Establishing an adequate liability for the Company’s obligations to its policyholders requires the use of assumptions. Liabilities for future policy benefits on traditional life insurance products requires the use of assumptions relative to future investment yields, mortality, persistency and other assumptions based on the Company’s historical experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation.
The Company generally purchases its investments with the intent to hold to maturity by purchasing investments that match future cash flow needs. However, the Company may sell any of its investments to maintain proper matching of assets and liabilities. Accordingly, the Company has classified its fixed maturities and certain other securities as “available for sale.” The sales of investments that have occurred generally result from portfolio management decisions to maintain proper matching of assets and liabilities.
Realized investment gains in 2003 were approximately $3.3 million and realized investment losses in 2002 were approximately $0.7 million. During 2003, the Company recorded other-than-temporary impairments in its investments of $0.3 million, as compared to $4.3 million in 2002.
The following table sets forth operating income or loss and income or loss before income tax by business segment for the periods shown:
(1) Income (loss) before income tax excluding realized investment gains and losses and related amortization of deferred policy acquisition costs.
The Company offers a guaranteed minimum death benefit feature (GMDB) on its variable annuity products. The Company’s accounting policy has been to calculate its total exposure to GMDB, and then apply a mortality factor to determine the amount of claims that could be expected to occur in the coming twelve months. The Company then accrues to that amount over four quarters. At December 31, 2003, the total GMDB reserve was $0.1 million, a decrease of $0.1 million from December 31, 2002. At December 31, 2003, the total guaranteed amount payable under the GMDB feature based on variable annuity account balances was $16.1 million, a decrease of $0.3 million from December 31, 2002, caused by an improvement in the equity markets.
In accordance with statutory accounting practices prescribed or permitted by regulatory authorities (which require the assumption that equity markets will significantly worsen), the Company reported GMDB related policy liabilities and accruals of $0.1 million at December 31, 2003, a decrease of $0.1 million from December 31, 2002.
The Corporate and Other segment consists of net investment income and expenses not identified with the preceding business segments. Pretax earnings in 2003 increased $10.8 million over 2002, primarily due to increased net investment income on capital.
On December 31, 2001, PLC completed the sale to Fortis, Inc. of substantially all of its Dental Benefits Division (Dental Division), and discontinued certain other remaining Dental Division related operations, primarily other health insurance lines. In 2001, income from discontinued operations was $158,889 and the gain from the sale of discontinued operations was $1,625,000, both net of income tax.
On January 1, 2001, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 133, “Accounting for Derivative Instruments and Hedging Activities.” The adoption of SFAS No. 133 resulted in a cumulative after-tax charge to net income of approximately $0.3 million.
The following table sets forth net income from continuing operations before cumulative effect of change in accounting principle for the periods shown:
Net income in 2003 increased 75.3%, compared to 2002, reflecting improved operating earnings in the Life Marketing, Annuities, and the Corporate and Other segments offset by lower operating earnings in the Acquisitions and Asset Protection segments.
The Company’s investments in debt securities are reported at market value, and investments in mortgage loans are reported at amortized cost. At December 31, 2003, the Company’s fixed maturity investments (bonds) had a market value of $636.5 million, which is 6.3% above amortized cost of $598.9 million. The Company had $1.4 million in mortgage loans at December 31, 2003. While the Company’s mortgage loans do not have quoted market values, at December 31, 2003, the Company estimates the market value of its mortgage loans to also be $1.4 million (using discounted cash flows from the next call date).
The Company monitors the overall credit quality of the Company’s portfolio within general guidelines. The approximate percentage distribution of the Company’s fixed maturity investments by quality rating at December 31 is as follows:
During 2003, the Company recorded pretax other-than-temporary impairments in its investments of $0.3 million.
