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, 2001.

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)

   1000 Woodbury Road, Suite 102
       Woodbury, New York                                  11797
---------------------------------           ------------------------------------
     (Address of principal                               (Zip Code)
        executive offices)

Registrant's Telephone Number, including area code : (800) 963-9539
                                                     --------------

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

      TITLE OF EACH CLASS           NAME OF EACH EXCHANGE ON WHICH REGISTERED
             N/A                                       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 (ss.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,  2002,  200,000  shares  of Common  Stock,  $10 par  value,  are
authorized, issued and outstanding.
As of March 27, 2002,  6,000 shares of Preferred  Stock,  $5,000 par value,  are
authorized.

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 38.
                                                                    Page 1 of 40



<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"  or  the  "Parent").  Golden  American  is  a  wholly  owned
subsidiary  of Equitable  Life  Insurance  Company of Iowa  ("Equitable  Life").
Equitable Life is a wholly owned subsidiary of Equitable of Iowa Companies, Inc.
("EIC"),  which is an  indirect  wholly  owned  subsidiary  of ING  Groep,  N.V.
("ING"), 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 9 of the financial statements
for further information regarding related party transactions.

On October 24,  1997 (the  "Merger  Date"),  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 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.

PRODUCTS

The Company offers variable and fixed 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 and fixed insurance  products  currently offered by the Company include
one variable annuity product,  and two fixed annuity  products.  During the year
ended  December 31,  2001,  First  Golden  began  selling two new fixed  annuity
products,  FGA New York  Flex  and FGA New York  MYGA.  Variable  annuities  are
long-term savings vehicles in which contractowner premiums (purchase  payments)
are recorded and maintained in subaccounts within a separate account established
and registered with the SEC as a unit  investment  trust.  The variable  annuity
issued by First  Golden is a  combination  variable and fixed  deferred  annuity
contract  under  which  some  or all of the  premiums  may be  allocated  by the
contract  owner to a fixed account  available  under the contract.  In addition,
First Golden issues fixed annuity  contracts  which offer only one or more fixed
accounts, and do not provide for allocation to any of the variable subaccounts.

At December 31, 2001,  the funds on deposit in the Company's  variable and fixed
annuity  separate and fixed  accounts  totaled  $50.8  million and $9.1 million,
respectively ($57.7 million and $7.1 million  respectively at December 31, 2000,
and $47.2 million and $7.6 million respectively at December 31, 1999).  Variable
and fixed  annuities  provide the Company with fee based revenues in the form of
various  charges and fees  charged to the  contract  owner's  account.  Revenues
include  charges for mortality and expense risk,  contract  administration,  and
surrender charges.

Marketing  of the  variable  products  on  behalf of First  Golden is  primarily
through broker/dealers.


                                       2
<PAGE>



BUSINESS ENVIRONMENT

The current business and regulatory  environment presents many challenges to the
insurance  industry.  The variable  and fixed  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.  The economic
environment  during 2001 was  characterized  by a relatively  weak economy,  low
interest rates and a volatile equity market,  which experienced a major decline.
However, there is an aging U.S. population which is increasingly concerned about
retirement, estate planning, 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.  Despite an economic  downturn in the near term,  these factors should
contribute to wealth accumulation needs.

REGULATION

The  Company's  insurance   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 sales of its products
are generally regulated by the National Association of Securities Dealers,  Inc.
See Item 7, Management's Discussion and Analysis of Results of Operations.

ITEM 2. PROPERTIES.

From January 1, 2001 to September 30, 2001, First Golden's  business  operations
were housed in a leased  facility in New York,  New York,  where  certain of the
Company's  records  were  maintained.  The 2,568 square feet of office space was
leased  through 2001. As of October 1, 2001,  First  Golden's  principal  office
moved to Woodbury, 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.


                                       3
<PAGE>



PART II.

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

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

A filing was made on October  31,  2001 in  accordance  with Item 5 of Form 8-K:
Other  Events and  Regulation  FD  Disclosure.  The purpose of the filing was to
report that on  September  25,  2001,  the Board of  Directors  of First  Golden
approved a plan of merger to merge First Golden into  ReliaStar  Life  Insurance
Company of New York  ("RLNY") an  affiliated  company.  The merger is  currently
anticipated to be effective on April 1, 2002, or shortly thereafter,  subject to
the  approval  of the  Insurance  Departments  of the  States of New  York,  and
Delaware.

A prospectus  supplement  describing  the proposed  transaction  and  containing
financial  information  on RLNY was  filed  with  the  Securities  and  Exchange
Commission on October 19, 2001 (File No. 333-16501).  The prospectus  supplement
was  incorporated  by reference  and included as an exhibit item to the Form 8-K
filing.

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.

With regard to  restrictions  on the payment of dividends refer to the Liquidity
and Capital Resources section.

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's  results of
operations.  In addition, some analysis and information regarding First Golden's
financial  condition  and  liquidity  and capital  resources is  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.

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

PREMIUMS

The Company  reported $4.1 million in variable annuity premiums and $3.0 million
of fixed annuity  premiums  during the year ended  December 31, 2001 compared to
$17.0 million of variable  annuity premiums and $0 of fixed annuity premiums for
the year ended December 31, 2000. This decline in variable  annuity  premiums is
primarily due to lower variable  annuity  industry sales caused by a downturn in
equity  markets.  This was partially  offset by an increase in premiums from the
sale of fixed annuities.

During the year ended December 31, 2001,  First Golden began selling,  two fixed
annuity products, Flex Annuity and a Multi-Year Gurantee Annuity ("MYGA").

For the Company's variable and fixed annuity  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.


                                       4
<PAGE>



Premiums,  net of  reinsurance,  for  variable  products  from  two  significant
broker/dealers,  each  having at least ten  percent  of total  variable  annuity
sales,  for the year ended  December 31, 2001  totaled $2.5 million  (61.2 %) of
premiums  compared to $13.5 million (79.2%) from two significant  broker/dealers
for the year ended December 31, 2000.

Premiums, for fixed products from two significant broker/dealers, each having at
least ten percent of total fixed annuity sales,  for the year ended December 31,
2001 totaled $2.5 million, (75.7% of total fixed premiums).

REVENUES

Management fee revenue increased by $86,000 for the year ended December 31, 2001
from $29,000 for the year ended  December 31,  2000.  During 2001,  First Golden
provided certain managerial and supervisory services to Directed Services,  Inc.
("DSI").  The fee paid to First Golden for these services,  which is calculated,
as a percentage of average assets in the variable separate accounts, was $89,000
for the year ended December 31, 2001.

Net investment  income was $1,876,000 for the year ended December 31, 2001. This
was a decrease of 7.2% compared to net  investment  income of $2,022,000 for the
year  ended  December  31,  2000 due to a decline  in  investment  yields of the
short-term investments. The Company recognized realized gains of $299,000 during
2001  compared  to  realized  losses of  $689,000  during  2000 from the sale of
investments.

EXPENSES

The Company  reported total insurance  benefits and expenses of $1.0 million for
the year ended  December 31, 2001 and $1.8  million for the year ended  December
31,  2000.  Insurance  benefits  and  expenses  consist of interest  credited to
account  balances,  benefit  claims  incurred  in  excess of  account  balances,
commissions,  general expenses,  insurance taxes, state licenses,  and fees, and
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 $340,000 and $401,000 for the years
ended December 31, 2001 and December 31, 2000, respectively.

Commissions  decreased  $731,000  in the  year  ended  December  31,  2001  from
$1,115,000  for the year ended  December 31, 2000.  Changes in  commissions  are
generally  related to changes in the level of fixed and variable  product  sales
and can be explained by the decrease in total  annuity  sales from $17.0 million
for year ended 2000 compared to $7.1 million for the year ended 2001. Most costs
incurred as the result of new sales have been deferred,  thus having very little
impact on current  earnings.  General  expenses were $442,000 and $1,244,000 for
the years  ended  2001 and 2000,  respectively.  This  decrease  was mainly as a
result of lower cost  allocations.  Cost  allocations  from Golden are partially
based the level of First Golden  product sales and related  sales  compensation.
The  Company's  product sales  decreased by $12.9 million  during the year ended
December 31, 2001, causing a decrease in the costs allocated to First Golden.

