<PAGE> 1
- --------------------------------------------------------------------------------
Flexible Premium Variable
Universal Life Insurance Policy
- --------------------------------------------------------------------------------
Supplement to Prospectus Portfolio
Dated October 11, 1999
- --------------------------------------------------------------------------------
Flexible Premium
Variable Universal Life Insurance Policy
Issued by
MONY Life Insurance Company of America
Supplement dated December 3, 1999
- --------------------------------------------------------------------------------
<PAGE> 2
SUPPLEMENT DATED DECEMBER 3, 1999
to
PROSPECTUS DATED OCTOBER 11, 1999
for
Flexible Premium Variable Universal Life Insurance Policy
Issued by
MONY Life Insurance Company of America
MONY America Variable Account L
Effective December 3, 1999 this Supplement updates certain information contained
in your Prospectus. Please read it and keep it with your prospectus for future
reference.
1. AS OF DECEMBER 3, 1999, THE SUBACCOUNTS PURCHASING SHARES OF THE PORTFOLIOS
OF THE SALOMON BROTHERS VARIABLE SERIES FUNDS, INC. ARE NO LONGER AVAILABLE
TO CONTRACTHOLDERS. ALL REFERENCES TO SALOMON BROTHERS VARIABLE SERIES
FUNDS, INC., CAPITAL FUND, STRATEGIC BOND FUND, INVESTORS FUND AND THE
CAPITAL SUBACCOUNT, STRATEGIC BOND SUBACCOUNT AND INVESTORS SUBACCOUNT ARE
HEREBY DELETED FROM THE PROSPECTUS.
2. THE TABLE OF ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1998 ON PAGE 5
IS AMENDED TO ADD THE FOLLOWING INFORMATION UNDER THE HEADING "FIDELITY
VARIABLE INSURANCE PRODUCTS FUND II":
<TABLE>
<CAPTION>
OTHER EXPENSES
(AFTER
FUND/PORTFOLIO MANAGEMENT FEES REIMBURSEMENT) TOTAL EXPENSES
-------------- --------------- -------------- --------------
<S> <C> <C> <C>
Asset Manager Portfolio..................... 0.54% 0.09% 0.63%(7,9)
</TABLE>
3. THE TABLE OF ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1998 ON PAGE 6
IS AMENDED TO ADD THE FOLLOWING INFORMATION UNDER THE HEADING "FIDELITY
VARIABLE INSURANCE PRODUCTS FUND III":
<TABLE>
<CAPTION>
OTHER EXPENSES
(AFTER
FUND/PORTFOLIO MANAGEMENT FEES REIMBURSEMENT) TOTAL EXPENSES
-------------- --------------- -------------- --------------
<S> <C> <C> <C>
Growth and Income Portfolio................. 0.49% 0.11% 0.60%(7,9)
</TABLE>
4. THE TABLE OF ANNUAL EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1998 ON PAGE 6
IS AMENDED TO ADD THE FOLLOWING INFORMATION UNDER THE HEADING "JANUS ASPEN
SERIES":
<TABLE>
<CAPTION>
OTHER EXPENSES
(AFTER
FUND/PORTFOLIO MANAGEMENT FEES REIMBURSEMENT) TOTAL EXPENSES
-------------- --------------- -------------- --------------
<S> <C> <C> <C>
Capital Appreciation Portfolio.............. 0.70% 0.22% 0.92%(9,10)
</TABLE>
5. FOOTNOTE 7 ON PAGE 6 IS AMENDED BY THE ADDITION OF THE FOLLOWING
INFORMATION:
Fidelity VIP II -- Asset Manager - .64%; Fidelity VIP III -- Growth &
Income - .61%
6. PAGE 6 IS AMENDED BY THE ADDITION OF A NEW FOOTNOTE 9 TO READ AS FOLLOWS:
9. These subaccounts have not yet commenced operations.
7. PAGE 6 IS AMENDED BY THE ADDITION OF A NEW FOOTNOTE 10 TO READ AS FOLLOWS:
10. Expenses are net of waivers. Absent waivers, expenses for the Capital
Appreciation portfolio would have been .97%.
8. PAGE 14 OF THE PROSPECTUS IS AMENDED TO CHANGE THE NAME OF THE SUBACCOUNT
THAT PURCHASES SHARES OF DREYFUS VARIABLE INVESTMENT FUND CAPITAL
APPRECIATION PORTFOLIO FROM CAPITAL APPRECIATION SUBACCOUNT TO CAPITAL
APPRECIATION SUBACCOUNT I.
<PAGE> 3
9. PAGE 16 IS AMENDED BY THE ADDITION OF THE FOLLOWING INFORMATION:
<TABLE>
<CAPTION>
SUBACCOUNT, UNDERLYING MUTUAL FUND AND
DESIGNATED PORTFOLIO
INVESTMENT OBJECTIVE
<S> <C>
ASSET MANAGER SUBACCOUNT Seeks to obtain high total return with
reduced risk over the long term by
Fidelity Variable Insurance Products Fund II allocating its assets among stocks,
Asset Manager Portfolio bonds, and short-term investments.
GROWTH AND INCOME SUBACCOUNT Seeks high total return through a
combination of current income and capital
Fidelity Variable Insurance Products Fund III appreciation by investing a majority of
Growth and Income Portfolio assets in common stocks with a focus on
those that pay current dividends and show
potential for capital appreciation.
CAPITAL APPRECIATION SUBACCOUNT II Seeks long-term growth of capital. It
pursues its objective by investing
Janus Aspen Series primarily in common stocks selected for
Capital Appreciation Portfolio their growth potential. The portfolio may
invest in companies of any size from
larger, well-established companies to
smaller, emerging growth companies.
</TABLE>
10. THE TABLE UNDER "FIDELITY VARIABLE INSURANCE PRODUCTS FUND {" ON PAGE 26 IS
AMENDED BY THE ADDITION OF THE FOLLOWING INFORMATION:
<TABLE>
<CAPTION>
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
<S> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND II -- ASSET MANAGER PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
Fidelity Management & Research (U.K.) Inc. result by the fund's average net assets
Fidelity Management & Research Far East Inc. throughout the month. The group fee rate
Fidelity Investments Money Management, Inc. is based on the average net assets of
all the mutual funds advised by FMR.
This group rate cannot rise above 0.52%
for this fund, and it drops as total
assets under management increase. The
individual fee rate for this fund is
0.25%.
FIDELITY VARIABLE INSURANCE PRODUCTS The fee is calculated by adding a group
FUND III -- GROWTH AND INCOME PORTFOLIO fee rate to an individual fee rate,
dividing by twelve, and multiplying the
Fidelity Management & Research (U.K.) Inc. result by the fund's average net assets
Fidelity Management & Research Far East Inc. throughout the month. The group fee rate
is based on the average net assets of
all the mutual funds advised by FMR.
This group rate cannot rise above 0.52%
for this fund, and it drops as total
assets under management increase. The
individual fee rate for this fund is
0.20%.
</TABLE>
11. THE TABLE UNDER "JANUS ASPEN SERIES" ON PAGE 27 IS AMENDED BY THE ADDITION
OF THE FOLLOWING INFORMATION:
<TABLE>
<CAPTION>
PORTFOLIO AND SUB-INVESTMENT ADVISERS INVESTMENT ADVISER FEE
<S> <C>
JANUS ASPEN SERIES CAPITAL APPRECIATION Annual rate of 0.75% of the first $300
PORTFOLIO million, 0.70% of the next $200 million,
0.65% over $500 million of the
portfolio's average daily net assets.*
</TABLE>
12. THE TABLE ON PAGE 27 IS AMENDED BY DELETING THE REFERENCE TO THE
SUB-INVESTMENT ADVISERS LISTED UNDER FIDELITY VARIABLE INSURANCE PRODUCTS
FUND -- GROWTH PORTFOLIO.
13. THE PROSPECTUS IS AMENDED TO CHANGE EVERY REFERENCE OF MORGAN STANLEY
UNIVERSAL FUNDS, INC. TO MORGAN STANLEY DEAN WITTER UNIVERSAL FUNDS, INC.
Form No. 14352 SL (12/99) Registration No. 333-06071
<PAGE> 4
The financial statements that follow supplement the Financial Statements
and Notes to Financial Statements found beginning on page F-1 of the Flexible
Premium Variable Universal Life Insurance Policy Prospectus Portfolio dated
October 11, 1999.
