Registration No. 333-17671
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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POST-EFFECTIVE AMENDMENT NO. 5 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)
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Telephone Number, Including Area Code: (212) 554-1234
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Please send copies of all communications to:
BETH N. LOWSON, ESQ. with a copy to:
The Equitable Life Assurance Thomas C. Lauerman, Esq.
Society of the United States Freedman, Levy, Kroll & Simonds
1290 Avenue of the Americas 1050 Connecticut Avenue, N.W., Suite 825
New York, New York 10104 Washington, D.C. 20036
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Securities Being Registered: Units of Interest in Separate Account FP
It is proposed that this filing will become effective (check appropriate line):
_____ immediately upon filing pursuant to paragraph (b) of Rule 485
__X__ on (May 1, 2000) 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>
The Equitable Life Assurance Society
of the United States
Variable Life Insurance Policies
IL Protector(R)
IL COLI
Incentive Life Plus(R)
Survivorship 2000
Special Offer Policy
Incentive Life 2000
Champion 2000
Incentive Life
PROSPECTUS SUPPLEMENT DATED MAY 1, 2000
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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 on or about May 22, 2000 you will have a new
variable investment option (Fund) available under your policy:
o EQ/Alliance Technology**
Alliance Capital Management L.P. is the investment advisor for this new
Portfolio of EQ Advisors Trust. See "Investment Portfolios" below, as well as
the EQ Advisors Trust prospectus attached to this supplement, for more
information.
EQUITABLE. The information under the heading "Equitable" in your prospectus is
updated as follows:
EQUITABLE. We are The Equitable Life Assurance Society of the United States
(Equitable or Equitable Life), a New York stock life insurance corporation. We
have been doing business since 1859. Equitable Life is a subsidiary of AXA
Financial, Inc. (previously The Equitable Companies Incorporated). The majority
shareholder of AXA Financial, Inc. is AXA, a French holding company for an
international group of insurance and related financial services companies. As a
majority shareholder, and under its other arrangements with Equitable Life and
Equitable Life's parent, AXA exercises significant influence over the operations
and capital structure of Equitable Life and its parent. No company other than
Equitable Life, however, has any legal responsibility to pay amounts that
Equitable Life owes under the policies.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$462.7 billion in assets as of December 31, 1999. For more than 100 years
Equitable Life has been among the largest insurance companies in the United
States. We are licensed to sell life insurance and annuities in all fifty
states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our
home office is located at 1290 Avenue of the Americas, New York, N.Y. 10104.
HOW TO REACH US. To obtain (1) any forms you need for communicating with us, (2)
unit values and other values under your policy, and (3) any other
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* The dates of such prior prospectuses are listed for your information in
Appendix C 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 or supplement, without charge, on written request.
** This option may not be available in California.
Copyright 2000 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>
2
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information or materials that we provide in connection with your policy or the
portfolios, you can contact us
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BY MAIL:
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at the Post Office Box for our Administrative Office:
P.O. Box 1047
Charlotte, North Carolina 28201-1047
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BY EXPRESS DELIVERY ONLY:
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At the Street Address for our Administrative Office:
Equitable Life
National Operations Center
10840 Ballantyne Commons Parkway
Charlotte, N.C. 28277
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BY TOLL-FREE PHONE:
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1-888-855-5100
(automated system available 22 hours a day, from
6 AM to 4 AM, Eastern Time; customer service
representative available weekdays 8 AM to 9 PM,
Eastern Time)
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BY E-MAIL:
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[email protected]
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BY FAX:
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1-704-540-9714
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BY INTERNET:
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Our Web site (www.equitable.com) can also provide information; some of the forms
listed below are available for you to print out through our Web site by clicking
on "Contact Us." You can also access your policy information through our Web
site by enrolling in EQAccess.
We require that the following types of communications be on specific forms we
provide for that purpose:
(1) request for dollar cost averaging (our automatic transfer service);
(2) authorization for telephone transfers by a person who is not both the
sole insured person and the owner;
(3) request for asset rebalancing; and
(4) designation of new policy owner(s).
We also have specific forms that we recommend you use for the following:
(a) policy surrenders;
(b) address changes;
(c) beneficiary changes;
(d) transfers among investment options; and
(e) changes in allocation percentages for premiums and deductions.
You can change your allocation and/or transfer among investment options (1) by
toll-free phone or (2) over the Internet, through EQAccess. This feature is
anticipated to be available in EQAccess by the end of 2000. For more information
about transaction requests you can make by phone or over the Internet, see
"Telephone and EQAccess Requests" below.
Except for properly authorized telephone or Internet transactions, any notice or
request that does not use our standard form must be in writing. It must be dated
and signed by you and should also specify your name, the insured person's name
(if different), your policy number, and adequate details about the notice you
wish to give or other action you wish us to take. We may require you to return
your policy to us before we make certain policy changes that you request.
The proper person to sign forms, notices and requests would normally be the
owner or any other person that our procedures permit to exercise the right or
privilege in question. If there are joint owners, all must sign. Any irrevocable
beneficiary or assignee that we have on our records also must sign certain types
of requests.
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3
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You should send all requests and notices to our Administrative Office at the
addresses specified above. We will also accept requests and notices by fax at
the above number, if we believe them to be genuine. We reserve the right,
however, to require an original signature before acting on any faxed item. You
must send premium payments after the first one to our Administrative Office at
the above addresses; except that you should send any premiums for which we have
billed you to the address on the billing notice.
TELEPHONE AND EQACCESS REQUESTS. If you are both the sole owner and an insured
person under your policy, you may call 1-888-855-5100 (toll free) from a touch
tone phone to make the following types of requests:
o policy loans
o changes of address
o changes of premium allocation percentages
o transfers among investment options (Funds)
If you are not both an insured person and the owner, you may send us a signed
telephone transfer authorization form. Once we have the form on file, we will
provide you with a toll-free telephone number to make transfers.
By the end of 2000, we anticipate that you will be able to make transfers among
investment options (Funds) and changes in premium allocation percentages over
the Internet. You may do this by visiting our Web site and enrolling in
EQAccess. This service may not always be available. Generally, the restrictions
relating to telephone transactions apply to EQAccess transactions.
We allow only one request for telephone transfers each day (although that
request can cover multiple transfers), and we will not allow you to revoke a
telephone transfer. If you are unable to reach us by telephone, you should send
a written transfer request to our Administrative Office.
For security purposes, all telephone requests are automatically tape-recorded
and are invalid if the information given is incomplete or any portion of the
request is inaudible. We have established procedures reasonably designed to
confirm that telephone instructions are genuine. These include requiring
personal identification information from the caller and providing subsequent
written confirmation of the instructions.
If you wish to participate in EQAccess, you must first agree to the terms and
conditions set forth in our EQAccess Online Services Agreement, which you can
find at our Web site. For security purposes, you may not initiate any
transactions relating to your policy for five (5) days after you have elected to
use EQAccess. We will send you a confirmation letter by first class mail.
Additionally, you will be required to use a password and protect it from
unauthorized use. We will provide subsequent written confirmation of any
EQAccess transactions. We will assume that all instructions received through
EQAccess from anyone using your password are given by you; however, we reserve
the right to refuse to process any transaction and/or block access to EQAccess
if we have reason to believe the instructions given are unauthorized.
If we do not employ reasonable procedures to confirm the genuineness of
telephone or Internet instructions, we may be liable for any losses arising out
of any act or omission that constitutes negligence, lack of good faith, or
willful misconduct. In light of our procedures, we will not be liable for
following telephone or Internet instructions that we reasonably believe to be
genuine.
We reserve the right to refuse to process any telephone or Internet transactions
if we have reason to believe that the request compromises the general
<PAGE>
4
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security and/or integrity of our automated systems (see discussion of "Market
timing" below).
Any telephone or Internet transaction request that you make after the close of a
business day (which is usually 4:00 p.m. Eastern Time) will be processed as of
the next business day. During times of extreme market activity, or for other
reasons, you may be unable to contact us to make a telephone or Internet
request. If this occurs, you should submit a written transactions request to our
Administrative Office. We reserve the right to discontinue telephone or Internet
transactions, or modify the procedures and conditions for such transactions,
without notifying you, at any time.
MARKET TIMING. You should note that the product is not designed for professional
"market timing" organizations, or other organizations or individuals engaging in
a market timing strategy, making programmed transfers, frequent transfers or
transfers that are large in relation to the total assets of the underlying
mutual fund portfolio. Market timing strategies are disruptive to the underlying
mutual fund portfolios in which the variable investment options invest. If we
determine that your transfer patterns among the variable investment options
reflect a market timing strategy, we reserve the right to take action including,
but not limited to: restricting the availability of transfers through telephone
requests, facsimile transmissions, automated telephone services, Internet
services or any electronic transfer services. We may also refuse to act on
transfer instructions of an agent acting under a power of attorney who is acting
on behalf of more than one owner.
ASSET REBALANCING. Over time, your relative position in each investment option
may change due to the fluctuation of unit prices, premium payments, monthly
deductions and other transactions. Asset rebalancing, which we introduced last
year, can be useful to you if you wish to maintain a specified asset mix.
The following description replaces the description of our asset rebalancing
service in your prospectus (or supplement):
OUR ASSET REBALANCING SERVICE
You may wish us to periodically redistribute the amounts you have in our
variable investment options 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 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 variable investment
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 simultaneously participate in the asset rebalancing
service and the dollar cost averaging service.
You may request the asset rebalancing service at any time. You may change your
allocation instructions or discontinue participation in the asset rebalancing
service at any time.
If you request the asset rebalancing service, the first redistribution will be
on the date you specify or the date we receive your request, if later.
Subsequent periodic rebalancings will occur quarterly, semiannually or annually,
as you have requested.
INVESTMENT PORTFOLIOS. Your policy offers the investment Portfolios listed in
the table below, along with the Guaranteed Interest Account.
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5
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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 paid by each Portfolio for the year ended
December 31, 1999, except as otherwise noted. 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.
<TABLE>
<CAPTION>
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1999 FEES AND EXPENSES
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TOTAL FEE WAIVERS NET TOTAL
MANAGEMENT OTHER ANNUAL AND/OR EXPENSE ANNUAL
FEE(1) 12B-1 FEE EXPENSES(2) EXPENSES REIMBURSEMENTS(3) EXPENSES
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<S> <C> <C> <C> <C> <C> <C>
EQ/Aggressive Stock(4) 0.60% -- 0.04% 0.64% -- 0.64%
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EQ/Balanced(5) 0.57% -- 0.05% 0.62% -- 0.62%
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Alliance Common Stock 0.46% -- 0.04% 0.50% -- 0.50%
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Alliance Conservative Investors 0.60% -- 0.07% 0.67% -- 0.67%
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Alliance Equity Index 0.25% -- 0.05% 0.30% -- 0.30%
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Alliance Global 0.73% -- 0.09% 0.82% -- 0.82%
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Alliance Growth & Income 0.59% -- 0.05% 0.64% -- 0.64%
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Alliance Growth Investors 0.57% -- 0.05% 0.62% -- 0.62%
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Alliance High Yield 0.60% -- 0.05% 0.65% -- 0.65%
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Alliance Intermediate Government
Securities 0.50% -- 0.07% 0.57% -- 0.57%
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Alliance International 0.85% -- 0.20% 1.05% -- 1.05%
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Alliance Money Market 0.34% -- 0.05% 0.39% -- 0.39%
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EQ/Alliance Premier Growth(6) 0.90% 0.25% 0.23% 1.38% 0.23% 1.15%
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Alliance Quality Bond 0.53% -- 0.05% 0.58% -- 0.58%
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Alliance Small Cap Growth(7) 0.75% -- 0.07% 0.82% -- 0.82%
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EQ/Alliance Technology(8) 0.90% 0.25% 0.10% 1.25% 0.10% 1.15%
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Capital Guardian Research(6) 0.65% 0.25% 0.47% 1.37% 0.42% 0.95%
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Capital Guardian U.S. Equity(6) 0.65% 0.25% 0.34% 1.24% 0.29% 0.95%
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EQ/Evergreen 0.65% 0.25% 1.87% 2.77% 1.82% 0.95%
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EQ/Evergreen Foundation 0.60% 0.25% 1.07% 1.92% 0.97% 0.95%
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Mercury Basic Value Equity(9) 0.60% 0.25% 0.17% 1.02% 0.07% 0.95%
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Mercury World Strategy(10) 0.70% 0.25% 0.46% 1.41% 0.21% 1.20%
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MFS Emerging Growth Companies 0.65% 0.25% 0.17% 1.07% 0.07% 1.00%
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MFS Growth with Income 0.60% 0.25% 0.37% 1.22% 0.27% 0.95%
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MFS Research 0.65% 0.25% 0.17% 1.07% 0.12% 0.95%
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Morgan Stanley Emerging Markets Equity 1.15% 0.25% 1.00% 2.40% 0.65% 1.75%
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EQ/Putnam Balanced 0.60% 0.25% 0.28% 1.13% 0.23% 0.90%
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EQ/Putnam Growth & Income Value 0.60% 0.25% 0.16% 1.01% 0.06% 0.95%
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T. Rowe Price Equity Income 0.60% 0.25% 0.21% 1.06% 0.11% 0.95%
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T. Rowe Price International Stock 0.85% 0.25% 0.30% 1.40% 0.15% 1.25%
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Warburg Pincus Small Company Value 0.75% 0.25% 0.24% 1.24% 0.14% 1.10%
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</TABLE>
<PAGE>
6
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(1) The management fees shown reflect revised management fees, effective on or
about May 1, 2000, which were approved by shareholders. The management fees
shown for EQ/Putnam Balanced, EQ/Putnam Growth & Income Value, Warburg
Pincus Small Company Value and T. Rowe Price International Stock do not
reflect the waiver of a portion of each Portfolio's investment management
fees that is currently in effect. The management fee for each Portfolio
cannot be increased without a vote of each Portfolio's shareholders.
(2) On October 18, 1999 the Alliance Portfolios (other than EQ/Alliance Premier
Growth and EQ/Alliance Technology) became part of EQ Advisors Trust. Other
Expenses for these Portfolios have been restated to reflect the estimated
expenses that would have been incurred, had these Portfolios been
portfolios of EQ Advisors Trust for the full year ended December 31, 1999.
The restated expenses reflect an increase of 0.01% for each of these
Portfolios.
(3) Equitable Life, EQ Advisors Trust's manager, has entered into an Expense
Limitation Agreement with respect to certain Portfolios. Under this
agreement Equitable Life has agreed to waive or limit its fees and assume
other expenses of each of these Portfolios, if necessary, in an amount that
limits each Portfolio's Total Annual Expenses (exclusive of interest,
taxes, brokerage commissions, capitalized expenditures and extraordinary
expenses) to not more than the amounts specified above as Net Total Annual
Expenses. Portfolios that show "--" in this column have no expense
limitation arrangement in effect. See the EQ Advisors Trust prospectus for
more information about the Expense Limitation Agreement. The expense
limitations for MFS Emerging Growth Companies, MFS Growth with Income, MFS
Research, Mercury Basic Value Equity, EQ/Putnam Growth & Income Value, T.
Rowe Price Equity Income, T. Rowe Price International Stock and Warburg
Pincus Small Company Value Portfolios reflect an increase effective on May
1, 2000. The expense limitation for the EQ/Evergreen Portfolio reflects a
decrease effective on May 1, 2000.
(4) Formerly named "Alliance Aggressive Stock." Effective May 1, 2000,
Massachusetts Financial Services Company joined Alliance Capital Management
L.P. as an investment advisor for this Portfolio.
(5) Formerly named "Alliance Balanced." Effective May 1, 2000, Capital Guardian
Trust Company, Jennisen Associates LLC and Prudential Investments Fund
Management LLC joined Alliance Capital Management L.P. as investment
advisors for this Portfolio.
(6) Initial seed capital was invested in the EQ/Alliance Premier Growth,
Capital Guardian Research and Capital Guardian U.S. Equity Portfolios on
April 30, 1999; thus, Other Expenses for these Portfolios have been
estimated.
(7) Prior to October 18, 1999, Total Annual Expenses for the Alliance Small Cap
Growth Portfolio were limited to 1.20% under an expense limitation
arrangement which is no longer in effect. The amounts shown have been
restated to reflect the expenses that would have been incurred in 1999,
absent the expense limitation arrangement.
(8) Expenses shown are based on annualized estimates for 2000. Initial seed
capital will be invested in the EQ/Alliance Technology Portfolio on or
about May 1, 2000.
(9) Formerly named "Merrill Lynch Basic Value Equity."
(10) Formerly named "Merrill Lynch World Strategy."
INVESTMENT PERFORMANCE. Footnote 6 to the Separate Account FP financial
statements set forth below contains information about the net return for each
Fund (variable investment option) which commenced operations prior to December
31, 1999. The attached prospectus for EQ Advisors Trust contains rates of return
and other Portfolio performance information for various periods ended December
31, 1999. The changes in the Policy Account value of your policy depend not only
on the performance of the Portfolios, but also on the deductions and charges
under your policy. To obtain the current unit values of the Separate Account
Funds, call (888) 855-5100.
The values reported in footnote 6 for all policies are computed using net rates
of return for the corresponding Portfolios of EQ Advisors Trust. The returns
reported in footnote 6 for each of the policy forms are reduced only by any
mortality and expense risk charge deducted from Separate Account assets.
LONG-TERM MARKET TRENDS. Appendix B to this supplement presents historical
return trends for various types of securities which may be useful for
understanding how different investment strategies may affect long-term results.
<PAGE>
7
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DISTRIBUTION. Because of its activities in distributing our products, AXA
Advisors, LLC (the successor to EQ Financial Consultants, Inc.) is the
"principal underwriter" (as defined in the Investment Company Act of 1940) of
our variable life insurance policies. In 1997, 1998 and 1999 we paid AXA
Advisors a fee of $325,380 annually for its services as such.
ILLUSTRATIONS OF POLICY BENEFITS. For purposes of illustrations of the type set
forth under this caption in your prospectus, the new aggregate expense
assumption for the Portfolios is 0.72% per annum (0.65% per annum for investment
management fees and 0.07% per annum for other expenses). The investment
management fee assumption is the average of the advisory fees payable for each
EQ Advisors Trust Portfolio based on average net assets for 1999. The other
expense assumption is the weighted average of the other expenses (including any
applicable "Rule 12b-1" distribution fees) of the EQ Advisors Trust Portfolios,
based on average net assets for 1999. The tables under this caption in your
prospectus have not been restated to reflect this new Portfolio expense
assumption. For a personalized illustration reflecting the fees and expenses
under your policy, contact your financial professional.
DELETION OF CERTAIN INFORMATION. The following information that appears in your
prospectus is deleted:
o all quotations of investment yield or return that are based on the
historical investment performance of the available Portfolios under
your policy; and all illustrations of policy values based on such
historical performance.
o all information about the Portfolios' investment objectives and policies.
MANAGEMENT. A list of our directors and, to the extent they are responsible for
variable life insurance operations, our principal officers and a brief statement
of their business experience for the past five years is contained in Appendix A
to this supplement.
FINANCIAL STATEMENTS. The financial statements of Separate Account FP as of
December 31, 1999 and for the three years in the period ended December 31, 1999
and the financial statements of Equitable Life as of December 31, 1999 and 1998
and for the three years in the period ended December 31, 1999 included in this
prospectus supplement have been so included in reliance on the reports of
PricewaterhouseCoopers LLP, independent accountants, given on the authority of
said firm as experts in auditing and accounting.
The financial statements of Equitable Life contained in this prospectus
supplement should be considered only as bearing upon the ability of Equitable
Life to meet its obligations under the policies. They should not be considered
as bearing upon the investment experience of the Funds in the Separate Account.
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
Report of Independent Accountants..................................................................... FSA-2
Financial Statements:
Statements of Assets and Liabilities, December 31, 1999............................................ FSA-3
Statements of Operations for the Years Ended December 31, 1999, 1998 and 1997...................... FSA-6
Statements of Changes in Net Assets for the Years Ended December 31, 1999, 1998 and 1997........... FSA-15
Notes to Financial Statements...................................................................... FSA-24
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
Report of Independent Accountants..................................................................... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets, December 31, 1999 and 1998............................................ F-2
Consolidated Statements of Earnings, Years Ended December 31, 1999, 1998 and 1997.................. F-3
Consolidated Statements of Shareholder's Equity, Years Ended December 31, 1999, 1998 and 1997...... F-4
Consolidated Statements of Cash Flows, Years Ended December 31, 1999, 1998 and 1997................ F-5
Notes to Consolidated Financial Statements......................................................... F-6
+ Formerly known as Equitable Variable Life Insurance Company Separate Account FP.
</TABLE>
FSA-1
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and Policyowners of Separate Account FP
of The Equitable Life Assurance Society of the United States
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of the following Variable
Investment Options: Alliance Intermediate Government Securities, Alliance Money
Market, Alliance Quality Bond, Alliance High Yield, Alliance Common Stock,
Alliance Equity Index, Alliance Growth & Income, EQ/Alliance Premier Growth,
Capital Guardian Research, Capital Guardian U.S. Equity, Merrill Lynch Basic
Value Equity, MFS Growth with Income, MFS Research, EQ/Putnam Growth & Income
Value, T. Rowe Price Equity Income, Alliance Global, Alliance International,
Morgan Stanley Emerging Markets Equity, T. Rowe Price International Stock,
Alliance Aggressive Stock, Alliance Small Cap Growth, EQ/Evergreen, MFS Emerging
Growth Companies, Warburg Pincus Small Company Value, Alliance Balanced,
Alliance Conservative Investors, Alliance Growth Investors, EQ/Evergreen
Foundation, EQ/Putnam Balanced and Merrill Lynch World Strategy ("EQ Advisors
Trust Variable Investment Options"), 30 of the separate Variable Investment
Options of The Equitable Life Assurance Society of the United States ("Equitable
Life") Separate Account FP at December 31, 1999 and the results of each of their
operations and changes in each of their net assets for each of the periods
indicated, in conformity with accounting principles generally accepted in the
United States of America. These financial statements are the responsibility of
Equitable Life's management; our responsibility is to express an opinion on
these financial statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally accepted in
the United States of America which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of shares owned in The EQ Advisors Trust at
December 31, 1999 with the transfer agent, provide a reasonable basis for the
opinion expressed above. The rates of return information presented in Note 6 for
the year ended December 31, 1992 and for each of the periods indicated prior
thereto, were audited by other independent accountants whose report dated
February 16, 1993 expressed an unqualified opinion on the financial statements
containing such information.
PricewaterhouseCoopers LLP
New York, New York
February 1, 2000
FSA-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
FIXED INCOME OPTIONS: EQUITY OPTIONS:
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ALLIANCE
INTERMEDIATE ALLIANCE ALLIANCE ALLIANCE
GOVERNMENT MONEY ALLIANCE HIGH COMMON ALLIANCE
SECURITIES MARKET QUALITY BOND YIELD STOCK EQUITY INDEX
------------ ------------ ------------ ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares of
the Trust -- at market
value (Notes 2 and 6)
Cost: $ 80,139,159................. $78,746,672
342,765,909................. $344,082,723
246,885,528................. $233,631,434
177,773,173................. $149,030,820
3,081,451,600................. $3,783,859,850
621,830,916................. $850,584,523
205,101,089.................
46,147,852.................
182,262.................
494,512.................
38,508,013.................
391,533.................
Receivable for Trust shares sold.......... 58,836 -- -- 5,046 -- --
Receivable for policy-related
transactions.......................... 68,831 4,909,455 434,709 798,616 15,840,922 2,266,891
----------- ------------ ------------ ------------ -------------- ------------
Total Assets.............................. $78,874,339 $348,992,178 $234,066,143 $149,834,482 $3,799,700,772 $852,851,414
----------- ------------ ------------ ------------ -------------- ------------
LIABILITIES
Payable for Trust shares purchased........ $ -- $ 4,563,801 $ 161,711 $ -- $ 19,831,580 $ 2,546,878
Payable for policy-related
transactions.......................... -- -- -- -- -- --
----------- ------------ ------------ ------------ -------------- ------------
Total Liabilities......................... -- 4,563,801 161,711 -- 19,831,580 2,546,878
----------- ------------ ------------ ------------ -------------- ------------
NET ASSETS................................ $78,874,339 $344,428,377 $233,904,432 $149,834,482 $3,779,869,192 $850,304,536
=========== ============ ============ ============ ============== ============
Amount retained by Equitable Life
in Separate Account FP (Note 4)....... $ 945,030 $ 16,198 $ 1,326,200 $ 1,280 $ 80,914 $ 121,396
Net Assets Attributable
to Contractowners..................... 77,929,309 344,412,179 232,578,232 149,833,202 3,779,788,278 850,183,140
----------- ------------ ------------ ------------ -------------- ------------
NET ASSETS................................ $78,874,339 $344,428,377 $233,904,432 $149,834,482 $3,779,869,192 $850,304,536
=========== ============ ============ ============ ============== ============
<CAPTION>
EQUITY OPTIONS:
--------------------------------------------------------------------
EQ/ CAPITAL MERRILL MFS
ALLIANCE ALLIANCE CAPITAL GUARDIAN LYNCH GROWTH
GROWTH PREMIER GUARDIAN U.S. BASIC VALUE WITH
& INCOME GROWTH RESEARCH EQUITY EQUITY INCOME
----------- ----------- -------- -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares of
the Trust -- at market
value (Notes 2 and 6)
Cost: $ 80,139,159.................
342,765,909.................
246,885,528.................
177,773,173.................
3,081,451,600.................
621,830,916.................
205,101,089................. $232,271,328
46,147,852................. $51,216,559
182,262................. $193,355
494,512................. $511,837
38,508,013................. $39,778,636
391,533................. $412,169
Receivable for Trust shares sold.......... 160,367 -- -- -- -- --
Receivable for policy-related
transactions.......................... -- 283,944 24,204 -- 23,002 8,035
------------ ----------- -------- -------- ----------- --------
Total Assets.............................. $232,431,695 $51,500,503 $217,559 $511,837 $39,801,638 $420,204
------------ ----------- -------- -------- ----------- --------
LIABILITIES
Payable for Trust shares purchased........ $ -- $ 283,146 $ 24,204 $ -- $ 11,329 $ 4,490
Payable for policy-related
transactions.......................... 112,046 -- -- -- -- --
------------ ----------- -------- -------- ----------- --------
Total Liabilities......................... 112,046 283,146 24,204 -- 11,329 4,490
------------ ----------- -------- -------- ----------- --------
NET ASSETS................................ $232,319,649 $51,217,357 $193,355 $511,837 $39,790,309 $415,714
============ =========== ======== ======== =========== ========
Amount retained by Equitable Life
in Separate Account FP (Note 4)....... $ 434,457 $ 3,545 $ 219 $ 387 $ 81,800 $ 3,570
Net Assets Attributable
to Contractowners..................... 231,885,192 51,213,812 193,136 511,450 39,708,509 412,144
------------ ----------- -------- -------- ----------- --------
NET ASSETS................................ $232,319,649 $51,217,357 $193,355 $511,837 $39,790,309 $415,714
============ =========== ======== ======== =========== ========
</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+
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONCLUDED):
-----------------------------------------------------------------------------
MORGAN
EQ/PUTNAM T. ROWE STANLEY
GROWTH & PRICE EMERGING
MFS INCOME EQUITY ALLIANCE ALLIANCE MARKETS
RESEARCH VALUE INCOME GLOBAL INTERNATIONAL EQUITY
----------- ----------- ----------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares of
the Trust -- at market
value (Notes 2 and 6)
Cost: $ 38,563,600..................... $48,597,586
23,253,533..................... $21,780,737
54,114,065..................... $53,161,413
552,424,363..................... $724,986,725
51,584,951..................... $76,876,125
29,914,338..................... $40,958,925
43,913,498.....................
892,630,699.....................
46,097,819.....................
27,230.....................
160,950,031.....................
38,188,722.....................
Receivable for Trust shares sold.............. 252,705 -- -- -- -- --
Receivable for policy-related
transactions.............................. -- 82,740 194,627 1,126,946 92,708 82,278
----------- ----------- ----------- ------------ ----------- -----------
Total Assets.................................. $48,850,291 $21,863,477 $53,356,040 $726,113,671 $76,968,833 $41,041,203
----------- ----------- ----------- ------------ ----------- -----------
LIABILITIES
Payable for Trust shares purchased............ $ -- $ 69,698 $ 154,373 $ 1,211,437 $ 87,078 $ 350,654
Payable for policy-related
transactions.............................. 212,939 -- -- -- -- --
----------- ----------- ----------- ------------ ----------- -----------
Total Liabilities............................. 212,939 69,698 154,373 1,211,437 87,078 350,654
----------- ----------- ----------- ------------ ----------- -----------
NET ASSETS................................... $48,637,352 $21,793,779 $53,201,667 $724,902,234 $76,881,755 $40,690,549
=========== =========== =========== ============ =========== ===========
Amount retained by Equitable Life
in Separate Account FP (Note 4)........... $ 142,291 $ 69,602 $ 126,030 $ 3,388 $ 964,072 $ 1,767,601
Net Assets Attributable
to Policyowners........................... 48,495,061 21,724,177 53,075,637 724,898,846 75,917,683 38,922,948
----------- ----------- ----------- ------------ ----------- -----------
NET ASSETS.................................... $48,637,352 $21,793,779 $53,201,667 $724,902,234 $76,881,755 $40,690,549
=========== =========== =========== ============ =========== ===========
<CAPTION>
EQUITY OPTIONS (CONCLUDED):
----------------------------------------------------------------------------
WARBURG
T. ROWE MFS PINCUS
PRICE ALLIANCE ALLIANCE EMERGING SMALL
INTERNATIONAL AGGRESSIVE SMALL CAP EQ/ GROWTH COMPANY
STOCK STOCK GROWTH EVERGREEN COMPANIES VALUE
------------- -------------- ----------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares of
the Trust -- at market
value (Notes 2 and 6)
Cost: $ 38,563,600.....................
23,253,533.....................
54,114,065.....................
552,424,363.....................
51,584,951.....................
29,914,338.....................