Once management has determined that a particular investment has suffered an other-than-temporary impairment, the asset is written down to its estimated fair value. The Company generally considers a number of factors in determining whether the impairment is other than temporary. These include, but are not limited to: 1) actions taken by rating agencies, 2) default by the issuer, 3) the significance of the decline, 4) the intent and ability of the Company to hold the investment until recovery, 5) the time period during which the decline has occurred, 6) an economic analysis of the issuer’s industry, and 7) the financial strength, liquidity, and recoverability of the issuer. Management performs a security by security review each quarter in evaluating the need for any other-than-temporary impairments. Although no set formula is used in this process, the investment performance and continued viability of the issuer are significant measures.
The Company generally considers a number of factors relating to the issuer in determining the financial strength, liquidity, and recoverability of an issuer. These include but are not limited to: available collateral, tangible and intangible assets that might be available to repay debt, operating cash flows, financial ratios, access to capital markets, quality of management, market position, exposure to litigation or product warranties, and the effect of general economic conditions on the issuer.
Market values for private, non-traded securities are determined as follows: 1) the Company obtains estimates from independent pricing services or 2) the Company estimates market value based upon a comparison to quoted issues of the same issuer or issues of other issuers with similar terms and risk characteristics. The market value of private, non-traded securities was $89.5 million at December 31, 2003, representing 12.9% of the Company’s total invested assets.
The majority of unrealized losses in the Company’s investment portfolio can be attributed to interest rate fluctuations and have been deemed temporary. As indicated above, when the Company’s investment management deems an investment’s market value decline as other than temporary, it is written down to estimated market value. In all cases, management will continue to carefully review and monitor each security.
For traded and private fixed maturity and equity securities held by the Company that are in an unrealized loss position at December 31, 2003, the estimated market value, amortized cost, unrealized loss and total time period that the security has been in an unrealized loss position are presented in the table below.
Estimated % Market Amortized % Amortized Unrealized % Unrealized Market Value Value Cost Cost Loss Loss ---------------------------- -------------- ------------- -------------- ---------------- --------------- -------------- Agency mortgages $7,868,260 8.7% $7,998,042 8.5% $(129,782) 3.4% Banks 2,948,421 3.3 2,988,805 3.2 (40,384) 1.0 Basic industrial 3,838,624 4.3 4,024,026 4.3 (185,402) 4.8 Brokerage 5,967,444 6.6 5,998,841 6.4 (31,397) 0.8 Communications 6,059,088 6.8 6,933,113 7.4 (874,025) 22.6 Electric 29,557,222 32.9 30,889,651 32.9 (1,332,429) 34.5 Energy 1,897,614 2.1 1,998,215 2.1 (100,601) 2.6 Insurance 5,667,102 6.3 5,955,318 6.3 (288,216) 7.5 Natural gas 19,975,589 22.2 20,742,385 22.1 (766,796) 19.9 Non-agency mortgages 352,370 0.4 352,851 0.4 (481) 0.0 Other finance 826,715 0.9 828,787 0.9 (2,072) 0.0 Other industrial 988,521 1.1 994,867 1.1 (6,346) 0.2 Transportation 3,896,866 4.3 3,999,964 4.3 (103,098) 2.7 U.S. Government 113,281 0.1 113,797 0.1 (516) 0.0 ---------------------------- -------------- ------------- -------------- ---------------- --------------- -------------- Total $89,957,117 100.0% $93,818,662 100.0% $(3,861,545) 100.0% ---------------------------- -------------- ------------- -------------- ---------------- --------------- --------------
At December 31, 2003, securities in an unrealized loss position that were rated as below investment grade represented 14.3% of the total market value and 24.0% of the total unrealized loss. Unrealized losses related to below investment grade securities that had been in an unrealized loss position for more than twelve months were $10.1 million. Bonds in an unrealized loss position rated less than investment grade were 1.9% of invested assets. The Company does not expect these investments to adversely affect its liquidity or ability to maintain proper matching of assets and liabilities.
