Registration No. 333-19925
Registration No. 811-1705
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 |_|
Pre-Effective Amendment No. |_|
Post-Effective Amendment No. 1 |X|
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 |_|
Amendment No. 63 |X|
(Check appropriate box or boxes)
--------------------------
SEPARATE ACCOUNT A
of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
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THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Name of Depositor)
1290 Avenue of the Americas, New York, New York 10104
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: (212) 554-1234
--------------------------
MARY P. BREEN
VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas, New York, New York 10104
(Name and Address of Agent for Service)
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Please send copies of all communications to:
PETER E. PANARITES
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Suite 825
Washington, D.C. 20036
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Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective (check
appropriate box):
[ ] Immediately upon filing pursuant to paragraph (b) of Rule 485
[X] On May 1, 1998 pursuant to paragraph (b) of Rule 485.
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
[ ] On (date) pursuant to paragraph (a)(1) of Rule 485.
If appropriate, check the following box:
[ ] This post-effective amendment designates a new effective date for
previously filed post-effective amendment.
Title of Securities Being Registered:
Units of interest in Separate Account under variable annuity contracts.
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Cross Reference Sheet
Showing Location of Information in Prospectus
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Form N-4 Item Prospectus Caption
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1. Cover Page Cover Page
2. Definitions General Terms
3. Synopsis Part 1: Summary
4. Condensed Financial Not Applicable
Information
5. General Description of Part 1: Summary, Part 2:
Registrant, Depositor and Separate Account A
Portfolio Companies and its Investment Funds
6. Deductions and Expenses Part 6: Deductions and Charges
7. General Description of Part 5: Provisions of the
Variable Annuity Contracts Contracts
8. Annuity Period Part 5: Provisions of the Contracts
9. Death Benefit Not Applicable
10. Purchases and Contract Value Part 3: Illustrated Monthly Variable Income
Annuity Option Payments
Part 5: Provisions of the Contracts
11. Redemptions Not Applicable
12. Taxes Part 8: Tax Aspects of the Contracts
13. Legal Proceedings Not Applicable
14. Table of Contents of the Statement of Additional
Statement of Additional Information Table of
Information Contents
</TABLE>
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Cross Reference Sheet
Showing Location of Information
in Statement of Additional Information
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<TABLE>
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Statement of Additional
Form N-4 Item Information Caption
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15. Cover Page Cover Page
16. Table of Contents Table of Contents
17. General Information Prospectus - Part 1: Summary
and History
18. Services Not Applicable
19. Purchases of Securities Prospectus - Part 5: Provisions
Being Offered of the Contracts - Distribution of Contracts
20. Underwriters Prospectus - Part 5: Provisions
of the Contracts - Distribution of Contracts
21. Calculation of Performance Part 2: Annuity Unit Values
Data
22. Annuity Payments Part 2: Annuity Unit Values
23. Financial Statements Part 4: Financial Statements
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VARIABLE IMMEDIATE ANNUITY
PROSPECTUS DATED MAY 1, 1998
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VARIABLE IMMEDIATE ANNUITY CONTRACT FUNDED THROUGH THE
INVESTMENT FUNDS OF SEPARATE ACCOUNT A
Issued By:
The Equitable Life Assurance Society of the United States
This prospectus describes the single premium payment Variable Immediate Annuity
Contract (CONTRACT) offered by The Equitable Life Assurance Society of the
United States (EQUITABLE LIFE). The Contract is designed to implement the
payment of annuity benefits to be received as part of a retirement plan.
The Contract offers a Variable Income Annuity Option funded through one or more
of fourteen variable investment funds (INVESTMENT FUNDS) of Separate Account A
(SEPARATE ACCOUNT) listed below. The Contract also offers a Fixed Income Annuity
Option funded by our general account and available in combination with the
Variable Income Annuity Option.
INVESTMENT FUNDS
<TABLE>
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<S> <C> <C>
o Alliance Money Market o Alliance Growth & Income Asset Allocation Series:
o Alliance Intermediate Government o Alliance Equity Index o Alliance Conservative Investors
Securities o Alliance Common Stock o Alliance Balanced
o Alliance Quality Bond o Alliance Global o Alliance Growth Investors
o Alliance High Yield o Alliance International
o Alliance Aggressive Stock
o Alliance Small Cap Growth
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</TABLE>
We invest each Investment Fund in shares of a corresponding portfolio
(PORTFOLIO) of The Hudson River Trust (TRUST), a mutual fund whose shares are
purchased by separate accounts of insurance companies. The prospectus for the
Trust, directly following this prospectus, describes the investment objectives,
policies and risks of the Portfolios.
Transfers among the Investment Funds are permitted. No transfers are permitted
between the Fixed Income Annuity Option and the Variable Income Annuity Option.
After a Contract has been issued, it may not be surrendered. The Contract has no
cash value. Monthly payments under the Variable Income Annuity Option will vary
in accordance with the investment performance of the Investment Funds.
This prospectus provides information about the Contract that prospective
investors should know before investing. You should read it carefully and retain
it for future reference. The prospectus is not valid unless it is attached to a
current prospectus for the Trust, which you should also read carefully.
A registration statement relating to the Separate Account has been filed with
the Securities and Exchange Commission (SEC). The statement of additional
information (SAI), dated May 1, 1998, which is part of the registration
statement for the Separate Account, is available free of charge upon request by
writing to the Processing Office at P.O. Box 2494, New York, New York 10116-2494
or calling 1-800-245-1230, our toll-free number. The SAI has been incorporated
by reference into this prospectus. The Table of Contents for the SAI appears at
the back of this prospectus.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
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Copyright 1998
The Equitable Life Assurance Society
of the United States, New York, New York 10104.
All rights reserved.
888-1156 Cat. No. 127661
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PROSPECTUS TABLE OF CONTENTS
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GENERAL TERMS PAGE 3
PART 1: SUMMARY PAGE 4
Equitable Life 4
Income Annuity Options 4
Premium Payments 4
Transfers 4
10-Day Free Look 5
Year 2000 Progress 5
Charges 5
Fee Table 6
Hudson River Trust Annual Expenses 6
PART 2: SEPARATE ACCOUNT A AND
ITS INVESTMENT FUNDS PAGE 7
Separate Account A 7
The Trust 7
The Trust's Investment Adviser 8
Investment Policies and Objectives
of the Trust's Portfolios 9
PART 3: VARIABLE INCOME
ANNUITY OPTIONS PAGE 11
Factors That Affect Monthly
Variable Annuity Payments 11
PART 4: FIXED INCOME
ANNUITY OPTION PAGE 12
PART 5: PROVISIONS OF THE CONTRACTS PAGE 13
Selecting Annuity Options 13
Premium Payments under
the Contracts 13
Transfers 13
Annuity Distribution Options 14
How Payments Are Determined 14
Annuity Unit Values 14
Distribution of the Contract 14
PART 6: DEDUCTIONS AND CHARGES PAGE 15
Trust Charges to Portfolios 15
Charges to Investment Funds 15
Administrative Expense Charge 15
Other Charges 15
Charge for Applicable Taxes 15
PART 7: VOTING RIGHTS PAGE 16
Trust Voting Rights 16
Separate Account Voting Rights 16
Voting Rights of Others 16
Changes in Applicable Law 16
PART 8: TAX ASPECTS OF THE CONTRACT PAGE 17
Tax Changes 17
Taxation of Annuity Payments 17
Special Rules for Tax-Favored
Retirement Programs 18
Qualified Plans and TSAs 18
IRAs 18
Federal and State Income Tax
Withholding 19
Special Rules for Contracts
Issued in Puerto Rico 20
Impact of Taxes to Equitable Life 20
PART 9: OTHER INFORMATION PAGE 21
Financial Statements 21
Legal Proceedings 22
APPENDIX PAGE 23
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS PAGE 24
2
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GENERAL TERMS
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The Contract is designed as an annuity benefit payment vehicle for either
personal or employer-sponsored retirement programs. In this prospectus, the
terms "we," "our" and "us" mean The Equitable Life Assurance Society of the
United States (Equitable Life). The terms "you" and "your" refer to the Contract
Owner.
AIR -- The assumed base rate of net investment return used in determining
monthly payments under the Contract.
ANNUITANT -- The individual who is the measuring life for determining annuity
benefits. The Annuitant may, in certain cases, not be the Contract Owner. The
Annuitant is entitled to exercise rights under a Contract only if that person is
also the Contract Owner.
ANNUITY UNIT -- Premiums allocated to an Investment Fund purchase annuity units
in that Investment Fund. The "Annuity Unit Value" is the dollar value of each
Annuity Unit in an Investment Fund on a given date.
BUSINESS DAY -- Generally, our Business Day is any day on which Equitable Life
is open and the New York Stock Exchange is open for trading. We are closed on
national business holidays and also on Martin Luther King, Jr. Day and the
Friday after Thanksgiving. Additionally, we may choose to close on the day
immediately preceding or following a national business holiday or due to
emergency conditions. Our Business Day ends at 4:00 p.m. Eastern Time.
CODE -- The Internal Revenue Code of 1986, as amended.
CONTRACT -- The Variable Immediate Annuity Contract.
CONTRACT DATE -- This is the Business Day, and any anniversary thereof, we
receive at our Processing Office the properly completed and signed application
form for your Contract, any other required documentation and a premium payment.
CONTRACT OWNER -- The person who owns the Contract. The person who is entitled
to exercise rights under the Contract and to receive the annuity benefits
(unless another payee is designated).
INCOME ANNUITY OPTIONS -- The Variable Income Annuity funded by one or more of
the fourteen Investment Funds, and the Fixed Income Annuity funded by our
general account and available in combination with the Variable Income Annuity.
INVESTMENT FUNDS -- These are the fourteen variable investment funds of the
Separate Account that are listed on the first page of this prospectus.
PORTFOLIOS -- The portfolios of the Trust that correspond to the Investment
Funds of the Separate Account.
PROCESSING OFFICE -- The office to which all premiums, written requests or other
written communications must be sent.
SAI -- The Statement of Additional Information.
SEPARATE ACCOUNT -- Our Separate Account A.
TRUST -- The Hudson River Trust, a mutual fund in which the assets of Separate
Account A are invested.
3
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PART 1: SUMMARY
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The following Summary is qualified in its entirety by the terms of the Contract
as issued and the more detailed information appearing elsewhere in the
prospectus. Please be sure to read the prospectus in its entirety.
EQUITABLE LIFE
EQUITABLE LIFE is a New York stock life insurance company that has been in
business since 1859. For more than 100 years we have been among the largest life
insurance companies in the United States. Equitable Life has been selling
annuities since the turn of the century. Our Home Office is located at 1290
Avenue of the Americas, New York, New York 10104. We are authorized to sell life
insurance and annuities in all fifty states, the District of Columbia, Puerto
Rico and the Virgin Islands. We maintain local offices throughout the United
States.
Equitable Life is a wholly owned subsidiary of The Equitable Companies
Incorporated (the HOLDING COMPANY). The largest stockholder of the Holding
Company is AXA-UAP S.A. (AXA), a French company. As of December 31, 1997, AXA
beneficially owned approximately 58.7% of the outstanding common stock of the
Holding Company. Under its investment arrangements with Equitable Life and the
Holding Company, AXA is able to exercise significant influence over the
operations and capital structure of the Holding Company and its subsidiaries,
including Equitable Life. AXA is the holding company for an international group
of insurance and related financial service companies.
Equitable Life, the Holding Company and their subsidiaries managed approximately
$274.1 billion of assets as of December 31, 1997, including third party assets
of approximately $216.9 billion. We are one of the nation's leading pension fund
managers. These assets are primarily managed for retirement and annuity programs
for businesses, tax-exempt organizations and individuals. This broad customer
base includes nearly half the Fortune 100, more than 42,000 small businesses,
state and local retirement funds in more than half the 50 states, approximately
250,000 employees of educational and non-profit institutions, as well as nearly
500,000 individuals. Millions of Americans are covered by Equitable Life's
annuity, life and pension contracts.
INCOME ANNUITY OPTIONS
The Contract offers the Variable Income Annuity Option, funded through one or
more of the fourteen Investment Funds (Alliance Money Market, Alliance
Intermediate Government Securities, Alliance Quality Bond, Alliance High Yield,
Alliance Growth & Income, Alliance Equity Index, Alliance Common Stock, Alliance
Global, Alliance International, Alliance Aggressive Stock, Alliance Small Cap
Growth and the Alliance Asset Allocation Series: Alliance Conservative
Investors, Alliance Balanced and Alliance Growth Investors) and a Fixed Income
Annuity Option funded by our general account and available in combination with
the Variable Income Annuity Option. The Fixed Income Annuity Option is not
available separately under this Contract.
Each Investment Fund invests in shares of a corresponding Portfolio of the
Trust. The attached Trust prospectus describes the investment objectives and
policies of the Portfolios available to Contract Owners. The Income Annuity
Options are available only in forms that provide for life contingencies. Once
issued, a Contract may not be surrendered. The Contract does not have a cash
surrender value.
PREMIUM PAYMENTS
The single premium payment for a Contract must be made by check, drawn on a bank
in the U.S., in U.S. dollars and made payable to Equitable Life. All checks are
accepted subject to collection.
You may instruct us to allocate your payment to one or more of the Investment
Funds under a Variable Income Annuity Option, whether or not purchased in
combination with a Fixed Income Annuity Option. Allocation percentages must be
in whole numbers and the sum of your allocations must equal 100%.
TRANSFERS
You may direct us to transfer funds among the Investment Funds available under
the Contract at least once per year, on the Contract Date, although Equitable
Life may, in accordance with its procedures, allow more frequent transfers
without tax liability or
4
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charge. The Fixed Income Annuity Option does not provide for transfers.
10-DAY FREE LOOK
You have the right to examine your Contract for a period of 10 days after you
receive it, and to return it to us for a refund. You cancel it by sending it to
our Processing Office. The free look is extended if your state requires a refund
period of longer than 10 days. This right applies only to the initial Owner of a
Contract.
For premium payments allocated to Investment Funds, your refund will equal that
premium payment plus or minus any investment gain or loss through the date we
receive your Contract at our Processing Office less any annuity payments you may
have already received. Certain daily charges will also be automatically
deducted. For premium payments allocated to purchase the Fixed Income Annuity
Option, the refund will equal the amount allocated to the Fixed Income Annuity
Option, without interest, less any payments already received. Some states or
Federal income tax regulations may require that we calculate the refund
differently. We follow these same procedures if you change your mind before a
Contract has been issued, but after a premium payment has been made.
In certain cases, there may be tax implications to canceling your Contract
during the free look period. You should consult your own tax adviser prior to
investing.
YEAR 2000 PROGRESS
Equitable Life relies upon various computer systems in order to administer your
Contract and operate the Income Annuity Options. Some of these systems belong to
service providers who are not affiliated with Equitable Life.
In 1995, Equitable Life began addressing the question of whether its computer
systems would recognize the year 2000 before, on or after January 1, 2000, and
Equitable Life believes it has identified those of its systems critical to
business operations that are not Year 2000 compliant. By year end 1998,
Equitable Life expects that the work of modifying or replacing non-compliant
systems will substantially be completed and expects a comprehensive test of its
Year 2000 compliance will be performed in the first half of 1999. Equitable Life
is in the process of seeking assurances from third party service providers that
they are acting to address the Year 2000 issue with the goal of avoiding any
material adverse effect on services provided to contract holders and on
operations of the Income Annuity Options. Any significant unresolved difficulty
related to the Year 2000 compliance initiatives could have a material adverse
effect on the ability to administer your policy and operate the Income Annuity
Options. Assuming the timely completion of computer modifications by Equitable
Life and third party service providers, there should be no material adverse
effect on our ability to perform these functions.
CHARGES
Following is a summary of the charges which are applicable, directly or
indirectly, under your Contract.
o ADMINISTRATIVE EXPENSE CHARGE-- A one-time charge of $350 is deducted from
the premium payment for administrative expenses of the Contract.
o OTHER CHARGES-- A charge equal to 6% of the premium payment is deducted for
sales expenses when the premium payment is made. No other sales charge
applies.
o CHARGES TO INVESTMENT FUNDS -- We make daily charges for certain expenses of
the Contract, including mortality and expense risks and administrative
expenses, including financial accounting. The charges are assessed against
the Separate Account assets at an annual rate not to exceed 1.25% for
mortality and expense risks and 0.30% for administrative expenses, including
financial accounting. The Annuity Unit Values reflect these charges.
o CHARGE FOR APPLICABLE TAXES -- We deduct a charge for applicable taxes, such
as state or local premium taxes, that might be imposed in your state. The
current tax charge that might be imposed varies by state and ranges from 0%
to 3.50% of the premium payment made; the rate is 1% in Puerto Rico and 5%
in the Virgin Islands.
o TRUST CHARGES TO PORTFOLIOS -- Investment advisory fees and other expenses
of the Trust are charged daily against the Trust's assets. These charges are
reflected in the daily share prices of the Portfolios and, indirectly, in
the Annuity Unit Values for the Investment Funds.
5
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FEE TABLE
The following table will assist you in understanding the various costs and
expenses you will bear directly or indirectly under your Contract so that you
may compare them with other products. The only expenses shown in the tables that
apply to the Fixed Income Annuity Option are the Administrative Expense Charge
and Front-End Sales Charge. The table reflects expenses of the Separate Account
as well as the Trust. A deduction of a charge for any applicable state or local
taxes may also apply. For more complete information, see "Part 6: Deductions and
Charges."
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CONTRACT OWNER TRANSACTION EXPENSES
ADMINISTRATIVE EXPENSE CHARGE (DEDUCTED FROM PREMIUM PAYMENT)..................................... $350
OTHER CHARGES (AS A PERCENTAGE OF PREMIUM PAYMENT)................................................ 6.00%
SEPARATE ACCOUNT ANNUAL EXPENSES (MAXIMUM)(1)
Mortality and Expense Risk Charge................................................................. 1.25%
Asset-Based Administrative Charge................................................................. 0.30%
Total Separate Account Annual Expenses (1)........................................................ 1.55%
</TABLE>
HUDSON RIVER TRUST ANNUAL EXPENSES
<TABLE>
<CAPTION>
ALLIANCE
INTERMEDIATE ALLIANCE
ALLIANCE GOVERNMENT ALLIANCE ALLIANCE GROWTH & ALLIANCE
MONEY MARKET SECURITIES QUALITY BOND HIGH YIELD INCOME EQUITY INDEX
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<S> <C> <C> <C> <C> <C> <C>
Investment Advisory Fees 0.35% 0.50% 0.53% 0.60% 0.55% 0.32%
Other Expenses 0.04% 0.06% 0.05% 0.04% 0.04% 0.04%
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Total Trust Annual
Expenses (2) (3) 0.39% 0.56% 0.58% 0.64% 0.59% 0.36%
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<CAPTION>
ALLIANCE ALLIANCE ALLIANCE ALLIANCE ALLIANCE
COMMON ALLIANCE ALLIANCE AGGRESSIVE SMALL CAP CONSERVATIVE ALLIANCE GROWTH
STOCK GLOBAL INTERNATIONAL STOCK GROWTH INVESTORS BALANCED INVESTORS
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Advisory Fees 0.37% 0.65% 0.90% 0.54% 0.90% 0.48% 0.42% 0.52%
Other Expenses 0.03% 0.08% 0.18% 0.03% 0.05% 0.07% 0.05% 0.05%
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Total Trust Annual
Expenses (2) (3) 0.40% 0.73% 1.08% 0.57% 0.95% 0.55% 0.47% 0.57%
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</TABLE>
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Notes:
(1) We are currently charging only 0.50% against the amounts held in the
Investment Funds. We reserve the right to impose a charge in the future of
up to 1.55% against the amounts held in the Investment Funds.
(2) Effective May 1, 1997, a new Investment Advisory Agreement was entered into
between the Trust and Alliance Capital Management L.P., the Trust's
Investment Adviser, which effected changes in the Trust's management fee
and expense structure. See the Trust prospectus for more information.
The table reflects the Trust's estimated expenses based on information for
the year ended December 31, 1997, and has been restated to reflect (i) the
fees that would have been paid to Alliance if the current advisory
agreement had been in effect as of January 1, 1997 and (ii) estimated
accounting expenses for the year ending December 31, 1997.
(3) The investment advisory fee for each Portfolio may vary from year to year
depending upon the average daily net assets of the respective Portfolio of
the Trust. The maximum investment advisory fees, however, cannot be
increased without a vote of that Portfolio's shareholders. The other direct
operating expenses will also fluctuate from year to year depending on
actual expenses. The Trust expenses are shown as a percentage of each
Portfolio's average net assets. See "Trust Charges to Portfolios" in Part
6.
6
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PART 2: SEPARATE ACCOUNT A AND ITS INVESTMENT FUNDS
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SEPARATE ACCOUNT A
Separate Account A is organized as a unit investment trust, a type of investment
company, and is registered with the Securities and Exchange Commission (SEC)
under the Investment Company Act of 1940 (1940 ACT). This registration does not
involve any supervision by the SEC of the management or investment policies of
the Separate Account. The Separate Account has several Investment Funds, each of
which invests in shares of a corresponding Portfolio of the Trust. You may
allocate some or all of your premium among the Investment Funds.
The assets of the Separate Account are our property. As a separate account under
the New York Insurance Law, the portion of the Separate Account's assets equal
to the reserves and other liabilities relating to the Contract will not be
chargeable with liabilities arising out of any other business we may conduct.
Accordingly, income, gains or losses, whether or not realized, from assets of
the Separate Account are credited to or charged against the Separate Account
without regard to our other income, gains or losses. We are the issuer of the
Contract, and the obligations set forth in the Contract (other than those of
Annuitants or Contract Owners) are our obligations.
In addition to the premium payment made under your Contract, we may allocate to
the Separate Account monies received under other annuity contracts, certificates
or agreements. Owners of all such contracts, certificates or agreements will
participate in the Separate Account in proportion to the amounts they have in
the Investment Funds that relate to their contracts, certificates or agreements.
We may retain in the Separate Account assets that are in excess of the reserves
and other liabilities relating to the Contract or to other contracts,
certificates or agreements, or we may transfer them to our general account.
We reserve the right, subject to compliance with applicable law, including
approval of Contract Owners if required, (1) to add new Investment Funds (or
subdivisions of Investment Funds) to, or remove Investment Funds (or
subdivisions of Investment Funds) from, the Separate Account; or to add other
separate accounts in addition to or in place of the Separate Account, (2) to
combine any two or more Investment Funds or subdivisions thereof, (3) to
transfer assets determined by us to be the share of the class to which the
Contracts belong from any of the Investment Funds to another Investment Fund by
withdrawing the same percentage of each investment in that Investment Fund with
appropriate adjustments to avoid odd lots and fractions, (4) to operate the
Separate Account or any Investment Fund as a management investment company under
the 1940 Act (which may be directed by a committee which may be composed of a
majority of persons who are "interested persons" of Equitable Life under the
1940 Act, which committee may be discharged by us at any time) or in any other
form permitted by law, including a form that allows us to make direct
investments, (5) to deregister the Separate Account under the 1940 Act, (6) to
cause one or more Investment Funds to invest in a mutual fund other than or in
addition to the Trust, (7) to discontinue the sale of Contracts, (8) to
terminate any employer or plan trustee agreement pursuant to its terms and (9)
to restrict or eliminate any voting rights of Contract Owners or other people
who have voting rights that affect the Separate Account.
If any changes are made that result in a material change in the underlying
investments of an Investment Fund, Contract Owners will be notified. We may make
other changes in the Contracts that do not reduce any annuity benefit, or other
accrued rights or benefits.
THE TRUST
The Trust is an open-end, diversified management investment company, more
commonly called a mutual fund. As a "series" type of mutual fund, it issues
several different series of stock, each of which relates to a different
Portfolio of the Trust. The Trust commenced operations in January 1976 with a
predecessor of its Common Stock Portfolio. The Trust does not impose a sales
charge or "load" for buying and selling its shares. All dividend distributions
to the Trust are reinvested in full and fractional shares of the Portfolio to
which they relate.
More detailed information about the Trust, its investment objectives, policies,
restrictions, risks, expenses and all other aspects of its operations, appears
in its prospectus, or in its statement of additional information.
7
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THE TRUST'S INVESTMENT ADVISER
The Trust is managed and advised by Alliance Capital Management LP (ALLIANCE),
which is registered with the SEC as an investment adviser under the Investment
Advisers Act of 1940. Alliance, an indirect, majority-owned subsidiary of
Equitable Life, is a publicly traded limited partnership. At December 31, 1997,
Alliance was managing approximately $218.7 billion in assets. Alliance acts as
investment adviser to various separate accounts and general accounts of
Equitable Life and other affiliated insurance companies. Alliance also provides
management and consulting services to mutual funds, endowments funds, insurance
companies, foreign entities, qualified and non-tax qualified corporate funds,
public and private pension and profit-sharing plans, foundations and tax-exempt
organizations.
Alliance's record as an investment manager is based, in part, on its ability to
provide a diversity of investment services to domestic, international and global
markets. Alliance prides itself on its ability to attract and retain a quality,
professional work force. Alliance employs 223 investment professionals,
including 83 research analysts. Portfolio managers have average investment
experience of more than 14 years.
Alliance's main office is located at 1345 Avenue of the Americas, New York, New
York 10105.
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INVESTMENT POLICIES AND OBJECTIVES OF THE TRUST'S PORTFOLIOS
Each Portfolio has a different investment objective which it tries to achieve by
following separate investment policies. The policies and objectives of each
Portfolio will affect its return and its risks. There is no guarantee that these
objectives will be achieved.
The policies and objectives of the Trust's Portfolios are as follows:
<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
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<S> <C> <C>
Alliance Money Market........ Primarily high-quality short-term money market High level of current income while
instruments. preserving assets and maintaining
liquidity.
Alliance Intermediate Primarily debt securities issued or guaranteed High current income consistent with
Government by the U.S. Government, its agencies and relative stability of principal.
Securities................ instrumentalities. Each investment will have
a final maturity of not more than 10 years
or a duration not exceeding that of a
10-year Treasury note.
Alliance Quality Bond........ Primarily investment grade fixed-income High current income consistent with
securities. preservation of capital.
Alliance High Yield.......... Primarily a diversified mix of high-yield, High return by maximizing current income
fixed-income securities involving greater and, to the extent consistent with that
volatility of price and risk of principal objective, capital appreciation.
and income than high-quality fixed-income
securities. The medium- and lower-
quality debt securities in which the
Portfolio may invest are known as "junk
bonds."
Alliance Growth & Primarily income producing common stocks and High total return through a combination of
Income.................... securities convertible into common stocks. current income and capital appreciation.
Alliance Equity Index........ Selected securities in the S&P 500 Index (the Total return performance (before trust
"Index") which the adviser believes will, expenses and Separate Account annual
in the aggregate, approximate the expenses) that approximates the
performance results of the Index. investment performance of the Index
(including reinvestment of dividends) at
risk level consistent with that of the
Index.
Alliance Common Stock........ Primarily common stock and other equity-type Long-term growth of capital and increasing
instruments. income.
Alliance Global.............. Primarily equity securities of non-United Long-term growth of capital.
States as well as United States companies.
Alliance International....... Primarily equity securities selected Long-term growth of capital.
principally to permit participation in
non-United States companies with
prospects for growth.
Alliance Aggressive Primarily common stocks and other equity-type Long-term growth of capital.
Stock..................... securities issued by medium- and other
smaller-sized companies with strong growth
potential.
</TABLE>
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<TABLE>
<CAPTION>
PORTFOLIO INVESTMENT POLICY OBJECTIVE
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alliance Small Cap Primarily common stocks and other Long-term growth of capital.
Growth................... equity-type securities issued by
smaller-sized companies with
strong growth potential.
Asset Allocation Series:
Alliance Conservative Diversified mix of publicly traded, High total return without, in the adviser's
Investors................ fixed-income and equity securities; opinion, undue risk to principal.
asset mix and security selection are
primarily based upon factors expected
to reduce risk. The Portfolio is
generally expected to hold
approximately 70% of its assets in
fixed-income securities and 30% in
equity securities.
Alliance Balanced............ Primarily common stocks, publicly traded High return through a combination of current
debt securities and high-quality money income and capital appreciation.
market instruments. The Portfolio is
generally expected to hold 50% of its
assets in equity securities and 50% in
fixed-income securities.
Alliance Growth Diversified mix of publicly traded, High total return consistent with the
Investors................ fixed-income and equity securities; adviser's determination of reasonable
asset mix and security selection based risk.
upon factors expected to increase
possibility of high long-term return.
The Portfolio is generally expected to
hold approximately 70% of its assets in
equity securities and 30% in
fixed-income securities.
</TABLE>
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PART 3: VARIABLE INCOME ANNUITY OPTIONS
- --------------------------------------------------------------------------------
FACTORS THAT AFFECT MONTHLY VARIABLE ANNUITY PAYMENTS
The amount of your first monthly variable annuity payment ("monthly payment")
will depend on the following factors:
1. the Variable Income Annuity Option that you select, your age and the age of
any joint Annuitant when you make your selection, and the gender of the
Annuitant(s);
2. the base rate of return ("base rate") or assumed investment return ("AIR")
shown on your Contract data page; and
3. the amount of premium that you allocate to the Investment Fund(s) under the
Variable Income Annuity Option that you select.
The amount of the first two monthly variable annuity payments is the same.
Thereafter, your monthly payments will vary according to the net investment
return (i.e., after deducting applicable charges) of the Investment Fund(s) you
selected.
This section describes how these factors can affect your monthly payments. Also,
see "How Payments Are Determined" in Part 5 of this prospectus.
VARIABLE INCOME ANNUITY OPTIONS
You can choose from four types of Variable Income Annuity Options. See "Annuity
Distribution Options" in Part 5 of this prospectus. Each Option involves a life
contingency, which means that Equitable Life guarantees that you will receive
annuity payments for the rest of your life and the life of any joint Annuitant.
Because each Variable Income Annuity Option involves a life contingency, the
amount of your first monthly payment will depend on your age, the age of any
joint Annuitant, and your gender and the gender of any joint Annuitant.
All other factors being equal, the older you are at the time of purchase,
generally the larger the amount of your monthly payments. The Variable Income
Annuity Options that do not involve a period certain or a joint Annuitant
generally will provide you with a higher monthly payment than Options that
involve those features. In addition, generally female Annuitants receive lower
monthly payments than male Annuitants of the same age.
ASSUMED INVESTMENT RETURN (AIR)
The AIR is the assumed base rate of investment return that we use to calculate
the amount of your initial monthly payment under your Contract. All Contracts
have an AIR of 5%, except for Contracts issued in states where a 3.5% AIR
(maximum) is used.
INVESTMENT FUNDS
You can allocate your premium dollars (net of initial charges) to one or more
Investment Funds. See "Investment Policies and Objectives of the Trust's
Portfolios" in Part 2 of this prospectus. Amounts allocated to the Investment
Funds purchase annuity units of the Funds. Each Investment Fund invests in
shares of a corresponding portfolio of the Trust, a mutual fund. The number of
annuity units purchased is calculated by dividing the first monthly payment by
the applicable annuity unit value as of the date the single premium amount is
received by us. The amount of the third and subsequent monthly payments is
calculated by multiplying the number of annuity units held in the Investment
Fund by the average annuity unit value for the selected Investment Fund. The
average annuity unit value is the average of the annuity unit values for the
second calendar month immediately preceding the due date of the payment. The
annuity unit values reflect the actual rate of net investment return (after
charges) of the applicable Investment Fund.
If an Investment Fund's net investment return equals the AIR, then the amount of
your monthly payment will not change. If the net investment return is greater
than the AIR, then the amount of your monthly payment will increase. Conversely,
if the net investment return is less than the AIR, then the amount of your
monthly payment will decrease.
Monthly payments under Contracts with AIRs of 3.5% will at first be smaller than
those under Contracts with AIRs of 5%. Monthly payments under Contracts with
AIRs of 3.5% also will generally rise more rapidly when annuity unit values are
rising, and will fall more slowly when annuity units are falling, than those
under Contracts with AIRs of 5%.
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PART 4: FIXED INCOME ANNUITY OPTION
- --------------------------------------------------------------------------------
You may allocate a portion of your premium payment to the Fixed Income Annuity
Option which is part of our general account. The general account supports all of
our insurance policy and annuity contract guarantees, as well as our general
obligations. The general account is subject to regulation and supervision by the
Insurance Department of the State of New York and to the insurance laws and
regulations of all jurisdictions where we are authorized to do business. Because
of applicable exemptive and exclusionary provisions, interests in the general
account have not been registered under the Securities Act of 1933 (1933 ACT),
nor is the general account an investment company under the 1940 Act.
Accordingly, the general account is not subject to regulation under the 1933 Act
or the 1940 Act. We have been advised that the staff of the SEC has not made a
review of the disclosures that are included in the prospectus for your
information and that relate to the general account and the Fixed Income Annuity
Option. These disclosures, however, may be subject to certain generally
applicable provisions of the Federal securities laws relating to the accuracy
and completeness of statements made in prospectuses.
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PART 5: PROVISIONS OF THE CONTRACTS
- --------------------------------------------------------------------------------
The provisions of your Contract may be restricted by any plan or agreement
relating to it or by applicable laws or regulations.
SELECTING ANNUITY OPTIONS
You may select the Variable Income Annuity Option funded through one or more of
the Investment Funds, alone, or in combination with the Fixed Income Annuity
Option. The first two monthly payments are fixed. The third and subsequent
monthly annuity payments received under the Variable Income Annuity Option will
increase or decrease depending upon the investment performance of the Investment
Funds. The amount of the payment received under the Fixed Income Annuity Option
will be the same each month and will not fluctuate. If you choose a combination
of the Variable Income Annuity and Fixed Income Annuity Options, you will
receive a single monthly payment representing the sum of the Variable Income
Annuity and Fixed Income Annuity payments due.
Annuity payments under the Contract will commence one month following the date
we receive your premium payment. The annuity distribution options available
under such Contracts are Life Annuity (except in New York), Life Annuity with
Period Certain, Joint and Survivor Life Annuity and Joint and Survivor Life
Annuity with Period Certain. Once issued, a Contract may not be surrendered. THE
CONTRACT DOES NOT HAVE A CASH SURRENDER VALUE.
PREMIUM PAYMENTS UNDER THE CONTRACTS
Premium payments are made in a single sum amount. Your premium payment must be
accompanied by a completed application. All premium payments must be made by
check, preferably on your personal or business account, drawn on a U.S. bank, in
U.S. dollars, and made payable to Equitable Life. All checks are accepted
subject to collection. Cash and traveler's checks are not acceptable. Third
party checks payable to someone other than Equitable Life and endorsed over to
Equitable Life are not acceptable unless the check is rollover money directly
from a qualified retirement plan or it is a trustee check that involves no
refund. At our discretion, and subject to such terms as we may require, we may
also allow premium payments to be made by wire transfers or other means.
Equitable's policy is to return any unacceptable forms of payment, and the
policyowner bears the risk of lapse or other consequences which may result from
the effective non-payment. We allocate premium payments to the annuity options
you select according to your allocation percentages.
This contract should not be used if the allocation to the Fixed Income Annuity
Option is 100%. Otherwise, there is no maximum amount of the premium payment
that you may allocate to the Fixed Income Annuity Option. The combination of
your allocations to the Fixed Income Annuity Option and the Variable Income
Annuity Option must equal 100%.
A premium payment allocated to an Investment Fund of the Variable Income Annuity
Option is converted to Annuity Units of that Investment Fund. The number of
Annuity Units credited equals the dollar amount of the initial annuity payment
divided by the Annuity Unit Value for that Investment Fund computed at the end
of the Valuation Period in which we receive the premium payment at our
Processing Office. A VALUATION PERIOD is each Business Day together with any
consecutive, preceding non-business days. The number of Annuity Units credited
upon the allocation of a premium payment, or any transfer to an Investment Fund,
will not vary because of any later change in the Annuity Unit Value, nor will
the number of Annuity Units credited under an Investment Fund change while
monthly annuity payments are being made based upon the Annuity Unit Value of the
Investment Fund. The Annuity Unit Value varies with the investment performance
(relative to the AIR) of the Investment Fund, which in turn reflects the
investment income and realized and unrealized capital gains and losses of the
corresponding Portfolio, as well as the Trust expenses. A description of the
computation of the Annuity Unit Value is found in the SAI.
TRANSFERS
You may transfer all or portions of the Annuity Units credited under your
Contract among the Investment Funds you have chosen at least once each year, on
the Contract Date although Equitable may, in accordance with its procedures,
allow more frequent transfers. The Contract does not permit transfers between
the Fixed Income Annuity Option and the Variable Income Annuity Option. Transfer
requests can be forwarded to the processing office up to 30 days prior to the
Contract Date. Any transfer request received after the Contract Date will be
returned. A transfer request will be effective on the next Contract Date after
receipt at our Processing Office. Transfers in or out of the Investment Funds
will be at the Annuity Unit Value computed as of such effective date. All
transfers among the Investment Funds will be
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<PAGE>
confirmed in writing. Your signed request for a transfer should specify your
Contract number, the amount of your Annuity Unit Value as of that date to be
transferred and the Investment Funds to and from which the amounts are to be
transferred.
ANNUITY DISTRIBUTION OPTIONS
You may elect to receive your Variable Income Annuity Option payments, or your
combined Variable Income Annuity Option and your Fixed Income Annuity Option
payments, on any one of the forms listed below. If your annuity payments are the
sum of amounts received under both the Variable Income Annuity Option and the
Fixed Income Annuity Option, you must select the same form for both.
o LIFE ANNUITY: An annuity which guarantees payments for the rest of the
Annuitant's life. Payments end with the last monthly payment before the
Annuitant's death. Because there is no continuing benefit following the
Annuitant's death, this annuity form provides the highest monthly payment of
any of the life annuity distribution options.
o LIFE ANNUITY -- PERIOD CERTAIN: This annuity form guarantees payments for
the rest of the Annuitant's life. In addition, if the Annuitant dies before
the end of a selected period of time (the "certain period"), payments will
continue to the beneficiary for the balance of the certain period. The
certain period cannot exceed life expectancy.
o JOINT AND SURVIVOR LIFE ANNUITY: This annuity form guarantees payments for
the rest of the Annuitant's life and, after his or her death, continuation
of the payments to the survivor.
o JOINT AND SURVIVOR LIFE ANNUITY -- PERIOD CERTAIN: This annuity form
guarantees payments for the rest of the Annuitants' lives. In addition, if
both Annuitants die before the period certain, payments will continue to the
beneficiary for the balance of the period certain. The certain period cannot
exceed joint life expectancy.
HOW PAYMENTS ARE DETERMINED
The size of the initial variable annuity payment will depend on the amount
applied to purchase the annuity, the AIR, the form of distribution, the
Annuitant's age (and any joint annuitant's age) and in certain instances, the
sex of the Annuitant(s). The growth in value of your annuity payments is neither
guaranteed nor projected. Once an annuity distribution option is chosen and
payments have commenced, the distribution option cannot be changed.
Under a Variable Income Annuity Option, payments after the first two will vary
according to the investment performance of the Investment Fund(s) selected to
fund the variable payments. After the first two payments, each monthly payment
will be calculated by multiplying the number of Annuity Units credited by the
average Annuity Unit Value for the selected fund for the second calendar month
immediately preceding the due date of the payment. The number of units is
calculated by dividing the first monthly payment by the Annuity Unit Value on
the Business Day the premium is received. The average Annuity Unit Value is the
average of the Annuity Unit Values for the month. In the case of a transfer
between Investment Funds, the number of Annuity Units (if not specified) is
calculated by dividing the dollar value of the transfer by the Annuity Unit
Value of the Investment Fund(s) you are transferring into on the Contract Date
or such other date as Equitable may allow, in accordance with its procedures.
ANNUITY UNIT VALUES
The Annuity Unit Value for the Investment Funds of the Variable Immediate
Annuity Contract was fixed on October 1, 1997 for contracts with assumed base
rates of net investment return of 5% and 3 1/2% a year, respectively. The table
below sets forth the Annuity Unit Values on October 1, 1997 and on December 31,
1997 (rounded to two decimal places). Further information concerning Annuity
Unit Values is included in the Statement of Additional Information.
10/1/97 12/31/97
Alliance Money Market Fund 3 1/2% $1.03 $1.03
5% $1.00 $1.00
Alliance Intermediate 3 1/2% $1.04 $1.05
Government Securities Fund 5% $1.01 $1.02
Alliance Quality Bond Fund 3 1/2% $1.09 $1.10
5% $1.06 $1.06
Alliance High Yield Fund 3 1/2% $1.39 $1.40
5% $1.35 $1.35
Alliance Growth & Income Fund 3 1/2% $1.52 $1.49
5% $1.47 $1.44
Alliance Equity Index Fund 3 1/2% $1.62 $1.63
5% $1.57 $1.57
Alliance Common Stock Fund 3 1/2% $1.53 $1.55
5% $1.48 $1.50
Alliance Global Fund 3 1/2% $1.28 $1.23
5% $1.24 $1.19
Alliance International Fund 3 1/2% $1.15 $1.03
5% $1.11 $0.99
Alliance Aggressive Stock Fund 3 1/2% $1.52 $1.37
5% $1.48 $1.32
Alliance Small Cap Growth Fund 3 1/2% $1.31 $1.23
5% $1.30 $1.22
Alliance Conservative Investors Fund 3 1/2% $1.16 $1.15
5% $1.12 $1.11
Alliance Balanced Fund 3 1/2% $1.27 $1.24
5% $1.23 $1.20
Alliance Growth Investors Fund 3 1/2% $1.33 $1.29
5% $1.29 $1.25
DISTRIBUTION OF THE CONTRACT
As the distributor of the Contract, EQ Financial Consultants, Inc. (EQF), an
indirect wholly owned subsidiary of Equitable Life, has responsibility for sales
and marketing functions for the Contract. EQF also serves as the principal
underwriter of the Separate Account under the 1940 Act. EQF is registered with
the SEC as a broker-dealer under the Securities Exchange Act of 1934 and is a
member of the National Association of Securities Dealers, Inc. EQF's principal
business address is 1290 Avenue of the Americas, New York, New York 10104.
The offering of the Contract is intended to be continuous.
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- --------------------------------------------------------------------------------
PART 6: DEDUCTIONS AND CHARGES
- --------------------------------------------------------------------------------
The following deductions and charges described below apply under the Contract.
However, Trust charges to Portfolios and charges to Investment Funds do not
apply to the Fixed Income Annuity Option.
