<PAGE> 1
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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, 2000
COMMISSION FILE NUMBERS 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.
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<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 2000 1999
- ------ ------------ ------------
<S> <C> <C>
INVESTMENTS:
Fixed maturity securities, at estimated fair value
(amortized cost: 2000 - $160,208; 1999 - $166,016 $ 154,075 $ 160,437
Equity securities, at estimated fair value
(cost: 2000 - $19,726; 1999 - $19,782 17,404 16,992
Policy loans on insurance contracts 87,614 88,165
------------ ------------
Total Investments 259,093 265,594
CASH AND CASH EQUIVALENTS 38,263 34,195
ACCRUED INVESTMENT INCOME 5,688 4,990
DEFERRED POLICY ACQUISITION COSTS 29,374 29,703
FEDERAL INCOME TAXES - DEFERRED 3,627 3,892
REINSURANCE RECEIVABLES 103 153
OTHER ASSETS 3,345 3,292
SEPARATE ACCOUNTS ASSETS 1,134,580 1,086,875
------------ ------------
TOTAL ASSETS $ 1,474,073 $ 1,428,694
============ ============
See accompanying notes to financial statements. (continued)
</TABLE>
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
BALANCE SHEETS
(Continued) (Dollars in thousands, except common stock par value and shares)
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
LIABILITIES AND STOCKHOLDER'S EQUITY 2000 1999
- ------------------------------------ ------------ ------------
<S> <C> <C>
LIABILITIES:
POLICYHOLDER LIABILITIES AND ACCRUALS:
Policyholders' account balances $ 243,763 $ 248,016
Claims and claims settlement expenses 2,699 3,762
------------ ------------
Total policyholder liabilities and accruals 246,462 251,778
OTHER POLICYHOLDER FUNDS 2,782 1,195
FEDERAL INCOME TAXES - CURRENT 1,084 1,420
AFFILIATED PAYABLES - NET 550 1,030
OTHER LIABILITIES 2,128 2,414
SEPARATE ACCOUNTS LIABILITIES 1,134,580 1,086,875
------------ ------------
Total Liabilities 1,387,586 1,344,712
------------ ------------
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 23,331 21,051
Accumulated other comprehensive loss (5,303) (5,528)
------------ ------------
Total Stockholder's Equity 86,487 83,982
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 1,474,073 $ 1,428,694
============ ============
See accompanying notes to financial statements.
</TABLE>
ML LIFE INSURANCE COMPANY OF NEW YORK
(a wholly owned subsidiary of Merrill Lynch Insurance Group, Inc.)
<TABLE>
<CAPTION>
STATEMENTS OF EARNINGS
(Dollars in thousands) (Unaudited)
Three Months Ended
March 31,
----------------------------------
2000 1999
------------ ------------
<S> <C> <C>
REVENUES:
Investment revenue:
Net investment income $ 4,648 $ 5,049
Net realized investment losses (18) (182)
Policy charge revenue 4,957 3,924
------------ ------------
Total Revenues 9,587 8,791
------------ ------------
BENEFITS AND EXPENSES:
Interest credited to policyholders' account balances 3,001 2,993
Policy benefits (net of reinsurance recoveries: 2000 - $103;
1999- $136) 151 178
Reinsurance premium ceded 471 430
Amortization of deferred policy acquisition costs 1,311 1,355
Insurance expenses and taxes 1,146 915
------------ ------------
Total Benefits and Expenses 6,080 5,871
------------ ------------
Earnings Before Federal Income Tax Provision 3,507 2,920
FEDERAL INCOME TAX PROVISION (BENEFIT):
Current 1,084 1,384
Deferred 143 (362)
------------ ------------
Total Federal Income Tax Provision 1,227 1,022
------------ ------------
NET EARNINGS $ 2,280 $ 1,898
============ ============
See accompanying notes to financial statements.
</TABLE>
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,
----------------------------------
2000 1999
------------ ------------
<S> <C> <C>
NET EARNINGS $ 2,280 $ 1,898
------------ ------------
OTHER COMPREHENSIVE INCOME (LOSS):
Net unrealized gains (losses) on available-for-sale securities:
Net unrealized holding losses arising during the period (109) (3,407)
Reclassification adjustment for losses included in net earnings 18 424
------------ ------------
Net unrealized losses on investment securities (91) (2,983)
Adjustments for:
Policyholder liabilities 438 579
Deferred federal income taxes (122) 841
------------ ------------
Total other comprehensive income (loss), net of taxes 225 (1,563)
------------ ------------
COMPREHENSIVE INCOME $ 2,505 $ 335
============ ============
See accompanying notes to financial statements.
