FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
The registrant meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is therefore filing this Form with the reduced disclosure
format.
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number: 333-59765
333-59769
LINCOLN BENEFIT LIFE COMPANY
(Exact name of registrant as specified in its charter)
Nebraska 470221457
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
206 South 13th Street
Lincoln, Nebraska 68508
(Address of principal executive offices)(zip code)
1-800-865-5237
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes. . ./X/. . No
Indicate the number of shares of each of the issuer's classes of common
stock as of September 30, 1998; there were 25,000 shares of common capital stock
outstanding, par value $100 per share all of which shares are held by Allstate
Life Insurance Company.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Statements of Financial Position
September 30, 1998 (Unaudited) and December 31, 1997.............. 3
Statements of Operations
Three Months Ended September 30, 1998 and September 30, 1997
and Nine Months Ended September 30, 1997 (Unaudited).............. 4
Statements of Cash Flows
Nine Months Ended September 30, 1998 and September 30, 1997
(Unaudited)....................................................... 5
Notes to Financial Statements..................................... 6
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS..................... 10
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE
ABOUT MARKET RISK*................................................ N/A
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS................................................. 14
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS*....................... N/A
Item 3. DEFAULTS UPON SENIOR SECURITIES*................................. N/A
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS*............. N/A
Item 5. OTHER INFORMATION................................................ 14
Item 6. EXHIBITS AND REPORTS ON FORM 8-K................................. 14
SIGNATURE PAGE........................................................... 15
*Omitted pursuant to General Instruction H(2) of Form 10-Q.
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
September 30, December 31,
($ in thousands) 1998 1997
------------------ --------------------
(Unaudited)
<S> <C> <C>
ASSETS
Investments
Fixed income securities, at fair value (amortized
cost $148,937 and $141,553) $ 160,548 $ 147,911
Short-term 3,053 1,020
---------- ---------
Total investments 163,601 148,931
Reinsurance recoverable from Allstate
Life Insurance Company 6,835,792 6,732,755
Reinsurance recoverable from third parties 159,938 127,182
Net receivable from affiliates 19,348 14,481
Cash 4,691 4,220
Other assets 25,232 31,976
Separate Accounts 608,965 447,658
---------- ---------
Total assets $ 7,817,567 $ 7,507,203
============ ============
LIABILITIES
Reserve for life-contingent contract benefits $ 295,158 $ 252,195
Contractholder funds 6,689,996 6,607,130
Income taxes payable 4,870 1,128
Deferred income taxes 5,993 4,149
Other liabilities and accrued expenses 52,795 43,609
Separate Accounts 608,965 447,658
---------- ---------
Total liabilities 7,657,777 7,355,869
---------- ---------
Commitments and Contingent Liabilities (Note 4)
SHAREHOLDER'S EQUITY
Common stock, $100 par value, 30,000 shares
authorized, 25,000 issued and outstanding 2,500 2,500
Additional capital paid-in 116,750 116,750
Retained income 32,993 27,952
Accumulated other comprehensive income:
Unrealized net capital gains 7,547 4,132
--------- ---------
Total accumulated other comprehensive income 7,547 4,132
--------- ---------
Total shareholder's equity 159,790 151,334
--------- ---------
Total liabilities and shareholder's equity $ 7,817,567 $ 7,507,203
============ ============
</TABLE>
See notes to consolidated financial statements.
-3-
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
--------------------- -----------------------
($ in thousands) 1998 1997 1998 1997
------ ------ ------ ------
(Unaudited)
<S> <C> <C> <C> <C>
REVENUES
Net investment income $ 2,562 $ 2,567 $ 7,796 $ 7,302
Realized capital gains and 31 1 31 10
losses ------- ------- ------- -------
INCOME BEFORE INCOME TAX
EXPENSE 2,593 2,568 7,827 7,312
INCOME TAX EXPENSE 945 901 2,786 2,559
------- ------ ------ ------
NET INCOME $ 1,648 $ 1,667 $ 5,041 $ 4,753
========= ======== ======== ========
</TABLE>
See notes to consolidated financial statements.