TRUST CHARGES TO PORTFOLIOS
Investment advisory fees charged daily against the Trust's assets, direct
operating expenses of the Trust (such as trustees' fees, expenses of independent
auditors and legal counsel, bank and custodian charges and liability insurance),
and certain investment-related expenses of the Trust (such as brokerage
commissions and other expenses related to the purchase and sale of securities),
are reflected in each Portfolio's daily share price. The maximum investment
advisory fees paid annually by the Portfolios cannot be increased without a vote
of that Portfolio's shareholders. The maximum fees are as follows:
- ------------------------------------------------------------
MAXIMUM INVESTMENT
TRUST PORTFOLIO ADVISORY FEE (ANNUAL RATE)
- ------------------------------------------------------------
Alliance Money Market 0.350%
Alliance Intermediate
Government Securities 0.500%
Alliance High Yield 0.600%
Alliance Quality Bond 0.525%
Alliance Growth and Income 0.550%
Alliance Equity Index 0.325%
Alliance Common Stock 0.475%
Alliance Global 0.675%
Alliance International 0.900%
Alliance Aggressive Stock 0.625%
Alliance Small Cap Growth 0.900%
Alliance Conservative
Investors 0.475%
Alliance Balanced 0.450%
Alliance Growth Investors 0.550%
- ------------------------------------------------------------
Investment advisory fees are established under investment advisory agreements
between the Trust and its investment adviser, Alliance. All of these fees and
expenses are described more fully in the Trust prospectus. Since Trust shares
are purchased at their net asset value, these fees and expenses are, in effect,
passed on to the Separate Account and are reflected in the Annuity Unit Values
for the Investment Funds.
CHARGES TO INVESTMENT FUNDS
We make a daily charge at an effective annual rate of 0.50% against the net
daily assets held in each of the Investment Funds. This charge is reflected in
the Annuity Unit Values for the particular Investment Fund and is subject to a
maximum of 1.55% in the future, which covers maximum mortality and expense risk
charges of 1.25% and maximum expenses of 0.30%.
We assume a mortality risk by our obligation to make annuity payments for the
life of the Annuitant regardless of the Annuitant's longevity. The expense risk
we assume is the risk that, over time, our actual expense of administering the
Contracts may exceed the amounts realized from the asset-based expense charge
and the administrative expense charge. Part of the mortality and expense risk
charge may be considered to be an indirect reimbursement for certain sales and
promotional expenses relating to the Contract to the extent that the charge is
not needed to meet the actual expenses incurred.
The asset-based charge for expenses, together with the administrative expense
charge described below, are designed to reimburse us for our costs in providing
administrative services in connection with the Contract, and are not designed to
include an element of profit. The amount of the administrative expense charge
imposed on a given Contract will not necessarily bear any relationship to the
amount of expenses that may be attributable to the Contract.
ADMINISTRATIVE EXPENSE CHARGE
A onetime charge of $350 is deducted from the premium payment for administrative
expenses of the Contract.
OTHER CHARGES
A 6% sales charge is deducted from the premium payment, when received, for
commissions and other distribution expenses we incur in marketing the Contracts.
CHARGE FOR APPLICABLE TAXES
We deduct a charge for applicable taxes, such as state or local premium taxes,
that might be imposed in your state. The current tax charge that might be
imposed varies by state and ranges from 0% to 3.50% of the premium payment made;
the rate is 1% in Puerto Rico and 5% in the Virgin Islands.
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PART 7: VOTING RIGHTS
- --------------------------------------------------------------------------------
TRUST VOTING RIGHTS
Premium payments allocated to the Investment Funds are invested in shares of the
corresponding Portfolios of the Trust. Since we own the assets of the Separate
Account, we are the legal owner of the shares and, as such, have the right to
vote on certain matters. Among other things, we may vote:
o to elect the Trust's Board of Trustees,
o to ratify the selection of independent auditors for the Trust, and
o on any other matters described in the Trust's current prospectus or
requiring a vote by shareholders under the 1940 Act.
Because the Trust is a Massachusetts business trust, annual meetings are not
required. Whenever a shareholder vote is taken, we will give Contract Owners the
opportunity to instruct us how to vote the number of shares attributable to
their Contract. If we do not receive instructions in time from all Contract
Owners, we will vote the shares of a Portfolio for which no instructions have
been received in the same proportion as we vote shares of that Portfolio for
which we have received instructions. We will also vote any shares that we are
entitled to vote directly because of amounts we have in an Investment Fund in
the same proportions that Contract Owners vote.
Each Trust share is entitled to one vote. Fractional shares will be counted.
Voting generally is on a Portfolio-by-Portfolio basis except that shares will be
voted on an aggregate basis when universal matters, such as election of Trustees
and ratification of independent auditors, are voted upon. However, if the
Trustees determine that shareholders in a Portfolio are not affected by a
particular matter, then such shareholders generally would not be entitled to
vote on that matter.
SEPARATE ACCOUNT VOTING RIGHTS
If actions relating to the Separate Account require Contract Owner approval,
Contract Owners will be entitled to cast the number of votes equal to the dollar
amount of reserves we are holding in the respective Investment Funds for that
Contract divided by the Annuity Unit Value for that Investment Fund. We will
cast votes attributable to any amounts we have in the Investment Funds in the
same proportion as votes cast by Contract Owners.
VOTING RIGHTS OF OTHERS
Currently, we control the Trust. Trust shares are held by other separate
accounts of ours and by separate accounts of insurance companies unaffiliated
with us. Shares held by these separate accounts will probably be voted according
to the instructions of the owners of insurance policies and annuity contracts
issued by those insurance companies. While this will dilute the effect of the
voting instructions of Contract Owners, we currently do not foresee any
disadvantages arising out of this. The Trust's Board of Trustees intends to
monitor events in order to identify any material irreconcilable conflicts that
possibly may arise and to determine what action, if any, should be taken in
response. If we believe that the Trust's response to any of those events
insufficiently protects our Contract Owners, we will see to it that appropriate
action is taken to protect our Contract Owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this prospectus are created under applicable
Federal securities laws. To the extent that those laws or the regulations
promulgated under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
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PART 8: TAX ASPECTS OF THE CONTRACT
- --------------------------------------------------------------------------------
This Part of the prospectus generally covers our understanding of the current
Federal income tax rules that apply to annuities. Different rules may apply to
an annuity which is purchased with after-tax dollars and is not used to fund any
type of qualified retirement plan (non-qualified annuity) and an annuity used to
fund payouts from tax-favored employer-sponsored retirement plans (qualified
annuity). This prospectus does not provide detailed tax information and does not
address issues such as state income and other taxes or Federal gift and estate
taxes. Please consult a tax adviser when considering the tax aspects of the
Variable Immediate Annuity Contract.
TAX CHANGES
The United States Congress has in the past considered and may in the future
consider proposals for legislation that, if enacted, could change the tax
treatment of annuities and retirement plans. In addition, the Treasury
Department may amend existing regulations, issue new regulations, or adopt new
interpretations of existing laws. State tax laws or, if you are not a United
States resident, foreign tax laws, may also affect the tax consequences to you,
your joint annuitant, if any, or the beneficiary. These laws may change from
time to time without notice and, as a result, the tax consequences may be
altered. There is no way of predicting whether, when or in what form any such
change would be adopted. Any such change could have retroactive effects
regardless of the date of enactment. We suggest you consult your legal or tax
adviser.
TAXATION OF ANNUITY PAYMENTS
Equitable Life has designed the Variable Immediate Annuity Contract to qualify
as an "annuity" for purposes of Federal income tax law. The taxable portion of
annuity payments is treated as ordinary income and is subject to income tax
withholding. See "Federal and State Income Tax Withholding" below.
The Variable Immediate Annuity Contract is a payout annuity -- that is, funds
are applied to a payment stream measured by the annuitant's (and any joint
annuitant's) life, which payment stream is at least as long as any period
certain elected.
The Federal income tax treatment of your Variable Immediate Annuity Contract
payments will depend on whether you have a "tax basis" or "investment in the
contract," that is, whether you have purchased the Contract with after-tax
funds. Where contributions to fund a tax-favored retirement program annuity have
been made entirely with pre-tax funds, all amounts distributed from the Contract
are fully taxable for Federal income tax purposes. However, where a Contract has
been purchased wholly or partially with after-tax funds, the owner is entitled
to recover tax free the portion of each payment attributable to these after-tax
funds. Special rules apply to IRA Contracts, as discussed in the next section
under "IRAs -- Taxation of Payments."
The formula for determining the tax-free portion of each payment varies slightly
depending whether the contract is a non-qualified annuity or a qualified plan or
TSA annuity. Generally, the tax-free portion of each payment is based on the
ratio of the after-tax investment in the Contract, adjusted for any guaranteed
period, divided by the expected number of payments, as determined in accordance
with Treasury Regulations. For a qualified plan or TSA annuity no adjustment for
a guaranteed period is required and the expected number of payments is generally
determined under a statutory table. In all cases, the remainder of each payment
will be taxable. Special rules apply if the variable annuity payments actually
received in a year are less than the amount permitted to be recovered tax free.
After the total investment in the Contract has been recovered, subsequent
payments are fully taxable. If payments cease as a result of death, a deduction
for any unrecovered investment will be allowed.
Where payments are made to a Successor Owner, after the death of the Owner while
the Annuitant is alive, to a joint annuitant, if any, after the death of the
annuitant or to a beneficiary under a life income period certain Variable
Immediate Annuity Contract after the death of the Annuitant during the certain
period, the Successor Owner or Beneficiary, as the case may be, generally
receives the same income tax treatment as the Owner.
Penalty Tax
In addition to income tax, a penalty tax of 10% may apply to the taxable portion
of a distribution from an annuity contract unless the distribution is (1) made
on
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or after the date you attain age 59 1/2, (2) made on or after your death, (3)
attributable to your disability, (4) is part of a series of substantially equal
installments as an annuity for your life (or life expectancy) or the joint lives
(or joint life expectancies) of you and a beneficiary, or (5) payments under an
immediate annuity. An immediate annuity is generally an annuity which commences
payments within one year from purchase and provides for a series of
substantially equal periodic payments made at least annually. We believe your
annuity payments should not be subject to the 10% penalty under exception (4) or
(5) above. Since the matter is not entirely clear for variable annuity payments,
you may wish to consult your tax adviser if you expect to receive any
distributions prior to age 59 1/2.
SPECIAL RULES FOR TAX-FAVORED RETIREMENT PROGRAMS
QUALIFIED PLANS AND TSAS
Distribution Restrictions and Penalty Taxes
Certain retirement programs have restrictions on the ability to make
distributions from funds attributable to salary reduction contributions,
generally until the plan participant is age 59 1/2, has died, is disabled or
separated from service. Moreover, distribution from any unrestricted funds in
the form of a life-contingent annuity prior to age 59 1/2 may be subject to a
10% additional income tax penalty unless the individual has separated from
service. In addition, the Employee Retirement Income Security Act of 1974, as
amended (ERISA), may require that benefits under the program be paid in a
specified form or require spousal consent to elect another form. You should
discuss with your tax or legal adviser whether the Variable Immediate Annuity
Contract is an appropriate vehicle for you.
Minimum Distribution Rules
Generally, a life-contingent annuity such as the Variable Immediate Annuity
Contract will meet the rules requiring minimum distributions to be made from
qualified plans, 403(b) arrangements, and individual retirement annuities
beginning in the year the individual is required to commence minimum
distributions. Minimum distributions generally must commence beginning for the
year the individual reaches age 70 1/2, but may be delayed for some individuals
who are not retired from the employer sponsoring the plan at age 70 1/2. If the
individual elects a period certain on the life-contingent contract, the period
certain cannot be longer than the individual's life expectancy (or joint life
expectancies of the individual and a beneficiary) according to IRS tables.
IRAS
The contract is designed to qualify as a traditional individual retirement
annuity under Section 408(b) of the Internal Revenue Code (IRA). Your rights
under the contract cannot be forfeited.
This prospectus contains the information that the Internal Revenue Service (IRS)
requires to be disclosed to an individual before he or she purchases an IRA.
This section covers some of the special tax rules that apply to traditional
individual retirement arrangements. This disclosure does not apply to Roth IRAs.
You should be aware that an IRA is subject to certain restrictions in order to
qualify for its special treatment under the Federal tax law.
Further information on IRA tax matters can be obtained from any IRS district
office. Additional information regarding IRAs can be found in Internal Revenue
Service Publication 590, entitled "Individual Retirement Arrangements (IRAs),"
which is generally updated annually.
We have not applied for an opinion letter from the IRS approving the form of the
contract as an IRA. Such IRS approval is a determination only as to form of the
annuity and does not represent a determination of the merits of the annuity as
an investment.
Part 6, "Deductions and Charges" of this prospectus describes the amount and
types of charges which may apply to your rollover/transfer contribution. Part 5
of this prospectus and Part 1 of the SAI describe the method of computing
payments. To the extent the individual allocates funds to the Variable Income
Annuity Option (as opposed to the Fixed Income Annuity Option discussed in Part
4), growth is neither guaranteed nor projected.
Cancellation
You can cancel a contract issued as an IRA by following the directions in Part 1
under "10-Day Free Look." Since there may be adverse tax consequences if a
contract is cancelled (and because we are required to report to the IRS certain
IRA distributions from cancelled IRAs), you should consult with a tax adviser
before making any such decision.
Funding
This IRA may be funded through rollover or transfer of funds only and not
through "regular" IRA contributions out of the individual's current earnings.
Direct transfers may be made only from another traditional individual retirement
arrangement. Amounts may be rolled over from another individual retirement
arrangement within 60 days of when the individual
18
<PAGE>
receives the funds (unless such funds have already been subject to rollover from
one individual retirement arrangement to another at any time during the past
1-year period). Amounts may also be rolled over within 60 days of when the
individual receives the funds or as a direct rollover of an "eligible rollover
distribution" from a qualified plan or 403(b) arrangement. The owner of the
Variable Immediate Annuity IRA must also have been the owner of the individual
retirement arrangement which is the source of funds (or the qualified plan or
403(b) participant, as the case may be).
However, the Variable Immediate Annuity IRA may also be purchased through a
rollover by the surviving spouse beneficiary of a deceased owner's individual
retirement arrangement or qualified plan or 403(b) arrangement or by a
participant or a spouse or a former spouse in a qualified domestic relations
order or a transfer of an individual retirement arrangement incident to a
divorce or separation decree.
After-tax contributions and amounts which are required to be distributed under
the "required minimum distribution rules" discussed below applicable to
individuals after they reach age 70 1/2 may not be rolled over. If amounts which
are not eligible to be rolled over are in fact rolled over to the Variable
Immediate Annuity IRA, they may be subject to a 6% excise tax.
Required Minimum Distributions
April 1 following the calendar year in which the individual attains age 70 1/2
is the "Required Beginning Date" -- the date on which required minimum
distributions from an individual retirement arrangement are required to begin.
If the individual is past his/her required beginning date he/she may still
purchase a Variable Immediate Annuity IRA, through transfer or rollover of
funds; however, before the funds are transmitted to this contract, the
individual must have elected a life expectancy recalculation method of
calculating minimum distributions and the individual must have taken the minimum
distribution for the year.
As discussed above under "Qualified Plans and TSAs -- Minimum Distribution
Rules," payments from the Variable Immediate Annuity IRA should meet required
minimum distribution rules applicable to life contingent annuity payments,
provided that life expectancy table rules are met for any period certain
selected and the rules described in this section are met.
Taxation of Payments
All payments from the Variable Immediate Annuity IRA are reported as being fully
taxable. If the individual has established the annuity through a direct transfer
of individual retirement arrangement funds which include non-deductible
contributions, it is the individual's responsibility to calculate the amount of
each payment which is not subject to tax, based on filings he/she has made with
the IRS and records he/she has been required to retain.
Distributions from an IRA are not entitled to the special favorable five-year
averaging method (or, in certain cases, favorable ten-year averaging and
long-term capital gain treatment) available in certain cases to distributions
from qualified plans.
Prohibited Transaction
An IRA may not be borrowed against or used as collateral for a loan or other
obligation. If the IRA is borrowed against or used as collateral, its
tax-favored status will be lost as of the first day of the tax year in which the
event occurred. If this happens, the individual must include in Federal gross
income for that year an amount equal to the fair market value of the IRA
contract as of the first day of that tax year, less the amount of any
non-deductible contributions not previously paid out. Also, the early
distribution penalty tax of 10% will apply if the individual has not reached age
59 1/2 before the first day of that tax year.
FEDERAL AND STATE INCOME TAX WITHHOLDING
Equitable Life is required to withhold Federal income tax on the taxable portion
of periodic annuity payments as if the payments were wages, unless the recipient
elects not to be subject to income tax withholding. Special withholding rules
apply to foreign recipients and United States citizens residing outside the
United States. If a recipient does not have sufficient income tax withheld or
does not make sufficient estimated income tax payments, however, the recipient
may incur penalties under the estimated income tax rules. Recipients should
consult their tax advisers to determine whether they should elect out of
withholding. Requests not to withhold Federal income tax must be made in writing
prior to receiving benefits under the Variable Immediate Annuity Contract. Our
Processing Office will provide forms for this purpose. No election out of
withholding is valid unless the recipient provides us with the correct taxpayer
identification number and a United States residence address.
19
<PAGE>
Certain states have indicated that annuity income tax withholding will apply to
payments from the Variable Immediate Annuity Contract made to residents. In some
states, a recipient may elect out of state withholding. Generally, an election
out of Federal withholding will also be considered an election out of state
withholding. If you need more information concerning a particular state or any
required forms, call our Processing Office at the toll-free number and consult
your tax adviser.
Periodic payments are generally subject to wage-bracket type withholding (as if
such payments were wages by an employer to an employee) unless the recipient
elects no withholding. If a recipient does not elect out of withholding or does
not specify the number of withholding exemptions, withholding will generally be
made as if the recipient is married and claiming three withholding exemptions.
There is an annual threshold of taxable income from periodic payments which is
exempt from withholding based on this assumption. For 1998, a recipient of
periodic payments (e.g., monthly or annual payments) which total less than
$14,400 taxable amount will generally be exempt from Federal income tax
withholding, unless the recipient specifies a different choice of withholding
exemption. A withholding election may be revoked at any time and remains
effective until revoked. If a recipient fails to provide a correct taxpayer
identification number, withholding is made as if the recipient is single with no
exemptions.
In certain cases, e.g., benefits passing to a grandchild instead of a spouse or
child, withholding may also be required because of potential application of
"generation skipping tax," which is a form of estate tax.
SPECIAL RULES FOR CONTRACTS ISSUED IN PUERTO RICO
Under current law Equitable Life treats income from the Variable Immediate
Annuity Contract as U.S.-source. A Puerto Rico resident is subject to U.S.
taxation on such U.S.-source income. Only Puerto Rico-source income of Puerto
Rico residents is excludable from U.S. taxation. Income from the Variable
Immediate Annuity Contract is also subject to Puerto Rico tax. The computation
of the taxable portion of amounts distributed from a Variable Immediate Annuity
Contract may differ in the two jurisdictions. Therefore, an individual might
have to file both U.S. and Puerto Rico tax returns, showing different amounts of
income for each. Puerto Rico generally provides a credit against Puerto Rico tax
for U.S. tax paid. Depending on an individual's personal situation and the
timing of the different tax liabilities, an individual may not be able to take
full advantage of this credit.
Please consult your tax adviser to determine the applicability of these rules to
your own tax situation.
IMPACT OF TAXES TO EQUITABLE LIFE
The Contract provides that we may charge the Separate Account for taxes. We can
also set up reserves for taxes.
20
<PAGE>
- --------------------------------------------------------------------------------
PART 9: OTHER INFORMATION
- --------------------------------------------------------------------------------
Financial Statements
The financial statements of the Separate Account as well as the Consolidated
Financial Statements of Equitable Life are contained in the SAI, which has been
incorporated by reference in this prospectus. Because the Contracts have only
recently been offered, no unit values relating to the Contracts have been
included in the financial statements of the Separate Account.
LEGAL PROCEEDINGS
Equitable Life and its affiliates are parties to various legal proceedings, none
of which, in our view, are likely to have a material adverse effect upon the
Separate Account or our ability to meet our obligations under the Contracts.
21
<PAGE>
- --------------------------------------------------------------------------------
APPENDIX: EXAMPLES OF VARIABLE INCOME ANNUITY PAYMENT
DETERMINATIONS, INCLUDING INVESTMENT FUND TRANSFERS
- --------------------------------------------------------------------------------
The examples below show how we would determine the variable income annuity (VIA)
payments for a given Investment Fund choice at original issue, and upon transfer
from that Investment Fund to another after variable income annuity payments have
commenced.
We assume that $100,000, net of any fee deductions that apply, were used to
purchase a variable income annuity under the Alliance Common Stock Investment
Fund option on 12/23/97. Based on an assumed investment return (AIR) of 5%,
let us say that the resulting initial monthly payment of $800 commencing on that
date, is for a Female age 75 under a Life Annuity with 10 Year Period Certain
form. This payment represents, for purposes of this example, 80 Alliance Common
Stock Investment Fund variable annuity units purchased, and is fixed for the
first two payments and varies thereafter according to the Alliance Common Stock
Investment Fund performance relative to the AIR.
We further assume that on the first anniversary of the Contract Date,
12/23/98, we receive a request for a 40% transfer of variable annuity units
from the Alliance Common Stock Investment Fund to the Alliance Global Investment
Fund. Note that since payments (after the initial two) are based on an average
unit value for two months prior, a change in the payments resulting from the
transfer does not occur until two months after the effective date of transfer.
<TABLE>
<CAPTION>
As of 12/23/97 (Original Issue)
- -------------------------------
<S> <C>
(1) Premium applied*............................................................................ $100,000
(2) Initial monthly payment on 1/23/98.......................................................... $800
(3) Common Stock fund annuity unit value (12/23/97)............................................. $10.00
(4) Number of Common Stock variable annuity units: (2)/(3)...................................... 80
<CAPTION>
As of 12/23/98 (Annuitant Election to Transfer 40% from Common Stock to Global Fund)
- ------------------------------------------------------------------------------------
<S> <C>
(5) Common Stock fund annuity unit value (12/23/98)............................................. $11.25
(6) Global fund annuity unit value (12/23/98)................................................... $10.00
(7) Portion of annuity units transferred to Global fund: 40% x (4) x (5)/(6).................... 36
(8) Remaining annuity units in Common Stock fund: 60% x (4)..................................... 48
<CAPTION>
As of 12/23/98 (Benefit Payment based on Annuity Units owned in October 1998)
- -----------------------------------------------------------------------------
<S> <C>
(9) Average Common Stock fund annuity unit value (October 1998)................................. $10.50
(10) Monthly payment under Common Stock fund on 12/23/98: (4) x (9).............................. $840
<CAPTION>
As of 1/25/99 (Benefit Payment based on Annuity Units owned in November 1998)
- -----------------------------------------------------------------------------
<S> <C>
(11) Average Common Stock fund annuity unit value (November 1998)................................ $11.25
(12) Monthly payment under Common Stock fund on 1/25/99: (4) x (11).............................. $900
<CAPTION>
As of 2/23/99 (Benefit Payment based on Annuity Units owned in December 1998)
- -----------------------------------------------------------------------------
<S> <C>
(13) Average Common Stock fund annuity unit value (December 1998)................................ $11.50
(14) Average Global fund annuity unit value (December 1998)...................................... $11.00
(15) Monthly payment under Common Stock fund on 2/23/99: (8) x (13).............................. $552
(16) Monthly payment under Global fund on 2/23/99: (7) x (14).................................... $396
(17) Total monthly payment on 2/23/99: (15) + (16)............................................... $948
</TABLE>
- ---------
* After deduction of 6% sales charge and $350 administrative expense charge.
Annuity Unit Values shown in the above example are hypothetical and used for
illustrative purposes only. The example is not a representation or projection of
the amount of annuity payments that would actually be received under the
Contract.
22
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
PAGE
Part 1: Determination of Monthly Annuity Payments.............. 3
Part 2: Annuity Unit Values.................................... 3
Part 3: Custodian and Independent Accountants.................. 4
Part 4: Financial Statements................................... 4
23
<PAGE>
VARIABLE IMMEDIATE ANNUITY
STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1998
--------------
VARIABLE IMMEDIATE ANNUITY CONTRACT FUNDED THROUGH THE
INVESTMENT FUNDS OF SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
o Alliance Money Market o Alliance Growth & Income Asset Allocation Series:
o Alliance Intermediate Government o Alliance Equity Index o Alliance Conservative Investors
Securities o Alliance Common Stock o Alliance Balanced
o Alliance Quality Bond o Alliance Global o Alliance Growth Investors
o Alliance High Yield o Alliance International
o Alliance Aggressive Stock
o Alliance Small Cap Growth
- ------------------------------------------------------------------------------------------------------
</TABLE>
ISSUED BY:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
- --------------------------------------------------------------------------------
Home Office: 1290 Avenue of the Americas, New York, NY 10104
Processing Office: P.O. Box 2494, New York, NY 10116-2494
- --------------------------------------------------------------------------------
This statement of additional information (SAI) is not a prospectus. It should be
read in conjunction with the Separate Account A prospectus for the Variable
Immediate Annuity Contract, dated May 1, 1998. Definitions of special terms used
in the SAI are found in the prospectus.
A copy of the prospectus is available free of charge by writing the Processing
Office, by calling 1-800-245-1230, toll-free, or by contacting your Equitable
Life Representative.
- --------------------------------------------------------------------------------
Copyright 1997 The Equitable Life Assurance Society of the United States,
New York, New York 10104
All rights reserved.
888-1157
Cat. No. 127662
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
PAGE
- --------------------------------------------------------------------------------
Part 1 Determination of Monthly Annuity Payments 3
- --------------------------------------------------------------------------------
Part 2 Annuity Unit Values 3
- --------------------------------------------------------------------------------
Part 3 Custodian and Independent Accountants 4
- --------------------------------------------------------------------------------
Part 4 Financial Statements 4
- --------------------------------------------------------------------------------
2
<PAGE>
- --------------------------------------------------------------------------------
PART 1 -- DETERMINATION OF MONTHLY ANNUITY PAYMENTS
Payments start one month following the date we receive your premium payment.
The amount of the first two monthly annuity payments is the same, as shown on
the Data Pages in your Contract, and is the sum of the initial Variable Income
Annuity Option payment amount and any Fixed Income Annuity Option payment
amount. Each subsequent monthly payment will be the sum of any Fixed Income
Annuity Option and the Variable Income Annuity Option payment, determined as
follows:
(a) Each Fixed Income Annuity Option payment will be made at the same amount,
as shown on the Data Pages.
(b) The amount of the third and each subsequent monthly Variable Income Annuity
Option payment will be (1) the number of Annuity Units held in each of the
selected Investment Funds as of the effective date of payment multiplied by
(2) the Average Annuity Unit Value (see below) for the selected Investment
Fund, for the second calendar month immediately preceding the due date of
the payment.
The amounts of Variable Income Annuity Option payments are determined as
follows:
The first two payments depend on the AIR and the form of annuity chosen (and
any fixed period). Since the annuity involves a life contingency, the risk
class and the age of the Annuitants will effect payments.
The third and subsequent monthly Variable Income Annuity Option payments may
increase or decrease in amount, depending on whether the actual rate of net
investment return (after charges) of the applicable Investment Fund is
higher or lower than the Assumed Base Rate of Net Investment Return, or AIR,
shown on the Data Pages. Payments will not be increased or decreased in
amount because of mortality or Contract expense.
The number of units is calculated by dividing the first monthly payment by
the annuity unit value on the Business
- --------------------------------------------------------------------------------
Day the premium is received. The average annuity unit value is the average
of the annuity unit values for that month.
- --------------------------------------------------------------------------------
PART 2 -- ANNUITY UNIT VALUES
The Annuity Unit Value for the Investment Funds of the Variable Immediate
Annuity Contract was fixed on October 1, 1997 for contracts with assumed base
rates of net investment return of 5% and 3 1/2% a year, respectively, as set
forth below (rounded to two decimal places). For each Valuation Period, it is
the Annuity Unit Value for the immediately preceding Valuation Period multiplied
by the Adjusted Net Investment Factor under the contract.
Alliance Money Market Fund 3 1/2% $1.03
5% $1.00
Alliance Intermediate 3 1/2% $1.04
Government Securities Fund 5% $1.01
Alliance Quality Bond Fund 3 1/2% $1.09
5% $1.06
Alliance High Yield Fund 3 1/2% $1.39
5% $1.35
Alliance Growth & Income Fund 3 1/2% $1.52
5% $1.47
Alliance Equity Index Fund 3 1/2% $1.62
5% $1.57
Alliance Common Stock Fund 3 1/2% $1.53
5% $1.48
Alliance Global Fund 3 1/2% $1.28
5% $1.24
Alliance International Fund 3 1/2% $1.15
5% $1.11
Alliance Aggressive Stock Fund 3 1/2% $1.52
5% $1.48
Alliance Small Cap Growth Fund 3 1/2% $1.31
5% $1.30
Alliance Conservative Investors 3 1/2% $1.16
Fund 5% $1.12
Alliance Balanced Fund 3 1/2% $1.27
5% $1.23
Alliance Growth Investors Fund 3 1/2% $1.33
5% $1.29
The Net Investment Factor is:
(a)
--- = c
(b)
where:
(a) is the value of the Investment Fund's shares of the corresponding Portfolio
at the end of the Valuation Period before
3
<PAGE>
- --------------------------------------------------------------------------------
giving effect to any amounts allocated to or withdrawn from the Investment
Fund for the Valuation period. For this purpose, we use the share value
reported to us by The Hudson River Trust. This share value is after
deduction for investment advisory fees and direct expenses of The Hudson
River Trust.
(b) is the value of the Investment Fund's shares of the corresponding Portfolio
at the end of the preceding Valuation Period (after any amounts allocated or
withdrawn for that Valuation Period).
(c) is the daily Separate Account asset charges for the expenses and risks of
the Contract times the number of calendar days in the Valuation Period, plus
any charge for taxes or amounts set aside as a reserve for taxes.
For each Valuation Period, the Adjusted Net Investment Factor is equal to the
Net Investment Factor reduced for each day in the Valuation Period by:
o .00013366 of the Net Investment Factor for a contract with an assumed base
rate of net investment return of 5% a year; or
o .00009425 of the Net Investment Factor for a contract with an assumed base
rate of net investment return of 3 1/2%.
Because of this adjustment, the Annuity Unit Value rises and falls depending on
whether the actual rate of net investment return (after charges) is higher or
lower than the assumed base rate. The Average Annuity Unit Value for a calendar
month is equal to the average of the Annuity Unit Values for such month.
All Contracts have a 5% assumed base rate of net investment return, except in
states where that rate is not permitted and which use 3 1/2%. Annuity payments
under Contracts with an assumed base rate of 3 1/2% will at first be smaller
than those under Contracts with a 5% assumed base rate. Payments under the 3
1/2% Contracts, however, will rise more rapidly when unit values are rising, and
payments will fall more slowly when unit values are falling than those under 5%
Contracts.
- --------------------------------------------------------------------------------
ILLUSTRATION OF CHANGES IN ANNUITY UNIT VALUES. Assume that the net premium paid
for a Contract is enough to fund a Variable Immediate Annuity Contract with a
monthly payment of $100 and that the Annuity Unit Value of the Investment Fund
for the Valuation Period that includes the due date of the first annuity payment
is $3.74. The number of annuity units credited under the Contract would be 26.74
(100 divided by 3.74 = 26.74). Based on an average annuity unit value of $3.56
in October 1998, the annuity payment due in December 1998 would be $95.19 (the
number of units (26.74) times $3.56).
- --------------------------------------------------------------------------------
PART 3 -- CUSTODIAN AND INDEPENDENT ACCOUNTANTS
Equitable Life is the custodian for shares of the Trust owned by the Separate
Account.
The financial statements of the Separate Account and of Equitable Life included
in this SAI have been audited for the years ended December 31, 1997 and December
31, 1996 by Price Waterhouse LLP, as stated in their reports. The financial
statements of the Separate Account and of Equitable Life for the years ended
December 31, 1997 and December 31, 1996 included in this SAI have been so
included in reliance on the report of Price Waterhouse LLP, independent
accountants, given on the authority of such firm as experts in accounting and
auditing.
- --------------------------------------------------------------------------------
PART 4 -- FINANCIAL STATEMENTS
The consolidated financial statements of The Equitable Life Assurance Society of
the United States included herein should be considered only as bearing upon the
ability of Equitable Life to meet its obligations under the Contracts.
4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<S> <C>
Report of Independent Accountants.......................................................................... FSA-1
Financial Statements:
Statements of Assets and Liabilities, December 31, 1997............................................ FSA-2
Statements of Operations for the Year Ended December 31, 1997...................................... FSA-8
Statements of Changes in Net Assets for the Years Ended December 31, 1997 and 1996................. FSA-11
Notes to Financial Statements...................................................................... FSA-16
</TABLE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Index to Consolidated Financial Statements
<TABLE>
<CAPTION>
<S> <C>
Report if Independent Accountants.......................................................................... F-1
Consolidated Financial Statements:
Consolidated Balance Sheets, December 31, 1997 and 1996............................................ F-2
Consolidated Statements of Earnings, Years Ended December 31, 1997, 1996 and 1995 ................. F-3
Consolidated Statements of Shareholder's Equity, Years Ended December 31, 1f997, 1996 and 1995 .... F-4
Consolidated Statements of Cash Flows, Years Ended December 31, 1997, 1996, and 1995............... F-5
Notes to Consolidated Financial Statements......................................................... F-6
FSA-1
</TABLE>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of
The Equitable Life Assurance Society of the United States
and Contractowners of Separate Account A
of The Equitable Life Assurance Society of the United States
In our opinion, the accompanying statements of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of the Alliance Money Market Fund,
Alliance Intermediate Government Securities Fund, Alliance Quality Bond Fund,
Alliance High Yield Fund, T. Rowe Price Equity Income Fund, EQ/Putnam Growth &
Income Value Fund, Alliance Growth & Income Fund, Alliance Equity Index Fund,
Merrill Lynch Basic Value Equity Fund, Alliance Common Stock Fund, MFS Research
Fund, Alliance Global Fund, Alliance International Fund, T. Rowe Price
International Stock Fund, Morgan Stanley Emerging Markets Equity Fund, Alliance
Aggressive Stock Fund, Warburg Pincus Small Company Value Fund, Alliance Small
Cap Growth Fund, MFS Emerging Growth Companies Fund, Alliance Conservative
Investors Fund, EQ/Putnam Balanced Fund, Alliance Growth Investors Fund,
Alliance Balanced Fund and Merrill Lynch World Strategy Fund, separate
investment funds of The Equitable Life Assurance Society of the United States
("Equitable Life") Separate Account A at December 31, 1997 and the results of
each of their operations and changes in each of their net assets for the periods
indicated, in conformity with generally accepted accounting principles. These
financial statements are the responsibility of Equitable Life's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of shares owned in The
Hudson River Trust and in the EQ Advisors Trust at December 31, 1997 with the
transfer agent, provide a reasonable basis for the opinion expressed above. The
unit value information presented in Note 6 for the year ended December 31, 1992
and for each of the periods indicated prior thereto, were audited by other
independent accountants whose report dated February 16, 1993 expressed an
unqualified opinion on the financial statements containing such information.
Price Waterhouse LLP
New York, New York
February 10, 1998
FSA-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
--------------------------------------------------------
ALLIANCE
ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE
MONEY GOVERNMENT QUALITY HIGH
MARKET SECURITIES BOND YIELD
FUND FUND FUND FUND
----------- ------------ ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 99,808,882..................... $99,377,297
37,476,251..................... $37,934,807
40,601,722..................... $41,416,948
159,273,234..................... $160,330,252
Receivable for Trust shares sold................... 511,452 -- -- --
Due from Equitable Life's General Account
(Note 3)........................................ -- 110,929 196,499 2,414,213
----------- ----------- ----------- ------------
Total assets................................ 99,888,749 38,045,736 41,613,447 162,744,465
----------- ----------- ----------- ------------
LIABILITIES:
Payable for Trust shares purchased................ -- 110,398 196,512 2,414,326
Due to Equitable Life's General Account
(Note 3)........................................ 509,160 -- -- --
Net accumulated amount of (i) mortality risk,
death benefit, expense and expense risk charges
and (ii) mortality and other gains and losses
retained by Equitable Life (Note 3)............. 1,508,071 921,349 767,775 2,116,607
----------- ----------- ----------- ------------
Total liabilities........................... 2,017,231 1,031,747 964,287 4,530,933
----------- ----------- ----------- ------------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS
(NOTE 5)........................................ $97,871,518 $37,013,989 $40,649,160 $158,213,532
=========== =========== =========== ============
<CAPTION>
EQUITY SERIES:
------------------------------------------------------------
EQ/
PUTNAM
T. ROWE GROWTH & ALLIANCE ALLIANCE
PRICE INCOME GROWTH & EQUITY
EQUITY INCOME VALUE INCOME INDEX
FUND FUND FUND FUND
-------------- ------------ --------------- --------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 56,297,094..................... $59,716,685
30,126,429..................... $30,870,233
320,920,151..................... $374,003,572
533,233,070..................... $655,445,138
Receivable for Trust shares sold................... -- -- -- --
Due from Equitable Life's General Account
(Note 3)........................................ 732,059 637,703 3,340,846 3,976,585
----------- ----------- ------------ ------------
Total assets................................ 60,448,744 31,507,936 377,344,418 659,421,723
----------- ----------- ------------ ------------
LIABILITIES:
Payable for Trust shares purchased................ 743,416 643,508 3,340,876 3,976,820
Due to Equitable Life's General Account
(Note 3)........................................ -- -- -- --
Net accumulated amount of (i) mortality risk,
death benefit, expense and expense risk charges
and (ii) mortality and other gains and losses
retained by Equitable Life (Note 3)............. 2,220,436 2,109,700 4,119,275 6,558,008
----------- ----------- ------------ ------------
Total liabilities........................... 2,963,852 2,753,208 7,460,151 10,534,828
----------- ----------- ------------ ------------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS
(NOTE 5)........................................ $57,484,892 $28,754,728 $369,884,267 $648,886,895
=========== =========== ============ ============
</TABLE>
See Notes to Financial Statements.
FSA-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
----------------------------------------------------------
ALLIANCE
ALLIANCE INTERMEDIATE ALLIANCE ALLIANCE
MONEY GOVERNMENT QUALITY HIGH
MARKET SECURITIES BOND YIELD
FUND FUND FUND FUND
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
EQUI-VEST Series 100 and 200 Contracts:
Unit Value...................................... $ 29.41
============
Units Outstanding............................... 973,494
============
Old Contracts:
Unit Value...................................... $ 35.12
============
Units Outstanding............................... 119,295
============
EQUIPLAN Contracts:
Unit Value...................................... $ 54.83
=============
Units Outstanding............................... 49,547
=============
Momentum Contracts:
Unit Value...................................... $ 29.41 $ 118.98 $ 121.30 $ 160.74
============ ============= ============ ============
Units Outstanding............................... 307,657 10,333 9,994 28,727
============ ============= ============ ============
Momentum Plus Contracts:
Unit Value 135 B.P. ............................ $ 116.21 $ 114.78 $ 127.99 $ 171.56
============ ============= ============ ============
Units Outstanding............................... 324,836 76,800 37,376 109,928
============ ============= ============ ============
Momentum Plus Contract
Unit Value 100 B.P. ............................ $ 110.26 $ 112.32 $ 117.60 $ 149.49
============ ============= ============ ============
Units Outstanding............................... 12,808 2,448 1,159 5,414
============ ============= ============ ============
Momentum Plus Contracts:
Unit Value 90 B.P ..............................
Units Outstanding...............................
EQUI-VEST Contracts:
Unit Value All Series........................... $ 115.66 $ 118.98 $ 121.30 $ 160.74
============ ============= ============ ============
Units Outstanding............................... 145,622 201,501 283,096 831,373
============ ============= ============ ============
<CAPTION>
EQUITY SERIES:
-----------------------------------------------------------
EQ/
PUTNAM
T. ROWE GROWTH & ALLIANCE ALLIANCE
PRICE INCOME GROWTH & EQUITY
EQUITY INCOME VALUE INCOME INDEX
FUND FUND FUND FUND
-------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C>
EQUI-VEST Series 100 and 200 Contracts:
Unit Value......................................
Units Outstanding...............................
Old Contracts:
Unit Value......................................
Units Outstanding...............................
EQUIPLAN Contracts:
Unit Value......................................
Units Outstanding...............................
Momentum Contracts:
Unit Value...................................... $ 179.30 $ 214.66
============== =============
Units Outstanding............................... 69,005 93,639
============== =============
Momentum Plus Contracts:
Unit Value 135 B.P. ............................ $ 179.60 $ 214.58
============== =============
Units Outstanding............................... 183,028 230,739
============== =============
Momentum Plus Contracts:
Unit Value 100 B.P. ............................ $ 155.11 $ 170.23
============== =============
Units Outstanding............................... 3,495 5,349
============== =============
Momentum Plus Contracts:
Unit Value 90 B.P. ............................. $ 145.48 $ 150.05
============== =============
Units Outstanding............................... 1,104 3,298
============== =============
EQUI-VEST Contracts:
Unit Value All Series........................... $ 121.04 $ 115.17 $ 179.30 $ 214.66
=========== ============ ============== =============
Units Outstanding............................... 474,941 249,663 1,799,603 2,685,539
=========== ============ ============== =============
</TABLE>
See Notes to Financial Statements.
FSA-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
-----------------------------------------------------------------------------
MERRILL ALLIANCE
LYNCH BASIC COMMON MFS ALLIANCE ALLIANCE
VALUE EQUITY STOCK RESEARCH GLOBAL INTERNATIONAL
FUND FUND FUND FUND FUND
-------------- ---------------- ------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 18,666,532..................... $18,893,428
4,421,334,464..................... $5,972,107,521
30,189,929..................... $30,667,805
559,352,701..................... $616,196,373
134,600,521..................... $120,037,626
Receivable for Trust shares sold.................. -- -- -- -- --
Due from Equitable Life's General Account
(Note 3)........................................ 381,442 14,027,000 456,885 1,621,066 134,576
----------- -------------- ----------- ------------ ------------
Total assets................................ 19,274,870 5,986,134,521 31,124,690 617,817,439 120,172,202
----------- -------------- ----------- ------------ ------------
LIABILITIES:
Payable for Trust shares purchased................ 384,841 13,622,025 462,419 1,620,982 134,543
Due to Equitable Life's General Account
(Note 3)........................................ -- -- -- -- --
Net accumulated amount of (i) mortality risk,
death benefit, expense and expense risk charges
and (ii) mortality and other gains and losses
retained by Equitable Life (Note 3)............. 2,114,485 48,536,522 3,487,741 7,684,826 1,948,370
----------- -------------- ----------- ------------ ------------
Total liabilities........................... 2,499,326 62,158,547 3,950,160 9,305,808 2,082,913
----------- -------------- ----------- ------------ ------------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS
(NOTE 5)........................................ $16,775,544 $5,923,975,974 $27,174,530 $608,511,631 $118,089,289
=========== ============== =========== ============ ============
<CAPTION>
EQUITY SERIES (CONTINUED):
-----------------------------------------------
MORGAN
T. ROWE STANLEY
PRICE EMERGING ALLIANCE
INTERNATIONAL MARKETS AGGRESSIVE
STOCK EQUITY STOCK
FUND FUND FUND
--------------- ------------ ----------------
<S> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 44,816,223..................... $43,898,710
14,541,443..................... $13,443,459
3,425,215,535..................... $3,449,389,637
Receivable for Trust shares sold.................. 2,038,669 -- --
Due from Equitable Life's General Account
(Note 3)........................................ -- 490,394 6,153,804
----------- ----------- --------------
Total assets................................ 45,937,379 13,933,853 3,455,543,441
----------- ----------- --------------
LIABILITIES:
Payable for Trust shares purchased................ -- 491,842 5,879,261
Due to Equitable Life's General Account
(Note 3)........................................ 2,046,677 -- --
Net accumulated amount of (i) mortality risk,
death benefit, expense and expense risk charges
and (ii) mortality and other gains and losses
retained by Equitable Life (Note 3)............. 5,962,235 4,796,244 24,442,936
----------- ----------- --------------
Total liabilities........................... 8,008,912 5,288,086 30,322,197
----------- ----------- --------------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS
(NOTE 5)........................................ $37,928,467 $ 8,645,767 $3,425,221,244
=========== =========== ==============
</TABLE>
See Notes to Financial Statements.
