Registration No. 333-17671
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
- --------------------------------------------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 4 TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS REGISTERED ON FORM N-8B-2
SEPARATE ACCOUNT FP
of
THE EQUITABLE LIFE ASSURANCE Edward D. Miller, President
SOCIETY OF THE UNITED STATES The Equitable Life Assurance Society of
(Exact Name of Trust) the United States
THE EQUITABLE LIFE ASSURANCE 1290 Avenue of the Americas
SOCIETY OF THE UNITED STATES New York, New York 10104
(Exact Name of Depositor) (Name and Address of Agent for Service)
1290 Avenue of the Americas
New York, New York 10104
(Address of Depositor's Principal
Executive Offices)
---------------------------------------
Telephone Number, Including Area Code: (212) 554-1234
----------------------------------------
Please send copies of all communications to:
BETH N. LOWSON, ESQ. with a copy to:
Counsel Thomas C. Lauerman, Esq.
The Equitable Life Assurance Freedman, Levy, Kroll & Simonds
Society of the United States 1050 Connecticut Avenue, N.W., Suite 825
1290 Avenue of the Americas Washington, D.C. 20036
New York, New York 10104
----------------------------------------
Securities Being Registered: Units of Interest in Separate Account FP
It is proposed that this filing will become effective (check appropriate line):
__X__ immediately upon filing pursuant to paragraph (b) of Rule 485
_____ on (date) pursuant to paragraph (b) of Rule 485
_____ 60 days after filing pursuant to paragraph (a) of Rule 485
_____ on (date) pursuant to paragraph (a) of Rule 485
<PAGE>
NOTE
The Post Effective Amendment No. 4 ("PEA") to the Form S-6 Registration
Statement No. 333-17671 ("Registration Statement") of The Equitable Life
Assurance Society of the United States ("Equitable Life") and its Separate
Account FP is being filed for the purpose of including in this Registration
Statement prospectus supplements to the Champion 2000 prospectus. The
supplements add new variable investment options, update certain other
information, and contain interim financial statements for Equitable Life and
Separate Account FP. Other than as set forth herein, the PEA does not amend or
delete any Champion 2000 Prospectus, any other supplement thereto, or any other
part of the Registration Statement.
<PAGE>
SUBSTITUTION OF NEW PORTFOLIOS OF EQ ADVISORS TRUST
FOR PORTFOLIOS OF THE HUDSON RIVER TRUST
Supplement dated August 30, 1999
to prospectuses dated before May 1, 1999, and Supplemented as of May 1, 1999;
and prospectuses dated May 1, 1999 or later
for all Variable Annuity Contracts and Variable Life Insurance Policies
issued by
The Equitable Life Assurance Society of the United States
- --------------------------------------------------------------------------------
This supplement relates to our prospectuses for VARIABLE ANNUITY CONTRACTS and
VARIABLE LIFE INSURANCE POLICIES.
Currently, the variable investment options invest in Class IA or IB shares of
the corresponding Portfolios of The Hudson River Trust or EQ Advisors Trust.
The Securities and Exchange Commission has published a notice of our filing
of an application for an order approving the Substitution of new Portfolios of
EQ Advisors Trust for Portfolios of The Hudson River Trust. The new Portfolios
that will be available under your contract or policy will replace each of The
Hudson River Trust Portfolios currently available under this contract or policy.
We expect the order to be issued in September 1999. The proposed Substitution is
discussed in the applicable prospectus or supplement dated May 1, 1999 or later.
We plan to effect the Substitution on or about October 1, 1999. At that time,
the assets of each of the Portfolios of The Hudson River Trust will be
transferred to the corresponding new Portfolios of EQ Advisors Trust. Class IA
and Class IB shares of The Hudson River Trust will become Class IA and Class IB
shares of EQ Advisors Trust. At the time the Substitution is effected, the value
of your variable investment options under a contract or policy will be the same
as immediately before the Substitution.
We will send you written confirmation that the Substitution has been completed.
After that, your investment results in any affected variable investment option
will be based on the investment performance of the corresponding EQ Advisors
Trust Portfolio. The Hudson River Trust Portfolios will no longer be available.
The management fees for the new Portfolios will be the same as those for the
corresponding Portfolios of The Hudson River Trust. It is expected that the
other Portfolio expenses may increase marginally by 0.01%.
Of course, you may make transfers among the investment options, as usual. From
now through 30 days after the Substitution, we will waive any applicable
charges.
If you have any questions regarding the Substitution, please communicate with us
directly or contact your registered representative.
Copyright 1999 The Equitable Life Assurance Society of the United States.
All rights reserved.
888-1217
<PAGE>
The Equitable Life Assurance Society [Agent--IF]
Of the United States
Variable Life Insurance Policies
Champion 2000 Incentive Life 2000
IL COLI Special Offer Policy
IL Protector(R) Survivorship Incentive Life
Incentive Life Survivorship 2000
Incentive Life Plus(R)
PROSPECTUS SUPPLEMENT DATED AUGUST 30, 1999
- --------------------------------------------------------------------------------
This supplement updates certain information in the most recent prospectus you
received for your Equitable variable life insurance policy listed above, and in
any prior supplements to that prospectus.*
NEW INVESTMENT OPTIONS. Beginning August 30, 1999, you will have four new
investment options (Funds) available under your policy:
o Capital Guardian Research
o Capital Guardian U.S. Equity
o EQ/Evergreen
o EQ/Evergreen Foundation
See "Investment Portfolios" below, as well as the EQ Advisors Trust supplement
attached to this supplement, for more information.
INVESTMENT PORTFOLIOS. As of August 30, 1999, your policy offers 30 investment
Portfolios, plus a Guaranteed Interest Account. The prospectus or supplement you
received dated May 1, 1999 describes the 26 investment portfolios that were
available on that date. The four new Portfolios that will be available to you
beginning August 30, 1999, are listed in the table below.
In addition to the other charges we make under your policy, you also bear your
proportionate share of all fees and expenses paid by a Portfolio that
corresponds to any variable investment option (Fund) you are using. The tables
below show the fees and expenses estimated to be paid by each new Portfolio for
the year ended December 31, 1999. These fees and expenses are reflected in the
Portfolio's net asset value each day. Therefore, they reduce the investment
return of the Portfolio and of the related variable investment option. Actual
fees and expenses are likely to fluctuate from year to year. All figures are
expressed as an annual percentage of each Portfolio's daily average net assets.
This information supplements the fee and expense information contained in your
May 1, 1999 prospectus or supplement.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
1999 ESTIMATED FEES AND EXPENSES(1)
-------------------------------------------------------------------------------------
FEE WAIVERS
TOTAL AND/OR NET TOTAL
PORTFOLIOS OF MANAGEMENT OTHER ANNUAL EXPENSE ANNUAL
EQ ADVISORS TRUST FEE 12B-1 FEE EXPENSES EXPENSES REIMBURSEMENTS EXPENSES
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Capital Guardian Research 0.65% 0.25% 0.74% 1.64% 0.69% 0.95%
Capital Guardian U.S. Equity 0.65% 0.25% 0.74% 1.64% 0.69% 0.95%
EQ/Evergreen 0.75% 0.25% 0.76% 1.76% 0.71% 1.05%
EQ/Evergreen Foundation 0.63% 0.25% 0.86% 1.74% 0.79% 0.95%
- -------------------
(1) Based on annualized estimates for 1999. Portfolios listed will commence operations on August 30, 1999. The EQ
Advisors Trust's manager has entered into an Expense Limitation Agreement with respect to each Portfolio under
which it has agreed to waive or reduce its fees and to assume other expenses of each of the Portfolios, if
necessary, in an amount that limits each Portfolio's Total Annual Expenses (exclusive of interest, taxes,
brokerage commissions, capitalized expenditures, extraordinary expenses and 12b-1 fees) to not more than the
amounts specified above as Net Total Annual Expenses. See the EQ Advisors Trust prospectus for more information.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
- -------------------
* The dates of such prior prospectuses and supplements are listed for your
information in Appendix B to this supplement. You should keep this
supplement with your prospectus and any previous prospectus supplement. We
will send you another copy of any prospectus supplement. We will send you
another copy of any prospectus or supplement, without charge, on written
request.
Copyright 1999 The Equitable Life Assurance Society of the United States.
All rights reserved. IL Protector(R) and Incentive Life Plus(R)
are registered service marks of The Equitable Life
Assurance Society of the United States.
<PAGE>
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2
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NAME CHANGES. The Equitable Companies Incorporated is planning to change its
name in September 1999 to "AXA Financial, Inc." Equitable Life is a subsidiary
of The Equitable Companies Incorporated. Also, EQ Financial Consultants, Inc.,
currently a subsidiary of Equitable Life, will become AXA Advisors, LLC and will
be an indirect subsidiary of AXA Financial, Inc.
TRUST MANAGEMENT. In September 1999, following state regulatory approvals,
Equitable Life will become the manager of EQ Advisors Trust. Currently, EQ
Financial Consultants, Inc., a wholly owned subsidiary of Equitable Life, is the
manager of EQ Advisors Trust. Equitable Life will take over all of EQ Financial
Consultants' rights and responsibilities with respect to the Trust.
ASSET REBALANCING SERVICE. You may wish us to periodically redistribute the
amounts you have in our variable investment options (Funds) so that the relative
amount of your account value in each variable option is restored to an asset
allocation that you select. You can accomplish this automatically through our
asset rebalancing service. The rebalancing may be on a onetime basis or at
quarterly, semiannual, or annual intervals.
You may specify asset allocation percentages for up to eight variable investment
options. The allocation percentage you specify for each option selected must be
at least 5% (whole percentage only) of the total value you hold under the
variable investment options, and the sum of the percentages must equal 100%. You
may not elect the asset rebalancing service if you already participate in the
dollar cost averaging service (also referred to as the "automatic transfer
service").
You may request the asset rebalancing service at any time. You may change the
allocation instructions or discontinue participation in the asset rebalancing
service at any time.
YEAR 2000 PROGRESS. Equitable Life relies upon various computer systems in order
to administer your policy and operate the policy's investment options. Some of
these systems belong to service providers who are not affiliated with Equitable
Life.
In 1995, Equitable Life began addressing the question of whether its computer
systems would recognize the year 2000 before, on or after January 1, 2000, and
Equitable Life has identified those of its systems critical to business
operations that were not year 2000 compliant. Equitable Life has completed the
work of modifying or replacing non-compliant systems and has confirmed, through
testing, that its systems are year 2000 compliant. Equitable Life has contacted
third-party vendors and service providers to seek confirmation that they are
acting to address the year 2000 issue with the goal of avoiding any material
adverse effect on services provided to policyowners and on operations of the
investment options under Equitable Life policies. All third-party vendors and
service providers considered critical to Equitable Life's business have provided
us confirmation of their year 2000 compliance or a satisfactory plan for
compliance. With respect to vendors and service providers considered
non-critical, we believe that we are on schedule for substantially all such
vendors and service providers to be confirmed by September 30, 1999 as year 2000
compliant or the subject of a satisfactory plan for compliance. If such
confirmation is not received by September 30, 1999, the vendor or service
provider will be replaced, eliminated or be the subject of contingency plans.
Additionally, Equitable Life has supplemented its existing business continuity
and disaster recovery plans to cover certain categories of contingencies that
could arise as a result of year 2000 related failures.
<PAGE>
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3
- --------------------------------------------------------------------------------
There are many risks associated with year 2000 issues, including the risk that
Equitable Life's computer systems will not operate as intended. Additionally,
there can be no assurance that the systems of third parties will be year 2000
compliant. Any significant unresolved difficulty related to the year 2000
compliance initiatives could result in an interruption in, or a failure of,
normal business operations and, accordingly, could have a material adverse
effect on our ability to administer your policy and operate the investment
options.
To the fullest extent permitted by law, the foregoing year 2000 discussion is a
"Year 2000 Readiness Disclosure" within the meaning of The Year 2000 Information
and Readiness Disclosure Act (P.L. 105-271) (1998).
FINANCIAL STATEMENTS. The unaudited financial statements of the Separate Account
and Equitable Life as of June 30, 1999 are contained in Appendix A to this
supplement.
<PAGE>
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
<S> <C>
Unaudited Financial Statements:
Statements of Assets and Liabilities, June 30, 1999.................................................... FSA-2
Statements of Operations for the Six Months Ended June 30, 1999........................................ FSA-5
Statements of Changes in Net Assets for the Six Months Ended June 30, 1999............................. FSA-9
Notes to Financial Statements.......................................................................... FSA-13
<CAPTION>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<S> <C>
Unaudited Consolidated Financial Statements:
Consolidated Balance Sheets, June 30, 1999 and December 31, 1998....................................... F-1
Consolidated Statements of Earnings for the Three and Six Months Ended June 30, 1999 and 1998.......... F-2
Consolidated Statements of Shareholder's Equity for the Six Months Ended June 30, 1999 and 1998........ F-3
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 1999 and 1998.................. F-4
Notes to Consolidated Financial Statements............................................................. F-5
</TABLE>
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
-----------------------------------------------------------
ALLIANCE
ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE
MONEY GOVERNMENT QUALITY HIGH
MARKET SECURITIES BOND YIELD
FUND FUND FUND FUND
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Investments in shares of
the Trusts -- at market
value (Notes 2 and 6)
Cost: $ 278,056,391.......................... $285,346,300
80,360,714.......................... $81,978,699
243,474,163.......................... $241,473,377
183,669,358.......................... $165,804,441
47,399,587..........................
19,227,781..........................
163,606,316..........................
549,290,150..........................
Receivable for Trust shares sold.................... -- -- -- --
Receivable for policy-related
transactions..................................... 7,854,659 -- -- --
------------ ----------- ------------ ------------
Total Assets........................................ 293,200,959 81,978,699 241,473,377 165,804,441
------------ ----------- ------------ ------------
LIABILITIES
Payable for Trust shares purchased.................. 5,929,219 236,600 220,801 55,816
Payable for policy-related
transactions..................................... -- 118,085 162,726 175,412
Amount retained by Equitable Life
in Separate Account
FP (Note 4)...................................... 395,830 489,635 244,055 204,459
------------ ----------- ------------ ------------
Total Liabilities................................... 6,325,049 844,320 627,582 435,687
------------ ----------- ------------ ------------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS.................................. $286,875,910 $81,134,379 $240,845,795 $165,368,754
============ =========== ============ ============
<CAPTION>
EQUITY SERIES:
-----------------------------------------------------------
T. ROWE
PRICE EQ/PUTNAM ALLIANCE ALLIANCE
EQUITY GROWTH & GROWTH & EQUITY
INCOME FUND INCOME INCOME INDEX
FUND VALUE FUND FUND FUND
-------------- ------------- --------------- --------------
<S> <C> <C> <C> <C>
ASSETS
Investments in shares of
the Trusts --
at market value (Notes 2 and 6)
Cost: $ 278,056,391..........................
80,360,714..........................
243,474,163..........................
183,669,358..........................
47,399,587.......................... $54,276,116
19,227,781.......................... $22,114,136
163,606,316.......................... $203,221,590
549,290,150.......................... $736,492,941
Receivable for Trust shares sold.................... -- -- -- --
Receivable for policy-related
transactions..................................... -- -- 65,702 --
----------- ----------- ------------ ------------
Total Assets........................................ 54,276,116 22,114,136 203,287,292 736,492,941
----------- ----------- ------------ ------------
LIABILITIES
Payable for Trust shares purchased.................. -- -- 192,828 92,037
Payable for policy-related
transactions..................................... 32,614 13,766 -- 567,391
Amount retained by Equitable Life
in Separate Account
FP (Note 4)...................................... 45,728 47,549 247,000 256,217
----------- ----------- ------------ ------------
Total Liabilities................................... 78,342 61,315 439,828 915,645
----------- ----------- ------------ ------------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS.................................. $54,197,774 $22,052,821 $202,847,464 $735,577,296
=========== =========== ============ ============
</TABLE>
- -----------------------------------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF ASSETS AND LIABILITIES (CONCLUDED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
EQUITY SERIES:
--------------------------------------------------------------------------
MFS EQ/
MERRILL ALLIANCE GROWTH ALLIANCE
LYNCH BASIC COMMON MFS WITH PREMIER
VALUE EQUITY STOCK RESEARCH INCOME GROWTH
FUND FUND FUND FUND FUND
----------- -------------- ----------- ------- ----------
ASSETS
<S> <C> <C> <C> <C> <C>
Investments in shares
of the Trusts -- at market
value (Notes 2 and 6)
Cost: $ 25,428,532........................... $29,772,098
2,373,726,119........................... $3,411,007,624
35,037,606........................... $41,314,295
3,287........................... $3,361
3,014,607........................... $3,169,780
495,992,664...........................
