~~PAGE~~UNITED ~~----~~STATES INTERIM CONDENSED, COMBINED FINANCIAL STATEMENTS Condensed, Combined Balance Sheets as of March 31, 2001 (Unaudited) and December 31, 2000...................3 Condensed, Combined Statements of Income for the three months ended March 31, 2001 and April 1, 2000 (Unaudited).................................................................................4 Condensed, Combined Statements of Cash Flows for the three months ended March 31, 2001 and April 1, 2000 (Unaudited).................................................................................5 Notes to Interim Condensed, Combined Financial Statements (Unaudited).......................................6 ANNUAL COMBINED FINANCIAL STATEMENTS Independent Auditors' Report................................................................................7 Combined Balance Sheets as of December 31, 2000 and December 31, 1999.......................................8 Combined Statements of Income for the years ended December 31, 2000, December 31, 1999 and December 31, 1998................................................................................9 Combined Statements of Shareholder's Interest for the years ended December 31, 2000, December 31, 1999 and December 31, 1998..................................................................10 Combined Statements of Cash Flows for the years ended December 31, 2000, December 31, 1999 and December 31, 1998..................................................................11 Notes to Combined Financial Statements.....................................................................12 GE FINANCIAL ASSURANCE HOLDINGS, INC. AND SUBSIDIARIES PRO FORMA CONDENSED, COMBINED FINANCIAL STATEMENTS Pro Forma Condensed, Combined Financial Information........................................................27 Pro Forma Condensed, Combined Balance Sheet as of March 31, 2001 (Unaudited)...............................28 Pro Forma Condensed, Combined Statements of Income for the three months ended March 31, 2001 and April 1, 2000 (Unaudited)................................................................................29 Pro Forma Condensed, Combined Statements of Income for the years ended December 31, 2000, December 31, 1999 and December 31, 1998 (Unaudited)......................................................31 Notes to Pro Forma Condensed, Combined Financial Information (Unaudited)...................................34

~~---------------------------------------------~~SECURITIES ~~March~~AND ~~31,~~EXCHANGE ~~2001~~COMMISSION December 31, 2000 -------------------- ---------------------- (Unaudited) Assets Investments: Fixed maturities available-for-sale, at fair value: Bonds $ 3,166 $ 2,971 Preferred stocks, redeemable 60 47 Equity securities available-for-sale, at fair value: Common stocks 512 572 Short-term investments 1 3 ------------- ------------ Total investments 3,739 3,593 ------------- ------------ Cash and cash equivalents 163 212 Accrued investment income 45 46 Deferred acquisition costs 103 106 Intangible assets, net of accumulated amortization 28 29 Premium balances receivable 39 36 Reinsurance recoverable: Loss and loss adjustment expense reserves 6 6 Unearned premiums 2 2 Mortgage guaranty tax and loss bonds 177 191 Current income tax recoverable from parent 84 162 Other assets 105 105 ------------- ------------ Total assets $ 4,491 $ 4,488 ============= ============ Liabilities and Shareholder's Interest Liabilities: Loss and loss adjustment expense reserves $ 356 $ 355 Unearned premiums 72 78 Accounts payable and accrued expenses 28 43 Deferred tax liabilities 551 600 Reinsurance balances payable 18 25 Payable to parent and affiliates 8 66 Other liabilities 70 15 ------------- ------------ Total liabilities 1,103 1,182 ------------- ------------ Shareholder's interest: Net unrealized investment gains 74 116 ------------- ------------ Accumulated non-owner changes in equity 74 116 Common stock 14 14 Additional paid-in capital 619 619 Retained earnings 2,681 2,557 ------------- ------------ Total shareholder's interest 3,388 3,306 ------------- ------------ Total liabilities and shareholder's interest $ 4,491 $ 4,488 ============= ============

~~Three Months Ended ------------------------------------------------ March 31~~Washington, ~~2001~~D. ~~April~~C. 1,20549 2000 ----------------------- ------------------ Revenues: Premiums $ 154 $ 152 Net investment income 42 37 Net realized investment gains 35 28 ------------ ------------ Total revenues 231 217 ------------ ------------ Losses and expenses: Loss and loss adjustment expenses incurred 27 8 Underwriting expenses 25 25 Change in deferred acquisition costs, net 3 2 Amortization of intangible assets 1 1 ------------ ------------ Total losses and expenses 56 36 ------------ ------------ Income before income taxes 175 181 Provision for income taxes 51 55 ------------ ------------ Net income 124 126 Retained earnings at beginning of period 2,557 2,105 ------------ ------------ Retained earnings at end of period $ 2,681 $ 2,231 ============ ============