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
With respect to MONY America Variable Account L:
Statements of assets and liabilities as of September 30,
1999 (unaudited)....................................... F-2
Statements of operations for the periods ended September
30, 1999 (unaudited)................................... F-6
Statements of changes in net assets for the periods ended
September 30, 1999 (unaudited) and December 31, 1998... F-10
Notes to financial statements (unaudited)................. F-14
With respect to MONY Life Insurance Company of America:
Unaudited interim condensed balance sheets as of September
30, 1999 and December 31, 1998......................... F-17
Unaudited interim condensed statements of income and
comprehensive income for the three-month periods ended
September 30, 1999 and 1998............................ F-18
Unaudited interim condensed statements of income and
comprehensive income for the nine-month periods ended
September 30, 1999 and 1998............................ F-19
Unaudited interim condensed statement of changes in
shareholder's equity for the nine-month period ended
September 30, 1999..................................... F-20
Unaudited interim condensed statements of cash flows for
the nine-month periods ended September 30, 1999 and
1998................................................... F-21
Notes to unaudited interim condensed financial
statements............................................. F-22
</TABLE>
F-1
<PAGE> 5
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
----------------------------------------------------
MONY SERIES FUND, INC.
----------------------------------------------------
MONEY INTERMEDIATE LONG TERM GOVERNMENT
MARKET TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)......................... $1,371,454 $830,155 $18,972,365 $1,478,479
========== ======== =========== ==========
Investments in MONY Series Fund, Inc. at net asset
value (Note 2)..................................... $1,371,454 $805,709 $17,041,424 $1,463,990
Amount due from MONY America......................... 0 25 0 0
Amount due from MONY Series Fund, Inc................ 224,849 0 0 0
---------- -------- ----------- ----------
Total assets....................................... 1,596,303 805,734 17,041,424 1,463,990
---------- -------- ----------- ----------
LIABILITIES
Amount due to MONY America........................... 224,849 0 0 0
Amount due to MONY Series Fund, Inc.................. 0 25 0 0
---------- -------- ----------- ----------
Total liabilities.................................. 224,849 25 0 0
---------- -------- ----------- ----------
Net assets........................................... $1,371,454 $805,709 $17,041,424 $1,463,990
========== ======== =========== ==========
Net assets consist of:
Contractholders' net payments...................... $1,743,274 $813,968 $18,549,928 $1,472,031
Cost of insurance and mortality & expense risk
withdrawals (Note 3)............................ (645,582) (20,673) (572,433) (49,135)
Undistributed net investment income................ 273,762 43,048 1,037,304 55,001
Accumulated net realized gain (loss) on
investments..................................... 0 (6,188) (42,434) 582
Unrealized depreciation of investments............. 0 (24,446) (1,930,941) (14,489)
---------- -------- ----------- ----------
Net assets........................................... $1,371,454 $805,709 $17,041,424 $1,463,990
========== ======== =========== ==========
Number of units outstanding*......................... 123,863 75,426 1,651,269 137,344
---------- -------- ----------- ----------
Net asset value per unit outstanding*................ $ 11.07 $ 10.68 $ 10.32 $ 10.66
========== ======== =========== ==========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-2
<PAGE> 6
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4)............... $1,400,275 $513,694 $381,010 $778,459 $19,026,596
========== ======== ======== ======== ===========
Investments in Enterprise Accumulation
Trust at net asset value (Note 2)........ $1,185,839 $488,925 $310,271 $789,902 $17,684,026
Amount due from Enterprise Accumulation
Trust.................................... 963 0 0 0 0
Amount due from MONY America............... 0 0 0 13 13
---------- -------- -------- -------- -----------
Total assets............................. 1,186,802 488,925 310,271 789,915 17,684,039
---------- -------- -------- -------- -----------
LIABILITIES
Amount due to Enterprise Accumulation
Trust.................................... 0 0 0 13 13
Amount due to MONY America................. 963 0 0 0 0
---------- -------- -------- -------- -----------
Total liabilities........................ 963 0 0 13 13
---------- -------- -------- -------- -----------
Net assets................................. $1,185,839 $488,925 $310,271 $789,902 $17,684,026
========== ======== ======== ======== ===========
Net assets consist of:
Contractholders' net payments............ $1,313,017 $474,644 $293,726 $751,004 $18,483,118
Cost of insurance and mortality & expense
risk withdrawals (Note 3)............. (38,886) (25,024) (42,313) (17,451) (597,396)
Undistributed net investment income...... 111,969 80,067 142,360 38,121 1,189,309
Accumulated net realized gain (loss) on
investments........................... 14,175 (15,993) (12,763) 6,785 (48,435)
Unrealized appreciation (depreciation) of
investments........................... (214,436) (24,769) (70,739) 11,443 (1,342,570)
---------- -------- -------- -------- -----------
Net assets................................. $1,185,839 $488,925 $310,271 $789,902 $17,684,026
========== ======== ======== ======== ===========
Number of units outstanding*............... 103,231 35,689 27,239 70,406 1,606,388
---------- -------- -------- -------- -----------
Net asset value per unit outstanding*...... $ 11.49 $ 13.70 $ 11.39 $ 11.22 $ 11.01
========== ======== ======== ======== ===========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-3
<PAGE> 7
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------------------
DREYFUS VAN ECK WORLDWIDE INSURANCE TRUST
----------------------------------------------------- ------------------------------------
SMALL WORLDWIDE
CAPITAL COMPANY STOCK SOCIALLY HARD WORLDWIDE EMERGING
APPRECIATION STOCK INDEX RESPONSIBLE ASSETS BOND MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ---------- ----------- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).... $1,765,848 $525,923 $24,795,952 $67,417 $2,569 $35,487 $56,918
========== ======== =========== ======= ====== ======= =======
Investments in Dreyfus at net
asset value (Note 2).......... $1,740,878 $511,981 $25,019,597 $67,417 $ 0 $ 0 $ 0
Investments in Van Eck Worldwide
Insurance Trust at net asset
value (Note 2)................ 0 0 0 0 2,629 34,550 50,389
Amount due from MONY America.... 688 0 90,927 67,417 0 0 0
---------- -------- ----------- ------- ------ ------- -------
Total assets.................. 1,741,566 511,981 25,110,524 134,834 2,629 34,550 50,389
---------- -------- ----------- ------- ------ ------- -------
LIABILITIES
Amount due to Dreyfus........... 688 0 90,927 67,417 0 0 0
---------- -------- ----------- ------- ------ ------- -------
Total liabilities............. 688 0 90,927 67,417 0 0 0
---------- -------- ----------- ------- ------ ------- -------
Net assets...................... $1,740,878 $511,981 $25,019,597 $67,417 $2,629 $34,550 $50,389
========== ======== =========== ======= ====== ======= =======
Net assets consist of:
Contractholders' net
payments.................... $1,756,990 $553,179 $24,765,013 $67,417 $2,677 $35,579 $58,480
Cost of insurance and
mortality & expense risk
withdrawals (Note 3)........ (53,232) (23,656) (533,323) 0 (100) (1,265) (3,554)
Undistributed net investment
income...................... 4,060 1,046 258,264 0 3 1,150 197
Accumulated net realized gain
(loss) on investments....... 58,030 (4,646) 305,998 0 (11) 23 1,795
Unrealized appreciation
(depreciation) of
investments................. (24,970) (13,942) 223,645 0 60 (937) (6,529)
---------- -------- ----------- ------- ------ ------- -------
Net assets...................... $1,740,878 $511,981 $25,019,597 $67,417 $2,629 $34,550 $50,389
========== ======== =========== ======= ====== ======= =======
Number of units outstanding*.... 130,557 58,967 1,781,933 6,742 271 3,302 8,510
---------- -------- ----------- ------- ------ ------- -------
Net asset value per unit
outstanding*.................. $ 13.33 $ 8.68 $ 14.04 $ 10.00 $ 9.70 $ 10.46 $ 5.92
========== ======== =========== ======= ====== ======= =======
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-4
<PAGE> 8
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
--------------------------------------------------------------------------------------
T. ROWE PRICE
--------------------------------------------------------------------------------------
EQUITY PRIME INTERNATIONAL LIMITED NEW AMERICA PERSONAL STRATEGY
INCOME RESERVE STOCK TERM GROWTH BALANCE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ------------- ---------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at cost (Note 4).......... $653,984 $100,171 $ 98,193 $ 907 $359,890 $299,502
======== ======== ======== ====== ======== ========
Investments in T. Rowe Price at net
asset value (Note 2)................ $631,439 $100,171 $102,648 $ 879 $346,266 $294,250
Amount due from T. Rowe Price......... 0 0 713 0 0 0
Amount due from MONY America.......... 25 0 0 0 67,417 0
-------- -------- -------- ------ -------- --------
Total assets........................ 631,464 100,171 103,361 879 413,683 294,250
-------- -------- -------- ------ -------- --------
LIABILITIES
Amount due to T. Rowe Price........... 25 0 0 0 67,417 0
Amount due to MONY America............ 0 0 713 0 0 0
-------- -------- -------- ------ -------- --------
Total liabilities................... 25 0 713 0 67,417 0
-------- -------- -------- ------ -------- --------
Net assets............................ $631,439 $100,171 $102,648 $ 879 $346,266 $294,250
======== ======== ======== ====== ======== ========
Net assets consist of:
Contractholders' net payments....... $665,508 $ 98,479 $101,234 $ 912 $366,752 $293,063
Cost of insurance and mortality &
expense risk withdrawals (Note
3)................................ (22,076) (1,132) (3,810) (37) (9,562) (4,609)
Undistributed net investment
income............................ 8,440 2,824 235 33 953 11,085
Accumulated net realized gain (loss)
on investments.................... 2,112 0 534 (1) 1,747 (37)
Unrealized appreciation
(depreciation) of investments..... (22,545) 0 4,455 (28) (13,624) (5,252)
-------- -------- -------- ------ -------- --------
Net assets............................ $631,439 $100,171 $102,648 $ 879 $346,266 $294,250
======== ======== ======== ====== ======== ========
Number of units outstanding*.......... 60,343 9,716 9,057 88 31,516 27,719
-------- -------- -------- ------ -------- --------
Net asset value per unit
outstanding*........................ $ 10.46 $ 10.31 $ 11.33 $10.04 $ 10.99 $ 10.62
======== ======== ======== ====== ======== ========
</TABLE>
- ---------------
* Units outstanding have been rounded for presentation purposes.
