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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 18, 1999
---------------------------
Citigroup Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 1-9924 52-1568099
- --------------- ----------- -------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
153 East 53rd Street, New York, New York 10043
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(212) 559-1000
- --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
<PAGE>
Citigroup Inc.
Current Report on Form 8-K
Item 5. Other Events.
On October 18, 1999 Citigroup Inc. reported core income of $2.5 billion for the
third quarter ended September 30, 1999, up 236% from $729 million in the
comparable 1998 period. Year to date, core income of $7.3 billion, or $2.10 per
share, is up 49% over the first nine months of the prior year.
o Core income per diluted share was $0.70, up 250% from $0.20 in the
third quarter of 1998, reflecting revenue growth, expense control
and the absence of the severe market conditions experienced in the
prior year period.
o Net income was $2.4 billion for the quarter and $7.2 billion year to
date.
o Return on common equity was 21.9% in the quarter, surpassing the
Company's stated goal of a 20% return.
o Exceptional progress continues to be made in controlling expenses,
with the Company reporting an overall revenue to expense ratio of
2.01x in the quarter. Citigroup expects to meet its stated $2
billion annualized expense reduction goal for 1999, and to continue
to achieve further efficiencies in 2000.
o Business revenues rose 32% in the quarter, reflecting momentum
across the Company's consumer businesses and a recovery from the
severe market conditions that affected the Global Corporate and
Investment Bank in the 1998 period.
o Citigroup's total equity capital and trust securities are nearly $52
billion. The Tier I capital ratio remains strong, at 9.5%.
John S. Reed and Sanford I. Weill, Chairmen and Co-Chief Executive Officers of
Citigroup, said, among other things: "Clearly, the diversity of our businesses
and our concerted efforts to increase the income generated from recurring and
predictable sources, such as the consumer and fee-based businesses, are reducing
earnings volatility and positioning the Company for more consistent growth."
"The quarter's results were solid, particularly amidst a challenging trading
environment and significant weather-related catastrophes. We demonstrated
considerable strength relative to the companies that compete with our various
business units and certainly relative to the quarter last year, when economic
turmoil exerted such a negative impact on some of our operations."
"Looking ahead," said Reed and Weill, "we are well-positioned to realize the
benefits from economic recoveries underway in Japan, Latin America and Asia,
since 30% of our earnings are currently generated internationally and our
presence in these markets continues to expand. In addition, we are creating yet
another platform for earnings growth as we launch various internet initiatives
to augment the e-commerce services we already provide to more than 2 million
customers worldwide. The potential for this channel is evidenced by the fact
that we added nearly 400,000 on-line customers in the third quarter alone."
<PAGE>
GLOBAL CONSUMER
3rd Quarter Core Income: $1.1 Billion, Up 38% from $806 Million in 1998 Period
The Global Consumer business continued to record very solid growth on the
strength of a 12% increase in revenues, with expense growth contained to 4.5%,
and stable-to-improving credit trends in nearly all markets. During the quarter,
e-Citi continued to develop the internet channel, launching several initiatives:
Citi f/i, an internet-based banking system, e-Citi on campus, and bizzed.com, a
portal targeted to small businesses. In addition, cross-marketing pilot programs
are gaining momentum throughout the consumer business. For example, Salomon
Smith Barney Financial Consultants have generated $420 million in Citibank
mortgage products to date, and application volume is approaching a $2 billion
annualized run rate. A full range of personal lines property casualty products
are now offered to credit card customers in 29 states through a pilot program.
o Banking/Lending income increased 65% to $604 million. Citibanking
North America's income benefited from $67 million in fixed expense
reductions. CitiFinancial's 118% increase in income reflected
receivables growth and improved credit experience. Income from Cards
rose 33%, despite competitive pricing pressures, reflecting growth
in U.S. bankcards of 11% in receivables and 8% in sales volume, flat
operating expenses, and continued improvements in credit costs.
Citigroup's U.S. cards business continues to be the market leader in
sales volumes and benefits from one of the most favorable operating
expense ratios in the industry.
o International income rose 31% to $270 million on strong revenue
growth in all regions. In Asia, improved spreads and volume growth,
particularly in Japan, contributed to 26% revenue growth. In Latin
America, contributions from acquisitions and improvements in
efficiency offset credit deterioration in certain countries.
Accounts in the International division grew 11% and deposits
increased 13%.
o Insurance income increased 5% from the 1998 third quarter to $305
million, but declined 16% from the second quarter of 1999, as strong
performance from Travelers Life and Annuity and Primerica were
offset by lower results from Travelers Property Casualty Personal
Lines. TAP's results in the quarter were affected by a $33 million
charge related to the curtailing of sales of the SECURE product
line, sold through Primerica, as well as $48 million in catastrophe
losses primarily related to Hurricane Floyd.
GLOBAL CORPORATE AND INVESTMENT BANK
3rd Quarter Core Income: $1.1 Billion Versus $221 Million loss in 1998 Period
The Global Corporate and Investment Bank experienced a rebound for the quarter
from the loss in the 1998 period that resulted from severe global economic
turmoil. In comparison with the second quarter of 1999, a healthy customer
business at the Global Corporate and Investment Bank and continued stability in
Salomon Smith Barney's Private Client business were offset by the impact of a
relatively weaker trading environment. SSB continues to scale back its exposure
to the Global Arbitrage business, with the balance sheet commitment to this
business reduced by over 90% from its peak, to $7 billion of assets at the end
of the quarter. The remaining Global Arbitrage operations are being folded into
the core fixed income customer business.
The unit achieved several notable distinctions in the quarter. Citibank was
named the "Best Global Transaction Services Bank" and "Best Emerging Markets
Bank" by Euromoney magazine, and Salomon Smith Barney advanced to second place
from fourth last year in Institutional Investor magazine's "All America Research
Team" survey. SSB's franchise continues to show positive momentum. In the
rankings, SSB maintained the position as the world's second largest underwriter,
with over a 10% market share. The Nikko Salomon Smith Barney joint venture,
which began operations last March, has attained a number one or two ranking in
Japan in equity underwriting, debt underwriting and mergers and acquisitions. In
addition, Citibank's long-standing presence in Asia Pacific has been
instrumental in enabling SSB to become the number one equity underwriter in the
region. SSB's rankings also improved from number eight to number two in
international bond underwriting.
Following the close of the quarter, it was announced that SSB played a leading
role in the proposed $115 billion acquisition of Sprint Corp. by MCI WorldCom,
which stands as the largest announced acquisition to date.
o Salomon Smith Barney reported core income of $432 million versus a
loss in the prior year quarter.
<PAGE>
Comparisons with the second quarter of 1999 reflect a decline in
revenue from principal transactions as a result of weaker securities
markets, partially offset by record underwriting fees and continued
improvement in asset management activities retained in this segment.
Annualized gross production per financial consultant remained strong
at $465,000, demonstrating the stability of the Private Client
business.
o The Global Corporate Bank reported $461 million in income versus a
loss of $2 million in the comparable 1998 period. Income increased
2% from the 1999 second quarter, as lower securities transactions
were offset by expense controls and a $73 million lower provision
for credit losses resulting from an improved credit outlook in the
Emerging Markets.
o Travelers Property Casualty Commercial Lines' income increased 44%
to $255 million, reflecting a $58 million benefit from a legislative
change in state workers compensation assessments, as well as
favorable prior year development. Net written premiums declined from
the prior year period as the company continues to focus on
maintaining the profitability of its business.
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
3rd Quarter Core Income: $155 Million, Up 17% from $133 Million in 1998 Period
Global Investment Management & Private Banking, created to meet the investment
and wealth management needs of institutional and individual clients, reported
strong growth in core income from Asset Management and improving momentum at the
Private Bank.
o Asset Management income rose 22% to $82 million as a 20% increase in
assets under management and a 15% rise in revenues outpaced higher
costs associated with the business's continued investments in
research, quantitative and technology expertise.
Aided by cross-selling efforts, institutional client assets rose 24%
to $149 billion. The Group's products represented 40% of SSB's
retail channel mutual fund sales and 60% of Primerica's U.S. mutual
and money fund sales, and sales of Private Client separately managed
accounts were up more than 100% from last year. In addition, the
Group sold $626 million in mutual and money funds through the
Citibank consumer bank in Europe, and $561 million in Japan through
the Citibank consumer bank and non-proprietary channels.
o Improving revenues in Private Banking, led by the U.S., resulted in
an 11% increase in income to $73 million. Client account balances
under management rose 22% from the year ago period to $128 billion.
CORPORATE/OTHER AND INVESTMENT ACTIVITIES
The loss from Corporate/Other of $162 million for the quarter was
82% greater than the prior year period as a result of higher treasury costs at
the parent company and certain Year 2000 remediation costs. Income from
Investment Activities rose 94% to $194 million, reflecting gains in the
Company's venture capital business.
# # #
<PAGE>
Forward-Looking Statements
Certain of the statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. The Company's actual results may differ materially from
those included in the forward-looking statements. Forward-looking statements are
typically identified by words or phrases such as "believe," "expect,"
"anticipate," "intend," "estimate," "target," "may increase," "may fluctuate,"
"may result in," "are projected," and similar expressions. These forward-looking
statements involve risks and uncertainties including, but not limited to, the
following: general economic conditions, including the performance of financial
markets and interest rates; the earnings impact of recent acquisitions; and the
timely implementation of restructuring programs and the ability of the Company
generally to achieve anticipated levels of operational efficiencies and expense
savings related to recent transactions or otherwise. Readers also are directed
to other risks and uncertainties discussed in documents filed by the Company
with the Securities and Exchange Commission.
# # #
A financial summary follows. Additional financial, statistical and
business-related information, as well as business and segment trends, is
included in the Financial Supplement.
<PAGE>
<TABLE>
<CAPTION>
Citigroup Segment Income Third Quarter % Nine Months %
(In Millions of Dollars) 1999 1998 Change 1999 1998 Change
<S> <C> <C> <C> <C> <C> <C>
Global Consumer
Citibanking North America $ 111 $ 25 344 $ 292 $ 89 228
Mortgage Banking 61 57 7 174 157 11
Cards 297 223 33 847 515 64
CitiFinancial 135 62 118 284 159 79
Banking/Lending 604 367 65 1,597 920 74
Travelers Life & Annuity 168 123 37 488 369 32
Primerica Financial Services 114 99 15 337 297 13
Personal Lines (A) 23 68 (66) 185 231 (20)
Insurance 305 290 5 1,010 897 13
Total North America 909 657 38 2,607 1,817 43
Europe, Middle East, & Africa 98 64 53 237 166 43
Asia Pacific 117 100 17 325 267 22
Latin America 55 42 31 145 122 19
Total International 270 206 31 707 555 27
e-Citi (51) (33) (55) (130) (99) (31)
Other (13) (24) 46 (62) (34) (82)
Total Global Consumer 1,115 806 38 3,122 2,239 39
Global Corporate and Investment Bank
Salomon Smith Barney 432 (396) 209 1,690 395 328
Emerging Markets 308 7 NM 925 511 81
Global Relationship Banking 153 (9) NM 510 388 31
Total Global Corporate Bank 461 (2) NM 1,435 899 60
Commercial Lines (A) 255 177 44 645 522 24
Total Global Corporate and Investment Bank 1,148 (221) 619 3,770 1,816 108
Global Investment Management and Private Banking
SSB Citi Asset Management Group 82 67 22 246 204 21
Global Private Bank 73 66 11 203 189 7
Total Global Investment Management and Private Banking 155 133 17 449 393 14
Corporate/Other (162) (89) (82) (446) (327) (36)
Business Income 2,256 629 259 6,895 4,121 67
Investment Activities 194 100 94 447 818 (45)
Core Income 2,450 729 236 7,342 4,939 49
Restructuring-Related Items -- After Tax (B) (15) -- NM 30 191 (84)
Cumulative Effect of Accounting Changes (C) -- -- -- (127) -- NM
Net Income $ 2,435 $ 729 234 $ 7,245 $ 5,130 41
</TABLE>
<PAGE>
(A) In the aggregate, these represent Citigroup's share of Travelers Property
Casualty Corp. results.
(B) The restructuring-related items in the third quarter of 1999 include $31
million of severance, $25 million of accelerated depreciation, and a $41
million credit for the reversal of prior charges; and in the 1999 nine
month period includes $31 million of severance, $105 million of
accelerated depreciation, and a $166 million credit for the reversal of
prior charges. In the 1998 nine month period, includes a $191 million
credit for the reversal of prior charges.
(C) Refers to adoption of Statement of Position "SOP" 97-3, "Accounting by
Insurance and Other Enterprises for Insurance-Related Assessments" of
($135) million; adoption of SOP 98-7, "Deposit Accounting: Accounting for
Insurance and Reinsurance Contracts That Do Not Transfer Insurance Risk"
of $23 million; and the adoption of SOP 98-5, "Reporting on the Costs of
Start-Up Activities" of ($15) million.
NM Not meaningful.
