<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1995 Commission file number 33-23376
-------------- --------
Aetna Life Insurance and Annuity Company
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Connecticut 71-0294708
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S Employer
incorporation or organization) Identification No.)
151 Farmington Avenue, Hartford, Connecticut 06156
- --------------------------------------------------------------------------------
(Address of principal executive offices) (ZIP Code)
Registrant's telephone number, including area code (203) 273-0978
------------------
None
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No_____
-----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Shares Outstanding
Title of Class at April 30, 1995
- -------------- -----------------
Common Stock,
par value $50 55,000
The registrant meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is therefore filing this Form with the reduced disclosure
format.
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Quarterly Report For Period Ended March 31, 1995 on Form 10-Q
TABLE OF CONTENTS
-----------------
<TABLE>
<CAPTION>
PAGE
----
PART I. FINANCIAL INFORMATION
<S> <C>
Item 1. Financial Statements
Consolidated Statements of Income....................... 3
Consolidated Balance Sheets............................. 4
Consolidated Statements of Changes in Shareholder's
Equity.................................................. 5
Consolidated Statements of Cash Flows................... 6
Condensed Notes to Consolidated Financial
Statements.............................................. 7
Independent Auditors' Review Report..................... 8
Item 2. Management's Analysis of the Results of
Operations............................................ 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings..................................... 14
Signatures..................................................... 15
</TABLE>
(2)
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Statements of Income
(millions)
<TABLE>
<CAPTION>
3 Months Ended March 31,
-----------------------------
1995 1994
---- ----
<S> <C> <C>
Revenue:
Premiums $32.2 $25.4
Charges assessed against policyholders 74.9 68.2
Net investment income 235.8 231.1
Net realized capital gains 5.1 0.8
Other income 12.7 2.1
-------- --------
Total revenue 360.7 327.6
Benefits and expenses:
Current and future benefits 215.1 206.4
Operating expenses 75.3 60.3
Amortization of deferred policy acquisition costs 11.2 13.1
-------- --------
Total benefits and expenses 301.6 279.8
Income before federal income taxes 59.1 47.8
Federal income taxes 18.8 15.6
-------- --------
Net income $40.3 $32.2
======== ========
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(3)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Balance Sheets
(millions)
<TABLE>
<CAPTION>
March 31, December 31,
Assets 1995 1994
- ------ ---- ----
<S> <C> <C>
Investments:
Debt securities, available for sale:
(amortized cost: $10,967.1 and $10,577.8) $10,897.4 $10,191.4
Equity securities, available for sale:
Non-redeemable preferred stock (cost: $43.3 and $43.3) 46.3 47.2
Investment in affiliated mutual funds (cost: $221.2 and $187.1) 221.3 181.9
Short-term investments 68.6 98.0
Mortgage loans 9.7 9.9
Policy loans 274.7 248.7
Limited partnership 24.5 24.4
-------------- ---------------
Total investments 11,542.5 10,801.5
Cash and cash equivalents 660.1 623.3
Accrued investment income 148.5 142.2
Premiums due and other receivables 153.4 75.8
Deferred policy acquisition costs 1,203.7 1,172.0
Reinsurance loan to affiliate 675.7 690.3
Other assets 24.1 15.9
Separate Accounts assets 7,888.9 7,420.8
-------------- ---------------
Total assets $22,296.9 $20,941.8
============== ===============
Liabilities and Shareholder's Equity
- ------------------------------------
Liabilities:
Future policy benefits $3,027.0 $2,920.4
Unpaid claims and claim expenses 21.9 23.8
Policyholders' funds left with the Company 9,382.3 8,949.3
-------------- ---------------
Total insurance reserve liabilities 12,431.2 11,893.5
Other liabilities 525.8 302.1
Federal income taxes:
Current 13.8 3.4
Deferred 151.7 233.5
Separate Accounts liabilities 7,888.9 7,420.8
-------------- ---------------