See notes to financial statements.
F-5
<PAGE> 9
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-----------------------------------------------------
MONY SERIES FUND, INC.
-----------------------------------------------------
MONEY INTERMEDIATE LONG TERM GOVERNMENT
MARKET TERM BOND BOND SECURITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ------------ ---------- ----------
<S> <C> <C> <C> <C>
Dividend income........................................ $ 210,953 $ 35,405 $1,028,956 $ 36,509
------------ --------- ---------- ---------
Realized and unrealized gain (loss) on investments
(Note 2):
Proceeds from sales.................................. 74,425,259 171,630 848,059 125,841
Cost of shares sold.................................. (74,425,259) (177,762) (890,563) (125,794)
------------ --------- ---------- ---------
Net realized gain (loss) on investments................ 0 (6,132) (42,504) 47
Net decrease in unrealized appreciation of
investments.......................................... 0 (29,901) (1,942,091) (27,818)
------------ --------- ---------- ---------
Net realized and unrealized loss on investments........ 0 (36,033) (1,984,595) (27,771)
------------ --------- ---------- ---------
Net increase (decrease) in net assets resulting from
operations........................................... $ 210,953 $ (628) $ (955,639) $ 8,738
============ ========= ========== =========
</TABLE>
See notes to financial statements.
F-6
<PAGE> 10
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------
INTERNATIONAL HIGH YIELD
EQUITY SMALL CAP MANAGED GROWTH BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ---------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Dividend income................................ $ 110,007 $ 35,776 $ 56,019 $ 23,845 $ 1,157,747
--------- --------- --------- -------- -----------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales.......................... 130,069 474,587 967,078 64,754 1,088,427
Cost of shares sold.......................... (122,176) (492,001) (980,947) (58,223) (1,136,517)
--------- --------- --------- -------- -----------
Net realized gain (loss) on investments........ 7,893 (17,414) (13,869) 6,531 (48,090)
Net increase (decrease) in unrealized
appreciation of investments.................. (214,674) (642) 3,206 8,620 (1,315,710)
--------- --------- --------- -------- -----------
Net realized and unrealized gain (loss) on
investments.................................. (206,781) (18,056) (10,663) 15,151 (1,363,800)
--------- --------- --------- -------- -----------
Net increase (decrease) in net assets resulting
from operations.............................. $ (96,774) $ 17,720 $ 45,356 $ 38,996 $ (206,053)
========= ========= ========= ======== ===========
</TABLE>
See notes to financial statements.
F-7
<PAGE> 11
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------
DREYFUS
-------------------------------------------------------------
SMALL
CAPITAL COMPANY STOCK SOCIALLY
APPRECIATION STOCK INDEX RESPONSIBLE
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------- ------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED FOR
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1999 1999 1999 1999*
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Dividend income....................... $ 70 $ 0 $ 218,126 $0
--------- -------- ---------- --
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................. 220,768 32,147 1,146,684 0
Cost of shares sold................. (164,784) (35,672) (865,920) 0
--------- -------- ---------- --
Net realized gain (loss) on
investments......................... 55,984 (3,525) 280,764 0
Net increase (decrease) in unrealized
appreciation of investments......... (92,118) (19,871) (408,692) 0
--------- -------- ---------- --
Net realized and unrealized gain
(loss) on investments............... (36,134) (23,396) (127,928) 0
--------- -------- ---------- --
Net increase (decrease) in net assets
resulting from operations........... $ (36,064) $(23,396) $ 90,198 $0
========= ======== ========== ==
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------
VAN ECK WORLDWIDE INSURANCE TRUST
---------------------------------------------
HARD WORLDWIDE WORLDWIDE
ASSETS BOND EMERGING
SUBACCOUNT SUBACCOUNT MARKETS
------------- ------------- -------------
FOR THE NINE FOR THE NINE FOR THE NINE
MONTHS ENDED MONTHS ENDED MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1999 1999 1999
------------- ------------- -------------
<S> <C> <C> <C>
Dividend income....................... $ 3 $ 1,150 $ 0
----- ------- --------
Realized and unrealized gain (loss) on
investments (Note 2):
Proceeds from sales................. 106 1,234 42,763
Cost of shares sold................. (112) (1,241) (36,462)
----- ------- --------
Net realized gain (loss) on
investments......................... (6) (7) 6,301
Net increase (decrease) in unrealized
appreciation of investments......... 85 (2,401) (947)
----- ------- --------
Net realized and unrealized gain
(loss) on investments............... 79 (2,408) 5,354
----- ------- --------
Net increase (decrease) in net assets
resulting from operations........... $ 82 $(1,258) $ 5,354
===== ======= ========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
F-8
<PAGE> 12
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
--------------------------------------------------
T. ROWE PRICE
--------------------------------------------------
EQUITY PRIME INTERNATIONAL
INCOME RESERVE STOCK
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------------ -------------
FOR THE PERIOD
FOR THE NINE FEBRUARY 1, 1999* FOR THE NINE
MONTHS ENDED THROUGH MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1999 1999 1999
------------- ------------------ -------------
<S> <C> <C> <C>
Dividend income................... $ 6,797 $ 2,824 $ 0
-------- ------- -------
Realized and unrealized gain
(loss) on investments (Note 2):
Proceeds from sales............. 39,086 6,041 6,577
Cost of shares sold............. (36,986) (6,041) (6,042)
-------- ------- -------
Net realized gain (loss) on
investments..................... 2,100 0 535
Net increase (decrease) in
unrealized appreciation of
investments..................... (21,441) 0 3,898
-------- ------- -------
Net realized and unrealized gain
(loss) on investments........... (19,341) 0 4,433
-------- ------- -------
Net increase (decrease) in net
assets resulting from
operations...................... $(12,544) $ 2,824 $ 4,433
======== ======= =======
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-------------------------------------------------
T. ROWE PRICE
-------------------------------------------------
PERSONAL
LIMITED TERM NEW AMERICA STRATEGY
BOND GROWTH BALANCE
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------- ------------- -------------
FOR THE PERIOD
FEBRUARY 1, 1999* FOR THE NINE FOR THE NINE
THROUGH MONTHS ENDED MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1999 1999 1999
----------------- ------------- -------------
<S> <C> <C> <C>
Dividend income................... $ 33 $ 0 $ 10,713
---- -------- --------
Realized and unrealized gain
(loss) on investments (Note 2):
Proceeds from sales............. 68 16,187 10,615
Cost of shares sold............. (69) (14,450) (10,655)
---- -------- --------
Net realized gain (loss) on
investments..................... (1) 1,737 (40)
Net increase (decrease) in
unrealized appreciation of
investments..................... (28) (17,846) (5,179)
---- -------- --------
Net realized and unrealized gain
(loss) on investments........... (29) (16,109) (5,219)
---- -------- --------
Net increase (decrease) in net
assets resulting from
operations...................... $ 4 $(16,109) $ 5,494
==== ======== ========
</TABLE>
- ---------------
* Commencement of operations.
See notes to financial statements.
F-9
<PAGE> 13
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
---------------------------------------------------------------------------------
MONY SERIES FUND, INC.