52,503,391...........................
37,920,867...........................
14,640,855...........................
Receivable for Trust shares sold..................... -- -- -- -- --
Receivable for policy-related
transactions...................................... -- -- -- -- 701
----------- -------------- ----------- ------- ----------
Total Assets......................................... 29,772,098 3,411,007,624 41,314,295 3,361 3,170,481
----------- -------------- ----------- ------- ----------
LIABILITIES
Payable for Trust shares purchased................... -- 718,659 -- -- --
Payable for policy-related
transactions...................................... 31,149 1,293,925 30,141 -- --
Amount retained by Equitable Life
in Separate Account
FP (Note 4)....................................... 46,659 1,399,513 53,756 -- 749
----------- -------------- ----------- ------- ----------
Total Liabilities.................................... 77,808 3,412,097 83,897 -- 749
----------- -------------- ----------- ------- ----------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS................................... $29,694,290 $3,407,595,527 $41,230,398 $ 3,361 $3,169,732
=========== ============== =========== ======= ==========
<CAPTION>
-----------------------------------------------------------
MORGAN
STANLEY
T. ROWE EMERGING
ALLIANCE ALLIANCE PRICE MARKET
GLOBAL INTERNATIONAL INTERNATIONAL EQUITY
FUND FUND STOCK FUND FUND
------------ ----------- ----------- -----------
ASSETS
<S> <C> <C> <C> <C>
Investments in shares
of the Trusts -- at
market value (Notes 2 and 6)
Cost: $ 25,428,532...........................
2,373,726,119...........................
35,037,606...........................
3,287...........................
3,014,607...........................
495,992,664........................... $605,891,574
52,503,391........................... $61,062,379
37,920,867........................... $39,637,629
14,640,855........................... $16,545,620
Receivable for Trust shares sold..................... -- -- -- --
Receivable for policy-related
transactions...................................... 12,151,524 18,998 -- --
------------ ----------- ----------- -----------
Total Assets......................................... 618,043,098 61,081,377 39,637,629 16,545,620
------------ ----------- ----------- -----------
LIABILITIES
Payable for Trust shares purchased................... 11,985,829 32,584 -- --
Payable for policy-related
transactions...................................... -- -- 20,198 22,392
Amount retained by Equitable Life
in Separate Account
FP (Note 4)....................................... 233,521 251,680 53,460 1,413,468
------------ ----------- ----------- -----------
Total Liabilities.................................... 12,219,350 284,264 73,658 1,435,860
------------ ----------- ----------- -----------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS................................... $605,823,748 $60,797,113 $39,563,971 $15,109,760
============ =========== =========== ===========
</TABLE>
- ------------------------------------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF ASSETS AND LIABILITIES (CONCLUDED)
JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES:
----------------------------------------------------------------------------------------------
WARBURG MFS
ALLIANCE PINCUS ALLIANCE EMERGING ALLIANCE EQ/
AGGRESSIVE SMALL SMALL CAP GROWTH CONSERVATIVE PUTNAM
STOCK COMPANY GROWTH COMPANIES INVESTORS BALANCED
FUND VALUE FUND FUND FUND FUND FUND
----------------- ------------- -------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares
of the Trusts -- at market
value (Notes 2 and 6)
Cost: $837,511,539........... $1,018,866,148
39,934,297........... $36,953,933
41,928,315........... $50,675,127
99,097,880........... $113,289,390
180,113,592........... $209,059,475
7,271,508........... $7,945,799
412,254,235...........
811,185,658...........
4,286,596...........
Receivable for Trust shares sold..... 934,511 -- 12,165,858 -- -- --
Receivable for policy-related
transactions...................... -- -- -- -- -- --
-------------- ----------- ----------- ------------ ------------ ----------
Total Assets......................... 1,019,800,659 36,953,933 62,840,985 113,289,390 209,059,475 7,945,799
-------------- ----------- ----------- ------------ ------------ ----------
LIABILITIES
Payable for Trust shares purchased... -- -- -- -- 97,261 --
Payable for policy-related
transactions...................... 1,294,651 21,991 12,168,727 71,825 48,827 12,976
Amount retained by Equitable Life
in Separate Account
FP (Note 4)....................... 774,410 50,922 247,913 44,671 247,573 48,664
-------------- ----------- ----------- ------------ ------------ ----------
Total Liabilities.................... 2,069,061 72,913 12,416,640 116,496 393,661 61,640
-------------- ----------- ----------- ------------ ------------ ----------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS................... $1,017,731,598 $36,881,020 $50,424,345 $113,172,894 $208,665,814 $7,884,159
============== =========== =========== ============ ============ ==========
<CAPTION>
ASSET ALLOCATION SERIES:
-----------------------------------------------
MERRILL
ALLIANCE LYNCH
ALLIANCE GROWTH WORLD
BALANCED INVESTORS STRATEGY
FUND FUND FUND
--------------- ----------------- -------------
<S> <C> <C> <C>
ASSETS
Investments in shares
of the Trusts -- at market
value (Notes 2 and 6)
Cost: $837,511,539...........
39,934,297...........
41,928,315...........
99,097,880...........
180,113,592...........
7,271,508...........
412,254,235........... $523,680,359
811,185,658........... $1,075,279,514
4,286,596........... $4,590,983
Receivable for Trust shares sold..... -- -- --
Receivable for policy-related
transactions...................... -- -- 998,950
------------ -------------- ----------
Total Assets......................... 523,680,359 1,075,279,514 5,589,933
------------ -------------- ----------
LIABILITIES
Payable for Trust shares purchased... 47,605 118,023 --
Payable for policy-related
transactions...................... 466,787 85,013 --
Amount retained by Equitable Life
in Separate Account
FP (Note 4)....................... 588,157 227,391 1,426,776
------------ -------------- ----------
Total Liabilities.................... 1,102,549 430,427 1,426,776
------------ -------------- ----------
NET ASSETS ATTRIBUTABLE
TO POLICYOWNERS................... $522,577,810 $1,074,849,087 $4,163,157
============ ============== ==========
</TABLE>
- -------------------------------------------------------------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
---------------------------------------------------------
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT ALLIANCE ALLIANCE
MONEY SECURITIES QUALITY HIGH YIELD
MARKET FUND FUND BOND FUND FUND
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trust .......................... -- -- -- --
Expenses (Note 3):
Mortality and expense risk charges ................ $ 751,318 $ 98,398 $ 658,757 $ 460,762
----------- ----------- ----------- ------------
NET INVESTMENT INCOME ................................... (751,318) (98,398) (658,757) (460,762)
----------- ----------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss) on investments ............... 321,186 (50,310) (310,307) (5,829,979)
Realized gain distribution from the Trusts ........ -- -- -- --
----------- ----------- ----------- ------------
NET REALIZED GAIN (LOSS) ................................ 321,186 (50,310) (310,307) (5,829,979)
----------- ----------- ----------- ------------
Unrealized appreciation (depreciation) on investments:
Beginning of period ............................... 1,536,450 2,391,062 3,367,697 (20,898,854)
End of period ..................................... 7,289,909 1,617,985 (2,000,786) (17,864,917)
----------- ----------- ----------- ------------
Change in unrealized appreciation (depreciation)
during the period ................................. 5,753,459 (773,077) (5,368,483) 3,033,937
----------- ----------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... 6,074,645 (823,387) (5,678,790) (2,796,042)
----------- ----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 5,323,327 $ (921,785) $(6,337,547) $ (3,256,804)
=========== =========== =========== ============
<CAPTION>
EQUITY SERIES:
-----------------------------------------
T. ROWE EQ/PUTNAM ALLIANCE
PRICE EQUITY GROWTH GROWTH &
INCOME INCOME INCOME
FUND VALUE FUND FUND
----------- ----------- ------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trust .......................... -- -- --
Expenses (Note 3):
Mortality and expense risk charges ................ $ 129,204 $ 51,757 $ 474,645
----------- ----------- ------------
NET INVESTMENT INCOME ................................... (129,204) (51,757) (474,645)
----------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss) on investments ............... 328,518 200,863 262,151
Realized gain distribution from the Trusts ........ -- -- --
----------- ----------- ------------
NET REALIZED GAIN (LOSS) ................................ 328,518 200,863 262,151
----------- ----------- ------------
Unrealized appreciation (depreciation) on investments:
Beginning of period ............................... 1,585,616 1,160,602 16,240,511
End of period ..................................... 6,876,529 2,886,355 39,615,274
----------- ----------- ------------
Change in unrealized appreciation (depreciation)
during the period ................................. 5,290,913 1,725,753 23,374,763
----------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... 5,619,431 1,926,616 23,636,914
----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 5,490,227 $ 1,874,859 $ 23,162,269
=========== =========== ============
</TABLE>
- -------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Equity Series (Continued):
------------------------------------------------------------------
MERRILL
ALLIANCE LYNCH ALLIANCE MFS
EQUITY INDEX BASIC VALUE COMMON STOCK RESEARCH
FUND EQUITY FUND FUND FUND
------------- ----------- --------------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trusts ......................... -- -- -- --
Expenses (Note 3):
Mortality and expense risk charges ................ $ 1,613,608 $ 63,842 $ 9,129,988 $ 93,735
------------- ----------- --------------- -----------
NET INVESTMENT INCOME ................................... (1,613,608) (63,842) (9,129,988) (93,735)
------------- ----------- --------------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss) on investments ............... 17,425,936 178,386 58,398,194 260,455
Realized gain distribution from the Trusts ........ -- -- -- --
------------- ----------- --------------- -----------
NET REALIZED GAIN (LOSS) ................................ 17,425,936 178,386 58,398,194 260,455
------------- ----------- --------------- -----------
Unrealized appreciation (depreciation) on investments:
Beginning of period ............................... 136,665,316 (91,959) 689,309,204 3,313,063
End of period ..................................... 187,202,791 4,343,566 1,037,281,505 6,276,689
------------- ----------- --------------- -----------
Change in unrealized appreciation (depreciation)
during the period ................................. 50,537,475 4,435,525 347,972,301 2,963,626
------------- ----------- --------------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... 67,963,411 4,613,911 406,370,495 3,224,081
------------- ----------- --------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 66,349,803 $ 4,550,069 $ 397,240,507 $ 3,130,346
============= =========== =============== ===========
<CAPTION>
Equity Series (Continued):
---------------------------------------
MFS
GROWTH EQ/ALLIANCE
WITH PREMIER ALLIANCE
INCOME GROWTH GLOBAL
FUND* FUND* FUND
--------- --------- -------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trusts ......................... -- -- --
Expenses (Note 3):
Mortality and expense risk charges ................ $ 1 $ 744 $ 1,620,041
--------- --------- -------------
NET INVESTMENT INCOME ................................... (1) (744) (1,620,041)
--------- --------- -------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss) on investments ............... -- 11 38,284,949
Realized gain distribution from the Trusts ........ -- -- --
--------- --------- -------------
NET REALIZED GAIN (LOSS) ................................ -- 11 38,284,949
--------- --------- -------------
Unrealized appreciation (depreciation) on investments:
Beginning of period ............................... -- -- 83,560,503
End of period ..................................... 74 155,173 109,898,910
--------- --------- -------------
Change in unrealized appreciation (depreciation)
during the period ................................. 74 155,173 26,338,407
--------- --------- -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... 74 155,184 64,623,356
--------- --------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 73 $ 154,440 $ 63,003,315
======== ========= =============
</TABLE>
- -------------------------
See Notes to Financial Statements.
