% in 1999, 24% in
1998),  various  government  bonds  and  government  or  agency  mortgage-backed
securities  (14%  in  1999,  13%  in  1998),  and  conventional  mortgage-backed
securities (6% in 1999, 11% in 1998).

No  investment  in any person or its  affiliates  (other  than  bonds  issued by
agencies of the United States  government)  exceed ten percent of  stockholder's
equity at December 31, 1999.

4. COMPREHENSIVE INCOME
--------------------------------------------------------------------------------

Comprehensive  income  includes  all changes in  stockholder's  equity  during a
period except those  resulting  from  investments  by and  distributions  to the
stockholder.  Other  comprehensive  income (loss) excludes net investment  gains
(losses) included in net income which merely represent transfers from unrealized
to realized gains and losses.  These amounts  totaled  $(108,000) and $16,000 in
1999 and 1998, respectively.  Such amounts, which have been measured through the
date of sale, are net of income taxes and  adjustments to VPIF and DPAC totaling
$(58,000) and $8,000 in 1999 and 1998, respectively.

5. FAIR VALUES OF FINANCIAL INSTRUMENTS
--------------------------------------------------------------------------------

SFAS No. 107, "Disclosures about Fair Value of Financial  Instruments," requires
disclosure of estimated fair value of all financial instruments,  including both
assets and  liabilities  recognized  and not  recognized in a company's  balance
sheet, unless specifically exempted.  SFAS No. 119, "Disclosure about Derivative
Financial  Instruments  and  Fair  Value  of  Financial  Instruments,"  requires
additional  disclosures  about  derivative  financial  instruments.  Most of the
Company's investments,  investment contracts and debt fall within the standards'
definition  of a financial  instrument.  In cases where quoted market prices are
not available,  estimated fair values are based on estimates using present value
or other valuation  techniques.  Those techniques are significantly  affected by
the assumptions  used,  including the discount rate and estimates of future cash
flows. Accounting,  actuarial, and regulatory bodies are continuing to study the
methodologies to be used in developing fair value  information,  particularly as
it relates to such things as liabilities for insurance  contracts.  Accordingly,
care should be exercised in deriving conclusions about the Company's business or
financial condition based on the information presented herein.

The Company closely  monitors the composition and yield of its invested  assets,
the duration  and  interest  credited on  insurance  liabilities  and  resulting
interest  spreads  and  timing of cash  flows.  These  amounts  are  taken  into
consideration in the Company's  overall  management of interest rate risk, which
attempts to minimize exposure to changing interest rates through the matching of
investment cash flows with amounts expected to be due under insurance contracts.
These  assumptions  may not  result in values  consistent  with  those  obtained
through an actuarial  appraisal of the  Company's  business or values that might
arise in a negotiated transaction.



                                                                 24
<PAGE>



The following compares carrying values as shown for financial reporting purposes
with estimated fair values:
<TABLE>
<CAPTION>

                                                                                       POST-MERGER
                                                              --------------------------------------------------------------
  December 31                                                              1999                            1998
  --------------------------------------------------------------------------------------------------------------------------
                                                                     Carrying       Estimated       Carrying      Estimated
                                                                        Value      Fair Value          Value     Fair Value
                                                              --------------------------------------------------------------
                                                                                 (DOLLARS IN THOUSANDS)
<S>                                                                   <C>             <C>            <C>            <C>
  ASSETS

     Fixed maturities, available for sale.................            $28,095         $28,095        $30,994        $30,994
     Short-term investments...............................              2,309           2,309          3,231          3,231
     Cash and cash equivalents............................              1,026           1,026          1,932          1,932
     Separate account assets..............................             47,215          47,215         26,717         26,717

  LIABILITIES

    Annuity products......................................              7,583           7,170         10,830         10,166
    Revolving note payable................................                100             100             --             --
    Separate account liabilities..........................             47,215          47,215         26,717         26,717
</TABLE>

The  following  methods and  assumptions  were used by the Company in estimating
fair values.

FIXED  MATURITIES:   Estimated  fair  values  of  conventional   mortgage-backed
securities  not actively  traded in a liquid  market and  publicly  traded fixed
maturities  are  estimated  using a third party  pricing  process.  This pricing
process uses a matrix  calculation  assuming a spread over U. S. Treasury  bonds
based upon the expected average lives of the securities.

SHORT-TERM  INVESTMENTS AND CASH AND CASH EQUIVALENTS:  Carrying values reported
in the Company's historical cost basis balance sheet approximate  estimated fair
value for these instruments due to their short-term nature.

SEPARATE ACCOUNT ASSETS: Separate account assets are reported at the quoted fair
values of the individual securities in the separate account.

ANNUITY PRODUCTS:  Estimated fair values of the Company's liabilities for future
policy  benefits for the fixed  interest  division of the variable  products are
stated at cash surrender  value,  the cost the Company would incur to extinguish
the liability.

