<PAGE> 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 1999
COMMISSION FILE NUMBER 33-34562; 33-60288; 333-48983
ML LIFE INSURANCE COMPANY OF NEW YORK
(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C>
NEW YORK 16-1020455
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
</TABLE>
100 CHURCH STREET
NEW YORK, NEW YORK 10080-6511
(Address of Principal Executive Offices)
(800) 333-6524
(Registrant's telephone number including area code)
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 __
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
COMMON 220,000
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> 2
PART I Financial Information
Item 1. Financial Statements.
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group,Inc.)
BALANCE SHEETS
(Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1999 1998
- ------- ------------- -------------
<S> <C> <C>
INVESTMENTS:
Fixed maturity securities, at estimated fair value
(amortized cost: 1999 - $184,215; 1998 - $197,588) $ 184,540 $ 200,681
Equity securities, at estimated fair value
(cost: 1999 - $23,186; 1998 - $14,684) 22,005 13,718
Policy loans on insurance contracts 88,342 88,083
------------- -------------
Total Investments 294,887 302,482
============= =============
CASH AND CASH EQUIVALENTS 23,342 18,707
ACCRUED INVESTMENT INCOME 6,475 4,968
DEFERRED POLICY ACQUISITION COSTS 29,275 29,742
FEDERAL INCOME TAXES - DEFERRED 1,084 -
REINSURANCE RECEIVABLES 315 652
OTHER ASSETS 3,710 4,261
SEPARATE ACCOUNTS ASSETS 910,920 887,170
------------- -------------
TOTAL ASSETS $ 1,270,008 $ 1,247,982
============= =============
</TABLE>
See notes to financial statements. (continued)
<PAGE> 3
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group,Inc.)
BALANCE SHEETS
(Continued) (Dollars in Thousands, Except Per Share Amounts)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY 1999 1998
- ------------------------------------ ------------- -------------
<S> <C> <C>
LIABILITIES:
POLICY LIABILITIES AND ACCRUALS:
Policyholders' account balances $ 264,750 $ 269,246
Claims and claims settlement expenses 2,952 2,986
------------- -------------
Total policy liabilities and accruals 267,702 272,232
OTHER POLICYHOLDER FUNDS 1,913 1,783
FEDERAL INCOME TAXES - DEFERRED - 119
FEDERAL INCOME TAXES - CURRENT 1,304 1,347
AFFILIATED PAYABLES - NET 1,563 1,253
PAYABLE FOR SECURITIES PURCHASED 2,000 -
OTHER LIABILITIES 2,317 2,124
SEPARATE ACCOUNTS LIABILITIES 910,920 887,170
------------- -------------
Total Liabilities 1,187,719 1,166,028
------------- -------------
STOCKHOLDER'S EQUITY:
Common stock, $10 par value - 220,000 shares
authorized, issued and outstanding 2,200 2,200
Additional paid-in capital 66,259 66,259
Retained earnings 16,360 14,462
Accumulated other comprehensive loss (2,530) (967)
Total Stockholder's Equity 82,289 81,954
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 1,270,008 $ 1,247,982
============= =============
</TABLE>
See notes to financial statements.
<PAGE> 4
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
STATEMENTS OF EARNINGS
(Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------
1999 1998
------------- -------------
<S> <C> <C>
REVENUES:
Investment revenue:
Net investment income $ 5,049 $ 5,655
Net realized investment gains (losses) (182) 145
Policy charge revenue 4,019 3,634
------------- -------------
Total Revenues 8,886 9,434
------------- -------------
BENEFITS AND EXPENSES:
Interest credited to policyholders' account balances 2,993 3,645
Market value adjustment expense 95 132
Policy benefits (net of reinsurance recoveries: 1999 - $136;
1998 - $349) 178 255
Reinsurance premium ceded 430 400
Amortization of deferred policy acquisition costs 1,355 1,085
Insurance expenses and taxes 915 1,169
------------- -------------
Total Benefits and Expenses 5,966 6,686
------------- -------------
Earnings Before Federal Income Tax Provision 2,920 2,748
FEDERAL INCOME TAX PROVISION (BENEFIT):
Current 1,384 745
Deferred (362) (235)
------------- -------------
Total Federal Income Tax Provision 1,022 510
------------- -------------
NET EARNINGS $ 1,898 $ 2,238
============= =============
</TABLE>
See notes to financial statements.
