-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CEdI9CvqtJezeJjwX8CoESxzrvVOipf6rNwrqQWG9ycOBgyzNN70W7L0gRAI3nI0 FFuCaBSRGHwa4NSEcxhCqg== 0000950133-96-001044.txt : 19960701 0000950133-96-001044.hdr.sgml : 19960701 ACCESSION NUMBER: 0000950133-96-001044 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960628 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALDEN JOHN FINANCIAL CORP CENTRAL INDEX KEY: 0000822079 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 592840712 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11396 FILM NUMBER: 96588716 BUSINESS ADDRESS: STREET 1: 7300 CORPORATE CTR DR CITY: MIAMI STATE: FL ZIP: 33126-1223 BUSINESS PHONE: 3057153767 MAIL ADDRESS: STREET 1: 7300 CORPORATE CENTER DRIVE CITY: MIAMI STATE: FL ZIP: 33126-1223 11-K 1 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN 11-K. 1 =============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------- FORM 11-K ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (MARK ONE) / X / ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995 OR / / TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] FOR THE TRANSITION PERIOD FROM __________ TO __________ COMMISSION FILE NUMBER : 1-11396 A. FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT FROM THAT OF THE ISSUER NAMED BELOW: JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE: JOHN ALDEN FINANCIAL CORPORATION 7300 CORPORATE CENTER DRIVE MIAMI, FLORIDA 33126-1223 PAGE 1 OF 22 PAGES EXHIBIT INDEX APPEARS ON PAGE 21 =============================================================================== 2 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN TABLE OF CONTENTS
Page No. -------- Report of Independent Certified Public Accountants. . . . . . . . . . . . . . . . . . . . . . . . . 3 Financial Statements: Statements of Net Assets Available for Benefits, with Fund Information, as of December 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Statements of Changes in Net Assets Available for Benefits, with Fund Information, for the years ended December 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . . . 6 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Additional Information - Supplemental Schedules: Schedule I - Schedule of Assets Held for Investment as of December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Schedule II - Schedule of Investments Acquired and Disposed of during the year ended December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Schedules other than those listed above have been omitted since they are not applicable or the required information is shown in the Financial Statements or related notes. 3 REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS To the Salary and Benefits Committee and Participants of the John Alden Employee Savings Incentive Plan In our opinion, the accompanying statements of net assets available for benefits and the related statements of changes in net assets available for benefits present fairly, in all material respects, the net assets available for benefits of the John Alden Employee Savings Incentive Plan at December 31, 1995 and 1994, and the changes in net assets available for benefits for the years then ended, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the plan'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. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information included in Schedules I and II is presented for purposes of additional analysis and is not a required part of the basic financial statements but is additional information required by ERISA. The Fund Information in the statements of net assets available for benefits and the statements of changes in net assets available for benefits is presented for purposes of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of each fund. Schedules I and II and the Fund Information have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. PRICE WATERHOUSE LLP Miami, Florida June 26, 1996 3 4 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1995
