Premiums and policy fees............$36,130,966 $ 9,767,144 269.9% Net investment income............... 28,714,951 10,678,166 168.9 Realized investment gains (losses).. 89,550 127,769 (29.9) Other income........................ 90,289 (598) - ------------------------------ $65,025,756 $20,572,481 =========== ===========
Net investment income for 1999 was $18.0 million or 168.9% higher than for the preceding year primarily due to a full year’s worth of earnings on the invested assets associated with the coinsurance transaction described above. The percentage earned on average cash and investments was 6.4% in 1999 and 6.4% in 1998.
The Company maintains an allowance for uncollectible amounts on investments, which totaled $0.5 million at December 31, 1999. There were no additions or reductions to the allowance during 1999. Realized investment gains in 1999 of $0.3 million were largely offset by realized investment losses of $0.2 million.
Operating Income (Loss) and Income (Loss) Before Income Tax Year Ended December 31 1999 1998 ---------- -------
The Investment Products Division began marketing certain annuity products in the state of New York in the latter part of 1998, resulting in a pretax operating loss of approximately $0.7 million in 1999 primarily related to start-up expenses.
Net Income ---------------------- Percentage Year Ended Increase December 31 Amount (Decrease) ------------- ------ ----------
Compared to 1998, net income in 1999 increased 289.4%, reflecting improved operating earnings in the Acquisitions and Financial Institutions Divisions, and the Corporate and Other segment, offset by lower operating earnings in the Dental and Investment Products Divisions and lower realized investment gains.
The Company shares computer hardware and software with PLC. PLC began work on the Year 2000 problems in 1995. PLC cannot specifically identify all of the costs to develop and implement its Year 2000 plan. The cost of new systems to replace non-compliant systems have been capitalized in the ordinary course of business. Other costs have been expensed as incurred. Those costs that have been specifically identified as relating to the Year 2000 problem total $5.2 million. PLC’s Year 2000 efforts have not adversely affected its normal procurement and development of information technology.
Should some of PLC’s systems become unavailable due to Year 2000 problems, in a reasonably likely worst case scenario, PLC and the Company could experience delays in their ability to perform certain functions, but do not expect to be unable to perform critical functions or to otherwise conduct business. However, other worst case scenerios could have an adverse effect on PLC and the Company and their operations.
Statements of Income for the years ended December 31, 1999, 1998, and 1997
In our opinion, the financial statements listed in the index on page 7 of this Form 10-K present fairly, in all material respects, the financial position of Protective Life and Annuity Insurance Company at December 31, 1999 and 1998, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 1999, in conformity with accounting principles generally accepted in the United States. In addition, in our opinion, the financial statement schedules listed in the index on page 7 present fairly, in all material respects, the information set forth therein when read in conjunction with the related financial statements. These financial statements and financial statement schedules are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements and financial statement schedules based on our audits. We conducted our audits of these statements in accordance with auditing standards generally accepted in the United States, which 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, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
REVENUES Premiums and policy fees............................................... $56,989,060 $23,242,432 $11,420,914 Reinsurance ceded...................................................... (20,858,094)(13,475,288) (3,005,081) ----------- ----------- ---------- Net of reinsurance ceded............................................. 36,130,966 9,767,144 8,415,833 Net investment income.................................................. 28,714,951 10,678,166 6,233,845 Realized investment gains.............................................. 89,550 127,769 (59,889) Other income(loss)..................................................... 90,289 (598) 8,718 ------------- -------------- -------- 65,025,756 20,572,481 14,598,507 ---------- ----------- ---------- BENEFITS AND EXPENSES Benefits and settlement expenses (net of reinsurance ceded: 1999-$17,399,370; 1998-$18,523,397; 1997-$4,430,527).................................. 32,207,147 9,261,000 9,075,762 Amortization of deferred policy acquisition costs...................... 6,835,492 1,711,138 320,288 Other operating expenses (net of reinsurance ceded: 1999-$291,274; 1998-$247,095; 1997-$60,900)....................................... 12,925,932 6,246,819 2,406,314 ---------- ----------- ---------- 51,968,571 17,218,957 11,802,364 ---------- ----------- ----------
INCOME AVAILABLE TO COMMON SHARE OWNER.................................... $9,401,173 $2,314,538 $1,745,454 ========== =========== ==========
