<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, 1996 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 (860) 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 Sections 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, 1996
- -------------- ------------------
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 Retirement Services, Inc.)
Quarterly Report For Period Ended March 31, 1996 on Form 10-Q
TABLE OF CONTENTS
PAGE
----
PART I. FINANCIAL INFORMATION
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............................................. 15
Item 6. Exhibits and Reports on Form 8-K.............................. 15
Signatures............................................................... 16
(2)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Statements of Income
(millions)
<TABLE>
<CAPTION>
3 Months Ended March 31,
--------------------------
1996 1995
---- ----
<S> <C> <C>
Revenue:
Premiums $14.1 $32.2
Charges assessed against policyholders 92.0 74.9
Net investment income 257.6 235.8
Net realized capital gains 14.9 5.1
Other income 12.2 12.7
------- -------
Total revenue 390.8 360.7
Benefits and expenses:
Current and future benefits 217.0 215.1
Operating expenses 87.8 74.0
Amortization of deferred policy acquisition costs 17.5 12.5
------- -------
Total benefits and expenses 322.3 301.6
Income before federal income taxes 68.5 59.1
Federal income taxes 20.0 18.8
------- -------
Net income $48.5 $40.3
------- -------
------- -------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(3)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Balance Sheets
(millions, except share data)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1996 1995
---- ----
<S> <C> <C>
Investments:
Debt securities, available for sale:
(amortized cost: $12,030.4 and $11,923.7) $12,332.2 $12,720.8
Equity securities, available for sale:
Non-redeemable preferred stock (cost: $54.3 and $51.3) 59.1 57.6
Investment in affiliated mutual funds (cost: $160.3 and
$173.4) 182.0 191.8
Common stock (cost: $6.9) - 8.2
Short-term investments 24.6 15.1
Mortgage loans 21.1 21.2
Policy loans 344.6 338.6
---------- ----------
Total investments 12,963.6 13,353.3
Cash and cash equivalents 554.6 568.8
Accrued investment income 186.4 175.5
Premiums due and other receivables 27.7 37.3
Deferred policy acquisition costs 1,375.6 1,341.3
Reinsurance loan to affiliate 646.0 655.5
Other assets 21.4 26.2
Separate Accounts assets 12,072.9 10,987.0
---------- ----------
Total assets $27,848.2 $27,144.9
---------- ----------
---------- ----------
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities:
Future policy benefits $3,545.1 $3,594.6
Unpaid claims and claim expenses 25.9 27.2
Policyholders' funds left with the Company 10,298.9 10,500.1
---------- ----------
Total insurance reserve liabilities 13,869.9 14,121.9
Other liabilities 188.6 259.2
Federal income taxes:
Current 35.7 24.2
Deferred 125.5 169.6
Separate Accounts liabilities 12,072.9 10,987.0
---------- ----------
Total liabilities 26,292.6 25,561.9
---------- ----------
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 gains 56.6 132.5
Retained earnings 1,088.6 1,040.1
---------- ----------
Total shareholder's equity 1,555.6 1,583.0
---------- ----------
Total liabilities and shareholder's equity $27,848.2 $27,144.9
---------- ----------
---------- ----------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(4)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Statements of Changes in Shareholder's Equity
(millions)
<TABLE>
<CAPTION>
3 Months Ended March 31,
------------------------
1996 1995
---- ----
<S> <C> <C>
Shareholder's equity, beginning of period $1,583.0 $1,088.5
Net change in unrealized capital gains and losses (75.9) 156.7
Net income 48.5 40.3
-------- --------
Shareholder's equity, end of period $1,555.6 $1,285.5
-------- --------
-------- --------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(5)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
Consolidated Statements of Cash Flows
(millions)
<TABLE>
<CAPTION>
3 Months Ended March 31,
-------------------------
1996 1995
---- ----
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $48.5 $40.3
Adjustments to reconcile net income to net cash (used for)
provided by operating activities:
Increase in accrued investment income (10.9) (6.3)
Decrease in premiums due and other receivables 0.5 10.9
Increase in policy loans (6.0) (26.0)
Increase in deferred policy acquisition costs (34.3) (31.7)
Decrease in reinsurance loan to affiliate 9.5 14.6
