<PAGE>

                                                                    EXHIBIT 99.1



                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN

                             Financial Statements

                          December 31, 1999 and 1998

                  (With Independent Auditors' Report Thereon)
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                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN


                               Table of Contents




                                                                            Page

Independent Auditors' Report                                                  1

Statements of Financial Condition                                             2

Statements of Income and Changes in Plan Equity                               3

Notes to Financial Statements                                                 4
<PAGE>

                         Independent Auditors' Report


The Human Resources, Compensation and Employee
   Benefits Committee of the Board of Directors
Trigon Healthcare, Inc.:


We have audited the accompanying statements of financial condition of the Trigon
Healthcare, Inc. Employee Stock Purchase Plan (Plan) as of December 31, 1999 and
1998, and the related statements of income and changes in plan equity for the
years ended December 31, 1999 and 1998 and the period May 1, 1997 (inception)
through December 31, 1997. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. 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 condition of the Plan as of December 31,
1999 and 1998 and the income and changes in plan equity for the years ended
December 31, 1999 and 1998 and the period May 1, 1997 (inception) through
December 31, 1997, in conformity with generally accepted accounting principles.


/s/ KPMG LLP

Richmond, Virginia
April 14, 2000
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                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN

                       Statements of Financial Condition

                          December 31, 1999 and 1998


                                                         1999          1998
                                                    -------------   -----------
Assets:
  Investments, at estimated fair value -           $ 3,670,355       2,967,244
    Trigon Healthcare, Inc. Class A
    common stock (cost, $3,109,078 and
    $1,860,570, respectively)
  Contributions receivable:
    Employee                                           292,564         259,215
    Employer                                            51,629          45,745
                                                    -----------     -----------
           Total assets                            $ 4,014,548       3,272,204
                                                    ===========     ===========

Plan equity                                        $ 4,014,548       3,272,204
                                                    ===========     ===========


See accompanying notes to financial statements.


                                       2
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                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN

                Statements of Income and Changes in Plan Equity

                  Years ended December 31, 1999 and 1998 and
           Period May 1, 1997 (inception) through December 31, 1997



<TABLE>
<CAPTION>
                                                                                     May 1, 1997
                                                                                       through
                                                                                     December 31,
                                                             1999          1998          1997
                                                          ----------    ----------   ------------
<S>                                                      <C>            <C>            <C>
Income:
    Net unrealized appreciation (depreciation) in
      fair value of investments                          $  (545,397)    1,000,638      106,036
    Contributions:
      Employee                                             1,383,148     1,318,963      748,958
      Employer                                               244,085       232,758      132,169
                                                          -----------  ------------   ----------
           Total contributions                             1,627,233     1,551,721      881,127
                                                          -----------  ------------   ----------
           Total income                                    1,081,836     2,552,359      987,163

Distributions to employees                                   339,492       240,391       26,927
                                                          -----------  ------------   ----------
           Net increase in plan equity                       742,344     2,311,968      960,236

Plan equity, beginning of period                           3,272,204       960,236          --
                                                          -----------  ------------   ----------
Plan equity, end of period                               $ 4,014,548     3,272,204      960,236
                                                          ===========  ===========    ==========
</TABLE>



See accompanying notes to financial statements.


                                       3
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                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN

                         Notes to Financial Statements

                          December 31, 1999 and 1998



(1)     Summary of Significant Accounting Policies

        (a)    Organization

               The Trigon Healthcare, Inc. Employee Stock Purchase Plan (Plan)
               was adopted by the Board of Directors and approved by the
               shareholders of Trigon Healthcare, Inc. (Company) in April 1997
               for the purpose of providing a means by which the employees
               (Participant) of the Company and its subsidiaries can be given an
               opportunity to acquire the Company's Class A common stock (Common
               Stock) through payroll deductions.

