<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
- - SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
OR
_ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 333-18053
PRUCO LIFE INSURANCE COMPANY
OF NEW JERSEY
(Exact name of Registrant as specified in its charter)
New Jersey 22-2426091
-------------------------------- ------------------------------------
(State or other jurisdiction, (IRS Employer Identification No.)
incorporation or organization)
213 Washington Street, Newark, New Jersey 07102
--------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(973) 802-5740
--------------------------------------------------------
(Registrant's Telephone Number, including area code)
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 the number of shares outstanding of each of the
registrant's classes of common stock, as of August 13, 1999.
Common stock, par value of $5 per share: 400,000 shares
outstanding
<PAGE>
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C>
Cover Page 1
Index 2
PART I - Financial Information
------------------------------
Item 1. (Unaudited) Financial Statements
Statements of Financial Position
June 30, 1999 and December 31, 1998 3
Statements of Operations and Comprehensive Income
Three and six months ended June 30, 1999 and 1998 4
Statements of Changes in Stockholder's Equity
Six months ended June 30, 1999 and the year ended December 31, 1998 5
Statements of Cash Flows
Six months ended June 30, 1999 and 1998 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 9
Item 3. Quantitative and Qualitative Disclosures About Market Risk 11
PART II - Other Information
---------------------------
Item 2. Changes in Securities and Use of Proceeds 12
Item 6. Exhibits and Reports on Form 8-K 12
Signature Page 14
</TABLE>
2
<PAGE>
Pruco Life Insurance Company of New Jersey
Statements of Financial Position (Unaudited)
June 30, 1999 and December 31, 1998 (In Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
------------------ ------------------
<S> <C> <C>
ASSETS
Fixed maturities
Available for sale, at fair value (amortized cost, 1999: $565,653; $ 557,132 $ 622,990
1998: $617,758)
Held to maturity, at amortized cost (fair value, 1999: $7,285) 7,470 -
Policy loans 142,703 139,443
Short-term investments 60,732 53,761
------------ -----------
Total investments 768,037 816,194
Cash 763 45
Deferred policy acquisition costs 122,880 113,923
Accrued investment income 11,752 12,209
Receivable from affiliate 13,211 -
Other assets 2,384 15,379
Separate Account assets 1,649,137 1,453,407
----------- -----------
TOTAL ASSETS $2,568,164 $2,411,157
=========== ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Liabilities
Policyholders' account balances $ 413,254 $ 414,546
Future policy benefits and other policyholder liabilities 93,566 89,832
Cash collateral for loaned securities 4,715 34,424
Securities sold under agreements to repurchase 14,162 27,210
Income taxes payable 26,231 25,325
Payable to affiliate - 3,492
Other liabilities 21,698 19,489
Separate Account liabilities 1,646,026 1,450,986
----------- -----------
Total liabilities 2,219,652 2,065,304
----------- -----------
Contingencies (See Note 2)
Stockholder's Equity
Common stock, $5 par value;
400,000 shares, authorized;
issued and outstanding at
June 30, 1999 and December 31, 1998 2,000 2,000
Paid-in-capital 125,000 125,000
Retained earnings 223,898 217,260
Accumulated other comprehensive income (2,386) 1,593
----------- -----------
Total stockholder's equity 348,512 345,853
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $2,568,164 $2,411,157
=========== ===========
</TABLE>
See Notes to Financial Statements
3
<PAGE>
Pruco Life Insurance Company of New Jersey
Statements of Operations and Comprehensive Income (Unaudited)
Three and Six Months Ended June 30, 1999 and 1998 (In Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six months ended Three months ended
June 30, June 30,
1999 1998 1999 1998
------------------------------- -------------------------------
<S> <C> <C> <C> <C>
REVENUES
Premiums $ 694 $ 529 $ 411 $ 166
Policy charges and fee income 26,186 24,518 13,418 11,243
Net investment income 24,575 24,096 12,649 12,217
Realized investment (losses) gains, net (2,139) 1,823 (1,792) 681
Asset management fee income 3,250 2,601 1,755 1,155
Other income 164 58 66 15
------------------------------- -------------------------------
Total revenues 52,730 53,625 26,507 25,477
------------------------------- -------------------------------
BENEFITS AND EXPENSES
Policyholders' benefits 11,970 12,193 4,765 4,599
Interest credited to policyholders' account
balances 8,925 9,691 4,645 4,369