REVOLVING NOTE PAYABLE: Carrying value reported in the Company's historical cost
basis balance sheet  approximates  estimated fair value for this instrument,  as
the agreement carries a variable interest rate provision.

SEPARATE ACCOUNT LIABILITIES:  Separate account liabilities are reported at full
account value in the Company's  historical  cost balance  sheet.  Estimated fair
values of separate account liabilities are equal to their carrying amount.

6. MERGER
--------------------------------------------------------------------------------

TRANSACTION:  On October 23, 1997, Equitable's  shareholders approved the Merger
Agreement  dated July 7, 1997 among  Equitable,  PFHI,  and ING.  On October 24,
1997,  PFHI, a Delaware  corporation,  acquired all of the  outstanding  capital
stock of  Equitable  according to the Merger  Agreement.  PFHI is a wholly owned
subsidiary  of ING, a global  financial  services  holding  company based in The
Netherlands.  Equitable, an Iowa corporation, in turn, owned all the outstanding
capital stock of Equitable  Life Insurance  Company of Iowa and Golden  American
and their wholly owned subsidiaries.  In addition,  Equitable also owned all the
outstanding  capital  stock  of  Locust  Street  Securities,   Inc.,   Equitable
Investment Services,  Inc. (subsequently  dissolved),  Directed Services,  Inc.,
Equitable of Iowa Companies  Capital Trust,  Equitable of Iowa Companies Capital
Trust II, and Equitable of Iowa Securities Network,  Inc.  (subsequently renamed
ING Funds Distributor,  Inc.). In exchange for the outstanding  capital stock of
Equitable,  ING paid total  consideration of approximately  $2.1 billion in cash
and stock and assumed  approximately  $400 million in debt.  As a result of this
transaction,  Equitable was merged into PFHI, which was  simultaneously  renamed
Equitable of Iowa Companies, Inc. All costs of the merger, including expenses to
terminate certain benefit plans, were paid by EIC.



                                       25
<PAGE>

ACCOUNTING TREATMENT:  The merger has been accounted for as a purchase resulting
in a new basis of  accounting,  reflecting  estimated fair values for assets and
liabilities at October 24, 1997. The purchase price was allocated to EIC and its
subsidiaries with $25,936,000 allocated to the Company. Goodwill was established
for the  excess of the  merger  cost over the fair  value of the net  assets and
attributed  to EIC and its  subsidiaries  including  Golden  American  and First
Golden.  The amount of goodwill  allocated to the Company relating to the merger
was  $96,000  at the  merger  date  and is  being  amortized  over 40 years on a
straight-line   basis.   The  carrying   value  of  goodwill  will  be  reviewed
periodically for any indication of impairment in value.

VALUE OF PURCHASED  INSURANCE IN FORCE: As part of the merger,  a portion of the
acquisition  cost was  allocated to the right to receive  future cash flows from
the  insurance  contracts  existing  with the Company at the merger  date.  This
allocated cost represents VPIF reflecting the value of those purchased  policies
calculated by discounting the actuarially  determined expected future cash flows
at the discount rate determined by ING.

An analysis of the VPIF asset follows:
<TABLE>
<CAPTION>

                                                                                         POST-MERGER
                                                                  ----------------------------------------------------------
                                                                                                             For the period
                                                                                                                October 25,
                                                                        For the year        For the year               1997
                                                                               ended               ended            through
                                                                        December 31,        December 31,       December 31,
                                                                                1999                1998               1997
                                                                  ----------------------------------------------------------
                                                                                   (DOLLARS IN THOUSANDS)
<S>                                                                            <C>                 <C>                 <C>
       Beginning balance......................................                 $117                $126                $132
                                                                  ----------------------------------------------------------

       Imputed interest.......................................                    8                   9                   3
       Amortization...........................................                  (40)                (23)                 (6)
       Changes in assumptions of timing of gross profits......                   (3)                  6                  --
                                                                  ----------------------------------------------------------
       Net amortization.......................................                  (35)                 (8)                 (3)
       Adjustment for unrealized gains (losses) on available
          for sale securities.................................                   20                  (1)                 (3)
                                                                  ----------------------------------------------------------
       Ending balance.........................................                 $102                $117                $126
                                                                  ==========================================================
</TABLE>

Interest  is imputed on the  unamortized  balance of VPIF at a rate of 7.33% for
the year ended  December 31, 1999,  7.06% for the year ended  December 31, 1998,
and 7.03% for the period  October  25,  1997  through  December  31,  1997.  The
amortization of VPIF, net of imputed  interest,  is charged to expense.  VPIF is
adjusted for the  unrealized  gains  (losses) on available for sale  securities;
such changes are included  directly in  stockholder's  equity.  Based on current
conditions  and  assumptions  as to the  impact  of future  events  on  acquired
policies in force, the expected approximate net amortization relating to VPIF as
of December 31, 1999 is $12,000 in 2000, $10,000 in 2001, $9,000 in 2002, $8,000
in 2003, and $7,000 in 2004. Actual  amortization may vary based upon changes in
assumptions and experience.