* Commencement of Operations on June 4, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-6
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF OPERATIONS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Equity Series (Concluded):
------------------------------------------------------------------
MORGAN
STANLEY
T. ROWE EMERGING
ALLIANCE PRICE MARKETS ALLIANCE
INTERNATIONAL INTERNATIONAL EQUITY AGGRESSIVE
FUND STOCK FUND FUND STOCK FUND
---------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trusts............................. -- -- -- --
Expenses (Note 3):
Mortality and expense risk charges.................... $ 150,785 $ 89,651 $ 21,322 $ 2,754,102
---------- ---------- ---------- ------------
NET INVESTMENT INCOME....................................... (150,785) (89,651) (21,322) (2,754,102)
---------- ---------- ---------- ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss) on investments................... 421,516 1,312,645 (946,548) (41,692,663)
Realized gain distribution from the Trusts............ -- -- -- --
---------- ---------- ---------- ------------
NET REALIZED GAIN (LOSS).................................... 421,516 1,312,645 (946,548) (41,692,663)
---------- ---------- ---------- ------------
Unrealized appreciation (depreciation) on investments:
Beginning of period................................... 5,502,451 1,603,083 (2,942,633) 26,715,214
End of period......................................... 8,558,988 1,716,762 1,904,765 181,354,609
---------- ---------- ---------- ------------
Change in unrealized appreciation (depreciation)
during the period..................................... 3,056,537 113,679 4,847,398 154,639,395
---------- ---------- ---------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... 3,478,053 1,426,324 3,900,850 112,946,732
---------- ---------- ---------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS.......................................... $3,327,268 $1,336,673 $3,879,528 $110,192,630
========== ========== ========== ============
<CAPTION>
Equity Series (Concluded):
---------------------------------------------
WARBURG MFS
PINCUS ALLIANCE EMERGING
SMALL SMALL CAP GROWTH
COMPANY GROWTH COMPANIES
VALUE FUND FUND FUND
---------- ---------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trusts............................. -- -- --
Expenses (Note 3):
Mortality and expense risk charges.................... $ 89,383 $ 123,769 $ 240,946
---------- ---------- -----------
NET INVESTMENT INCOME....................................... (89,383) (123,769) (240,946)
---------- ---------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss) on investments................... (944,158) 1,069,730 3,542,229
Realized gain distribution from the Trusts............ -- -- --
---------- ---------- -----------
NET REALIZED GAIN (LOSS).................................... (944,158) 1,069,730 3,542,229
---------- ---------- -----------
Unrealized appreciation (depreciation) on investments:
Beginning of period................................... (4,215,340) 8,780,955 6,996,177
End of period......................................... (2,980,364) 8,746,812 14,191,510
---------- ---------- -----------
Change in unrealized appreciation (depreciation)
during the period..................................... 1,234,976 (34,143) 7,195,333
---------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................................... 290,818 1,035,587 10,737,562
---------- ---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS.......................................... $ 201,435 $ 911,818 $10,496,616
========== ========== ===========
</TABLE>
- -------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-7
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF OPERATIONS (CONCLUDED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Asset Allocation Series (Concluded):
------------------------------------------------------------------------
MERRILL
ALLIANCE EQ/ ALLIANCE LYNCH
CONSERVATIVE PUTNAM ALLIANCE GROWTH WORLD
INVESTORS BALANCED BALANCED INVESTORS STRATEGY
FUND FUND FUND FUND FUND
------------ --------- ------------- ------------- ---------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trusts ......................... -- -- -- -- --
Expenses (Note 3):
Mortality and expense risk charges ................ $ 613,322 $ 18,054 $ 1,529,853 $ 2,990,021 $ 8,910
------------ --------- ------------- ------------- ---------
NET INVESTMENT INCOME ................................... (613,322) (18,054) (1,529,853) (2,990,021) 8,910)
------------ --------- ------------- ------------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss) on investments ............... 923,303 55,582 2,393,758 7,402,951 136,851
Realized gain distribution from the Trusts ........ -- -- -- -- --
------------ --------- ------------- ------------- ---------
NET REALIZED GAIN (LOSS) ................................ 923,303 55,582 2,393,758 7,402,951 136,851
------------ --------- ------------- ------------- ---------
Unrealized appreciation (depreciation) on investments:
Beginning of period ............................... 21,507,963 259,882 81,344,863 167,705,600 187,734
End of period ..................................... 28,945,883 674,291 111,426,124 264,093,856 304,386
------------ --------- ------------- ------------- ---------
Change in unrealized appreciation (depreciation)
during the period ................................. 7,437,920 414,409 30,081,260 96,388,256 116,652
------------ --------- ------------- ------------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS ....................................... 8,361,223 469,991 32,475,018 103,791,207 253,503
------------ --------- ------------- ------------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS ...................................... $ 7,747,900 $ 451,936 $ 30,945,165 $ 100,801,186 $244,593
============ ========= ============= ============= ========
</TABLE>
- -------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-8
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Fixed Income Series:
-------------------------------------------------------------
ALLIANCE
INTERMEDIATE
ALLIANCE GOVERNMENT ALLIANCE ALLIANCE
MONEY SECURITIES QUALITY HIGH YIELD
MARKET FUND FUND BOND FUND FUND
------------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................. $ (751,318) $ (98,398) $ (658,757) $ (460,762)
Net realized gain (loss) .......................... 321,186 (50,310) (310,307) (5,829,979)
Change in unrealized appreciation
(depreciation) on investments .................. 5,753,459 (773,077) (5,368,483) 3,033,937
------------- ------------ ------------- -------------
Net increase (decrease) in net assets
from operations ................................ 5,323,327 (921,785) (6,337,547) (3,256,804)
------------- ------------ ------------- -------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3) ............................. 119,732,477 11,013,953 13,036,793 18,517,002
Benefits and other policy-related
transactions (Note 3) .......................... (34,659,548) (4,716,655) (3,880,233) (11,219,965)
Net transfers among funds and
guaranteed interest account .................... (58,245,849) 1,175,588 9,332,726 (8,930,488)
------------- ------------ ------------- -------------
Net increase (decrease) in net assets
from policy-related transactions ............... 26,827,080 7,472,886 18,489,286 (1,633,451)
------------- ------------ ------------- -------------
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4) ...................... 49,710 (90,061) 8,807 22,618
------------- ------------ ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO POLICYOWNERS ...................... 32,200,117 6,461,040 12,160,546 (4,867,637)
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS,
BEGINNING OF PERIOD ............................... 254,675,793 74,673,339 228,685,249 170,236,391
------------- ------------ ------------- -------------
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS, END OF PERIOD $ 286,875,910 $ 81,134,379 $ 240,845,795 $ 165,368,754
============= ============ ============= =============
<CAPTION>
Equity Series:
---------------------------------------------
T. ROWE EQ/PUTNAM ALLIANCE
PRICE EQUITY GROWTH GROWTH &
INCOME & INCOME INCOME
FUND VALUE FUND FUND
------------ ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................. $ (129,204) $ (51,757) $ (474,645)
Net realized gain (loss) .......................... 328,518 200,863 262,151
Change in unrealized appreciation
(depreciation) on investments .................. 5,290,913 1,725,753 23,374,763
------------ ------------ -------------
Net increase (decrease) in net assets
from operations ................................ 5,490,227 1,874,859 23,162,269
------------ ------------ -------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3) ............................. 8,202,262 3,723,800 22,182,455
Benefits and other policy-related
transactions (Note 3) .......................... (2,715,594) (1,237,624) (9,305,647)
Net transfers among funds and
guaranteed interest account .................... (328,395) 1,065,567 15,674,083
------------ ------------ -------------
Net increase (decrease) in net assets
from policy-related transactions ............... 5,158,273 3,551,743 28,550,891
------------ ------------ -------------
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4) ...................... (14,479) (10,087) (41,409)
------------ ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO POLICYOWNERS ...................... 10,634,021 5,416,515 51,671,751
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS,
BEGINNING OF PERIOD ............................... 43,563,753 16,636,306 151,175,713
------------ ------------ -------------
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS, END OF PERIOD $ 54,197,774 $ 22,052,821 $ 202,847,464
============ ============ =============
</TABLE>
- -------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-9
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Equity Series: (Continued)
---------------------------------------------------------------
ALLIANCE MERRILL LYNCH ALLIANCE MFS
EQUITY INDEX BASIC VALUE COMMON STOCK RESEARCH
FUND EQUITY FUND FUND FUND
------------- ------------ --------------- ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................. $ (1,613,608) $ (63,842) $ (9,129,988) $ (93,735)
Net realized gain (loss) .......................... 17,425,936 178,386 58,398,194 260,455
Change in unrealized appreciation
(depreciation) on investments .................. 50,537,475 4,435,525 347,972,301 2,963,626
------------- ------------ --------------- ------------
Net increase (decrease) in net assets
from operations ................................ 66,349,803 4,550,069 397,240,507 3,130,346
------------- ------------ --------------- ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3) ............................. 65,683,391 4,905,653 187,556,807 6,629,966
Benefits and other policy-related
transactions (Note 3) .......................... (29,013,793) (1,416,212) (148,400,649) (2,173,926)
Net transfers among funds and
guaranteed interest account .................... 189,148,621 1,584,368 28,881,595 5,687,025
------------- ------------ --------------- ------------
Net increase (decrease) in net assets
from policy-related transactions ............... 225,818,219 5,073,809 68,037,753 10,143,065
------------- ------------ --------------- ------------
ET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4) ...................... (28,827) (14,678) (209,307) (4,400)
------------- ------------ --------------- ------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO POLICYOWNERS ...................... 292,139,195 9,609,200 465,068,953 13,269,011
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS,
BEGINNING OF PERIOD ............................... 443,438,101 20,085,090 2,942,526,574 27,961,387
------------- ------------ --------------- ------------
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS, END OF PERIOD $ 735,577,296 $ 29,694,290 $ 3,407,595,527 $ 41,230,398
============= ============ =============== ============
<CAPTION>
Equity Series: (Continued)
--------------------------------------
MFS
GROWTH
WITH EQ/ALLIANCE ALLIANCE
INCOME PREMIER GLOBAL
FUND* GROWTH FUND* FUND
------- ----------- -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................. $ (1) $ (744) $ (1,620,041)
Net realized gain (loss) .......................... -- 11 38,284,949
Change in unrealized appreciation
(depreciation) on investments .................. 74 155,173 26,338,407
------- ----------- -------------
Net increase (decrease) in net assets
from operations ................................ 73 154,440 63,003,315
------- ----------- -------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3) ............................. 3,183 171,747 38,147,174
Benefits and other policy-related
transactions (Note 3) .......................... -- 1,396 (32,919,304)
Net transfers among funds and
guaranteed interest account .................... 105 2,842,105 12,389,736
------- ----------- -------------
Net increase (decrease) in net assets
from policy-related transactions ............... 3,288 3,015,248 17,617,606
------- ----------- -------------
ET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4) ...................... -- 44 (32,868)
------- ----------- -------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO POLICYOWNERS ...................... 3,361 3,169,732 80,588,053
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS,
BEGINNING OF PERIOD ............................... -- -- 525,235,695
------- ----------- -------------
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS, END OF PERIOD $ 3,361 $ 3,169,732 $ 605,823,748
======= =========== =============
</TABLE>
- -------------------------
See Notes to Financial Statements.
* Commencement of Operations on June 4, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-10
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
Equity Series (Concluded):
-----------------------------------------------------------------
MORGAN
STANLEY
EMERGING
ALLIANCE T. ROWE PRICE MARKETS ALLIANCE
INTERNATIONAL INTERNATIONAL EQUITY AGGRESSIVE
FUND STOCK FUND FUND STOCK FUND
------------ ------------ ------------ ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................. $ (150,785) $ (89,651) $ (21,322) $ (2,754,102)
Net realized gain (loss) .......................... 421,516 1,312,645 (946,548) (41,692,663)
Change in unrealized appreciation
(depreciation) on investments .................. 3,056,537 113,679 4,847,398 154,639,395
------------ ------------ ------------ ---------------
Net increase (decrease) in net assets
from operations ................................ 3,327,268 1,336,673 3,879,528 110,192,630
------------ ------------ ------------ ---------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3) ............................. 6,698,552 5,470,438 1,890,930 81,731,848
Benefits and other policy-related
transactions (Note 3) .......................... (3,000,886) (1,837,898) (742,061) (61,595,209)
Net transfers among funds and
guaranteed interest account .................... (1,236,064) 3,987,982 3,800,925 (82,900,383)
------------ ------------ ------------ ---------------
Net increase (decrease) in net assets
from policy-related transactions ............... 2,461,602 7,620,522 4,949,794 (62,763,744)
------------ ------------ ------------ ---------------
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4) ...................... (15,165) (1,280) (733,906) (475,369)
------------ ------------ ------------ ---------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO POLICYOWNERS ...................... 5,773,705 8,955,915 8,095,416 46,953,517
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS,
BEGINNING OF PERIOD ............................... 55,023,408 30,608,056 7,014,344 970,778,081
------------ ------------ ------------ ---------------
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS, END OF PERIOD $ 60,797,113 $ 39,563,971 $ 15,109,760 $ 1,017,731,598
============ ============ ============ ===============
<CAPTION>
Equity Series (Concluded):
---------------------------------------------
WARBURG ALLIANCE MFS EMERGING
PINCUS SMALL SMALL CAP GROWTH
COMPANY GROWTH COMPANIES
VALUE FUND FUND FUND
------------ ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income ............................. $ (89,383) $ (123,769) $ (240,946)
Net realized gain (loss) .......................... (944,158) 1,069,730 3,542,229
Change in unrealized appreciation
(depreciation) on investments .................. 1,234,976 (34,143) 7,195,333
------------ ------------ -------------
-------------
Net increase (decrease) in net assets
from operations ................................ 201,435 911,818 10,496,616
------------ ------------ -------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3) ............................. 6,138,934 9,385,875 14,937,031
Benefits and other policy-related
transactions (Note 3) .......................... (2,631,895) (2,743,073) (5,320,719)
Net transfers among funds and
guaranteed interest account .................... (3,481,743) (5,517,236) 37,193,059
------------ ------------ -------------
Net increase (decrease) in net assets
from policy-related transactions ............... 25,296 1,125,566 46,809,371
------------ ------------ -------------
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4) ...................... 207 (84,288) (98,022)
------------ ------------ -------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO POLICYOWNERS ...................... 226,938 1,953,096 57,207,965
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS,
BEGINNING OF PERIOD ............................... 36,654,082 48,471,249 55,964,929
------------ ------------ -------------
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS, END OF PERIOD $ 36,881,020 $ 50,424,345 $ 113,172,894
============ ============ =============
</TABLE>
- -------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-11
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENT OF CHANGES IN NET ASSETS (Concluded)
FOR THE SIX MONTHS ENDED JUNE 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
Asset Allocation Series:
-------------------------------------------------------------------------
MERRILL
ALLIANCE EQ/ ALLIANCE LYNCH
CONSERVATIVE PUTNAM GROWTH WORLD
INVESTORS BALANCED ALLIANCE INVESTORS STRATEGY
FUND FUND BALANCED FUND FUND FUND
------------ ---------- ------------ -------------- ----------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income............................... $ (613,322) $ (18,054) $ (1,529,853) $ (2,990,021) $ (8,910)
Net realized gain (loss)............................ 923,303 55,582 2,393,758 7,402,951 136,851
Change in unrealized appreciation
(depreciation) on investments.................... 7,437,920 414,409 30,081,260 96,388,256 116,652
Net increase (decrease) in net assets
from operations.................................. 7,747,901 451,937 30,945,165 100,801,186 244,593
------------ ---------- ------------ -------------- ----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)............................... 14,512,694 1,449,553 25,928,922 62,651,207 800,971
Benefits and other policy-related
transactions (Note 3)............................ (14,200,759) (456,135) (30,026,763) (59,694,188) (280,064)
Net transfers among funds and
guaranteed interest account...................... (1,115,133) 557,886 (2,635,113) (6,251,949) (304,380)
------------ ---------- ------------ -------------- ----------
Net increase (decrease) in net assets
from policy-related transactions................. (803,198) 1,551,304 (6,732,954) (3,294,930) 216,527
------------ ---------- ------------ -------------- ----------
NET (INCREASE) DECREASE IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........................ (14,243) (7,619) (18,685) (49,577) (61,554)
------------ ---------- ------------ -------------- ----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO POLICYOWNERS........................ 6,930,460 1,995,622 24,193,526 97,456,679 399,566
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS,
BEGINNING OF PERIOD................................. 201,735,354 5,888,537 498,384,284 977,392,408 3,763,591
------------ ---------- ------------ -------------- ----------
NET ASSETS ATTRIBUTABLE TO POLICYOWNERS, END OF PERIOD. $208,665,814 $7,884,159 $522,577,810 $1,074,849,087 $4,163,157
============ ========== ============ ============== ==========
</TABLE>
- -------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-12
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 1999
1. General
Effective January 1, 1997 Equitable Variable Life Insurance Company
("Equitable Variable Life") was merged into The Equitable Life Assurance
Society of the United States ("Equitable Life"). From January 1, 1997,
Equitable Life is liable in place of Equitable Variable Life for the
liabilities and obligations of Equitable Variable Life, including
liabilities under policies and contracts issued by Equitable Variable Life,
and all of Equitable Variable Life's assets became assets of Equitable Life.
The merger had no effect on the net assets of the Separate Account
attributable to contractowners. Alliance Capital Management L.P., an
indirect, majority-owned subsidiary of Equitable Life, manages The Hudson
River Trust (HR Trust) and is investment adviser for all of the investment
funds of HR Trust. EQ Financial Consultants, Inc. ("EQFC"), and Equitable
Distributors Inc. ("EDI") are wholly owned subsidiaries of Equitable Life.
EQFC manages the EQ Advisors Trust (EQ Trust) and has overall responsibility
for general management and administration of EQ Trust.
Equitable Life Separate Account FP (the Account) is organized as a unit
investment trust, a type of investment company, and is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940.
The Account consists of twenty-six investment funds: the Alliance Money
Market Fund, the Alliance Intermediate Government Securities Fund, the
Alliance Quality Bond Fund, the Alliance High Yield Fund, T. Rowe Price
Equity Income Fund, the EQ/Putnam Growth and Income Value Fund, Alliance
Growth & Income Fund, the Alliance Equity Index Fund, the Merrill Lynch
Basic Value Equity Fund, the Alliance Common Stock Fund, the MFS Research
Fund, MFS Growth with Income Fund, EQ/Alliance Premier Growth Fund, the
Alliance Global Fund, the Alliance International Fund, the T. Rowe Price
International Stock Fund, the Morgan Stanley Emerging Markets Equity Fund,
the Alliance Aggressive Stock Fund, the Warburg Pincus Small Company Value
Fund, the Alliance Small Cap Growth Fund, MFS Emerging Growth Companies
Fund, the Alliance Conservative Investors Fund, the EQ/Putnam Balanced Fund,
the Alliance Balanced Fund, the Alliance Growth Investors Fund, and the
Merrill Lynch World Strategy Fund ("the Funds"). The assets in each fund are
invested in shares of a corresponding portfolio (Portfolio) of a mutual
fund, Class 1A or 1B shares of HR Trust or Class 1B shares of EQ Trust
(collectively, the "Trusts"). Class 1A and 1B shares are offered by the
Trust at net asset value. Both classes of shares are subject to fees for
investment management and advisory services and other Trust expenses. Class
1A shares are not subject to distribution fees imposed pursuant to a
distribution plan. Class 1B shares are subject to distribution fees imposed
under a distribution plan (herein the "Rule 12b-1 Plans") adopted in 1997
pursuant to Rule 12b-1 under the 1940 Act, as amended. The Rule 12b-1 Plans
provide that the Trusts, on behalf of each Fund, may charge annually up to
0.25% of the average daily net assets of a Fund attributable to its Class 1B
shares in respect of activities primarily intended to result in the sale of
the Class 1B shares. These fees are reflected in the net asset value of the
shares. The Trusts are open-ended, diversified management investment
companies that invest separate account assets of insurance companies. Each
Portfolio has separate investment objectives.