</TABLE>
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, 1999 $ 2,200 $ 66,259 $ 14,462 $ (967) $ 81,954
Net earnings 6,589 6,589
Other comprehensive loss, net of tax (4,561) (4,561)
----------- ----------- ----------- ------------- -------------
BALANCE, DECEMBER 31, 1999 2,200 66,259 21,051 (5,528) 83,982
Net earnings 2,280 2,280
Other comprehensive income, net of tax 225 225
----------- ----------- ----------- ------------- -------------
BALANCE, MARCH 31, 2000 $ 2,200 $ 66,259 $ 23,331 $ (5,303) $ 86,487
=========== =========== =========== ============= =============
See accompanying notes to financial statements.
</TABLE>
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,
----------------------------------
2000 1999
------------ ------------
<S> <C> <C>
Cash Flows From Operating Activities:
Net earnings $ 2,280 $ 1,898
Noncash items included in earnings:
Amortization of deferred policy acquisition costs 1,311 1,355
Capitalization of policy acquisition costs (982) (888)
Amortization of investments 135 21
Interest credited to policyholders' account balances 3,001 2,993
Provision (benefit) for deferred Federal income tax 143 (362)
(Increase) decrease in operating assets:
Accrued investment income (698) (1,507)
Other (8) 888
Increase (decrease) in operating liabilities:
Claims and claims settlement expenses (1,063) (34)
Other policyholder funds 1,587 130
Federal income taxes - current (336) (43)
Affiliated payables (480) 310
Other (286) 193
Other operating activities:
Net realized investment losses 18 182
------------ ------------
Net cash and cash equivalents provided by operating activities 4,622 5,136
------------ ------------
Cash Flows From Investing Activities:
Proceeds from (payments for):
Sales of available-for-sale securities - 96,357
Maturities of available-for-sale securities 14,570 14,648
Purchases of available-for-sale securities (8,859) (104,337)
Policy loans on insurance contracts 551 (259)
------------ ------------
Net cash and cash equivalents provided by investing activities $ 6,262 $ 6,409
------------ ------------
See accompanying notes to financial statements. (continued)
</TABLE>
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,
----------------------------------
2000 1999
------------ ------------
<S> <C> <C>
Cash Flows From Financing Activities:
Proceeds from (payments for):
Policyholder deposits (excludes internal policy replacement $ 15,544 $ 14,045
deposits)
Policyholder withdrawals (including transfers to/from separate (22,360) (20,955)
accounts) ------------ ------------
Net cash and cash equivalents used by financing activities (6,816) (6,910)
------------ ------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 4,068 4,635
CASH AND CASH EQUIVALENTS:
Beginning of year 34,195 18,707
------------ ------------
End of period $ 38,263 $ 23,342
============ ============
Supplementary Disclosure of Cash Flow Information:
Cash paid for:
Federal income taxes $ 1,420 $ 1,426
Intercompany interest 21 22
See accompanying notes to financial statements.
</TABLE>
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 interim financial statements for the three month periods are unaudited. In
the opinion of management, these unaudited financial statements 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. These unaudited
financial statements should be read in conjunction with the audited financial
statements included in the Company's Annual Report on Form 10-K ("1999 10K")
for the year ended December 31, 1999. The nature of the Company's business is
such that the results of any interim period are not necessarily indicative of
results for a full year. Certain reclassifications have also been made to
prior period financial statements, where appropriate, to conform to the current
period presentation.
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, 2000 and December 31, 1999, was
$64.9 million and $61.7 million, respectively. For the three month periods
ended March 31, 2000 and 1999, statutory net income was $2.8 million and $2.3
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. Unrealized gains and losses
on available-for-sale securities are included in stockholder's equity as a
component of accumulated other comprehensive loss, net of tax. If management
determines that a decline in the value of a security is other-than-temporary,
the carrying value is adjusted to estimated fair value and the decline in value
is recorded as a net realized investment loss.
The Company has recorded certain adjustments to policyholders' account balances
in connection with unrealized holding gains or losses on investments. The
Company adjusts those liabilities as if the unrealized holdings gains or losses
had actually been realized, with corresponding credits or charges reported in
accumulated other comprehensive loss, net of taxes. The components of net
unrealized gains (losses) included in accumulated other comprehensive loss are
as follows:
March 31, December 31,
2000 1999
------------- -------------
Assets:
Fixed maturity securities $ (6,133) $ (5,579)
Equity securities (2,322) (2,790)
Other assets (22) (17)
Federal income taxes - deferred 2,855 2,977
------------- -------------
(5,622) (5,409)
------------- -------------
Liabilities:
Policyholders' account balances (319) 119
------------- -------------
Stockholder's equity:
Accumulated other comprehensive loss $ (5,303) $ (5,528)
============= =============
NOTE 4. ACCOUNTING PRONOUNCEMENTS
In June 1999, the Financial Accounting Standards Board deferred for one year
the effective date of the accounting and reporting requirements of SFAS No.