# # #
<PAGE>
citigroup[LOGO]
CITIGROUP - QUARTERLY FINANCIAL DATA SUPPLEMENT
Citigroup, the most global financial services company,
provides some 100 million consumers, corporations, governments and institutions
in 100 countries with a broad range of financial products and services.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per share amounts) 1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Core Income $ 2,161 $ 2,049 $ 729 $ 1,403 $ 2,415 $ 2,477 $ 2,450
Restructuring / Merger Items -- 191 -- (726) 74 (29) (15)
Cumulative Effect of Accounting Changes -- -- -- -- (127) -- --
--------- --------- --------- --------- --------- --------- ---------
Net Income $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362 $ 2,448 $ 2,435
========= ========= ========= ========= ========= ========= =========
Basic Earnings Per Share:
Core Income $ 0.62 $ 0.59 $ 0.20 $ 0.41 $ 0.71 $ 0.73 $ 0.72
========= ========= ========= ========= ========= ========= =========
Net Income $ 0.62 $ 0.65 $ 0.20 $ 0.19 $ 0.70 $ 0.72 $ 0.72
========= ========= ========= ========= ========= ========= =========
Weighted average common shares
applicable to Basic EPS 3,365.0 3,366.0 3,372.5 3,350.1 3,340.2 3,332.7 3,332.0
========= ========= ========= ========= ========= ========= =========
Preferred Dividends - Basic $ 63 $ 58 $ 50 $ 45 $ 40 $ 38 $ 38
========= ========= ========= ========= ========= ========= =========
Diluted Earnings Per Share:
Core Income $ 0.60 $ 0.57 $ 0.20 $ 0.40 $ 0.69 $ 0.71 $ 0.70
========= ========= ========= ========= ========= ========= =========
Net Income $ 0.60 $ 0.63 $ 0.20 $ 0.19 $ 0.68 $ 0.70 $ 0.70
========= ========= ========= ========= ========= ========= =========
Adjusted weighted average common shares
applicable to Diluted EPS 3,492.9 3,496.4 3,481.1 3,435.5 3,440.0 3,450.3 3,440.2
========= ========= ========= ========= ========= ========= =========
Preferred Dividends - Diluted $ 57 $ 52 $ 44 $ 39 $ 37 $ 35 $ 34
========= ========= ========= ========= ========= ========= =========
Common Shares Outstanding, at period end 3,421.2 3,420.8 3,413.3 3,387.0 3,380.3 3,376.7 3,366.8
========= ========= ========= ========= ========= ========= =========
Tier 1 Capital Ratio 8.38% 8.46% 8.69% 8.68% 8.86% 9.37% 9.50%*
========= ========= ========= ========= ========= ========= =========
Total Capital Ratio 10.97% 11.00% 11.28% 11.43% 11.56% 12.12% 12.30%*
========= ========= ========= ========= ========= ========= =========
Leverage Ratio 5.67% 5.65% 5.73% 6.03% 6.24% 6.38% 6.60%*
========= ========= ========= ========= ========= ========= =========
Total Assets, at period end (in billions) $ 738.8 $ 750.8 $ 701.3 $ 668.6 $ 690.6 $ 689.6 $ 688.5*
========= ========= ========= ========= ========= ========= =========
Stockholders' Equity, at period end
(in billions) $ 42.8 $ 43.9 $ 43.1 $ 42.7 $ 44.0 $ 45.2 $ 46.7*
========= ========= ========= ========= ========= ========= =========
Stockholders' Equity and Trust Securities,
at period end (in billions) $ 46.4 $ 47.7 $ 46.9 $ 47.0 $ 48.9 $ 50.2 $ 51.6*
========= ========= ========= ========= ========= ========= =========
Book Value Per Share, at period end $ 11.63 $ 12.04 $ 11.95 $ 11.91 $ 12.38 $ 12.77 $ 13.26*
========= ========= ========= ========= ========= ========= =========
Return on Common Equity (Net Income) 22.0% 21.8% 6.6% 6.2% 23.0% 22.8% 21.8%*
========= ========= ========= ========= ========= ========= =========
Return on Common Equity (Core Income) 21.4% 19.4% 6.5% 13.0% 23.6% 23.1% 21.9%*
========= ========= ========= ========= ========= ========= =========
Return on Common Equity (Core Income),
excluding FAS 115 22.4% 20.2% 6.7% 13.4% 24.3% 24.1% 22.6%*
========= ========= ========= ========= ========= ========= =========
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
(in millions, except per share amounts) 3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- --------- --------- ---------------------
<S> <C> <C> <C> <C>
Core Income 236% $ 4,939 $ 7,342 49%
Restructuring / Merger Items 191 30
Cumulative Effect of Accounting Changes -- (127)
--------- ---------
Net Income 234% $ 5,130 $ 7,245 41%
========= =========
Basic Earnings Per Share:
Core Income 260% $ 1.42 $ 2.17 53%
========= =========
Net Income 260% $ 1.47 $ 2.14 46%
========= =========
Weighted average common shares
applicable to Basic EPS 3,368.9 3,335.0
========= =========
Preferred Dividends - Basic $ 172 $ 116
========= =========
Diluted Earnings Per Share:
Core Income 250% $ 1.37 $ 2.10 53%
========= =========
Net Income 250% $ 1.43 $ 2.07 45%
========= =========
Adjusted weighted average common shares
applicable to Diluted EPS 3,486.8 3,443.5
========= =========
Preferred Dividends - Diluted $ 153 $ 106
========= =========
Common Shares Outstanding, at period end 3,413.3 3,366.8
========= =========
Tier 1 Capital Ratio 8.69% 9.50%*
========= =========
Total Capital Ratio 11.28% 12.30%*
========= =========
Leverage Ratio 5.73% 6.60%*
========= =========
Total Assets, at period end (in billions) $ 701.3 $ 688.5*
========= =========
Stockholders' Equity, at period end
(in billions) $ 43.1 $ 46.7*
========= =========
Stockholders' Equity and Trust Securities,
at period end (in billions) $ 46.9 $ 51.6*
========= =========
Book Value Per Share, at period end $ 11.95 $ 13.26*
========= =========
Return on Common Equity (Net Income) 16.6% 22.5%*
========= =========
Return on Common Equity (Core Income) 16.0% 22.8%*
========= =========
Return on Common Equity (Core Income),
excluding FAS 115 16.6% 23.6%*
========= =========
* Preliminary
- -----------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
citigroup[LOGO]
CITIGROUP -- SEGMENT NET REVENUES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
-------- -------- -------- ------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Global Consumer:
Banking / Lending
Citibanking North America $ 478 $ 521 $ 487 $ 488 $ 507 $ 517 $ 528
Mortgage Banking 154 152 160 153 169 183 199
Cards 1,402 1,810 1,915 2,025 1,975 1,989 1,984
CitiFinancial 294 310 326 345 361 396 421
-------- -------- -------- ------- -------- ------- --------
Total Banking / Lending 2,328 2,793 2,888 3,011 3,012 3,085 3,132
Insurance
Travelers Life and Annuity 698 765 716 833 771 867 869
Primerica Financial Services 400 420 413 421 432 443 444
Personal Lines 868 899 924 975 983 1,005 1,018
-------- -------- -------- ------- -------- ------- --------
Total Insurance 1,966 2,084 2,053 2,229 2,186 2,315 2,331
International
Europe, Middle East and Africa 499 525 543 576 563 565 608
Asia Pacific 422 457 459 511 518 543 580
Latin America 354 369 431 444 466 499 504
-------- -------- -------- ------- -------- ------- --------
Total International 1,275 1,351 1,433 1,531 1,547 1,607 1,692
e-Citi 30 34 38 47 54 55 57
Other 26 22 24 28 30 24 14
-------- -------- -------- ------- -------- ------- --------
Total Global Consumer 5,625 6,284 6,436 6,846 6,829 7,086 7,226
-------- -------- -------- ------- -------- ------- --------
Global Corporate and Investment Bank:
Salomon Smith Barney 2,918 2,523 685 2,207 3,341 3,269 2,791
Emerging Markets 959 974 723 976 1,139 1,092 1,051
Global Relationship Banking 989 1,151 827 947 1,090 1,008 985
Commercial Lines 1,619 1,584 1,604 1,674 1,534 1,558 1,578
-------- -------- -------- ------- -------- ------- --------
Total Global Corporate and Investment Bank 6,485 6,232 3,839 5,804 7,104 6,927 6,405
-------- -------- -------- ------- -------- ------- --------
Global Investment Management & Private Banking:
SSB Citi Asset Management Group 305 310 318 326 354 357 367
Global Private Bank 262 283 284 293 272 298 302
-------- -------- -------- ------- -------- ------- --------
Total Global Investment Management
& Private Banking 567 593 602 619 626 655 669
-------- -------- -------- ------- -------- ------- --------
Corporate / Other (38) (54) (48) 8 (54) 12 (38)
-------- -------- -------- ------- -------- ------- --------
===================================================================================================================================
Total Business Revenues 12,639 13,055 10,829 13,277 14,505 14,680 14,262
===================================================================================================================================
Investment Activities 619 491 168 45 153 270 311
===================================================================================================================================
Total Adjusted Net Revenues $ 13,258 $ 13,546 $ 10,997 $13,322 $ 14,658 $14,950 $ 14,573
===================================================================================================================================
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Global Consumer:
Banking / Lending
Citibanking North America 8% $ 1,486 $ 1,552 4%
Mortgage Banking 24% 466 551 18%
Cards 4% 5,127 5,948 16%
CitiFinancial 29% 930 1,178 27%
-------- --------
Total Banking / Lending 8% 8,009 9,229 15%
Insurance
Travelers Life and Annuity 21% 2,179 2,507 15%
Primerica Financial Services 8% 1,233 1,319 7%
Personal Lines 10% 2,691 3,006 12%
-------- --------
Total Insurance 14% 6,103 6,832 12%
International
Europe, Middle East and Africa 12% 1,567 1,736 11%
Asia Pacific 26% 1,338 1,641 23%
Latin America 17% 1,154 1,469 27%
-------- --------
Total International 18% 4,059 4,846 19%
e-Citi 50% 102 166 63%
Other (42%) 72 68 (6%)
-------- --------
Total Global Consumer 12% 18,345 21,141 15%
-------- --------
Global Corporate and Investment Bank:
Salomon Smith Barney 307% 6,126 9,401 53%
Emerging Markets 45% 2,656 3,282 24%
Global Relationship Banking 19% 2,967 3,083 4%
Commercial Lines (2%) 4,807 4,670 (3%)
-------- --------
Total Global Corporate and Investment Bank 67% 16,556 20,436 23%
-------- --------
Global Investment Management & Private Banking:
SSB Citi Asset Management Group 15% 933 1,078 16%
Global Private Bank 6% 829 872 5%
-------- --------
Total Global Investment Management & Private Banking 11% 1,762 1,950 11%
-------- --------
Corporate / Other 21% (140) (80) 43%
-------- --------
========================================================== =====================
Total Business Revenues 32% 36,523 43,447 19%
========================================================== =====================
Investment Activities 85% 1,278 734 (43%)
========================================================== =====================
Total Adjusted Net Revenues 33% $ 37,801 $ 44,181 17%
========================================================== =====================
</TABLE>
Page 2
<PAGE>
citigroup[LOGO]
CITIGROUP -- SEGMENT CORE INCOME
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Global Consumer:
Banking / Lending
Citibanking North America $ 25 $ 39 $ 25 $ 18 $ 75 $ 106 $ 111
Mortgage Banking 50 50 57 55 60 53 61
Cards 156 136 223 293 275 275 297
CitiFinancial 48 49 62 63 71 78 135
------- ------- ------- ------- ------- ------- -------
Total Banking / Lending 279 274 367 429 481 512 604
Insurance
Travelers Life and Annuity 119 127 123 124 147 173 168
Primerica Financial Services 95 103 99 103 110 113 114
Personal Lines 82 81 68 88 83 79 23
------- ------- ------- ------- ------- ------- -------
Total Insurance 296 311 290 315 340 365 305
International
Europe, Middle East and Africa 49 53 64 59 67 72 98
Asia Pacific 82 85 100 116 101 107 117
Latin America 43 37 42 38 47 43 55
------- ------- ------- ------- ------- ------- -------
Total International 174 175 206 213 215 222 270
e-Citi (30) (36) (33) (42) (36) (43) (51)
Other -- (10) (24) (43) (19) (30) (13)
------- ------- ------- ------- ------- ------- -------
Total Global Consumer 719 714 806 872 981 1,026 1,115
------- ------- ------- ------- ------- ------- -------
Global Corporate and Investment Bank:
Salomon Smith Barney 443 348 (396) 13 648 610 432
Emerging Markets 262 242 7 237 323 294 308
Global Relationship Banking 159 238 (9) 102 198 159 153
Commercial Lines 171 174 177 201 189 201 255
------- ------- ------- ------- ------- ------- -------
Total Global Corporate and Investment Bank 1,035 1,002 (221) 553 1,358 1,264 1,148
------- ------- ------- ------- ------- ------- -------
Global Investment Management
& Private Banking:
SSB Citi Asset Management Group 69 68 67 52 80 84 82
Global Private Bank 58 65 66 62 57 73 73
------- ------- ------- ------- ------- ------- -------
Total Global Investment Management
& Private Banking 127 133 133 114 137 157 155
------- ------- ------- ------- ------- ------- -------
Corporate / Other (122) (116) (89) (151) (151) (133) (162)
------- ------- ------- ------- ------- ------- -------
=============================================================================================================================
Total Business Income 1,759 1,733 629 1,388 2,325 2,314 2,256
=============================================================================================================================
Investment Activities 402 316 100 15 90 163 194
=============================================================================================================================
Total Core Income $ 2,161 $ 2,049 $ 729 $ 1,403 $ 2,415 $ 2,477 2,450
=============================================================================================================================
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ------- ------ ---------------------
<S> <C> <C> <C> <C>
Global Consumer:
Banking / Lending
Citibanking North America 344% $ 89 $ 292 228%
Mortgage Banking 7% 157 174 11%
Cards 33% 515 847 64%
CitiFinancial 118% 159 284 79%
------- -------
Total Banking / Lending 65% 920 1,597 74%
Insurance
Travelers Life and Annuity 37% 369 488 32%
Primerica Financial Services 15% 297 337 13%
Personal Lines (66%) 231 185 (20%)
------- -------
Total Insurance 5% 897 1,010 13%
International
Europe, Middle East and Africa 53% 166 237 43%
Asia Pacific 17% 267 325 22%
Latin America 31% 122 145 19%
------- -------
Total International 31% 555 707 27%
e-Citi (55%) (99) (130) (31%)
Other 46% (34) (62) (82%)
------- -------
Total Global Consumer 38% 2,239 3,122 39%
------- -------
Global Corporate and Investment Bank:
Salomon Smith Barney 209% 395 1,690 328%
Emerging Markets NM 511 925 81%
Global Relationship Banking NM 388 510 31%
Commercial Lines 44% 522 645 24%
------- -------
Total Global Corporate and Investment Bank 619% 1,816 3,770 108%
------- -------
Global Investment Management
& Private Banking:
SSB Citi Asset Management Group 22% 204 246 21%
Global Private Bank 11% 189 203 7%
------- -------
Total Global Investment Management
& Private Banking 17% 393 449 14%
------- -------
Corporate / Other (82%) (327) (446) (36%)
------- -------
================================================ ===================
Total Business Income 259% 4,121 6,895 67%
================================================ ===================
Investment Activities 94% 818 447 (45%)
================================================ ===================
Total Core Income 236% $ 4,939 $ 7,342 49%
================================================ ===================
</TABLE>
NM - Not Meaningful
Page 3
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Banking/Lending
CITIBANKING NORTH AMERICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 478 $ 521 $ 487 $ 488 $ 507 $ 517 $ 528
Adjusted Operating Expenses 407 427 410 428 353 320 328
Provision for Loan Losses 25 25 26 24 23 15 11
------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes 46 69 51 36 131 182 189
Income Taxes 21 30 26 18 56 76 78
------ ------ ------ ------ ------ ------ ------
Core Income $ 25 $ 39 $ 25 $ 18 $ 75 $ 106 $ 111
====== ====== ====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 9
====== ====== ====== ====== ====== ====== ======
Return on Assets 1.01% 1.56% 0.99% 0.71% 3.04% 4.25% 4.89%
====== ====== ====== ====== ====== ====== ======
Average Loans (in billions of dollars) $ 8.0 $ 8.0 $ 7.9 $ 7.8 $ 7.7 $ 7.7 $ 7.5
Average Customer Deposits (in billions of dollars) $ 38.9 $ 39.4 $ 39.7 $ 40.4 $ 41.6 $ 42.2 $ 42.2
Accounts (in millions) 5.6 5.7 5.8 5.8 5.9 6.0 6.2
Net Credit Loss Ratio 1.33% 1.32% 1.35% 1.38% 1.27% 1.20% 1.03%
Loans 90+Days Past Due:
In millions of dollars $ 118 $ 111 $ 109 $ 93 $ 103 $ 92 $ 64
% 1.45% 1.36% 1.25% 1.20% 1.34% 1.20% 0.87%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
---------------- ------ ------ ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 8% $1,486 $1,552 4%
Adjusted Operating Expenses (20%) 1,244 1,001 (20%)
Provision for Loan Losses (58%) 76 49 (36%)
------ ------
Core Income Before Taxes 271% 166 502 202%
Income Taxes 200% 77 210 173%
------ ------
Core Income 344% $ 89 $ 292 228%
====== ======
Average Assets (in billions of dollars) (10%) $ 10 $ 10 --
====== ======
Return on Assets 1.19% 3.90%
====== ======
Average Loans (in billions of dollars) (5%) $ 8.0 $ 7.6 (5%)
Average Customer Deposits (in billions of dollars) 6% $ 39.3 $ 42.0 7%
Accounts (in millions) 7% 5.8 6.2 7%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars (41%)
%
</TABLE>
Page 4
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Banking/Lending
MORTGAGE BANKING
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
----- ----- ----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 154 $ 152 $ 160 $ 153 $ 169 $ 183 $ 199
Adjusted Operating Expenses 59 61 62 60 59 82 90
Provision for Loan Losses 13 9 3 (5) 3 5 2
----- ----- ----- ----- ----- ----- -----
Core Income Before Taxes and Minority Interest 82 82 95 98 107 96 107
Income Taxes 32 32 38 38 42 38 42
Minority Interest, Net of Tax -- -- -- 5 5 5 4
----- ----- ----- ----- ----- ----- -----
Core Income $ 50 $ 50 $ 57 $ 55 $ 60 $ 53 $ 61
===== ===== ===== ===== ===== ===== =====
Average Assets (in billions of dollars) $ 25 $ 25 $ 25 $ 26 $ 28 $ 29 $ 29
===== ===== ===== ===== ===== ===== =====
Return on Assets 0.81% 0.80% 0.90% 0.84% 0.87% 0.73% 0.83%
===== ===== ===== ===== ===== ===== =====
Accounts (in millions) (1) 2.5 2.5 2.7 2.8 2.8 3.0 3.2
Average Loans (in billions of dollars) (1), (2) $23.5 $23.7 $24.0 $24.6 $26.6 $27.3 $27.1
Mortgage Originations (in billions of dollars) $ 2.9 $ 4.1 $ 4.3 $ 5.1 $ 3.8 $ 4.9 $ 4.7
Net Credit Loss Ratio 0.42% 0.31% 0.29% 0.27% 0.20% 0.17% 0.12%
Loans 90+ Days Past Due: (1) $ 688 $ 634 $ 623 $ 625 $ 610 $ 575 $ 629
In millions of dollars 2.91% 2.67% 2.69% 2.44% 2.29% 2.09% 2.28%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ----- ---- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 24% $ 466 $ 551 18%
Adjusted Operating Expenses 45% 182 231 27%
Provision for Loan Losses (33%) 25 10 (60%)
----- ----
Core Income Before Taxes and Minority Interest 13% 259 310 20%
Income Taxes 11% 102 122 20%
Minority Interest, Net of Tax NM -- 14 NM
===== =====
Core Income 7% $ 157 $ 174 11%
===== =====
Average Assets (in billions of dollars) 16% $ 25 $ 29 16%
===== =====
Return on Assets 0.84% 0.80%
===== =====
Accounts (in millions) (1) 19% 2.7 3.2 19%
Average Loans (in billions of dollars) (1), (2) 13% $23.7 $27.0 14%
Mortgage Originations (in billions of dollars) 9% $11.3 $13.4 19%
Net Credit Loss Ratio
Loans 90+ Days Past Due: (1) 1%
In millions of dollars
</TABLE>
(1) Includes Student Loans.
(2) Includes loans held for sale.