General, administrative and other expenses 21,623 17,038 13,186 11,040
------------------------------- -------------------------------
Total benefits and expenses 42,518 38,922 22,596 20,008
------------------------------- -------------------------------
Income before income taxes 10,212 14,703 3,911 5,469
------------------------------- -------------------------------
Income taxes 3,574 5,220 1,269 1,942
------------------------------- -------------------------------
NET INCOME $ 6,638 $ 9,483 $ 2,642 $ 3,527
------------------------------- -------------------------------
Unrealized gains (losses) on securities,
net of reclassification adjustment (3,979) 82 (2,410) 1,705
------------------------------- -------------------------------
COMPREHENSIVE INCOME $ 2,659 $ 9,565 $ 232 $ 5,232
=============================== ===============================
</TABLE>
See Notes to Financial Statements
4
<PAGE>
Pruco Life Insurance Company of New Jersey
Statements of Changes in Stockholder's Equity (Unaudited)
Six Months Ended June 30, 1999 and the Year Ended December 31, 1998
(In Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Accumulated
other Total
Common Paid-in- Retained comprehensive stockholder's
stock capital earnings income equity
------------- ------------- ------------- --------------- -----------------
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1997 $2,000 $125,000 $185,437 $2,956 $315,393
Net income - - 31,823 - 31,823
Change in unrealized losses on
securities, net of - - - (1,363) (1,363)
reclassification
adjustment
------------- ------------- ------------- ---------------- -----------------
Balance, December 31, 1998 $2,000 $125,000 $217,260 $1,593 $345,853
Net income - - 6,638 - 6,638
Change in unrealized losses on
securities, net of - - - (3,979) (3,979)
reclassification
adjustment
------------- ------------- ------------- ---------------- -----------------
Balance, June 30, 1999 $2,000 $125,000 $223,898 $ (2,386) $348,512
============= ============= ============= ================ ==================
</TABLE>
See Notes to Financial Statements
5
<PAGE>
Pruco Life Insurance Company of New Jersey
Statements of Cash Flows (Unaudited)
Six Months Ended June 30, 1999 and 1998 (In Thousands)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998
--------------- ---------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 6,638 $ 9,483
Adjustments to reconcile net income to net cash (used in) provided by
operating activities:
Policy charges and fee income (4,411) (3,692)
Interest credited to policyholders' account balances 8,925 9,691
Realized investment losses (gains), net 2,139 (1,823)
Amortization and other non-cash items 10,633 843
Change in:
Future policy benefits and other policyholders' liabilities 3,734 2,350
Accrued investment income 457 269
Payable to / Receivable from affiliates, net (16,703) 22,120
Separate Accounts (690) (93)
Policy loans (3,260) (6,970)
Deferred policy acquisition costs (8,957) (2,254)
Income taxes payable 906 (9,016)
Other, net 15,204 (4,649)
--------------- ---------------
Cash Flows From Operating Activities 14,615 16,259
--------------- ---------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from the sale/maturity of:
Fixed maturities:
Available for sale 559,840 298,205
Payments for the purchase of:
Fixed maturities:
Available for sale (510,634) (305,188)
Held to maturity (7,470) -
Cash collateral for loaned securities, net (29,709) (7,861)
Securities sold under agreement to repurchase, net (13,048) -
Short-term investments, net (6,964) 103
--------------- ---------------
Cash Flows Used In Investing Activities (7,985) (14,741)
--------------- ---------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Policyholders' account balances:
Deposits 113,275 175,341
Withdrawals (119,187) (175,958)
--------------- ---------------
Cash Flows Used In Financing Activities (5,912) (617)
--------------- ---------------
Net increase in Cash 718 901
Cash, beginning of year 45 3
--------------- ---------------
CASH, END OF PERIOD $ 763 $ 904
=============== ===============
</TABLE>
See Notes to Financial Statements
6
<PAGE>
Pruco Life Insurance Company of New Jersey
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of Pruco Life Insurance
Company of New Jersey ("the Company") have been prepared in accordance with
the requirements of Form 10-Q and generally accepted accounting principles
("GAAP") for interim financial information. These statements should be read in
conjunction with the financial statements and notes thereto for the year ended
December 31, 1998 included in the Company's Annual Report on Form 10-K for
that year.