133, Accounting for Derivative Instruments and Hedging Activities. The Company
will adopt the provisions of SFAS No. 133 on January 1, 2001. The adoption of
the standard is not expected to have a material impact on the Company's
financial position.
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 on assets that do not support policyholder liabilities.
The following table summarizes each business segment's contribution to the
consolidated net revenues and net earnings for the three month periods ended
March 31:
Three Months Ended
March 31,
--------------------------------
2000 1999
------------ ------------
Net Revenues (a):
Life Insurance $ 2,670 $ 2,517
Annuities 3,164 2,479
Other 752 802
------------ ------------
Total Net Revenues $ 6,586 $ 5,798
============ ============
Net Earnings:
Life Insurance $ 637 $ 646
Annuities 1,154 731
Other 489 521
------------ ------------
Total Net Earnings $ 2,280 $ 1,898
============ ============
(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,
2000 and 1999. This discussion should be read in conjunction with the
accompanying unaudited financial statements and notes thereto, in addition to
the 1999 Financial Statements and Notes to Financial Statements and the
Management's Discussion and Analysis of Financial Condition and Results of
Operations included in the 1999 10K.
In addition to providing historical information, the Company may make or
publish forward-looking statements about management expectations, strategic
objectives, business prospects, anticipated financial performance, and other
similar matters. A variety of factors, many of which are beyond the Company's
control, affect the operations, performance, business strategy, and results of
the Company and could cause actual results and experience to differ materially
from the expectations expressed in these statements. These factors include, but
are not limited to, the factors listed in the Economic Environment section
listed below, as well as actions and initiatives taken by both current and
potential competitors and the effect of current, pending, and future
legislation and regulation. The Company undertakes no responsibility to update
or revise any forward-looking statements.
Business Overview
The Company's gross earnings are principally derived from two sources:
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
the charges imposed on variable life insurance and variable annuity contracts
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 inforce
contracts.
y's financial position and/or results of operations are primarily
impacted by the following economic factors:
fluctuations in medium term interest rates
fluctuations in credit spreads
equity market performance
The Company defines medium term interest rates as the average interest rate on
U.S. Treasury securities with terms of 1 to 10 years. During the first quarter
2000, medium term interest rates were relatively flat as compared to December
1999, but increased approximately 156 basis points as compared to the first
quarter 1999.
The Company defines credit spreads as the interest rate spread between the 5-
year U.S Treasury Bond Index and the 5-year Corporate Financial Bond Index.
During the first quarter 2000, credit spreads widened approximately 47 basis
points to end the quarter at 150 basis points. During the first quarter 1999,
credit spreads contracted approximately 52 basis points to end the quarter at
117 basis points.
There are several standard indices published on a daily basis that measure
performance of selected components of the U.S. equity market. Examples include
the Dow Jones Industrial Average ("Dow"), NASDAQ Composite Index ("NASDAQ") and
the Standard & Poor's 500 Composite Stock Price Index ("S&P Index"). During
the first quarter 2000, the U.S. equity market experienced increased volatility
especially in the segments as measured by the Dow and NASDAQ indices. During
the first quarter 2000, the Dow decreased 5% as compared to a 12% increase in
the NASDAQ. The S&P Index, during the same time period, increased 2%. The
investment performance in the underlying mutual funds supporting the Company's
variable products do not replicate the returns on any specific U.S. equity
market index. However, investment performance will generally increase or
decrease with corresponding increases or decreases in the overall U.S. equity
market.
Life insurance premiums and annuity deposits recorded during the first three
months of 2000 and 1999 were $16.8 million and $16.2 million, respectively.