~~Three~~FORM ~~Months Ended~~ 8-~~----------------------------------------------~~K March 31, 2001 April 1, 2000 --------------------- ------------------- Cash flows from operating activities Net income $ 124 $ 126 ------------ ----------- Adjustments to reconcile net income to net cash provided by operating activities: Realized investment gains, net (35) (28) Amortization of investment premiums and discounts, net (1) 1 Amortization of intangible assets 1 1 Deferred income taxes (27) 163 Change in assets and liabilities: Accrued investment income 1 2 Deferred acquisition costs 3 2 Premium balances receivable (3) 6 Reinsurance recoverables - 2 Mortgage guaranty tax and loss bonds 14 - Current tax recoverable from parent 78 (109) Other assets - (15) Loss and loss adjustment expense reserves 1 (33) Unearned premiums (6) (7) Accounts payable and accrued expenses (15) 2 Reinsurance balances payable (7) (3) Payable to parent and affiliates (58) (72) Other liabilities 55 4 ------------ ----------- Total adjustments 1 (84) ------------ ----------- Net cash provided by operating activities 125 42 ------------ ----------- Cash flows from investing activities: Short-term investment activity, net 2 (5) Proceeds from sales and maturities of investment securities 457 831 Purchase of investment securities (633) (851) ------------ ----------- Net cash used in investing activities (174) (25) ------------ ----------- Net increase (decrease) in cash and cash equivalents (49) 17 Cash and cash equivalents at beginning of period 212 129 ------------ ----------- Cash and cash equivalents at end of period $ 163 $ 146 ============ ===========

~~Three~~CURRENT ~~Months~~REPORT ~~Ended March 31, 2001 April 1, 2000 -------------- ------------- Net income $124 $126 Unrealized gains (losses) on investment securities-net (42) 39 ---- ---- Total $ 82 $165 ---- ----~~

~~December~~Pursuant 31, ------------------------------------- 2000 1999 --------------- --------------- Assets Investments: Fixed maturities available-for-sale, at fair value: Bonds $ 2,971 $ 2,587 Preferred stocks, redeemable 47 41 Equity securities available-for-sale, at fair value: Common stocks 572 589 Short-term investments 3 1 --------------- --------------- Total investments 3,593 3,218 --------------- --------------- Cash and cash equivalents 212 129 Accrued investment income 46 39 Deferred acquisition costs 106 116 Intangible assets, net of accumulated amortization 29 34 Premium balances receivable 36 39 Reinsurance recoverable: Loss and loss adjustment expense reserves 6 6 Unearned premiums 2 23 Mortgage guaranty tax and loss bonds 191 187 Current income tax recoverable from parent 162 - Other assets 105 89 --------------- --------------- Total assets $ 4,488 $ 3,880 =============== =============== Liabilities and Shareholder's Interest Liabilities: Loss and loss adjustment expense reserves $ 355 $ 454 Unearned premiums 78 86 Accounts payable and accrued expenses 43 29 Deferred tax liabilities 600 382 Reinsurance balances payable 25 29 Payable to ~~parent~~Section 13 ~~and~~or ~~affiliates 66 96 Other liabilities~~ 15(d) 18of ~~---------------~~the --------------- Total liabilities 1,182 1,094 --------------- --------------- Shareholder's interest: Net unrealized investment gains 116 58 --------------- --------------- Accumulated non-owner changes in equity 116 58 Common stock 14 13 Additional paid-in-capital 619 610 Retained earnings 2,557 2,105 --------------- --------------- Total shareholder's interest 3,306 2,786 --------------- --------------- Total liabilities and shareholder's interest $ 4,488 $ 3,880 =============== ===============

~~Years~~Securities ~~Ended~~Exchange ~~December~~Act 31, ------------------------------------------------ 2000 1999 1998 ------------ ------------ ------------ Revenues: Premiums $ 587 $ 600 $ 663 Net investment income 165 143 132 Net realized investment gains 71 67 96 Other income 1 1 - ------------ ------------ ------------ Total revenues 824 811 891 ------------ ------------ ------------ Losses and expenses: Loss and loss adjustment expenses incurred 40 85 243 Underwriting expenses 99 110 115 Change in deferred acquisition costs, net 10 8 (1) Amortization of ~~intangible~~1934 assets 5 5 5 ------------ ------------ ------------ Total losses and expenses 154 208 362 ------------ ------------ ------------ Income before income taxes 670 603 529 Provision for income taxes 195 182 155 ------------ ------------ ------------ Net income $ 475 $ 421 $ 374 ============ ============ ============

~~Accumulated~~Date ~~Additional~~of ~~Non-owner~~Report Total Common Paid-in Changes Retained Shareholder's Stock Capital In Equity Earnings Interest ---------- ------------ ------------- ---------- -------------- Balances at December 31, 1997 $ 13 $ 610 $ 116 $ 1,568 $ 2,307 Changes other than transactions with shareholder: Net income - - - 374 374 Net unrealized gains on investment securities - - 23 - 23 ------------ Total changes other than transactions with shareholder - - - - 397 ------------ Dividends declared - - - (~~34)~~Date ~~(34)~~of ~~-------~~earliest ~~----------~~event ----------- ---------- ------------ Balances at December 31, 1998 13 610 139 1,908 2,670 Changes other than transactions with shareholder: Net income - - - 421 421 Net unrealized losses on investment securities - - (81reported) -September (81) ------------ Total changes other than transactions with shareholder - - - - 340 ------------ Dividends declared - - - (224) (224) ------- ---------- ----------- ---------- ------------ Balances at December 3111, ~~1999~~2003 13 610 58 2,105 2,786 Changes other than transactions with shareholder: Net income - - - 475 475 Net unrealized gains on investment securities - - 58 - 58 ------------ Total changes other than transactions with shareholder - - - - 533 ------------ Contributed capital 1 9 - - 10 Dividends declared - - - (23) (23) ------- ---------- ----------- ---------- ------------ Balances at December 31, 2000 $ 14 $ 619 $ 116 $ 2,557 $ 3,306 ======= ========== =========== ========== ============

