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 March 31, 2000
Commission file numbers: 33-77213, 33-62953,
33-88360, 33-89676, 333-00995, 333-02867,
333-24989, 333-25761, 33-91400, 333-25733,
and 333-26695
American Skandia Life Assurance Corporation
Incorporated in the State of Connecticut
06-1241288
(Federal 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 May 11, 2000, there were 25,000 shares of outstanding common stock, par
value $100 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 Inc., a wholly-owned subsidiary of Skandia Insurance Company Ltd., a
Swedish corporation.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
TABLE OF CONTENTS
Page
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements:
Consolidated Statements of Financial Condition -
March 31, 2000 (unaudited)
and December 31, 1999 3
Consolidated Statements of Income (unaudited) -
Three months ended March 31, 2000
and March 31, 1999 4
Consolidated Statements of Shareholder's Equity -
Three months ended March 31, 2000 (unaudited)
and year ended December 31, 1999 5
Consolidated Statements of Cash Flows (unaudited) -
Three months ended March 31, 2000
and March 31, 1999 6
Notes to Unaudited Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations -
Three months ended March 31, 2000 10
Item 3. Quantitative and Qualitative Disclosures of Market Risk 14
PART II. OTHER INFORMATION:
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
Exhibit Index 17
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Financial Condition
(in thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
March 31, December 31,
2000 1999
--------------- ----------------
(unaudited)
ASSETS
Investments:
Fixed maturities - at amortized cost $ 3,247 $ 3,360
Fixed maturities - at fair value 199,654 198,165
Investment in mutual funds - at fair value 22,912 16,404
Derivative instruments 997 189
Policy loans 1,440 1,270
-------------- --------------
Total investments 228,250 219,388
Cash and cash equivalents 128,717 89,212
Accrued investment income 3,251 4,054
Deferred acquisition costs 1,222,855 1,087,705
Reinsurance receivable 7,273 4,062
Income tax receivable - deferred 46,059 51,726
State insurance licenses 4,225 4,263
Fixed assets 4,118 3,305
Other assets 5,014 4,533
Separate account assets 33,386,262 29,381,166
--------------- ----------------
Total assets $ 35,036,024 $ 30,849,414
=============== ================
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities:
Reserves for future insurance policies and contracts $ 24,317 $ 41,127
Drafts outstanding 52,790 51,059
Accounts payable and accrued expenses 178,950 158,590
Income tax payable 6,112 24,268
Payable to affiliates 84,393 68,736
Future fees payable to parent 729,313 576,034
Short-term borrowing 10,000 10,000
Surplus notes 179,000 179,000
Separate account liabilities 33,386,262 29,381,166
--------------- ----------------
Total Liabilities 34,651,137 30,489,980
--------------- ----------------
Shareholder's equity:
Common stock, $100 par value, 25,000 shares authorized,
issued and outstanding 2,500 2,500
Additional paid-in capital 217,479 215,879
Retained earnings 165,343 141,162
Accumulated other comprehensive income (435) (107)
--------------- ----------------
Total Shareholder's equity 384,887 359,434
--------------- ----------------
Total liabilities and shareholder's equity $ 35,036,024 $ 30,849,414
=============== ================
</TABLE>
See notes to consolidated financial statements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Income
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Three Months Ended March 31,
2000 1999
-------------- --------------
REVENUES
Annuity and life insurance charges and fees $ 104,833 $ 60,418
Fee income 31,143 16,977
Net investment income 2,876 2,654
Premium income 603 749
Net realized capital gains 729 295
Other 676 365
-------------- --------------
Total revenues 140,860 81,458
-------------- --------------
EXPENSES
Benefits:
Annuity and life insurance benefits 133 221
Change in annuity and life insurance policy reserves 2,624 757
Cost of minimum death benefit reinsurance - 1,749
Return credited to contractowners (2,676) (4,226)
-------------- --------------
81 (1,499)
Expenses:
Underwriting, acquisition and other insurance
expenses 76,292 51,878
Interest expense 30,268 13,825
-------------- --------------
106,560 65,703
-------------- --------------
Total benefits and expenses 106,641 64,204
-------------- --------------
Income from operations before income tax 34,219 17,254
Income tax expense 10,038 3,844
-------------- --------------
Net income $ 24,181 $ 13,410
============== ==============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Shareholder's Equity
(in thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
March 31, December 31,
2000 1999
--------------- -----------------
(unaudited)
Common stock:
Beginning balance $ 2,500 $ 2,000
Increase in par value - 500
--------------- -----------------
Ending balance 2,500 2,500
--------------- -----------------
Additional paid in capital:
Beginning balance 215,879 179,889
Transferred to common stock - (500)
Additional contributions 1,600 36,490
--------------- -----------------
Ending balance 217,479 215,879
--------------- -----------------
Retained earnings:
Beginning balance 141,162 64,993
Net income 24,181 76,169
--------------- -----------------
Ending balance 165,343 141,162
--------------- -----------------
Accumulated other comprehensive income:
Beginning balance (107) 3,535
Other comprehensive income (328) (3,642)
--------------- -----------------
Ending Balance (435) (107)
--------------- -----------------
Total shareholder's equity $ 384,887 $ 359,434
=============== =================
See notes to consolidated financial statements.