Net increase in universal life account balances 53.0 44.5
(Decrease) increase in other insurance reserve liabilities (52.4) 20.5
Net (decrease) increase in other liabilities and other assets (81.8) 113.3
Increase in federal income taxes 8.3 16.3
Net accretion of discount on debt securities (16.9) (15.5)
Net realized capital gains (14.9) (5.1)
Other, net - 1.5
-------- --------
Net cash (used for) provided by operating activities (97.4) 177.3
-------- --------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale 1,634.8 965.3
Equity securities 48.7 66.7
Investment maturities and collections of:
Debt securities available for sale 255.4 104.3
Short-term investments 10.0 30.0
Cost of investment purchases in:
Debt securities available for sale (1,918.0) (1,427.6)
Equity securities (26.1) (98.1)
Short-term investments (19.5) (0.5)
-------- --------
Net cash used for investing activities (14.7) (359.9)
-------- --------
Cash Flows from Financing Activities:
Deposits and interest credited for investment contracts 429.9 497.7
Withdrawals of investment contracts (332.0) (278.3)
-------- --------
Net cash provided by financing activities 97.9 219.4
-------- --------
Net (decrease) increase in cash and cash equivalents (14.2) 36.8
Cash and cash equivalents, beginning of period 568.8 623.3
-------- --------
Cash and cash equivalents, end of period $554.6 $660.1
-------- --------
-------- --------
Supplemental cash flow information:
Income taxes paid, net $11.7 $2.5
-------- --------
-------- --------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
(6)
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Services, Inc.)
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 and Aetna Private Capital, Inc. (collectively, the
"Company"). Aetna Life Insurance and Annuity Company is a wholly
owned subsidiary of Aetna Retirement Services, Inc. ("ARSI"). ARSI is
a wholly owned subsidiary of Aetna Life and Casualty Company ("Aetna").
These consolidated financial statements have been prepared in
accordance with generally accepted accounting principles and are
unaudited. Certain reclassifications have been made to 1995 financial
information to conform to 1996 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.
(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,
1996, and the related condensed consolidated statements of income for the
three-month periods ended March 31, 1996 and 1995, and the related
condensed consolidated statements of changes in shareholder's equity and
cash flows for the three-month periods ended March 31, 1996 and 1995. 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, 1995, 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 6, 1996, 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, 1995, 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 25, 1996
(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) 1996 1995
- --------------------------------------------------------------------------------------
<S> <C> <C>
Premiums $ 14.1 $ 32.2
Charges assessed against policyholders 92.0 74.9
Net investment income 257.6 235.8
Net realized capital gains 14.9 5.1
Other income 12.2 12.7
---------------------------------------------------------------------------------
Total revenue 390.8 360.7
---------------------------------------------------------------------------------
Current and future benefits 217.0 215.1
Operating expenses 87.8 74.0
Amortization of deferred policy acquisition costs 17.5 12.5
---------------------------------------------------------------------------------
Total benefits and expenses 322.3 301.6
---------------------------------------------------------------------------------
Income before federal income taxes 68.5 59.1
Federal income taxes 20.0 18.8
---------------------------------------------------------------------------------
Net income $ 48.5 $ 40.3
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Deposits not included in premiums above: Fully guaranteed $ 105.5 $ 105.0
Experience-rated 286.3 315.1
Non-guaranteed 700.1 364.3
-------------------------------------------
Total $ 1,091.9 $ 784.4
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Assets under management: (1) Fully guaranteed $ 3,186.1 $ 3,000.3
Experience-rated 10,469.7 9,674.8
Non-guaranteed 12,767.1 8,533.0
-------------------------------------------
Total $26,422.9 $21,208.1
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
(1) Excludes net unrealized capital gains (losses) of $301.8 million and
$(69.8) million at March 31, 1996 and 1995, respectively.