---------------------------------------------------------------------------------
MONEY INTERMEDIATE LONG TERM
MARKET TERM BOND BOND
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------------- -------------
FOR THE NINE FOR THE YEAR FOR THE NINE FOR THE PERIOD FOR THE NINE
MONTHS ENDED ENDED MONTHS ENDED JANUARY 23, 1998** MONTHS ENDED
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, THROUGH SEPTEMBER 30,
1999 1998 1999 DECEMBER 31, 1998 1999
------------- ------------ ------------- ------------------ -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
From operations:
Net investment income.......... $ 210,953 $ 49,821 $ 35,405 $ 7,643 $ 1,028,956
Net realized gain (loss) on
investments.................. 0 0 (6,132) (56) (42,504)
Net increase (decrease) in
unrealized appreciation of
investments.................. 0 0 (29,901) 5,455 (1,942,091)
------------ ----------- --------- -------- -----------
Net increase (decrease) in net
assets resulting from
operations..................... 210,953 49,821 (628) 13,042 (955,639)
------------ ----------- --------- -------- -----------
From unit transactions:
Net proceeds from the issuance
of units..................... 59,111,307 6,078,380 669,157 296,772 18,351,468
Net asset value of units
redeemed or used to meet
contract obligations......... (60,636,685) (4,286,177) (167,353) (5,281) (691,560)
------------ ----------- --------- -------- -----------
Net increase (decrease) from unit
transactions................... (1,525,378) 1,792,203 501,804 291,491 17,659,908
------------ ----------- --------- -------- -----------
Net increase (decrease) in net
assets......................... (1,314,425) 1,842,024 501,176 304,533 16,704,269
Net assets beginning of period... 2,685,879 843,855 304,533 0 337,155
------------ ----------- --------- -------- -----------
Net assets end of period*........ $ 1,371,454 $ 2,685,879 $ 805,709 $304,533 $17,041,424
============ =========== ========= ======== ===========
Units outstanding beginning of
period......................... 251,238 83,085 28,549 0 30,651
Units issued during the period... 6,724,193 494,235 62,989 29,060 1,700,324
Units redeemed during the
period......................... (6,851,568) (326,082) (16,112) (511) (79,706)
------------ ----------- --------- -------- -----------
Units outstanding end of
period......................... 123,863 251,238 75,426 28,549 1,651,269
============ =========== ========= ======== ===========
- ---------------
* Includes undistributed net
investment income of: $ 273,762 $ 62,809 $ 43,048 $ 7,643 $ 1,037,304
** Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-------------------------------------------------------
MONY SERIES FUND, INC.
-------------------------------------------------------
LONG TERM GOVERNMENT
BOND SECURITIES
SUBACCOUNT SUBACCOUNT
------------------ ----------------------------------
FOR THE PERIOD FOR THE NINE FOR THE PERIOD
JANUARY 23, 1998** MONTHS ENDED FEBRUARY 9, 1998**
THROUGH SEPTEMBER 30, THROUGH
DECEMBER 31, 1998 1999 DECEMBER 31, 1998
------------------ ------------- ------------------
(UNAUDITED)
<S> <C> <C> <C>
From operations:
Net investment income.......... $ 8,348 $ 36,509 $ 18,492
Net realized gain (loss) on
investments.................. 70 47 535
Net increase (decrease) in
unrealized appreciation of
investments.................. 11,150 (27,818) 13,329
-------- ---------- --------
Net increase (decrease) in net
assets resulting from
operations..................... 19,568 8,738 32,356
-------- ---------- --------
From unit transactions:
Net proceeds from the issuance
of units..................... 323,690 613,448 886,032
Net asset value of units
redeemed or used to meet
contract obligations......... (6,103) (34,748) (41,836)
-------- ---------- --------
Net increase (decrease) from unit
transactions................... 317,587 578,700 844,196
-------- ---------- --------
Net increase (decrease) in net
assets......................... 337,155 587,438 876,552
Net assets beginning of period... 0 876,552 0
-------- ---------- --------
Net assets end of period*........ $337,155 $1,463,990 $876,552
======== ========== ========
Units outstanding beginning of
period......................... 0 82,700 0
Units issued during the period... 31,230 61,567 86,711
Units redeemed during the
period......................... (579) (6,923) (4,011)
-------- ---------- --------
Units outstanding end of
period......................... 30,651 137,344 82,700
======== ========== ========
- ---------------
* Includes undistributed net
investment income of: $ 8,348 $ 55,001 $ 18,492
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-10
<PAGE> 14
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
------------------------------------------------------------------------------------------
EQUITY SMALL CAP MANAGED
SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------------------- ---------------------------- ----------------------------
FOR THE NINE FOR THE YEAR FOR THE NINE FOR THE YEAR FOR THE NINE FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED MONTHS ENDED ENDED
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------- ------------ ------------- ------------ ------------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income....... $ 110,007 $ 1,531 $ 35,776 $ 26,454 $ 56,019 $ 67,233
Net realized gain (loss) on
investments............... 7,893 6,241 (17,414) 1,253 (13,869) 966
Net increase (decrease) in
unrealized appreciation of
investments............... (214,674) (12) (642) (13,120) 3,206 (57,275)
---------- -------- --------- -------- -------- --------
Net increase (decrease) in net
assets resulting from
operations.................. (96,774) 7,760 17,720 14,587 45,356 10,924
---------- -------- --------- -------- -------- --------
From unit transactions:
Net proceeds from the
issuance of units......... 1,291,198 59,447 443,422 230,882 267,506 442,750
Net asset value of units
redeemed or used to meet
contract obligations...... (42,481) (46,311) (403,169) (24,242) (854,906) (22,989)
---------- -------- --------- -------- -------- --------
Net increase (decrease) from
unit transactions........... 1,248,717 13,136 40,253 206,640 (587,400) 419,761
---------- -------- --------- -------- -------- --------
Net increase (decrease) in net
assets...................... 1,151,943 20,896 57,973 221,227 (542,044) 430,685
Net assets beginning of
period...................... 33,896 13,000 430,952 209,725 852,315 421,630
---------- -------- --------- -------- -------- --------
Net assets end of period*..... $1,185,839 $ 33,896 $ 488,925 $430,952 $310,271 $852,315
========== ======== ========= ======== ======== ========
Units outstanding beginning of
period...................... 2,848 1,232 34,921 18,628 75,641 40,391
Units issued during the
period...................... 108,220 5,434 35,289 18,280 22,846 37,287
Units redeemed during the
period...................... (7,837) (3,818) (34,521) (1,987) (71,248) (2,037)
---------- -------- --------- -------- -------- --------
Units outstanding end of
period...................... 103,231 2,848 35,689 34,921 27,239 75,641
========== ======== ========= ======== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 111,969 $ 1,962 $ 80,067 $ 44,291 $142,360 $ 86,341
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-----------------------------------------------------------
ENTERPRISE ACCUMULATION TRUST
-----------------------------------------------------------
INTERNATIONAL HIGH YIELD
GROWTH BOND
SUBACCOUNT SUBACCOUNT
---------------------------- ----------------------------
FOR THE NINE FOR THE YEAR FOR THE NINE FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31,
1999 1998 1999 1998
------------- ------------ ------------- ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income....... $ 23,845 $ 11,028 $ 1,157,747 $ 29,756
Net realized gain (loss) on
investments............... 6,531 314 (48,090) (362)
Net increase (decrease) in
unrealized appreciation of
investments............... 8,620 5,752 (1,315,710) (26,236)
-------- -------- ----------- --------
Net increase (decrease) in net
assets resulting from
operations.................. 38,996 17,094 (206,053) 3,158
-------- -------- ----------- --------
From unit transactions:
Net proceeds from the
issuance of units......... 538,282 120,360 18,400,261 232,444
Net asset value of units
redeemed or used to meet
contract obligations...... (15,896) (18,780) (889,894) (12,715)
-------- -------- ----------- --------
Net increase (decrease) from
unit transactions........... 522,386 101,580 17,510,367 219,729
-------- -------- ----------- --------
Net increase (decrease) in net
assets...................... 561,382 118,674 17,304,314 222,887
Net assets beginning of
period...................... 228,520 109,846 379,712 156,825
-------- -------- ----------- --------
Net assets end of period*..... $789,902 $228,520 $17,684,026 $379,712
======== ======== =========== ========
Units outstanding beginning of
period...................... 21,906 12,091 34,788 14,882
Units issued during the
period...................... 51,385 11,665 1,664,543 21,095
Units redeemed during the
period...................... (2,885) (1,850) (92,943) (1,189)
-------- -------- ----------- --------
Units outstanding end of
period...................... 70,406 21,906 1,606,388 34,788
======== ======== =========== ========
- ---------------
* Includes undistributed net
investment income of: $ 38,121 $ 14,276 $ 1,189,309 $ 31,562
</TABLE>
See notes to financial statements.