~~Years~~GE ~~Ended~~Financial ~~December~~Assurance 31Holdings, ~~--------------------------------------------------------~~Inc. 2000 1999 1998 ------------- ------------ -------------- Cash flows from operating activities Net income $ 475 $ 421 $ 374 ------------ ------------- -------------- Adjustments to reconcile net income to net cash provided by operating activities: Net realized investment gains (71) (67) (96) Amortization of investment premiums and discounts, net (2) (1) - Amortization of intangible assets 5 5 5 Deferred income taxes 187 5 12 Change in assets and liabilities: Accrued investment income (7) - (6) Deferred acquisition costs 10 8 (1) Premium balances receivable 3 (7) 4 Reinsurance recoverables 21 10 109 Mortgage guaranty tax and loss bonds (4) (13) (64) Current tax recoverable from parent (162) - 98 Other assets (16) 64 (85) Loss and loss adjustment expense reserves (99) (101) (143) Unearned premiums (8) (25) (51) Accounts payable and accrued expenses 14 (6) 8 Reinsurance balances payable (4) (2) (20) Payable to parent and affiliates (30) 84 20 Other liabilities (3) (186) 163 ------------ ------------ -------------- Total adjustments (166) (232) (47) ------------ ------------ -------------- Net cash provided by operating activities 309 189 327 ------------ ------------ -------------- Cash flows from investing activities: Short-term investment activity, net (2) 4 (1) Proceeds from sales and maturities of investment securities 1,166 1,750 1,526 Purchases of investment securities (1,377) (1,805) (1,792) ------------ ------------ -------------- Net cash used in investing activities (213) (51) (267) ------------ ------------ -------------- Cash flows from financing activities: Dividends paid to shareholder (23) (224) (34) Proceeds from issuance of common stock 10 - - ------------ ------------ -------------- Net cash used in financing activities (13) (224) (34) ------------ ------------ -------------- Net increase (decrease) in cash and cash equivalents 83 (86) 26 Cash and cash equivalents at beginning of year 129 215 189 ------------ ------------ -------------- Cash and cash equivalents at end of year $ 212 $ 129 $ 215 ============ ============ ============== Cash payments (receipts) during the year for: Income taxes $ 139 $ 336 $ (87) ============ ============ ==============

~~2000~~(Exact ~~1999~~name ~~1998~~of ~~----------~~registrant ~~----------~~as ~~-----------~~specified in ~~Fixed~~its maturities $ 142 $ 135 $ 123 Equity securities 10 8 7 Cash, cash equivalents and short-term investments 18 7 9 ---------- ---------- ----------- Gross investment income 170 150 139 Investment expenses (5charter) ~~(7) (7) ---------- ---------- ----------- Net investment income $ 165 $ 143 $ 132 ========== ========== ===========~~

2000 1999 1998 ---------- ---------- ----------- Sales proceeds $ 1,166 $ 1,750 $ 1,526 ========== ========== =========== Gross realized investment: Gains $ 168 $ 162 $ 169 Losses (97) (95) (73) ---------- ---------- ----------- Net realized investment gains $ 71 $ 67 $ 96 ========== ========== ===========

Delaware	0-23375	54-1829180
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6604 West Broad Street, Richmond, Virginia		23230
(Address of principal executive offices)		(Zip Code)

~~2000 1999 1998 -------------- -------------- -------------- Net unrealized~~ (~~losses~~804) ~~gains on available~~281- for-sale investment securities before taxes: Fixed maturities $ 107 $ (20) $ 148 Equity securities 71 109 66 -------------- -------------- -------------- Subtotal 178 89 214 Deferred income taxes 62 31 75 -------------- -------------- -------------- Net unrealized gains on available-for-sale investment securities $ 116 $ 58 $ 139 ============== ============== ==============6000

~~2000~~Registrant’s ~~1999~~telephone ~~1998 -------------- -------------- -------------- Net unrealized gains on investment securities - beginning of year $ 58 $ 139 $ 116 Investment securities - net of deferred taxes of $6~~number, ~~$(67)~~including ~~and~~area ~~$(21)~~code 12 (125) (39) Reclassification adjustments - net of deferred taxes of $25, $23 and $33 46 44 62 -------------- -------------- -------------- Net unrealized gains on investment securities - end of year $ 116 $ 58 $ 139 ============== ============== ==============

~~Gross~~N/A Gross Amortized Unrealized Unrealized Fair 2000 Cost Gains Losses Value --------------------------------------- ------------------- -------------------- -------------------- ---------------- Fixed maturities: U.S. government $ 28 $ 2 $ - $ 30 State and municipal 2,717 108 (4) 2,821 U.S. corporate 118 2 - 120 Preferred stock, redeemable 48 1 (2) 47 ------------------- -------------------- -------------------- ---------------- Total fixed maturities 2,911 113 (6) 3,018 Equity securities: Common stock 501 145 (74) 572 Short-term investments 3 - - 3 Total available-for-sale ------------------- -------------------- -------------------- ---------------- securities $ 3,415 $ 258 $ (80) $ 3,593 =================== ==================== ==================== ================ Gross Gross Amortized Unrealized Unrealized Fair 1999 Cost Gains Losses Value --------------------------------------- ------------------- -------------------- -------------------- ---------------- Fixed maturities: U.S. government $ 27 $ 1 $ - $ 28 State and municipal 2,279 25 (82) 2,222 U.S. corporate 299 51 (13) 337 Preferred stock, redeemable 42 1 (2) 41 ------------------- -------------------- -------------------- ---------------- Total fixed maturities 2,647 78 (97) 2,628 Equity securities: Common stock 481 138 (30) 589 Short-term investments 1 - - 1 Total available-for-sale ------------------- -------------------- -------------------- ---------------- securities $ $3,129 $ 216 $ (127) $ 3,218 =================== ==================== ==================== ================