                                                                 26
<PAGE>


7. INCOME TAXES
--------------------------------------------------------------------------------

The Company files a consolidated federal income tax return with Golden American,
also a life insurance company.

INCOME TAX EXPENSE

Income tax expense included in the financial statements follows:
<TABLE>
<CAPTION>


                                                                 POST-MERGER                       |     PRE-MERGER
                                            -------------------------------------------------------|--------------------
                                                                                    For the period |     For the period
                                                                                       October 25, |         January 1,
                                                 For the year       For the year              1997 |               1997
                                                        ended              ended           through |            through
                                                 December 31,       December 31,      December 31, |        October 24,
                                                         1999               1998              1997 |               1997
                                            -------------------------------------------------------|--------------------
                                                                      (DOLLARS IN THOUSANDS)       |
                                                                                                   |
<S>                                                     <C>                <C>                <C>                 <C>
   Current..............................                $619                $37               $(64)|              $261
   Deferred.............................                 (50)               465                 98 |                26
                                            -------------------------------------------------------|--------------------
                                                        $569               $502                $34 |              $287
                                            ============================================================================
</TABLE>

The  effective  tax rate on income  before  income taxes is  different  from the
prevailing federal income tax rate. A reconciliation of this difference follows:

<TABLE>
<CAPTION>
                                                                        POST-MERGER                       |    PRE-MERGER
                                                   -------------------------------------------------------|-------------------
                                                                                           For the period |    For the period
                                                                                              October 25, |        January 1,
                                                       For the year       For the year               1997 |              1997
                                                              ended              ended            through |           through
                                                       December 31,       December 31,       December 31, |       October 24,
                                                               1999               1998               1997 |              1997
                                                   -------------------------------------------------------|-------------------
                                                                             (DOLLARS IN THOUSANDS)       |
                                                                                                          |
<S>                                                          <C>               <C>                   <C>  |              <C>
Income before income taxes....................               $1,380            $1,277                $97  |              $953
                                                   =======================================================|===================
                                                                                                          |
Income tax at federal statutory rate..........                 $483              $447                $34  |              $334
Tax effect (decrease) of:                                                                                 |
  Compensatory stock option and                                                                           |
     Restricted stock expense.................                   --                --                 --  |               (35)
  Other items.................................                   86                55                 --  |               (12)
                                                   -------------------------------------------------------|-------------------
Income tax expense............................                 $569              $502                $34  |              $287
                                                   ===========================================================================
</TABLE>


                                                                 27
<PAGE>


DEFERRED INCOME TAXES

The tax effect of temporary  differences  giving rise to the Company's  deferred
income tax assets and liabilities at December 31, 1999 and 1998 follows:

<TABLE>
<CAPTION>
                                                                                            POST-MERGER
                                                                        ----------------------------------------------------
December 31                                                                        1999                      1998
----------------------------------------------------------------------- ----------------------------------------------------
                                                                                      (DOLLARS IN THOUSANDS)

<S>                                                                                <C>                         <C>
Deferred tax assets:
    Future policy benefits.........................................                  $560                         $11
    Net unrealized depreciation of available for sale fixed
      maturities...................................................                   324                          --
    Net operating loss carryforwards...............................                    --                         327
                                                                        --------------------------- ------------------------
                                                                                      884                         338
Deferred tax liabilities:
    Net unrealized appreciation of available for sale
      fixed maturities.............................................                    --                        (184)
    Fixed maturities...............................................                   (68)                       (222)
    Investment income..............................................                  (117)                         --
    Deferred policy acquisition costs .............................                  (913)                       (714)
    Value of purchased insurance in force..........................                   (30)                        (41)
    Other..........................................................                   (42)                        (27)
                                                                        --------------------------- ------------------------
                                                                                   (1,170)                     (1,188)
                                                                        --------------------------- ------------------------
Valuation allowance................................................                  (324)                         --
                                                                        --------------------------- ------------------------
Deferred income tax liability......................................                 $(610)                      $(850)
                                                                        =========================== ========================
</TABLE>

At December 31, 1999, the Company reported,  for financial  statement  purposes,
unrealized losses on certain  investments which have not been recognized for tax
purposes. The Company has established a valuation allowance against the deferred
income  tax  assets  associated  with  the  unrealized   depreciation  on  fixed
maturities  available  for sale as the  Company is  uncertain  as to whether the
capital  losses,  if ever  realized,  could be utilized to offset future capital
gains.