F-11
<PAGE> 15
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-------------------------------------------------------------
DREYFUS
-------------------------------------------------------------
CAPITAL SMALL COMPANY
APPRECIATION STOCK
SUBACCOUNT SUBACCOUNT
---------------------------- ------------------------------
FOR THE PERIOD
FEBRUARY 13,
FOR THE NINE FOR THE YEAR FOR THE NINE 1998**
MONTHS ENDED ENDED MONTHS ENDED THROUGH
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31,
1999 1998 1999 1998
------------- ------------ ------------- --------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.............. $ 70 $ 2,695 $ 0 $ 1,046
Net realized gain (loss) on
investments...................... 55,984 2,055 (3,525) (1,121)
Net increase (decrease) in
unrealized appreciation of
investments...................... (92,118) 68,575 (19,871) 5,929
---------- -------- -------- --------
Net increase (decrease) in net
assets resulting from operations... (36,064) 73,325 (23,396) 5,854
---------- -------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units............................ 1,402,938 265,531 255,076 296,497
Net asset value of units redeemed
or used to meet contract
obligations...................... (106,421) (14,387) (15,378) (6,672)
---------- -------- -------- --------
Net increase from unit
transactions....................... 1,296,517 251,144 239,698 289,825
---------- -------- -------- --------
Net increase in net assets.......... 1,260,453 324,469 216,302 295,679
Net assets beginning of period...... 480,425 155,956 295,679 0
---------- -------- -------- --------
Net assets end of period*........... $1,740,878 $480,425 $511,981 $295,679
========== ======== ======== ========
Units outstanding beginning of
period............................. 36,191 15,519 32,362 0
Units issued during the period...... 107,122 22,391 29,743 33,108
Units redeemed during the period.... (12,756) (1,719) (3,138) (746)
---------- -------- -------- --------
Units outstanding end of period..... 130,557 36,191 58,967 32,362
========== ======== ======== ========
- ---------------
* Includes undistributed net
investment income of: $ 4,060 $ 3,990 $ 1,046 $ 1,046
** Commencement of operations.
</TABLE>
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-----------------------------------------------
DREYFUS
-----------------------------------------------
STOCK SOCIALLY
INDEX RESPONSIBLE
SUBACCOUNT SUBACCOUNT
---------------------------- -------------
FOR THE NINE FOR THE YEAR
MONTHS ENDED ENDED FOR
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30,
1999 1998 1999**
------------- ------------ -------------
(UNAUDITED) (UNAUDITED)
<C> <C> <C>
From operations:
Net investment income.............. $ 218,126 $ 39,642 $ 0
Net realized gain (loss) on
investments...................... 280,764 25,220 0
Net increase (decrease) in
unrealized appreciation of
investments...................... (408,692) 632,283 0
----------- ---------- -------
Net increase (decrease) in net
assets resulting from operations... 90,198 697,145 0
----------- ---------- -------
From unit transactions:
Net proceeds from the issuance of
units............................ 21,550,871 3,380,123 67,417
Net asset value of units redeemed
or used to meet contract
obligations...................... (524,022) (187,687) 0
----------- ---------- -------
Net increase from unit
transactions....................... 21,026,849 3,192,436 67,417
----------- ---------- -------
Net increase in net assets.......... 21,117,047 3,889,581 67,417
Net assets beginning of period...... 3,902,550 12,969 0
----------- ---------- -------
Net assets end of period*........... $25,019,597 $3,902,550 $67,417
=========== ========== =======
Units outstanding beginning of
period............................. 291,990 1,244 0
Units issued during the period...... 1,550,122 306,624 6,742
Units redeemed during the period.... (60,179) (15,878) 0
----------- ---------- -------
Units outstanding end of period..... 1,781,933 291,990 6,742
=========== ========== =======
- ---------------
* Includes undistributed net
investment income of: $ 258,264 $ 40,138 $ 0
** Commencement of operations.
</TABLE>
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
----------------------------------------------------------------------------------------------
VAN ECK WORLDWIDE INSURANCE TRUST
----------------------------------------------------------------------------------------------
HARD WORLDWIDE WORLDWIDE
ASSETS BOND EMERGING MARKETS
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------------------ ------------------------------ ----------------------------
FOR THE PERIOD FOR THE PERIOD
JUNE 15, FEBRUARY 13,
FOR THE NINE 1998** FOR THE NINE 1998** FOR THE NINE FOR THE YEAR
MONTHS ENDED THROUGH MONTHS ENDED THROUGH MONTHS ENDED ENDED
SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31, SEPTEMBER 30, DECEMBER 31,
1999 1998 1999 1998 1999 1998
------------- -------------- ------------- -------------- ------------- ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<C> <C> <C> <C> <C> <C>
From operations:
Net investment income.............. $ 3 $ 0 $ 1,150 $ 0 $ 0 $ 197
Net realized gain (loss) on
investments...................... (6) (5) (7) 30 6,301 (4,445)
Net increase (decrease) in
unrealized appreciation of
investments...................... 85 (25) (2,401) 1,464 (947) (1,662)
------ ---- ------- ------- ------- -------
Net increase (decrease) in net
assets resulting from operations... 82 (30) (1,258) 1,494 5,354 (5,910)
------ ---- ------- ------- ------- -------
From unit transactions:
Net proceeds from the issuance of
units............................ 2,439 249 15,886 19,806 27,878 22,510
Net asset value of units redeemed
or used to meet contract
obligations...................... (103) (8) (897) (481) (8,326) (3,996)
------ ---- ------- ------- ------- -------
Net increase from unit
transactions....................... 2,336 241 14,989 19,325 19,552 18,514
------ ---- ------- ------- ------- -------
Net increase in net assets.......... 2,418 211 13,731 20,819 24,906 12,604
Net assets beginning of period...... 211 0 20,819 25,483 12,879
------ ---- ------- ------- ------- -------
Net assets end of period*........... $2,629 $211 $34,550 $20,819 $50,389 $25,483
====== ==== ======= ======= ======= =======
Units outstanding beginning of
period............................. 26 0 1,873 0 5,495 1,829
Units issued during the period...... 256 27 1,546 1,919 4,585 4,961
Units redeemed during the period.... (11) (1) (117) (46) (1,570) (1,295)
------ ---- ------- ------- ------- -------
Units outstanding end of period..... 271 26 3,302 1,873 8,510 5,495
====== ==== ======= ======= ======= =======
- ---------------
* Includes undistributed net
investment income of: $ 3 $ 0 $ 1,150 $ 0 $ 197 $ 197
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-12
<PAGE> 16
MONY AMERICA
VARIABLE ACCOUNT L
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------
T. ROWE PRICE
------------------------------------------------------------------------
EQUITY PRIME INTERNATIONAL
INCOME RESERVE STOCK
SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------------------------------- ------------------ -------------
FOR THE PERIOD
FOR THE NINE FOR THE PERIOD FEBRUARY 1, 1999** FOR THE NINE
MONTHS ENDED NOVEMBER 19, 1998** THROUGH MONTHS ENDED
SEPTEMBER 30, THROUGH SEPTEMBER 30, SEPTEMBER 30,
1999 DECEMBER 31, 1998 1999 1999
------------- ------------------- ------------------ -------------
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.................... $ 6,797 $ 1,643 $ 2,824 $ 0
Net realized gain (loss) on
investments............................ 2,100 12 0 535
Net increase (decrease) in unrealized
appreciation of investments............ (21,441) (1,104) 0 3,898
-------- ------- -------- --------
Net increase in net assets resulting from
operations............................... (12,544) 551 2,824 4,433
-------- ------- -------- --------
From unit transactions:
Net proceeds from the issuance of
units.................................. 631,098 49,656 103,138 88,616
Net asset value of units redeemed or used
to meet contract obligations........... (36,499) (823) (5,791) (5,450)
-------- ------- -------- --------
Net increase from unit transactions....... 594,599 48,833 97,347 83,166
-------- ------- -------- --------
Net increase in net assets................ 582,055 49,384 100,171 87,599
Net assets beginning of period............ 49,384 0 0 15,049
-------- ------- -------- --------
Net assets end of period*................. $631,439 $49,384 $100,171 $102,648
======== ======= ======== ========
Units outstanding beginning of period..... 4,853 0 0 1,427
Units issued during the period............ 58,883 4,934 10,310 8,153
Units redeemed during the period.......... (3,393) (81) (594) (523)
-------- ------- -------- --------
Units outstanding end of period........... 60,343 4,853 9,716 9,057
======== ======= ======== ========
- ---------------
* Includes undistributed net investment
income of: $ 8,440 $ 1,643 $ 2,824 $ 235
** Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
------------------------------------------------------------------------------
T. ROWE PRICE
------------------------------------------------------------------------------
INTERNATIONAL
STOCK TERM GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------------- ------------------ -----------------------------------
FOR THE PERIOD
FOR THE PERIOD FEBRUARY 1, 1999** FOR THE NINE FOR THE PERIOD
NOVEMBER 19, 1998** THROUGH MONTHS ENDED NOVEMBER 19, 1998**
THROUGH SEPTEMBER 30, SEPTEMBER 30, THROUGH
DECEMBER 31, 1998 1999 1999 DECEMBER 31, 1998
------------------- ------------------ ------------- -------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
From operations:
Net investment income.................... $ 235 $ 33 $ 0 $ 953
Net realized gain (loss) on
investments............................ (1) (1) 1,737 10
Net increase (decrease) in unrealized
appreciation of investments............ 557 (28) (17,846) 4,222
------- ---- -------- -------
Net increase in net assets resulting from
operations............................... 791 4 (16,109) 5,185
------- ---- -------- -------
From unit transactions:
Net proceeds from the issuance of
units.................................. 14,497 920 328,144 43,761
Net asset value of units redeemed or used
to meet contract obligations........... (239) (45) (13,989) (726)
------- ---- -------- -------
Net increase from unit transactions....... 14,258 875 314,155 43,035
------- ---- -------- -------
Net increase in net assets................ 15,049 879 298,046 48,220
Net assets beginning of period............ 0 0 48,220 0
------- ---- -------- -------
Net assets end of period*................. $15,049 $879 $346,266 $48,220
======= ==== ======== =======
Units outstanding beginning of period..... 0 0 4,282 0
Units issued during the period............ 1,451 94 28,552 4,354
Units redeemed during the period.......... (24) (6) (1,318) (72)