Estimated % Market Value Amortized Cost % Amortized Unrealized % Unrealized Market Value Cost Loss Loss ------------------------------------------------------------------------------------------------------------------------------ =90 days $2,850,000 22.1% $2,850,638 20.6% $ (638) 0.1% 90 days but =180 days 0 0.0 0 0.0 0 0.0 180 days but =270 days 10,000 0.0 25,000 0.2 (15,000) 1.6 270 days but =1 year 0 0.0 0 0.0 0 0.0 1 year but =2 years 0 0.0 0 0.0 0 0.0 2 years but =3 years 5,542,500 42.9 5,952,412 43.0 (409,912) 44.2 3 years but =4 years 0 0.0 0 0.0 0 0.0 4 years but =5 years 4,515,000 35.0 5,016,681 36.2 (501,681) 54.1 5 years 0 0.0 0 0.0 0 0.0 ------------------------------------------------------------------------------------------------------------------------------ Total $12,917,500 100.0% $13,844,731 100.0% $(927,231) 100.0% ------------------------------------------------------------------------------------------------------------------------------
Proceeds % Proceeds Realized Loss % Realized Loss ----------------------------- ---------------- --------------- -------------- ---------------- =90 days $24,693,854 100.0% $(188,562) 100.0%
Many of the Company's products contain surrender charges and other features that reward persistency and penalize the early withdrawal of funds. Certain annuity contracts have market-value adjustments that protect the Company against investment losses if interest rates are higher at the time of surrender than at the time of issue.
Estimated Fair Values Resulting From An Immediate 1 Percentage Point Decrease In Interest Rates
As discussed in Note 1 of the Notes to the Financial Statements, effective January 1, 2001, the Company adopted Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities.”
Income from continuing operations before income tax....................... 23,229,071 13,246,921 12,286,328 ------------ ------------ ------------
Net income from continuing operations before cumulative effect of change in accounting principle...................................................... 15,117,367 8,624,649 8,121,263 Income from discontinued operations, net of income tax.................... 158,889 Gain from sale of discontinued operations, net of income tax.............. 1,625,000 ------------ ------------ ------------
Net income................................................................ $ 15,117,367 $ 8,624,649 $ 9,620,184 ============ ============ =============
ASSETS Investments: Fixed maturities, at market (amortized cost: 2003-$598,941,913; 2002 - $466,924,086) $636,460,275 $488,701,807 Mortgage loans on real estate....................................................... 1,393,720 1,793,590 Other long term investments......................................................... 0 572,818 Policy loans........................................................................ 54,066,125 54,807,151 Short-term investments.............................................................. 1,200,413 178,805,245 ------------ ------------ Total investments............................................................... 693,120,533 724,680,611 Cash 13,052,781 1,669,532 Accrued investment income................................................................ 11,116,301 8,382,989 Accounts and premiums receivable, net of allowance for uncollectible amounts (2003-$7,000; 2002-$7,000).................................................. 530,133 325,479 Reinsurance receivables.................................................................. 61,159,477 92,256,257 Deferred policy acquisition costs........................................................ 95,168,662 104,779,582 Other assets............................................................................. 14,897 21,955 Assets related to separate accounts Variable annuity.................................................................... 10,987,259 8,382,367 ------------ ------------ $885,150,043 $940,498,772 ============ ============
---------------------------------------------------- Year Ended December 31 ---------------------------------------------------- 2003 2002 2001 ---- ---- ----
The Company was founded in 1978 as American Foundation Life Insurance Company. Effective March 1, 1999, the Company’s name was changed to Protective Life and Annuity Insurance Company. Since 1983, all outstanding shares of the Company’s common stock have been owned by Protective Life Insurance Company (“Protective”), which is a wholly-owned subsidiary of Protective Life Corporation (“PLC”), an insurance holding company domiciled in the state of Delaware. All outstanding shares of the Company’s preferred stock are owned by PLC.