SHARE-OWNERS' EQUITY Preferred Stock, $1.00 par value, shares authorized, issued and outstanding: 2,000......................................... 2,000 2,000 Common Stock, $10.00 par value Shares authorized: 1999 and 1998-500,000 Shares issued and outstanding: 1999 and 1998-250,000............................... 2,500,000 2,500,000 Additional paid-in capital........................................................... 101,386,324 101,574,516 Retained earnings.................................................................... 22,754,665 18,353,492 Accumulated other comprehensive income Net unrealized gains (losses) on investments (net of income tax: 1999-($6,108,773); (11,344,864) 8,808,609 1998-$4,743,097) ------------- ------------- Total share-owners' equity.................................................... 115,298,125 131,238,617 ------------- ------------ $609,497,829 $604,629,566 ============ ============
Net Additional Unrealized Total Preferred Common Paid-In Retained Gains (Losses) Share-Owners' Stock Stock Capital Earnings On Investments Equity ----------------------------------------------------------------------------
Balance, December 31, 1998 2,000 2,500,000 101,574,516 18,353,492 8,808,609 131,238,617 ----------- Net income for 1999 9,401,173 9,401,173 Decrease in net unrealized gains on investments (net of income tax: ($(10,820,527)) (20,095,265) (20,095,265) Reclassification adjustment for amounts included in net income (net of income tax: ($31,342)) (58,208) (58,208) ---------- Comprehensive loss for 1999 (10,752,300) ----------- Reduction in paid-in capital (188,192) (188,192) Common dividends ($20 per share) (5,000,000) (5,000,000) --------------------------------------------------------------------------- Balance, December 31, 1999 $2,000 $2,500,000 $101,386,324 $ 22,754,665 $(11,344,864) $115,298,125 ===========================================================================
December 31 ------------------------------------- 1999 1998 1997 -------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income.........................................................................$ 9,401,173 $ 2,414,538 $ 1,845,454 Adjustments to reconcile net income to net cash provided by operating activities: Realized investment (gains)/losses.............................................. (89,550) (127,769) 59,889 Amortization of deferred policy acquisition costs............................... 6,835,492 1,711,138 320,288 Capitalization of deferred policy acquisition costs............................. (1,352,066) (783,304) Deferred income taxes........................................................... 3,656,012 938,986 1,025,417 Interest credited to universal life and investment products..................... 12,171,689 2,422,680 1,059,710 Policy fees assessed on universal life and investment products.................. (18,758,319) (1,004,958) (1,048,883) Change in accrued investment income and other receivables....................... (8,078,299) (19,671,587) 2,020,726 Change in policy liabilities and other policyholder funds of traditional life and health products............................................................ (6,313,259) 12,188,685 (8,576,735) Change in other liabilities..................................................... 10,396,783 (1,023,377) 200,205 Other (net)..................................................................... 14,237 14,841 (79,787) ---------------- ----------------- ---------- Net cash provided by (used in) operating activities.................................... 7,883,893 (2,920,127) (3,173,716) --------------- --------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES Maturities and principal reduction of investments: Investments available for sale.................................................. 256,525,416 1,164,896,631 135,907,273 Other........................................................................... 2,701,003 3,018,788 3,661,121 Sale of investments: Investments available for sale.................................................. 17,961,720 210,129,485 4,386,839 Other........................................................................... 435,000 Cost of investments acquired: Investments available for sale.................................................. (301,844,318)(1,371,845,622)(139,669,118)
-------------------------------------------- Net cash provided by (used in) investing activities.................................... (24,656,179) 6,634,282 4,286,115 --------------------------------------------
INCREASE (DECREASE) IN CASH............................................................ 4,021,839 (2,218,201) 644,020 CASH AT BEGINNING OF YEAR.............................................................. 0 2,218,201 1,574,181 --------------------- ------------------ ---- CASH AT END OF YEAR....................................................................$ 4,021,839 $ 0 $ 2,218,201 ============== ======================= ======
BASIS OF PRESENTATION The accompanying financial statements of Protective Life and Annuity Insurance Company (“the Company”) are prepared on the basis of accounting principles generally accepted in the United States. Such accounting principles differ from statutory reporting practices used by insurance companies in reporting to state regulatory authorities. (See also Note B.)