NM Not meaningful
Page 5
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Banking/Lending
CARDS (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense $1,402 $1,810 $1,915 $2,025 $1,975 $1,989 $1,984
Adjusted Operating Expenses 430 703 714 748 722 724 707
Adjusted Provision for Loan Losses (2) 722 888 846 808 818 832 804
------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes 250 219 355 469 435 433 473
Income Taxes 94 83 132 176 160 158 176
------ ------ ------ ------ ------ ------ ------
Core Income $ 156 $ 136 $ 223 $ 293 $ 275 $ 275 $ 297
====== ====== ====== ====== ====== ====== ======
Managed Average Assets (in billions of dollars) $ 50 $ 66 $ 68 $ 71 $ 73 $ 75 $ 76
====== ====== ====== ====== ====== ====== ======
Return on Managed Assets 1.27% 0.83% 1.30% 1.64% 1.53% 1.47% 1.55%
====== ====== ====== ====== ====== ====== ======
U.S. BANKCARDS DATA :
(in billions of dollars)
End of Period Managed Receivables $ 46.8 $ 62.0 $ 63.8 $ 69.6 $ 69.4 $ 70.3 $ 70.7
Total Accounts (in millions) 25.6 39.4 39.7 40.5 41.4 41.1 40.6
Total Sales $ 25.3 $ 35.4 $ 37.7 $ 42.2 $ 36.8 $ 40.8 $ 40.9
End of Period Loans:
On Balance Sheet $ 16.5 $ 17.3 $ 19.8 $ 21.9 $ 19.4 $ 20.0 $ 19.1
Securitized 27.8 41.5 40.6 44.3 46.7 47.4 48.5
Held for Sale 2.0 2.5 2.6 2.9 2.9 2.8 2.5
------ ------ ------ ------ ------ ------ ------
Total $ 46.3 $ 61.3 $ 63.0 $ 69.1 $ 69.0 $ 70.2 $ 70.1
====== ====== ====== ====== ====== ====== ======
Average Loans:
On Balance Sheet $ 17.3 $ 21.0 $ 19.3 $ 20.9 $ 20.2 $ 20.0 $ 19.3
Securitized 27.6 37.0 40.2 41.5 44.3 46.7 47.9
Held for Sale 2.0 2.5 2.5 2.7 2.9 2.8 2.5
------ ------ ------ ------ ------ ------ ------
Total $ 46.9 $ 60.5 $ 62.0 $ 65.1 $ 67.4 $ 69.5 $ 69.7
====== ====== ====== ====== ====== ====== ======
Write-offs (in millions of dollars):
On Balance Sheet $ 214 $ 271 $ 229 $ 222 $ 196 $ 233 $ 221
Securitized 431 544 542 536 556 541 525
Held for Sale 31 37 34 32 32 29 27
------ ------ ------ ------ ------ ------ ------
Total $ 676 $ 852 $ 805 $ 790 $ 784 $ 803 $ 773
====== ====== ====== ====== ====== ====== ======
Coincident Net Credit Loss Ratio 5.85% 5.65% 5.15% 4.82% 4.72% 4.63% 4.40%
12 Month Lagged Net Credit Loss Ratio (3) 5.98% 5.92% 5.43% 5.30% 5.34% 5.12% 4.77%
Loans 90+ Days Past Due:
In millions of dollars $ 855 $ 956 $ 939 $1,001 $1,007 $ 954 $ 995
% 1.85% 1.56% 1.49% 1.45% 1.46% 1.36% 1.42%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ------ ------ ---------------------
<S> <C> <C> <C> <C>
Adjusted Revenues, Net of Interest Expense 4% $5,127 $5,948 16%
Adjusted Operating Expenses (1%) 1,847 2,153 17%
Adjusted Provision for Loan Losses (2) (5%) 2,456 2,454 --
------ ------
Core Income Before Taxes 33% 824 1,341 63%
Income Taxes 33% 309 494 60%
------ ------
Core Income 33% $ 515 $ 847 64%
====== ======
Managed Average Assets (in billions of dollars) 12% $ 61 $ 75 23%
====== ======
Return on Managed Assets 1.13% 1.51%
====== ======
U.S. BANKCARDS DATA :
(in billions of dollars)
End of Period Managed Receivables 11% $ 63.8 $ 70.7 11%
Total Accounts (in millions) 2% 39.7 40.6 2%
Total Sales 8% $ 98.4 $118.5 20%
End of Period Loans:
On Balance Sheet (4%)
Securitized 19%
Held for Sale (4%)
Total 11%
Average Loans:
On Balance Sheet --
Securitized 19%
Held for Sale --
Total 12%
Write-offs (in millions of dollars):
On Balance Sheet (3%)
Securitized (3%)
Held for Sale (21%)
Total (4%)
Coincident Net Credit Loss Ratio
12 Month Lagged Net Credit Loss Ratio (3)
Loans 90+ Days Past Due:
In millions of dollars 6%
%
</TABLE>
(1) Includes U.S. Bankcards, Diners Club and Canada bankcards. The acquisition
of the Universal Card (UCS) was completed in the 1998 second quarter.
(2) On a managed basis.
(3) Excluding acquisitions.
Page 6
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Banking/Lending
CITIFINANCIAL (1)
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q
1998 1998 1998 1998 1999 1999
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE* $ 294 $ 310 $ 326 $ 345 $ 361 $ 396
CORE INCOME $ 48 $ 49 $ 62 $ 63 $ 71 $ 78
Net receivables:
Real estate-secured loans (1) $ 5,324.7 $ 5,673.4 $ 6,084.8 $ 6,659.5 $ 7,179.5 $ 7,699.2
Personal loans (2) 3,868.9 4,007.4 4,134.3 4,275.2 4,647.2 4,886.2
Sales finance and other 866.3 893.7 936.4 990.8 1,033.8 1,032.1
--------- --------- --------- --------- --------- ---------
Consumer finance receivables,
net of unearned finance charges 10,059.9 10,574.5 11,155.5 11,925.5 12,860.5 13,617.5
Accrued interest receivable 75.8 79.1 87.3 99.2 99.3 106.5
Allowance for credit losses (294.6) (317.3) (334.4) (369.7) (388.7) (436.4)
--------- --------- --------- --------- --------- ---------
Consumer finance receivables, net $ 9,841.1 $10,336.3 $10,908.4 $11,655.0 $12,571.1 $13,287.6
========= ========= ========= ========= ========= =========
Number of offices 1,023 1,005 993 980 1,143 1,177
Average yield 14.91% 14.94% 14.93% 14.74% 14.38% 14.48%
Average net interest margin 8.34% 8.41% 8.46% 8.53% 8.42% 8.58%
Charge-off rate 2.93% 2.78% 2.61% 2.67% 2.38% 2.14%
60+ days past due as % of receivables 1.82% 1.74% 1.85% 1.90% 1.78% 1.67%
Reserves as % of net receivables 2.93% 3.00% 3.00% 3.10% 3.02% 3.20%
(1) Includes fully secured $.M.A.R.T.
receivables, as follows: $ 2,052.8 $ 2,272.8 $ 2,432.1 $ 2,604.6 $ 2,817.6 $ 3,117.4
(2) Includes $.A.F.E. and partially
secured $.M.A.R.T receivables, as follows: $ 359.8 $ 351.3 $ 345.0 $ 345.6 $ 337.9 $ 334.2
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
1999 (Decrease) 1998 1999 (Decrease)
---------- ---------------- ------ ------ ---------------------
<S> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE* $ 421 29% $ 930 $1,178 27%
CORE INCOME $ 135 118% $ 159 $ 284 79%
Net receivables:
Real estate-secured loans (1) $ 8,439.6 39%
Personal loans (2) 5,102.5 23%
Sales finance and other 1,069.7 14%
----------
Consumer finance receivables,
net of unearned finance charges 14,611.8 31%
Accrued interest receivable 121.7 39%
Allowance for credit losses (424.1) 27%
----------
Consumer finance receivables, net $ 14,309.4 31%
==========
Number of offices 1,173 18%
Average yield 14.58% 14.93% 14.49%
Average net interest margin 8.56% 8.41% 8.53%
Charge-off rate 2.00% 2.77% 2.17%
60+ days past due as % of receivables 1.68% 1.85% 1.68%
Reserves as % of net receivables 2.90% 3.00% 2.90%
(1) Includes fully secured $.M.A.R.T.
receivables, as follows: $ 3,415.7 40%
(2) Includes $.A.F.E. and partially
secured $.M.A.R.T receivables, as follows: $ 331.2 (4%)
</TABLE>
(1) Formerly Consumer Finance Services.
*Excludes realized gains
Page 7
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Insurance
TRAVELERS LIFE AND ANNUITY - Page 1
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 698 $ 765 $ 716 $ 833 $ 771 $ 867 $ 869
CORE INCOME $ 119 $ 127 $ 123 $ 124 $ 147 $ 173 $ 168
Pre-tax contribution by source:
Deferred and payout annuities $ 87.3 $ 89.2 $ 82.1 $ 87.9 $ 111.7 $ 139.1 $ 126.9
Group annuities 31.5 28.3 36.4 24.1 36.6 43.7 43.2
Life and long term care insurance 37.9 39.3 34.6 42.6 39.8 50.5 43.9
Other (includes run-off and return
on excess capital) 24.1 37.6 37.6 33.1 33.0 28.8 39.3
--------- --------- --------- --------- --------- --------- ---------
Total $ 180.8 $ 194.4 $ 190.7 $ 187.7 $ 221.1 $ 262.1 $ 253.3
========= ========= ========= ========= ========= ========= =========
Deferred annuities:
Number of annuities in force (000):
Fixed 415.3 408.4 402.6 399.8 392.4 384.2 378.5
Variable 430.7 463.8 496.2 529.6 560.8 595.4 630.1
--------- --------- --------- --------- --------- --------- ---------
Total 846.0 872.2 898.8 929.4 953.2 979.6 1,008.6
========= ========= ========= ========= ========= ========= =========
Number of annuities issued (000):
Fixed 5.5 4.8 3.7 4.0 3.9 2.9 3.5
Variable 42.3 42.6 41.4 43.0 47.4 49.7 46.6
--------- --------- --------- --------- --------- --------- ---------
Total 47.8 47.4 45.1 47.0 51.3 52.6 50.1
========= ========= ========= ========= ========= ========= =========
Net written premiums & deposits:
Fixed $ 264.7 $ 215.6 $ 217.4 $ 210.4 $ 194.2 $ 249.7 $ 271.0
Variable 646.9 679.8 757.5 808.0 975.7 1,048.3 1,089.8
--------- --------- --------- --------- --------- --------- ---------
Total $ 911.6 $ 895.4 $ 974.9 $ 1,018.4 $ 1,169.9 $ 1,298.0 $ 1,360.8
========= ========= ========= ========= ========= ========= =========
Policyholder account balances
& benefit reserves: (1)
Fixed $ 7,890.1 $ 7,863.4 $ 7,877.1 $ 7,915.1 $ 7,839.3 $ 7,874.2 $ 7,958.5
Variable 10,401.2 11,148.5 10,601.1 12,951.4 14,172.9 15,770.8 15,897.0
--------- --------- --------- --------- --------- --------- ---------
Total $18,291.3 $19,011.9 $18,478.2 $20,866.5 $22,012.2 $23,645.0 $23,855.5
========= ========= ========= ========= ========= ========= =========
Payout annuities:
Net written premiums & deposits $ 81.0 $ 106.8 $ 76.1 $ 165.1 $ 88.0 $ 114.8 $ 110.1
Policyholder account balances
& benefit reserves $ 4,558.1 $ 4,602.2 $ 4,626.9 $ 4,743.6 $ 4,774.7 $ 4,841.3 $ 4,896.7
GIC and other annuities:
Net written premiums & deposits (2) $ 778.9 $ 921.6 $ 1,005.4 $ 983.7 $ 1,792.1 $ 1,510.3 $ 1,123.1
Policyholder account balances
& benefit reserves: (1)
Guaranteed investment contracts $ 2,633.2 $ 3,018.1 $ 3,748.2 $ 4,170.7 $ 4,912.2 $ 5,840.1 $ 5,746.0
Other group annuities 5,040.1 5,052.9 4,962.6 4,929.6 4,854.2 5,142.8 5,171.7
--------- --------- --------- --------- --------- --------- ---------
Total $ 7,673.3 $ 8,071.0 $ 8,710.8 $ 9,100.3 $ 9,766.4 $10,982.9 $10,917.7
========= ========= ========= ========= ========= ========= =========
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
---------------- --------- --------- ---------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 21% $ 2,179 $ 2,507 15%
CORE INCOME 37% $ 369 $ 488 32%
Pre-tax contribution by source:
Deferred and payout annuities 55% $ 258.6 $ 377.7 46%
Group annuities 19% 96.2 123.5 28%
Life and long term care insurance 27% 111.8 134.2 20%
Other (includes run-off and return
on excess capital) 5% 99.3 101.1 2%
--------- ---------
Total 33% $ 565.9 $ 736.5 30%
========= =========
Deferred annuities:
Number of annuities in force (000):
Fixed (6%)
Variable 27%
Total 12%
Number of annuities issued (000):
Fixed (5%) 14.0 10.3 (26%)
Variable 13% 126.3 143.7 14%
--------- ---------
Total 11% 140.3 154.0 10%
========= =========
Net written premiums & deposits:
Fixed 25% $ 697.7 $ 714.9 2%
Variable 44% 2,084.2 3,113.8 49%
--------- ---------
Total 40% $ 2,781.9 $ 3,828.7 38%
========= =========
Policyholder account balances
& benefit reserves: (1)
Fixed 1%
Variable 50%
Total 29%
Payout annuities:
Net written premiums & deposits 45% $ 263.9 $ 312.9 19%
Policyholder account balances
& benefit reserves 6% $ 4,626.9 $ 4,896.7 6%
GIC and other annuities:
Net written premiums & deposits (2) 12% $ 2,705.9 $ 4,425.5 64%
Policyholder account balances
& benefit reserves: (1)
Guaranteed investment contracts 53%
Other group annuities 4%
Total 25%
</TABLE>
(1) Includes general account, separate accounts and managed funds.
(2) Excludes deposits of $13.0, $197.0, $14.0 and $33.3 in the 1998 first,
second, third and fourth quarters, respectively, and $23.2, $416.0 and
$70.0 in the 1999 first, second and third quarters, related to Travelers
plans previously managed externally.