43,913,498..................... $53,258,879
892,630,699..................... $1,051,440,590
46,097,819..................... $70,174,096
27,230..................... $28,680
160,950,031..................... $238,027,993
38,188,722..................... $35,893,840
Receivable for Trust shares sold.............. -- 2,154,914 22,666,998 -- -- 71,466
Receivable for policy-related
transactions.............................. 57,539 -- -- -- 1,271,988 --
----------- -------------- ----------- ------- ------------ -----------
Total Assets.................................. $53,316,418 $1,053,595,504 $92,841,094 $28,680 $239,299,981 $35,965,306
----------- -------------- ----------- ------- ------------ -----------
LIABILITIES
Payable for Trust shares purchased............ $ 2,392 $ -- $ -- $ -- $ 1,116,940 $ --
Payable for policy-related
transactions.............................. -- 1,550,441 22,460,673 -- -- 17,093
----------- -------------- ----------- ------- ------------ -----------
Total Liabilities............................. 2,392 1,550,441 22,460,673 -- 1,116,940 17,093
----------- -------------- ----------- ------- ------------ -----------
NET ASSETS................................... $53,314,026 $1,052,045,063 $70,380,421 $28,680 $238,183,041 $35,948,213
=========== ============== =========== ======= ============ ===========
Amount retained by Equitable Life
in Separate Account FP (Note 4)........... $ 178,040 $ 3,855 $ 527,774 $ 18 $ 386,768 $ 164,967
Net Assets Attributable
to Policyowners........................... 53,135,986 1,052,041,208 69,852,647 28,662 237,796,273 35,783,246
----------- -------------- ----------- ------- ------------ -----------
NET ASSETS.................................... $53,314,026 $1,052,045,063 $70,380,421 $28,680 $238,183,041 $35,948,213
=========== ============== =========== ======= ============ ===========
</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+
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
ASSET ALLOCATION OPTIONS:
------------------------------------------------------------------------------------
MERRILL
ALLIANCE ALLIANCE EQ/ EQ/ LYNCH
ALLIANCE CONSERVATIVE GROWTH EVERGREEN PUTNAM WORLD
BALANCED INVESTORS INVESTORS FOUNDATION BALANCED STRATEGY
------------ ------------ -------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments in shares of
the Trust -- at market
value (Notes 2 and 6)
Cost: $453,630,311..................... $546,866,262
194,380,806..................... $217,969,178
928,527,892..................... $1,216,541,911
2,749..................... $ 2,848
8,911,255..................... $8,418,996
4,518,718..................... $5,372,189
Receivable for Trust shares sold.............. -- 15,822 -- -- -- --
Receivable for policy-related
transactions.............................. -- 115,963 703,914 -- 16,607 1,267
------------ ------------ -------------- ------- ---------- ----------
Total Assets.................................. $546,866,262 $218,100,963 $1,217,245,825 $ 2,848 $8,435,603 $5,373,456
------------ ------------ -------------- ------- ---------- ----------
LIABILITIES
Payable for Trust shares purchased............ $ 31,321 $ -- $ 353,476 $ -- $ 4,500 $ 1,232
Payable for policy-related
transactions.............................. 123,383 -- -- -- -- --
------------ ------------ -------------- ------- ---------- ----------
Total Liabilities............................. 154,704 -- 353,476 -- 4,500 1,232
------------ ------------ -------------- ------- ---------- ----------
NET ASSETS.................................... $546,711,558 $218,100,963 $1,216,892,349 $ 2,848 $8,431,103 $5,372,224
============ ============ ============== ======= ========== ==========
Amount retained by Equitable Life
in Separate Account FP (Note 4)........... $ 1,088,939 $ 521,116 $ 924,554 $ 2 $ 70,099 $ 494,770
Net Assets Attributable
to Contractowners......................... 545,622,619 217,579,847 1,215,967,795 2,846 8,361,004 4,877,454
------------ ------------ -------------- ------- ---------- ----------
NET ASSETS.................................... $546,711,558 $218,100,963 $1,216,892,349 $ 2,848 $8,431,103 $5,372,224
============ ============ ============== ======= ========== ==========
</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+
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
FIXED INCOME OPTIONS:
-------------------------------------------------------------------------
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES ALLIANCE MONEY MARKET
---------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 4,049,521 $3,477,938 $2,914,613 $13,943,193 $10,719,684 $9,754,675
Expenses (Note 3):
Mortality and expense
risk charges..................... 378,916 350,536 282,422 1,613,234 1,204,220 1,101,168
----------- ---------- ---------- ----------- ----------- ----------
NET INVESTMENT INCOME..................... 3,670,605 3,127,402 2,632,191 12,329,959 9,515,464 8,653,507
----------- ---------- ---------- ----------- ----------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... (194,507) 60,260 (95,509) 517,935 (161,314) (513,800)
Realized gain distribution
from the Trust................... -- -- -- 10,344 7,750 13,435
----------- ---------- ---------- ----------- ----------- ----------
NET REALIZED GAIN (LOSS).................. (194,507) 60,260 (95,509) 528,279 (153,564) (500,365)
----------- ---------- ---------- ----------- ----------- ----------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............... 2,391,062 868,053 (141,479) 1,536,450 804,349 24,023
End of period..................... (1,392,487) 2,391,062 868,053 1,316,815 1,536,450 804,349
----------- ---------- ---------- ----------- ----------- ----------
Change in unrealized appreciation
(depreciation) during the period..... (3,783,549) 1,523,009 1,009,532 (219,635) 732,101 780,326
----------- ---------- ---------- ----------- ----------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ (3,978,056) 1,583,269 914,023 308,644 578,537 279,961
----------- ---------- ---------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ (307,451) $4,710,671 $3,546,214 $12,638,603 $10,094,001 $8,933,468
=========== ========== ========== =========== =========== ==========
<CAPTION>
FIXED INCOME OPTIONS:
----------------------------------------
ALLIANCE QUALITY BOND
---------------------------------------
1999 1998 1997
------------ ----------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 12,542,857 $10,317,238 $ 8,869,740
Expenses (Note 3):
Mortality and expense
risk charges..................... 1,329,147 1,106,136 845,069
------------ ----------- -----------
NET INVESTMENT INCOME..................... 11,213,710 9,211,102 8,024,671
------------ ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... (1,493,664) 34,937 (504,580)
Realized gain distribution
from the Trust................... 870,458 4,596,907 --
------------ ----------- -----------
NET REALIZED GAIN (LOSS).................. (623,206) 4,631,844 (504,580)
------------ ----------- -----------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............... 3,367,697 2,395,718 (1,961,822)
End of period..................... (13,254,094) 3,367,697 2,395,718
------------ ----------- -----------
Change in unrealized appreciation
(depreciation) during the period..... (16,621,791) 971,979 4,357,540
------------ ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ (17,244,997) 5,603,823 3,852,960
------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ (6,031,287) $14,814,925 $11,877,631
============ =========== ===========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
+ 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+
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
FIXED INCOME OPTIONS (CONCLUDED): EQUITY OPTIONS:
--------------------------------------- ----------------------------------------
ALLIANCE HIGH YIELD ALLIANCE COMMON STOCK
--------------------------------------- ----------------------------------------
1999 1998 1997 1999 1998 1997
------------ ------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 17,378,455 $ 18,449,747 $12,918,934 $ 20,107,533 $ 15,939,680 $ 10,668,337
Expenses (Note 3):
Mortality and expense
risk charges..................... 889,065 1,007,106 789,982 19,069,959 14,600,706 11,435,936
------------ ------------ ----------- ------------ ------------ ------------
NET INVESTMENT INCOME..................... 16,489,390 17,442,641 12,128,952 1,037,574 1,338,974 (767,599)
------------ ------------ ----------- ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... (15,192,553) (2,344,392) 936,554 221,690,581 169,109,310 53,841,049
Realized gain distribution
from the Trust................... 161,999 3,396,523 6,365,633 497,324,765 353,834,250 164,814,473
------------ ------------ ----------- ------------ ------------ ------------
NET REALIZED GAIN (LOSS).................. (15,030,554) 1,052,131 7,302,187 719,015,346 522,943,560 218,655,522
------------ ------------ ----------- ------------ ------------ ------------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ (20,898,855) 8,622,836 5,664,824 689,309,204 567,231,009 294,432,897
End of period.................. (28,742,353) (20,898,854) 8,622,836 702,408,250 689,309,204 567,231,009
------------ ------------ ----------- ------------ ------------ ------------
Change in unrealized appreciation
(depreciation) during the period..... (7,843,498) (29,521,690) 2,958,012 13,099,046 122,078,195 272,798,112
------------ ------------ ----------- ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ (22,874,052) (28,469,559) 10,260,199 732,114,392 645,021,755 491,453,634
------------ ------------ ----------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ (6,384,662) $(11,026,918) $22,389,151 $733,151,966 $646,360,729 $490,686,035
============ ============ =========== ============ ============ ============
<CAPTION>
EQUITY OPTIONS:
---------------------------------------
ALLIANCE EQUITY INDEX
---------------------------------------
1999 1998 1997
------------ ------------ -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 7,575,355 $ 3,958,217 $ 2,610,223
Expenses (Note 3):
Mortality and expense
risk charges..................... 3,729,959 1,862,376 977,620
------------ ------------ -----------
NET INVESTMENT INCOME..................... 3,845,396 2,095,841 1,632,603
------------ ------------ -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 21,008,249 5,460,381 (414,497)
Realized gain distribution
from the Trust................... 6,196,508 128,151 850,437
------------ ------------ -----------
NET REALIZED GAIN (LOSS).................. 27,204,757 5,588,532 435,940
------------ ------------ -----------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 136,665,316 63,055,426 21,448,224
End of period.................. 228,753,607 136,665,316 63,055,426
------------ ------------ -----------
Change in unrealized appreciation
(depreciation) during the period..... 92,088,291 73,609,890 41,607,202
------------ ------------ -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 119,293,048 79,198,422 42,043,142
------------ ------------ -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $123,138,444 $ 81,294,263 $43,675,745
============ ============ ===========
</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+
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
---------------------------------------------------------------------------------
CAPITAL
EQ/ALLIANCE CAPITAL GUARDIAN
PREMIER GUARDIAN U.S.
ALLIANCE GROWTH & INCOME GROWTH (C) RESEARCH (d) EQUITY (d)
--------------------------------------- ----------- ------------ ----------
1999 1998 1997 1999 1999 1999
----------- ----------- ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 530,384 $ 415,436 $ 636,335 $ 30,540 $ 280 $ 1,159
Expenses (Note 3):
Mortality and expense
risk charges..................... 1,048,745 668,795 358,997 63,730 209 378
----------- ----------- ----------- ---------- ------- -------
NET INVESTMENT INCOME..................... (518,361) (253,359) 277,338 (33,190) 71 781
----------- ----------- ----------- ---------- ------- -------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 730,688 7,289,936 530,421 83,605 2,810 451
Realized gain distribution
from the Trust................... 20,855,872 12,146,928 5,006,247 106,890 27 1,508
----------- ----------- ----------- ---------- ------- -------
NET REALIZED GAIN (LOSS).................. 21,586,560 19,436,864 5,536,668 190,495 2,837 1,959
----------- ----------- ----------- ---------- ------- -------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 16,240,511 13,021,603 5,074,338 -- -- --
End of period.................. 27,170,239 16,240,511 13,021,603 5,068,707 11,093 17,325
----------- ----------- ----------- ---------- ------- -------
Change in unrealized appreciation
(depreciation) during the period..... 10,929,728 3,218,908 7,947,265 5,068,707 11,093 17,325
----------- ----------- ----------- ---------- ------- -------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 32,516,288 22,655,772 13,483,933 5,259,202 13,930 19,284
----------- ----------- ----------- ---------- ------- -------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $31,997,927 $22,402,413 $13,761,271 $5,226,012 $14,001 $20,065
=========== =========== =========== ========== ======= =======
<CAPTION>
EQUITY OPTIONS (CONTINUED):
------------------------------------------
MERRILL LYNCH
BASIC VALUE EQUITY (A)
------------------------------------------
1999 1998 1997
---------- --------- --------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 468,257 $ 192,441 $ 35,810
Expenses (Note 3):
Mortality and expense
risk charges..................... 153,456 66,427 9,349
---------- --------- --------
NET INVESTMENT INCOME..................... 314,801 126,014 26,461
---------- --------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 426,168 207,032 6,656
Realized gain distribution
from the Trust................... 1,963,197 667,083 33,738
---------- --------- --------
NET REALIZED GAIN (LOSS).................. 2,389,365 874,115 40,394
---------- --------- --------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ (91,959) 135,003 --
End of period.................. 1,270,622 (91,959) 135,003
---------- --------- --------
Change in unrealized appreciation
(depreciation) during the period..... 1,362,581 (226,962) 135,003
---------- --------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 3,751,946 647,153 175,397
---------- --------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $4,066,747 $ 773,167 $201,858
========== ========= ========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ 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+
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
---------------------------------------------------------------------------------
MFS
GROWTH
WITH EQ/PUTNAM
INCOME (C) MFS RESEARCH (A) GROWTH & INCOME VALUE (A)
---------- --------------------------------- ---------------------------------
1999 1999 1998 1997 1999 1998 1997
---------- ----------- ---------- -------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 1,268 $ 52,831 $ 71,137 $ 20,442 $ 278,910 $ 143,999 $ 33,273
Expenses (Note 3):
Mortality and expense
risk charges..................... 431 208,639 86,044 13,127 110,374 56,995 9,655
------- ----------- ---------- -------- ----------- ---------- --------
NET INVESTMENT INCOME..................... 837 (155,808) (14,907) 7,315 168,536 87,004 23,618
------- ----------- ---------- -------- ----------- ---------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... (227) 995,232 494,412 6,989 276,186 209,398 1,078
Realized gain distribution
from the Trust................... -- 1,086,222 -- 81,156 1,499,307 130,047 27,226
------- ----------- ---------- -------- ----------- ---------- --------
NET REALIZED GAIN (LOSS).................. (227) 2,081,454 494,412 88,145 1,775,493 339,445 28,304
------- ----------- ---------- -------- ----------- ---------- --------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ -- 3,313,063 249,382 -- 1,160,602 269,561 --
End of period.................. 20,637 10,033,987 3,313,063 249,382 (1,472,796) 1,160,602 269,561
------- ----------- ---------- -------- ----------- ---------- --------
Change in unrealized appreciation
(depreciation) during the period..... 20,637 6,720,924 3,063,681 249,382 (2,633,398) 891,041 269,561
------- ----------- ---------- -------- ----------- ---------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 20,410 8,802,378 3,558,093 337,527 (857,905) 1,230,486 297,865
------- ----------- ---------- -------- ----------- ---------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $21,247 $ 8,646,570 $3,543,186 $344,842 $ (689,369) $1,317,490 $321,483
======= =========== ========== ======== =========== ========== ========
<CAPTION>
EQUITY OPTIONS (CONTINUED):
------------------------------------
T. ROWE PRICE EQUITY INCOME (A)
------------------------------------
1999 1998 1997
------------ ---------- ----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 998,227 $ 722,954 $ 145,613
Expenses (Note 3):
Mortality and expense
risk charges..................... 272,123 173,802 29,706
----------- ---------- ----------
NET INVESTMENT INCOME..................... 726,104 549,152 115,907
----------- ---------- ----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 655,822 341,473 56,634
Realized gain distribution
from the Trust................... 2,081,914 930,853 53,840
----------- ---------- ----------
NET REALIZED GAIN (LOSS).................. 2,737,736 1,272,326 110,474
----------- ---------- ----------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 1,585,616 1,073,548 --
End of period.................. (952,652) 1,585,616 1,073,548
----------- ---------- ----------
Change in unrealized appreciation
(depreciation) during the period..... (2,538,268) 512,068 1,073,548
----------- ---------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 199,468 1,784,394 1,184,022
----------- ---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $ 925,572 $2,333,546 $1,299,929
=========== ========== ==========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ 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+
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
-----------------------------------------------------------------------------------
ALLIANCE GLOBAL ALLIANCE INTERNATIONAL
--------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
------------ ----------- ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 561,424 $ 5,636,672 $ 8,803,070 $ -- $ 996,913 $ 1,386,732
Expenses (Note 3):
Mortality and expense
risk charges..................... 3,438,444 2,777,697 2,805,310 321,035 289,066 297,278
------------ ----------- ------------ ----------- ----------- -----------
NET INVESTMENT INCOME..................... (2,877,020) 2,858,975 5,997,760 (321,035) 707,847 1,089,454
------------ ----------- ------------ ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 67,795,783 17,406,382 30,411,238 1,164,532 (3,606,669) (57,635)
Realized gain distribution
from the Trust................... 44,485,709 33,241,409 26,426,403 1,299,989 10,663 2,325,403
------------ ----------- ------------ ----------- ----------- -----------
NET REALIZED GAIN (LOSS).................. 112,281,492 50,647,791 56,837,641 2,464,521 (3,596,006) 2,267,768
------------ ----------- ------------ ----------- ----------- -----------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 83,560,503 46,113,189 58,618,054 5,502,451 (2,793,834) 1,857,793
End of period.................. 172,562,362 83,560,503 46,113,189 25,291,174 5,502,451 (2,793,834)
------------ ----------- ------------ ----------- ----------- -----------
Change in unrealized appreciation
(depreciation) during the period..... 89,001,859 37,447,314 (12,504,865) 19,788,723 8,296,285 (4,651,627)
------------ ----------- ------------ ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 201,283,351 88,095,105 44,332,776 22,253,244 4,700,279 (2,383,859)
------------ ----------- ------------ ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $198,406,331 $90,954,080 $ 50,330,536 $21,932,209 $ 5,408,126 $(1,294,405)
============ =========== ============ =========== =========== ===========
<CAPTION>
EQUITY OPTIONS (CONTINUED):
------------------------------------
MORGAN STANLEY
EMERGING MARKETS EQUITY (B)
-------------------------------------
1999 1998 1997
----------- ----------- -----------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ -- $ 37,240 $ 16,623
Expenses (Note 3):
Mortality and expense
risk charges..................... 66,405 23,921 2,862
----------- ----------- -----------
NET INVESTMENT INCOME..................... (66,405) 13,319 13,761
----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 363,825 (637,290) (14,566)
Realized gain distribution
from the Trust................... 394,053 -- --
----------- ----------- -----------
NET REALIZED GAIN (LOSS).................. 757,878 (637,290) (14,566)
----------- ----------- -----------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ (2,942,633) (1,079,388) --
End of period.................. 11,044,586 (2,942,633) (1,079,338)
----------- ----------- -----------
Change in unrealized appreciation
(depreciation) during the period..... 13,987,219 (1,863,245) (1,079,388)
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 14,745,097 (2,500,535) (1,093,954)
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $14,678,692 $(2,487,216) $(1,080,193)
=========== =========== ===========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 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+
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
-----------------------------------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK (A) ALLIANCE AGGRESSIVE STOCK
-------------------------------------- ------------------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- --------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 192,580 $ 258,382 $ 2,393 $ 3,163,286 $ 4,461,389 $ 1,311,613
Expenses (Note 3):
Mortality and expense
risk charges..................... 200,684 119,672 26,332 5,481,701 5,581,296 5,299,127
----------- ---------- --------- ------------ ------------ ------------
NET INVESTMENT INCOME..................... (8,104) 138,710 (23,939) (2,318,415) (1,119,907) (3,987,514)
----------- ---------- --------- ------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 4,626,661 354,551 (50,331) (27,888,194) (39,688,312) 28,217,939
Realized gain distribution
from the Trust................... 583,215 268 -- 61,642,419 46,528,461 79,729,154
----------- ---------- --------- ------------ ------------ ------------
NET REALIZED GAIN (LOSS).................. 5,209,876 354,819 (50,331) 33,754,225 6,840,149 107,947,093
----------- ---------- --------- ------------ ------------ ------------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 1,603,083 (820,718) -- 26,715,214 32,695,620 46,617,235
End of period.................. 9,345,381 1,603,083 (820,718) 158,809,890 26,715,214 32,695,620
----------- ---------- --------- ------------ ------------ ------------
Change in unrealized appreciation
(depreciation) during the period..... 7,742,298 2,423,801 (820,718) 132,094,676 (5,980,406) (13,921,615)
----------- ---------- --------- ------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 12,952,174 2,778,620 (871,049) 165,848,901 859,743 94,025,478
----------- ---------- --------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $12,944,070 $2,917,330 $(894,988) $163,530,486 $ (260,164) $ 90,037,964
=========== ========== ========= ============ ============ ============
<CAPTION>
EQUITY OPTIONS (CONTINUED)
-------------------------------------
ALLIANCE SMALL CAP GROWTH (A)
-------------------------------------
1999 1998 1997
----------- ----------- ---------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ -- $ 4,062 $ 4,189
Expenses (Note 3):
Mortality and expense
risk charges..................... 284,347 215,285 41,540
----------- ----------- ---------
NET INVESTMENT INCOME..................... (284,347) (211,223) (37,351)
----------- ----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 4,345,484 (7,585,521) (609,208)
Realized gain distribution
from the Trust................... -- -- 545,833
----------- ----------- ---------
NET REALIZED GAIN (LOSS).................. 4,345,484 (7,585,521) (63,375)
----------- ----------- ---------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 8,780,955 771,812 --
End of period.................. 24,076,277 8,780,955 771,812
----------- ----------- ---------
Change in unrealized appreciation
(depreciation) during the period..... 15,295,322 8,009,143 771,812
----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 19,640,806 423,622 708,437
----------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $19,356,459 $ 212,399 $ 671,086
=========== =========== =========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ 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+
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONCLUDED):
--------------------------------------------------------------------------------------
EQ/ MFS EMERGING WARBURG PINCUS
EVERGREEN (C) GROWTH COMPANIES (A) SMALL COMPANY VALUE (A)
------------- ---------------------------------- -----------------------------------
1999 1999 1998 1997 1999 1998 1997
------------- ----------- ----------- -------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 99 $ -- $ 969 $ 24,358 $ 67,108 $ 171,716 $ 21,651
Expenses (Note 3):
Mortality and expense
risk charges..................... 18 640,976 157,484 18,835 180,999 168,543 44,889
------ ----------- ----------- -------- ----------- ----------- ---------
NET INVESTMENT INCOME..................... 81 (640,976) (156,515) 5,523 (113,891) 3,173 (23,238)
------ ----------- ----------- -------- ----------- ----------- ---------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 20 13,577,250 4,270,964 161,034 (1,591,217) (142,969) 29,803
Realized gain distribution
from the Trust................... -- 3,969,879 -- 296,998 -- -- 110,391
------ ----------- ----------- -------- ----------- ----------- ---------
NET REALIZED GAIN (LOSS).................. 20 17,547,129 4,270,964 458,032 (1,591,217) (142,969) 140,194
------ ----------- ----------- -------- ----------- ----------- ---------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ -- 6,996,177 171,320 -- (4,215,341) (228,709) --
End of period.................. 1,450 77,077,961 6,996,177 171,320 (2,294,882) (4,215,340) (228,709)
------ ----------- ----------- -------- ----------- ----------- ---------
Change in unrealized appreciation
(depreciation) during the period..... 1,450 70,081,784 6,824,857 171,320 1,920,459 (3,986,631) (228,709)
------ ----------- ----------- -------- ----------- ----------- ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 1,470 87,628,913 11,095,821 629,352 329,242 (4,129,600) (88,515)
------ ----------- ----------- -------- ----------- ----------- ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $1,551 $86,987,937 $10,939,306 $634,875 $ 215,351 $(4,126,427) $(111,753)
====== =========== =========== ======== =========== =========== =========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ 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+
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ASSET ALLOCATION OPTIONS:
------------------------------------------------------------------------------
ALLIANCE BALANCED ALLIANCE CONSERVATIVE INVESTORS
------------------------------------- -------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $14,371,360 $12,467,646 $13,756,520 $ 7,166,906 $ 7,360,794 $ 7,217,860
Expenses (Note 3):
Mortality and expense
risk charges..................... 3,107,759 2,765,767 2,544,300 1,244,722 1,136,634 1,066,078
----------- ----------- ----------- ----------- ----------- -----------
NET INVESTMENT INCOME..................... 11,263,601 9,701,879 11,212,220 5,922,184 6,224,160 6,151,782
----------- ----------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 9,085,444 2,733,445 5,910,524 2,045,436 1,432,988 818,458
Realized gain distribution
from the Trust................... 50,638,464 41,525,872 21,117,088 9,007,765 10,768,916 5,486,742
----------- ----------- ----------- ----------- ----------- -----------
NET REALIZED GAIN (LOSS).................. 59,723,908 44,259,317 27,027,612 11,053,201 12,201,904 6,305,200
----------- ----------- ----------- ----------- ----------- -----------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 81,344,863 60,878,286 42,382,824 21,507,963 16,228,145 7,700,135
End of period.................. 93,235,951 81,344,863 60,878,286 23,588,372 21,507,963 16,228,145
----------- ----------- ----------- ----------- ----------- -----------
Change in unrealized appreciation
(depreciation) during the period..... 11,891,088 20,466,577 18,495,462 2,080,409 5,279,818 8,528,010
----------- ----------- ----------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 71,614,996 64,725,894 45,523,074 13,133,610 17,481,722 14,833,210
----------- ----------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $82,878,597 $74,427,773 $56,735,294 $19,055,794 $23,705,882 $20,984,992
=========== =========== =========== =========== =========== ===========
<CAPTION>
ASSET ALLOCATION OPTIONS:
------------------------------------------
ALLIANCE GROWTH INVESTORS
------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust.......... $ 17,092,741 $ 18,252,039 $ 19,280,574
Expenses (Note 3):
Mortality and expense
risk charges..................... 6,207,073 5,194,905 4,570,289
------------ ------------ ------------
NET INVESTMENT INCOME..................... 10,885,668 13,057,134 14,710,285
------------ ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments................... 15,284,978 7,745,162 10,531,767
Realized gain distribution
from the Trust................... 104,658,738 78,060,201 42,780,443
------------ ------------ ------------
NET REALIZED GAIN (LOSS).................. 119,943,716 85,805,363 53,312,210
------------ ------------ ------------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............ 167,705,597 115,056,641 67,150,693
End of period.................. 288,014,018 167,705,600 115,056,641
------------ ------------ ------------
Change in unrealized appreciation
(depreciation) during the period..... 120,308,421 52,648,959 47,905,948
------------ ------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS........................ 240,252,137 138,454,322 101,218,158
------------ ------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS............. $251,137,805 $151,511,456 $115,928,443
============ ============ ============
</TABLE>
- ------------------------------
See Notes to Financial Statements.
+ 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+
STATEMENTS OF OPERATIONS (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ASSET ALLOCATION OPTIONS (CONCLUDED):
-------------------------------------------------------------------------------
EQ/EVERGREEN MERRILL LYNCH
FOUNDATION (C) EQ/PUTNAM BALANCED WORLD STRATEGY (A)
-------------- ------------------------------- ----------------------------
1999 1999 1998 1997 1999 1998 1997
------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from the Trust........... $ 31 $ 42,372 $111,099 $ 46,468 $ 41,786 $ 36,750 $ 17,124
Expenses (Note 3):
Mortality and expense
risk charges...................... 2 39,416 18,744 2,741 18,905 12,469 2,678
------- --------- -------- -------- -------- -------- --------
NET INVESTMENT INCOME...................... 29 2,956 92,355 43,727 22,881 24,281 14,446
------- --------- -------- -------- -------- -------- --------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS (Note 2):
Realized gain (loss)
on investments.................... 302 185,026 348,952 561 197,727 19,432 (3,626)
Realized gain distribution
from the Trust.................... -- 447,013 71,044 31,119 67,733 -- 38,995
------- --------- -------- -------- -------- -------- --------
NET REALIZED GAIN (LOSS)................... 302 632,039 419,996 31,680 265,460 19,432 35,369
------- --------- -------- -------- -------- -------- --------
Unrealized appreciation
(depreciation) on investments:
Beginning of period............. -- 259,883 270,232 -- 187,734 (37,926) --
End of period................... (1,505) (492,259) 259,882 270,232 853,470 187,734 (37,926)
------- --------- -------- -------- -------- -------- --------
Change in unrealized appreciation
(depreciation) during the period...... (1,505) (752,142) (10,350) 270,232 665,736 225,660 (37,926)
------- --------- -------- -------- -------- -------- --------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS......................... (1,203) (120,103) 409,646 301,912 931,196 245,092 (2,557)
------- --------- -------- -------- -------- -------- --------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $(1,174) $(117,147) $502,001 $345,639 $954,077 $269,373 $ 11,889
======= ========= ======== ======== ======== ======== ========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ 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+
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
FIXED INCOME OPTIONS:
------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES ALLIANCE MONEY MARKET
------------------------------------- ------------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ 3,670,605 $ 3,127,402 $ 2,632,191 $ 12,329,959 $ 9,515,464 $ 8,653,507
Net realized gain (loss).............. (194,507) 60,260 (95,509) 528,279 (153,564) (500,365)
Change in unrealized appreciation
(depreciation) on investments..... (3,783,549) 1,523,009 1,009,532 (219,635) 732,101 780,326
----------- ----------- ----------- ------------ ------------- -------------
Net increase (decrease) in net assets
from operations................... (307,451) 4,710,671 3,546,214 12,638,603 10,094,001 8,933,468
----------- ----------- ----------- ------------ ------------- -------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)................. 16,691,635 11,828,290 8,749,531 231,007,033 229,608,273 234,059,930
Benefits and other policy-related
transactions (Note 3)............. (8,904,461) (9,081,050) (5,971,751) (63,463,349) (41,370,215) (40,687,124)
Net transfers among funds and
guaranteed interest account....... (3,762,164) 9,141,659 7,704,724 (91,919,848) (128,607,686) (259,049,840)
----------- ----------- ----------- ------------ ------------- -------------
Net increase (decrease) in net assets
from policy-related transactions.. 4,025,010 11,888,899 10,482,504 75,623,836 59,630,372 (65,677,034)
----------- ----------- ----------- ------------ ------------- -------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4).......... 184,108 (335,126) 13,307 1,075,796 (387,161) 46,036
----------- ----------- ----------- ------------ ------------- -------------
INCREASE (DECREASE) IN NET ASSETS ........ 3,901,667 16,264,444 14,042,025 89,338,235 69,337,212 (56,697,530)
NET ASSETS
BEGINNING OF PERIOD................... 74,972,672 58,708,229 44,666,204 255,090,142 185,752,930 242,450,460
----------- ----------- ----------- ------------ ------------- -------------
NET ASSETS
END OF PERIOD......................... $78,874,339 $74,972,673 $58,708,229 $344,428,377 $ 255,090,142 $ 185,752,930
=========== =========== =========== ============ ============= =============
<CAPTION>
FIXED INCOME OPTIONS:
-----------------------------------------
ALLIANCE QUALITY BOND
-----------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ 11,213,710 $ 9,211,102 $ 8,024,671
Net realized gain (loss).............. (623,206) 4,631,844 (504,580)
Change in unrealized appreciation
(depreciation) on investments..... (16,621,791) 971,979 4,357,540
------------ ------------ ------------
Net increase (decrease) in net assets
from operations................... (6,031,287) 14,814,925 11,877,631
------------ ------------ ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)................. 19,416,861 14,952,560 8,423,097
Benefits and other policy-related
transactions (Note 3)............. (9,082,840) (5,388,113) (3,002,993)
Net transfers among funds and
guaranteed interest account....... 1,195,276 49,220,715 12,678,032
------------ ------------ ------------
Net increase (decrease) in net assets
from policy-related transactions.. 11,529,297 58,785,162 18,098,136
------------ ------------ ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4).......... (553,219) (402,883) 38,587
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS ........ 4,944,791 73,197,204 30,014,354
NET ASSETS
BEGINNING OF PERIOD................... 228,959,641 155,762,437 125,748,083
------------ ------------ ------------
NET ASSETS
END OF PERIOD......................... $233,904,432 $228,959,641 $155,762,437
============ ============ ============
</TABLE>
- ------------------------------
See Notes to Financial Statements.
+ 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+
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
FIXED INCOME OPTIONS (CONCLUDED):
-----------------------------------------
ALLIANCE HIGH YIELD
----------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ 16,489,390 $ 17,442,641 $ 12,128,952
Net realized gain (loss).............. (15,030,554) 1,052,131 7,302,187
Change in unrealized appreciation
(depreciation) on investments..... (7,843,498) (29,521,690) 2,958,012
------------ ------------ ------------
Net increase (decrease) in net assets
from operations................... (6,384,662) (11,026,918) 22,389,151
------------ ------------ ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)................. 30,001,760 36,502,728 26,933,221
Benefits and other policy-related
transactions (Note 3)............. (21,018,230) (20,288,710) (14,530,462)
Net transfers among funds and
guaranteed interest account....... (25,281,076) 2,677,159 26,385,799
------------ ------------ ------------
Net increase (decrease) in net assets
from policy-related transactions.. (16,297,546) 18,891,177 38,788,558
------------ ------------ ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4).......... 2,143,697 (832,263) 40,026
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS......... (20,538,511) 7,031,996 61,217,735
NET ASSETS
BEGINNING OF PERIOD................... 170,372,993 163,340,997 102,123,262
------------ ------------ ------------
NET ASSETS
END OF PERIOD......................... $149,834,482 $170,372,993 $163,340,997
============ ============ ============
<CAPTION>
EQUITY OPTIONS:
----------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK ALLIANCE EQUITY INDEX
---------------------------------------------- ----------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ 1,037,574 $ 1,338,974 $ (767,599) $ 3,845,396 $ 2,095,841 $ 1,632,603
Net realized gain (loss).............. 719,015,346 522,943,560 218,655,522 27,204,757 5,588,532 435,940
Change in unrealized appreciation
(depreciation) on investments..... 13,099,046 122,078,195 272,798,112 92,088,291 73,609,890 41,607,202
-------------- -------------- -------------- ------------ ------------ ------------
Net increase (decrease) in net assets
from operations................... 733,151,966 646,360,729 490,686,035 123,138,444 81,294,263 43,675,745
-------------- -------------- -------------- ------------ ------------ ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)................. 361,261,385 322,874,015 282,279,826 123,310,198 82,390,480 53,262,239
Benefits and other policy-related
transactions (Note 3)............. (302,304,428) (250,079,870) (199,662,183) (60,880,027) (34,756,406) (18,975,147)
Net transfers among funds and
guaranteed interest account....... 49,877,173 24,136,275 56,849,823 222,120,321 74,806,928 67,867,827
-------------- -------------- -------------- ------------ ------------ ------------
Net increase (decrease) in net assets
from policy-related transactions.. 108,834,130 96,930,420 139,467,466 284,550,492 122,441,002 102,154,919
-------------- -------------- -------------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4).......... (5,343,344) (2,780,348) 516,970 (1,148,745) (430,965) 54,423
-------------- -------------- -------------- ------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS......... 836,642,752 740,510,801 630,670,471 406,540,191 203,304,300 145,885,087
NET ASSETS
BEGINNING OF PERIOD................... 2,943,226,440 2,202,715,639 1,572,045,168 443,764,345 240,460,045 94,574,958
-------------- -------------- -------------- ------------ ------------ ------------
NET ASSETS
END OF PERIOD......................... $3,779,869,192 $2,943,226,440 $2,202,715,639 $850,304,536 $443,764,345 $240,460,045
============== ============== ============== ============ ============ ============
</TABLE>
- ------------------------------
See Notes to Financial Statements.
+ 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+
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
---------------------------------------------------------------------------------
CAPITAL
EQ/ALLIANCE CAPITAL GUARDIAN
PREMIER GUARDIAN U.S.