8. RELATED PARTY TRANSACTIONS
--------------------------------------------------------------------------------

Directed Services, Inc. ("DSI") acts as the principal underwriter (as defined in
the Securities  Act of 1933 and the Investment  Company Act of 1940, as amended)
and distributor of the variable annuity  products issued by the Company.  DSI is
authorized  to enter into  agreements  with  broker/dealers  to  distribute  the
Company's  variable  insurance  products  and  appoint  representatives  of  the
broker/dealers  as agents.  As of December  31,  1999,  the  Company's  variable
annuity products were sold primarily  through  broker/dealer  institutions.  The
Company paid  commissions  and expenses to DSI totaling  $697,000 and $1,754,000
for the years ended  December  31, 1999 and 1998,  respectively.  For the period
October 25, 1997 through  December 31, 1997 and January 1, 1997 through  October
24, 1997, the commissions and expenses were $141,000 and $267,000, respectively.

The Company has service  agreements  with Golden  American  and  Equitable  Life
Insurance  Company of Iowa  ("Equitable  Life"),  an affiliate,  in which Golden
American  and  Equitable  Life  provide  administrative  and  financial  related
services.  Under the  agreement  with  Golden  American,  the  Company  incurred
expenses of $137,000, $248,000, $8,000, and $16,000 for the years ended December
31, 1999 and 1998,  the period  October 25, 1997 through  December 31, 1997, and
the period  January 1, 1997 through  October 24, 1997,  respectively.  Under the
agreement  with  Equitable  Life,  the Company  incurred  expenses of  $142,000,
$165,000,  $13,000,  and $16,000 for the years ended December 31, 1999 and 1998,
the period October 25, 1997 through December 31, 1997, and the period January 1,
1997 through October 24, 1997, respectively.

The Company provides resources and services to Golden American and DSI. Revenues
for these  services,  which  reduce  general  expenses  incurred by the Company,
totaled $269,000 and $210,000 from Golden American, for the years ended December
31, 1999 and 1998,  respectively.  Revenues  for these  services,  which  reduce
general expenses incurred by the Company,  totaled $387,000 and $75,000 from DSI
for the years ended December 31, 1999 and 1998, respectively.


                                       28
<PAGE>


Effective  January 1, 1998, the Company has an asset  management  agreement with
ING Investment Management LLC ("ING IM"), an affiliate, in which ING IM provides
asset  management and  accounting  services.  Under the  agreement,  the Company
records a fee  based on the value of the  assets  under  management.  The fee is
payable  quarterly.  For the years ended December 31, 1999 and 1998, the Company
incurred fees of $73,000 and $56,000, respectively, under this agreement.

Prior to 1998, the Company had a service  agreement  with  Equitable  Investment
Services,  Inc.  ("EISI"),  an  affiliate,  in which  EISI  provided  investment
management services. Payments for these services totaled $11,000 and $51,000 for
the  periods  October  25, 1997  through  December  31, 1997 and January 1, 1997
through October 24, 1997, respectively.

The Company provides resources and services to Security Life of Denver Insurance
Company  ("Security  Life"), an affiliate,  and Southland Life Insurance Company
("Southland"),  an affiliate.  For the year ended December 31, 1999, charges for
these services were $149,000 to Security Life and $63,000 to Southland.

The Company had premiums, net of reinsurance,  for variable annuity products for
the year ended  December  31, 1999 and 1998,  that  totaled  $2,000 and $94,000,
respectively,  from Locust Street Securities,  Inc. ("LSSI"), an affiliate.  For
the year ended December 31, 1997, the premiums, net of reinsurance, for variable
products from LSSI totaled $13,000.

The Golden American Board of Directors has agreed by resolution to provide funds
as needed  for the  Company to  maintain  policyholders'  surplus  that meets or
exceeds the greater of: (1) the minimum capital adequacy standards to maintain a
level of capitalization  necessary to meet A.M. Best Company's guidelines or one
level less than the one  originally  given to First Golden,  or (2) the New York
State Insurance Department risk-based capital minimum requirements as determined
in  accordance  with New York  statutory  accounting  principles.  No funds were
transferred  from Golden  American in 1999,  1998, or 1997. On January 31, 2000,
Golden  American  provided a cash capital  contribution  of  $2,100,000 to First
Golden.

9. COMMITMENTS AND CONTINGENCIES
--------------------------------------------------------------------------------


REINSURANCE: At December 31, 1999, First Golden had a reinsurance treaty with an
unaffiliated  reinsurer  covering a significant  portion of the mortality  risks
under its  variable  contracts.  First Golden  remains  liable to the extent its
reinsurer  does not meet its  obligation  under the  reinsurance  agreement.  At
December 31, 1999 and December 31, 1998, the Company has a payable of $4,000 and
$1,000,  respectively,  for reinsurance  premiums.  Included in the accompanying
financial statements are net considerations to the reinsurer of $27,000, $9,000,
and $1,000 for the years  ended  December  31,  1999 and 1998 and for the period
October 25, 1997  through  December  31, 1997,  respectively.  In addition,  the
accompanying  financial  statements  contain net policy  benefits  recoveries of
$7,000 for the year ended December 31, 1999.