*Excludes realized gains
Page 8
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Insurance
TRAVELERS LIFE AND ANNUITY - Page 2
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Individual life insurance:
Life insurance in force
(in billions, face amt.):
Term $ 30.6 $ 30.9 $ 31.4 $ 32.1 $ 32.8 $ 33.4 $ 33.6
Permanent (universal and whole life) 21.8 22.3 22.8 23.3 23.8 24.3 24.8
-------- -------- -------- -------- -------- -------- --------
Total $ 52.4 $ 53.2 $ 54.2 $ 55.4 $ 56.6 $ 57.7 $ 58.4
======== ======== ======== ======== ======== ======== ========
Number of life policies in force (000) 525.2 522.9 520.0 518.1 515.8 513.8 510.9
Life insurance issued
(in billions, face amt.) $ 2.0 $ 2.1 $ 2.2 $ 2.6 $ 2.5 $ 2.4 $ 2.0
Number of life policies issued (000) 7.1 7.9 6.8 7.4 7.4 8.0 6.3
Net written premiums and deposits:
Direct periodic premiums and deposits $ 76.2 $ 78.2 $ 77.9 $ 89.2 $ 84.5 $ 86.7 $ 88.3
Single premium deposits 23.8 20.5 17.1 23.7 16.2 20.8 17.2
Reinsurance (14.8) (16.0) (16.5) (18.7) (16.8) (17.8) (17.9)
-------- -------- -------- -------- -------- -------- --------
Total $ 85.2 $ 82.7 $ 78.5 $ 94.2 $ 83.9 $ 89.7 $ 87.6
======== ======== ======== ======== ======== ======== ========
Policyholder account balances
& benefit reserves $2,327.1 $2,360.0 $2,366.9 $2,436.1 $2,468.3 $2,511.0 $2,594.1
Individual long term care insurance:
Number of policies in force (000) 107.7 113.6 118.5 122.2 125.9 129.2 132.5
Net earned premiums $ 45.6 $ 48.7 $ 51.8 $ 53.7 $ 55.2 $ 56.5 $ 58.3
Net written premiums $ 44.5 $ 53.7 $ 53.3 $ 61.5 $ 52.5 $ 59.8 $ 59.5
All businesses:
Net investment income $ 483.0 $ 498.5 $ 476.2 $ 510.0 $ 525.4 $ 578.8 $ 593.2
Interest credited to contractholders $ 215.0 $ 210.3 $ 220.4 $ 230.8 $ 225.7 $ 230.9 $ 239.0
Statutory data:
Travelers Insurance Company
Statutory capital and surplus $4,142.6 $4,370.3 $4,230.5 $4,953.9 $4,955.9 $4,976.9 $5,010.2
Surplus to liabilities ratio 19.4% 20.0% 18.2% 20.4% 19.8% 19.5% 20.2%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- -------- -------- ---------------------
<S> <C>
Individual life insurance:
Life insurance in force
(in billions, face amt.):
Term 7%
Permanent (universal and whole life) 9%
Total 8%
Number of life policies in force (000) (2%) 520.0 510.9 (2%)
Life insurance issued
(in billions, face amt.) (9%) $ 6.3 $ 6.9 10%
Number of life policies issued (000) (7%) 21.8 21.7 --
Net written premiums and deposits:
Direct periodic premiums and deposits 13% $ 232.3 $ 259.5 12%
Single premium deposits 1% 61.4 54.2 (12%)
Reinsurance 8% (47.3) (52.5) 11%
-------- --------
Total 12% $ 246.4 $ 261.2 6%
======== ========
Policyholder account balances
& benefit reserves 10%
Individual long term care insurance:
Number of policies in force (000) 12%
Net earned premiums 13% $ 146.1 $ 170.0 16%
Net written premiums 12% $ 151.5 $ 171.8 13%
All businesses:
Net investment income 25% $1,457.7 $1,697.4 16%
Interest credited to contractholders 8% $ 645.7 $ 695.6 8%
Statutory data:
Travelers Insurance Company
Statutory capital and surplus 18%
Surplus to liabilities ratio
</TABLE>
Page 9
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Insurance
PRIMERICA FINANCIAL SERVICES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 400 $ 420 $ 413 $ 421 $ 432 $ 443 $ 444
CORE INCOME (1)
Life insurance $ 75 $ 80 $ 77 $ 75 $ 86 $ 89 $ 88
Other financial products 20 23 22 28 24 24 26
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total core income $ 95 $ 103 $ 99 $ 103 $ 110 $ 113 $ 114
========== ========== ========== ========== ========== ========== ==========
Face value (in billions) of:
Life insurance issued $ 13.0 $ 15.8 $ 14.2 $ 14.4 $ 13.6 $ 15.5 $ 12.4
Life insurance in force $ 372.5 $ 377.5 $ 380.6 $ 383.7 $ 386.3 $ 391.7 $ 392.8
Number of life policies issued (000) 51.1 61.2 55.6 55.7 51.6 58.0 47.1
Number of life policies in force (000) 2,141.6 2,151.1 2,153.1 2,151.8 2,147.1 2,150.9 2,142.3
Annualized issued premiums $ 40.8 $ 48.7 $ 45.0 $ 44.8 $ 42.4 $ 48.4 $ 39.3
Direct premiums $ 306.2 $ 312.3 $ 311.6 $ 313.7 $ 315.2 $ 321.0 $ 320.5
Earned premiums:
PFS Individual term life $ 244.7 $ 248.8 $ 246.1 $ 247.3 $ 251.6 $ 252.7 $ 250.5
Other 15.5 17.1 15.1 22.6 15.5 15.9 14.3
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total $ 260.2 $ 265.9 $ 261.2 $ 269.9 $ 267.1 $ 268.6 $ 264.8
========== ========== ========== ========== ========== ========== ==========
Mutual fund sales at NAV:
Salomon Smith Barney Asset
Management funds $ 335.6 $ 400.7 $ 383.9 $ 341.4 $ 407.7 $ 453.1 $ 393.7
Other funds 228.8 308.6 249.8 197.3 233.5 277.3 257.6
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total U.S. mutual fund sales 564.4 709.3 633.7 538.7 641.2 730.4 651.3
Mutual fund sales - Canada 204.3 123.9 91.3 76.5 143.2 76.2 86.1
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total mutual fund sales $ 768.7 $ 833.2 $ 725.0 $ 615.2 $ 784.4 $ 806.6 $ 737.4
========== ========== ========== ========== ========== ========== ==========
Cash advanced on $.M.A.R.T
and $.A.F.E. loans (2) $ 316.6 $ 410.6 $ 347.4 $ 386.5 $ 419.2 $ 492.7 $ 488.3
Variable annuity net written premiums
and deposits $ 126.3 $ 175.2 $ 171.9 $ 178.6 $ 223.4 $ 278.6 $ 247.6
SECURE net written premiums (3) $ 38.0 $ 55.8 $ 60.8 $ 58.7 $ 57.2 $ 62.6 $ 58.5
Agents licensed for:
Life insurance 76,835 77,274 79,081 80,725 79,738 79,251 77,259
Mutual funds 28,475 28,864 29,176 26,517 27,129 27,053 26,873
$.M.A.R.T. / $.A.F.E. loans 96,188 96,422 117,704 129,310 129,556 118,762 108,377
Variable annuities 12,924 13,169 13,269 13,434 13,816 14,497 16,042
Home & auto insurance 10,051 11,123 12,683 14,083 15,102 14,734 15,425
Financial Needs Analyses submitted 140,617 130,549 132,771 131,080 142,451 122,958 111,136
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 8% $ 1,233 $ 1,319 7%
CORE INCOME (1)
Life insurance 14% $ 232 $ 263 13%
Other financial products 18% 65 74 14%
---------- ----------
Total core income 15% $ 297 $ 337 13%
========== ==========
Face value (in billions) of:
Life insurance issued (13%) $ 43.0 $ 41.5 (3%)
Life insurance in force 3% $ 380.6 $ 392.8 3%
Number of life policies issued (000) (15%) 167.9 156.7 (7%)
Number of life policies in force (000) (1%) 2,153.1 2,142.3 (1%)
Annualized issued premiums (13%) $ 134.5 $ 130.1 (3%)
Direct premiums 3% $ 930.1 $ 956.7 3%
Earned premiums:
PFS Individual term life 2% $ 739.6 $ 754.8 2%
Other (5%) 47.7 45.7 (4%)
---------- ----------
Total 1% $ 787.3 $ 800.5 2%
========== ==========
Mutual fund sales at NAV:
Salomon Smith Barney Asset
Management funds 3% $ 1,120.2 $ 1,254.5 12%
Other funds 3% 787.2 768.4 (2%)
---------- ----------
Total U.S. mutual fund sales 3% 1,907.4 2,022.9 6%
Mutual fund sales - Canada (6%) 419.5 305.5 (27%)
---------- ----------
Total mutual fund sales 2% $ 2,326.9 $ 2,328.4 --
========== ==========
Cash advanced on $.M.A.R.T
and $.A.F.E. loans (2) 41% $ 1,074.6 $ 1,400.2 30%
Variable annuity net written premiums
and deposits 44% $ 473.4 $ 749.6 58%
SECURE net written premiums (3) (4%) $ 154.6 $ 178.3 15%
Agents licensed for:
Life insurance (2%)
Mutual funds (8%)
$.M.A.R.T. / $.A.F.E. loans (8%)
Variable annuities 21%
Home & auto insurance 22%
Financial Needs Analyses submitted (16%)
</TABLE>
(1) The 1998 fourth quarter reflects a one time $4.5 million reclass of income
from life insurance to other financial products as a result of bank
holding company requirements.
(2) The $.M.A.R.T. and $.A.F.E. loan products are marketed by PFS; the
receivables are reflected in the assets of CitiFinancial.
(3) The SECURE property casualty insurance products are marketed by PFS; the
premiums are reflected in the operating earnings of Travelers Property
Casualty Corp.
*Excludes realized gains
Page 10
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - Insurance
TRAVELERS PROPERTY CASUALTY - PERSONAL LINES
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 868 $ 899 $ 924 $ 975 $ 983 $ 1,005 $ 1,018
CORE INCOME $ 82 $ 81 $ 68 $ 88 $ 83 $ 79 $ 23
Net written premiums by product
line: (1)
Auto $ 555.7 $ 578.3 $ 590.8 $ 603.0 $ 619.6 $ 597.0 $ 581.1
Homeowners and other 250.3 295.6 317.9 298.5 363.8 353.9 370.6
-------- -------- -------- -------- -------- -------- --------
Total net written premiums $ 806.0 $ 873.9 $ 908.7 $ 901.5 $ 983.4 $ 950.9 $ 951.7
======== ======== ======== ======== ======== ======== ========
Net written premiums by distribution
channel: (1)
Independent agents $ 682.5 $ 718.0 $ 731.8 $ 720.3 $ 791.6 $ 750.6 $ 743.0
Affinity group marketing 53.4 61.0 72.9 76.9 83.0 84.5 92.1
SECURE 38.0 55.8 60.8 58.7 57.2 62.6 58.5
Joint marketing arrangements 32.1 39.1 43.2 45.6 51.6 53.2 58.1
-------- -------- -------- -------- -------- -------- --------
Total net written premiums $ 806.0 $ 873.9 $ 908.7 $ 901.5 $ 983.4 $ 950.9 $ 951.7
======== ======== ======== ======== ======== ======== ========
Statutory ratio development:
Earned premiums $ 770.8 $ 802.5 $ 835.7 $ 862.4 $ 892.1 $ 905.1 $ 915.5
Losses and loss adjustment expenses 502.7 523.5 580.9 574.1 594.3 627.1 702.7
Other underwriting expenses 226.0 242.1 243.5 238.8 269.8 242.5 258.7
-------- -------- -------- -------- -------- -------- --------
Total deductions 728.7 765.6 824.4 812.9 864.1 869.6 961.4
-------- -------- -------- -------- -------- -------- --------
Statutory underwriting gain/(loss) $ 42.1 $ 36.9 $ 11.3 $ 49.5 $ 28.0 $ 35.5 $ (45.9)
======== ======== ======== ======== ======== ======== ========
Statutory combined ratio: (1)
Loss and loss adjustment expense ratio 65.2% 65.2% 69.5% 66.6% 66.6% 69.3% 76.8%
Other underwriting expense ratio 28.0% 27.7% 26.8% 26.5% 27.4% 25.5% 27.2%
-------- -------- -------- -------- -------- -------- --------
Combined ratio 93.2% 92.9% 96.3% 93.1% 94.0% 94.8% 104.0%
======== ======== ======== ======== ======== ======== ========
Net investment income (pre-tax) $ 95.4 $ 94.8 $ 88.6 $ 109.6 $ 90.4 $ 98.8 $ 102.0
Effective tax rate on net
investment income 29.4% 28.5% 27.4% 28.7% 27.2% 27.7% 28.4%
Catastrophe losses, net of
reinsurance (after-tax) $ 8.6 $ 13.1 $ 21.8 $ -- $ 8.1 $ 23.2 $ 48.2
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * 10% $ 2,691 $ 3,006 12%
CORE INCOME (66%) $ 231 $ 185 (20%)
Net written premiums by product
line: (1)
Auto (2%) $1,724.8 $1,797.7 4%
Homeowners and other 17% 863.8 1,088.3 26%
-------- --------
Total net written premiums 5% $2,588.6 $2,886.0 11%
======== ========
Net written premiums by distribution
channel: (1)
Independent agents 2% $2,132.3 $2,285.2 7%
Affinity group marketing 26% 187.3 259.6 39%
SECURE (4%) 154.6 178.3 15%
Joint marketing arrangements 34% 114.4 162.9 42%
-------- --------
Total net written premiums 5% $2,588.6 $2,886.0 11%
======== ========
Statutory ratio development:
Earned premiums 10% $2,409.0 $2,712.7 13%
Losses and loss adjustment expenses 21% 1,607.1 1,924.1 20%
Other underwriting expenses 6% 711.6 771.0 8%
-------- --------
Total deductions 17% 2,318.7 2,695.1 16%
-------- --------
Statutory underwriting gain/(loss) (506%) $ 90.3 $ 17.6 (81%)
======== ========
Statutory combined ratio: (1)
Loss and loss adjustment expense ratio 66.7% 70.9%
Other underwriting expense ratio 27.5% 26.7%
-------- --------
Combined ratio 94.2% 97.6%
======== ========
Net investment income (pre-tax) 15% $ 278.8 $ 291.2 4%
Effective tax rate on net
investment income 28.4% 27.8%
Catastrophe losses, net of
reinsurance (after-tax) 121% $ 43.5 $ 79.5 83%
</TABLE>
(1) The 1999 first quarter and nine month net written premiums include an
adjustment associated with a reinsurance transaction, which increased
homeowners premiums written by independent agents by $71.7 million.
Excluding this transaction, the statutory loss and loss adjustment expense
ratio, other underwriting expense ratio, and combined ratio for the 1999
first quarter were 66.6%, 26.6% and 93.2%, respectively and for the 1999
nine months were 70.9%, 26.4% and 97.3%, respectively.
*Excludes realized gains
Page 11
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - International
EUROPE, MIDDLE EAST AND AFRICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of
Interest Expense $ 499 $ 525 $ 543 $ 576 $ 563 $ 565 $ 608
Adjusted Operating Expenses 348 368 362 395 374 369 370
Provision for Benefits, Claims,
and Credit Losses 71 69 74 85 80 77 79
------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes 80 88 107 96 109 119 159
Income Taxes 31 35 43 37 42 47 61
------ ------ ------ ------ ------ ------ ------
Core Income $ 49 $ 53 $ 64 $ 59 $ 67 $ 72 $ 98
====== ====== ====== ====== ====== ====== ======
Average Assets (in billions
of dollars) $ 21 $ 21 $ 22 $ 23 $ 22 $ 22 $ 23
====== ====== ====== ====== ====== ====== ======
Return on Assets 0.95% 1.01% 1.15% 1.02% 1.24% 1.31% 1.69%
====== ====== ====== ====== ====== ====== ======
Average Loans (in billions
of dollars) $ 15.4 $ 15.8 $ 16.5 $ 17.4 $ 16.7 $ 16.4 $ 17.2
Average Customer Deposits
(in billions of dollars) $ 17.0 $ 17.0 $ 17.1 $ 17.9 $ 17.3 $ 17.0 $ 17.1
Accounts (in millions) 9.8 9.9 10.1 10.1 10.4 10.6 10.7
Net Credit Loss Ratio 1.77% 1.71% 1.64% 1.70% 1.81% 1.71% 1.60%
Loans 90+ Days Past Due:
In millions of dollars $ 891 $ 904 $ 955 $ 955 $ 893 $ 899 $ 953
% 5.83% 5.73% 5.52% 5.46% 5.40% 5.46% 5.45%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ------ ------ ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of
Interest Expense 12% $1,567 $1,736 11%
Adjusted Operating Expenses 2% 1,078 1,113 3%
Provision for Benefits, Claims,
and Credit Losses 7% 214 236 10%
------ ------
Core Income Before Taxes 49% 275 387 41%
Income Taxes 42% 109 150 38%
------ ------
Core Income 53% $ 166 $ 237 43%
====== ======
Average Assets (in billions
of dollars) 5% $ 21 $ 22 5%
====== ======
Return on Assets 1.06% 1.44%
====== ======
Average Loans (in billions
of dollars) 4% $ 15.9 $ 16.8 6%
Average Customer Deposits
(in billions of dollars) -- $ 17.1 $ 17.1 --
Accounts (in millions) 6%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars --
%
</TABLE>
GLOBAL CONSUMER - International
ASIA PACIFIC
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of
Interest Expense $ 422 $ 457 $ 459 $ 511 $ 518 $ 543 $ 580
Adjusted Operating Expenses 238 255 234 249 268 283 315
Provision for Loan Losses 50 64 63 74 88 89 77
------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes 134 138 162 188 162 171 188
Income Taxes 52 53 62 72 61 64 71
------ ------ ------ ------ ------ ------ ------
Core Income $ 82 $ 85 $ 100 $ 116 $ 101 $ 107 $ 117
====== ====== ====== ====== ====== ====== ======
Average Assets (in billions
of dollars) $ 27 $ 28 $ 28 $ 29 $ 29 $ 30 $ 31
====== ====== ====== ====== ====== ====== ======
Return on Assets 1.23% 1.22% 1.42% 1.59% 1.41% 1.43% 1.50%
====== ====== ====== ====== ====== ====== ======
Average Loans (in billions
of dollars) $ 19.5 $ 19.7 $ 20.1 $ 21.6 $ 22.1 $ 22.9 $ 23.7
Average Customer Deposits
(in billions of dollars) $ 33.2 $ 34.9 $ 36.8 $ 39.6 $ 39.9 $ 40.6 $ 42.5
Accounts (in millions) 6.5 6.8 7.3 7.6 8.1 8.6 9.0
Net Credit Loss Ratio 0.92% 1.17% 1.12% 1.24% 1.43% 1.33% 1.23%
Loans 90+ Days Past Due:
In millions of dollars $ 316 $ 324 $ 384 $ 498 $ 513 $ 509 $ 450
% 1.57% 1.64% 1.87% 2.28% 2.31% 2.17% 1.87%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
---------------- ------ ------ ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of
Interest Expense 26% $1,338 $1,641 23%
Adjusted Operating Expenses 35% 727 866 19%
Provision for Loan Losses 22% 177 254 44%
------ ------
Core Income Before Taxes 16% 434 521 20%
Income Taxes 15% 167 196 17%
------ ------
Core Income 17% $ 267 $ 325 22%
====== ======
Average Assets (in billions
of dollars) 11% $ 28 $ 30 7%
====== ======
Return on Assets 1.27% 1.45%
====== ======
Average Loans (in billions
of dollars) 18% $ 19.8 $ 22.9 16%
Average Customer Deposits
(in billions of dollars) 15% $ 35.0 $ 41.0 17%
Accounts (in millions) 23%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars 17%
%
</TABLE>
Page 12
<PAGE>
citigroup[LOGO]
GLOBAL CONSUMER - International
LATIN AMERICA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest
Expense $ 354 $ 369 $ 431 $ 444 $ 466 $ 499 $ 504
Adjusted Operating Expenses 233 248 287 300 291 299 302
Provision for Loan Losses 49 61 74 81 101 135 117
------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes 72 60 70 63 74 65 85
Income Taxes 29 23 28 25 27 22 30
------ ------ ------ ------ ------ ------ ------
Core Income $ 43 $ 37 $ 42 $ 38 $ 47 $ 43 $ 55
====== ====== ====== ====== ====== ====== ======
Average Assets (in billions
of dollars) $ 9 $ 10 $ 13 $ 14 $ 14 $ 15 $ 14
====== ====== ====== ====== ====== ====== ======
Return on Assets 1.94% 1.48% 1.28% 1.08% 1.36% 1.15% 1.56%
====== ====== ====== ====== ====== ====== ======
Average Loans (in billions
of dollars) $ 7.5 $ 7.9 $ 8.0 $ 7.9 $ 7.8 $ 8.1 $ 7.9
Average Customer Deposits
(in billions of dollars) $ 8.9 $ 9.3 $ 10.7 $ 11.8 $ 12.8 $ 13.8 $ 13.6
Accounts (in millions) 5.7 6.0 7.1 7.3 8.0 7.8 7.6
Net Credit Loss Ratio 2.45% 2.88% 3.48% 3.39% 4.74% 6.17% 5.55%
Loans 90+ Days Past Due:
In millions of dollars $ 183 $ 209 $ 243 $ 288 $ 292 $ 346 $ 325
% 2.38% 2.61% 3.05% 3.60% 3.75% 4.32% 4.10%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ------ ------ ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest
Expense 17% $1,154 $1,469 27%
Adjusted Operating Expenses 5% 768 892 16%
Provision for Loan Losses 58% 184 353 92%
------ ------
Core Income Before Taxes 21% 202 224 11%
Income Taxes 7% 80 79 (1%)
------ ------
Core Income 31% $ 122 $ 145 19%
====== ======
Average Assets (in billions
of dollars) 8% $ 11 $ 14 27%
====== ======
Return on Assets 1.48% 1.38%
====== ======
Average Loans (in billions
of dollars) (1%) $ 7.8 $ 7.9 1%
Average Customer Deposits
(in billions of dollars) 27% $ 9.7 $ 13.4 38%
Accounts (in millions) 7%
Net Credit Loss Ratio
Loans 90+ Days Past Due:
In millions of dollars 34%
%
</TABLE>
Page 13
<PAGE>
GLOBAL CONSUMER
e-CITI (1)
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
3Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 1998 Increase/
1998 1998 1998 1998 1999 1999 1999 (Decrease)
------ ------ ------ ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 30 $ 34 $ 38 $ 47 $ 54 $ 55 $ 57 50%
Adjusted Operating Expenses 78 93 91 116 113 126 140 54%
Provision for Loan Losses 1 1 -- 1 1 1 1 NM
------ ------ ------ ------ ------ ------ -----
Core Income Before Tax Benefits (49) (60) (53) (70) (60) (72) (84) (58%)
Income Tax Benefits (19) (24) (20) (28) (24) (29) (33) (65%)
------ ------ ------ ------ ------ ------ -----
Core Income $ (30) $ (36) $ (33) $ (42) $ (36) $ (43) $ (51) (55%)
====== ====== ====== ====== ====== ====== =====
<CAPTION>
YTD YTD YTD 3Q 1999 vs.