Excluding internal tax-free exchanges, life insurance premiums and annuity
deposits collected were $15.5 million and $14.0 million during the first three
months of 2000 and 1999, respectively. Variable annuity sales continue to
dominate overall sales by comprising 87% and 85% of total sales volume for the
three months ended March 31, 2000 and 1999, respectively. Life insurance
premiums and annuity deposits by type of product were as follows:
Premiums Collected Change
--------------------- ---------------------
1Q 2000 1Q 1999 2000 - 1999 %
--------- --------- ----------- ------
($ In Millions)
Variable Annuities $ 14.5 $ 13.9 $ 0.6 4%
Modified Guaranteed Annuities 0.7 0.4 0.3 75
Variable Life Insurance 1.5 1.9 (0.4) (21)
Other 0.1 - 0.1 100
--------- --------- ----------- ------
Total Premiums Recorded 16.8 16.2 0.6 4
Internal tax-free exchanges (1.3) (2.2) 0.9 41
--------- --------- ----------- ------
Total Premiums Collected $ 15.5 $ 14.0 $ 1.5 11%
========= ========= =========== ======
Policy and contract surrenders increased $6.2 million (or 50%) to $18.5 million
during the current three month period as compared to the equivalent period in
1999 primarily due to an increase in variable annuity surrenders. During the
first three months of 2000, variable annuity surrenders increased $3.8 million
(or 69%) to $9.2 million. This increase is primarily a result of the
significant growth of this block of business over the past three years, as well
as the anticipated increase in lapse rates on contracts reaching the end of
their surrender charge period.
During the first three months of 2000, separate accounts assets increased $48
million (or 4.4%) to $1.1 billion, primarily due to strong investment
performance associated with the generally rising equity markets. During the
first three months of 2000, separate accounts assets increased $52 million due
to price appreciation in the underlying mutual funds supporting variable
products.
To fund all business activities, the Company maintains a high quality and
liquid investment portfolio. As of March 31, 2000, the Company's assets
included $176 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, 2000, approximately $4.9 million (or 3.2%) of the Company's
fixed maturity securities were considered non-investment grade. The Company
defines non-investment grade as unsecured debt obligations that 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.
Results of Operations
For the three month periods ended March 31, 2000 and 1999, the Company reported
net earnings of $2.3 million and $1.9 million, respectively.
Net earnings derived from interest spread decreased $0.4 million during the
first quarter 2000 as compared to the same period during 1999. The decrease in
interest spread is primarily due to the reduction in invested assets resulting
from the decline in fixed rate contracts inforce.
Net realized investment losses decreased $0.2 million during the current three
month period as compared to the equivalent period in 1999. The decrease in net
realized investment losses during the current three month period is primarily
due to a $0.7 million decrease in credit related losses. Prior period credit
related losses were impacted by the book value writedown and partial sale of
one fixed maturity security. The Company did not incur any credit related
losses during the current quarter. Partially offsetting the decrease in credit
related losses was a $0.5 million decrease in interest related gains during the
current three month period as compared to the same period in 1999. The
decrease in interest related gains is primarily attributable to the period to
period increase in interest rates, which resulted in a reduction in invested
asset market valuations since the first quarter 1999.
Policy charge revenue increased $1.0 million (or 26%) during the first quarter
2000 as compared to the same period in 1999. The increase in policy charge
revenue is primarily attributable to the increase in policyholders' variable
account balances. Average variable account balances increased $191 million (or
21%) during the current three month period. During the same time period, asset
based policy charges increased $0.7 million (or 24%). The increase in asset
based policy charges was also positively impacted by an increase in the number
of processing days as compared to the first quarter 1999. Non-asset based
charges increased $0.3 million (or 27%) during the same time period, primarily
due to higher cost of insurance charges on variable life products, as well as a
decrease in the market value adjustment expense on the Company's modified
guaranteed annuity product.
Insurance expenses and taxes increased $0.2 million (or 25%) during the current
three month period as compared to the same period in 1999. The increase is
primarily due to an increase in certain employee compensation related expense
allocations from Merrill Lynch & Co.
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> 3
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.
<PAGE> 4
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, JR.
-----------------------------------------
Joseph E. Crowne, Jr.
Senior Vice President and
Chief Financial Officer
Date: May 11, 2000
<PAGE> 5
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-31-2000
<PERIOD-END> MAR-31-2000
<DEBT-HELD-FOR-SALE> 154,075
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 17,404
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 259,093
<CASH> 38,263
<RECOVER-REINSURE> 103
<DEFERRED-ACQUISITION> 29,374
<TOTAL-ASSETS> 1,474,073
<POLICY-LOSSES> 2,699
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 2,782
<POLICY-HOLDER-FUNDS> 243,763
<NOTES-PAYABLE> 0
0
0
<COMMON> 2,200
<OTHER-SE> 84,287
<TOTAL-LIABILITY-AND-EQUITY> 1,474,073
0
<INVESTMENT-INCOME> 4,648
<INVESTMENT-GAINS> (18)
<OTHER-INCOME> 4,957
<BENEFITS> 151
<UNDERWRITING-AMORTIZATION> 1,311
<UNDERWRITING-OTHER> 1,146
<INCOME-PRETAX> 3,507
<INCOME-TAX> 1,227
<INCOME-CONTINUING> 2,280
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,280
<EPS-BASIC> 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>