Fund Information ------------------------------------------------------------------ Money Fixed Company Market Income Equity Stock Total Fund Fund Fund Fund -------------- ------------- ------------- ---------------- ------------ ASSETS - -------------------------- Investments at fair value: Short-term investments $15,268,678 $13,459,761 $ 218,318 $ 1,541,186 $ 49,413 Bonds 12,169,743 -- 12,169,743 -- -- Common stock 32,890,412 -- -- 29,542,438 3,347,974 Loans receivable from participants 3,076,858 1,425,966 709,125 844,118 97,649 Accrued investment income 368,015 121,444 193,558 35,113 17,900 ----------- ----------- ----------- ----------- ---------- Net assets available for benefits $63,773,706 $15,007,171 $13,290,744 $31,962,855 $3,512,936 =========== =========== =========== =========== ==========
The accompanying notes are an integral part of these financial statements. 4 5 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION DECEMBER 31, 1994
Fund Information ------------------------------------------------------------------ Money Fixed Company Market Income Equity Stock Total Fund Fund Fund Fund --------------- ------------- ------------ -------------- -------------- ASSETS - -------------------------- Investments at fair value: Short-term investments $16,060,378 $13,017,551 $ 356,203 $ 2,613,674 $ 72,950 Bonds 9,786,208 -- 9,786,208 -- -- Common stock 21,847,588 -- -- 19,281,363 2,566,225 Loans receivable from participants 2,627,507 1,311,240 610,996 629,903 75,368 Accrued investment income 362,692 130,973 176,855 45,454 9,410 Other 25,609 -- 12,333 13,276 -- ----------- ----------- ----------- ----------- ---------- Total assets 50,709,982 14,459,764 10,942,595 22,583,670 2,723,953 ----------- ----------- ----------- ----------- ---------- LIABILITIES - -------------------------- Payables 35,151 17,961 -- -- 17,190 ----------- ----------- ----------- ----------- ---------- Total liabilities 35,151 17,961 -- -- 17,190 ----------- ----------- ----------- ----------- ---------- Net assets available for benefits $50,674,831 $14,441,803 $10,942,595 $22,583,670 $2,706,763 =========== =========== =========== =========== ==========
The accompanying notes are an integral part of these financial statements. 5 6 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1995
Fund Information ----------------------------------------------------------------- Money Fixed Company Market Income Equity Stock Total Fund Fund Fund Fund ------------ ------------ ------------- ------------- ------------- Net investment income (loss): Interest $ 1,932,411 $ 830,132 $ 839,302 $ 241,093 $ 21,884 Dividends 529,809 -- -- 468,947 60,862 Realized gains (losses) 1,359,012 41,889 8,314 1,313,188 (4,379) Change in unrealized appreciation/depreciation in fair value of investments 5,789,488 24,703 1,106,832 5,309,089 (651,136) ----------- ----------- ----------- ----------- ----------- Total net investment income (loss) 9,610,720 896,724 1,954,448 7,332,317 (572,769) ----------- ----------- ----------- ----------- ----------- Contributions: Employee 6,384,024 1,145,271 1,382,377 3,165,667 690,709 Employer 2,569,605 422,862 508,955 1,337,645 300,143 ----------- ----------- ----------- ----------- ----------- Total contributions 8,953,629 1,568,133 1,891,332 4,503,312 990,852 Interfund transfers, net -- (225,741) (453,047) 127,761 551,027 Other inflows 10,398 1,454 3,034 5,133 777 ----------- ----------- ----------- ----------- ----------- Total inflows 18,574,747 2,240,570 3,395,767 11,968,523 969,887 ----------- ----------- ----------- ----------- ----------- Withdrawals and distributions (5,475,872) (1,675,202) (1,047,618) (2,589,338) (163,714) ----------- ----------- ----------- ----------- ----------- Total outflows (5,475,872) (1,675,202) (1,047,618) (2,589,338) (163,714) ----------- ----------- ----------- ----------- ----------- Net increase in net assets available for benefits 13,098,875 565,368 2,348,149 9,379,185 806,173 ----------- ----------- ----------- ----------- ----------- Net assets available for benefits: Beginning of period 50,674,831 14,441,803 10,942,595 22,583,670 2,706,763 ----------- ----------- ----------- ----------- ----------- End of period $63,773,706 $15,007,171 $13,290,744 $31,962,855 $ 3,512,936 =========== =========== =========== =========== ===========
The accompanying notes are an integral part of these financial statements. 6 7 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, WITH FUND INFORMATION YEAR ENDED DECEMBER 31, 1994