RECENTLY ISSUED ACCOUNTING STANDARDS In 1997, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 125, "Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities;" SFAS No. 130, "Reporting Comprehensive Income;" and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information."
· Mortgage loans-- at unpaid balances, adjusted for loan origination costs, net of fees, and amortization of premium or discount.
· Investment real estate -- at cost, less allowances for depreciation computed on the straight-line method. With respect to real estate acquired through foreclosure, cost is the lesser of the loan balance plus foreclosure costs or appraised value.
Total investments...................... $451,389,804 $426,832,267 Deferred policy acquisition costs.. ... 127,792,025 133,275,451 All other assets...................... 47,769,637 30,970,142 ----------- ----------- $626,951,466 $591,077,860
SEPARATE ACCOUNTS 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 in the accompanying financial statements.
REVENUES AND BENEFITS EXPENSE ·Traditional Life and Health Insurance Products-- Traditional life insurance products consist principally of those products with fixed and guaranteed premiums and benefits and include whole life insurance policies, term and term-like life insurance policies, limited-payment life insurance policies, and certain annuities with life contingencies. Life insurance and immediate annuity premiums are recognized as revenue when due. Health insurance premiums are recognized as revenue over the terms of the policies. Benefits and expenses are associated with earned premiums so that profits are recognized over the life of the contracts. This is accomplished by means of the provision for liabilities for future policy benefits and the amortization of deferred policy acquisition costs.
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 are graded and range from 2.5% to 7.0%. The liability for future policy benefits and claims on traditional life and health 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 that the claims are incurred.
Universal Life and Investment Products - Universal life and investment products include universal life insurance, deferred annuities, and annuities without life contingencies. Revenues for universal life and investment products consist of policy fees that have been assessed against policy account balances for the costs of insurance, policy administration, and surrenders. That is, universal life and investment product deposits are not considered revenues in accordance with generally accepted accounting principles. Benefit reserves for universal life and investment products represent policy account balances before applicable surrender charges plus certain deferred policy initiation fees that are recognized in income over the term of the policies. Policy benefits and claims that are charged to expense include benefit claims incurred in the period in excess of related policy account balances and interest credited to policy account balances. Interest credit rates for universal life and investment products ranged from 3.4% to 9.4% in 1999.
The National Association of Insurance Commissioners has adopted the Codification of Statutory Accounting Principles (Codification). The Codification changes current statutory accounting rules in several areas. The Company has not estimated the potential effect the Codification may have on its statutory capital. The Codification will become effective January 1, 2001.
1999 1998 1997 ---- ---- ---- Fixed maturities $25,258,034 $ 7,525,336 $4,701,611 Mortgage loans on real estate 89,178 952,437 1,146,325 Investment real estate 15,713 72,318 65,584 Policy loans 4,362,037 656,623 643,653 Other, principally short-term investments 458,761 2,083,693 112,127 ---------- ---------- --------- 30,183,723 11,290,407 6,669,300 Investment expenses (1,468,772) (612,241) (435,455) ---------- ---------- --------- $28,714,951 $10,678,166 $6,233,845 =========== =========== ==========
The Company maintainsd an allowance for uncollectible amounts on investments totaling $500,000 at December 31, 1999 and 1998. Additions and reductions to the allowance are included in realized investment gains (losses). There were no such additions/reductions to the allowance in 1999.