Total liabilities 21,011.4 19,853.3
-------------- ---------------
Shareholder's equity:
Common stock, par value $50 (100,000 shares
authorized; 55,000 shares issued and outstanding) 2.8 2.8
Paid-in capital 407.6 407.6
Net unrealized capital losses (32.3) (189.0)
Retained earnings 907.4 867.1
-------------- ---------------
Total shareholder's equity 1,285.5 1,088.5
-------------- ---------------
Total liabilities and shareholder's equity $22,296.9 $20,941.8
============== ===============
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(4)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Statements of Changes in Shareholder's Equity
(millions)
<TABLE>
<CAPTION>
3 Months Ended March 31,
----------------------------
1995 1994
---- ----
<S> <C> <C>
Shareholder's equity, beginning of period $1,088.5 $1,246.7
Net change in unrealized capital gains (losses) 156.7 (74.1)
Net income 40.3 32.2
------------ --------------
Shareholder's equity, end of period $1,285.5 $1,204.8
============ ==============
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(5)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Statements of Cash Flows
(millions)
<TABLE>
<CAPTION>
3 Months Ended March 31,
----------------------------
1995 1994
---- ----
<S> <C> <C>
Cash Flows from Operating Activities:
Net Income $40.3 $32.2
Adjustments to reconcile net income to net cash
provided by operating activities:
(Increase) decrease in accrued investment income (6.3) 12.6
Decrease in premiums due and other receivables 10.9 12.5
Increase in policy loans (26.0) (7.8)
Increase in deferred policy acquisition costs (31.7) (16.7)
Decrease in reinsurance loan to affiliate 14.6 8.7
Net increase in universal life account balances 44.5 28.0
Increase (decrease) in other insurance reserve
liabilities 20.5 (1.2)
Net decrease in other liabilities and other assets 113.3 14.1
Decrease in federal income taxes liability 16.3 0.5
Net accretion of discount on debt securities (15.5) (25.1)
Net realized capital gains (5.1) (0.8)
Other, net 1.5 (0.2)
---------- ----------
Net cash provided by operating activities 177.3 56.8
---------- ----------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale 965.3 165.8
Equity securities 66.7 -
Investment maturities and collections of:
Debt securities available for sale 104.3 606.2
Short-term investments 30.0 3.5
Cost of investment purchases in:
Debt securities (1,427.6) (1,077.4)
Equity securities (98.1) (22.3)
Short-term investments (0.5) (25.0)
---------- ----------
Net cash used for investing activities (359.9) (349.2)
---------- ----------
Cash Flows from Financing Activities:
Deposits and interest credited for investment
contracts 497.7 501.0
Withdrawals of investment contracts (278.3) (290.0)
---------- ----------
Net cash provided by financing activities 219.4 211.0
---------- ----------
Net increase (decrease) in cash and cash equivalents 36.8 (81.4)
Cash and cash equivalents, beginning of period 623.3 536.1
---------- ----------
Cash and cash equivalents, end of period $660.1 $454.7
========== ==========
Supplemental cash flow information:
Income taxes paid, net $2.5 $15.1
========== ==========
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(6)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Condensed Notes to Consolidated Financial Statements
1. Basis of Presentation
---------------------
The consolidated financial statements include Aetna Life Insurance and
Annuity Company and its wholly owned subsidiaries, Aetna Insurance Company of
America, Systematized Benefits Administrators, Inc., Aetna Private Capital,
Inc. and Aetna Investment Services, Inc. (collectively, the "Company"). Aetna
Life Insurance and Annuity Company is a wholly owned subsidiary of Aetna Life
and Casualty Company ("Aetna").
The consolidated financial statements have been prepared in accordance with
generally accepted accounting principles and are unaudited. Certain
reclassifications have been made to 1994 financial information to conform to
1995 presentation. These interim statements necessarily rely heavily on
estimates including assumptions as to annualized tax rates. In the opinion of
management, all adjustments necessary for a fair statement of results for the
interim periods have been made. All such adjustments are of a normal
recurring nature.