EQFC and EDI earn fees from both Trusts under distribution agreements held
with the Trusts. EQFC also earns fees under an investment management
agreement with the EQ Trust. Alliance earns fees under an investment
advisory agreement with the HR Trust.
The Account supports the operations of Incentive Life, Incentive Life 2000,
Incentive Life Plus(SM), IL Protector(SM) and IL COLI, flexible premium
variable life insurance policies, Champion 2000, modified premium variable
whole life insurance policies; Survivorship 2000, Survivorship Incentive
Life, flexible premium joint survivorship variable life insurance policies;
and SP-Flex, variable life insurance policies with additional premium
option (collectively, the "Policies"). The Incentive Life 2000, Champion
2000 and Survivorship 2000 policies are herein referred to as the "Series
2000 Policies." Incentive Life Plus(SM) policies offered with a prospectus
dated on or after September 15, 1995, are referred to as Incentive Life
PlusSM Second Series. Incentive Life Plus policies issued with a prior
prospectus are referred to as Incentive Life Plus Original Series. All
Policies are issued by Equitable Life. The assets of the Account are the
property of Equitable Life. However, the portion of the Account's assets
attributable to the Policies will not be chargeable with liabilities
arising out of any other business Equitable Life may conduct.
Receivable/payable for policy-related transactions represent amount due
to/from General Account predominately related to premiums, surrenders and
death benefits.
Policyowners may allocate amounts in their individual accounts to the Funds
of the Account and/or (except for SP-Flex policies) to the guaranteed
interest account of Equitable Life's General Account. Net transfers to
(from) the guaranteed interest account of the General Account and other
Separate Accounts of $142,374,638 for the six months ended 1999 are included
in Net Transfers among Funds. The net assets of any Fund of the Account may
not be less than the aggregate of the policyowners' accounts allocated to
that Fund. Additional assets are set aside in Equitable Life's General
Account to provide for (1) the unearned portion of the monthly charges for
mortality costs, and (2) other policy benefits, as required under the state
insurance law.
+ Formerly known as Equitable Variable Life Insurance Company Separate
Account FP.
FSA-13
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
2. Significant Accounting Policies
The accompanying financial statements are prepared in conformity with
generally accepted accounting principles (GAAP). The preparation of
financial statements in conformity with GAAP 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. Actual results could differ from those
estimates.
Investments are made in shares of the Trusts and are valued at the net asset
values per share of the respective Portfolios. The net asset value is
determined by the Trusts using the market or fair value of the underlying
assets of the Portfolio less liabilities.
Investment transactions are recorded on the trade date. Dividends are
recorded by the Trusts in the fourth quarter on the ex-dividend date.
Dividend and capital gain distributions are automatically reinvested on the
ex-dividend date. Realized gains and losses include gains and losses on
redemptions of the Trust's shares (determined on the identified cost basis)
and Trust distributions representing the net realized gains on Trust
investment transactions are distributed by the Trust at the end of each
year.
The operations of the Account are included in the consolidated federal
income tax return of Equitable Life. Under the provisions of the Policies,
Equitable Life has the right to charge the Account for federal income tax
attributable to the Account. No charge is currently being made against the
Account for such tax since, under current tax law, Equitable Life pays no
tax on investment income and capital gains reflected in variable life
insurance policy reserves. However, Equitable Life retains the right to
charge for any federal income tax incurred which is attributable to the
Account if the law is changed. Charges for state and local taxes, if any,
attributable to the Account also may be made.
3. Asset Charges
Under the Policies, Equitable Life assumes mortality and expense risks and,
to cover these risks, charges the daily net assets of the Account currently
at annual rates of:
<TABLE>
<CAPTION>
Mortality
and Expense Mortality Administrative Total
-------------- ------------- --------------- ------------
<S> <C> <C> <C> <C>
Incentive Life,
Incentive Life 2000,
Incentive Life Plus
Second Series,
Champion 2000 (a) .60% .60%
IL Plus Original
Series, IL COLI (b) .85% .85%
Survivorship
Incentive Life (a) .60% .60%
Survivorship 2000 (a) .90% .90%
IL Protector (a) .80% .80%
SP Flex (a) .85% .60% .35% 1.80%
</TABLE>
----------------------
(a) Charged to daily net assets of the Account.
(b) Charged to Policy Account and is included in Benefits and
other policy-related transactions in the Statement of
Changes in Net Assets.
Before amounts are remitted to the Account for Incentive Life, Incentive
Life Plus, IL COLI, Survivorship Incentive Life, and the Series 2000
Policies, Equitable Life deducts a charge for taxes and either an initial
policy fee (Incentive Life) or a premium sales charge (Incentive Life Plus,
Survivorship Incentive Life, Incentive Life sales 1999 and after, and Series
2000 Policies) from premiums. Under SP-Flex, the entire initial premium is
allocated to the Account. Before any additional premiums under SP-Flex are
allocated to the Account, however, an administrative charge is deducted.
The amounts attributable to Incentive Life, Incentive Life Plus, IL
Protector, IL COLI, and the Series 2000 policyowners' accounts are assessed
monthly by Equitable Life for cost of insurance and administrative charges.
These charges are withdrawn from the policyowner accounts along with amounts
for additional benefits. Under the Policies, amounts for certain
policy-related transactions (such as policy loans and surrenders) are
transferred out of the Separate Account.
Included in the Withdrawals and Administrative Charges line of the Statement
of Changes in Net Assets are certain administrative charges which are
deducted from the policyowners account value.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-14
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
4. Amounts Retained by Equitable Life in Separate Account FP
The amount retained by Equitable Life (surplus) in the Account arises
principally from (1) contributions from Equitable Life, (2) mortality and
expense risk charges and administrative charges accumulated in the account,
and (3) that portion, determined ratably, of the Account's investment
results applicable to those assets in the Account in excess of the net
assets for the Policies. Amounts retained by Equitable Life are not subject
to charges for mortality and expense charges and administrative charges.
Amounts retained by Equitable Life in the Account may be transferred at any
time by Equitable Life to its General Account.
The following table shows the surplus withdrawals by Equitable Life by
investment fund:
SIX MONTHS ENDED
JUNE 30,
---------------------
INVESTMENT FUND 1999
- --------------- ----
Fixed Income Series:
Alliance Money Market 890,096
Alliance Intermediate Government Securities 98,158
Alliance Quality Bond 880,287
Alliance High Yield 487,287
Equity Series:
T. Rowe Price Equity Income 223,735
EQ/Putnam Growth & Income Value 121,245
Alliance Growth & Income 619,443
Alliance Equity Index 1,712,462
Merrill Lynch Basic Value Equity 108,167
Alliance Common Stock 8,989,648
MFS Research 104,972
MFS Growth With Income --
EQ/Alliance Premier Growth --
Alliance Global 1,930,825
Alliance International 200,806
T. Rowe Price International Stock 89,767
Morgan Stanley Emerging Markets Equity 1,685,953
Alliance Aggressive Stock 3,004,033
Warburg Pincus Small Company Value 114,097
Alliance Small Cap Growth 223,825
MFS Emerging Growth Companies 323,192
Asset Allocation Series:
Alliance Conservative Investors 808,299
EQ/Putnam Balanced 97,966
Alliance Balanced 1,632,109
Alliance Growth Investors 3,457,703
Merrill Lynch World Strategy 8,810
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-15
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
5. Distribution and Servicing Agreements
Equitable Life has entered into Distribution and Servicing Agreements with
EQFC, an affiliate of Equitable Life, and EDI, whereby registered
representatives of EQFC, authorized as variable life insurance agents under
applicable state insurance laws, sell the Policies. The registered
representatives are compensated on a commission basis by Equitable Life.
6. Investment Returns
The tables on the following pages show the gross and net investment returns
with respect to the Funds for the periods shown. The net return for each
Fund is based upon beginning and ending net unit value for a policy and is
not based on the average net assets in the Fund during such period. Gross
return is equal to the total return earned by the underlying Trust
investment which is after deduction of trust expense.
The Separate Account rates of return attributable to Incentive Life,
Incentive Life 2000, Incentive Life Plus Second Series and Champion 2000
policyowners are different than those attributable to Survivorship 2000,
Survivorship Incentive Life, Incentive Life Plus Original Series, IL
Protector, IL COLI, and to SP-Flex policyowners because asset charges are
deducted at different rates under each policy (see Note 3). The Separate
Account rates of return attributable to Incentive Life sales 1999 and after
and Survivorship Incentive Life for the Alliance Money Market Fund, Alliance
Intermediate Government Securities Fund, Alliance Quality Bond Fund,
Alliance High Yield Fund, Alliance Growth & Income Fund, Alliance Equity
Index Fund, Alliance Common Stock Fund, Alliance Global Fund, Alliance
International Fund, Alliance Aggressive Stock Fund, Alliance Small Cap
Growth Fund, Alliance Conservative Investors Fund, Alliance Balanced Fund,
Alliance Growth Investors Fund are different from other products in the same
funds because distribution fees of .025% of the average daily assets of the
Fund are deducted (see Note 1).
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-16
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN:
INCENTIVE LIFE,
INCENTIVE LIFE 2000,
INCENTIVE LIFE PLUS SECOND SERIES
AND CHAMPION 2000*(A)
FIXED INCOME SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE MONEY MARKET FUND 1999
- -------------------------- ----
Gross return.................................. 2.28
Net return.................................... 1.98
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND 1999
- ------------------------------------------------ ----
Gross return.................................. (0.99)
Net return.................................... (1.29)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE QUALITY BOND FUND 1999
- -------------------------- ----
Gross return.................................. (2.38)
Net return.................................... (2.67)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE HIGH YIELD FUND 1999
- ------------------------ ----
Gross return.................................. (1.68)
Net return.................................... (1.97)
EQUITY SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
T. ROWE PRICE EQUITY INCOME FUND 1999
- -------------------------------- ----
Gross return.................................. 12.39
Net return.................................... 12.02
SIX MONTHS
ENDED JUNE 30,
-----------------
EQ/PUTNAM GROWTH & INCOME VALUE FUND 1999
- ------------------------------------ ----
Gross return.................................. 10.81
Net return.................................... 10.40
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH & INCOME FUND 1999
- ----------------------------- ----
Gross return.................................. 14.08
Net return.................................... 13.74
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE EQUITY INDEX FUND 1999
- -------------------------- ----
Gross return.................................. 12.01
Net return.................................... 11.68
- ----------
* Sales of Incentive Life 2000 and Champion 2000 commenced on March 2, 1992.
Sales of Incentive Life Plus Second Series commenced on September 15, 1995.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-17
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE,
INCENTIVE LIFE 2000,
INCENTIVE LIFE PLUS SECOND SERIES
AND CHAMPION 2000*(B)
EQUITY SERIES (CONTINUED):
SIX MONTHS
ENDED JUNE 30,
-----------------
MERRILL LYNCH BASIC VALUE EQUITY FUND 1999
- ------------------------------------- ----
Gross return.................................. 21.20
Net return.................................... 20.81
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE COMMON STOCK FUND 1999
- -------------------------- ----
Gross return.................................. 13.69
Net return.................................... 13.35
SIX MONTHS
ENDED JUNE 30,
-----------------
MFS RESEARCH FUND 1999
- ----------------- ----
Gross return.................................. 9.01
Net return.................................... 8.69
JUNE 4(A) TO
JUNE 30,
-----------------
MFS GROWTH WITH INCOME FUND 1999
- --------------------------- ----
Gross return.................................. 1.80
Net return.................................... 1.75
JUNE 4(A) TO
JUNE 30,
-----------------
EQ/ALLIANCE PREMIER GROWTH FUND 1999
- ------------------------------- ----
Gross return.................................. 5.86
Net return.................................... 5.82
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GLOBAL FUND 1999
- -------------------- ----
Gross return.................................. 12.32
Net return.................................... 11.99
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERNATIONAL 1999
- ---------------------- ----
Gross return.................................. 5.85
Net return.................................... 5.54
SIX MONTHS
ENDED JUNE 30,
-----------------
T. ROWE PRICE INTERNATIONAL STOCK FUND 1999
- -------------------------------------- ----
Gross return.................................. 3.33
Net return.................................... 2.99
- ----------
* Sales of Incentive Life 2000 and Champion 2000 commenced on March 2, 1992.
Sales of Incentive Life Plus Second Series commenced on September 15, 1995.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and net return for the periods indicated are not
annualized rates of return.
(b) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-18
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE,
INCENTIVE LIFE 2000,
INCENTIVE LIFE PLUS SECOND SERIES
AND CHAMPION 2000*(A)
EQUITY SERIES (CONTINUED):
SIX MONTHS
ENDED JUNE 30,
-----------------
MORGAN STANLEY EMERGING MARKETS EQUITY FUND 1999
- ------------------------------------------- ----
Gross return.................................. 38.24
Net return.................................... 37.72
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE AGGRESSIVE STOCK FUND 1999
- ------------------------------ ----
Gross return.................................. 12.38
Net return.................................... 12.05
SIX MONTHS
ENDED JUNE 30,
-----------------
WARBURG PINCUS SMALL COMPANY VALUE FUND 1999
- --------------------------------------- ----
Gross return.................................. 1.13
Net return.................................... 0.81
SIX MONTHS
ENDED JUNE 30,
--------------
ALLIANCE SMALL CAP GROWTH FUND 1999
- ------------------------------ ----
Gross return.................................. (0.49)
Net return.................................... (0.78)
SIX MONTHS
ENDED JUNE 30,
-----------------
MFS EMERGING GROWTH COMPANIES FUND 1999
- ---------------------------------- ----
Gross return.................................. 12.78
Net return.................................... 12.43
ASSET ALLOCATION SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE CONSERVATIVE INVESTORS FUND 1999
- ---------------------------------- ----
Gross return.................................. 4.13
Net return.................................... 3.82
SIX MONTHS
ENDED JUNE 30,
-----------------
EQ/PUTNAM BALANCED FUND 1999
- ----------------------- ----
Gross return.................................. 6.91
Net return.................................... 6.59
- ----------
* Sales of Incentive Life 2000 and Champion 2000 commenced on March 2, 1992.
Sales of Incentive Life Plus Second Series commenced on September 15, 1995.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-19
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE,
INCENTIVE LIFE 2000,
INCENTIVE LIFE PLUS SECOND SERIES
AND CHAMPION 2000*(A)
EQUITY SERIES (CONCLUDED):
SIX MONTHS
ENDED JUNE 30,
--------------
ALLIANCE BALANCED FUND 1999
- ---------------------- ----
Gross return.................................. 6.55
Net return.................................... 6.23
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH INVESTORS FUND 1999
- ------------------------------ ----
Gross return.................................. 10.63
Net return.................................... 10.30
SIX MONTHS
ENDED JUNE 30,
-----------------
MERRILL LYNCH WORLD STRATEGY FUND 1999
- --------------------------------- ----
Gross return.................................. 4.94
Net return.................................... 4.60
- ----------
* Sales of Incentive Life 2000 and Champion 2000 commenced on March 2, 1992.
Sales of Incentive Life Plus Second Series commenced on September 15, 1995.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-20
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN:
INCENTIVE LIFE
SURVIVORSHIP INCENTIVE LIFE*
FIXED INCOME SERIES:
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE MONEY MARKET FUND 1999
- -------------------------- ----
Gross return.................................. 0.29
Net return.................................... 0.23
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND 1999
- ------------------------------------------------ ----
Gross return.................................. 0.16
Net return.................................... 0.10
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE QUALITY BOND FUND 1999
- -------------------------- ----
Gross return.................................. 0.07
Net return.................................... 0.01
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE HIGH YIELD FUND 1999
- ------------------------ ----
Gross return.................................. 0.10
Net return.................................... 0.04
EQUITY SERIES:
JUNE 4(A) TO
JUNE 30,
-----------------
T. ROWE PRICE EQUITY INCOME FUND 1999
- -------------------------------- ----
Gross return.................................. 1.41
Net return.................................... 1.37
JUNE 4(A) TO
JUNE 30,
-----------------
EQ/PUTNAM GROWTH & INCOME VALUE FUND 1999
- ------------------------------------ ----
Gross return.................................. 0.61
Net return.................................... 0.57
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE GROWTH & INCOME FUND 1999
- ----------------------------- ----
Gross return.................................. 2.67
Net return.................................... 2.60
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE EQUITY INDEX FUND 1999
- -------------------------- ----
Gross return.................................. 3.40
Net return.................................... 3.34
JUNE 4(A) TO
JUNE 30,
-----------------
MFS GROWTH WITH INCOME FUND 1999
- --------------------------- ----
Gross return.................................. 1.80
Net return.................................... 1.75
- ----------
+ Formerly known as Equitable Variable Life Insurance Company
Separate Account FP.