Gross Gross Estimated Amortized Unrealized Unrealized Market 1998 Cost Gains Losses Values ---- --------- ---------- ---------- ----------- Fixed maturities: Bonds: Mortgage-backed.............. $ 6,488,768 $ 204,235 $ 0 $ 6,693,003 United States Government and authorities.................. 8,731,486 474,109 0 9,205,595 States, municipalities, and political subdivisions....... 3,075,631 105,159 0 3,180,790 Public utilities............. 54,040,814 1,380,112 12,869 55,408,057 Convertibles and bonds with warrants..................... 694,723 0 179,348 515,375 All other corporate bonds.... 273,530,149 12,673,749 1,093,441 285,110,457 ----------- ---------- --------- ----------- 346,561,571 14,837,364 1,285,658 360,113,277 Short-term investments........... 18,267,431 0 0 18,267,431 ----------- ---------- --------- ----------- $364,829,002 $14,837,364 $1,285,658 $378,380,708 =========== ========== ========= ===========
Estimated Amortized Market Cost Values ---------- ----------- ---- Due in one year or less...................... $ 11,793,662 $ 11,745,441 Due after one year through five years........ 188,297,459 184,541,652 Due after five years through ten years....... 117,246,221 110,568,151 Due after ten years.......................... 66,954,595 59,983,056 ----------- ----------- $ 384,291,937 $ 366,838,300 =========== ===========
At December 31, 1999, the average mortgage loan was $0.4 million, and the weighted average interest rate was 9.1%. The largest single mortgage loan was $1.4 million.
1999 1998 1997 ---- ---- ---- Statutory federal income tax rate applied to pretax income 35.00% 35.00% 35.00% Tax-exempt interest....................................... (0.20) (3.98) (7.20) Other adjustments......................................... (6.80) (3.02) 6.20 ----- ----- ----- Effective income tax rate................................. 28.00% 28.00% 34.00% ===== ===== =====
1999 1998 1997 ---- ---- ---- Deferred policy acquisition costs..........$5,095,750 $14,616,912 $(100,971) Benefit and other policy liability changes. 395,046 (11,991,104) (72,878) Temporary differences of investment income.(1,834,784) 398,620 (199,660) Other items................................ - (2,085,442) 775,617 --------- ---------- ------- $3,656,012 $ 938,986 $ 402,108 ========= ======= =======
The components of the Company’s net deferred income tax liability as of December 31 were as follows:
1999 1998 ---- ---- Deferred income tax assets: Policy and policyholder liability reserves.. $11,997,694 $12,392,740 Unrealized loss on investments.............. 7,409,865 - ---------- ---------- 19,407,559 12,392,740
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, 1999 and 1998 no amounts were payable to PLC for income tax liabilities.
In October 1998, the Company coinsured a block of life insurance policies from Lincoln National Corporation. The policies represent the payroll deduction business originally marketed and underwritten by Aetna.
In September 1999, the Company recaptured a block of credit life and disability policies which it had previously ceded.
Under insurance guaranty fund laws, in most states, insurance companies doing business therein can be assessed up to prescribed limits for policyholder losses incurred by insolvent companies. The Company does not believe such assessments will be materially different from amounts already provided for in the financial statements. Most of these laws do provide, however, that an assessment may be excused or deferred if it would threaten an insurer’s own financial strength.
Dividends on common stock are noncumulative and are paid as determined by the Board of Directors. At December 31, 1999, approximately $100.0 million of share-owners’ equity excluding net unrealized gains and losses represented net assets of the Company that cannot be transferred in the form of dividends, loans, or advances to Protective. In general, dividends up to specified levels are considered ordinary and may be paid thirty days after written notice to the insurance commissioner of the state of domicile unless such commissioner objects to the dividend prior to the expiration of such period. Dividends in larger amounts are considered extraordinary and are subject to affirmative prior approval by such commissioner. The maximum amount that would qualify as ordinary dividends to Protective by the Company in 2000 is estimated to be $12.8 million.