Fund Information ---------------------------------------------------------- Money Fixed Company Market Income Equity Stock Total Fund Fund Fund Fund ----------- ----------- ------------- -------------- ---------- Net investment (loss) income: Interest $ 1,490,985 $ 559,014 $ 753,635 $ 160,067 $ 18,269 Dividends 442,251 -- -- 411,070 31,181 Realized gains 204,420 950 3,331 200,139 -- Change in unrealized appreciation/depreciation in fair value of investments (2,806,538) 3,107 (987,483) (1,215,856) (606,306) ----------- ----------- ----------- ----------- ---------- Total net investment (loss) income (668,882) 563,071 (230,517) (444,580) (556,856) ----------- ----------- ----------- ----------- ---------- Contributions: Employee 5,569,083 1,020,410 1,308,274 2,685,948 554,451 Employer 2,370,468 367,725 536,316 1,231,078 235,349 ----------- ----------- ----------- ----------- ---------- Total contributions 7,939,551 1,388,135 1,844,590 3,917,026 789,800 ----------- ----------- ----------- ----------- ---------- Interfund transfers, net -- 601,220 (861,208) 60,195 199,793 ----------- ----------- ----------- ----------- ---------- Total inflows 7,270,669 2,552,426 752,865 3,532,641 432,737 ----------- ----------- ----------- ----------- ---------- Outflows: Withdrawals and distributions (2,766,323) (665,820) (584,096) (1,425,589) (90,818) Other (37,867) 10,758 (8,554) (36,670) (3,401) ----------- ----------- ----------- ----------- ---------- Total outflows (2,804,190) (655,062) (592,650) (1,462,259) (94,219) ----------- ----------- ----------- ----------- ---------- Net increase in net assets available for benefits 4,466,479 1,897,364 160,215 2,070,382 338,518 ----------- ----------- ----------- ----------- ---------- Net assets available for benefits: Beginning of period 46,208,352 12,544,439 10,782,380 20,513,288 2,368,245 ----------- ----------- ----------- ----------- ---------- End of period $50,674,831 $14,441,803 $10,942,595 $22,583,670 $2,706,763 =========== =========== =========== =========== ==========
The accompanying notes are an integral part of these financial statements. 7 8 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN NOTES TO FINANCIAL STATEMENTS NOTE 1 - THE PLAN The following description of the John Alden Employee Savings Incentive Plan (the "Plan") provides general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General The Plan, originally effective on October 10, 1980 and amended effective January 1, 1993, is a defined contribution savings plan, subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA") and is exempt from federal and state income taxes. The Plan covers substantially all of the employees of John Alden Financial Corporation and its subsidiaries ("JAFCO" or the "Company"). Prior to January 1, 1995, employees became eligible to participate in the Plan on any January 1 or July 1 following one year of service. Effective January 1, 1995, the Plan was amended to eliminate the one year of service requirement. Certain members of management of the Company are named as Trustees of the Plan by the Board of Directors of the Company. The Plan is administered by a committee (the "Committee") appointed by the Board of Directors of the Company. As provided by the Plan, the Committee has appointed Bankers Trust Company of New York ("Bankers Trust"), an outside firm, as custodian for the Plan. Plan investments and employee and employer contributions are held in a custodial account established under the Custodial Agreement with Bankers Trust. Tax Status The Plan has received a determination letter indicating the Plan's design meets the requirements for tax exempt status under Section 401(k) of the Internal Revenue Code ("IRC"). As a result of certain amendments to the Plan adopted in 1993, the Plan filed for an updated determination letter covering the amended Plan's tax status. In April 1995, the Plan received a determination letter indicating the design of the Plan, as amended in 1993, is qualified under Section 401(k) of the IRC, subject to the implementation of certain agreed-upon amendments, which have been adopted. The Plan sponsor believes the Plan, as currently designed and operated, is in compliance with the applicable requirements of the IRC. Contributions A participant may elect to contribute from 1% to 14% of pre-tax or after-tax compensation, subject to certain dollar amount limits, through payroll deductions. Certain highly compensated employees are limited to contributions of 6% of pre-tax compensation. For pre-tax contributions, the employee's taxable income is reduced by the amount contributed as provided under Section 401(k) of the IRC. The Plan provides for minimum Company contributions equal to 50% of the first 6% of the contributions made by participating employees with at least one year of service. Supplemental annual Company matching contributions may be made at the discretion of the Company based on the Company's profits. 