The Company is a wholly owned subsidiary of Pruco Life Insurance Company
("Pruco Life"), a stock life insurance company organized in 1971 under the
laws of the state of Arizona. Pruco Life, in turn, is a wholly owned
subsidiary of The Prudential Insurance Company of America ("Prudential"), a
mutual insurance company founded in 1875 under the laws of the state of New
Jersey.
The accompanying financial statements have not been audited by independent
accountants in accordance with generally accepted auditing standards, but in
the opinion of management such financial statements include all adjustments,
consisting only of normal recurring accruals necessary to summarize fairly the
Company's financial position and results of operations. The results of
operations for the six months ended June 30, 1999 may not be indicative of the
results that may be expected for the year ending December 31, 1999.
Certain amounts in the prior years have been reclassified to conform to
current year presentation.
2. CONTINGENCIES
Several actions have been brought against the Company on behalf of those
persons who purchased life insurance policies based on complaints about sales
practices engaged in by Prudential, the Company and agents appointed by
Prudential and the Company. Prudential has agreed to indemnify the Company for
any and all losses resulting from such litigation.
In the normal course of business, the Company is subject to various claims and
assessments. Management believes the settlement of these matters would not
have a material effect on the financial position or results of operations of
the Company.
3. RELATED PARTY TRANSACTIONS
Prudential and the Company have an agreement with respect to administrative
services for the Prudential Series Fund ("Series Fund"), the portfolio of
mutual fund investments related to the Company's Separate Account products.
Under this agreement, Prudential pays compensation to the Company in the
amount equal to a portion of the gross investment advisory fees paid by the
Series Fund. This is recorded as "Asset management fee income" in the
Statements of Operations and Comprehensive Income.
Prudential and the Company operate under service and lease agreements whereby
services of officers and employees, supplies, use of equipment and office
space are provided by Prudential. During the first six months of 1999,
Prudential reviewed and modified its methods for determining the level of
administrative expenses charged to the Company. As a result, the level of such
expenses has increased significantly over the 1998 levels.
4. RECENT ACCOUNTING PRONOUNCEMENTS
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivatives and
Hedging Activities". The new accounting treatment required by this statement
will not affect the Company's liquidity or the ultimate economic gain or loss
from its derivative positions. However, it may affect the way the Company
recognizes changes in value of some of its derivatives and derivative-like
contract features, and this could lead to more volatility in the Company's
reported income statement results, especially on a quarterly basis.
7
<PAGE>
Pruco Life Insurance Company of New Jersey
Notes to Financial Statements (Unaudited)
- --------------------------------------------------------------------------------
Under previous accounting standards, companies could defer recognizing changes
in the value of derivatives used to hedge various risks if certain conditions
were met. Under the new accounting standards, all derivatives must be reported
at fair value each quarter, but if special hedge accounting requirements are
met this change in fair value may be offset, entirely or partially, by also
recognizing the corresponding change in value of the hedged item. Since the
Company already marks most of its derivative positions to market each quarter,
the Company does not expect this new treatment to materially increase its net
income volatility assuming the Company continues its current derivative and
hedging strategies.
While the Statement does not apply to most traditional insurance contracts,
some contracts may contain features that can affect settlement amounts
similarly to derivatives. For these contracts, the new standards call for
separate accounting for the "host contract" and the "embedded derivative",
leading to mark-to-market for the "embedded derivative" features that was not
previously required. While the Company's economic results from these contracts
are also unaffected, this accounting could lead to increased volatility in the
quarterly income statement results it reports.
The Company has not yet completed its assessment of the impact of the
statement, and its effect on the Company depends, among other things, on its
derivative positions and hedging strategies after the date of adoption. The
Company is required to adopt this statement no later than January 1, 2001.
8
<PAGE>
Cautionary Note Regarding Forward-Looking Statements
Certain of the statements included in this document may constitute
forward-looking statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. Words such as "expects," "believes,"
"anticipates," "intends," "plans," "assumes," "estimates," "projects," or
variations of such words are generally part of forward-looking statements.