2. Federal Income Taxes
--------------------
Net unrealized capital gains and losses are presented in shareholder's equity
net of deferred taxes. At March 31, 1995, $14.7 million of net unrealized
capital losses were reflected in shareholder's equity without deferred tax
benefits. For federal income tax purposes, capital losses are deductible only
against capital gains in the year of sale or during the carryback and
carryforward periods (three and five years, respectively). Due to the
expected full utilization of capital gains in the carryback period and the
uncertainty of future capital gains, a valuation allowance of $5.2 million
related to the net unrealized capital losses has been reflected in
shareholder's equity at March 31, 1995. In addition, at March 31, 1995, $55.1
million of net unrealized capital losses related to experience-rated
contracts are not reflected in shareholder's equity since such losses, if
realized, will be charged to contractholders. However, the potential loss of
tax benefits on such losses is the risk of the Company and therefore would
adversely affect the Company rather than the contractholder. Accordingly, an
additional valuation allowance of $20.3 million has been reflected in
shareholder's equity as of March 31, 1995. Any reversals of the valuation
allowance are contingent upon the recognition of future capital gains in the
Company's federal income tax return or a change in circumstances which causes
the recognition of the benefits to become more likely than not. Non-
recognition of the deferred tax benefits on net unrealized losses described
above had no impact on net income for the three months ended March 31, 1995,
but has the potential to adversely affect future results if such losses are
realized.
(7)
<PAGE>
Independent Auditors' Review Report
-----------------------------------
The Board of Directors
Aetna Life Insurance and Annuity Company:
We have reviewed the accompanying condensed consolidated balance sheet of Aetna
Life Insurance and Annuity Company and Subsidiaries as of March 31, 1995, and
the related condensed consolidated statements of income for the three-month
periods ended March 31, 1995 and 1994, and the related condensed consolidated
statements of changes in shareholder's equity and cash flows for the three-month
periods ended March 31, 1995 and 1994. These condensed consolidated financial
statements are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying condensed consolidated financial statements for them
to be in conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet of Aetna Life Insurance and Annuity
Company and Subsidiaries as of December 31, 1994, and the related consolidated
statements of income, changes in shareholder's equity, and cash flows for the
year then ended (not presented herein); and in our report dated February 7,
1995, we expressed an unqualified opinion on those consolidated financial
statements. In our opinion, the information set forth in the accompanying
condensed consolidated balance sheet as of December 31, 1994, is fairly
presented, in all material respects, in relation to the consolidated balance
sheet from which it has been derived.
/s/ KPMG Peat Marwick LLP
Hartford, Connecticut
April 27, 1995
(8)
<PAGE>
Item 2. Management's Analysis of the Results of Operations
Consolidated Results of Operations: Operating Summary
- -----------------------------------------------------
<TABLE>
<CAPTION>
3 Months Ended March 31,
Operating Summary (millions) 1995 1994
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
Premiums $ 32.2 $ 25.4
Charges assessed against policyholders 74.9 68.2
Net investment income 235.8 231.1
Net realized capital gains 5.1 0.8
Other income 12.7 2.1
------------------------------------------------------------------------------------------
Total revenue 360.7 327.6
------------------------------------------------------------------------------------------
Current and future benefits 215.1 206.4
Operating expenses 75.3 60.3
Amortization of deferred policy acquisition costs 11.2 13.1
------------------------------------------------------------------------------------------
Total benefits and expenses 301.6 279.8
------------------------------------------------------------------------------------------
Income before federal income taxes 59.1 47.8
Federal income taxes 18.8 15.6
------------------------------------------------------------------------------------------
Net income $ 40.3 $ 32.2
==========================================================================================
- -------------------------------------------------------------------------------------------------
Deposits not included in premiums above: (1) Fully guaranteed $ 299.3 $ 185.8
Experience-rated 270.8 313.0
Non-guaranteed 351.0 343.0
--------------------------------------------------
Total $ 921.1 $ 841.8
=================================================================================================
Assets under management: (2) Fully guaranteed $ 2,962.9 $ 2,637.6
Experience-rated 9,638.2 8,888.6
Non-guaranteed 8,548.1 7,116.1
--------------------------------------------------
Total $ 21,149.2 $ 18,642.3
=================================================================================================
</TABLE>
(1) Under FAS 97, certain deposits are not included in premiums or revenue.