               The following are the significant accounting policies followed by
               the Plan:

        (b)    Basis of Accounting

               The financial statements of the Plan are prepared under the
               accrual method of accounting. Accordingly, employee contributions
               to the Plan are recorded as of the date the contributions are
               withheld from the Participants' compensation. Employer
               contributions are recorded as of the last day of each calendar
               quarter and represent the fifteen percent discount given to
               Participants under the Plan's provisions. Distributions to
               Participants are accounted for at the average historical cost of
               the Common Stock distributed, plus cash paid in lieu of
               fractional shares, where applicable. Cash paid by the Company in
               lieu of fractional shares is accounted for at the fair market
               value of the shares at the time of the distribution. The Company
               will also separately refund to any withdrawing Participant
               employee contributions which have been withheld but have not been
               forwarded to the Plan for the purchase of Common Stock.

        (c)    Investment Valuation

               The investments in Common Stock are stated at estimated fair
               value, based on the closing price on the New York Stock Exchange
               on the last trading day of the period. Investment transactions
               are recorded on a trade date basis.

        (d)    Administrative Expenses

               The Company pays all administrative expenses of the Plan.
               Administrative expenses incurred by the Company during 1999, 1998
               and 1997 were $16,870, $25,317 and $20,967, respectively.

        (e)    Use of Estimates

               The preparation of financial statements in conformity with
               generally accepted accounting principles requires management to
               make estimates and assumptions that affect the amounts reported
               in the financial statements and accompanying notes, including
               disclosure of contingent assets and liabilities. Actual results
               could differ from those estimates.


                                       4                             (Continued)
<PAGE>

                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN

                         Notes to Financial Statements

                          December 31, 1999 and 1998



(2)     Summary of Significant Provisions of the Plan

        The Plan is an employee stock purchase plan and is intended to qualify
        under Internal Revenue Code (Code) Section 423. The Plan is administered
        by the Human Resources, Compensation and Employee Benefits Committee of
        the Company's Board of Directors (Committee). The Common Stock owned by
        Participants prior to withdrawal from the Plan are held in individual
        participant accounts in a custodian account with The Bank of New York
        (Custodian). Prior to October 1998, the custodian was First Chicago
        Trust Company of New York. Participants should refer to the plan
        agreement and prospectus for a more complete description of the Plan's
        provisions.

        The Company has reserved for issuance and purchase by Participants under
        the Plan an aggregate of one million shares of Common Stock. These
        shares are authorized but unissued. Shares needed to satisfy the
        requirements of the Plan may be newly issued by the Company or acquired
        by purchases at the expense of the Company on the open market or in
        private transactions. During 1999, 1998 and 1997, all shares needed to
        satisfy the requirements of the Plan were purchased on the open market.
        The Company paid the difference between the purchase price in the open
        market, including brokerage fees, and the amount provided by the
        employee and employer contributions.

        Any person who is employed by the Company (or by any eligible subsidiary
        of the Company) is eligible to participate in the Plan on the first day
        of any payroll period following the employee's commencement of
        employment. A Participant may make voluntary contributions to the Plan
        in whole percentage amounts ranging from one to fifteen percent of
        compensation for the year. Under Code section 423(b)(8), a Participant
        is limited to purchases of no more than $25,000 of Common Stock, at fair
        value, in any calendar year. The Plan had 809 and 743 Participants as of
        December 31, 1999 and 1998, respectively.

        Payroll deductions are accumulated by the Company during each calendar
        quarter and transferred to the Plan at the end of each calendar quarter
        to be applied towards the purchase of full and partial shares of Common
        Stock. The purchase price per share at which Common Stock shares are
        acquired by Participants equals the lower of (a) eighty-five percent of
        the fair market value of a share of Common Stock on the first trading
        day of each calendar quarter (Grant Date), or (b) eighty-five percent of
        the fair market value of a share of Common Stock on the last trading day
        of each calendar quarter (Investment Date). The Plan defines fair market
        value to be the closing trading price of the Common Stock on the New
        York Stock Exchange as reported in the Wall Street Journal. During 1997,
        the first Grant Date was May 1, 1997, the first payroll period after the
        Plan was approved. The first Investment Date was June 30, 1997. All
        subsequent purchase periods followed the calendar quarter schedule as
        defined in the Plan's provisions. Participants are fully vested in their
        individual participant accounts at all times and have the right at any
        time to obtain certificates for full shares of Common Stock in these
        accounts.