Forward-looking statements are made based on management's current expectations
and beliefs concerning future developments and their potential effects upon
the Company. There can be no assurance that future developments affecting the
Company will be those anticipated by management. These forward looking
statements are not a guarantee of future performance and involve risks and
uncertainties, and there are certain important factors that could cause actual
results to differ materially from estimates or expectations reflected in such
forward-looking statements including, without limitation, changes in general
economic conditions, including the performance of financial markets and
interest rates; market acceptance of new products and distribution channels;
competitive, regulatory or tax changes that affect the cost or demand for the
Company's products; and adverse litigation results. While the Company
reassesses material trends and uncertainties affecting its financial condition
and results of operations, it does not intend to review or revise any
particular forward-looking statement referenced in this document in light of
future events. The information referred to above should be considered by
readers when reviewing any forward-looking statements contained in this
document.
Item 2. Management's Discussion and Analysis of Financial Condition and
- ------------------------------------------------------------------------
Results of Operations.
----------------------
The following analysis should be read in conjunction with the Notes to
Financial Statements.
The Company markets individual life insurance, variable life insurance,
variable annuities and fixed annuities through Prudential's sales force in New
Jersey and New York.
The Company markets its products in the life insurance and annuity sectors of
the insurance industry. These markets are subject to regulatory oversight with
particular emphasis placed on company solvency and sales practices. These
markets are also subject to increasing competitive pressures as the legal
barriers which have historically segregated the markets of the financial
services industry are being challenged through both legislative and judicial
processes. Regulatory changes have opened the insurance industry to
competition from other financial institutions, particularly banks and mutual
funds, that are positioned to deliver competing products through large, stable
distribution channels.
Competition in the annuity industry particularly, is very intense. In the
annuity marketplace, with respect to variable annuities, investment and
product features as well as distribution capability are critical to the
ability to compete. Demographic trends and the concerns over the viability of
Social Security have resulted in the need to provide consumers with long term
retirement alternatives. Given the strong growth within the retirement savings
market, the level of competition has increased significantly not only from
other insurance companies but from other financial intermediaries as well.
Product sales and asset retention are a function of investment performance,
product features, customer service, distribution capability and product
pricing.
The Company held $2.6 billion in assets at June 30, 1999 compared to $2.4
billion at December 31, 1998, of which $1.6 billion and $1.5 billion were held
in Separate Accounts in 1999 and 1998 respectively under variable life
insurance policies and variable annuity contracts. The remaining assets
consisted primarily of general account investments and deferred policy
acquisition costs.
1. Results of Operations
For the six months ended June 30, 1999 and June 30, 1998
- --------------------------------------------------------
Net income for the six months ended June 30, 1999 amounted to $6.6 million, a
decrease of $2.9 million or 30.5% from $9.5 million in the six months ended
June 30, 1998.
Total insurance revenues, consisting of premiums and policy charges and fee
income increased $1.9 million from $25.0 million for the six months ended June
30, 1998 to $26.9 million for the six months ended June 30, 1999. This
increase in insurance revenues is primarily attributable to increased fees
generated from asset appreciation in the Separate Account . Appreciation in
Separate Account asset values contributed to the growth in assets under
management and consequently in policy charges and fees earned. For the
Discovery Select Variable Annuity ("Discovery Select"), Separate Account
assets under management increased by $243.8 million to $511.3 million as of
June 30, 1999 from the June 30, 1998 level.
9
<PAGE>
The Company's net realized investment gains decreased $3.9 million from $1.8
million for the six months ended June 30, 1998 to a loss of $2.1 million for
the six months ended June 30, 1999. The decrease in net realized investment
gains was primarily due to net sales of fixed maturities during a period of
increasing interest rates. These sales were a result of strategic decision to
reallocate money to short term investments.
Asset management fee income increased $0.6 million from $2.6 million for the
six months ended June 30, 1998 to $3.2 million for the six months ended June
30, 1999. Appreciation in the Separate Account products have generated an
increase in asset management fee income from the Series Fund.
