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: March 31, 1999
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)
1-800-525-9287
(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 March 31, 1999; there were 25,000 shares of common capital stock
outstanding, par value $100 per share all of which shares are held by Allstate
Life Insurance Company.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Consolidated Statements of Financial Position
March 31, 1999 (Unaudited) and December 31, 1998............. 3
Consolidated Statements of Operations
Three Months Ended March 31, 1999 and March 31, 1998
(Unaudited).................................................. 4
Consolidated Statements of Cash Flows
Three Months Ended March 31, 1999 and March 31, 1998
(Unaudited).................................................. 5
Notes to Financial Statements................................ 6
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS................ 9
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE
ABOUT MARKET RISK*........................................... N/A
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.......................................... 13
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS*................. N/A
Item 3. DEFAULTS UPON SENIOR SECURITIES*........................... N/A
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY
HOLDERS*................................................... N/A
Item 5. OTHER INFORMATION.......................................... 13
Item 6. EXHIBITS AND REPORTS ON FORM 8-K........................... 13
SIGNATURE PAGE......................................................... 14
*Omitted pursuant to General Instruction H(2) of Form 10-Q.
2
<PAGE>
<TABLE>
<CAPTION>
LINCOLN BENEFIT LIFE COMPANY
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
MARCH 31, DECEMBER 31,
1999 1998
----------- -----------
<S> <C> <C>
($ in thousands) (UNAUDITED)
ASSETS
Investments
Fixed income securities at fair value (amortized
cost $151,857 and $149,898) $ 157,777 $ 158,984
Short-term 4,191 3,675
---------- ----------
Total investments 161,968 162,659
Cash 1,112 1,735
Reinsurance recoverable from Allstate Life
Insurance Company 7,044,779 6,933,084
Reinsurance recoverable non-affiliates 215,981 191,092
Receivable from affiliates, net 40,761 37,103
Other assets 29,634 30,919
Separate Accounts 861,531 763,416
---------- ----------
TOTAL ASSETS $8,355,766 $8,120,008
========== ==========
LIABILITIES
Reserve for life-contingent contract benefits $ 373,997 $ 338,069
Contractholder funds 6,878,531 6,785,070
Current income taxes payable 4,566 3,659
Deferred income taxes 4,453 5,546
Other liabilities and accrued expenses 73,275 64,470
Separate Accounts 861,531 763,416
---------- ----------
TOTAL LIABILITIES 8,196,353 7,960,230
---------- ----------
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 36,315 34,622
Accumulated other comprehensive income:
Unrealized net capital gains 3,848 5,906
---------- ----------
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME 3,848 5,906
---------- ----------
TOTAL SHAREHOLDER'S EQUITY 159,413 159,778
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $8,355,766 $8,120,008
========== ==========
<FN>
See notes to consolidated financial statements.
</FN>
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
LINCOLN BENEFIT LIFE COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
MARCH 31,
-----------------------
($ in thousands) 1999 1998
---------- ----------
<S> <C> <C>
(UNAUDITED)
REVENUES
Net investment income $ 2,621 $ 2,579
Realized capital gains and losses 1 --
---------- ----------
INCOME BEFORE INCOME TAX EXPENSE 2,622 2,579
Income tax expense 929 912
---------- ----------
NET INCOME $ 1,693 $ 1,667
========== ==========
<FN>
See notes to consolidated financial statements.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
LINCOLN BENEFIT LIFE COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED
MARCH 31,
----------------------------
($ in thousands) 1999 1998
----------- ----------
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,693 $ 1,667
Adjustments to reconcile net income to net
cash provided by operating activities
Amortization and other non-cash items 20 11
Realized capital gains and losses (1) -
Changes in:
Life-contingent contract benefits and
contractholder funds (1,561) 213
Income taxes payable 922 913
Other operating assets and liabilities 646 (781)
---------- ----------
Net cash provided by operating activities 1,719 2,023
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed income securities
Investment collections 4,986 1,792
Investment purchases (6,812) (3,070)
Change in short-term investments, net (516) (3,473)
---------- ----------
Net cash used in investing activities (2,342) (4,751)
---------- ----------
NET DECREASE IN CASH (623) (2,728)
CASH AT BEGINNING OF PERIOD 1,735 4,220
---------- ----------
CASH AT END OF PERIOD $ 1,112 $ 1,492
========== ==========
<FN>
See notes to consolidated financial statements.