On October 1, 2003, the Company adopted Derivatives Implementation Group Issue No. B36, “Embedded Certain Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor under Those Instruments” (DIG B36). DIG B36 requires the bifurcation of embedded derivatives within certain modified coinsurance and funds withheld coinsurance arrangements that expose the creditor to credit risk of a company other than the debtor, even if the debtor owns as invested assets the third-party securities to which the creditor is exposed. The adoption did not have a material impact on its financial condition or results of operations.
Estimated market values were derived from the durations of the Company’s fixed maturities and mortgage loans. Duration measures the relationship between changes in market value to changes in interest rates. While these estimated market values generally provide an indication of how sensitive the market values of the Company’s fixed maturities and mortgage loans are to changes in interest rates, they do not represent management’s view of future market changes, and actual market results may differ from these estimates. Substantially all short-term investments have maturities of three months or less at the time of acquisition.
The cost to acquire blocks of insurance representing the present value of future profits from such blocks of insurance is also included in deferred policy acquisition costs. The Company amortizes the present value of future profits over the premium payment period, including accrued interest of up to approximately 8.0%. The unamortized present value of future profits was approximately $100.1 million and $106.5 million at December 31, 2003 and 2002, respectively. During 2003, $6.4 million of present value of future profits was amortized. During 2002, $7.2 million of present value of future profits was amortized. No amounts were capitalized during 2003 or 2002.
The expected amortization of the present value of future profits for the next five years is as follows:
The assets and liabilities related to separate accounts in which the Company does not bear the investment risk are valued at market and reported separately as assets and liabilities related to separate accounts in the accompanying financial statements.
Liabilities for future policy benefits on traditional life insurance products have been computed using a net level method including assumptions as to investment yields, mortality, persistency, and other assumptions based on the Company’s experience, modified as necessary to reflect anticipated trends and to include provisions for possible adverse deviation. Reserve investment yield assumptions on December 31, 2003 were 7.34%. The liability for future policy benefits and claims on traditional life, health, and credit insurance products includes estimated unpaid claims that have been reported to the Company and claims incurred but not yet reported. Policy claims are charged to expense in the period in which the claims are incurred.
Paid related to: Current year........................................... 13,396,238 10,612,857 9,454,229 Prior year............................................. 991,334 1,137,071 2,155,651 ------------ ------------ ------------ Total paid.......................................... 14,387,572 11,749,928 11,609,880 ------------ ------------ ------------
Net balance end of year................................ 5,350,078 5,494,776 5,614,651 Plus reinsurance.................................... 4,616,804 2,339,338 1,459,829 ------------ ------------ ------------ Balance end of year.................................... $ 9,966,882 $ 7,834,114 $ 7,074,480 ============ ============ ============
On December 31, 2001, PLC completed the sale to Fortis, Inc. of substantially all of its Dental Division, and discontinued certain other remaining Dental Division related operations, primarily other health insurance lines.
2003 2002 2001 ---------------------------------------- ------------------ ----------------- ----------------- Total revenues $ 0 $ 0 $ 970,192 ---------------------------------------- ------------------ ----------------- ----------------- Income before income taxes from discontinued operations $ 0 $ 0 $ 240,377 Income tax (expense) benefit (81,488) ---------------------------------------- ------------------ ----------------- ----------------- Income from discontinued operations $ 0 $ 0 $ 158,889 ---------------------------------------- ------------------ ----------------- ----------------- Gain from sale of discontinued operations before income tax $ 2,500,000 Income tax expense related to sale 875,000 ---------------------------------------- ------------------ ----------------- ----------------- Gain from sale of discontinued operations $ 1,625,000 ---------------------------------------- ------------------ ----------------- -----------------
Financial statements prepared in conformity with accounting principles generally accepted in the United States of America differ in some respects from the statutory accounting practices prescribed or permitted by insurance regulatory authorities. The most significant differences are as follows: (a) acquisition costs of obtaining new business are deferred and amortized over the approximate life of the policies rather than charged to operations as incurred; (b) benefit liabilities are computed using a net level method and are based on realistic estimates of expected mortality, interest, and withdrawals as adjusted to provide for possible unfavorable deviation from such assumptions; (c) deferred income taxes are not subject to statutory limitations as to amounts recognized and are recognized through earnings as opposed to being charged to share-owners’ equity; (d) the Asset Valuation Reserve and Interest Maintenance Reserve are restored to share-owners’ equity; (e) agents’ debit balances and prepaid expenses are reported as assets rather than being charged directly to surplus (referred to as nonadmitted items); (f) certain items of interest income, such as mortgage and bond discounts, are amortized differently; and (g) bonds are recorded at their market values instead of amortized cost. The National Association of Insurance Commissioners (NAIC) has adopted the Codification of Statutory Accounting Principles (Codification). Codification changed statutory accounting rules in several areas and was effective January 1, 2001. The adoption of Codification did not have a material effect on the Company’s statutory capital.