ALLIANCE GROWTH & INCOME GROWTH (C) RESEARCH (D) EQUITY (D)
--------------------------------------- ----------- ------------ ----------
1999 1998 1997 1999 1999 1999
------------ ------------ ----------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ (518,361) $ (253,359) $ 277,338 $ (33,190) $ 71 $ 781
Net realized gain (loss).............. 21,586,560 19,436,864 5,536,668 190,495 2,837 1,959
Change in unrealized appreciation
(depreciation) on investments..... 10,929,728 3,218,908 7,947,265 5,068,707 11,093 17,325
------------ ------------ ----------- ----------- -------- --------
Net increase (decrease) in net assets
from operations................... 31,997,927 22,402,413 13,761,271 5,226,012 14,001 20,065
------------ ------------ ----------- ----------- -------- --------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)................. 43,151,141 30,251,270 17,923,903 6,362,938 63,883 115,934
Benefits and other policy-related
transactions (Note 3)............. (19,321,951) (12,461,722) (6,498,823) (1,028,342) (503) (15,128)
Net transfers among funds and
guaranteed interest account....... 25,186,273 23,343,531 25,301,886 40,652,847 115,765 390,588
------------ ------------ ----------- ----------- -------- --------
Net increase (decrease) in net assets
from policy-related transactions.. 49,015,463 41,133,079 36,726,966 45,987,443 179,145 491,394
------------ ------------ ----------- ----------- -------- --------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4).......... (144,843) (617,058) 19,921 3,902 209 378
------------ ------------ ----------- ----------- -------- --------
INCREASE (DECREASE) IN NET ASSETS......... 80,868,547 62,918,434 50,508,158 51,217,357 193,355 511,837
NET ASSETS
BEGINNING OF PERIOD................... 151,451,102 88,532,668 38,024,510 -- -- --
------------ ------------ ----------- ----------- -------- --------
NET ASSETS
END OF PERIOD......................... $232,319,649 $151,451,102 $88,532,668 $51,217,357 $193,355 $511,837
============ ============ =========== =========== ======== ========
<CAPTION>
EQUITY OPTIONS (CONTINUED):
--------------------------------------
MERRILL LYNCH
BASIC VALUE EQUITY (A)
--------------------------------------
1999 1998 1997
----------- ----------- ----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................. $ 314,801 $ 126,014 $ 26,461
Net realized gain (loss).............. 2,389,365 874,115 40,394
Change in unrealized appreciation
(depreciation) on investments..... 1,362,581 (226,962) 135,003
----------- ----------- ----------
Net increase (decrease) in net assets
from operations................... 4,066,747 773,167 201,858
----------- ----------- ----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)................. 10,931,366 6,388,355 1,097,822
Benefits and other policy-related
transactions (Note 3)............. (3,171,744) (1,430,414) (135,034)
Net transfers among funds and
guaranteed interest account....... 7,845,599 8,794,685 4,661,128
----------- ----------- ----------
Net increase (decrease) in net assets
from policy-related transactions.. 15,605,221 13,752,626 5,623,916
----------- ----------- ----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4).......... (43,053) (1,392,853) 1,202,680
----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS......... 19,628,915 13,132,940 7,028,454
NET ASSETS
BEGINNING OF PERIOD................... 20,161,394 7,028,454 --
----------- ----------- ----------
NET ASSETS
END OF PERIOD......................... $39,790,309 $20,161,394 $7,028,454
=========== =========== ==========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-17
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
--------------------------------------------------------------
MFS
GROWTH
WITH
INCOME (C) MFS RESEARCH (A)
--------------- ----------------------------------------------
1999 1999 1998 1997
--------------- ---------------- ------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income....................... $ 837 $ (155,808) $ (14,907) $ 7,315
Net realized gain (loss).................... (227) 2,081,454 494,412 88,145
Change in unrealized appreciation
(depreciation) on investments........... 20,637 6,720,924 3,063,681 249,382
-------- ----------- ---------- ----------
Net increase (decrease) in net assets
from operations......................... 21,247 8,646,570 3,543,186 344,842
-------- ----------- ---------- ----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)....................... 44,806 12,506,780 6,795,257 1,177,137
Benefits and other policy-related
transactions (Note 3)................... (6,607) (4,808,292) (1,705,211) (162,042)
Net transfers among funds and
guaranteed interest account............. 326,238 4,280,012 12,108,388 6,389,251
-------- ----------- ----------- ----------
Net increase (decrease) in net assets
from policy-related transactions........ 364,437 11,978,500 17,198,434 7,404,346
-------- ----------- ----------- ----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)................ 30,030 (9,698) (2,472,499) 2,003,671
-------- ----------- ------------ ----------
INCREASE (DECREASE) IN NET ASSETS............... 415,714 20,615,372 18,269,121 9,752,859
NET ASSETS
BEGINNING OF PERIOD......................... 0 28,021,980 9,752,859 0
-------- ----------- ----------- ----------
NET ASSETS
END OF PERIOD............................... $415,714 $48,637,352 $28,021,980 $9,752,859
======== =========== =========== ==========
<CAPTION>
EQUITY OPTIONS (CONTINUED):
---------------------------------------------------
EQ/PUTNAM
GROWTH & INCOME VALUE (A)
---------------------------------------------------
1999 1998 1997
-------------- ------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................ $ 168,536 $ 87,004 $ 23,618
Net realized gain (loss)..................... 1,775,493 339,445 28,304
Change in unrealized appreciation
(depreciation) on investments............ (2,633,398) 891,041 269,561
----------- ----------- ----------
Net increase (decrease) in net assets
from operations.......................... (689,369) 1,317,490 321,483
----------- ----------- ----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)........................ 7,146,178 5,099,897 1,149,748
Benefits and other policy-related
transactions (Note 3).................... (2,808,209) (1,485,166) (154,351)
Net transfers among funds and
guaranteed interest account.............. 1,469,187 6,086,532 4,539,465
----------- ----------- ----------
Net increase (decrease) in net assets
from policy-related transactions......... 5,807,156 9,701,263 5,534,862
----------- ----------- ----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)................. (67,263) (1,334,566) 1,202,723
----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS................ 5,050,524 9,684,187 7,059,068
NET ASSETS
BEGINNING OF PERIOD.......................... 16,743,255 7,059,068 0
----------- ----------- ----------
NET ASSETS
END OF PERIOD................................ $21,793,779 $16,743,255 $7,059,068
=========== =========== ==========
<CAPTION>
EQUITY OPTIONS (CONTINUED):
-----------------------------------------------------
T. ROWE PRICE EQUITY INCOME (A)
-----------------------------------------------------
1999 1998 1997
------------- -------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income........................ $ 726,104 $ 549,152 $ 115,907
Net realized gain (loss)..................... 2,737,736 1,272,326 110,474
Change in unrealized appreciation
(depreciation) on investments............ (2,538,268) 512,068 1,073,548
----------- ----------- -----------
Net increase (decrease) in net assets
from operations.......................... 925,572 2,333,546 1,299,929
----------- ----------- -----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)........................ 14,411,461 11,367,975 2,540,460
Benefits and other policy-related
transactions (Note 3).................... (5,261,454) (4,190,748) (351,660)
Net transfers among funds and
guaranteed interest account.............. (470,263) 16,615,531 14,259,773
----------- ----------- -----------
Net increase (decrease) in net assets
from policy-related transactions......... 8,679,744 23,792,758 16,448,573
----------- ----------- -----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)................. (93,180) (1,149,701) 1,308,426
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS................ 9,512,136 24,632,603 19,056,928
NET ASSETS
BEGINNING OF PERIOD.......................... 43,689,531 19,056,928 0
----------- ----------- -----------
NET ASSETS
END OF PERIOD................................ $53,201,667 $43,689,531 $19,056,928
=========== =========== ===========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-18
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
--------------------------------------------------------
ALLIANCE GLOBAL
--------------------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ (2,877,020) $ 2,858,975 $ 5,997,760
Net realized gain (loss)............... 112,281,492 50,647,791 56,837,641
Change in unrealized appreciation
(depreciation) on investments...... 89,001,859 37,447,314 (12,504,865)
------------ ------------ ------------
Net increase (decrease) in net assets
from operations.................... 198,406,331 90,954,080 50,330,536
------------ ------------ ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 71,950,825 78,722,218 85,714,413
Benefits and other policy-related
transactions (Note 3).............. (63,170,211) (52,796,664) (48,793,564)
Net transfers among funds and
guaranteed interest account........ (8,015,060) (21,919,102) (89,131,113)
------------ ------------ ------------
Net increase (decrease) in net assets
from policy-related transactions... 765,554 4,006,452 (52,210,264)
------------ ------------ ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... 23,216 (854,897) 103,777
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS.......... 199,195,101 94,105,635 (1,775,951)
NET ASSETS
BEGINNING OF PERIOD.................... 525,707,133 431,601,498 433,377,449
------------ ------------ ------------
NET ASSETS
END OF PERIOD.......................... $724,902,234 $525,707,133 $431,601,498
============= ============ ============
<CAPTION>
EQUITY OPTIONS (CONTINUED):
-------------------------------------------------------
MORGAN STANLEY
ALLIANCE INTERNATIONAL
-------------------------------------------------------
1999 1998 1997
------------ ------------ -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ (321,035) $ 707,847 $ 1,089,454
Net realized gain (loss)............... 2,464,521 (3,596,006) 2,267,768
Change in unrealized appreciation
(depreciation) on investments...... 19,788,723 8,296,285 (4,651,627)
----------- ----------- -----------
Net increase (decrease) in net assets
from operations.................... 21,932,209 5,408,126 (1,294,405)
----------- ----------- -----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 11,367,096 13,567,993 14,198,839
Benefits and other policy-related
transactions (Note 3).............. (6,261,836) (5,406,284) (4,716,765)
Net transfers among funds and
guaranteed interest account........ (5,340,816) (4,357,456) (3,886,303)
----------- ----------- -----------
Net increase (decrease) in net assets
from policy-related transactions... (235,556) 3,804,253 5,595,771
----------- ----------- -----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... (49,840) (109,052) 11,328
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS.......... 21,646,813 9,103,327 4,312,694
NET ASSETS
BEGINNING OF PERIOD.................... 55,234,942 46,131,615 41,818,921
----------- ----------- -----------
END OF PERIOD.......................... $76,881,755 $55,234,942 $46,131,615
=========== =========== ===========
<CAPTION>
EQUITY OPTIONS (CONTINUED):
-------------------------------------------------------
MORGAN STANLEY
EMERGING MARKETS EQUITY (B)
-------------------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ (66,405) $ 13,319 $ 13,761
Net realized gain (loss)............... 757,878 (637,290) (14,566)
Change in unrealized appreciation
(depreciation) on investments...... 13,987,219 (1,863,245) (1,079,388)
----------- ----------- ----------
Net increase (decrease) in net assets
from operations.................... 14,678,692 (2,487,216) (1,080,193)
----------- ----------- ----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 4,138,455 2,442,975 323,739
Benefits and other policy-related
transactions (Note 3).............. (1,720,293) (488,932) (7,501)
Net transfers among funds and
guaranteed interest account........ 16,198,446 4,158,460 2,483,527
----------- ----------- ----------
Net increase (decrease) in net assets
from policy-related transactions... 18,616,608 6,112,503 2,799,765
----------- ----------- ----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... (1,953,290) 2,496 4,001,184
----------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS.......... 31,342,010 3,627,783 5,720,756
NET ASSETS
BEGINNING OF PERIOD.................... 9,348,539 5,720,756 0
----------- ----------- ----------
NET ASSETS
END OF PERIOD.......................... $40,690,549 $ 9,348,539 $5,720,756
=========== =========== ==========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-19
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONTINUED):
--------------------------------------------------------
T. ROWE PRICE INTERNATIONAL STOCK (A)
--------------------------------------------------------
1999 1998 1997
----------- ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ (8,104) $ 138,710 $ (23,939)
Net realized gain (loss)............... 5,209,876 354,819 (50,331)
Change in unrealized appreciation
(depreciation) on investments...... 7,742,298 2,423,801 (820,718)
----------- ----------- -----------
Net increase (decrease) in net assets
from operations.................... 12,944,070 2,917,330 (894,988)
----------- ----------- -----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 10,327,110 7,881,587 2,268,440
Benefits and other policy-related
transactions (Note 3).............. (3,787,076) (2,527,577) (295,221)
Net transfers among funds and
guaranteed interest account........ 3,167,992 8,401,386 12,953,165
----------- ----------- -----------
Net increase (decrease) in net assets
from policy-related transactions... 9,708,026 13,755,396 14,926,384
----------- ----------- -----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... 1,577 (4,050,846) 4,007,078
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS.......... 22,653,673 12,621,880 18,038,474
NET ASSETS
BEGINNING OF PERIOD.................... 30,660,353 18,038,474 --
----------- ----------- -----------
NET ASSETS
END OF PERIOD.......................... $53,314,026 $30,660,353 $18,038,474
=========== =========== ===========
<CAPTION>
EQUITY OPTIONS (CONTINUED):
---------------------------------------------------------
ALLIANCE AGGRESSIVE STOCK
---------------------------------------------------------
1999 1998 1997
------------- --------------- ---------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ (2,318,415) $ (1,119,907) $ (3,987,514)
Net realized gain (loss)............... 33,754,225 6,840,149 107,947,093
Change in unrealized appreciation
(depreciation) on investments...... 132,094,676 (5,980,406) (13,921,615)
-------------- ------------- -------------
Net increase (decrease) in net assets
from operations.................... 163,530,486 (260,164) 90,037,964
-------------- ------------- -------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 145,241,493 172,792,283 179,662,167
Benefits and other policy-related
transactions (Note 3).............. (117,102,087) (115,442,947) (107,529,554)
Net transfers among funds and
guaranteed interest account........ (113,016,006) (43,660,488) 1,712,877
-------------- ------------- ------------
Net increase (decrease) in net assets
from policy-related transactions... (84,876,600) 13,688,848 73,845,490
-------------- ------------- ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... 2,197,124 (541,559) 223,792
-------------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS.......... 80,851,010 12,887,125 164,107,246
NET ASSETS
BEGINNING OF PERIOD.................... 971,194,053 958,306,928 794,199,683
-------------- ------------- ------------
NET ASSETS
END OF PERIOD.......................... $1,052,045,063 $971,194,053 $958,306,929
============== ============ ============
<CAPTION>
EQUITY OPTIONS (CONTINUED):
------------------------------------------------------
ALLIANCE SMALL CAP GROWTH (A)
------------------------------------------------------
1999 1998 1997
------------ ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ (284,347) $ (211,223) $ (37,351)
Net realized gain (loss)............... 4,345,484 (7,585,521) (63,375)
Change in unrealized appreciation
(depreciation) on investments...... 15,295,322 8,009,143 771,812
----------- ----------- -----------
Net increase (decrease) in net assets
from operations.................... 19,356,459 212,399 671,086
----------- ----------- -----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 16,092,219 14,863,783 2,947,848
Benefits and other policy-related
transactions (Note 3).............. (5,542,747) (3,897,615) (599,875)
Net transfers among funds and
guaranteed interest account........ (8,085,585) 15,043,596 19,670,856
----------- ----------- -----------
Net increase (decrease) in net assets
from policy-related transactions... 2,463,887 26,009,764 22,018,829
----------- ----------- -----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... (99,856) (1,460,161) 1,208,014
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS.......... 21,720,490 24,762,002 23,897,929
NET ASSETS
BEGINNING OF PERIOD.................... 48,659,931 23,897,929 --
----------- ----------- -----------
NET ASSETS
END OF PERIOD.......................... $70,380,421 $48,659,931 $23,897,929
=========== =========== ===========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-20
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY OPTIONS (CONCLUDED):
------------------------------------------------------------------
EQ/ MFS EMERGING
EVERGREEN (C) GROWTH COMPANIES (A)
------------- --------------------------------------------------
1999 1999 1998 1997
------------- ------------- ----------- -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ 81 $ (640,976) $ (156,515) $ 5,523
Net realized gain (loss)............... 20 17,547,129 4,270,964 458,032
Change in unrealized appreciation
(depreciation) on investments...... 1,450 70,081,784 6,824,857 171,320
------- ------------ ----------- -----------
Net increase (decrease) in net assets
from operations.................... 1,551 86,987,937 10,939,306 634,875
------- ------------ ----------- -----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 6,341 32,825,036 11,533,783 1,598,358
Benefits and other policy-related
transactions (Note 3).............. (434) (13,737,378) (2,705,605) (294,924)
Net transfers among funds and
guaranteed interest account........ 21,204 76,182,753 25,975,152 8,886,415
------- ------------ ----------- -----------
Net increase (decrease) in net assets
from policy-related transactions... 27,111 95,270,411 34,803,330 10,189,849
------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... 18 (72,131) (2,575,513) 2,004,977
------- ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS.......... 28,680 182,186,217 43,167,123 12,829,701
NET ASSETS
BEGINNING OF PERIOD.................... -- 55,996,824 12,829,701 --
------- ------------ ----------- -----------
NET ASSETS
END OF PERIOD.......................... $28,680 $238,183,041 $55,996,824 $12,829,701
======= ============ =========== ===========
<CAPTION>
EQUITY OPTIONS (CONCLUDED):
-------------------------------------------------
WARBURG PINCUS
SMALL COMPANY VALUE (A)
-------------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income.................. $ (113,891) $ 3,173 $ (23,238)
Net realized gain (loss)............... (1,591,217) (142,969) 140,194
Change in unrealized appreciation
(depreciation) on investments...... 1,920,459 (3,986,631) (228,709)
----------- ----------- -----------
Net increase (decrease) in net assets
from operations.................... 215,351 (4,126,427) (111,753)
----------- ----------- -----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3).................. 11,009,658 13,378,658 4,397,634
Benefits and other policy-related
transactions (Note 3).............. (4,607,292) (4,042,103) (608,891)
Net transfers among funds and
guaranteed interest account........ (7,372,698) 7,112,708 20,737,304
----------- ----------- -----------
Net increase (decrease) in net assets
from policy-related transactions... (970,332) 16,449,263 24,526,047
----------- ----------- -----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE IN
SEPARATE ACCOUNT FP (Note 4)........... (23,731) (622,058) 611,853
----------- ----------- -----------
INCREASE (DECREASE) IN NET ASSETS.......... (778,712) 11,700,778 25,026,147
NET ASSETS
BEGINNING OF PERIOD.................... 36,726,925 25,026,147 --
----------- ----------- -----------
NET ASSETS
END OF PERIOD.......................... $35,948,213 $36,726,925 $25,026,147
=========== =========== ===========
</TABLE>
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-21
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ASSET ALLOCATION OPTIONS:
----------------------------------------------------
ALLIANCE BALANCED
----------------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income......................... $ 11,263,601 $ 9,701,879 $ 11,212,220
Net realized gain (loss)...................... 59,723,908 44,259,317 27,027,612
Change in unrealized appreciation
(depreciation) on investments............. 11,891,088 20,466,577 18,495,462
------------ ------------ ------------
Net increase (decrease) in net assets
from operations........................... 82,878,597 74,427,773 56,735,294
------------ ------------ ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)......................... 45,762,044 46,234,769 48,722,966
Benefits and other policy-related
transactions (Note 3)..................... (55,698,939) (48,368,610) (48,611,396)
Net transfers among funds and
guaranteed interest account............... (25,094,055) (4,765,223) (55,377,177)
------------ ------------ ------------
Net increase (decrease) in net assets
from policy related-transactions.......... (35,030,950) (6,899,064) (55,265,607)
------------ ------------ ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE
IN SEPARATE ACCOUNT FP (Note 4)............... 34,900 (601,644) 106,438
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS................. 47,882,547 66,927,065 1,576,125
NET ASSETS
BEGINNING OF PERIOD........................... 498,829,011 431,901,946 430,325,821
------------ ------------ ------------
NET ASSETS
END OF PERIOD................................. $546,711,558 $498,829,011 $431,901,946
============ ============ ============
<CAPTION>
ASSET ALLOCATION OPTIONS:
----------------------------------------------------------
ALLIANCE CONSERVATIVE INVESTORS
----------------------------------------------------------
1999 1998 1997
------------ ------------ -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income......................... $ 5,922,184 $ 6,224,160 $ 6,151,782
Net realized gain (loss)...................... 11,053,201 12,201,904 6,305,200
Change in unrealized appreciation
(depreciation) on investments............. 2,080,409 5,279,818 8,528,010
------------ ------------ ------------
Net increase (decrease) in net assets
from operations........................... 19,055,794 23,705,882 20,984,992
------------ ------------ ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)......................... 27,333,794 26,438,125 30,425,833
Benefits and other policy-related
transactions (Note 3)..................... (25,964,810) (23,690,706) (24,998,155)
Net transfers among funds and
guaranteed interest account............... (4,292,515) (6,267,736) (18,978,233)
------------ ------------ ------------
Net increase (decrease) in net assets
from policy related-transactions.......... (2,923,531) (3,520,317) (13,550,555)
------------ ------------ ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE
IN SEPARATE ACCOUNT FP (Note 4)............... (195,000) (365,872) 44,115
------------ ------------ ------------
INCREASE (DECREASE) IN NET ASSETS................. 15,937,263 19,819,693 7,478,552
NET ASSETS
BEGINNING OF PERIOD........................... 202,163,700 182,344,007 174,865,455
------------ ------------ ------------
NET ASSETS
END OF PERIOD................................. $218,100,963 $202,163,700 $182,344,007
============= ============ ============
<CAPTION>
ASSET ALLOCATION OPTIONS:
----------------------------------------------------------
ALLIANCE GROWTH INVESTORS
----------------------------------------------------------
1999 1998 1997
-------------- ------------ ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income......................... $ 10,885,668 $ 13,057,134 $ 14,710,285
Net realized gain (loss)...................... 119,943,716 85,805,363 53,312,210
Change in unrealized appreciation
(depreciation) on investments............. 120,308,421 52,648,959 47,905,948
-------------- ------------ ------------
Net increase (decrease) in net assets
from operations........................... 251,137,805 151,511,456 115,928,443
-------------- ------------ ------------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)......................... 118,892,312 128,264,748 139,280,509
Benefits and other policy-related
transactions (Note 3)..................... (114,804,492) (99,015,298) (95,656,635)
Net transfers among funds and
guaranteed interest account............... (15,949,611) (25,554,600) (35,207,298)
-------------- ------------ ------------
Net increase (decrease) in net assets
from policy related-transactions.......... (11,861,791) 3,694,850 8,416,576
-------------- ------------ ------------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE
IN SEPARATE ACCOUNT FP (Note 4)............... (471,570) (418,319) 194,270
-------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS................. 238,804,444 154,787,987 124,539,289
NET ASSETS
BEGINNING OF PERIOD........................... 978,087,905 823,299,918 698,760,629
-------------- ------------ ------------
NET ASSETS
END OF PERIOD................................. $1,216,892,349 $978,087,905 $823,299,918
============== ============ ============
</TABLE>
- ------------------------------
See Notes to Financial Statements.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-22
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ASSET ALLOCATION OPTIONS (CONCLUDED):
---------------------------------------------------------------------
EQ/EVERGREEN
FOUNDATION (C) EQ/PUTNAM BALANCED
-------------- -------------------------------------------------
1999 1999 1998 1997
-------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income................... $ 29 $ 2,956 $ 92,355 $ 243,727
Net realized gain (loss)................ 302 632,039 419,996 31,680
Change in unrealized appreciation
(depreciation) on investments....... (1,505) (752,142) (10,350) 270,232
------- ---------- ----------- ----------
Net increase (decrease) in net assets
from operations..................... (1,174) (117,147) 502,001 345,639
------- ---------- ----------- ----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)................... 93 2,976,182 1,733,126 213,829
Benefits and oth`er policy-related
transactions (Note 3)............... (53) (738,901) (429,944) (60,092)
Net transfers among funds and
guaranteed interest account......... 2,377 381,163 2,537,998 1,458,185
------- ---------- ----------- ----------
Net increase (decrease) in net assets
from policy related-transactions.... 2,417 2,618,444 3,841,180 1,611,922
------- ---------- ----------- ----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE
IN SEPARATE ACCOUNT FP (Note 4)......... 1,605 (79,687) (2,292,055) 2,000,806
------- ---------- ----------- ----------
INCREASE (DECREASE) IN NET ASSETS........... 2,848 2,421,610 2,051,126 3,958,367
NET ASSETS
BEGINNING OF PERIOD..................... -- 6,009,493 3,958,367 --
------- ---------- ----------- ----------
NET ASSETS
END OF PERIOD........................... $ 2,848 $8,431,103 $ 6,009,493 $ 3,958,367
======= ========== =========== ===========
<CAPTION>
ASSET ALLOCATION OPTIONS (CONCLUDED):
-----------------------------------------------
MERRILL LYNCH
WORLD STRATEGY (A)
-----------------------------------------------
1999 1998 1997
------------- ---------- -----------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income...................... $ 22,881 $ 24,281 $ 14,446
Net realized gain (loss)................... 265,460 19,432 35,369
Change in unrealized appreciation
(depreciation) on investments.......... 665,736 225,660 (37,926)
---------- ---------- ----------
Net increase (decrease) in net assets
from operations........................ 954,077 269,373 11,889
---------- ---------- ----------
FROM POLICY-RELATED TRANSACTIONS:
Net premiums (Note 3)...................... 1,304,821 1,050,984 334,133
Benefits and oth`er policy-related
transactions (Note 3).................. (511,416) (294,100) (41,646)
Net transfers among funds and
guaranteed interest account............ (504,202) 1,271,852 1,374,499
---------- ---------- ----------
Net increase (decrease) in net assets
from policy related-transactions....... 289,203 2,028,736 1,666,986
---------- ---------- ----------
NET INCREASE (DECREASE) IN AMOUNT
RETAINED BY EQUITABLE LIFE
IN SEPARATE ACCOUNT FP (Note 4)............ (999,768) (849,043) 2,000,771
---------- ---------- ----------
INCREASE (DECREASE) IN NET ASSETS.............. 243,512 1,449,066 3,679,646
NET ASSETS
BEGINNING OF PERIOD........................ 5,128,712 3,679,646 --
----------- ----------- ----------
NET ASSETS
END OF PERIOD.............................. $5,372,224 $5,128,712 $3,679,646
========== ========== ==========
</TABLE>
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-23
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. General
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.
EQ Advisors Trust ("EQAT" or "Trust") commenced operations on May 1, 1997.
EQAT is an open-ended diversified management investment company that sells
shares to separate accounts of insurance companies. Each portfolio has
separate investment objectives.
For periods prior to October 18, 1999, the Alliance portfolios (other than
EQ/Alliance Premier Growth) were part of The Hudson River Trust ("HRT"). On
October 18, 1999, a Substitution of new portfolios of EQAT for the
portfolios of HRT was performed. At that time assets of each of the HRT
portfolios were transferred to the corresponding new portfolios of EQAT.
Class IA shares and Class IB shares of the HRT became Class IA shares and
Class IB shares of EQAT.
Prior to the Substitution, Alliance Capital Management L.P., an indirect,
majority-owned subsidiary of Equitable Life, was investment adviser for all
HRT portfolios. Post substitution, Alliance continues as investment adviser
for the Alliance portfolios (including EQ/Alliance Premier Growth).
Effective September 1999, Equitable Life serves as investment manager of
EQAT. As such, Equitable Life oversees the activities of the investment
advisers with respect to EQAT and is responsible for retaining or
discontinuing the services of those advisers. Prior to September 1999, AXA
Advisors, LLC (formerly EQ Financial Consultants, Inc.), a subsidiary of
Equitable Life, served as investment manager to EQAT.
AXA Advisors, LLC, and Equitable Distributors, Inc., earn fees from EQAT
under distribution agreements held with the Trust. Equitable Life also earns
fees under an investment management agreement with EQAT. Alliance earns fees
under an investment advisory agreement with Equitable Life.
The Account consists of thirty variable investment options:
FIXED INCOME OPTIONS:
Domestic Fixed Income:
o Alliance Intermediate Government Securities
o Alliance Money Market
o Alliance Quality Bond
Aggressive Fixed Income:
o Alliance High Yield
EQUITY OPTIONS:
Domestic Equity:
o Alliance Common Stock
o Alliance Equity Index
o Alliance Growth & Income
o EQ/Alliance Premier Growth
o Capital Guardian Research
o Capital Guardian U.S. Equity
o Merrill Lynch Basic Value Equity
o MFS Growth with Income
o MFS Research
o EQ/Putnam Growth & Income Value
o T. Rowe Price Equity Income
International Equity:
o Alliance Global
o Alliance International
o Morgan Stanley Emerging Markets Equity
o T. Rowe Price International Stock
Aggressive Equity:
o Alliance Aggressive Stock
o Alliance Small Cap Growth
o EQ/Evergreen
o MFS Emerging Growth Companies
o Warburg Pincus Small Company Value
ASSET ALLOCATION OPTIONS:
o Alliance Balanced
o Alliance Conservative Investors
o Alliance Growth Investors
o EQ/Evergreen Foundation
o EQ/Putnam Balanced
o Merrill Lynch World Strategy
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-24
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
1. General (Continued)
The assets in each fund are invested in Class IA shares or Class IB shares
of a corresponding mutual fund portfolio ("Portfolio") of EQAT. Class IA and
IB shares are offered by EQAT at net asset value. Both classes of shares are
subject to fees for investment management and advisory services and other
Trust expenses. Class IA shares are not subject to distribution fees imposed
pursuant to a distribution plan. Class IB 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 EQAT, 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 IB shares in respect of activities primarily intended to result
in the sale of the Class IB shares. These fees are reflected in the net
asset value of the shares.
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 Plus(SM)
Second Series. Incentive Life Plus policies issued with a prior prospectus
are referred to as Incentive Life Plus Original Series. Incentive Life
policies sold during 1999 and thereafter ("Incentive Life sales 1999 and
after") reflect an investment in Class IB of the Alliance portfolios and are
different from Incentive Life products (see Note 6).
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
variable investment options 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 $(140,321,294), $56,300,263, and $165,714,430
for the years ended 1999, 1998 and 1997, respectively, are included in Net
Transfers among variable investment options. The net assets of any variable
investment option may not be less than the aggregate of the policyowners'
accounts allocated to that variable investment option. 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.
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 EQAT and are valued at the net asset
values per share of the respective Portfolios. The net asset value is
determined by EQAT using the market or fair value of the underlying assets
of the Portfolio less liabilities.
Investment transactions are recorded on the trade date. Dividend and capital
gains are declared and distributed by the Trust at the end of each year and
are automatically reinvested on the ex-dividend date. Realized gains and
losses include (1) gains and losses on redemptions of EQAT shares
(determined on the identified cost basis) and (2) Trust distributions
representing the net realized gains on Trust investment transactions.
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.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-25
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
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 mortality and administrative charges. These
charges are withdrawn from the 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.
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 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 contributions (withdrawals) by
Equitable Life by investment fund:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------
VARIABLE INVESTMENT OPTIONS 1999 1998 1997
--------------------------- ---- ---- ----
<S> <C> <C> <C>
FIXED INCOME OPTIONS:
Alliance Intermediate Government Securities $ (194,809) $ (685,662) $ --
Alliance Money Market (531,900) (1,591,380) --
Alliance Quality Bond (1,882,364) (1,509,018) --
Alliance High Yield 1,254,634 (1,839,368) --
</TABLE>
+ Formerly known as Equitable Variable Life Insurance Company Separate
Account FP.
FSA-26
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
4. Amounts Retained by Equitable Life in Separate Account FP (Continued)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------
VARIABLE INVESTMENT OPTIONS 1999 1998 1997
--------------------------- ---- ---- ----
<S> <C> <C> <C>
EQUITY OPTIONS:
Alliance Common Stock $(24,309,506) $(17,381,053) $ --
Alliance Equity Index (4,878,705) (2,293,340) --
Alliance Growth & Income (1,193,588) (1,285,852) --
EQ/Alliance Premier Growth (60,529) -- --
Capital Guardian Research -- -- --
Capital Guardian U.S. Equity -- -- --
Merrill Lynch Basic Value Equity (196,510) (1,459,281) 1,200,000
MFS Growth with Income 29,599 -- --
MFS Research (218,336) (2,558,541) 2,000,000
EQ/Putnam Growth & Income Value (177,637) (1,391,562) 1,200,000
T. Rowe Price Equity Income (365,303) (1,667,503) 1,300,000
Alliance Global (3,414,228) (3,632,595) --
Alliance International (370,877) (398,118) --
Morgan Stanley Emerging Markets Equity (2,019,694) (21,425) 4,000,000
T. Rowe Price International Stock (194,106) (4,170,518) 4,000,000
Alliance Aggressive Stock (3,284,577) (6,122,856) --
Alliance Small Cap Growth (384,204) (1,675,446) 1,200,000
EQ/Evergreen -- -- --
MFS Emerging Growth Companies (713,109) (2,732,997) 2,000,000
Warburg Pincus Small Company Value (204,730) (790,600) 600,000
ASSET ALLOCATION OPTIONS:
Alliance Balanced $(3,060,971) $(3,367,411) $ --
Alliance Conservative Investors (1,439,722) (1,502,507) --
Alliance Growth Investors (6,678,645) (5,613,223) --
EQ/Evergreen Foundation -- -- --
EQ/Putnam Balanced (119,105) (2,310,799) 2,000,000
Merrill Lynch World Strategy (1,018,674) (861,511) 2,000,000
</TABLE>
5. Distribution and Servicing Agreements
Equitable Life has entered into Distribution and Servicing Agreements with
AXA Advisors, LLC, an affiliate of Equitable Life, and EDI, whereby
registered representatives of AXA Advisors, LLC, 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.
+ 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 (CONTINUED)
DECEMBER 31, 1999
6. Investment Returns
The tables on the following pages show the gross and net investment returns
with respect to the variable investment options for the periods shown. The
net return for each variable investment option is based upon beginning and
ending net unit value for a policy and is not based on the average net
assets in the variable investment option during such period. Gross return is
equal to the total return earned by the underlying EQAT investment which is
after deduction of EQAT expense.
The Separate Account rates of return attributable to Incentive Life,
Survivorship Incentive Life, Incentive Life 2000, Incentive Life Plus Second
Series and Champion 2000 policyowners are different than those attributable
to Survivorship 2000, 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, Survivorship
Incentive Life and Survivorship 2000 for the Alliance Money Market, Alliance
Intermediate Government Securities, Alliance Quality Bond, Alliance High
Yield, Alliance Growth & Income, Alliance Equity Index, Alliance Common
Stock, Alliance Global, Alliance International, Alliance Aggressive,
Alliance Small Cap Growth, Alliance Conservative Investors, Alliance
Balanced, Alliance Growth Investors are different from other products in the
same variable investment option because distribution fees of 0.25% of the
average daily assets of the variable investment option are deducted (see
Note 1).