(2) Under FAS 115, included above are net unrealized gains (losses) of $(69.8)
million and $218.5 million at March 31, 1995 and 1994, respectively.
OVERVIEW
The Company's adjusted earnings (after-tax) follow (in millions):
<TABLE>
<CAPTION>
3 Months Ended March 31,
1995 1994
--------------------------
<S> <C> <C>
Net income $40.3 $32.2
Less:
Net realized capital gains 3.3 0.5
--------------------------
Adjusted earnings $37.0 $31.7
==========================
</TABLE>
The Company's adjusted earnings for the three months ended March 31, 1995
increased 17% when compared with the same period a year ago. The improvement in
the first quarter of 1995 adjusted earnings reflected increases in charges
assessed against policyholders and net investment income, primarily due to an
increase in assets under management. First quarter results also reflected
increases in operating expenses, primarily related to the implementation of a
new contract administration system.
(9)
<PAGE>
SEGMENT RESULTS
Life Insurance Segment
- ----------------------
<TABLE>
<CAPTION>
3 Months Ended March 31,
Operating Summary (millions) 1995 1994
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Premiums $ 12.5 $ 12.6
Charges assessed against policyholders 40.9 37.0
Net investment income 42.1 43.7
Net realized capital gains 0.7 0.1
Other income 1.8 1.5
---------------------------------------------------------------------------------
Total revenue 98.0 94.9
---------------------------------------------------------------------------------
Current and future benefits 47.5 51.1
Operating expenses 15.2 17.4
Amortization of deferred policy acquisition costs 9.6 6.6
---------------------------------------------------------------------------------
Total benefits and expenses 72.3 75.1
---------------------------------------------------------------------------------
Income before federal income taxes 25.7 19.8
Federal income taxes 9.7 7.8
---------------------------------------------------------------------------------
Net income $ 16.0 $ 12.0
=================================================================================
- ---------------------------------------------------------------------------------------------------
Deposits not included in premiums above: (1) Fully guaranteed - -
Experience-rated $ 79.1 $ 63.5
Non-guaranteed 8.2 5.8
--------------------------------------------------
Total $ 87.3 $ 69.3
===================================================================================================
Assets under management: (2) Fully guaranteed $ 620.5 $ 636.9
Experience-rated 1,543.8 1,412.5
Non-guaranteed 88.1 70.2
--------------------------------------------------
Total $2,252.4 $2,119.6
===================================================================================================
</TABLE>
(1) Under FAS 97, universal life and interest-sensitive whole life deposits are
not included in premiums or revenue.
(2) Under FAS No. 115, included above are net unrealized gains (losses) of
$(7.8) million and $33.4 million at March 31, 1995 and 1994, respectively.
Adjusted earnings in the Life Insurance segment (after-tax) follow (in
millions):
<TABLE>
<CAPTION>
3 Months Ended March 31,
1995 1994
--------------------------
<S> <C> <C>
Net income $ 16.0 $ 12.0
Less:
Net realized capital gains 0.4 0.1
--------------------------
Adjusted earnings $ 15.6 $ 11.9
==========================
</TABLE>
Adjusted earnings of $15.6 million for the three months ended March 31, 1995
increased 31% when compared with $11.9 million for the same period a year ago.
The improvement in adjusted earnings reflected an increase in the volume of
business in force as a result of strong sales over the past year offset in part
by lower net investment income.
Charges assessed against policyholders for universal life and interest-sensitive
whole life insurance increased 11% for the first quarter of 1995 when compared
with the first quarter of 1994 reflecting an increase in the volume of business
in force.
(10)
<PAGE>
Net investment income for the first quarter of 1995 decreased by 4% when
compared with the same period a year ago reflecting the lower net
investment yield on the Company's portfolio of investments, partially
offset by the increase in universal life assets under management.