The Company's  deferred policy acquisition costs ("DPAC") were 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
$507,000  of expenses  associated  with the sale of fixed and  variable  annuity
contracts  for the year ended  December 31, 2001.  Expenses of $1.3 million were
deferred  for the year ended  December  31, 2000.  These  acquisition  costs are
amortized in proportion to the expected gross profits.  Amortization of DPAC was
$338,000  and  $322,000  for  the  years  ended  December  31,  2001  and  2000,
respectively.  The  amortization of VPIF was $16,000 for the year ended December
31, 2001 and  $(4,000) for the year ended  December  31,  2000.  During 2001 and
2000,  VPIF was adjusted for the effect of realized  gain (losses) by $4,000 and
$(22,000), respectively. During 2001, VPIF was adjusted to increase amortization
by $1,000 to reflect changes in the assumptions  related to the timing of future
gross  profits.  During  2000,  VPIF was  adjusted to increase  amortization  by
$4,000,  to reflect changes in the  assumptions  related to the timing of future
gross profits.


                                       5
<PAGE>



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, 2001 is $9,000 in 2002,  $8,000 in 2003,  $7,000 in
2004,  $5,000 in 2005, and $4,000 in 2006.  Actual  amortization  may vary based
upon changes in assumptions and experience.

INCOME

Net income for the year ended  December  31,  2001 was  $1,301,000.  This was an
increase of $1,165,000  from net income of $136,000 for the year ended  December
31, 2000.

Comprehensive  gain for 2001 was $2,179,000,  compared to a gain of $606,000 for
2000.


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

RATINGS

Currently,  the  Company's  ratings are A+ by A.M.  Best  Company,  AA+ by Fitch
Ratings, 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.

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

FIXED MATURITIES: At December 31, 2001, the Company had fixed maturities with an
amortized  cost of $28.7 million and an estimated  fair value of $29.4  million.
The  Company  classifies  100% of its  securities  as  available  for sale.  Net
unrealized  appreciation on fixed  maturities of $657,000 was comprised of gross
appreciation of $744,000 and gross depreciation  $87,000.  At December 31, 2000,
net unrealized investment losses on fixed maturities designated as available for
sale totaled $566,000.

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 ($19.3  million or 67.3%),  that are rated BBB+ to
BBB- by Standard & Poor's ($6.1 million or 21.1%),  and below  investment  grade
securities which are securities issued by corporations that are rated BB+ to BB-
by Standard & Poor's ($1.0 million or 3.6%).  Securities not rated by Standard &
Poor's had a National Association of Insurance  Commissioners ("NAIC") rating of
1 ($2.3 million or 8.0%).

Fixed  maturities rated BBB+ to BBB- may have  speculative  characteristics  and
changes in economic  conditions or other  circumstances  that 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.


                                       6
<PAGE>



The Company estimates the fair value of its below investment grade portfolio was
$1.0 million,  or 99.6% of the amortized  cost value,  at December 31, 2001. 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, 2001, the average yield
at amortized cost on the Company's  below  investment  grade  portfolio was 8.1%
compared to 6.5% for the Company's investment grade corporate bond portfolio.

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 issuer and/or guarantor 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,  2001,  the  amortized  cost basis of the
Company's fixed maturities portfolio was reduced by $36.5 million as a result of
sales,  maturities,  and scheduled principal  repayments.  In total, net pre-tax
gains from sales, calls, and scheduled principal  repayments of fixed maturities
amounted to $299,000 in 2001.

At December 31, 2001, no fixed  maturities  were deemed to have  impairments  in
value that are other than  temporary.  At December 31, 2001,  the Company had no
investments in default.  The Company's fixed maturities portfolio had a combined
yield at amortized cost of 6.4% at December 31, 2001.

OTHER ASSETS

DPAC  represents  certain  deferred  costs of acquiring new insurance  business,
principally  first year  commissions  and  interest  bonuses and other  expenses
related to production of new business  after the merger date. 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,
2001,  the  Company  had VPIF and DPAC  balances  of $73,000  and $4.2  million,
respectively.


                                       7
<PAGE>



Due from affiliates  increased by $2.7 million to $2.8 million due mainly to the
timing of cash settlements.

Other assets increased by $132,000 to $149,000 during 2001. The increase results
primarily from an increase in receivables from the separate account.

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, 2001 was  approximately
$9,000.

At December 31, 2001,  the Company had $50.8 million of separate  account assets
compared to $57.7 million at December 31, 2000. The decrease in separate account
assets primarily resulted from negative equity market returns. This decrease was
partially offset by net  policyholder  transfers to the separate account options
from the fixed account option within the variable products.

At December 31, 2001, the Company had total assets of $93.7 million,  a decrease
of 2.8% over total assets at December 31, 2000.

LIABILITIES

Future policy  benefits from variable and fixed annuity  contracts  increased by
$2.0  million  during  2001 to $9.1  million,  mainly  reflecting  growth in the
Company's  fixed account  option for fixed  annuity  products.  Policy  reserves
represent the premiums  received plus  accumulated  interest less  mortality and
administration charges and net of transfers to the separate account. At December
31, 2001, the Company had $50.8 million of separate account liabilities. This is
a decrease of 11.9% over separate  account  liabilities as of December 31, 2000,
and is primarily  related to negative equity market returns,  slightly offset by
net transfers to the separate account from the fixed account option.

Due to  affiliates  decreased by $987,000 due to the  settlement of a payable to
Golden American.

Other liabilities decreased $370,000 during 2001. The decrease results primarily
from the  timing of the  settlement  of  account  transfers  and a  decrease  in
outstanding checks.

The Company's  total  liabilities  decreased $4.9 million (7.3%) during 2001 and
totaled $62.2 million at December 31, 2001. The decrease is primarily the result
of a decline in separate account liabilities, slightly offset by the increase in
future policy benefits.

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 used in operating  activities  was $1.8 million in 2001 compared to net
cash provided by  operations of $1.6 million in 2000.  The decrease in operating
cash flow results primarily from the timing of cash settlements with affiliates.


                                       8
<PAGE>



Net cash used in investing  activities  was $2.7 million during 2001 as compared
to $2.7  million of net cash  provided  by  investing  activities  in 2000.  The
decrease   results   primarily   from   the  use  of  cash  to   acquire   fixed
maturities-available  for sale as compared to net sales of fixed  maturities  in
2000.  This was mainly  related to growth in the Company's  fixed account option
for fixed annuity products.

Net cash provided by financing  activities increased to $1.6 million during 2001
as compared to net cash provided by financing  activities of $1.1 million during
the  prior  year.  The  change  in  financing  cash  flow  was  impacted  by net
reallocations to the Company's separate account, which decreased to $1.5 million
from $3.4 million during the prior year. In addition, policyholder receipts from
investment  contracts increased by a net amount of $531,000 as compared to 2000.
The increases in cash were partly offset by a decrease in capital  contributions
received during 2001.

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 was to expire on July 31, 2001. As of April 30,
2001,  the SunTrust  Bank,  Atlanta  revolving note facility was amended and now
expires on May 31, 2002.  Management  believes  these  sources of liquidity  are
adequate to meet the Company's short-term cash obligations.

From January 1, 2001 to September 30, 2001, First Golden's  principal office was
located in New York,  New York,  where  certain of the  Company's  records  were
maintained.  The 2,568 square feet of office space is leased through 2001. As of
October 1, 2001, First Golden's principal office moved to Woodbury, New York.

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 2001. In February 2000, Golden American
provided a cash capital contribution of $2.1 million to First Golden.

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 2002.  First Golden did not pay common stock dividends during 2001, 2000,
or 1999.

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.


                                       9
<PAGE>



VULNERABILITY FROM CONCENTRATIONS: The Company has various concentrations in the
investment  portfolio.  As of December 31, 2001, the Company had two investments
(other than bonds issued by agencies of the United States government)  exceeding
ten percent of stockholder's  equity.  First Golden's  operations consist of one
business segment, the sale of variable and fixed annuity products.  First Golden
is not dependent upon any single customer; however, two broker/dealers accounted
for a significant portion of its variable annuity sales volume in the year ended
2001.  Two  broker/dealers  accounted  for a  significant  portion  of its fixed
annuity sales volume in the year ended of 2001. Premiums are primarily generated
from consumers and corporations in the state of New York and Delaware.