The reinsurance  treaty that covered the nonstandard  minimum  guaranteed  death
benefits for new business has been terminated for business issued after December
31, 1999. The Company is currently pursuing alternative reinsurance arrangements
for new business issued after December 31, 1999.  There can be no assurance that
such  alternative  arrangements  will be  available.  Any  reinsurance  covering
business in force at December 31, 1999 will continue to apply in the future.

LITIGATION:  The  Company,  like  other  insurance  companies,  may be  named or
otherwise   involved  in  lawsuits,   including   class   action   lawsuits  and
arbitrations.  In some  class  action  and other  lawsuits  involving  insurers,
substantial  damages  have  been  sought  and/or  material  settlement  or award
payments have been made. The Company currently believes no pending or threatened
lawsuits or actions exist that are reasonably  likely to have a material adverse
impact on the Company.

VULNERABILITY FROM CONCENTRATIONS: The Company has various concentrations in its
investment portfolio (see Note 3 for further  information).  The Company's asset
growth, net investment  income,  and cash flow are primarily  generated from the
sale of variable  annuities and associated  future policy benefits.  Substantial
changes in tax laws would make these  products less  attractive to consumers and
extreme  fluctuations in interest rates or stock market returns which may result
in higher lapse experience than assumed could cause a severe impact to the


                                       29
<PAGE>


Company's financial  condition.  A significant portion of the Company's sales is
generated  by three  broker/dealers,  each  having at least ten percent of total
sales. One of these  distributors sold 62.1% of the Company's  products in 1998.
This relationship was discontinued as of July, 1999 for new business.

LEASES: The Company has a lease for its home office space which expires December
31, 2001. The Company also leases certain other equipment under operating leases
which  expire in 2000.  Rent  expense for the years ended  December 31, 1999 and
1998 and the periods  October 25, 1997 through  December 31, 1997 and January 1,
1997  through  October 24, 1997 was  $158,000,  $95,000,  $25,000,  and $34,000,
respectively.  At December  31,  1999,  minimum  rental  payments  due under the
operating leases are $82,000 in 2000 and $76,000 in 2001.

REVOLVING NOTE PAYABLE: To enhance short-term liquidity, the Company established
a revolving note payable effective July 31, 1999 and expiring July 31, 2000 with
SunTrust  Bank,  Atlanta (the  "Bank").  The note was approved by the  Company's
Board of Directors on September 29, 1998.  The total amount the Company may have
outstanding is  $10,000,000.  The note accrues  interest at an annual rate equal
to: (1) the cost of funds for the Bank for the period applicable for the advance
plus 0.25% or (2) a rate quoted by the Bank to the Company for the advance.  The
terms of the  agreement  require the Company to  maintain  the minimum  level of
Company Action Level Risk Based Capital as  established by applicable  state law
or regulation.  Under this agreement,  the Company incurred  interest expense of
$12,000 in 1999.  At December 31, 1999,  the Company had  borrowings of $100,000
under this  agreement.


                                       30
<PAGE>


ITEM  9.  CHANGES  IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING  AND
          FINANCIAL DISCLOSURE.

None.

PART III.

ITEMS 10 - 13.

Information  called for by items 10 through 13 of this part is omitted  pursuant
to General Instruction I (2) (c) of Form 10-K.

PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a)(1) and (a)(2) Financial statements and schedules

The  following  financial  statements of First Golden  American  Life  Insurance
Company of New York are included in Item 8:

                                                                            PAGE

     Balance Sheets - December 31, 1999 and 1998.............................12
     Statements of Operations - For the years ended December 31,
       1999 and 1998 and for the periods October 25, 1997 through
       December 31, 1997 and January 1, 1997 through October 24, 1997........14
     Statements of Changes in Stockholder's Equity - For the years
       ended December 31, 1999 and 1998 and for the periods October
       25, 1997 through December 31, 1997 and January 1, 1997 through
       October 24, 1997......................................................15
     Statements of Cash Flows - For the years ended December 31,
       1999 and 1998 and for the periods October 25, 1997 through
       December 31, 1997 and January 1, 1997 through October 24, 1997........16
     Notes to Financial Statements...........................................18

The  following  financial  statement  schedules  of First Golden  American  Life
Insurance Company of New York are included in Item 14(d):

                                                                            PAGE

     Schedule I - Summary of investments - other than investments
       in related parties....................................................32
     Schedule III - Supplementary insurance information......................33

All other schedules listed in Article 7 of Regulation S-X are not required under
the related instructions or are inapplicable and therefore have been omitted.