~~2000~~(Former ~~1999~~name ~~1998~~or ~~--------------~~former ~~--------------~~address, ~~--------------~~if ~~Unamortized~~changed ~~balance~~since atlast ~~January 1 $ 116 $ 123 $ 123 Costs deferred 25 29 39 Amortization, net (35~~report.) ~~(36) (39) -------------- -------------- -------------- Unamortized balance at December 31 $ 106 $ 116 $ 123 ============== ============== ==============~~

~~Written~~Item ~~Earned ------- ------ 2000 1999 1998 2000 1999 1998 ---- ---- ---- ---- ---- ---- Direct $ 652 $ 622 $ 641 $ 660 $ 647 $ 687 Assumed~~ 2. 1Acquisition 2or 2Disposition 1 2 Ceded (54) (39) (16) (75) (48) (26) ------------------------------------- ------------------------------------- Net premiums $ 600 $ 584 $ 627 $ 587 $ 600 $ 663 ===================================== ===================================== Percent of ~~amount assumed to net 0~~Assets.3% ~~0.2% 0.3% =====================================~~

~~2000~~On ~~1999~~August ~~1998~~29, ~~-----------------~~2003, ~~--------------~~we ~~----------------~~completed ~~Balance~~the atpreviously ~~January~~announced 1sale $of ~~454~~our $Japanese ~~554~~life insurance $and ~~605~~U.S. ~~Less~~auto ~~reinsurance~~and ~~recoverable~~homeowners 6insurance 7businesses, 9which ~~-----------------~~comprised ~~--------------~~a ~~----------------~~majority ~~Net~~of ~~balance~~our atJapan ~~January~~and 1Auto ~~448~~and ~~547~~Home ~~596~~Insurance ~~-----------------~~segments, ~~-------------- ---------------- Incurred related~~ to ~~insured~~American ~~events~~International ~~of:~~Group, ~~Current~~Inc. ~~year 223 282 373 Prior years~~ (~~183~~“AIG”), ~~(197)~~an ~~(130)~~international ~~-----------------~~insurance ~~--------------~~and ~~----------------~~financial ~~Total~~services organization ~~incurred~~based 40in 85New ~~243~~York, ~~-----------------~~New ~~--------------~~York, ~~----------------~~for ~~Paid~~cash ~~related~~proceeds ~~to insured events~~ of: ~~Current~~approximately ~~year~~$2.15 ~~(5)~~billion. ~~(9)~~Approximately ~~(29)~~$517 ~~Prior~~million ~~years~~of ~~(134)~~the ~~(175)~~cash ~~(263)~~proceeds ~~-----------------~~were ~~-------------- ---------------- Total~~ paid ~~(139)~~to ~~(184)~~our ~~(292)~~affiliates ~~-----------------~~to ~~--------------~~satisfy ~~----------------~~outstanding ~~Net~~debt ~~balance~~of atone ~~December~~of 31the ~~349~~legal ~~448~~entities ~~547~~sold. ~~Add~~The ~~reinsurance~~sale ~~recoverable~~price 6was determined 6through 7arms ~~-----------------~~length ~~--------------~~negotiation. ~~---------------- Balance at December 31 $ 355 $ 454 $ 554 ================= ============== ================~~

~~2000~~Item ~~1999 1998 ---------------- -------------- -------------- Current federal tax provision $~~ 7. $Financial Statements, ~~169~~Pro $Forma $Financial ~~142~~Information ~~Deferred~~and ~~federal~~Exhibits tax provision 187 5 12 ---------------- -------------- -------------- Total federal tax provision 194 174 154 Current state tax provision 1 8 1 ---------------- -------------- -------------- Total tax provision $ 195 $ 182 $ 155 ================ ============== ==============

2000 1999 1998 ---------------- -------------- -------------- Statutory U.S. federal income tax rate 35.0% 35.0% 35.0% State income tax, net of federal income tax effect 0.2 0.9 0.2 Non-deductible goodwill amortization 0.2 0.3 0.3 Tax-exempt income, net of proration (~~6.1~~a) ~~(6.0)~~Financial ~~(6.1)~~Statements ~~Other~~of ~~(0.1)~~Business -Acquired ~~(0.1) ---------------- -------------- -------------- Effective income tax rate 29.2% 30.2% 29.3% ================ ============== ==============~~

~~2000~~None 1999 ------------- --------------- Assets: Loss reserves $ 8 $ 9 Unearned premium reserves 6 6 Basis differences on investment securities 15 13 Bad debts and other nondeductible reserves 8 9 Other 8 11 ------------- --------------- Total deferred income tax assets $ 45 $ 48 ============= =============== Liabilities: Statutory contingency reserve $(521) $(327) Net unrealized gains on investment securities (62) (31) Deferred policy acquisition costs (37) (40) Salvage recoverable (2) (2) Other (23) (30) ------------- --------------- Total deferred income tax liabilities $(645) $(430) ============= =============== Net deferred income tax liability $(600) $(382) ============= ===============