REINSURANCE:  At December 31, 2001,  First Golden had two  reinsurance  treaties
with two unaffiliated reinsurers covering a significant portion of the mortality
risks and minimum  death  benefits  under its variable  contracts.  First Golden
remains liable to the extent its reinsurers do not meet their  obligations under
the reinsurance agreements.

On December 29, 2000, First Golden entered a reinsurance treaty with London Life
Reinsurance  Company of Pennsylvania,  an unaffiliated  reinsurer,  covering the
minimum death benefit  guarantees of First Golden's variable annuities issued on
or after January 1, 2000.

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 in the medeling  process include
anticipated contractowner behavior, and variable separate account performance.

Contractowners  bear the majority of the  investment  risks  related to variable
annuity  products.  The Company's  products also provide  certain  minimum death
benefit;  which  depend  in part 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 under a fixed  account or product 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
risk,  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  currently  no
material  solvency  risk to the  Company.  With  respect to a 10% drop in equity
values  from  year end 2001  levels,  variable  separate  account  funds,  which
represent  85% of the Company's in force  business,  pass the risk in underlying
fund  performance  to the  contractowner  (except  for certain  minimum  benefit
guarantees). With respect to interest rate movements up or down 100 basis points
from year end 2001 levels,  the remaining 15% of the Company's in force business
are fixed account funds, and most of these have market value  adjustments  which
provide significant protection to the Company against changes in interest rates.


                                       10
<PAGE>

CRITICAL ACCOUNTING POLICIES
----------------------------

GENERAL

We have  identified  the  accounting  policies below as critical to our business
operations  and  understanding  of our  results  of  operations.  For a detailed
discussion of the application of these and other accounting policies, see Note 1
in the Notes to Consolidated Financial Statements.  Note that the application of
these accounting  policies in the preparation of this report requires management
to use judgments involving  assumptions and estimates  concerning future results
or other developments including the likelihood,  timing or amount of one or more
future  transactions  or events.  There can be no assurance  that actual results
will not differ from those estimates. These judgments are reviewed frequently by
senior  management,  and an  understanding  of them  may  enhance  the  reader's
understanding of the Company's financial statements and Management's  Discussion
and Analysis.

AMORTIZATION OF DEFERRED  ACQUISITION COSTS AND VALUE OF PURCHASED  INSURANCE IN
FORCE

We  amortize  our  deferred  policy  acquisition  costs and  value of  purchased
insurance in force on our annuity  contracts in  proportion  to estimated  gross
profits.  The  amortization is adjusted to reflect actual gross profits over the
life of the  contracts  (up to 30 years for annuity  contracts).  Our  estimated
gross  profits  are  computed  based on  assumptions  related to the  underlying
contracts including, but not limited to, charges assessed against policyholders,
margins, lapse, persistency, expenses and asset growth rates.

Our current estimated gross profits include certain judgments concerning charges
assessed against policyholders,  margins, lapse, persistency, expenses and asset
growth  that  are  based on a  combination  of  actual  company  experience  and
historical market experience of equity and fixed income returns. Estimated gross
profits are adjusted  periodically to take into account the actual experience to
date and changes in assumptions as regards the future.  Short-term  variances of
actual  results from the  judgments  made by  management  can impact  quarter to
quarter earnings.

INCOME TAXES

The Company  establishes  reserves for possible proposed  adjustments by various
taxing  authorities.  Management believes there are sufficient reserves provided
for, or adequate defenses against any such adjustments.

                                       11
<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 equity  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 products, 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 benefit
     the tax  treatment of  investments  that  compete with annuity  product for
     retirement  saving may adversely  affect the tax treatment of the Company's
     products and benefit thereunder.

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

4.   Increasing  competition  from  other  market  participants  for the sale of
     annuity products.

5.   Other factors that could affect the performance of the Company,  including,
     but not limited to, market  conduct claims against the Company and/or firms
     selling   the   Company's   products,   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.


                                       12
<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, 2001 and 2000, and the related
statements of operations,  changes in stockholder's  equity,  and cash flows for
each of the three years in the period ended  December 31, 2001.  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, 2001 and 2000, and the results of
its  operations  and its cash  flows for each of the three  years in the  period
ended  December 31, 2001, 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


Atlanta, Georgia
March 15, 2002


                                       13
<PAGE>
<TABLE>
<CAPTION>



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




                                                                          December 31, 2001         December 31, 2000
                                                                       --------------------------------------------------
  ASSETS
<S>                                                                              <C>                       <C>

  Investments:
    Fixed maturities, available for sale, at fair value
       (cost: 2001 - $28,708; 2000 - $25,770).....................               $29,365                   $25,204

  Cash and cash equivalents.......................................                 5,751                     8,655

  Due from affiliates.............................................                 2,813                        68

  Accrued investment income.......................................                   400                       392

  Deferred policy acquisition costs...............................                 4,244                     4,170

  Value of purchased insurance in force...........................                    73                       113

  Property and equipment, less allowances for
     depreciation of $43 in 2001 and $36 in 2000 .................                    23                        30

  Goodwill, less accumulated amortization of
     $9 in 2001 and $7 in 2000....................................                    87                        89

  Current income taxes recoverable................................                    --                        17

  Other assets....................................................                   149                        17

  Separate account assets.........................................                50,832                    57,703
                                                                       --------------------------------------------------

  Total assets....................................................               $93,737                   $96,458
                                                                       ==================================================














SEE ACCOMPANYING NOTES.


                                                                 14
</TABLE>
<PAGE>
<TABLE>
<CAPTION>




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






                                                                          December 31, 2001         December 31, 2000
                                                                       ---------------------------------------------------

  LIABILITIES AND STOCKHOLDER'S EQUITY
<S>                                                                               <C>                       <C>
  Policy liabilities and accruals:
     Future policy benefits:
       Annuity products...........................................                 $9,078                    $7,065
  Current income taxes payable....................................                  1,011                        --
  Deferred income tax liability ..................................                  1,147                       843
  Due to affiliates...............................................                     --                       987
  Other liabilities...............................................                    113                       483
  Separate account liabilities....................................                 50,832                    57,703
                                                                       ---------------------------------------------------
                                                                                   62,181                    67,081


  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...................................                 26,049                    26,049
     Accumulated other comprehensive income (loss)................                    421                      (457)
     Retained earnings............................................                  3,086                     1,785
                                                                       ---------------------------------------------------
  Total stockholder's equity......................................                 31,556                    29,377
                                                                       ---------------------------------------------------
  Total liabilities and stockholder's equity......................                $93,737                   $96,458
                                                                       ===================================================



SEE ACCOMPANYING NOTES.


                                                                 15
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                                      STATEMENTS OF OPERATIONS
                                                       (DOLLARS IN THOUSANDS)






  Year Ended December 31                                                  2001               2000              1999
                                                              ------------------------------------------------------
<S>                                                                     <C>               <C>                 <C>
  Revenues:
    Annuity product charges...........................                    $759              $766               $556
    Management fee revenue............................                     115                29                 38
    Net investment income.............................                   1,876             2,022              2,147
    Realized gains (losses) on investments............                     299              (689)              (166)
                                                              ------------------------------------------------------
                                                                         3,049             2,128              2,575

  Insurance benefits and expenses:
    Annuity benefits:
       Interest credited to account balances..........                     340               401                590
       Benefit claims incurred in excess of account
        balances.....................................                        6                 4                 72
    Underwriting, acquisition, and insurance expenses:
       Commissions....................................                     192                --                 --
       Commissions - affiliates.......................                     192             1,115                697
       General expenses...............................                     442             1,244                337
       Insurance taxes, state licenses, and fees......                      22                70                 62
       Policy acquisition costs deferred..............                    (507)           (1,349)              (879)
         Amortization:
         Deferred policy acquisition costs............                     338               322                201
         Value of purchased insurance in  force.......                      16                (4)                35
  Goodwill............................................                       2                 2                  2
                                                              ------------------------------------------------------
                                                                         1,043             1,805              1,117

  Interest expense....................................                      --                --                 12
                                                              ------------------------------------------------------
                                                                         1,043             1,805              1,129
                                                              ------------------------------------------------------

  Income before income taxes..........................                   2,006               323              1,446

  Income taxes........................................                     705               187                635
                                                              ------------------------------------------------------

  Net income..........................................                  $1,301              $136               $811
                                                              ======================================================


SEE ACCOMPANYING NOTES.