(a)(3), and (c) Exhibits

Exhibits filed are listed in the attached exhibit index.

(b) No reports on Form 8-K were filed for the quarter ended December 31, 1999.


                                       31
<PAGE>

<TABLE>
<CAPTION>

ITEM 14(D). SCHEDULES.

                                                             SCHEDULE I
                                                       SUMMARY OF INVESTMENTS
                                              OTHER THAN INVESTMENTS IN RELATED PARTIES
                                                       (DOLLARS IN THOUSANDS)

                                                                                                                           BALANCE
                                                                                                                             SHEET
DECEMBER 31, 1999                                                                             COST 1         VALUE          AMOUNT
--------------------------------------------------------------------------------------- -------------- ------------ ---------------
<S>                                                                                          <C>            <C>          <C>
TYPE OF INVESTMENT
Fixed maturities, available for sale:
  Bonds:
   United States government and governmental agencies and
     authorities..................................................................            $3,486        $3,398        $3,398
   Public utilities...............................................................             2,030         1,953         1,953
   Corporate securities...........................................................            21,994        21,084        21,084
   Mortgage-backed securities.....................................................             1,556         1,548         1,548
   Other asset-backed securities..................................................               112           112           112
                                                                                        -------------- ------------ ---------------
Total fixed maturities, available for sale........................................            29,178        28,095        28,095

Short-term investments............................................................             2,309                       2,309
                                                                                        --------------              ---------------
Total investments.................................................................           $31,487                     $30,404
                                                                                        ==============              ===============
</TABLE>
[FN]
Note 1: Cost is defined as amortized cost for bonds and  short-term  investments
        adjusted for amortization of premiums and accrual of discounts.
</FN>



                                                                 32
<PAGE>
<TABLE>
<CAPTION>



                                                            SCHEDULE III
                                                 SUPPLEMENTARY INSURANCE INFORMATION
                                                       (DOLLARS IN THOUSANDS)

COLUMN A            COLUMN B    COLUMN C   COLUMN D   COLUMN E    COLUMN F   COLUMN G   COLUMN H   COLUMN I    COLUMN J  COLUMN K
------------------- ----------- ---------- ---------- ----------- ---------- ---------- ---------- ----------- --------- ----------
                                   FUTURE
                                   POLICY                                                           AMORTIZA-
                                BENEFITS,                  OTHER                         BENEFITS     TION OF
                                  LOSSES,                 POLICY                          CLAIMS,    DEFERRED
                      DEFERRED     CLAIMS                 CLAIMS  INSURANCE                LOSSES      POLICY
                        POLICY        AND   UNEARNED         AND   PREMIUMS        NET        AND      ACQUI-     OTHER
                   ACQUISITION       LOSS    REVENUE    BENEFITS        AND INVESTMENT SETTLEMENT      SITION  OPERATING  PREMIUMS
           SEGMENT       COSTS   EXPENSES    RESERVE     PAYABLE    CHARGES     INCOME   EXPENSES       COSTS   EXPENSES   WRITTEN
-----------------------------------------------------------------------------------------------------------------------------------
                                                           POST-MERGER
-----------------------------------------------------------------------------------------------------------------------------------
<S>                     <C>       <C>              <C>        <C>       <C>      <C>          <C>        <C>        <C>         <C>
YEAR ENDED DECEMBER 31, 1999:

  LIFE INSURANCE        $3,198     $7,583          --         --        $556     $2,147       $590       $201       $417        --

YEAR ENDED DECEMBER 31, 1998:

  Life insurance        $2,347    $10,830          --         --        $239     $1,844       $376        $76       $378        --

PERIOD OCTOBER 25, 1997 THROUGH
  DECEMBER 31, 1997:

  Life insurance          $189     $2,506          --         --          $8       $286        $26        $13       $159        --

                                                            PRE-MERGER
-----------------------------------------------------------------------------------------------------------------------------------
PERIOD JANUARY 1, 1997 THROUGH
  OCTOBER 24, 1997:

  Life insurance           N/A        N/A         N/A       N/A           $4     $1,449        $48         $7       $445        --


</TABLE>


                                                                 33
<PAGE>

<TABLE>

Pursuant to the requirements of the Securities  Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.

