UNITED STATES 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 September 30, 1996
Commission file numbers: 33-62791, 33-88360, 33-89566,
33-89676, 33-89678, 33-91400,
333-00941, 333-00995, 333-01021, 333-02867 and 333-08743
American Skandia Life Assurance Corporation
Incorporated in the State of Connecticut 06-1241288
(IRS Employer Identification No.)
One Corporate Drive
Shelton, Connecticut 06484
Telephone Number (203) 926-1888
Indicate by check mark whether the registrant (1) has filed all reports to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months and (2) has been subject to such filing requirements for the
past 90 days.
Yes x No __
As of October 31, 1996, there were 25,000 shares of outstanding common stock,
par value $80 per share, of the registrant, consisting of 100 shares of voting
and 24,900 shares of non-voting common stock, all of which were owned by
American Skandia Investment Holding Corporation, a wholly-owned subsidiary of
Skandia Insurance Company Ltd., a Swedish corporation.
<PAGE>
American Skandia Life Assurance Corporation
Table of Contents
Page
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
Consolidated Statements of Financial Condition -
September 30, 1996 (unaudited)
and December 31, 1995 4
Consolidated Statements of Operations (unaudited) -
Nine months ended September 30, 1996
and September 30, 1995 5
Consolidated Statements of Operations (unaudited) -
Three months ended September 30, 1996
and September 30, 1995 6
Consolidated Statements of Cash Flows (unaudited) -
Nine months ended September 30, 1996
and September 30, 1995 7
Notes to Unaudited Consolidated Financial Statements 8
Item 2.
Management's Discussion and Analysis
of Financial Condition and Results of
Operations - Nine months ended
September 30, 1996 11
PART II. OTHER INFORMATION:
Item 4. Action Taken by Shareholder 15
Item 6. Exhibits and Reports on Form 8-K 15
Signature 16
Exhibit Index 17
(2)
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1.
FINANCIAL STATEMENTS
(3)
<PAGE>
<TABLE>
<CAPTION>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<S> <C> <C>
SEPTEMBER 30, DECEMBER 31,
1996 1995
---------------- ---------------
(unaudited)
ASSETS
Investments:
Fixed maturities - at amortized cost $ 10,100,653 $ 10,112,705
Investment in mutual funds - at market value 2,476,388 1,728,875
Short-term investments - at amortized cost 5,000,000 15,700,000
---------------- ---------------
Total investments 17,577,041 27,541,580
Cash and cash equivalents 6,660,911 13,146,384
Accrued investment income 339,977 194,074
Fixed assets
(net of accumulated depreciation of $9,711 and $3,749) 236,547 82,434
Deferred acquisition costs 389,999,796 270,222,383
Reinsurance receivable 2,410,968 1,988,042
Receivable from affiliates 325,513 860,991
Income tax receivable 0 563,850
State insurance licenses 4,750,000 4,862,500
Other assets 1,822,331 1,589,006
Separate account assets 6,785,682,348 4,699,961,646
---------------- ----------------
Total Assets $ 7,209,805,432 $ 5,021,012,890
================ ================
LIABILITIES AND SHAREHOLDER'S EQUITY
LIABILITIES:
Reserve for future contractowner benefits $ 31,616,661 $ 30,493,018
Annuity policy reserves 19,930,723 19,386,490
Income tax payable 675,787 0
Accounts payable and accrued expenses 48,195,291 32,816,517
Payable to affiliates 20,240,025 314,699
Payable to reinsurer 76,363,882 64,995,470
Short-term borrowing-affiliate 10,000,000 10,000,000
Surplus notes 143,000,000 103,000,000
Deferred contract charges 275,486 332,050
Separate account liabilities 6,785,682,348 4,699,961,646
---------------- ----------------
Total Liabilities 7,135,980,203 4,961,299,890
---------------- ----------------
SHAREHOLDER'S EQUITY:
Common stock, $80 par, 25,000 shares
authorized, issued and outstanding 2,000,000 2,000,000
Additional paid-in capital 83,067,222 81,874,666
Unrealized investment gains and losses 129,267 111,359
Foreign currency translation (319,431) (328,252)
Accumulated deficit (11,051,829) (23,944,773)
---------------- ----------------
Total Shareholder's Equity 73,825,229 59,713,000
---------------- ----------------
Total Liabilities and Shareholder's Equity $ 7,209,805,432 $ 5,021,012,890
================ ================
</TABLE>
See notes to unaudited consolidated financial statements
(4)
<PAGE>
<TABLE>
<CAPTION>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<S> <C> <C>
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, 1996 SEPTEMBER 30, 1995
-------------------- --------------------
REVENUES:
Annuity charges & fees $ 47,915,563 $ 27,438,534
Fee income 11,382,138 3,411,409
Net investment income 1,008,040 1,279,298
Net realized/unrealized capital gains 110,784 28,192
Annuity premium income 100,000 27,480
Other 26,963 41,488
------------------- ------------------
Total Revenues 60,543,488 32,226,401
------------------- ------------------
BENEFITS AND EXPENSES:
Benefits:
Annuity benefits 490,771 347,115
Increase/(decrease) in annuity policy reserves 389,033 (5,705,857)
Cost of minimum death benefit reinsurance 2,060,736 0
Return credited to contractowners (2,175,208) 9,167,943
------------------- ------------------
765,332 3,809,201
------------------ ------------------
Expenses:
Underwriting, acquisition and other insurance expenses 30,684,238 24,257,570
Amortization of state insurance licenses 112,500 112,500
Interest expense 7,600,213 4,828,709
------------------- ------------------
38,396,951 29,198,779
------------------- ------------------
Total Benefits and Expenses 39,162,283 33,007,980
------------------- ------------------
Income (loss) from operations
before income taxes 21,381,205 (781,579)
Income taxes 8,488,261 35,311
------------------- ------------------
Net income (loss) $ 12,892,944 $ (816,890)
=================== ==================
</TABLE>
See notes to unaudited consolidated financial statements.