3Q 3Q YTD 3Q 1998 Increase/
1998 1999 (Decrease)
------ ------ ---------------------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 102 $ 166 63%
Adjusted Operating Expenses 262 379 45%
Provision for Loan Losses 2 3 50%
------ ------
Core Income Before Tax Benefits (162) (216) (33%)
Income Tax Benefits (63) (86) (37%)
------ ------
Core Income $ (99) $ (130) (31%)
====== ======
</TABLE>
(1) Includes development of electronic banking initiatives.
NM - Not meaningful
GLOBAL CONSUMER
OTHER (1)
(In millions of dollars)
<TABLE>
<CAPTION>
3Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 1998 Increase/
1998 1998 1998 1998 1999 1999 1999 (Decrease)
------ ------ ------ ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 26 $ 22 $ 24 $ 28 $ 30 $ 24 $ 14 (42%)
Adjusted Operating Expenses 23 37 65 92 61 67 33 (49%)
------ ------ ------ ------ ------ ------ ------
Core Income Before Tax Benefits 3 (15) (41) (64) (31) (43) (19) 54%
Income Tax Benefits 3 (5) (17) (21) (12) (13) (6) 65%
------ ------ ------ ------ ------ ------ ------
Core Income $ -- $ (10) $ (24) $ (43) $ (19) $ (30) $ (13) 46%
====== ====== ====== ====== ====== ====== ======
<CAPTION>
YTD YTD YTD 3Q 1999 vs.
3Q 3Q YTD 3Q 1998 Increase/
1998 1999 (Decrease)
------ ------ ---------------------
<S> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 72 $ 68 (6%)
Adjusted Operating Expenses 125 161 29%
------ ------
Core Income Before Tax Benefits (53) (93) (75%)
Income Tax Benefits (19) (31) (63%)
------ ------
Core Income $ (34) $ (62) (82%)
====== ======
</TABLE>
(1) Includes unallocated marketing and staff expenses.
Page 14
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY - Page 1
(In millions of dollars)
(Excluding Asset Management division) citigroup[LOGO]
<TABLE>
<CAPTION>
3Q 1999 vs.
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 1998 Increase/
1998 1998 1998 1998 1999 1999 1999 (Decrease)
------ ------ ------ ------ ------ ------ ------ -----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Commissions $ 793 $ 781 $ 794 $ 835 $ 900 $ 903 $ 812 2%
Asset management and administration fees 300 344 350 331 377 400 431 23%
Investment banking 616 633 514 518 655 762 760 48%
Principal transactions 779 315 (1,332) 123 974 698 328 125%
Other income 28 44 28 79 65 49 65 132%
------ ------ ------ ------ ------ ------ ------
Total non-interest revenues 2,516 2,117 354 1,886 2,971 2,812 2,396 577%
------ ------ ------ ------ ------ ------ ------
Interest and dividends 3,316 3,466 3,336 2,775 2,611 2,864 2,809 (16%)
Interest expense 2,914 3,060 3,005 2,454 2,241 2,407 2,414 (20%)
------ ------ ------ ------ ------ ------ ------
Net interest and dividends 402 406 331 321 370 457 395 19%
------ ------ ------ ------ ------ ------ ------
Total revenues, net of interest expense 2,918 2,523 685 2,207 3,341 3,269 2,791 307%
------ ------ ------ ------ ------ ------ ------
Non-interest expenses:
Compensation and benefits 1,682 1,501 876 1,619 1,794 1,707 1,556 78%
Communications 115 113 116 123 117 111 123 6%
Occupancy and equipment 101 102 101 110 106 104 109 8%
Floor brokerage and other production 112 108 111 122 101 125 113 2%
Other operating and administrative expenses 197 157 122 214 220 261 206 69%
------ ------ ------ ------ ------ ------ ------
Total non-interest expenses 2,207 1,981 1,326 2,188 2,338 2,308 2,107 59%
------ ------ ------ ------ ------ ------ ------
Core Income before income taxes 711 542 (641) 19 1,003 961 684 207%
Provision for income taxes 268 194 (245) 6 355 351 252 203%
------ ------ ------ ------ ------ ------ ------
Core Income $ 443 $ 348 $ (396) $ 13 $ 648 $ 610 $ 432 209%
====== ====== ====== ====== ====== ====== ======
Total equity (in billions of dollars) (1) $ 8.9 $ 9.3 $ 8.7 $ 8.8 $ 9.6 $ 9.6 $ 9.9* 14%
Return on equity (1) 23.1% 18.2% (14.5%) 3.4% 31.4% 29.1% 21.4%
Pre-tax profit margin 24.4% 21.5% (93.6%) 0.9% 30.0% 29.4% 24.5%
Non-compensation expenses as a percent of
net revenues 18.0% 19.0% 65.7% 25.8% 16.3% 18.4% 19.7%
<CAPTION>
YTD YTD YTD 3Q 1999 vs.
3Q 3Q YTD 3Q 1998 Increase/
1998 1999 (Decrease)
------ ------ ---------------------
<S> <C> <C> <C>
Revenues:
Commissions $2,368 $2,615 10%
Asset management and administration fees 994 1,208 22%
Investment banking 1,763 2,177 23%
Principal transactions (238) 2,000 940%
Other income 100 179 79%
------ ------
Total non-interest revenues 4,987 8,179 64%
------ ------
Interest and dividends 10,118 8,284 (18%)
Interest expense 8,979 7,062 (21%)
------ ------
Net interest and dividends 1,139 1,222 7%
------ ------
Total revenues, net of interest expense 6,126 9,401 53%
------ ------
Non-interest expenses:
Compensation and benefits 4,059 5,057 25%
Communications 344 351 2%
Occupancy and equipment 304 319 5%
Floor brokerage and other production 331 339 2%
Other operating and administrative expenses 476 687 44%
------ ------
Total non-interest expenses 5,514 6,753 22%
------ ------
Core Income before income taxes 612 2,648 333%
Provision for income taxes 217 958 341%
------ ------
Core Income $ 395 $1,690 328%
====== ======
Total equity (in billions of dollars) (1)
Return on equity (1) 8.8% 27.2%
Pre-tax profit margin 10.0% 28.2%
Non-compensation expenses as a percent of
net revenues 23.8% 18.0%
</TABLE>
(1) Total equity and return on equity (core income) for Salomon Smith Barney in
total (includes Salomon Smith Barney Asset Management).
* Preliminary.
Page 15
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
SALOMON SMITH BARNEY - Page 2
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Client Assets (in billions of dollars)
Assets under fee-based management:
Financial Consultant (FC) managed accounts $ 13.3 $ 14.3 $ 13.8 $ 16.5 $ 18.6 $ 20.2 $ 21.4
Consulting Group externally managed assets 67.1 69.3 63.9 71.9 73.1 76.8 74.6
--------- --------- --------- --------- --------- --------- ---------
Total assets under fee-based management $ 80.4 $ 83.6 $ 77.7 $ 88.4 $ 91.7 $ 97.0 $ 96.0
========= ========= ========= ========= ========= ========= =========
Total client assets $ 703.0 $ 724.3 $ 697.5 $ 773.8 $ 816.0 $ 852.1 $ 844.6
Private Client
Registered Financial Consultants 10,321 10,494 10,573 10,803 10,918 11,032 11,086
Annualized retail gross production per FC (000) $ 452 $ 441 $ 431 $ 413 $ 481 $ 477 $ 465
Domestic retail offices 432 439 442 449 457 467 472
Investment Banking and Public Finance
Underwriting (full credit to lead mgr.):
Debt and equity
Global volume $72,073.3 $80,556.7 $48,436.7 $53,515.3 $92,101.9 $82,203.5 $75,115.3
Global market share 9.8% 11.1% 8.6% 9.5% 10.0% 9.7% 10.4%
Rank 4 2 3 2 2 2 2
U.S. volume $65,054.9 $71,902.1 $42,305.4 $46,235.9 $73,852.3 $67,089.3 $57,427.2
U.S. market share 13.0% 14.1% 10.6% 12.0% 13.6% 13.5% 13.3%
Rank 2 2 3 2 2 2 2
Municipals (1)
Volume $ 8,319.1 $10,913.8 $ 9,553.1 $ 7,180.0 $ 7,271.4 $ 5,309.1 $ 8,196.3
Market share 11.8% 14.2% 14.7% 10.5% 12.5% 9.4% 15.4%
Rank 1 1 1 2 1 2 1
Capital Markets/Research
Number of institutional salespeople (2) 877 854 869 884 796 830 854
Number of stocks in which markets are made 1,464 1,465 1,418 1,329 1,305 1,296 1,305
% of S&P sectors covered by research 99% 99% 99% 98% 98% 98% 98%
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C>
Client Assets (in billions of dollars)
Assets under fee-based management:
Financial Consultant (FC) managed accounts 55%
Consulting Group externally managed assets 17%
Total assets under fee-based management 24%
Total client assets 21%
Private Client
Registered Financial Consultants 5%
Annualized retail gross production per FC (000) 8% $ 431 $ 474 10%
Domestic retail offices 7%
Investment Banking and Public Finance
Underwriting (full credit to lead mgr.):
Debt and equity
Global volume 55% $201,066.7 $249,420.7 24%
Global market share 9.9% 10.0%
Rank 2 2
U.S. volume 36% $179,262.4 $198,368.8 11%
U.S. market share 12.7% 13.5%
Rank 2 2
Municipals (1)
Volume (14%) $ 28,786.0 $ 20,776.8 (28%)
Market share 13.6% 12.4%
Rank 1 1
Capital Markets/Research
Number of institutional salespeople (2) (2%)
Number of stocks in which markets are made (8%)
% of S&P sectors covered by research
</TABLE>
(1) Total long term excluding private placement.
(2) Excludes institutional salespeople at Nikko in the 1999 nine months.