+ 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 (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE,
- ---------------
INCENTIVE LIFE 2000,
- --------------------
INCENTIVE LIFE PLUS SECOND SERIES
- ---------------------------------
AND CHAMPION 2000*
- -----------------
FIXED INCOME OPTIONS:
<TABLE>
<CAPTION>
APRIL 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
ALLIANCE INTERMEDIATE ------------------------------------------------------------------------------------------
GOVERNMENT SECURITIES 1999 1998 1997 1996 1995 1994 1993 1992 1991
- --------------------- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 0.02% 7.74% 7.29% 3.78% 13.33% (4.37)% 10.58% 5.60% 12.26%
Net return........................ (0.46)% 7.10% 6.65% 3.15% 12.65% (4.95)% 9.88% 4.96% 11.60%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ---------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 4.96% 5.34% 5.42% 5.33% 5.74% 4.02% 3.00% 3.56% 6.18% 8.24%
Net return........................ 4.35% 4.71% 4.79% 4.70% 5.11% 3.39% 2.35% 2.94% 5.55% 7.59%
</TABLE>
<TABLE>
<CAPTION>
OCTOBER 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
-------------------------------------------------------- -----------------
ALLIANCE QUALITY BOND 1999 1998 1997 1996 1995 1994 1993
- --------------------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... (2.00)% 8.69% 9.14% 5.36% 17.02% (5.10)% (0.51)%
Net return........................ (2.59)% 8.03% 8.49% 4.73% 16.32% (5.67)% (0.66)%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ------------------ ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... (3.35)% (5.15)% 18.47% 22.89% 19.92% (2.79)% 23.15% 12.31% 24.46% (1.12)%
Net return........................ (3.93)% (5.72)% 17.76% 22.14% 19.20% (3.37)% 22.41% 11.64% 23.72% (1.71)%
</TABLE>
EQUITY OPTIONS:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ----------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 25.19% 29.39% 29.40% 24.28% 32.45% (2.14)% 24.84% 3.22% 37.88% (8.12)%
Net return........................ 24.44% 28.61% 28.44% 23.53% 31.66% (2.73)% 24.08% 2.60% 37.06% (8.67)%
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 30 (A)
YEARS ENDED DECEMBER 31, TO DECEMBER 31,
----------------------------------------------- -----------------
ALLIANCE EQUITY INDEX 1999 1998 1997 1996 1995 1994
- --------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross return...................... 20.38% 28.07% 32.58% 22.39% 36.48% 1.08%
Net return........................ 19.66% 27.30% 31.77% 21.65% 35.66% 0.58%
</TABLE>
<TABLE>
<CAPTION>
OCTOBER (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
-------------------------------------------------------- -----------------
ALLIANCE GROWTH & INCOME 1999 1998 1997 1996 1995 1994 1993
- ------------------------ ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 18.66% 20.86% 26.90% 20.09% 24.07% (0.58)% (0.25)%
Net return........................ 17.95% 20.14% 25.99% 19.36% 23.33% (1.17)% (0.41)%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return and net return reflects
performance for the periods indicated, and are not annualized rates of
return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-29
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE,
- ---------------
INCENTIVE LIFE 2000,
- --------------------
INCENTIVE LIFE PLUS SECOND SERIES
- ---------------------------------
AND CHAMPION 2000*
- -----------------
EQUITY OPTIONS (CONTINUED):
JUNE 4 (C) TO
DECEMBER 31,
----------------
EQ/ALLIANCE PREMIER GROWTH 1999
- -------------------------- ----
Gross return....................... 18.97%
Net return......................... 18.52%
AUGUST 30 (C) TO
DECEMBER 31,
----------------
CAPITAL GUARDIAN RESEARCH 1999
- ------------------------- ----
Gross return....................... 7.10%
Net return......................... 6.67%
AUGUST 30 (C) TO
DECEMBER 31,
-----------------
CAPITAL GUARDIAN U.S. EQUITY 1999
- ---------------------------- ----
Gross return...................... 3.76%
Net return........................ 3.32%
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
MERRILL LYNCH BASIC VALUE EQUITY 1999 1998 1997
- -------------------------------- ---- ---- ----
Gross return...................... 19.00% 11.59% 16.99%
Net return........................ 18.23% 10.91% 16.55%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
MFS GROWTH WITH INCOME 1999
- ---------------------- ----
Gross return...................... 8.76%
Net return........................ 8.06%
MAY 1 (A) to
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
MFS RESEARCH 1999 1998 1997
- -------------- ---- ---- ----
Gross return...................... 23.12% 24.11% 16.07%
Net return........................ 22.38% 23.36% 15.59%
MAY 1 (A) to
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
EQ/PUTNAM GROWTH & INCOME VALUE 1999 1998 1997
- ------------------------------- ---- ---- ----
Gross return...................... (1.27)% 12.75% 16.23%
Net return........................ (1.95)% 12.14% 15.75%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return and net return reflects
performance for the periods indicated, and are not annualized rates of
return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-30
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE,
- ---------------
INCENTIVE LIFE 2000,
- --------------------
INCENTIVE LIFE PLUS SECOND SERIES
- ---------------------------------
AND CHAMPION 2000*
- -----------------
EQUITY OPTIONS (CONTINUED):
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ -------------
T. ROWE PRICE EQUITY INCOME 1999 1998 1997
- --------------------------- ---- ---- ----
Gross return...................... 3.54% 9.11% 22.11%
Net return........................ 2.93% 8.42% 21.64%
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- --------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 38.53% 21.80% 11.66% 14.60% 18.81% 5.23% 32.09% (0.50)% 30.55% (6.07)%
Net return........................ 37.70% 21.07% 10.88% 13.91% 18.11% 4.60% 31.33% (1.10)% 29.77% (6.63)%
</TABLE>
<TABLE>
<CAPTION>
APRIL 3 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------- -----------------
ALLIANCE INTERNATIONAL 1999 1998 1997 1996 1995
- ---------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return...................... 37.31% 10.57% (2.98)% 9.82% 11.29%
Net return........................ 36.96% 9.90% (3.63)% 9.15% 10.79%
</TABLE>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31 DECEMBER 31,
MORGAN STANLEY EMERGING ----------------------------- ---------------
MARKETS EQUITY 1999 1998 1997
- -------------- ---- ---- ----
Gross return...................... 95.82% (27.10)% (20.16)%
Net return........................ 94.57% (27.46)% (20.37)%
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
T. ROWE PRICE INTERNATIONAL
STOCK 1999 1998 1997
- --------------------------- ---- ---- ----
Gross return...................... 31.92% 13.68% (1.49)%
Net return........................ 31.08% 13.01% (1.90)%
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE AGGRESSIVE STOCK 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 18.84% 0.29% 10.94% 22.20% 31.63% (3.81)% 16.77% (3.16)% 86.86% 8.17%
Net return........................ 18.13% (0.31)% 10.14% 21.46% 30.85% (4.39)% 16.05% (3.74)% 85.75% 7.51%
</TABLE>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
ALLIANCE SMALL CAP GROWTH 1999 1998 1997
- ------------------------- ---- ---- ----
Gross return...................... 27.75% (4.28)% 26.74%
Net return........................ 27.14% (4.85)% 26.18%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-31
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE,
- ---------------
INCENTIVE LIFE 2000,
- --------------------
INCENTIVE LIFE PLUS SECOND SERIES
- ---------------------------------
AND CHAMPION 2000*
- -----------------
EQUITY OPTIONS (CONCLUDED):
JUNE 4 (B) TO
DECEMBER 31,
-----------------
EQ/EVERGREEN 1999
- ------------ ----
Gross return...................... 9.70%
Net return........................ 9.06%
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
MFS EMERGING GROWTH COMPANIES 1999 1998 1997
- ----------------------------- ---- ---- ----
Gross return...................... 73.62% 34.57% 22.42%
Net return........................ 72.63% 33.71% 21.95%
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
WARBURG PINCUS
SMALL COMPANY VALUE 1999 1998 1997
- ------------------- ---- ---- ----
Gross return...................... 1.80% (10.02)% 19.15%
Net return........................ 1.19% (10.55)% 18.65%
ASSET ALLOCATION OPTIONS:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
ALLIANCE BALANCED 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ----------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 17.79% 18.11% 15.06% 11.68% 19.75% (8.02)% 12.28% (2.84)% 41.26% 0.24 %
Net return........................ 17.09% 17.40% 14.30% 11.00% 19.03% (8.57)% 11.64% (3.42)% 40.42% (0.36)%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
ALLIANCE CONSERVATIVE
INVESTORS 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ----------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 10.14% 13.88% 13.25% 5.21% 20.40% (4.10)% 10.76% 5.72% 19.87% 6.37%
Net return........................ 9.48% 13.20% 12.55% 4.57% 19.68% (4.67)% 10.15% 5.09% 19.16% 5.73%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------
ALLIANCE GROWTH INVESTORS 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return...................... 26.58% 19.13% 16.87% 12.61% 26.37% (3.15)% 15.26% 4.90% 48.89% 10.66%
Net return........................ 25.82% 18.41% 16.07% 11.93% 25.62% (3.73)% 14.58% 4.27% 48.01% 10.00%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
-----------------
EQ/EVERGREEN FOUNDATION 1999
- ----------------------- ----
Gross return..................... 7.38%
Net return....................... 6.72%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-32
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE,
- ---------------
INCENTIVE LIFE 2000,
- --------------------
INCENTIVE LIFE PLUS SECOND SERIES
- ---------------------------------
AND CHAMPION 2000*
- -----------------
ASSET ALLOCATION OPTIONS (CONCLUDED):
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
EQ/PUTNAM BALANCED 1999 1998 1997
- ------------------ ---- ---- ----
Gross return...................... 0.01% 11.92% 14.38%
Net return........................ (0.56)% 11.14% 14.02%
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
MERRILL LYNCH WORLD STRATEGY 1999 1998 1997
- ---------------------------- ---- ---- ----
Gross return...................... 21.35% 6.81% 4.70%
Net return........................ 20.62% 6.18% 4.29%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-33
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE SALES 1999 AND AFTER
- ------------------------------------
SURVIVORSHIP INCENTIVE LIFE*
- ---------------------------
FIXED INCOME OPTIONS:
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES 1999
- ---------------------- ----
Gross return...................... (0.23)%
Net return........................ 0.32%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE MONEY MARKET 1999
- --------------------- ----
Gross return...................... 4.71%
Net return........................ 4.10%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE QUALITY BOND 1999
- --------------------- ----
Gross return...................... (2.25)%
Net return........................ (0.95)%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE HIGH YIELD 1999
- ------------------ ----
Gross return...................... (3.58)%
Net return........................ (4.16)%
EQUITY OPTIONS:
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE COMMON STOCK 1999
- --------------------- ----
Gross return...................... 24.88%
Net return........................ 24.13%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE EQUITY INDEX 1999
- --------------------- ----
Gross return...................... 20.08%
Net return........................ 9.66%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE GROWTH & INCOME 1999
- ------------------------ ----
Gross return...................... 18.37%
Net return........................ 6.33%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-34
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE SALES 1999 AND AFTER,
- ------------------------------------
SURVIVORSHIP INCENTIVE LIFE*
- ---------------------------
EQUITY OPTIONS (CONTINUED):
JUNE 4 (C) TO
DECEMBER 31,
-----------------
EQ/ALLIANCE PREMIER GROWTH 1999
- -------------------------- ----
Gross return...................... 18.97%
Net return........................ 18.52%
AUGUST 30 (C) TO
DECEMBER 31,
-----------------
CAPITAL GUARDIAN RESEARCH 1999
- ------------------------- ----
Gross return...................... 7.10%
Net return........................ 6.67%
AUGUST 30 (C) TO
DECEMBER 31,
-----------------
CAPITAL GUARDIAN U.S. EQUITY 1999
- ---------------------------- ----
Gross return...................... 3.76%
Net return........................ 3.32%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
MERRILL LYNCH BASIC VALUE EQUITY 1999
- -------------------------------- ----
Gross return...................... 19.00%
Net return........................ 18.23%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
MFS GROWTH WITH INCOME 1999
- ---------------------- ----
Gross return...................... 8.76%
Net return........................ 8.06%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
MFS RESEARCH 1999
- ------------ ----
Gross return...................... 23.12%
Net return........................ 22.38%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
EQ/PUTNAM GROWTH & INCOME VALUE 1999
- ------------------------------- ----
Gross return...................... (1.27)%
Net return........................ (1.95)%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-35
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE SALES 1999 AND AFTER
- -----------------------------------
SURVIVORSHIP INCENTIVE LIFE*
- ---------------------------
EQUITY OPTIONS (CONTINUED):
JUNE 4 (B) TO
DECEMBER 31,
--------------
T. ROWE PRICE EQUITY INCOME 1999
- --------------------------- ----
Gross return........................... 3.54%
Net return............................. 2.93%
JUNE 4 (B) TO
DECEMBER 31,
--------------
ALLIANCE GLOBAL 1999
- --------------- ----
Gross return........................... 38.17%
Net return............................. 27.23%
JUNE 4 (B) TO
DECEMBER 31,
--------------
ALLIANCE INTERNATIONAL 1999
- --------------------- ----
Gross return........................... 36.90%
Net return............................. 34.41%
JUNE 4 (B) TO
DECEMBER 31,
--------------
MORGAN STANLEY EMERGING MARKETS EQUITY 1999
- -------------------------------------- ----
Gross return........................... 95.82%
Net return............................. 94.57%
JUNE 4 (B) TO
DECEMBER 31,
--------------
T. ROWE PRICE INTERNATIONAL STOCK 1999
- --------------------------------- ----
Gross return........................... 31.92%
Net return............................. 31.08%
JUNE 4 (B) TO
DECEMBER 31,
--------------
ALLIANCE AGGRESSIVE STOCK 1999
- ------------------------- ----
Gross return........................... 18.55%
Net return............................. 17.83%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-36
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE SALES 1999 AND AFTER,
- ------------------------------------
SURVIVORSHIP INCENTIVE LIFE*
- ---------------------------
EQUITY OPTIONS (CONCLUDED):
JUNE 4 (B) TO
DECEMBER 31,
--------------
ALLIANCE SMALL CAP GROWTH 1999
- ------------------------- ----
Gross return........................... 27.46%
Net return............................. 26.86%
JUNE 4 (B) TO
DECEMBER 31,
--------------
EQ/EVERGREEN 1999
- ------------ ----
Gross return........................... 9.70%
Net return............................. 9.06%
JUNE 4 (B) TO
DECEMBER 31,
--------------
MFS EMERGING GROWTH COMPANIES 1999
- ----------------------------- ----
Gross return........................... 73.62%
Net return............................. 72.63%
JUNE 4 (B) TO
DECEMBER 31,
--------------
WARBURG PINCUS SMALL COMPANY VALUE 1999
- ---------------------------------- ----
Gross return........................... 1.80%
Net return............................. 1.19%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-37
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE SALES 1999 AND AFTER,
- ------------------------------------
SURVIVORSHIP INCENTIVE LIFE*
- ---------------------------
ASSET ALLOCATION OPTIONS:
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE BALANCED 1999
- ----------------- ----
Gross return...................... 17.50%
Net return........................ 10.98%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE CONSERVATIVE INVESTORS 1999
- ------------------------------- ----
Gross return...................... 9.87%
Net return........................ 5.79%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
ALLIANCE GROWTH INVESTORS 1999
- ------------------------- ----
Gross return...................... 26.27%
Net return........................ 15.36%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
EQ/EVERGREEN FOUNDATION 1999
- ----------------------- ----
Gross return...................... 7.38%
Net return........................ 6.72%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
EQ/PUTNAM BALANCED 1999
- -------------------- ----
Gross return...................... 0.01%
Net return........................ (0.56)%
JUNE 4 (B) TO
DECEMBER 31,
-----------------
MERRILL LYNCH WORLD STRATEGY 1999
- ---------------------------- ----
Gross return...................... 21.35%
Net return........................ 20.62%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-38
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
SURVIVORSHIP 2000
- -----------------
FIXED INCOME OPTIONS:
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- -----------------
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES 1999 1998 1997 1996 1995 1994 1993 1992
- ------------------------------------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 0.02% 7.74% 7.29% 3.78% 13.33% (4.37)% 10.58% 0.90%
Net return.................................... (0.76)% 6.78% 6.33% 2.84% 12.31% (5.23)% 9.55% 0.56%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- -----------------
ALLIANCE MONEY MARKET 1999 1998 1997 1996 1995 1994 1993 1992
- --------------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 4.96% 5.34% 5.42% 5.33% 5.74% 4.02% 3.00% 1.11%
Net return.................................... 4.04% 4.39% 4.47% 4.38% 4.80% 3.08% 2.04% 0.77%
</TABLE>
<TABLE>
<CAPTION>
OCTOBER 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------- -----------------
ALLIANCE QUALITY BOND 1999 1998 1997 1996 1995 1994 1993
- --------------------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. (2.00)% 8.69% 9.14% 5.36% 17.02% (5.10)% (0.51)%
Net return.................................... (2.88)% 7.71% 8.16% 4.41% 15.97% (5.95)% (0.73)%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- ----------------
ALLIANCE HIGH YIELD 1999 1998 1997 1996 1995 1994 1993 1992
- ------------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. (3.35)% (5.15)% 18.47% 22.89% 19.92% (2.79)% 23.15% 1.84%
Net return.................................... (4.22)% (6.00)% 17.40% 21.77% 18.84% (3.66)% 22.04% 1.50%
</TABLE>
EQUITY OPTIONS:
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- -----------------
ALLIANCE COMMON STOCK 1999 1998 1997 1996 1995 1994 1993 1992
- ---------------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 25.19% 29.39% 29.40% 24.28% 32.45% (2.14)% 24.84% 5.28%
Net return.................................... 24.07% 28.22% 28.06% 23.15% 31.26% (3.02)% 23.70% 4.93%
</TABLE>
<TABLE>
<CAPTION>
MARCH 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------------ -----------------
ALLIANCE EQUITY INDEX 1999 1998 1997 1996 1995 1994
- -------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross return.................................. 20.38% 28.07% 32.58% 22.39% 36.48% 1.08%
Net return.................................... 19.30% 26.92% 31.38% 21.28% 35.26% 0.33%
</TABLE>
<TABLE>
<CAPTION>
OCTOBER 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------- -----------------
ALLIANCE GROWTH & INCOME 1999 1998 1997 1996 1995 1994 1993
- ------------------------ ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 18.66% 20.86% 26.90% 20.09% 24.07% (0.58)% (0.25)%
Net return.................................... 17.60% 19.78% 25.61% 19.00% 22.96% (1.47)% (0.48)%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-39
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
SURVIVORSHIP 2000
- -----------------
EQUITY OPTIONS (CONTINUED):
JUNE 4 (C) TO
DECEMBER 31,
-----------------
EQ/ALLIANCE PREMIER GROWTH 1999
- -------------------------- ----
Gross return.................................. 18.97%
Net return.................................... 18.28%
AUGUST 30 (C) TO
DECEMBER 31,
-----------------
CAPITAL GUARDIAN RESEARCH 1999
- ------------------------- ----
Gross return.................................. 7.10%
Net return.................................... 6.46%
AUGUST 30 (C) TO
DECEMBER 31,
-----------------
CAPITAL GUARDIAN U.S. EQUITY 1999
- -------------------------- ----
Gross return.................................. 3.76%
Net return.................................... 3.11%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
MERRILL LYNCH BASIC VALUE EQUITY 1999 1998 1997
- -------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 19.00% 11.59% 16.99%
Net return.................................... 17.87% 10.58% 16.32%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
-----------------
MFS GROWTH WITH INCOME 1999
- ---------------------- ----
Gross return.................................. 8.76%
Net return.................................... 7.74%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
MFS RESEARCH 1999 1998 1997
- ------------ ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 23.12% 24.11% 16.07%
Net return.................................... 22.01% 22.99% 15.36%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
EQ/PUTNAM GROWTH & INCOME VALUE 1999 1998 1997
- ------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. (1.27)% 12.75% 16.23%
Net return.................................... (2.25)% 11.81% 15.52%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ --------------
T. ROWE PRICE EQUITY INCOME FUND 1999 1998 1997
- -------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 3.54% 9.11% 22.11%
Net return.................................... 2.62% 8.09% 21.40%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-40
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
SURVIVORSHIP 2000
- -----------------
EQUITY OPTIONS (CONTINUED):
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------------- ----------------
ALLIANCE GLOBAL 1999 1998 1997 1996 1995 1994 1993 1992
- --------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return................................. 38.53% 21.80% 11.66% 14.60% 18.81% 5.23% 32.09% 4.87%
Net return................................... 37.28% 20.70% 10.54% 13.56% 17.75% 4.29% 30.93% 44.52%
</TABLE>
<TABLE>
<CAPTION>
APRIL 3 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
-------------------------------------------------- ----------------
ALLIANCE
INTERNATIONAL 1999 1998 1997 1996 1995
- ------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return................................. 37.31% 10.57% (2.98)% 9.82% 11.29%
Net return................................... 36.55% 9.57% (3.93)% 8.82% 10.55%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------- ---------------
MORGAN STANLEY EMERGING MARKETS EQUITY 1999 1998 1997
- -------------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 95.82% (27.10)% (20.16)%
Net return.................................... 93.98% (27.68)% (20.46)%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ ------------
T. ROWE PRICE INTERNATIONAL STOCK 1999 1998 1997
- --------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 31.92% 13.68% (1.49)%
Net return.................................... 30.68% 12.67% (2.10)%
</TABLE>
<TABLE>
<CAPTION>
MARCH 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- --------------
ALLIANCE AGGRESSIVE STOCK 1999 1998 1997 1996 1995 1994 1993 1992
- ------------------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 18.84% 0.29% 10.94% 22.20% 31.63% (3.81)% 16.77% 11.49%
Net return.................................... 17.77% (0.62)% 9.81% 21.09% 30.46% (4.68)% 15.70% 11.11%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ -------------
ALLIANCE SMALL CAP GROWTH 1999 1998 1997
- ------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 27.75% (4.28)% 26.74%
Net return.................................... 26.76% (5.14)% 25.92%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
-----------------
EQ/EVERGREEN 1999
- ------------ ----
Gross return.................................. 9.70%
Net return.................................... 8.73%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ -------------
MFS EMERGING GROWTH COMPANIES 1999 1998 1997
- ----------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 73.62% 34.57% 22.42%
Net return.................................... 72.11% 33.31% 21.70%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-41
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
SURVIVORSHIP 2000
- -----------------
EQUITY OPTIONS (CONCLUDED):
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ -------------
WARBURG PINCUS SMALL COMPANY VALUE 1999 1998 1997
- ---------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 1.80% (10.02)% 19.15%
Net return.................................... 0.88% (10.82)% 18.41%
</TABLE>
ASSET ALLOCATION OPTIONS:
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- ----------------
ALLIANCE BALANCED 1999 1998 1997 1996 1995 1994 1993 1992
- ----------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 17.79% 18.11% 15.06% 11.68% 19.75% (8.02)% 12.28% 5.37%
Net return.................................... 16.73% 17.05% 13.96% 10.67% 18.68% (8.84)% 11.30% 5.02%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- ----------------
ALLIANCE CONSERVATIVE INVESTORS 1999 1998 1997 1996 1995 1994 1993 1992
- ------------------------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 10.14% 13.88% 13.25% 5.21% 20.40% (4.10)% 10.76% 1.38%
Net return.................................... 9.15% 12.85% 12.21% 4.26% 19.32% (4.96)% 9.81% 1.04%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 17 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- ----------------
ALLIANCE GROWTH INVESTORS 1999 1998 1997 1996 1995 1994 1993 1992
- ------------------------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................................. 26.58% 19.13% 16.87% 12.61% 26.37% (3.15)% 15.26% 6.89%
Net return.................................... 25.44% 18.06% 15.72% 11.59% 25.24% (4.02)% 14.24% 6.53%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
----------------
EQ/EVERGREEN FOUNDATION 1999
- ----------------------- ----
Gross return.................................. 7.38%
Net return.................................... 6.14%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ -------------
EQ/PUTNAM BALANCED 1999 1998 1997
- ------------------ ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 0.01% 11.92% 14.38%
Net return.................................... (0.86)% 10.81% 13.79%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------ -------------
MERRILL LYNCH WORLD STRATEGY 1999 1998 1997
- ---------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.................................. 21.35% 6.81% 4.70%
Net return.................................... 20.25% 5.86% 4.08%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-42
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE PLUS ORIGINAL SERIES*(B)
- ---------------------------------------
FIXED INCOME OPTIONS:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
ALLIANCE INTERMEDIATE GOVERNMENT
SECURITIES 1999 1998 1997 1996 1995
- -------------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return ......................... 0.02% 7.74% 7.29% 3.78% 13.31%
Net return ........................... 0.02% 7.74% 7.29% 3.78% 13.31%
ALLIANCE MONEY MARKET
- ----------------------
Gross return ......................... 4.96% 5.34% 5.42% 5.33% 5.69%
Net return ........................... 4.96% 5.34% 5.42% 5.33% 5.69%
ALLIANCE QUALITY BOND
- ---------------------
Gross return ......................... (2.00)% 8.69% 9.14% 5.36% 17.13%
Net return ........................... (2.00)% 8.69% 9.14% 5.36% 17.13%
ALLIANCE HIGH YIELD
- -------------------
Gross return ......................... (3.35)% (5.15)% 18.47% 22.89% 19.95%
Net return ........................... (3.35)% (5.15)% 18.47% 22.89% 19.95%
</TABLE>
EQUITY OPTIONS:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 1999 1998 1997 1996 1995
- --------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return ......................... 25.19% 29.39% 29.40% 24.28% 33.07%
Net return ........................... 25.19% 29.39% 29.40% 24.28% 33.07%
ALLIANCE EQUITY INDEX
- ---------------------
Gross return ......................... 20.38% 28.07% 32.57% 22.38% 36.53%
Net return ........................... 20.38% 28.07% 32.57% 22.38% 36.53%
ALLIANCE GROWTH & INCOME
- ------------------------
Gross return ......................... 18.66% 20.86% 26.90% 20.09% 24.38%
Net return ........................... 18.66% 20.86% 26.90% 20.09% 24.38%
</TABLE>
JUNE 4 (C) TO
DECEMBER 31,
------------------
EQ/ALLIANCE PREMIER GROWTH 1999
- -------------------------- ----
Gross return ......................... 18.97%
Net return ........................... 19.55%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
Date as of which net premiums under the policies were first allocated to the
variable investment option. The returns for the periods indicated are not
annual rates of return. There are no Separate Account asset charges for this
policy and therefore the gross and net rates of return are the same. The
rate of return for the year ended December 31, 1995 indicated is not an
annualized rate of return.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-43
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE PLUS ORIGINAL SERIES*(B)
- ---------------------------------------
EQUITY OPTIONS (CONTINUED):
AUGUST 30 (C) TO
DECEMBER 31,
------------------
CAPITAL GUARDIAN RESEARCH 1999
- ------------------------- ----
Gross return ......................... 7.10%
Net return ........................... 8.04%
CAPITAL GUARDIAN U.S. EQUITY
- ----------------------------
Gross return ......................... 3.76%
Net return ........................... 3.56%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
MERRILL LYNCH BASIC VALUE EQUITY 1999 1998 1997
- -------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 19.00% 11.59% 17.02%
Net return ........................... 19.00% 11.59% 17.02%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
------------------
MFS GROWTH WITH INCOME 1999
- ---------------------- ----
Gross return ......................... 8.76%
Net return ........................... 3.50%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
MFS RESEARCH 1999 1998 1997
- ------------ ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 23.12% 24.11% 16.05%
Net return ........................... 23.12% 24.11% 16.05%
EQ/PUTNAM GROWTH & INCOME VALUE
- -------------------------------
Gross return ......................... (1.27)% 12.75% 14.48%
Net return ........................... (1.27)% 12.75% 14.48%
T. ROWE PRICE EQUITY INCOME
- ---------------------------
Gross return ......................... 3.54% 9.11% 22.13%
Net return ........................... 3.54% 9.11% 22.13%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
Date as of which net premiums under the policies were first allocated to the
variable investment option. The returns for the periods indicated are not
annual rates of return. There are no Separate Account asset charges for this
policy and therefore the gross and net rates of return are the same. The
rate of return for the year ended December 31, 1995 indicated is not an
annualized rate of return.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-44
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE PLUS ORIGINAL SERIES*(B)
- ---------------------------------------
EQUITY OPTIONS (CONTINUED):
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
ALLIANCE GLOBAL 1999 1998 1997 1996 1995
- --------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return ......................... 38.53% 21.80% 11.66% 14.60% 19.38%
Net return ........................... 38.53% 21.80% 11.66% 14.60% 19.38%
</TABLE>
<TABLE>
<CAPTION>
APRIL 30 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
--------------------------------------------------- --------------------------------
ALLIANCE INTERNATIONAL 1999 1998 1997 1996 1995
- ---------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return ......................... 37.31% 10.57% (3.05)% 9.81% 11.29%
Net return ........................... 37.31% 10.57% (3.05)% 9.81% 11.29%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 20 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ----------------
MORGAN STANLEY EMERGING MARKETS EQUITY 1999 1998 1997
- -------------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 95.82% (27.10)% (20.19)%
Net return ........................... 95.82% (27.10)% (20.19)%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
T. ROWE PRICE INTERNATIONAL STOCK 1999 1998 1997
- --------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 31.92% 13.68% (1.50)%
Net return ........................... 31.92% 13.68% (1.50)%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
Date as of which net premiums under the policies were first allocated to the
variable investment option. The returns for the periods indicated are not
annual rates of return. There are no separate account asset charges for this
policy and therefore the gross and net rates of return are the same. The
rate of return for the year ended December 31, 1998 indicated is not an
annualized rate of return.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-45
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE PLUS ORIGINAL SERIES*(B)
- ---------------------------------------
EQUITY OPTIONS (CONCLUDED):
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
ALLIANCE AGGRESSIVE STOCK 1999 1998 1997 1996 1995
- ------------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return ......................... 18.84% 0.29% 10.94% 22.20% 33.00%
Net return ........................... 18.84% 0.29% 10.94% 22.20% 33.00%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 20 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ----------------
ALLIANCE SMALL CAP GROWTH 1999 1998 1997
- ------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 27.75% (4.28)% 26.69%
Net return ........................... 27.75% (4.28)% 26.69%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
------------------
EQ/EVERGREEN 1999
- ------------ ----
Gross return ......................... 9.70%
Net return ........................... 7.10%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
MFS EMERGING GROWTH COMPANIES 1999 1998 1997
- ----------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 73.62% 34.57% 22.44%
Net return ........................... 73.62% 34.57% 22.44%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
WARBURG PINCUS SMALL COMPANY VALUE 1999 1998 1997
- ---------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 1.80% (10.02)% 19.13%
Net return ........................... 1.80% (10.02)% 19.13%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
Date as of which net premiums under the policies were first allocated to the
variable investment option. The returns for the periods indicated are not
annual rates of return. There are no separate account asset charges for this
policy and therefore the gross and net rates of return are the same. The
rate of return for the year ended December 31, 1998 indicated is not an
annualized rate of return.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-46
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
INCENTIVE LIFE PLUS ORIGINAL SERIES*(B)
- ---------------------------------------
ASSET ALLOCATION OPTIONS:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
ALLIANCE BALANCED 1999 1998 1997 1996 1995
- ----------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return ......................... 17.79% 18.11% 15.06% 11.68% 20.32%
Net return ........................... 17.79% 18.11% 15.06% 11.68% 20.32%
ALLIANCE CONSERVATIVE INVESTORS
- -------------------------------
Gross return ......................... 10.14% 13.88% 13.25% 5.21% 20.59%
Net return ........................... 10.14% 13.88% 13.25% 5.21% 20.59%
ALLIANCE GROWTH INVESTORS
- -------------------------
Gross return ......................... 26.58% 19.13% 16.87%% 12.61% 26.92%
Net return ........................... 27.58% 19.13% 16.87%% 12.61% 26.92%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
------------------
EQ/EVERGREEN FOUNDATION 1999
- ----------------------- ----
Gross return ......................... 7.38%
Net return ........................... 6.97%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- --------------
EQ/PUTNAM BALANCED 1999 1998 1997
- ------------------ ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 0.01% 11.92% 14.48%
Net return ........................... 0.01% 11.92% 14.48%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
MERRILL LYNCH WORLD STRATEGY 1999 1998 1997
- ---------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 21.35% 6.81% 4.71%
Net return ........................... 21.35% 6.81% 4.71%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* Sales of Incentive Life Plus Original Series commenced on January 6, 1995.