</TABLE>
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
Three Months Ended March 31,
2000 1999
------------- -------------
Cash flow from operating activities:
Net income $ 24,181 $ 13,410
Adjustments to reconcile net income to net
cash used in operating activities:
Amortization and depreciation 1,597 68
Deferred tax expense/(benefit) 5,844 (1,782)
Increase in policy reserves 2,585 5,307
Increase in payable to affiliates 15,657 53,110
Decrease in income tax payable (18,156) (48)
Increase in other assets (481) (502)
Decrease in accrued investment income 803 339
Increase in reinsurance receivable (3,211) (4,037)
Increase in deferred acquisition costs (135,150) (64,467)
Increase in accounts payable and accrued expenses 20,360 323
Increase in drafts outstanding 1,731 1,242
Change in foreign currency translation, net 74 204
Net realized capital gain (729) (295)
------------- -------------
Net cash provided by/(used in)
operating activities (84,895) 2,872
------------- -------------
Cash flow from investing activites:
Purchase of fixed maturity investments (2,529) -
Proceeds from sale and maturity of fixed
maturity investments 110 -
Purchase of derivatives (2,274) -
Purchase of shares in mutual funds (8,048) (12,491)
Proceeds from sale of shares in mutual funds 2,691 11,458
Purchase of fixed assets (864) -
Increase in policy loans (170) (40)
------------- -------------
Net cash used in investing activities (11,084) (1,073)
------------- -------------
Cash flow from financing activities:
Capital contribution from parent 1,600 1,200
Increase/(decrease) in future fees
payable to parent, net 153,279 (12,099)
Net withdrawals from contractowner accounts (19,395) 1,325
------------- -------------
Net cash provided by/(used in)
financing activities 135,484 (9,574)
------------- -------------
Net increase/(decrease) in cash and cash
equivalents 39,505 (7,775)
Cash and cash equivalents at
beginning of period 89,212 77,525
------------- -------------
Cash and cash equivalents at end of period $ 128,717 69,750
============= =============
Income taxes paid $ 10,037 4,901
============= =============
Interest paid $ 28,146 17,361
============= =============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2000
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated 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 three-month period ended March 31,
2000 are not necessarily indicative of the results that may be expected
for the year ending December 31, 2000. For further information, refer
to the consolidated financial statements and footnotes thereto in the
Company's audited consolidated financial statements on Form 10-K for
the year ended December 31, 1999.
Certain reclassifications have been made to prior period amounts to
conform to the current period presentation.
2. NEW ACCOUNTING PRONOUNCEMENT
In June 1998, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard 133 ("FAS 133"), "Accounting
for Derivative Instruments and Hedging Activities" (FAS 133).
Subsequently, in July 1999, the FASB issued FAS 137 "Deferral of the
Effective Date of FASB Statement 133". The adoption date was delayed to
fiscal years beginning after June 15, 2000. The Company is currently
evaluating the potential impact of this statement on its financial
position.
3. SEGMENT REPORTING
During 1998, to complement its annuity products, the Company launched
marketing and operational activities towards the release of variable
life insurance and qualified retirement plan annuity products. Assets
under management and sales for the products other than variable
annuities have not been significant enough to warrant full segment
disclosures as required by FAS 131, "Disclosures about Segments of an
Enterprise and Related Information."
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)
March 31, 2000
4. COMPREHENSIVE INCOME
The components of comprehensive income, net of tax, for the three
months ended March 31, 2000 and 1999 were as follows:
(in thousands) 2000 1999
-------- --------
Net income $24,181 $13,410
Other comprehensive income:
Net Unrealized investment losses on
available for sale securities (376) (2,024)
Foreign currency translation 48 137
--------- --------
Other comprehensive income (328) (1,887)
--------- --------
Comprehensive income $23,853 $11,523
========= ========
The components of accumulated other comprehensive income, net of tax,
as of March 31, 2000 and December 31, 1999 were as follows:
(in thousands) 2000 1999
-------- --------
Unrealized investment gains/(losses) ($ 631) ($ 255)
Foreign currency translation 196 148
-------- --------
Accumulated other comprehensive income ($ 435) ($ 107)
======== ========
5. FOREIGN ENTITY
The Company has a 99.9% ownership in Skandia Vida, S.A. de C.V.
