MONY Completes Demutualization

MONY (The Mutual Life Insurance Company of New York) has completed its conversion from a mutual life insurance company to a stock life insurance company through a demutualization plan approved by its policyholders and by New York insurance regulators. With the demutualization, The Mutual Life Insurance Company of New York also changed its name to MONY Life Insurance Company and became a wholly owned subsidiary of The MONY Group Inc., a New York Stock Exchange-listed financial services holding company.

The company now will make a final determination of eligible policies. Eligible policies are those that were in force on August 14, 1998 (the day that MONY's board approved the demutualization plan) and continued in force at the opening of business on November 16.

Each owner of an eligible policy will receive a minimum of 7 shares of stock (or the equivalent in cash or policy credits) of The MONY Group Inc., the parent holding company of the MONY organization, as specified in the plan. Policyholders also may receive additional variable consideration, based upon the actuarial formula in the demutualization plan. The company will distribute policyholder consideration as soon as the actual amounts are determined and verified. Consideration to policyholders will be based upon the initial public offering price of $23.50 per share of common stock of The MONY Group Inc.

"Converting to a stock form of ownership is the most advantageous choice for our policyholders," noted Michael I. Roth, MONY's chairman and chief executive. "It is the best way to unleash the inherent value of mutual company ownership for our policyholders."

Roth emphasized that benefits and coverages provided by MONY policies are not affected by the company's demutualization.