Date as of which net premiums under the policies were first allocated to the
variable investment option. The returns for the periods indicated are not
annual rates of return. There are no separate account asset charges for this
policy and therefore the gross and net rates of return are the same. The
rate of return for the year ended December 31, 1998 indicated is not an
annualized rate of return.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-47
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
IL PROTECTOR*
- -------------
FIXED INCOME OPTIONS:
<TABLE>
<CAPTION>
AUGUST 5 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------- ---------------------------
ALLIANCE INTERMEDIATE
GOVERNMENT SECURITIES 1999 1998 1997 1996
- --------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Gross return ......................... 0.02% 7.74% 7.29% 3.78%
Net return ........................... (0.66)% 6.88% 6.43% 4.49%
ALLIANCE MONEY MARKET
- ---------------------
Gross return ......................... 4.96% 5.34% 5.42% 5.33%
Net return ........................... 4.14% 4.50% 4.57% 2.98%
ALLIANCE QUALITY BOND
- ---------------------
Gross return ......................... (2.00)% 8.69% 9.14% 5.36%
Net return ........................... (2.78)% 7.82% 8.27% 7.86%
ALLIANCE HIGH YIELD
- -------------------
Gross return ......................... (3.35)% (5.15)% 18.47% 22.89%
Net return ........................... (4.13)% (5.91)% 17.52% 13.90%
</TABLE>
EQUITY OPTIONS:
<TABLE>
<CAPTION>
AUGUST 5 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------- ---------------------------
ALLIANCE COMMON STOCK 1999 1998 1997 1996
- --------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Gross return ......................... 25.19% 29.39% 29.40% 24.28%
Net return ........................... 24.19% 28.35% 28.18% 17.44%
ALLIANCE EQUITY INDEX
- ---------------------
Gross return ......................... 20.38% 28.07% 32.58% 22.39%
Net return ........................... 19.42% 27.05% 31.51% 16.25%
ALLIANCE GROWTH AND INCOME
- --------------------------
Gross return ......................... 18.66% 20.86% 26.90% 20.09%
Net return ........................... 17.71% 19.90% 25.74% 15.63%
</TABLE>
JUNE 4 (C) TO
DECEMBER 31,
-------------------
EQ/ALLIANCE PREMIER GROWTH 1999
- -------------------------- ----
Gross return ......................... 18.97%
Net return ........................... 18.36%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-48
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
IL PROTECTOR*
- -------------
EQUITY OPTIONS (CONTINUED):
AUGUST 30 (C) TO
DECEMBER 31,
-------------------
CAPITAL GUARDIAN RESEARCH 1999
- ------------------------- ----
Gross return ......................... 7.10%
Net return ........................... 6.53%
AUGUST 30 (C) TO
DECEMBER 31,
-------------------
CAPITAL GUARDIAN U.S. EQUITY 1999
- ---------------------------- ----
Gross return ......................... 3.76%
Net return ........................... 3.28%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- -----------------
MERRILL LYNCH BASIC VALUE EQUITY 1999 1998 1997
- -------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return ......................... 19.00% 11.59% 16.99%
Net return ........................... 17.99% 10.69% 16.40%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
-------------------
MFS GROWTH WITH INCOME 1999
- ---------------------- ----
Gross return ......................... 8.76%
Net return ........................... 7.85%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
MFS RESEARCH 1999 1998 1997
- ------------ ---- ---- ----
<S> <C> <C> <C>
Gross return.......................... 23.12% 24.11% 16.07%
Net return............................ 22.13% 23.11% 15.43%
EQ/PUTNAM GROWTH & INCOME VALUE
- ---------------------------------
Gross return.......................... (1.27)% 12.75% 16.23%
Net return............................ (2.15)% 11.92% 13.87%
T. ROWE PRICE EQUITY INCOME
- ---------------------------
Gross return.......................... 3.54% 9.11% 22.11%
Net return............................ 2.73% 8.20% 21.48%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-49
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
IL PROTECTOR*
- -------------
EQUITY OPTIONS (CONTINUED):
<TABLE>
<CAPTION>
AUGUST 5 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------- ----------------
ALLIANCE GLOBAL 1999 1998 1997 1996
- --------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Gross return ......................... 38.53% 21.80% 11.66% 14.60%
Net return ........................... 37.42% 20.83% 10.65% 6.78%
ALLIANCE INTERNATIONAL
- ----------------------
Gross return ......................... 37.31% 10.57% (2.98)% 9.82%
Net return ........................... 36.68% 9.68% (3.83)% 2.11%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
MORGAN STANLEY EMERGING MARKETS EQUITY 1999 1998 1997
- -------------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.......................... 95.82% (27.10)% (20.16)%
Net return............................ 94.18% (27.60)% (20.43)%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
T. ROWE PRICE INTERNATIONAL STOCK 1999 1998 1997
- --------------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.......................... 31.92% 13.68% (1.49)%
Net return............................ 30.81% 12.79% (2.03)%
</TABLE>
<TABLE>
<CAPTION>
AUGUST 5 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------------------------- ---------------
ALLIANCE AGGRESSIVE STOCK 1999 1998 1997 1996
- ------------------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Gross return ......................... 18.84% 0.29% 10.94% 22.20%
Net return ........................... 17.89% (0.52)% 9.92% 6.22%
</TABLE>
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
ALLIANCE SMALL CAP GROWTH 1999 1998 1997
- ------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.......................... 27.75% (4.28)% 26.74%
Net return............................ 26.89% (5.04)% 26.01%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
------------------
EQ/EVERGREEN 1999
- ------------ ----
Gross return.......................... 9.70%
Net return............................ 6.81%
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-50
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
IL PROTECTOR*
- -------------
EQUITY OPTIONS: (CONCLUDED):
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
MFS EMERGING GROWTH COMPANIES 1999 1998 1997
- ----------------------------- ---- ---- ----
<S> <C> <C> <C>
Gross return.......................... 73.62% 34.57% 22.42%
Net return............................ 72.28% 33.44% 21.78%
WARBURG PINCUS SMALL COMPANY VALUE
- -----------------------------------
Gross return.......................... 1.80% (10.02)% 19.15%
Net return............................ 0.99% (10.73)% 18.49%
</TABLE>
ASSET ALLOCATION OPTIONS:
<TABLE>
<CAPTION>
AUGUST 5 (A)
TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
------------------------------------------------------- ---------------
ALLIANCE BALANCED 1999 1998 1997 1996
- ----------------- ---- ---- ---- ----
<S> <C> <C> <C> <C>
Gross return ......................... 17.79% 18.11% 15.06% 11.68%
Net return ........................... 16.85% 17.17% 14.07% 8.67%
ALLIANCE CONSERVATIVE INVESTORS
- -------------------------------
Gross return ......................... 10.14% 13.88% 13.25% 5.21%
Net return ........................... 9.26% 12.97% 12.32% 7.94%
ALLIANCE GROWTH INVESTORS
- -------------------------
Gross return ......................... 26.58% 19.13% 16.87% 12.61%
Net return ........................... 25.57% 18.18% 15.84% 9.38%
</TABLE>
JUNE 4 (B) TO
DECEMBER 31,
-------------------
EQ/EVERGREEN FOUNDATION 1999
- ----------------------- ----
Gross return.......................... 7.38%
Net return............................ 9.83%
<TABLE>
<CAPTION>
MAY 1 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
----------------------------------- ---------------
EQ/PUTNAM BALANCED 1999 1998 1997
- ------------------ ---- ---- ----
<S> <C> <C> <C>
Gross return.......................... 0.01% 11.92% 14.38%
Net return............................ (0.76)% 10.92% 13.87%
MERRILL LYNCH WORLD STRATEGY
- ----------------------------
Gross return.......................... 21.35% 6.81% 4.70%
Net return............................ 20.37% 5.97% 4.15%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-51
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1999
RATES OF RETURN:
SP-FLEX
- -------
FIXED INCOME OPTIONS:
<TABLE>
<CAPTION>
APRIL 1 (A) TO
ALLIANCE INTERMEDIATE YEARS ENDED DECEMBER 31, DECEMBER 31,
GOVERNMENT --------------------------------------------------------------------------- -------------------
SECURITIES 1999 1998 1997 1996 1995 1994 1993 1992 1991
- ---------- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 0.02% 7.74% 7.29% 3.78% 13.33% (4.37)% 10.58% 5.60% 12.10%
Net return................ (1.65)% 5.82% 5.38% 1.91% 11.31% (6.08)% 8.57% 3.71% 10.59%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE MONEY MARKET 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- --------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 4.96% 5.34% 5.42% 5.33% 5.74% 4.02% 3.00% 3.56% 6.17% 8.24%
Net return................ 3.11% 3.46% 3.54% 3.44% 3.86% 2.17% 1.13% 1.71% 4.29% 6.30%
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 1 (A) TO
YEARS ENDED DECEMBER 31 DECEMBER 31,
--------------------------------------------------------------------------- -------------------
ALLIANCE QUALITY BOND 1999 1998 1997 1996 1995 1994
- --------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross return.............. (2.00)% 8.69% 9.14% 5.36% 17.02% (2.20)%
Net return................ (3.75)% 6.75% 7.19% 3.47% 14.94% (2.35)%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE HIGH YIELD 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. (3.35)% (5.15)% 18.47% 22.89% 19.92% (2.79)% 23.15% 12.31% 24.46% (1.12)%
Net return................ (5.08)% (6.84)% 16.35% 20.68% 17.79% (4.52)% 20.96% 10.30% 22.25% (2.89)%
</TABLE>
EQUITY OPTIONS:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE COMMON STOCK 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- --------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 25.19% 29.39% 29.40% 24.28% 32.45% (2.14)% 24.84% 3.23% 37.87% (8.12)%
Net return................ 22.96% 27.08% 26.91% 22.04% 30.10% (3.88)% 22.60% 1.38% 35.43% (9.76)%
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 1 (A) TO
YEARS ENDED DECEMBER 31 DECEMBER 31,
--------------------------------------------------------------------------- -------------------
ALLIANCE EQUITY INDEX 1999 1998 1997 1996 1995 1994
- --------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross return.............. 20.38% 28.07% 32.58% 22.39% 36.48% (2.54)%
Net return................ 18.24% 25.79% 30.21% 20.19% 34.06% (2.69)%
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 1 (A) TO
YEARS ENDED DECEMBER 31 DECEMBER 31,
--------------------------------------------------------------------------- -------------------
ALLIANCE GROWTH & INCOME 1999 1998 1997 1996 1995 1994
- ------------------------ ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross return.............. 18.66% 20.86% 26.90% 20.09% 24.07% (3.40)%
Net return................ 16.55% 18.71% 24.50% 17.93% 21.87% (3.55)%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE GLOBAL 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- --------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 38.53% 21.80% 11.66% 14.60% 18.81% 5.23% 32.09% (0.50)% 30.55% (6.07)%
Net return................ 36.06% 19.63% 9.56% 12.54% 16.70% 3.36% 29.77% (2.28)% 28.23% (7.75)%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
FSA-52
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT FP+
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 1999
RATES OF RETURN (CONCLUDED):
SP-FLEX
- -------
EQUITY OPTIONS (CONCLUDED):
<TABLE>
<CAPTION>
APRIL 3 (A) TO
YEARS ENDED DECEMBER 31, DECEMBER 31,
---------------------------------------------------------------- ----------------
ALLIANCE INTERNATIONAL 1999 1998 1997 1996 1995
- ---------------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Gross return.............. 37.31% 10.57% (3.05)% 9.82% 11.29%
Net return................ 35.33% 8.60% (4.78)% 7.84% 9.82%
</TABLE>
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE AGGRESSIVE STOCK 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.............. 18.84% 0.29% 10.94% 22.20% 31.63% (3.81)% 16.77% (3.16)% 86.86% 8.17%
Net return................ 16.72% (1.50)% 8.83% 20.00% 29.30% (5.53)% 14.67% (4.89)% 83.54% 6.23%
</TABLE>
ASSET ALLOCATION SERIES:
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
ALLIANCE BALANCED 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
- ----------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross return.................. 17.79% 18.11% 15.06% 11.68% 19.75% (8.02)% 12.28% (2.83)% 41.27% 0.24 %
Net return.................... 15.69% 16.01% 12.94% 9.67% 17.62% (9.66)% 10.31% (4.57)% 38.75% (1.56)%
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 1 (A) TO
ALLIANCE YEARS ENDED DECEMBER 31 DECEMBER 31,
CONSERVATIVE --------------------------------------------------------------------------- -------------------
INVESTORS 1999 1998 1997 1996 1995 1994
- --------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross return.................. 10.14% 13.88% 13.25% 5.21% 20.40% (1.83)%
Net return.................... 8.18% 11.85% 11.21% 3.32% 18.26% (1.98)%
</TABLE>
<TABLE>
<CAPTION>
SEPTEMBER 1 (A) TO
YEARS ENDED DECEMBER 31 DECEMBER 31,
--------------------------------------------------------------------------- -------------------
ALLIANCE GROWTH INVESTORS 1999 1998 1997 1996 1995 1994
- ------------------------- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Gross return.................. 26.58% 19.13% 16.87% 12.61% 26.37% (3.16)%
Net return.................... 24.33% 17.00% 14.69% 10.58% 24.12% (3.31)%
</TABLE>
- -------------------
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
* 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.
(a) Date as of which net premiums under the policies were first allocated to the
Fund. The gross return and the net return for the periods indicated are not
annualized rates of return.
(b) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflect performance on an
annualized basis. The net return reflects performance for the periods
indicated.
(c) Date as of which net premiums under the policies were first allocated to the
variable investment option. The gross return reflects performance from the
Portfolio's commencement date of April 30, 1999 and are not annualized rates
of return. The net return reflects performance for the periods indicated.
- ------------------------------
See Notes to Financial Statements.
(a) Commencement of Operations on May 1, 1997.
(b) Commencement of Operations on August 20, 1997.
(c) Commencement of Operations on June 4, 1999.
(d) Commencement of Operations on August 30, 1999.
+ Formerly known as Equitable Variable Life Insurance Company Separate Account
FP.
FSA-53
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholder of
The Equitable Life Assurance Society of the United States
In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, of shareholder's equity and comprehensive
income and of cash flows present fairly, in all material respects, the financial
position of The Equitable Life Assurance Society of the United States and its
subsidiaries ("Equitable Life") at December 31, 1999 and 1998, and the results
of their operations and their cash flows for each of the three years in the
period ended December 31, 1999, in conformity with accounting principles
generally accepted in the United States of America. These financial statements
are the responsibility of Equitable Life's management; our responsibility is to
express an opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
PricewaterhouseCoopers LLP
New York, New York
February 1, 2000
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
1999 1998
------------- --------------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 18,599.7 $ 18,993.7
Held to maturity, at amortized cost..................................... 133.2 125.0
Mortgage loans on real estate............................................. 3,270.0 2,809.9
Equity real estate........................................................ 1,160.2 1,676.9
Policy loans.............................................................. 2,257.3 2,086.7
Other equity investments.................................................. 671.2 713.3
Investment in and loans to affiliates..................................... 1,201.8 928.5
Other invested assets..................................................... 911.6 808.2
------------- -------------
Total investments..................................................... 28,205.0 28,142.2
Cash and cash equivalents................................................... 628.0 1,245.5
Deferred policy acquisition costs........................................... 4,033.0 3,563.8
Other assets................................................................ 3,868.3 3,054.6
Closed Block assets......................................................... 8,607.3 8,632.4
Separate Accounts assets.................................................... 54,453.9 43,302.3
------------- -------------
TOTAL ASSETS................................................................ $ 99,795.5 $ 87,940.8
============= =============
LIABILITIES
Policyholders' account balances............................................. $ 21,351.4 $ 20,857.5
Future policy benefits and other policyholders' liabilities................. 4,777.6 4,726.4
Short-term and long-term debt............................................... 1,407.9 1,181.7
Other liabilities........................................................... 3,133.6 3,474.3
Closed Block liabilities.................................................... 9,025.0 9,077.0
Separate Accounts liabilities............................................... 54,332.5 43,211.3
------------- -------------
Total liabilities..................................................... 94,028.0 82,528.2
------------- -------------
Commitments and contingencies (Notes 11, 13, 14, 15 and 16)
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.............................................. 3,557.2 3,110.2
Retained earnings........................................................... 2,600.7 1,944.1
Accumulated other comprehensive (loss) income............................... (392.9) 355.8
------------- -------------
Total shareholder's equity............................................ 5,767.5 5,412.6
------------- -------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY.................................. $ 99,795.5 $ 87,940.8
============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------- -------------
(IN MILLIONS)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income...................................................... $ 1,257.5 $ 1,056.2 $ 950.6
Premiums...................................................... 558.2 588.1 601.5
Net investment income......................................... 2,240.9 2,228.1 2,282.8
Investment (losses) gains, net................................ (96.9) 100.2 (45.2)
Commissions, fees and other income............................ 2,177.9 1,503.0 1,227.2
Contribution from the Closed Block............................ 86.4 87.1 102.5
------------ ------------- -------------
Total revenues.......................................... 6,224.0 5,562.7 5,119.4
------------ ------------- -------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.......... 1,078.2 1,153.0 1,266.2
Policyholders' benefits....................................... 1,038.6 1,024.7 978.6
Other operating costs and expenses............................ 2,797.3 2,201.2 2,203.9
------------ ------------- -------------
Total benefits and other deductions..................... 4,914.1 4,378.9 4,448.7
------------ ------------- -------------
Earnings from continuing operations before Federal
income taxes and minority interest.......................... 1,309.9 1,183.8 670.7
Federal income taxes.......................................... 332.0 353.1 91.5
Minority interest in net income of consolidated subsidiaries.. 199.4 125.2 54.8
------------ ------------- -------------
Earnings from continuing operations........................... 778.5 705.5 524.4
Discontinued operations, net of Federal income taxes.......... 28.1 2.7 (87.2)
------------ ------------- -------------
Net Earnings.................................................. $ 806.6 $ 708.2 $ 437.2
============ ============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY AND COMPREHENSIVE INCOME
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------- -------------
(IN MILLIONS)
<S> <C> <C> <C>
Common stock, at par value, beginning and end of year......... $ 2.5 $ 2.5 $ 2.5
------------ ------------- -------------
Capital in excess of par value, beginning of year............. 3,110.2 3,105.8 3,105.8
Additional capital in excess of par value..................... 447.0 4.4 -
------------ ------------- -------------
Capital in excess of par value, end of year................... 3,557.2 3,110.2 3,105.8
------------ ------------- -------------
Retained earnings, beginning of year.......................... 1,944.1 1,235.9 798.7
Net earnings.................................................. 806.6 708.2 437.2
Dividend paid to the Holding Company.......................... (150.0) - -
------------ ------------- -------------
Retained earnings, end of year................................ 2,600.7 1,944.1 1,235.9
------------ ------------- -------------
Accumulated other comprehensive income,
beginning of year........................................... 355.8 516.3 177.0
Other comprehensive (loss) income............................. (748.7) (160.5) 339.3
------------ ------------- -------------
Accumulated other comprehensive (loss) income, end of year.... (392.9) 355.8 516.3
------------ ------------- -------------
TOTAL SHAREHOLDER'S EQUITY, END OF YEAR....................... $ 5,767.5 $ 5,412.6 $ 4,860.5
============ ============= ============
COMPREHENSIVE INCOME
Net earnings.................................................. $ 806.6 $ 708.2 $ 437.2
------------ ------------- -------------
Change in unrealized (losses) gains, net of reclassification
adjustment.................................................. (776.9) (149.5) 343.7
Minimum pension liability adjustment.......................... 28.2 (11.0) (4.4)
------------ ------------- -------------
Other comprehensive (loss) income............................. (748.7) (160.5) 339.3
------------ ------------- -------------
COMPREHENSIVE INCOME.......................................... $ 57.9 $ 547.7 $ 776.5
============ ============= ============
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------- -------------
(IN MILLIONS)
<S> <C> <C> <C>
Net earnings.................................................. $ 806.6 $ 708.2 $ 437.2
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Interest credited to policyholders' account balances........ 1,078.2 1,153.0 1,266.2
Universal life and investment-type product
policy fee income......................................... (1,257.5) (1,056.2) (950.6)
Investment losses (gains)................................... 96.9 (100.2) 45.2
Change in Federal income tax payable........................ 157.4 123.1 (74.4)
Change in property and equipment............................ (256.3) (81.8) (9.6)
Change in deferred acquisition costs........................ (260.7) (314.0) (220.7)
Other, net.................................................. (168.8) 70.9 399.7
------------ ------------- -------------
Net cash provided by operating activities..................... 195.8 503.0 893.0
------------ ------------- -------------
Cash flows from investing activities:
Maturities and repayments................................... 2,019.0 2,289.0 2,702.9
Sales....................................................... 7,572.9 16,972.1 10,385.9
Purchases................................................... (10,737.3) (18,578.5) (13,205.4)
(Increase) decrease in short-term investments............... (178.3) 102.4 (555.0)
Decrease in loans to discontinued operations................ - 660.0 420.1
Sale of subsidiaries........................................ - - 261.0
Other, net.................................................. (134.8) (341.8) (612.6)
------------ ------------- -------------
Net cash (used) provided by investing activities.............. (1,458.5) 1,103.2 (603.1)
------------ ------------- -------------
Cash flows from financing activities: Policyholders'
account balances:
Deposits.................................................. 2,366.2 1,508.1 1,281.7
Withdrawals............................................... (1,765.8) (1,724.6) (1,886.8)
Net increase (decrease) in short-term financings............ 378.2 (243.5) 419.9
Repayments of long-term debt................................ (41.3) (24.5) (196.4)
Payment of obligation to fund accumulated deficit of
discontinued operations................................... - (87.2) (83.9)
Dividend paid to the Holding Company........................ (150.0) - -
Other, net.................................................. (142.1) (89.5) (62.7)
------------ ------------- -------------
Net cash provided (used) by financing activities.............. 645.2 (661.2) (528.2)
------------ ------------- -------------
Change in cash and cash equivalents........................... (617.5) 945.0 (238.3)
Cash and cash equivalents, beginning of year.................. 1,245.5 300.5 538.8
------------ ------------- -------------
Cash and Cash Equivalents, End of Year........................ $ 628.0 $ 1,245.5 $ 300.5
============ ============= =============
Supplemental cash flow information
Interest Paid............................................... $ 92.2 $ 130.7 $ 217.1
============ ============= =============
Income Taxes Paid........................................... $ 116.5 $ 254.3 $ 170.0
============ ============= =============
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
The Equitable Life Assurance Society of the United States ("Equitable
Life") is an indirect, wholly owned subsidiary of AXA Financial, Inc. (the
"Holding Company," and collectively with its consolidated subsidiaries,
"AXA Financial"). Equitable Life's insurance business is conducted
principally by Equitable Life and its wholly owned life insurance
subsidiaries, Equitable of Colorado ("EOC"), and, prior to December 31,
1996, Equitable Variable Life Insurance Company ("EVLICO"). Effective
January 1, 1997, EVLICO was merged into Equitable Life. Equitable Life's
investment management business, which comprises the Investment Services
segment, is conducted principally by Alliance Capital Management L.P.
("Alliance"), and Donaldson, Lufkin & Jenrette, Inc. ("DLJ"), an investment
banking and brokerage affiliate. AXA, a French holding company for an
international group of insurance and related financial services companies,
is the Holding Company's largest shareholder, owning approximately 58.0% at
December 31, 1999 (53.0% if all securities convertible into, and options
on, common stock were to be converted or exercised).
On September 20, 1999, as part of AXA Financial's "branding" strategic
initiative, EQ Financial Consultants, Inc., a broker-dealer subsidiary of
Equitable Life, was merged into a new company, AXA Advisors, LLC ("AXA
Advisors"). Also, on September 21, 1999, AXA Advisors was transferred by
Equitable Life to AXA Distribution Holding Corporation ("AXA
Distribution"), a wholly owned indirect subsidiary of the Holding Company,
for $15.3 million. The excess of the sales price over AXA Advisors' book
value has been recorded in Equitable Life's books as a capital
contribution. Equitable Life will continue to develop and market the
"Equitable" brand of life and annuity products, while AXA Distribution and
its subsidiaries begin to assume responsibility for providing financial
advisory services, product distribution and customer relationship
management.
The Insurance segment offers a variety of traditional, variable and
interest-sensitive life insurance products, disability income, annuity
products, mutual fund and other investment products to individuals and
small groups. It also administers traditional participating group annuity
contracts with conversion features, generally for corporate qualified
pension plans, and association plans which provide full service retirement
programs for individuals affiliated with professional and trade
associations. This segment includes Separate Accounts for individual
insurance and annuity products.
The Investment Services segment includes Alliance and the results of DLJ
which are accounted for on an equity basis. In 1999, Alliance reorganized
into Alliance Capital Management Holding L.P. ("Alliance Holding") and
Alliance (the "Reorganization"). Alliance Holding's principal asset is its
interest in Alliance and it functions as a holding entity through which
holders of its publicly traded units own an indirect interest in the
operating partnership. The Company exchanged substantially all of its
Alliance Holding units for units in Alliance ("Alliance Units"). As a
result of the reorganization, the Company was the beneficial owner of
approximately 2% of Alliance Holding and 56% of Alliance. Alliance provides
diversified investment fund management services to a variety of
institutional clients, including pension funds, endowments, and foreign
financial institutions, as well as to individual investors, principally
through a broad line of mutual funds. This segment includes institutional
Separate Accounts which provide various investment options for large group
pension clients, primarily deferred benefit contribution plans, through
pooled or single group accounts. At December 31, 1999, Equitable Life has a
31.7% ownership interest in DLJ. DLJ's businesses include securities
underwriting, sales and trading, merchant banking, financial advisory
services, investment research, venture capital, correspondent brokerage
services, online interactive brokerage services and asset management. DLJ
serves institutional, corporate, governmental and individual clients both
domestically and internationally. Through June 10, 1997, this segment also
includes Equitable Real Estate Investment Management Inc. ("EREIM") which
was sold. EREIM provided real estate investment management services,
property management services, mortgage servicing and loan asset management,
and agricultural investment management.
F-6
<PAGE>
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
-----------------------------------------------------
The accompanying consolidated financial statements are prepared in
conformity with generally accepted accounting principles ("GAAP") which
require 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.
The accompanying consolidated financial statements include the accounts of
Equitable Life and certain of its subsidiaries engaged in insurance related
business (collectively, the "Insurance Group"); other subsidiaries,
principally Alliance and through June 10, 1997, EREIM (see Note 5); and
those partnerships and joint ventures in which Equitable Life or its
subsidiaries has control and a majority economic interest (collectively,
including its consolidated subsidiaries, the "Company"). The Company's
investment in DLJ is reported on the equity basis of accounting. Closed
Block assets, liabilities and results of operations are presented in the
consolidated financial statements as single line items (see Note 7). Unless
specifically stated, all other footnote disclosures contained herein
exclude the Closed Block related amounts.
All significant intercompany transactions and balances except those with
the Closed Block, DLJ and discontinued operations (see Note 8) have been
eliminated in consolidation. The years "1999," "1998" and "1997" refer to
the years ended December 31, 1999, 1998 and 1997, respectively. Certain
reclassifications have been made in the amounts presented for prior periods
to conform these periods with the 1999 presentation.
Closed Block
------------
On July 22, 1992, Equitable Life established the Closed Block for the
benefit of certain individual participating policies which were in force on
that date. The assets allocated to the Closed Block, together with
anticipated revenues from policies included in the Closed Block, were
reasonably expected to be sufficient to support such business, including
provision for payment of claims, certain expenses and taxes, and for
continuation of dividend scales payable in 1991, assuming the experience
underlying such scales continues.
Assets allocated to the Closed Block inure solely to the benefit of the
Closed Block policyholders and will not revert to the benefit of the
Holding Company. No reallocation, transfer, borrowing or lending of assets
can be made between the Closed Block and other portions of Equitable Life's
General Account, any of its Separate Accounts or any affiliate of Equitable
Life without the approval of the New York Superintendent of Insurance (the
"Superintendent"). Closed Block assets and liabilities are carried on the
same basis as similar assets and liabilities held in the General Account.
The excess of Closed Block liabilities over Closed Block assets represents
the expected future post-tax contribution from the Closed Block which would
be recognized in income over the period the policies and contracts in the
Closed Block remain in force.
Discontinued Operations
-----------------------
Discontinued operations at December 31, 1999, principally consists of the
Group Non-Participating Wind-Up Annuities ("Wind-Up Annuities"), for which
a premium deficiency reserve has been established. Management reviews the
adequacy of the allowance each quarter and believes the allowance for
future losses at December 31, 1999 is adequate to provide for all future
losses; however, the quarterly allowance review continues to involve
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
the discontinued operations differ from management's current best 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 (see Note 8).
F-7
<PAGE>
Accounting Changes
------------------
In March 1998, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position ("SOP") 98-1, "Accounting for the
Costs of Computer Software Developed or Obtained for Internal Use," which
requires capitalization of external and certain internal costs incurred to
obtain or develop internal-use computer software during the application
development stage. The Company applied the provisions of SOP 98-1
prospectively effective January 1, 1998. The adoption of SOP 98-1 did not
have a material impact on the Company's consolidated financial statements.
Capitalized internal-use software is amortized on a straight-line basis
over the estimated useful life of the software.
New Accounting Pronouncements
-----------------------------
In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard ("SFAS") No. 133, "Accounting
for Derivative Instruments and Hedging Activities," which establishes
accounting and reporting standards for derivative instruments, including
certain derivatives embedded in other contracts, and for hedging
activities. It requires all derivatives to be recognized on the balance
sheet at fair value. The accounting for changes in the fair value of a
derivative depends on its intended use. Derivatives not used in hedging
activities must be adjusted to fair value through earnings. Changes in the
fair value of derivatives used in hedging activities will, depending on the
nature of the hedge, either be offset in earnings against the change in
fair value of the hedged item attributable to the risk being hedged or
recognized in other comprehensive income until the hedged item affects
earnings. For all hedging activities, the ineffective portion of a
derivative's change in fair value will be immediately recognized in
earnings. 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.
Adjustments resulting from initial adoption of the new requirements will be
reported in a manner similar to the cumulative effect of a change in
accounting principle and will be reflected in net income or accumulated
other comprehensive income based upon existing hedging relationships, if
any. Management currently is assessing the impact of adoption. However,
Alliance's adoption of the new requirements is not expected to have a
significant impact on the Company's consolidated balance sheet or statement
of earnings. Also, since most of DLJ's derivatives are carried at fair
values, the Company's consolidated earnings and financial position are not
expected to be significantly affected by DLJ's adoption of the new
requirements.
Valuation of Investments
------------------------
Fixed maturities identified as available for sale are reported at estimated
fair value. Fixed maturities, which the Company has both the ability and
the intent to hold to maturity, are stated principally at amortized cost.
The amortized cost of fixed maturities is adjusted for impairments in value
deemed to be other than temporary.
Valuation allowances are netted against the asset categories to which they
apply.
Mortgage loans on real estate are stated at unpaid principal balances, net
of unamortized discounts and valuation allowances. Valuation allowances are
based on the present value of expected future cash flows discounted at the
loan's original effective interest rate or the collateral value if the loan
is collateral dependent. However, if foreclosure is or becomes probable,
the measurement method used is collateral value.
Real estate, including real estate acquired in satisfaction of debt, is
stated at depreciated cost less valuation allowances. At the date of
foreclosure (including in-substance foreclosure), real estate acquired in
satisfaction of debt is valued at estimated fair value. Impaired real
estate is written down to fair value with the impairment loss being
included in investment gains (losses), net. Valuation allowances on real
estate held for sale are computed using the lower of depreciated cost or
current estimated fair value, net of disposition costs. Depreciation is
discontinued on real estate held for sale.
F-8
<PAGE>
Policy loans are stated at unpaid principal balances.
Partnerships and joint venture interests in which the Company does not have
control or a majority economic interest are reported on the equity basis of
accounting and are included either with equity real estate or other equity
investments, as appropriate.
Equity securities, comprised of common stock classified as both trading and
available for sale securities, are carried at estimated fair value and are
included in other equity investments.
Short-term investments are stated at amortized cost which approximates fair
value and are included with other invested assets.
Cash and cash equivalents includes cash on hand, amounts due from banks and
highly liquid debt instruments purchased with an original maturity of three
months or less.
All securities are recorded in the consolidated financial statements on a
trade date basis.
Net Investment Income, Investment Gains, Net and Unrealized Investment
----------------------------------------------------------------------
Gains (Losses)
--------------
Net investment income and realized investment gains (losses) (collectively,
"investment results") related to certain participating group annuity
contracts which are passed through to the contractholders are reflected as
interest credited to policyholders' account balances.
Realized investment gains (losses) are determined by specific
identification and are presented as a component of revenue. Changes in
valuation allowances are included in investment gains (losses).
Unrealized gains (losses) on publicly-traded common equity securities
classified as trading securities are reflected in net investment income.
Unrealized investment gains (losses) on fixed maturities and equity
securities available for sale held by the Company are accounted for as a
separate component of accumulated comprehensive income, net of related
deferred Federal income taxes, amounts attributable to discontinued
operations, participating group annuity contracts and deferred policy
acquisition costs ("DAC") related to universal life and investment-type
products and participating traditional life contracts.
Recognition of Insurance Income and Related Expenses
----------------------------------------------------
Premiums from universal life and investment-type contracts are reported as
deposits to policyholders' account balances. Revenues from these contracts
consist of amounts assessed during the period against policyholders'
account balances for mortality charges, policy administration charges and
surrender charges. Policy benefits and claims that are charged to expense
include benefit claims incurred in the period in excess of related
policyholders' account balances.
Premiums from participating and non-participating traditional life and
annuity policies with life contingencies generally are recognized as income
when due. Benefits and expenses are matched with such income so as to
result in the recognition of profits over the life of the contracts. This
match is accomplished by means of the provision for liabilities for future
policy benefits and the deferral and subsequent amortization of policy
acquisition costs.
For contracts with a single premium or a limited number of premium payments
due over a significantly shorter period than the total period over which
benefits are provided, premiums are recorded as income when due with any
excess profit deferred and recognized in income in a constant relationship
to insurance in force or, for annuities, the amount of expected future
benefit payments.
Premiums from individual health contracts are recognized as income over the
period to which the premiums relate in proportion to the amount of
insurance protection provided.
F-9
<PAGE>
Deferred Policy Acquisition Costs
---------------------------------
The costs of acquiring new business, principally commissions, underwriting,
agency and policy issue expenses, all of which vary with and are primarily
related to the production of new business, are deferred. DAC is subject to
recoverability testing at the time of policy issue and loss recognition
testing at the end of each accounting period.
For universal life products and investment-type products, DAC is amortized
over the expected total life of the contract group (periods ranging from 25
to 35 years and 5 to 17 years, respectively) as a constant percentage of
estimated gross profits arising principally from investment results,
mortality and expense margins and surrender charges based on historical and
anticipated future experience, updated at the end of each accounting
period. The effect on the amortization of DAC of revisions to estimated
gross profits is reflected in earnings in the period such estimated gross
profits are revised. The effect on the DAC asset that would result from
realization of unrealized gains (losses) is recognized with an offset to
accumulated other comprehensive income in consolidated shareholder's equity
as of the balance sheet date.
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 participating traditional life policies (substantially all of which are
in the Closed Block), DAC is amortized over the expected total life of the
contract group (40 years) as a constant percentage based on the present
value of the estimated gross margin amounts expected to be realized over
the life of the contracts using the expected investment yield. At December
31, 1999, the expected investment yield, excluding policy loans, generally
ranged from 7.75% grading to 7.5% over a 20 year period. Estimated gross
margin includes anticipated premiums and investment results less claims and
administrative expenses, changes in the net level premium reserve and
expected annual policyholder dividends. The effect on the amortization of
DAC of revisions to estimated gross margins is reflected in earnings in the
period such estimated gross margins are revised. The effect on the DAC
asset that would result from realization of unrealized gains (losses) is
recognized with an offset to accumulated comprehensive income in
consolidated shareholder's equity as of the balance sheet date.
For non-participating traditional life DAC is amortized in proportion to
anticipated premiums. Assumptions as to anticipated premiums are estimated
at the date of policy issue and are consistently applied during the life of
the contracts. Deviations from estimated experience are reflected in
earnings in the period such deviations occur. For these contracts, the
amortization periods generally are for the total life of the policy.
Policyholders' Account Balances and Future Policy Benefits
----------------------------------------------------------
Policyholders' account balances for universal life and investment-type
contracts are equal to the policy account values. The policy account values
represents an accumulation of gross premium payments plus credited interest
less expense and mortality charges and withdrawals.
For participating traditional life policies, future policy benefit
liabilities are calculated using a net level premium method on the basis of
actuarial assumptions equal to guaranteed mortality and dividend fund
interest rates. The liability for annual dividends represents the accrual
of annual dividends earned. Terminal dividends are accrued in proportion to
gross margins over the life of the contract.
For non-participating traditional life insurance policies, future policy
benefit liabilities are estimated using a net level premium method on the
basis of actuarial assumptions as to mortality, persistency and interest
established at policy issue. Assumptions established at policy issue as to
mortality and persistency are based on the Insurance Group's experience
which, together with interest and expense assumptions, includes a margin
for adverse deviation. When the liabilities for future policy benefits plus
the present value of expected future gross premiums for a product are
insufficient to provide for expected future policy benefits
F-10
<PAGE>
and expenses for that product, DAC is written off and thereafter, if
required, a premium deficiency reserve is established by a charge to
earnings. Benefit liabilities for traditional annuities during the
accumulation period are equal to accumulated contractholders' fund balances
and after annuitization are equal to the present value of expected future
payments. Interest rates used in establishing such liabilities range from
2.25% to 11.5% for life insurance liabilities and from 2.25% to 8.35% for
annuity liabilities.
Individual health benefit liabilities for active lives are estimated using
the net level premium method and assumptions as to future morbidity,
withdrawals and interest. Benefit liabilities for disabled lives are
estimated using the present value of benefits method and experience
assumptions as to claim terminations, expenses and interest. While
management believes its disability income ("DI") reserves have been
calculated on a reasonable basis and are adequate, there can be no
assurance reserves will be sufficient to provide for future liabilities.
Claim reserves and associated liabilities for individual DI and major
medical policies were $948.4 million and $951.7 million at December 31,
1999 and 1998, respectively. Incurred benefits (benefits paid plus changes
in claim reserves) and benefits paid for individual DI and major medical
are summarized as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 150.7 $ 140.1 $ 132.3
Incurred benefits related to prior years........... 64.7 84.2 60.0
------------- ------------ ------------
Total Incurred Benefits............................ $ 215.4 $ 224.3 $ 192.3
============= ============ ============
Benefits paid related to current year.............. $ 28.9 $ 17.0 $ 28.8
Benefits paid related to prior years............... 189.8 155.4 146.2
------------- ------------ ------------
Total Benefits Paid................................ $ 218.7 $ 172.4 $ 175.0
============= ============ ============
</TABLE>
Policyholders' Dividends
------------------------
The amount of policyholders' dividends to be paid (including those on
policies included in the Closed Block) is determined annually by Equitable
Life's board of directors. The aggregate amount of policyholders' dividends
is related to actual interest, mortality, morbidity and expense experience
for the year and judgment as to the appropriate level of statutory surplus
to be retained by Equitable Life.
At December 31, 1999, participating policies, including those in the Closed
Block, represent approximately 23.0% ($47.0 billion) of directly written
life insurance in force, net of amounts ceded.
Federal Income Taxes
--------------------
The Company files a consolidated Federal income tax return with the Holding
Company and its consolidated subsidiaries. Current Federal income taxes are
charged or credited to operations based upon amounts estimated to be
payable or recoverable as a result of taxable operations for the current
year. Deferred income tax assets and liabilities are recognized based on
the difference between financial statement carrying amounts and income tax
bases of assets and liabilities using enacted income tax rates and laws.
Separate Accounts
-----------------
Separate Accounts are established in conformity with the New York State
Insurance Law and generally are not chargeable with liabilities that arise
from any other business of the Insurance Group. Separate Accounts assets
are subject to General Account claims only to the extent the value of such
assets exceeds Separate Accounts liabilities.