("Skandia Vida") which is a life insurance company domiciled in Mexico,
selling long-term savings products within Mexico. Skandia Vida, which
is fully consolidated in the accompanying financial statements, had
total shareholders' equity of $6,099,000 as of March 31, 2000 and
$4,592,000 as of December 31, 1999 and has generated losses of $167,000
and $565,000 for the three months ended March 31, 2000 and 1999,
respectively.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)
March 31, 2000
6. FUTURE FEES PAYABLE TO PARENT
On March 22, 2000, the Company sold to its Parent, American Skandia,
Inc. ("ASI"), certain rights to receive future fees and charges
expected to be realized on the variable portion of a designated block
of deferred annuity contracts issued during the period August 1, 1999
through January 31, 2000. In connection with this transaction, ASI,
through a trust issued collateralized notes in a private placement
which are secured by the rights to receive future fees and charges
purchased from the Company.
Under the terms of the Purchase Agreements, the rights sold provide for
ASI to receive a percentage of future mortality and expense charges and
contingent deferred sales charges expected to be realized over the
remaining surrender charge period of the designated contracts,
generally seven years. The Company did not sell the rights to receive
future fees and charges after the expiration of the surrender charge
period.
The proceeds from the sales have been recorded as a liability and are
being amortized over the remaining surrender charge period of the
designated contracts using the interest method. The present values of
the future fees and charges expected to be realized on the designated
contracts at March 22, 2000, discounted at 7.5%, was $169,459,000.
Expected payments of future fees payable to ASI under this transaction
are as follows:
(in thousands)
Period Ending
December 31, Amount
------------ --------
2000 $ 11,807
2001 18,068
2002 20,266
2003 22,653
2004 25,243
2005 28,053
2006 28,097
2007 15,272
--------
Total $169,459
========
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Three months ended March 31, 2000
Management's Discussion and Analysis of Financial Condition and Results of
Operations should be read in conjunction with the March 31, 2000 financial
statements and the notes included herein.
American Skandia Life Assurance Corporation ("the Company"), with its principal
offices in Shelton, Connecticut, is a wholly owned subsidiary of American
Skandia, Inc. ("ASI"), whose ultimate parent is Skandia Insurance Company Ltd.,
a Swedish corporation. The Company has 99.9% ownership in Skandia Vida, S.A. de
C.V. ("Skandia Vida") which is a life insurance company domiciled in Mexico.
The Company's products are sold to individuals, businesses and pension plans to
provide for long-term savings and retirement purposes and to address the
economic impact of premature death, estate and business planning concerns and
supplemental retirement needs.
The Company markets its products to independent financial planners and
broker-dealers 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 and
life insurance.
The Company is primarily in the business of issuing long-term savings and
retirement products to individuals, groups and qualified pension plans. The
Company was the largest provider of variable annuity contracts for the
individual market in the United States during the first quarter of 2000, and
ranked third in 1999, according to The Variable Annuity Research & Data Service
("VARDS").
Since its business inception in 1988, the Company has offered an increasingly
wide array of annuities, including: 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; c) non-registered group
variable annuities designed as funding vehicles for various types of qualified
retirement plans; and d) fixed and adjustable immediate annuities.
In May 1999, the Company introduced a benefit feature to all of its variable
annuity products which provides certain benefits if the policyowner's account
value has not reached a "target value" on its tenth anniversary. At the option
of the policyowner, the benefit will be distributed in the form of an annual or,
if annuitization is selected, a lump-sum credit to the contractowner's account.
The Company also offers single premium and flexible premium variable life
insurance products and a term life insurance product in support of an
affiliate's mutual fund products.
<PAGE>
Results of Operations
Annuity and life insurance sales volume for the three months ended March 31,
2000 and 1999 was $2,723,085,000 and $1,429,826,000, respectively, an increase
of 90%. This increase was the result of innovative product development
activities, favorable market conditions, the development of business
relationships with and the retention of top producers, and the strong
performance of the underlying mutual funds, which support the Separate Account
assets.