FSA-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
---------------------------------------------------------------
MERRILL ALLIANCE
LYNCH BASIC COMMON MFS ALLIANCE
VALUE STOCK RESEARCH GLOBAL
EQUITY FUND FUND FUND FUND
------------- ----------------- ------------ ---------------
<S> <C> <C> <C> <C>
EQUI-VEST Series 100 and 200 Contracts:
Unit Value...................................... $ 253.68
================
Units Outstanding............................... 17,386,160
================
Old Contracts:
Unit Value...................................... $ 316.64
================
Units Outstanding............................... 306,654
================
EQUIPLAN Contracts:
Unit Value...................................... $ 342.99
================
Units Outstanding............................... 85,013
================
Momentum Contracts:
Unit Value...................................... $ 253.68 $ 151.87
================ ==============
Units Outstanding............................... 588,761 146,584
================ ==============
Momentum Plus Contracts:
Unit Value 135 B.P. ............................ $ 207.00 $ 154.62
================ ==============
Units Outstanding............................... 1,192,138 464,023
================ ==============
Momentum Plus Contracts:
Unit Value 100 B.P. ............................ $ 161.04 $ 128.51
================ ==============
Units Outstanding............................... 37,267 12,006
================ ==============
Momentum Plus Contracts:
Unit Value 90 B.P. ............................. $ 148.44 $ 122.12
================ ==============
Units Outstanding............................... 4,878 2,404
================ ==============
EQUI-VEST Contracts:
Unit Value All Series........................... $ 115.97 $ 198.12 $ 115.01 $ 151.87
============ ================ =========== ==============
Units Outstanding............................... 144,651 4,765,267 236,272 3,369,340
============ ================ =========== ==============
<CAPTION>
EQUITY SERIES (CONTINUED):
--------------------------------------------------------------
T. ROWE MORGAN
PRICE STANLEY ALLIANCE
ALLIANCE INTERNATIONAL EMERGING AGGRESSIVE
INTERNATIONAL STOCK MARKETS STOCK
FUND FUND EQUITY FUND FUND
------------- ------------- ------------- ----------------
<S> <C> <C> <C> <C>
EQUI-VEST Series 100 and 200 Contracts:
Unit Value...................................... $ 90.75
===============
Units Outstanding............................... 28,030,046
===============
Old Contracts:
Unit Value......................................
Units Outstanding...............................
EQUIPLAN Contracts:
Unit Value......................................
Units Outstanding...............................
Momentum Contracts:
Unit Value...................................... $ 107.92 $ 90.75
============ ===============
Units Outstanding............................... 32,229 1,437,474
============ ===============
Momentum Plus Contracts:
Unit Value 135 B.P. ............................ $ 107.89 $ 171.96
============ ===============
Units Outstanding............................... 85,223 1,220,343
============ ===============
Momentum Plus Contracts:
Unit Value 100 B.P. ............................ $ 108.42 $ 137.72
============ ===============
Units Outstanding............................... 3,225 35,404
============ ===============
Momentum Plus Contracts:
Unit Value 90 B.P. ............................. $ 104.70 $ 119.41
============ ===============
Units Outstanding............................... 788 6,913
============ ===============
EQUI-VEST Contracts:
Unit Value All Series........................... $ 107.92 $ 97.61 $ 79.41 $ 163.33
============ ============ ============ ===============
Units Outstanding............................... 968,042 388,566 108,869 3,226,462
============ ============ ============ ===============
</TABLE>
See Notes to Financial Statements.
FSA-6
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
--------------------------------------------
WARBURG MFS EMERGING
PINCUS SMALL ALLIANCE GROWTH
COMPANY VALUE SMALL CAP COMPANIES
FUND GROWTH FUND FUND
-------------- -------------- --------------
<S> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 69,173,531..................... $69,195,794
67,121,984..................... $65,557,335
34,360,930..................... $34,766,133
Receivable for Trust shares sold.................. -- 3,097,257 --
Due from Equitable Life's General Account
(Note 3)........................................ 914,658 -- 636,822
----------- ----------- -----------
Total assets................................ 70,110,452 68,654,592 35,402,955
----------- ----------- -----------
LIABILITIES:
Payable for Trust shares purchased................ 928,477 -- 643,099
Due to Equitable Life's General Account
(Note 3)........................................ -- 3,097,339 --
Net accumulated amount of (i) mortality risk,
death benefit, expense and expense risk charges
and (ii) mortality and other gains and losses
retained by Equitable Life (Note 3)............. 1,116,417 2,494,021 3,688,505
----------- ----------- -----------
Total liabilities........................... 2,044,894 5,591,360 4,331,604
----------- ----------- -----------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS
(NOTE 5)........................................ $68,065,558 $63,063,232 $31,071,351
=========== =========== ===========
<CAPTION>
ASSET ALLOCATION SERIES:
----------------------------------------------------------------------------
ALLIANCE ALLIANCE MERRILL
CONSERVATIVE EQ/ GROWTH ALLIANCE LYNCH WORLD
INVESTORS PUTNAM INVESTORS BALANCED STRATEGY
FUND BALANCED FUND FUND FUND FUND
-------------- -------------- --------------- ---------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
Investments in shares of The Trusts,
at market value (Note 2):
Cost: $ 87,775,009..................... $94,401,613
15,266,095..................... $15,868,886
627,594,515..................... $690,127,541
1,135,324,973..................... $1,207,894,355
8,724,756..................... $8,571,144
Receivable for Trust shares sold.................. -- 6,326 -- -- --
Due from Equitable Life's General Account
(Note 3)........................................ 133,777 -- 2,498,667 633,174 68,569
----------- ----------- ------------ -------------- ----------
Total assets................................ 94,535,390 15,875,212 692,626,208 1,208,527,529 8,639,713
----------- ----------- ------------ -------------- ----------
LIABILITIES:
Payable for Trust shares purchased................ 133,792 -- 2,498,682 496,807 69,680
Due to Equitable Life's General Account
(Note 3)........................................ -- 8,792 -- -- --
Net accumulated amount of (i) mortality risk,
death benefit, expense and expense risk charges
and (ii) mortality and other gains and losses
retained by Equitable Life (Note 3)............. 1,738,387 3,445,396 8,417,048 10,074,705 3,144,734
----------- ----------- ------------ -------------- ----------
Total liabilities........................... 1,872,179 3,454,188 10,915,730 10,571,512 3,214,414
----------- ----------- ------------ -------------- ----------
NET ASSETS ATTRIBUTABLE TO CONTRACT OWNERS
(NOTE 5)........................................ $92,663,211 $12,421,024 $681,710,478 $1,197,956,017 $5,425,299
=========== =========== ============ ============== ==========
</TABLE>
See Notes to Financial Statements.
FSA-7
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
------------------------------------------
WARBURG MFS
PINCUS EMERGING
SMALL ALLIANCE GROWTH
COMPANY SMALL CAP COMPANIES
VALUE FUND GROWTH FUND FUND
------------- ------------- -------------
<S> <C> <C> <C>
EQUI-VEST Series 100 and 200 Contracts:
Unit Value......................................
Units Outstanding...............................
Old Contracts:
Unit Value......................................
Units Outstanding...............................
EQUIPLAN Contracts:
Unit Value......................................
Units Outstanding...............................
Momentum Contracts:
Unit Value...................................... $ 125.55
============
Units Outstanding............................... 6,136
============
Momentum Plus Contracts:
Unit Value 135 B.P. ............................ $ 125.54
============
Units Outstanding............................... 7,852
============
Momentum Plus Contracts:
Unit Value 100 B.P. ............................
Units Outstanding...............................
Momentum Plus Contracts:
Unit Value 90 B.P. ............................. $ 125.92
============
Units Outstanding............................... 466
============
EQUI-VEST Contracts:
Unit Value All Series........................... $ 118.06 $ 125.55 $ 121.34
============ ============ ============
Units Outstanding............................... 576,540 487,742 256,071
============ ============ ============
<CAPTION>
ASSET ALLOCATION SERIES:
------------------------------------------------------------------------------
ALLIANCE EQ/ ALLIANCE MERRILL
CONSERVATIVE PUTNAM GROWTH ALLIANCE LYNCH WORLD
INVESTORS BALANCED INVESTORS BALANCED STRATEGY
FUND FUND FUND FUND FUND
-------------- ------------ --------------- ---------------- -------------
<S> <C> <C> <C> <C> <C>
EQUI-VEST Series 100 and 200 Contracts:
Unit Value...................................... $ 38.66
===============
Units Outstanding............................... 26,036,131
===============
Old Contracts:
Unit Value......................................
Units Outstanding...............................
EQUIPLAN Contracts:
Unit Value......................................
Units Outstanding...............................
Momentum Contracts:
Unit Value...................................... $ 130.98 $ 153.69 $ 38.66
============= ============== ===============
Units Outstanding............................... 22,384 147,114 1,052,060
============= ============== ===============
Momentum Plus Contracts:
Unit Value 135 B.P. ............................ $ 128.45 $ 155.46 $ 136.14
============= ============== ===============
Units Outstanding............................... 124,945 552,622 438,958
============= ============== ===============
Momentum Plus Contracts:
Unit Value 100 B.P. ............................ $ 122.71 $ 135.20 $ 129.97
============= ============== ===============
Units Outstanding............................... 5,306 13,624 10,413
============= ============== ===============
Momentum Plus Contracts:
Unit Value 90 B.P. ............................. $ 126.72 $ 122.68
============== ===============
Units Outstanding............................... 1,489 732
============== ===============
EQUI-VEST Contracts:
Unit Value All Series........................... $ 130.98 $ 113.46 $ 153.69 $ 135.29 $ 103.77
============= =========== ============== =============== ============
Units Outstanding............................... 553,088 109,479 3,704,411 655,078 52,280
============= =========== ============== =============== ============
</TABLE>
See Notes to Financial Statements.
FSA-8
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
--------------------------------------------------------
ALLIANCE
INTERMEDIATE ALLIANCE ALLIANCE
ALLIANCE GOVERNMENT QUALITY HIGH
MONEY SECURITIES BOND YIELD
MARKET FUND FUND FUND FUND
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts..................... $4,839,897 $1,826,730 $2,041,253 $11,592,196
------------- ------------- ------------ -------------
Expenses (Note 3):
Asset-based charges........................... 1,287,340 413,101 418,433 1,570,483
Less: Reduction for expense limitation............. 54,412 7,677 -- --
------------- ------------- ------------ -------------
Net expenses.................................. 1,232,928 405,424 418,433 1,570,483
------------- ------------- ------------ -------------
NET INVESTMENT INCOME (LOSS)....................... 3,606,969 1,421,306 1,622,820 10,021,713
------------- ------------- ------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments............. 230,228 63,438 249,479 2,536,702
Realized gain distribution from
The Trusts.................................... 6,723 -- -- 6,214,579
------------- ------------- ------------ -------------
Net realized gain (loss)........................ 236,951 63,438 249,479 8,751,281
Change in unrealized appreciation /
(depreciation) of investments................. (78,466) 431,540 547,099 (187,263)
------------- ------------- ------------ -------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................. 158,485 494,978 796,578 8,564,018
------------- ------------- ------------ -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2).............. $3,765,454 $1,916,284 $2,419,398 $18,585,731
============= ============= ============ =============
<CAPTION>
EQUITY SERIES:
---------------------------------------------------------
T. ROWE EQ/PUTNAM
PRICE GROWTH ALLIANCE ALLIANCE
EQUITY & INCOME GROWTH & EQUITY
INCOME VALUE INCOME INDEX
FUND FUND(a) FUND(a) FUND
------------ ----------- -------------- --------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts..................... $ 438,863 $ 142,038 $ 2,696,998 $ 6,970,304
---------- --------- ----------- ------------
Expenses (Note 3):
Asset-based charges........................... 225,256 114,445 3,578,668 6,184,473
Less: Reduction for expense limitation............. -- -- -- --
---------- --------- ----------- ------------
Net expenses.................................. 225,256 114,445 3,578,668 6,184,473
---------- --------- ----------- ------------
NET INVESTMENT INCOME (LOSS)....................... 213,607 27,593 (881,670) 785,831
---------- --------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments............. (78,048) (67,660) 1,591,673 12,944,769
Realized gain distribution from
The Trusts.................................... 162,267 116,222 21,045,762 2,306,391
---------- --------- ----------- ------------
Net realized gain (loss)........................ 84,219 48,562 22,637,435 15,251,160
Change in unrealized appreciation /
(depreciation) of investments................. 3,419,591 743,804 34,617,976 98,430,290
---------- --------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................. 3,503,810 792,366 57,255,411 113,681,450
---------- --------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2).............. $3,717,417 $ 819,959 $56,373,741 $114,467,281
========== ========= =========== ============
</TABLE>
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-9
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
------------------------------------------------------------------------
MERRILL
LYNCH
BASIC ALLIANCE
VALUE COMMON MFS ALLIANCE ALLIANCE
EQUITY STOCK RESEARCH GLOBAL INTERNATIONAL
FUND(A) FUND FUND(A) FUND FUND
----------- ----------------- ----------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts..................... $ 94,301 $ 28,062,216 $ 64,096 $11,681,807 $ 3,449,567
-------- -------------- -------- ----------- ------------
Expenses (Note 3):
Asset-based charges........................... 66,262 73,360,152 108,418 7,628,464 1,608,336
Less: Reduction for expense limitation............. -- 5,103,502 -- -- --
-------- -------------- -------- ----------- ------------
Net expenses.................................. 66,262 68,256,650 108,418 7,628,464 1,608,336
-------- -------------- -------- ----------- ------------
NET INVESTMENT INCOME (LOSS)....................... 28,039 (40,194,434) (44,322) 4,053,343 1,841,231
-------- -------------- -------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments............. (55,907) 71,768,217 (98,011) 5,065,778 2,993,293
Realized gain distribution from
The Trusts.................................... 88,843 448,646,414 254,461 39,040,804 5,991,553
-------- -------------- -------- ----------- ------------
Net realized gain (loss)........................ 32,936 520,414,631 156,450 44,106,582 8,984,846
Change in unrealized appreciation /
(depreciation) of investments................. 226,896 776,898,715 477,876 7,345,361 (15,797,804)
-------- -------------- -------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................. 259,832 1,297,313,346 634,326 51,451,943 (6,812,958)
-------- -------------- -------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2).............. $287,871 $1,257,118,912 $590,004 $55,505,286 $ (4,971,727)
======== ============== ========= =========== ============
<CAPTION>
EQUITY SERIES (CONTINUED):
-------------------------------------------
MORGAN
T. ROWE STANLEY
PRICE EMERGING ALLIANCE
INTERNATIONAL MARKETS AGGRESSIVE
STOCK EQUITY STOCK
FUND(A) FUND(b) FUND
------------- ------------- ---------------
<S> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts..................... $ 5,743 $ 36,217 $ 4,814,252
----------- ----------- ------------
Expenses (Note 3):
Asset-based charges........................... 173,085 21,069 43,986,211
Less: Reduction for expense limitation............. -- -- 3,148,227
----------- ----------- ------------
Net expenses.................................. 173,085 21,069 40,837,984
----------- ----------- ------------
NET INVESTMENT INCOME (LOSS)....................... (167,342) 15,148 (36,023,732)
----------- ----------- ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments............. (1,454,589) (875,317) 128,458,759
Realized gain distribution from
The Trusts.................................... -- -- 286,431,791
----------- ----------- ------------
Net realized gain (loss)........................ (1,454,589) (875,317) 414,890,550
Change in unrealized appreciation /
(depreciation) of investments................. (917,513) (1,097,984) (79,262,405)
----------- ----------- ------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................. (2,372,102) (1,973,301) 335,628,145
----------- ----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2).............. $(2,539,444) $(1,958,153) $299,604,413
=========== =========== ============
</TABLE>
(a) Commenced operations on May 1, 1997.
(b) Commenced operations on August 20, 1997.
See Notes to Financial Statements.
FSA-10
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS (CONCLUDED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
-----------------------------------------------------
WARBURG
PINCUS MFS
SMALL ALLIANCE EMERGING ALLIANCE
COMPANY SMALL CAP GROWTH CONSERVATIVE
VALUE GROWTH COMPANIES INVESTORS
FUND(A) FUND(A) FUND(A) FUND
---------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts..................... $ 59,034 $ 11,202 $ 64,947 $3,599,823
--------- ---------- --------- ----------
Expenses (Note 3):
Asset-based charges........................... 292,506 237,355 124,265 1,151,097
Less: Reduction for expense limitation............. -- -- -- --
--------- ---------- --------- ----------
Net expenses.................................. 292,506 237,355 124,265 1,151,097
--------- ---------- --------- ----------
NET INVESTMENT INCOME (LOSS)....................... (233,472) (226,153) (59,318) 2,448,726
--------- ---------- --------- ----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments............. (699,272) 1,432,969 (381,340) 884,331
Realized gain distribution from
The Trusts.................................... 300,990 1,495,228 791,922 2,846,292
--------- ---------- --------- ----------
Net realized gain (loss)........................ (398,282) 2,928,197 410,582 3,730,623
Change in unrealized appreciation /
(depreciation) of investments................. 22,263 (1,564,649) 405,203 3,477,016
--------- ---------- --------- ----------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................. (376,019) 1,363,548 815,785 7,207,639
--------- ---------- --------- ----------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2).............. $(609,491) $1,137,395 $ 756,467 $9,656,365
========= ========== ========= ==========
<CAPTION>
ASSET ALLOCATION SERIES:
-------------------------------------------------------
MERRILL
EQ/ ALLIANCE LYNCH
PUTNAM GROWTH ALLIANCE WORLD
BALANCED INVESTORS BALANCED STRATEGY
FUND(A) FUND FUND FUND(A)
----------- ------------- -------------- -----------
<S> <C> <C> <C> <C>
INCOME AND EXPENSES:
Investment Income (Note 2):
Dividends from The Trusts..................... $176,490 $15,563,176 $ 38,538,483 $ 38,392
-------- ----------- ------------ ---------
Expenses (Note 3):
Asset-based charges........................... 46,780 8,188,817 17,086,252 22,358
Less: Reduction for expense limitation............. -- -- 1,849,482 --
-------- ----------- ------------ ---------
Net expenses.................................. 46,780 8,188,817 15,236,770 22,358
-------- ----------- ------------ ---------
NET INVESTMENT INCOME (LOSS)....................... 129,710 7,374,359 23,301,713 16,034
-------- ----------- ------------ ---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (NOTE 2):
Realized gain (loss) on investments............. (2,762) 2,871,160 20,098,513 (53,694)
Realized gain distribution from
The Trusts.................................... 118,192 35,753,101 59,000,879 87,431
-------- ----------- ------------ ---------
Net realized gain (loss)........................ 115,430 38,624,261 79,099,392 33,737
Change in unrealized appreciation /
(depreciation) of investments................. 602,835 40,925,116 45,961,244 (153,612)
-------- ----------- ------------ ---------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS.................................. 718,265 79,549,377 125,060,636 (119,875)
-------- ----------- ------------ ---------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (NOTE 2).............. $847,975 $86,923,736 $148,362,349 $(103,841)
======== =========== ============ =========
</TABLE>
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-11
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
FIXED INCOME SERIES:
-------------------------------------------------------------
ALLIANCE ALLIANCE INTERMEDIATE
MONEY MARKET GOVERNMENT SECURITIES
FUND FUND
------------------------------ ----------------------------
1997 1996 1997 1996
-------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ 3,606,969 $ 3,123,305 $ 1,421,306 $ 1,192,426
Net realized gain (loss) on investments......... 236,951 137,830 63,438 (84,183)
Change in unrealized appreciation /
(depreciation) of investments................. (78,466) 15,587 431,540 (386,046)
------------ ------------ ----------- -----------
Net increase in net assets from operations...... 3,765,454 3,276,722 1,916,284 722,197
------------ ------------ ----------- -----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 86,657,302 119,080,405 7,536,973 9,100,062
Transfers from other Funds and
Guaranteed Interest Account................. 47,922,157 28,258,231 8,017,226 7,049,068
------------ ------------ ----------- -----------
Total..................................... 134,579,459 147,338,636 15,554,199 16,149,130
------------ ------------ ----------- -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 16,145,603 15,180,565 3,204,151 3,753,602
Transfers to other Funds and
Guaranteed Interest Account................. 117,776,744 119,609,249 6,576,233 5,943,525
Withdrawal and administrative charges......... 297,412 206,649 54,007 45,485
------------ ------------ ----------- -----------
Total................................... 134,219,759 134,996,463 9,834,391 9,742,612
------------ ------------ ----------- -----------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 359,700 12,342,173 5,719,808 6,406,518
------------ ------------ ----------- -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (68,437) (61,391) (50,296) (24,318)
------------ ------------ ----------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 4,056,717 15,557,504 7,585,796 7,104,397
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. 93,814,801 78,257,297 29,428,193 22,323,796
------------ ------------ ----------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $ 97,871,518 $ 93,814,801 $37,013,989 $29,428,193
============ =============== ============= =============
<CAPTION>
FIXED INCOME SERIES:
-------------------------------------------------------------
ALLIANCE ALLIANCE
QUALITY BOND HIGH YIELD
FUND FUND
--------------------------- -----------------------------
1997 1996 1997 1996
-------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ 1,622,820 $ 1,226,243 $ 10,021,713 $ 4,979,724
Net realized gain (loss) on investments......... 249,479 280,060 8,751,281 4,297,646
Change in unrealized appreciation /
(depreciation) of investments................. 547,099 (469,209) (187,263) 721,266
----------- ----------- ------------ -----------
Net increase in net assets from operations...... 2,419,398 1,037,094 18,585,731 9,998,636
----------- ----------- ------------ -----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 8,725,632 7,201,618 39,249,294 23,155,861
Transfers from other Funds and
Guaranteed Interest Account................. 14,735,972 11,609,924 81,831,743 30,143,138
----------- ----------- ------------ -----------
Total..................................... 23,461,604 18,811,542 121,081,037 53,298,999
----------- ----------- ------------ -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 2,471,399 1,789,909 9,034,492 4,361,957
Transfers to other Funds and
Guaranteed Interest Account................. 9,009,004 8,691,630 50,004,724 13,868,715
Withdrawal and administrative charges......... 49,238 30,562 180,111 78,426
----------- ----------- ------------ -----------
Total................................... 11,529,641 10,512,101 59,219,327 18,309,098
----------- ----------- ------------ -----------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 11,931,963 8,299,441 61,861,710 34,989,902
----------- ----------- ------------ -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (51,466) (33,143) (195,148) (78,617)
----------- ----------- ------------ -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 14,299,895 9,303,392 80,252,293 44,909,921
----------- ----------- ------------ -----------
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. 26,349,265 17,045,873 77,961,239 33,051,318
----------- ----------- ------------ -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $40,649,160 $26,349,265 $158,213,532 $77,961,239
=========== =========== ============ ===========
</TABLE>
See Notes to Financial Statements.
FSA-12
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY SERIES:
--------------------------------------------------------------------
T. ROWE EQ/PUTNAM
PRICE GROWTH &
EQUITY INCOME ALLIANCE
INCOME VALUE GROWTH & INCOME
FUND(A) FUND(A) FUND
------------- ------------- --------------------------------
1997 1997 1997 1996
------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ 213,607 $ 27,593 $ (881,670) $ 674,662
Net realized gain (loss) on investments......... 84,219 48,562 22,637,435 9,675,338
Change in unrealized appreciation /
(depreciation) of investments................. 3,419,591 743,804 34,617,976 10,940,166
----------- ----------- ------------ ------------
Net increase in net assets from operations...... 3,717,417 819,959 56,373,741 21,290,166
----------- ----------- ------------ ------------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 14,253,368 9,287,300 77,902,559 44,131,391
Transfers from other Funds and
Guaranteed Interest Account................. 49,127,513 21,624,425 159,040,741 70,653,911
----------- ----------- ------------ ------------
Total..................................... 63,380,881 30,911,725 236,943,300 114,785,302
----------- ----------- ------------ ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 461,902 221,732 15,991,738 6,415,518
Transfers to other Funds and
Guaranteed Interest Account................. 8,775,894 2,466,969 70,222,768 36,251,785
Withdrawal and administrative charges......... 7,224 5,138 387,138 177,183
----------- ----------- ------------ ------------
Total................................... 9,245,020 2,693,839 86,601,644 42,844,486
----------- ----------- ------------ ------------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 54,135,861 28,217,886 150,341,656 71,940,816
----------- ----------- ------------ ------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (368,386) (283,117) (337,427) (144,964)
----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 57,484,892 28,754,728 206,377,970 93,086,018
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. -- -- 163,506,297 70,420,279
----------- ----------- ------------ ------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $57,484,892 $28,754,728 $369,884,267 $163,506,297
=========== =========== ============ ============
<CAPTION>
EQUITY SERIES:
----------------------------------------------------
MERRILL
ALLIANCE LYNCH BASIC
EQUITY INDEX VALUE EQUITY
FUND FUND(A)
-------------------------------- --------------
1997 1996 1997
-------------- --------------- -------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ 785,831 $ 1,004,328 $ 28,039
Net realized gain (loss) on investments......... 15,251,160 14,191,113 32,936
Change in unrealized appreciation /
(depreciation) of investments................. 98,430,290 19,487,539 226,896
------------ ------------ -----------
Net increase in net assets from operations...... 114,467,281 34,682,980 287,871
------------ ------------ -----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 123,805,230 78,060,051 5,085,307
Transfers from other Funds and
Guaranteed Interest Account................. 497,060,564 224,346,052 15,531,026
------------ ------------ -----------
Total..................................... 620,865,794 302,406,103 20,616,333
------------ ------------ -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 26,845,795 8,358,084 146,225
Transfers to other Funds and
Guaranteed Interest Account................. 332,805,482 142,130,534 3,680,513
Withdrawal and administrative charges......... 650,256 217,821 3,018
------------ ------------ -----------
Total................................... 360,301,533 150,706,439 3,829,756
------------ ------------ -----------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 260,564,261 151,699,664 16,786,577
------------ ------------ -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (491,351) (138,050) (298,904)
------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 374,540,191 186,244,594 16,775,544
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. 274,346,704 88,102,110 --
------------ ------------ -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $648,886,895 $274,346,704 $16,775,544
============ ============ ===========
</TABLE>
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-13
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
------------------------------------------------------
ALLIANCE MFS
COMMON STOCK RESEARCH
FUND FUND(A)
----------------------------------- --------------
1997 1996 1997
----------------- ----------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ (40,194,434) $ (18,656,106) $ (44,322)
Net realized gain (loss) on investments......... 520,414,631 467,121,717 156,450
Change in unrealized appreciation /
(depreciation) of investments................. 776,898,715 326,272,321 477,876
------------- -------------- ----------
Net increase in net assets from operations...... 1,257,118,912 774,737,932 590,004
------------- -------------- ----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 485,617,488 453,359,975 9,395,788
Transfers from other Funds and
Guaranteed Interest Account................. 981,404,674 762,624,599 21,884,490
------------- -------------- ----------
Total..................................... 1,467,022,162 1,215,984,574 31,280,278
------------- -------------- ----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 326,957,672 220,362,060 315,298
Transfers to other Funds and
Guaranteed Interest Account................. 793,882,977 607,476,726 3,913,603
Withdrawal and administrative charges......... 6,730,878 5,572,073 4,474
------------- -------------- ----------
Total................................... 1,127,571,527 833,410,859 4,233,375
------------- -------------- ----------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 339,450,635 382,573,715 27,046,903
------------- -------------- ----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (5,291,673) (2,598,917) (462,377)
------------- -------------- -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 1,591,277,874 1,154,712,730 27,174,530
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. 4,332,698,100 3,177,985,370 --
-------------- -------------- -----------
NET ASSETS -- END OF PERIOD (NOTE 1) $5,923,975,974 $4,332,698,100 $27,174,530
ATTRIBUTABLE TO CONTRACT OWNERS................. =============== ============== ===========
<CAPTION>
EQUITY SERIES (CONTINUED):
-------------------------------------------------------------------
ALLIANCE ALLIANCE
GLOBAL INTERNATIONAL
FUND FUND
-------------------------------- -------------------------------
1997 1996 1997 1996
---------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ 4,053,343 $ 2,150,106 $ 1,841,231 $ 485,233
Net realized gain (loss) on investments......... 44,106,582 22,308,566 8,984,846 2,972,966
Change in unrealized appreciation /
(depreciation) of investments................. 7,345,361 26,407,595 (15,797,804) 1,086,851
------------ ------------ ------------ -----------
Net increase in net assets from operations...... 55,505,286 50,866,267 (4,971,727) 4,545,050
------------ ------------ ------------ -----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 89,835,392 104,951,106 27,672,360 32,148,619
Transfers from other Funds and
Guaranteed Interest Account................. 100,167,043 115,437,667 151,532,780 132,166,698
------------ ------------ ------------ -----------
Total..................................... 190,002,435 220,388,773 179,205,140 164,315,317
------------ ------------ ------------ -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 38,003,491 28,738,527 9,154,376 3,342,378
Transfers to other Funds and
Guaranteed Interest Account................. 93,151,966 61,058,782 143,958,994 83,376,653
Withdrawal and administrative charges......... 1,013,918 724,468 226,612 60,421
------------ ------------ ------------ -----------
Total................................... 132,169,375 90,521,777 153,339,982 86,779,452
------------ ------------ ------------ -----------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 57,833,060 129,866,996 25,865,158 77,535,865
------------ ------------ ------------ -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (280,980) (286,484) 8,298 5,549
------------ ------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 113,057,366 180,446,779 20,901,729 82,086,464
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. 495,454,265 315,007,486 97,187,560 15,101,096
------------ ------------ ------------ -----------
NET ASSETS -- END OF PERIOD (NOTE 1) $608,511,631 $495,454,265 $118,089,289 $ 97,187,560
ATTRIBUTABLE TO CONTRACT OWNERS................. ============ ============ ============ ============
</TABLE>
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-14
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED):
-----------------------------------------------------------------------
MORGAN
T. ROWE STANLEY
PRICE EMERGING
INTERNATIONAL MARKETS ALLIANCE
STOCK EQUITY AGGRESSIVE STOCK
FUND(A) FUND(b) FUND
-------------- ------------- ------------------------------------
1997 1997 1997 1996
-------------- ------------- ----------------- -----------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ (167,342) $ 15,148 $ (36,023,732) $ (27,686,560)
Net realized gain (loss) on investments......... (1,454,589) (875,317) 414,890,550 578,406,046
Change in unrealized appreciation /
(depreciation) of investments................. (917,513) (1,097,984) (79,262,405) (87,392,419)
----------- ----------- -------------- --------------
Net increase in net assets from operations...... (2,539,444) (1,958,153) 299,604,413 463,327,067
----------- ----------- -------------- --------------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 11,943,016 2,087,150 378,453,001 390,313,679
Transfers from other Funds and
Guaranteed Interest Account................. 48,742,022 17,543,713 1,226,614,217 1,303,527,875
----------- ----------- -------------- --------------
Total..................................... 60,685,038 19,630,863 1,605,067,218 1,693,841,554
----------- ----------- -------------- --------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 551,644 38,081 223,777,455 154,410,598
Transfers to other Funds and
Guaranteed Interest Account................. 19,727,736 10,197,807 1,226,219,275 1,118,235,181
Withdrawal and administrative charges......... 12,207 1,449 5,581,896 4,762,116
----------- ----------- -------------- --------------
Total................................... 20,291,587 10,237,337 1,455,578,626 1,277,407,895
----------- ----------- -------------- --------------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 40,393,451 9,393,526 149,488,592 416,433,659
----------- ----------- -------------- --------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). 74,460 1,210,394 (445,491) (596,353)
----------- ----------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 37,928,467 8,645,767 448,647,514 879,164,373
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. -- -- 2,976,573,730 2,097,409,357
----------- ----------- -------------- --------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $37,928,467 $ 8,645,767 $3,425,221,244 $2,976,573,730
=========== =========== ============== ==============
<CAPTION>
EQUITY SERIES (CONTINUED):
----------------------------------------------------
WARBURG
PINCUS ALLIANCE MFS EMERGING
SMALL COMPANY SMALL CAP GROWTH
VALUE GROWTH COMPANIES
FUND(A) FUND(A) FUND(A)
--------------- --------------- --------------
1997 1997 1997
-------------- --------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ (233,472) $ (226,153) $ (59,318)
Net realized gain (loss) on investments......... (398,282) 2,928,197 410,582
Change in unrealized appreciation /
(depreciation) of investments................. 22,263 (1,564,649) 405,203
------------ ------------ -----------
Net increase in net assets from operations...... (609,491) 1,137,395 756,467
------------ ------------ -----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 17,932,084 15,686,202 10,348,726
Transfers from other Funds and
Guaranteed Interest Account................. 95,994,086 134,506,874 41,158,325
------------ ------------ -----------
Total..................................... 113,926,170 150,193,076 51,507,051
------------ ------------ -----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 710,649 644,310 272,079
Transfers to other Funds and
Guaranteed Interest Account................. 44,374,048 87,128,302 20,257,025
Withdrawal and administrative charges......... 13,343 7,383 3,323
------------ ------------ -----------
Total................................... 45,098,040 87,779,995 20,532,427
------------ ------------ -----------
Net increase (decrease) in net assets from
Contract Owners transactions.................. 68,828,130 62,413,081 30,974,624
------------ ------------ -----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (153,081) (487,244) (659,740)
------------ ------------ -----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 68,065,558 63,063,232 31,071,351
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. -- -- --
------------ ------------ -----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $ 68,065,558 $ 63,063,232 $31,071,351
============ ============ ===========
</TABLE>
(a) Commenced operations on May 1, 1997.
(b) Commenced operations on August 20, 1997.
See Notes to Financial Statements.
FSA-15
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
FOR THE YEARS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ASSET ALLOCATION SERIES:
----------------------------------------------------------------------------
ALLIANCE ALLIANCE
CONSERVATIVE EQ/PUTNAM GROWTH
INVESTORS BALANCED INVESTORS
FUND FUND(A) FUND
---------------------------- -------------- ------------------------------
1997 1996 1997 1997 1996
---------------------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ 2,448,726 $ 2,631,006 $ 129,710 $ 7,374,359 $ 5,106,790
Net realized gain (loss) on investments......... 3,730,623 2,242,475 115,430 38,624,261 52,452,931
Change in unrealized appreciation /
(depreciation) of investments................. 3,477,016 (1,503,698) 602,835 40,925,116 (9,867,072)
----------- ----------- ----------- ------------ ------------
Net increase in net assets from operations...... 9,656,365 3,369,783 847,975 86,923,736 47,692,649
----------- ----------- ----------- ------------ ------------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 11,365,584 22,119,111 3,699,337 96,835,654 130,147,052
Transfers from other Funds and
Guaranteed Interest Account................. 8,530,415 8,707,223 15,752,330 86,565,969 121,414,460
----------- ----------- ----------- ------------ ------------
Total..................................... 19,895,999 30,826,334 19,451,667 183,401,623 251,561,512
----------- ----------- ----------- ------------ ------------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 7,295,059 5,546,973 192,650 39,593,409 25,722,728
Transfers to other Funds and
Guaranteed Interest Account................. 14,511,104 14,201,772 7,250,221 76,718,000 49,453,027
Withdrawal and administrative charges......... 162,391 149,752 1,654 1,162,210 776,045
----------- ----------- ----------- ------------ ------------
Total................................... 21,968,554 19,898,497 7,444,525 117,473,619 75,951,800
----------- ----------- ----------- ------------ ------------
Net increase (decrease) in net assets from
Contract Owners transactions.................. (2,072,555) 10,927,837 12,007,142 65,928,004 175,609,712
----------- ----------- ----------- ------------ ------------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (172,151) (72,280) (434,093) (551,891) (212,924)
----------- ----------- ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 7,411,659 14,225,340 12,421,024 152,299,849 223,089,437
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. 85,251,552 71,026,212 -- 529,410,629 306,321,192
----------- ----------- ----------- ------------ ------------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $92,663,211 $85,251,552 $12,421,024 $681,710,478 $529,410,629
=========== =========== =========== ============ ============
<CAPTION>
ASSET ALLOCATION SERIES:
-------------------------------------------------
ALLIANCE MERRILL LYNCH
BALANCED WORLD STRATEGY
FUND FUND(A)
--------------------------------- --------------
1997 1996 1997
---------------- ---------------- --------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss).................... $ 23,301,713 $ 19,667,360 $ 16,034
Net realized gain (loss) on investments......... 79,099,392 100,889,344 33,737
Change in unrealized appreciation /
(depreciation) of investments................. 45,961,244 (15,177,682) (153,612)
-------------- -------------- ----------
Net increase in net assets from operations...... 148,362,349 105,379,022 (103,841)
-------------- -------------- ----------
FROM CONTRACT OWNERS TRANSACTIONS (NOTE 4):
Contributions and Transfers:
Contributions................................. 84,629,925 102,324,455 1,913,915
Transfers from other Funds and
Guaranteed Interest Account................. 112,630,041 107,478,067 8,826,145
-------------- -------------- ----------
Total..................................... 197,259,966 209,802,522 10,740,060
-------------- -------------- ----------
Payments, Transfers and Charges:
Annuity payments, withdrawals
and death benefits.......................... 96,288,584 78,989,041 156,911
Transfers to other Funds and
Guaranteed Interest Account................. 170,604,239 154,003,205 4,913,746
Withdrawal and administrative charges......... 1,889,094 2,085,995 622
-------------- -------------- ----------
Total................................... 268,781,917 235,078,241 5,071,279
-------------- -------------- ----------
Net increase (decrease) in net assets from
Contract Owners transactions.................. (71,521,951) (25,275,719) 5,668,781
-------------- -------------- ----------
Net (increase) decrease in amount retained by
Equitable Life in Separate Account A (Note 3). (620,223) (481,189) (139,641)
-------------- -------------- ----------
INCREASE (DECREASE) IN NET ASSETS
ATTRIBUTABLE TO CONTRACT OWNERS................. 76,220,175 79,622,114 5,425,299
NET ASSETS -- BEGINNING OF PERIOD
ATTRIBUTABLE TO CONTRACT OWNERS................. 1,121,735,842 1,042,113,728 --
-------------- -------------- ----------
NET ASSETS -- END OF PERIOD (NOTE 1)
ATTRIBUTABLE TO CONTRACT OWNERS................. $1,197,956,017 $1,121,735,842 $5,425,299
============== ============== ==========
</TABLE>
(a) Commenced operations on May 1, 1997.
See Notes to Financial Statements.
FSA-16
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
1. General
The Equitable Life Assurance Society of the United States (Equitable Life)
Separate Account A (The Account) is organized as a unit investment trust, a
type of investment company, and is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940. The Account
consists of twenty-four investment funds (Funds): Alliance Money Market
Fund, Alliance Intermediate Government Securities Fund, Alliance Quality
Bond Fund, Alliance High Yield Fund, T. Rowe Price Equity Income Fund,
EQ/Putnam Growth & Income Value Fund, Alliance Growth & Income Fund,
Alliance Equity Index Fund, Merrill Lynch Basic Value Equity Fund, Alliance
Common Stock Fund, MFS Research Fund, Alliance Global Fund, Alliance
International Fund, T. Rowe Price International Stock Fund, Morgan Stanley
Emerging Markets Equity Fund, Alliance Aggressive Stock Fund, Warburg Pincus
Small Company Value Fund, Alliance Small Cap Growth Fund, MFS Emerging
Growth Companies Fund, Alliance Conservative Investors Fund, EQ/Putnam
Balanced Fund, Alliance Growth Investors Fund, Alliance Balanced Fund and
Merrill Lynch World Strategy Fund. The assets in each fund are invested in
shares of a corresponding portfolio (Portfolio) of a mutual fund, Class IA
shares of The Hudson River Trust (HR Trust) or Class IB shares of EQ
Advisors Trust (EQ Trust) (Collectively known as the Trusts). Class IA
shares are offered by the Funds at net asset value and are not subject to
distribution fees imposed pursuant to a distribution plan. Class IB shares
are offered by the Fund at net asset value and are subject to distribution
fees imposed under a distribution plan adopted pursuant to Rule 12b-1 under
the 1940 Act. The Trusts are open-end, diversified investment management
companies that invest separate account assets of insurance companies.
The Account is used to fund benefits under certain individual tax-favored
variable annuity contracts (Old Contracts), individual non-qualified
variable annuity contracts (EQUIPLAN Contracts), tax-favored and
non-qualified certificates issued under group deferred variable annuity
contracts and certain related individual contracts (EQUI-VEST Contracts),
group deferred variable annuity contracts used to fund tax-qualified defined
contribution plans (Momentum Contracts) and group variable annuity contracts
used as a funding vehicle for employers who sponsor qualified defined
contribution plans (Momentum Plus). All of these contracts and certificates
are collectively referred to as the Contracts.
The net assets of the Account are not chargeable with liabilities arising
out of any other business Equitable Life may conduct. The excess of assets
over reserves and other contract liabilities, if any, in the Account may be
transferred to Equitable Life's General Account.
2. Significant Accounting Policies
The accompanying financial statements are prepared in conformity with
generally accepted accounting principles (GAAP). The preparation of
financial statements in conformity with GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
Investments are made in shares of the Trust and are valued at the net asset
values per share of the respective Portfolios. The net asset value is
determined by the Trust using the market or fair value of the underlying
assets of the Portfolio less liabilities.
Investment transactions are recorded on the trade date. Realized gains and
losses include (1) gains and losses on redemptions of the Trust's shares
(determined on the identified cost basis) and (2) Trust distributions
representing the net realized gains on Trust investment transactions which
are distributed by the Trusts at the end of each year and automatically
reinvested in additional shares. Dividends are recorded by HR Trust at the
end of each quarter and by EQ Trust in the fourth quarter on the ex-dividend
date. Capital gains are distributed by the Trust at the end of year.
No Federal income tax based on net income or realized and unrealized capital
gains is currently applicable to Contracts participating in the Account by
reason of applicable provisions of the Internal Revenue Code and no Federal
income tax payable by Equitable Life is expected to affect the unit value of
Contracts participating in the Account. Accordingly, no provision for income
taxes is required.