December 31, 2000 December 31, 1999 ------------------------------------------------------ ---------------------------------------------- Shares Shares Par Shares Shares Par Authorized Outstanding Value Authorized Outstanding Value ------------------ ------------- ------------- ---------------- ---------------- --------- GEMIC-NC 3,000,000 2,000,000 $ 1 3,000,000 2,000,000 $ 1 Verex 320 274 12,500 320 274 12,500 GEHEIC (~~a) (a) (a) (a) (a) (a) GEMICO 10,000 2,500 1,000 10,000 2,500 1,000 GERMIC 100,000 100,000 30 100,000 100,000 30 PRMIC 25,000 2,500 1,000 25,000 2,500 1,000 SC Re (~~b) ~~(b)~~Pro Forma ~~(b)~~Financial ~~(b)~~Information (b) (b) GE Reins 25,000 1,000 1,000 - - 1,000 ----------------- ---------------- ---------------- --------------- 3,160,320 2,106,274 3,135,320 2,105,274 ================= ================ ================ ===============

~~Mortgage~~The ~~Insurers~~following ~~Pro~~unaudited ~~Forma~~pro ~~Pro~~forma ~~Forma~~condensed consolidated ~~Assets~~balance ~~Historical~~sheet ~~Historical~~as ~~Adjustments~~of ~~Combined~~June ~~--------------- -------------- ------------- ------------- Investments: Fixed maturities available-for-sale~~30, at2003 ~~fair~~is ~~value~~presented $as ~~50,130~~if $the ~~3,226 $ - $ 53,356 Equity securities available-for-~~sale, atwere ~~fair~~effective ~~value~~as ~~502~~of ~~512~~that -date. ~~1,014~~The ~~Mortgage~~following ~~and~~unaudited ~~other~~pro ~~loans~~forma ~~7,528~~condensed -consolidated -statements ~~7,528~~of Policy loans 1,162 - - 1,162 Short-term investments 1,751 1 - 1,752 Other invested assets 2,339 - - 2,339 --------------- -------------- ------------- ------------- Total investments 63,412 3,739 - 67,151 --------------- -------------- ------------- ------------- Cash and cash equivalents 1,106 163 - 1,269 Accrued investment income ~~1,002~~for 45the -six ~~1,047~~months ~~Deferred~~ended ~~acquisition~~June ~~costs 3~~30,~~456~~ ~~103~~2003 - 3,559 Intangible assets 4,971 28 - 4,999 Other assets 4,072 413 - 4,485 Separate account assets 9,089 - - 9,089 --------------- -------------- ------------- ------------- Total assets $ 87,108 $ 4,491 $ - $ 91,599 =============== ============== ============= ============= Liabilities and ~~Shareholder's Interest Liabilities: Future annuity and contract benefits $ 57,035 $ - $ 356 $ 57,391 Loss and loss adjustment expense reserves - 356 (356) - Unearned premiums - 72 (72) - Liability~~ for ~~policy~~the ~~and~~year ~~contract~~ended December ~~claims 2~~31,~~481~~ -2002 -are ~~2,481~~presented ~~Other~~as ~~policyholder~~if ~~liabilities~~the ~~1,291~~sale -were 72effective ~~1,363~~as ~~Accounts~~of ~~payable~~January and accrued expenses 5,241 675 - 5,916 Short-term borrowings 2,142 - - 2,142 Separate account liabilities 9,089 - - 9,089 Long-term debt 695 - - 695 --------------- -------------- ------------- ------------- Total liabilities 77,974 1,~~103~~ -2002. 79,077 --------------- -------------- ------------- ------------- Minority interest 56 - - 56 Shareholder's interest: Net unrealized investment gains 387 74 - 461 Derivatives qualifying as hedges (281) - - (281) Foreign currency translation adjustments (23) - - (23) --------------- -------------- ------------- ------------- Accumulated non-owner changes in equity 83 74 - 157 Common stock - 14 (14) - Additional paid-in capital 6,320 619 14 6,953 Retained earnings 2,675 2,681 - 5,356 --------------- -------------- ------------- ------------- Total shareholder's interest 9,078 3,388 - 12,466 --------------- -------------- ------------- ------------- Total liabilities and shareholder's interest $ 87,108 $ 4,491 $ - $ 91,599 =============== ============== ============= =============