<PAGE> 5
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------------
1999 1998
------------- -------------
<S> <C> <C>
NET EARNINGS $ 1,898 $ 2,238
------------- -------------
OTHER COMPREHENSIVE INCOME:
Net unrealized losses on investment securities:
Net unrealized holding losses arising during the period (3,407) (579)
Reclassification adjustment for (gains) losses included in net earnings 424 (104)
------------- -------------
Net unrealized losses on investment securities (2,983) (683)
Adjustments for:
Policyholder liabilities 579 411
Deferred federal income taxes 841 95
------------- -------------
Total other comprehensive loss (1,563) (177)
------------- -------------
COMPREHENSIVE INCOME $ 335 $ 2,061
============= =============
</TABLE>
See notes to financial statements.
<PAGE> 6
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
STATEMENTS OF STOCKHOLDER'S EQUITY
(Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Accumulated
Additional other Total
Common paid-in Retained comprehensive stockholder's
Stock capital earnings loss equity
------------ ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1998 $ 2,200 $ 66,259 $ 9,692 $ (370) $ 77,781
Net earnings 4,770 4,770
Other comprehensive loss, net of tax (597) (597)
------------ ------------ ------------ ------------- -------------
BALANCE, DECEMBER 31, 1998 2,200 66,259 14,462 (967) 81,954
Net earnings 1,898 1,898
Other comprehensive loss, net of tax (1,563) (1,563)
------------ ------------ ------------ ------------- -------------
BALANCE, MARCH 31, 1999 $ 2,200 $ 66,259 $ 16,360 $ (2,530) $ 82,289
============ ============ ============ ============= =============
</TABLE>
See notes to financial statements.
<PAGE> 7
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
STATEMENTS OF CASH FLOWS
(Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------
1999 1998
------------ ------------
<S> <C> <C>
Cash Flows From Operating Activities:
Net earnings $ 1,898 $ 2,238
Adjustments to reconcile net earnings to net cash and
cash equivalents provided (used) by operating activities:
Amortization of deferred policy acquisition costs 1,355 1,085
Capitalization of policy acquisition costs (888) (1,168)
Amortization (accretion) of investments 21 (173)
Net realized investment (gains) losses 182 (145)
Interest credited to policyholders' account balances 2,993 3,645
Provision for deferred Federal income tax (362) (235)
Changes in operating assets and liabilities:
Accrued investment income (1,507) (1,365)
Claims and claims settlement expenses (34) 59
Federal income taxes - current (43) (1,510)
Other policyholder funds 130 (228)
Affiliated payables - net 310 89
Policy loans on insurance contracts (259) 1,025
Other - net 1,081 (61)
------------ ------------
Net cash and cash equivalents provided by operating activities 4,877 3,256
------------ ------------
Cash Flows From Investing Activities:
Proceeds from (payments for):
Sales of available-for-sale securities 96,357 30,061
Maturities of available-for-sale securities 14,648 23,084
Purchases of available-for-sale securities (104,337) (35,964)
------------ ------------
Net cash and cash equivalents provided by investing activities $ 6,668 $ 17,181
------------ ------------
</TABLE>
See notes to financial statements. (continued)
<PAGE> 8
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
STATEMENTS OF CASH FLOWS
(Continued) (Dollars in Thousands) (Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
----------------------------------
1999 1998
------------- ------------
<S> <C> <C>
Cash Flows From Financing Activities:
Proceeds from (payments for):
Policyholder deposits $ 14,045 $ 21,272
Policyholder withdrawals (including transfers to/from separate accounts (20,955) (37,636)
------------- ------------
Net cash and cash equivalents used by financing activities (6,910) (16,364)
------------- ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 4,635 4,073
CASH AND CASH EQUIVALENTS:
Beginning of year 18,707 10,063
------------- ------------
End of period $ 23,342 $ 14,136
============= ============
Supplementary Disclosure of Cash Flow Information:
Cash paid for:
Federal income taxes $ 1,426 $ 2,255
Intercompany interest 22 32
</TABLE>
See notes to financial statements.
<PAGE> 9
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1: BASIS OF PRESENTATION:
ML Life Insurance Company of New York (the "Company") is a wholly owned
subsidiary of Merrill Lynch Insurance Group, Inc. ("MLIG"). The Company is an
indirect wholly owned subsidiary of Merrill Lynch & Co., Inc. ("Merrill Lynch &
Co."). The Company sells life insurance and annuity products, including variable
life insurance and variable annuities.