* Sales of Incentive Life and Survivorship Incentive Life commenced June 4,
1999.
(a) Date as of which net premiums under the policies were first allocated the
Fund. The gross return and net return for the periods indicated are not
annualized rates of return.
FSA-21
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE
SURVIVORSHIP INCENTIVE LIFE*
EQUITY SERIES (CONTINUED):
JUNE 4(A) TO
JUNE 30,
-----------------
MERRILL LYNCH BASIC VALUE EQUITY FUND 1999
- ------------------------------------- ----
Gross return.................................. 2.18
Net return.................................... 2.13
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE COMMON STOCK FUND 1999
- -------------------------- ----
Gross return.................................. 4.57
Net return.................................... 4.51
JUNE 4(A) TO
JUNE 30,
-----------------
MFS RESEARCH FUND 1999
- -------------------- ----
Gross return.................................. 4.37
Net return.................................... 4.32
JUNE 4(A) TO
JUNE 30,
-----------------
MFS GROWTH WITH INCOME 1999
- ---------------------- ----
Gross return.................................. 1.80
Net return.................................... 1.75
JUNE 4(A) TO
JUNE 30,
-----------------
EQ/ALLIANCE PREMIER GROWTH FUND 1999
- ------------------------------- ----
Gross return.................................. 5.86
Net return.................................... 5.82
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE GLOBAL FUND 1999
- --------------------- ----
Gross return.................................. 4.55
Net return.................................... 4.48
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE INTERNATIONAL FUND 1999
- --------------------------- ----
Gross return.................................. 3.12
Net return.................................... 3.05
JUNE 4(A) TO
JUNE 30,
-----------------
T. ROWE PRICE INTERNATIONAL STOCK FUND 1999
- ------------------------------------- ----
Gross return.................................. 2.28
Net return.................................... 2.23
JUNE 4(A) TO
JUNE 30,
-----------------
MORGAN STANLEY EMERGING MARKETS EQUITY FUND 1999
- ------------------------------------------- ----
Gross return.................................. 7.91
Net return.................................... 7.86
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* Sales of Incentive Life and Survivorship Incentive Life commenced June 4,
1999.
(a) Date as of which net premiums under the policies were first allocated the
Fund. The gross return and net return for the periods indicated are not
annualized rates of return.
FSA-22
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE
SURVIVORSHIP INCENTIVE LIFE*
EQUITY SERIES (CONCLUDED):
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE AGGRESSIVE STOCK FUND 1999
- ------------------------------ ----
Gross return.................................. 0.87
Net return.................................... 0.81
JUNE 4(A) TO
JUNE 30,
-----------------
WARBURG PINCUS SMALL COMPANY VALUE FUND 1999
- --------------------------------------- ----
Gross return.................................. 3.98
Net return.................................... 3.93
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE SMALL CAP GROWTH FUND 1999
- ------------------------------ ----
Gross return.................................. 5.45
Net return.................................... 5.38
JUNE 4(A) TO
JUNE 30,
-----------------
MFS EMERGING GROWTH COMPANIES FUND 1999
- ---------------------------------- ----
Gross return.................................. 5.38
Net return.................................... 5.34
ASSET ALLOCATION SERIES:
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE CONSERVATIVE INVESTORS FUND 1999
- ------------------------------------ ----
Gross return.................................. 1.45
Net return.................................... 1.39
JUNE 4(A) TO
JUNE 30,
-----------------
EQ/PUTNAM BALANCED FUND 1999
- ----------------------- ----
Gross return.................................. 0.76
Net return.................................... 0.72
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE BALANCED FUND 1999
- ---------------------- ----
Gross return.................................. 2.06
Net return.................................... 2.00
JUNE 4(A) TO
JUNE 30,
-----------------
ALLIANCE GROWTH INVESTORS FUND 1999
- ------------------------------ ----
Gross return.................................. 2.93
Net return.................................... 2.87
JUNE 4(A) TO
JUNE 30,
-----------------
MERRILL LYNCH WORLD STRATEGY FUND 1999
- --------------------------------- ----
Gross return.................................. 2.99
Net return.................................... 2.95
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* Sales of Incentive Life and Survivorship Incentive Life commenced June 4,
1999.
(a) Date as of which net premiums under the policies were first allocated the
Fund. The gross return and net return for the periods indicated are not
annualized rates of return.
FSA-23
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
SURVIVORSHIP 2000(A)
FIXED INCOME SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE MONEY MARKET FUND 1999
- -------------------------- ----
Gross return.................................. 2.28
Net return.................................... 1.82
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND 1999
- ------------------------------------------------ ----
Gross return.................................. (0.99)
Net return.................................... (1.43)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE QUALITY BOND FUND 1999
- ---------------------------
Gross return.................................. (2.38)
Net return.................................... (2.82)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE HIGH YIELD 1999
- ------------------- ----
Gross return.................................. (1.68)
Net return.................................... (2.12)
EQUITY SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
T. ROWE PRICE EQUITY INCOME FUND 1999
- -------------------------------- ----
Gross return.................................. 12.39
Net return.................................... 11.85
SIX MONTHS
ENDED JUNE 30,
-----------------
EQ/PUTNAM GROWTH & INCOME VALUE FUND 1999
- ------------------------------------ ----
Gross return.................................. 10.81
Net return.................................... 10.23
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH & INCOME FUND 1999
- ----------------------------- ----
Gross return.................................. 14.08
Net return.................................... 13.57
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE EQUITY INDEX FUND 1999
- -------------------------- ----
Gross return.................................. 12.01
Net return.................................... 11.51
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-24
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
SURVIVORSHIP 2000(B)
EQUITY SERIES (CONTINUED):
SIX MONTHS
ENDED JUNE 30,
-----------------
MERRILL LYNCH BASIC VALUE EQUITY FUND 1999
- ------------------------------------- ----
Gross return.................................. 21.20
Net return.................................... 20.63
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE COMMON STOCK FUND 1999
- -------------------------- ----
Gross return.................................. 13.69
Net return.................................... 13.18
SIX MONTHS
ENDED JUNE 30,
-----------------
MFS RESEARCH FUND 1999
- ----------------- ----
Gross return.................................. 9.01
Net return.................................... 8.53
JUNE 4(A) TO
JUNE 30,
-----------------
MFS GROWTH WITH INCOME FUND 1999
- --------------------------- ----
Gross return.................................. 1.80
Net return.................................... 1.73
JUNE 4(A) TO
JUNE 30,
-----------------
EQ/ALLIANCE PREMIER GROWTH FUND 1999
- ------------------------------- ----
Gross return.................................. 5.86
Net return.................................... 5.79
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GLOBAL FUND 1999
- -------------------- ----
Gross return.................................. 12.32
Net return.................................... 11.82
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERNATIONAL FUND 1999
- --------------------------- ----
Gross return.................................. 5.85
Net return.................................... 5.38
SIX MONTHS
ENDED JUNE 30,
-----------------
T. ROWE PRICE INTERNATIONAL STOCK FUND 1999
- -------------------------------------- ----
Gross return.................................. 3.33
Net return.................................... 2.84
SIX MONTHS
ENDED JUNE 30,
-----------------
MORGAN STANLEY EMERGING MARKETS EQUITY FUND 1999
- ------------------------------------------- ----
Gross return.................................. 38.24
Net return.................................... 37.51
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and net return for the periods indicated are not
annualized rates of return.
(b) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-25
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
SURVIVORSHIP 2000(A)
EQUITY SERIES (CONCLUDED):
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE AGGRESSIVE STOCK FUND 1999
- ------------------------------ ----
Gross return.................................. 12.38
Net return.................................... 11.88
SIX MONTHS
ENDED JUNE 30,
-----------------
WARBURG PINCUS SMALL COMPANY VALUE FUND 1999
----
- ------------------------------------------
Gross return.................................. 1.13
Net return.................................... 0.65
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE SMALL CAP GROWTH FUND 1999
- ------------------------------ ----
Gross return.................................. (0.49)
Net return.................................... (0.93)
SIX MONTHS
ENDED JUNE 30,
-----------------
MFS EMERGING GROWTH COMPANIES FUND 1999
- ---------------------------------- ----
Gross return.................................. 12.78
Net return.................................... 12.27
ASSET ALLOCATION SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE CONSERVATIVE INVESTORS FUND 1999
- ------------------------------------ ----
Gross return.................................. 4.13
Net return.................................... 3.66
SIX MONTHS
ENDED JUNE 30,
-----------------
EQ/PUTNAM BALANCED FUND 1999
- ----------------------- ----
Gross return.................................. 6.91
Net return.................................... 6.43
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE BALANCED FUND 1999
- ---------------------- ----
Gross return.................................. 6.55
Net return.................................... 6.08
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH INVESTORS FUND 1999
- -------------------------------
Gross return.................................. 10.63
Net return.................................... 10.14
SIX MONTHS
ENDED JUNE 30,
-----------------
MERRILL LYNCH WORLD STRATEGY FUND 1999
- --------------------------------- ----
Gross return.................................. 4.94
Net return.................................... 4.44
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-26
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE PLUS ORIGINAL SERIES*(A)
FIXED INCOME SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
Alliance Money Market Fund.................... 2.28
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Intermediate Government Securities (0.99)
Fund..........................................
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Quality Bond Fund.................... (2.38)
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance High Yield Fund...................... (1.68)
EQUITY SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
T. Rowe Price Equity Income Fund.............. 12.39
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
EQ/Putnam Growth & Income Value Fund.......... 10.81
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Growth & Income Fund................. 14.08
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Equity Index Fund.................... 12.01
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Merrill Lynch Basic Value Equity Fund......... 21.20
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Common Stock Fund.................... 13.69
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
MFS Research Fund............................. 9.01
- -------------------
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
(a) There are no Separate Account asset charges for this policy and therefore
the gross and net rates of return are the same. The gross return for the
period indicated is not an annualized rate of return.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-27
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE PLUS ORIGINAL SERIES*(A)
EQUITY SERIES (CONTINUED):
JUNE 4(B) TO
JUNE 30,
-----------------
1999
----
MFS Growth with Income Fund................... 1.80
JUNE 4(B) TO
JUNE 30,
-----------------
1999
----
EQ/Alliance Premier Growth Fund............... 5.86
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Global Fund.......................... 12.32
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance International Fund................... 5.85
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
T. Rowe Price International Stock Fund........ 3.33
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Morgan Stanley Emerging Markets Equity Fund... 38.24
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Aggressive Stock Fund................ 12.38
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Warburg Pincus Small Company Value Fund....... 1.13
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Small Cap Growth Fund................ (0.49)
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
MFS Emerging Growth Companies Fund............ 12.78
- -------------------
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
(a) There are no Separate Account asset charges for this policy and therefore
the gross and net rates of return are the same.
(b) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return for the periods indicated is not an annualized rate
of return.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-28
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
INCENTIVE LIFE PLUS ORIGINAL SERIES*(A)
ASSET ALLOCATION SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Conservative Investors Fund.......... 4.13
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
EQ/Putnam Balanced Fund....................... 6.91
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Growth Investors Fund................ 10.63
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Alliance Balanced Fund........................ 6.55
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
----
Merrill Lynch World Strategy Fund............. 4.94
- -------------------
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
(a) There are no Separate Account asset charges for this policy and therefore
the gross and net rates of return are the same. The gross return for the
period indicated is not an annualized rate of return.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-29
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
IL PROTECTOR*(A)
FIXED INCOME SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE MONEY MARKET FUND 1999
- -------------------------- ----
Gross return.................................. 2.28
Net return.................................... 1.88
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND 1999
- ------------------------------------------------ ----
Gross return.................................. (0.99)
Net return.................................... (1.38)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE QUALITY BOND FUND 1999
- -------------------------- ----
Gross return.................................. (2.38)
Net return.................................... (2.77)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE HIGH YIELD FUND 1999
- ------------------------ ----
Gross return.................................. (1.68)
Net return.................................... (2.07)
EQUITY SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
T. ROWE PRICE EQUITY INCOME FUND 1999
- -------------------------------- ----
Gross return.................................. 12.39
Net return.................................... 11.91
SIX MONTHS
ENDED JUNE 30,
-----------------
EQ/PUTNAM GROWTH & INCOME VALUE FUND 1999
- ------------------------------------ ----
Gross return.................................. 10.81
Net return.................................... 10.29
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH & INCOME FUND 1999
- ----------------------------- ----
Gross return.................................. 14.08
Net return.................................... 13.63
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE EQUITY INDEX FUND 1999
- -------------------------- ----
Gross return.................................. 12.01
Net return.................................... 11.57
- -------------------
* Sales of Incentive Life Protector commenced on August 5, 1996.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-30
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
IL PROTECTOR*(B)
EQUITY SERIES (CONTINUED):
SIX MONTHS
ENDED JUNE 30,
-----------------
MERRILL LYNCH BASIC VALUE EQUITY FUND 1999
- ------------------------------------- ----
Gross return.................................. 21.20
Net return.................................... 20.69
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE COMMON STOCK FUND 1999
- -------------------------- ----
Gross return.................................. 13.69
Net return.................................... 13.24
SIX MONTHS
ENDED JUNE 30,
-----------------
MFS RESEARCH FUND 1999
- ----------------- ----
Gross return.................................. 9.01
Net return.................................... 8.58
JUNE 4(A) TO
JUNE 30,
-----------------
MFS GROWTH WITH INCOME FUND 1999
- --------------------------- ----
Gross return.................................. 1.80
Net return.................................... 1.74
JUNE 4(A) TO
JUNE 30,
-----------------
EQ/ALLIANCE PREMIER GROWTH FUND 1999
- ------------------------------- ----
Gross return.................................. 5.86
Net return.................................... 5.80
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GLOBAL FUND 1999
- -------------------- ----
Gross return.................................. 12.32
Net return.................................... 11.88
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERNATIONAL FUND 1999
- --------------------------- ----
Gross return.................................. 5.85
Net return.................................... 5.43
SIX MONTHS
ENDED JUNE 30,
-----------------
T. ROWE PRICE INTERNATIONAL STOCK FUND 1999
- -------------------------------------- ----
Gross return.................................. 3.33
Net return.................................... 2.89
SIX MONTHS
ENDED JUNE 30,
-----------------
MORGAN STANLEY EMERGING MARKETS EQUITY FUND 1999
- ---------------------------------------------- ----
Gross return.................................. 38.24
Net return.................................... 37.58
- -------------------
* Sales of Incentive Life Protector commenced on August 5, 1996.
(a) Date as of which net premiums under the policies were first allocated to
the Fund. The gross return and net return for the periods indicated are not
annualized rates of return.