Page 16
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
EMERGING MARKETS
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 959 $ 974 $ 723 $ 976 $1,139 $1,092 $1,051
Adjusted Operating Expenses 478 507 515 515 506 508 521
Provision for Loan Losses 62 79 198 85 115 110 32
------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes and Minority Interest 419 388 10 376 518 474 498
Income Taxes 157 146 3 139 194 178 189
Minority Interest, Net of Tax -- -- -- -- 1 2 1
------ ------ ------ ------ ------ ------ ------
Core Income $ 262 $ 242 $ 7 $ 237 $ 323 $ 294 $ 308
====== ====== ====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 75 $ 75 $ 78 $ 83 $ 81 $ 83 $ 82
====== ====== ====== ====== ====== ====== ======
Return on Assets 1.42% 1.29% 0.04% 1.13% 1.62% 1.42% 1.49%
====== ====== ====== ====== ====== ====== ======
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
---------------- ------ ------ ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 45% $2,656 $3,282 24%
Adjusted Operating Expenses 1% 1,500 1,535 2%
Provision for Loan Losses (84%) 339 257 (24%)
------ ------
Core Income Before Taxes and Minority Interest NM 817 1,490 82%
Income Taxes NM 306 561 83%
Minority Interest, Net of Tax NM -- 4 NM
------ ------
Core Income NM $ 511 $ 925 81%
====== ======
Average Assets (in billions of dollars) 5% $ 76 $ 82 8%
====== ======
Return on Assets 0.90% 1.51%
====== ======
</TABLE>
GLOBAL CORPORATE AND INVESTMENT BANK
GLOBAL RELATIONSHIP BANKING
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 989 $1,151 $ 827 $ 947 $1,090 $1,008 $ 985
Adjusted Operating Expenses 735 827 806 802 780 758 740
Provision for Loan Losses 3 (51) 34 (16) (4) -- 5
------ ------ ------ ------ ------ ------ ------
Core Income Before Taxes 251 375 (13) 161 314 250 240
Income Taxes 92 137 (4) 59 116 91 87
------ ------ ------ ------ ------ ------ ------
Core Income $ 159 $ 238 $ (9) $ 102 $ 198 $ 159 $ 153
====== ====== ====== ====== ====== ====== ======
Average Assets (in billions of dollars) $ 89 $ 92 $ 93 $ 93 $ 87 $ 80 $ 75
====== ====== ====== ====== ====== ====== ======
Return on Assets 0.72% 1.04% -- 0.44% 0.92% 0.80% 0.81%
====== ====== ====== ====== ====== ====== ======
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
---------------- ------ ------ ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 19% $2,967 $3,083 4%
Adjusted Operating Expenses (8%) 2,368 2,278 (4%)
Provision for Loan Losses (85%) (14) 1 107%
------ ------
Core Income Before Taxes NM 613 804 31%
Income Taxes NM 225 294 31%
------ ------
Core Income NM $ 388 $ 510 31%
====== ======
Average Assets (in billions of dollars) (19%) $ 91 $ 81 (11%)
====== ======
Return on Assets 0.57% 0.84%
====== ======
</TABLE>
NM Not meaningful
Page 17
<PAGE>
GLOBAL CORPORATE AND INVESTMENT BANK
TRAVELERS PROPERTY CASUALTY - COMMERCIAL LINES
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * $ 1,619 $ 1,584 $ 1,604 $ 1,674 $ 1,534 $ 1,558 $ 1,578
CORE INCOME $ 171 $ 174 $ 177 $ 201 $ 189 $ 201 $ 255
Net written premiums by market:
National accounts $ 186.6 $ 121.6 $ 175.3 $ 140.9 $ 149.9 $ 101.4 $ 148.8
Commercial accounts 462.6 440.8 446.0 450.7 443.6 440.1 469.9
Select accounts 378.6 393.7 365.7 356.3 372.3 393.4 355.4
Specialty accounts 184.0 164.7 181.2 164.8 148.2 159.8 158.4
-------- -------- -------- -------- -------- -------- --------
Total net written premiums $1,211.8 $1,120.8 $1,168.2 1,112.7 $1,114.0 $1,094.7 $1,132.5
======== ======== ======== ======== ======== ======== ========
Statutory ratio development:
Earned premiums $1,126.2 $1,093.6 $1,139.2 1,157.8 $1,072.7 $1,100.8 $1,110.3
Losses and loss adjustment expenses (1) 880.5 864.2 896.6 906.3 817.5 827.2 928.8
Other underwriting expenses 346.0 345.6 341.7 336.4 317.9 333.8 349.8
-------- -------- -------- -------- -------- -------- --------
Total deductions 1,226.5 1,209.8 1,238.3 1,242.7 1,135.4 1,161.0 1,278.6
-------- -------- -------- -------- -------- -------- --------
Statutory underwriting loss $ (100.3) $ (116.2) $ (99.1) $ (84.9) $ (62.7) $ (60.2) $ (168.3)
======== ======== ======== ======== ======== ======== ========
Statutory combined ratio: (1), (2)
Loss and loss adjustment expense ratio 78.2% 79.0% 78.7% 78.3% 76.2% 75.1% 83.7%
Other underwriting expense ratio 28.6% 30.8% 29.3% 30.2% 28.5% 30.5% 30.9%
-------- -------- -------- -------- -------- -------- --------
Combined ratio 106.8% 109.8% 108.0% 108.5% 104.7% 105.6% 114.6%
======== ======== ======== ======== ======== ======== ========
Net investment income (pre-tax) $ 412.5 $ 424.3 $ 411.8 $ 460.7 $ 412.6 $ 410.5 $ 420.2
Effective tax rate on net investment income 28.0% 27.5% 26.9% 27.6% 26.6% 26.5% 26.7%
Catastrophe losses, net of reinsurance (after-tax) $ -- $ 10.4 $ 14.9 $ -- $ -- $ 9.9 $ 17.4
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
REVENUES, NET OF INTEREST EXPENSE * (2%) $ 4,807 $ 4,670 (3%)
CORE INCOME 44% $ 522 $ 645 24%
Net written premiums by market:
National accounts (15%) $ 483.5 $ 400.1 (17%)
Commercial accounts 5% 1,349.4 1,353.6 --
Select accounts (3%) 1,138.0 1,121.1 (1%)
Specialty accounts (13%) 529.9 466.4 (12%)
-------- --------
Total net written premiums (3%) $3,500.8 $3,341.2 (5%)
======== ========
Statutory ratio development:
Earned premiums (3%) $3,359.0 $3,283.8 (2%)
Losses and loss adjustment expenses (1) 4% 2,641.3 2,573.5 (3%)
Other underwriting expenses 2% 1,033.3 1,001.5 (3%)
-------- --------
Total deductions 3% 3,674.6 3,575.0 (3%)
-------- --------
Statutory underwriting loss 70% $ (315.6) $ (291.2) 8%
======== ========
Statutory combined ratio: (1), (2)
Loss and loss adjustment expense ratio 78.6% 78.4%
Other underwriting expense ratio 29.5% 30.0%
-------- --------
Combined ratio 108.1% 108.4%
======== ========
Net investment income (pre-tax) 2% $1,248.6 $1,243.3 --
Effective tax rate on net investment income 27.5% 26.6%
Catastrophe losses, net of reinsurance (after-tax) 17% $ 25.3 $ 27.3 8%
</TABLE>
(1) The 1999 third quarter and nine months include the effects of a settlement
of an asbestos liability, which increased losses and loss adjustment
expenses, for statutory purposes only, by $105.2 million. Excluding this
transaction, the statutory loss and loss adjustment expense ratio, other
underwriting expense ratio, and combined ratio for the 1999 third quarter
were 74.2%, 30.9% and 105.1%, respectively, and for the 1999 nine months
were 75.2%, 30.0% and 105.2%, respectively.
(2) Before policyholder dividends.
* Excludes realized gains
Page 18
<PAGE>
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
SSB CITI ASSET MANAGEMENT GROUP
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees $ 288 $ 304 $ 301 $ 317 $ 341 $ 339 $ 344
Unit Investment Trust revenues - net 13 7 17 4 9 10 21
Other revenues 12 6 8 13 12 15 10
------- ------- ------- ------- ------- ------- -------
Total revenues 313 317 326 334 362 364 375
Interest expense 8 7 8 8 8 7 8
------- ------- ------- ------- ------- ------- -------
Total revenues, net of interest expense 305 310 318 326 354 357 367
------- ------- ------- ------- ------- ------- -------
Expenses:
Employee compensation and benefits 85 86 95 118 107 100 110
Mutual fund commission expense 35 32 31 28 30 28 34
Other expenses 72 79 80 94 86 90 88
------- ------- ------- ------- ------- ------- -------
Total expenses 192 197 206 240 223 218 232
------- ------- ------- ------- ------- ------- -------
Core income before income taxes 113 113 112 86 131 139 135
Provision for income taxes 44 45 45 34 51 55 53
------- ------- ------- ------- ------- ------- -------
Core income $ 69 $ 68 $ 67 $ 52 $ 80 $ 84 $ 82
======= ======= ======= ======= ======= ======= =======
Pre-tax profit margin 37.0% 36.5% 35.2% 26.4% 37.0% 38.9% 36.8%
Assets Under Management
(in billions of dollars):
Money market and institutional liquidity funds
Retail $ 57.1 $ 56.6 $ 60.9 $ 64.3 $ 68.8 $ 67.8 $ 69.0
Institutional 10.4 9.6 10.9 13.5 16.9 15.2 16.6
------- ------- ------- ------- ------- ------- -------
Total money market and institutional liquidity funds 67.5 66.2 71.8 77.8 85.7 83.0 85.6
------- ------- ------- ------- ------- ------- -------
Long-term mutual funds:
Equity / Balanced 42.5 43.4 37.5 42.5 43.8 45.7 44.7
Taxable Fixed Income 26.3 28.5 29.6 31.3 31.0 32.1 30.5
Tax Exempt Fixed Income 9.6 9.8 10.4 10.8 10.9 10.2 9.7
Annuities 3.7 3.3 3.1 3.7 4.1 4.5 4.6
------- ------- ------- ------- ------- ------- -------
Total long-term mutual funds 82.1 85.0 80.6 88.3 89.8 92.5 89.5
------- ------- ------- ------- ------- ------- -------
Managed accounts:
Private client 33.3 35.0 35.4 40.0 43.2 46.3 47.5
Institutional 75.4 81.3 79.9 93.7 91.4 95.6 96.2
------- ------- ------- ------- ------- ------- -------
Total managed accounts 108.7 116.3 115.3 133.7 134.6 141.9 143.7
------- ------- ------- ------- ------- ------- -------
Alternative Investment Strategies 22.4 24.0 26.3 27.2 28.1 30.0 32.6
======= ======= ======= ======= ======= ======= =======
Total assets under management (1) $ 280.7 $ 291.5 $ 294.0 $ 327.0 $ 338.2 $ 347.4 $ 351.4
======= ======= ======= ======= ======= ======= =======
Unit Investment Trusts held in client accounts $ 13.1 $ 12.9 $ 12.4 $ 13.2 $ 13.2 $ 13.3 $ 12.8
Number of Morningstar 4- and 5-star funds 23 25 24 24 22 17 20
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ------- ------- ---------------------
<S> <C> <C> <C> <C>
Revenues:
Investment advisory, admin. & distribution fees 14% $ 893 $ 1,024 15%
Unit Investment Trust revenues - net 24% 37 40 8%
Other revenues 25% 26 37 42%
------- -------
Total revenues 15% 956 1,101 15%
Interest expense -- 23 23 --
------- -------
Total revenues, net of interest expense 15% 933 1,078 16%
------- -------
Expenses:
Employee compensation and benefits 16% 266 317 19%
Mutual fund commission expense 10% 98 92 (6%)
Other expenses 10% 231 264 14%
------- -------
Total expenses 13% 595 673 13%
------- -------
Core income before income taxes 21% 338 405 20%
Provision for income taxes 18% 134 159 19%
------- -------
Core income 22% $ 204 $ 246 21%
======= =======
Pre-tax profit margin 36.2% 37.6%
Assets Under Management
(in billions of dollars):
Money market and institutional liquidity funds
Retail 13%
Institutional 52%
Total money market and institutional liquidity funds 19%
Long-term mutual funds:
Equity / Balanced 19%
Taxable Fixed Income 3%
Tax Exempt Fixed Income (7%)
Annuities 48%
Total long-term mutual funds 11%
Managed accounts:
Private client 34%
Institutional 20%
Total managed accounts 25%
Alternative Investment Strategies 24%
Total assets under management (1) 20%
Unit Investment Trusts held in client accounts 3%
Number of Morningstar 4- and 5-star funds (17%)
</TABLE>
(1) Includes assets managed for Global Private Banking clients.
GLOBAL INVESTMENT MANAGEMENT & PRIVATE BANKING
GLOBAL PRIVATE BANK
(In millions of dollars)
<TABLE>
<CAPTION>
3Q 1999 vs. YTD YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 1998 Increase/ 3Q 3Q
1998 1998 1998 1998 1999 1999 1999 (Decrease) 1998 1999
----- ----- ----- ----- ----- ----- ----- ----------------- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $ 262 $ 283 $ 284 $ 293 $ 272 $ 298 $ 302 6% $ 829 $ 872
Adjusted Operating Expenses 175 178 178 183 173 179 183 3% 531 535
Provision for Loan Losses (7) -- 1 11 8 2 2 100% (6) 12
----- ----- ----- ----- ----- ----- ----- ----- -----
Core Income Before Taxes 94 105 105 99 91 117 117 11% 304 325
Income Taxes 36 40 39 37 34 44 44 13% 115 122
----- ----- ----- ----- ----- ----- ----- ----- -----
Core Income $ 58 $ 65 $ 66 $ 62 $ 57 $ 73 $ 73 11% $ 189 $ 203
===== ===== ===== ===== ===== ===== ===== ===== =====
Average Assets (in billions of dollars) $ 16 $ 16 $ 17 $ 18 $ 18 $ 19 $ 21 24% $ 16 $ 19
===== ===== ===== ===== ===== ===== ===== ===== =====
Return on Assets 1.47% 1.63% 1.54% 1.37% 1.28% 1.54% 1.38% 1.58% 1.43%
===== ===== ===== ===== ===== ===== ===== ===== =====
<CAPTION>
YTD 3Q 1999 vs.
YTD 3Q 1998 Increase/
(Decrease)
---------------------
<S> <C>
Total Revenues, Net of Interest Expense 5%
Adjusted Operating Expenses 1%
Provision for Loan Losses 300%
Core Income Before Taxes 7%
Income Taxes 6%
Core Income 7%
Average Assets (in billions of dollars) 19%
Return on Assets
</TABLE>
Page 19
<PAGE>
INVESTMENT ACTIVITIES
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
3Q 1999 vs. YTD
1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q 1998 Increase/ 3Q
1998 1998 1998 1998 1999 1999 1999 (Decrease) 1998
-------- -------- -------- -------- -------- -------- -------- ----------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Core Income:
Proprietary Investments (1) $ 170 $ 165 $ 60 $ (54) $ 57 $ 133 $ 179 198% $ 395
LDC Debt Sales/Refinancing 145 123 15 19 15 11 11 (27%) 283
Portfolio Gains 87 28 25 50 18 19 4 (84%) 140
-------- -------- -------- -------- -------- -------- -------- --------
Total Core Income $ 402 $ 316 $ 100 $ 15 $ 90 $ 163 $ 194 94% $ 818
======== ======== ======== ======== ======== ======== ======== ========
<CAPTION>
YTD YTD 3Q 1999 vs.
3Q YTD 3Q 1998 Increase/
1999 (Decrease)
-------- ---------------------
<S> <C> <C>
Core Income:
Proprietary Investments (1) $ 369 (7%)
LDC Debt Sales/Refinancing 37 (87%)
Portfolio Gains 41 (71%)
--------
Total Core Income $ 447 (45%)
========
</TABLE>
(1) Includes Venture Capital Activities and certain other corporate investments.
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
INVESTMENT PORTFOLIO (1) 1998 1998 1998 1998 1999 1999 1999
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies $ 8,726 $ 8,693 $ 9,663 $ 9,599 $ 9,595 $ 9,294 $ 9,058
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies 3,912 4,281 4,977 4,144 3,728 3,324 2,983
Corporates (including redeemable preferreds) 27,428 27,176 26,796 26,437 27,346 27,504 27,606
Obligations of states and political subdivisions 9,124 10,107 10,854 10,977 11,023 10,672 10,362
Debt securities issued by foreign governments 1,339 1,166 997 1,603 1,822 1,842 1,631
Held to maturity, at amortized cost 38 36 33 30 28 26 24
-------- -------- -------- -------- -------- -------- --------
Total fixed income 50,567 51,459 53,320 52,790 53,542 52,662 51,664
Equity securities, at market 1,541 1,503 1,368 1,423 1,685 1,819 1,905
Short-term and other 6,709 6,179 7,477 5,757 6,651 5,301 5,524
-------- -------- -------- -------- -------- -------- --------
Total investments held by Insurance companies (2) 58,817 59,141 62,165 59,970 61,878 59,782 59,093
Proprietary Investments 4,347 4,637 4,606 4,732 4,633 4,835 6,099
LDC Debt 5,099 3,941 3,148 3,194 3,290 3,271 3,219
Refinancing 121 118 125 92 90 89 87
-------- -------- -------- -------- -------- -------- --------
Total invested assets $ 68,384 $ 67,837 $ 70,044 $ 67,988 $ 69,891 $ 67,977 $ 68,498
======== ======== ======== ======== ======== ======== ========
After tax unrealized gains / (losses) on invested assets $ 1,782 $ 1,582 $ 1,552 $ 1,358 $ 1,041 $ 197 $ (154)
======== ======== ======== ======== ======== ======== ========
<CAPTION>
3Q 1999 vs.
3Q 1998 Increase/
INVESTMENT PORTFOLIO (1) (Decrease)
-----------------
<S> <C>
Fixed-income investments:
Available for sale, at market:
Mortgage-backed securities - principally
obligations of U.S. Government agencies (6%)
U.S. Treasury securities and obligations of U.S.
Government corporations and agencies (40%)
Corporates (including redeemable preferreds) 3%
Obligations of states and political subdivisions (5%)
Debt securities issued by foreign governments 64%
Held to maturity, at amortized cost (27%)
Total fixed income (3%)
Equity securities, at market 39%
Short-term and other (26%)
Total investments held by Insurance companies (2) (5%)
Proprietary Investments 32%
LDC Debt 2%
Refinancing (30%)
Total invested assets (2%)
After tax unrealized gains / (losses) on invested assets (110%)
</TABLE>
(1) Excluding certain investments held by operating banking segments.
(2) Interest and dividend income from investments held by insurance companies
is included in the operating segments and not included in Core Income
above.