        Participants may cease participation in or withdraw shares from the Plan
        at any time, but may not begin payroll deductions again for six months.
        A Participant may change the payroll deduction percentage


                                       5                             (Continued)
<PAGE>

                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN

                         Notes to Financial Statements

                          December 31, 1999 and 1998



        up to four times per year. Participation in the Plan is automatically
        terminated upon retirement, termination of active employment or death.


(3)     Investment in Common Stock

        The net unrealized appreciation (depreciation) in fair value of
        investment in Common Stock as of December 31, 1999, 1998 and 1997 and
        the change in such amount during the periods were as follows:


<TABLE>
<CAPTION>
                                                                               Net
                                                                           unrealized
                                             Fair                         appreciation
                                            value            Cost        (depreciation)
                                        -------------   -------------   ----------------
<S>                                         <C>             <C>                <C>
       Balance, May 1, 1997            $        --              --                 --

       Change for the period ended
           December 31, 1997                585,523         479,487            106,036
                                        -------------   -------------   ----------------

       Balance, December 31, 1997           585,523         479,487            106,036

       Change for the year ended
           December 31, 1998              2,381,721       1,381,083          1,000,638
                                        -------------   -------------   ----------------

       Balance, December 31, 1998         2,967,244       1,860,570          1,106,674

       Change for the year ended
           December 31, 1999                703,111       1,248,508           (545,397)
                                        -------------   -------------   ----------------

       Balance, December 31, 1999      $  3,670,355       3,109,078            561,277
                                        =============   =============   ================
</TABLE>

        The Plan held 124,419 and 79,524 shares of Common Stock on December 31,
        1999 and 1998, respectively. In addition, 16,698 shares were pending
        purchase on December 31, 1999.


(4)     Tax Status

        The Plan is intended to qualify under the provisions of Code Section
        423. Under these provisions, Participants are taxed on amounts withheld
        for the purchase of Common Stock when such amounts are actually
        withheld. Other than this tax, no income is taxable to a Participant
        until disposition of the Common Stock acquired. The method of taxation,
        as ordinary income or as capital gains, will depend upon the holding
        period of the purchased shares.

        There are no federal income tax consequences to the Company by reason of
        the grant or exercise of rights under the Plan. The Company is generally
        entitled to a deduction to the extent the amounts are taxed as ordinary
        income to a Participant.


                                       6                             (Continued)
<PAGE>

                            TRIGON HEALTHCARE, INC.
                         EMPLOYEE STOCK PURCHASE PLAN

                         Notes to Financial Statements

                          December 31, 1999 and 1998



(5)     Plan Termination

        Although it has not expressed any intent to do so, the Company has the
        right under the Plan to terminate the Plan. In the event of a plan
        termination, Participants will be refunded the amounts of any employee
        contributions which have not yet been applied to the purchase of Common
        Stock and the Common Stock shares in their individual participant
        accounts.


(6)     Year 2000 Readiness Disclosure

        The Company had a unified Year 2000 plan for the Company and its
        subsidiaries. As part of the plan, the Company monitored the Year 2000
        efforts of the vendors performing critical outsourced functions for the
        Plan through the use of surveys. The information provided by the vendors
        was confirmed by phone but was not independently verified. The Plan's
        recordkeeper and custodian, The Bank of New York, reported that
        renovation and testing of its mission-critical systems were
        substantially completed by December 31, 1998 in compliance with the
        requirements set forth by the Federal Financial Institutions Examination
        Council. In addition, The Bank of New York indicated that its business
        continuity plans were being reviewed and upgraded in an effort to
        mitigate potential risks.

        The Bank of New York in turn uses third-party vendors to support its
        activities for the Plan. Examples include security brokers, banks and
        stock exchanges. It was not within the Company's ability to determine
        the Year 2000 status of these companies. The Company relied on the
        efforts of the vendors it selected for outsourced functions to ensure
        that these vendors could conduct their business on and after January 1,
        2000.

        The Plan experienced no material Year 2000-related disruptions as a
        result of noncompliance by its critical vendors.

                                       7