                                        FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK
                                                            (Registrant)

DATE: MARCH 29, 2000                                                                              BY /S/ Barnett Chernow
                                                                                                     -------------------
                                                                                                       Barnett Chernow
                                                                                                       President

Pursuant to the requirements of the Securities  Exchange Act of 1934, this report signed below by the following persons on behalf of
the Registrant and in the capacities and on the dates indicated.
                      SIGNATURES                                         TITLE
<S>     <C>                                            <C>
         -----------------------------------           ----------------------------------------------|
                                                                                                     |
         /s/ Barnett Chernow                           President and Director                        |
         -----------------------------------                                                         |
         Barnett Chernow                                                                             |
         (principal executive officer)                                                               |
                                                                                                     |
         /s/ Mary Bea Wilkinson                        Senior Vice President and Treasurer           |
         -----------------------------------                                                         |
         Mary Bea Wilkinson                                                                          |
         (principal financial officer)                                                               |
                                                                                                     |
         /s/ Cheryl L. Harding                         Assistant Vice President and                  |
         -----------------------------------           Chief Accounting Officer                      |
         Cheryl L. Harding                                                                           |
         (principal accounting officer)                                                              |
                                                                                                     |-- March 29, 2000
         /s/ Myles R. Tashman                          Executive Vice President, General             |
         -----------------------------------           Counsel, Secretary and Director               |
         Myles R. Tashman                                                                            |
                                                                                                     |
         /s/ Carol V. Coleman                                                                        |
         -----------------------------------           Director                                      |
         Carol V. Coleman                                                                            |
                                                                                                     |
         /s/ Michael W. Cunningham                                                                   |
         -----------------------------------           Director                                      |
         Michael W. Cunningham                                                                       |
                                                                                                     |
         /s/ Stephen J. Friedman                                                                     |
         -----------------------------------           Director                                      |
         Stephen J. Friedman                                                                         |
                                                                                                     |
         /s/ Andrew J. Kalinowski                                                                    |
         -----------------------------------           Director                                      |
         Andrew J. Kalinowski                                                                        |
                                                                                                     |
         /s/ Bernard Levitt                                                                          |
         -----------------------------------           Director                                      |
         Bernard Levitt                                                                              |
                                                                                                     |
         /s/ Phillip R. Lowrey                                                                       |
         -----------------------------------           Director                                      |
         Phillip R. Lowrey                                                                           |
                                                                                                     |
         /s/ Roger A. Martin                                                                         |
         -----------------------------------           Director                                      |
         Roger A. Martin                                                                             |
                                                                                                     |
         /s/ Mark A. Tullis                                                                          |
         -----------------------------------           Director                                      |
         Mark A. Tullis                                                            ------------------|


</TABLE>

                                                                 34
<PAGE>

<TABLE>
<CAPTION>

<S>                                                                                                                   <C>



                                                                INDEX
                                               Exhibits to Annual Report on Form 10-K
                                                    Year ended December 31, 1999
                                        FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK

                                                                                                                    PAGE NUMBER
                                                                                                                    -----------

    2      PLAN OF ACQUISITION

           (a)    Agreement and Plan of Merger dated July 7, 1997, among Equitable of Iowa Companies ("Equitable"),
                  ING Groep N.V. and PFHI Holdings, Inc. (incorporated by reference from Exhibit 2 in Equitable's
                  Form 8-K filed July 11, 1997.......................................................................
                                                                                                                       ------

    3      ARTICLES OF INCORPORATION AND BY-LAWS

           (a)    Articles of Incorporation of First Golden American Life Insurance Company of New York
                  ("Registrant" or "First Golden") (incorporated by reference from Exhibit 3(i) to Amendment No. 1
                  to Registrant's Registration Statement on Form S-1 filed with the Securities and Exchange
                  Commission (the "SEC") on or about March 18, 1997 (File No. 333-16279))............................
                                                                                                                       ------

           (b)    By-laws of First Golden (incorporated by reference from Exhibit 3(ii) to Amendment No. 1 to
                  Registrant's Registration Statement on Form S-1 filed with the SEC on or about March 18, 1997
                  (File No. 333-16279))..............................................................................
                                                                                                                       ------

    4      INSTRUMENTS DEFINING THE RIGHTS OF SECURITY HOLDERS, INCLUDING INDENTURES

           (a)    Individual Deferred Combination Variable and Fixed Annuity Contract (incorporated by reference
                  from Exhibit 4(a) to a Registration Statement for First Golden on Form S-1 filed with the SEC on
                  or about April 23, 1999 (File No. 333-77385))......................................................
                                                                                                                       ------

           (b)    Individual Deferred Combination Variable and Fixed Annuity Contract Application (incorporated by
                  reference from Exhibit 4(b) to a Registration Statement for First Golden on Form S-1 filed with
                  the SEC on or about April 23, 1999 (File No. 333-77385))...........................................
                                                                                                                       ------

           (c)    Schedule Page to the DVA Plus-NY Contract featuring the Galaxy VIP Fund  (incorporated  by
                  reference  from  Exhibit  4(f) to Amendment No. 1 to a  Registration  Statement for First Golden
                  on Form S-1 filed  with the SEC on or about  November  1, 1999 (File No. 333-77385))...............
                                                                                                                       ------