Page 20
<PAGE>
CITIGROUP CONSOLIDATED STATEMENT OF INCOME
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q
1998 1998 1998 1998 1999 1999
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Revenues
Loan interest, including fees $ 5,344 $ 5,625 $ 5,884 $ 5,690 $ 5,888 $ 5,614
Other interest and dividends 5,787 6,010 5,926 5,973 5,414 5,449
Insurance premiums 2,340 2,395 2,423 2,692 2,526 2,616
Commissions and fees 2,953 3,069 2,995 2,901 2,872 3,153
Principal transactions 1,365 878 (1,016) 553 1,770 1,272
Asset management and administration fees (1) 498 553 563 678 955 1,003
Realized gains (losses) from sales of investments 378 332 (16) 146 53 188
Other income 772 1,099 835 806 1,043 1,141
-------- -------- -------- -------- -------- --------
Total revenues 19,437 19,961 17,594 19,439 20,521 20,436
Interest expense 6,641 6,996 7,173 6,685 6,451 6,056
-------- -------- -------- -------- -------- --------
Total revenues, net of interest expense 12,796 12,965 10,421 12,754 14,070 14,380
-------- -------- -------- -------- -------- --------
Provisions for Benefits, Claims, and Credit Losses
Policyholder benefits and claims 1,994 2,047 2,099 2,225 2,048 2,151
Provision for credit losses 595 656 826 674 729 790
-------- -------- -------- -------- -------- --------
Total provisions for benefits, claims, and credit losses 2,589 2,703 2,925 2,899 2,777 2,941
-------- -------- -------- -------- -------- --------
Operating Expenses
Non-insurance compensation and benefits 3,491 3,429 2,819 3,597 3,755 3,615
Insurance underwriting, acquisition and operating 812 811 756 895 825 802
Restructuring / Merger Items -- (324) -- 1,119 (130) 47
Other operating 2,436 2,764 2,764 3,182 2,871 3,060
-------- -------- -------- -------- -------- --------
Total operating expenses 6,739 6,680 6,339 8,793 7,321 7,524
-------- -------- -------- -------- -------- --------
Income before Income Taxes, Minority Interest and
Cumulative Effect of Accounting Changes 3,468 3,582 1,157 1,062 3,972 3,915
Provision for income taxes 1,249 1,290 375 320 1,423 1,402
Minority interest, net of income taxes 58 52 53 65 60 65
-------- -------- -------- -------- -------- --------
Income before Cumulative Effect of Accounting
Changes 2,161 2,240 729 677 2,489 2,448
Cumulative effect of accounting changes -- -- -- -- (127) --
-------- -------- -------- -------- -------- --------
Net Income $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362 $ 2,448
======== ======== ======== ======== ======== ========
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
1999 (Decrease) 1998 1999 (Decrease)
------- ----------------- ------- ------- ---------------------
<S> <C> <C> <C> <C> <C>
Revenues
Loan interest, including fees $ 5,784 (2%) $16,853 $17,286 3%
Other interest and dividends 5,417 (9%) 17,723 16,280 (8%)
Insurance premiums 2,636 9% 7,158 7,778 9%
Commissions and fees 3,149 5% 9,017 9,174 2%
Principal transactions 954 194% 1,227 3,996 226%
Asset management and administration fees (1) 1,056 88% 1,614 3,014 87%
Realized gains (losses) from sales of investments 35 319% 694 276 (60%)
Other income 1,066 28% 2,706 3,250 20%
------- ------- -------
Total revenues 20,097 14% 56,992 61,054 7%
Interest expense 6,076 (15%) 20,810 18,583 (11%)
------- ------- -------
Total revenues, net of interest expense 14,021 35% 36,182 42,471 17%
------- ------- -------
Provisions for Benefits, Claims, and Credit Losses
Policyholder benefits and claims 2,258 8% 6,140 6,457 5%
Provision for credit losses 632 (23%) 2,077 2,151 4%
------- ------- -------
Total provisions for benefits, claims, and credit losses 2,890 (1%) 8,217 8,608 5%
------- ------- -------
Operating Expenses
Non-insurance compensation and benefits 3,531 25% 9,739 10,901 12%
Insurance underwriting, acquisition and operating 770 2% 2,379 2,397 1%
Restructuring / Merger Items 22 NM (324) (61) (81%)
Other operating 2,938 6% 7,964 8,869 11%
------- ------- -------
Total operating expenses 7,261 15% 19,758 22,106 12%
------- ------- -------
Income before Income Taxes, Minority Interest and
Cumulative Effect of Accounting Changes 3,870 234% 8,207 11,757 43%
Provision for income taxes 1,379 268% 2,914 4,204 44%
Minority interest, net of income taxes 56 6% 163 181 11%
------- ------- -------
Income before Cumulative Effect of Accounting
Changes 2,435 234% 5,130 7,372 44%
Cumulative effect of accounting changes -- -- -- (127) NM
------- ------- -------
Net Income $ 2,435 234% $ 5,130 $ 7,245 41%
======= ======= =======
</TABLE>
(1) The 1999 quarters include asset management and administrative fees for
Citicorp subsidiaries, previously reflected in commissions and fees.
NM - Not meaningful
Page 21
<PAGE>
CITIGROUP EARNINGS ANALYSIS - MANAGED BASIS
(In millions of dollars) citigroup[LOGO]
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense $12,796 $12,965 $10,421 $12,754 $14,070 $14,380 $14,021
Effect of Credit Card Securitization Activity 462 581 576 568 588 570 552
------- ------- ------- ------- ------- ------- -------
Adjusted Revenues, Net of Interest Expense 13,258 13,546 10,997 13,322 14,658 14,950 14,573
Total Operating Expenses 6,739 6,680 6,339 8,793 7,321 7,524 7,261
Restructuring / Merger Items (1) -- 324 -- (1,119) 130 (47) (22)
------- ------- ------- ------- ------- ------- -------
Adjusted Operating Expenses 6,739 7,004 6,339 7,674 7,451 7,477 7,239
Provisions for Benefits, Claims and Credit Losses 2,589 2,703 2,925 2,899 2,777 2,941 2,890
Effect of Credit Card Securitization Activity 462 581 576 568 588 570 552
------- ------- ------- ------- ------- ------- -------
Adjusted Provisions for Benefits, Claims and Credit Losses 3,051 3,284 3,501 3,467 3,365 3,511 3,442
Core Income Before Income Taxes and Minority Interest 3,468 3,258 1,157 2,181 3,842 3,962 3,892
Taxes on Core Income 1,249 1,157 375 713 1,367 1,420 1,386
Minority Interest, Net of Income Taxes 58 52 53 65 60 65 56
------- ------- ------- ------- ------- ------- -------
Core Income 2,161 2,049 729 1,403 2,415 2,477 2,450
Restructuring / Merger Items After-tax (1) -- 191 -- (726) 74 (29) (15)
Cumulative Effect of Accounting Changes (2) -- -- -- -- (127) -- --
------- ------- ------- ------- ------- ------- -------
Net Income $ 2,161 $ 2,240 $ 729 $ 677 $ 2,362 $ 2,448 $ 2,435
======= ======= ======= ======= ======= ======= =======
<CAPTION>
3Q 1999 vs. YTD YTD YTD 3Q 1999 vs.
3Q 1998 Increase/ 3Q 3Q YTD 3Q 1998 Increase/
(Decrease) 1998 1999 (Decrease)
----------------- ------- ------- ---------------------
<S> <C> <C> <C> <C>
Total Revenues, Net of Interest Expense 35% $36,182 $42,471 17%
Effect of Credit Card Securitization Activity (4%) 1,619 1,710 6%
------- -------
Adjusted Revenues, Net of Interest Expense 33% 37,801 44,181 17%
Total Operating Expenses 15% 19,758 22,106 12%
Restructuring / Merger Items (1) NM 324 61 (81%)
------- -------
Adjusted Operating Expenses 14% 20,082 22,167 10%
Provisions for Benefits, Claims and Credit Losses (1%) 8,217 8,608 5%
Effect of Credit Card Securitization Activity (4%) 1,619 1,710 6%
------- -------
Adjusted Provisions for Benefits, Claims and Credit Losses (2%) 9,836 10,318 5%
Core Income Before Income Taxes and Minority Interest 236% 7,883 11,696 48%
Taxes on Core Income 270% 2,781 4,173 50%
Minority Interest, Net of Income Taxes 6% 163 181 11%
------- -------
Core Income 236% 4,939 7,342 49%
Restructuring / Merger Items After-tax (1) NM 191 30 (84%)
Cumulative Effect of Accounting Changes (2) -- -- (127) NM
------- -------
Net Income 234% $ 5,130 $ 7,245 41%
======= =======
</TABLE>
(1) Includes restructuring charge of $1,122 million pre-tax ($703 million
after-tax) and merger-related expenses of $65 million in the 1998 fourth
quarter, and a charge of $49 million pre-tax ($31 million after-tax)
related to severance in the 1999 third quarter; credits for reversals of
prior charges of $324 million pre-tax ($191 million after-tax) in the 1998
second quarter, $68 million pre-tax ($42 million after-tax) in the 1998
fourth quarter, $211 million pre-tax ($125 million after-tax) in the 1999
first quarter, and $68 million pre-tax ($41 million after-tax) in the 1999
third quarter. The 1999 third, second and first quarters also included $41
million pre-tax ($25 million after-tax), $47 million pre-tax ($29 million
after-tax) and $81 million pre-tax ($51 million after-tax), respectively,
of accelerated depreciation.
(2) First quarter 1999 accounting changes refer to adoption of Statement of
Position ("SOP") 97-3, "Accounting by Insurance and Other Enterprises for
Insurance-Related Assessments" (SOP 97-3) of ($135) million; adoption of
SOP 98-7, "Deposits Accounting: Accounting for Insurance and Reinsurance
Contracts That Do Not Transfer Insurance Risk" of $23 million; and the
adoption of SOP 98-5, "Reporting on the Costs of Start-Up Activities" of
($15) million.
NM - Not meaningful
Page 22
<PAGE>
citigroup[LOGO]
CONSUMER LOAN DELINQUENCY AMOUNTS, NET CREDIT LOSSES AND RATIOS
(In millions of dollars, except loan amounts in billions)
<TABLE>
<CAPTION>
EOP Average
Loans 90 Days Or More Past Due (1) Loans Net Credit Losses (1)
------- --------------------------------- ------- --------------------------------
3Q 1999 3Q 1999 2Q 1999 3Q 1998 3Q 1999 3Q 1999 2Q 1999 3Q 1998
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Citibanking
North America $ 7.4 $ 64 $ 92 $ 109 $ 7.5 $ 20 $ 23 $ 27
Ratio 0.87% 1.20% 1.25% 1.03% 1.20% 1.35%
Mortgage Banking 27.6 629 575 623 27.1 8 11 17
Ratio 2.28% 2.09% 2.69% 0.12% 0.17% 0.29%
U.S. Bankcards 70.1 995 954 939 69.7 773 803 805
Ratio 1.42% 1.36% 1.49% 4.40% 4.63% 5.15%
Other Cards 2.3 25 33 34 2.4 24 22 17
Ratio 1.09% 1.31% 1.41% 3.82% 3.17% 2.99%
CitiFinancial 14.6 186 172 162 14.0 71 70 71
Ratio 1.27% 1.26% 1.45% 2.00% 2.14% 2.61%
Europe, Middle
East and Africa 17.5 953 899 955 17.2 69 70 68
Ratio 5.45% 5.46% 5.52% 1.60% 1.71% 1.64%
Asia Pacific 24.0 450 509 384 23.7 73 76 57
Ratio 1.87% 2.17% 1.87% 1.23% 1.33% 1.12%
Latin America 7.9 325 346 243 7.9 110 124 70
Ratio 4.10% 4.32% 3.05% 5.55% 6.17% 3.48%
Global Private Bank 21.1 145 162 195 19.9 2 2 1
Ratio 0.69% 0.88% 1.19% 0.05% 0.05% 0.02%
Other 0.9 3 2 1 0.7 1 1 --
------- ------- ------- ------- ------- ------- ------- -------
Total Managed 193.4 3,775 3,744 3,645 190.1 1,151 1,202 1,133
Ratio 1.95% 1.98% 2.13% 2.40% 2.58% 2.68%
Securitization
Activities:
Securitized Credit
Card Receivables (48.5) (704) (652) (614) (47.9) (525) (541) (542)
Loans Held for Sale (5.2) (37) (35) (38) (5.2) (27) (29) (34)
------- ------- ------- ------- ------- ------- ------- -------
(53.7) (741) (687) (652) (53.1) (552) (570) (576)
Total Loans $ 139.7 $ 3,034 $ 3,057 $ 2,993 $ 137.0 $ 599 $ 632 $ 557
======= ======= ======= ======= ======= ======= ======= =======
Ratio 2.17% 2.27% 2.39% 1.73% 1.89% 1.80%
</TABLE>
(1) The ratios of 90 days or more past due and net credit losses are
calculated based on end-of-period and average loans, respectively, both
net of unearned income.
Page 23
<PAGE>
citigroup[LOGO]
DETAILS OF CREDIT LOSS EXPERIENCE
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Allowance for credit
losses at beginning
of period $ 6,137 $6,159 $6,529 $6,604 $6,617 $6,662 $6,743
------- ------ ------ ------ ------ ------ ------
Provision for credit losses:
Consumer 540 628 594 605 618 680 595
Commercial 55 28 232 69 111 110 37
Gross credit losses
Consumer 618 716 686 715 695 772 744
Commercial 84 82 272 138 131 134 103
------- ------ ------ ------ ------ ------ ------
702 798 958 853 826 906 847
------- ------ ------ ------ ------ ------ ------
Credit recoveries
Consumer 112 127 129 129 118 140 145
Commercial 29 54 40 47 20 24 16
------- ------ ------ ------ ------ ------ ------
141 181 169 176 138 164 161
------- ------ ------ ------ ------ ------ ------
Net credit losses 561 617 789 677 688 742 686
------- ------ ------ ------ ------ ------ ------
Other -- net (1) (12) 331 38 16 4 33 17
------- ------ ------ ------ ------ ------ ------
Allowance for credit
losses at end of period $ 6,159 $6,529 $6,604 $6,617 $6,662 $6,743 $6,706
======= ====== ====== ====== ====== ====== ======
Net consumer credit losses $ 506 $ 589 $ 557 $ 586 $ 577 $ 632 $ 599
As a percentage of average
consumer loans 1.75% 1.93% 1.80% 1.80% 1.78% 1.89% 1.73%
Net commercial credit losses $ 55 $ 28 $ 232 $ 91 $ 111 $ 110 $ 87
As a percentage of average
commercial loans 0.28% 0.13% 1.07% 0.39% 0.46% 0.48% 0.37%
ALLOWANCE FOR CREDIT LOSSES
Consumer (1) $2,830 $3,200 $3,275 $3,310 $3,355 $3,436 $3,449
Commercial 3,329 3,329 3,329 3,307 3,307 3,307 3,257
------- ------ ------ ------ ------ ------ ------
Total Allowance for
Credit Losses $6,159 $6,529 $6,604 $6,617 $6,662 $6,743 $6,706
======= ====== ====== ====== ====== ====== ======
Allowance As a Percent
of Total Loans:
Consumer 2.41% 2.67% 2.62% 2.50% 2.56% 2.55% 2.47%
Commercial 3.89% 3.80% 3.68% 3.69% 3.46% 3.38% 3.34%
Total 3.03% 3.15% 3.06% 2.98% 2.94% 2.90% 2.83%
</TABLE>
(1) The 1998 second quarter reflects the addition of $320 million of credit
reserves related to the acquisition of the Universal Card portfolio.
Page 24
<PAGE>
citigroup[LOGO]
CITIGROUP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
CASH BASIS AND
RENEGOTIATED LOANS
Commercial Cash-Basis Loans
Collateral Dependent (at
lower of cost or
collateral value) (1) $ 242 $ 193 $ 170 $ 394 $ 358 $ 214 $ 277
Other 1,102 1,100 1,110 1,201 1,277 1,341 1,232
------ ------ ------ ------ ------ ------ ------
Total Cash-Basis Loans $1,344 $1,293 $1,280 $1,595 $1,635 $1,555 $1,509
====== ====== ====== ====== ====== ====== ======
Commercial Cash-Basis Loans
Emerging Markets $ 953 $ 981 $ 982 $1,062 $1,095 $1,197 $1,154
Global Relationship Banking 378 300 286 268 308 279 302
Insurance Subsidiaries -- -- -- 252 218 66 40
Investment Activities 13 12 12 13 14 13 13
------ ------ ------ ------ ------ ------ ------
Total Cash-Basis Loans $1,344 $1,293 $1,280 $1,595 $1,635 $1,555 $1,509
====== ====== ====== ====== ====== ====== ======
Commercial Renegotiated Loans $ 61 $ 45 $ 48 $ 45 $ 47 $ 50 $ 68
====== ====== ====== ====== ====== ====== ======
Consumer Loans on which
Accrual of Interest
has been Suspended $2,013 $2,031 $2,107 $2,283 $2,252 $2,259 $2,214
====== ====== ====== ====== ====== ====== ======
OTHER REAL ESTATE OWNED (2)
Consumer $ 258 $ 199 $ 260 $ 254 $ 217 $ 213 $ 211
------ ------ ------ ------ ------ ------ ------
Emerging Markets 21 24 26 27 26 28 50
Global Relationship Banking 329 324 319 235 212 178 178
Insurance Subsidiaries 189 191 211 234 225 428 428
------ ------ ------ ------ ------ ------ ------
Total Commercial 539 539 556 496 463 634 656
------ ------ ------ ------ ------ ------ ------
Total $ 797 $ 738 $ 816 $ 750 $ 680 $ 847 $ 867
====== ====== ====== ====== ====== ====== ======
ASSETS PENDING DISPOSITION (3) $ 103 $ 104 $ 103 $ 100 $ 95 $ 89 $ 87
====== ====== ====== ====== ====== ====== ======
</TABLE>
(1) A cash-basis loan is defined as collateral dependent when repayment is
expected to be provided solely by the underlying collateral and there are
no other available and reliable sources of repayment, in which case the
loans are written down to the lower of cost or collateral value.
(2) Represents repossessed real estate, carried at lower of cost or collateral
value.
(3) Represents consumer residential mortgage loans that have a high
probability of foreclosure, carried at lower of cost or collateral value.