Net Income Share-Owners' Equity ---------------------------------------- -------------------------------------------- 2003 2002 2001 2003 2002 2001 ---- ---- ---- ---- ---- ----
Fixed maturities................................... $38,891,316 $33,778,487 $31,496,317 Mortgage loans..................................... 113,288 170,428 282,544 Policy loans....................................... 3,703,603 3,748,912 3,691,041 Other, principally short-term investments.......... 460,662 312,989 236,511 ----------- ----------- ----------- 43,168,869 38,010,816 35,706,413 Investment expenses................................ (1,873,383) (1,764,979) (1,830,004) ----------- ----------- ----------- $41,295,486 $36,245,837 $33,876,409 =========== =========== ===========
Fixed maturities.................................. $2,645,663 $(480,629) $(1,113,538) Short-term investments............................ 701,646 (215,580) 0 ----------- ----------- ----------- $3,347,309 $(696,209) $(1,113,538) =========== =========== ===========
Gross Gross Estimated Amortized Unrealized Unrealized Market 2003 Cost Gains Losses Values ---- -------------- -------------- -------------- ----------------- Fixed maturities: Bonds: Mortgage-backed securities............ $ 42,286,991 $ 931,855 $ (130,262) $ 43,088,584 United States Government and authorities........................... 7,702,497 155,328 (516) 7,857,309 Public utilities...................... 123,694,171 6,064,624 (2,018,769) 127,740,026 All other corporate bonds............. 425,258,254 34,228,100 (1,711,998) 457,774,356 ------------- ------------ ------------ ------------- 598,941,913 41,379,907 (3,861,545) 636,460,275 Short-term investments................... 1,200,413 0 0 1,200,413 ------------- ------------ ------------ ------------- $600,142,326 $41,379,907 $(3,861,545) $637,660,688 ============= ============ ============ =============
Gross Gross Estimated Amortized Unrealized Unrealized Market 2002 Cost Gains Losses Values ---- -------------- -------------- -------------- ----------------- Fixed maturities: Bonds: Mortgage-backed securities............ $ 17,963,051 $ 995,934 $ 0 $ 18,958,985 United States Government and authorities........................... 8,822,336 268,990 0 9,091,326 Public utilities...................... 76,359,211 2,799,099 (3,751,446) 75,406,864 All other corporate bonds............. 363,779,488 28,095,926 (6,630,782) 385,244,632 ------------- ------------ ------------ ------------- 466,924,086 32,159,949 (10,382,228) 488,701,807 Short-term investments................... 178,805,245 0 0 178,805,245 ------------- ------------ ------------ ------------- $645,729,331 $32,159,949 $(10,382,228) $667,507,052 ============= ============ ============ =============
Due in one year or less.......................... $ 19,312,655 $ 19,753,878 Due after one year through five years............ 94,436,372 98,721,456 Due after five years through ten years........... 185,417,918 198,465,765 Due after ten years.............................. 299,774,968 319,519,176 ------------ ------------ $598,941,913 $636,460,275 ============ ============
Less Than 12 Months 12 Months or More Total ------------------------- ------------------------ ----------------------- Market Unrealized Market Unrealized Market Unrealized Value Loss Value Loss Value Loss ------------ ------------ ------------ ----------- ----------- ------------ Mortgage-backed securities............ $ 8,220,630 $ (130,262) $ 0 $ 0 $ 8,220,630 $ (130,262) US Government......................... 113,281 (516) 0 0 113,281 (516) Public Utilities...................... 40,721,844 (1,874,211) 3,807,500 (144,558) 44,529,344 (2,018,769) Other Corporate bonds................. 30,843,862 (944,962) 6,250,000 (767,037) 37,093,862 (1,711,999) ----------- ------------ ------------ ----------- ----------- ------------ $79,899,617 $(2,949,951) $10,057,500 $(911,595) $89,957,117 $(3,861,546) =========== ============ ============ =========== =========== ============