Interest credited to policyholders' account balances decreased by $0.8 million
from $9.7 million for the six months ended June 30, 1998 to $8.9 million for
the six months ended June 30, 1999. This decrease is primarily attributable to
a decline in crediting rates.
General, administrative, and other expenses increased $4.6 million from $17.0
million for the six months ended June 30, 1998 to $21.6 million for the six
months ended June 30, 1999. The primary reason for the higher level of
expenses in 1999 is a change in Prudential's allocation methodology for
expenses billed to the Company resulting in an increase in non-deferrable
expenses.
For the three months ended June 30, 1999 and June 30, 1998
- ----------------------------------------------------------
Net income for the three months ended June 30, 1999 amounted to $2.6
million, a decrease of $0.9 million or 25.7% from $3.5 million in the six
months ended June 30, 1998.
Total insurance revenues, consisting of premiums and policy charges and fee
income increased $2.4 million from $11.4 million for the three months ended
June 30, 1998 to $13.8 million for the three months ended June 30, 1999. This
increase in insurance revenues is primarily attributable to appreciation in
Separate Account assets. Appreciation in Separate Account asset values was the
primary contribution to the growth in assets under management and consequently
on fees earned.
The Company's net realized investment gains decreased $2.5 million from $0.7
million for the three months ended June 30, 1998 to a loss of $1.8 million for
the three months ended June 30, 1999. The decrease in net realized investment
gains was primarily due to net sales of fixed maturities during a period of
increasing interest rates. These sales were a result of strategic decision to
reallocate money to short term investments.
Asset management fee income increased $0.6 million from $1.2 million for the
three months ended June 30, 1998 to $1.8 million for the three months ended
June 30, 1999. Appreciation in the Separate Account products have generated an
increase in asset management fee income from the Series Fund.
General, administrative, and other expenses increased $2.2 million from $11.0
million for the three months ended June 30, 1998 to $13.2 million for the
three months ended June 30, 1999. The primary reason for the higher level of
expenses in the three months ended June 30, 1999 is a change in Prudential's
allocation methodology for expenses billed to the Company resulting in an
increase in non-deferrable expenses.
2. The Year 2000 Issue
Prudential has addressed the Year 2000 issue on an enterprise-wide basis;
therefore, it is not possible to differentiate the Company's Year 2000 issue
from that of Prudential. Refer to management's discussion of the Year 2000
issue in the December 31, 1998 Form 10-K for the steps taken by Prudential to
mitigate the Year 2000 risks.
The Business application, Infrastructure and Business Partners components of
Prudential's Year 2000 project are substantially complete. Although a small
number of projects did not meet their targeted completion dates in the second
quarter, Prudential expects all projects will be completed by September, 1999.
Accordingly, these delays do not have a significant impact on the timing of
the project as a whole.
Prudential believes that the Year 2000 project is substantially on schedule.
Prudential is continuing to review and update their contingency plans until
2000 in an effort to reduce the level of uncertainty about the effect of the
Year 2000 issue and further mitigate risk. Prudential believes that, with the
completion of the Year 2000 program as scheduled, the possibility of
significant interruptions of normal operations will be reduced.
10
<PAGE>
Prudential has investment securities that are both publicly traded and
privately placed. Prudential is exposed to the risk that issuers of these
investments will be adversely affected by Year 2000 issues. Prudential
assesses the impact which Year 2000 issues may have on our investments as part
of due diligence for proposed new investments as well as their ongoing review
of current portfolio holdings. Any recommended actions with respect to
particular investments consider the disclosed potential impact of Year 2000 on
the issuer.
The Year 2000 costs allocated to the Company to date are not material to its
operations and financial position. Moreover, the forecasted allocated Year
2000 costs are not expected to have a material impact on the Company's ability
to meet its contractual commitments. The discussion of the Year 2000 issue
herein, and in particular the Company's plans to remediate this issue and
estimated costs thereof, are forward-looking in nature.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
- -------------------------------------------------------------------
The Company's exposure to market risks and the way these risks are managed,
are summarized in Item 7a of the 1998 Form 10K.
11
<PAGE>
PART II
-------
Item 2. Changes in Securities and Use of Proceeds.