                                                                 16
</TABLE>
<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
                                              -------------------------------------------------------------------------------------
<S>                                                   <C>           <C>                  <C>             <C>              <C>
Balance at January 1, 1999...............             $2,000        $23,936                $336            $838           $27,110
Comprehensive income:
  Net income.............................                 --             --                  --             811               811
  Change in net unrealized investment
  losses.................................                 --             --              (1,263)             --            (1,263)
                                                                                                                  -----------------
Comprehensive loss.......................                                                                                    (452)
                                              -------------------------------------------------------------------------------------
Balance at December 31, 1999.............              2,000         23,936                (927)          1,649            26,658
Comprehensive loss:
  Net income.............................                 --             --                  --             136               136
  Change in net unrealized investment
  gains..................................                 --             --                 470              --               470
                                                                                                                  -----------------
Comprehensive income.....................                                                                                     606
Contribution of capital..................                 --          2,113                  --              --             2,113
                                              -------------------------------------------------------------------------------------
Balance at December 31, 2000.............              2,000         26,049                (457)          1,785            29,377
Comprehensive income:
  Net income.............................                 --             --                  --           1,301             1,301
  Change in net unrealized investment
  gains..................................                 --             --                 878              --               878
                                                                                                                  -----------------
Comprehensive income.....................                                                                                   2,179
                                              -------------------------------------------------------------------------------------
Balance at December 31, 2001.............             $2,000        $26,049                $421          $3,086           $31,556
                                              =====================================================================================







SEE ACCOMPANYING NOTES.


                                                                 17
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                                      STATEMENTS OF CASH FLOWS
                                                       (DOLLARS IN THOUSANDS)




Year Ended December 31,                                                   2001             2000              1999
                                                               ---------------------------------------------------
<S>                                                                    <C>               <C>               <C>

OPERATING ACTIVITIES
Net income..............................................                $1,301             $136              $811
Adjustments to reconcile net income to net cash
  provided by (used in) operations:
  Adjustments related to annuity products:
     Interest credited to account balances..............                   340              401               590
     Charges for mortality and administration...........                    (3)              (2)              (11)
  Decrease (increase) in accrued investment income......                    (8)              51               (29)
  Policy acquisition costs deferred.....................                  (507)          (1,349)             (879)
  Amortization of deferred policy acquisition costs.....                   338              322               201
  Amortization of value of purchased insurance in
     force.............................................                     16               (4)               35
  Change in other assets, due to/from affiliates, other
     liabilities, and accrued income taxes..............                (3,099)           1,063               (32)
  Provision for depreciation and amortization...........                     1               21                90
  Provision for deferred income taxes...................                    77              233               (50)
  Realized (gains) losses on investments................                  (299)             689               166
                                                               ---------------------------------------------------
Net cash provided by (used in) operating activities.....                (1,843)           1,561               892

INVESTING ACTIVITIES
Sale, maturity, or repayment of investments:
  Fixed maturities - available for sale.................                36,843            9,852            10,849
  Short-term investments - net..........................                    --               --               980
                                                               ---------------------------------------------------
                                                                        36,843            9,852            11,829
Acquisition of investments:
  Fixed maturities - available for sale.................               (39,497)          (7,189)           (9,835)

Purchase of property and equipment......................                    --               --                (8)
                                                               ---------------------------------------------------
Net cash provided by (used in) investing activities.....                (2,654)           2,663             1,986






SEE ACCOMPANYING NOTES.

                                                                 18
</TABLE>
<PAGE>
<TABLE>
<CAPTION>



                                                STATEMENTS OF CASH FLOWS - CONTINUED
                                                       (DOLLARS IN THOUSANDS)




Year Ended December 31,                                                        2001             2000              1999
                                                                   ----------------------------------------------------

<S>                                                                          <C>               <C>            <C>
FINANCING ACTIVITIES
Proceeds from revolving note payable......................                     $--              $100          $13,000
Repayment of revolving note payable.......................                      --              (200)         (12,900)
Receipts from investment contracts credited to account
   balances ..............................................                   3,499             2,737            1,008
Return of account balances on investment contracts........                    (441)             (210)            (228)
Net reallocations to separate account.....................                  (1,465)           (3,444)          (4,606)
Contribution from parent..................................                      --             2,113               --
                                                                   ----------------------------------------------------
Net cash provided by (used in) financing activities.......                   1,593             1,096           (3,726)
                                                                   ----------------------------------------------------

Increase (decrease) in cash and cash equivalents..........                  (2,904)            5,320             (848)

Cash and cash equivalents at beginning of period..........                   8,655             3,335            4,183
                                                                   ----------------------------------------------------
Cash and cash equivalents at end of period................                  $5,751            $8,655           $3,335
                                                                   ====================================================

SUPPLEMENTAL  DISCLOSURE  OF CASH FLOW  INFORMATION
Cash paid during the period for:
   Interest...............................................                     $--               $10               $1
   Income taxes...........................................                      --               528               --




SEE ACCOMPANYING NOTES.

                                                                 19
</TABLE>
<PAGE>


                          NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2001

1. SIGNIFICANT ACCOUNTING POLICIES
 ------------------------------------------------------------------------------

ORGANIZATION  First Golden  American Life Insurance  Company of New York ("First
Golden" or the  "Company"),  a wholly owned  subsidiary of Golden  American Life
Insurance Company ("Golden  American" or the "Parent"),  was incorporated on May
24,  1996.  Golden  American is a wholly  owned  subsidiary  of  Equitable  Life
Insurance  Company of Iowa ("Equitable  Life").  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  variable and fixed annuity 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 December 3, 2001, the Board of Directors of Equitable of Iowa Companies, Inc.
approved  a plan to  contribute  its  holding of 100% of the stock of its wholly
owned subsidiary, Golden American, to another wholly owned subsidiary, Equitable
Life.  The  contribution  of stock  occurred on  December  31,  2001,  following
approval granted by the Insurance Department of the State of Delaware.

On October 24,  1997 (the  "merger  date"),  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 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.

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, 2001 and 2000, 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.


                                       20
<PAGE>



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.

ACCOUNTING FOR DERIVATIVE  INSTRUMENTS AND HEDGING  ACTIVITIES:  The Company may
from time to time utilize various derivative instruments to manage interest rate
and price risk (collectively, market risk). The Company has appropriate controls
in place, and financial exposures are monitored and managed by the Company as an
integral  part  of  their  overall  risk  management  program.  Derivatives  are
recognized on the balance sheet at their fair value.

The change in a derivative's fair value is generally to be recognized in current
period earnings,  unless the derivative is specifically designated as a hedge of
an exposure.  If certain  conditions are met, a derivative  may be  specifically
designated  as a hedge of an exposure to changes in fair value,  variability  of
cash flows, or certain foreign currency  exposures.  When designated as a hedge,
the fair value should be recognized currently in earnings or other comprehensive
income,  depending on whether such  designation is considered a fair value hedge
or a cash flow hedge.  With respect to fair value hedges,  the fair value of the
derivative,  as well as  changes  in the fair  value  of the  hedged  item,  are
reported in earnings.  For cash flow  hedges,  changes in the  derivatives  fair
value are reported in other comprehensive  income and subsequently  reclassified
into earnings when the hedged item affects earnings.  The ineffective portion of
a derivative's change in fair value will be immediately recognized in earnings.

The  Company  occasionally  purchases  a financial  instrument  that  contains a
derivative  that  is  "embedded"  in the  instrument.  The  Company's  insurance
products  are also  reviewed  to  determine  whether  they  contain an  embedded
derivative.  The Company  assesses whether the economic  characteristics  of the
embedded   derivative   are  clearly  and  closely   related  to  the   economic
characteristics  of the  remaining  component  of the  financial  instrument  or
insurance  product (i.e.,  the host contract) and whether a separate  instrument
with the same terms as the embedded  instrument  would meet the  definition of a
derivative  instrument.  When it is  determined  that  the  embedded  derivative
possesses economic  characteristics  that are not clearly and closely related to
the economic characteristics of the host contract and that a separate instrument
with the same terms  would  qualify as a  derivative  instrument,  the  embedded
derivative  is separated  from the host  contract and carried at fair value.  In
cases where the host  contract is measured at fair value,  with  changes in fair
value reported in current period earnings,  or the Company is unable to reliably
identify  and measure  the  embedded  derivative  for  separation  from its host
contract,  the entire contract is carried on the balance sheet at fair value and
is not designated as a hedging instrument.