(5)
<PAGE>
<TABLE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<CAPTION>
<S> <C> <C> <C> <C>
THREE MONTHS THREE MONTHS
ENDED ENDED
SEPTEMBER 30, 1996 SEPTEMBER 30, 1995
-------------------- --------------------
REVENUES:
Annuity charges & fees $ 18,019,812 10,564,222
Fee income 4,340,025 1,379,998
Net investment income 270,092 293,335
Net realized/unrealized capital gains 5,606 44,644
Other 6,329 16,310
------------------ ------------------
Total Revenues 22,641,864 12,298,509
------------------ ------------------
BENEFITS AND EXPENSES:
Benefits:
Annuity benefits 274,779 94,534
Decrease in annuity policy reserves (145,897) (2,104,559)
Cost of minimum death benefit reinsurance 727,974 0
Return credited to contractowners (929,214) 4,745,061
------------------ ------------------
(72,358) 2,735,036
------------------ ------------------
Expenses:
Underwriting, acquisition and other insurance expenses 13,921,268 7,208,417
Amortization of state insurance licenses 37,500 37,500
Interest expense 3,120,727 1,619,634
------------------ ------------------
17,079,495 8,865,551
------------------ ------------------
Total Benefits and Expenses 17,007,137 11,600,587
------------------ ------------------
Income from operations
before income taxes 5,634,727 697,922
Income taxes 3,096,214 19,610
------------------ ------------------
Net income $ 2,538,513 $ 678,312
================== ==================
</TABLE>
See notes to unaudited consolidated financial statements.
(6)
<PAGE>
<TABLE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(wholly-owned subsidiary of Skandia Insurance Company Ltd.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<CAPTION>
<S> <C> <C> <C> <C>
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPT 30, 1996 SEPT 30, 1995
------------------- -----------------
CASH FLOW FROM OPERATING ACTIVITIES:
Net income (loss) $ 12,892,944 $ (816,890)
Adjustments to reconcile net income (loss) to net cash
used in operating activities:
Increase/(decrease) in annuity policy reserves 544,233 (7,541,437)
Change in policy and contract claims 0 0
Amortization of bond discount 16,486 17,895
Amortization of insurance licenses 112,500 112,500
Increase in due to/due from affiliates 20,460,804 4,675,008
Change in income tax payable/receivable 1,239,637 0
Increase in other assets (387,438) (1,097,829)
Increase in accrued investment income (145,903) (47,399)
Increase in reinsurance receivable (422,926) 0
Increase/(decrease) in accounts payable and accrued expenses 15,378,774 (3,536,056)
Increase in deferred acquisition cost (119,777,413) (62,924,764)
Decrease in deferred contract charges (56,564) (93,648)
Decrease in foreign currency translation 8,821 0
Realized gain on sale of investments (110,784) (28,192)
Unrealized gain on mutual funds 0 0
------------------ -----------------
Net cash used in operating activities (70,246,829) (71,280,812)
------------------ -----------------
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of fixed maturity investments (219,434) (614,289)
Proceeds from maturity of fixed maturity investments 215,000 100,000
Purchase of shares in mutual funds (1,706,624) (1,368,059)
Proceeds from sale of mutual funds 1,087,803 798,073
Purchase of short-term investments (104,000,000) (168,500,000)
Proceeds from sale of short-term investments 114,700,000 192,500,000
Change in investments of separate account assets (1,957,479,048) (1,082,573,172)
------------------ -----------------
Net cash used in investing activities (1,947,402,303) (1,059,657,447)
------------------ -----------------
CASH FLOW FROM FINANCING ACTIVITIES:
Capital contributions from parent 1,192,556 1,172,942
Short term borrowing 0 0
Surplus notes 40,000,000 0
Increase in payable to reinsurer 11,368,412 13,425,705
Proceeds from annuity sales 1,958,602,691 1,098,691,637
------------------ -----------------
Net cash provided by financing activities 2,011,163,659 1,113,290,284
------------------ -----------------
Net decrease in cash & cash equivalents (6,485,473) (17,647,975)
------------------ -----------------
Cash and cash equivalents at beginning of period 13,146,384 23,909,463
------------------ -----------------
Cash and cash equivalents at end of period $ 6,660,911 $ 6,261,488
================== =================
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Income taxes paid $ 7,235,276 $ 72,310
================== =================
Interest paid $ 2,528,697 $ 540,319
================== =================
</TABLE>
See notes to unaudited consolidated financial statements.