8 9 A participant may elect to suspend contributions at any time. Suspension of employee contributions, however, will result in suspension of employer contributions during that period. A participant may resume contributions on the first day of the following calendar quarter. The Plan is a tax-deferred plan under federal law, and is subject to a non-discriminatory test. If the test is not met, a portion of the contributions and related earnings made by higher paid employees will not be tax deferred and will be considered taxable income to such employees. Participant Accounts Each participant's account is credited with the participant's contributions, Company contributions and allocations of (a) Plan earnings, based on participant account balances, and (b) forfeitures of terminated participants' nonvested funds, based on the participant's contributions to the Plan. Each participant is entitled to vested benefits in the amount of the participant's vested account balance. Investment Options Participants may invest contributions and transfer account balances among four investment funds, as follows: 1. Money Market Fund - invested primarily in money market instruments with maturities of less than one year. 2. Fixed Income Fund - invested in fixed-rate securities and short term investments. 3. Equity Fund - invested in equities such as common stock and short term investments. 4. Company Stock Fund - invested primarily in common stock of John Alden Financial Corporation. Participants may elect to invest contributions in a single fund, or may elect to split the contributions, in multiples of 25%, among any of the four funds. At December 31, 1995, the number of employees participating in each fund was as follows: Money Market Fund, 1,410; Fixed Income Fund, 1,631; Equity Fund, 2,125; Company Stock Fund, 890. At December 31, 1995, net assets available for benefits to participants who have terminated employment with the Company aggregated $4,568,001. At December 31, 1995, net assets available for benefits relating to individuals who have elected to withdraw from the Plan but have not yet been paid aggregated $436,502. 9 10 Vesting Plan participants are 100% vested in the employee contribution amounts. Plan participants become vested in the employer contributions according to the following vesting schedule:
Years of Vested Plan Eligibility Percentage ---------------- ---------- Less than 1 0% 1-2 30% 2-3 60% 3 or more 100%
Withdrawals Withdrawals from participant accounts including any earnings thereon are permitted, but are limited to once every 12 months. Certain withdrawals from participant accounts are allowed for financial hardship only (in accordance with IRS regulations). Basic or additional contributions will be suspended for a one year period following a hardship withdrawal. Loans The Plan allows participants to borrow the lesser of a) 50% of their total vested balance in all investment funds or b) $50,000, after reduction of the excess of certain outstanding loan balances, if any. Such loans are to be repaid through payroll deductions over a term not to exceed ten years and may be prepaid at the participant's option. These loans bear interest at a rate based on the then prevailing rates charged by financial institutions. Distributions A participant's account becomes payable upon retirement, death, disability or termination of employment. Plan Termination Although it has not expressed any interest to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants will become fully vested in their participant accounts. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting The accounting records of the Plan are maintained on the accrual basis. Valuation of Investments Investments are stated at fair value. Investment transactions are accounted for on a trade date basis. Gain or loss on the sale of investments is computed on the 10 11 average cost method. Investments with initial maturities of less than one year are considered to be short term. The fair market value of each fund's investments are determined as follows: (1) Money Market Fund - Short-term investments are valued at cost, which approximates market value. U.S. Government and agency obligations, commercial paper and corporate bonds are carried at market prices as of the valuation date. (2) Fixed Income Fund - U.S. Government securities and other fixed income securities are valued at fair value based on quoted market prices or current market yields for investments with similar characteristics such as maturity, coupon rate and credit quality, as determined by an independent source. Short-term investments are valued at cost, which approximates market value. (3) Equity Fund - Securities traded on national securities exchanges are valued at the last reported sales price as of the valuation date; securities traded in the over-the-counter market and listed securities for which no sales were reported on the valuation date are valued at the last reported bid price. Short-term investments are valued at cost, which approximates market value. (4) Company Stock Fund - JAFCO common stock is valued at the last reported sales price as reported on the New York Stock Exchange on the valuation date. Short-term investments are valued at cost, which approximates market value. Loans Loans are disbursed from participants' fund balances on a pro-rata basis. Loan repayments are allocated to participants' fund balances based upon the individual's investment fund election at the time of repayment. Loans receivable at December 31, 1995 and 1994 and interest earned on loan balances for 1995 and 1994 are allocated to funds on a pro-rata basis using relative loan repayment and disbursement activity during the respective period. NOTE 3 - INVESTMENT TRANSACTIONS For the years ended December 31, 1995 and 1994, the Plan's investments (including realized gains and losses on investments sold during the year) appreciated (depreciated) in value as follows:
Year Ended December 31, ---------------------------------- 1995 1994 ---------- ------------ Short-term investments $ 71,351 $ 4,057 Bonds 1,106,832 (984,152) Common stock 5,970,317 (1,622,023) ---------- ----------- $7,148,500 $(2,602,118) ========== ===========
11 12 NOTE 4 - ADMINISTRATION OF PLAN ASSETS The Plan's assets are held by Bankers Trust, the custodian for the Plan. Bankers Trust also performs other administrative services for which fees were paid in 1995 and 1994 by the Company. John Alden Asset Management Company ("JAAMCO"), an indirectly wholly-owned subsidiary of the Company, is the investment manager of the Plan. JAAMCO manages the Plan's investments in accordance with the investment guidelines set forth by the Trustees. JAAMCO receives no fees for these services. Certain administrative functions are performed by officers or employees of the Company. No such officer or employee receives compensation from the Plan. 12 13 ADDITIONAL INFORMATION - SUPPLEMENTAL SCHEDULES 13 14 SCHEDULE I Page 1 of 5 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN ADDITIONAL INFORMATION - SCHEDULE OF ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
NUMBER OF IDENTITY OF ISSUE, SHARES OR FAIR BORROWER, ETC. RATE MATURITY FACE AMOUNT COST VALUE - ----------------------------------------------- -------- ---------- ------------- ------------- ------------ Money Market Fund - ----------------- Short-Term Investments: Bankers Trust Pyramid Fund 5.690 N/A $ 1,343,113 $ 1,343,113 $ 1,343,113 U.S. Governments and Agency Obligations: Federal Home Loan Banks 5.050 06/07/96 500,000 497,422 498,495 Federal Home Loan Banks 6.000 08/16/96 500,000 500,000 499,685 Federal Home Loan Banks 5.900 10/30/96 500,000 500,000 499,685 Federal National Mortgage Association 5.500 10/25/96 422,748 420,568 421,027 ------------ ------------ ------------ Total U.S. Government and Agency Obligations 1,922,748 1,917,990 1,918,892 ------------ ------------ ------------ Commercial Paper: Aluminum Company of America 4.625 02/15/96 500,000 493,230 499,265 Boston Edison Company 5.125 03/15/96 500,000 497,225 500,390 Carpenter Technology Corporation 6.050 01/19/96 500,000 495,946 495,946 Carpenter Technology Corporation 6.200 01/19/96 650,000 644,730 644,730 Centex Corporation 6.050 01/04/96 500,000 495,883 495,883 Comdisco Incorporated 6.200 03/05/96 500,000 499,500 500,105 GATX Capital Corporation 6.050 01/25/96 500,000 493,446 493,446 Illinois Power Company 6.100 02/08/96 500,000 495,255 495,255 Lehman Brothers Holding Incorporated 5.500 06/15/96 500,000 496,805 497,780 Louisiana Power & Light Company 5.750 03/01/96 500,000 497,562 500,380 Nationsbank Corporation 4.750 08/15/96 500,000 493,400 497,220 Orix Commercial Alliance 6.120 01/02/96 500,000 497,620 497,620 Pacificorp 6.100 01/31/96 500,000 496,357 496,357 Pennsylvania Power & Light Company 6.050 01/04/96 500,000 497,479 497,479 Smithkline Beecham 5.250 01/26/96 550,000 543,197 549,835 Source One Mortgage 6.150 01/02/96 500,000 498,292 498,292 Textron Financial Corporation 6.030 01/12/96 600,000 595,477 595,478 Tyson Foods Incorporated 6.050 01/12/96 500,000 496,807 496,807 WMX Technologies Incorporated 4.875 06/15/96 450,000 446,988 448,308 ------------ ------------ ------------ Total Commercial Paper 9,750,000 9,675,199 9,700,576 ------------ ------------ ------------ Corporate Bonds and Debentures: Advanta 5.125 11/15/96 500,000 495,650 497,180 ------------ ------------ ------------ Total Money Market Fund Investments $ 13,515,861 $ 13,431,952 $ 13,459,761 ============ ============ ============
14 15 SCHEDULE I Page 2 of 5 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN ADDITIONAL INFORMATION - SCHEDULE OF ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
NUMBER OF IDENTITY OF ISSUE, SHARES OR FAIR BORROWER, ETC. RATE MATURITY FACE AMOUNT COST VALUE - ----------------------------------------------- -------- ---------- ------------- ------------- ------------ Fixed Income Fund - ----------------- Short-Term Investments: Bankers Trust Pyramid Fund 5.690 N/A $ 218,318 $ 218,318 $ 218,318 U.S. Governments and Agency Obligations: Federal Farm Credit Banks Cons 7.950 04/01/02 150,000 149,719 154,313 Federal Home Loan Banks 6.100 03/22/99 100,000 100,000 100,016 Federal Home Loan Banks 5.540 02/01/01 300,000 300,000 298,641 Federal Home Loan Banks 5.900 10/30/96 300,000 300,000 299,811 Federal Home Loan Mortgage Corporation 5.400 03/16/98 250,000 250,000 249,023 Federal Home Loan Mortgage Corporation 6.200 04/15/03 250,000 251,719 255,780 Federal Home Loan Mortgage Corporation 5.400 11/02/00 300,000 300,000 294,468 Federal National Mortgage Association 8.750 06/10/96 400,000 421,906 405,812 U.S. Treasury Notes 5.750 10/31/97 500,000 517,422 504,845 ------------ ------------ ------------ Total U.S. Governments and Agency Obligations 2,550,000 2,590,766 2,562,709 Foreign Government Obligations: Quebec Providence Canada 7.500 07/15/02 100,000 99,765 106,177 ------------ ------------ ------------ Total Government and Agency Obligations 2,650,000 2,690,531 2,668,886 ------------ ------------ ------------ Corporate Bonds and Debentures: Ahmanson H F 7.875 09/01/04 200,000 195,236 217,464 Alabama Power Company 6.750 02/01/03 200,000 197,750 203,250 Allegheny Generating 5.625 09/01/03 200,000 198,118 193,356 American General Corporation 6.250 03/15/03 100,000 97,483 100,135 Aon Corporation 6.300 01/15/04 165,000 146,289 165,774 Arkansas Power & Light Company 7.900 11/01/02 100,000 99,314 104,727 Associates Corporation North America 6.000 06/15/01 210,000 210,000 208,820 Associates Corporation North America 5.250 03/30/00 200,000 198,158 196,368 Bank Of New York Incorporated 6.625 06/15/03 200,000 198,200 205,544 Bank N S Halifax 6.875 05/01/03 100,000 99,911 104,364 Bankers Trust N Y Corporation 8.000 03/15/97 500,000 462,690 512,655 Boeing Company 6.350 06/15/03 200,000 199,560 203,660 Carnival Cruise Lines Incorporated 6.150 10/01/03 200,000 175,816 196,668 Central Bancshares South Incorporated 7.000 05/01/03 200,000 196,168 205,444 Central Power & Light Company 7.000 02/01/01 100,000 94,655 100,750 Discover Card Trust 8.000 10/15/98 100,000 99,424 105,625