The unaudited condensed financial statements included herein have been prepared
by the Company pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. In the opinion of management, the unaudited financial statements
presented herein include all adjustments (consisting only of normal recurring
accruals) necessary for a fair presentation of the financial position and the
results of operations in accordance with generally accepted accounting
principles for the periods presented. The preparation of financial statements in
conformity with generally accepted accounting principles and prevailing industry
practice requires management to make estimates that affect the reported amounts
and disclosure of contingencies in the financial statements. Actual results
could differ from those estimates. Results for the three months ended March 31,
1999 and 1998 are not necessarily indicative of annual results. These unaudited
financial statements should be read in conjunction with the financial statements
and the notes thereto included in the Company's 1998 Annual Report on Form 10-K
("1998 10K").
NOTE 2. STATUTORY ACCOUNTING PRACTICES:
The Company maintains its statutory accounting records in conformity with
accounting practices prescribed or permitted by the Insurance Department of the
State of New York and the National Association of Insurance Commissioners.
Statutory capital and surplus at March 31, 1999 and December 31, 1998, was $57.4
million and $55.9 million, respectively. For the three month periods ended March
31, 1999 and 1998, statutory net income was $2.3 million and $2.9 million,
respectively.
NOTE 3. INVESTMENTS:
The Company's investments in debt and equity securities are classified as
available-for-sale and are recorded at fair value. The Company has recorded
certain adjustments to deferred policy acquisition costs and policyholders'
account balances in conjunction with investments classified as
available-for-sale. The Company adjusts those assets and liabilities as if the
unrealized investment gains or losses from available-for-sale investments had
actually been realized, with corresponding credits or charges reported in
stockholder's equity as a component of accumulated other comprehensive loss, net
of taxes. The following reconciles net unrealized investment gains (losses) on
available-for-sale investments:
<TABLE>
<CAPTION>
March 31, December 31,
1999 1998
----------- -----------
<S> <C> <C>
Assets:
Fixed maturity securities $ 325 $ 3,093
Equity securities (1,181) (966)
Federal income taxes - deferred 1,362 -
----------- -----------
506 2,127
----------- -----------
Liabilities:
Policyholders' account balances 3,036 3,615
Federal income taxes - deferred - (521)
----------- -----------
3,036 3,094
----------- -----------
Stockholder's equity:
Accumulated other comprehensive loss $ (2,530) $ (967)
=========== ===========
</TABLE>
NOTE 4. ACCOUNTING PRONOUNCEMENTS
<PAGE> 10
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and for Hedging Activities". SFAS No. 133
requires all derivatives, including certain derivatives embedded in other
contracts, to be recorded on the balance sheet at fair value. SFAS No. 133,
which is effective for the Company beginning January 1, 2000, is not expected to
have a material impact on the Company's financial position or results of
operations.
NOTE 5. SEGMENT INFORMATION
In reporting to management, the Company's operating results are categorized into
two business segments: Life Insurance and Annuities. The Company's Life
Insurance segment consists of variable life insurance products and
interest-sensitive life products. The Company's Annuity segment consists of
variable annuities and interest sensitive annuities.
The Company's organization is structured in accordance with its two business
segments. Each segment has its own administrative service center that provides
product support to the Company and customer service support to the Company's
policyholders. Additionally, marketing and sales management functions, within
MLIG, are organized according to these two business segments.
The accounting policies of the business segments are the same as those for the
Company's financial statements included herein. All revenue and expense
transactions are recorded at the product level and accumulated at the business
segment level for review by management.
The "Other" category, presented in the following segment financial information,
represents earnings from a specific investment portfolio that does not support
policyholder liabilities.
The following table summarizes each business segment's contribution to the
consolidated amounts for the three months ended March 31:
<TABLE>
<CAPTION>
1999 1998
---------- ----------
<S> <C> <C>
Net Revenues (a):
Life Insurance $ 2,517 $ 2,238
Annuities 2,574 2,720
Other 802 831
---------- ----------
Total Net Revenues $ 5,893 $ 5,789
========== ==========
Net Earnings:
Life Insurance $ 646 $ 543
Annuities 731 1,155
Other 521 540
---------- ----------
Total Net Earnings $ 1,898 $ 2,238
========== ==========
</TABLE>
(a) Management considers investment income net of interest credited to
policyholders' account balances in evaluating results.
Item 2 Management's Narrative Analysis of the Results of Operations
This Management's Narrative Analysis of the Results of Operations addresses
changes in revenues and expenses for the three month periods ended March 31,
1999 and 1998. This discussion should be read in conjunction with the
accompanying unaudited financial statements and notes thereto, in addition to
the 1998 Financial Statements and Notes to Financial Statements and the
Management's Narrative Analysis of the Results of Operations included in the
1998 10K.