(7)
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly owned subsidiary of
Skandia Insurance Company Ltd.)
Notes to Unaudited Consolidated Financial Statements
September 30, 1996
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of American Skandia
Life Assurance Corporation (the Company) have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
Operating results for the nine month period ended September 30, 1996
are not necessarily indicative of the results that may be expected for
the year ending December 31, 1996. For further information, refer to
the financial statements and footnotes thereto in the Company's audited
financial statements for the year ended December 31, 1995.
2. FOREIGN ENTITY
As of July 1995, Skandia Vida, S.A. de C.V. was formed by the ultimate
parent Skandia Insurance Company, Ltd., a Swedish corporation. The
Company has a 99.9% ownership in Skandia Vida, S.A. de C.V. which is a
life insurance company domiciled in Mexico. This Mexican life
insurer is a start up company with expectations of selling long term
savings products within Mexico. Total shareholder's equity of
Skandia Vida, S.A. de C.V. is $1,603,977 as of September 30, 1996.
3. SURPLUS NOTES
On June 28, 1996, the Company received $40 million from its parent in
exchange for one surplus note at an interest rate of 8.41%.
(8)
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly owned subsidiary of
Skandia Insurance Company Ltd.)
Notes to Unaudited Consolidated Financial Statements
September 30, 1996
During 1995, the Company received $34 million from its parent in
exchange for three surplus notes. The amounts were $10 million,
$15 million and $9 million, at interest rates of 7.52%, 7.49% and
7.47%, respectively.
During 1994, the Company received $49 million from its parent in
exchange for four surplus notes, two in the amount of $10 million, one
in the amount of $15 million and one in the amount of $14 million, at
interest rates of 7.28%, 7.90%, 9.13% and 9.78%, respectively.
During 1993, the Company received $20 million from its parent in
exchange for a surplus note in the amount of $20 million at a 6.84%
interest rate.
Interest payable on these notes is $5,235,106 at September 30, 1996.
Payment of interest and repayment of principal for these notes require
approval of the Commissioner of Insurance of the State of Connecticut.
Effective June 30, 1996 and September 30, 1996, the Commissioner
approved interest payments of $1,872,797 and $4,566,070 respectively,
in accordance with the terms of the surplus notes.
4. REINSURANCE
The Company cedes reinsurance under modified co-insurance arrangements.
The reinsurance arrangements provide additional capacity for growth in
supporting the cash flow strain from the Company's variable annuity
business. The reinsurance is effected under quota share contracts.
As of September 1995, the Company reinsured certain mortality risks.
These risks result from the Guaranteed Minimum Death Benefit feature in
the variable annuity products.
(9)
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly owned subsidiary of
Skandia Insurance Company Ltd.)
Notes to Unaudited Consolidated Financial Statements
September 30, 1996
The effect of the reinsurance agreements on the Company's operations
was to reduce annuity charges and fee income, death benefit expense,
and reserve exposure. The effect of reinsurance is summarized as
follows:
For the period ended September 30, 1996
<TABLE>
<CAPTION>
Annuity Change in Annuity Return Credited
Charges & Fees Policy Reserves to Contractowners
<S> <C> <C> <C>
Gross $60,649,937 $811,959 ($2,077,777)
Ceded 12,734,374 422,926 97,431
------------ --------- ----------
Net $47,915,563 $389,033 ($2,175,208)
=========== ======== ===========
</TABLE>
For the period ended September 30, 1995
Annuity
Charges & Fees
Gross $35,351,011
Ceded 4,754,725
-------------
Net $27,438,534
===========
Such ceded reinsurance does not relieve the Company from its
obligations to policyholders. The Company remains liable to its
policyholders for the portion reinsured to the extent that any
reinsurer does not meet the obligations assumed under the reinsurance
agreement.