OVERVIEW
The Company's operating earnings (after-tax) follow (in millions):
<TABLE>
<CAPTION>
3 Months Ended March 31,
1996 1995
------------------------
<S> <C> <C>
Net income $48.5 $40.3
Less:
Net realized capital gains 9.7 3.3
------------------------
Operating earnings $38.8 $37.0
------------------------
------------------------
</TABLE>
The Company's operating earnings for the three months ended March 31, 1996
increased 5% when compared with the same period a year ago. Results in the
first quarter of 1996 benefited from an increase in charges assessed
against policyholders related to the growth in assets under management,
partially offset by an increase in operating expenses. The increase in
operating expenses primarily reflects continued business growth and
investment in nontraditional distribution channels (e.g., banks and
broker/dealers).
Assets under management at March 31, 1996 were 25% higher than a year
earlier primarily as a result of continued business growth and overall
improvement in the stock market.
(9)
<PAGE>
SEGMENT RESULTS
FINANCIAL SERVICES SEGMENT
<TABLE>
<CAPTION>
3 Months Ended March 31,
Operating Summary (millions) 1996 1995
- --------------------------------------------------------------------------------------
<S> <C> <C>
Premiums $ 2.1 $ 19.7
Charges assessed against policyholders 45.6 34.0
Net investment income 210.5 193.7
Net realized capital gains 13.7 4.4
Other income 10.7 10.9
-----------------------------------------------------------------------------
Total revenue 282.6 262.7
-----------------------------------------------------------------------------
Current and future benefits 157.6 167.6
Operating expenses 71.4 60.1
Amortization of deferred policy acquisition costs 6.4 1.6
-----------------------------------------------------------------------------
Total benefits and expenses 235.4 229.3
-----------------------------------------------------------------------------
Income before federal income taxes 47.2 33.4
Federal income taxes 14.2 9.1
-----------------------------------------------------------------------------
Net income $ 33.0 $ 24.3
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Deposits not included in premiums above: Fully guaranteed $ 105.5 $ 105.0
Experience-rated 203.9 236.0
Non-guaranteed 681.2 356.1
-------------------------------------------
Total $ 990.6 $ 697.1
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Assets under management: (1) Fully guaranteed $ 2,587.7 $ 2,380.3
Experience-rated 8,568.6 8,124.7
Non-guaranteed 12,620.9 8,444.9
-------------------------------------------
Total $23,777.2 $18,949.9
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
(1) Excludes net unrealized capital gains (losses) of $275.7 million and
$(62.0) million at March 31, 1996 and 1995, respectively.
Operating earnings in the Financial Services segment (after-tax) follow (in
millions):
<TABLE>
<CAPTION>
3 Months Ended March 31,
1996 1995
------------------------
<S> <C> <C>
Net income $33.0 $24.3
Less:
Net realized capital gains 8.9 2.9
------------------------
Operating earnings $24.1 $21.4
------------------------
------------------------
</TABLE>
Operating earnings for the three months ended March 31, 1996 increased 13%
when compared with the same period a year ago. The improvement in
operating earnings reflected an increase in charges assessed against
policyholders related to the growth in assets under management, partially
offset by an increase in operating expenses.
Premiums, related to annuity contracts containing life contingencies,
decreased 89% in the first quarter of 1996 compared to the first quarter of
1995 primarily because the Company ceased writing structured settlements of
certain liabilities in the fourth quarter of 1995. Such decrease did not
and is not expected to have a material effect on results of the segment.
Charges assessed against policyholders for annuity contracts increased 34%
in the first quarter of 1996 compared to the first quarter of 1995
reflecting the increase in assets under management.