-4-
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
Nine months ended
September 30
--------------------------------------
($ in thousands) 1998 1997
------------------ ------------------
(Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 5,041 $ 4,753
Adjustments to reconcile net income to net
cash provided by operating activities
Amortization and other non-cash items 21 42
Realized capital gains and losses (31) (10)
Changes in life-contingent contract benefits
and contractholder funds (9,965) (6,775)
Changes in deferred income taxes 6 (461)
Changes in other operating assets and liabilities 14,548 11,871
--------- ---------
Net cash provided by operating activities 9,620 9,420
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed income securities
Investment collections 7,482 8,085
Investment purchases (14,598) (10,667)
Change in short-term investments, net (2,033) 501
--------- ----------
Net cash used in investing activities (9,149) (2,081)
--------- ----------
NET INCREASE IN CASH 471 7,339
CASH AT BEGINNING OF PERIOD 4,220 7,412
--------- -----------
CASH AT END OF PERIOD $ 4,691 $ 14,751
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Noncash financing activity:
Dividend-in-kind to Allstate Life Insurance Company $ - $ (10)
============ ===========
</TABLE>
See notes to consolidated financial statements.
-5-
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying consolidated financial statements include the accounts
of Lincoln Benefit Life Company (the "Company") and its wholly owned
subsidiary, Lincoln Benefit Financial Services, Inc., a registered
broker-dealer. The Company is a wholly owned subsidiary of Allstate Life
Insurance Company ("ALIC"), which is wholly owned by Allstate Insurance
Company, a wholly owned subsidiary of The Allstate Corporation.
The consolidated financial statements and notes as of September 30, 1998
and for the three month and nine month periods ended September 30, 1998
and 1997 are unaudited. The consolidated financial statements reflect
all adjustments (consisting only of normal recurring accruals) which
are, in the opinion of management, necessary for the fair presentation
of the financial position, results of operations and cash flows for the
interim periods. These consolidated financial statements and notes
should be read in conjunction with the Company's audited consolidated
financial statements and notes thereto for the year ended December 31,
1997. The results of operations for the interim period should not be
considered indicative of results to be expected for the full year.
Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income."
Comprehensive income is a measurement of certain changes in
shareholders' equity that result from transactions and other economic
events other than transactions with shareholders. For the Company, these
consist of changes in unrealized gains and losses on the investment
portfolio. These amounts, presented as other comprehensive income, net
of related taxes, are added to net income which results in comprehensive
income. The required disclosures are presented in Note 3.
In March 1998, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants issued Statement of
Position ("SOP") 98-1, "Accounting for the Costs of Computer Software
Developed or Obtained for Internal Use." The SOP provides guidance on
accounting for the costs of computer software developed or obtained for
internal use. Specifically, certain external, payroll and payroll
related costs should be capitalized during the application development
stage of a software development project and depreciated over the
computer software's useful life. The Company has adopted the SOP
effective January 1, 1998.
In December 1997, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants issued SOP 97-3,
"Accounting by Insurance and Other Enterprises for Insurance-Related
Assessments." This SOP is required to be adopted in 1999. The SOP
provides guidance concerning when to recognize a liability for
insurance-related assessments and how those liabilities should be
measured. Specifically, insurance-related assessments should be
recognized as liabilities when all of the following criteria have been
met: 1) an assessment has been imposed or it is probable that an
assessment will be imposed, 2) the event obligating an entity to pay an
-6-
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
assessment has occurred and 3) the amount of the assessment can be
reasonably estimated. The requirements of this SOP are not expected to
have a material impact on the results of operations, liquidity or
financial position of the Company. The Company expects to adopt the SOP
as of January 1, 1999.
To conform with the 1998 presentation, certain amounts in the prior
years' financial statements and notes have been reclassified.
2. Reinsurance
Premiums, contract charges, credited interest, policy benefits and
certain expenses are ceded primarily to ALIC. The consolidated
statements of operations are presented net of reinsurance transactions.
Therefore, the amounts shown in the Company's consolidated statements of
operations relate to the investment of those assets of the Company that
are not transferred under the reinsurance agreements Reinsurance
recoverable and contractholder funds are reported separately in the
consolidated statements of financial position. The Company continues to
have primary liability as the direct insurer for risks reinsured.