</FN>
</TABLE>
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 ("LBL") and its wholly owned
subsidiary, Allstate Financial Distributors, Inc., (formerly Lincoln
Benefit Life Financial Services) a registered broker-dealer
(collectively, the "Company"). LBL is 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"). These consolidated financial
statements have been prepared in conformity with generally accepted
accounting principles.
The consolidated financial statements and notes as of March 31,
1999 and for the three month periods ended March 31, 1999 and 1998 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.
The consolidated financial statements and notes should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Lincoln Benefit Life Company Annual Report on Form 10K
for 1998. The results of operations for the interim periods should not be
considered indicative of results to be expected for the full year.
Effective January 1, 1999, the Company adopted Statement of
Position ("SOP") 97-3, "Accounting by Insurance and Other Enterprises
for Insurance-Related Assessments." 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 adoption of this
statement was immaterial to the Company's results of operations and
financial position.
To conform with the 1999 presentation, certain amounts in the
prior years' consolidated financial statements and notes have been
reclassified.
2. REINSURANCE
The Company has reinsurance agreements whereby premiums, contract
charges, credited interest, policy benefits and certain expenses are
ceded, primarily to ALIC and reflected net of such reinsurance in the
consolidated statements of operations. 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 reinsurance
agreements. Reinsurance recoverable and the related reserve for
life-contingent contract benefits 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.
6
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Investment income earned on the assets which support
contractholder funds and the reserve for life-contingent contract
benefits is not included in the Company's financial statements as those
assets are owned and managed under the terms of reinsurance agreements.
The following amounts were ceded to ALIC under reinsurance agreements.
THREE MONTHS ENDED
MARCH 31,
----------------------------
($ in thousands) 1999 1998
-------- -------
Premiums $ 13,383 $ 9,148
Contract charges 31,897 24,569
Credited interest, policy benefits,
and expenses 167,288 123,098
3. COMPREHENSIVE INCOME
The components of other comprehensive income on a pretax and
after-tax basis for the three months ended March 31, are as follows:
<TABLE>
<CAPTION>
($ in thousands) 1999 1998
---------------------------- ---------------------------
AFTER- AFTER-
PRETAX TAX TAX PRETAX TAX TAX
------ --- --- ------ --- ---
<S> <C> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
------------------------------------
Unrealized holding (losses) gains
arising during the period $(3,165) $ 1,108 $(2,057) $ 23 $ 8 $ 15
Less: reclassification adjustment
for realized net capital gains
included in net income 1 -- 1 -- -- --
------- ------- ------- ------- ------- -------
Other comprehensive
(loss) income $(3,166) $ 1,108 (2,058) $ 23 $ 8 15
======= ======= ------- ======= ======= -------
Net income 1,693 1,667
------- -------
Comprehensive (loss) income $ (365) $ 1,682
======= =======
</TABLE>
7
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
4. REGULATION AND LEGAL PROCEEDINGS
The Company is subject to the effects of a changing social,
economic and regulatory environment. Public and regulatory initiatives
have varied and have included efforts to adversely influence and restrict
premium rates, restrict the Company's ability to cancel policies, impose
underwriting standards and expand overall regulation. The ultimate changes
and eventual effects, if any, of these initiatives are uncertain.
Various other legal and regulatory actions are currently pending
that involve the Company and specific aspects of its conduct of business.
In the opinion of management, the ultimate liability, if any, in one or
more of these actions in excess of amounts currently reserved is not
expected to have a material effect on the results of operations, liquidity
or financial position of the Company.
8
<PAGE>
LINCOLN BENEFIT LIFE COMPANY
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion highlights significant factors influencing results
of operations and changes in financial position of Lincoln Benefit Life Company
("LBL") and its wholly owned subsidiary, Allstate Financial Distributors, Inc.