(10)
<PAGE>
Net investment income increased 9% in the first quarter of 1996 compared to
the same period a year ago reflecting the increase in assets under
management.
Current and future benefits decreased 6% in the first quarter of 1996
compared to the same period a year ago primarily reflecting the cessation
of the structured settlement product discussed above, partially offset by
continued business growth.
Operating expenses increased 19% in the first quarter of 1996 compared to
the same period a year ago. The increase primarily reflects continued
business growth and investment in nontraditional distribution channels
(e.g., banks and broker/dealers).
Assets under management at March 31, 1996 were 25% higher than a year
earlier primarily as a result of continued business growth and overall
improvement in the stock market.
LIFE INSURANCE SEGMENT
<TABLE>
<CAPTION>
3 Months Ended March 31,
Operating Summary (millions) 1996 1995
- --------------------------------------------------------------------------------------
<S> <C> <C>
Premiums $ 12.0 $ 12.5
Charges assessed against policyholders 46.4 40.9
Net investment income 47.1 42.1
Net realized capital gains 1.2 0.7
Other income 1.5 1.8
-----------------------------------------------------------------------------
Total revenue 108.2 98.0
-----------------------------------------------------------------------------
Current and future benefits 59.4 47.5
Operating expenses 16.4 13.9
Amortization of deferred policy acquisition costs 11.1 10.9
-----------------------------------------------------------------------------
Total benefits and expenses 86.9 72.3
-----------------------------------------------------------------------------
Income before federal income taxes 21.3 25.7
Federal income taxes 5.8 9.7
-----------------------------------------------------------------------------
Net income $ 15.5 $ 16.0
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Deposits not included in premiums above: Experience-rated $ 82.4 $ 79.1
Non-guaranteed 18.9 8.2
--------------------------------------------
Total $ 101.3 $ 87.3
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Assets under management: (1) Fully guaranteed $ 598.4 $ 620.0
Experience-rated 1,901.1 1,550.1
Non-guaranteed 146.2 88.1
--------------------------------------------
Total $2,645.7 $2,258.2
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
</TABLE>
(1) Excludes net unrealized capital gains (losses) of $26.1 million and
$(7.8) million at March 31, 1996 and 1995, respectively.
Operating earnings in the Life Insurance segment (after-tax) follow (in
millions):
<TABLE>
<CAPTION>
3 Months Ended March 31,
1996 1995
------------------------
<S> <C> <C>
Net income $15.5 $16.0
Less:
Net realized capital gains 0.8 0.4
------------------------
Operating earnings $14.7 $15.6
------------------------
------------------------
</TABLE>
(11)
<PAGE>
Operating earnings for the three months ended March 31, 1996 decreased 6%
when compared with the same period a year ago reflecting increased current
and future benefits and increased operating expenses, primarily offset by
increases in charges assessed against policyholders and net investment
income.
Charges assessed against policyholders for universal life and
interest-sensitive whole life insurance increased 13% in the first quarter
of 1996 compared to the first quarter of 1995 reflecting an increase in the
volume of business in force.
Net investment income increased 12% in the first quarter of 1996 compared
to the same period a year ago reflecting an increase in universal life
assets under management.
Current and future benefits increased 25% in the first quarter of 1996
compared to the same period a year ago reflecting higher credited interest
and higher benefit payments to policyholders due to the increase in
universal life business.
Operating expenses increased 18% in the first quarter of 1996 compared to
the same period a year ago primarily reflecting continued business growth.
Assets under management at March 31, 1996 were 17% higher than a year
earlier primarily as a result of continued business growth.
(12)
<PAGE>
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 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.
