EXHIBIT 99.1
PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
The pro forma adjustments presented in the condensed consolidated balance sheet
that follows reflect the Company's sale of its 28.4% interest in DLJ to Credit
Suisse Group on a pro forma basis as if the transaction had occurred on
September 30, 2000. The Company received $1.05 billion in cash and $2.19 billion
in Credit Suisse Group common stock for its shareholdings in DLJ. Credit Suisse
Group repurchased $530.2 million of its common stock from the Company at
closing. The Company estimates the gain on the DLJ sale at $1.10 billion (net of
$868.2 million in taxes, including the $186.3 million recorded in third quarter
2000). The Company's book value of its investment in DLJ at September 30, 2000
was $1.28 billion.
The Company has historically reflected its investment in DLJ using the equity
method of accounting. If the sale of DLJ had occurred on January 1, 1999, the
Company would not have reported the equity interest in the earnings of DLJ of
$139.1 million and $183.0 million in its statements of earnings for the nine
months ended September 30, 2000 and the year ended December 31, 1999,
respectively. In the 2000 period, the incremental tax charge of $186.3 million
would also have been eliminated. Giving effect to these adjustments, the
Company's pro forma earnings from continuing operations would have been $601.2
million and $595.5 million for the nine months ended September 30, 2000 and the
year ended December 31, 1999, respectively.
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PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED)
THE COMPANY PRO FORMA ADJUSTMENTS THE COMPANY
AT SEPTEMBER 30, 2000 HISTORICAL DEBIT CREDIT PRO FORMA
------------------------------------ --------------- -------------- ---------------- -----------------
(IN MILLIONS)
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ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated
fair value....................... $ 16,745.5 $ 16,745.5
Held to maturity, at amortized
costs............................ 140.1 140.1
Mortgage loans on real estate....... 3,078.2 3,078.2
Equity real estate.................. 997.4 997.4
Policy loans........................ 2,473.9 2,473.9
Other equity investments............ 860.6 $ 2,194.0(1) $ 530.2(2) 2,524.4
Investment in and loans to
affiliates........................ 1,366.8 1,278.9(1) 87.9
Other invested assets............... 2,632.2 2,632.2
--------------- ------------- --------------- ----------------
Total investments............. 28,294.7 2,194.0 1,809.1 28,679.6
Cash and cash equivalents........... 213.3 1,050.4(1) 1,793.9
530.2(2)
Deferred policy acquisition
costs............................. 4,325.3 4,325.3
Other assets........................ 6,062.0 6,062.0
Closed Block assets................. 8,720.7 8,720.7
Separate Accounts assets............ 55,778.6 55,778.6
--------------- ------------- -------------- -----------------
Total Assets.................. $ 103,394.6 $ 3,774.6 $ 1,809.1 $ 105,360.1
=============== ============= ============== =================
LIABILITIES
Policyholders' account balances..... $ 20,068.1 $ 20,068.1
Future policy benefits and
other policyholders liabilities... 4,924.1 4,924.1
Short-term and long-term debt....... 1,897.6 1,897.6
Other liabilities................... 5,144.9 $ 681.9(1) 5,826.8
Closed Block liabilities............ 9,085.3 9,085.3
Separate Account liabilities........ 55,690.2 55,690.2
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Total liabilities............. 96,810.2 681.9 97,492.1
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SHAREHOLDER'S EQUITY
Common stock, $1.25 par value,
2.0 million authorized, issued
and outstanding................... 2.5 2.5
Capital in excess of par value...... 3,974.8 3,974.8
Retained earnings................... 2,898.3 1,283.6(1) 4,181.9
Accumulated other
comprehensive loss............... (291.2) (291.2)
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Total shareholder's equity.... 6,584.4 1,283.6 7,868.0
--------------- -------------- -------------- -----------------
Total Liabilities and
Shareholder's Equity............. $ 103,394.6 $ 1,965.5 $ 105,360.1
=============== ============== ============== =================
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(1) Reflects the receipt of the $2.19 billion in Credit Suisse Group common
stock and the $1.05 billion in cash upon the sale of the Company's $1.28 billion
investment in DLJ, along with the incremental tax liability of $681.9 million
and the net gain reported in retained earnings.
(2) Reflects the sale of $530.2 million of Credit Suisse Group common stock back
to the Credit Suisse Group.
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