------- ---- -------- -------
Units outstanding end of period........... 1,427 88 31,516 4,282
======= ==== ======== =======
- ---------------
* Includes undistributed net investment
income of: $ 235 $ 33 $ 953 $ 953
** Commencement of operations.
<CAPTION>
CORPORATE SPONSORED VARIABLE UNIVERSAL LIFE
-----------------------------------
T. ROWE PRICE
-----------------------------------
PERSONAL STRATEGY
BALANCE
SUBACCOUNT
-----------------------------------
FOR THE NINE FOR THE PERIOD
MONTHS ENDED NOVEMBER 19, 1998**
SEPTEMBER 30, THROUGH
1999 DECEMBER 31, 1998
------------- -------------------
(UNAUDITED)
<S> <C> <C>
From operations:
Net investment income.................... $ 10,713 $ 372
Net realized gain (loss) on
investments............................ (40) 3
Net increase (decrease) in unrealized
appreciation of investments............ (5,179) (73)
-------- ------
Net increase in net assets resulting from
operations............................... 5,494 302
-------- ------
From unit transactions:
Net proceeds from the issuance of
units.................................. 287,192 8,762
Net asset value of units redeemed or used
to meet contract obligations........... (7,355) (145)
-------- ------
Net increase from unit transactions....... 279,837 8,617
-------- ------
Net increase in net assets................ 285,331 8,919
Net assets beginning of period............ 8,919 0
-------- ------
Net assets end of period*................. $294,250 $8,919
======== ======
Units outstanding beginning of period..... 856 0
Units issued during the period............ 27,707 870
Units redeemed during the period.......... (844) (14)
-------- ------
Units outstanding end of period........... 27,719 856
======== ======
- ---------------
* Includes undistributed net investment
income of: $ 11,085 $ 372
** Commencement of operations.
</TABLE>
See notes to financial statements.
F-13
<PAGE> 17
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. ORGANIZATION AND BUSINESS
MONY America Variable Account L (the "Variable Account") is a separate
investment account established on February 19, 1985 by MONY Life Insurance
Company of America ("MONY America"), under the laws of the State of Arizona.
The Variable Account operates as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"). The Variable Account holds
assets that are segregated from all of MONY America's other assets and, at
present, is used to support Flexible Premium Variable Life Insurance Policies,
which include Variable Life Insurance (Strategist), Variable Universal Life
(MONYEquity Master and MONY Custom Equity Master) and Corporate Sponsored
Variable Universal Life Insurance Policies. These policies are issued by MONY
America, which is a wholly-owned subsidiary of MONY Life Insurance Company
("MONY"). For presentation purposes, the information related only to the
Corporate Sponsored Variable Universal Life Insurance Policies is presented
here.
There are currently twenty-two Corporate Sponsored Variable Universal
Subaccounts within the Variable Account, each invests only in a corresponding
portfolio of the MONY Series Fund, Inc. (the "Fund"), the Enterprise
Accumulation Trust ("Enterprise"), the Dreyfus Investment Fund ("Dreyfus Fund"),
the Dreyfus Stock Index Fund ("Dreyfus Index Fund"), the Van Eck Worldwide
Insurance Trust ("Van Eck Trust"), the T. Rowe Price Equity Series, Inc., the T.
Rowe Price Fixed Income Series, Inc., and the T. Rowe Price International
Series, Inc., (collectively the "Funds"). The subaccounts of the Corporate
Sponsored Variable Universal Life commenced operations during 1997, 1998 and
1999. The Funds are registered under the 1940 Act as open end, diversified,
management investment companies.
A full presentation of the related financial statements and footnotes of
the Funds are contained on pages hereinafter and should be read in conjunction
with these financial statements.
2. SIGNIFICANT ACCOUNTING POLICIES
Investments:
The investment in shares of each of the respective portfolios is stated at
value which is the net asset values of the Funds. Except for the Money Market
Portfolio, net asset values are based upon market valuations of the securities
held in each of the corresponding portfolios of the Funds. For the Money Market
Portfolio, the net asset values are based on amortized cost of the securities
held, which approximates value.
Taxes:
MONY America is currently taxed as a life insurance company and will
include the Variable Account's operations in its tax return. MONY America does
not expect, based on current tax law, to incur any income tax burden upon the
earnings or realized capital gains attributable to the Variable Account. Based
on this expectation, no charges are currently being deducted from the Variable
Account for federal income tax purposes.
3. RELATED PARTY TRANSACTIONS
MONY America is the legal owner of the assets held by the Variable Account.
Policy premiums received from MONY America by the Variable Account
represent gross policy premiums recorded by MONY America less deductions
retained as compensation for certain sales distribution expenses and premium
taxes.
The cost of insurance, administration charges, mortality and expense risk
charge and, if applicable, the cost of any optional benefits added by riders are
deducted on each monthly date from the cash value of the contract to compensate
MONY America. These deductions are treated as contractholder redemptions by the
Variable Account. The amount deducted for the Corporate Sponsored Variable
Universal Life Subaccounts for 1999 aggregated $2,304,815.
As investment adviser to the Fund, MONY America receives amounts paid by
the Fund for those services.
F-14
<PAGE> 18
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. RELATED PARTY TRANSACTIONS (CONTINUED)
Enterprise Capital Management, Inc., a wholly-owned subsidiary of MONY,
acts as investment adviser to Enterprise, and it receives amounts paid by
Enterprise for those services.
4. INVESTMENTS
Investments in the MONY Series Funds, Inc. at cost, at September 30, 1999
consist of the following:
<TABLE>
<CAPTION>
MONEY INTERMEDIATE LONG TERM GOVERNMENT
MARKET TERM BOND BOND SECURITIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
Shares beginning of period:
Shares................................................... 2,685,879 26,879 23,794 78,474
Amount................................................. $ 2,685,879 $ 299,078 $ 326,005 $ 863,223
------------ --------- ----------- ----------
Shares acquired:
Shares................................................. 72,899,881 60,296 1,321,243 63,899
Amount................................................. $ 72,899,881 $ 673,434 $18,507,967 $ 704,541
Shares received for reinvestment of dividends:
Shares................................................. 210,953 3,290 81,212 3,374
Amount................................................. $ 210,953 $ 35,405 $ 1,028,956 $ 36,509
Shares redeemed:
Shares................................................. (74,425,259) (15,931) (64,025) (11,436)
Amount................................................. $(74,425,259) $(177,762) $ (890,563) $ (125,794)
------------ --------- ----------- ----------
Net change:
Shares................................................. (1,314,425) 47,655 1,338,430 55,837
Amount................................................. $ (1,314,425) $ 531,077 $18,646,360 $ 615,256
------------ --------- ----------- ----------
Shares end of period:
Shares................................................. 1,371,454 74,534 1,362,224 134,311
Amount................................................. $ 1,371,454 $ 830,155 $18,972,365 $1,478,479
============ ========= =========== ==========
</TABLE>
Investments in Enterprise Accumulation Trust at cost, at September 30, 1999
consist of the following:
<TABLE>
<CAPTION>
SMALL COMPANY INTERNATIONAL HIGH YIELD
EQUITY VALUE MANAGED GROWTH BOND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ------------- --------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares..................................... 921 15,751 21,014 33,905 70,710
Amount................................... $ 33,658 $ 455,079 $ 926,260 $225,697 $ 406,572
---------- --------- --------- -------- -----------
Shares acquired:
Shares................................... 35,863 17,422 8,947 84,351 3,428,284
Amount................................... $1,378,786 $ 514,840 $ 379,678 $587,140 $18,598,794
Shares received for reinvestment of
dividends:
Shares................................... 3,412 1,271 1,667 3,392 221,891
Amount................................... $ 110,007 $ 35,776 $ 56,019 $ 23,845 $ 1,157,747
Shares redeemed:
Shares................................... (3,414) (17,075) (22,393) (9,286) (205,174)
Amount................................... $ (122,176) $(492,001) $(980,947) $(58,223) $(1,136,517)
---------- --------- --------- -------- -----------
Net change:
Shares................................... 35,861 1,618 (11,779) 78,457 3,445,001
Amount................................... $1,366,617 $ 58,615 $(545,250) $552,762 $18,620,024
---------- --------- --------- -------- -----------
Shares end of period:
Shares................................... 36,782 17,369 9,235 112,362 3,515,711
Amount................................... $1,400,275 $ 513,694 $ 381,010 $778,459 $19,026,596
========== ========= ========= ======== ===========
</TABLE>
F-15
<PAGE> 19
MONY AMERICA
VARIABLE ACCOUNT L
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. INVESTMENTS (CONTINUED)
Investments in Dreyfus and Van Eck Worldwide Insurance Trust at cost, at
September 30, 1999 consist of the following:
<TABLE>
<CAPTION>
DREYFUS VAN ECK WORLDWIDE INSURANCE TRUST
-------------------------------------------------------- ----------------------------------------
CAPITAL SMALL COMPANY STOCK SOCIALLY HARD WORLDWIDE WORLDWIDE
APPRECIATION STOCK INDEX RESPONSIBLE ASSETS BOND EMERGING MARKETS
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------- ----------- ----------- --------- --------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares...................... 13,304 19,594 120,004 0 23 1,695 3,579
Amount.................... $ 413,277 $289,750 $ 3,270,213 $ 0 $ 236 $19,355 $ 31,065
---------- -------- ----------- ------- ------ ------- --------
Shares acquired:
Shares.................... 40,442 18,258 647,987 2,000 234 1,481 6,203
Amount.................... $1,517,285 $271,845 $22,173,533 $67,417 $2,442 $16,223 $ 62,315
Shares received for
reinvestment of dividends:
Shares.................... 2 0 6,324 0 0* 100 0
Amount.................... $ 70 $ 0 $ 218,126 $ 0 $ 3 $ 1,150 $ 0
Shares redeemed:
Shares.................... (5,750) (2,149) (32,554) 0 (10) (112) (4,239)
Amount.................... $ (164,784) $(35,672) $ (865,920) $ 0 $ (112) $(1,241) $(36,462)
---------- -------- ----------- ------- ------ ------- --------
Net change:
Shares.................... 34,694 16,109 621,757 2,000 224 1,469 1,964
Amount.................... $1,352,571 $236,173 $21,525,739 $67,417 $2,333 $16,132 $ 25,853
---------- -------- ----------- ------- ------ ------- --------
Shares end of period:
Shares.................... 47,998 35,703 741,761 2,000 247 3,164 5,543
Amount.................... $1,765,848 $525,923 $24,795,952 $67,417 $2,569 $35,487 $ 56,918
========== ======== =========== ======= ====== ======= ========
</TABLE>
- ---------------
* Less than one share.