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.  Other expenses  related to the production of
new business that was deferred  totaled  $114,000  during 2001,  $219,000 during
2000, and $38,000 during 1999.  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



                                       21
<PAGE>



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.

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.  In June  2001,  the  Financial  Accounting
Standards  Board issued  Statements of Financial  Accounting  Standards No. 141,
"Business  Combinations",  and No. 142, "Goodwill and Other Intangible  Assets",
effective for fiscal years  beginning  after  December 15, 2001.  For additional
information, refer to the pending accounting standards disclosure in Note 1.

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 3.00% to 6.75% during 2001,  4.00% to 6.75% during 2000, and 4.10% to 6.00%
during 1999.

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 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.  New York insurance law provides that 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.

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).


                                       22
<PAGE>



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 and fixed
products  designed  to  meet  customer  needs  for  tax-advantaged   saving  for
retirement  and protection  from death.  Variable and fixed 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.

NEW ACCOUNTING  STANDARDS:  As of January 1, 2001,  the Company  adopted FAS No.
133, Accounting for Derivative  Instruments and Hedging  Activities,  as amended
and  interpreted  by FAS No. 137,  Accounting  for  Derivative  Instruments  and
Hedging  Activities - Deferral of the Effective  Date of FASB Statement No. 133,
FAS No. 138,  Accounting for Certain Derivative  Instruments and Certain Hedging
Activities  - an Amendment  of FASB  Statement  No. 133, and certain FAS No. 133
implementation  issues. This standard, as amended,  requires companies to record
all derivatives on the balance sheet as either assets or liabilities and measure
those  instruments  at fair value.  The manner in which  companies are to record
gains or losses  resulting from changes in the fair values of those  derivatives
depends  on the  use of the  derivative  and  whether  it  qualifies  for  hedge
accounting.

Adoption  of FAS  No.  133 did  not  have a  material  effect  on the  Company's
financial  position  or  results  of  operations  given  the  Company's  limited
derivative and embedded derivative holdings.

The Company  chose to elect a  transition  date of January 1, 1999 for  embedded
derivatives.  Therefore,  only those derivatives  embedded in hybrid instruments
issued,  acquired or substantively modified by the entity on or after January 1,
1999 are recognized as separate assets or liabilities.  The cumulative effect of
the accounting change upon adoption was not material.


                                       23
<PAGE>



PENDING ACCOUNTING  STANDARDS:  In June 2001, the Financial Accounting Standards
Board issued  Statements of Financial  Accounting  Standards No. 141,  "Business
Combinations",  and No. 142, "Goodwill and Other Intangible  Assets",  effective
for  fiscal  years  beginning  after  December  15,  2001.  Under the new rules,
goodwill and intangible assets deemed to have indefinite lives will no longer be
amortized but will be subject to annual  impairment tests in accordance with the
Statements.  Other  intangible  assets will continue to be amortized  over their
useful lives.  The Company is required to adopt the new rules effective  January
1, 2002. The Company is evaluating the impact of the adoption of these standards
and has not yet  determined the effect of adoption on their  financial  position
and results of operations.

RECLASSIFICATIONS
Certain amounts in the 2000 and 1999 financial statements have been reclassified
to conform to the 2001 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
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 and fixed  annuities
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.

The National  Association of Insurance  Commissioners has revised the Accounting
Practices and Procedures Manual, the guidance that defines statutory  accounting
principles.  The revised manual became  effective  January 1, 2001, and has been
adopted,  at least in part,  by the  State of New  York,  which is the  state of
domicile  for First  Golden.  The  revised  manual  resulted  in  changes to the
accounting  practices  that the Companies  use to prepare their  statutory-basis
financial   statements.   The  impact  of  these   changes  to  First   Golden's
statutory-basis capital and surplus as of January 1, 2001 was not significant.


                                       24
<PAGE>
<TABLE>
<CAPTION>



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:


                                                         Net Income                     |      Stockholder's Equity
                                     ---------------------------------------------------|----------------------------------
                                                          Year ended December 31,       |                 December 31,
                                                2001              2000             1999 |            2001             2000
                                     ---------------------------------------------------|----------------------------------
                                                                    (DOLLARS IN THOUSANDS)
<S>                                           <C>               <C>                <C>           <C>               <C>
As reported under statutory                                                             |
  accounting principles.........                $677            $(290)             $790 |        $27,695           $26,630
Interest maintenance reserve....                 358             (250)              (52)|             70               (12)
Asset valuation reserve.........                  --               --                -- |            101               190
Future policy benefits..........                 215             (239)             (681)|           (335)             (936)
Nonadmitted assets..............                  --               --                -- |             23                30
Net unrealized appreciation                                                             |
  (depreciation) of fixed                                                               |
  maturities at fair value......                  --               --                -- |            657              (566)
Change in investment basis as                                                           |
  result of merger..............                 (39)             (78)             (118)|             84               122
Deferred policy acquisition                                                             |
  costs.........................                 168            1,027               678 |          4,244             4,170
Value of purchased insurance in                                                         |
  force.........................                 (16)               4               (35)|             73               113
Current income taxes                                                                    |
  payable.......................                 (61)            (104)              193 |             31                89
Goodwill........................                  (2)              (2)               (2)|             86                89
Deferred income taxes...........                 (77)            (233)               50 |         (1,147)             (843)
Other...........................                  78              301               (12)|            (26)              301
                                     ---------------------------------------------------|----------------------------------
As reported herein..............              $1,301             $136              $811 |        $31,556           $29,377
                                     ======================================================================================
</TABLE>

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

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

Year Ended December 31,                                                  2001              2000             1999
                                                              ---------------------------------------------------
                                                                              (DOLLARS IN THOUSANDS)
<S>                                                                    <C>              <C>               <C>
Fixed maturities................................                       $1,758           $1,810            $1,901
Short-term investments and cash and cash
   equivalents..................................                          184              316               148
Other, net......................................                           --               (3)              171
                                                              ---------------------------------------------------

Gross investment income.........................                        1,942            2,123             2,220
Less investment expenses........................                          (66)            (101)              (73)
                                                              ---------------------------------------------------

Net investment income...........................                       $1,876           $2,022            $2,147
                                                              ===================================================

</TABLE>

The  change  in  unrealized  appreciation  (depreciation)  on  fixed  maturities
designated as available for sale at fair value for the years ended  December 31,
2001, 2000, and 1999 was $1,223,000, $517,000, and $(1,646,000), respectively.


                                                                 25
<PAGE>
<TABLE>
<CAPTION>


At December  31,  2001 and 2000,  amortized  cost,  gross  unrealized  gains and
losses,  and  estimated  fair  values  of fixed  maturities,  all of  which  are
designated as available for sale, follows:

                                                                                   Gross               Gross         Estimated
                                                              Amortized       Unrealized          Unrealized              Fair
                                                                   Cost            Gains              Losses             Value
                                                     -------------------------------------------------------------------------
                                                                              (DOLLARS IN THOUSANDS)
   <S>                                                          <C>                <C>                 <C>           <C>
   December 31, 2001
    -------------------------------------------------
    U.S. government and governmental agencies and
       authorities................................               $2,289            $116                $(13)          $2,392
    Public utilities..............................                  999              49                  --            1,048
    Corporate securities..........................               22,616             492                 (74)          23,034
    Mortgage-backed securities....................                  216               5                  --              221
    Other asset-backed securities.................                2,588              82                  --            2,670
                                                     -------------------------------------------------------------------------
    Total.........................................              $28,708            $744                $(87)         $29,365
                                                     =========================================================================

    December 31, 2000
    -------------------------------------------------
    U.S. government and governmental agencies and
       authorities................................               $6,793            $223                $(13)          $7,003
    Public utilities..............................                2,017               9                 (11)           2,015
    Corporate securities..........................               16,412              73                (850)          15,635
    Mortgage-backed securities....................                  548               3                  --              551
                                                     -------------------------------------------------------------------------
    Total.........................................              $25,770            $308               $(874)         $25,204
                                                     =========================================================================

</TABLE>

Short-term investments and cash and cash equivalents have been excluded from the
above schedules. Amortized cost approximates fair values for these securities.