Business Overview
The Company's gross earnings are principally derived from two sources:
u the net earnings from investment of fixed rate life insurance and annuity
contract owner deposits less interest credited to contract owners,
commonly known as interest spread, and
u the charges imposed on variable life insurance and variable annuity
contracts
The costs associated with acquiring contract owner deposits are amortized over
the period in which the Company anticipates holding those funds. In addition,
the Company incurs expenses associated with the maintenance of in-force
contracts.
<PAGE> 11
Life insurance premiums and annuity deposits recorded during the first three
months of 1999 and 1998 were $16.2 million and $25.5 million, respectively.
Excluding internal tax-free exchanges, life insurance premiums and annuity
deposits received were $14.0 million and $21.3 million during the first three
months of 1999 and 1998, respectively.
The decrease in total sales occurred primarily in the Company's variable annuity
product, which decreased $9.3 million (or 40%) to $13.8 million. During the
fourth quarter 1998, the State of New York implemented legislation regarding the
replacement of certain life insurance policies and annuity contracts. The new
regulation significantly increased the documentation required during the sales
process for insurance product sales that are replacements of existing life
insurance policies or annuity contracts. In management's opinion, sales volumes
have been negatively impacted within its distribution system by the increase in
administrative burden for life insurance and annuity sales.
Policy and contract surrenders decreased $8.0 million (or 39%) to $12.3 million
during the current three month period as compared to the equivalent period in
1998 primarily due to reductions in modified guaranteed annuity surrenders.
During the current three month period, modified guaranteed annuity surrenders
decreased $5.4 million (or 60%). The decrease in modified guaranteed annuity
surrender activity is primarily attributable to two factors. First, there was a
reduction in the number of contracts reaching the end of their guarantee periods
during the first quarter 1999 as compared to the first quarter 1998. Second,
increases in medium term interest rates during the first quarter 1999 resulted
in increased persistency. The market value adjustment provision on these
contracts has an inverse relationship to changes in interest rates. Average
interest rates on 1 to 10 year term U.S. Treasury securities increased
approximately 68 basis points and 44 basis points from the third and fourth
quarters of 1998, respectively.
During the first three months of 1999, separate account assets increased $23.7
million (or 2.7%) to $911 million due to favorable investment performance in the
underlying mutual funds supporting variable products.
During the first quarter 1999, the increase in interest rates, noted above,
combined with increased credit exposure on certain domestic security holdings
resulted in a net decline in fair value of the Company's investments of $3.0
million. After adjusting for policyholder liabilities and deferred federal
income taxes, other comprehensive losses were $1.6 million during the first
quarter 1999.
To fund all business activities, the Company maintains a high quality and liquid
investment portfolio. As of March 31, 1999, the Company's assets included $191
million of cash, short-term investments and investment grade publicly traded
available-for-sale securities that could be liquidated if funds were required.
As of March 31, 1999 approximately $7.0 million (or 3.8%) of the Company's fixed
maturity securities were considered non-investment grade. The Company defines
non-investment grade as unsecured corporate debt obligations which do not have a
rating equivalent to Standard and Poor's BBB- or higher (or similar rating
agency). Non-investment grade securities are speculative and are subject to
significantly greater risks related to the creditworthiness of the issuers and
the liquidity of the market for such securities. The Company carefully selects,
and closely monitors, such investments.
Year 2000 Compliance
As the Year 2000 approaches, the Company has undertaken initiatives to address
the Year 2000 problem (the "Y2K problem") in conjunction with the Merrill Lynch
& Co. Year 2000 Compliance Initiative. Refer to the 1998 10K for a full
description. The failure of the Company's technology systems relating to a Y2K
problem would likely have a material adverse effect on the Company's business,
results of operations, and financial condition. This effect could include
disruption of normal business transactions, such as the processing of
policyholder transactions, the valuation of policyholder liabilities and the
recording and valuation of assets. The Y2K problem could also increase the
Company's exposure to risk and legal liability and its need for liquidity.
The renovation phase and production testing phase of the Company's Year 2000
efforts, as described in the 1998 10K, are complete.
<PAGE> 12
In light of the interdependency of the parties in or serving the financial
markets, there can be no assurance that all Y2K problems will be identified and
remedied on a timely basis or that all remediation will be successful.
Disruption or suspension of activity in the world's financial markets is also
possible. Management is unable at this point to ascertain whether all
significant third parties will successfully address the Y2K problem. The Company
will continue to monitor third parties' Year 2000 readiness to determine if
additional or alternative measures are necessary. The failure of exchanges,
clearing organizations, vendors, service providers, clients and counterparties,
regulators, or others to resolve their own processing issues in a timely manner
could have a material adverse effect on the Company's business, results of
operations, and financial condition.