Investments in T. Rowe Price at cost, at September 30, 1999 consist of the
following:
<TABLE>
<CAPTION>
EQUITY PRIME INTERNATIONAL LIMITED NEW AMERICA PERSONAL STRATEGY
INCOME RESERVE STOCK TERM GROWTH BALANCE
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- ------------- --------- ----------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Shares beginning of period:
Shares...................................... 2,565 0 1,037 0 1,949 552
Amount.................................... $ 50,488 $ 0 $14,492 $ 0 $ 43,998 $ 8,992
-------- -------- ------- ---- -------- --------
Shares acquired:
Shares.................................... 31,439 103,388 5,971 188 13,038 18,112
Amount.................................... $633,685 $103,388 $89,743 $943 $330,342 $290,452
Shares received for reinvestment of
dividends:
Shares.................................... 340 2,824 0 7 0 674
Amount.................................... $ 6,797 $ 2,824 $ 0 $ 33 $ 0 $ 10,713
Shares redeemed:
Shares.................................... (1,880) (6,041) (432) (14) (643) (655)
Amount.................................... $(36,986) $ (6,041) $(6,042) $(69) $(14,450) $(10,655)
-------- -------- ------- ---- -------- --------
Net change:
Shares.................................... 29,899 100,171 5,539 181 12,395 18,131
Amount.................................... $603,496 $100,171 $83,701 $907 $315,892 $290,510
-------- -------- ------- ---- -------- --------
Shares end of period:
Shares.................................... 32,464 100,171 6,576 181 14,344 18,683
Amount.................................... $653,984 $100,171 $98,193 $907 $359,890 $299,502
======== ======== ======= ==== ======== ========
</TABLE>
F-16
<PAGE> 20
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1999 1998
------------- ------------
($ IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturity securities available-for-sale, at fair
value..................................................... $1,058.4 $1,044.2
Mortgage loans on real estate............................... 167.9 120.1
Policy loans................................................ 56.7 52.1
Real estate held for investment............................. 6.9 8.3
Other invested assets....................................... 2.6 4.7
-------- --------
1,292.5 1,229.4
======== ========
Cash and cash equivalents................................... 48.0 133.4
Accrued investment income................................... 22.1 19.5
Amounts due from reinsurers................................. 18.0 24.4
Deferred policy acquisition costs........................... 374.2 318.6
Other assets................................................ 23.6 15.3
Separate account assets..................................... 4,054.1 4,148.8
-------- --------
Total assets...................................... $5,832.5 $5,889.4
======== ========
LIABILITIES AND SHAREHOLDER'S EQUITY
Future policy benefits...................................... $ 124.4 $ 112.0
Policyholders' account balances............................. 1,166.3 1,187.1
Other policyholders' liabilities............................ 54.8 56.9
Accounts payable and other liabilities...................... 63.9 67.9
Note payable to affiliate (Note 5).......................... 49.5 0.0
Current federal income taxes payable........................ 17.5 13.2
Deferred federal income taxes............................... 10.4 13.7
Separate account liabilities................................ 4,054.1 4,148.8
-------- --------
Total liabilities................................. 5,540.9 5,599.6
Commitments and contingencies (Note 4)
Common stock, $1.00 par value; 5,000,000 shares authorized,
2,500,000 issued and outstanding.......................... 2.5 2.5
Capital in excess of par.................................... 189.7 189.7
Retained earnings........................................... 103.2 89.6
Accumulated other comprehensive (loss) income............... (3.8) 8.0
-------- --------
Total shareholder's equity........................ 291.6 289.8
-------- --------
Total liabilities and shareholder's equity........ $5,832.5 $5,889.4
======== ========
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-17
<PAGE> 21
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $33.7 $29.4
Premiums.................................................... 1.1 0.5
Net investment income....................................... 23.1 23.4
Net realized gains on investments........................... 0.0 1.4
Other income................................................ 1.3 3.0
----- -----
Total revenues.................................... 59.2 57.7
----- -----
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 12.0 6.8
Interest credited to policyholders' account balances........ 15.5 18.5
Amortization of deferred policy acquisition costs........... 12.3 12.0
Other operating costs and expenses.......................... 12.9 17.1
----- -----
Total benefits and expenses....................... 52.7 54.4
----- -----
Income before income taxes.................................. 6.5 3.3
Income tax expense.......................................... 2.3 1.1
----- -----
Net income.................................................. 4.2 2.2
Other comprehensive (loss) income, net...................... (2.3) 3.9
----- -----
Comprehensive income........................................ $ 1.9 $ 6.1
===== =====
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-18
<PAGE> 22
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------ ------
($ IN MILLIONS)
<S> <C> <C>
REVENUES:
Universal life and investment-type product policy fees...... $105.0 $ 89.2
Premiums.................................................... 3.4 1.0
Net investment income....................................... 71.4 71.2
Net realized gains on investments........................... 1.2 4.9
Other income................................................ 4.4 7.0
------ ------
Total revenues.................................... 185.4 173.3
------ ------
BENEFITS AND EXPENSES:
Benefits to policyholders................................... 32.0 23.4
Interest credited to policyholders' account balances........ 48.1 52.0
Amortization of deferred policy acquisition costs........... 32.3 34.5
Other operating costs and expenses.......................... 52.1 53.3
------ ------
Total benefits and expenses....................... 164.5 163.2
------ ------
Income before income taxes.................................. 20.9 10.1
Income tax expense.......................................... 7.3 3.5
------ ------
Net income.................................................. 13.6 6.6
Other comprehensive (loss) income, net...................... (11.8) 4.4
------ ------
Comprehensive income........................................ $ 1.8 $ 11.0
====== ======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-19
<PAGE> 23
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENT
OF CHANGES IN SHAREHOLDER'S EQUITY
NINE-MONTH PERIOD ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
ACCUMULATED
CAPITAL OTHER TOTAL
COMMON IN EXCESS RETAINED COMPREHENSIVE SHAREHOLDER'S
STOCK OF PAR EARNINGS INCOME EQUITY
------ --------- -------- ------------- -------------
($ IN MILLIONS)
<S> <C> <C> <C> <C> <C>
Balance, December 31, 1998............... $2.5 $189.7 $ 89.6 $ 8.0 $289.8
Comprehensive income
Net income............................. 13.6 13.6
Other comprehensive (loss) income:
Unrealized gains on investments, net
of unrealized losses,
reclassification adjustments, and
taxes............................. (11.8) (11.8)
------
Comprehensive income..................... 1.8
---- ------ ------ ------ ------
Balance, September 30, 1999.............. $2.5 $189.7 $103.2 $ (3.8) $291.6
==== ====== ====== ====== ======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-20
<PAGE> 24
MONY LIFE INSURANCE COMPANY OF AMERICA
UNAUDITED INTERIM CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------- -------
($ IN MILLIONS)
<S> <C> <C>
NET CASH USED IN OPERATING ACTIVITIES....................... $ (45.6) $ (35.5)
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales, maturities or repayment of:
Fixed maturities.......................................... 209.9 133.1
Mortgage loans on real estate............................. 15.5 16.3
Real estate............................................... 1.2 14.0
Other invested assets..................................... 3.8 1.5
Acquisitions of investments:
Fixed maturities.......................................... (267.8) (109.2)
Mortgage loans on real estate............................. (63.7) (17.9)
Real estate............................................... (0.3) (0.4)
Other invested assets..................................... (0.7) (4.8)
Policy loans, net......................................... (4.6) (0.7)
Other, net................................................ 0.3 0.2
------- -------
Net cash (used in) provided by investing activities......... (106.4) 32.1
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of note payable.................................... 50.5 0.0
Repayments of debt.......................................... (1.0) 0.0
Receipts from annuity and universal life policies credited
to policyholders' account balances........................ 929.3 641.6
Return of policyholders' account balances on annuity and
universal life policies................................... (912.2) (649.5)
------- -------
Net cash provided by (used in) financing activities......... 66.6 (7.9)
------- -------
Net decrease in cash and cash equivalents................... (85.4) (11.3)
Cash and cash equivalents, beginning of year................ 133.4 46.0
------- -------
Cash and cash equivalents, end of year...................... $ 48.0 $ 34.7
======= =======
</TABLE>
See accompanying notes to unaudited interim condensed financial statements.