F-11
<PAGE>
Assets and liabilities of the Separate Accounts, representing net deposits
and accumulated net investment earnings less fees, held primarily for the
benefit of contractholders, and for which the Insurance Group does not bear
the investment risk, are shown as separate captions in the consolidated
balance sheets. The Insurance Group bears the investment risk on assets
held in one Separate Account; therefore, such assets are carried on the
same basis as similar assets held in the General Account portfolio. Assets
held in the other Separate Accounts are carried at quoted market values or,
where quoted values are not available, at estimated fair values as
determined by the Insurance Group.
The investment results of Separate Accounts on which the Insurance Group
does not bear the investment risk are reflected directly in Separate
Accounts liabilities. For 1999, 1998 and 1997, investment results of such
Separate Accounts were $6,045.5 million, $4,591.0 million and $3,411.1
million, respectively.
Deposits to Separate Accounts are reported as increases in Separate
Accounts liabilities and are not reported in revenues. Mortality, policy
administration and surrender charges on all Separate Accounts are included
in revenues.
Employee Stock Option Plan
--------------------------
The Company accounts for stock option plans sponsored by the Holding
Company, DLJ and Alliance in accordance with the provisions of Accounting
Principles Board Opinion ("APB") No. 25, "Accounting for Stock Issued to
Employees," and related interpretations. In accordance with the opinion,
compensation expense is recorded on the date of grant only if the current
market price of the underlying stock exceeds the option strike price at the
grant date. See Note 22 for the pro forma disclosures for the Holding
Company, DLJ and Alliance required by SFAS No. 123, "Accounting for
Stock-Based Compensation".
F-12
<PAGE>
3) INVESTMENTS
The following tables provide additional information relating to fixed
maturities and equity securities:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED ESTIMATED
COST GAINS LOSSES FAIR VALUE
------------- ------------- ------------ -------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
DECEMBER 31, 1999
-----------------
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 14,866.8 $ 139.5 $ 787.0 $ 14,219.3
Mortgage-backed.................... 2,554.5 2.3 87.8 2,469.0
U.S. Treasury, government and
agency securities................ 1,194.1 18.9 23.4 1,189.6
States and political subdivisions.. 110.0 1.4 4.9 106.5
Foreign governments................ 361.8 16.2 14.8 363.2
Redeemable preferred stock......... 286.4 1.7 36.0 252.1
------------- ------------- ------------ -------------
Total Available for Sale............... $ 19,373.6 $ 180.0 $ 953.9 $ 18,599.7
============= ============= ============ =============
Held to Maturity: Corporate......... $ 133.2 $ - $ - $ 133.2
============= ============= ============ =============
Equity Securities:
Common stock available for sale...... 25.5 1.5 17.8 9.2
Common stock trading securities...... 7.2 9.1 2.2 14.1
------------- ------------- ------------ -------------
Total Equity Securities................ $ 32.7 $ 10.6 $ 20.0 $ 23.3
============= ============= ============ =============
December 31, 1998
-----------------
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 14,520.8 $ 793.6 $ 379.6 $ 14,934.8
Mortgage-backed.................... 1,807.9 23.3 .9 1,830.3
U.S. Treasury, government and
agency securities................ 1,464.1 107.6 .7 1,571.0
States and political subdivisions.. 55.0 9.9 - 64.9
Foreign governments................ 363.3 20.9 30.0 354.2
Redeemable preferred stock......... 242.7 7.0 11.2 238.5
------------- ------------- ------------ -------------
Total Available for Sale............... $ 18,453.8 $ 962.3 $ 422.4 $ 18,993.7
============= ============= ============ =============
Held to Maturity: Corporate......... $ 125.0 $ - $ - $ 125.0
============= ============= ============ =============
Equity Securities:
Common stock available for sale...... $ 58.3 $ 114.9 $ 22.5 $ 150.7
============= ============= ============ =============
</TABLE>
For publicly traded fixed maturities and equity securities, estimated fair
value is determined using quoted market prices. For fixed maturities
without a readily ascertainable market value, the Company determines an
estimated fair value using a discounted cash flow approach, including
provisions for credit risk, generally based on the assumption such
securities will be held to maturity. Estimated fair values for equity
securities, substantially all of which do not have a readily ascertainable
market value, have been determined by the Company. Such estimated fair
values do not necessarily represent the values for which these securities
could have been sold at the dates of the consolidated balance sheets. At
December 31, 1999 and 1998, securities without a readily ascertainable
market value having an amortized cost of $3,322.2 million and $3,539.9
million, respectively, had estimated fair values of $3,177.7 million and
$3,748.5 million, respectively.
F-13
<PAGE>
The contractual maturity of bonds at December 31, 1999 is shown below:
<TABLE>
<CAPTION>
AVAILABLE FOR SALE
-------------------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Due in one year or less................................................ $ 479.1 $ 477.8
Due in years two through five.......................................... 2,991.8 2,921.2
Due in years six through ten........................................... 7,197.9 6,813.0
Due after ten years.................................................... 5,864.0 5,666.5
Mortgage-backed securities............................................. 2,554.4 2,469.1
------------ ------------
Total.................................................................. $ 19,087.2 $ 18,347.6
============ ============
</TABLE>
Corporate bonds held to maturity with an amortized cost and estimated fair
value of $133.2 million are due in one year or less.
Bonds not due at a single maturity date have been included in the above
table in the year of final maturity. Actual maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
The Insurance Group's fixed maturity investment portfolio includes
corporate high yield securities consisting of public high yield bonds,
redeemable preferred stocks and directly negotiated debt in leveraged
buyout transactions. The Insurance Group seeks to minimize the higher than
normal credit risks associated with such securities by monitoring
concentrations in any single issuer or a particular industry group. Certain
of these corporate high yield securities are classified as other than
investment grade by the various rating agencies, i.e., a rating below Baa
or National Association of Insurance Commissioners ("NAIC") designation of
3 (medium grade), 4 or 5 (below investment grade) or 6 (in or near
default). At December 31, 1999, approximately 14.9% of the $18,344.3
million aggregate amortized cost of bonds held by the Company was
considered to be other than investment grade.
In addition, the Insurance Group is an equity investor in limited
partnership interests which primarily invest in securities considered to be
other than investment grade. The carrying values at December 31, 1999 and
1998 were $647.9 million and $562.6 million, respectively.
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 230.6 $ 384.5 $ 137.1
Additions charged to income........................ 68.2 86.2 334.6
Deductions for writedowns and
asset dispositions............................... (150.2) (240.1) (87.2)
------------- ------------ ------------
Balances, End of Year.............................. $ 148.6 $ 230.6 $ 384.5
============= ============ ============
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 27.5 $ 34.3 $ 55.8
Equity real estate............................... 121.1 196.3 328.7
------------- ------------ ------------
Total.............................................. $ 148.6 $ 230.6 $ 384.5
============= ============ ============
</TABLE>
F-14
<PAGE>
At December 31, 1999, the carrying value of fixed maturities which are
non-income producing for the twelve months preceding the consolidated
balance sheet date was $152.1 million.
The payment terms of mortgage loans on real estate may from time to time be
restructured or modified. The investment in restructured mortgage loans on
real estate, based on amortized cost, amounted to $106.0 million and $115.1
million at December 31, 1999 and 1998, respectively. Gross interest income
on restructured mortgage loans on real estate that would have been recorded
in accordance with the original terms of such loans amounted to $9.5
million, $10.3 million and $17.2 million in 1999, 1998 and 1997,
respectively. Gross interest income on these loans included in net
investment income aggregated $8.2 million, $8.3 million and $12.7 million
in 1999, 1998 and 1997, respectively.
Impaired mortgage loans along with the related provision for losses were as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
-----------------------------------
1999 1998
-------------- --------------
(IN MILLIONS)
<S> <C> <C>
Impaired mortgage loans with provision for losses.................. $ 142.4 $ 125.4
Impaired mortgage loans without provision for losses............... 2.2 8.6
-------------- --------------
Recorded investment in impaired mortgage loans..................... 144.6 134.0
Provision for losses............................................... (23.0) (29.0)
-------------- --------------
Net Impaired Mortgage Loans........................................ $ 121.6 $ 105.0
============== ==============
</TABLE>
Impaired mortgage loans without provision for losses are loans where the
fair value of the collateral or the net present value of the expected
future cash flows related to the loan equals or exceeds the recorded
investment. Interest income earned on loans where the collateral value is
used to measure impairment is recorded on a cash basis. Interest income on
loans where the present value method is used to measure impairment is
accrued on the net carrying value amount of the loan at the interest rate
used to discount the cash flows. Changes in the present value attributable
to changes in the amount or timing of expected cash flows are reported as
investment gains or losses.
During 1999, 1998 and 1997, respectively, the Company's average recorded
investment in impaired mortgage loans was $141.7 million, $161.3 million
and $246.9 million. Interest income recognized on these impaired mortgage
loans totaled $12.0 million, $12.3 million and $15.2 million ($0.0 million,
$.9 million and $2.3 million recognized on a cash basis) for 1999, 1998 and
1997, respectively.
The Insurance Group's investment in equity real estate is through direct
ownership and through investments in real estate joint ventures. At
December 31, 1999 and 1998, the carrying value of equity real estate held
for sale amounted to $382.2 million and $836.2 million, respectively. For
1999, 1998 and 1997, respectively, real estate of $20.5 million, $7.1
million and $152.0 million was acquired in satisfaction of debt. At
December 31, 1999 and 1998, the Company owned $443.9 million and $552.3
million, respectively, of real estate acquired in satisfaction of debt.
Depreciation of real estate held for production of income is computed using
the straight-line method over the estimated useful lives of the properties,
which generally range from 40 to 50 years. Accumulated depreciation on real
estate was $251.6 million and $374.8 million at December 31, 1999 and 1998,
respectively. Depreciation expense on real estate totaled $21.8 million,
$30.5 million and $74.9 million for 1999, 1998 and 1997, respectively.
F-15
<PAGE>
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information for real estate joint ventures
(25 individual ventures at both December 31, 1999 and 1998) and for limited
partnership interests accounted for under the equity method, in which the
Company has an investment of $10.0 million or greater and an equity
interest of 10% or greater, follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------
1999 1998
------------- -------------
(IN MILLIONS)
<S> <C> <C>
BALANCE SHEETS
Investments in real estate, at depreciated cost........................ $ 861.1 $ 913.7
Investments in securities, generally at estimated fair value........... 678.4 636.9
Cash and cash equivalents.............................................. 68.4 85.9
Other assets........................................................... 239.3 279.8
------------- -------------
Total Assets........................................................... $ 1,847.2 $ 1,916.3
============= =============
Borrowed funds - third party........................................... $ 354.2 $ 367.1
Borrowed funds - AXA Financial......................................... 28.9 30.1
Other liabilities...................................................... 313.9 197.2
------------- -------------
Total liabilities...................................................... 697.0 594.4
------------- -------------
Partners' capital...................................................... 1,150.2 1,321.9
------------- -------------
Total Liabilities and Partners' Capital................................ $ 1,847.2 $ 1,916.3
============= =============
Equity in partners' capital included above............................. $ 316.5 $ 365.6
Equity in limited partnership interests not included above and other... 524.1 390.1
------------- -------------
Carrying Value......................................................... $ 840.6 $ 755.7
============= =============
</TABLE>
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 180.5 $ 246.1 $ 310.5
Revenues of other limited partnership interests.... 455.1 128.9 506.3
Interest expense - third party..................... (39.8) (33.3) (91.8)
Interest expense - AXA Financial................... (2.5) (2.6) (7.2)
Other expenses..................................... (139.0) (197.0) (263.6)
------------- ------------ ------------
Net Earnings....................................... $ 454.3 $ 142.1 $ 454.2
============= ============ ============
Equity in net earnings included above.............. $ 10.5 $ 44.4 $ 76.7
Equity in net earnings of limited partnership
interests not included above..................... 76.0 37.9 69.5
Other.............................................. - - (.9)
------------- ------------ ------------
Total Equity in Net Earnings....................... $ 86.5 $ 82.3 $ 145.3
============= ============ ============
</TABLE>
F-16
<PAGE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ 1,499.8 $ 1,489.0 $ 1,459.4
Mortgage loans on real estate...................... 253.4 235.4 260.8
Equity real estate................................. 250.2 356.1 390.4
Other equity investments........................... 165.1 83.8 156.9
Policy loans....................................... 143.8 144.9 177.0
Other investment income............................ 161.3 185.7 181.7
------------- ------------ ------------
Gross investment income.......................... 2,473.6 2,494.9 2,626.2
Investment expenses.............................. (232.7) (266.8) (343.4)
------------- ------------ ------------
Net Investment Income.............................. $ 2,240.9 $ 2,228.1 $ 2,282.8
============= ============ ============
</TABLE>
Investment (losses) gains, net, including changes in the valuation
allowances, follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Fixed maturities................................... $ (290.9) $ (24.3) $ 88.1
Mortgage loans on real estate...................... (3.3) (10.9) (11.2)
Equity real estate................................. (2.4) 74.5 (391.3)
Other equity investments........................... 88.1 29.9 14.1
Sale of subsidiaries............................... - (2.6) 252.1
Issuance and sales of Alliance Units............... 5.5 19.8 -
Issuance and sales of DLJ common stock............. 106.0 18.2 3.0
Other.............................................. .1 (4.4) -
------------- ------------ ------------
Investment (Losses) Gains, Net..................... $ (96.9) $ 100.2 $ (45.2)
============= ============ ============
</TABLE>
Writedowns of fixed maturities amounted to $223.2 million, $101.6 million
and $11.7 million for 1999, 1998 and 1997, respectively, and writedowns of
equity real estate amounted to $136.4 million for 1997. In fourth quarter
1997, the Company reclassified $1,095.4 million depreciated cost of equity
real estate from real estate held for the production of income to real
estate held for sale. Additions to valuation allowances of $227.6 million
were recorded upon these transfers. Additionally, in fourth quarter 1997,
$132.3 million of writedowns on real estate held for production of income
were recorded.
For 1999, 1998 and 1997, respectively, proceeds received on sales of fixed
maturities classified as available for sale amounted to $7,138.6 million,
$15,961.0 million and $9,789.7 million. Gross gains of $74.7 million,
$149.3 million and $166.0 million and gross losses of $214.3 million, $95.1
million and $108.8 million, respectively, were realized on these sales. The
change in unrealized investment (losses) gains related to fixed maturities
classified as available for sale for 1999, 1998 and 1997 amounted to
$(1,313.8) million, $(331.7) million and $513.4 million, 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. Net unrealized holding gains of $7.0 million were
included in net investment income in the consolidated statements of
earnings for 1999. These trading securities had a carrying value of $14.1
million and costs of $7.2 million at December 31, 1999.
F-17
<PAGE>
During 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.
For 1999, 1998 and 1997, investment results passed through to certain
participating group annuity contracts as interest credited to
policyholders' account balances amounted to $131.5 million, $136.9 million
and $137.5 million, respectively.
In 1997, Equitable Life sold EREIM (other than its interest in Column
Financial, Inc.) ("ERE") to Lend Lease Corporation Limited ("Lend Lease"),
for $400.0 million and recognized an investment gain of $162.4 million, net
of Federal income tax of $87.4 million. Equitable Life entered into
long-term advisory agreements whereby ERE continues to provide
substantially the same services to Equitable Life's General Account and
Separate Accounts, for substantially the same fees, as provided prior to
the sale. Through June 10, 1997, the businesses sold reported combined
revenues of $91.6 million and combined net earnings of $10.7 million.
On June 30, 1997, Alliance reduced the recorded value of goodwill and
contracts associated with Alliance's 1996 acquisition of Cursitor Holdings
L.P. and Cursitor Holdings Limited (collectively, "Cursitor") by $120.9
million since Cursitor's business fundamentals no longer supported the
carrying value of its investment. The Company's earnings from continuing
operations for 1997 included a charge of $59.5 million, net of a Federal
income tax benefit of $10.0 million and minority interest of $51.4 million.
The remaining balance of intangible assets is being amortized over its
estimated useful life of 20 years.
Net unrealized investment gains (losses), included in the consolidated
balance sheets as a component of accumulated comprehensive income and the
changes for the corresponding years, follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Balance, beginning of year......................... $ 384.1 $ 533.6 $ 189.9
Changes in unrealized investment (losses) gains.... (1,486.6) (242.4) 543.3
Changes in unrealized investment losses
(gains) attributable to:
Participating group annuity contracts.......... 24.7 (5.7) 53.2
DAC............................................ 208.6 13.2 (89.0)
Deferred Federal income taxes.................. 476.4 85.4 (163.8)
------------- ------------ ------------
Balance, End of Year............................... $ (392.8) $ 384.1 $ 533.6
============= ============ ============
Balance, end of year comprises:
Unrealized investment (losses) gains on:
Fixed maturities............................... $ (773.9) $ 539.9 $ 871.2
Other equity investments....................... (16.3) 92.4 33.7
Other, principally Closed Block................ 46.8 111.1 80.9
------------- ------------ ------------
Total........................................ (743.4) 743.4 985.8
Amounts of unrealized investment gains
attributable to:
Participating group annuity contracts........ - (24.7) (19.0)
DAC.......................................... 80.8 (127.8) (141.0)
Deferred Federal income taxes................ 269.8 (206.8) (292.2)
------------- ------------ ------------
Total.............................................. $ (392.8) $ 384.1 $ 533.6
============= ============ ============
</TABLE>
Changes in unrealized gains (losses) reflect changes in fair value of only
those fixed maturities and equity securities classified as available for
sale and do not reflect any changes in fair value of policyholders' account
balances and future policy benefits.
F-18
<PAGE>
6) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Accumulated other comprehensive income (loss) represents cumulative gains
and losses on items that are not reflected in earnings. The balances for
the past three years follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Unrealized (losses) gains on investments........... $ (392.8) $ 384.1 $ 533.6
Minimum pension liability.......................... (.1) (28.3) (17.3)
------------- ------------ ------------
Total Accumulated Other
Comprehensive (Loss) Income...................... $ (392.9) $ 355.8 $ 516.3
============= ============ ============
</TABLE>
The components of other comprehensive income (loss) for the past three
years follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Net unrealized (losses) gains on investment
securities:
Net unrealized (losses) gains arising during
the period..................................... $ (1,682.3) $ (186.1) $ 564.0
Adjustment to reclassify losses (gains)
included in net earnings during the period..... 195.7 (56.3) (20.7)
------------- ------------ ------------
Net unrealized (losses) gains on investment
securities..................................... (1,486.6) (242.4) 543.3
Adjustments for policyholder liabilities,
DAC and deferred Federal income taxes.......... 709.7 92.9 (199.6)
------------- ------------ ------------
Change in unrealized losses (gains), net of
adjustments.................................... (776.9) (149.5) 343.7
Change in minimum pension liability................ 28.2 (11.0) (4.4)
------------- ------------ ------------
Total Other Comprehensive (Loss) Income............ $ (748.7) $ (160.5) $ 339.3
============= ============ ============
</TABLE>
F-19
<PAGE>
7) CLOSED BLOCK
Summarized financial information for the Closed Block follows:
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C
BALANCE SHEETS
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$4,144.8 and $4,149.0)........................................... $ 4,014.0 $ 4,373.2
Mortgage loans on real estate........................................ 1,704.2 1,633.4
Policy loans......................................................... 1,593.9 1,641.2
Cash and other invested assets....................................... 194.4 86.5
DAC.................................................................. 895.5 676.5
Other assets......................................................... 205.3 221.6
------------ ------------
Total Assets......................................................... $ 8,607.3 $ 8,632.4
============ ============
Future policy benefits and policyholders' account balances........... $ 9,011.7 $ 9,013.1
Other liabilities.................................................... 13.3 63.9
------------ ------------
Total Liabilities.................................................... $ 9,025.0 $ 9,077.0
============ ============
</TABLE>
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Premiums and other revenue......................... $ 619.1 $ 661.7 $ 687.1
Investment income (net of investment
expenses of $15.8, $15.5 and $27.0).............. 574.2 569.7 574.9
Investment (losses) gains, net..................... (11.3) .5 (42.4)
------------- ------------ ------------
Total revenues............................... 1,182.0 1,231.9 1,219.6
------------- ------------ ------------
Policyholders' benefits and dividends.............. 1,024.7 1,082.0 1,066.7
Other operating costs and expenses................. 70.9 62.8 50.4
------------- ------------ ------------
Total benefits and other deductions.......... 1,095.6 1,144.8 1,117.1
------------- ------------ ------------
Contribution from the Closed Block................. $ 86.4 $ 87.1 $ 102.5
============= ============ ============
</TABLE>
Impaired mortgage loans along with the related provision for losses
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------
1999 1998
------------- -------------
(IN MILLIONS)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 26.8 $ 55.5
Impaired mortgage loans without provision for losses................... 4.5 7.6
------------- -------------
Recorded investment in impaired mortgages.............................. 31.3 63.1
Provision for losses................................................... (4.1) (10.1)
------------- -------------
Net Impaired Mortgage Loans............................................ $ 27.2 $ 53.0
============= =============
</TABLE>
During 1999, 1998 and 1997, the Closed Block's average recorded investment
in impaired mortgage loans was $37.0 million, $85.5 million and $110.2
million, respectively. Interest income recognized on these impaired
mortgage loans totaled $3.3 million, $4.7 million and $9.4 million ($.3
million, $1.5 million and $4.1 million recognized on a cash basis) for
1999, 1998 and 1997, respectively.
F-20
<PAGE>
Valuation allowances amounted to $4.6 million and $11.1 million on mortgage
loans on real estate and $24.7 million and $15.4 million on equity real
estate at December 31, 1999 and 1998, respectively. Writedowns of fixed
maturities amounted to $3.5 million for 1997. Writedowns of equity real
estate amounted to $28.8 million for 1997.
In fourth quarter 1997, $72.9 million depreciated cost of equity real
estate held for production of income was reclassified to equity real estate
held for sale. Additions to valuation allowances of $15.4 million were
recorded upon these transfers. Also in fourth quarter 1997, $28.8 million
of writedowns on real estate held for production of income were recorded.
Many expenses related to Closed Block operations are charged to operations
outside of the Closed Block; accordingly, the contribution from the Closed
Block does not represent the actual profitability of the Closed Block
operations. Operating costs and expenses outside of the Closed Block are,
therefore, disproportionate to the business outside of the Closed Block.
F-21
<PAGE>
8) DISCONTINUED OPERATIONS
Summarized financial information for discontinued operations follows:
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
BALANCE SHEETS
Mortgage loans on real estate........................................ $ 454.6 $ 553.9
Equity real estate................................................... 426.6 611.0
Other equity investments............................................. 55.8 115.1
Other invested assets................................................ 87.1 24.9
------------ ------------
Total investments.................................................. 1,024.1 1,304.9
Cash and cash equivalents............................................ 164.5 34.7
Other assets......................................................... 213.0 219.0
------------ ------------
Total Assets......................................................... $ 1,401.6 $ 1,558.6
============ ============
Policyholders' liabilities........................................... $ 993.3 $ 1,021.7
Allowance for future losses.......................................... 242.2 305.1
Other liabilities.................................................... 166.1 231.8
------------ ------------
Total Liabilities.................................................... $ 1,401.6 $ 1,558.6
============ ============
</TABLE>
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Investment income (net of investment
expenses of $49.3, $63.3 and $97.3).............. $ 98.7 $ 160.4 $ 188.6
Investment (losses) gains, net..................... (13.4) 35.7 (173.7)
Policy fees, premiums and other income............. .2 (4.3) .2
------------- ------------ ------------
Total revenues..................................... 85.5 191.8 15.1
Benefits and other deductions...................... 104.8 141.5 169.5
(Losses charged) earnings credited to allowance
for future losses................................ (19.3) 50.3 (154.4)
------------- ------------ ------------
Pre-tax loss from operations....................... - - -
Pre-tax earnings from releasing (loss from
strengthening) the allowance for future
losses........................................... 43.3 4.2 (134.1)
Federal income tax (expense) benefit............... (15.2) (1.5) 46.9
------------- ------------ ------------
Earnings (Loss) from Discontinued Operations....... $ 28.1 $ 2.7 $ (87.2)
============= ============ ============
</TABLE>
The Company's quarterly process for evaluating the allowance for future
losses applies the current period's results of the discontinued operations
against the allowance, re-estimates future losses and adjusts the
allowance, if appropriate. Additionally, as part of the Company's annual
planning process which takes place in the fourth quarter of each year,
investment and benefit cash flow projections are prepared. These updated
assumptions and estimates resulted in a release of allowance in 1999 and
1998 and strengthening of allowance in 1997.
In fourth quarter 1997, $329.9 million depreciated cost of equity real
estate was reclassified from equity real estate held for production of
income to real estate held for sale. Additions to valuation allowances of
$79.8 million were recognized upon these transfers. Also in fourth quarter
1997, $92.5 million of writedowns on real estate held for production of
income were recognized.
F-22
<PAGE>
Benefits and other deductions includes $26.6 million and $53.3 million of
interest expense related to amounts borrowed from continuing operations in
1998 and 1997, respectively.
Valuation allowances of $1.9 million and $3.0 million on mortgage loans on
real estate and $54.8 million and $34.8 million on equity real estate were
held at December 31, 1999 and 1998, respectively. Writedowns of equity real
estate were $95.7 million in 1997.
During 1999, 1998 and 1997, discontinued operations' average recorded
investment in impaired mortgage loans was $13.8 million, $73.3 million and
$89.2 million, respectively. Interest income recognized on these impaired
mortgage loans totaled $1.7 million, $4.7 million and $6.6 million ($.0
million, $3.4 million and $5.3 million recognized on a cash basis) for
1999, 1998 and 1997, respectively.
At December 31, 1999 and 1998, discontinued operations had real estate
acquired in satisfaction of debt with carrying values of $24.1 million and
$50.0 million, respectively.
9) SHORT-TERM AND LONG-TERM DEBT
Short-term and long-term debt consists of the following:
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Short-term debt...................................................... $ 557.0 $ 179.3
------------ ------------
Long-term debt:
Equitable Life:
Surplus notes, 6.95% due 2005...................................... 399.5 399.4
Surplus notes, 7.70% due 2015...................................... 199.7 199.7
Other.............................................................. .4 .3
------------ ------------
Total Equitable Life........................................... 599.6 599.4
------------ ------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 5.43% - 9.5%, due through 2017..................... 251.3 392.2
------------ ------------
Alliance:
Other.............................................................. - 10.8
------------ ------------
Total long-term debt................................................. 850.9 1,002.4
------------ ------------
Total Short-term and Long-term Debt.................................. $ 1,407.9 $ 1,181.7
============ ============
</TABLE>
Short-term Debt
---------------
Equitable Life has a $700.0 million bank credit facility available to fund
short-term working capital needs and to facilitate the securities
settlement process. The credit facility consists of two types of borrowing
options with varying interest rates and expires in September 2000. The
interest rates are based on external indices dependent on the type of
borrowing and at December 31, 1999 range from 5.76% to 8.5%. There were no
borrowings outstanding under this bank credit facility at December 31,
1999.
Equitable Life has a commercial paper program with an issue limit of $1.0
billion. This program is available for general corporate purposes used to
support Equitable Life's liquidity needs and is supported by Equitable
Life's existing $700.0 million bank credit facility. At December 31, 1999,
there were $166.9 million outstanding under this program.
Alliance has a $425.0 million five-year revolving credit facility with a
group of commercial banks. Under the facility, the interest rate, at the
option of Alliance, is a floating rate generally based upon a defined prime
rate, a rate related to the London Interbank Offered Rate ("LIBOR") or the
Federal Funds Rate. A facility fee is payable on the total facility. During
July 1999, Alliance increased the size of its commercial paper program by
$200.0 million from $425.0 million for a total available limit of $625.0
million. Borrowings from the revolving credit facility and the original
commercial paper program may not exceed $425.0 million in the aggregate.
The revolving credit facility provides backup liquidity for commercial
paper issued under
F-23
<PAGE>
Alliance's commercial paper program and can be used as a direct source of
borrowing. The revolving credit facility contains covenants that require
Alliance to, among other things, meet certain financial ratios. At December
31, 1999, Alliance had commercial paper outstanding totaling $384.7 million
at an effective interest rate of 5.9%; there were no borrowings outstanding
under Alliance's revolving credit facility.
In December 1999, Alliance established a $100.0 million extendible
commercial notes ("ECN") program to supplement its commercial paper
program. ECN's are short-term debt instruments that do not require any
back-up liquidity support.
Long-term Debt
--------------
Several of the long-term debt agreements have restrictive covenants related
to the total amount of debt, net tangible assets and other matters. At
December 31, 1999, the Company is in compliance with all debt covenants.
The Company has pledged real estate, mortgage loans, cash and securities
amounting to $323.6 million and $640.2 million at December 31, 1999 and
1998, respectively, as collateral for certain short-term and long-term
debt.
At December 31, 1999, aggregate maturities of the long-term debt based on
required principal payments at maturity was $3.0 million for 2000 and
$848.7 million for 2005 and thereafter.
10) FEDERAL INCOME TAXES
A summary of the Federal income tax expense in the consolidated statements
of earnings follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current.......................................... $ 174.0 $ 283.3 $ 186.5
Deferred......................................... 158.0 69.8 (95.0)
------------- ------------ ------------
Total.............................................. $ 332.0 $ 353.1 $ 91.5
============= ============ ============
</TABLE>
F-24
<PAGE>
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
Federal income taxes and minority interest by the expected Federal income
tax rate of 35%. The sources of the difference and their tax effects
follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Expected Federal income tax expense................ $ 458.4 $ 414.3 $ 234.7
Non-taxable minority interest...................... (47.8) (33.2) (38.0)
Non-taxable subsidiary gains....................... (37.1) (6.4) -
Adjustment of tax audit reserves................... 27.8 16.0 (81.7)
Equity in unconsolidated subsidiaries.............. (64.0) (39.3) (45.1)
Other.............................................. (5.3) 1.7 21.6
------------- ------------ ------------
Federal Income Tax Expense......................... $ 332.0 $ 353.1 $ 91.5
============= ============ ============
</TABLE>
The components of the net deferred Federal income taxes are as follows:
<TABLE>
<CAPTION>
DECEMBER 31, 1999 December 31, 1998
----------------------------- -----------------------------
ASSETS LIABILITIES Assets Liabilities
----------- ------------ ------------ -----------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Compensation and related benefits...... $ - $ 37.7 $ 235.3 $ -
Other.................................. - 20.6 27.8 -
DAC, reserves and reinsurance.......... - 329.7 - 231.4
Investments............................ 115.1 - - 364.4
----------- ------------ ------------ -----------
Total.................................. $ 115.1 $ 388.0 $ 263.1 $ 595.8
=========== ============ ============ ===========
</TABLE>
At December 31, 1999, in conjunction with the non-qualified employee
benefit plans, $236.8 million in deferred tax asset was transferred to the
Holding Company. See Note 12 for discussion of the benefit plans
transferred.
The deferred Federal income taxes impacting operations reflect the net tax
effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for
income tax purposes. The sources of these temporary differences and their
tax effects follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
DAC, reserves and reinsurance...................... $ 83.2 $ (7.7) $ 46.2
Investments........................................ 3.2 46.8 (113.8)
Compensation and related benefits.................. 21.0 28.6 3.7
Other.............................................. 50.6 2.1 (31.1)
------------- ------------ ------------
Deferred Federal Income Tax
Expense (Benefit)................................ $ 158.0 $ 69.8 $ (95.0)
============= ============ ============
</TABLE>
The Internal Revenue Service (the "IRS") is in the process of examining the
Holding Company's consolidated Federal income tax returns for the years
1992 through 1996. Management believes these audits will have no material
adverse effect on the Company's results of operations.
F-25
<PAGE>
11) REINSURANCE AGREEMENTS
The Insurance Group assumes and cedes reinsurance with other insurance
companies. The Insurance Group evaluates the financial condition of its
reinsurers to minimize its exposure to significant losses from reinsurer
insolvencies. Ceded reinsurance does not relieve the originating insurer of
liability. The effect of reinsurance (excluding group life and health) is
summarized as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Direct premiums.................................... $ 420.6 $ 438.8 $ 448.6
Reinsurance assumed................................ 206.7 203.6 198.3
Reinsurance ceded.................................. (69.1) (54.3) (45.4)
------------- ------------ ------------
Premiums........................................... $ 558.2 $ 588.1 $ 601.5
============= ============ ============
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 69.7 $ 75.7 $ 61.0
============= ============ ============
Policyholders' Benefits Ceded...................... $ 99.6 $ 85.9 $ 70.6
============= ============ ============
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 38.5 $ 39.5 $ 36.4
============= ============ ============
</TABLE>
Since 1997, the Company reinsures on a yearly renewal term basis 90% of the
mortality risk on new issues of certain term, universal and variable life
products. The Company's retention limit on joint survivorship policies is
$15.0 million. All in force business above $5.0 million is reinsured. The
Insurance Group also reinsures the entire risk on certain substandard
underwriting risks and in certain other cases.
The Insurance Group cedes 100% of its group life and health business to a
third party insurer. Premiums ceded totaled $.1 million, $1.3 million and
$1.6 million for 1999, 1998 and 1997, respectively. Ceded death and
disability benefits totaled $44.7 million, $15.6 million and $4.3 million
for 1999, 1998 and 1997, respectively. Insurance liabilities ceded totaled
$510.5 million and $560.3 million at December 31, 1999 and 1998,
respectively.
F-26
<PAGE>
12) EMPLOYEE BENEFIT PLANS
The Company sponsors qualified and non-qualified defined benefit plans
covering substantially all employees (including certain qualified part-time
employees), managers and certain agents. The pension plans are
non-contributory. Equitable Life's benefits are based on a cash balance
formula or years of service and final average earnings, if greater, under
certain grandfathering rules in the plans. Alliance's benefits are based on
years of credited service, average final base salary and primary social
security benefits. The Company's funding policy is to make the minimum
contribution required by the Employee Retirement Income Security Act of
1974 ("ERISA").
Effective December 31, 1999, the Holding Company legally assumed primary
liability from Equitable Life for all current and future obligations of its
Excess Retirement Plan, Supplemental Executive Retirement Plan and certain
other employee benefit plans that provide participants with medical, life
insurance, and deferred compensation benefits; Equitable Life remains
secondarily liable. The amount of the liability associated with employee
benefits transferred was $676.5 million, including $183.0 million of
non-qualified pension benefit obligations and $394.1 million of
postretirement benefits obligations at December 31, 1999. This transfer was
recorded as a non-cash capital contribution to Equitable Life.