Current and future benefits decreased 7% in the first quarter of 1995 when
compared with the same period a year ago reflecting improved mortality
experience related to universal life insurance.
First quarter 1995 operating expenses decreased by 13% when compared with
the first quarter of 1994, primarily attributable to a reduction in the
allocation of corporate expense from Aetna.
Financial Services Segment
--------------------------
<TABLE>
<CAPTION>
3 Months Ended March 31,
Operating Summary (millions) 1995 1994
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
Premiums $ 19.7 $ 12.8
Charges assessed against policyholders 34.0 31.2
Net investment income 193.7 187.4
Net realized capital gains 4.4 0.7
Other income 10.9 0.6
------------------------------------------------------------------------------------
Total revenue 262.7 232.7
------------------------------------------------------------------------------------
Current and future benefits 167.6 155.3
Operating expenses 60.1 42.9
Amortization of deferred policy acquisition costs 1.6 6.5
------------------------------------------------------------------------------------
Total benefits and expenses 229.3 204.7
------------------------------------------------------------------------------------
Income before federal income taxes 33.4 28.0
Federal income taxes 9.1 7.8
------------------------------------------------------------------------------------
Net income $ 24.3 $ 20.2
====================================================================================
- -----------------------------------------------------------------------------------------------------
Deposits not included in premiums above: (1) Fully guaranteed $ 299.3 $ 185.8
Experience-rated 191.7 249.5
Non-guaranteed 342.8 337.2
----------------------------------------------------
Total $ 833.8 $ 772.5
=====================================================================================================
Assets under management: (2) Fully guaranteed $ 2,342.4 $ 2,000.7
Experience-rated 8,094.4 7,476.1
Non-guaranteed 8,460.0 7,045.9
----------------------------------------------------
Total $ 18,896.8 $ 16,522.7
=====================================================================================================
</TABLE>
(1) Under FAS 97, certain deposits are not included in premiums or revenue.
(2) Under FAS 115, included above are net unrealized gains (losses) of
$(62.0) million and $185.1 million at March 31, 1995 and 1994,
respectively.
Adjusted earnings in the Financial Services segment (after-tax) follow (in
millions):
<TABLE>
<CAPTION>
3 Months Ended March 31,
1995 1994
------------------------------
<S> <C> <C>
Net income $ 24.3 $ 20.2
Less:
Net realized capital gains 2.9 0.4
------------------------------
Adjusted earnings $ 21.4 $ 19.8
==============================
</TABLE>
(11)
<PAGE>
Effective January 1, 1995 the Company assumed responsibility for two service
organizations, a record keeping service organization and a payment and retiree
administration service organization with a combined adjusted earnings of $(0.4)
million. As a result, other income and operating expenses reflect variances of
$10.4 million and $11.0 million, respectively, when comparing the first quarter
of 1995 to the same period a year ago. The results of these organizations were
previously reported by an affiliate.
Adjusted earnings of $21.4 million for the three months ended March 31, 1995
increased 8% when compared with $19.8 million for the same period a year ago.
The improvement in adjusted earnings reflected an increase in charges assessed
against policyholders and net investment income primarily due to an increase in
assets under management offset in part by an increase in operating expenses.
Charges assessed against policyholders for annuity contracts increased 9% for
the first quarter of 1995 when compared with the first quarter of 1994,
reflecting the increase in assets under management.
Net investment income in the first quarter of 1995 increased 3% when compared
with the first quarter of 1994, reflecting the increase in assets under
management offset by a lower net investment yield on the Company's portfolio of
investments.
First quarter 1995 operating expenses, excluding the impact of moving the two
service organizations into the Company as discussed above, increased by 14% when
compared to first quarter 1994. The increase reflected expenses associated with
the implementation of a new contract administration system partially offset by a
reduction in the allocation of corporate expense from Aetna.