Investment income earned on the assets which support contractholder
funds is not included in the Company's consolidated financial statements
as those assets are owned and managed by ALIC under the terms of
reinsurance agreements. The following amounts were ceded to ALIC under
the reinsurance agreements.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
--------------------------------------- ------------------------------------
1998 1997 1998 1997
----------------- ----------------- ----------------- ------------------
<S> <C> <C> <C> <C>
Contract charges $ 29,067 $ 22,427 $ 78,348 $ 64,048
Credited interest, policy
benefits and other
expenses 148,677 114,959 399,755 369,201
</TABLE>
-7-
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
3. Comprehensive Income
The components of other comprehensive income on a pretax and after-
tax basis are as follows:
Three months ended September 30,
---------------------------------------------------------------------------
($ in thousands) 1998 1997
---------------------------------- ------------------------------------
Income Income
tax After- tax After-
Pretax effect tax Pretax effect tax
<S> <C> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
Unrealized holding gains
arising during
the period 4,366 (1,528) 2,838 2,445 (856) 1,589
Less: reclassification adjust-
ment for realized net
capital gains included in
net income 31 (11) 20 1 - 1
------- --------- ------- --------- -------- ---------
Other comprehensive income $ 4,335 $ (1,517) $ 2,818 $ 2,444 $ (856) $ 1,588
======= ======== ------- ======== ====== --------
Net income 1,648 1,667
-------- --------
Comprehensive income $ 4,466 $ 3,255
======= ========
</TABLE>
<TABLE>
<CAPTION>
Nine months ended September 30,
-----------------------------------------------------------------------------
($ in thousands) 1998 1997
---------------------------------- -------------------------------------
Income Income
tax After- tax After-
Pretax effect tax Pretax effect tax
<S> <C> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
Unrealized holding gains
arising during
the period 5,285 (1,850) 3,435 2,074 (726) 1,348
Less: reclassification adjust-
ment for realized net
capital gains included in
net income 31 (11) 20 10 (4) 6
-------- --------- --------- --------- -------- -------
Other comprehensive income $ 5,254 $ (1,839) $ 3,415 $ 2,064 $ (722) $ 1,342
======= ======== --------- ======== ======== --------
Net income 5,041 4,753
-------- --------
Comprehensive income $ 8,456 $ 6,095
========= =========
</TABLE>
-8-
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
4. Regulation and Legal Proceedings
The Company's business is subject to the effects of a changing
social, economic and regulatory environment. Public and regulatory
initiatives have varied and have included employee benefit regulation,
controls on medical care costs, removal of barriers preventing banks from
engaging in the securities and insurance business, tax law changes
affecting the taxation of insurance companies, the tax treatment of
insurance products and its impact on the relative desirability of various
personal investment vehicles, and proposed legislation to prohibit the use
of gender in determining insurance rates and benefits. The ultimate
changes and eventual effects, if any, of these initiatives are uncertain.
From time to time the Company is involved in pending and
threatened litigation in the normal course of its business in which claims
for monetary damages are asserted. In the opinion of management, the
ultimate liability, if any, arising from such pending or threatened
litigation is not expected to have a material effect on the results of
operations, liquidity or financial position of the Company.
-9-
<PAGE>
The following discussion highlights significant factors influencing
results of operations and changes in financial position of Lincoln Benefit Life
Company (the "Company") and its wholly owned subsidiary, Lincoln Benefit
Financial Services, Inc., a registered broker-dealer. It should be read in
conjunction with the consolidated financial statements and the notes thereto
found under Part I. Item 1 contained herein and the Company's audited
consolidated financial statements for the year ended December 31, 1997.
The Company, a wholly owned subsidiary of Allstate Life Insurance
Company ("ALIC"), which is wholly owned by Allstate Insurance Company ("AIC"), a
wholly owned subsidiary of The Allstate Corporation (the "Corporation"), markets
life insurance and annuity products through independent agents and brokers.