Components of net periodic pension (credit) cost for the qualified and
non-qualified plans follow:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 36.7 $ 33.2 $ 32.5
Interest cost on projected benefit obligations..... 131.6 129.2 128.2
Actual return on assets............................ (189.8) (175.6) (307.6)
Net amortization and deferrals..................... 7.5 6.1 166.6
------------- ------------ ------------
Net Periodic Pension Cost (Credit)................. $ (14.0) $ (7.1) $ 19.7
============= ============ ============
</TABLE>
The projected benefit obligations under the qualified and non-qualified
pension plans were comprised of:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Benefit obligations, beginning of year................................. $ 1,933.4 $ 1,801.3
Service cost........................................................... 36.7 33.2
Interest cost.......................................................... 131.6 129.2
Actuarial (gains) losses............................................... (53.3) 108.4
Benefits paid.......................................................... (123.1) (138.7)
------------ ------------
Subtotal before transfer............................................... 1,925.3 1,933.4
Transfer of Non-qualified Pension Benefit Obligation
to the Holding Company............................................... (262.5) -
------------ ------------
Benefit Obligation, End of Year........................................ $ 1,662.8 $ 1,933.4
============ ============
</TABLE>
F-27
<PAGE>
The funded status of the qualified and non-qualified pension plans was as
follows:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Plan assets at fair value, beginning of year........................... $ 2,083.1 $ 1,867.4
Actual return on plan assets........................................... 369.0 338.9
Contributions.......................................................... .1 -
Benefits paid and fees................................................. (108.5) (123.2)
------------ ------------
Plan assets at fair value, end of year................................. 2,343.7 2,083.1
Projected benefit obligations.......................................... 1,925.3 1,933.4
------------ ------------
Excess of plan assets over projected benefit obligations............... 418.4 149.7
Unrecognized prior service cost........................................ (5.2) (7.5)
Unrecognized net (gain) loss from past experience different
from that assumed.................................................... (197.3) 38.7
Unrecognized net asset at transition................................... (.1) 1.5
------------ ------------
Subtotal before transfer............................................... 215.8 182.4
Transfer of Accrued Non-qualified Pension Benefit Obligation
to the Holding Company............................................... 183.0 -
------------ ------------
Prepaid Pension Cost, Net.............................................. $ 398.8 $ 182.4
============ ============
</TABLE>
The prepaid pension cost for pension plans with assets in excess of
projected benefit obligations was $412.2 million and $363.9 million and the
accrued liability for pension plans with projected benefit obligations in
excess of plan assets was $13.5 million and $181.5 million at December 31,
1999 and 1998, respectively.
The pension plan assets include corporate and government debt securities,
equity securities, equity real estate and shares of group trusts managed by
Alliance. The discount rate and rate of increase in future compensation
levels used in determining the actuarial present value of projected benefit
obligations were 8.0% and 6.38%, respectively, at December 31, 1999 and
7.0% and 3.83%, respectively, at December 31, 1998. As of January 1, 1999
and 1998, the expected long-term rate of return on assets for the
retirement plan was 10.0% and 10.25%, respectively.
The Company recorded, as a reduction of shareholder's equity, an additional
minimum pension liability of $.1 million, $28.3 million and $17.3 million,
net of Federal income taxes, at December 31, 1999, 1998 and 1997,
respectively, primarily representing the excess of the accumulated benefit
obligation of the non-qualified pension plan over the accrued liability.
The aggregate accumulated benefit obligation and fair value of plan assets
for pension plans with accumulated benefit obligations in excess of plan
assets were $325.7 million and $36.3 million, respectively, at December 31,
1999 and $309.7 million and $34.5 million, respectively, at December 31,
1998.
Prior to 1987, the qualified plan funded participants' benefits through the
purchase of non-participating annuity contracts from Equitable Life.
Benefit payments under these contracts were approximately $30.2 million,
$31.8 million and $33.2 million for 1999, 1998 and 1997, respectively.
The Company provides certain medical and life insurance benefits
(collectively, "postretirement benefits") for qualifying employees,
managers and agents retiring from the Company (i) on or after attaining age
55 who have at least 10 years of service or (ii) on or after attaining age
65 or (iii) whose jobs have been abolished and who have attained age 50
with 20 years of service. The life insurance benefits are related to age
and salary at retirement. The costs of postretirement benefits are
recognized in accordance with the provisions of SFAS No. 106. The Company
continues to fund postretirement benefits costs on a pay-as-you-go basis
and, for 1999, 1998 and 1997, the Company made estimated postretirement
benefits payments of $29.5 million, $28.4 million and $18.7 million,
respectively.
F-28
<PAGE>
The following table sets forth the postretirement benefits plan's status,
reconciled to amounts recognized in the Company's consolidated financial
statements:
<TABLE>
<CAPTION>
1999 1998 1997
----------------- ---------------- -----------------
(IN MILLIONS)
<S> <C> <C> <C>
Service cost....................................... $ 4.7 $ 4.6 $ 4.5
Interest cost on accumulated postretirement
benefits obligation.............................. 34.4 33.6 34.7
Unrecognized prior service costs................... (7.0) - -
Net amortization and deferrals..................... 8.4 .5 1.9
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 40.5 $ 38.7 $ 41.1
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Accumulated postretirement benefits obligation, beginning
of year.............................................................. $ 490.4 $ 490.8
Service cost........................................................... 4.7 4.6
Interest cost.......................................................... 34.4 33.6
Contributions and benefits paid........................................ (29.5) (28.4)
Actuarial gains........................................................ (29.0) (10.2)
------------ ------------
Accumulated postretirement benefits obligation, end of year............ 471.0 490.4
Unrecognized prior service cost........................................ 26.9 31.8
Unrecognized net loss from past experience different
from that assumed and from changes in assumptions.................... (86.0) (121.2)
------------ ------------
Subtotal before transfer............................................... 411.9 401.0
Transfer to the Holding Company........................................ (394.1) -
------------ ------------
Accrued Postretirement Benefits Cost................................... $ 17.8 $ 401.0
============ ============
</TABLE>
Since January 1, 1994, costs to the Company for providing these medical
benefits available to retirees under age 65 are the same as those offered
to active employees and medical benefits will be limited to 200% of 1993
costs for all participants.
The assumed health care cost trend rate used in measuring the accumulated
postretirement benefits obligation was 7.5% in 1999, gradually declining to
4.75% in the year 2010, and in 1998 was 8.0%, gradually declining to 2.5%
in the year 2009. The discount rate used in determining the accumulated
postretirement benefits obligation was 8.0% and 7.0% at December 31, 1999
and 1998, respectively.
If the health care cost trend rate assumptions were increased by 1%, the
accumulated postretirement benefits obligation as of December 31, 1999
would be increased 3.55%. The effect of this change on the sum of the
service cost and interest cost would be an increase of 3.91%. If the health
care cost trend rate assumptions were decreased by 1% the accumulated
postretirement benefits obligation as of December 31, 1999 would be
decreased by 4.38%. The effect of this change on the sum of the service
cost and interest cost would be a decrease of 4.96%.
F-29
<PAGE>
13) DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivatives
-----------
The Insurance Group primarily uses derivatives for asset/liability risk
management and for hedging individual securities. Derivatives mainly are
utilized to reduce the Insurance Group's exposure to interest rate
fluctuations. Accounting for interest rate swap transactions is on an
accrual basis. Gains and losses related to interest rate swap transactions
are amortized as yield adjustments over the remaining life of the
underlying hedged security. Income and expense resulting from interest rate
swap activities are reflected in net investment income. The notional amount
of matched interest rate swaps outstanding at December 31, 1999 and 1998,
respectively, was $797.3 million and $880.9 million. The average unexpired
terms at December 31, 1999 ranged from two months to 5.0 years. At December
31, 1999, the cost of terminating swaps in a loss position was $1.8
million. Equitable Life maintains an interest rate cap program designed to
hedge crediting rates on interest-sensitive individual annuities contracts.
The outstanding notional amounts at December 31, 1999 of contracts
purchased and sold were $7,575.0 million and $875.0 million, respectively.
The net premium paid by Equitable Life on these contracts was $51.6 million
and is being amortized ratably over the contract periods ranging from 1 to
4 years. Income and expense resulting from this program are reflected as an
adjustment to interest credited to policyholders' account balances.
DLJ enters into certain contractual agreements referred to as derivatives
or off-balance-sheet financial instruments primarily for trading purposes
and to provide products for its clients. DLJ performs the following
activities: writing over-the-counter ("OTC") options to accommodate
customer needs; trading in forward contracts in U.S. government and agency
issued or guaranteed securities; trading in futures contracts on equity
based indices, interest rate instruments, and currencies; and issuing
structured products based on emerging market financial instruments and
indices. DLJ also enters into swap agreements, primarily equity, interest
rate and foreign currency swaps. DLJ is not significantly involved in
commodity derivative instruments.
Fair Value of Financial Instruments
-----------------------------------
The Company defines fair value as the quoted market prices for those
instruments that are actively traded in financial markets. In cases where
quoted market prices are not available, fair values are estimated using
present value or other valuation techniques. The fair value estimates are
made at a specific point in time, based on available market information and
judgments about the financial instrument, including estimates of the timing
and amount of expected future cash flows and the credit standing of
counterparties. Such estimates do not reflect any premium or discount that
could result from offering for sale at one time the Company's entire
holdings of a particular financial instrument, nor do they consider the tax
impact of the realization of unrealized gains or losses. In many cases, the
fair value estimates cannot be substantiated by comparison to independent
markets, nor can the disclosed value be realized in immediate settlement of
the instrument.
Certain financial instruments are excluded, particularly insurance
liabilities other than financial guarantees and investment contracts. Fair
market value of off-balance-sheet financial instruments of the Insurance
Group was not material at December 31, 1999 and 1998.
F-30
<PAGE>
Fair values for mortgage loans on real estate are estimated by discounting
future contractual cash flows using interest rates at which loans with
similar characteristics and credit quality would be made. Fair values for
foreclosed mortgage loans and problem mortgage loans are limited to the
estimated fair value of the underlying collateral if lower.
Fair values of policy loans are estimated by discounting the face value of
the loans from the time of the next interest rate review to the present, at
a rate equal to the excess of the current estimated market rates over the
current interest rate charged on the loan.
The estimated fair values for the Company's association plan contracts,
supplementary contracts not involving life contingencies ("SCNILC") and
annuities certain, which are included in policyholders' account balances,
and guaranteed interest contracts are estimated using projected cash flows
discounted at rates reflecting expected current offering rates.
The estimated fair values for variable deferred annuities and single
premium deferred annuities ("SPDA"), which are included in policyholders'
account balances, are estimated by discounting the account value back from
the time of the next crediting rate review to the present, at a rate equal
to the excess of current estimated market rates offered on new policies
over the current crediting rates.
Fair values for long-term debt are determined using published market
values, where available, or contractual cash flows discounted at market
interest rates. The estimated fair values for non-recourse mortgage debt
are determined by discounting contractual cash flows at a rate which takes
into account the level of current market interest rates and collateral
risk. The estimated fair values for recourse mortgage debt are determined
by discounting contractual cash flows at a rate based upon current interest
rates of other companies with credit ratings similar to the Company. The
Company's carrying value of short-term borrowings approximates their
estimated fair value.
The following table discloses carrying value and estimated fair value for
financial instruments not otherwise disclosed in Notes 3, 7 and 8:
<TABLE>
<CAPTION>
DECEMBER 31,
--------------------------------------------------------------------
1999 1998
--------------------------------- ---------------------------------
CARRYING ESTIMATED Carrying Estimated
VALUE FAIR VALUE Value Fair Value
--------------- ---------------- --------------- ---------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
Consolidated Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... $ 3,270.0 $ 3,239.3 $ 2,809.9 $ 2,961.8
Other limited partnership interests.... 647.9 647.9 562.6 562.6
Policy loans........................... 2,257.3 2,359.5 2,086.7 2,370.7
Policyholders' account balances -
investment contracts................. 12,740.4 12,800.5 12,892.0 13,396.0
Long-term debt......................... 850.9 834.9 1,002.4 1,025.2
Closed Block Financial Instruments:
-----------------------------------
Mortgage loans on real estate.......... $ 1,704.2 $ 1,650.3 $ 1,633.4 $ 1,703.5
Other equity investments............... 36.3 36.3 56.4 56.4
Policy loans........................... 1,593.9 1,712.0 1,641.2 1,929.7
SCNILC liability....................... 22.8 22.5 25.0 25.0
Discontinued Operations Financial
---------------------------------
Instruments:
------------
Mortgage loans on real estate.......... $ 454.6 $ 467.0 $ 553.9 $ 599.9
Fixed maturities....................... 85.5 85.5 24.9 24.9
Other equity investments............... 55.8 55.8 115.1 115.1
Guaranteed interest contracts.......... 33.2 27.5 37.0 34.0
Long-term debt......................... 101.9 101.9 147.1 139.8
</TABLE>
F-31
<PAGE>
14) COMMITMENTS AND CONTINGENT LIABILITIES
The Company has provided, from time to time, certain guarantees or
commitments to affiliates, investors and others. These arrangements include
commitments by the Company, under certain conditions: to make capital
contributions of up to $59.4 million to affiliated real estate joint
ventures; and to provide equity financing to certain limited partnerships
of $373.8 million at December 31, 1999, under existing loan or loan
commitment agreements.
Equitable Life is the obligor under certain structured settlement
agreements which it had entered into with unaffiliated insurance companies
and beneficiaries. To satisfy its obligations under these agreements,
Equitable Life owns single premium annuities issued by previously wholly
owned life insurance subsidiaries. Equitable Life has directed payment
under these annuities to be made directly to the beneficiaries under the
structured settlement agreements. A contingent liability exists with
respect to these agreements should the previously wholly owned subsidiaries
be unable to meet their obligations. Management believes the satisfaction
of those obligations by Equitable Life is remote.
The Insurance Group had $24.9 million of letters of credit outstanding at
December 31, 1999.
15) LITIGATION
The Company
-----------
Life Insurance and Annuity Sales Cases
A number of lawsuits are pending as individual claims and purported class
actions against Equitable Life, its subsidiary insurance company and a
former insurance subsidiary. These actions involve, among other things,
sales of life and annuity products for varying periods from 1980 to the
present, and allege, among other things, sales practice misrepresentation
primarily involving: the number of premium payments required; the propriety
of a product as an investment vehicle; the propriety of a product as a
replacement of an existing policy; and failure to disclose a product as
life insurance. Some actions are in state courts and others are in U.S.
District Courts in different jurisdictions, and are in varying stages of
discovery and motions for class certification.
In general, the plaintiffs request an unspecified amount of damages,
punitive damages, enjoinment from the described practices, prohibition
against cancellation of policies for non-payment of premium or other
remedies, as well as attorneys' fees and expenses. Similar actions have
been filed against other life and health insurers and have resulted in the
award of substantial judgments, including material amounts of punitive
damages, or in substantial settlements. Although the outcome of litigation
cannot be predicted with certainty, particularly in the early stages of an
action, the Company's management believes that the ultimate resolution of
these cases should not have a material adverse effect on the financial
position of the Company. The Company's management cannot make an estimate
of loss, if any, or predict whether or not any such litigation will have a
material adverse effect on the Company's results of operations in any
particular period.
Discrimination Case
Equitable Life is a defendant in an action, certified as a class action in
September 1997, in the United States District Court for the Northern
District of Alabama, Southern Division, involving alleged discrimination on
the basis of race against African-American applicants and potential
applicants in hiring individuals as sales agents. Plaintiffs seek a
declaratory judgment and affirmative and negative injunctive relief,
including the payment of back-pay, pension and other compensation. Although
the outcome of litigation cannot be predicted with certainty, the Company's
management believes that the ultimate resolution of this matter should not
have a material adverse effect on the financial position of the Company.
The Company's management cannot make an estimate of loss, if any, or
predict whether or not such matter will have a material adverse effect on
the Company's results of operations in any particular period.
Agent Health Benefits Case
Equitable Life is a defendant in an action, certified as a class action in
March 1999, in the United States District Court for the Northern District
of California, alleging, among other things, that Equitable Life violated
ERISA by eliminating certain alternatives pursuant to which agents of
Equitable Life could qualify for health care coverage. The class consists
of "[a]ll current, former and retired Equitable agents, who while
F-32
<PAGE>
associated with Equitable satisfied [certain alternatives] to qualify for
health coverage or contributions thereto under applicable plans."
Plaintiffs allege various causes of action under ERISA, including claims
for enforcement of alleged promises contained in plan documents and for
enforcement of agent bulletins, breach of unilateral contract, breach of
fiduciary duty and promissory estoppel. The parties are currently engaged
in discovery. Although the outcome of any litigation cannot be predicted
with certainty, the Company's management believes that the ultimate
resolution of this matter should not have a material adverse effect on the
financial position of the Company. The Company's management cannot make an
estimate of loss, if any, or predict whether or not such matter will have a
material adverse effect on the Company's results of operations in any
particular period.
Prime Property Fund Case
In January 2000, the California Supreme Court denied the Company's petition
for review of an October 1999 decision by the California Superior Court of
Appeal. Such decision reversed the dismissal by the Supreme Court of Orange
County, California of an action which was commenced in 1995 by a real
estate developer in connection with a limited partnership formed in 1991
with the Company on behalf of Prime Property Fund ("PPF"). The Company
serves as investment manager for PPF, an open-end, commingled real estate
separate account of the Company for pension clients. Plaintiff alleges
breach of fiduciary duty and other claims principally in connection with
PPF's 1995 purchase and subsequent foreclosure of the loan which financed
the partnership's property. Plaintiff seeks compensatory and punitive
damages. The case has been remanded to the Superior Court for further
proceedings. Although the outcome of litigation cannot be predicted with
certainty, the Company's management believes that the ultimate resolution
of this matter should not have a material adverse effect on the financial
position of the Company. The Company's management cannot make an estimate
of loss, if any, or predict whether or not this matter will have a material
adverse effect on the Company's results of operations in any particular
period.
Alliance Capital
----------------
In July 1995, a class action complaint was filed against Alliance North
American Government Income Trust, Inc. (the "Fund"), Alliance Holding and
certain other defendants affiliated with Alliance, including the Holding
Company, alleging violations of Federal securities laws, fraud and breach
of fiduciary duty in connection with the Fund's investments in Mexican and
Argentine securities. The original complaint was dismissed in 1996; on
appeal, the dismissal was affirmed. In October 1996, plaintiffs filed a
motion for leave to file an amended complaint, alleging the Fund failed to
hedge against currency risk despite representations that it would do so,
the Fund did not properly disclose that it planned to invest in
mortgage-backed derivative securities and two Fund advertisements
misrepresented the risks of investing in the Fund. In October 1998, the
U.S. Court of Appeals for the Second Circuit issued an order granting
plaintiffs' motion to file an amended complaint alleging that the Fund
misrepresented its ability to hedge against currency risk and denying
plaintiffs' motion to file an amended complaint containing the other
allegations. In December 1999, the United States District Court for the
Southern District of New York granted the defendants' motion for summary
judgment on all claims against all defendants. Later in December 1999, the
plaintiffs filed motions for reconsideration of the Court's ruling. These
motions are currently pending with the Court.
In connection with the Reorganization; Alliance assumed any liabilities
which Alliance Holding may have with respect to this action. Alliance and
Alliance Holding believe that the allegations in the amended complaint are
without merit and intend to vigorously defend against these claims. While
the ultimate outcome of this matter cannot be determined at this time,
management of Alliance Holding and Alliance do not expect that it will have
a material adverse effect on Alliance Holding's or Alliance's results of
operations or financial condition.
DLJSC
-----
Donaldson, Lufkin & Jenrette Securities Corporation ("DLJSC") is a
defendant along with certain other parties in a class action complaint
involving the underwriting of units, consisting of notes and warrants to
purchase common shares, of Rickel Home Centers, Inc. ("Rickel"), which
filed a voluntary petition for reorganization pursuant to Chapter 11 of the
Bankruptcy Code. The complaint seeks unspecified compensatory and punitive
damages from DLJSC, as an underwriter and as an owner of 7.3% of the common
stock, for alleged violation of Federal securities laws and common law
fraud for alleged misstatements and omissions contained in the prospectus
and registration statement used in the offering of the units. In April
1999, the complaint against DLJSC and the other defendants was dismissed.
The plaintiffs have appealed. DLJSC intends to defend itself vigorously
against all the allegations contained in the complaint.
DLJSC is a defendant in a purported class action filed in a Texas State
Court on behalf of the holders of $550 million principal amount of
subordinated redeemable discount debentures of National Gypsum Corporation
("NGC"). The debentures were canceled in connection with a Chapter 11 plan
of reorganization for NGC consummated in July 1993. The litigation seeks
compensatory and punitive damages for DLJSC's activities as financial
advisor to NGC in the course of NGC's Chapter 11 proceedings. In March
1999, the Court granted motions for summary judgment filed by DLJSC and the
other defendants. The plaintiffs have appealed. DLJSC intends to defend
itself vigorously against all the allegations contained in the complaint.
In November 1998, three purported class actions 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. In March 1999,
the plaintiffs filed a consolidated amended complaint. A motion by all
defendants
F-33
<PAGE>
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 Justice Department 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 resolution of the litigations described above to which DLJSC
is a party 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 such litigations will have a
material adverse effect on DLJ's results of operations in any particular
period.
Other Matters
In addition to the matters described above, the Holding Company 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.
16) LEASES
The Company has entered into operating leases for office space and certain
other assets, principally information technology equipment and office
furniture and equipment. Future minimum payments under noncancelable leases
for 2000 and the four successive years are $111.2 million, $93.3 million,
$78.3 million, $71.9 million, $66.5 million and $523.7 million thereafter.
Minimum future sublease rental income on these noncancelable leases for
2000 and the four successive years is $5.2 million, $4.1 million, $2.8
million, $2.8 million, $2.8 million and $23.8 million thereafter.
At December 31, 1999, the minimum future rental income on noncancelable
operating leases for wholly owned investments in real estate for 2000 and
the four successive years is $120.7 million, $113.5 million, $96.0 million,
$79.7 million, $74.1 million and $354.6 million thereafter.
17) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
1999 1998 1997
------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C>
Compensation costs................................. $ 1,010.6 $ 772.0 $ 721.5
Commissions........................................ 549.5 478.1 409.6
Short-term debt interest expense................... 16.7 26.1 31.7
Long-term debt interest expense.................... 76.3 84.6 121.2
Amortization of policy acquisition costs........... 314.5 292.7 287.3
Capitalization of policy acquisition costs......... (709.9) (609.1) (508.0)
Writedown of policy acquisition costs.............. 131.7 - -
Rent expense, net of sublease income............... 113.9 100.0 101.8
Cursitor intangible assets writedown............... - - 120.9
Other.............................................. 1,294.0 1,056.8 917.9
------------- ------------ ------------
Total.............................................. $ 2,797.3 $ 2,201.2 $ 2,203.9
================= ================ =================
</TABLE>
F-34
<PAGE>
During 1997, the Company restructured certain operations in connection with
cost reduction programs and recorded a pre-tax provision of $42.4 million.
The amount paid during 1999 associated with cost reduction programs totaled
$15.6 million. At December 31, 1999, the remaining liabilities associated
with cost reduction programs was $8.8 million. The 1997 cost reduction
program included costs related to employee termination and exit costs.
18) INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
Equitable Life is restricted as to the amounts it may pay as shareholder
dividends. Under the New York Insurance Law, the Superintendent has broad
discretion to determine whether the financial condition of a stock life
insurance company would support the payment of dividends to its
shareholders. For 1999, 1998 and 1997, statutory net income (loss) totaled
$547.0 million, $384.4 million and ($351.7) million, respectively.
Statutory surplus, capital stock and Asset Valuation Reserve ("AVR")
totaled $5,570.6 million and $4,728.0 million at December 31, 1999 and
1998, respectively. In September 1999, $150.0 million in dividends were
paid to the Holding Company by Equitable Life, the first such payment since
Equitable Life's demutualization in 1992.
At December 31, 1999, the Insurance Group, in accordance with various
government and state regulations, had $26.8 million of securities deposited
with such government or state agencies.
The differences between statutory surplus and capital stock determined in
accordance with Statutory Accounting Principles ("SAP") and total
shareholder's equity under GAAP are primarily: (a) the inclusion in SAP of
an AVR intended to stabilize surplus from fluctuations in the value of the
investment portfolio; (b) future policy benefits and policyholders' account
balances under SAP differ from GAAP due to differences between actuarial
assumptions and reserving methodologies; (c) certain policy acquisition
costs are expensed under SAP but deferred under GAAP and amortized over
future periods to achieve a matching of revenues and expenses; (d) external
and certain internal costs incurred to obtain or develop internal use
computer software during the application development stage is capitalized
under GAAP but expensed under SAP; (e) Federal income taxes are generally
accrued under SAP based upon revenues and expenses in the Federal income
tax return while under GAAP deferred taxes provide for timing differences
between recognition of revenues and expenses for financial reporting and
income tax purposes; (f) the valuation of assets under SAP and GAAP differ
due to different investment valuation and depreciation methodologies, as
well as the deferral of interest-related realized capital gains and losses
on fixed income investments; and (g) differences in the accrual
methodologies for post-employment and retirement benefit plans.
F-35
<PAGE>
19) BUSINESS SEGMENT INFORMATION
The Company's operations consist of Insurance and Investment Services. The
Company's management evaluates the performance of each of these segments
independently and allocates resources based on current and future
requirements of each segment. Management evaluates the performance of each
segment based upon operating results adjusted to exclude the effect of
unusual or non-recurring events and transactions and certain revenue and
expense categories not related to the base operations of the particular
business net of minority interest. Information for all periods is presented
on a comparable basis.
Intersegment investment advisory and other fees of approximately $75.6
million, $61.8 million and $84.1 million for 1999, 1998 and 1997,
respectively, are included in total revenues of the Investment Services
segment. These fees, excluding amounts related to discontinued operations
of $.5 million, $.5 million and $4.2 million for 1999, 1998 and 1997,
respectively, are eliminated in consolidation.
The following tables reconcile each segment's revenues and operating
earnings to total revenues and earnings from continuing operations before
Federal income taxes and cumulative effect of accounting change as reported
on the consolidated statements of earnings and the segments' assets to
total assets on the consolidated balance sheets, respectively.
<TABLE>
<CAPTION>
INVESTMENT
INSURANCE SERVICES ELIMINATION TOTAL
------------- ------------ ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1999
----
Segment revenues..................... $ 4,283.0 $ 2,052.7 $ (23.8) $ 6,311.9
Investment (losses) gains............ (199.4) 111.5 - (87.9)
------------- ------------ ------------ ------------
Total Revenues....................... $ 4,083.6 $ 2,164.2 $ (23.8) $ 6,224.0
============= ============ ============ ============
Pre-tax operating earnings........... $ 895.7 $ 427.0 $ - $ 1,322.7
Investment (losses) gains , net of
DAC and other charges.............. (208.4) 110.5 - (97.9)
Non-recurring DAC adjustments........ (131.7) - - (131.7)
Pre-tax minority interest............ - 216.8 - 216.8
------------- ------------ ------------ ------------
Earnings from Continuing
Operations......................... $ 555.6 $ 754.3 $ - $ 1,309.9
============= ============ ============ ============
Total Assets......................... $ 86,842.7 $ 12,961.7 $ (8.9) $ 99,795.5
============= ============ ============ ============
1998
----
Segment revenues..................... $ 4,029.8 $ 1,438.4 $ (5.7) $ 5,462.5
Investment gains..................... 64.8 35.4 - 100.2
------------- ------------ ------------ ------------
Total Revenues....................... $ 4,094.6 $ 1,473.8 $ (5.7) $ 5,562.7
============= ============ ============ ============
Pre-tax operating earnings........... $ 688.6 $ 284.3 $ - $ 972.9
Investment gains, net of
DAC and other charges.............. 41.7 27.7 - 69.4
Pre-tax minority interest............ - 141.5 - 141.5
------------- ------------ ------------ ------------
Earnings from Continuing
Operations......................... 730.3 453.5 - 1,183.8
============= ============ ============ ============
Total Assets......................... $ 75,626.0 $ 12,379.2 $ (64.4) $ 87,940.8
============= ============ ============ ============
</TABLE>
F-36
<PAGE>
<TABLE>
<CAPTION>
INVESTMENT
INSURANCE SERVICES ELIMINATION TOTAL
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
1997
----
Segment revenues..................... $ 3,990.8 $ 1,200.0 $ (7.7) $ 5,183.1
Investment (losses) gains............ (318.8) 255.1 - (63.7)
------------- ------------ ------------ ------------
Total Revenues....................... $ 3,672.0 $ 1,455.1 $ (7.7) $ 5,119.4
============= ============ ============ ============
Pre-tax operating earnings........... $ 507.0 $ 258.3 $ - $ 765.3
Investment (losses) gains, net of
DAC and other charges.............. (292.5) 252.7 - (39.8)
Non-recurring costs and expenses..... (41.7) (121.6) - (163.3)
Pre-tax minority interest............ - 108.5 - 108.5
------------- ------------ ------------ ------------
Earnings from Continuing
Operations......................... $ 172.8 $ 497.9 $ - $ 670.7
============= ============ ============ ============
Total Assets......................... $ 67,762.4 $ 13,691.4 $ (96.1) $ 81,357.7
============= ============ ============ ============
</TABLE>
20) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for 1999 and 1998 are summarized below:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
------------------------------------------------------------------------
MARCH 31 JUNE 30 SEPTEMBER 30 DECEMBER 31
------------- ------------- ------------ ------------
(IN MILLIONS)
<S> <C> <C> <C> <C>
1999
----
Total Revenues................ $ 1,484.3 $ 1,620.3 $ 1,512.1 $ 1,607.3
============= ============= ============ ============
Earnings from Continuing
Operations.................. $ 187.3 $ 222.6 $ 186.5 $ 182.1
============= ============= ============ ============
Net Earnings.................. $ 182.0 $ 221.3 $ 183.1 $ 220.2
============= ============= ============ ============
1998
----
Total Revenues................ $ 1,470.2 $ 1,422.9 $ 1,297.6 $ 1,372.0
============= ============= ============ ============
Earnings from Continuing
Operations.................. $ 212.8 $ 197.0 $ 136.8 $ 158.9
============= ============= ============ ============
Net Earnings.................. $ 213.3 $ 198.3 $ 137.5 $ 159.1
============= ============= ============ ============
</TABLE>
F-37
<PAGE>
21) INVESTMENT IN DLJ
At December 31, 1999, the Company's ownership of DLJ interest was
approximately 31.71%. The Company's ownership interest in DLJ will continue
to be reduced upon the exercise of options granted to certain DLJ employees
and the vesting of forfeitable restricted stock units acquired by DLJ
employees. DLJ restricted stock units represent forfeitable rights to
receive approximately 5.2 million shares of DLJ common stock through
February 2000.
The results of operations of DLJ are accounted for on the equity basis and
are included in commissions, fees and other income in the consolidated
statements of earnings. The Company's carrying value of DLJ is included in
investment in and loans to affiliates in the consolidated balance sheets.
Summarized balance sheets information for DLJ, reconciled to the Company's
carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
DECEMBER 31,
-------------------------------
1999 1998
------------ ------------
(IN MILLIONS)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 27,982.4 $ 13,195.1
Securities purchased under resale agreements........................... 29,538.1 20,063.3
Broker-dealer related receivables...................................... 44,998.1 34,264.5
Other assets........................................................... 6,493.5 4,759.3
------------ ------------
Total Assets........................................................... $ 109,012.1 $ 72,282.2
============ ============
Liabilities:
Securities sold under repurchase agreements............................ $ 56,474.4 $ 35,775.6
Broker-dealer related payables......................................... 37,207.4 26,161.5
Short-term and long-term debt.......................................... 6,518.6 3,997.6
Other liabilities...................................................... 4,704.5 3,219.8
------------ ------------
Total liabilities...................................................... 104,904.9 69,154.5
DLJ's company-obligated mandatorily redeemed preferred
securities of subsidiary trust holding solely debentures of DLJ...... 200.0 200.0
Total shareholders' equity............................................. 3,907.2 2,927.7
------------ ------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 109,012.1 $ 72,282.2
============ ============
DLJ's equity as reported............................................... $ 3,907.2 $ 2,927.7
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 22.9 23.7
The Holding Company's equity ownership in DLJ.......................... (1,341.4) (1,002.4)
Minority interest in DLJ............................................... (1,479.3) (1,118.2)
------------ ------------
The Company's Carrying Value of DLJ.................................... $ 1,109.4 $ 830.8
============ ============
</TABLE>
F-38
<PAGE>
Summarized statements of earnings information for DLJ reconciled to the
Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------ ------------ -------------
(IN MILLIONS)
<S> <C> <C> <C>
Commission, fees and other income..................... $ 4,145.1 $ 3,150.5 $ 2,430.7
Net investment income................................. 2,175.3 2,189.1 1,652.1
Principal Transactions, net........................... 825.9 67.4 557.7
------------ ------------ -------------
Total revenues........................................ 7,146.3 5,407.0 4,640.5
Total expenses including income taxes................. 6,545.6 5,036.2 4,232.2
------------ ------------ -------------
Net earnings.......................................... 600.7 370.8 408.3
Dividends on preferred stock.......................... 21.2 21.3 12.2
------------ ------------ -------------
Earnings Applicable to Common Shares.................. $ 579.5 $ 349.5 $ 396.1
============ ============ =============
DLJ's earnings applicable to common shares as
reported............................................ $ 579.5 $ 349.5 $ 396.1
Amortization of cost in excess of net assets
acquired in 1985.................................... (.9) (.8) (1.3)
The Holding Company's equity in DLJ's earnings........ (222.7) (136.8) (156.8)
Minority interest in DLJ.............................. (172.9) (99.5) (109.1)
------------ ------------ -------------
The Company's Equity in DLJ's Earnings................ $ 183.0 $ 112.4 $ 128.9
============ ============ =============
</TABLE>
22) ACCOUNTING FOR STOCK-BASED COMPENSATION
The Holding Company sponsors a stock incentive plan for employees of
Equitable Life. DLJ and Alliance each sponsor their own stock option plans
for certain employees. The Company has elected to continue to account for
stock-based compensation using the intrinsic value method prescribed in APB
No. 25. Had compensation expense for the Holding Company, DLJ and Alliance
Stock Option Incentive Plan options been determined based on SFAS No. 123's
fair value based method, the Company's pro forma net earnings for 1999,
1998 and 1997 would have been $757.1 million, $678.4 million and $426.3
million, respectively.