- ---------------------------------------------------
(d) Information required by Item 701(f) of Regulation S-K:
(1) The original effective date of the Registration Statement of
the Company on Form S-1 was declared effective on February
14, 1997 (Registration No. 333-18053). The registration
statement continues to be effective through annual
amendments, the most recent filed April 16, 1999 and
declared effective April 30, 1999.
(2) Offering commenced immediately upon effectiveness of the
registration statement.
(3) Not applicable.
(4) (i) The offering has not been terminated.
(ii) The managing underwriter of the offering is Prudential
Investment Management Services LLC.
(iii) Market-Value Adjustment Annuity Contracts (also known
as modified guaranteed annuity contracts).
(iv) Securities registered and sold for the account of the
Company:
Amount registered*: $ 150,000,000
Aggregate price of the offering
amount registered: $ 150,000,000
Amount sold*: $ 21,230,000
Aggregate offering price of amount
sold to date: $ 21,230,000
* Securities not issued in predetermined units
No securities have been registered for the account
of any selling security holder.
(v) Expenses associated with the issuance of the
securities:
Underwriting discounts and
commissions** $ 743,000
Other expenses** $ 485,000
Total $ 1,228,000
** Amounts are estimated and are paid to affiliated
parties.
(vi) Net offering proceeds: $ 20,002,000
(vii) Not applicable.
(viii) Not applicable.
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibits
3(i)(a) The Articles of Incorporation (as amended through March 11,
1983) of Pruco Life Insurance Company of New Jersey are
incorporated by reference to Post-effective Amendment No. 26
to the Registration Statement on Form S-6 of Pruco Life of
New Jersey Variable Appreciable Account as filed April 28,
1997, Registration No. 2-89780.
3(i)(b) Amendment to the Articles of Incorporation dated February
12, 1998 is incorporated by reference to Post-Effective
Amendment No. 12 to the Registration Statement on Form S-1,
of Pruco Life of New Jersey Variable Contract Real Property
Account as filed on April 16, 1999, Registration No.
33-20018.
12
<PAGE>
PART II
-------
3(ii)a By-Laws of Pruco Life Insurance Company of New Jersey (as
amended through May 5, 1997) are incorporated by reference
to Form 10-Q as filed by the Company on August 15, 1997.
3(ii)b Incorporated by reference to Form S-6, filed on August 13,
1999 on behalf of the Pruco Life Insurance Company of New
Jersey Variable Appreciable account.
4 Market-Value Adjustment Annuity Contract is incorporated by
reference to the Company's registration statement on Form
S-1, Registration No. 333-18053, as filed November 17, 1995.
27 Financial Data Schedule is filed herewith in accordance with
EDGAR instructions.
13
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf of the
undersigned, thereunto duly authorized.
PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY
(Registrant)
Signature Title Date
- --------- ----- -----
/s/ ESTHER H. MILNES President and Director August 13, 1999
- -----------------------
Esther H. Milnes
/s/ DENNIS G. SULLIVAN Principal Financial Officer August 13, 1999
- ----------------------- and Chief Accounting Officer
Dennis G. Sullivan
14
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<DEBT-HELD-FOR-SALE> 557,132
<DEBT-CARRYING-VALUE> 7,470
<DEBT-MARKET-VALUE> 7,285
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 768,037
<CASH> 763
<RECOVER-REINSURE> 15
<DEFERRED-ACQUISITION> 122,880
<TOTAL-ASSETS> 2,568,164
<POLICY-LOSSES> 0
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 93,566
<POLICY-HOLDER-FUNDS> 413,254
<NOTES-PAYABLE> 0
0
0
<COMMON> 2,000
<OTHER-SE> 346,512
<TOTAL-LIABILITY-AND-EQUITY> 2,568,164
694
<INVESTMENT-INCOME> 24,575
<INVESTMENT-GAINS> (2,139)
<OTHER-INCOME> 164
<BENEFITS> 20,895
<UNDERWRITING-AMORTIZATION> 7,299
<UNDERWRITING-OTHER> 14,324
<INCOME-PRETAX> 10,212
<INCOME-TAX> 3,574
<INCOME-CONTINUING> 6,638
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,638
<EPS-BASIC> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