FSA-17
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
3. Asset Charges
The following charges are made directly against the daily net assets of the
Account and are reflected daily in the computation of the accumulation unit
values of the Contracts:
<TABLE>
<CAPTION>
EQUI-VEST
MOMENTUM SERIES 300
EQUI-VEST/MOMENTUM PLUS OLD EQUIPLAN & 400
CONTRACTS CONTRACTS CONTRACTS CONTRACTS CONTRACTS
------------------------------------ --------------- ---------------- -------------------- ------------
Common Stock and
Alliance Money Market, Common Stock Intermediate
Alliance Balanced, All and Government
Alliance Common Stock Other Money Market Securities
Funds Funds All Funds Funds Funds All Funds
------------------------ ------------ ----------- ---------------- -------------------- ------------
<S> <C> <C> <C> <C> <C> <C>
Death Benefits........ 0.05% 0.05% -- 0.05% 0.05% --
Mortality Risks....... 0.30% 0.30% 0.50% 0.45% 0.45% 0.60%
Expenses.............. 0.60% 0.60% 0.25% 0.16% 0.16% 0.24/0.25%
Expense Risks......... 0.30% 0.15% 0.60% 0.08% 0.08% 0.50%
Financial Accounting.. 0.24% 0.24% -- -- -- --
</TABLE>
During 1997, Equitable Life charged EQUI-VEST Series 300 and 400 Contracts
0.24% against the assets of the HR and EQ Funds for expenses, except as
noted. This voluntary expense limitation discounted from 0.25% to 0.24% may
be discontinued by Equitable Life at its discretion. Equitable Life charged
EQUI-VEST Series 300 and 400 0.25% against the assets of the Alliance Money
Market Fund, the Alliance Common Stock Fund, the Alliance Aggressive Stock
Fund, and the Alliance Balanced Funds.
The above charges may be retained in the Account by Equitable Life and, to
the extent retained, participate in the net investment results of the Trust
ratably with assets attributable to the Contracts.
Since the Trust shares are valued at their net asset value, investment
advisory fees and direct operating expenses of the Trust are, in effect,
passed on to the Account and are reflected in the computation of the
accumulation unit values of the Contracts.
Under the terms of the Contracts, the aggregate of these asset charges and
the charges of the Trust for advisory fees and for direct operating expenses
may not exceed a total effective annual rate of 1.75% for EQUI-VEST and
Momentum Contracts for the Alliance Money Market Fund, the Alliance Common
Stock Fund, the Alliance Aggressive Stock Fund, the Alliance Balanced Funds
and 1% for the Old Contracts and EQUIPLAN Contracts.
Under the Contracts, the total charges may be reallocated among the various
expense categories. Equitable Life, however, intends to limit any possible
reallocation to include only the expense risks, mortality risks and death
benefit charges.
4. Contributions, Payments, Transfers and Charges
Contributions represent participant contributions under EQUI-VEST, Momentum,
Momentum Plus and EQUI-VEST Series 300 and 400 Contracts (but excludes
amounts allocated to the Guaranteed Interest Account, which are reflected in
the General Account) and participant contributions under other Contracts
(Old Contracts, EQUIPLAN) reduced by applicable deductions, charges and
state premium taxes. Contributions also include amounts applied to purchase
variable annuities. Transfers are amounts that participants have directed to
be moved among the Funds, including permitted transfers to and from the
Guaranteed Interest Account, which is part of Equitable Life's General
Account.
Variable annuity payments and death benefits are payments to participants
and beneficiaries made under the terms of the Contracts. Withdrawals are
amounts that participants have requested to be withdrawn and paid to them or
applied to purchase annuities. Withdrawal charges, if applicable, are the
deferred contingent withdrawal charges that apply to certain withdrawals
under EQUI-VEST, Momentum, Momentum Plus and EQUI-VEST Series 300 and 400
Contracts. Administrative charges, if applicable, are deducted annually
under EQUI-VEST, EQUIPLAN and Old Contracts and quarterly under Momentum,
Momentum Plus and EQUI-VEST Series 300 and 400 Contracts.
FSA-18
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. Contributions, Payments, Transfers and Charges (Continued):
Accumulation units issued and redeemed during the periods indicated were:
<TABLE>
<CAPTION>
Years Ended
December 31,
------------------------------------------
1997 1996
<S> <C> <C>
Fixed Income Series:
ALLIANCE MONEY MARKET FUND
- --------------------------
Issued -- EQUI-VEST Contracts............................................... 837,383 471,698
Momentum Contracts................................................ 483,055 508,189
Momentum Plus Contracts 135 BP.................................... 588,908 812,388
Momentum Plus Contracts 100 BP.................................... 10,050 40,920
Old Contracts..................................................... 120,867 4,948
EQUI-VEST Series 300 and 400 Contracts............................ 258,260 245,758
Redeemed -- EQUI-VEST Contracts............................................... 877,393 479,069
Momentum Contracts................................................ 415,858 456,078
Momentum Plus Contracts 135 BP.................................... 564,110 804,620
Momentum Plus Contracts 100 BP.................................... 10,333 27,829
Old Contracts..................................................... 1,572 15,490
EQUI-VEST Series 300 and 400 Contracts............................ 277,148 162,153
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND
- ------------------------------------------------
Issued -- Momentum Contracts................................................ 5,215 5,037
Momentum Plus Contracts 135 BP.................................... 29,724 30,826
Momentum Plus Contracts 100 BP.................................... 804 2,792
EQUIPLAN Contracts................................................ 49,549 13,023
EQUI-VEST Series 300 and 400 Contracts............................ 105,144 103,536
Redeemed -- Momentum Contracts................................................ 4,851 2,248
Momentum Plus Contracts 135 BP.................................... 31,521 37,473
Momentum Plus Contracts 100 BP.................................... 813 336
EQUIPLAN Contracts................................................ 2 8,091
EQUI-VEST Series 300 and 400 Contracts............................ 50,075 46,208
ALLIANCE QUALITY BOND FUND
- --------------------------
Issued -- Momentum Contracts................................................ 7,848 4,794
Momentum Plus Contracts 135 BP.................................... 22,668 21,227
Momentum Plus Contracts 100 BP.................................... 449 1,393
EQUI-VEST Series 300 and 400 Contracts............................ 167,788 145,134
Redeemed -- Momentum Contracts................................................ 5,005 1,778
Momentum Plus Contracts 135 BP.................................... 12,495 10,306
Momentum Plus Contracts 100 BP.................................... 636 47
EQUI-VEST Series 300 and 400 Contracts............................ 80,367 84,488
</TABLE>
FSA-19
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
Years Ended
December 31,
---------------------------------------
1997 1996
-------------- -------------
<S> <C> <C>
ALLIANCE HIGH YIELD FUND
- ------------------------
Issued -- Momentum Contracts................................................ 17,805 12,054
Momentum Plus Contracts 135 BP.................................... 62,992 50,342
Momentum Plus Contracts 100 BP.................................... 1,622 5,597
EQUI-VEST Series 300 and 400 Contracts............................ 726,147 347,167
Redeemed -- Momentum Contracts................................................ 6,772 1,584
Momentum Plus Contracts 135 BP.................................... 42,608 26,154
Momentum Plus Contracts 100 BP.................................... 1,327 478
EQUI-VEST Series 300 and 400 Contracts............................ 338,338 112,750
Equity Series:
T. ROWE PRICE EQUITY INCOME FUND
- --------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 554,196 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 79,255 --
EQ/PUTNAM GROWTH & INCOME VALUE FUND
- ------------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 273,498 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 23,834 --
ALLIANCE GROWTH & INCOME FUND
- -----------------------------
Issued -- Momentum Contracts................................................ 45,474 32,378
-- Momentum Plus Contracts 135 BP.................................... 116,065 80,062
Momentum Plus Contracts 100 BP.................................... 3,889 3,154
Momentum Plus Contracts 90 BP..................................... 1,441 --
EQUI-VEST Series 300 and 400 Contracts............................ 1,286,205 769,435
Redeemed -- Momentum Contracts................................................ 17,193 8,397
Momentum Plus Contracts 135 BP.................................... 46,155 26,343
Momentum Plus Contracts 100 BP.................................... 2,901 126
Momentum Plus Contracts 90 BP..................................... 337 --
EQUI-VEST Series 300 and 400 Contracts............................ 462,065 291,623
</TABLE>
FSA-20
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
Years Ended
December 31,
-----------------------------------------
1997 1996
-------------- --------------
<S> <C> <C>
ALLIANCE EQUITY INDEX FUND
- --------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 2,967,392 1,866,091
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 1,768,139 971,325
MERRILL LYNCH BASIC VALUE EQUITY FUND
- -------------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 177,242 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 32,592 --
ALLIANCE COMMON STOCK FUND
- --------------------------
Issued -- EQUI-VEST Contracts............................................... 4,383,156 4,329,571
Momentum Contracts................................................ 204,382 243,637
Momentum Plus Contracts 135 BP.................................... 545,202 597,453
Momentum Plus Contracts 100 BP.................................... 41,653 157,605
Momentum Plus Contracts 90 BP..................................... 6,431 --
Old Contracts..................................................... 301,258 728
EQUIPLAN Contracts................................................ 86,999 303
EQUI-VEST Series 300 and 400 Contracts............................ 1,968,780 2,233,005
Redeemed -- EQUI-VEST Contracts............................................... 3,930,073 3,688,353
Momentum Contracts................................................ 134,959 127,310
Momentum Plus Contracts 135 BP.................................... 354,590 264,968
Momentum Plus Contracts 100 BP.................................... 142,434 17,583
Momentum Plus Contracts 90 BP..................................... 1,552 --
Old Contracts..................................................... 3,085 42,438
EQUIPLAN Contracts................................................ 1,986 12,375
EQUI-VEST Series 300 and 400 Contracts............................ 660,995 764,368
</TABLE>
FSA-21
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
Years Ended
December 31,
----------------------------------------
1997 1996
-------------- -------------
<S> <C> <C>
MFS RESEARCH FUND
- -----------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 273,002 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 36,730 --
ALLIANCE GLOBAL FUND
- --------------------
Issued -- Momentum Contracts................................................ 67,282 69,785
Momentum Plus Contracts 135 BP.................................... 173,371 226,890
Momentum Plus Contracts 100 BP.................................... 3,421 14,214
Momentum Plus Contracts 90 BP..................................... 2,872 --
EQUI-VEST Series 300 and 400 Contracts............................ 1,087,193 1,395,485
Redeemed -- Momentum Contracts................................................ 36,989 15,804
Momentum Plus Contracts 135 BP.................................... 151,688 158,197
Momentum Plus Contracts 100 BP.................................... 3,187 1,356
Momentum Plus Contracts 90 BP..................................... 468 --
EQUI-VEST Series 300 and 400 Contracts............................ 712,463 521,429
ALLIANCE INTERNATIONAL FUND
- ---------------------------
Issued -- Momentum Contracts................................................ 23,465 21,296
Momentum Plus Contracts 135 BP.................................... 61,102 61,499
Momentum Plus Contracts 100 BP.................................... 8,513 26,479
Momentum Plus Contracts 90 BP..................................... 1,175 --
EQUI-VEST Series 300 and 400 Contracts............................ 1,473,483 1,395,292
Redeemed -- Momentum Contracts................................................ 10,479 2,534
Momentum Plus Contracts 135 BP.................................... 25,904 10,691
Momentum Plus Contracts 100 BP.................................... 25,384 5,744
Momentum Plus Contracts 90 BP..................................... 387 --
EQUI-VEST Series 300 and 400 Contracts............................ 1,268,707 772,701
T. ROWE PRICE INTERNATIONAL STOCK FUND
- --------------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 590,328 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 201,762 --
</TABLE>
FSA-22
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
Years Ended
December 31,
-----------------------------------------
1997 1996
-------------- -------------
<S> <C> <C>
MORGAN STANLEY EMERGING MARKETS EQUITY FUND
- ------------------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 228,577 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 119,707 --
ALLIANCE AGGRESSIVE STOCK FUND
- ------------------------------
Issued -- EQUI-VEST Contracts............................................... 12,306,387 15,729,861
Momentum Contracts................................................ 663,082 640,809
Momentum Plus Contracts 135 BP.................................... 574,827 611,656
Momentum Plus Contracts 100 BP.................................... 36,380 124,790
Momentum Plus Contracts 90 BP..................................... 9,299 --
EQUI-VEST Series 300 and 400 Contracts............................ 2,341,814 2,252,325
Redeemed -- EQUI-VEST Contracts............................................... 12,221,170 13,605,973
Momentum Contracts................................................ 506,394 329,415
Momentum Plus Contracts 135 BP.................................... 369,618 259,855
Momentum Plus Contracts 100 BP.................................... 107,896 15,823
Momentum Plus Contracts 90 BP..................................... 2,386 --
EQUI-VEST Series 300 and 400 Contracts............................ 1,583,469 1,094,154
WARBURG PINCUS SMALL COMPANY VALUE FUND
- ---------------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 944,293 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 367,754 --
ALLIANCE SMALL CAP GROWTH FUND
- ------------------------------
Issued -- Momentum Contracts................................................ 6,275 --
Momentum Plus Contracts 135 BP.................................... 8,595 --
Momentum Plus Contracts 90 BP..................................... 466 --
EQUI-VEST Series 300 and 400 Contracts............................ 1,187,782 --
Redeemed -- Momentum Contracts................................................ 139 --
Momentum Plus Contracts 135 BP.................................... 743 --
EQUI-VEST Series 300 and 400 Contracts............................ 700,040 --
</TABLE>
FSA-23
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. Contributions, Payments, Transfers and Charges (Continued):
<TABLE>
<CAPTION>
Years Ended
December 31,
----------------------------------------
1997 1996
-------------- -------------
<S> <C> <C>
MFS EMERGING GROWTH COMPANIES FUND
- ----------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 424,497 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 168,426 --
ALLIANCE CONSERVATIVE INVESTORS FUND
- ------------------------------------
Issued -- Momentum Contracts................................................ 8,745 10,705
Momentum Plus Contracts 135 BP.................................... 45,283 55,120
Momentum Plus Contracts 100 BP.................................... 1,777 5,947
EQUI-VEST Series 300 and 400 Contracts............................ 114,868 200,840
Redeemed -- Momentum Contracts................................................ 4,397 3,249
Momentum Plus Contracts 135 BP.................................... 52,105 47,599
Momentum Plus Contracts 100 BP.................................... 1,102 1,318
EQUI-VEST Series 300 and 400 Contracts............................ 128,454 125,486
EQ/PUTNAM BALANCED FUND
- -----------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 175,775 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 66,296 --
ALLIANCE GROWTH INVESTORS FUND
- ------------------------------
Issued -- Momentum Contracts................................................ 70,069 69,706
Momentum Plus Contracts 135 BP.................................... 206,206 277,255
Momentum Plus Contracts 100 BP.................................... 3,369 15,724
Momentum Plus Contracts 90 BP..................................... 2,935 --
EQUI-VEST Series 300 and 400 Contracts............................ 1,019,421 1,654,096
Redeemed -- Momentum Contracts................................................ 33,111 16,841
Momentum Plus Contracts 135 BP.................................... 138,201 143,744
Momentum Plus Contracts 100 BP.................................... 3,482 1,072
Momentum Plus Contracts 90 BP..................................... 1,446 --
EQUI-VEST Series 300 and 400 Contracts............................ 640,400 441,519
</TABLE>
FSA-24
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
4. Contributions, Payments, Transfers and Charges (Concluded):
<TABLE>
<CAPTION>
Years Ended
December 31,
----------------------------------------
1997 1996
-------------- -------------
<S> <C> <C>
ALLIANCE BALANCED FUND
- ----------------------
Issued -- EQUI-VEST Contracts............................................... 3,643,409 4,328,191
Momentum Contracts................................................ 272,369 344,030
Momentum Plus Contracts 135 BP.................................... 168,722 200,165
Momentum Plus Contracts 100 BP.................................... 15,895 55,952
Momentum Plus Contracts 90 BP..................................... 2,030 --
EQUI-VEST Series 300 and 400 Contracts............................ 263,741 274,681
Redeemed -- EQUI-VEST Contracts............................................... 5,926,775 6,220,763
Momentum Contracts................................................ 277,292 243,591
Momentum Plus Contracts 135 BP.................................... 131,565 118,387
Momentum Plus Contracts 100 BP.................................... 52,839 7,610
Momentum Plus Contracts 90 BP..................................... 1,298 --
EQUI-VEST Series 300 and 400 Contracts............................ 156,561 112,296
MERRILL LYNCH WORLD STRATEGY FUND
- ---------------------------------
Issued -- EQUI-VEST Series 300 and 400 Contracts............................ 98,231 --
Redeemed -- EQUI-VEST Series 300 and 400 Contracts............................ 45,952 --
</TABLE>
FSA-25
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
5. Net Assets
Net assets consist of: (i) net assets attributable to Contracts in the
accumulation period, which are represented by Contract accumulation units
outstanding multiplied by net unit values and (ii) actuarial reserves and
other liabilities attributable to Contracts in the payout period which are
not represented by accumulation units or unit values.
Listed below are components of net assets:
<TABLE>
<CAPTION>
FIXED INCOME SERIES EQUITY SERIES
----------------------------------------------------------------- ------------------------------
ALLIANCE EQ/PUTNAM
INTERMEDIATE T. ROWE GROWTH &
ALLIANCE GOVERNMENT ALLIANCE ALLIANCE HIGH PRICE INCOME
MONEY SECURITIES QUALITY BOND YIELD EQUITY VALUE
MARKET FUND FUND FUND FUND INCOME FUND FUND
------------- ------------- -------------- --------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period........ 28,630,592 -- -- -- -- --
Net assets attributable
to Old Contracts in
accumulation period........ 4,189,205 -- -- -- -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period........ -- 2,716,528 -- -- -- --
Net assets attributable
to Momentum
Contracts in
accumulation period........ 9,048,240 1,229,416 1,212,237 4,617,656 -- --
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period........ 37,749,123 8,815,249 4,783,603 18,859,053 -- --
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period........ -- 274,922 136,288 809,324 -- --
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period........ 1,412,220 -- -- -- -- --
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period........ 16,842,138 23,975,250 34,339,271 133,635,037 57,484,892 28,754,728
Actuarial reserves,
financial reserves, and
other contract
liabilities
attributable to
Contracts in payout........ -- 2,624 177,761 292,462 -- --
----------- ----------- ----------- ------------ ----------- -----------
$97,871,518 $37,013,989 $40,649,160 $158,213,532 $57,484,892 $28,754,728
=========== =========== =========== ============ =========== ===========
</TABLE>
FSA-26
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
5. Net Assets (Continued):
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED)
----------------------------------------------------------------------------------------------------
ALLIANCE ALLIANCE MERRILL
GROWTH & EQUITY LYNCH BASIC ALLIANCE ALLIANCE
INCOME INDEX VALUE COMMON STOCK MFS RESEARCH GLOBAL
FUND FUND EQUITY FUND FUND FUND FUND
-------------- -------------- ------------- ---------------- -------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period........ -- -- -- 4,410,526,160 -- --
Net assets attributable
to Old Contracts in
accumulation period........ -- -- -- 97,099,845 -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period........ -- -- -- 29,158,614 -- --
Net assets attributable
to Momentum
Contracts in
accumulation period........ 12,372,665 20,100,426 -- 149,357,161 -- 22,261,752
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period........ 32,871,014 49,512,169 -- 246,774,664 -- 71,745,486
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period........ 542,065 910,494 -- 6,002,465 -- 1,542,816
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period........ 160,600 494,802 -- 724,146 -- 293,574
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period........ 322,669,974 576,476,443 16,775,544 944,084,494 27,174,530 511,706,502
Actuarial reserves,
financial reserves and
other contract
liabilities
attributable to
Contracts in payout........ 1,267,949 1,392,561 -- 40,248,425 -- 961,501
------------ ------------ ----------- -------------- ----------- ------------
$369,884,267 $648,886,895 $16,775,544 $5,923,975,974 $27,174,530 $608,511,631
============ ============ =========== ============== =========== ============
</TABLE>
FSA-27
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
5. Net Assets (Continued):
<TABLE>
<CAPTION>
EQUITY SERIES (CONTINUED)
---------------------------------------------------------------------------------------------------
T. ROWE MORGAN WARBURG
PRICE STANLEY ALLIANCE PINCUS SMALL ALLIANCE
ALLIANCE INTERNATIONAL EMERGING AGGRESSIVE COMPANY SMALL
INTERNATIONAL STOCK MARKETS STOCK VALUE CAP
FUND FUND EQUITY FUND FUND FUND GROWTH FUND
-------------- ------------- ------------- ----------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period........ -- -- -- 2,543,630,247 -- --
Net assets attributable
to Old Contracts in --
accumulation period........ -- -- -- -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period........ -- -- -- -- -- --
Net assets attributable
to Momentum
Contracts in
accumulation period........ 3,478,117 -- -- 130,445,811 -- 770,364
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period........ 9,194,987 -- -- 209,848,220 -- 985,779
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period........ 349,606 -- -- 4,875,759 -- --
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period........ 82,473 -- -- 825,522 -- 58,653
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period........ 104,469,920 37,928,467 8,645,767 526,973,693 68,065,558 61,236,251
Actuarial reserves,
financial reserves and
other contract
liabilities
attributable to
Contracts in payout........ 514,186 -- -- 8,621,992 -- 12,185
------------ ----------- ---------- -------------- ----------- -----------
$118,089,289 $37,928,467 $8,645,767 $3,425,221,244 $68,065,558 $63,063,232
============ =========== ========== ============== =========== ===========
</TABLE>
FSA-28
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
5. Net Assets (Continued):
<TABLE>
<CAPTION>
EQUITY SERIES (CONCLUDED) ASSETS ALLOCATION SERIES
------------------------------ --------------------------------------------------------------------
MFS
EMERGING ALLIANCE MERRILL
GROWTH CONSERVATIVE ALLIANCE LYNCH WORLD
COMPANIES INVESTORS EQ/PUTNAM GROWTH ALLIANCE STRATEGY
FUND FUND BALANCED FUND INVESTORS FUND BALANCED FUND FUND
------------- ------------- -------------- --------------- ----------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Net assets attributable
to EQUI-VEST
Contracts in
accumulation period........ -- -- -- -- 1,006,566,451 --
Net assets attributable
to Old Contracts in
accumulation period........ -- -- -- -- -- --
Net assets attributable
to EQUIPLAN
Contracts in
accumulation period........ -- -- -- -- -- --
Net assets attributable
to Momentum
Contracts in
accumulation period........ -- 2,932,016 -- 22,609,452 40,673,022 --
Net assets attributable
to Momentum Plus
Contracts 135 BP in
accumulation period........ -- 16,048,869 -- 85,908,116 59,761,156 --
Net assets attributable
to Momentum Plus
Contracts 100 BP in
accumulation period........ -- 651,178 -- 1,842,069 1,353,282 --
Net assets attributable
to Momentum Plus
Contracts 90 BP in
accumulation period........ -- -- -- 188,657 89,772 --
Net assets attributable
to EQUI-VEST Series 300
& 400 Contracts in
accumulation period........ 31,071,351 72,446,188 12,421,024 569,316,879 88,622,534 5,425,299
Actuarial reserves,
financial reserves and
other contract
liabilities
attributable to
Contracts in payout........ -- 584,960 -- 1,845,305 889,800 --
----------- ----------- ----------- ------------ -------------- ----------
$31,071,351 $92,663,211 $12,421,024 $681,710,478 $1,197,956,017 $5,425,299
=========== =========== =========== ============ ============== ==========
</TABLE>
FSA-29
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values
Shown below is accumulation unit value information for units outstanding.
ALLIANCE MONEY MARKET FUND -- OLD CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $33.52 $32.00 $30.44 $29.43 $28.75 $27.92 $26.47 $24.59 $22.66 $21.23
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $35.12 $33.52 $32.00 $30.44 $29.43 $28.75 $27.92 $26.47 $24.59 $22.66
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units outstanding,
end of period (000's)........ 119 129 140 147 168 204 246 289 310 339
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
ALLIANCE MONEY MARKET FUND -- EQUI-VEST / MOMENTUM** CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $28.28 $27.22 $26.08 $25.41 $25.01 $24.48 $23.38 $21.89 $20.32 $19.18
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $29.41 $28.28 $27.22 $26.08 $25.41 $25.01 $24.48 $23.38 $21.89 $20.32
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST units
outstanding, end of period
(000's)..................... 973 1,013 1,021 1,000 1,065 1,201 1,325 1,307 1,045 656
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)............... 308 240 188 166 56
====== ====== ====== ====== ======
</TABLE>
ALLIANCE MONEY MARKET FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31, SEPTEMBER 9, 1993*
---------------------------------------
TO DECEMBER 31, 1993
1997 1996 1995 1994
------- ------- -------- ------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $111.75 $107.55 $103.10 $100.47 $100.00
======= ======= ======== ======= =======
Unit value, end of period........................ $116.21 $111.75 $107.55 $103.10 $100.47
======= ======= ======== ======= =======
Number of units outstanding, end of period (000's) 325 307 299 474 62
======= ======= ======== ======= =======
</TABLE>
ALLIANCE MONEY MARKET FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $105.65 $100.00
======= =======
Unit value, end of period........................ $110.26 $105.65
======= =======
Number of units outstanding, end of period (000's) 13 13
======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-30
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE MONEY MARKET FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
------- ------- ------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $111.21 $107.04 $102.61 $100.00
======= ======= ======= =======
Unit value, end of period........................ $115.66 $111.21 $107.04 $102.61
======= ======= ======= =======
Number of units outstanding, end of period (000's) 146 165 81 63
======= ======= ======= =======
</TABLE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND -- EQUIPLAN CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $51.34 $49.69 $44.04 $46.25 $42.04 $40.00 $35.17 $33.12 $28.89 $27.31
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $54.83 $51.34 $49.69 $44.04 $46.25 $42.04 $40.00 $35.17 $33.12 $28.89
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of units outstanding,
end of period (000's)........ 50 55 50 54 58 66 74 82 91 98
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
</TABLE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
------- ------- ------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $112.40 $109.80 $ 98.19 $100.00
======= ======= ======= =======
Unit value, end of period........................ $118.98 $112.40 $109.80 $ 98.19
======= ======= ======= =======
Number of units outstanding, end of period (000's) 10 10 7 1
======= ======= ======= =======
</TABLE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND --
MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
------- ------- -------- ------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $108.45 $105.94 $ 94.76 $100.44 $100.00
======= ======= ======== ======= =======
Unit value, end of period........................ $114.78 $108.45 $105.94 $ 94.76 $100.44
======= ======= ======== ======= =======
Number of units outstanding, end of period (000's) 77 81 88 64 1
======= ======= ======== ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-31
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND --
MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
-------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ----------------------
<S> <C> <C>
Unit value, beginning of period.................. $105.75 $100.00
======= =======
Unit value, end of period........................ $112.32 $105.75
======= =======
Number of units outstanding, end of period (000's) 2 2
======= =======
</TABLE>
ALLIANCE INTERMEDIATE GOVERNMENT SECURITIES FUND --
EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- ----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $112.40 $109.80 $ 98.19 $100.00
======= ======= ======= =======
Unit value, end of period........................ $118.98 $112.40 $109.80 $ 98.19
======= ======= ======= =======
Number of units outstanding, end of period (000's) 202 146 89 32
======= ======= ======= =======
</TABLE>
ALLIANCE QUALITY BOND FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- ----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $112.65 $108.38 $ 93.87 $100.00
======= ======= ======= =======
Unit value, end of period........................ $121.30 $112.65 $108.38 $ 93.87
======= ======= ======= =======
Number of units outstanding, end of period (000's) 10 7 4 1
======= ======= ======= =======
</TABLE>
ALLIANCE QUALITY BOND FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $118.87 $114.38 $ 99.07 $100.00
======= ======= ======= =======
Unit value, end of period........................ $127.99 $118.87 $114.38 $ 99.07
======= ======= ======= =======
Number of units outstanding, end of period (000's) 37 28 17 3
======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-32
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE QUALITY BOND FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $108.84 $100.00
======= =======
Unit value, end of period........................ $117.60 $108.84
======= =======
Number of units outstanding, end of period (000's) 1 1
======= =======
</TABLE>
ALLIANCE QUALITY BOND FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $112.65 $108.38 $ 93.87 $100.00
======= ======= ======= =======
Unit value, end of period........................ $121.30 $112.65 $108.38 $ 93.87
======= ======= ======= =======
Number of units outstanding, end of period (000's) 283 196 135 53
======= ======= ======= =======
</TABLE>
ALLIANCE HIGH YIELD FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994* TO
1997 1996 1995 DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $137.53 $113.44 $ 95.88 $100.00
======= ======= ======= =======
Unit value, end of period........................ $160.74 $137.53 $113.44 $ 95.88
======= ======= ======= =======
Number of units outstanding, end of period (000's) 29 18 7 1
======= ======= ======= =======
</TABLE>
ALLIANCE HIGH YIELD FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $146.80 $121.10 $102.37 $106.74 $100.00
======= ======= ======= ======= =======
Unit value, end of period........................ $171.56 $146.80 $121.10 $102.37 $106.74
======= ======= ======= ======= =======
Number of units outstanding, end of period (000's) 110 94 70 38 1
======= ======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-33
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE HIGH YIELD FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996
1997 TO DECEMBER 31, 1996*
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $127.46 $100.00
======= =======
Unit value, end of period........................ $149.49 $127.46
======= =======
Number of units outstanding, end of period (000's) 5 5
======= =======
</TABLE>
ALLIANCE HIGH YIELD FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $137.53 $113.44 $ 95.88 $100.00
======= ======= ======= =======
Unit value, end of period........................ $160.74 $137.53 $113.44 $ 95.88
======= ======= ======= =======
Number of units outstanding, end of period (000's) 831 444 209 99
======= ======= ======= =======
</TABLE>
T. ROWE PRICE EQUITY INCOME FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $121.04
=======
Number of units outstanding, end of period (000's) 475
=======
EQ/PUTNAM GROWTH & INCOME VALUE FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $115.17
=======
Number of units outstanding, end of period (000's) 250
=======
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-34
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $143.37 $121.02 $ 98.86 $100.00
======= ======= ======= =======
Unit value, end of period........................ $179.30 $143.37 $121.02 $ 98.86
======= ======= ======= =======
Number of units outstanding, end of period (000's) 69 41 17 4
======= ======= ======= =======
</TABLE>
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $143.63 $121.25 $ 99.06 $100.00
======= ======= ======= =======
Unit value, end of period........................ $179.60 $143.63 $121.25 $ 99.06
======= ======= ======= =======
Number of units outstanding, end of period (000's) 183 121 67 9
======= ======= ======= =======
</TABLE>
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $123.61 $100.00
======= =======
Unit value, end of period........................ $155.11 $123.61
======= =======
Number of units outstanding, end of period (000's) 3 3
======= =======
</TABLE>
ALLIANCE GROWTH & INCOME FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $115.81
=======
Unit value, end of period........................ $145.48
=======
Number of units outstanding, end of period (000's) 1
=======
ALLIANCE GROWTH & INCOME FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $143.37 $121.02 $ 98.86 $100.00
======= ======= ======= =======
Unit value, end of period........................ $179.30 $143.37 $121.02 $ 98.86
======= ======= ======= =======
Number of units outstanding, end of period (000's) 1,800 975 498 210
======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-35
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE EQUITY INDEX FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $164.12 $135.94 $100.95 $100.00
======= ======= ======= =======
Unit value, end of period........................ $214.66 $164.12 $135.94 $100.95
======= ======= ======= =======
Number of units outstanding, end of period (000's) 94 51 12 1
======= ======= ======= =======
</TABLE>
ALLIANCE EQUITY INDEX FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $164.08 $135.92 $100.94 $100.00
======= ======= ======= =======
Unit value, end of period........................ $214.58 $164.08 $135.92 $100.94
======= ======= ======= =======
Number of units outstanding, end of period (000's) 231 128 44 3
======= ======= ======= =======
</TABLE>
ALLIANCE EQUITY INDEX FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $139.70 $100.00
======= =======
Unit value, end of period........................ $170.23 $139.70
======= =======
Number of units outstanding, end of period (000's) 5 4
======= =======
</TABLE>
ALLIANCE EQUITY INDEX FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $114.21
=======
Unit value, end of period........................ $150.05
=======
Number of units outstanding, end of period (000's) 3
=======
ALLIANCE EQUITY INDEX FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $164.12 $135.94 $100.95 $100.00
======= ======= ======= =======
Unit value, end of period........................ $214.66 $164.12 $135.94 $100.95
======= ======= ======= =======
Number of units outstanding, end of period (000's) 2,686 1,486 592 47
======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-36
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
MERRILL LYNCH BASIC VALUE EQUITY FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $115.97
=======
Number of units outstanding, end of period (000's) 145
=======
ALLIANCE COMMON STOCK FUND -- OLD CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
-------- -------- --------- -------- -------- -------- --------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $246.57 $199.66 $151.67 $155.96 $125.72 $122.56 $ 89.56 $97.97 $78.37 $63.99
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
Unit value, end of period....... $316.64 $246.57 $199.66 $151.67 $155.96 $125.72 $122.56 $89.56 $97.97 $78.37
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
Number of units outstanding,
end of period (000's)........ 307 345 387 438 467 525 598 694 780 895
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
</TABLE>
ALLIANCE COMMON STOCK FUND -- EQUI-VEST/MOMENTUM** CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
-------- -------- --------- -------- -------- -------- --------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $199.05 $162.42 $124.32 $128.81 $104.63 $102.76 $ 75.67 $83.40 $67.22 $55.30
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
Unit value, end of period....... $253.68 $199.05 $162.42 $124.32 $128.81 $104.63 $102.76 $75.67 $83.40 $67.22
======= ======= ======= ======= ======= ======= ======= ====== ====== ======
Number of EQUI-VEST units
outstanding, end of
period (000's)............... 17,386 16,933 16,292 15,749 13,917 11,841 10,292 9,670 8,645 7,252
======= ======= ======= ======= ====== ======= ======= ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)............... 589 519 403 270 120
======= ======= ======= ====== ======
</TABLE>
ALLIANCE COMMON STOCK FUND -- EQUIPLAN CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
-------- -------- --------- -------- -------- -------- --------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $267.08 $216.27 $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05 $ 84.83 $69.26
======= ======= ======= ======= ======= ======= ======= ======= ======= ======
Unit value, end of period....... $342.99 $267.08 $216.27 $164.29 $168.93 $136.10 $132.67 $ 96.95 $106.05 $84.83
======= ======= ======= ======= ======= ======= ======= ======= ======= ======
Number of units outstanding,
end of period (000's)........ 85 96 108 119 124 135 144 157 177 196
======= ======= ======= ======= ======= ======= ======= ======= ======= ======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-37
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE COMMON STOCK FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $162.39 $132.47 $101.38 $105.01 $100.00
======= ======= ======= ======= =======
Unit value, end of period........................ $207.00 $162.39 $132.47 $101.38 $105.01
======= ======= ======= ======= =======
Number of units outstanding, end of period (000's) 1,192 1,039 706 330 12
======= ======= ======= ======= =======
</TABLE>
ALLIANCE COMMON STOCK FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $125.89 $100.00
======= =======
Unit value, end of period........................ $161.04 $125.89
======= =======
Number of units outstanding, end of period (000's) 37 140
======= =======
</TABLE>
ALLIANCE COMMON STOCK FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $115.92
=======
Unit value, end of period........................ $148.44
=======
Number of units outstanding, end of period (000's) 5
=======
ALLIANCE COMMON STOCK FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $155.42 $126.78 $ 97.03 $100.00
======= ======= ======= =======
Unit value, end of period........................ $198.12 $155.42 $126.78 $ 97.03
======= ======= ======= =======
Number of units outstanding, end of period (000's) 4,765 3,457 1,989 948
======= ======= ======= =======
</TABLE>
MFS RESEARCH FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $115.01
=======
Number of units outstanding, end of period (000's) 236
=======
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-38
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE GLOBAL FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $138.00 $122.06 $104.12 $100.00
======= ======= ======= =======
Unit value, end of period........................ $151.87 $138.00 $122.06 $104.12
======= ======= ======= =======
Number of units outstanding, end of period (000's) 147 116 62 16
======= ======= ======= =======
</TABLE>
ALLIANCE GLOBAL FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $140.51 $124.30 $106.04 $102.14 $100.00
======= ======= ======= ======= =======
Unit value, end of period........................ $154.12 $140.51 $124.30 $106.04 $102.14
======= ======= ======= ======= =======
Number of units outstanding, end of period (000's) 464 459 391 223 8
======= ======= ======= ======= =======
</TABLE>
ALLIANCE GLOBAL FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $116.37 $100.00
======= =======
Unit value, end of period........................ $128.51 $116.37
======= =======
Number of units outstanding, end of period (000's) 12 13
======= =======
</TABLE>
ALLIANCE GLOBAL FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $110.47
=======
Unit value, end of period........................ $122.12
=======
Number of units outstanding, end of period (000's) 2
=======
ALLIANCE GLOBAL FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $138.00 $122.06 $104.12 $100.00
======= ======= ======= =======
Unit value, end of period........................ $151.87 $138.00 $122.06 $104.12
======= ======= ======= =======
Number of units outstanding, end of period (000's) 3,369 2,995 2,121 1,305
======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-39
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE INTERNATIONAL FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, SEPTEMBER 1, 1994*
1997 1996 TO DECEMBER 31, 1995
-------- -------- -----------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $112.82 $104.15 $100.00
======= ======= =======
Unit value, end of period........................ $107.92 $112.82 $104.15
======= ======= =======
Number of units outstanding, end of period (000's) 32 19 0
======= ======= =======
</TABLE>
ALLIANCE INTERNATIONAL FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, SEPTEMBER 1, 1994* TO
1997 1996 DECEMBER 31, 1995
-------- -------- -----------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $112.81 $104.15 $100.00
======= ======= =======
Unit value, end of period........................ $107.89 $112.81 $104.15
======= ======= =======
Number of units outstanding, end of period (000's) 85 54 3
======= ======= =======
</TABLE>
ALLIANCE INTERNATIONAL FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $112.96 $100.00
======= =======
Unit value, end of period........................ $108.42 $112.96
======= =======
Number of units outstanding, end of period (000's) 3 21
======= =======
</TABLE>
ALLIANCE INTERNATIONAL FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $108.98
=======
Unit value, end of period........................ $104.70
=======
Number of units outstanding, end of period (000's) 788
=======
ALLIANCE INTERNATIONAL FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31, SEPTEMBER 1, 1994*
1997 1996 TO DECEMBER 31, 1995
-------- -------- -----------------------
<S> <C> <C> <C>
Unit value, beginning of period.................. $112.83 $104.15 $100.00
======= ======= =======
Unit value, end of period........................ $107.92 $112.83 $104.15
======= ======= =======
Number of units outstanding, end of period (000's) 968 763 141
======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-40
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
T. ROWE PRICE INTERNATIONAL STOCK FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $ 97.61
=======
Number of units outstanding, end of period (000's) 387
=======
MORGAN STANLEY EMERGING MARKETS EQUITY FUND -- EQUI-VEST CONTRACTS
August 20, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $ 79.41
=======
Number of units outstanding, end of period (000's) 109
=======
ALLIANCE AGGRESSIVE STOCK FUND -- EQUI-VEST / MOMENTUM** CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $82.91 $68.73 $52.88 $55.68 $48.30 $50.51 $27.36 $25.86 $18.09 $18.15
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $90.75 $82.91 $68.73 $52.88 $55.68 $48.30 $50.51 $27.36 $25.86 $18.09
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST units
outstanding, end of
period (000's)............... 28,030 27,945 25,821 24,787 21,496 17,986 12,962 9,545 8,134 8,972
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)............... 1,437 1,281 969 620 258
====== ====== ====== ====== ======
</TABLE>
ALLIANCE AGGRESSIVE STOCK FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $157.31 $130.50 $100.49 $105.90 $100.00
======= ======= ======= ======= =======
Unit value, end of period........................ $171.96 $157.31 $130.50 $100.49 $105.90
======= ======= ======= ======= =======
Number of units outstanding, end of period (000's) 1,220 1,070 718 350 12
======= ======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-41
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE AGGRESSIVE STOCK FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
-------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $125.54 $100.00
======= =======
Unit value, end of period........................ $137.72 $125.54
======= =======
Number of units outstanding, end of period (000's) 35 109
======= =======
</TABLE>
ALLIANCE AGGRESSIVE STOCK FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $108.74
=======
Unit value, end of period........................ $119.41
=======
Number of units outstanding, end of period (000's) 7
=======
ALLIANCE AGGRESSIVE STOCK FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $149.41 $123.95 $ 95.45 $100.00
======= ======= ======== =======
Unit value, end of period........................ $163.33 $149.41 $123.95 $ 95.45
======= ======= ======== =======
Number of units outstanding, end of period (000's) 3,226 2,468 1,310 664
======= ======= ======== =======
</TABLE>
WARBURG PINCUS SMALL COMPANY VALUE FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $118.06
=======
Number of units outstanding, end of period (000's) 577
=======
ALLIANCE SMALL CAP GROWTH FUND -- MOMENTUM CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $125.55
=======
Number of units outstanding, end of period (000's) 6
=======
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-42
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE SMALL CAP GROWTH FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $125.54
=======
Number of units outstanding, end of period (000's) 8
=======
ALLIANCE SMALL CAP GROWTH FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $125.55
=======
Number of units outstanding, end of period (000's) 488
=======
MFS EMERGING GROWTH COMPANIES FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $121.34
=======
Number of units outstanding, end of period (000's) 256
=======
ALLIANCE CONSERVATIVE INVESTORS FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $117.25 $112.97 $ 95.10 $100.00
======= ======= ======= =======
Unit value, end of period........................ $130.98 $117.25 $112.97 $ 95.10
======= ======= ======= =======
Number of units outstanding, end of period (000's) 22 18 11 3
======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-43
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE CONSERVATIVE INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $114.99 $110.81 $ 93.29 $98.60 $100.00
======= ======= ======= ====== =======
Unit value, end of period........................ $128.45 $114.99 $110.81 $93.29 $ 98.60
======= ======= ======= ====== =======
Number of units outstanding, end of period (000's) 125 136 129 92 10
======= ======= ======= ====== =======
</TABLE>
ALLIANCE CONSERVATIVE INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $109.47 $100.00
======= =======
Unit value, end of period........................ $122.71 $109.47
======= =======
Number of units outstanding, end of period (000's) 5 5
======= =======
</TABLE>
ALLIANCE CONSERVATIVE INVESTORS FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------
1997 1996 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $117.25 $112.97 $ 95.10 $100.00
======= ======= ======= =======
Unit value, end of period........................ $130.98 $117.25 $112.97 $ 95.10
======= ======= ======= =======
Number of units outstanding, end of period (000's) 553 567 491 325
======= ======= ======= =======
</TABLE>
EQ/PUTNAM BALANCED FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $113.46
=======
Number of units outstanding, end of period (000's) 109
=======
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JUNE 1, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $133.40 $120.08 $ 96.31 $100.00
======= ======= ======= =======
Unit value, end of period........................ $153.69 $133.40 $120.08 $ 96.31
======= ======= ======= =======
Number of units outstanding, end of period (000's) 147 110 57 10
======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-44
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $134.95 $121.49 $ 97.45 $101.99 $100.00
======= ======= ======= ======= =======
Unit value, end of period........................ 155.46 $134.95 $121.49 $ 97.45 $101.99
======= ======= ======= ======= =======
Number of units outstanding, end of period (000's) 553 508 375 188 13
======= ======= ======= ======= =======
</TABLE>
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $116.95 $100.00
======= =======
Unit value, end of period........................ $135.20 $116.95
======= =======
Number of units outstanding, end of period (000's) 14 15
======= =======
</TABLE>
ALLIANCE GROWTH INVESTORS FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $109.51
=======
Unit value, end of period........................ $126.72
=======
Number of units outstanding, end of period (000's) 1
=======
ALLIANCE GROWTH INVESTORS FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $133.40 $120.08 $ 96.31 $100.00
======= ======= ======= =======
Unit value, end of period........................ $153.69 $133.40 $120.08 $ 96.31
======= ======= ======= =======
Number of units outstanding, end of period (000's) 3,704 3,325 2,113 1,023
======= ======= ======= =======
</TABLE>
- -------------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-45
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
6. Accumulation Unit Values (Continued):
ALLIANCE BALANCED FUND -- EQUI-VEST / MOMENTUM** CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
------- ------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unit value, beginning of period. $34.06 $30.92 $26.18 $28.85 $26.04 $27.17 $19.40 $19.69 $15.80 $13.95
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Unit value, end of period....... $38.66 $34.06 $30.92 $26.18 $28.85 $26.04 $27.17 $19.40 $19.69 $15.80
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of EQUI-VEST units
outstanding, end of
period (000's)............... 26,036 28,319 30,212 32,664 31,259 25,975 21,100 19,423 16,810 15,335
====== ====== ====== ====== ====== ====== ====== ====== ====== ======
Number of Momentum units
outstanding, end of
period (000's)............... 1,052 1,057 957 776 348
====== ====== ====== ====== ======
</TABLE>
ALLIANCE BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 135 B.P.