The Company considers the impairment of securities that have been in an unrealized loss position for less than 12 months to be temporary. The Company believes that it will collect all amounts contractually due and has the intent and the ability to hold these securities until maturity.
Statutory federal income tax rate applied to pretax income......... 35.0% 35.0% 35.0% Tax-exempt interest................................................ (0.1) (0.1) Other adjustments.................................................. (1.1) ---- ---- ---- Effective income tax rate.......................................... 34.9% 34.9% 33.9% ==== ==== ====
The Company’s income tax returns are included in the consolidated income tax returns of PLC. The allocation of income tax liabilities among affiliates is based upon separate income tax return calculations. At December 31, 2003, $702,883 was payable to PLC for income tax liabilities. At December 31, 2002 no amounts were payable to PLC for income tax liabilities.
Protective and the Company entered into a guaranty agreement on October 27, 1993, whereby Protective guaranteed the payment of all insurance policy claims made by the holders or beneficiaries of any of the Company’s policies which were issued after the date of the guaranty agreement in accordance with the terms of said policies. Total liabilities for policies covered by this agreement were $100.4 million and $108.8 million at December 31, 2003 and 2002, respectively.
Premiums and policy fees......... $ 3,569,913 $ 39,619,941 $ 28,719,566 $ 286,547 $ 72,195,967 Reinsurance ceded................ (3,351,825) (18,675,274) (25,270,120) (47,297,219) ----------------------------------------------------------------------------------------------------------------------------- Net of reinsurance ceded......... 218,088 20,944,667 3,449,446 286,547 24,898,748 Net investment income............ 38,387 29,143,524 499,944 3,720,590 $7,893,041 41,295,486 Realized investment gains........ 262,490 3,084,819 3,347,309 Other income (loss).............. (5,045) 24,909 136,631 156,495 ----------------------------------------------------------------------------------------------------------------------------- Total revenues............. 256,475 50,083,146 3,949,390 4,294,536 11,114,491 69,698,038 ----------------------------------------------------------------------------------------------------------------------------- Benefits and settlement expenses. (4,920) 24,672,248 2,374,123 3,734,802 30,776,253 Amortization of deferred policy acquisition costs.......... 335,099 6,461,913 778,226 315,107 7,890,345 Other operating expenses......... (844,963) 8,258,319 157,789 171,779 59,445 7,802,369 ----------------------------------------------------------------------------------------------------------------------------- Total benefits and expenses (514,784) 39,392,480 3,310,138 4,221,688 59,445 46,468,967 ----------------------------------------------------------------------------------------------------------------------------- Income before income tax......... 771,259 10,690,666 639,252 72,848 11,055,046 23,229,071 Less: realized investment gains.. 262,490 3,084,819 ----------------------------------------------------------------------------------------------------------------------------- Operating income 771,259 10,690,666 639,252 (189,642) 7,970,227 Income tax expense............... $8,111,704 8,111,704 -------------- Net Income ...................... $ 15,117,367 ============
During 2002, Protective sold one of its subsidiaries, Lyndon Life Insurance Company (Lyndon Life) to an unaffiliated insurance company. As part of the transaction, the Company assumed and subsequently ceded a portion of Lyndon Life’s business to Protective. The Company paid a ceding allowance of $31.2 million to Lyndon Life and received from Protective an allowance of $31.6 million. The total amount of reserves transferred in the transaction from Lyndon Life to the Company was $91.8 million. The same amount of reserves were ceded from the Company to Protective by structure of the treaty as funds withheld.