(b) The gross return and net return for the periods indicated are not annualized
rates of return.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-31
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
IL PROTECTOR*(A)
EQUITY SERIES (CONCLUDED):
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE AGGRESSIVE STOCK FUND 1999
- ------------------------------ ----
Gross return.................................. 12.38
Net return.................................... 11.94
SIX MONTHS
ENDED JUNE 30,
-----------------
WARBURG PINCUS SMALL COMPANY VALUE FUND 1999
- --------------------------------------- ----
Gross return.................................. 1.13
Net return.................................... 0.70
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE SMALL CAP GROWTH FUND 1999
- ------------------------------ ----
Gross return.................................. (0.49)
Net return.................................... (0.88)
SIX MONTHS
ENDED JUNE 30,
-----------------
MFS EMERGING GROWTH COMPANIES FUND 1999
- ---------------------------------- ----
Gross return.................................. 12.78
Net return.................................... 12.32
ASSET ALLOCATION SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE CONSERVATIVE INVESTORS FUND 1999
- ------------------------------------ ----
Gross return.................................. 4.13
Net return.................................... 3.71
SIX MONTHS
ENDED JUNE 30,
-----------------
EQ/PUTNAM BALANCED FUND 1999
- -------------------------- ----
Gross return.................................. 6.91
Net return.................................... 6.49
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE BALANCED FUND 1999
- ---------------------- ----
Gross return.................................. 6.55
Net return.................................... 6.13
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH INVESTORS FUND 1999
- ------------------------------ ----
Gross return.................................. 10.63
Net return.................................... 10.19
SIX MONTHS
ENDED JUNE 30,
-----------------
MERRILL LYNCH WORLD STRATEGY FUND 1999
- --------------------------------- ----
Gross return.................................. 4.94
Net return.................................... 4.49
- -------------------
* Sales of Incentive Life Protector commenced on August 5, 1996.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-32
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
JUNE 30, 1999
RATES OF RETURN (CONTINUED):
SP FLEX(A)
FIXED INCOME SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE MONEY MARKET FUND 1999
- -------------------------- ----
Gross return.................................. 2.28
Net return.................................... 1.37
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND 1999
- ------------------------------------------------ ----
Gross return.................................. (0.99)
Net return.................................... (1.87)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE QUALITY BOND FUND 1999
- -------------------------- ----
Gross return.................................. (2.38)
Net return.................................... (3.25)
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE HIGH YIELD FUND 1999
- ------------------------ ----
Gross return.................................. (1.68)
Net return.................................... (2.55)
EQUITY SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH & INCOME FUND 1999
- ----------------------------- ----
Gross return.................................. 14.08
Net return.................................... 13.07
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE EQUITY INDEX FUND 1999
- -------------------------- ----
Gross return.................................. 12.01
Net return.................................... 11.02
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE COMMON STOCK FUND 1999
- -------------------------- ----
Gross return.................................. 13.69
Net return.................................... 12.68
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GLOBAL FUND 1999
- -------------------- ----
Gross return.................................. 12.32
Net return.................................... 11.32
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE INTERNATIONAL 1999
- ---------------------- ----
Gross return.................................. 5.85
Net return.................................... 4.91
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-33
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
JUNE 30, 1999
RATES OF RETURN:
SP FLEX(A)
EQUITY SERIES (CONCLUDED):
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE AGGRESSIVE STOCK FUND 1999
- ------------------------------ ----
Gross return.................................. 12.38
Net return.................................... 11.38
ASSET ALLOCATION SERIES:
SIX MONTHS
ENDED JUNE 30,
-----------------
1999
ALLIANCE CONSERVATIVE INVESTORS FUND
- ------------------------------------ ----
Gross return.................................. 4.13
Net return.................................... 3.20
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE GROWTH INVESTORS FUND 1999
- ------------------------------ ----
Gross return.................................. 10.63
Net return.................................... 9.65
SIX MONTHS
ENDED JUNE 30,
-----------------
ALLIANCE BALANCED FUND 1999
- ---------------------- ----
Gross return.................................. 6.55
Net return.................................... 5.61
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
(a) The gross return and net return for the periods indicated are not annualized
rates of return.
FSA-34
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
----------------- -----------------
(In Millions)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 19,204.4 $ 18,993.7
Held to maturity, at amortized cost..................................... 128.9 125.0
Mortgage loans on real estate............................................. 3,269.7 2,809.9
Equity real estate........................................................ 1,522.4 1,676.9
Policy loans.............................................................. 2,160.3 2,086.7
Other equity investments.................................................. 758.0 713.3
Investment in and loans to affiliates..................................... 1,114.3 928.5
Other invested assets..................................................... 696.3 808.2
----------------- -----------------
Total investments..................................................... 28,854.3 28,142.2
Cash and cash equivalents................................................... 907.9 1,245.5
Deferred policy acquisition costs........................................... 3,714.4 3,563.8
Other assets................................................................ 3,428.8 3,054.6
Closed Block assets......................................................... 8,592.9 8,632.4
Separate Accounts assets.................................................... 48,440.4 43,302.3
----------------- -----------------
Total Assets................................................................ $ 93,938.7 $ 87,940.8
================= =================
LIABILITIES
Policyholders' account balances............................................. $ 21,184.4 $ 20,857.5
Future policy benefits and other policyholders' liabilities................. 4,761.2 4,726.4
Short-term and long-term debt............................................... 1,624.9 1,181.7
Other liabilities........................................................... 3,695.2 3,474.3
Closed Block liabilities.................................................... 9,041.3 9,077.0
Separate Accounts liabilities............................................... 48,333.0 43,211.3
----------------- -----------------
Total liabilities..................................................... 88,640.0 82,528.2
----------------- -----------------
Commitments and contingencies (Note 10)
SHAREHOLDER'S EQUITY
Common stock, $1.25 par value, 2.0 million shares authorized,
issued and outstanding.................................................... 2.5 2.5
Capital in excess of par value.............................................. 3,110.2 3,110.2
Retained earnings........................................................... 2,347.4 1,944.1
Accumulated other comprehensive (loss) income............................... (161.4) 355.8
----------------- -----------------
Total shareholder's equity............................................ 5,298.7 5,412.6
----------------- -----------------
Total Liabilities and Shareholder's Equity.................................. $ 93,938.7 $ 87,940.8
================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------- ---------------------------------
1999 1998 1999 1998
--------------- --------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C> <C>
REVENUES
Universal life and investment-type
product policy fee income........................ $ 307.8 $ 257.5 $ 604.5 $ 517.1
Premiums........................................... 130.7 142.6 265.6 289.1
Net investment income.............................. 573.7 565.8 1,142.2 1,165.9
Investment gains, net.............................. 73.4 33.2 54.1 105.6
Commissions, fees and other income................. 511.7 395.9 996.3 773.0
Contribution from the Closed Block................. 23.0 27.9 41.9 42.4
--------------- --------------- --------------- ---------------
Total revenues............................... 1,620.3 1,422.9 3,104.6 2,893.1
--------------- --------------- --------------- ---------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account
balances......................................... 269.6 283.4 539.8 582.9
Policyholders' benefits............................ 253.9 258.2 494.7 520.4
Other operating costs and expenses................. 774.0 561.2 1,417.5 1,127.5
--------------- --------------- --------------- ---------------
Total benefits and other deductions.......... 1,297.5 1,102.8 2,452.0 2,230.8
--------------- --------------- --------------- ---------------
Earnings from continuing operations before
Federal income taxes and minority interest....... 322.8 320.1 652.6 662.3
Federal income taxes............................... 58.3 90.8 158.7 190.7
Minority interest in net income of
consolidated subsidiaries........................ 41.9 32.3 84.0 61.8
--------------- --------------- --------------- ---------------
Earnings from continuing operations................ 222.6 197.0 409.9 409.8
Discontinued operations, net of Federal income
taxes............................................ (1.3) 1.3 (6.6) 1.8
--------------- --------------- --------------- ---------------
Net Earnings....................................... $ 221.3 $ 198.3 $ 403.3 $ 411.6
=============== =============== =============== ===============
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
----------------- -----------------
(In Millions)
<S> <C> <C>
SHAREHOLDER'S EQUITY
Common stock, at par value, beginning of year and end of period............. $ 2.5 $ 2.5
----------------- -----------------
Capital in excess of par value, beginning of year and end of period......... 3,110.2 3,105.8
----------------- -----------------
Retained earnings, beginning of year........................................ 1,944.1 1,235.9
Net earnings................................................................ 403.3 411.6
----------------- -----------------
Retained earnings, end of period............................................ 2,347.4 1,647.5
----------------- -----------------
Accumulated other comprehensive income, beginning of year................... 355.8 516.3
Other comprehensive (loss) income........................................... (517.2) 39.2
----------------- -----------------
Accumulated other comprehensive (loss) income, end of period................ (161.4) 555.5
----------------- -----------------
Total Shareholder's Equity, End of Period................................... $ 5,298.7 $ 5,311.3
================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
----------------- -----------------
(In Millions)
<S> <C> <C>
Net earnings................................................................ $ 403.3 $ 411.6
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Interest credited to policyholders' account balances.................... 539.8 582.9
Universal life and investment-type policy fee income.................... (604.5) (517.1)
Investment gains........................................................ (54.1) (105.6)
Change in Federal income tax payable.................................... 78.8 44.9
Other, net.............................................................. (204.8) (50.1)
----------------- -----------------
Net cash provided by operating activities................................... 158.5 366.6
----------------- -----------------
Cash flows from investing activities:
Maturities and repayments................................................. 1,046.6 1,005.1
Sales.................................................................... 4,630.4 8,648.5
Purchases................................................................. (7,048.7) (9,779.6)
Decrease in short-term investments........................................ 193.5 215.5
Decrease in loans to discontinued operations.............................. - 300.0
Other, net................................................................ (190.8) (393.3)
----------------- -----------------
Net cash used by investing activities....................................... (1,369.0) (3.8)
----------------- -----------------
Cash flows from financing activities:
Policyholders' account balances:
Deposits................................................................ 1,191.1 618.9
Withdrawals............................................................. (806.3) (938.0)
Increase in short-term financings......................................... 559.5 443.9
Repayments of long-term debt.............................................. (6.2) (6.3)
Payment of obligation to fund accumulated deficit of
discontinued operations................................................. - (87.2)
Other, net................................................................ (65.2) (34.6)
----------------- -----------------
Net cash provided (used) by financing activities............................ 872.9 (3.3)
----------------- -----------------
Change in cash and cash equivalents......................................... (337.6) 359.5
Cash and cash equivalents, beginning of year................................ 1,245.5 300.5
----------------- -----------------
Cash and Cash Equivalents, End of Period.................................... $ 907.9 $ 660.0
================= =================
Supplemental cash flow information:
Interest Paid............................................................. $ 56.4 $ 84.5
================= =================
Income Taxes Paid......................................................... $ 26.3 $ 186.7
================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1) BASIS OF PRESENTATION
The accompanying consolidated financial statements are prepared in
conformity with 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. These statements should be read in
conjunction with the consolidated financial statements of the Company for
the year ended December 31, 1998. The results of operations for the six
months ended June 30, 1999 are not necessarily indicative of the results
to be expected for the full year.
The terms "second quarter 1999" and "second quarter 1998" refer to the
three months ended June 30, 1999 and 1998, respectively. The terms "first
half of 1999" and "first half of 1998" refer to the six months ended June
30, 1999 and 1998, respectively.
Certain reclassifications have been made in the amounts presented for
prior periods to conform those periods with the current presentation.
2) NEW ACCOUNTING PRONOUNCEMENTS
In June 1999, the FASB issued SFAS No. 137, "Accounting for Derivative
Instruments and Hedging Activities - Deferral of the Effective Date of
FASB Statement No. 133," which defers the effective date of SFAS No. 133
to all fiscal quarters of all fiscal years beginning after June 15, 2000.
The Company expects to adopt SFAS No. 133 effective January 1, 2001.
3) DEFERRED POLICY ACQUISITION COSTS
As part of its asset/liability management process, in second quarter 1999,
management initiated a review of the matching of invested assets to
Insurance product lines given their different liability characteristics
and liquidity requirements. As a result of this review, management
reallocated the current and prospective interests of the various product
lines in the invested assets. These asset reallocations and the related
changes in investment yields by product line, in turn, triggered a review
of and revisions to the estimated future gross profits used to determine
the amortization of DAC for universal life and investment-type products.
The revisions to estimated future gross profits resulted in an after-tax
writedown of DAC of $85.6 million (net of a Federal income tax benefit of
$46.1 million) for the three and six months ended June 30, 1999.
F-5
<PAGE>
4) INVESTMENTS
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
Six Months Ended
June 30,
-----------------------------------
1999 1998
--------------- ---------------
(In Millions)
<S> <C> <C>
Balances, beginning of year............................................... $ 230.6 $ 384.5
Additions charged to income............................................... 23.9 50.4
Deductions for writedowns and asset dispositions.......................... (74.6) (80.6)
--------------- ---------------
Balances, End of Period................................................... $ 179.9 $ 354.3
=============== ===============
Balances, end of period:
Mortgage loans on real estate........................................... $ 31.3 $ 29.2
Equity real estate...................................................... 148.6 325.1
--------------- ---------------
Total..................................................................... $ 179.9 $ 354.3
=============== ===============
</TABLE>
For the second quarter and first half of 1999 and of 1998, investment
income is shown net of investment expenses of $53.1 million, $113.3
million, $64.3 million and $144.6 million, respectively.
As of June 30, 1999 and December 31, 1998, fixed maturities classified as
available for sale had amortized costs of $19,438.4 million and $18,453.8
million and fixed maturities in the held to maturity portfolio had
estimated fair values of $128.9 million and $125.0 million, respectively.
Other equity investments include equity securities with carrying values of
$140.5 million and $150.6 million and costs of $39.6 million and $58.3
million as of June 30, 1999 and December 31, 1998, respectively.
On January 1, 1999, investments in publicly-traded common equity
securities in the General Account portfolio within other equity
investments amounting to $102.3 million were transferred from available
for sale securities to trading securities. As a result of this transfer,
unrealized investment gains of $83.3 million ($43.2 million net of related
DAC and Federal income taxes) were recognized as realized investment gains
in the consolidated statements of earnings. In the second quarter and
first half of 1999, $27.8 million ($16.1 million net of related DAC and
Federal income taxes) and $99.2 million ($53.2 million net of related DAC
and Federal income taxes) of increases in fair value on the trading
portfolios were recognized as net investment income in the consolidated
statements of earnings. These trading securities had a carrying value of
$118.2 million and costs of $3.8 million at June 30, 1999.
For the first half of 1999 and of 1998, proceeds received on sales of
fixed maturities classified as available for sale amounted to $4,390.9
million and $8,380.5 million, respectively. Gross gains of $40.0 million
and $89.9 million and gross losses of $89.5 million and $47.0 million were
realized on these sales for the first half of 1999 and of 1998,
respectively. Unrealized investment gains related to fixed maturities
classified as available for sale decreased by $773.9 million in the first
half of 1999, resulting in a balance of $234.0 million of unrealized
investment losses at June 30, 1999.
F-6
<PAGE>
Impaired mortgage loans along with the related provision for losses were
as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
--------------- -----------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses....................... $ 117.6 $ 125.4
Impaired mortgage loans without provision for losses.................... 1.8 8.6
--------------- -----------------
Recorded investment in impaired mortgage loans.......................... 119.4 134.0
Provision for losses.................................................... (25.9) (29.0)
--------------- -----------------
Net Impaired Mortgage Loans............................................. $ 93.5 $ 105.0
=============== =================
</TABLE>
During the first half of 1999 and of 1998, respectively, the Company's
average recorded investment in impaired mortgage loans was $129.0 million
and $188.5 million. Interest income recognized on these impaired mortgage
loans totaled $4.5 million and $6.6 million ($.1 million and $.9 million
recognized on a cash basis) for the first half of 1999 and 1998,
respectively.
5) SALE OF DLJ STOCK
During the second quarter of 1999, DLJ completed its offering of a new
class of its common stock to track the financial performance of DLJdirect,
its online brokerage business. As a result of this offering, the Company
recorded a non-cash pre-tax realized gain of $95.8 million.