(formerly Lincoln Benefit Life Financial Services) (collectively the "Company").
It should be read in conjunction with the consolidated financial statements and
related notes thereto found under items 7 and 8 of Part II of the Lincoln
Benefit Life Company Annual Report on Form 10-K for the year ended December 31,
1998.
LBL is 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 Company markets life insurance
and savings products through independent insurance agents and brokers. Life
insurance includes traditional life, such as term and whole life insurance, as
well as variable life and universal life products. Savings products consist of
fixed annuity products, including indexed and market value adjusted annuities,
as well as variable annuities. The Company has identified itself as a single
segment entity.
The assets and liabilities related to flexible premium deferred variable
annuity contracts and variable life policies are legally segregated and
reflected as Separate Account assets and liabilities and 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.
CONSOLIDATED RESULTS OF OPERATIONS
($ in thousands)
THREE MONTHS ENDED
MARCH 31,
1999 1998
-------- ---------
Net investment income $ 2,621 $ 2,579
============= =============
Realized capital gains and losses, after-tax $ 1 $ -
============= =============
Net income $ 1,693 $ 1,667
============= =============
Total investments $ 161,968 $ 153,780
============= =============
The Company has reinsurance agreements under which contract and policy
related transactions are transferred primarily to ALIC. The Company's
consolidated results of operations include only net investment income and
realized capital gains and losses earned on the assets of the Company that are
not transferred under the reinsurance agreements, and income provided by the
Company's broker-dealer subsidiary, Allstate Financial Distributors, Inc..
Net income in the first quarter of 1999 increased $26 thousand compared to
the first quarter of 1998. The increase in net income was driven by higher net
investment income as higher investment balances from positive cash flows
generated from operations were partially offset by slightly lower portfolio
yields. Lower investment yields are due, in part, to the investment of proceeds
from calls and maturities and the investment of positive cash flows from
operations in securities yielding less than the average portfolio rate. In
relatively low interest rate environments, funds from maturing investments may
be reinvested at interest rates lower than those which prevailed when the funds
were previously invested resulting in lower investment yields.
9
<PAGE>
FINANCIAL POSITION
($ in thousands)
MARCH 31, DECEMBER 31,
1999 1998
--------- ------------
Fixed income securities (1) $ 157,777 $ 158,984
Short-term investments 4,191 3,675
-------------- --------------
Total investments $ 161,968 $ 162,659
============== ==============
Reinsurance recoverable from ALIC $ 7,044,779 $ 6,933,084
============== ==============
Separate Account assets and liabilities $ 861,531 $ 763,416
============== ==============
Contractholder funds $ 6,878,531 $ 6,785,070
============== ==============
(1)Fixed income securities are carried at fair value. Amortized cost for these
securities was $151,857 and $149,898 at March 31, 1999 and December 31, 1998,
respectively.
Total investments were $162.0 million at March 31, 1999 compared to $162.7
million at December 31, 1998. Positive cash flows generated from operations were
more than offset by a decrease in unrealized capital gains on fixed income
securities. At March 31, 1999, unrealized net capital gains on fixed income
securities were $5.9 million compared to $9.1 million at December 31, 1998.
At March 31, 1999, all of the Company's fixed income securities portfolio
is rated investment grade, with a National Association of Insurance
Commissioners ("NAIC") rating of 1 or 2, a Moody's rating of Aaa, Aa, A or Baa,
or a comparable Company internal rating.
During the three months ended March 31, 1999, contractholder funds
increased $93.5 million and reinsurance recoverable from ALIC under reinsurance
agreements increased $111.7 million. Sales of fixed annuity contracts and
interest credited to contractholders were partially offset by fixed annuity
surrenders and withdrawals. Reinsurance recoverable from ALIC relates to
contract benefit obligations ceded to ALIC.
Separate Account assets and liabilities increased $98.1 million to $861.5
million at March 31, 1999. The increase was primarily attributable to sales of
flexible premium deferred variable annuity contracts and the favorable
investment performance of the Separate Account investment portfolios, partially
offset by transfers to the fixed account contract option and surrenders and
withdrawals.