(10)
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Nine months ended September 30, 1996
American Skandia Life Assurance Corporation (the Company) is a stock insurance
company domiciled in Connecticut with licenses in all 50 states. It is a
wholly-owned subsidiary of American Skandia Investment Holding Corporation,
whose ultimate parent is Skandia Insurance Company Ltd., a Swedish company.
The Company is in the business of issuing annuity policies, and has been so
since its business inception in 1988. The Company currently offers the following
annuity products: a) certain deferred annuities that are registered with the
Securities and Exchange Commission, including variable annuities and fixed
interest rate annuities that include a market value adjustment feature; b)
certain other fixed deferred annuities that are not registered with the
Securities and Exchange Commission; and c) fixed and adjustable immediate
annuities.
The Company markets its products to broker-dealers and financial planners
through an internal field marketing staff. In addition, the Company markets
through and in conjunction with financial institutions such as banks that are
permitted directly, or through affiliates, to sell annuities.
During 1995, Skandia Vida, S.A. de C.V. was formed by the ultimate parent
Skandia Insurance Company Ltd. The Company has a 99.9% ownership in Skandia
Vida, S.A. de C.V. which is a life insurance company domiciled in Mexico. This
Mexican life insurer is a start up company with expectations of selling long
term savings products within Mexico. Total shareholder's equity of Skandia
Vida, S.A. de C.V. is $1,603,977 and $881,648 as of September 30, 1996 and
December 31, 1995, respectively.
Results of Operations
The Company's long term business plan was developed reflecting the current sales
and marketing approach. The sales volume for the nine month period ended
September 30, 1996 and 1995 was $1.959 billion and $1.099 billion, respectively.
This represents an increase of 78% compared to the same period last year. This
increase is a direct result of the sales efforts by the Company coupled with an
overall increase in the variable annuity marketplace. Assets grew $2.189 billion
or 44% since December 31, 1995. This increase is a direct result of the sales
volume increasing separate account assets and deferred acquisition costs.
Liabilities grew $2.175 billion or 44% since December 31, 1995 as a result of
the reserves required for the increased sales activity as well as increased
reinsurance and surplus notes to support the acquisition costs of the Company's
variable annuity business.
(11)
<PAGE>
The Company experienced a net gain of $12.9 million after tax for the current
period which was in excess of plan. This gain is a result of the strong sales
activity for the nine months ended September 30, 1996, combined with an
increased asset base which generates additional fee revenue.
In the same period last year, the Company experienced a net loss of $.8 million
after tax. This loss was a result of the asset performance relative to the
liability structure for the market value adjusted annuity product along with a
strengthening of the reserves for this same business due to historically lower
spreads in the corporate bond market. In addition, the loss was attributable to
a higher level of general expense relative to sales volume.
Revenues:
Increasing volume of annuity sales results in higher assets under management.
The fees realized on assets under management has resulted in annuity charges &
fees to increase 75% for the nine month period ended September 30, 1996. This is
compared to an increase of 55% for the nine month period ended September 30,
1995.
Net investment income decreased 21% for the nine month period ended September
30, 1996. This is compared to an increase of 50% for the nine month period ended
September 30, 1995. The current period decrease is a result of the need to
liquidate short term investments to support cash needs. The prior period
increase is a result of an increase in the Company's bonds and short term
investments throughout the period.
Fee income is a result of income earned for transfer agency type activities.
This income increased 234% for the nine month period ended September 30, 1996
compared to an increase of 130% for the nine month period ended September 30,
1995.
Benefits:
Annuity benefits represent payments on annuity contracts with mortality risks,
these being the immediate annuities with life contingencies and supplementary
contracts with life contingencies.
Increase/(decrease) in annuity policy reserves represents the change in reserves
for the immediate annuity with life contingencies, supplementary contracts with
life contingencies and guaranteed minimum death benefit. In September 1995, the
Company entered into an agreement to reinsure the guaranteed minimum death
benefit exposure on most of the variable annuity contracts. The costs associated
with reinsuring the minimum death benefit reserve exceeded the change in the
minimum death benefit reserve by approximately $1.6 million.
(12)
<PAGE>
Return credited to contractowners represents revenues on the variable and market
value adjusted annuities offset by the benefit payments and change in reserves
required on this business. Also included are the benefit payments and change in
reserves on immediate annuity contracts without significant mortality risks. The
result for the current period reflects a higher than expected separate account
investment return on the market value adjusted contracts in support of the
benefits and required reserves.