At  December  31,  2001,  net  unrealized  investment  gain on fixed  maturities
designated as available for sale totaled $657,000.  Appreciation of $421,000 was
included in  stockholder's  equity at December 31, 2001 (net of  adjustments  of
$2,000 to VPIF,  $8,000 to DPAC,  and  $226,000 to deferred  income  taxes).  At
December  31,  2000,  net  unrealized  investment  losses  on  fixed  maturities
designated as available for sale totaled $566,000.  Depreciation of $457,000 was
included in  stockholder's  equity at December 31, 2000 (net of  adjustments  of
$22,000 to VPIF, $87,000 to DPAC, and $160,000 to deferred income taxes).

Amortized  cost and  estimated  fair  value of fixed  maturities  designated  as
available  for sale,  by  contractual  maturity,  at December 31, 2001 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>
                                                                         Amortized        Estimated
December 31, 2001                                                             Cost       Fair Value
----------------------------------------------------------------------------------------------------
                                                                      (DOLLARS IN THOUSANDS)
<S>                                                                       <C>               <C>
Due after one year through five years......................               $14,279           $14,601
Due after five years through ten years.....................                 9,422             9,706
Due after ten years........................................                 2,203             2,167
                                                               -------------------------------------
                                                                           25,904            26,474
Mortgage-backed securities.................................                   216               221
Other asset-backed securities..............................                 2,588             2,670
                                                               -------------------------------------
Total .....................................................               $28,708           $29,365
                                                               =====================================

</TABLE>


                                                                 26
<PAGE>

<TABLE>
<CAPTION>

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

                                                                                   Gross               Gross          Proceeds
                                                              Amortized         Realized            Realized              from
                                                                   Cost            Gains              Losses              Sale
    --------------------------------------------------------------------------------------------------------------------------
                                                                             (DOLLARS IN THOUSANDS)
    <S>                                                      <C>                  <C>               <C>             <C>
    For the year ended December 31, 2001:
    Scheduled principal repayments, calls, and
      tenders....................................             $3,233                --                --             $3,233
    Sales........................................             33,311              $623              $324             33,610
                                                     -------------------------------------------------------------------------
    Total........................................            $36,544              $623              $324            $36,843
                                                     =========================================================================

    For the year ended December 31, 2000:
    Scheduled principal repayments, calls, and
      tenders....................................             $2,307                --                --             $2,307
    Sales........................................              8,234               $21             $(710)             7,545
                                                     -------------------------------------------------------------------------
    Total........................................            $10,541               $21             $(710)            $9,852
                                                     =========================================================================

    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
                                                     =========================================================================

</TABLE>

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 2001,  2000,  and 1999,  no  investments  were
identified as having an impairment other than temporary.

INVESTMENTS  ON  DEPOSIT:  At  December  31,  2001,  bonds  with a par  value of
$400,000,  unchanged  from  December 31, 2000,  were on deposit with  regulatory
authorities pursuant to certain statutory requirements.

INVESTMENT   DIVERSIFICATIONS:   The  Company's   investment   policies  require
diversification by asset type and set limits on the amount which can be invested
in an individual issuer. Such policies are at least as restrictive as applicable
regulatory  requirements.  The  following  percentages  relate  to  holdings  at
December 31, 2001 and December 31, 2000. Fixed maturities  included  investments
in industrials  (59% in 2001, 33% in 2000),  government  securities (8% in 2001,
29% in 2000), and financial companies (19% in 2001, 31% in 2000).

There are two  investments  (other  than bonds  issued by agencies of the United
States  government) that exceed ten percent of stockholder's  equity at December
31, 2001.  They are Verizon  Wireless Inc and  Countrywide  Home Loan Inc, with
values at December 31, 2001 of $4.0 million and $3.4 million, respectively.

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 $181,000,  $(581,000),  and
$(108,000) in 2001, 2000 and 1999,  respectively.  Such amounts, which have been
measured  through the date of sale,  are net of income taxes and  adjustments to
VPIF and DPAC totaling  $118,000,  $(108,000),  and $(58,000) in 2001, 2000, and
1999, respectively.


                                       27
<PAGE>


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. 133,  "Accounting for Derivative
Instruments  and  Hedging  Activities"  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  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.

The following compares carrying values as shown for financial reporting purposes
with estimated fair values:

<TABLE>

  December 31,                                                             2001                            2000
  ---------------------------------------------------------------------------------------------------------------------------
                                                                     Carrying       Estimated        Carrying      Estimated
                                                                        Value      Fair Value           Value     Fair Value
                                                              ---------------------------------------------------------------
     <S>                                                              <C>             <C>              <C>            <C>
                                                                                       (DOLLARS IN THOUSANDS)
  ASSETS
     Fixed maturities, available for sale.................            $29,365         $29,365          $25,204        $25,204
     Cash and cash equivalents ...........................              5,751           5,751            8,655          8,655
     Separate account assets..............................             50,832          50,832           57,703         57,703

  LIABILITIES
    Annuity products......................................              9,078           9,010            7,065          6,709
    Separate account liabilities..........................             50,832          50,832           57,703         57,703

</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.

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.


                                       28
<PAGE>



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. VALUE OF PURCHASED INSURANCE IN FORCE
--------------------------------------------------------------------------------

As a 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.  Interest was accrued at
a rate of 7.37%  during  2001  (7.32%  during  2000 and 7.33%  during  1999).  A
reconciliation of the change in the VPIF asset follows:

Year Ended December 31,                           2001          2000        1999
                                            ------------------------------------
                                                     (DOLLARS IN THOUSANDS)

   Beginning balance..................            $113         $102        $117
     Accretion of interest............               4            6           8
     Amortization of asset............             (20)          (2)        (43)
     Adjustment for unrealized
       gains (losses) ................             (24)           7          20
                                            ------------------------------------
   Ending balance.....................             $73         $113        $102
                                            ====================================



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, 2001 is $9,000 in 2002,  $8,000 in 2003,  $7,000 in
2004,  $5,000 in 2005, and $4,000 in 2006.  Actual  amortization  may vary based
upon changes in assumptions and experience.

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:

Year Ended December 31,          2001               2000              1999
                          --------------------------------------------------
                                     (DOLLARS IN THOUSANDS)
   Current...............       $627               $(46)              $685
   Deferred..............         78                233                (50)
                          -------------------------------------------------
                                $705               $187               $635
                          =================================================


                                       29
<PAGE>
<TABLE>
<CAPTION>


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

Year Ended December 31,                                        2001               2000               1999
                                                   -------------------------------------------------------
                                                                      (DOLLARS IN THOUSANDS)
<S>                                                          <C>                 <C>              <C>
Income before income taxes                                   $2,006              $323             $1,446
                                                   =======================================================

Income tax at federal statutory rate..........                 $702              $113               $506
Tax effect of:
  Other items.................................                    3                74                129
                                                   -------------------------------------------------------
Income tax expense                                             $705              $187               $635
                                                   =======================================================

</TABLE>
<TABLE>
<CAPTION>

DEFERRED INCOME TAXES
The tax effect of temporary  differences  giving rise to the Company's  deferred
income tax assets and liabilities at December 31, 2001 and 2000 follows:

  December 31                                                                      2001                      2000
----------------------------------------------------------------------------------------------------------------------------
                                                                                      (DOLLARS IN THOUSANDS)
<S>                                                                               <C>                          <C>
Deferred tax assets:
    Future policy benefits.........................................                  $533                        $747
    Net unrealized depreciation of available for sale fixed
      maturities...................................................                    --                         160
                                                                        ----------------------------------------------------
                                                                                      533                         907
Deferred tax liabilities:
    Net unrealized appreciation of available for sale
      fixed maturities.............................................                  (226)                          -
    Fixed maturities...............................................                    --                         (68)
    Investment income..............................................                    --                        (117)
    Deferred policy acquisition costs .............................                (1,234)                     (1,171)
    Value of purchased insurance in force..........................                   (20)                        (24)
    Other..........................................................                  (200)                       (210)
                                                                        ----------------------------------------------------
                                                                                   (1,680)                     (1,590)
                                                                        ----------------------------------------------------
Valuation allowance................................................                    --                        (160)
                                                                        ----------------------------------------------------
Deferred income tax liability......................................               $(1,147)                      $(843)
                                                                        ====================================================

</TABLE>

At December 31, 2001, the Company reported,  for financial  statement  purposes,
net  unrealized  gains  on  certain   investments  that  generate  deferred  tax
liabilities,  which have been recognized for tax purposes. At December 31, 2000,
the Company reported,  for financial  statement  purposes,  unrealized losses on
certain investments,  which have not been recognized for tax purposes.  Since it
is uncertain as to whether  these capital  losses,  if ever  realized,  could be
utilized to offset capital gains, a valuation  allowance was established for the
tax effect of the financial statement losses.