15 16 SCHEDULE I Page 3 of 5 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN ADDITIONAL INFORMATION - SCHEDULE OF ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
NUMBER OF IDENTITY OF ISSUE, SHARES OR FAIR BORROWER, ETC. RATE MATURITY FACE AMOUNT COST VALUE - ----------------------------------------------- -------- ---------- ------------- ------------- ------------ Fixed Income Fund - ----------------- Corporate Bonds and Debentures: First Chicago Corporation 6.875 06/15/03 $ 200,000 $ 197,222 $ 208,252 First Colony Corporation 6.625 08/01/03 100,000 99,890 101,480 First Union Corporation 8.770 11/15/04 200,000 199,232 213,958 General Telephone Company Wisconsin 7.500 03/01/02 100,000 97,902 100,500 Georgia Power Company 6.350 08/01/03 100,000 98,700 100,146 Golden West Financial Corporation 6.000 10/01/03 200,000 176,454 196,292 Illinois Power Company 6.500 08/01/03 100,000 99,383 101,037 Indiana & Michigan Electric Company 7.000 05/01/98 100,000 91,238 100,666 Jersey Central Power & Light Company 6.375 05/01/03 100,000 98,795 100,981 Liberty National Bancorp 6.750 06/01/03 250,000 249,595 255,457 Lincoln National 7.250 05/15/05 300,000 298,458 319,365 Mid Penn Telephone 7.750 03/15/02 280,000 277,494 284,418 National City Bank Cleveland 6.500 05/01/03 200,000 191,384 202,594 Nationsbank Corporation 8.125 06/15/02 100,000 99,750 110,569 New York St Elec & Gas Corporation 6.750 10/15/02 100,000 98,026 102,304 New York Telephone Company 4.250 01/01/00 100,000 67,227 94,184 Pacific Gas & Electric Company 8.750 01/01/01 200,000 199,500 223,074 Pacific Gas & Electric Company 6.250 03/01/04 200,000 200,000 200,324 Pacific Tel & Teleg Company 6.500 07/01/03 100,000 100,000 100,634 Paine Webber Group Incorporated 7.000 03/01/00 100,000 99,725 102,091 Progressive Corporation 6.600 01/15/04 96,000 94,109 97,342 Public Service Company Colorado 5.875 07/01/97 100,000 88,334 100,228 Public Service Electric & Gas Company 6.750 03/01/06 200,000 197,542 205,682 Republic N Y Corporation 8.375 05/01/96 200,000 196,902 201,610 Rochester Gas & Electric Corporation 8.000 08/15/99 100,000 100,000 100,928 Salomon Brothers Incorporated 6.875 12/15/03 100,000 100,000 98,798 Santander Financial 6.800 07/15/05 300,000 297,408 307,713 Society National Bank 6.750 06/15/03 100,000 94,150 103,030 Southern California Edison Company 5.625 10/01/02 200,000 199,092 194,256 Standard Credit Card Trust 8.000 10/07/97 100,000 99,480 101,406 State Street Boston Corporation 5.950 09/15/03 200,000 169,764 197,862 Travelers Incorporated 7.750 06/15/99 100,000 100,000 105,765 Travelers Incorporated 6.125 06/15/00 200,000 198,380 200,704 Union Pacific Railroad Company 6.000 09/01/03 295,000 263,435 288,952 United Postal Savings 9.000 07/26/99 500,000 497,594 548,020 Wachovia Corporation 6.375 04/15/03 100,000 88,149 101,923 Zeneca 6.300 06/15/03 300,000 288,255 303,708 ------------ ------------ ------------ Total Corporate Bonds and Debentures 9,296,000 8,981,341 9,500,857 ------------ ------------ ------------ Total Fixed Income Fund Investments $ 12,164,318 $ 11,890,190 $ 12,388,061 ============ ============ ============
16 17 SCHEDULE I Page 4 of 5 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN ADDITIONAL INFORMATION - SCHEDULE OF ASSETS HELD FOR INVESTMENT DECEMBER 31, 1995
NUMBER OF IDENTITY OF ISSUE, SHARES OR FAIR BORROWER, ETC. RATE MATURITY FACE AMOUNT COST VALUE - ----------------------------------------------- -------- ---------- ------------- ------------- ------------ Equity Fund - ----------- Short-Term Investments: Bankers Trust Pyramid Fund 5.690 N/A $ 1,541,186 $ 1,541,186 $ 1,541,186 Common Stock: Allergan Incorporated 13,100 303,483 425,750 Allied Signal 15,400 325,935 731,500 American Express Company 4,800 128,669 198,600 Amsouth Bancorp 11,000 371,514 444,125 Armstrong World Industries Incorporated 8,100 302,781 502,200 Atlantic Southeast Airlines 19,500 595,725 419,250 Bell South Corporation 24,000 672,564 1,044,000 Boeing Company 4,000 197,200 313,500 Brunswick Corporation 21,900 302,375 525,600 Campbell Soup 18,000 840,906 1,080,000 Chemical Banking Corporation 17,000 630,462 998,750 Coca Cola Company 8,400 327,270 623,700 Darden Restaurant Incorporated 3,800 30,509 45,125 Disney Walt Company 9,300 308,995 547,538 Dow Chemical 12,500 894,375 878,125 DuPont E I De Nemours & Company 6,200 306,635 433,225 Fluor Corporation 11,000 444,818 726,000 Ford Mtr Company Del 15,600 300,565 450,450 Gillette Company 13,200 299,280 688,050 Harley Davidson Incorporated 39,000 684,050 1,121,250 Hershey Foods 13,000 854,981 845,000 Hewlett-Packard Company 10,500 895,824 879,375 Home Depot Incorporated 21,000 841,638 1,002,750 Johnson & Johnson 9,300 375,953 795,150 Liz Claiborne Incorporated 9,000 194,625 247,500 MCI Communications Corporation 19,400 299,873 506,825 Merck & Company 7,500 349,125 492,187 Motorola Incorporated 15,000 247,331 855,000 National Semiconductor 31,000 624,712 685,875 Nationsbank Corporation 12,700 629,285 884,238 Philips NV ADR's 30,000 354,000 1,076,250 Reliastar Finl Corporation 15,000 458,250 665,625 Rubbermaid Incorporated 28,000 705,671 714,000 Sherwin Williams Company 9,000 224,829 366,750 Sysco Corporation 32,000 876,494 1,040,000 Torchmark Corporation 13,700 637,694 619,925 Toys R Us Incorporated 32,000 893,600 696,000 Wal Mart Stores Incorporated 36,000 861,235 801,000 Washington Mutual Savings Bank 27,000 627,750 779,625 Wendy's International 47,000 889,475 998,750 Westinghouse Electric Corporation 14,200 305,170 232,525 Worldcom, Incorporated 31,000 650,612 1,092,750 Xerox 7,800 948,090 1,068,600 ------------ ------------ Total Common Stock 22,014,328 29,542,438 ------------ ------------ Total Equity Fund Investments $ 23,555,514 $ 31,083,624 ============ ============
17 18 SCHEDULE I Page 5 of 5 JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN ADDITIONAL INFORMATION - SCHEDULE OF ASSETS HELD FOR INVESTMENT DECEMBER 31,1995
NUMBER OF IDENTITY OF ISSUE, SHARES OR FAIR BORROWER, ETC. RATE MATURITY FACE AMOUNT COST VALUE - ----------------------------------------------- -------- ---------- ------------- ------------- ------------ Company Stock Fund - ------------------ Short-Term Investments: Bankers Trust Pyramid Fund 5.690 N/A $ 49,413 $ 49,413 $ 49,413 Common Stock: John Alden Financial Corporation 160,382 3,797,441 3,347,974 ------------ ------------ Total Company Stock Fund Investments $ 3,846,854 $ 3,397,387 ============ ============
18 19 SCHEDULE II JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN ADDITIONAL INFORMATION - SCHEDULE OF INVESTMENTS ACQUIRED AND DISPOSED OF DURING THE YEAR ENDED DECEMBER 31, 1995
NUMBER OF IDENTITY OF ISSUE, SHARES OR BORROWER, ETC. RATE MATURITY FACE AMOUNT COST PROCEEDS - ----------------------------------------------- -------- ---------- ------------- ------------- ------------ Money Market Fund - ----------------- Bonds ----- Kmart 6.130 06/13/95 $ 250,000 $ 247,999 $ 247,999 Hasbro Incorporated 5.650 12/20/95 550,000 538,520 538,520 ------------ ------------ ------------ Money Market Fund Total 800,000 786,519 786,519 ------------ ------------ ------------ Fixed Income Fund - ----------------- Bonds ----- Republic National Bank of New York 4.750 10/15/95 200,000 198,636 199,334 ------------ ------------ ------------ Fixed Income Fund Total 200,000 198,636 199,334 ------------ ------------ ------------ Equity Fund - ----------- Bonds ----- Arizona Public Service 6.100 07/14/95 500,000 498,051 498,051 Illinois Power Company 6.100 07/11/95 525,000 523,221 523,221 Pennsylvania Power & Light Company 6.020 07/07/95 500,000 497,659 497,659 Source One Mortgage 6.100 07/20/95 500,000 497,119 497,119 ------------ ------------ ------------ Equity Fund Total 2,025,000 2,016,050 2,016,050 ------------ ------------ ------------ Total $ 3,025,000 $ 3,001,205 $ 3,001,903 ============ ============ ============
19 20 SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. JOHN ALDEN EMPLOYEE SAVINGS INCENTIVE PLAN Dated: June 28, 1995 By: /s/ Scott L. Stanton ---------------------------- Scott L. Stanton Trustee 20 21 EXHIBIT INDEX
Exhibit No. Description Page No. ----------- ----------- -------- 23.1 Consent of Independent Certified Public Accountants 22
21 22 Exhibit 23.1 CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-56656) of John Alden Financial Corporation of our report dated June 26, 1996 appearing on page 3 of the Annual Report of the John Alden Employee Savings Incentive Plan on Form 11-K for the year ended December 31, 1995. PRICE WATERHOUSE LLP Miami, Florida June 26, 1996 22 -----END PRIVACY-ENHANCED MESSAGE-----