The Company issues insurance products which include universal life,
term insurance, flexible and single premium deferred annuities and immediate
annuities. The Company also issues flexible premium deferred variable annuity
contracts and flexible premium variable life policies, the assets and
liabilities of which are legally segregated and reflected as Separate Account
assets and liabilities. Separate Account assets and liabilities are carried at
fair value in the consolidated statements of financial position. Investment
income and realized gains and losses of the Separate Accounts accrue directly to
the contractholders (net of fees) and, therefore, are not included in the
Company's consolidated statements of operations.
Results of Operations
<TABLE>
<CAPTION>
($ in thousands)
Three months ended Nine months ended
September 30, September 30,
---------------------------------- ----------------------------------
1998 1997 1998 1997
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Net investment income $2,562 $2,567 $7,796 $7,302
====== ====== ====== ======
Realized capital gains and
losses, after tax $ 20 $ 1 $ 20 $ 6
====== ====== ====== ======
Net income $1,648 $1,667 $5,041 $4,753
====== ====== ====== ======
Investments $163,601 $143,900 $163,601 $143,900
======== ======== ======== ========
</TABLE>
The Company and ALIC amended their reinsurance agreement effective
December 31, 1996. All business in force or issued subsequent to that date is
ceded primarily to ALIC. The Company's results of operations include only
investment income and realized capital gains and losses earned on the assets of
the Company that are not transferred to ALIC under the reinsurance agreements.
Net income for the third quarter of 1998 was $1.6 million compared to
$1.7 million for the third quarter of 1997. The decrease was due to increased
income tax expense, partially offset by increases in realized capital gains .
Net income for the first nine months of 1998 was $5.0 million compared to $4.8
million for the first nine months of 1997. This increase was due primarily to
increased investment income.
Pretax net investment income decreased slightly in the third quarter
and increased in the nine month period ended September 30, 1998 from the
comparable 1997 periods. For the nine month period, investment income earned on
higher investment balances was partially offset by lower portfolio yields.
-10-
<PAGE>
Financial Position
($ in thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
--------------- --------------
<S> <C> <C>
Fixed income securities (1) $160,548 $147,911
Short-term investments 3,053 1,020
-------- --------
Total investments $163,601 $148,931
======== ========
Reinsurance recoverable from ALIC $6,835,792 $6,732,755
========== ==========
Separate Account assets and liabilities $ 608,965 $ 447,658
========== ==========
Contractholder funds $6,689,996 $6,607,130
========== ==========
</TABLE>
(1) Fixed income securities are carried at fair value. Amortized cost for
these securities was $148,937 and $141,553 at September 30, 1998
and December 31, 1997, respectively.
The Company's fixed income securities portfolio consists of publicly
traded corporate bonds, mortgage-backed securities, U.S. government bonds and
foreign government bonds. The Company generally holds its fixed income
securities for the long term, but has classified all of these securities as
available for sale to allow maximum flexibility in portfolio management.
Total investments increased to $163.6 million at September 30, 1998
from $148.9 million at December 31, 1997. The increase in investments is
primarily due to amounts invested from positive cash flows generated from
operations and an increase in unrealized net capital gains on the fixed income
securities portfolio. At September 30, 1998, unrealized net capital gains on the
fixed income securities were $11.6 million compared to $6.4 million at December
31, 1997.
The Company's fixed income securities portfolio is rated investment
grade, with a National Association of Insurance Commissioners ("NAIC") rating of
1 or 2 or a Moody's rating of Aaa, Aa, A, or Baa.
The carrying value of the Company's short-term investment portfolio was
$3.1 million and $1.0 million at September 30, 1998 and December 31, 1997,
respectively. The Company generally invests available cash balances primarily in
taxable short-term securities having a final maturity date or redemption date of
one year or less.
During 1998, contractholder funds increased by $82.9 million and
amounts recoverable from ALIC under the reinsurance agreements increased by
$103.0 million. The increases resulted from sales of the Company's fixed
annuities and interest credited to contractholders, partially offset by
surrenders, withdrawals and benefits paid. Reinsurance recoverable from ALIC
relates to contract benefit obligations ceded to ALIC.