LIQUIDITY AND CAPITAL RESOURCES
Under the terms of reinsurance agreements, all premiums and deposits,
excluding those relating to Separate Accounts, are transferred primarily to
ALIC, which maintains the investment portfolios supporting the Company's
products. Payments of policyholder claims, benefits, contract maturities,
contract surrenders and withdrawals and certain operating costs are also
reimbursed primarily by ALIC, under the terms of the reinsurance agreements. The
Company continues to have primary liability as a direct insurer for risks
reinsured. The Company's ability to meet liquidity demands is dependent on
ALIC's ability to meet those demands. ALIC's claim-paying ability was rated Aa2,
AA+ and A+ by Moody's, Standard & Poor's and A.M. Best, respectively at March
31, 1999.
The primary sources for the remainder of the Company's funds are
collections of principal and interest from the investment portfolio and capital
contributions from ALIC. The primary uses for the remainder of the Company's
funds are to purchase investments and pay costs associated with the maintenance
of the Company's investment portfolio.
10
<PAGE>
YEAR 2000
The Company is dependent upon certain services provided for it by the
Corporation including computer-related systems, and systems and equipment not
typically thought of as computer-related (referred to as "non-IT"). For this
reason, the Company is reliant upon the Corporation for the establishment and
maintenance of its computer-related systems and non-IT.
The Corporation is heavily dependent upon complex computer systems for all
phases of its operations, including customer service, insurance processing,
underwriting, loss reserving, investments and other enterprise systems. Since
many of the Corporation'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, non-IT often contains embedded
hardware or software that may have a Year 2000 sensitive component. The
Corporation believes that many of its counterparties and suppliers also have
Year 2000 issues and non-IT issues which could affect the Corporation.
In 1995, the Corporation commenced a plan consisting of four phases which
are intended to mitigate and/or prevent the adverse effects of Year 2000 issues
on its systems: 1) inventory and assessment of affected systems and equipment,
2) remediation and compliance of systems and equipment through strategies that
include the replacement or enhancement of 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 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
Corporation's results of operations, liquidity or financial position.
The Corporation believes that the first three steps of this plan,
assessment, remediation and testing, including clock-forward testing which is
being performed on the Corporation's systems and non-IT, are mostly complete for
the Corporation's critical systems. The Corporation is relying on other
remediation techniques for its midrange and personal computer environments, and
certain mainframe applications.
Certain other processing systems are planned to be remediated by the middle
of 1999, and the implementation and rollout of the remediated personal computer
environment will continue through the third quarter of 1999. Some systems and
non-IT related to discontinued or non-critical functions of the Corporation are
planned to be abandoned by the end of 1999.
The Corporation is currently in the process of developing contingency plans
in the event that the systems supporting key processes are not Year 2000
compliant in or after the year 1999. Management believes these contingency plans
should be completed by mid-1999 with testing of these plans conducted throughout
the second half of 1999. Management has also begun to identify and model the
impacts of the most reasonably likely worst case scenarios. Until these plans
are complete, management is unable to determine an estimate of the most
reasonably likely worst case scenario due to issues relating to the Year 2000.
In addition, the Corporation is actively working with its major external
counterparties and suppliers to assess their compliance efforts and the
Corporation's exposure to both their Year 2000 issues and non-IT issues. This
assessment has included the solicitation of external counterparties and
suppliers, evaluating responses received and testing third party interfaces and
interactions to determine compliance. Currently, the Corporation has solicited
and has received responses from the majority of its counterparties and
suppliers. These responses generally state that they believe they will be Year
2000 compliant and that no transactions will be affected. However, certain
vendors are also in ongoing assessment and testing of their products whereby
they are currently unable to identify all potential problems in certain products
which are used by the Corporation. The Corporation believes that these vendors
will make no statements regarding their Year 2000 readiness other than to
publish declarations addressing specific compliance issues identified with their
products. The Corporation has begun to work with these key vendors and is
developing procedures in order to stay aware of any compliance issues
encountered by these vendors. The Corporation has also decided to test certain
interfaces and interactions to gain additional assurance on third party
compliance. If key vendors are determined to be unable to meet the Year 2000
requirement, the Corporation is preparing contingency plans that will allow the
Corporation to continue to sell its products and to service its customers.