6) CLOSED BLOCK
Summarized financial information for the Closed Block is as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
----------------- -----------------
(In Millions)
<S> <C> <C>
Assets
Fixed maturities:
Available for sale, at estimated fair value (amortized cost of
$4,068.9 and $4,149.0)............................................. $ 4,062.3 $ 4,373.2
Mortgage loans on real estate.......................................... 1,709.3 1,633.4
Policy loans........................................................... 1,615.1 1,641.2
Cash and other invested assets......................................... 128.5 86.5
Deferred policy acquisition costs...................................... 834.8 676.5
Other assets........................................................... 242.9 221.6
----------------- -----------------
Total Assets........................................................... $ 8,592.9 $ 8,632.4
================= =================
Liabilities
Future policy benefits and other policyholders' account balances....... $ 9,010.3 $ 9,013.1
Other liabilities...................................................... 31.0 63.9
----------------- -----------------
Total Liabilities...................................................... $ 9,041.3 $ 9,077.0
================= =================
</TABLE>
F-7
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------- ---------------------------------
1999 1998 1999 1998
--------------- --------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C> <C>
Revenues
Premiums and other income................ $ 156.4 $ 165.9 $ 312.4 $ 333.0
Investment income (net of investment
expenses of $4.8, $5.4, $10.0 and
$10.8)................................. 145.2 145.3 287.2 281.7
Investment gains (losses), net........... 3.4 2.8 1.5 (1.9)
--------------- --------------- --------------- ---------------
Total revenues........................... 305.0 314.0 601.1 612.8
--------------- --------------- --------------- ---------------
Benefits and Other Deductions
Policyholders' benefits and dividends.... 260.5 267.5 526.9 544.8
Other operating costs and expenses....... 21.5 18.6 32.3 25.6
--------------- --------------- --------------- ---------------
Total benefits and other deductions...... 282.0 286.1 559.2 570.4
--------------- --------------- --------------- ---------------
Contribution from the Closed Block....... $ 23.0 $ 27.9 $ 41.9 $ 42.4
=============== =============== =============== ===============
</TABLE>
Investment valuation allowances amounted to $8.5 million and $11.1 million
on mortgage loans and $13.7 million and $15.4 million on equity real
estate at June 30, 1999 and December 31, 1998, respectively.
Impaired mortgage loans along with the related provision for losses were
as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
----------------- -----------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 32.4 $ 55.5
Impaired mortgage loans without provision for losses................... 4.4 7.6
----------------- -----------------
Recorded investment in impaired mortgages.............................. 36.8 63.1
Provision for losses................................................... (7.5) (10.1)
----------------- -----------------
Net Impaired Mortgage Loans............................................ $ 29.3 $ 53.0
================= =================
</TABLE>
During the first half of 1999 and of 1998, respectively, the Closed
Block's average recorded investment in impaired mortgage loans was $45.4
million and $108.8 million. Interest income recognized on these impaired
mortgage loans totaled $1.5 million and $3.1 million ($1.5 million
recognized on a cash basis for the first half of 1998) for the first half
of 1999 and 1998, respectively.
F-8
<PAGE>
7) DISCONTINUED OPERATIONS
Summarized financial information for discontinued operations follows:
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
----------------- -----------------
(In Millions)
<S> <C> <C>
Assets
Mortgage loans on real estate.......................................... $ 518.5 $ 553.9
Equity real estate..................................................... 563.2 611.0
Other equity investments............................................... 89.1 115.1
Other invested assets.................................................. 51.7 24.9
----------------- -----------------
Total investments.................................................... 1,222.5 1,304.9
Cash and cash equivalents.............................................. - 34.7
Other assets........................................................... 222.1 219.0
----------------- -----------------
Total Assets........................................................... $ 1,444.6 $ 1,558.6
================= =================
Liabilities
Policyholders liabilities.............................................. $ 1,008.8 $ 1,021.7
Allowance for future losses............................................ 291.2 305.1
Other liabilities...................................................... 144.6 231.8
----------------- -----------------
Total Liabilities...................................................... $ 1,444.6 $ 1,558.6
================= =================
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------- ---------------------------------
1999 1998 1999 1998
--------------- --------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C> <C>
Revenues
Investment income (net of investment
expenses of $12.4, $18.0, $25.5
and $37.5)............................. $ 22.9 $ 50.5 $ 42.5 $ 78.5
Investment (losses) gains, net........... (3.5) 27.6 (10.5) 33.2
Other income, net........................ - - - (.1)
--------------- --------------- --------------- ---------------
Total revenues........................... 19.4 78.1 32.0 111.6
Benefits and Other Deductions............ 29.0 36.1 54.4 74.6
(Losses charged) earnings credited
to allowance for future losses......... (9.6) 42.0 (22.4) 37.0
--------------- --------------- --------------- ---------------
Pre-tax loss from operations............. - - - -
Pre-tax (loss from strengthening)
earnings from releasing the
allowance for future losses............ (1.9) 2.0 (10.1) 2.7
Federal income tax benefit (expense)..... .6 (.7) 3.5 (.9)
--------------- --------------- --------------- ---------------
(Loss) Earnings from Discontinued
Operations............................. $ (1.3) $ 1.3 $ (6.6) $ 1.8
=============== =============== =============== ===============
</TABLE>
The Company's quarterly process for evaluating the allowance for future
losses applies the current period's results of discontinued operations
against the allowance, re-estimates future losses, and adjusts the
allowance, if appropriate. The evaluations performed as of June 30, 1999
and 1998 resulted in management's decision to strengthen the allowance by
$10.1 million and release the allowance by $2.7 million for the six months
ended June 30, 1999 and 1998, respectively. This resulted in after-tax
losses of $6.6 million for the first half of 1999 and after-tax earnings
of $1.8 million for the first half of 1998.
F-9
<PAGE>
Management believes the allowance for future losses at June 30, 1999 is
adequate to provide for all future losses; however, the determination of
the allowance involves numerous estimates and subjective judgments
regarding the expected performance of Discontinued Operations Investment
Assets. There can be no assurance the losses provided for will not differ
from the losses ultimately realized. To the extent actual results or
future projections of discontinued operations differ from management's
current estimates and assumptions underlying the allowance for future
losses, the difference would be reflected in the consolidated statements
of earnings in discontinued operations. In particular, to the extent
income, sales proceeds and holding periods for equity real estate differ
from management's previous assumptions, periodic adjustments to the
allowance are likely to result.
Investment valuation allowances amounted to $4.5 million and $3.0 million
on mortgage loans and $42.0 million and $34.8 million on equity real
estate at June 30, 1999 and December 31, 1998, respectively.
Impaired mortgage loans along with the related provision for losses were
as follows:
<TABLE>
<CAPTION>
June 30, December 31,
1999 1998
----------------- -----------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 19.6 $ 6.7
Impaired mortgage loans without provision for losses................... - 8.5
----------------- -----------------
Recorded investment in impaired mortgages.............................. 19.6 15.2
Provision for losses................................................... (3.6) (2.1)
----------------- -----------------
Net Impaired Mortgage Loans............................................ $ 16.0 $ 13.1
================= =================
</TABLE>
During the first half of 1999 and of 1998, discontinued operations'
average recorded investment in impaired mortgage loans was $16.6 million
and $121.5 million, respectively. Interest income recognized on these
impaired mortgage loans totaled $.9 million and $4.0 million ($3.4 million
recognized on a cash basis for the first half of 1998) in the first half
of 1999 and 1998, respectively.
Benefits and other deductions included $5.8 million and $15.9 million of
interest expense related to amounts borrowed from continuing operations
for the second quarter and first half of 1998.
8) 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.
9) RESTRUCTURING COSTS
At June 30, 1999, the restructuring liabilities included costs related to
employee termination and exit costs, the termination of operating leases
and the consolidation of insurance operations' service centers and
amounted to $15.6 million. The amounts paid during the first half of 1999
totaled $8.7 million.
10) LITIGATION
There have been no new material legal proceedings and no material
developments in specific litigations previously reported in the Company's
Notes to Consolidated Financial Statements for the year ended December 31,
1998, except as follows:
F-10
<PAGE>
In Rickel, the complaint was dismissed in April 1999 by the Court.
Plaintiff has filed an appeal. Although there can be no assurance, DLJ's
management does not believe that the ultimate outcome of this litigation
will have a material adverse effect on DLJ's consolidated financial
condition or DLJ's results of operations in any particular period.
The Dayton Monetary Associates and Mid-American Waste Systems actions have
been settled without a material adverse effect on DLJ's consolidated
financial condition or results of operation in any particular period.
In November 1998, three purported class actions (Gillet v. Goldman, Sachs
& Co. et al., Prager v. Goldman, Sachs & Co. et al. and Holzman v.
Goldman, Sachs & Co. et al.) were filed in the U.S. District Court for the
Southern District of New York against more than 25 underwriters of initial
public offering securities, including DLJSC. The complaints allege that
defendants conspired to fix the "fee" paid for underwriting initial public
offering securities by setting the underwriters' discount or "spread" at
7%, in violation of the federal antitrust laws. The complaints seek treble
damages in an unspecified amount and injunctive relief as well as
attorneys' fees and costs. On March 15, 1999, the plaintiffs filed a
Consolidated Amended Complaint captioned In re Public Offering Fee
Antitrust Litigation. A motion by all defendants to dismiss the complaints
on several grounds is pending. Separately, the U.S. Department of Justice
has issued a Civil Investigative Demand to several investment banking
firms, including DLJSC, seeking documents and information relating to
"alleged" price-fixing with respect to underwriting spreads in initial
public offerings. The government has not made any charges against DLJSC or
the other investment banking firms. DLJSC is cooperating with the Justice
Department in providing the requested information and believes that no
violation of law by DLJSC has occurred. Although there can be no
assurance, DLJ's management does not believe that the ultimate outcome of
these matters will have a material adverse effect on DLJ's consolidated
financial condition. Based upon the information currently available to it,
DLJ's management cannot predict whether or not these matters will have a
material adverse effect on DLJ's results of operations in any particular
period.
In addition to the matters previously reported and the matters described
above, Equitable Life and its subsidiaries and DLJ and its subsidiaries
are involved in various legal actions and proceedings in connection with
their businesses. Some of the actions and proceedings have been brought on
behalf of various alleged classes of claimants and certain of these
claimants seek damages of unspecified amounts. While the ultimate outcome
of such matters cannot be predicted with certainty, in the opinion of
management no such matter is likely to have a material adverse effect on
the Company's consolidated financial position or results of operations.
F-11
<PAGE>
11) BUSINESS SEGMENT INFORMATION
<TABLE>
<CAPTION>
Investment
Insurance Services Elimination Total
--------------- ----------------- --------------- -----------------
(In Millions)
Three Months Ended
June 30, 1999
---------------------------------------
<S> <C> <C> <C> <C>
Segment revenues..................... $ 1,075.6 $ 469.0 $ (1.5) $ 1,543.1
Investment (losses) gains and other.. (21.2) 98.4 - 77.2
--------------- ----------------- --------------- -----------------
Total Revenues....................... $ 1,054.4 $ 567.4 $ (1.5) $ 1,620.3
=============== ================= =============== =================
Pre-tax operating earnings........... $ 226.3 $ 105.3 $ - $ 331.6
Investment (losses) gains, net of
related DAC and other charges...... (21.9) 98.2 - 76.3
Non-recurring DAC adjustments........ (131.7) - - (131.7)
Pre-tax minority interest............ - 46.6 - 46.6
--------------- ----------------- --------------- -----------------
Earnings from Continuing
Operations......................... $ 72.7 $ 250.1 $ - $ 322.8
=============== ================= =============== =================
</TABLE>
<TABLE>
<CAPTION>
Three Months Ended
June 30, 1998
---------------------------------------
<S> <C> <C> <C> <C>
Segment revenues..................... $ 1,012.2 $ 379.0 $ (1.5) $ 1,389.7
Investment gains..................... 33.1 .1 - 33.2
--------------- ----------------- --------------- -----------------
Total Revenues....................... $ 1,045.3 $ 379.1 $ (1.5) $ 1,422.9
=============== ================= =============== =================
Pre-tax operating earnings........... $ 179.8 $ 86.4 $ - $ 266.2
Investment gains (losses) net of
related DAC and other charges...... 17.2 (.4) - 16.8
Pre-tax minority interest............ - 37.1 - 37.1
--------------- ----------------- --------------- -----------------
Earnings from Continuing
Operations......................... $ 197.0 $ 123.1 $ - $ 320.1
=============== ================= =============== =================
</TABLE>
F-12
<PAGE>
<TABLE>
<CAPTION>
Investment
Insurance Services Elimination Total
--------------- ----------------- --------------- -----------------
(In Millions)
Six Months Ended
June 30, 1999
---------------------------------------
<S> <C> <C> <C> <C>
Segment revenues..................... $ 2,118.2 $ 925.2 $ (2.9) $ 3,040.5
Investment (losses) gains and other.. (44.7) 108.8 - 64.1
--------------- ----------------- --------------- -----------------
Total Revenues....................... $ 2,073.5 $ 1,034.0 $ (2.9) $ 3,104.6
=============== ================= =============== =================
Pre-tax operating earnings........... $ 447.5 $ 191.4 $ - $ 638.9
Investment (losses) gains, net of
related DAC and other charges...... (56.9) 108.4 - 51.5
Non-recurring DAC adjustments........ (131.7) - - (131.7)
Pre-tax minority interest............ - 93.9 - 93.9
--------------- ----------------- --------------- -----------------
Earnings from Continuing
Operations......................... $ 258.9 $ 393.7 $ - $ 652.6
=============== ================= =============== =================
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
June 30, 1998
---------------------------------------
<S> <C> <C> <C> <C>
Segment revenues..................... $ 2,053.5 $ 736.7 $ (2.7) $ 2,787.5
Investment gains..................... 74.0 31.6 - 105.6
--------------- ----------------- --------------- -----------------
Total Revenues....................... $ 2,127.5 $ 768.3 $ (2.7) $ 2,893.1
=============== ================= =============== =================
Pre-tax operating earnings........... $ 354.1 $ 163.9 $ - $ 518.0
Investment gains, net of related
DAC and other charges.............. 49.7 24.0 - 73.7
Pre-tax minority interest............ - 70.6 - 70.6
--------------- ----------------- --------------- -----------------
Earnings from Continuing
Operations......................... $ 403.8 $ 258.5 $ - $ 662.3
=============== ================= =============== =================
Total Assets:
June 30, 1999........................ $ 81,206.5 $ 12,844.0 $ (111.8) $ 93,938.7
=============== ================= =============== =================
December 31, 1998.................... $ 75,626.0 $ 12,379.2 $ (64.4) $ 87,940.8
=============== ================= =============== =================
F-13
</TABLE>
<PAGE>
12) COMPREHENSIVE INCOME
The components of comprehensive income (loss) for the second quarter 1999
and 1998 and the first half of 1999 and 1998 are as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------------- ---------------------------------
1999 1998 1999 1998
--------------- --------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C> <C>
Net earnings............................. $ 221.3 $ 198.3 $ 403.3 $ 411.6
--------------- --------------- --------------- ---------------
Change in unrealized (losses) gains,
net of reclassification adjustment..... (274.2) 16.1 (517.2) 39.2
--------------- --------------- --------------- ---------------
Other comprehensive (loss) income........ (274.2) 16.1 (517.2) 39.2
--------------- --------------- --------------- ---------------
Comprehensive (Loss) Income.............. $ (52.9) $ 214.4 $ (113.9) $ 450.8
=============== =============== =============== ===============
</TABLE>
F-14
<PAGE>
APPENDIX B
- --------------------------------------------------------------------------------
B-1
- --------------------------------------------------------------------------------
DATES OF PREVIOUS PROSPECTUSES AND SUPPLEMENTS
This supplement updates
<TABLE>
<CAPTION>
the prospectuses dated which relate to our
- ---------------------- -------------------
<S> <C>
July 25, 1996; January 1, 1997; and May 1, 1997-99.......... IL Protector(R)Policies
December 19, 1994; May 1, 1995-99; September 15, 1995; and
January 1, 1997............................................. Incentive Life Plus and our IL COLI(1) Policies
November 27, 1991; May 1, 1993-95, 97-98; and
September 15, 1995.......................................... Special Offer Policies(2)
August 18, 1992; May 1, 1993-99; and January 1, 1997........ Survivorship 2000 Policies
November 27, 1991 and May 1, 1993-94........................ Incentive Life 2000 and our Champion 2000 Policies
August 29, 1989; February 27, 1991; May 1,
1990, 93-94; May 1, 1999.................................... Incentive Life Policies
May 1, 1999................................................. Survivorship Incentive Life Policies
</TABLE>
In addition,
o If the date of your prospectus was prior to May 1, 1997, you also have
subsequently received other prospectus updating supplements dated May 1,
1997, 1998 and 1999, and you may also have received supplements dated May
1, 1996, January 1, 1997 and February 28, 1998.
o If the date of your prospectus was May 1, 1997 you have received an
updating supplement dated May 1, 1998 and 1999, and if the date of your
prospectus was May 1, 1998 you have received an updating supplement dated
May 1, 1999.