Separate Account assets and liabilities increased by $161.3 million as
compared with December 31, 1997. The increases were primarily attributable to
sales of variable annuity contracts partially offset by variable annuity
surrenders and withdrawals and a decline in the investment performance of the
Separate Account investment portfolios.
-11-
<PAGE>
Liquidity and Capital Resources
Under the terms of reinsurance agreements with ALIC, premiums and
deposits on life policies and investment contracts, excluding those relating to
Separate Accounts, are transferred to ALIC, which maintains the investment
portfolios supporting the Company's products. The Company continues to have
primary liability as the direct insurer for risks reinsured.
Year 2000
The Company is heavily dependent upon complex computer systems for all
phases of its operations, including customer service, policy and contract
administration, investment processing and other enterprise systems. Since many
of the Company's older computer software programs recognize only the last two
digits of the year in any date, some software may fail to operate properly in or
after the year 1999, if the software is not reprogrammed, remediated, or
replaced ("Year 2000"). Also, many systems and equipment that are not typically
thought of as computer-related (referred to as "non-IT") contain imbedded
hardware or software that may have a Year 2000 sensitive component. The Company
believes that many of its counterparties and suppliers also have Year 2000
issues and non-IT issues which could affect the Company.
In 1995, the Corporation commenced a plan consisting of four phases
which are intended to mitigate and/or prevent the adverse affects of the Year
2000 issues on its systems: (1) assessment and analysis of affected systems and
equipment; (2) remediation and compliance of systems and equipment through
strategies that include the enhancement of new and existing systems, upgrades to
operating systems already covered by maintenance agreements and modifications to
existing systems to make them Year 2000 compliant; (3) testing of systems and
equipment using clock-forward testing for both current and future dates and for
dates which trigger specific processing; and (4) contingency planning which will
address possible adverse scenarios and the potential financial impact to the
Company's results of operations, liquidity or financial position.
The Corporation believes that the first step of this plan, assessment,
is complete, and is currently in the remediation phase for all systems and
equipment. The Corporation is relying on other remediation techniques for its
midrange and personal computer environments, and certain mainframe applications.
Management believes the majority of the Corporation's computer systems and
equipment will be remediated by the end of 1998, with the investment processing
systems and certain midrange computers to be remediated by the middle of 1999.
The third phase of the plan which includes clock-forward testing of the
Corporation's systems and non-IT, is scheduled to be largely complete by the end
of 1998. The Corporation is currently in the process of identifying key
processes and developing contingency plans in the event that the systems and
equipment supporting these processes are not Year 2000 compliant at the end of
1999. Management believes these contingency plans should be completed by
mid-1999. Until these plans are complete, management is unable to determine an
estimate of the most reasonably possible worst case scenario due to issues
relating to the Year 2000.
In addition, the Company is actively working with its major external
counterparties and suppliers to assess their compliance efforts and the
Company's exposure to both their Year 2000 issues and non-IT issues. The Company
is currently soliciting its key external counterparties and suppliers to certify
that they are compliant with the Year 2000 issues or are taking actions they
believe will adequately prepare them for the Year 2000. The Company will
continue its efforts to receive responses on Year 2000 compliance from these
parties. If key vendors are unable to meet the Year 2000 requirement, the
Company intends to prepare contingency plans that will allow the Company to
continue to sell to and service its customers. Management believes these
contingency plans should be completed by mid-1999. The Company may also be
exposed to the risk that the issuers of investments will be adversely impacted
by Year 2000 issues.
-12-
<PAGE>
The Company presently believes that it will resolve the Year 2000 issue
in a timely manner, and the costs incurred to achieve Year 2000 compliance of
Company systems are not expected to be material to the Company's results of
operations, liquidity or financial position. Year 2000 costs are expensed as
incurred.
Pending Accounting Standards
In December 1997, the Accounting Standards Executive Committee of the
American Institute of Certified Public Accountants issued Statement of Position
("SOP") 97-3, "Accounting by Insurance and Other Enterprises for
Insurance-Related Assessments." This SOP is required to be adopted in 1999. The
SOP provides guidance concerning when to recognize a liability for
insurance-related assessments and how those liabilities should be measured.