The Company's invested assets were comprised of the following, net of
impairment reserves:
<TABLE>
<CAPTION>
March 31, December 31,
(Millions) 1996 1995
- --------------------------------------------------------------------------------
<S> <C> <C>
Debt securities $12,332.2 $12,720.8
Equity securities:
Non-redeemable preferred stock 59.1 57.6
Investment in affiliated mutual funds 182.0 191.8
Common stock -- 8.2
Short-term investments 24.6 15.1
Mortgage loans 21.1 21.2
Policy loans 344.6 338.6
-----------------------
Total Investments 12,963.6 13,353.3
Cash and cash equivalents 554.6 568.8
-----------------------
Total Investments and Cash and Cash Equivalents $13,518.2 $13,922.1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
</TABLE>
At March 31, 1996 and December 31, 1995, the Company's carrying value of
investments in debt securities represented 95% of total general account
invested assets for both periods. At March 31, 1996 and December 31, 1995,
$9.7 billion and $10.0 billion, respectively, or 79% of total debt
securities supported experience-rated products for both periods.
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 similar to that used by the rating agencies. The average quality
rating of the Company's debt security portfolio was AA- at both March 31,
1996 and December 31, 1995.
Debt Securities Quality Ratings
at March 31, 1996
- -------------------------------
AAA 43.9%
AA 11.4
A 25.4
BBB 12.9
BB 4.6
B and Below 1.8
------
100.0%
------
------
Debt Securities Investments by Market Sector
at March 31, 1996
- ---------------------------------------------------
U.S. Corporate Securities 45.1%
Residential Mortgage-Backed Securities 24.2
Foreign Securities - U.S. Dollar Denominated 12.0
Commercial/Multifamily Mortgage-
Backed Securities 7.6
Asset-Backed Securities 7.2
U.S. Treasuries/Agencies 3.5
Other 0.4
------
100.0%
------
------
(13)
<PAGE>
Debt Securities Quality Ratings
at December 31, 1995
- -------------------------------
AAA 46.0%
AA 11.7
A 25.4
BBB 11.7
BB 4.0
B and Below 1.2
------
100.0%
======
Debt Securities Investments by Market Sector
at December 31, 1995
- ---------------------------------------------------
U.S. Corporate Securities 44.7%
Residential Mortgage-Backed Securities 25.2
Foreign Securities - U.S. Dollar Denominated 11.1
Asset-Backed Securities 7.9
Commercial/Multifamily Mortgage-
Backed Securities 6.1
U.S. Treasuries/Agencies 4.6
Other 0.4
------
100.0%
------
------
(14)
<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.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
(27) Financial Data Schedule.
(b) Reports on Form 8-K
None.
(15)
<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 10, 1996 By /s/ Eugene M. Trovato
- ------------ --------------------------
(Date) Eugene M. Trovato
Vice President, Treasurer,
and Corporate Controller
(16)
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS CONTAINED IN THE FORM 10Q FOR THE FISCAL QUARTER ENDED
MARCH 31, 1996 FOR AETNA LIFE INSURANCE AND ANNUITY COMPANY AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000837010
<NAME> AETNA LIFE INSURANCE AND ANNUITY COMPANY
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<DEBT-HELD-FOR-SALE> 12,332
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 241
<MORTGAGE> 21
<REAL-ESTATE> 0
<TOTAL-INVEST> 12,964
<CASH> 555
<RECOVER-REINSURE> 9
<DEFERRED-ACQUISITION> 1,376
<TOTAL-ASSETS> 27,848
<POLICY-LOSSES> 3,545
<UNEARNED-PREMIUMS> 2
<POLICY-OTHER> 24
<POLICY-HOLDER-FUNDS> 10,299
<NOTES-PAYABLE> 0
0
0
<COMMON> 3
<OTHER-SE> 1,553
<TOTAL-LIABILITY-AND-EQUITY> 27,848
14
<INVESTMENT-INCOME> 258
<INVESTMENT-GAINS> 15
<OTHER-INCOME> 12
<BENEFITS> 217
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> 69
<INCOME-TAX> 20
<INCOME-CONTINUING> 49
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 49
<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>