The primary costs associated with the Year 2000 Compliance Initiative are
incurred by Merrill Lynch & Co. and are not directly allocated to the various
business units. As of March 31, 1999, Merrill Lynch & Co.'s total estimated
expenditures for the Year 2000 Compliance Initiative are approximately $520
million, of which $157 million remains to be spent. These costs include planning
and oversight of the Year 2000 Compliance Initiative, as well as certain
Information Systems personnel costs involved in implementation and testing. The
Company's expenditures associated with Year 2000 efforts as of March 31, 1999
have not been material to the Company's results of operations, liquidity, or
financial condition. However, there can be no assurance that the costs
associated with remediation efforts or the possible failure of remediation
efforts would not have a material adverse effect on the Company's business,
results of operations, and financial condition.
Results of Operations
For the three month periods ended March 31, 1999 and 1998, the Company reported
net earnings of $1.9 million and $2.2 million, respectively.
Net earnings derived from interest spread increased $0.1 million during the
first quarter 1999 as compared to the first quarter 1998. Overall, net
investment income and interest credited to policyholders' account balances
continue to decline due to the reduction in fixed rate contracts in-force.
Net realized investment gains (losses) decreased $0.3 million from a gain of
$0.1 million during the first quarter 1998 to a loss of $0.2 million during the
first quarter 1999. The current period loss is due to the book value writedown
of a fixed maturity security.
Policy charge revenue increased $0.4 million (or 11%) during the first quarter
1999 as compared to the same period during 1998. The increase in policy charge
revenue is primarily attributable to the increase in policyholders' variable
account balances. Average variable account balances increased $127 million (or
16%) during the first quarter 1999 as compared to the same period in 1998. Asset
based policy charges increased $0.4 million (or 21%). Non-asset based policy
charges were flat as compared to the prior year.
Policy benefits decreased $0.1 million (or 30%) to $0.2 million during the
current three month period from $0.3 million in the same period during 1998. The
decrease in policy benefits is due to decreased mortality in variable life
products.
Amortization of deferred policy acquisition costs increased $0.3 million (or
25%) primarily due to the period to period increase in policy fees and decrease
in policy benefits.
Insurance expenses and taxes decreased $0.3 million (or 22%) during the first
quarter 1999 as compared to the same period in 1998. The decrease in insurance
expenses and taxes is primarily due to reductions in salary and office rental
expenses associated with the Company's closing of it's New York service center,
as well as expense reduction procedures implemented by ML & Co. Both of these
events occurred during the third quarter 1998.
The Company's effective federal income tax rate increased to 35% for 1999 from
19% for 1998 principally as a result of year to year differences in certain
permanent adjustments.
Segment Information
The products that comprise the Life Insurance and Annuity segments generally
possess similar economic characteristics. As such, the financial condition and
results of operations of each business segment are generally consistent with the
Company's consolidated financial condition and results of operations presented
herein.
<PAGE> 13
PART II Other Information
Item 1. Legal Proceedings.
Nothing to report.
Item 5. Other Information.
Nothing to report.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Financial Data Schedule.
(b) Reports on Form 8-K.
None.
I-2
<PAGE> 14
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.
ML LIFE INSURANCE COMPANY OF NEW YORK
/s/ JOSEPH E. CROWNE
-----------------------------------------
Joseph E. Crowne
Senior Vice President and
Chief Financial Officer
Date: May 14, 1999
I-3
<PAGE> 15
EXHIBIT INDEX
-------------
Exhibit
No. Description
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<DEBT-HELD-FOR-SALE> 0
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 184,540
<EQUITIES> 22,005
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 294,887
<CASH> 23,342
<RECOVER-REINSURE> 315
<DEFERRED-ACQUISITION> 29,275
<TOTAL-ASSETS> 1,270,008
<POLICY-LOSSES> 2,952
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 1,913
<POLICY-HOLDER-FUNDS> 264,750
<NOTES-PAYABLE> 0
0
0
<COMMON> 2,200
<OTHER-SE> 80,089
<TOTAL-LIABILITY-AND-EQUITY> 1,270,008
0
<INVESTMENT-INCOME> 5,049
<INVESTMENT-GAINS> (182)
<OTHER-INCOME> 4,019
<BENEFITS> 178
<UNDERWRITING-AMORTIZATION> 1,355
<UNDERWRITING-OTHER> 915
<INCOME-PRETAX> 2,920
<INCOME-TAX> 1,022
<INCOME-CONTINUING> 1,898
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,898
<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>