Specifically, insurance-related assessments should be recognized as liabilities
when all of the following criteria have been met: 1) an assessment has been
imposed or it is probable that an assessment will be imposed, 2) the event
obligating an entity to pay an assessment has occurred and 3) the amount of the
assessment can be reasonably estimated. The requirements of this SOP are not
expected to have a material impact on the results of operations, liquidity or
financial position of the Company. The Company expects to adopt the SOP as of
January 1, 1999.
Forward-Looking Statements
The statements contained in this Management's Discussion and Analysis
that are not historical information are forward-looking statements that are
based on management's estimates, assumptions and projections. The Private
Securities Litigation Reform Act of 1995 provides a safe harbor under The
Securities Act of 1933 and The Securities Exchange Act of 1934 for
forward-looking statements.
-13-
<PAGE>
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company and its Board of Directors know of no material legal proceedings
pending to which the Company is a party or which would materially affect the
Company. The Company is involved in pending and threatened litigation in the
normal course of its business in which claims for monetary damages are asserted.
Management, after consultation with legal counsel, does not anticipate the
ultimate liability arising from such pending or threatened litigation to have a
material effect on the financial condition of the Company.
Item 5. OTHER INFORMATION
Not applicable.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits required by Item 601 of Regulation S-K
(2) None
(3) (i) Articles of Incorporation*
(ii) By-laws*
(4) Lincoln Benefit Life Company Flexible Premium
Deferred Annuity Contract and Application**
(10) Reinsurance Agreement between Lincoln Benefit Life
Company and Allstate Life Insurance Company*
(11) None
(15) None
(18) None
(19) None
(22) None
(23)(a) Consent of Independent Public Accountants***
(b) Consent of Attorneys***
(24) None
(27) Financial Data Schedule
(99) None
(b) Reports on 8-K
No reports on Form 8-K were filed during the second quarter of 1998.
* Incorporated herein by reference to the Registration Statement on Form
N-4 for Lincoln Benefit Life Variable Annuity Account (File No. 33-50545,
811-07924) filed April 21, 1998.
** Incorporated herein by reference to the Registration Statement on Form N-4
for Lincoln Benefit Life Variable Annuity Account (File No. 333-50545,
811-07924) filed April 21, 1998. Incorporated herein by reference to the
Registration Statement on Form N-4 for Lincoln Benefit Life Variable
Annuity Account (File No. 333-50737, 811-07924) filed April 22, 1998.
***Incorporated herein by reference to the Registration Statement on Form
S-1 for Lincoln Benefit life Company (File No. 333-59765)filed July 24,
1998. Incorporated herein by reference to the Registration Statement
on Form S-1 for Lincoln Benefit Life Company (File No. 333-59769)filed
July 24, 1998.
-14-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registration has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized, on the 13th day of November 1998.
LINCOLN BENEFIT LIFE COMPANY
(Registrant)
/s/ B. EUGENE WRAITH PRESIDENT, CHIEF OPERATING
- --------------------- OFFICER AND DIRECTOR
B. EUGENE WRAITH (Principal Executive Officer)
/s/ RANDY J. VON FUMETTI SENIOR VICE PRESIDENT
- ------------------------- TREASURER AND DIRECTOR
RANDY J. VON FUMETTI (Principal Financial Officer)
+
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from statements
of financial position at September 30, 1998; Statements of Operations three
months ended September 30, 1998 and September 30, 1997 and nine months ended
September 30, 1998 and September 30, 1997; and statements of cash flows nine
months ended September 30, 1998.
</LEGEND>
<CIK> 0000910739
<NAME> Lincoln Benefit Life Company
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Jan-01-1998
<PERIOD-END> Sep-30-1998
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 160,548
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 163,601
<CASH> 4,691
<RECOVER-REINSURE> 6,995,730
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 7,817,567
<POLICY-LOSSES> 6,985,154
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
0
<COMMON> 2,500
<OTHER-SE> 157,290
<TOTAL-LIABILITY-AND-EQUITY> 7,817,567
0
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</TABLE>