The Company  establishes  reserves for possible proposed  adjustments by various
taxing  authorities.  Management believes there are sufficient reserves provided
for, or adequate defenses against any such adjustments.

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 products and appoint representatives of the broker/dealers as
agents.  As of December 31, 2001, the Company's  variable  annuity products were
sold primarily through broker/dealer institutions.  The Company paid commissions
to DSI totaling $192,000, $1,115,000, and $697,000, for the years ended December
31, 2001, 2000, and 1999, respectively.


                                       30
<PAGE>


First Golden provides  certain  managerial and supervisory  services to DSI. The
fee paid to First Golden for these services, which is calculated as a percentage
of average assets in the variable separate accounts was $89,000,  $0, and $0 for
the years ended December 2001, 2000, and 1999, respectively.

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 asset  managed  by ING IM. The fee is  payable  quarterly.  For the
years ended  December 31, 2001,  2000,  and 1999,  the Company  incurred fees of
$56,000, $81,000, and $73,000, respectively, under this agreement.

The Company has service  agreements  with Golden American and 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 $171,000,  $412,000,  and $137,000,  for the years
ended December 31, 2001, 2000, and 1999, respectively.  Under the agreement with
Equitable Life, the Company incurred expenses of $0, $340,000, and $142,000, for
the years ended December 31, 2001, 2000, and 1999, respectively.

The Company provides resources and services to DSI. Revenues for these services,
which  reduce  general  expenses  incurred  by the  Company,  totaled  $139,000,
$223,000,  and $387,000,  for the years ended December 31, 2001, 2000, and 1999,
respectively.

The Company  provides  resources and services to Golden  American.  Revenues for
these services,  which reduce general expenses incurred by the Company,  totaled
$166,000,  $225,000,  and $269,000,  for the years ended December 31, 2001, 2000
and 1999, respectively.

The Company had a  receivable  from  affiliates  of $2.8 million at December 31,
2001, mainly to the timing of a cash settlement with Golden American.

The Company had premiums, net of reinsurance,  for variable annuity products for
the year ended  December  31,  2001,  2000,  and 1999,  that  totaled  $239,000,
$27,000, and $2,000, respectively, from Locust Street Securities, Inc. ("LSSI"),
an affiliate.

The Company had premiums,  net of  reinsurance,  from variable  products for the
year ended December 31, 2001 of approximately  $136,000,  from Washington Square
Securities, Inc., an affiliate.

The Company had premiums  from fixed  products  for the year ended  December 31,
2001 of approximately $1.0 million, from Washington Square Securities,  Inc., an
affiliate.

The Company had premiums,  net of  reinsurance,  from variable  products for the
year ended December 31, 2001, 2000, and 1999 respectively,  of $8,000, $626,000,
and $0 from Vestax Securities Corporation, an affiliate.

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 2001 or 1999.  During 2000,  Golden American
provided a cash capital contribution of $2,113,000 to First Golden.


                                       31
<PAGE>


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


REINSURANCE:  At December 31, 2001,  First Golden had two  reinsurance  treaties
with two unaffiliated reinsurers covering a significant portion of the mortality
risks and minimum death benefit guarantees under its variable  contracts.  First
Golden remains liable to the extent its reinsurers do not meet their obligations
under the reinsurance agreements.

On December 29, 2000, First Golden entered a reinsurance treaty with London Life
Reinsurance  Company of Pennsylvania,  an unaffiliated  reinsurer,  covering the
minimum death benefit  guarantees of First Golden's variable annuities issued on
or after January 1, 2000.

At December 31, 2001 and December 31, 2000,  the Company has a payable of $8,000
and $17,000 respectively, for reinsurance premiums. Included in the accompanying
financial  statements are net premium  considerations  ceded to the reinsurer of
$131,000, $71,000, and $27,000, for the years ended December 31, 2001, 2000, and
1999,  respectively.  In addition, the accompanying financial statements contain
net policy  benefits  recoveries  of $64,000,  $5,000,  and $7,000 for the years
ended December 31, 2001, 2000, and 1999 respectively.

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  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.

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 and fixed  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 be able to cause
a severe impact to the Company's financial  condition.  A significant portion of
the  Company's   variable   annuity   portion  of  sales  is  generated  by  two
broker/dealers,  each  having at least ten  percent  of total  variable  annuity
sales. A significant  portion of the Company's fixed annuity portion of sales is
generated by two broker/dealers, each having at least ten percent of total fixed
annuity sales.

LEASES:  The  Company has a lease for its home office  space,  which  expired on
December 31, 2001. The Company also leases  certain  equipment  under  operating
leases,  which  expire in 2005.  Rent  expense for the years ended  December 31,
2001,  2000,  and 1999 was  $87,000,  $122,000,  and $89,000,  respectively.  At
December 31, 2001,  minimum rental  payments due under the operating  leases are
$4,000 in 2002, 4,000 in 2003, $4,000 in 2004, $1,000 in 2005, and $0 in 2006.

From January 1, 2001 to September 30, 2001, First Golden's  principal office was
located in New York,  New York,  where  certain of the  Company's  records  were
maintained.  The 2,568 square feet of office space is leased through 2001. As of
October 1, 2001, First Golden's principal office moved to Woodbury, New York.

REVOLVING NOTE PAYABLE: To enhance short-term liquidity, the Company established
a revolving  note payable  with  SunTrust  Bank,  Atlanta  (the  "Bank").  These
revolving  notes  payable  were  amended  and  restated  in April  2001  with an
expiration date of May 31, 2002. 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 0.225% 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 did not incur interest expense
in 2001 and 2000.  At  December  31,  2001 and 2000 the Company did not have any
borrowings under this agreement.


                                       32
<PAGE>



10. MERGER
 -------------------------------------------------------------------------------

A filing was made on October  31,  2001 in  accordance  with Item 5 of Form 8-K:
Other  Events and  Regulation  FD  Disclosure.  The purpose of the filing was to
report that on  September  25,  2001,  the Board of  Directors  of First  Golden
approved a plan of merger to merge First Golden into  ReliaStar  Life  Insurance
Company of New York, an affiliated company. The merger is currently  anticipated
to be effective on April 1, 2002, or shortly thereafter, subject to the approval
of the Insurance Departments of the States of New York, and Delaware.

<TABLE>
<CAPTION>

11. QUARTERLY DATA (UNAUDITED)
----------------------------------------------------------------------------------------------------------------------------

Quarter ended 2001                                                 First          Second           Third         Fourth
----------------------------------------------------------------------------------------------------------------------------
                                                                                 (DOLLARS IN THOUSANDS)
<S>                                                                   <C>              <C>            <C>           <C>
Total revenue..............................................           $595             $681           $817           $956
                                                               -------------------------------------------------------------
Income before income taxes.................................             98              438            764            706
Income taxes...............................................             35              153            267            250
                                                               -------------------------------------------------------------
Net income ................................................            $63             $285           $497           $456
                                                               =============================================================

Quarter ended 2000                                                 First          Second           Third         Fourth
----------------------------------------------------------------------------------------------------------------------------
                                                                                 (DOLLARS IN THOUSANDS)
Total revenue..............................................           $616             $474           $617           $421
                                                               -------------------------------------------------------------
Income (loss) before income taxes..........................            170               25            303           (175)
Income taxes...............................................             60                2            136            (11)
                                                               -------------------------------------------------------------
Net income (loss)..........................................           $110              $23           $167          $(164)
                                                               =============================================================


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.