F-21
<PAGE> 25
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
1. ORGANIZATION AND DESCRIPTION OF BUSINESS
MONY Life Insurance Company of America (the "Company"), an Arizona stock
life insurance company, is a wholly-owned subsidiary of MONY Life Insurance
Company ("MONY Life"), a stock life insurance company. MONY Life is a
wholly-owned subsidiary of The MONY Group Inc. (the "MONY Group"), a Delaware
Corporation.
The Company's primary business is to provide asset accumulation and life
insurance products to business owners, growing families, and pre-retirees. The
Company's insurance and financial products are marketed and distributed directly
to individuals primarily through MONY Life's career agency sales force. These
products are sold in 49 states (not including New York), the District of
Columbia, the U.S. Virgin Islands and Puerto Rico.
2. BASIS OF PRESENTATION
The accompanying unaudited interim condensed financial statements are
prepared in conformity with generally accepted accounting principles ("GAAP")
which requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. In the opinion of
management, these statements include all adjustments which were normal recurring
adjustments necessary to present fairly the financial position, results of
operations and cash flows for the periods presented. These statements should be
read in conjunction with the financial statements of the Company for the year
ended December 31, 1998 in the Company's 1998 Report on Form 10-K. The results
of operations for the three-month and nine-month periods ended September 30,
1999 are not necessarily indicative of the results to be expected for the full
year.
3. FEDERAL INCOME TAXES
Federal income taxes for interim periods have been computed using an
estimated annual effective tax rate. This rate is revised, if necessary, at the
end of each successive interim period to reflect the current estimate of the
annual effective tax rate.
4. COMMITMENTS AND CONTINGENCIES
In late 1995 and thereafter, a number of purported class actions were
commenced in various state and federal courts against MONY Life and the Company
("the Companies") alleging that the Companies engaged in deceptive sales
practices in connection with the sale of whole and/or universal life insurance
policies from the early 1980s to the mid 1990s. Although the claims asserted in
each case are not identical, they seek substantially the same relief under
essentially the same theories of recovery (i.e. breach of contract, fraud,
negligent misrepresentation, negligent supervision and training, breach of
fiduciary duty, unjust enrichment and/or violation of state insurance and/or
deceptive business practice laws). Plaintiffs in these cases (including the
Goshen case discussed below) seek primary equitable relief (e.g. reformation,
specific performance, mandatory injunctive relief prohibiting the Companies from
canceling policies for failure to make required premium payments, imposition of
a constructive trust and/or creation of a claims resolution facility to
adjudicate any individual issues remaining after resolution of all class-wide
issues) as opposed to compensatory damages, although they seek compensatory
damages in unspecified amounts. The Company has answered the complaints in each
action (except for one action being voluntarily held in abeyance), has denied
any wrongdoing, and has asserted numerous affirmative defenses.
On June 7, 1996, the New York State Supreme Court certified the Goshen
case, being the first of the aforementioned class actions filed, as a nationwide
class consisting of all persons or entities who have, or at the time of the
policy's termination had, an ownership interest in a whole or universal life
insurance policy issued
F-22
<PAGE> 26
MONY LIFE INSURANCE COMPANY OF AMERICA
NOTES TO UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS -- (CONTINUED)
by the Companies and sold on an alleged "vanishing premium" basis during the
period January 1, 1982 to December 31, 1995. On March 27, 1997, the Company
filed a motion to dismiss or, alternatively, for summary judgement on all counts
of the complaint. All of the other putative class actions (with one exception
discussed below) have been consolidated and transferred by the Judicial Panel on
Multidistrict Litigation to the United States District Court for the District of
Massachusetts, or are being voluntarily held in abeyance pending the outcome of
the Goshen case. The Massachusetts District Court in the Multidistrict
Litigation has entered an order essentially holding all of the federal cases in
abeyance pending the action of the Goshen case.
On October 21, 1997, the New York State Supreme Court granted the Company's
motion for summary judgement and dismissed all claims filed in the Goshen case
against the Company on the merits. On March 18, 1999, the order by the New York
State Supreme Court was affirmed by the New York State Appellate Division, First
Department. On June 8, 1999, plaintiffs obtained leave from the New York State
Court of Appeals to appeal the Appellate Division decision. Briefs will be filed
during the summer and early fall, and oral argument before the Court of Appeals
took place on October 14, 1999. All actions before the United States District
Court for the District of Massachusetts are still pending.
In addition, on or about February 25, 1999, a purported class action was
filed against the Company in Kentucky state court covering policyholders who
purchased individual universal life insurance policies from the Company after
January 1, 1988, claiming breach of contract and violations of the Kentucky
Consumer Protection Act. On March 26, 1999, the Company removed that action to
the United States District Court for the Eastern District of Kentucky, and on
August 11, 1999 obtained an order from the Judicial Panel on Multidistrict
Litigation transferring the action to the Multidistrict Litigation in the
District of Massachusetts.
In addition to the matters discussed above, the Company is involved in
various other legal actions and proceedings in connection with its businesses.
The claimants in certain of these actions and proceedings seek damages of
unspecified amounts.
While the outcome of such matters cannot be predicted with certainty, in
the opinion of management, any additional liability beyond that recorded in the
financial statements at September 30, 1999, resulting from the resolution of
these matters will not have a material adverse effect on the Company's financial
position or results of operations.
Insurance companies are subject to assessments up to statutory limits, by
state guaranty funds for losses of policyholders of insolvent insurance
companies. In the opinion of management, such assessments will not have a
material adverse effect on the financial position and the results of operations
of the Company.
At September 30, 1999, the Company had commitments outstanding of $0.9
million for fixed rate agricultural loans with periodic interest rate reset
dates. The initial interest rates on such agricultural loans range from 7.3% to
8.1%. There were no outstanding commitments for private fixed maturity
securities or commercial mortgages as of September 30, 1999.
5. NOTE PAYABLE TO AFFILIATE
On March 5, 1999, the Company borrowed $50.5 million from MONY Benefits
Management Corp. ("MBMC"), an affiliate, in exchange for a note payable in the
same amount. The note bears interest at 6.75% per annum and matures on March 5,
2014. Principal and interest are payable quarterly to MBMC. The carrying value
of the note as of September 30, 1999 is $49.5 million.
6. TERMINATION OF INTERCOMPANY REINSURANCE AGREEMENTS
Effective September 1, 1999, the Company recaptured its reinsurance
agreements with MONY Life for all in force and new business. The Company
simultaneously entered into new reinsurance agreements with third party
reinsurers which reinsured the same block of business as that previously
reinsured by MONY Life. Under the new reinsurance agreements, the Company
increased its retention limits on new business for any one person for individual
products from $0.5 million to $4.0 million and on last survivor products from
$0.5 million to $6.0 million.
F-23
<PAGE> 27
MONY LIFE INSURANCE COMPANY OF AMERICA
ADMINISTRATIVE OFFICES
1740 BROADWAY, NEW YORK, NY 10019
[THE MONY GROUP LOGO]
MONY LIFE INSURANCE COMPANY OF AMERICA AND MONY
SECURITIES CORPORATION ARE MEMBERS OF THE MONY GROUP
- --------------------------------------------------------------------------------
Form No. 14352 SL (12/99)