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
--------------------------------------- SEPTEMBER 9, 1993*
1997 1996 1995 1994 TO DECEMBER 31, 1993
-------- -------- --------- -------- -----------------------
<S> <C> <C> <C> <C> <C>
Unit value, beginning of period.................. $120.01 $108.95 $ 92.22 $101.63 $100.00
======= ======= ======== ======= =======
Unit value, end of period........................ $136.14 $120.01 $108.95 $ 92.22 $101.63
======= ======= ======== ======= =======
Number of units outstanding, end of period (000's) 439 417 336 188 9
======= ======= ======== ======= =======
</TABLE>
ALLIANCE BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 100 B.P.
<TABLE>
<CAPTION>
YEAR ENDED
DECEMBER 31,
---------------- SEPTEMBER 1, 1996*
1997 TO DECEMBER 31, 1996
-------- ------------------------
<S> <C> <C>
Unit value, beginning of period.................. $114.16 $100.00
======= =======
Unit value, end of period........................ $129.97 $114.16
======= =======
Number of units outstanding, end of period (000's) 10 48
======= =======
</TABLE>
ALLIANCE BALANCED FUND -- MOMENTUM PLUS CONTRACTS: 90 B.P.
YEAR ENDED
DECEMBER 31,
----------------
1997
--------
Unit value, beginning of period.................. $100.00
=======
Unit value, end of period........................ $122.68
=======
Number of units outstanding, end of period (000's) 1
=======
- -----------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-46
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 1997
6. Accumulation Unit Values (CONCLUDED):
ALLIANCE BALANCED FUND -- EQUI-VEST SERIES 300 AND 400 CONTRACTS
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
----------------------------- JANUARY 3, 1994*
1997 1996 1995 TO DECEMBER 31, 1994
-------- -------- --------- -----------------------
<S> <C> <C> <C> <C>
Unit value, beginning of period.................. $119.26 $108.26 $ 91.64 $100.00
======= ======= ======== =======
Unit value, end of period........................ $135.29 $119.26 $ 108.26 $ 91.64
======= ======= ======== =======
Number of units outstanding, end of period (000's) 655 548 386 289
======= ======= ======== =======
</TABLE>
MERRILL LYNCH WORLD STRATEGY FUND -- EQUI-VEST CONTRACTS
MAY 1, 1997* TO
DECEMBER 31, 1997
-----------------------
Unit value, beginning of period.................. $100.00
========
Unit value, end of period........................ $103.77
========
Number of units outstanding, end of period (000's) 52
========
- -----------------
*Date on which units were made available for sale.
**The Momentum Contracts were first introduced for sale on February 15, 1993.
FSA-47
<PAGE>
February 10, 1998
Report of Independent Accountants
To the Board of Directors and Shareholders of
The Equitable Life Assurance Society of the United States
In our opinion, the accompanying consolidated balance sheets and the related
consolidated statements of earnings, of shareholder's equity and of cash flows
present fairly, in all material respects, the financial position of The
Equitable Life Assurance Society of the United States and its subsidiaries
("Equitable Life") at December 31, 1997 and 1996, and the results of their
operations and their cash flows for each of the three years in the period ended
December 31, 1997, in conformity with generally accepted accounting principles.
These financial statements are the responsibility of Equitable Life's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these statements in
accordance with generally accepted auditing standards which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed
above.
As discussed in Note 2 to the consolidated financial statements, Equitable Life
changed its methods of accounting for long-duration participating life insurance
contracts and long-lived assets in 1996 and for loan impairments in 1995.
/s/ Price Waterhouse, LLP
- ---------------------------
Price Waterhouse LLP
New York, New York
February 10, 1998
F-1
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
1997 1996
----------------- -----------------
(In Millions)
<S> <C> <C>
ASSETS
Investments:
Fixed maturities:
Available for sale, at estimated fair value............................. $ 19,630.9 $ 18,077.0
Mortgage loans on real estate............................................. 2,611.4 3,133.0
Equity real estate........................................................ 2,749.2 3,297.5
Policy loans.............................................................. 2,422.9 2,196.1
Other equity investments.................................................. 951.5 860.6
Investment in and loans to affiliates..................................... 731.1 685.0
Other invested assets..................................................... 624.7 25.4
----------------- -----------------
Total investments..................................................... 29,721.7 28,274.6
Cash and cash equivalents................................................... 300.5 538.8
Deferred policy acquisition costs........................................... 3,236.6 3,104.9
Amounts due from discontinued operations.................................... 572.8 996.2
Other assets................................................................ 2,685.2 2,552.2
Closed Block assets......................................................... 8,566.6 8,495.0
Separate Accounts assets.................................................... 36,538.7 29,646.1
----------------- -----------------
Total Assets................................................................ $ 81,622.1 $ 73,607.8
================= =================
LIABILITIES
Policyholders' account balances............................................. $ 21,579.5 $ 21,865.6
Future policy benefits and other policyholder's liabilities................. 4,553.8 4,416.6
Short-term and long-term debt............................................... 1,991.2 1,766.9
Other liabilities........................................................... 3,257.1 2,785.1
Closed Block liabilities.................................................... 9,073.7 9,091.3
Separate Accounts liabilities............................................... 36,306.3 29,598.3
----------------- -----------------
Total liabilities..................................................... 76,761.6 69,523.8
----------------- -----------------
Commitments and contingencies (Notes 10, 12, 13, 14 and 15)
SHAREHOLDER'S EQUITY
Common stock, $1.25 par value 2.0 million shares authorized, issued
and outstanding........................................................... 2.5 2.5
Capital in excess of par value.............................................. 3,105.8 3,105.8
Retained earnings........................................................... 1,235.9 798.7
Net unrealized investment gains............................................. 533.6 189.9
Minimum pension liability................................................... (17.3) (12.9)
----------------- -----------------
Total shareholder's equity............................................ 4,860.5 4,084.0
----------------- -----------------
Total Liabilities and Shareholder's Equity.................................. $ 81,622.1 $ 73,607.8
================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF EARNINGS
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ----------------- -----------------
(In Millions)
<S> <C> <C> <C>
REVENUES
Universal life and investment-type product policy fee
income...................................................... $ 950.6 $ 874.0 $ 788.2
Premiums...................................................... 601.5 597.6 606.8
Net investment income......................................... 2,282.8 2,203.6 2,088.2
Investment (losses) gains, net................................ (45.2) (9.8) 5.3
Commissions, fees and other income............................ 1,227.2 1,081.8 897.1
Contribution from the Closed Block............................ 102.5 125.0 143.2
----------------- ----------------- -----------------
Total revenues.......................................... 5,119.4 4,872.2 4,528.8
----------------- ----------------- -----------------
BENEFITS AND OTHER DEDUCTIONS
Interest credited to policyholders' account balances.......... 1,266.2 1,270.2 1,248.3
Policyholders' benefits....................................... 978.6 1,317.7 1,008.6
Other operating costs and expenses............................ 2,203.9 2,075.7 1,775.8
----------------- ----------------- -----------------
Total benefits and other deductions..................... 4,448.7 4,663.6 4,032.7
----------------- ----------------- -----------------
Earnings from continuing operations before Federal
income taxes, minority interest and cumulative
effect of accounting change................................. 670.7 208.6 496.1
Federal income taxes.......................................... 91.5 9.7 120.5
Minority interest in net income of consolidated subsidiaries.. 54.8 81.7 62.8
----------------- ----------------- -----------------
Earnings from continuing operations before cumulative
effect of accounting change................................. 524.4 117.2 312.8
Discontinued operations, net of Federal income taxes.......... (87.2) (83.8) -
Cumulative effect of accounting change, net of Federal
income taxes................................................ - (23.1) -
----------------- ----------------- -----------------
Net Earnings.................................................. $ 437.2 $ 10.3 $ 312.8
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ----------------- -----------------
(In Millions)
<S> <C> <C> <C>
Common stock, at par value, beginning and end of year......... $ 2.5 $ 2.5 $ 2.5
----------------- ----------------- -----------------
Capital in excess of par value, beginning and end of year..... 3,105.8 3,105.8 3,105.8
----------------- ----------------- -----------------
Retained earnings, beginning of year.......................... 798.7 788.4 475.6
Net earnings.................................................. 437.2 10.3 312.8
----------------- ----------------- -----------------
Retained earnings, end of year................................ 1,235.9 798.7 788.4
----------------- ----------------- -----------------
Net unrealized investment gains (losses), beginning of year... 189.9 396.5 (220.5)
Change in unrealized investment gains (losses)................ 343.7 (206.6) 617.0
----------------- ----------------- -----------------
Net unrealized investment gains, end of year.................. 533.6 189.9 396.5
----------------- ----------------- -----------------
Minimum pension liability, beginning of year.................. (12.9) (35.1) (2.7)
Change in minimum pension liability........................... (4.4) 22.2 (32.4)
-----------------
----------------- -----------------
Minimum pension liability, end of year........................ (17.3) (12.9) (35.1)
----------------- ----------------- -----------------
Total Shareholder's Equity, End of Year....................... $ 4,860.5 $ 4,084.0 $ 4,258.1
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ----------------- -----------------
(In Millions)
<S> <C> <C> <C>
Net earnings.................................................. $ 437.2 $ 10.3 $ 312.8
Adjustments to reconcile net earnings to net cash provided by operating
activities:
Interest credited to policyholders' account balances........ 1,266.2 1,270.2 1,248.3
Universal life and investment-type product
policy fee income......................................... (950.6) (874.0) (788.2)
Investment losses (gains)................................... 45.2 9.8 (5.3)
Change in Federal income tax payable........................ (74.4) (197.1) 221.6
Other, net.................................................. 169.4 330.2 80.5
----------------- ----------------- -----------------
Net cash provided by operating activities..................... 893.0 549.4 1,069.7
----------------- ----------------- -----------------
Cash flows from investing activities:
Maturities and repayments................................... 2,702.9 2,275.1 1,897.4
Sales....................................................... 10,385.9 8,964.3 8,867.1
Purchases................................................... (13,205.4) (12,559.6) (11,675.5)
(Increase) decrease in short-term investments............... (555.0) 450.3 (99.3)
Decrease in loans to discontinued operations................ 420.1 1,017.0 1,226.9
Sale of subsidiaries........................................ 261.0 - -
Other, net.................................................. (612.6) (281.0) (413.4)
----------------- ----------------- -----------------
Net cash used by investing activities......................... (603.1) (133.9) (196.8)
----------------- ----------------- -----------------
Cash flows from financing activities: Policyholders' account balances:
Deposits.................................................. 1,281.7 1,925.4 2,586.5
Withdrawals............................................... (1,886.8) (2,385.2) (2,657.1)
Net increase (decrease) in short-term financings............ 419.9 (.3) (16.4)
Additions to long-term debt................................. 32.0 - 599.7
Repayments of long-term debt................................ (196.4) (124.8) (40.7)
Payment of obligation to fund accumulated deficit of
discontinued operations................................... (83.9) - (1,215.4)
Other, net.................................................. (94.7) (66.5) (48.4)
----------------- ----------------- -----------------
Net cash used by financing activities......................... (528.2) (651.4) (791.8)
----------------- ----------------- -----------------
Change in cash and cash equivalents........................... (238.3) (235.9) 81.1
Cash and cash equivalents, beginning of year.................. 538.8 774.7 693.6
----------------- ----------------- -----------------
Cash and Cash Equivalents, End of Year........................ $ 300.5 $ 538.8 $ 774.7
================= ================= =================
Supplemental cash flow information
Interest Paid............................................... $ 217.1 $ 109.9 $ 89.6
================= ================= =================
Income Taxes Paid (Refunded)................................ $ 170.0 $ (10.0) $ (82.7)
================= ================= =================
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1) ORGANIZATION
The Equitable Life Assurance Society of the United States ("Equitable
Life") is a wholly owned subsidiary of The Equitable Companies
Incorporated (the "Holding Company"). Equitable Life's insurance
business is conducted principally by Equitable Life and, prior to
December 31, 1996, its wholly owned life insurance subsidiary, Equitable
Variable Life Insurance Company ("EVLICO"). Effective January 1, 1997,
EVLICO was merged into Equitable Life, which continues to conduct the
Company's insurance business. Equitable Life's investment management
business, which comprises the Investment Services segment, is conducted
principally by Alliance Capital Management L.P. ("Alliance") and
Donaldson, Lufkin & Jenrette, Inc. ("DLJ"), an investment banking and
brokerage affiliate. AXA-UAP ("AXA"), a French holding company for an
international group of insurance and related financial services
companies, is the Holding Company's largest shareholder, owning
approximately 58.7% at December 31, 1997 (54.3% if all securities
convertible into, and options on, common stock were to be converted or
exercised).
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements are prepared in
conformity with generally accepted accounting principles ("GAAP") which
require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
The accompanying consolidated financial statements include the accounts
of Equitable Life and its wholly owned life insurance subsidiary
(collectively, the "Insurance Group"); non-insurance subsidiaries,
principally Alliance, an investment advisory subsidiary, and, through
June 10, 1997, Equitable Real Estate Investment Management, Inc.
("EREIM"), a real estate investment management subsidiary which was sold
(see Note 5); and those partnerships and joint ventures in which
Equitable Life or its subsidiaries has control and a majority economic
interest (collectively, including its consolidated subsidiaries, the
"Company"). The Company's investment in DLJ is reported on the equity
basis of accounting. Closed Block assets and liabilities and results of
operations are presented in the consolidated financial statements as
single line items (see Note 6). Unless specifically stated, all
disclosures contained herein supporting the consolidated financial
statements exclude the Closed Block related amounts.
All significant intercompany transactions and balances have been
eliminated in consolidation other than intercompany transactions and
balances with the Closed Block and the discontinued operations (see Note
7).
The years "1997," "1996" and "1995" refer to the years ended December
31, 1997, 1996 and 1995, respectively.
Certain reclassifications have been made in the amounts presented for
prior periods to conform these periods with the 1997 presentation.
Closed Block
As of July 22, 1992, Equitable Life established the Closed Block for the
benefit of certain classes of individual participating policies for
which Equitable Life had a dividend scale payable in 1991 and which were
in force on that date. Assets were allocated to the Closed Block in an
amount which, together with anticipated revenues from policies included
in the Closed Block, was reasonably expected to be sufficient to support
such business, including provision for payment of claims, certain
expenses and taxes, and for continuation of dividend scales payable in
1991, assuming the experience underlying such scales continues.
F-6
<PAGE>
Assets allocated to the Closed Block inure solely to the benefit of the
holders of policies included in the Closed Block and will not revert to
the benefit of the Holding Company. No reallocation, transfer, borrowing
or lending of assets can be made between the Closed Block and other
portions of Equitable Life's General Account, any of its Separate
Accounts or any affiliate of Equitable Life without the approval of the
New York Superintendent of Insurance (the "Superintendent"). Closed
Block assets and liabilities are carried on the same basis as similar
assets and liabilities held in the General Account. The excess of Closed
Block liabilities over Closed Block assets represents the expected
future post-tax contribution from the Closed Block which would be
recognized in income over the period the policies and contracts in the
Closed Block remain in force.
Discontinued Operations
Discontinued operations consist of the business of the former Guaranteed
Interest Contract ("GIC") segment which includes the Group
Non-Participating Wind-Up Annuities ("Wind-Up Annuities") and the GIC
lines of business. An allowance was established for the premium
deficiency reserve for Wind-Up Annuities and estimated future losses of
the GIC line of business. Management reviews the adequacy of the
allowance each quarter and, during the 1997 and 1996 fourth quarter
reviews, the allowance for future losses was increased. Management
believes the allowance for future losses at December 31, 1997 is
adequate to provide for all future losses; however, the determination of
the allowance continues to involve numerous estimates and subjective
judgments regarding the expected performance of Discontinued Operations
Investment Assets. There can be no assurance the losses provided for
will not differ from the losses ultimately realized. To the extent
actual results or future projections of the discontinued operations
differ from management's current best estimates and assumptions
underlying the allowance for future losses, the difference would be
reflected in the consolidated statements of earnings in discontinued
operations. In particular, to the extent income, sales proceeds and
holding periods for equity real estate differ from management's previous
assumptions, periodic adjustments to the allowance are likely to result
(see Note 7).
Accounting Changes
In 1996, the Company changed its method of accounting for long-duration
participating life insurance contracts, primarily within the Closed
Block, in accordance with the provisions prescribed by SFAS No. 120,
"Accounting and Reporting by Mutual Life Insurance Enterprises and by
Insurance Enterprises for Certain Long-Duration Participating
Contracts". (See "Deferred Policy Acquisition Costs," "Policyholders'
Account Balances and Future Policy Benefits" and Note 6.)
The Company implemented SFAS No. 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," as of
January 1, 1996. SFAS No. 121 requires long-lived assets and certain
identifiable intangibles be reviewed for impairment whenever events or
changes in circumstances indicate the carrying value of such assets may
not be recoverable. Effective with SFAS No. 121's adoption, impaired
real estate is written down to fair value with the impairment loss being
included in investment gains (losses), net. Before implementing SFAS No.
121, valuation allowances on real estate held for the production of
income were computed using the forecasted cash flows of the respective
properties discounted at a rate equal to The Equitable's cost of funds.
The adoption of the statement resulted in the release of valuation
allowances of $152.4 million and recognition of impairment losses of
$144.0 million on real estate held for production of income. Real estate
which management has committed to disposing of by sale or abandonment is
classified as real estate held for sale. Valuation allowances on real
estate held for sale continue to be computed using the lower of
depreciated cost or estimated fair value, net of disposition costs.
Implementation of the SFAS No. 121 impairment requirements relative to
other assets to be disposed of resulted in a charge for the cumulative
effect of an accounting change of $23.1 million, net of a Federal income
tax benefit of $12.4 million, due to the writedown to fair value of
building improvements relating to facilities vacated in 1996.
In the first quarter of 1995, the Company adopted SFAS No. 114,
"Accounting by Creditors for Impairment of a Loan". Impaired loans
within SFAS No. 114's scope are to be measured based on the present
value of expected future cash flows discounted at the loan's effective
interest rate, at the loan's observable market price or the fair value
of the collateral if the loan is collateral dependent. The adoption of
this statement did not have a material effect on the level of the
allowances for possible losses or on the Company's consolidated
statements of earnings and shareholder's equity.
F-7
<PAGE>
New Accounting Pronouncements
In January 1998, the Financial Accounting Standards Board ("FASB")
issued SFAS No. 132, "Employers' Disclosures about Pension and Other
Postretirement Benefits," which revises current note disclosure
requirements for employers' pension and other retiree benefits. SFAS No.
132 is effective for fiscal years beginning after December 15, 1997. The
Company will adopt the provisions of SFAS No. 132 in the 1998
consolidated financial statements.
In December 1997, the American Institute of Certified Public Accountants
("AICPA") issued Statement of Position ("SOP") 97-3, "Accounting by
Insurance and Other Enterprises for Insurance-Related Assessments". SOP
97-3 provides guidance for assessments related to insurance activities
and requirements for disclosure of certain information. SOP 97-3 is
effective for financial statements issued for periods beginning after
December 31, 1998. Restatement of previously issued financial statements
is not required. SOP 97-3 is not expected to have a material impact on
the Company's consolidated financial statements.
In June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments
of an Enterprise and Related Information". SFAS No. 131 establishes
standards for the way public business enterprises report information
about operating segments in annual and interim financial statements
issued to shareholders. It also establishes standards for related
disclosures about products and services, geographic areas and major
customers. Generally, financial information will be required to be
reported on the basis used by management for evaluating segment
performance and for deciding how to allocate resources to segments. This
statement is effective for fiscal years beginning after December 15,
1997 and need not be applied to interim reporting in the initial year of
adoption. Restatement of comparative information for earlier periods is
required. Management is currently reviewing its definition of business
segments in light of the requirements of SFAS No. 131.
In June 1997, the FASB issued SFAS No. 130, "Reporting Comprehensive
Income". SFAS No. 130 establishes standards for reporting and displaying
comprehensive income and its components in a full set of general purpose
financial statements. SFAS No. 130 requires an enterprise to classify
items of other comprehensive income by their nature in a financial
statement and display the accumulated balance of other comprehensive
income separately from retained earnings and additional paid-in capital
in the equity section of a statement of financial position. This
statement is effective for fiscal years beginning after December 15,
1997. Reclassification of financial statements for earlier periods
provided for comparative purposes is required. The Company will adopt
the provisions of SFAS No. 130 in its 1998 consolidated financial
statements.
In June 1996, the FASB issued SFAS No. 125, "Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities".
SFAS No. 125 specifies the accounting and reporting requirements for
transfers of financial assets, the recognition and measurement of
servicing assets and liabilities and extinguishments of liabilities.
SFAS No. 125 is effective for transactions occurring after December 31,
1996 and is to be applied prospectively. In December 1996, the FASB
issued SFAS No. 127, "Deferral of the Effective Date of Certain
Provisions of FASB Statement No. 125," which defers for one year the
effective date of provisions relating to secured borrowings and
collateral and transfers of financial assets that are part of repurchase
agreements, dollar-roll, securities lending and similar transactions.
Implementation of SFAS No. 125 did not have nor is SFAS No. 127 expected
to have a material impact on the Company's consolidated financial
statements.
Valuation of Investments
Fixed maturities identified as available for sale are reported at
estimated fair value. The amortized cost of fixed maturities is adjusted
for impairments in value deemed to be other than temporary.
Valuation allowances are netted against the asset categories to which
they apply.
F-8
<PAGE>
Mortgage loans on real estate are stated at unpaid principal balances,
net of unamortized discounts and valuation allowances. Valuation
allowances are based on the present value of expected future cash flows
discounted at the loan's original effective interest rate or the
collateral value if the loan is collateral dependent. However, if
foreclosure is or becomes probable, the measurement method used is
collateral value.
Real estate, including real estate acquired in satisfaction of debt, is
stated at depreciated cost less valuation allowances. At the date of
foreclosure (including in-substance foreclosure), real estate acquired
in satisfaction of debt is valued at estimated fair value. Impaired real
estate is written down to fair value with the impairment loss being
included in investment gains (losses), net. Valuation allowances on real
estate held for sale are computed using the lower of depreciated cost or
current estimated fair value, net of disposition costs. Depreciation is
discontinued on real estate held for sale. Prior to the adoption of SFAS
No. 121, valuation allowances on real estate held for production of
income were computed using the forecasted cash flows of the respective
properties discounted at a rate equal to the Company's cost of funds.
Policy loans are stated at unpaid principal balances.
Partnerships and joint venture interests in which the Company does not
have control or a majority economic interest are reported on the equity
basis of accounting and are included either with equity real estate or
other equity investments, as appropriate.
Common stocks are carried at estimated fair value and are included in
other equity investments.
Short-term investments are stated at amortized cost which approximates
fair value and are included with other invested assets.
Cash and cash equivalents includes cash on hand, amounts due from banks
and highly liquid debt instruments purchased with an original maturity
of three months or less.
All securities are recorded in the consolidated financial statements on
a trade date basis.
Net Investment Income, Investment Gains, Net and Unrealized Investment
Gains (Losses)
Net investment income and realized investment gains (losses)
(collectively, "investment results") related to certain participating
group annuity contracts which are passed through to the contractholders
are reflected as interest credited to policyholders' account balances.
Realized investment gains (losses) are determined by specific
identification and are presented as a component of revenue. Changes in
valuation allowances are included in investment gains or losses.
Unrealized investment gains and losses on fixed maturities available for
sale and equity securities held by the Company are accounted for as a
separate component of shareholder's equity, net of related deferred
Federal income taxes, amounts attributable to discontinued operations,
participating group annuity contracts and deferred policy acquisition
costs ("DAC") related to universal life and investment-type products and
participating traditional life contracts.
Recognition of Insurance Income and Related Expenses
Premiums from universal life and investment-type contracts are reported
as deposits to policyholders' account balances. Revenues from these
contracts consist of amounts assessed during the period against
policyholders' account balances for mortality charges, policy
administration charges and surrender charges. Policy benefits and claims
that are charged to expense include benefit claims incurred in the
period in excess of related policyholders' account balances.
F-9
<PAGE>
Premiums from participating and non-participating traditional life and
annuity policies with life contingencies generally are recognized as
income when due. Benefits and expenses are matched with such income so
as to result in the recognition of profits over the life of the
contracts. This match is accomplished by means of the provision for
liabilities for future policy benefits and the deferral and subsequent
amortization of policy acquisition costs.
For contracts with a single premium or a limited number of premium
payments due over a significantly shorter period than the total period
over which benefits are provided, premiums are recorded as income when
due with any excess profit deferred and recognized in income in a
constant relationship to insurance in force or, for annuities, the
amount of expected future benefit payments.
Premiums from individual health contracts are recognized as income over
the period to which the premiums relate in proportion to the amount of
insurance protection provided.
Deferred Policy Acquisition Costs
The costs of acquiring new business, principally commissions,
underwriting, agency and policy issue expenses, all of which vary with
and are primarily related to the production of new business, are
deferred. DAC is subject to recoverability testing at the time of policy
issue and loss recognition testing at the end of each accounting period.
For universal life products and investment-type products, DAC is
amortized over the expected total life of the contract group (periods
ranging from 15 to 35 years and 5 to 17 years, respectively) as a
constant percentage of estimated gross profits arising principally from
investment results, mortality and expense margins and surrender charges
based on historical and anticipated future experience, updated at the
end of each accounting period. The effect on the amortization of DAC of
revisions to estimated gross profits is reflected in earnings in the
period such estimated gross profits are revised. The effect on the DAC
asset that would result from realization of unrealized gains (losses) is
recognized with an offset to unrealized gains (losses) in consolidated
shareholder's equity as of the balance sheet date.
For participating traditional life policies (substantially all of which
are in the Closed Block), DAC is amortized over the expected total life
of the contract group (40 years) as a constant percentage based on the
present value of the estimated gross margin amounts expected to be
realized over the life of the contracts using the expected investment
yield. At December 31, 1997, the expected investment yield, excluding
policy loans, generally ranged from 7.53% grading to 7.92% over a 20
year period. Estimated gross margin includes anticipated premiums and
investment results less claims and administrative expenses, changes in
the net level premium reserve and expected annual policyholder
dividends. The effect on the amortization of DAC of revisions to
estimated gross margins is reflected in earnings in the period such
estimated gross margins are revised. The effect on the DAC asset that
would result from realization of unrealized gains (losses) is recognized
with an offset to unrealized gains (losses) in consolidated
shareholder's equity as of the balance sheet date.
For non-participating traditional life and annuity policies with life
contingencies, DAC is amortized in proportion to anticipated premiums.
Assumptions as to anticipated premiums are estimated at the date of
policy issue and are consistently applied during the life of the
contracts. Deviations from estimated experience are reflected in
earnings in the period such deviations occur. For these contracts, the
amortization periods generally are for the total life of the policy.
For individual health benefit insurance, DAC is amortized over the
expected average life of the contracts (10 years for major medical
policies and 20 years for disability income ("DI") products) in
proportion to anticipated premium revenue at time of issue.
Policyholders' Account Balances and Future Policy Benefits
Policyholders' account balances for universal life and investment-type
contracts are equal to the policy account values. The policy account
values represents an accumulation of gross premium payments plus
credited interest less expense and mortality charges and withdrawals.
F-10
<PAGE>
For participating traditional life policies, future policy benefit
liabilities are calculated using a net level premium method on the basis
of actuarial assumptions equal to guaranteed mortality and dividend fund
interest rates. The liability for annual dividends represents the
accrual of annual dividends earned. Terminal dividends are accrued in
proportion to gross margins over the life of the contract.
For non-participating traditional life insurance policies, future policy
benefit liabilities are estimated using a net level premium method on
the basis of actuarial assumptions as to mortality, persistency and
interest established at policy issue. Assumptions established at policy
issue as to mortality and persistency are based on the Insurance Group's
experience which, together with interest and expense assumptions,
include a margin for adverse deviation. When the liabilities for future
policy benefits plus the present value of expected future gross premiums
for a product are insufficient to provide for expected future policy
benefits and expenses for that product, DAC is written off and
thereafter, if required, a premium deficiency reserve is established by
a charge to earnings. Benefit liabilities for traditional annuities
during the accumulation period are equal to accumulated contractholders'
fund balances and after annuitization are equal to the present value of
expected future payments. Interest rates used in establishing such
liabilities range from 2.25% to 11.5% for life insurance liabilities and
from 2.25% to 13.5% for annuity liabilities.
During the fourth quarter of 1996, a loss recognition study of
participating group annuity contracts and conversion annuities ("Pension
Par") was completed which included management's revised estimate of
assumptions, such as expected mortality and future investment returns.
The study's results prompted management to establish a premium
deficiency reserve which decreased earnings from continuing operations
and net earnings by $47.5 million ($73.0 million pre-tax).
Individual health benefit liabilities for active lives are estimated
using the net level premium method and assumptions as to future
morbidity, withdrawals and interest. Benefit liabilities for disabled
lives are estimated using the present value of benefits method and
experience assumptions as to claim terminations, expenses and interest.
During the fourth quarter of 1996, the Company completed a loss
recognition study of the DI business which incorporated management's
revised estimates of future experience with regard to morbidity,
investment returns, claims and administration expenses and other
factors. The study indicated DAC was not recoverable and the reserves
were not sufficient. Earnings from continuing operations and net
earnings decreased by $208.0 million ($320.0 million pre-tax) as a
result of strengthening DI reserves by $175.0 million and writing off
unamortized DAC of $145.0 million related to DI products issued prior to
July 1993. The determination of DI reserves requires making assumptions
and estimates relating to a variety of factors, including morbidity and
interest rates, claims experience and lapse rates based on then known
facts and circumstances. Such factors as claim incidence and termination
rates can be affected by changes in the economic, legal and regulatory
environments and work ethic. While management believes its DI reserves
have been calculated on a reasonable basis and are adequate, there can
be no assurance reserves will be sufficient to provide for future
liabilities.
F-11
<PAGE>
Claim reserves and associated liabilities for individual DI and major
medical policies were $886.7 million and $869.4 million at December 31,
1997 and 1996, respectively. Incurred benefits (benefits paid plus
changes in claim reserves) and benefits paid for individual DI and major
medical policies (excluding reserve strengthening in 1996) are
summarized as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Incurred benefits related to current year.......... $ 190.2 $ 189.0 $ 176.0
Incurred benefits related to prior years........... 2.1 69.1 67.8
----------------- ---------------- -----------------
Total Incurred Benefits............................ $ 192.3 $ 258.1 $ 243.8
================= ================ =================
Benefits paid related to current year.............. $ 28.8 $ 32.6 $ 37.0
Benefits paid related to prior years............... 146.2 153.3 137.8
----------------- ---------------- -----------------
Total Benefits Paid................................ $ 175.0 $ 185.9 $ 174.8
================= ================ =================
</TABLE>
Policyholders' Dividends
The amount of policyholders' dividends to be paid (including those on
policies included in the Closed Block) is determined annually by
Equitable Life's board of directors. The aggregate amount of
policyholders' dividends is related to actual interest, mortality,
morbidity and expense experience for the year and judgment as to the
appropriate level of statutory surplus to be retained by Equitable Life.
At December 31, 1997, participating policies, including those in the
Closed Block, represent approximately 21.2% ($50.2 billion) of directly
written life insurance in force, net of amounts ceded.
Federal Income Taxes
The Company files a consolidated Federal income tax return with the
Holding Company and its consolidated subsidiaries. Current Federal
income taxes are charged or credited to operations based upon amounts
estimated to be payable or recoverable as a result of taxable operations
for the current year. Deferred income tax assets and liabilities are
recognized based on the difference between financial statement carrying
amounts and income tax bases of assets and liabilities using enacted
income tax rates and laws.
Separate Accounts
Separate Accounts are established in conformity with the New York State
Insurance Law and generally are not chargeable with liabilities that
arise from any other business of the Insurance Group. Separate Accounts
assets are subject to General Account claims only to the extent the
value of such assets exceeds Separate Accounts liabilities.
Assets and liabilities of the Separate Accounts, representing net
deposits and accumulated net investment earnings less fees, held
primarily for the benefit of contractholders, and for which the
Insurance Group does not bear the investment risk, are shown as separate
captions in the consolidated balance sheets. The Insurance Group bears
the investment risk on assets held in one Separate Account, therefore,
such assets are carried on the same basis as similar assets held in the
General Account portfolio. Assets held in the other Separate Accounts
are carried at quoted market values or, where quoted values are not
available, at estimated fair values as determined by the Insurance
Group.
The investment results of Separate Accounts on which the Insurance Group
does not bear the investment risk are reflected directly in Separate
Accounts liabilities. For 1997, 1996 and 1995, investment results of
such Separate Accounts were $3,411.1 million, $2,970.6 million and
$1,963.2 million, respectively.
F-12
<PAGE>
Deposits to Separate Accounts are reported as increases in Separate
Accounts liabilities and are not reported in revenues. Mortality, policy
administration and surrender charges on all Separate Accounts are
included in revenues.
Employee Stock Option Plan
The Company accounts for stock option plans sponsored by the Holding
Company, DLJ and Alliance in accordance with the provisions of
Accounting Principles Board Opinion ("APB") No. 25, "Accounting for
Stock Issued to Employees," and related interpretations. In accordance
with the opinion, compensation expense is recorded on the date of grant
only if the current market price of the underlying stock exceeds the
exercise price. See Note 21 for the pro forma disclosures for the
Holding Company, DLJ and Alliance required by SFAS No. 123, "Accounting
for Stock-Based Compensation".
3) INVESTMENTS
The following tables provide additional information relating to fixed
maturities and equity securities:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Estimated
Cost Gains Losses Fair Value
----------------- ----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C> <C>
December 31, 1997
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 14,230.3 $ 785.0 $ 74.5 $ 14,940.8
Mortgage-backed.................... 1,702.8 23.5 1.3 1,725.0
U.S. Treasury securities and
U.S. government and
agency securities................ 1,583.2 83.9 .6 1,666.5
States and political subdivisions.. 673.0 6.8 .1 679.7
Foreign governments................ 442.4 44.8 2.0 485.2
Redeemable preferred stock......... 128.0 6.7 1.0 133.7
----------------- ----------------- ---------------- -----------------
Total Available for Sale............... $ 18,759.7 $ 950.7 $ 79.5 $ 19,630.9
================= ================= ================ =================
Equity Securities:
Common stock......................... $ 408.4 $ 48.7 $ 15.0 $ 442.1
================= ================= ================ =================
December 31, 1996
Fixed Maturities:
Available for Sale:
Corporate.......................... $ 13,645.2 $ 451.5 $ 121.0 $ 13,975.7
Mortgage-backed.................... 2,015.9 11.2 20.3 2,006.8
U.S. Treasury securities and
U.S. government and
agency securities................ 1,539.4 39.2 19.3 1,559.3
States and political subdivisions.. 77.0 4.5 - 81.5
Foreign governments................ 302.6 18.0 2.2 318.4
Redeemable preferred stock......... 139.1 3.3 7.1 135.3
----------------- ----------------- ---------------- -----------------
Total Available for Sale............... $ 17,719.2 $ 527.7 $ 169.9 $ 18,077.0
================= ================= ================ =================
Equity Securities:
Common stock......................... $ 362.0 $ 49.3 $ 17.7 $ 393.6
================= ================= ================ =================
</TABLE>
F-13
<PAGE>
For publicly traded fixed maturities and equity securities, estimated
fair value is determined using quoted market prices. For fixed
maturities without a readily ascertainable market value, the Company has
determined an estimated fair value using a discounted cash flow
approach, including provisions for credit risk, generally based on the
assumption such securities will be held to maturity. Estimated fair
values for equity securities, substantially all of which do not have a
readily ascertainable market value, have been determined by the Company.
Such estimated fair values do not necessarily represent the values for
which these securities could have been sold at the dates of the
consolidated balance sheets. At December 31, 1997 and 1996, securities
without a readily ascertainable market value having an amortized cost of
$3,759.2 million and $3,915.7 million, respectively, had estimated fair
values of $3,903.9 million and $4,024.6 million, respectively.
The contractual maturity of bonds at December 31, 1997 is shown below:
<TABLE>
<CAPTION>
Available for Sale
------------------------------------
Amortized Estimated
Cost Fair Value
---------------- -----------------
(In Millions)
<S> <C> <C>
Due in one year or less................................................ $ 149.9 $ 151.3
Due in years two through five.......................................... 2,962.8 3,025.2
Due in years six through ten........................................... 6,863.9 7,093.0
Due after ten years.................................................... 6,952.3 7,502.7
Mortgage-backed securities............................................. 1,702.8 1,725.0
---------------- -----------------
Total.................................................................. $ 18,631.7 $ 19,497.2
================ =================
</TABLE>
Bonds not due at a single maturity date have been included in the above
table in the year of final maturity. Actual maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
The Insurance Group's fixed maturity investment portfolio includes
corporate high yield securities consisting of public high yield bonds,
redeemable preferred stocks and directly negotiated debt in leveraged
buyout transactions. The Insurance Group seeks to minimize the higher
than normal credit risks associated with such securities by monitoring
the total investments in any single issuer or total investment in a
particular industry group. Certain of these corporate high yield
securities are classified as other than investment grade by the various
rating agencies, i.e., a rating below Baa or National Association of
Insurance Commissioners ("NAIC") designation of 3 (medium grade), 4 or 5
(below investment grade) or 6 (in or near default). At December 31,
1997, approximately 17.85% of the $18,610.6 million aggregate amortized
cost of bonds held by the Insurance Group were considered to be other
than investment grade.
In addition to its holdings of corporate high yield securities, the
Insurance Group is an equity investor in limited partnership interests
which primarily invest in securities considered to be other than
investment grade.
Fixed maturity investments with restructured or modified terms are not
material.
F-14
<PAGE>
Investment valuation allowances and changes thereto are shown below:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Balances, beginning of year........................ $ 137.1 $ 325.3 $ 284.9
SFAS No. 121 release............................... - (152.4) -
Additions charged to income........................ 334.6 125.0 136.0
Deductions for writedowns and
asset dispositions............................... (87.2) (160.8) (95.6)
----------------- ---------------- -----------------
Balances, End of Year.............................. $ 384.5 $ 137.1 $ 325.3
================= ================ =================
Balances, end of year comprise:
Mortgage loans on real estate.................... $ 55.8 $ 50.4 $ 65.5
Equity real estate............................... 328.7 86.7 259.8
----------------- ---------------- -----------------
Total.............................................. $ 384.5 $ 137.1 $ 325.3
================= ================ =================
</TABLE>
At December 31, 1997, the carrying values of investments held for the
production of income which were non-income producing for the twelve
months preceding the consolidated balance sheet date were $12.6 million
of fixed maturities and $.9 million of mortgage loans on real estate.
At December 31, 1997 and 1996, mortgage loans on real estate with
scheduled payments 60 days (90 days for agricultural mortgages) or more
past due or in foreclosure (collectively, "problem mortgage loans on
real estate") had an amortized cost of $23.4 million (0.9% of total
mortgage loans on real estate) and $12.4 million (0.4% of total mortgage
loans on real estate), respectively.
The payment terms of mortgage loans on real estate may from time to time
be restructured or modified. The investment in restructured mortgage
loans on real estate, based on amortized cost, amounted to $183.4
million and $388.3 million at December 31, 1997 and 1996, respectively.
Gross interest income on restructured mortgage loans on real estate that
would have been recorded in accordance with the original terms of such
loans amounted to $17.2 million, $35.5 million and $52.1 million in
1997, 1996 and 1995, respectively. Gross interest income on these loans
included in net investment income aggregated $12.7 million, $28.2
million and $37.4 million in 1997, 1996 and 1995, respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
December 31,
----------------------------------------
1997 1996
------------------- -------------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses.................. $ 196.7 $ 340.0
Impaired mortgage loans without provision for losses............... 3.6 122.3
------------------- -------------------
Recorded investment in impaired mortgage loans..................... 200.3 462.3
Provision for losses............................................... (51.8) (46.4)
------------------- -------------------
Net Impaired Mortgage Loans........................................ $ 148.5 $ 415.9
=================== ===================
</TABLE>
Impaired mortgage loans without provision for losses are loans where the
fair value of the collateral or the net present value of the expected
future cash flows related to the loan equals or exceeds the recorded
investment. Interest income earned on loans where the collateral value
is used to measure impairment is recorded on a cash basis. Interest
income on loans where the present value method is used to measure
impairment is accrued on the net carrying value amount of the loan at
the interest rate used to discount the cash flows. Changes in the
present value attributable to changes in the amount or timing of
expected cash flows are reported as investment gains or losses.
F-15
<PAGE>
During 1997, 1996 and 1995, respectively, the Company's average recorded
investment in impaired mortgage loans was $246.9 million, $552.1 million
and $429.0 million. Interest income recognized on these impaired
mortgage loans totaled $15.2 million, $38.8 million and $27.9 million
($2.3 million, $17.9 million and $13.4 million recognized on a cash
basis) for 1997, 1996 and 1995, respectively.
The Insurance Group's investment in equity real estate is through direct
ownership and through investments in real estate joint ventures. At
December 31, 1997 and 1996, the carrying value of equity real estate
held for sale amounted to $1,023.5 million and $345.6 million,
respectively. For 1997, 1996 and 1995, respectively, real estate of
$152.0 million, $58.7 million and $35.3 million was acquired in
satisfaction of debt. At December 31, 1997 and 1996, the Company owned
$693.3 million and $771.7 million, respectively, of real estate acquired
in satisfaction of debt.