~~Mortgage~~The ~~Insurers~~unaudited ~~Pro~~pro ~~Forma~~forma ~~Pro~~condensed ~~Forma~~consolidated ~~Historical~~financial ~~Historical~~information ~~Adjustments~~should ~~Combined~~be ~~-------------~~read ~~------------~~in ~~-------------~~conjunction ~~------------~~with ~~Revenues:~~the ~~Premiums~~accompanying ~~$ 1~~notes,~~386~~ ~~$ 154 $ - $ 1,540 Net investment income 982 42 - 1,024 Surrender fee income 106 - - 106 Net realized investment gains 110 35 - 145 Policy fees~~ and ~~other~~the ~~income~~consolidated ~~224~~financial -statements ~~- 224 ------------- ------------ ------------- ------------ Total revenues 2,808 231 - 3,039 ------------- ------------ ------------- ------------ Benefits~~ and ~~expenses:~~footnotes ~~Benefits~~included ~~and other changes~~ in ~~policy~~our ~~reserves~~annual ~~1,349~~report -as 27filed ~~1,376~~on ~~Loss~~Form ~~and loss adjustment expenses incurred~~ 10-K 27for the ~~(27)~~year -ended ~~Interest~~December ~~credited 406 - - 406 General expenses 757 25 - 782 Amortization of intangibles~~31, ~~net~~2002 ~~84 1 - 85 Change in deferred acquisition costs, net (190) 3 - (187) Interest expense 43 - - 43 ------------- ------------ ------------- ------------ Total benefits~~ and ~~expenses~~our ~~2,449~~interim 56report -on ~~2,505~~Form 10-~~------------~~Q ~~------------ ------------- ------------ Income before income taxes, minority interest and cumulative effect of change in accounting principle 359 175 - 534 Provision~~ for ~~income~~the ~~taxes~~period ~~131~~ended 51June - 182 ------------- ------------ ------------- ------------ Income before minority interest and cumulative effect of change in accounting principle 228 124 - 352 Minority interest 1 - - 1 ------------- ------------ ------------- ------------ Income before cumulative effect of change in accounting principle 227 124 - 351 Cumulative effect of change in accounting principle30, ~~net~~2003. ~~of tax 15 - - 15 ------------- ------------ ------------- ------------ Net income $ 212 $ 124 $ - $ 336 ============= ============ ============= ============~~

~~Mortgage~~The ~~Insurers~~following ~~Pro~~unaudited ~~Forma~~pro ~~Pro~~forma ~~Forma~~condensed ~~Historical~~consolidated ~~Historical~~financial ~~Adjustments~~information ~~Combined~~is ~~----------------~~presented ~~------------------~~for ~~-----------------~~illustrative ~~-------------~~purposes ~~Revenues:~~only ~~Premiums $ 1,229 $ 152 $ - $ 1,381 Net investment income 854 37 - 891 Surrender fee income 38 - - 38 Net realized investment gains 21 28 - 49 Policy fees~~ and ~~other~~is ~~income~~not ~~228~~necessarily -an -indication ~~228~~of ~~----------------~~the ~~------------------~~operating ~~-----------------~~results ~~-------------~~or ~~Total~~financial ~~revenues~~position ~~2,370~~that ~~217~~would have -resulted ~~2,587~~had ~~----------------~~the ~~------------------~~sale ~~-----------------~~been ~~-------------~~consummated ~~Benefits~~on ~~and~~the ~~expenses:~~dates ~~Benefits and other changes in policy reserves 995 - 8 1~~indicated,~~003~~ ~~Loss~~nor ~~and~~does ~~loss~~it ~~adjustment~~represent ~~expenses~~our ~~incurred~~future -financial 8position ~~(8)~~or -results ~~Interest credited 341 - - 341 General expenses 885 25 - 910 Amortization~~ of ~~intangibles,~~operations. net 198 1 - 199 Change in deferred acquisition costs, net (331) 2 - (329) Interest expense 27 - - 27 ---------------- ------------------ ----------------- ------------- Total benefits and expenses 2,115 36 - 2,151 ---------------- ------------------ ----------------- ------------- Income before income taxes and minority interest 255 181 - 436 Provision for income taxes 94 55 - 149 ---------------- ------------------ ----------------- ------------- Income before minority interest 161 126 - 287 Minority interest 1 - - 1 ---------------- ------------------ ----------------- ------------- Net income $ 160 $ 126 $ - $ 286 ================ ================== ================= =============

~~Mortgage~~GE ~~Insurers~~FINANCIAL ~~Pro~~ASSURANCE ~~Forma Pro Forma Historical Historical Adjustments Combined -------------- ----------------- ----------------- --------------- Revenues: Premiums $ 5~~HOLDINGS,~~465~~ $INC. 587 $ - $ 6,052 Net investment income 3,715 165 - 3,880 Surrender fee income 1,253 - - 1,253 Net realized investment gains 162 71 - 233 Net commission income 47 - - 47 Policy fees and other income 883 1 - 884 -------------- ----------------- ----------------- --------------- Total revenues 11,525 824 - 12,349 -------------- ----------------- ----------------- --------------- Benefits and expenses: Benefits and other changes in policy reserves 5,378 - 40 5,418 Loss and loss adjustment expenses incurred - 40 (40) - Interest credited 1,497 - - 1,497 General expenses 3,241 99 - 3,340 Amortization of intangibles, net 1,222 5 - 1,227 Change in deferred acquisition costs, net (1,132) 10 - (1,122) Interest expense 143 - - 143 -------------- ----------------- ----------------- --------------- Total benefits and expenses 10,349 154 - 10,503 -------------- ----------------- ----------------- --------------- Income before income taxes and minority interest 1,176 670 - 1,846 Provision for income taxes 402 195 - 597 -------------- ----------------- ----------------- --------------- Income before minority interest 774 475 - 1,249 Minority interest 6 - - 6 -------------- ----------------- ----------------- --------------- Net income $ 768 $ 475 $ - $ 1,243 ============== ================= ================= ===============