Prior to November 1998, the Company’s preferred stock had a provision for an annual minimum cumulative dividend, when and if declared, of $50.00 per share, and additional dividends to the extent the Company’s statutory earnings for the immediately preceding year exceeded $1.0 million. The minimum dividend and any accumulation was to be paid before any dividend on any other class of capital stock was paid. The additional dividends were noncumulative and were in preference to any other dividend on any other class of capital stock. Dividends of $100,000 were declared and paid in each of 1998, and 1997 on the preferred stock. Effective November 3, 1998, the Company’s articles of incorporation were amended such that the provision for an annual minimum cumulative dividend was removed. No preferred dividends were paid in 1999.
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 $10,170,685 at December 31, 1999.
Protective and the Company also entered into a guaranty agreement on December 31,1995, whereby Protective guaranteed that the Company will perform all of the obligations of Protective pursuant to the terms and conditions of an indemnity coinsurance agreement between Protective and an unaffiliated life insurance company. Total liabilities related to this coinsurance agreement were $10,337,543 at December 31,1999.
PLC, through its subsidiaries, operates several divisions whose principal strategic focuses can be grouped into three general categories: life insurance, specialty insurance products, and retirement savings and investment products. Each division has a senior officer of Protective responsible for its operations. A division is generally distinguished by products and/or channels of distribution. A brief description of each division the Company operates in follows.
Dental and Consumer Benefits Division. The Division’s primary focus is on indemnity and prepaid dental products. In 1997, the Division exited from the traditional group major medical business, fulfilling the Division’s strategy to focus primarily on dental and related products.
Dental and Total Consumer Financial Investment Corporate Net Operating Segment Income Acquisitions Benefits Institutions Products and Other Adjustments(1) Income --------------------------------------------------------------------------------------------------------------------------------- Premiums and policy fees $ 32,290,715 $1,750,639 $2,059,410 $30,202 $36,130,966 Net investment income 27,604,825 442,048 269,670 250,000 $ 148,408 28,714,951 Realized investment gains (losses) $89,550 89,550 Other income (8,718) 89,757 9,250 90,289 --------------------------------------------------------------------------------------------------------------------------------- Total revenues 59,886,822 2,192,687 2,418,837 289,452 148,408 89,550 65,025,756 --------------------------------------------------------------------------------------------------------------------------------- Benefits and settlement expenses 29,333,105 1,657,675 974,013 242,354 32,207,147 Amortization of deferred policy acquisition costs 6,334,661 500,831 6,835,492 Other operating expenses 12,059,458 45,833 33,574 761,937 25,130 12,925,932 --------------------------------------------------------------------------------------------------------------------------------- Total benefits and expenses 47,727,224 1,703,508 1,508,418 1,004,291 25,130 51,968,571 --------------------------------------------------------------------------------------------------------------------------------- Income before income tax 12,159,598 489,179 910,419 (714,839) 123,278 89,550 13,057,185 Income tax expense 3,656,012 3,656,012 --------------------------------------------------------------------------------------------------------------------------------- Net income $ 9,401,173 --------------------------------------------------------------------------------------------------------------------------------- Premiums and policy fees $ 7,414,597 $1,503,364 $848,682 $501 $ 9,767,144 Net investment income 11,071,366 718,492 136,472 $(1,248,164) 10,678,166 Realized investment gains (losses) $127,769 127,769 Other income (598) (598) --------------------------------------------------------------------------------------------------------------------------------- Total revenues 18,485,963 2,221,856 985,154 (97) (1,248,164) 127,769 20,572,481 --------------------------------------------------------------------------------------------------------------------------------- Benefits and settlement expenses 7,594,508 1,340,838 316,900 8,754 9,261,000 Amortization of deferred policy acquisition costs 1,535,385 175,753 1,711,138 Other operating expenses 5,947,115 144,257 105,307 50,140 6,246,819 --------------------------------------------------------------------------------------------------------------------------------- Total benefits and expenses 15,077,008 1,485,095 597,960 58,894 17,218,957 --------------------------------------------------------------------------------------------------------------------------------- Income before income tax 3,408,955 736,761 387,194 (58,991) (1,248,164) 127,769 3,353,524 Income tax expense 938,986 938,986 --------------------------------------------------------------------------------------------------------------------------------- Net income $ 2,414,538 --------------------------------------------------------------------------------------------------------------------------------- Premiums and policy fees $ 4,231,380 $4,158,505 $ 25,948 $ 8,415,833 Net investment income 4,590,650 1,026,054 $ 617,141 6,233,845 Realized investment gains (losses) (59,889) (59,889) Other income 8,718 8,718 --------------------------------------------------------------------------------------------------------------------------------- Total revenues 8,830,748 5,184,559 25,948 557,252 14,598,507 --------------------------------------------------------------------------------------------------------------------------------- Benefits and settlement expenses 5,984,374 3,080,800 10,588 9,075,762 Amortization of deferred policy acquisition costs 312,874 7,414 320,288 Other operating expenses 912,398 1,493,916 2,406,314 --------------------------------------------------------------------------------------------------------------------------------- Total benefits and expenses 7,209,646 4,574,716 18,002 11,802,364 --------------------------------------------------------------------------------------------------------------------------------- Income before income tax 1,621,102 609,843 7,946 557,252 2,796,143 Income tax expense $ 950,689 950,689 --------------------------------------------------------------------------------------------------------------------------------- Net income $ 1,845,454 ---------------------------------------------------------------------------------------------------------------------------------
Dental and Consumer Financial Investment Corporate Total Acquisitions Benefits Institutions Products and Other Assets --------------------------------------------------------------------------------------------------------------------------------- Operating Segment Assets Investments and other assets $424,265,907 $3,871,844 $11,815,617 $9,812,824 $31,939,612 $481,705,804 Deferred policy acquisition costs 126,247,865 1,544,160 127,792,025 --------------------------------------------------------------------------------------------------------------------------------- Total assets $550,513,772 $3,871,844 $13,359,777 $9,812,824 $31,939,612 $609,497,829 --------------------------------------------------------------------------------------------------------------------------------- Investments and other assets $434,928,613 $ 6,642,241 $2,658,668 $774,504 $26,350,089 $471,354,115 Deferred policy acquisition costs 132,582,526 692,925 133,275,451 --------------------------------------------------------------------------------------------------------------------------------- Total assets $567,511,139 $ 6,642,241 $3,351,593 $774,504 $26,350,089 $604,629,566 --------------------------------------------------------------------------------------------------------------------------------- Investments and other assets $ 76,644,539 $ 7,111,880 $20,698,754 $104,455,173 Deferred policy acquisition costs 1,606,596 $ 85,689 1,692,285 --------------------------------------------------------------------------------------------------------------------------------- Total assets $ 78,251,135 $ 7,111,880 $ 85,689 $20,698,754 $106,147,458 ---------------------------------------------------------------------------------------------------------------------------------
The Company assumes risks from and reinsures certain parts of its risks with other insurers under yearly renewable term, coinsurance, and modified coinsurance agreements. Yearly renewable term and coinsurance agreements are accounted for by passing a portion of the risk to the reinsurer. Generally, the reinsurer receives a proportionate part of the premiums less commissions and is liable for a corresponding part of all benefit payments. Modified coinsurance is accounted for similarly to coinsurance except that the liability for future policy benefits is held by the original company, and settlements are made on a net basis between the companies. The Company reviews the financial condition of its reinsurers and monitors the amount of reinsurance it has with its reinsurers.