The carrying amounts and estimated fair values of the Company’s financial instruments at December 31 are as follows:
The Company believes the fair value of short-term investments approximates their book value due to their short-term nature.
Year Ended December 31, 2002 Life Marketing.......... $ 583,131 $ 689,662 $ 0 $ 0 $ 142,454 $ 8,123 $ 186,800 $ 76,132 $ (254,425) Acquisitions............ 100,007,935 460,211,404 43,965 4,841,464 23,808,052 30,989,460 27,513,318 7,225,750 8,330,634 Asset Protection........ 1,607,207 54,415,603 26,305,063 614,369 3,454,960 571,275 2,087,070 669,620 (324,360) Annuities............... 2,581,309 1,962,360 0 57,272,062 153,530 3,729,514 3,511,858 667,681 246,104 Corporate and Other..... 0 0 0 0 0 947,465 0 0 (63,392) Adjustments (2)......... 0 345,835 0 3,377,253 0 0 0 0 0 ------------------------------------------------------------------------------------------------------------------------------------------------- TOTAL............... $104,779,582 $517,624,864 $26,349,028 $66,105,148 $27,558,996 $36,245,837 $33,299,046 $8,639,183 $7,934,561 ================================================================================================================================================= Year Ended December 31, 2001 Acquisitions............ $25,209,340 $29,892,723 $28,533,646 $6,092,729 $8,937,528 Asset Protection........ 3,721,792 606,345 2,567,742 694,491 89,248 Annuities............... 155,298 1,909,607 2,243,541 247,260 226,297 Corporate and Other..... 0 1,467,734 0 0 (63,778) ------------------------------------------------------------------------------------------------------------------------------------------------- TOTAL............... $29,086,430 $33,876,409 $33,344,929 $7,034,480 $9,189,295 =================================================================================================================================================
------------------------------------------------------------ -------------- -------------- --------------- ------------- ------------- COL. A COL. B COL. C COL. D COL. E COL. F ------------------------------------------------------------ -------------- -------------- --------------- ------------- -------------
Year Ended December 31, 2002: Life insurance in force(1) ................... $ 1,045,749 $ 6,646,105 $ 7,207,124 $ 1,606,768 448.5% ===================================================================================================================================
Premiums and policy fees: Life insurance................................ $ 6,379,102 $22,962,666 $ 42,221,864 $25,638,300 164.7% Accident and health insurance................. 3,131,323 771,735 (438,892) 1,920,696 - ----------------------------------------------------------------------------------------------------------------------- TOTAL...................................... $ 9,510,425 $23,734,401 $ 41,782,972 $ 27,558,996 =======================================================================================================================
Year Ended December 31, 2001: Life insurance in force(1) ..................... $ 337,079 $ 4,865,367 $ 6,087,816 $ 1,559,528 390.4% ====================================================================================================================================
Premiums and policy fees: Life insurance.................................. $ 6,006,689 $18,481,015 $ 39,585,878 $ 27,111,552 146.0% Accident and health insurance................... 2,106,881 140,020 8,017 1,974,878 0.4% ----------------------------------------------------------------------------------------------------------------------- TOTAL........................................ $ 8,113,570 $18,621,035 $ 39,593,895 $ 29,086,430 =======================================================================================================================