As a result of the growth in sales and assets under management, contractowner
fees and charges and charges generated from transfer agency-type and investment
support activities increased $58,581,000 or 76% from the three months ended
March 31, 2000. The increase in fee income for the three month period ended
March 31, 1999 from the three month period ended March 31, 1998 was 54%.
Premium income represents premiums earned on sales of immediate annuities with
life contingencies, supplementary contracts with life contingencies and certain
life insurance products. There have been minimal sales of these ancillary
products during both 2000 and 1999.
Annuity benefits relate to annuity contracts with mortality risks, such as,
immediate annuity contracts with life contingencies and supplementary contracts
with life contingencies. Due to the age of these policies in force and the
relative insignificance of these products to the Company's overall portfolio of
products, fluctuations in these benefits were of marginal importance to the
Company's total operations.
The change in annuity policy reserves includes changes in reserves related to
annuity contracts with mortality risks as well as the Company's guaranteed
minimum death benefit ("GMDB") liability. During the second quarter of 1999, the
Company's agreement to reinsure substantially all of its exposure on the GMDB
was terminated and the business was recaptured, as the reinsurer had announced
its intention to exit this market. The increase in reserves resulting from this
change was offset by a decrease in reserves associated with the change in
reserve methodology on the GMDB. The new reserve methodology complies with the
National Association of Insurance Commissioners Actuarial Guideline XXXIV. In
the latter half of 1999, the Company instituted a hedge program to manage the
market risk and reserve fluctuations associated with the GMDB policies through
the use of equity put options. The Company is currently continuing this program
while evaluating alternative hedging strategies.
The reinsurance premium associated with the GMDB exposure was based on levels
of assets under management. Due to increased sales and account growth, this cost
had increased in recent years and reached $1,749,000 for the first three months
of 1999 before the treaty was terminated.
Return credited to contractowners consists of revenues on the variable and
market value adjusted annuities and variable life insurance, offset by the
benefit payments and change in reserves required on this business. Market value
adjusted annuity activity has the largest impact on this benefit. Through the
first three months of 2000 and 1999, the Separate Account investment returns on
these contracts exceeded the expected returns calculated in the reserves.
Underwriting, acquisition and other insurance expenses for the three months
ended March 31, 2000 and 1999 were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
(in thousands) 2000 1999 Change
---- ---- ------
Commissions and general expenses $216,055 $116,345 $99,710
Net capitalization of deferred
acquisition costs (139,763) (64,467) (75,296)
---------- ----------- --------
Underwriting, acquisition and other
insurance expenses $ 76,292 $ 51,878 $ 24,414
======== ======== ========
</TABLE>
Commissions, general operating expenses and the net deferral of acquisition
costs have all increased in 2000, due largely to record sales. Current sales
trends have resulted in a shift to asset based commission agreements. This
coupled with increased asset levels from increased sales and equity market
appreciation have led to an 86% increase in commissions and general expenses.
Interest expense increased $16,443,000 or 119% over the three months ended March
31, 2000 as a result of additional financing transactions, which consisted of
the sale of future fees to ASI, through a trust ("securitization transactions")
initiated throughout 1999 and 2000, offset by a decrease in surplus notes
outstanding. Surplus notes as of March 31, 2000 and December 31, 1999 totaled
$179,000,000.
<PAGE>
The effective income tax rate for the three months ended March 31, 2000, and
1999 was 29% and 22%, respectively. The effective rate is lower than the
corporate rate of 35% due to permanent differences, with the most significant
item being the dividend received deduction. Management believes that based on
the taxable income produced in 1999 and the first three months of 2000, as well
as the continued growth in annuity sales, the Company will produce sufficient
taxable income in the future to realize its deferred tax assets.
The Company generated net income after tax of $24,181,000 and $13,410,000 for
the three months ended March 31, 2000 and 1999, respectively, as a result of
strong sales growth and favorable market conditions. The Company considers
Mexico an emerging market and has invested in the Skandia Vida operations with
the expectation of generating profits from long-term savings products in future
years. As such, Skandia Vida has generated net losses of $167,000 and $565,000
during the same time periods, respectively.
Total assets grew $4,185,626,000 or 14% since December 31, 1999 as a result of
the substantial sales volume and market growth of the separate account assets.
The sales and market growth also drove increases in deferred acquisition costs,
as well as fixed maturity investments held in support of the Company's risk
based capital requirements. Liabilities grew $4,160,173,000 or 14%, since
December 31, 1999 as a result of the reserve increases required based on sales
activity along with the sale of future fees and charges during these periods.
These sales of future fees and charges to ASI are needed to fund the acquisition
costs of the Company's variable annuity and life insurance business.