MANAGED ASSETS AND INSURANCE INVESTMENTS
(In billions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q 3Q
1998 1998 1998 1998 1999 1999 1999
------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
SSB Citi Asset Management Group $280.7 $291.5 $294.0 $327.0 $338.2 $347.4 $351.4
SSB - Financial Consultant
managed accounts 13.3 14.3 13.8 16.5 18.6 20.2 21.4
Travelers Life and Annuity 25.2 24.3 25.7 26.0 26.6 27.3 27.5
------ ------ ------ ------ ------ ------ ------
Total assets managed for
third parties 319.2 330.1 333.5 369.5 383.4 394.9 400.3
Consulting Group externally
managed assets 67.1 69.3 63.9 71.9 73.1 76.8 74.6
Other investments held by
Insurance companies 37.1 38.2 40.1 37.6 39.0 39.3 38.6
------ ------ ------ ------ ------ ------ ------
Total managed assets and
insurance investments $423.4 $437.6 $437.5 $479.0 $495.5 $511.0 $513.5
====== ====== ====== ====== ====== ====== ======
</TABLE>
Page 25
<PAGE>
citigroup[LOGO]
CITICORP SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q 2Q
1998 1998 1998 1998 1999 1999
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(taxable equivalent basis)
Net Interest Revenue $ 3,111 $ 3,273 $ 3,400 $ 3,583 $ 3,587 $ 3,651
Effect of Credit Card Securitization Activity 642 913 956 1,042 1,084 1,020
------- ------- ------- ------- ------- -------
Total Adjusted $ 3,753 $ 4,186 $ 4,356 $ 4,625 $ 4,671 $ 4,671
======= ======= ======= ======= ======= =======
Average Interest Earning Assets (in billions of dollars) $ 277.6 $ 288.9 $ 292.4 $ 299.7 $ 300.8 $ 304.4
Effect of Credit Card Securitization Activity 27.6 37.0 40.2 41.5 44.3 46.7
------- ------- ------- ------- ------- -------
Total Adjusted $ 305.2 $ 325.9 $ 332.6 $ 341.2 $ 345.1 $ 351.1
======= ======= ======= ======= ======= =======
Net Interest Margin (%) 4.54% 4.54% 4.61% 4.74% 4.84% 4.81%
Effect of Credit Card Securitization Activity 0.45% 0.61% 0.59% 0.64% 0.65% 0.53%
------- ------- ------- ------- ------- -------
Total Adjusted 4.99% 5.15% 5.20% 5.38% 5.49% 5.34%
======= ======= ======= ======= ======= =======
TRADING RELATED REVENUES
By Business Sector:
Global Corporate:
Emerging Markets $ 271 $ 259 $ 234 $ 174 $ 301 $ 221
Global Relationship Banking 383 357 63 310 448 285
------- ------- ------- ------- ------- -------
Total Global Corporate 654 616 297 484 749 506
Global Consumer and Other 74 114 95 101 123 94
------- ------- ------- ------- ------- -------
Total $ 728 $ 730 $ 392 $ 585 $ 872 $ 600
======= ======= ======= ======= ======= =======
By Trading Activity:
Foreign Exchange $ 412 $ 425 $ 403 $ 373 $ 430 $ 308
Derivative 196 182 94 223 303 192
Fixed Income 70 31 (30) (11) 32 21
Other 50 92 (75) -- 107 79
------- ------- ------- ------- ------- -------
Total $ 728 $ 730 $ 392 $ 585 $ 872 $ 600
======= ======= ======= ======= ======= =======
By Income Statement Line:
Foreign Exchange $ 349 $ 465 $ 474 $ 340 $ 488 $ 368
Trading Account 236 98 (159) 90 304 138
Other 143 167 77 155 80 94
------- ------- ------- ------- ------- -------
Total $ 728 $ 730 $ 392 $ 585 $ 872 $ 600
======= ======= ======= ======= ======= =======
<CAPTION>
YTD YTD
3Q 3Q 3Q
1999 1998 1999
------- ------- -------
<S> <C> <C> <C>
NET INTEREST REVENUE STATISTICS
(taxable equivalent basis)
Net Interest Revenue $ 3,660 $ 9,784 $10,898
Effect of Credit Card Securitization Activity 1,043 2,511 3,147
------- ------- -------
Total Adjusted $ 4,703 $12,295 $14,045
======= ======= =======
Average Interest Earning Assets (in billions of dollars) $ 307.9 $ 286.3 $ 304.4
Effect of Credit Card Securitization Activity 47.9 34.9 46.3
------- ------- -------
Total Adjusted $ 355.8 $ 321.2 $ 350.7
======= ======= =======
Net Interest Margin (%) 4.72% 4.57% 4.79%
Effect of Credit Card Securitization Activity 0.52% 0.55% 0.56%
------- ------- -------
Total Adjusted 5.24% 5.12% 5.35%
======= ======= =======
TRADING RELATED REVENUES
By Business Sector:
Global Corporate:
Emerging Markets $ 245 $ 764 $ 767
Global Relationship Banking 313 803 1,046
------- ------- -------
Total Global Corporate 558 1,567 1,813
Global Consumer and Other 127 283 344
------- ------- -------
Total $ 685 $ 1,850 $ 2,157
======= ======= =======
By Trading Activity:
Foreign Exchange $ 394 $ 1,240 $ 1,132
Derivative 197 472 692
Fixed Income 31 71 84
Other 63 67 249
------- ------- -------
Total $ 685 $ 1,850 $ 2,157
======= ======= =======
By Income Statement Line:
Foreign Exchange $ 358 $ 1,288 $ 1,214
Trading Account 252 175 694
Other 75 387 249
------- ------- -------
Total $ 685 $ 1,850 $ 2,157
======= ======= =======
</TABLE>
Page 26
<PAGE>
citigroup[LOGO]
TRAVELERS PROPERTY CASUALTY CORP. SUPPLEMENTAL DATA
(In millions of dollars)
<TABLE>
<CAPTION>
1Q 2Q 3Q 4Q 1Q
1998 1998 1998 1998 1999
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
GAAP Consolidated Statement of Operations
Revenues:
Premiums $ 1,898.2 $ 1,902.8 $ 1,974.9 $ 2,020.2 $ 1,964.8
Net investment income 508.3 519.3 501.4 571.0 503.2
Fee income 82.0 76.9 74.2 72.7 66.5
Realized investment gains (losses) 66.4 9.6 32.7 34.8 15.6
Other revenues 39.3 23.6 17.2 25.6 22.5
--------- --------- --------- --------- ---------
Total revenues 2,594.2 2,532.2 2,600.4 2,724.3 2,572.6
--------- --------- --------- --------- ---------
Claims and expenses:
Claims and claim adjustment expenses* 1,427.9 1,430.8 1,517.7 1,529.4 1,449.1
Policyholder dividends 13.0 13.2 13.3 1.9 10.4
Amortization of deferred acquisition costs 285.9 303.7 304.7 302.2 314.6
Interest expense 41.0 40.4 39.9 39.9 39.9
General and administrative expenses 340.5 318.0 300.1 350.3 307.9
--------- --------- --------- --------- ---------
Total claims and expenses 2,108.3 2,106.1 2,175.7 2,223.7 2,121.9
--------- --------- --------- --------- ---------
Income before federal income taxes and cumulative
effect of changes in accounting principles 485.9 426.1 424.7 500.6 450.7
Federal income taxes 138.8 113.6 109.4 132.7 117.1
--------- --------- --------- --------- ---------
Income before cumulative effect of changes in
accounting principles 347.1 312.5 315.3 367.9 333.6
Cumulative effect of change in accounting for insurance-
related assessments, net of tax -- -- -- -- (160.5)
Cumulative effect of change in accounting for insurance and
reinsurance contracts that do not transfer insurance risk,
net of tax -- -- -- -- 27.4
--------- --------- --------- --------- ---------
Net income** $ 347.1 $ 312.5 $ 315.3 $ 367.9 $ 200.5
========= ========= ========= ========= =========
* Includes pre-tax:
Catastrophe losses, net of reinsurance $ 13.2 $ 36.2 $ 56.5 $ -- $ 12.5
Asbestos and environmental losses $ 31.0 $ 30.0 $ 28.0 $ 27.0 $ 29.0
** Includes, net of taxes:
Net investment income $ 364.8 $ 375.5 $ 366.1 $ 412.2 $ 368.9
Realized investment gains (losses) $ 43.2 $ 6.2 $ 21.3 $ 22.5 $ 10.1
Statutory underwriting
Net written premiums (1) $ 2,017.8 $ 1,994.7 $ 2,076.9 $ 2,014.2 $ 2,097.4
Net earned premiums $ 1,897.0 $ 1,896.1 $ 1,974.9 $ 2,020.2 $ 1,964.8
Losses and loss adjustment expenses (2) 1,383.2 1,387.7 1,477.5 1,480.4 1,411.8
Other underwriting expenses 572.0 587.7 585.2 575.2 587.7
--------- --------- --------- --------- ---------
Statutory underwriting loss (58.2) (79.3) (87.8) (35.4) (34.7)
Policyholder dividends 13.0 13.2 13.3 1.9 10.4
========= ========= ========= ========= =========
Statutory underwriting loss after policyholder
dividends $ (71.2) $ (92.5) $ (101.1) $ (37.3) $ (45.1)
========= ========= ========= ========= =========
Reserves for losses and loss adjustment expenses $21,323.2 $21,141.8 $20,958.4 $20,726.7 $20,660.1
Decrease in reserves (3) $ (73.0) $ (181.4) $ (183.4) $ (231.7) $ (66.6)
Statutory surplus $ 6,409.1 $ 6,640.4 $ 6,754.3 $ 7,079.1 $ 7,260.0
Net written premiums/surplus (4) 1.21:1 1.18:1 1.18:1 1.14:1 1.13:1
Statutory combined ratio: (1), (2), (5), (6)
Loss and loss adjustment expense ratio 72.9% 73.2% 74.8% 73.3% 71.9%
Other underwriting expense ratio 28.3% 29.5% 28.2% 28.6% 28.0%
========= ========= ========= ========= =========
Combined ratio 101.2% 102.7% 103.0% 101.9% 99.9%
========= ========= ========= ========= =========
<CAPTION>
3Q 1999 vs. YTD
2Q 3Q 3Q 1998 Increase/ 3Q
1999 1999 (Decrease) 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
GAAP Consolidated Statement of Operations
Revenues:
Premiums $ 2,005.9 $ 2,025.8 3% $ 5,775.9
Net investment income 509.5 523.5 4% 1,529.0
Fee income 67.9 69.3 (7%) 233.1
Realized investment gains (losses) 31.6 (16.8) (151%) 108.7
Other revenues 19.9 16.3 (5%) 80.1
--------- --------- ---------
Total revenues 2,634.8 2,618.1 1% 7,726.8
--------- --------- ---------
Claims and expenses:
Claims and claim adjustment expenses* 1,492.3 1,576.4 4% 4,376.4
Policyholder dividends 8.1 14.4 8% 39.5
Amortization of deferred acquisition costs 310.9 325.3 7% 894.3
Interest expense 39.9 38.7 (3%) 121.3
General and administrative expenses 303.3 233.6 (22%) 958.6
--------- --------- ---------
Total claims and expenses 2,154.5 2,188.4 1% 6,390.1
--------- --------- ---------
Income before federal income taxes and cumulative
effect of changes in accounting principles 480.3 429.7 1% 1,336.7
Federal income taxes 126.0 109.2 -- 361.8
--------- --------- ---------
Income before cumulative effect of changes in
accounting principles 354.3 320.5 2% 974.9
Cumulative effect of change in accounting for insurance-
related assessments, net of tax -- -- NM --
Cumulative effect of change in accounting for insurance and
reinsurance contracts that do not transfer insurance risk,
net of tax -- -- NM --
--------- --------- ---------
Net income** $ 354.3 $ 320.5 2% $ 974.9
========= ========= =========
* Includes pre-tax:
Catastrophe losses, net of reinsurance $ 51.0 $ 100.8 78% $ 105.9
Asbestos and environmental losses $ 29.0 $ 28.0 -- $ 89.0
** Includes, net of taxes:
Net investment income $ 373.4 $ 382.0 4% $ 1,106.4
Realized investment gains (losses) $ 20.5 $ (11.1) (152%) $ 70.7
Statutory underwriting
Net written premiums (1) $ 2,045.6 $ 2,084.2 -- $ 6,089.4
Net earned premiums $ 2,005.9 $ 2,025.8 3% $ 5,768.0
Losses and loss adjustment expenses (2) 1,454.3 1,631.5 10% 4,248.4
Other underwriting expenses 576.3 608.5 4% 1,744.9
--------- --------- ---------
Statutory underwriting loss (24.7) (214.2) 144% (225.3)
Policyholder dividends 8.1 14.4 8% 39.5
========= ========= =========
Statutory underwriting loss after policyholder
dividends $ (32.8) $ (228.6) 126% $ (264.8)
========= ========= =========
Reserves for losses and loss adjustment expenses $20,445.6 $20,199.2 (4%) $20,958.4
Decrease in reserves (3) $ (214.5) $ (246.4) 34% $ (437.8)
Statutory surplus $ 7,493.1 $ 7,166.0 6% $ 6,754.3
Net written premiums/surplus (4) 1.10:1 1.15:1 1.18:1
Statutory combined ratio: (1), (2), (5), (6)
Loss and loss adjustment expense ratio 72.5% 80.5% 73.7%
Other underwriting expense ratio 28.2% 29.2% 28.7%
========= ========= =========
Combined ratio 100.7% 109.7% 102.4%
========= ========= =========
<CAPTION>
YTD YTD 3Q 1999 vs.
3Q YTD 3Q 1998 Increase/
1999 (Decrease)
--------- ---------
<S> <C> <C>
GAAP Consolidated Statement of Operations
Revenues:
Premiums $ 5,996.5 4%
Net investment income 1,536.2 --
Fee income 203.7 (13%)
Realized investment gains (losses) 30.4 (72%)
Other revenues 58.7 (27%)
---------
Total revenues 7,825.5 1%
---------
Claims and expenses:
Claims and claim adjustment expenses* 4,517.8 3%
Policyholder dividends 32.9 (17%)
Amortization of deferred acquisition costs 950.8 6%
Interest expense 118.5 (2%)
General and administrative expenses 844.8 (12%)
---------
Total claims and expenses 6,464.8 1%
---------
Income before federal income taxes and cumulative
effect of changes in accounting principles 1,360.7 2%
Federal income taxes 352.3 (3%)
---------
Income before cumulative effect of changes in
accounting principles 1,008.4 3%
Cumulative effect of change in accounting for insurance-
related assessments, net of tax (160.5) NM
Cumulative effect of change in accounting for insurance and
reinsurance contracts that do not transfer insurance risk,
net of tax 27.4 NM
---------
Net income** $ 875.3 (10%)
=========
* Includes pre-tax:
Catastrophe losses, net of reinsurance $ 164.3 55%
Asbestos and environmental losses $ 86.0 (3%)
** Includes, net of taxes:
Net investment income $ 1,124.3 2%
Realized investment gains (losses) $ 19.5 (72%)
Statutory underwriting
Net written premiums (1) $ 6,227.2 2%
Net earned premiums $ 5,996.5 4%
Losses and loss adjustment expenses (2) 4,497.6 6%
Other underwriting expenses 1,772.5 2%
---------
Statutory underwriting loss (273.6) 21%
Policyholder dividends 32.9 (17%)
---------
Statutory underwriting loss after policyholder
dividends $ (306.5) (16%)
=========
Reserves for losses and loss adjustment expenses $20,199.2 (4%)
Decrease in reserves (3) $ (527.5) 20%
Statutory surplus $ 7,166.0 6%
Net written premiums/surplus (4) 1.15:1
Statutory combined ratio: (1), (2), (5), (6)
Loss and loss adjustment expense ratio 75.0%
Other underwriting expense ratio 28.5%
=========
Combined ratio 103.5%
=========
</TABLE>
(1) The 1999 first quarter and nine month net written premiums include an
increase of $71.7 million due to an adjustment associated with a
reinsurance transaction.
(2) The 1999 third quarter and nine months include the effects of a settlement
of an asbestos liability, which increased losses and loss adjustment
expenses, for statutory purposes only, by $105.2 million.
(3) Payments on environmental and cumulative injury claims incurred in prior
years are reflected as a decrease in reserves. Such payments do not have
any impact on reported GAAP earnings.
(4) Based on 12 month rolling net written premiums.
(5) Before policyholder dividends.
(6) Excluding the transactions discussed in footnotes (1) and (2) above, the
statutory loss and loss adjustment expense ratio, other underwriting
expense ratio and combined ratio for the 1999 first quarter were 71.9%,
27.7% and 99.6%, respectively, and for the 1999 third quarter were 75.3%,
29.2% and 104.5%, respectively, and for the 1999 nine months were 73.2%,
28.4% and 101.6%, respectively.
Page 27
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: October 19, 1999 CITIGROUP INC.
By: /s/ Roger W. Trupin
-------------------------------
Name: Roger W. Trupin
Title: Controller
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