                                                                 33
</TABLE>
<PAGE>


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, 2001 and 2000..................................14
 Statements of Operations - For the years ended December 31, 2001,
     2000, and 1999...........................................................16
 Statements of Changes in Stockholder's Equity - For the years ended
     December 31, 2001, 2000, and 1999........................................17
 Statements of Cash Flows - For the years ended December 31, 2001,
     2000, and 1999...........................................................18
 Notes to Financial Statements................................................20

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.......................................................35
     Schedule III - Supplementary insurance information.......................36

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)      Reports on Form 8-K

 A filing was made on October  31, 2001 in  accordance  with Item 5 of Form 8-K:
Other  Events and  Regulation  FD  Disclosure.  The purpose of the filing was to
report that on  September  25,  2001,  the Board of  Directors  of First  Golden
approved a plan of merger to merge First Golden into  ReliaStar  Life  Insurance
Company of New York, an affiliated company. The merger is currently  anticipated
to be effective on April 1, 2002, or shortly thereafter, subject to the approval
of the Insurance Departments of the States of New York, and Delaware.

Incorporated  into the Form 8-K filing by reference was a prospectus  supplement
filed with the Securities  and Exchange  Commission on October 19, 2001, on Form
497 under the Securities Act of 1933 (File No.  333-16501),  which describes the
proposed transaction and contains financial  information on RLNY. The prospectus
supplement was included as an exhibit item to the Form 8-K filing.



                                       34
<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, 2001                                                                               COST(1)        VALUE          AMOUNT
-----------------------------------------------------------------------------------------------------------------------------------
TYPE OF INVESTMENT
<S>                                                                                           <C>           <C>           <C>
Fixed maturities, available for sale:
  Bonds:
   United States government and governmental agencies and authorities.............            $2,289        $2,392        $2,392
   Public utilities...............................................................               999         1,048         1,048
   Corporate securities...........................................................            22,616        23,034        23,034
   Mortgage-backed securities.....................................................               216           221           221
   Other asset-backed securities..................................................             2,588         2,670         2,670
                                                                                        -------------------------------------------
Total fixed maturities, available for sale........................................            28,708        29,365        29,365

Short-term investments............................................................                --                          --
                                                                                        --------------              ---------------
Total investments.................................................................           $28,708                     $29,365
                                                                                        ==============              ===============

</TABLE>

Note 1: Cost  is  defined  as  amortized   cost  for  bonds  and  short-term
        investments  adjusted  for  amortization  of  premiums  and  accrual  of
        discounts.


                                                                 35
<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
-----------------------------------------------------------------------------------------------------------------------------------

<S>                     <C>        <C>            <C>         <C>       <C>      <C>          <C>        <C>      <C>           <C>
YEAR ENDED DECEMBER 31, 2001:

  Life insurance        $4,244     $9,078         --          --        $759     $1,876       $340       $338       $365        --

YEAR ENDED DECEMBER 31, 2000:

  Life insurance        $4,170     $7,065         --          --        $766     $2,022       $401       $322     $1,082        --

YEAR ENDED DECEMBER 31, 1999:

  Life insurance        $3,198     $7,583         --          --        $556     $2,147       $590       $201       $351        --


                                                                 36
</TABLE>
<PAGE>
<TABLE>
<CAPTION>



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 27, 2002                                                                             By /s/
                                                                                                    ----
                                                                             Stephen J. Preston
                                                                                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/ Stephen J. Preston                        President                                     |
         -----------------------------------                                                         |
         Stephen J. Preston                                                                          |
         (duly authorized company officer officer)                                                   |
                                                                                                     |
         /s/ David Wheat                               Chief Accounting Officer                      |
         -----------------------------------                                                         |
         David Wheat                                                                                 |
         (principal accounting officer)                                                              |
         (principal financial officer)                                                               |
                                                                                                     |-- March 27, 2002
         /s/ Kimberley J. Smith                        Executive Vice President, General             |
         -----------------------------------           Counsel, and  Secretary                       |
         Kimberley J. Smith                                                                          |
                                                                                                     |
         /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/ P. Randall Lowery                                                                       |
         -----------------------------------           Director                                      |
         P. Randall Lowery                                                                           |
                                                                                                     |
         /s/ Mark A. Tullis                                                                          |
         -----------------------------------           Director                                      |
         Mark A. Tullis                                                            ------------------|


                                                                 37
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                                                INDEX

                                                        Exhibits to Form 10-K
                                                    Year Ended December 31, 2001
                                      FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK

                                                                                                                    Page Number
                                                                                                                    -----------
<S>                                                                                                                    <C>

    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))..............................................................................
                                                                                                                       ------




                                                                 38
</TABLE>
<PAGE>
<TABLE>
<CAPTION>


                                                                INDEX

                                                        Exhibits to Form 10-K
                                                    Year Ended December 31, 2001
                                      FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK

                                                                                                                    Page Number
                                                                                                                    -----------
<S>                                                                                                                    <C>

           (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)    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 29, 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 29, 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 29, 1999 (File No. 333-77385))............................
                                                                                                                       ------

           (h)    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 29, 1999 (File No. 333-77385))...........................................
                                                                                                                       ------

           (i)    Participation Agreement between First Golden and The Galaxy VIP Fund (incorporated by
                  reference from Exhibit 10(l) to Amendment No. 1 to a Registration Statement for First Golden
                  on Form S-1 filed with the SEC on or about April 25, 2000 (File No. 333-77385))....................
                                                                                                                       ------

           (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))............................................................
                                                                                                                       ------



                                                                 39
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<CAPTION>


                                                                INDEX

                                                        Exhibits to Form 10-K
                                                    Year Ended December 31, 2001
                                      FIRST GOLDEN AMERICAN LIFE INSURANCE COMPANY OF NEW YORK

                                                                                                                    Page Number
                                                                                                                    -----------
<S>                                                                                                                    <C>

           (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))..............................................................
                                                                                                                       ------

           (n)    Participation Agreement between First Golden and ING Variable Insurance Trust (incorporated by
                  reference from Exhibit 10(m) to Amendment No. 2 to a Registration Statement for First Golden on
                  Form S-1 filed with the SEC on or about April 26, 2000 (File No. 333-77385)).......................

                                                                                                                       ------
           (o)    Participation Agreement between First Golden and Prudential Series Fund, Inc. (incorporated by
                  reference from Exhibit 10(n) to Amendment No. 2 to a Registration Statement for First Golden on
                  Form S-1 filed with the SEC on or about April 26, 2000 (File No. 333-77385)).......................
                                                                                                                       ------

           (p)    Renewal of Revolving Note Payable, dated July 31, 2000, between First Golden and SunTrust Bank,
                  Atlanta (incorporated by reference from Exhibit 10(p) to First Golden's Form 10-Q filed with the
                  SEC on August 11, 2000 (File No. 333-16279)).......................................................
                                                                                                                       ------

           (q)    Amended Schedule Page to the Participation Agreement between First Golden and Prudential Series
                  Fund, Inc. (incorporated by reference from Exhibit 10(p) to Amendment No. 3 to a Registration
                  statement for First Golden on Form S-1 filed with the SEC on September 13, 2000 (File No.
                  333-77385))........................................................................................
                                                                                                                       ------

           (r)    Reinsurance Agreement dated December 29, 2000 between First Golden and London Life Reinsurance
                  Company of Pennsylvania (incorporated by reference from Exhibit 10(r) to First Golden's Form 10-K
                  filed with the SEC on March 28, 2001 (File No. 333-16279)).........................................
                                                                                                                       ------

           (s)    Renewal of  Revolving  Note  payable,  dated  April 30,  2001 between First Golden and SunTrust
                  Bank, Atlanta (incorporated by reference from Exhibit 10(s) to First Golden's form 10-Q filed
                  with the SEC on August 14, 2001 (File No. 333-16279)...............................................
                                                                                                                       ------




                                                                 40
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