~~Mortgage~~PRO ~~Insurers~~FORMA ~~Pro~~CONDENSED ~~Forma~~CONSOLIDATED ~~Pro~~BALANCE ~~Forma~~SHEET ~~Historical~~AS ~~Historical~~OF ~~Adjustments~~JUNE ~~Combined ------------- ------------- ------------ ----------- Revenues: Premiums $ 3~~30,~~542~~ $2003 600 $ - $ 4,142 Net investment income 3,123 143 - 3,266 Surrender fee income 56 - - 56 Net realized investment gains 165 67 - 232 Net commission income 63 - - 63 Policy fees and other income 603 1 - 604 ------------- ------------- ------------ ----------- Total revenues 7,552 811 - 8,363 ------------- ------------- ------------ ----------- Benefits and expenses: Benefits and other changes in policy reserves 3,522 - 85 3,607 Loss and loss adjustment expenses incurred - 85 (85) - Interest credited 1,298 - - 1,298 General expenses 2,206 110 - 2,316 Amortization of intangibles, net 340 5 - 345 Change in deferred acquisition costs, net (774) 8 - (766) Interest expense 95 - - 95 ------------- ------------- ------------ ----------- Total benefits and expenses 6,687 208 - 6,895 ------------- ------------- ------------ ----------- Income before income taxes, minority interest and cumulative effect of accounting change 865 603 - 1,468 Provision for income taxes 248 182 - 430 ------------- ------------- ------------ ----------- Income before minority interest and cumulative effect of accounting change 617 421 - 1,038 Minority interest 4 - - 4 ------------- ------------- ------------ ----------- Income before cumulative effect of accounting change 613 421 - 1,034 Cumulative effect of accounting change, net of tax 25 - - 25 ------------- ------------- ------------ ----------- Net income $ 638 $ 421 $ - $ 1,059 ============= ============= ============ ===========

Mortgage Insurers Pro Forma Pro Forma Historical Historical Adjustments Combined ------------- ------------- ------------ ----------- Revenues: Premiums $ 3,207 $ 663 $ - $ 3,870 Net investment income 2,896 132 - 3,028 Surrender fee income 46 - - 46 Net realized investment gains 116 96 - 212 Net commission income 27 - - 27 Policy fees and other income 380 - - 380 ------------- ------------- ------------ ----------- Total revenues 6,672 891 - 7,563 ------------- ------------- ------------ ----------- Benefits and expenses: Benefits and other changes in policy reserves 3,229 - 243 3,472 Loss and loss adjustment expenses incurred - 243 (~~243) - Interest credited 1,260 - - 1,260 General expenses 1,455 115 - 1,570 Amortization of intangibles, net 286 5 - 291 Change~~ Dollars in ~~deferred acquisition costs, net (446~~millions) (1) - (447) Interest expense 95 - - 95 ------------- ------------- ------------ ----------- Total benefits and expenses 5,879 362 - 6,241 ------------- ------------- ------------ ----------- Income before income taxes 793 529 - 1,322 Provision for income taxes 301 155 - 456 ------------- ------------- ------------ ----------- Net income $ 492 $ 374 $ - $ 866 ============= ============= ============ ===========

(Unaudited)

	Historical			Pro forma Adjustments (1)			Pro forma
Assets
Investments:
Fixed maturities available-for-sale, at fair value	$	61,824		$			$	61,824
Equity securities available-for-sale, at fair value		763						763
Mortgage and other loans, net of valuation allowance		6,026						6,026
Policy loans		997						997
Other invested assets		3,206						3,206
Short-term investments		1,190						1,190

Total investments		74,006						74,006

Cash and cash equivalents		644			1,747			2,391
Accrued investment income		1,208						1,208
Deferred acquisition costs		4,222						4,222
Intangible assets		1,356						1,356
Goodwill		1,600						1,600
Reinsurance recoverable		2,261						2,261
Other assets		1,458						1,458
Separate account assets		7,636						7,636
Assets held for sale		22,708			(22,708	)		—

Total assets	$	117,099		$	(20,961	)	$	96,138

Liabilities and Shareholder’s Interest
Liabilities:
Future annuity and contract benefits	$	58,318		$			$	58,318
Liability for policy and contract claims		2,775			10			2,785
Other policyholder liabilities		316						316
Other liabilities		6,931			90			7,021
Short-term debt		1,884						1,884
Long-term debt		478						478
Separate account liabilities		7,636						7,636
Liabilities associated with assets held for sale		20,264			(20,264	)		—

Total liabilities		98,602			(20,164	)		78,438

Minority interest in and equity of consolidated subsidiaries		266						266

Shareholder’s interest:
Net unrealized investment gains		3,746			(1,465	)		2,281
Derivatives qualifying as hedges		(459	)		647			188
Foreign currency translation adjustments		(5	)		35			30

Accumulated non-owner changes in equity		3,282			(783	)		2,499
Common stock ($1 par value, 1,000 shares authorized, issued and outstanding)		—			—			—
Additional paid-in capital		6,953						6,953
Retained earnings		7,996			(14	)		7,982

Total shareholder’s interest		18,231			(797	)		17,434

Total liabilities and shareholder’s interest	$	117,099		$	(20,961	)	$	96,138

See notes to pro forma condensed consolidated financial statements

GE FINANCIAL ASSURANCE HOLDINGS, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2003