In any case, these supplements are still relevant and you should retain them
with your prospectus.
- --------------------------------
(1) If you have our "IL COLI" policy, this supplement relates to an Incentive
Life Plus prospectus for one of the indicated dates (but not earlier than
September 15, 1995) that you received, together with our IL COLI supplement
dated the same date as that prospectus.
(2) If you have our Special Offer Policy, this supplement relates to an
Incentive Life 2000 or Incentive Life Plus prospectus for one of the
indicated dates that you received, together with a related Special Offer
Policy supplement. If the prospectus you received was dated May 1, 1994 or
earlier, it was our Incentive Life 2000 prospectus with a Special Offer
Policy supplement dated November 27, 1991, January 29, 1993, or May 1,
1993-95. If the prospectus you received was dated after May 1, 1994, it was
our Incentive Life Plus prospectus with a Special Offer Policy supplement
dated May 1, 1995-96 or September 15, 1995.
<PAGE>
PART II
REPRESENTATION REGARDING REASONABLENESS OF
AGGREGATE POLICY FEES AND CHARGES
Equitable represents that the fees and charges deducted under the Policies
described in this Registration Statement, in the aggregate, are reasonable in
relation to the services rendered, the expenses to be incurred, and the risks
assumed by Equitable under the Policies, Equitable bases its representation on
its assessment of all of the facts and circumstances, including such relevant
factors as: the nature and extent of such services, expenses and risks, the need
for Equitable to earn a profit, the degree to which the Policies include
innovative features, and regulatory standards for the grant of exemptive relief
under the Investment Company Act of 1940 used prior to October 1996, including
the range of industry practice. This representation applies to all policies sold
pursuant to this Registration Statement, including those sold on the terms
specifically described in the prospectuses contained herein, or any variations
therein, based on supplements, data pages or riders to any policies or
prospectuses, or otherwise.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following papers and documents:
The facing sheet.
Reconciliation and Tie, previously filed with this Registration Statement
File No. 333-17671 on December 11, 1996.
The Prospectus of Equitable Variable dated May 1, 1994, previously filed with
this Registration Statement, File No. 333-17671 on April 28, 1998.
The Supplement dated May 1, 1999 consisting of 122 pages, previously filed with
this Registration Statement, File No. 333-17671 on April 27, 1999.
The Supplement dated August 30, 1999, consisting of 79 pages.
The Supplement, dated August 30, 1999, relating to the substitution of shares,
consisting of 1 page.
Representation regarding reasonableness of aggregate policy fees and charges.
Undertaking to file reports, previously filed with this Registration Statement
File No. 333-17671 on December 11, 1996.
Undertaking pursuant to Rule 484(b)(1) under the Securities Act of 1933,
previously filed with this Registration Statement File No. 333-17671 on
December 11, 1996.
The signatures.
Written Consents of the following persons:
Opinion and Consent of William Schor, Vice President and Associate
General Counsel of Equitable (See Exhibit 2(a)(iv)).
Independent Public Accountants (See exhibit 6).
The following exhibits: Exhibit required by Article IX, paragraph A of Form
N-8B-2:
<TABLE>
<CAPTION>
<S> <C>
1-A(1)(a)(i) Certified resolutions re Authority to Market Variable Life Insurance and Establish
Separate Accounts, previously filed with this Registration Statement File No. 333-
17671 on December 11, 1996.
1-A(2) Inapplicable.
</TABLE>
II-1
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
1-A(3)(a) See Exhibit 1-A(8).
1-A(3)(b) Broker-Dealer and General Agent Sales Agreement, previously filed with this
Registration Statement File No. 333-17671 on December 11, 1996.
1-A(3)(c) See Exhibit 1-A(8)(i).
1-A(4) Inapplicable.
1-A(5)(a) Modified Premium Variable Whole Life Insurance Policy (90-400), previously filed
with this Registration Statement File No. 333-17671 on December 11, 1996.
1-A(5)(b) Name Change Endorsement (S.97-1), previously filed with this Registration Statement
File No. 333-17671 on December 11, 1996.
+ 1-A(5)(c) Accidental Death Benefit Rider (R90-209), previously filed with this Registration
Statement File No. 333-17671 on December 11, 1996.
+ 1-A(5)(d) Term Insurance Rider on Additional Insured (R90-210), previously filed with this
Registration Statement File No. 333-17671 on December 11, 1996.
+ 1-A(5)(e) Children's Term Insurance Rider (R90-211), previously filed with this Registration
Statement File No. 333-17671 on December 11, 1996.
+ 1-A(5)(f) Disability Premium Waiver Rider (R90-213), previously filed with this Registration
Statement File No. 333-17671 on December 11, 1996.
+ 1-A(5)(g) Substitution of Insured Rider (R90-214), previously filed with this Registration
Statement File No. 333-17671 on December 11, 1996.
+ 1-A(5)(h) Term Insurance Rider on Insured (R90-215), previously filed with this Registration
Statement File No. 333-17671 on December 11, 1996.
1-A(5)(i) Limitation on Amount of Insurance Rider (R90-211NY), previously filed with this
Registration Statement File No. 333-17671 on December 11, 1996.
1-A(5)(j) Accelerated Death Benefit Rider, previously filed with this Registration Statement File
No. 333-17671 on December 11, 1996.
1-A(5)(k) Free Look Rider, previously filed with this Registration Statement File No. 333-
17671 on December 11, 1996.
1-A(6)(a) Declaration and Charter of Equitable, as amended January 1, 1997, previously filed with this Registration
Statement File No. 333-17671 on April 30, 1997.
1-A(6)(b) By-Laws of Equitable, as amended November 21, 1996, previously filed with this Registration Statement
File No. 333-17671 on April 30, 1997.
1-A(7) Inapplicable.
1-A(8) Distribution and Servicing Agreement among EQ Financial Consultants, Inc.
(formerly known as Equico Securities Inc.), Equitable and Equitable Variable
dated as of May 1, 1994, previously filed with this Registration Statement File
No. 333-17671 on December 11, 1996.
</TABLE>
- ---------------------------
+State variations not included.
II-2
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
1-A(8)(i) Schedule of Commissions, previously filed with this Registration Statement File
No. 333-17671 on December 11, 1996.
1-A(9)(a) Agreement and Plan of Merger of Equitable Variable with and into Equitable dated
September 19, 1996, previously filed with this Registration Statement File No. 333-
17671 on December 11, 1996.
1-A(9)(b) Form of Participation Agreement among EQ Advisors Trust, Equitable,
Equitable Distributors, Inc. and EQ Financial Consultants, Inc.,
incorporated by reference to the Registration Statement of EQ Advisors
Trust on Form N-1A (File Nos. 333-17217 and 811-07953).
1-A(10)(a) Application EV4-200X, previously filed with this Registration Statement File No.
333-17671 on December 11, 1996.
Other Exhibits:
2(a)(i) Opinion and Consent of Mary P. Breen, Vice President and Associate General
Counsel of Equitable, previously filed with this Registration Statement File No.
333-17671 on December 11, 1996.
2(a)(ii) Opinion and Consent of Mary P. Breen, Vice President and Associate General
Counsel of Equitable, previously filed with this Registration Statement File No.
333-17671 on April 30, 1997.
2(a)(iii) Opinion and Consent of William Schor, Vice President and Associate General
Counsel of Equitable, previously filed with this Registration Statement, File
No. 333-17671 on April 27, 1999.
2(a)(iv) Opinion and Consent of William Schor, Vice President and Associate General
Counsel of Equitable.
2(b)(i) Opinion and Consent of Barbara Fraser, F.S.A., M.A.A.A., Vice President of
Equitable, previously filed with this Registration Statement File No. 333-17671
on December 11, 1996.
2(b)(ii) Opinion and Consent of Barbara Fraser, F.S.A., M.A.A.A., Vice President of
Equitable, previously filed with this Registration Statement File No. 333-17671
on December 11, 1996.
2(b)(iii) Consent of Barbara Fraser, F.S.A., M.A.A.A., Vice President of Equitable
relating to Exhibits 2(b)(i) and 2(b)(ii), previously filed with this
Registration Statement File No. 333-17671 on December 11, 1996.
3 Inapplicable.
4 Inapplicable.
6 Consent of Independent Public Accountants.
7(a) Powers of Attorney, previously filed with this Registration Statement, File No.
333-17671 on April 27, 1999.
7(b) Power of Attorney.
8 Description of Equitable's Issuance, Transfer and Redemption Procedures for
Modified Premium Variable Policies pursuant to Rule 6e-3(T)(b)(12)(iii) under
the Investment Company Act of 1940, previously filed with this Registration
Statement File No. 333- 17671 on December 11, 1996.
</TABLE>
II-3
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it meets all the requirements for effectiveness of this amendment
to the Registration Statement pursuant to paragraph (b) of Rule 485 under the
Securities Act of 1933 and has duly caused this amendment to the Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, and its seal to be hereunto affixed and attested, in the City and
State of New York, on the 27th day of August, 1999.
SEPARATE ACCOUNT FP OF THE EQUITABLE
LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(REGISTRANT)
[SEAL] By: THE EQUITABLE LIFE
ASSURANCE SOCIETY OF
THE UNITED STATES,
(DEPOSITOR)
By: /s/ Mildred M. Oliver
------------------------------
(Mildred M. Oliver)
Vice President
Attest: /s/ Linda Galasso
------------------------
(Linda Galasso)
Assistant Secretary
August 27, 1999
II-4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Depositor
has duly caused this amendment to the Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City and State of
New York, on the 27th day of August, 1999.
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
(DEPOSITOR)
By: /s/ Mildred M. Oliver
--------------------------------
(Mildred M. Oliver)
Vice President
Pursuant to the requirements of the Securities Act of 1933, this amendment
to the Registration Statement has been signed by the following persons in the
capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICERS:
*Edward D. Miller Chairman of the Board and
Chief Executive Officer
*Michael Hegarty President and Chief Operating Officer
PRINCIPAL FINANCIAL OFFICER:
*Stanley B. Tulin Vice Chairman of the Board
and Chief Financial Officer
PRINCIPAL ACCOUNTING OFFICER:
*Alvin H. Fenichel Senior Vice President and Controller
*DIRECTORS:
Francoise Colloc'h Donald J. Greene George T. Lowy
Henri de Castries John T. Hartley Edward D. Miller
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
Denis Duverne Michael Hegarty George J. Sella, Jr.
Jean-Rene Fourtou Mary R. (Nina) Henderson Peter J. Tobin
Norman C. Francis W. Edwin Jarmain Stanley B. Tulin
Dave H. Williams
*By: /s/ Mildred M. Oliver
-----------------------
(Mildred M. Oliver)
Attorney-in-Fact
August 27, 1999
II-5
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT INDEX
Exhibit No. TAG VALUE
- ----------- ---------
<S> <C> <C>
2(a)(iv) Opinion and Consent of William Schor, Vice President and
Associate General Counsel of Equitable. EX-99.2aiv
6 Consent of Independent Public Accountants. EX-99.6
7(b) Power-of-Attorney EX-99.7b
</TABLE>
II-6
WILLIAM SCHOR
Vice President
and Associate General Counsel
(212) 314-3912
Fax: (212) 707-1882
[EQUITABLE -- MEMBER OF THE GLOBAL AXA GROUP LOGO]
LAW DEPARTMENT
August 27, 1999
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas
New York, NY 10104
Dear Sirs:
This opinion is furnished in connection with the filing of a Registration
Statement on Form S-6, File No. 333-17671 ("Registration Statement") of Separate
Account FP ("Separate Account FP") of The Equitable Life Assurance Society of
the United States ("Equitable"). The Registration Statement covers an indefinite
number of units of interest in Separate Account FP ("Units") funding Champion
2000 (policy form no. 90-400), individual modified premium variable whole life
insurance policies ("Policies") issued by The Equitable Life Assurance Society
of the United States ("Equitable"). Although the Policies are no longer being
offered for sale, Equitable will continue to collect premiums under the
Policies. Net premiums received under the Policies are allocated by Equitable to
Separate Account FP to the extent directed by owners of the Policies. Net
premiums under other Equitable variable life insurance policies will also be
allocated to Separate Account FP.
I have examined all such corporate records of Equitable and such other
documents and laws as I consider appropriate as a basis for the opinion
hereinafter expressed. On the basis of such examination, it is my opinion that:
1. Equitable is a corporation duly organized and validly existing under
the laws of the State of New York.
2. Separate Account FP has been duly established by Equitable pursuant to
the laws of the State of New York, under which income, gains and losses, whether
or not realized, from assets allocated to Separate Account FP, are to be, in
accordance with the Policies, credited to or charged against Separate Account FP
without regard to other income, gains or losses of Equitable.
3. Assets allocated to Separate Account FP will be owned by Equitable;
Equitable will not be a trustee with respect thereto. The Policies provide that
the portion of the assets of Separate Account FP equal to the reserves and other
Policy liabilities with respect to Separate Account FP will not be chargeable
with liabilities arising out of any other business Equitable may conduct.
Equitable reserves the right to transfer assets of Separate Account FP in excess
of such reserves and other Policy liabilities to the general account of
Equitable.
4. The Policies (including any Units duly credited thereunder) have been
duly authorized and constitute validly issued and binding obligations of
Equitable in accordance with their terms.
I hereby consent to the use of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/ William Schor
--------------------------
William Schor
51510
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
1290 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10104
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the May 1, 1999 Prospectus Supplement
constituting part of the Registration Statement No. 333-17671 on Form S-6 that
this Post-Effective Amendment No. 4 amends of (1) our report dated February 8,
1999 relating to the financial statements of The Equitable Life Assurance
Society of the United States Separate Account FP for the year ended December 31,
1998, and (2) our report dated February 8, 1999 relating to the consolidated
financial statements of The Equitable Life Assurance Society of the United
States for the year ended December 31, 1998, which reports appear in the May 1,
1999 Prospectus Supplement. We also consent to the reference to us under the
heading "Financial Statements" in the May 1, 1999 Prospectus Supplement.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
New York, New York
August 26, 1999
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
Director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints, Mark A. Hug, James D. Goodwin, Pauline Sherman, Michael F. McNelis,
Naomi J. Weinstein, Maureen K. Wolfson, Mildred Oliver, Mary P. Breen and each
of them (with full power to each of them to act alone), his or her true and
lawful attorney-in-fact and agent, with full power of substitution to each, for
him or her and on his or her behalf and in his or her name, place and stead, to
execute and file any of the documents referred to below relating to
registrations under the Securities Act of 1933, the Securities Exchange Act of
1934 and the Investment Company Act of 1940 with respect to any insurance or
annuity contracts or other agreements providing for allocation of amounts to
Separate Accounts of the Company, and related units or interests in Separate
Accounts: registration statements on any form or forms under the Securities Act
of 1933 and the Investment Company Act of 1940 and annual reports on any form or
forms under the Securities Exchange Act of 1934, and any and all amendments and
supplements thereto, with all exhibits and all instruments necessary or
appropriate in connection therewith, each of said attorneys-in-fact and agents
and his, her or their substitutes being empowered to act with or without the
others, and to have full power and authority to do or cause to be done in the
name and on behalf of the undersigned each and every act and thing requisite and
necessary or appropriate with respect thereto to be done in and about the
premises in order to effectuate the same, as fully to all intents and purposes
as the undersigned might or could do in person, hereby ratifying and confirming
all that said attorneys-in-fact and agents, or any of them, may do or cause to
be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand this
11th day of August, 1999.
/s/ Alvin H. Fenichel
---------------------
Alvin H. Fenichel
59838v2