Management believes these contingency plans should be completed by mid-1999. The
Corporation currently does not have sufficient information to determine whether
or not all of its external counterparties and suppliers will be Year 2000 ready.
11
<PAGE>
The Corporation may be exposed to the risk that the issuers of investments
in its portfolios will be adversely impacted by Year 2000 issues. The
Corporation assesses the impact which Year 2000 issues have on the Corporation's
investments as part of due diligence for proposed new investments and in its
ongoing review of all current portfolio holdings. Any recommended actions with
respect to individual investments are determined by taking into account the
potential impact of Year 2000 on the issuer. The Corporation currently does not
have sufficient information to determine the impacts of such exposures on their
results of operations, liquidity or financial position.
The Corporation presently believes that it will resolve the Year 2000 issue
in a timely manner. Year 2000 costs are expensed as incurred, therefore the
majority of the expenses related to this project have been incurred as of March
31, 1999. The Corporation estimates that approximately $125 million in costs
will be incurred between the years of 1995 and 2000. These amounts include costs
directly related to fixing Year 2000 issues, such as modifying software and
hiring Year 2000 solution providers, as well as costs to replace certain
non-compliant systems which would not have been otherwise replaced. A portion of
these costs will be incurred by the Company on a pro rata basis of usage of the
computer-related systems and non-IT, as compared to the usage of all entities
which share these services with the Corporation. These amounts are not expected
to be material to the results of operations of the Company.
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.
12
<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. 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. 333-50545, 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 Post-effective Amendment #1 to
Registration Statement on Form S-1 for Lincoln Benefit life Company (File No.
333-59765) filed April 1, 1999. Incorporated herein by reference to the
Post-effective Amendment #1 to Registration Statement on Form S-1 for Lincoln
Benefit Life Company (File No. 333-59769) filed April 1, 1999.
13
<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 14th day of May, 1999.
LINCOLN BENEFIT LIFE COMPANY
(Registrant)
/s/ B. EUGENE WRAITH PRESIDENT, CHIEF OPERATING
- --------------------- OFFICER AND DIRECTOR
B. EUGENE WRAITH (Principal Executive Officer)
/s/ MARVIN P. EHLY SENIOR VICE PRESIDENT
- --------------------- TREASURER AND DIRECTOR
MARVIN P. EHLY (Principal Financial Officer)
14
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
This schedule contains summary financial information extracted from statements
of financial position at March 31, 1999; Statements of Operations three months
ended March 31, 1999 and March 31, 1998; and Statements of Cash Flows three
months ended March 31, 1999 and March 31, 1998.
</LEGEND>
<CIK> 0000910739
<NAME> Lincoln Benefit Life Company
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1999
<PERIOD-START> Jan-01-1999
<PERIOD-END> Mar-31-1999
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 157,777
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 161,968
<CASH> 1,112
<RECOVER-REINSURE> 7,260,760
<DEFERRED-ACQUISITION> 0
<TOTAL-ASSETS> 8,355,766
<POLICY-LOSSES> 0
<UNEARNED-PREMIUMS> 0
<POLICY-OTHER> 373,997
<POLICY-HOLDER-FUNDS> 6,878,531
<NOTES-PAYABLE> 0
0
0
<COMMON> 2,500
<OTHER-SE> 156,913
<TOTAL-LIABILITY-AND-EQUITY> 8,355,766
0
<INVESTMENT-INCOME> 2,621
<INVESTMENT-GAINS> 1
<OTHER-INCOME> 0
<BENEFITS> 0
<UNDERWRITING-AMORTIZATION> 0
<UNDERWRITING-OTHER> 0
<INCOME-PRETAX> 2,622
<INCOME-TAX> 929
<INCOME-CONTINUING> 1,693
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,693
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