1999 1998 -------------------------- ---------------------- Estimated Estimated Carrying Market Carrying Market Amount Values Amount Values -------- -------- ------ --------- Assets (see Notes A and C): Investments: Fixed maturities..................... $366,838,300 $366,838,300 $360,113,277 $360,113,277 Mortgage loans on real estate........ 3,683,311 3,793,364 7,900,221 8,511,779 Short-term investments............... 7,493,877 7,493,877 18,267,431 18,267,431 Cash..................................... 4,021,839 4,021,839 0 0 Liabilities (see Notes A): Annuity deposits..................... 12,253,056 11,925,142 3,434,342 3,406,010
Future Annuity Amortization Deferred Policy Deposits Premiums Benefits of Deferred Policy Benefits and Other and Net and Policy Other Acquisition and Unearned Policyholders' Policy Investment Settlement Acquisition Operating Segment Costs Claims Premiums Funds Fees Income (1) Expenses Costs Expenses(1) ------- ----------- -------- -------- ------------- ------- ----------- ---------- ------------ ----------- Year Ended December 31,1999: Life Insurance Acquisitions.. $126,247,865 $440,688,572 $ 54,704 $ 4,730,918 $32,290,715 $27,604,825 $29,333,105 $6,334,661 $12,059,458 Specialty Insurance Products Dental and Consumer Benefits... 0 105,162 1,242 3,441,818 1,750,639 442,048 1,657,675 0 45,833 Financial Institutions 1,544,160 4,086,816 7,796,478 18,864 2,059,410 269,670 974,013 500,831 33,574 Retirement Savings and Investment Products Investment Products 0 404,423 0 9,471,966 30,202 250,000 242,354 0 761,937 Corporate and Other 0 0 0 0 0 148,408 0 0 25,130 --------- ---------- --------- --------- ---------- ---------- ---------- --------- ---------- TOTAL...$127,792,025 $445,284,973 $7,852,424 $17,663,566 $36,130,966 $28,714,951 $32,207,147 $6,835,492 $12,925,932 =========== =========== ========= ========== ========== ========== ========== ========= ========== Year Ended December 31,1998: Life Insurance Acquisitions.$132,582,526 $439,215,364 $ 54,170 $ 8,600,060 $7,414,597 $11,071,366 $7,594,508 $1,535,385 $5,947,115 Specialty Insurance Products Dental and Consumer Benefits... 0 172,903 189 6,445,537 1,503,364 718,492 1,340,838 0 144,257 Financial Institutions 692,925 213,835 2,432,918 0 848,682 136,472 316,900 175,753 105,307 Retirement Savings and Investment Products Investment Products 0 240,000 0 531,751 501 0 8,754 0 50,140 Corporate and Other 0 0 0 0 0 (1,248,164) 0 0 0 ----------- ----------- --------- ---------- --------- ---------- --------- --------- --------- TOTAL....$133,275,451$439,842,102 $2,487,277 $15,577,348 $9,767,144 $10,678,166 $9,261,000 $1,711,138 $6,246,819 =========== =========== ========= ========== ========= ========== ========= ========= ========= Year Ended December 31,1997: Life Insurance Acquisitions..$ 1,606,596 $ 56,177,703 $ 463,232 $ 6,048,563 $4,231,380 $ 4,590,650 $5,984,374 $ 312,874 $ 912,398 Specialty Insurance Products Dental and Consumer Benefits... 0 76,979 0 6,961,019 4,158,505 1,026,054 3,080,800 0 1,493,916 Financial Institutions 85,689 0 0 0 25,948 0 10,588 7,414 0 Corporate and Other 0 0 0 0 0 617,141 0 0 0 -------- --------- ------- --------- -------- --------- --------- ----- --------- TOTAL.... $ 1,692,285 $ 56,254,682 $ 463,232 $13,009,582 $8,415,833 $ 6,233,845 $9,075,762 $ 320,288 $2,406,314 ========= ========== ======= ========== ========= ========= ========= ======= =========
Year Ended December 31,1997: Life insurance in force(1).....$ 229,717 $ 133,080 $ 367,176 $ 463,813 79.2% ======= ======= ======= ======= ==== Premiums and policy fees: Life insurance................. $2,926,434 $ 752,253 $ 2,124,374 $4,298,555 49.4% Accident and health insurance... 6,325,182 2,252,828 44,924 4,117,278 1.2% --------- --------- --------- --------- TOTAL.......................$9,251,616 $ 3,005,081 $ 2,169,298 $8,415,833 ========= ========= ========= =========