(Dollars in millions)

(Unaudited)

	Six Months Ended June 30, 2003
	Historical			Pro forma Adjustments (1)			Pro forma
Revenues:
Premiums	$	3,512		$	(1,111	)	$	2,401
Net investment income		2,266			(316	)		1,950
Surrender fee income		83			(61	)		22
Net realized investment gains		1			(3	)		(2	)
Policy fees and other income		366			(2	)		364

Total revenues		6,228			(1,493	)		4,735

Benefits and expenses:
Benefits and other changes in policy reserves		3,144			(877	)		2,267
Interest credited		859			(50	)		809
Commissions		554			(88	)		466
General expenses		857			(229	)		628
Amortization of intangibles, net		162			(73	)		89
Change in deferred acquisition costs, net		(359	)		78			(281	)
Interest expense		63			(8	)		55

Total benefits and expenses		5,280			(1,247	)		4,033

Income before income taxes and minority interest		948			(246	)		702
Provision for income taxes		322			(97	)		225

Income before minority interest		626			(149	)		477
Minority interest		2			—			2

Net income from continuing operations	$	624		$	(149	)	$	475

See notes to pro forma condensed consolidated financial statements

GE FINANCIAL ASSURANCE HOLDINGS, INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2002

(Dollars in millions)

(Unaudited)

	Year Ended December 31, 2002
	Historical			Pro forma Adjustments (1)			Pro forma
Revenues:
Premiums	$	6,662		$	(1,990	)	$	4,672
Net investment income		4,169			(510	)		3,659
Surrender fee income		179			(138	)		41
Net realized investment gains		447			(24	)		423
Policy fees and other income		806			(4	)		802

Total revenues		12,263			(2,666	)		9,597

Benefits and expenses:
Benefits and other changes in policy reserves		5,949			(1,627	)		4,322
Interest credited		1,724			(79	)		1,645
Commissions		1,163			(158	)		1,005
General expenses		1,847			(432	)		1,415
Amortization of intangibles, net		344			(172	)		172
Change in deferred acquisition costs, net		(805	)		113			(692	)
Interest expense		138			(16	)		122

Total benefits and expenses		10,360			(2,371	)		7,989

Income before income taxes and minority interest		1,903			(295	)		1,608
Provision for income taxes		440			(83	)		357

Income before minority interest		1,463			(212	)		1,251
Minority interest		6			—			6

Net income from continuing operations	$	1,457		$	(212	)	$	1,245

See notes to pro forma condensed consolidated financial statements

GE FINANCIAL ASSURANCE HOLDINGS, INC.

NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Reference numbers correspond to those on the pro forma condensed consolidated financial statements.

(1) Reflects adjustments necessary to remove the historical results of operations and the assets and liabilities of substantially all of the Japanese life insurance and U. S. auto and homeowners insurance businesses, which comprised the majority of our Japan and Auto and Home Insurance segments. These operations were sold during the third quarter of 2003 for approximately $2.15 billion, which includes $517 million paid to our affiliates. The resulting gain/(loss) on the sale will be recognized in the third quarter of 2003. Prior to the completion of the sale, a dividend of $370 million was paid to GEFAHI by one of the entities that was sold. The amount of this pre-sale dividend was $115 million higher than anticipated as at June 30, 2003. Accordingly, a pro forma adjustment of $115 million was made to adjust the impact to cash, as this amount had been previously included in Assets Held for Sale.

2.1

Stock Purchase Agreement among Brookfield Life Assurance Co. Ltd., General Electric Capital Corporation, GE Capital Asia Investments, GE Financial Assurance Holdings, Inc. and American International Reinsurance Company, Ltd. dated as of June 26, 2003 (the “Japan SPA”)

2.2

Amendment to Japan SPA No. 1, dated August 29, 2003 among Brookfield Life Assurance Co. Ltd., General Electric Capital Corporation, GE Capital Asia Investments, GE Financial Assurance Holdings, Inc. and American International Reinsurance Company, Ltd

2.3

Stock Purchase Agreement between GE Financial Assurance Holdings, Inc. and Lexington Insurance Company dated as of June 26, 2003 (the “Auto SPA”)

2.4

Amendment to Auto SPA No. 1, dated August 29, 2003 between GE Financial Assurance Holdings, Inc. and Lexington Insurance Company

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

By:		/s/ Richard P. McKenney
Richard P. McKenney
Senior Vice President and Chief Financial Officer (Principal Financial Officer)

By:		/s/ Jamie S. Miller
Jamie S. Miller
Vice President and Controller (Principal Accounting Officer)

Dated: September 11, 2003

EXHIBIT INDEX

We omitted the schedules and exhibits referenced in the attached agreements in accordance with Item 601(b)(2) of Regulation S-K. In accordance with Item 601(b)(2) of Regulation S-K, we will furnish a copy of any omitted schedule and/or exhibit supplementally to the Securities and Exchange Commission upon request.

2.1

2.2

2.3

Stock Purchase Agreement between GE Financial Assurance Holdings, Inc. and Lexington Insurance Company dated as of June 26, 2003 (the “Auto SPA”)

2.4

Amendment to Auto SPA No. 1, dated August 29, 2003 between GE Financial Assurance Holdings, Inc. and Lexington Insurance Company

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