The fair values of options granted after December 31, 1994, used as a basis
for the pro forma disclosures above, were estimated as of the grant dates
using the Black-Scholes option pricing model. The option pricing
assumptions for 1999, 1998 and 1997 follow:
<TABLE>
<CAPTION>
HOLDING COMPANY DLJ ALLIANCE
------------------------------ ------------------------------- ----------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
--------- ---------- --------- ---------- --------- ---------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dividend yield...... 0.31% 0.32% 0.48% 0.56% 0.69% 0.86% 8.70% 6.50% 8.00%
Expected volatility. 28% 28% 20% 36% 40% 33% 29% 29% 26%
Risk-free interest
rate.............. 5.46% 5.48% 5.99% 5.06% 5.53% 5.96% 5.70% 4.40% 5.70%
Expected life
in years.......... 5 5 5 5 5 5 7 7.2 7.2
Weighted average
fair value per
option at
grant-date........ $10.78 $11.32 $6.13 $17.19 $16.27 $10.81 $3.88 $3.86 $2.18
</TABLE>
F-39
<PAGE>
A summary of the Holding Company, DLJ and Alliance's option plans follows:
<TABLE>
<CAPTION>
HOLDING COMPANY DLJ ALLIANCE
----------------------------- ----------------------------- -----------------------------
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Price of Price of Price of
Shares Options Shares Options Units Options
(In Millions) Outstanding (In Millions) Outstanding (In Millions) Outstanding
--------------- ------------- --------------- ------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance as of
January 1, 1997........ 13.4 $10.40 22.2 $14.03 10.0 $ 9.54
Granted................ 6.4 $20.93 6.4 $30.54 2.2 $18.28
Exercised.............. (3.2) $10.13 (.2) $16.01 (1.2) $ 8.06
Forfeited.............. (.8) $11.72 (.2) $13.79 (.4) $10.64
--------------- ------------- ---------------
Balance as of
December 31, 1997...... 15.8 $14.53 28.2 $17.78 10.6 $11.41
Granted................ 8.6 $33.13 1.5 $38.59 2.8 $26.28
Exercised.............. (2.2) $10.59 (1.4) $14.91 (.9) $ 8.91
Forfeited.............. (.8) $23.51 (.1) $17.31 (.2) $13.14
--------------- ------------- ---------------
Balance as of
December 31, 1998...... 21.4 $22.00 28.2 $19.04 12.3 $14.92
Granted................ 4.3 $31.70 4.8 $45.23 2.0 $30.18
Exercised.............. (2.4) $13.26 (2.2) $34.61 (1.5) $ 9.51
Forfeited.............. (.6) $24.29 (.1) $15.85 (.3) $17.79
--------------- ------------- ---------------
Balance as of
December 31, 1999...... 22.7 $24.60 30.7 $23.30 12.5 $17.95
=============== ============= ===============
</TABLE>
F-40
<PAGE>
Information about options outstanding and exercisable at December 31, 1999
follows:
<TABLE>
<CAPTION>
Options Outstanding Options Exercisable
--------------------------------------------------- -------------------------------------
Weighted
Average Weighted Weighted
Range of Number Remaining Average Number Average
Exercise Outstanding Contractual Exercise Exercisable Exercise
Prices (In Millions) Life (Years) Price (In Millions) Price
- -------------------- ------------------ ---------------- --------------- ------------------ ----------------
Holding
Company
- --------------------
<S> <C> <C> <C> <C> <C> <C>
$ 9.06 -$13.88 5.6 4.2 $10.50 10.9 $18.98
$14.25 -$22.63 5.2 7.7 $20.95 - -
$25.32 -$34.59 8.2 8.7 $29.08 - -
$40.97 -$41.28 3.7 8.6 $41.28 - -
----------------- ------------------
$ 9.06 -$41.28 22.7 7.3 $24.60 10.9 $18.98
================= ================ =============== ================== ================
DLJ
- --------------------
$13.50 -$25.99 20.2 8.4 $14.61 20.6 $16.62
$26.00 -$38.99 4.9 7.8 $33.99 - -
$39.00 -$52.875 4.8 9.0 $43.28 - -
$53.00 -$76.875 .8 9.7 $57.09 - -
----------------- ------------------
$13.50 -$76.875 30.7 8.4 $23.30 20.6 $16.62
================= ================ =============== ================== ================
Alliance
- --------------------
$ 3.66 -$ 9.81 2.6 3.8 $ 8.31 2.2 $ 8.12
$ 9.88 -$12.56 3.3 5.6 $11.16 2.6 $10.92
$13.75 -$18.47 1.8 7.9 $18.34 .7 $18.34
$18.78 -$26.31 2.8 8.9 $26.16 .6 $26.06
$27.31 -$30.94 2.0 9.9 $30.24 - -
----------------- ------------------
$ 3.66 -$30.94 12.5 7.0 $17.95 6.1 $12.12
================= ================ =============== ================== ================
</TABLE>
F-41
<PAGE>
APPENDIX A
A-1
- --------------------------------------------------------------------------------
DIRECTORS AND PRINCIPAL OFFICERS
Set forth below is information about our directors and, to the extent
they are responsible for variable life insurance operations, our principal
officers. Unless otherwise noted, their address is 1290 Avenue of the Americas,
New York, New York 10104.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
DIRECTORS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Francoise Colloc'h Director of Equitable Life (since July 1992). Member of the AXA Management
AXA Board and Group Executive President, Human Resources, Communication and
23 Avenue Matignon Synergies of AXA (since January 2000). Prior thereto, Senior Executive Vice
75008 Paris, France President, AXA (1993-2000). Director or officer of various subsidiaries and
affiliates of the AXA Group.
- ------------------------------------------------------------------------------------------------------------------------
Henri de Castries Director of Equitable Life (since September 1993). Chairman of the Board of
AXA AXA Financial (since April 1998); Vice Chairman (February 1996 to April 1998).
23 Avenue Matignon Vice Chairman of AXA's Management Board (since January 2000). Prior thereto,
75008 Paris, France Senior Executive Vice President, Financial Services and Life Insurance
Activities in the United States, Germany, the United Kingdom and Benelux (1996
to 2000); Executive Vice President, Financial Services and Life Insurance
Activities (1993 to 1996) of AXA. Director or officer of various subsidiaries
and affiliates of the AXA Group. Director of DLJ and Alliance Capital
Management Corporation, the general partner of Alliance Holding and Alliance.
- ------------------------------------------------------------------------------------------------------------------------
Joseph L. Dionne Director of Equitable Life (since May 1982). Retired Chairman of The
The McGraw-Hill Companies McGraw-Hill Companies (since January 2000); prior thereto, Chairman (April
1221 Avenue of the Americas 1988 to January 2000) and Chief Executive Officer (April 1983 to April 1998).
New York, NY 10020 Director of The McGraw-Hill Companies, Harris Corporation and Ryder System,
Inc. Director of AXA Financial, Inc. (since May, 1992).
- ------------------------------------------------------------------------------------------------------------------------
Denis Duverne Director of Equitable Life (since February 1998). Executive Vice President,
AXA International (US-UK-Benelux) AXA and member of AXA Executive Board (since
23, Avenue Matignon January, 2000). Director, Alliance (since February 1996) and Donaldson Lufkin
75008 Paris, France & Jenrette ("DLJ")(since February 1997).
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
A-2
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
DIRECTORS (continued)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Jean-Rene Fourtou Director of Equitable Life (since July 1992). Vice Chairman of the Management
Rhone-Poulenc S.A. Board of Aventis (since December 1999). Prior thereto, Chairman and Chief
25, Quai Paul Doumer Executive Officer of Rhone-Poulenc, S.A. (1986 to December 1999). Member of
92408 Courbevoie Cedex the Supervisory Board of AXA. Director of Schneider S.A., Paribas, and Groupe
France Pernod-Ricard. Member of the Consulting Council of Banque de France.
Director, AXA Financial (since July, 1992).
- ------------------------------------------------------------------------------------------------------------------------
Norman C. Francis Director of Equitable Life (since March 1989). President of Xavier University
Xavier University of Louisiana of Louisiana; Director, First National Bank of Commerce, New Orleans, LA,
7325 Palmetto Street Piccadilly Cafeterias, Inc., and Entergy Corporation.
New Orleans, LA 70125
- ------------------------------------------------------------------------------------------------------------------------
Donald J. Greene Director of Equitable Life (since July 1991). Of Counsel, LeBoeuf, Lamb,
LeBoeuf, Lamb, Greene & MacRae, Greene & MacRae, L.L.P. (since 1999). Prior thereto, Partner of the firm
L.L.P. (1965 to 1999). Director of AXA Financial (since May 1992).
125 West 55th Street
New York, NY 10019-4513
- ------------------------------------------------------------------------------------------------------------------------
John T. Hartley Director of Equitable Life (since August 1987). Currently a Director and
1025 NASA Boulevard retired Chairman and Chief Executive Officer of Harris Corporation (retired
Melbourne, FL 32919 July 1995); previously held other officerships with Harris Corporation.
Director of AXA Financial (since May 1992); Director of the McGraw Hill
Companies.
- ------------------------------------------------------------------------------------------------------------------------
John H.F. Haskell Jr. Director of Equitable Life (since July 1992); Director of AXA Financial
SBC Warburg Dillon Read LLC (since July 1992); Director, Senior Advisor of Warburg Dillon Read LLC (since
535 Madison Avenue 1999); Prior thereto, Managing Director and member of its Board of Directors
New York, NY 10022 (1975-1999); Chairman, Supervisory Board, Dillon Read (France) Gestion (until
1998); Director, Pall Corporation (since November 1998).
- ------------------------------------------------------------------------------------------------------------------------
Mary (Nina) Henderson Director of Equitable Life (since December 1996). Corporate Vice President,
BESTFOODS Core Business Development of Bestfoods (since June 1999). Prior thereto,
International Plaza President, Bestfoods Grocery and Vice President, Bestfoods (formerly CPC
700 Sylvan Avenue International, Inc.)(1997 to 1999). President, Bestfoods Specialty Markets
Englewood Cliffs, NJ 07632-9976 Group (1993 to 1997); Director, Hunt Corporation and PACTIV Corporation.
Director, AXA Financial (since December 1996).
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
A-3
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
DIRECTORS (continued)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
W. Edwin Jarmain Director of Equitable Life (since July 1992). President, Jarmain Group Inc.
Jarmain Group Inc. (since 1979); and officer or director of several affiliated companies.
121 King Street West Director, DLJ (since October 1992), AXA Insurance (Canada), Anglo Canada
Suite 2525 General Insurance Company, and AXA Pacific Insurance Company, and Alternate
Toronto, Ontario M5H 3T9 Director, AXA Asia Pacific Holdings Limited. Chairman (non-executive) and
Canada Director, FCA International Ltd. (January 1994 to May 1998). Director of
AXA Financial, Inc. (since July 1992).
- ------------------------------------------------------------------------------------------------------------------------
George T. Lowy Director of Equitable Life (since July 1992). Partner, Cravath, Swaine &
Cravath, Swaine & Moore Moore. Director, Eramet.
825 Eighth Avenue
New York, NY 10019
- ------------------------------------------------------------------------------------------------------------------------
Didier Pineau-Valencienne Director of Equitable Life (since February 1996). Vice Chairman Credit Suisse
Credit Suisse, First Boston First Boston (since March 1999). Chairman and Chief Executive Officer (1981
64, rue de Miromesnel to February 1999)(now Honorary Chairman) Schneider Electric. Member of the
75008 Paris, France Supervisory Board of AXA. Director of CGIP, Aventis (formerly Rhone-Poulenc,
S.A.), Sema Group PLC (UK), Soft Computing and Swiss Helvetic Fund; member of
the Advisory Board of Booz-Allen & Hamilton. Director of AXA Financial, Inc.
(since February 1996).
- ------------------------------------------------------------------------------------------------------------------------
George J. Sella, Jr. Director of Equitable Life (since May 1987). Retired Chairman and Chief
P.O. Box 397 Executive Officer of American Cyanamid Company (retired April 1993);
Newton, NJ 07860 previously held other officerships with American Cyanamid. Director of AXA
Financial (since May 1992) and Coulter Pharmaceutical (since May 1987).
- ------------------------------------------------------------------------------------------------------------------------
Peter J. Tobin Director of Equitable Life (since March 1999); Dean of the Peter J. Tobin
St. John's University College of Business Administration, St. John's University (since August
8000 Utopia Parkway 1998); Chief Financial Officer, Chase Manhattan Corp. (1985 to 1997).
Jamaica, NY 11439
- ------------------------------------------------------------------------------------------------------------------------
Dave H. Williams Director of Equitable Life (since March 1991). Chairman (since 1977) and
Alliance Capital Management former Chief Executive Officer (1977 to January 1999), of Alliance, and
Corporation Chairman or Director of numerous subsidiaries and affiliated companies of
1345 Avenue of the Americas Alliance. Senior Executive Vice President of AXA (since January 1997).
New York, NY 10105 Director of AXA Financial (since May 1992).
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
A-4
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------
OFFICERS-DIRECTORS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Michael Hegarty Director of Equitable Life (since January 1998). President (since January
1998) and Chief Operating Officer (since February 1998), Equitable Life.
Senior Vice Chairman (since November 1999), Vice Chairman (since April 1998),
Senior Executive Vice President (January 1998 to April 1998), and Director
and Chief Operating Officer (both since January 1998), AXA Financial.
Director, President and Chief Operating Officer, Equitable of Colorado (since
December 1999); AXA Client Solutions & Equitable Distribution Holding Corp.
(since September 1999). Vice Chairman (from 1996 to 1997), Chase Manhattan
Corporation. Vice Chairman (from 1995 to 1996) and Senior Executive Vice
President (from 1991 to 1995), Chemical Bank. Director, ACMC, Inc.
("ACMC")(since March 1998). Trustee, EQ Advisors Trust. Director, Equitable
Capital Management Corporation ("ECMC") (since March 1998); Alliance and DLJ
(both since May 1998).
- ------------------------------------------------------------------------------------------------------------------------
Edward D. Miller Director of Equitable Life (since August 1997). Chairman of the Board (since
January 1998), Chief Executive Officer (since August 1997), President (August
1997 to January 1998), Equitable Life. Director, President and Chief
Executive Officer, (all since August 1997), AXA Financial. Director, Chairman
of the Board and Chief Executive Officer, Equitable of Colorado (since
December 1999); AXA Client Solutions and Equitable Distribution Holding Corp.
(since September 1999). Member of the Management Board of AXA (since January
2000); Senior Vice Chairman, Chase Manhattan Corporation (March 1996 to April
1997). President (January 1994 to March 1996) and Vice Chairman (December
1991 to January 1994), Chemical Bank. Director, Alliance (since August 1997),
DLJ (since November 1997), ECMC (since March 1998), ACMC, Inc. (since March
1998), and AXA Canada (since September 1998). Director, KeySpan Energy.
- ------------------------------------------------------------------------------------------------------------------------
Stanley B. Tulin Director and Vice Chairman of the Board (since February 1998), and Chief
Financial Officer (since May 1996), Equitable Life. Vice Chairman of the
Board (since November 1999) and Chief Financial Officer (since May 1997) and
prior thereto, Senior Executive Vice President (February 1998 to November
1999), AXA Financial. Director, Vice Chairman and Chief Financial Officer
(since December 1999) Equitable of Colorado; AXA Client Solutions, LLC and
Equitable Distributions Holding Corp. (since September 1999). Vice President
(until 1998), EQ Advisors Trust. Director, Alliance (since July 1997), and
DLJ (since June 1997). Prior thereto, Chairman, Insurance Consulting and
Actuarial Practice, Coopers & Lybrand, L.L.P.
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
A-5
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Leon B. Billis Executive Vice President (since February 1998) and Chief Information Officer
(since November 1994), Equitable Life. Previously held other officerships
with Equitable Life; Director, J.M.R. Realty Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------
Derry E. Bishop Executive Vice President (since September 1998), Chief Agency Officer, (since
December 1997), and Senior Vice President (January 1995 to September 1998),
Equitable Life; Director and Executive Vice President, AXA Advisors LLC and
Executive Vice President and Chief Agency Officer, AXA Client Solutions, LLC
(all since September 1999). Prior thereto, Director (since 1995) and
Executive Vice President (since 1994) EQF (now AXA Advisors).
- ------------------------------------------------------------------------------------------------------------------------
Harvey Blitz Senior Vice President, Equitable Life. Senior Vice President, AXA Financial.
Director and Chairman, Frontier Trust Company ("Frontier"). Director, EQF
(now AXA Advisors)(until September 1999). Executive Vice President and
Director (since September 1999), AXA Advisors, Director (until May 1996),
Equitable Distributors, Inc. ("EDI"). Director and Senior Vice President, AXA
Network, LLC (formerly EquiSource). Director and Officer of various Equitable
Life affiliates. Previously held other officerships with Equitable Life and
its affiliates.
- ------------------------------------------------------------------------------------------------------------------------
Kevin R. Byrne Senior Vice President and Treasurer, Equitable Life and AXA Financial. Senior
Vice President and Treasurer, AXA Client Solutions, LLC and Equitable
Distributors (since September 1999); Equitable of Colorado (since December
1999). Treasurer, Frontier (since 1990) and AXA Network, LLC (since 1999).
President and Chief Executive Officer (since September 1997), and prior
thereto, Vice President and Treasurer, Equitable Casualty Insurance Company
("Casualty"). Vice President and Treasurer, EQ Advisors Trust (since March
1997). Director, Chairman, President and Chief Executive Officer, Equitable
JV Holdings (since August 1997). Director (since July 1997), and Senior Vice
President and Chief Financial Officer (since April 1998), ACMC and ECMC.
Previously held other officerships with Equitable Life and its affiliates.
- ------------------------------------------------------------------------------------------------------------------------
John A. Caroselli Executive Vice President (since September 1998), Equitable Life; Senior
Vice President, Equitable Life (February 1998 to September 1998); Senior
Vice President, Chase Manhattan Corp. (1996 to 1998); Vice President,
Chemical Bank (1991 to 1996).
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
A-6
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ---------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS (continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Judy A. Faucett Senior Vice President, Equitable Life, (since September 1996) and Actuary
(September 1996 to December 1998). Partner and Senior Actuarial Consultant,
Coopers & Lybrand L.L.P. (January 1989 to August 1996).
- ---------------------------------------------------------------------------------------------------------------------------
Alvin H. Fenichel Senior Vice President and Controller, Equitable Life and AXA Financial.
Senior Vice President and Controller, The Equitable of Colorado, Inc. (since
December 1999). Previously held other officerships with Equitable Life and
its affiliates.
- ---------------------------------------------------------------------------------------------------------------------------
Paul J. Flora Senior Vice President and Auditor, Equitable Life. Vice President and
Auditor, AXA Financial.
- ---------------------------------------------------------------------------------------------------------------------------
Robert E. Garber Executive Vice President and Chief Legal Officer (since November
1999), Equitable Life; prior thereto, Executive Vice President and General Counsel.
General Counsel of AXA Financial. Previously held other officerships with
Equitable Life and its affiliates.
- ---------------------------------------------------------------------------------------------------------------------------
Donald R. Kaplan Senior Vice President (since September 1999), Chief Compliance Officer
and Associate General Counsel, Equitable Life. Previously held other
officerships with Equitable Life.
- ---------------------------------------------------------------------------------------------------------------------------
Michael S. Martin Executive Vice President (since September 1998) and Chief Marketing Officer
(since December 1997), Equitable Life; prior thereto, Senior Vice President
and Chief Marketing Officer. Chairman and Chief Executive Officer, AXA
Advisors LLC (since September 1999). Vice President, EQ Advisors Trust (until
April 1998). Director, Equitable Underwriting and Sales Agency (Bahamas),
Ltd. and AXA Network, LLC; President (since February 2000); Executive Vice
President (since December 1998), Colorado; prior thereto, Director and Senior
Vice President (since December 1998). Previously held other officerships with
Equitable Life and its affiliates.
- ---------------------------------------------------------------------------------------------------------------------------
Richard J. Matteis Executive Vice President, Equitable Life (since May 1998); Executive Vice
President, Chase Manhattan Corporation (January 1983 to June 1997);
Director, EQF (now AXA Advisors)(October 1998 to May 1999).
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
A-7
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS (continued)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
- ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------
Peter D. Noris Executive Vice President and Chief Investment Officer, Equitable Life.
Executive Vice President (since May 1995) and Chief Investment Officer (since
July 1995), AXA Financial. Chairman, President and Trustee (since March
1997), EQ Advisors Trust. Executive Vice President and Chief Investment
Officer, Equitable of Colorado (since December 1999), Executive Vice
President, AXA Client Solutions (since September 1999). Director, Alliance,
and Equitable Real Estate (until June 1997). Executive Vice President, EQF
(now AXA Advisors)(November 1996 to September 1999). Director, EREIM Managers
Corp. (since July 1997), and EREIM LP Corp. (since October 1997).
- ------------------------------------------------------------------------------------------------------------------------
Brian S. O'Neil Executive Vice President, Equitable Life (since June 1998). Executive Vice
President, AXA Financial and AXA Client Solutions (since September 1999).
Director of Investment, AXA Investment Management (January 1998 to
June 1998); Chief Investment Officer, AXA Investment Management (July
1995 to January 1998). Trustee (since September 1999), EQ Advisors Trust.
- ------------------------------------------------------------------------------------------------------------------------
Anthony C. Pasquale Senior Vice President, Equitable Life and AXA Client Solutions (since
September 1999). Director, Chairman and Chief Operating Officer, Casualty,
(since September 1997). Director, Equitable Agri-Business, Inc. (until June
1997). Previously held other officerships with Equitable Life and its
affiliates.
- ------------------------------------------------------------------------------------------------------------------------
Pauline Sherman Senior Vice President (since February 1999); Vice President, Secretary and
Associate General Counsel, Equitable Life and AXA Financial, (since September
1995). Senior Vice President, Secretary and Associate General Counsel, AXA
Financial and AXA Client Solutions (since November 1999). Senior Vice
President and Secretary, Equitable of Colorado (since December 1999).
Previously held other officerships with Equitable Life.
- ------------------------------------------------------------------------------------------------------------------------
Richard V. Silver Senior Vice President (since February 1995) and General Counsel (since
November 1999) Equitable Life; prior thereto, Deputy General Counsel
(1996-1999). Senior Vice President and Associate General Counsel, AXA
Financial (since September 1996). Senior Vice President and General Counsel,
AXA Client Solutions (since November 1999). Vice President and General
Counsel, Equitable of Colorado (since December 1999). Director, AXA Advisors.
Senior Vice President and General Counsel, EIC (June 1997 to March 1998).
Previously held other officerships with Equitable Life and its affiliates.
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
A-8
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
NAME AND PRINCIPAL BUSINESS EXPERIENCE
BUSINESS ADDRESS WITHIN PAST FIVE YEARS
- ---------------------------------------------------------------------------------------------------------------------------
OTHER OFFICERS (continued)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Jose S. Suquet Senior Executive Vice President (since February 1998), Chief Distribution
Officer (since December 1997) and Chief Agency Officer (August 1994 to
December 1997), Equitable Life. Senior Executive Vice President and Chief
Distribution Officer, AXA Client Solutions (since September 1999). Senior
Executive Vice President, Equitable of Colorado (since December 1999).
Executive Vice President (since May 1996), AXA Financial. Chairman (since
December 1997), EDI. Prior thereto, Agency Manager.
- ------------------------------------------------------------------------------------------------------------------------
Gregory G. Wilcox Executive Vice President (since September 1998), Senior Vice President
(May 1992 to September 1998), Equitable Life. Executive Vice President
(since November 1999), AXA Financial; prior thereto, Senior Vice President.
- ------------------------------------------------------------------------------------------------------------------------
R. Lee Wilson Executive Vice President (since May 1998) and Deputy Chief Financial Officer
(September 1998 to July 1999), Equitable Life. Executive Vice President, AXA
Client Solutions (since September 1999). Prior thereto, Executive Vice
President, Chase Manhattan Bank.
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
APPENDIX B
B-1
- --------------------------------------------------------------------------------
OUR DATA ON MARKET PERFORMANCE
In reports or other communications to policyowners or in advertising material,
we may describe general economic and market conditions affecting our variable
investment options and the Portfolios, and may compare the performance or
ranking of those options and the Portfolios with:
o those of other insurance company separate accounts or mutual funds
included in the rankings prepared by Lipper Analytical Services, Inc.,
Morningstar, Inc., or similar investment services that monitor the
performance of insurance company separate accounts or mutual funds;
o other appropriate indices of investment securities and averages for peer
universes of mutual funds; or
o data developed by us derived from such indices or averages.
We also may furnish to present or prospective policyowners advertisements or
other communications that include evaluations of a variable investment option or
Portfolio by nationally recognized financial publications. Examples of such
publications are:
Barron's Money Management Letter
Morningstar's Variable Investment Dealers Digest
Annuities/Life National Underwriter
Business Week Pension & Investments
Forbes USA Today
Fortune Investor's Daily
Institutional Investor The New York Times
Money The Wall Street Journal
Kiplinger's Personal Finance The Los Angeles Times
Financial Planning The Chicago Tribune
Investment Advisor
Investment Management Weekly
Lipper Analytical Services, Inc. (Lipper) compiles performance data for peer
universes of portfolios with similar investment objectives in its Lipper
Variable Insurance Products Performance Analysis Service (Lipper Survey).
Morningstar, Inc. compiles similar data in the Morningstar Variable Annuity/Life
Report (Morningstar Report).
The Lipper Survey records performance data as reported to it by over 800 mutual
funds underlying variable annuity and life insurance products. It divides these
actively managed portfolios into 25 categories by portfolio objectives. The
Lipper Survey contains two different universes, which reflect different types of
fees in performance data:
o The "Separate Account" universe reports performance data net of
investment management fees, direct operating expenses and asset-based
charges applicable under variable insurance and annuity contracts; and
o The "Mutual Fund" universe reports performance net only of investment
management fees and direct operating expenses, and therefore reflects
only charges that relate to the underlying mutual fund.
The Morningstar Report consists of nearly 700 variable life and annuity
portfolios, all of which report their data net of investment management fees,
direct operating expenses and separate account level charges.
LONG-TERM MARKET TRENDS
The following chart presents historical return trends for various types of
securities. The
<PAGE>
B-2
- --------------------------------------------------------------------------------
information presented does not directly relate to the performance of our
variable investment options or the Trust. Nevertheless, it may help you gain a
perspective on the potential returns of different asset classes over different
periods of time. By combining this information with your knowledge of your own
financial needs, you may be able to better determine how you wish to allocate
your policy's premiums.
Historically, the investment performance of common stocks over the long term has
generally been superior to that of long- or short-term debt securities. However,
common stocks have also experienced dramatic changes in value over short periods
of time. One of our variable investment options that invests primarily in common
stocks may, therefore, be a desirable selection for owners who are willing to
accept such risks. If, on the other hand, you wish to limit your short-term
risk, you may find it preferable to allocate a smaller percentage of net
premiums to those options that invest primarily in common stock. All investments
in securities, whether equity or debt, involve varying degrees of risk. They
also offer varying degrees of potential reward. The chart below illustrates the
average annual compound rates of return over selected time periods between
December 31, 1926 and December 31, 1999 for the types of securities indicated in
the chart. These rates of return assume the reinvestment of dividends, capital
gains and interest. The Consumer Price Index is also shown as a measure of
inflation for comparison purposes. The investment return information presented
is an historical record of unmanaged categories of securities. In addition, the
rates of return shown do not reflect either (1) investment management fees and
expenses, or (2) costs and charges associated with ownership of a variable life
insurance policy.
The rates of return illustrated do not represent returns of our variable
investment options or the Portfolios and do not constitute a representation that
the performance of those options or the Portfolios will correspond to rates of
return such as those illustrated in the chart.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL RATES OF RETURN
- --------------------------------------------------------------------------------------------------------------------
FOR THE FOLLOWING LONG-TERM LONG-TERM INTERMEDIATE- U.S.
PERIODS ENDING COMMON GOVERNMENT CORPORATE TERM GOV'T TREASURY CONSUMER
DECEMBER 31, 1999 STOCKS BONDS BONDS BONDS BILLS PRICE INDEX
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
1 Year 21.04% (8.96)% (7.45)% (1.77)% 4.68% 2.81%
3 Years 27.56 6.04 5.01 5.47 4.93 2.04
5 years 28.55 9.24 8.35 6.95 5.12 2.39
10 years 18.20 8.79 8.36 7.20 4.92 2.94
20 years 17.87 10.69 10.66 9.53 6.89 4.01
30 years 13.72 8.94 9.17 8.68 6.69 5.12
40 years 12.22 7.01 7.24 7.35 5.98 4.46
50 years 13.61 5.56 5.97 6.12 5.15 4.01
60 years 12.86 5.17 5.42 5.39 4.34 4.24
Since 1926 11.35 5.12 5.61 5.22 3.79 3.07
Inflation Adjusted 8.03 1.98 2.46 2.08 0.69 0.00
Since 1926
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
B-3
- --------------------------------------------------------------------------------
Source: Ibbotson, Roger G. and Rex A. Sinquefield, STOCKS, BONDS, BILLS, AND
INFLATION (SBBI), 1982, updated in STOCKS, BONDS, BILLS, AND INFLATION 2000
YEARBOOK,(TM)Ibbotson Associates, Inc., Chicago. All rights reserved.
Common Stocks (S&P 500)--Standard and Poor's Composite Index, an unmanaged
weighted index of the stock performance of 500 industrial, transportation,
utility and financial companies.
Long-Term Government Bonds--Measured using a one-bond portfolio constructed
each year containing a bond with approximately a twenty-year maturity and a
reasonably current coupon.
Long-Term Corporate Bonds--For the period 1969-1999, represented by the
Salomon Brothers Long-Term, High-Grade Corporate Bond Index; for the period
1946-1968, the Salomon Brothers' Index was backdated using Salomon Brothers'
monthly yield data and a methodology similar to that used by Salomon for
1969-1999; for the period 1926-1945, the Standard and Poor's monthly High-Grade
Corporate Composite yield data were used, assuming a 4 percent coupon and a
twenty-year maturity.
Intermediate-Term Government Bonds--Measured by a one-bond portfolio
constructed each year containing a bond with approximately a five-year maturity.
U.S. Treasury Bills--Measured by rolling over each month a one-bill portfolio
containing, at the beginning of each month, the bill having the shortest
maturity not less than one month.
Consumer Price Index--Measured by the Consumer Price Index for all Urban
Consumers (CPI-U), not seasonally adjusted.
<PAGE>
APPENDIX C
C-1
- --------------------------------------------------------------------------------
DATES OF PREVIOUS PROSPECTUSES AND SUPPLEMENTS
<TABLE>
<CAPTION>
This supplement updates
the prospectuses dated which relate to our
- ------------------------ -------------------
<S> <C>
July 25, 1996; January 1, 1997; May 1, 1997-99; and
October 18, 1999............................................ IL Protector(R) Policies
December 19, 1994; May 1, 1995-99; September 15, 1995;
January 1, 1997; and October 18, 1999....................... 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; January 1, 1997; and
October 18, 1999............................................ 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................................................. Incentive Life Policies
</TABLE>
In addition, you may have also received other updating prospectus supplements.
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 Supplement dated May 1, 2000 consisting of 113 pages.
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:
Robin M. Wagner, Vice President and Counsel of Equitable Life (See
exhibit 2(a)(v))
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 Equico
Securities Inc. (now AXA Advisors, LLC), 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. (now AXA Advisors, LLC),
incorporated by reference to the Registration Statement of EQ Advisors
Trust on Form N-1A (File Nos. 333-17217 and 811-07953), filed August 28, 1997.
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, previously filed with this Registration Statement File No. 333-17671 on
August 27, 1999.
2(a)(v) Opinion and Consent of Robin M. Wagner, Vice President and Counsel of Equitable Life.
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.
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 26th day of April, 2000.
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
April 26, 2000
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 26th day of April, 2000.
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
April 26, 2000
II-5
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT INDEX
Exhibit No. TAG VALUE
- ----------- ---------
<S> <C> <C>
2(a)(v) Opinion and Consent of Counsel. EX-99.2av
6 Consent of Independent Public Accountants. EX-99.6
7(a) Powers-of-Attorney. EX-99.7a
</TABLE>
II-6
ROBIN M. WAGNER
Vice President and Counsel
(212) 314-3962
Fax: (212) 707-7785
[EQUITABLE -- MEMBER OF THE GLOBAL AXA GROUP LOGO]
LAW DEPARTMENT
April 27, 2000
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/ Robin M. Wagner
--------------------------
Robin M. Wagner
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 Prospectus Supplement constituting part of
this Post-Effective Amendment No. 5 to the Registration Statement No. 333-17671
on Form S-6 of (1) our report dated February 1, 2000 relating to the financial
statements of The Equitable Life Assurance Society of the United States Separate
Account FP for the year ended December 31, 1999, and (2) our report dated
February 1, 2000 relating to the consolidated financial statements of The
Equitable Life Assurance Society of the United States for the year ended
December 31, 1999, which reports appear in such Prospectus Supplement. We also
consent to the reference to us under the heading "Financial Statements" in the
Prospectus Supplement.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
New York, New York
April 26, 2000
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Francoise Colloc'h
----------------------------------
Francoise Colloc'h
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Norman C. Francis
----------------------------------
Norman C. Francis
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Michael Hegarty
----------------------------------
Michael Hegarty
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Edward Miller
----------------------------------
Edward Miller
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Denis Duverne
----------------------------------
Denis Duverne
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Donald J. Greene
----------------------------------
Donald J. Greene
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ George T. Lowy
----------------------------------
George T. Lowy
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Peter J. Tobin
----------------------------------
Peter J. Tobin
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Joseph L. Dionne
----------------------------------
Joseph L. Dionne
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ John T. Hartley
----------------------------------
John T. Hartley
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ John H.F. Haskell, Jr.
----------------------------------
John H.F. Haskell, Jr.
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
5th day of April, 2000.
/s/ Dave H. Williams
----------------------------------
Dave H. Williams
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Mary B. (Nina) Henderson
----------------------------------
Mary B. (Nina) Henderson
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
4th day of April, 2000.
/s/ George J. Sella, Jr.
----------------------------------
George J. Sella, Jr.
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ W. Edwin Jarmain
----------------------------------
W. Edwin Jarmain
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
13th day of April, 2000.
/s/ Alvin H. Fenichel
----------------------------------
Alvin H. Fenichel
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
13th day of April, 2000.
/s/ Jean-Rene Fourtou
----------------------------------
Jean-Rene Fourtou
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
23rd day of March, 2000.
/s/ Stanley B. Tulin
----------------------------------
Stanley B. Tulin
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
4th day of April, 2000.
/s/ Henri de Castries
----------------------------------
Henri de Castries
Rev. 2/2000
122055
<PAGE>
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 R. Lee Wilson, Anne M. Katcher, Stuart L. Faust, Nik Malvania, Pauline
Sherman, Naomi J. Weinstein, Mary A. Hyland, Maureen K. Wolfson, Mildred Oliver,
Robin Wagner 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
10th day of April, 2000.
/s/ Didier Pineau Valencienne
----------------------------------
Didier Pineau Valencienne
Rev. 2/2000
122055