Liquidity and Capital Resources
The Company's liquidity requirement was met by cash from insurance operations,
investment activities, borrowings from ASI and the sale of rights to future fees
and charges to ASI.
The majority of the operating cash outflow resulted from the sale of variable
annuity and variable life products 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 cost for the new business.
This cash strain required the Company to look beyond the cash made available by
insurance operations and investments of the Company to financing in the form of
surplus notes, capital contributions, the sale of certain rights to future fees
and charges as well as modified coinsurance reinsurance arrangements:
o During the first three months of 2000 and 1999, the Company received
$1,600,000 and $1,200,000, respectively, from ASI to support its
investment in Skandia Vida.
o Funds received from new securitization transactions amounted to
$169,459,000 for the three months ended March 31, 2000. There were no such
transactions in the first quarter of 1999.
o The Company continues to extend its reinsurance agreements for new blocks
of business. The reinsurance agreements are modified coinsurance
arrangements where the reinsurer shares in the experience of a specific
book of business.
The Company expects the continued use of reinsurance and securitization
transactions to fund the cash strain anticipated from acquisition costs on the
coming years' sales volume.
The Company has long-term surplus notes and short-term borrowings with ASI. No
dividends have been paid to ASI.
The National Association of Insurance Commissioners ("NAIC") requires insurance
companies to report information regarding minimum Risk Based Capital ("RBC")
requirements. These requirements are intended to allow insurance regulators to
identify companies which may need regulatory attention. The RBC model law
requires that insurance companies apply various factors to asset, premium and
reserve items, all of which have inherent risks. The formula includes components
for asset risk, insurance risk, interest risk and business risk. The Company has
complied with the NAIC's RBC reporting requirements and has total adjusted
capital well above required capital.
<PAGE>
Year 2000 Compliance
The Company's computer support is provided by its affiliate, American Skandia
Information Services and Technology Corporation, which also provides such
support for the Company's affiliated broker-dealer, American Skandia Marketing,
Incorporated and the Company's affiliated investment advisory firm, American
Skandia Investment Services, Incorporated. Because of the nature of the
Company's business, any assessment of the potential impact of the Year 2000
issues on the Company must be an assessment of the potential impact of these
issues on all these companies, which are referred to below as "American
Skandia".
The Company experienced no significant errors or disruptions in computer
service, interfaces with computer systems of investment managers, sub-advisors,
third party administrators, vendors and other business partners on or after
January 1, 2000.
American Skandia engaged external information technology specialists to review
its operating systems and internally developed software.
American Skandia continues to review new and existing systems and has
contingency plans in place as part of its Business Continuity Plan. This plan
involves virtually all aspects of the business and will continue to be a focus
of management beyond the Year 2000 event.
<PAGE>
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(a wholly-owned subsidiary of Skandia Insurance Company Ltd.)
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes to the Company's market risk during the
three months ended March 31, 2000. The Company has provided a discussion of its
market risks in Item 7A of Part II of the December 31, 1999 Form 10-K.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) See Exhibit Index
(b) None
<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
May 11, 2000
<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
<TABLE> <S> <C>
<ARTICLE> 7
<CIK> 0000881453
<NAME> American Skandia Life Assurance Corporation
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 199,654
<DEBT-CARRYING-VALUE> 202,901
<DEBT-MARKET-VALUE> 202,887
<EQUITIES> 22,912
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 228,250
<CASH> 128,717
<RECOVER-REINSURE> 7,273
<DEFERRED-ACQUISITION> 1,222,855
<TOTAL-ASSETS> 35,036,024 <F1>
<POLICY-LOSSES> 24,317
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 189,000
0
0
<COMMON> 2,500
<OTHER-SE> 382,387
<TOTAL-LIABILITY-AND-EQUITY> 35,036,024 <F2>
603
<INVESTMENT-INCOME> 2,876
<INVESTMENT-GAINS> 729
<OTHER-INCOME> 136,652 <F3>
<BENEFITS> 81
<UNDERWRITING-AMORTIZATION> 37,223
<UNDERWRITING-OTHER> 69,337
<INCOME-PRETAX> 34,219
<INCOME-TAX> 10,038
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 24,181
<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
<FN>
<F1> Included in Total Assets are Assets Held in Separate Accounts of
$33,386,262.
<F2> Included in Total Liabilities and Equity are Liabilities Related to
Separate Accounts of $33,386,262.
<F3> Other income includes annuity charges and fees of $104,833 and fee income
of $31,143.
</FN>
</TABLE>