Depreciation of real estate is computed using the straight-line method
over the estimated useful lives of the properties, which generally range
from 40 to 50 years. Accumulated depreciation on real estate was $541.1
million and $587.5 million at December 31, 1997 and 1996, respectively.
Depreciation expense on real estate totaled $74.9 million, $91.8 million
and $121.7 million for 1997, 1996 and 1995, respectively.
4) JOINT VENTURES AND PARTNERSHIPS
Summarized combined financial information for real estate joint ventures
(29 and 34 individual ventures as of December 31, 1997 and 1996,
respectively) and for limited partnership interests accounted for under
the equity method, in which the Company has an investment of $10.0
million or greater and an equity interest of 10% or greater is as
follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
BALANCE SHEETS
Investments in real estate, at depreciated cost........................ $ 1,700.9 $ 1,883.7
Investments in securities, generally at estimated fair value........... 1,374.8 2,430.6
Cash and cash equivalents.............................................. 105.4 98.0
Other assets........................................................... 584.9 427.0
---------------- -----------------
Total Assets........................................................... $ 3,766.0 $ 4,839.3
================ =================
Borrowed funds - third party........................................... $ 493.4 $ 1,574.3
Borrowed funds - the Company........................................... 31.2 137.9
Other liabilities...................................................... 284.0 415.8
---------------- -----------------
Total liabilities...................................................... 808.6 2,128.0
---------------- -----------------
Partners' capital...................................................... 2,957.4 2,711.3
---------------- -----------------
Total Liabilities and Partners' Capital................................ $ 3,766.0 $ 4,839.3
================ =================
Equity in partners' capital included above............................. $ 568.5 $ 806.8
Equity in limited partnership interests not included above............. 331.8 201.8
Other.................................................................. 4.3 9.8
---------------- -----------------
Carrying Value......................................................... $ 904.6 $ 1,018.4
================ =================
</TABLE>
F-16
<PAGE>
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
STATEMENTS OF EARNINGS
Revenues of real estate joint ventures............. $ 310.5 $ 348.9 $ 463.5
Revenues of other limited partnership interests.... 506.3 386.1 242.3
Interest expense - third party..................... (91.8) (111.0) (135.3)
Interest expense - the Company..................... (7.2) (30.0) (41.0)
Other expenses..................................... (263.6) (282.5) (397.7)
----------------- ---------------- -----------------
Net Earnings....................................... $ 454.2 $ 311.5 $ 131.8
================= ================ =================
Equity in net earnings included above.............. $ 76.7 $ 73.9 $ 49.1
Equity in net earnings of limited partnerships
interests not included above..................... 69.5 35.8 44.8
Other.............................................. (.9) .9 1.0
-----------------
----------------- ---------------- -----------------
Total Equity in Net Earnings....................... $ 145.3 $ 110.6 $ 94.9
================= ================ =================
</TABLE>
5) NET INVESTMENT INCOME AND INVESTMENT GAINS (LOSSES)
The sources of net investment income are summarized as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Fixed maturities................................... $ 1,459.4 $ 1,307.4 $ 1,151.1
Mortgage loans on real estate...................... 260.8 303.0 329.0
Equity real estate................................. 390.4 442.4 560.4
Other equity investments........................... 156.9 122.0 76.9
Policy loans....................................... 177.0 160.3 144.4
Other investment income............................ 181.7 217.4 273.0
----------------- ---------------- -----------------
Gross investment income.......................... 2,626.2 2,552.5 2,534.8
----------------- ---------------- -----------------
Investment expenses.............................. 343.4 348.9 446.6
----------------- ---------------- -----------------
Net Investment Income.............................. $ 2,282.8 $ 2,203.6 $ 2,088.2
================= ================ =================
</TABLE>
Investment gains (losses), net, including changes in the valuation
allowances, are summarized as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Fixed maturities................................... $ 88.1 $ 60.5 $ 119.9
Mortgage loans on real estate...................... (11.2) (27.3) (40.2)
Equity real estate................................. (391.3) (79.7) (86.6)
Other equity investments........................... 14.1 18.9 12.8
Sale of subsidiaries............................... 252.1 - -
Issuance and sales of Alliance Units............... - 20.6 -
Other.............................................. 3.0 (2.8) (.6)
----------------- ---------------- -----------------
Investment (Losses) Gains, Net..................... $ (45.2) $ (9.8) $ 5.3
================= ================ =================
</TABLE>
F-17
<PAGE>
Writedowns of fixed maturities amounted to $11.7 million, $29.9 million
and $46.7 million for 1997, 1996 and 1995, respectively, and writedowns
of equity real estate subsequent to the adoption of SFAS No. 121
amounted to $136.4 million and $23.7 million for 1997 and 1996,
respectively. In the fourth quarter of 1997, the Company reclassified
$1,095.4 million depreciated cost of equity real estate from real estate
held for the production of income to real estate held for sale.
Additions to valuation allowances of $227.6 million were recorded upon
these transfers. Additionally in the fourth quarter, $132.3 million of
writedowns on real estate held for production of income were recorded.
For 1997, 1996 and 1995, respectively, proceeds received on sales of
fixed maturities classified as available for sale amounted to $9,789.7
million, $8,353.5 million and $8,206.0 million. Gross gains of $166.0
million, $154.2 million and $211.4 million and gross losses of $108.8
million, $92.7 million and $64.2 million, respectively, were realized on
these sales. The change in unrealized investment gains (losses) related
to fixed maturities classified as available for sale for 1997, 1996 and
1995 amounted to $513.4 million, $(258.0) million and $1,077.2 million,
respectively.
For 1997, 1996 and 1995, investment results passed through to certain
participating group annuity contracts as interest credited to
policyholders' account balances amounted to $137.5 million, $136.7
million and $131.2 million, respectively.
On June 10, 1997, Equitable Life sold EREIM (other than its interest in
Column Financial, Inc.) ("ERE") to Lend Lease Corporation Limited ("Lend
Lease"), a publicly traded, international property and financial
services company based in Sydney, Australia. The total purchase price
was $400.0 million and consisted of $300.0 million in cash and a $100.0
million note maturing in eight years and bearing interest at the rate of
7.4%, subject to certain adjustments. Equitable Life recognized an
investment gain of $162.4 million, net of Federal income tax of $87.4
million as a result of this transaction. Equitable Life entered into
long-term advisory agreements whereby ERE will continue to provide
substantially the same services to Equitable Life's General Account and
Separate Accounts, for substantially the same fees, as provided prior to
the sale.
Through June 10, 1997 and the years ended December 31, 1996 and 1995,
respectively, the businesses sold reported combined revenues of $91.6
million, $226.1 million and $245.6 million and combined net earnings of
$10.7 million, $30.7 million and $27.9 million. Total combined assets
and liabilities as reported at December 31, 1996 were $171.8 million and
$130.1 million, respectively.
In 1996, Alliance acquired the business of Cursitor-Eaton Asset
Management Company and Cursitor Holdings Limited (collectively,
"Cursitor") for approximately $159.0 million. The purchase price
consisted of $94.3 million in cash, 1.8 million of Alliance's publicly
traded units ("Alliance Units"), 6% notes aggregating $21.5 million
payable ratably over four years, and substantial additional
consideration to be determined at a later date. The excess of the
purchase price, including acquisition costs and minority interest, over
the fair value of Cursitor's net assets acquired resulted in the
recognition of intangible assets consisting of costs assigned to
contracts acquired and goodwill of approximately $122.8 million and
$38.3 million, respectively. The Company recognized an investment gain
of $20.6 million as a result of the issuance of Alliance Units in this
transaction. On June 30, 1997, Alliance reduced the recorded value of
goodwill and contracts associated with Alliance's acquisition of
Cursitor by $120.9 million. This charge reflected Alliance's view that
Cursitor's continuing decline in assets under management and its reduced
profitability, resulting from relative investment underperformance, no
longer supported the carrying value of its investment. As a result, the
Company's earnings from continuing operations before cumulative effect
of accounting change for 1997 included a charge of $59.5 million, net of
a Federal income tax benefit of $10.0 million and minority interest of
$51.4 million. The remaining balance of intangible assets is being
amortized over its estimated useful life of 20 years. At December 31,
1997, the Company's ownership of Alliance Units was approximately 56.9%.
F-18
<PAGE>
Net unrealized investment gains (losses), included in the consolidated
balance sheets as a component of equity and the changes for the
corresponding years, are summarized as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Balance, beginning of year......................... $ 189.9 $ 396.5 $ (220.5)
Changes in unrealized investment gains (losses).... 543.3 (297.6) 1,198.9
Changes in unrealized investment losses
(gains) attributable to:
Participating group annuity contracts.......... 53.2 - (78.1)
DAC............................................ (89.0) 42.3 (216.8)
Deferred Federal income taxes.................. (163.8) 48.7 (287.0)
----------------- ---------------- -----------------
Balance, End of Year............................... $ 533.6 $ 189.9 $ 396.5
================= ================ =================
Balance, end of year comprises:
Unrealized investment gains on:
Fixed maturities............................... $ 871.2 $ 357.8 $ 615.9
Other equity investments....................... 33.7 31.6 31.1
Other, principally Closed Block................ 80.9 53.1 93.1
----------------- ---------------- -----------------
Total........................................ 985.8 442.5 740.1
Amounts of unrealized investment gains
attributable to:
Participating group annuity contracts........ (19.0) (72.2) (72.2)
DAC.......................................... (141.0) (52.0) (94.3)
Deferred Federal income taxes................ (292.2) (128.4) (177.1)
----------------- ---------------- -----------------
Total.............................................. $ 533.6 $ 189.9 $ 396.5
================= ================ =================
</TABLE>
6) CLOSED BLOCK
Summarized financial information for the Closed Block follows:
<TABLE>
<CAPTION>
December 31,
--------------------------------------
1997 1996
----------------- -----------------
(In Millions)
<S> <C> <C>
Assets
Fixed Maturities:
Available for sale, at estimated fair value (amortized cost,
$4,059.4 and $3,820.7)........................................... $ 4,231.0 $ 3,889.5
Mortgage loans on real estate........................................ 1,341.6 1,380.7
Policy loans......................................................... 1,700.2 1,765.9
Cash and other invested assets....................................... 282.7 336.1
DAC.................................................................. 775.2 876.5
Other assets......................................................... 235.9 246.3
----------------- -----------------
Total Assets......................................................... $ 8,566.6 $ 8,495.0
================= =================
Liabilities
Future policy benefits and policyholders' account balances........... $ 8,993.2 $ 8,999.7
Other liabilities.................................................... 80.5 91.6
----------------- -----------------
Total Liabilities.................................................... $ 9,073.7 $ 9,091.3
================= =================
</TABLE>
F-19
<PAGE>
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Revenues
Premiums and other revenue......................... $ 687.1 $ 724.8 $ 753.4
Investment income (net of investment
expenses of $27.0, $27.3 and $26.7).............. 574.9 546.6 538.9
Investment losses, net............................. (42.4) (5.5) (20.2)
----------------- ---------------- -----------------
Total revenues............................... 1,219.6 1,265.9 1,272.1
----------------- ---------------- -----------------
Benefits and Other Deductions
Policyholders' benefits and dividends.............. 1,066.7 1,106.3 1,077.6
Other operating costs and expenses................. 50.4 34.6 51.3
----------------- ---------------- -----------------
Total benefits and other deductions.......... 1,117.1 1,140.9 1,128.9
----------------- ---------------- -----------------
Contribution from the Closed Block................. $ 102.5 $ 125.0 $ 143.2
================= ================ =================
</TABLE>
At December 31, 1997 and 1996, problem mortgage loans on real estate had
an amortized cost of $8.1 million and $4.3 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had an amortized cost of $70.5 million and $114.2 million,
respectively. At December 31, 1996, the restructured mortgage loans on
real estate amount included $.7 million of problem mortgage loans on
real estate.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 109.1 $ 128.1
Impaired mortgage loans without provision for losses................... .6 .6
---------------- -----------------
Recorded investment in impaired mortgages.............................. 109.7 128.7
Provision for losses................................................... (17.4) (12.9)
---------------- -----------------
Net Impaired Mortgage Loans............................................ $ 92.3 $ 115.8
================ =================
</TABLE>
During 1997, 1996 and 1995, the Closed Block's average recorded
investment in impaired mortgage loans was $110.2 million, $153.8 million
and $146.9 million, respectively. Interest income recognized on these
impaired mortgage loans totaled $9.4 million, $10.9 million and $5.9
million ($4.1 million, $4.7 million and $1.3 million recognized on a
cash basis) for 1997, 1996 and 1995, respectively.
Valuation allowances amounted to $18.5 million and $13.8 million on
mortgage loans on real estate and $16.8 million and $3.7 million on
equity real estate at December 31, 1997 and 1996, respectively. As of
January 1, 1996, the adoption of SFAS No. 121 resulted in the
recognition of impairment losses of $5.6 million on real estate held for
production of income. Writedowns of fixed maturities amounted to $3.5
million, $12.8 million and $16.8 million for 1997, 1996 and 1995,
respectively and writedowns of equity real estate subsequent to the
adoption of SFAS No. 121 amounted to $28.8 million for 1997.
In the fourth quarter of 1997, $72.9 million depreciated cost of equity
real estate held for production of income was reclassified to equity
real estate held for sale. Additions to valuation allowances of $15.4
million were recorded upon these transfers. Additionally, in the fourth
quarter, $28.8 million of writedowns on real estate held for production
of income were recorded.
Many expenses related to Closed Block operations are charged to
operations outside of the Closed Block; accordingly, the contribution
from the Closed Block does not represent the actual profitability of the
Closed Block operations. Operating costs and expenses outside of the
Closed Block are, therefore, disproportionate to the business outside of
the Closed Block.
F-20
<PAGE>
7) DISCONTINUED OPERATIONS
Summarized financial information for discontinued operations follows:
<TABLE>
<CAPTION>
December 31,
--------------------------------------
1997 1996
----------------- -----------------
(In Millions)
<S> <C> <C>
Assets
Mortgage loans on real estate........................................ $ 655.5 $ 1,111.1
Equity real estate................................................... 655.6 925.6
Other equity investments............................................. 209.3 300.5
Short-term investments............................................... 102.0 63.2
Other invested assets................................................ 41.9 50.9
----------------- -----------------
Total investments.................................................. 1,664.3 2,451.3
Cash and cash equivalents............................................ 106.8 42.6
Other assets......................................................... 253.9 242.9
----------------- -----------------
Total Assets......................................................... $ 2,025.0 $ 2,736.8
================= =================
Liabilities
Policyholders' liabilities........................................... $ 1,048.3 $ 1,335.9
Allowance for future losses.......................................... 259.2 262.0
Amounts due to continuing operations................................. 572.8 996.2
Other liabilities.................................................... 144.7 142.7
----------------- -----------------
Total Liabilities.................................................... $ 2,025.0 $ 2,736.8
================= =================
</TABLE>
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Revenues
Investment income (net of investment
expenses of $97.3, $127.5 and $153.1)............ $ 188.6 $ 245.4 $ 323.6
Investment losses, net............................. (173.7) (18.9) (22.9)
Policy fees, premiums and other income............. .2 .2 .7
----------------- ---------------- -----------------
Total revenues..................................... 15.1 226.7 301.4
Benefits and other deductions...................... 169.5 250.4 326.5
Losses charged to allowance for future losses...... (154.4) (23.7) (25.1)
----------------- ---------------- -----------------
Pre-tax loss from operations....................... - - -
Pre-tax loss from strengthening of the
allowance for future losses...................... (134.1) (129.0) -
Federal income tax benefit......................... 46.9 45.2 -
----------------- ---------------- -----------------
Loss from Discontinued Operations.................. $ (87.2) $ (83.8) $ -
================= ================ =================
</TABLE>
The Company's quarterly process for evaluating the allowance for future
losses applies the current period's results of the discontinued
operations against the allowance, re-estimates future losses, and
adjusts the allowance, if appropriate. Additionally, as part of the
Company's annual planning process which takes place in the fourth
quarter of each year, investment and benefit cash flow projections are
prepared. These updated assumptions and estimates resulted in the need
to strengthen the allowance in 1997 and 1996, respectively.
In the fourth quarter of 1997, $329.9 million depreciated cost of equity
real estate was reclassified from equity real estate held for production
of income to real estate held for sale. Additions to valuation
allowances of $79.8 million were recognized upon these transfers.
Additionally, in the fourth quarter, $92.5 million of writedown on real
estate held for production of income were recognized.
Benefits and other deductions includes $53.3 million, $114.3 million and
$154.6 million of interest expense related to amounts borrowed from
continuing operations in 1997, 1996 and 1995, respectively.
F-21
<PAGE>
Valuation allowances amounted to $28.4 million and $9.0 million on
mortgage loans on real estate and $88.4 million and $20.4 million on
equity real estate at December 31, 1997 and 1996, respectively. As of
January 1, 1996, the adoption of SFAS No. 121 resulted in a release of
existing valuation allowances of $71.9 million on equity real estate and
recognition of impairment losses of $69.8 million on real estate held
for production of income. Writedowns of equity real estate subsequent to
the adoption of SFAS No. 121 amounted to $95.7 million and $12.3 million
for 1997 and 1996, respectively.
At December 31, 1997 and 1996, problem mortgage loans on real estate had
amortized costs of $11.0 million and $7.9 million, respectively, and
mortgage loans on real estate for which the payment terms have been
restructured had amortized costs of $109.4 million and $208.1 million,
respectively.
Impaired mortgage loans (as defined under SFAS No. 114) along with the
related provision for losses were as follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
Impaired mortgage loans with provision for losses...................... $ 101.8 $ 83.5
Impaired mortgage loans without provision for losses................... .2 15.0
---------------- -----------------
Recorded investment in impaired mortgages.............................. 102.0 98.5
Provision for losses................................................... (27.3) (8.8)
---------------- -----------------
Net Impaired Mortgage Loans............................................ $ 74.7 $ 89.7
================ =================
</TABLE>
During 1997, 1996 and 1995, the discontinued operations' average
recorded investment in impaired mortgage loans was $89.2 million, $134.8
million and $177.4 million, respectively. Interest income recognized on
these impaired mortgage loans totaled $6.6 million, $10.1 million and
$4.5 million ($5.3 million, $7.5 million and $.4 million recognized on a
cash basis) for 1997, 1996 and 1995, respectively.
At December 31, 1997 and 1996, discontinued operations had carrying
values of $156.2 million and $263.0 million, respectively, of real
estate acquired in satisfaction of debt.
8) SHORT-TERM AND LONG-TERM DEBT
Short-term and long-term debt consists of the following:
<TABLE>
<CAPTION>
December 31,
--------------------------------------
1997 1996
----------------- -----------------
(In Millions)
<S> <C> <C>
Short-term debt...................................................... $ 422.2 $ 174.1
----------------- -----------------
Long-term debt:
Equitable Life:
6.95% surplus notes scheduled to mature 2005....................... 399.4 399.4
7.70% surplus notes scheduled to mature 2015....................... 199.7 199.6
Other.............................................................. .3 .5
----------------- -----------------
Total Equitable Life........................................... 599.4 599.5
----------------- -----------------
Wholly Owned and Joint Venture Real Estate:
Mortgage notes, 5.87% - 12.00% due through 2006.................... 951.1 968.6
----------------- -----------------
Alliance:
Other.............................................................. 18.5 24.7
----------------- -----------------
Total long-term debt................................................. 1,569.0 1,592.8
----------------- -----------------
Total Short-term and Long-term Debt.................................. $ 1,991.2 $ 1,766.9
================= =================
</TABLE>
F-22
<PAGE>
Short-term Debt
Equitable Life has a $350.0 million bank credit facility available to
fund short-term working capital needs and to facilitate the securities
settlement process. The credit facility consists of two types of
borrowing options with varying interest rates and expires in June 2000.
The interest rates are based on external indices dependent on the type
of borrowing and at December 31, 1997 range from 5.88% to 8.50%. There
were no borrowings outstanding under this bank credit facility at
December 31, 1997.
Equitable Life has a commercial paper program with an issue limit of
$500.0 million. This program is available for general corporate purposes
used to support Equitable Life's liquidity needs and is supported by
Equitable Life's existing $350.0 million bank credit facility. At
December 31, 1997, $50.0 million was outstanding under this program.
During 1996, Alliance entered into a $250.0 million five-year revolving
credit facility with a group of banks. Under the facility, the interest
rate, at the option of Alliance, is a floating rate generally based upon
a defined prime rate, a rate related to the London Interbank Offered
Rate ("LIBOR") or the Federal funds rate. A facility fee is payable on
the total facility. The revolving credit facility will be used to
provide back-up liquidity for Alliance's $250.0 million commercial paper
program, to fund commission payments to financial intermediaries for the
sale of Class B and C shares under Alliance's mutual fund distribution
system, and for general working capital purposes. At December 31, 1997,
Alliance had $72.0 million in commercial paper outstanding and there
were no borrowings under the revolving credit facility.
Long-term Debt
Several of the long-term debt agreements have restrictive covenants
related to the total amount of debt, net tangible assets and other
matters. The Company is in compliance with all debt covenants.
On December 18, 1995, Equitable Life issued, in accordance with Section
1307 of the New York Insurance Law, $400.0 million of surplus notes
having an interest rate of 6.95% scheduled to mature in 2005 and $200.0
million of surplus notes having an interest rate of 7.70% scheduled to
mature in 2015 (together, the "Surplus Notes"). Proceeds from the
issuance of the Surplus Notes were $596.6 million, net of related
issuance costs. Payments of interest on, or principal of, the Surplus
Notes are subject to prior approval by the Superintendent.
The Company has pledged real estate, mortgage loans, cash and securities
amounting to $1,164.0 million and $1,406.4 million at December 31, 1997
and 1996, respectively, as collateral for certain long-term debt.
At December 31, 1997, aggregate maturities of the long-term debt based
on required principal payments at maturity for 1998 and the succeeding
four years are $565.8 million, $201.4 million, $8.6 million, $1.7
million and $1.8 million, respectively, and $790.6 million thereafter.
9) FEDERAL INCOME TAXES
A summary of the Federal income tax expense in the consolidated
statements of earnings is shown below:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Federal income tax expense (benefit):
Current.......................................... $ 186.5 $ 97.9 $ (11.7)
Deferred......................................... (95.0) (88.2) 132.2
----------------- ---------------- -----------------
Total.............................................. $ 91.5 $ 9.7 $ 120.5
================= ================ =================
</TABLE>
F-23
<PAGE>
The Federal income taxes attributable to consolidated operations are
different from the amounts determined by multiplying the earnings before
Federal income taxes and minority interest by the expected Federal
income tax rate of 35%. The sources of the difference and the tax
effects of each are as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Expected Federal income tax expense................ $ 234.7 $ 73.0 $ 173.7
Non-taxable minority interest...................... (38.0) (28.6) (22.0)
Adjustment of tax audit reserves................... (81.7) 6.9 4.1
Equity in unconsolidated subsidiaries.............. (45.1) (32.3) (19.4)
Other.............................................. 21.6 (9.3) (15.9)
----------------- ---------------- -----------------
Federal Income Tax Expense......................... $ 91.5 $ 9.7 $ 120.5
================= ================ =================
</TABLE>
The components of the net deferred Federal income taxes are as follows:
<TABLE>
<CAPTION>
December 31, 1997 December 31, 1996
--------------------------------- ---------------------------------
Assets Liabilities Assets Liabilities
--------------- ---------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C> <C>
Compensation and related benefits...... $ 257.9 $ - $ 259.2 $ -
Other.................................. 30.7 - - 1.8
DAC, reserves and reinsurance.......... - 222.8 - 166.0
Investments............................ - 405.7 - 328.6
--------------- ---------------- --------------- ---------------
Total.................................. $ 288.6 $ 628.5 $ 259.2 $ 496.4
=============== ================ =============== ===============
</TABLE>
The deferred Federal income taxes impacting operations reflect the net
tax effects of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts
used for income tax purposes. The sources of these temporary differences
and the tax effects of each are as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
DAC, reserves and reinsurance...................... $ 46.2 $ (156.2) $ 63.3
Investments........................................ (113.8) 78.6 13.0
Compensation and related benefits.................. 3.7 22.3 30.8
Other.............................................. (31.1) (32.9) 25.1
----------------- ---------------- -----------------
Deferred Federal Income Tax
(Benefit) Expense................................ $ (95.0) $ (88.2) $ 132.2
================= ================ =================
</TABLE>
The Internal Revenue Service (the "IRS") is in the process of examining
the Company's consolidated Federal income tax returns for the years 1989
through 1991. Management believes these audits will have no material
adverse effect on the Company's results of operations.
F-24
<PAGE>
10) REINSURANCE AGREEMENTS
The Insurance Group assumes and cedes reinsurance with other insurance
companies. The Insurance Group evaluates the financial condition of its
reinsurers to minimize its exposure to significant losses from reinsurer
insolvencies. Ceded reinsurance does not relieve the originating insurer
of liability. The effect of reinsurance (excluding group life and
health) is summarized as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Direct premiums.................................... $ 448.6 $ 461.4 $ 474.2
Reinsurance assumed................................ 198.3 177.5 171.3
Reinsurance ceded.................................. (45.4) (41.3) (38.7)
----------------- ---------------- -----------------
Premiums........................................... $ 601.5 $ 597.6 $ 606.8
================= ================ =================
Universal Life and Investment-type Product
Policy Fee Income Ceded.......................... $ 61.0 $ 48.2 $ 44.0
================= ================ =================
Policyholders' Benefits Ceded...................... $ 70.6 $ 54.1 $ 48.9
================= ================ =================
Interest Credited to Policyholders' Account
Balances Ceded................................... $ 36.4 $ 32.3 $ 28.5
================= ================ =================
</TABLE>
Effective January 1, 1994, all in force business above $5.0 million was
reinsured. During 1996, the Company's retention limit on joint
survivorship policies was increased to $15.0 million. The Insurance
Group also reinsures the entire risk on certain substandard underwriting
risks as well as in certain other cases.
The Insurance Group cedes 100% of its group life and health business to
a third party insurance company. Premiums ceded totaled $1.6 million,
$2.4 million and $260.6 million for 1997, 1996 and 1995, respectively.
Ceded death and disability benefits totaled $4.3 million, $21.2 million
and $188.1 million for 1997, 1996 and 1995, respectively. Insurance
liabilities ceded totaled $593.8 million and $652.4 million at December
31, 1997 and 1996, respectively.
11) EMPLOYEE BENEFIT PLANS
The Company sponsors qualified and non-qualified defined benefit plans
covering substantially all employees (including certain qualified
part-time employees), managers and certain agents. The pension plans are
non-contributory. Equitable Life's benefits are based on a cash balance
formula or years of service and final average earnings, if greater,
under certain grandfathering rules in the plans. Alliance's benefits are
based on years of credited service, average final base salary and
primary social security benefits. The Company's funding policy is to
make the minimum contribution required by the Employee Retirement Income
Security Act of 1974 ("ERISA").
Components of net periodic pension cost (credit) for the qualified and
non-qualified plans are as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Service cost....................................... $ 32.5 $ 33.8 $ 30.0
Interest cost on projected benefit obligations..... 128.2 120.8 122.0
Actual return on assets............................ (307.6) (181.4) (309.2)
Net amortization and deferrals..................... 166.6 43.4 155.6
----------------- ---------------- -----------------
Net Periodic Pension Cost (Credit)................. $ 19.7 $ 16.6 $ (1.6)
================= ================ =================
</TABLE>
F-25
<PAGE>
The funded status of the qualified and non-qualified pension plans is as
follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
Actuarial present value of obligations:
Vested............................................................... $ 1,702.6 $ 1,672.2
Non-vested........................................................... 3.9 10.1
---------------- -----------------
Accumulated Benefit Obligation......................................... $ 1,706.5 $ 1,682.3
================ =================
Plan assets at fair value.............................................. $ 1,867.4 $ 1,626.0
Projected benefit obligations.......................................... 1,801.3 1,765.5
---------------- -----------------
Projected benefit obligations (in excess of) or less than plan assets.. 66.1 (139.5)
Unrecognized prior service cost........................................ (9.9) (17.9)
Unrecognized net loss from past experience different
from that assumed.................................................... 95.0 280.0
Unrecognized net asset at transition................................... 3.1 4.7
Additional minimum liability........................................... - (19.3)
---------------- -----------------
Prepaid Pension Cost.................................................. $ 154.3 $ 108.0
================ =================
</TABLE>
The discount rate and rate of increase in future compensation levels
used in determining the actuarial present value of projected benefit
obligations were 7.25% and 4.07%, respectively, at December 31, 1997 and
7.5% and 4.25%, respectively, at December 31, 1996. As of January 1,
1997 and 1996, the expected long-term rate of return on assets for the
retirement plan was 10.25%.
The Company recorded, as a reduction of shareholders' equity, an
additional minimum pension liability of $17.3 million and $12.9 million,
net of Federal income taxes, at December 31, 1997 and 1996,
respectively, primarily representing the excess of the accumulated
benefit obligation of the qualified pension plan over the accrued
liability.
The pension plan's assets include corporate and government debt
securities, equity securities, equity real estate and shares of group
trusts managed by Alliance.
Prior to 1987, the qualified plan funded participants' benefits through
the purchase of non-participating annuity contracts from Equitable Life.
Benefit payments under these contracts were approximately $33.2 million,
$34.7 million and $36.4 million for 1997, 1996 and 1995, respectively.
The Company provides certain medical and life insurance benefits
(collectively, "postretirement benefits") for qualifying employees,
managers and agents retiring from the Company (i) on or after attaining
age 55 who have at least 10 years of service or (ii) on or after
attaining age 65 or (iii) whose jobs have been abolished and who have
attained age 50 with 20 years of service. The life insurance benefits
are related to age and salary at retirement. The costs of postretirement
benefits are recognized in accordance with the provisions of SFAS No.
106. The Company continues to fund postretirement benefits costs on a
pay-as-you-go basis and, for 1997, 1996 and 1995, the Company made
estimated postretirement benefits payments of $18.7 million, $18.9
million and $31.1 million, respectively.
F-26
<PAGE>
The following table sets forth the postretirement benefits plan's
status, reconciled to amounts recognized in the Company's consolidated
financial statements:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Service cost....................................... $ 4.5 $ 5.3 $ 4.0
Interest cost on accumulated postretirement
benefits obligation.............................. 34.7 34.6 34.7
Net amortization and deferrals..................... 1.9 2.4 (2.3)
----------------- ---------------- -----------------
Net Periodic Postretirement Benefits Costs......... $ 41.1 $ 42.3 $ 36.4
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
Accumulated postretirement benefits obligation:
Retirees............................................................. $ 388.5 $ 381.8
Fully eligible active plan participants.............................. 45.7 50.7
Other active plan participants....................................... 56.6 60.7
---------------- -----------------
490.8 493.2
Unrecognized prior service cost........................................ 40.3 50.5
Unrecognized net loss from past experience different
from that assumed and from changes in assumptions.................... (140.6) (150.5)
---------------- -----------------
Accrued Postretirement Benefits Cost................................... $ 390.5 $ 393.2
================ =================
</TABLE>
Since January 1, 1994, costs to the Company for providing these medical
benefits available to retirees under age 65 are the same as those
offered to active employees and costs to the Company of providing these
medical benefits will be limited to 200% of 1993 costs for all
participants.
The assumed health care cost trend rate used in measuring the
accumulated postretirement benefits obligation was 8.75% in 1997,
gradually declining to 2.75% in the year 2009 and in 1996 was 9.5%,
gradually declining to 3.5% in the year 2009. The discount rate used in
determining the accumulated postretirement benefits obligation was 7.25%
and 7.50% at December 31, 1997 and 1996, respectively.
If the health care cost trend rate assumptions were increased by 1%, the
accumulated postretirement benefits obligation as of December 31, 1997
would be increased 7%. The effect of this change on the sum of the
service cost and interest cost would be an increase of 8%.
12) DERIVATIVES AND FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivatives
The Insurance Group primarily uses derivatives for asset/liability risk
management and for hedging individual securities. Derivatives mainly are
utilized to reduce the Insurance Group's exposure to interest rate
fluctuations. Accounting for interest rate swap transactions is on an
accrual basis. Gains and losses related to interest rate swap
transactions are amortized as yield adjustments over the remaining life
of the underlying hedged security. Income and expense resulting from
interest rate swap activities are reflected in net investment income.
The notional amount of matched interest rate swaps outstanding at
December 31, 1997 and 1996, respectively, was $1,353.4 million and
$649.9 million. The average unexpired terms at December 31, 1997 ranged
from 1.5 to 3.8 years. At December 31, 1997, the cost of terminating
outstanding matched swaps in a loss position was $10.9 million and the
unrealized gain on outstanding matched swaps in a gain position was
$38.9 million. The Company has no intention of terminating these
contracts prior to maturity. During 1996 and 1995, net gains of $.2
million and $1.4 million, respectively, were recorded in connection with
interest rate swap activity. Equitable Life has implemented an interest
rate cap program designed to hedge crediting rates on interest-sensitive
individual annuities contracts. The outstanding notional amounts at
F-27
<PAGE>
December 31, 1997 of contracts purchased and sold were $7,250.0 million
and $875.0 million, respectively. The net premium paid by Equitable Life
on these contracts was $48.5 million and is being amortized ratably over
the contract periods ranging from 1 to 5 years. Income and expense
resulting from this program are reflected as an adjustment to interest
credited to policyholders' account balances.
Substantially all of DLJ's activities related to derivatives are, by
their nature trading activities which are primarily for the purpose of
customer accommodations. DLJ enters into certain contractual agreements
referred to as derivatives or off-balance-sheet financial instruments
involving futures, forwards and options. DLJ's derivative activities
consist of writing over-the-counter ("OTC") options to accommodate its
customer needs, trading in forward contracts in U.S. government and
agency issued or guaranteed securities and in futures contracts on
equity-based indices, interest rate instruments and currencies and
issuing structured products based on emerging market financial
instruments and indices. DLJ's involvement in swap contracts and
commodity derivative instruments is not significant.
Fair Value of Financial Instruments
The Company defines fair value as the quoted market prices for those
instruments that are actively traded in financial markets. In cases
where quoted market prices are not available, fair values are estimated
using present value or other valuation techniques. The fair value
estimates are made at a specific point in time, based on available
market information and judgments about the financial instrument,
including estimates of the timing and amount of expected future cash
flows and the credit standing of counterparties. Such estimates do not
reflect any premium or discount that could result from offering for sale
at one time the Company's entire holdings of a particular financial
instrument, nor do they consider the tax impact of the realization of
unrealized gains or losses. In many cases, the fair value estimates
cannot be substantiated by comparison to independent markets, nor can
the disclosed value be realized in immediate settlement of the
instrument.
Certain financial instruments are excluded, particularly insurance
liabilities other than financial guarantees and investment contracts.
Fair market value of off-balance-sheet financial instruments of the
Insurance Group was not material at December 31, 1997 and 1996.
Fair values for mortgage loans on real estate are estimated by
discounting future contractual cash flows using interest rates at which
loans with similar characteristics and credit quality would be made.
Fair values for foreclosed mortgage loans and problem mortgage loans are
limited to the estimated fair value of the underlying collateral if
lower.
Fair values of policy loans are estimated by discounting the face value
of the loans from the time of the next interest rate review to the
present, at a rate equal to the excess of the current estimated market
rates over the current interest rate charged on the loan.
The estimated fair values for the Company's association plan contracts,
supplementary contracts not involving life contingencies ("SCNILC") and
annuities certain, which are included in policyholders' account
balances, and guaranteed interest contracts are estimated using
projected cash flows discounted at rates reflecting expected current
offering rates.
The estimated fair values for variable deferred annuities and single
premium deferred annuities ("SPDA"), which are included in
policyholders' account balances, are estimated by discounting the
account value back from the time of the next crediting rate review to
the present, at a rate equal to the excess of current estimated market
rates offered on new policies over the current crediting rates.
F-28
<PAGE>
Fair values for long-term debt is determined using published market
values, where available, or contractual cash flows discounted at market
interest rates. The estimated fair values for non-recourse mortgage debt
are determined by discounting contractual cash flows at a rate which
takes into account the level of current market interest rates and
collateral risk. The estimated fair values for recourse mortgage debt
are determined by discounting contractual cash flows at a rate based
upon current interest rates of other companies with credit ratings
similar to the Company. The Company's carrying value of short-term
borrowings approximates their estimated fair value.
The following table discloses carrying value and estimated fair value
for financial instruments not otherwise disclosed in Notes 3, 6 and 7:
<TABLE>
<CAPTION>
December 31,
--------------------------------------------------------------------
1997 1996
--------------------------------- ---------------------------------
Carrying Estimated Carrying Estimated
Value Fair Value Value Fair Value
--------------- ---------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C> <C>
Consolidated Financial Instruments:
Mortgage loans on real estate.......... $ 2,611.4 $ 2,822.8 $ 3,133.0 $ 3,394.6
Other limited partnership interests.... 509.4 509.4 467.0 467.0
Policy loans........................... 2,422.9 2,493.9 2,196.1 2,221.6
Policyholders' account balances -
investment contracts................. 12,611.0 12,714.0 12,908.7 12,992.2
Long-term debt......................... 1,569.0 1,531.5 1,592.8 1,557.7
Closed Block Financial Instruments:
Mortgage loans on real estate.......... 1,341.6 1,420.7 1,380.7 1,425.6
Other equity investments............... 86.3 86.3 105.0 105.0
Policy loans........................... 1,700.2 1,784.2 1,765.9 1,798.0
SCNILC liability....................... 27.6 30.3 30.6 34.9
Discontinued Operations Financial
Instruments:
Mortgage loans on real estate.......... 655.5 779.9 1,111.1 1,220.3
Fixed maturities....................... 38.7 38.7 42.5 42.5
Other equity investments............... 209.3 209.3 300.5 300.5
Guaranteed interest contracts.......... 37.0 34.0 290.7 300.5
Long-term debt......................... 102.0 102.1 102.1 102.2
</TABLE>
13) COMMITMENTS AND CONTINGENT LIABILITIES
The Company has provided, from time to time, certain guarantees or
commitments to affiliates, investors and others. These arrangements
include commitments by the Company, under certain conditions: to make
capital contributions of up to $202.6 million to affiliated real estate
joint ventures; and to provide equity financing to certain limited
partnerships of $362.1 million at December 31, 1997, under existing loan
or loan commitment agreements.
Equitable Life is the obligor under certain structured settlement
agreements which it had entered into with unaffiliated insurance
companies and beneficiaries. To satisfy its obligations under these
agreements, Equitable Life owns single premium annuities issued by
previously wholly owned life insurance subsidiaries. Equitable Life has
directed payment under these annuities to be made directly to the
beneficiaries under the structured settlement agreements. A contingent
liability exists with respect to these agreements should the previously
wholly owned subsidiaries be unable to meet their obligations.
Management believes the satisfaction of those obligations by Equitable
Life is remote.
The Insurance Group had $47.4 million of letters of credit outstanding
at December 31, 1997.
F-29
<PAGE>
14) LITIGATION
Equitable Life recently agreed to settle, subject to court approval,
previously disclosed cases brought by persons insured under Lifetime
Guaranteed Renewable Major Medical Insurance Policies issued by
Equitable Life (the "Policies") in New York (Golomb et al. v. The
Equitable Life Assurance Society of the United States), Pennsylvania
(Malvin et al. v. The Equitable Life Assurance Society of the United
States), Texas (Bowler et al. v. The Equitable Life Assurance Society of
the United States), Florida (Bachman v. The Equitable Life Assurance
Society of the United States) and California (Fletcher v. The Equitable
Life Assurance Society of the United States). Plaintiffs in these cases
claimed that Equitable Life's method for determining premium increases
breached the terms of certain forms of the Policies and was
misrepresented. Plaintiffs in Bowler and Fletcher also claimed that
Equitable Life misrepresented to policyholders in Texas and California,
respectively, that premium increases had been approved by insurance
departments in those states and determined annual rate increases in a
manner that discriminated against policyholders in those states in
violation of the terms of the Policies, representations to policyholders
and/or state law. The New York trial court dismissed the Golomb action
with prejudice and plaintiffs appealed. In Bowler and Fletcher,
Equitable Life denied the material allegations of the complaints and
filed motions for summary judgment which have been fully briefed. The
Malvin action was stayed indefinitely pending the outcome of proceedings
in Golomb and in Fletcher the magistrate concluded that the case should
be remanded to California state court and Equitable Life appealed that
determination to the district judge. On December 23, 1997, Equitable
Life entered into a settlement agreement, subject to court approval,
which would result in the dismissal with prejudice of each of the five
pending actions and the resolution of all similar claims on a nationwide
basis.
The settlement agreement provides for the creation of a nationwide class
consisting of all persons holding, and paying premiums on, the Policies
at any time since January 1, 1988. An amended complaint will be filed in
the federal district court in Tampa, Florida (where the Florida action
is pending), that would assert claims of the kind previously made in the
cases described above on a nationwide basis, on behalf of policyholders
in the nationwide class, which consists of approximately 127,000 former
and current policyholders. If the settlement is approved, Equitable Life
would pay $14,166,000 in exchange for release of all claims for past
damages on claims of the type described in the five pending actions and
the amended complaint. Costs of administering the settlement and any
attorneys' fees awarded by the court to plaintiffs' counsel would be
deducted from this fund before distribution of the balance to the class.
In addition to this payment, Equitable Life will provide future relief
to current holders of certain forms of the Policies in the form of an
agreement to be embodied in the court's judgment, restricting the
premium increases Equitable Life can seek on these Policies in the
future. The parties estimate the present value of these restrictions at
$23,333,000, before deduction of any attorneys' fees that may be awarded
by the court. The estimate is based on assumptions about future events
that cannot be predicted with certainty and accordingly the actual value
of the future relief may differ. The parties to the settlement shortly
will be asking the court to approve preliminarily the settlement and
settlement class and to permit distribution of notice of the settlement
to policyholders, establish procedures for objections, an opportunity to
opt out of the settlements as it affects past damages, and a court
hearing on whether the settlement should be finally approved. Equitable
Life cannot predict whether the settlement will be approved or, if it is
not approved, the outcome of the pending litigations. As noted,
proceedings in Malvin were stayed indefinitely; proceedings in the other
actions have been stayed or deferred to accommodate the settlement
approval process.
A number of lawsuits have been filed against life and health insurers in
the jurisdictions in which Equitable Life and its subsidiaries do
business involving insurers' sales practices, alleged agent misconduct,
alleged failure to properly supervise agents, and other matters. Some of
the lawsuits have resulted in the award of substantial judgments against
other insurers, including material amounts of punitive damages, or in
substantial settlements. In some states, juries have substantial
discretion in awarding punitive damages. Equitable Life, Equitable
Variable Life Insurance Company ("EVLICO," which was merged into
Equitable Life effective January 1, 1997, but whose existence continues
for certain limited purposes, including the defense of litigation) and
The Equitable of Colorado, Inc. ("EOC"), like other life and health
insurers, from time to time are involved in such litigation. Among
litigations pending against Equitable Life, EVLICO and EOC of the type
referred to in this paragraph are the litigations described in the
following seven paragraphs.