   10      MATERIAL CONTRACTS

           (a)    Services Agreement, dated November 8, 1996, between Directed Services, Inc. and First Golden
                  (incorporated by reference from Exhibit 10(a) to Amendment No. 1 to Registrant's Registration
                  Statement on Form S-1 filed with the SEC on or about March 18, 1997 (File No. 333-16279))..........
                                                                                                                       ------

           (b)    Administrative Services Agreement, dated November 8, 1996, between First Golden and Golden
                  American Life Insurance Company (incorporated by reference from Exhibit 10(b) to Amendment No. 1
                  to Registrant's Registration Statement on Form S-1 filed with the SEC on or about March 18, 1997
                  (File No. 333-16279))..............................................................................
                                                                                                                       ------


</TABLE>


                                                                 35
<PAGE>
<TABLE>
<CAPTION>
<S>                                                                                                                    <C>



                                                                INDEX
                                               Exhibits to Annual Report on Form 10-K
                                                    Year ended December 31, 1999
                                      FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK

                                                                                                                    PAGE NUMBER
                                                                                                                    -----------
           (c)    Form of Administrative Services Agreement between First Golden and Equitable Life Insurance
                  Company of Iowa (incorporated by reference from Exhibit 10(c) to Amendment No. 1 to Registrant's
                  Registration Statement on Form S-1 filed with the SEC on or about March 18, 1997 (File No.
                  333-16279))........................................................................................
                                                                                                                       ------

           (d)    Form of Custodial Agreement between Registrant and The Bank of New York (incorporated by reference
                  from Exhibit 10(d) to Amendment No. 1 to Registrant's Registration Statement on Form S-1 filed
                  with the SEC on or about March 18, 1997 (File No. 333-16279))......................................
                                                                                                                       ------

           (e)    Form of Participation Agreement between First Golden and the Travelers Series Fund Inc.
                  (incorporated by reference from Exhibit 10(e) to a Registration Statement for First Golden on Form
                  S-1 filed with the SEC on or about April 23, 1999 (File No. 333-77385))............................
                                                                                                                       ------

           (f)    Participation Agreement between First Golden and the Greenwich Street Series Fund Inc.
                  (incorporated by reference from Exhibit 10(f) to a Registration Statement for First Golden on Form
                  S-1 filed with the SEC on or about April 23, 1999 (File No. 333-77385))............................
                                                                                                                       ------

           (g)    Participation Agreement between First Golden and the Smith Barney Concert Allocation Series Inc.
                  (incorporated by reference from Exhibit 10(g) to a Registration Statement for First Golden on Form
                  S-1 filed with the SEC on or about April 23, 1999 (File No. 333-77385))............................
                                                                                                                       ------

           (h)    Form of Participation Agreement between First Golden and PIMCO Variable Insurance Trust
                  (incorporated by reference from Exhibit 10(h) to a Registration Statement for First Golden on Form
                  S-1 filed with the SEC on or about April 23, 1999 (File No. 333-77385))............................
                                                                                                                       ------

           (i)    Form of  Participation  Agreement  between Golden American and The Galaxy VIP Fund  (incorporated
                  by reference  from Exhibit 10(1) to Amendment No. 1 to a Registration Statement for First Golden
                  on Form S-1 filed  with the SEC on or about  September 24, 1999 (File No. 333-76945))
                                                                                                                       ------

           (j)    Asset Management Agreement, dated March 30, 1998, between First Golden and ING Investment
                  Management LLC (incorporated by reference from Exhibit 10(g) to First Golden's Form 10-Q filed with
                  the SEC on August 14, 1998 (File No. 333-16279))...................................................
                                                                                                                       ------

           (k)    Underwriting Agreement between First Golden and Directed Services, Inc. (incorporated by reference
                  from Exhibit 1 to Amendment No. 1 to Registrant's Registration Statement on Form S-1 filed with
                  the SEC on or about March 18, 1997 (File No. 333-16279))...........................................
                                                                                                                       ------

           (l)    Revolving Note Payable, dated July 27, 1998, between First Golden and SunTrust Bank, Atlanta
                  (incorporated by reference from Exhibit 10(i) to First Golden's Form 10-Q filed with the SEC on
                  November 12, 1998 (File No. 333-16279))............................................................
                                                                                                                       ------

           (m)    Revolving Note Payable, dated July 31, 1999, between First Golden and SunTrust Bank, Atlanta
                  (incorporated by reference from Exhibit 10(i) to First Golden's Form 10-Q filed with the SEC on
                  August 13, 1999 (File No. 333-16279))..............................................................
                                                                                                                       ------

   27      FINANCIAL DATA SCHEDULE (ELECTRONIC FILING ONLY)..........................................................
                                                                                                                       ------
</TABLE>

                                                                 36