General Account Investments
- ---------------------------
The Company's investment strategies and portfolios are intended to match the
duration of the related liabilities and provide sufficient cash flow to meet
obligations while maintaining a competitive after-tax rate of return. The
duration of these investments is monitored, and investment purchases and sales
are executed with the objective of having adequate funds available to satisfy
the Company's maturing liabilities. The risks associated with investments
supporting experience-rated products are assumed by those customers subject to,
among other things, certain minimum guarantees.
(12)
<PAGE>
<TABLE>
<CAPTION>
March 31, December 31,
(Millions) 1995 1994
- ------------------------------------------------------------------------------
<S> <C> <C>
Debt securities $10,897.4 $10,191.4
Equity securities
Non-redeemable preferred stock 46.3 47.2
Investment in affiliated mutual funds 221.3 181.9
Short-term investments 68.6 98.0
Mortgage loans 9.7 9.9
Policy loans 274.7 248.7
Limited partnership 24.5 24.4
---------------------------------
Total Investments 11,542.5 10,801.5
Cash and cash equivalents 660.1 623.3
---------------------------------
Total Investments and Cash and Cash
Equivalents $12,202.6 $11,424.8
==============================================================================
</TABLE>
At March 31, 1995 and December 31, 1994, the Company's carrying value of
investments in debt securities were $10.9 billion and $10.2 billion,
respectively, or 94% of total general account invested assets. At March 31,
1995 and December 31, 1994, $8.5 billion and $8.0 billion, respectively, or 78%
of total debt securities supported experience-rated products.
It is management's objective that the portfolio of debt securities be of high
quality and be well-diversified by market sector. The debt securities in the
Company's portfolio are generally rated by external rating agencies, and if not
externally rated, are rated by the Company on a basis believed to be comparable
to that used by rating agencies. The average quality rating of the Company's
debt security portfolio was AA- at March 31, 1995 and AA at December 31, 1994.
<TABLE>
<CAPTION>
Debt Security Quality Ratings Debt Securities Investments by Market Sector
at March 31, 1995 at March 31, 1995
- ---------------------------------- -------------------------------------------------------
<S> <C> <C> <C>
AAA 53.0% U.S. Corporate Securities 37.4%
AA 9.6 Residential Mortgage-Backed Securities 31.6
A 23.6 Foreign Securities - U.S. Dollar Denominated 10.7
BBB 10.3 U.S. Treasuries/Agencies 9.3
BB 2.6 Other Loan-Backed Securities 6.4
B 0.9 Commercial/Multifamily Mortgage-
----------- Backed Securities 4.2
100.0% Other 0.4
=========== ------------
100.0%
============
</TABLE>
(13)
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Company and its Board of Directors know of no material legal proceedings
pending to which the Company is a party or which would materially affect the
Company.
(14)
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
May 5, 1995 By /s/ Eugene M. Trovato
- ---------------- ------------------------
(Date) Eugene M. Trovato
Vice President, Controller
(Principal Accounting Officer)
(15)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-Q FOR THE FISCAL QUARTER ENDED
MARCH 31, 1995 FOR AETNA LIFE INSURANCE AND ANNUITY COMPANY AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> MAR-31-1995
<DEBT-HELD-FOR-SALE> 10,897
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 268
<MORTGAGE> 10
<REAL-ESTATE> 0
<TOTAL-INVEST> 11,542
<CASH> 661
<RECOVER-REINSURE> 2
<DEFERRED-ACQUISITION> 1,204
<TOTAL-ASSETS> 22,297
<POLICY-LOSSES> 3,027
<UNEARNED-PREMIUMS> 2
<POLICY-OTHER> 20
<POLICY-HOLDER-FUNDS> 9,382
<NOTES-PAYABLE> 0
<COMMON> 3
0
0
<OTHER-SE> 1,283
<TOTAL-LIABILITY-AND-EQUITY> 22,297
32
<INVESTMENT-INCOME> 236
<INVESTMENT-GAINS> 5
<OTHER-INCOME> 13
<BENEFITS> 215
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> 59
<INCOME-TAX> 19
<INCOME-CONTINUING> 40
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 40
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