F-30
<PAGE>
An action was instituted on April 6, 1995 against Equitable Life and its
wholly owned subsidiary, EOC, in New York state court, entitled Sidney
C. Cole, et al. v. The Equitable Life Assurance Society of the United
States and The Equitable of Colorado, Inc. The action is brought by the
holders of a joint survivorship whole life policy issued by EOC. The
action purports to be on behalf of a class consisting of all persons who
from January 1, 1984 purchased life insurance policies sold by Equitable
Life and EOC based upon allegedly uniform sales presentations and policy
illustrations. The complaint puts in issue various alleged sales
practices that plaintiffs assert, among other things, misrepresented the
stated number of years that the annual premium would need to be paid.
Plaintiffs seek damages in an unspecified amount, imposition of a
constructive trust, and seek to enjoin Equitable Life and EOC from
engaging in the challenged sales practices. In June 1996, the Court
issued a decision and order dismissing with prejudice plaintiffs' causes
of action for fraud, constructive fraud, breach of fiduciary duty,
negligence, and unjust enrichment, and dismissing without prejudice
plaintiffs' cause of action under the New York State consumer protection
statute. The only remaining causes of action are for breach of contract
and negligent misrepresentation. In April 1997, plaintiffs noticed an
appeal from the court's June 1996 order. Subsequently, Equitable Life
and EOC noticed a cross-appeal from so much of the June 1996 order that
denied their motion to dismiss. Briefing on the appeals is scheduled to
begin on February 23, 1998. In June 1997, plaintiffs filed their
memorandum of law and affidavits in support of their motion for class
certification. That memorandum states that plaintiffs seek to certify a
class solely on their breach of contract claims, and not on their
negligent misrepresentation claim. Plaintiffs' class certification
motion has been fully briefed by the parties and is sub judice. In
August 1997, Equitable Life and EOC moved for summary judgment
dismissing plaintiffs' remaining claims of breach of contract and
negligent misrepresentation. Defendants' summary judgment motion has
been fully briefed by the parties. On January 5, 1998, plaintiffs filed
a note of issue (placing the case on the trial calendar).
On May 21, 1996, an action entitled Elton F. Duncan, III v. The
Equitable Life Assurance Society of the United States was commenced
against Equitable Life in the Civil District Court for the Parish of
Orleans, State of Louisiana. The action originally was brought by an
individual who purchased a whole life policy from Equitable Life in
1989. In September 1997, with leave of the court, plaintiff filed a
second amended petition naming six additional policyholder plaintiffs
and three new sales agent defendants. The sole named individual
defendant in the original petition is also named as a defendant in the
second amended petition. Plaintiffs purport to represent a class
consisting of all persons who purchased whole life or universal life
insurance policies from Equitable Life from January 1, 1981 through July
22, 1992. Plaintiffs allege improper sales practices based on
allegations of misrepresentations concerning one or more of the
following: the number of years that premiums would need to be paid; a
policy's suitability as an investment vehicle; and the extent to which a
policy was a proper replacement policy. Plaintiffs seek damages,
including punitive damages, in an unspecified amount. In October 1997,
Equitable Life filed (i) exceptions to the second amended petition,
asserting deficiencies in pleading of venue and vagueness; and (ii) a
motion to strike certain allegations. On January 23, 1998, the court
heard argument on Equitable Life's exceptions and motion to strike.
Those motions are sub judice. Motion practice regarding discovery
continues.
On July 26, 1996, an action entitled Michael Bradley v. Equitable
Variable Life Insurance Company was commenced in New York state court,
Kings County. The action is brought by the holder of a variable life
insurance policy issued by EVLICO. The plaintiff purports to represent a
class consisting of all persons or entities who purchased one or more
life insurance policies issued by EVLICO from January 1, 1980. The
complaint puts at issue various alleged sales practices and alleges
misrepresentations concerning the extent to which the policy was a
proper replacement policy and the number of years that the annual
premium would need to be paid. Plaintiff seeks damages, including
punitive damages, in an unspecified amount and also seeks injunctive
relief prohibiting EVLICO from canceling policies for failure to make
premium payments beyond the alleged stated number of years that the
annual premium would need to be paid. EVLICO answered the complaint,
denying the material allegations. In September 1996, Equitable Life,
EVLICO and EOC made a motion to have this proceeding moved from Kings
County Supreme Court to New York County for joint trial or consolidation
with the Cole action. The motion was denied by the Court in Cole in
January 1997. Plaintiff then moved for certification of a nationwide
class consisting of all persons or entities who, since January 1, 1980,
were sold one or more life insurance products based on
misrepresentations as to the number of years that the annual premium
would need to be paid, and/or who were allegedly induced to purchase
additional policies from EVLICO using the cash value accumulated in
existing policies. Defendants have opposed this motion. Discovery and
briefing regarding plaintiff's motion for class certification are
ongoing.
F-31
<PAGE>
On December 12, 1996, an action entitled Robert E. Dillon v. The
Equitable Life Assurance Society of the United States and The Equitable
of Colorado, was commenced in the United States District Court for the
Southern District of Florida. The action is brought by an individual who
purchased a joint whole life policy from EOC in 1988. The complaint puts
in issue various alleged sales practices and alleges misrepresentations
concerning the alleged impropriety of replacement policies issued by
Equitable Life and EOC and alleged misrepresentations regarding the
number of years premiums would have to be paid on the defendants'
policies. Plaintiff alleges claims for breach of contract, fraud,
negligent misrepresentation, money had and received, unjust enrichment
and imposition of a constructive trust. Plaintiff purports to represent
two classes of persons. The first is a "contract class," consisting of
all persons who purchased whole or universal life insurance policies
from Equitable Life and EOC and from whom Equitable Life and EOC have
sought additional payments beyond the number of years allegedly promised
by Equitable Life and EOC. The second is a "fraud class," consisting of
all persons with an interest in policies issued by Equitable Life and
EOC at any time since October 1, 1986. Plaintiff seeks damages in an
unspecified amount, and also seeks injunctive relief attaching Equitable
Life's and EOC's profits from their alleged sales practices. In May
1997, plaintiff served a motion for class certification. In July 1997,
the parties submitted to the Court a joint scheduling report, joint
scheduling order and a confidentiality stipulation and order. The Court
signed the latter stipulation, and the others remain sub judice. Further
briefing on plaintiff's class certification motion will await entry of a
scheduling order and further class certification discovery, which has
commenced and is on-going. In January 1998, the judge assigned to the
case recused himself, and the case was reassigned. Defendants are to
serve their answer in February 1998.
On January 3, 1996, an amended complaint was filed in an action entitled
Frank Franze Jr. and George Busher, individually and on behalf of all
others similarly situated v. The Equitable Life Assurance Society of the
United States, and Equitable Variable Life Insurance Company, No.
94-2036 in the United States District Court for the Southern District of
Florida. The action was brought by two individuals who purchased
variable life insurance policies. The plaintiffs purport to represent a
nationwide class consisting of all persons who purchased variable life
insurance policies from Equitable Life and EVLICO since September 30,
1991. The amended complaint alleges that Equitable Life's and EVLICO's
agents were trained not to disclose fully that the product being sold
was life insurance. Plaintiffs allege violations of the Federal
securities laws and seek rescission of the contracts or compensatory
damages and attorneys' fees and expenses. Equitable Life and EVLICO have
answered the amended complaint, denying the material allegations and
asserting certain affirmative defenses. Motion practice regarding
discovery continues.
On January 9, 1997, an action entitled Rosemarie Chaviano, individually
and on behalf of all others similarly situated v. The Equitable Life
Assurance Society of the United States, and Equitable Variable Life
Insurance Company, was filed in Massachusetts state court making claims
similar to those in the Franze action and alleging violations of the
Massachusetts securities laws. The plaintiff purports to represent all
persons in Massachusetts who purchased variable life insurance contracts
from Equitable Life and EVLICO from January 9, 1993 to the present. The
Massachusetts action seeks rescission of the contracts or compensatory
damages, attorneys' fees, expenses and injunctive relief. Plaintiff
filed an amended complaint in April 1997. In July 1997, Equitable Life
served a motion to dismiss the amended complaint or, in the alternative,
for summary judgment. On September 12, 1997, plaintiff moved for class
certification. This motion is scheduled for hearing on February 18,
1998.
On September 11, 1997, an action entitled Pamela L. and James A. Luther,
individually and as representatives of all people similarly situated v.
The Equitable Life Assurance Society of the United States, The Equitable
Companies Incorporated, and Casey Cammack, individually and as agent for
The Equitable Life Assurance Society of the United States and The
Equitable Companies Incorporated, was filed in Texas state court. The
action was brought by holders of a whole life policy and the beneficiary
under that policy. Plaintiffs purport to represent a nationwide class of
persons having an ownership or beneficial interest in whole and
universal life policies issued by Equitable Life from January 1, 1982
through December 31, 1996. Also included in the purported class are
persons having an ownership interest in variable annuities purchased
from Equitable Life from January 1, 1992 to the present. The complaint
puts in issue the allegations that uniform sales presentations,
illustrations, and materials that Equitable Life agents used
misrepresented the stated number of years that premiums would need to be
paid and misrepresented the extent to which the policies at issue were
F-32
<PAGE>
proper replacement policies. Plaintiffs seek compensatory damages,
attorneys' fees and expenses. In October 1997, Equitable Life served a
general denial of the allegations against it. The same day, the Holding
Company entered a special appearance contesting the court's jurisdiction
over it. In November 1997, Equitable Life filed a plea in abatement,
which, under Texas law, stayed further proceedings in the case because
plaintiffs had not served a demand letter. Plaintiffs served a demand
letter upon Equitable Life and the Holding Company, the response to
which is due 60 days thereafter. Although the outcome of litigation
cannot be predicted with certainty, particularly in the early stages of
an action, the Company's management believes that the ultimate
resolution of the Cole, Duncan, Bradley, Dillon, Franze, Chaviano and
Luther litigations should not have a material adverse effect on the
financial position of the Company. The Company's management cannot make
an estimate of loss, if any, or predict whether or not any such
litigation will have a material adverse effect on the Company's results
of operations in any particular period.
On September 12, 1997, the United States District Court for the Northern
District of Alabama, Southern Division, entered an order certifying
James Brown as the representative of a class consisting of "[a]ll
African-Americans who applied but were not hired for, were discouraged
from applying for, or would have applied for the position of Sales Agent
in the absence of the discriminatory practices, and/or procedures in the
[former] Southern Region of The Equitable from May 16, 1987 to the
present." The second amended complaint in James W. Brown, on behalf of
others similarly situated v. The Equitable Life Assurance Society of the
United States, alleges, among other things, that Equitable Life
discriminated on the basis of race against African-American applicants
and potential applicants in hiring individuals as sales agents.
Plaintiffs seek a declaratory judgment and affirmative and negative
injunctive relief, including the payment of back-pay, pension and other
compensation. Although the outcome of any litigation cannot be predicted
with certainty, the Company's management believes that the ultimate
resolution of this matter should not have a material adverse effect on
the financial position of the Company. The Company's management cannot
make an estimate of loss, if any, or predict whether or not such matter
will have a material adverse effect on the Company's results of
operations in any particular period.
The U.S. Department of Labor ("DOL") is conducting an investigation of
Equitable Life's management of the Prime Property Fund ("PPF"). PPF is
an open-end, commingled real estate separate account of Equitable Life
for pension clients. Equitable Life serves as investment manager in PPF
and retains EREIM as advisor. Equitable Life agreed to indemnify the
purchaser of EREIM (which Equitable Life sold in June 1997) with respect
to any fines, penalties and rebates to clients in connection with this
investigation. In early 1995, the DOL commenced a national investigation
of commingled real estate funds with pension investors, including PPF.
The investigation appears to be focused principally on appraisal and
valuation procedures in respect of fund properties. The most recent
request from the DOL seems to reflect, at least in part, an interest in
the relationship between the valuations for those properties reflected
in appraisals prepared for local property tax proceedings and the
valuations used by PPF for other purposes. At no time has the DOL made
any specific allegation that Equitable Life or EREIM has acted
improperly and Equitable Life and EREIM believe that any such allegation
would be without foundation. While the outcome of this investigation
cannot be predicted with certainty, the Company's management believes
that the ultimate resolution of this matter should not have a material
adverse effect on the financial position of the Company. The Company's
management cannot make an estimate of loss, if any, or predict whether
or not this investigation will have a material adverse effect on the
Company's results of operations in any particular period.
On July 25, 1995, a Consolidated and Supplemental Class Action Complaint
("Complaint") was filed against Alliance North American Government
Income Trust, Inc. (the "Fund"), Alliance and certain other defendants
affiliated with Alliance, including the Holding Company, alleging
violations of Federal securities laws, fraud and breach of fiduciary
duty in connection with the Fund's investments in Mexican and Argentine
securities. The Complaint, which sought certification of a plaintiff
class of persons who purchased or owned Class A, B or C shares of the
Fund from March 27, 1992 through December 23, 1994, sought an
unspecified amount of damages, costs, attorneys' fees and punitive
damages. The principal allegations are that the Fund purchased debt
securities issued by the Mexican and Argentine governments in amounts
that were not permitted by the Fund's investment objective, and that
there was no shareholder vote to change the investment objective to
permit purchases in such amounts. The Complaint further alleged that the
decline in the value of the Mexican and Argentine securities held by the
Fund caused the Fund's net asset value to decline to the detriment of
the Fund's shareholders. On September 26, 1996, the United States
District Court for the Southern District of
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<PAGE>
New York granted the defendants' motion to dismiss all counts of the
Complaint ("First Decision"). On October 11, 1996, plaintiffs filed a
motion for reconsideration of the First Decision. On November 25, 1996,
the court denied plaintiffs' motion for reconsideration of the First
Decision. On October 29, 1997, the United States Court of Appeals for
the Second Circuit issued an order granting defendants' motion to strike
and dismissing plaintiffs' appeal of the First Decision. On October 29,
1996, plaintiffs filed a motion for leave to file an amended complaint.
The principal allegations of the proposed amended complaint are that (i)
the Fund failed to hedge against the risks of investing in foreign
securities despite representations that it would do so, (ii) the Fund
did not properly disclose that it planned to invest in mortgage-backed
derivative securities and (iii) two advertisements used by the Fund
misrepresented the risks of investing in the Fund. On July 15, 1997, the
District Court denied plaintiffs' motion for leave to file an amended
complaint and ordered that the case be dismissed ("Second Decision").
The plaintiffs have appealed the Second Decision to the United States
Court of Appeals for the Second Circuit. While the ultimate outcome of
this matter cannot be determined at this time, management of Alliance
does not expect that it will have a material adverse effect on
Alliance's results of operations or financial condition.
On January 26, 1996, a purported purchaser of certain notes and warrants
to purchase shares of common stock of Rickel Home Centers, Inc.
("Rickel") filed a class action complaint against Donaldson, Lufkin &
Jenrette Securities Corporation ("DLJSC") and certain other defendants
for unspecified compensatory and punitive damages in the U. S. District
Court for the Southern District of New York. The suit was brought on
behalf of the purchasers of 126,457 units consisting of $126,457,000
aggregate principal amount of 13 1/2% senior notes due 2001 and 126,457
warrants to purchase shares of common stock of Rickel issued by Rickel
in October 1994. The complaint alleges violations of federal securities
laws and common law fraud against DLJSC, as the underwriter of the units
and as an owner of 7.3% of the common stock of Rickel, Eos Partners,
L.P., and General Electric Capital Corporation, each as owners of 44.2%
of the common stock of Rickel, and members of the board of directors of
Rickel, including a DLJSC managing director. The complaint seeks to hold
DLJSC liable for alleged misstatements and omissions contained in the
prospectus and registration statement filed in connection with the
offering of the units, alleging that the defendants knew of financial
losses and a decline in value of Rickel in the months prior to the
offering and did not disclose such information. The complaint also
alleges that Rickel failed to pay its semi-annual interest payment due
on the units on December 15, 1995, and that Rickel filed a voluntary
petition for reorganization pursuant to Chapter 11 of the Bankruptcy
Code on January 10, 1996. DLJSC intends to defend itself vigorously
against all of the allegations contained in the complaint. Although
there can be no assurance, DLJ does not believe that the outcome of this
litigation will have a material adverse effect on its financial
condition. Due to the early stage of this litigation, based on the
information currently available to it, DLJ's management cannot make an
estimate of loss, if any, or predict whether or not such litigation will
have a material adverse effect on DLJ's results of operations in any
particular period.
In October 1995, DLJSC was named as a defendant in a purported class
action filed in a Texas State Court on behalf of the holders of $550.0
million principal amount of subordinated redeemable discount debentures
of National Gypsum Corporation ("NGC") canceled in connection with a
Chapter 11 plan of reorganization for NGC consummated in July 1993. The
named plaintiff in the State Court action also filed an adversary
proceeding in the U.S. Bankruptcy Court for the Northern District of
Texas seeking a declaratory judgment that the confirmed NGC plan of
reorganization does not bar the class action claims. Subsequent to the
consummation of NGC's plan of reorganization, NGC's shares traded for
values substantially in excess of, and in 1995 NGC was acquired for a
value substantially in excess of, the values upon which NGC's plan of
reorganization was based. The two actions arise out of DLJSC's
activities as financial advisor to NGC in the course of NGC's Chapter 11
reorganization proceedings. The class action complaint alleges that the
plan of reorganization submitted by NGC was based upon projections by
NGC and DLJSC which intentionally understated forecasts, and provided
misleading and incorrect information in order to hide NGC's true value
and that defendants breached their fiduciary duties by, among other
things, providing false, misleading or incomplete information to
deliberately understate the value of NGC. The class action complaint
seeks compensatory and punitive damages purportedly sustained by the
class. On October 10, 1997, DLJSC and
F-34
<PAGE>
others were named as defendants in a new adversary proceeding in the
Bankruptcy Court brought by the NGC Settlement Trust, an entity created
by the NGC plan of reorganization to deal with asbestos-related claims.
The Trust's allegations are substantially similar to the claims in the
State Court action. In court papers dated October 16, 1997, the State
Court plaintiff indicated that he would intervene in the Trust's
adversary proceeding. On January 21, 1998, the Bankruptcy Court ruled
that the State Court plaintiff's claims were not barred by the NGC plan
of reorganization insofar as they alleged nondisclosure of certain cost
reductions announced by NGC in October 1993. The Texas State Court
action, which had been removed to the Bankruptcy Court, has been
remanded back to the state court, which remand is being opposed by
DLJSC. DLJSC intends to defend itself vigorously against all of the
allegations contained in the complaints. Although there can be no
assurance, DLJ does not believe that the ultimate outcome of this
litigation will have a material adverse effect on its financial
condition. Due to the early stage of such litigation, based upon the
information currently available to it, DLJ's management cannot make an
estimate of loss, if any, or predict whether or not such litigation will
have a material adverse effect on DLJ's results of operations in any
particular period.
In November and December 1995, DLJSC, along with various other parties,
was named as a defendant in a number of purported class actions filed in
the U.S. District Court for the Eastern District of Louisiana. The
complaints allege violations of the federal securities laws arising out
of a public offering in 1994 of $435.0 million of first mortgage notes
of Harrah's Jazz Company and Harrah's Jazz Finance Corp. The complaints
seek to hold DLJSC liable for various alleged misstatements and
omissions contained in the prospectus dated November 9, 1994. On
February 26, 1997, the parties agreed to a settlement of these actions,
subject to the District Court's approval, which was granted on July 31,
1997. The settlement is also subject to approval by the U.S. Bankruptcy
Court for the Eastern District of Louisiana of proposed modifications to
a confirmed plan of reorganization for Harrah's Jazz Company and
Harrah's Jazz Finance Corp., and the satisfaction or waiver of all
conditions to the effectiveness of the plan, as provided in the plan.
There can be no assurance of the Bankruptcy Court's approval of the
modifications to the plan of reorganization, or that the conditions to
the effectiveness of the plan will be satisfied or waived. In the
opinion of DLJ's management, the settlement, if approved, will not have
a material adverse effect on DLJ's results of operations or on its
consolidated financial condition.
In addition to the matters described above, Equitable Life and its
subsidiaries and DLJ and its subsidiaries are involved in various legal
actions and proceedings in connection with their businesses. Some of the
actions and proceedings have been brought on behalf of various alleged
classes of claimants and certain of these claimants seek damages of
unspecified amounts. While the ultimate outcome of such matters cannot
be predicted with certainty, in the opinion of management no such matter
is likely to have a material adverse effect on the Company's
consolidated financial position or results of operations.
15) LEASES
The Company has entered into operating leases for office space and
certain other assets, principally data processing equipment and office
furniture and equipment. Future minimum payments under noncancelable
leases for 1998 and the succeeding four years are $93.5 million, $84.4
million, $70.2 million, $56.4 million, $47.0 million and $489.3 million
thereafter. Minimum future sub-lease rental income on these
noncancelable leases for 1998 and the succeeding four years are $7.3
million, $5.9 million, $3.8 million, $2.4 million, $.8 million and $2.9
million thereafter.
At December 31, 1997, the minimum future rental income on noncancelable
operating leases for wholly owned investments in real estate for 1997
and the succeeding four years are $247.0 million, $238.1 million, $218.7
million, $197.9 million, $169.1 million and $813.0 million thereafter.
F-35
<PAGE>
16) OTHER OPERATING COSTS AND EXPENSES
Other operating costs and expenses consisted of the following:
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Compensation costs................................. $ 721.5 $ 704.8 $ 628.4
Commissions........................................ 409.6 329.5 314.3
Short-term debt interest expense................... 31.7 8.0 11.4
Long-term debt interest expense.................... 121.2 137.3 108.1
Amortization of policy acquisition costs........... 287.3 405.2 317.8
Capitalization of policy acquisition costs......... (508.0) (391.9) (391.0)
Rent expense, net of sub-lease income.............. 101.8 113.7 109.3
Cursitor intangible assets writedown............... 120.9 - -
Other.............................................. 917.9 769.1 677.5
----------------- ---------------- -----------------
Total.............................................. $ 2,203.9 $ 2,075.7 $ 1,775.8
================= ================ =================
</TABLE>
During 1997, 1996 and 1995, the Company restructured certain operations
in connection with cost reduction programs and recorded pre-tax
provisions of $42.4 million, $24.4 million and $32.0 million,
respectively. The amounts paid during 1997, associated with cost
reduction programs, totaled $22.8 million. At December 31, 1997, the
liabilities associated with cost reduction programs amounted to $62.0
million. The 1997 cost reduction program include costs related to
employee termination and exit costs. The 1996 cost reduction program
included restructuring costs related to the consolidation of insurance
operations' service centers. The 1995 cost reduction program included
relocation expenses, including the accelerated amortization of building
improvements associated with the relocation of the home office.
Amortization of DAC in 1996 included a $145.0 million writeoff of DAC
related to DI contracts.
17) INSURANCE GROUP STATUTORY FINANCIAL INFORMATION
Equitable Life is restricted as to the amounts it may pay as dividends
to the Holding Company. Under the New York Insurance Law, the
Superintendent has broad discretion to determine whether the financial
condition of a stock life insurance company would support the payment of
dividends to its shareholders. For 1997, 1996 and 1995, statutory net
loss totaled $351.7 million, $351.1 million and $352.4 million,
respectively. No amounts are expected to be available for dividends from
Equitable Life to the Holding Company in 1998.
At December 31, 1997, the Insurance Group, in accordance with various
government and state regulations, had $19.7 million of securities
deposited with such government or state agencies.
F-36
<PAGE>
Accounting practices used to prepare statutory financial statements for
regulatory filings of stock life insurance companies differ in certain
instances from GAAP. The following reconciles the Insurance Group's
statutory change in surplus and capital stock and statutory surplus and
capital stock determined in accordance with accounting practices
prescribed by the New York Insurance Department with net earnings and
equity on a GAAP basis.
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Net change in statutory surplus and
capital stock.................................... $ 203.6 $ 56.0 $ 78.1
Change in asset valuation reserves................. 147.1 (48.4) 365.7
----------------- ---------------- -----------------
Net change in statutory surplus, capital stock
and asset valuation reserves..................... 350.7 7.6 443.8
Adjustments:
Future policy benefits and policyholders'
account balances............................... (31.1) (298.5) (66.0)
DAC.............................................. 220.7 (13.3) 73.2
Deferred Federal income taxes.................... 103.1 108.0 (158.1)
Valuation of investments......................... 46.8 289.8 189.1
Valuation of investment subsidiary............... (555.8) (117.7) (188.6)
Limited risk reinsurance......................... 82.3 92.5 416.9
Issuance of surplus notes........................ - - (538.9)
Postretirement benefits.......................... (3.1) 28.9 (26.7)
Other, net....................................... 30.3 12.4 115.1
GAAP adjustments of Closed Block................. 3.6 (9.8) 15.7
GAAP adjustments of discontinued operations...... 189.7 (89.6) 37.3
----------------- ---------------- -----------------
Net Earnings of the Insurance Group................ $ 437.2 $ 10.3 $ 312.8
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
December 31,
--------------------------------------------------------
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Statutory surplus and capital stock................ $ 2,462.5 $ 2,258.9 $ 2,202.9
Asset valuation reserves........................... 1,444.6 1,297.5 1,345.9
----------------- ---------------- -----------------
Statutory surplus, capital stock and asset
valuation reserves............................... 3,907.1 3,556.4 3,548.8
Adjustments:
Future policy benefits and policyholders'
account balances............................... (1,336.1) (1,305.0) (1,006.5)
DAC.............................................. 3,236.6 3,104.9 3,075.8
Deferred Federal income taxes.................... (370.8) (306.1) (452.0)
Valuation of investments......................... 783.5 286.8 417.7
Valuation of investment subsidiary............... (1,338.6) (782.8) (665.1)
Limited risk reinsurance......................... (254.2) (336.5) (429.0)
Issuance of surplus notes........................ (539.0) (539.0) (538.9)
Postretirement benefits.......................... (317.5) (314.4) (343.3)
Other, net....................................... 203.7 126.3 4.4
GAAP adjustments of Closed Block................. 814.3 783.7 830.8
GAAP adjustments of discontinued operations...... 71.5 (190.3) (184.6)
----------------- ---------------- -----------------
Equity of the Insurance Group...................... $ 4,860.5 $ 4,084.0 $ 4,258.1
================= ================ =================
</TABLE>
F-37
<PAGE>
18) BUSINESS SEGMENT INFORMATION
The Company has two major business segments: Insurance Operations and
Investment Services. Interest expense related to debt not specific to
either business segment is presented as Corporate interest expense.
Information for all periods is presented on a comparable basis.
Insurance Operations offers a variety of traditional, variable and
interest-sensitive life insurance products, disability income, annuity
products, mutual fund and other investment products to individuals and
small groups and administers traditional participating group annuity
contracts with conversion features, generally for corporate qualified
pension plans, and association plans which provide full service
retirement programs for individuals affiliated with professional and
trade associations. This segment includes Separate Accounts for
individual insurance and annuity products.
Investment Services provides investment fund management, primarily to
institutional clients. This segment includes the Company's equity
interest in DLJ and Separate Accounts which provide various investment
options for group clients through pooled or single group accounts.
Intersegment investment advisory and other fees of approximately $81.9
million, $127.5 million and $124.1 million for 1997, 1996 and 1995,
respectively, are included in total revenues of the Investment Services
segment. These fees, excluding amounts related to the GIC Segment of
$5.1 million, $15.7 million and $14.7 million for 1997, 1996 and 1995,
respectively, are eliminated in consolidation.
<TABLE>
<CAPTION>
1997 1996 1995
----------------- ---------------- -----------------
(In Millions)
<S> <C> <C> <C>
Revenues
Insurance operations............................... $ 3,684.2 $ 3,770.6 $ 3,614.6
Investment services................................ 1,455.1 1,126.1 949.1
Consolidation/elimination.......................... (19.9) (24.5) (34.9)
----------------- ---------------- -----------------
Total.............................................. $ 5,119.4 $ 4,872.2 $ 4,528.8
================= ================ =================
Earnings (loss) from continuing operations before Federal income taxes,
minority interest and cumulative effect of accounting change
Insurance operations............................... $ 250.3 $ (36.6) $ 303.1
Investment services................................ 485.7 311.9 224.0
Consolidation/elimination.......................... - .2 (3.1)
----------------- ---------------- -----------------
Subtotal..................................... 736.0 275.5 524.0
Corporate interest expense......................... (65.3) (66.9) (27.9)
----------------- ---------------- -----------------
Total.............................................. $ 670.7 $ 208.6 $ 496.1
================= ================ =================
</TABLE>
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
Assets
Insurance operations................................................... $ 68,305.9 $ 60,464.9
Investment services.................................................... 13,719.8 13,542.5
Consolidation/elimination.............................................. (403.6) (399.6)
---------------- -----------------
Total.................................................................. $ 81,622.1 $ 73,607.8
================ =================
</TABLE>
F-38
<PAGE>
19) QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)
The quarterly results of operations for 1997 and 1996, are summarized
below:
<TABLE>
<CAPTION>
Three Months Ended
------------------------------------------------------------------------------
March 31 June 30 September 30 December 31
----------------- ----------------- ------------------ ------------------
(In Millions)
<S> <C> <C> <C> <C>
1997
Total Revenues................ $ 1,266.0 $ 1,552.8 $ 1,279.0 $ 1,021.6
================= ================= ================== ==================
Earnings from Continuing
Operations before
Cumulative Effect
of Accounting Change........ $ 117.4 $ 222.5 $ 145.1 $ 39.4
================= ================= ================== ==================
Net Earnings (Loss)........... $ 114.1 $ 223.1 $ 144.9 $ (44.9)
================= ================= ================== ==================
1996
Total Revenues................ $ 1,176.5 $ 1,199.4 $ 1,198.4 $ 1,297.9
================= ================= ================== ==================
Earnings (Loss) from
Continuing Operations
before Cumulative Effect
of Accounting Change........ $ 94.8 $ 87.1 $ 93.2 $ (157.9)
================= ================= ================== ==================
Net Earnings (Loss)........... $ 71.7 $ 87.1 $ 93.2 $ (241.7)
================= ================= ================== ==================
</TABLE>
Net earnings for the three months ended December 31, 1997 includes a
charge of $212.0 million related to additions to valuation allowances on
and writeoffs of real estate of $225.2 million, and reserve
strengthening on discontinued operations of $84.3 million offset by a
reversal of prior years tax reserves of $97.5 million. Net earnings for
the three months ended December 31, 1996 includes a charge of $339.3
million related to writeoffs of DAC on DI contracts of $94.3 million and
reserve strengthenings on DI business of $113.7 million, Pension Par of
$47.5 million and Discontinued Operations of $83.8 million.
20) INVESTMENT IN DLJ
At December 31, 1997, the Company's ownership of DLJ interest was
approximately 34.4%. The Company's ownership interest will be further
reduced upon the issuance of common stock after the vesting of
forfeitable restricted stock units acquired by and/or the exercise of
options granted to certain DLJ employees. DLJ restricted stock units
represents forfeitable rights to receive approximately 5.2 million
shares of DLJ common stock through February 2000.
The results of operations of DLJ are accounted for on the equity basis
and are included in commissions, fees and other income in the
consolidated statements of earnings. The Company's carrying value of DLJ
is included in investment in and loans to affiliates in the consolidated
balance sheets.
F-39
<PAGE>
Summarized balance sheets information for DLJ, reconciled to the
Company's carrying value of DLJ, are as follows:
<TABLE>
<CAPTION>
December 31,
------------------------------------
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
Assets:
Trading account securities, at market value............................ $ 16,535.7 $ 15,728.1
Securities purchased under resale agreements........................... 22,628.8 20,598.7
Broker-dealer related receivables...................................... 28,159.3 16,858.8
Other assets........................................................... 3,182.0 2,318.1
---------------- -----------------
Total Assets........................................................... $ 70,505.8 $ 55,503.7
================ =================
Liabilities:
Securities sold under repurchase agreements............................ $ 36,006.7 $ 29,378.3
Broker-dealer related payables......................................... 25,706.1 19,409.7
Short-term and long-term debt.......................................... 3,670.6 2,704.5
Other liabilities...................................................... 2,860.9 2,164.0
---------------- -----------------
Total liabilities...................................................... 68,244.3 53,656.5
DLJ's company-obligated mandatorily redeemed preferred
securities of subsidiary trust holding solely debentures of DLJ...... 200.0 200.0
Total shareholders' equity............................................. 2,061.5 1,647.2
---------------- -----------------
Total Liabilities, Cumulative Exchangeable Preferred Stock and
Shareholders' Equity................................................. $ 70,505.8 $ 55,503.7
================ =================
DLJ's equity as reported............................................... $ 2,061.5 $ 1,647.2
Unamortized cost in excess of net assets acquired in 1985
and other adjustments................................................ 23.5 23.9
The Holding Company's equity ownership in DLJ.......................... (740.2) (590.2)
Minority interest in DLJ............................................... (729.3) (588.6)
---------------- -----------------
The Company's Carrying Value of DLJ.................................... $ 615.5 $ 492.3
================ =================
</TABLE>
Summarized statements of earnings information for DLJ reconciled to the
Company's equity in earnings of DLJ is as follows:
<TABLE>
<CAPTION>
1997 1996
---------------- -----------------
(In Millions)
<S> <C> <C>
Commission, fees and other income...................................... $ 2,356.8 $ 1,818.2
Net investment income.................................................. 1,652.1 1,074.2
Dealer, trading and investment gains, net.............................. 631.6 598.4
---------------- -----------------
Total revenues......................................................... 4,640.5 3,490.8
Total expenses including income taxes.................................. 4,232.3 3,199.5
---------------- -----------------
Net earnings........................................................... 408.2 291.3
Dividends on preferred stock........................................... 12.1 18.7
---------------- -----------------
Earnings Applicable to Common Shares................................... $ 396.1 $ 272.6
================ =================
DLJ's earnings applicable to common shares as reported................. $ 396.1 $ 272.6
Amortization of cost in excess of net assets acquired in 1985.......... (1.3) (3.1)
The Holding Company's equity in DLJ's earnings......................... (156.8) (107.8)
Minority interest in DLJ............................................... (109.1) (73.4)
---------------- -----------------
The Company's Equity in DLJ's Earnings................................. $ 128.9 $ 88.3
================ =================
</TABLE>
F-40
<PAGE>
21) ACCOUNTING FOR STOCK-BASED COMPENSATION
The Holding Company sponsors a stock option plan for employees of
Equitable Life. DLJ and Alliance each sponsor their own stock option
plans for certain employees. The Company has elected to continue to
account for stock-based compensation using the intrinsic value method
prescribed in APB No. 25. Had compensation expense for the Holding
Company, DLJ and Alliance Stock Option Incentive Plan options been
determined based on SFAS No. 123's fair value based method, the
Company's pro forma net earnings for 1997, 1996 and 1995 would have
been:
<TABLE>
<CAPTION>
1997 1996 1995
--------------- --------------- ---------------
(In Millions)
<S> <C> <C> <C>
Net Earnings:
As Reported............................................. $ 437.2 $ 10.3 $ 312.8
Pro Forma............................................... $ 426.3 $ 3.3 $ 311.3
</TABLE>
The fair value of options granted after December 31, 1994, used as a
basis for the above pro forma disclosures, was estimated as of the date
of grants using the Black-Scholes option pricing model. The option
pricing assumptions for 1997, 1996 and 1995 are as follows:
<TABLE>
<CAPTION>
Holding Company DLJ Alliance
------------------------------ ------------------------------- ----------------------------------
1997 1996 1995 1997 1996 1995 1997 1996 1995
-------------------- --------- ---------- ---------- --------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Dividend yield.... 0.48% 0.80% 0.96% 0.86% 1.54% 1.85% 8.00% 8.00% 8.00%
Expected volatility 20.00% 20.00% 20.00% 33.00% 25.00% 25.00% 26.00% 23.00% 23.00%
Risk-free interest
rate............ 5.99% 5.92% 6.83% 5.96% 6.07% 5.86% 5.70% 5.80% 6.00%
Expected life..... 5 years 5 years 5 years 5 years 5 years 5 years 7.6 years 7.43 years 7.43 years
Weighted average
grant-date fair
value per option $12.25 $6.94 $5.90 $22.45 $9.35 $7.36 $4.36 $2.69 $2.24
</TABLE>
F-41
<PAGE>
A summary of the Holding Company, DLJ and Alliance's option plans is as
follows:
<TABLE>
<CAPTION>
Holding Company DLJ Alliance
----------------------------- ----------------------------- -----------------------------
Options Options Options
Outstanding Outstanding Outstanding
Weighted Weighted Weighted
Average Average Average
Shares Exercise Shares Exercise Units Exercise
(In Millions) Price (In Millions) Price (In Millions) Price
--------------- ------------- --------------- ------------- -----------------------------
<S> <C> <C> <C> <C> <C> <C>
Balance as of
January 1, 1995........ 6.8 $20.31 - 3.8 $15.46
Granted................ .4 $20.27 9.2 $27.00 1.8 $20.54
Exercised.............. (.1) $20.00 - (.5) $11.20
Expired................ (.1) $20.00 - -
Forfeited.............. (.3) $22.24 - (.3) $16.64
--------------- ------------- ---------------
Balance as of
December 31, 1995...... 6.7 $20.27 9.2 $27.00 4.8 $17.72
Granted................ .7 $24.94 2.1 $32.54 .7 $25.12
Exercised.............. (.1) $19.91 - (.4) $13.64
Expired................ - - -
Forfeited.............. (.6) $20.21 (.2) $27.00 (.1) $19.32
--------------- ------------- ---------------
Balance as of
December 31, 1996...... 6.7 $20.79 11.1 $28.06 5.0 $19.07
Granted................ 3.2 $41.85 3.2 $61.07 1.1 $36.56
Exercised.............. (1.6) $20.26 (.1) $32.03 (.6) $16.11
Forfeited.............. (.4) $23.43 (.1) $27.51 (.2) $21.28
--------------- ------------- ---------------
Balance as of
December 31, 1997...... 7.9 $29.05 14.1 $35.56 5.3 $22.82
=============== ============= ===============
</TABLE>
F-42
<PAGE>
Information about options outstanding and exercisable at December 31,
1997 is as follows:
<TABLE>
<CAPTION>
Options Outstanding Options Exercisable
---------------------------------------------------- ------------------------------------
Weighted
Average Weighted Weighted
Range of Number Remaining Average Number Average
Exercise Outstanding Contractual Exercise Exercisable Exercise
Prices (In Millions) Life (Years) Price (In Millions) Price
--------------------- ----------------- ----------------- --------------- ------------------- ----------------
Holding
Company
----------------------
<S> <C> <C> <C> <C> <C>
$18.125 -$27.75 4.8 5.84 $20.94 3.0 $20.41
$28.50 -$45.25 3.1 9.57 $41.84 - -
----------------- -------------------
$18.125 -$45.25 7.9 7.29 $29.05 3.0 $20.41
================= ================= =============== =================== ================
DLJ
----------------------
$27.00 -$35.99 10.9 8.0 $28.05 4.9 $27.58
$36.00 -$50.99 .8 9.3 $40.04 - -
$51.00 -$76.00 2.4 9.8 $67.77 - -
----------------- -------------------
$27.00 -$76.00 14.1 8.4 $35.56 4.9 $27.58
================= ================= ================ =================== =================
Alliance
----------------------
$ 6.0625 -$17.75 1.1 3.86 $13.20 1.0 $13.04
$19.375 -$19.75 .8 7.34 $19.39 .3 $19.39
$19.875 -$21.375 1.1 8.28 $20.13 .6 $20.19
$22.25 -$27.50 1.3 9.81 $23.81 .4 $23.29
$36.9375 -$37.5625 1.0 9.95 $36.95 - -
----------------- -------------------
$ 6.0625 -$37.5625 5.3 7.58 $22.82 2.3 $17.43
================= ================== ============== ====================== =============
</TABLE>
F-43
<PAGE>
PART C
OTHER INFORMATION
-----------------
Item 24. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements included in Part B.
1. Separate Account A:
-------------------
-Report of Independent Accountants; Price Waterhouse LLP
-Statements of Assets and Liabilities for the Year Ended
December 31, 1997;
-Statements of Operations for the Year Ended December 31, 1997;
-Statements of Changes in Net Assets for the Years Ended
December 31, 1997 and 1996;
-Notes to Financial Statements.
2. The Equitable Life Assurance Society of the United States:
----------------------------------------------------------
-Report of Independent Accountants; Price Waterhouse LLP
-Consolidated Balance Sheets as of December 31, 1997 and 1996;
-Consolidated Statements of Earnings for Years Ended
December 31, 1997, 1996 and 1995;
-Consolidated Statements of Equity for Years Ended
December 31, 1997, 1996 and 1995;
-Consolidated Statements of Cash Flows for Years Ended
December 31, 1997, 1996 and 1995; and
-Notes to Consolidated Financial Statements.
(b) Exhibits.
The following exhibits are filed herewith:
1. (a) Resolutions of the Board of Directors of The Equitable Life
Assurance Society of the United States ("Equitable") authorizing
the establishment of the Registrant, previously filed with this
Registration Statement No. 333-19925 on January 17, 1997.
(b) Resolutions of the Board of Directors of Equitable dated October
16, 1986 authorizing the reorganization of Separate Accounts A,
C, D, E, J and K into one continuing separate account,
previously filed with this Registration Statement No. 333-19925
on January 17, 1997.
2. Not applicable.
3. Sales Agreement among Equitable, Separate Account A and
Equico Securities, Inc. (name changed to EQ Financial
Consultants, Inc.) as principal underwriter for The Hudson
River Trust, previously filed with this Registration
Statement No. 333-19925 on January 17, 1997.
4. Forms of Variable Immediate Annuity contracts, previously
C-1
<PAGE>
filed with this Registration Statement No. 333-19925 on
January 17, 1997.
5. Form of application, previously filed with this
Registration Statement No. 333-19925 on January 17, 1997.
6. (a) Copy of the Restated Charter of Equitable, adopted August 6,
1992, previously filed with this Registration Statement No.
333-19925 on January 17, 1997.
(b) Copy of the Certificate of Amendment of the Restated Charter of
Equitable, adopted November 18, 1993, previously filed with this
Registration Statement No. 333-19925 on January 17, 1997.
(c) By-Laws of Equitable, as amended through July 22, 1992,
previously filed with this Registration Statement No. 333-19925
on January 17, 1997.
(d) By-Laws of Equitable, as amended November 21, 1996, previously
filed with this Registration Statement on Form N-4
(File No. 333-19925) on August 19, 1997.
(e) Copy of the Restated Charter of Equitable, as amended January 1,
1997, previously filed with this Registration Statement on Form
N-4 (File No. 333-19925) on August 19, 1997.
7. Not applicable.
8. Not applicable.
9. Opinion and Consent of Anthony A. Dreyspool, Esq., Vice President
and Associate General Counsel of Equitable, as to the legality of
the securities being registered, previously filed with this
Registration Statement on Form N-4 (File No. 333-19925) on August
19, 1997.
10. (a) Consent of Price Waterhouse LLP.
(b) Powers of Attorney.
11. Not applicable.
12. Not applicable.
13. Not applicable.
C-2
<PAGE>
Item 25: Directors and Officers of Equitable.