Expenses:
Underwriting, acquisition and other insurance expenses is made up of $96 million
of commissions and $43.1 million of general expenses offset by the net
capitalization of deferred acquisition costs totaling $108.5 million. This
compares to the same period last year of $42.4 million of commissions and $28.1
million of general expenses offset by the net capitalization of deferred
acquisition costs totaling $46.2 million.
Interest expense increased 57% over the same period last year as a result of the
increase in surplus notes.
Liquidity and Capital Resources
The liquidity requirement of the Company was met by cash from insurance
operations, investment activities and borrowings from the parent.
The Company had significant growth during the nine month period in 1996. The
sales volume of $1.959 billion was made up of approximately 95% variable
annuities which carry a contingent deferred sales charge. This type of product
causes a temporary cash strain in that 100% of the proceeds are invested in
separate accounts supporting the product leaving a cash (but not capital) strain
caused by the acquisition costs for the new business. This cash strain required
the Company to look beyond the insurance operations and investments of the
Company. To this end, the Company borrowed an additional $40 million from its
parent in the form of a surplus note and extended its reinsurance agreements
(initiated in 1993, 1994 and 1995). The reinsurance agreements are modified
coinsurance arrangements where the reinsurer shares in the experience of a
specific book of business. The income and expense items presented above are net
of reinsurance.
The Company is currently reviewing various options to fund the cash strain
anticipated from the acquisition costs on expected future sales volume.
The tremendous growth of this young organization has depended on capital support
from its parent.
(13)
<PAGE>
As of September 30, 1996 and December 31, 1995, shareholder's equity was
$73,825,229 and $59,713,000 respectively, which includes the carrying value of
the state insurance licenses in the amount of $4,750,000 and $4,862,500,
respectively.
The Company has long term surplus notes and short term borrowing with its
parent. No dividends have been paid to its parent company.
(14)
<PAGE>
PART II. OTHER INFORMATION
ITEM 4. ACTION TAKEN BY SHAREHOLDER
Not applicable for this quarter.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) See Exhibit Index
(b) American Skandia Life Assurance Corporation did not
file any Report on Form 8-K during the quarter
covered by this report.
(15)
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
American Skandia Life
Assurance Corporation
(Registrant)
by /s/Thomas M. Mazzaferro
Thomas M. Mazzaferro
Executive Vice President and
Chief Financial Officer
November 14, 1996
(16)
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description Location
(2) Plan of acquisition, reorganization,
arrangement, liquidation or succession None
(4) Instruments defining the rights of
security holders, including indentures None
(10) Material Contracts None
(11) Statement re computation of per share
earnings None
(15) Letter re unaudited interim financial
information None
(18) Letter re change in accounting
principles None
(19) Report furnished to security holders None
(22) Published report regarding matters
submitted to vote of security holders None
(23) Consents of experts and counsel None
(24) Power of attorney None
(99) Additional exhibits None
(17)
<TABLE> <S> <C>
<ARTICLE> 7
<CIK> 881453
<NAME> ASLAC996
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Sep-30-1996
<PERIOD-END> Sep-30-1996
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 0
<DEBT-CARRYING-VALUE> 10,100,653
<DEBT-MARKET-VALUE> 10,012,368
<EQUITIES> 2,476,388
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 17,577,041
<CASH> 6,660,911
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 389,999,796
<TOTAL-ASSETS> 7,209,805,432 <F1>
<POLICY-LOSSES> 51,547,384
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 153,000,000
0
0
<COMMON> 2,000,000
<OTHER-SE> 71,825,229
<TOTAL-LIABILITY-AND-EQUITY> 7,209,805,432 <F2>
100,000
<INVESTMENT-INCOME> 1,008,040
<INVESTMENT-GAINS> 110,784
<OTHER-INCOME> 59,324,664 <F3>
<BENEFITS> 765,332
<UNDERWRITING-AMORTIZATION> 11,347,689
<UNDERWRITING-OTHER> 19,449,049
<INCOME-PRETAX> 21,381,205
<INCOME-TAX> 8,488,261
<INCOME-CONTINUING> 12,892,944
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 12,892,944
<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
<FN>
<F1> Included in Total Assets are Assets Held in Separate Accounts of
$6,785,682,348.
<F2> Included in Total Liabilities and Equity are Liabilities Related to
Separate Accounts of $6,785,682,348.
<F3> Other income includes annuity charges and fees of $47,915,563 and fee
income of $11,382,138.
</FN>
</TABLE>