------------------------------------
Set forth below is information regarding the directors and
principal officers of Equitable. Equitable's address is 1290
Avenue of the Americas, New York, New York 10104. The business
address of the persons whose names are preceded by an asterisk
is that of Equitable.
Positions and
Name and Principal Offices with
Business Address Equitable
- ---------------- ---------
Directors
Francoise Colloc'h Director
AXA-UAP
23, Avenue Matignon
75008 Paris, France
Henri de Castries Director
AXA-UAP
23, Avenue Matignon
75008 Paris, France
Joseph L. Dionne Director
The McGraw-Hill Companies
1221 Avenue of the Americas
New York, NY 10020
Denis Duverne Director
AXA-UAP
23, Avenue Matignon
75008 Paris, France
William T. Esrey Director
Sprint Corporation
P.O. Box 11315
Kansas City, MO 64112
Jean-Rene Fourtou Director
Rhone-Poulenc S.A.
25 Quai Paul Doumer
92408 Courbevoie Cedex,
France
Norman C. Francis Director
Xavier University of Louisiana
7325 Palmetto Street
New Orleans, LA 70125
C-3
<PAGE>
Positions and
Name and Principal Offices with
Business Address Equitable
- ---------------- ---------
Donald J. Greene Director
LeBouef, Lamb, Greene & MacRae
125 West 55th Street
New York, NY 10019-4513
John T. Hartley Director
Harris Corporation
1025 NASA Boulevard
Melbourne, FL 32919
John H.F. Haskell, Jr. Director
Dillon, Read & Co., Inc.
535 Madison Avenue
New York, NY 10028
Mary R. (Nina) Henderson Director
Bestfoods Grocery
BESTFOODS
International Plaza
700 Sylvan Avenue
Englewood Cliffs, NJ 07632-9976
W. Edwin Jarmain Director
Jarmain Group Inc.
121 King Street West
Suite 2525
Toronto, Ontario M5H 3T9,
Canada
G. Donald Johnston, Jr. Director
184-400 Ocean Road
John's Island
Vero Beach, FL 32963
George T. Lowy Director
Cravath, Swaine & Moore
825 Eighth Avenue
New York, NY 10019
C-4
<PAGE>
Positions and
Name and Principal Offices with
Business Address Equitable
- ---------------- ---------
Didier Pineau-Valencienne Director
Schneider S.A.
64-70 Avenue Jean-Baptiste Clement
92646 Boulogne-Billancourt Cedex
France
George J. Sella, Jr. Director
P.O. Box 397
Newton, NJ 07860
Dave H. Williams Director
Alliance Capital Management Corporation
1345 Avenue of the Americas
New York, NY 10105
Officer-Directors
- -----------------
*Michael Hegarty President, Chief Operating Officer and
Director
Chairman of the Board and Director
*Edward D. Miller President, Chief Executive Officer and
Director
Stanley B. Tulin Vice Chairman of the Board, Chief
Financial Officer and Director
Other Officers
- --------------
*Leon Billis Senior Vice President
*Harvey Blitz Senior Vice President and Deputy
Chief Financial Officer
*Kevin R. Byrne Senior Vice President and Treasurer
*Alvin H. Fenichel Senior Vice President and
Controller
*Paul J. Flora Senior Vice President and Auditor
C-5
<PAGE>
Positions and
Name and Principal Offices with
Business Address Equitable
- ---------------- ---------
*Robert E. Garber Executive Vice President and General
Counsel
*James D. Goodwin Vice President
*Edward J. Hayes Senior Vice President
*Mark A. Hug Senior Vice President
*Donald R. Kaplan Vice President and Chief Compliance
Officer and Associate General Counsel
*Michael S. Martin Senior Vice President
*Douglas Menkes Senior Vice President and Corporate
Actuary
*Peter D. Noris Executive Vice President and Chief
Investment Officer
*Anthony C. Pasquale Senior Vice President
*Pauline Sherman Vice President, Secretary and
Associate General Counsel
*Samuel B. Shlesinger Senior Vice President
*Richard V. Silver Senior Vice President and Deputy
General Counsel
*Jose Suquet Executive Vice President and Chief
Agency Officer
*Naomi Weinstein Vice President
*Maureen K. Wolfson Vice President
C-6
<PAGE>
Item 26. Persons Controlled by or Under Common Control with the Insurance
----------------------------------------------------------------
Company or Registrant
---------------------
Separate Account A of The Equitable Life Assurance Society of the
United States (the "Separate Account") is a separate account of Equitable.
Equitable, a New York stock life insurance company, is a wholly owned subsidiary
of The Equitable Companies Incorporated (the "Holding Company"), a publicly
traded company.
The largest stockholder of the Holding Company is AXA-UAP. As of
December 31, 1997, AXA-UAP beneficially owned approximately 58.7% of the
outstanding common stock of the Holding Company. Under its investment
arrangements with Equitable Life and the Holding Company, AXA-UAP is able to
exercise significant influence over the operations and capital structure of the
Holding Company and its subsidiaries, including Equitable Life. AXA-UAP, a
French company, is the holding company for an international group of insurance
and related financial services companies.
C-7
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
The Equitable Companies Incorporated (l991) (Delaware)
Donaldson, Lufkin & Jenrette, Inc. (1993) (Delaware) (41.8%) (See Addendum
B(1) for subsidiaries)
The Equitable Life Assurance Society of the United States (1859) (New York)
(a)(b)
The Equitable of Colorado, Inc. (l983) (Colorado)
EVLICO, INC. (1995) (Delaware)
EVLICO East Ridge, Inc. (1995) (California)
GP/EQ Southwest, Inc. (1995) (Texas) (5.885%)
Franconom, Inc. (1985) (Pennsylvania)
Frontier Trust Company (1987) (North Dakota)
Gateway Center Buildings, Garage, and Apartment Hotel, Inc. (inactive)
(pre-l970) (Pennsylvania)
Equitable Deal Flow Fund, L.P.
Equitable Managed Assets (Delaware)
EREIM LP Associates (99%)
EML Associates, L.P. (19.8%)
Alliance Capital Management L.P. (2.7% limited partnership interest)
ACMC, Inc. (1991) (Delaware)(s)
Alliance Capital Management L.P. (1988) (Delaware) (39.6% limited
partnership interest)
EVCO, Inc. (1991) (New Jersey)
EVSA, Inc. (1992) (Pennsylvania)
Prime Property Funding, Inc. (1993) (Delaware)
Wil Gro, Inc. (1992) (Pennsylvania)
Equitable Underwriting and Sales Agency (Bahamas) Limited (1993)
(Bahamas)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-8
<PAGE>
The Equitable Companies Incorporated (cont.)
Donaldson, Lufkin & Jenrette, Inc.
The Equitable Life Assurance Society of the United States (cont.)
Fox Run Inc. (1994) (Massachusetts)
STCS, Inc. (1992) (Delaware)
CCMI Corporation (1994) (Maryland)
FTM Corporation (1994) (Maryland)
HVM Corporation (1994) (Maryland)
Equitable BJVS, Inc. (1992) (California)
Equitable Rowes Wharf, Inc. (1995) (Massachusetts)
GP/EQ Southwest, Inc. (1995) (Texas) (94.132%)
Camelback JVS, Inc. (1995) (Arizona)
ELAS Realty, Inc. (1996) (Delaware)
100 Federal Street Realty Corporation (Massachusetts)
Equitable Structured Settlement Corporation (1996) (Delaware)
Prime Property Funding II, Inc. (1997) (Delaware)
Sarosata Prime Hotels, Inc. (1997) (Florida)
ECLL, Inc. (1997)(Michigan)
Equitable Holdings, LLC (1997) (New York)(into which Equitable Holding
Corporation was merged in 1997).
EQ Financial Consultants, Inc. (formerly Equico Securities, Inc.)
(l97l) (Delaware) (a) (b)
ELAS Securities Acquisition Corp. (l980) (Delaware)
100 Federal Street Funding Corporation (Massachusetts)
EquiSource of New York, Inc. (1986) (New York) (See Addendum A for
subsidiaries)
Equitable Casualty Insurance Company (l986) (Vermont)
EREIM LP Corp. (1986) (Delaware)
EREIM LP Associates (1%)
EML Associates (.02%)
Six-Pac G.P., Inc. (1990) (Georgia)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-9
<PAGE>
The Equitable Companies Incorporated (cont.)
Donaldson, Lufkin & Jenrette, Inc.
The Equitable Life Assurance Society of the United States (cont.)
Equitable Holdings, LLC (cont.)
Equitable Distributors, Inc. (1988) (Delaware) (a)
Equitable JVS, Inc. (1988) (Delaware)
Astor/Broadway Acquisition Corp. (1990) (New York)
Astor Times Square Corp. (1990) (New York)
PC Landmark, Inc. (1990) (Texas)
Equitable JVS II, Inc. (1994) (Maryland)
EJSVS, Inc. (1995) (New Jersey)
Donaldson, Lufkin & Jenrette, Inc. (1985 by EIC; 1993 by EQ and EHC)
(Delaware) (34.4%) (See Addendum B(1) for subsidiaries)
JMR Realty Services, Inc. (1994) (Delaware)
Equitable Investment Corporation (l97l) (New York)
Stelas North Carolina Limited Partnership (50% limited partnership
interest) (l984)
Equitable JV Holding Corporation (1989) (Delaware)
Alliance Capital Management Corporation (l991) (Delaware) (b) (See
Addendum B(2) for subsidiaries)
Equitable Capital Management Corporation (l985) (Delaware) (b)
Alliance Capital Management L.P. (1988) (Delaware) (14.6%)
limited partnership interest)
EQ Services, Inc. (1992) (Delaware)
EREIM Managers Corp. (1986) (Delaware)
ML/EQ Real Estate Portfolio, L.P.
EML Associates, L.P. (80%)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-10
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM A - SUBSIDIARY
OF EQUITABLE HOLDINGS, LLC
HAVING MORE THAN FIVE SUBSIDIARIES
--------------------------------------------
EquiSource of New York, Inc. (formerly Traditional Equinet Business Corporation
of New York) has the following subsidiaries that are brokerage companies to make
available to Equitable Agents within each state traditional (non-equity)
products and services not manufactured by Equitable:
EquiSource of Alabama, Inc. (1986) (Alabama)
EquiSource of Arizona, Inc. (1986) (Arizona)
EquiSource of Arkansas, Inc. (1987) (Arkansas)
EquiSource Insurance Agency of California, Inc. (1987) (California)
EquiSource of Colorado, Inc. (1986) (Colorado)
EquiSource of Delaware, Inc. (1986) (Delaware)
EquiSource of Hawaii, Inc. (1987) (Hawaii)
EquiSource of Maine, Inc. (1987) (Maine)
EquiSource Insurance Agency of Massachusetts, Inc. (1988) (Massachusetts)
EquiSource of Montana, Inc. (1986) (Montana)
EquiSource of Nevada, Inc. (1986) (Nevada)
EquiSource of New Mexico, Inc. (1987) (New Mexico)
EquiSource of Pennsylvania, Inc. (1986) (Pennsylvania)
EquiSource Insurance Agency of Utah, Inc. (1986) (Utah)
EquiSource of Washington, Inc. (1987) (Washington)
EquiSource of Wyoming, Inc. (1986) (Wyoming)
C-11
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
ADDENDUM B - INVESTMENT SUBSIDIARIES
HAVING MORE THAN FIVE SUBSIDIARIES
--------------------------------------------
Donaldson, Lufkin & Jenrette, Inc. has the following subsidiaries, and
approximately 150 other subsidiaries, most of which are special purpose
subsidiaries (the number fluctuates according to business needs):
Donaldson, Lufkin & Jenrette, Securities Corporation (1985) (Delaware)(a)(b)
Wood, Struthers & Winthrop Management Corp. (1985) (Delaware) (b)
Autranet, Inc. (1985) (Delaware) (a)
DLJ Real Estate, Inc.
DLJ Capital Corporation (b)
DLJ Mortgage Capital, Inc. (1988) (Delaware)
Column Financial, Inc. (1993) (Delaware( (50%)
Alliance Capital Management Corporation (as general partner) (b) has the
following subsidiaries:
Alliance Capital Management L.P. (1988) (Delaware) (b)
Alliance Capital Management Corporation of Delaware, Inc. (Delaware)
Alliance Fund Services, Inc. (Delaware) (a)
Alliance Fund Distributors, Inc. (Delaware) (a)
Alliance Capital Oceanic Corp. (Delaware)
Alliance Capital Management Australia Pty. Ltd. (Australia)
Meiji - Alliance Capital Corp. (Delaware) (50%)
Alliance Capital (Luxembourg) S.A. (99.98%)
Alliance Eastern Europe Inc. (Delaware)
Alliance Barra Research Institute, Inc. (Delaware) (50%)
Alliance Capital Management Canada, Inc. (Canada) (99.99%)
Alliance Capital Management (Brazil) Llda
Alliance Capital Global Derivatives Corp. (Delaware)
Alliance International Fund Services S.A. (Luxembourg)
Alliance Capital Management (India) Ltd. (Delaware)
Alliance Capital Mauritius Ltd.
Alliance Corporate Finance Group, Incorporated (Delaware)
Equitable Capital Diversified Holdings, L.P. I
Equitable Capital Diversified Holdings, L.P. II
Curisitor Alliance L.L.C. (Delaware)
Curisitor Holdings Limited (UK)
Alliance Capital Management (Japan), Inc.
Alliance Capital Management (Asia) Ltd.
Alliance Capital Management (Turkey), Ltd.
Cursitor Alliance Management Limited (UK)
(a) Registered Broker/Dealer (b) Registered Investment Advisor
C-12
<PAGE>
AXA-UAP GROUP CHART
The information listed below is dated as of December 31, 1997; percentages
shown represent voting power. The name of the owner is noted when AXA-UAP
indirectly controls the company.
AXA-UAP INSURANCE AND REINSURANCE BUSINESS HOLDING
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Assurances Iard France 100% by AXA France Assurance
AXA Assurances Vie France 100% by AXA France Assurance
AXA Courtage Iard France 97.4% by AXA France Assurance
and UAP Iard
AXA Courtage Vie France 100% by AXA France Assurance
Alpha Assurances Vie France 100% by AXA France Assurance
AXA Direct France 100%
Direct Assurances Iard France 100% by AXA Direct
Direct Assurance Vie France 100% by AXA Direct
AXA Tellit Versicherung Germany 50% owned by AXA Direct and
50% by CKAG
Axiva France 100% by AXA France Assurance
Juridica France 88.4% by UAP Iard, 10.9% by
AXA France Assurance
AXA Assistance France France 100% by AXA Assistance SA
Monvoisin Assurances France 99.9% by different companies
and Mutuals
Societe Beaujon France 100%
Lor Finance France 100%
Jour Finance France 100% by AXA Conseil Iard and
by AXA Assurances Iard
Financiere 45 France 99.8%
Mofipar France 100%
Compagnie Auxiliaire pour le France 99.8% by Societe Beaujon
Commerce and l'Industrie
C.F.G.A. France 99.96% owned by Mutuals and
Finaxa
AXA Global Risks France 100% owned by AXA France
Assurance, UAP Iard and
Mutuals
Argovie France 100% by Axiva and SCA Argos
C-13
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Astral Finance France 99.33% by AXA Courtage Vie
Argos France N.S.
AXA France Assurance France 100%
UAP Incendie Accidents France 100% by AXA France
Assurance
UAP Vie France 100% by AXA France
Assurance
UAP Collectives France 50% by AXA Assurances
Iard, 3.3% by AXA Conseil
Iard and 46.6% UAP Vie
Thema Vie France 30% by Axiva, 11.9% by
UAP Collectives, 10.9% by
UAP Iard and 46.8% by UAP Vie
La Reunion Francaise France 49% by UAP Iard and 51% by
AXA Global Risks
UAP Assistance France 52% by UAP Incendie-Accidents
and 48% by UAP Vie
UAP International France 50.1% by AXA-UAP and 49.9% by
AXA Global Risks
Sofinad France 100%
AXA-Colonia Konzern AG (AXA-
CKAG) Germany 39.7% by Vinci BV, 25.6% by
Kolnische Verwaltungs and
5.5% by AXA-UAP
Finaxa Belgium Belgium 100%
AXA Belgium Belgium 27.1% by AXA-UAP and 72.6%
by Finaxa Belgium
De Kortrijske Verzekering Belgium 99.8% by AXA Belgium
Juris Belgium 100% owned by Finaxa Belgium
Royale Vendome Belgium 49% by AXA-UAP and 20.2% by
AXA Global Risks
Royale Belge Belgium 51.2% by Royale Vendome and
9.5% by different companies
of the Group
Royale Belge 1994 Belgium 97.9% by Royale Belge and 2%
by UAB
UAB Belgium 99.9% by Royale Belge
Ardenne Prevoyante Belgium 99.4% by Royale Belge
GB Lex Belgium 55% by Royale Belge, 25% by
Royale Belge 1994, 10% by
Juridica and 10% by AXA
Conseil Assurance
Royale Belge Re Belgium 99.9% by Royale Belge
Parcolvi Belgium 100% by Vinci Belgium
Vinci Belgium Belgium 99.5% by Vinci BV
Finaxa Luxembourg Luxembourg 100%
AXA Assurance IARD Luxembourg Luxembourg 99.9%
AXA Assurance Vie Luxembourg Luxembourg 99.9%
Royale UAP Luxembourg 100% by Royale Belge
Paneurolife Luxembourg 90% by different companies of
the AXA-UAP Group
Paneurore Luxembourg 90% by different companies of
the AXA-UAP Group
Crealux Luxembourg 100% by Royale Belge
Futur Re Luxembourg 100% by AXA Global Risks
General Re-CKAG Luxembourg 37.8% by AXA-CKAG and 12.1%
by Colonia Nordstern
Versicherung
Royale Belge Investissements Luxembourg 100% by Royale Belge
C-14
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Aurora Spain 30% owned by AXA-UAP and 40%
by UAP International
Aurora Polar SA de Seguros y Spain 99.4% owned by AXA Aurora
Reaseguros
Aurora Vida SA de Seguros y Spain 90% owned by Aurora Polar and
Reaseguros 5% by AXA-UAP
AXA Gestion de Seguros y Spain 99.1% owned by AXA Aurora
Reaseguros
Hilo Direct Seguros Spain 71.4% by AXA Aurora
Ayuda Legal Spain 59% owned by Aurora Polar,
29% by AXA Gestion and 12%
by Aurora Vida
UAP Iberica Spain 100% by UAP International
General Europea (GESA) Spain 100% by Societe Generale
d'Assistance
AXA Assicurazioni Italy 100%
Eurovita Italy 30% owned by AXA Assicurazioni
Gruppo UAP Italia (GUI) Italy 97% by UAP International and
3% by UAP Vie
UAP Italiana Italy 96% by AXA-UAP and 4% by GUI
UAP Vita Italy 62.2% by GUI and 37.8% by UAP
Vie
Allsecures Assicurazioni Italy 90% by GUI and 10% by UAP
Italiana
Allsecures Vita Italy 92.9% by GUI and 7% by AXA-UAP
Centurion Assicurazioni Italy 100% by GUI
AXA Equity & Law plc U.K. 100%
AXA Equity & Law Life U.K. 100% by SLPH
Assurance Society
AXA Insurance U.K. 100% owned by SLPH
AXA Global Risks U.K. 51% owned by AXA Global
Risks (France) and 49% by
AXA Courtage IARD
Sun Life and Provincial U.K. 71.6% by AXA-UAP and AXA
Holdings (SLPH) Equity & Law Plc
Sun Life Corporation Plc U.K. 100% by AXA Sun Life Holding
Sun Life Assurance U.K. 100% by AXA Sun Life Holding
UAP Provincial Insurance U.K. 100% by SLPH
English & Scottish U.K. 100% by AXA UK
Servco U.K. 100% by AXA Sun Life Holding
AXA Sun Life U.K. 100% by AXA Sun Life Holding
AXA Leven The Nether- 100% by AXA Equity & Law Life
lands Assurance Society
UAP Nieuw Rotterdam The Nether- 51% by Royale Belge, 38.9% by
Holding BV lands Gelderland BV and 4.1% by
AXA-UAP
UNIROBE Groep BV The Nether- 100% by UAP Nieuw Rotterdam
lands Holding BV
UAP Nieuw Rotterdam Verzkerigen The Nether- 100% by UAP Nieuw Rotterdam
lands Holding BV
UAP Nieuw Rotterdam Schade The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekerigen
UAP Nieuw Rotterdam Leven The Nether- 100% by UAP Nieuw Rotterdam
lands Verzekerigen
UAP Nieuw Rotterdam Zorg The Nether- 100% by UAP Nieuw Rotterdam
lands Schade
Societe Generale d'Assistance The Nether- 51% by UAP Incendie-Accidents,
lands 29% by UAP Vie and 20% by
AXA-UAP
Gelderland BV The Nether- 100% by UAP Vie
lands
C-15
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Royale Belge International The Nether- 100% by Royale Belge
lands Investissements
Vinci BV The Nether- 94.8% by AXA-UAP and 5.2% by
lands Parcolvi
AXA Portugal Companhia de Portugal 43.1% by different companies
Serguros SA of the AXA-UAP Group
AXA Portugal Companhia de Portugal 95.1% by UAP Vie and 7.5% UAP
Serguros de Vida SA International
Union UAP Switzerland 99.9% by UAP International
Union UAP Vie Switzerland 95% by UAP International
AXA Oyak Hayat Sigorta Turkey 60% owned by AXA-UAP
Oyak Sigorta Turkey 11% owned by AXA-UAP
Al Amane Assurances Morocco 52% by UAP International
AXA Canada Inc. Canada 100%
AXA Boreal Insurance Inc. Canada 100% owned by Gestion Fracapar
Inc
AXA Assurances Inc Canada 100% owned by AXA Canada Inc
C-16
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Insurance Inc Canada 100% owned by AXA Canada Inc.
and AXA Assurance Inc
Anglo Canada General Insurance Canada 100% owned by AXA Canada Inc.
Cy
AXA Pacific Insurance Cy Canada 100% by AXA Boreal Insurance
Inc
AXA Boreal Assurances Canada 100% by AXA Boreal Insurance
Agricoles Inc Inc
AXA Life Insurance Japan 100%
Dongbu AXA Life Korea 50%
Insurance Co. Ltd.
Sime AXA Berhad Malaysia 30% owned by AXA-UAP and
AXA Reassurance
AXA Investment Holdings Pte Ltd Singapore 100%
AXA Insurance Singapore 100% owned by AXA Investment
Holdings Pte Ltd
AXA Insurance Hong Kong 100% owned by AXA Investment
Holdings Pte Ltd
AXA Life Insurance Hong Kong 100%
PT Asuransi AXA Indonesia Indonesia 80%
The Equitable Companies U.S.A. 58.7% of which AXA-UAP owns
Incorporated 42.0%, Financiere 45, 3.2%,
Lorfinance 6.4%, AXA Equity
& Law Life Association Society
4.1% and AXA Reassurance 3.0%
The Equitable Life Assurance U.S.A. 100% owned by The Equitable
Society of the United States Companies Incorporated
(ELAS)
National Mutual Holdings Ltd Australia 51% between AXA-UAP, 42.1%
and AXA Equity & Law Life
Assurance Society 8.9%
The National Mutual Life Australia 100% owned by National Mutual
Association of Australasia Ltd Holdings Ltd
National Mutual International Australia 100% owned by National Mutual
Pty Ltd Holdings Ltd
National Mutual (Bermuda) Ltd Australia 100% owned by National Mutual
International Pty Ltd
National Mutual Asia Ltd Australia 41% owned by National Mutual
Holdings Ltd, 20% by Datura
Ltd and 13% by National Mutual
Life Association of
Australasia
Australian Casualty & Life Ltd Australia 100% owned by National Mutual
Holdings Ltd
National Mutual Health Australia 100% owned by National Mutual
Insurance Pty Ltd Holdings Ltd
C-17
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
AXA Reassurance France 100% owned by AXA-UAP, AXA
Assurances Iard and AXA Global
Risks
AXA Re Finance France 79% owned by AXA Reassurance
AXA Cessions France 100%
AXA Re Asia Singapore 100% owned by AXA Reassurance
AXA Re U.K. Plc U.K. 100% owned by AXA Re U.K.
Holding
AXA Re U.K. Holding U.K. 100% owned by AXA Reassurance
AXA Re U.S.A. U.S.A. 100% owned by AXA America
AXA America U.S.A. 100% owned by AXA Reassurance
AXA Space U.S.A. 80% owned by AXA America
AXA Re Life U.S.A. 100% owned by AXA America
C.G.R.M. Monaco 100% owned by AXA Reassurance
C-18
<PAGE>
AXA-UAP FINANCIAL BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Compagnie Financiere de Paris France 97.2% (100% with Mutuals)
(C.F.P.)
AXA Banque France 98.7% owned by C.F.P.
AXA Credit France 65% owned by C.F.P.
AXA Gestion Interessement France 100% owned by AXA Investment
Managers
Sofapi France 100% owned by C.F.P.
Soffim France 100% owned by C.F.P.
Societe de Placements France 98.8% with Mutuals
Selectionnes S.P.S.
Presence et Initiative France 100% with Mutuals
Vamopar France 100% owned by Societe Beaujon
Financiere Mermoz France 100%
AXA Investment Managers France 100% by some AXA-UAP Group
companies
AXA Asset Management France 100% owned by AXA Investment
Partenaires Managers
AXA Investment Managers Paris France 100% owned by AXA Investment
Managers
AXA Asset Management France 99.6% owned by AXA Investment
Distribution Managers
UAP Gestione Financiere France 99.9 by AXA-UAP
Assurinvestissements France 50% by UAP Vie, 30% UAP
Collectives, 20% UAP
Incendie-Accidents
Banque Worms France 51% by CFP and 49% by
three UAP insurance companies
Colonia Bausbykasse Germany 97.8% by AXA-CKAG
Banque Ippa Belgium 99.9% by Royale Belge
Banque Bruxelles Lambert Belgium 9.3% by Royale Belge, 3.1%
Royale Belge 1994, 0.2% by
AXA Belgium
AXA Equity & Law Home Loans U.K. 100% owned by AXA Equity & Law
Plc
AXA Equity & Law Commercial U.K. 100% owned by AXA Equity & Law
Loans Plc Loans
Sun Life Asset Management U.K. 66.7% owned by SLPH and 33.4%
by AXA Asset Management Ltd.
C-19
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Alliance Capital Management U.S.A. 57.9% held by ELAS
Donaldson, Lufkin & Jenrette U.S.A. 76.2% owned by Equitable
Holdings LLC and ELAS
National Mutual Funds Australia 100% owned by National
Management (Global) Ltd Mutual Holdings Ltd.
National Mutual Funds U.S.A. 100% by National Mutual Funds
Management North America Management (Global) Ltd.
Holding Inc.
Cogefin Luxembourg 100% owned by AXA Belgium
ORIA France 100% owned by AXA Millesimes
AXA Oeuvres d'Art France 100% by Mutuals
AXA Cantenac Brown France 100%
AXA Suduiraut France 99.6% owned by AXA-UAP and
Societe Beaujon
C-20
<PAGE>
AXA-UAP REAL ESTATE BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Prebail France 100% owned by AXA Immobilier
Axamur France 100% by different companies
and Mutuals
Parimmo France 100% by different companies
and Mutuals
S.G.C.I. France 100% by different companies
and Mutuals
Transaxim France 100% owned by S.G.C.I. and
C.P.P.
Compagnie Parisienne de France 100% owned by S.G.C.I.
Participations (C.P.P.)
Monte Scopeto France 100% owned by C.P.P.
Matipierre France 100% by different companies
Securimo France 87.12% by different companies
and Mutuals
Paris Orleans France 100% by different companies
AXA Courtage Iard
Colisee Bureaux France 100% by different companies
and Mutuals
Colisee Premiere France 100% by different companies
and Mutuals
Colisee Laffitte France 100% by Colisee Bureaux
Fonciere Carnot Laforge France 100% by Colisee Premiere
Parc Camoin France 100% by Colisee Premiere
Delta Point du Jour France 100% owned by Matipierre
Paroi Nord de l'Arche France 100% owned by Matipierre
Falival France 100% owned by AXA Reassurance
Compagnie du Gaz d'Avignon France 100% owned by AXA Assurances
Iard
Ahorro Familiar France 44% owned by AXA Assurances
Iard, 1% by AXA Aurora Polar
and 1% by AXA Seguros
Fonciere du Val d'Oise France 100% owned by C.P.P.
Sodarec France 100% owned by C.P.P.
C-21
<PAGE>
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
Centrexpo France 99.3% owned by C.P.P.
Fonciere de la Ville du Bois France 99.6% owned by Centrexpo
Colisee Seine France 100% owned by different
companies
Translot France 100% owned by SGCI
Colisee Alpha France 100% owned by Colisee Bureaux
Colisee Silly France 100% owned by Colisee Bureaux
S.N.C. Dumont d'Urville France 100% owned by Colisee Premiere
Colisee Federation France 100% by SGCI
Colisee Saint Georges France 100% by SGCI
Drouot Industrie France 50% by SGCI and 50% by Axamur
Colisee Vauban France 99.6% by Matipierre
Fonciere Colisee France 100% by Matipierre and other
companies of the AXA-UAP Group
AXA Pierre S.C.I. France 97.6% owned by different
companies and Mutuals
AXA Millesimes France 85.4% owned by AXA-UAP and the
Mutuals
Chateau Suduirault France 100% owned by AXA Millesimes
Diznoko Hungary 95% owned by AXA Millesimes
Compagnie Fonciere Matignon France 100% by different companies
and Mutuals
Fidei France 20.7% owned by C.F.P. and
10.8% by Axamur
Fonciere Saint Sebastien France 99.9% by UAP Vie
Fonciere Vendome France 91% by different companies of
the Group
La Holding Vendome France 99.9% by AXA Global Risks
10, boulevard Haussmann France 69% by La Fonciere Vendome and
31% by AXA Conseil Iard
37-39 Le Peletier France 100% by AXA Courage Iard
Ugici France 100% by different companies of
the AXA-UAP Group of which
93.1% by UAP Vie
Ugicomi France 100% by different companies of
the AXA-UAP Group of which
63.8% by UAP Vie
Ugif France 100% by different companies of
the AXA-UAP Group of which
59.6% by UAP Vie and 32.6%
by UAP Collectives
Ugil France 93.9% by different companies
of the AXA-UAP Group of which
65.8% by UAP Vie
Ugipar France 100% by different companies
of the AXA-UAP Group of which
39.4% by UAP Vie, 35.4% by AXA
Courtage Iard and 20.8% by UAP
Collectives
AXA Immobiller France 100% by AXA UAP
Quinta do Noval Vinhos S.A. Portugal 99.6% owned by AXA Millesimes
C-22
<PAGE>
OTHER AXA-UAP BUSINESS
COMPANY COUNTRY VOTING POWER
- ------- ------- ------------
A.N.F. France 95.4% owned by Finaxa
Lucia France 20.6% owned by AXA Assurances
Iard and 8.6% by Mutuals
Schneider S.A. France 10.4%
C-23
<PAGE>
ORGANIZATION CHART OF EQUITABLE'S AFFILIATES
NOTES
-----
1. The year of formation or acquisition and state or country of incorporation
of each affiliate is shown.
2. The chart omits certain relatively inactive special purpose real estate
subsidiaries, partnerships, and joint ventures formed to operate or develop
a single real estate property or a group of related properties, and certain
inactive name-holding corporations.
3. All ownership interests on the chart are 100% common stock ownership except:
(a) The Equitable Companies Incorporated's 41.8% interest in Donaldson,
Lufkin & Jenrette, Inc. and Equitable Holdings, LLC's 34.4% interest
in same; (b) as noted for certain partnership interests; (c) Equitable
Life's ACMC, Inc.'s and Equitable Capital Management Corporation's limited
partnership interests in Alliance Capital Management L.P.; and (d) as noted
for certain subsidiaries of Alliance Capital Management Corp. of Delaware,
Inc.
4. The operational status of the entities shown as having been formed or
authorized but "not yet fully operational" should be checked with the
appropriate operating areas, especially for those that are start-up
situations.
5. The following entities are not included in this chart because, while they
have an affiliation with The Equitable, their relationship is not the
ongoing equity-based form of control and ownership that is characteristic of
the affiliations on the chart, and, in the case of the first two entities,
they are under the direction of at least a majority of "outside" trustees:
The Hudson River Trust
EQ Advisors Trust
Separate Accounts
6. This chart was last revised on April 1, 1998.
C-24
<PAGE>
Item 27. Number of Contractowners
------------------------
Currently, there are 6 owners of the Variable Immediate Annuity
Contracts offered by the Registrant.
Item 28. Indemnification
---------------
To the extent permitted by law of the State of New York and subject to
all applicable requirements thereof, Equitable, the registrant's depositor
undertook to indemnify each of its directors and officers of Equitable and EQ
Financial Consultants, Inc. ("EQ Financial"), the registrant's principal
underwriter and a wholly-owned subsidiary of Equitable, who is made or
threatened to be made a party to any action or proceeding, whether civil or
criminal, by reason of the fact the director or officer, or his or her testator
or intestate, is or was a director or officer of Equitable.
Insofar as indemnification for liability arising under the Securities
Act of 1933 ("Act") may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or otherwise,
the registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
Item 29. Principal Underwriters
----------------------
(a) EQ Financial is the principal underwriter for Separate Account A
and Separate Account No. 301, Separate Account I and Separate
Account FP. EQ Financial's principal business address is 1290
Avenue of the Americas, NY, NY 10104.
(b) Set forth below is certain information regarding the directors
and principal officers of EQ Financial.
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Underwriter
- ---------------- ----------------
<S> <C>
Derry E. Bishop Director and Executive Vice President
1290 Avenue of the Americas, NY, NY 10104
Harvey Blitz Director and Executive Vice President
1290 Avenue of the Americas, NY, NY 10104
</TABLE>
C-25
<PAGE>
<TABLE>
<CAPTION>
Name and Principal Positions and Offices
Business Address with Underwriter
---------------- ----------------
<S> <C>
Michael J. Laughlin Director
1345 Avenue of the Americas, NY, NY 10105
Michael S. Martin Director, Chairman of the Board and Chief
1290 Avenue of the Americas, NY, NY 10104 Executive Officer
Michael F. McNelis Director, President and Chief Operating Officer
1290 Avenue of the Americas, NY, NY 10104
Richard V. Silver Director
1290 Avenue of the Americas, NY, NY 10104
Mark R. Wutt Director
1290 Avenue of the Americas, NY, NY 10104
Martin J. Telles Executive Vice President and Chief Marketing
1290 Avenue of the Americas, NY, NY 10104 Officer
Thomas J. Duddy, Jr. Executive Vice President
1290 Avenue of the Americas, NY, NY 10104
Fred A. Folco Executive Vice President
1290 Avenue of the Americas, NY, NY 10104
William J. Green Executive Vice President
1290 Avenue of the Americas, NY, NY 10104
Edward J. Hayes Executive Vice President
200 Plaza Drive, Secaucus, NJ 07096-1583
Peter D. Noris Executive Vice President
1290 Avenue of the Americas, NY, NY 10104
Robert McKenna Senior Vice President and Chief Financial Officer
1290 Avenue of the Americas, NY, NY 10104
Janet E. Hannon Secretary
1290 Avenue of the Americas, NY, NY 10104
</TABLE>
(c) Not applicable.
C-26
<PAGE>
Item 30. Location of Accounts and Records
--------------------------------
The records required to be maintained by Section 31(a) of the
Investment Company Act of 1940 and Rules 31a-1 to 31a-3 thereunder are
maintained by Equitable at 1290 Avenue of the Americas, New York, NY, 10104,
135 West 50th Street, New York, NY 10020, and 200 Plaza Drive, Secaucus,
N.J. 07096.
Item 31. Management Services
-------------------
Not applicable.
Item 32. Undertakings
------------
The Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement
as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more
than 16 months old for so long as payments under the variable
annuity contracts may be accepted;
(b) to include either (1) as part of any application to purchase a
contract offered by the prospectus, a space that an applicant can
check to request a Statement of Additional Information, or (2) a
postcard or similar written communication affixed to or included
in the prospectus that the applicant can remove to send for a
Statement of Additional Information;
(c) to deliver any Statement of Additional Information and any
financial statements required to be made available under this
Form promptly upon written or oral request.
The Registrant hereby represents that, as to certain redeemable
variable annuity contracts funded by Registrant, it is relying on the November
28, 1988 no-action letter (Ref. No. IP-6-88) relating to variable annuity
contracts offered as funding vehicles for retirement plans meeting the
requirements of Section 403(b) of the Internal Revenue Code. Registrant further
represents that, in such cases, it complies with the provisions of paragraphs
(1)-(4) of that letter.
Equitable represents that the fees and charges deducted under the
Contracts described in this Registration Statement, in the aggregate, are
reasonable in relation to the services rendered, the expenses to be incurred,
and the risks assumed by Equitable under the Contracts. Equitable bases its
representation on its assessment of all of the facts and circumstances,
including such relevant factors as: the nature and extent of such services,
expenses and risks, the need for Equitable to earn a profit, the degree to which
the Contracts include innovative features, and regulatory standards for the
grant of exemptive relief under the Investment Company Act of 1940 used prior to
October 1996, including the range of industry practice. This representation
applies to all contracts sold pursuant to this Registration Statement, including
those sold on the terms specifically described in the prospectuses contained
herein, or any variations therein, based on supplements, endorsements, data
pages, or riders to any contract, prospectus, or otherwise.
C-27
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this amendment to the
Registration Statement, and has caused this amendment to the Registration
Statement to be signed on its behalf, in the City and State of New York, on this
28th day of April, 1998.
SEPARATE ACCOUNT A OF
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Registrant)
By: The Equitable Life Assurance Society
of the United States
By: /s/ Maureen K. Wolfson
----------------------------
Maureen K. Wolfson
Vice President
C-28
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Depositor certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of this amendment to the
Registration Statement, and has caused this amendment to the Registration
Statement to be signed on its behalf, in the City and State of New York, on this
28th day of April, 1998.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Depositor)
By: /s/ Maureen K. Wolfson
----------------------------
Maureen K. Wolfson
Vice President
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, this Registration Statement or amendment thereto has been signed by
the following persons in the capacities and on the date indicated:
PRINCIPAL EXECUTIVE OFFICERS:
Michael Hegarty President, Chief Operating Officer and Director
Edward D. Miller President, Chief Executive Officer
and Director
PRINCIPAL FINANCIAL OFFICER:
Stanley B. Tulin Senior Executive Vice President
and Chief Financial Officer
PRINCIPAL ACCOUNTING OFFICER:
/s/ Alvin H. Fenichel Senior Vice President and Controller
- ---------------------
Alvin H. Fenichel
April 28, 1998
DIRECTORS:
Francoise Colloc'h Donald J. Greene George T. Lowy
Henri de Castries John T. Hartley Edward D. Miller
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
Denis Duverne Michael Hegarty George J. Sella, Jr.
William T. Esrey Mary R. (Nina) Henderson Stanley B. Tulin
Jean-Rene Fourtou W. Edwin Jarmain Dave H. Williams
Norman C. Francis G. Donald Johnston, Jr.
By: /s/ Maureen K. Wolfson
----------------------
Maureen K. Wolfson
Attorney-in-Fact
April 28, 1998
C-29
<PAGE>
EXHIBIT INDEX
-------------
<TABLE>
<CAPTION>
Exhibit No. Tag Value
----------- ---------
<S> <C> <C>
10(a) Consent of Price Waterhouse LLP. EX-99.10a CONSENT
10(b) Powers of Attorney. EX-99.10b POW ATTY
</TABLE>
38381
C-30
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information,
constituting part of this Post-Effective Amendment No. 1 to the Registration
Statement No. 333-19925 on Form N-4 (the "Registration Statement"), of (1) our
report dated February 10, 1998 relating to the financial statements of Separate
Account A of The Equitable Life Assurance Society of the United States for the
year ended December 31, 1997, and (2) our report dated February 10, 1998
relating to the consolidated financial statements of The Equitable Life
Assurance Society of the United States for the year ended December 31, 1997,
which reports appear in such Statement of Additional Information, and to the
incorporation by reference of our reports into the Prospectus which constitutes
part of this Registration Statment. We also consent to the reference to us under
the heading "Custodian and Independent Accountants" in the Statement of
Additional Information.
/s/ Price Waterhouse LLP
- ------------------------
Price Waterhouse LLP
New York, New York
April 27, 1998
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 20th day of February, 1998
/s/ Francoise Colloc'h
----------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 2nd day of March, 1998
/s/ Henri de Castries
---------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Joseph L. Dionne
--------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Denis Duverne
-----------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ William T. Esrey
--------------------
William T. Esrey
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 23th day of February, 1998
/s/ Jean-Rene Fourtou
---------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Norman C. Francis
---------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Donald J. Greene
--------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ John T. Hartley
-------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ John H.F. Haskell, Jr.
--------------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 26th day of January, 1998
/s/ Michael Hegarty
-------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Mary R. (Nina) Henderson
----------------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 29th day of January, 1998
/s/ W. Edwin Jarmain
--------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 2nd day of February, 1998
/s/ G. Donald Johnston, Jr.
---------------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ George T. Lowy
------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Edward D. Miller
--------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 17th day of February, 1998
/s/ Didier Pineau-Valencienne
-----------------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 4th day of February, 1998
/s/ George J. Sella Jr.
-----------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Stanley B. Tulin
--------------------
59838
<PAGE>
POWER OF ATTORNEY
-----------------
KNOW ALL PERSONS BY THESE PRESENTS, that the undersigned officer or
director of The Equitable Life Assurance Society of the United States (the
"Company"), a New York stock life insurance company, hereby constitutes and
appoints Jerome S. Golden, Judy A. Faucett, Mark A. Hug, James D. Goodwin,
Pauline Sherman, Michael F. McNelis, Naomi J. Weinstein, Maureen K. Wolfson,
Mildred Oliver, Mary P. Breen and each of them (with full power to each of them
to act alone), his or her true and lawful attorney-in-fact and agent, with full
power of substitution to each, for him or her and on his or her behalf and in
his or her name, place and stead, to execute and file any of the documents
referred to below relating to registrations under the Securities Act of 1933,
the Securities Exchange Act of 1934 and the Investment Company Act of 1940 with
respect to any insurance or annuity contracts or other agreements providing for
allocation of amounts to Separate Accounts of the Company, and related units or
interests in Separate Accounts: registration statements on any form or forms
under the Securities Act of 1933 and the Investment Company Act of 1940 and
annual reports on any form or forms under the Securities Exchange Act of 1934,
and any and all amendments and supplements thereto, with all exhibits and all
instruments necessary or appropriate in connection therewith, each of said
attorneys-in-fact and agents and his, her or their substitutes being empowered
to act with or without the others, and to have full power and authority to do or
cause to be done in the name and on behalf of the undersigned each and every act
and thing requisite and necessary or appropriate with respect thereto to be done
in and about the premises in order to effectuate the same, as fully to all
intents and purposes as the undersigned might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and agents, or any of
them, may do or cause to be done by virtue hereof.
IN WITNESS WHEREOF, the undersigned has hereunto set his or her hand
this 19th day of February, 1998
/s/ Dave H. Williams
--------------------
59838
