<PAGE> 1
GOLD TRACK
ANNUAL REPORT
DECEMBER 31, 1996
THE TRAVELERS SEPARATE ACCOUNT QP
FOR VARIABLE ANNUITIES
[TRAVELERSLIFE LOGO]
The Travelers Insurance Company
The Travelers Life and Annuity Company
One Tower Square
Hartford, CT 06183
<PAGE> 2
THE TRAVELERS SEPARATE ACCOUNT QP
FOR VARIABLE ANNUITIES
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
<TABLE>
<S> <C> <C>
ASSETS:
Investments in eligible funds at market value:
Travelers Variable Products Funds, 20,766 shares (cost $483,413).............................. $ 453,184
Templeton Variable Products Series Fund, 22,309 shares (cost $473,839)........................ 488,835
Fidelity's Variable Insurance Products Fund, 53,465 shares (cost $1,316,695).................. 1,319,933
Fidelity's Variable Insurance Products Fund II, 17,939 shares (cost $303,418)................. 303,711
Dreyfus Stock Index Fund, 10,640 shares (cost $218,478)....................................... 215,789
American Odyssey Funds, Inc., 125,522 shares (cost $1,693,194)................................ 1,613,035
Travelers Series Fund Inc., 80,153 shares (cost $416,099)..................................... 413,338
----------
Total Investments (cost $4,905,136)........................................................ $4,807,825
Receivables:
Dividends..................................................................................... 125,703
Purchase payments and transfers from other Travelers accounts................................. 21,510
Other assets.................................................................................... 12
----------
Total Assets............................................................................... 4,955,050
----------
LIABILITIES:
Payable for contract surrenders and transfers to other Travelers accounts ...................... 161
Accrued liabilities............................................................................. 618
----------
Total Liabilities.......................................................................... 779
----------
NET ASSETS: $4,954,271
==========
</TABLE>
See Notes to Financial Statements
-1-
<PAGE> 3
THE TRAVELERS SEPARATE ACCOUNT QP
FOR VARIABLE ANNUITIES
STATEMENT OF OPERATIONS
FOR THE PERIOD OCTOBER 8, 1996 (DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1996
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends..................................................... $ 136,356
EXPENSES:
Insurance charges............................................. 5,330
------------
Net investment income..................................... 131,026
------------
REALIZED GAIN AND UNREALIZED LOSS ON
INVESTMENTS:
Realized gain from investment transactions:
Proceeds from investments sold.............................. $ 415,147
Cost of investments sold.................................... 411,787
------------
Net realized gain......................................... 3,360
Unrealized loss on investments:
December 31, 1996........................................... (97,311)
------------
Net realized gain and unrealized loss.................... (93,951)
------------
Net increase in net assets resulting from operations.......... $ 37,075
============
</TABLE>
See Notes to Financial Statements
-2-
<PAGE> 4
THE TRAVELERS SEPARATE ACCOUNT QP
FOR VARIABLE ANNUITIES
STATEMENT OF CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 8, 1996 (DATE OPERATIONS COMMENCED) TO DECEMBER 31, 1996
<TABLE>
<S> <C>
OPERATIONS:
Net investment income........................................................ $ 131,026
Net realized gain from investment transactions............................... 3,360
Net unrealized loss on investments........................................... (97,311)
------------
Net increase in net assets resulting from operations....................... 37,075
------------
UNIT TRANSACTIONS:
Participant purchase payments
(applicable to 1,381,714 units)............................................ 1,397,560
Participant transfers from other Travelers accounts
(applicable to 3,880,959 units)............................................ 3,970,427
Administrative charges
(applicable to 8,470 units)................................................ (8,730)
Contract surrenders
(applicable to 3,041 units)................................................ (3,085)
Participant transfers to other Travelers accounts
(applicable to 433,608 units).............................................. (438,976)
------------
Net increase in net assets resulting from unit transactions.............. 4,917,196
------------
Net increase in net assets.............................................. 4,954,271
NET ASSETS:
Beginning of period.......................................................... -
------------
End of period................................................................ $ 4,954,271
============
</TABLE>
See Notes to Financial Statements
-3-
<PAGE> 5
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
The Travelers Separate Account QP for Variable Annuities ("Fund QP") is a
separate account of The Travelers Insurance Company ("The Travelers"), an
indirect wholly owned subsidiary of Travelers Group Inc., and is available
for funding certain variable annuity contracts issued by The Travelers.
Fund QP is registered under the Investment Company Act of 1940, as amended,
as a unit investment trust.
Participant purchase payments applied to Fund QP are invested in one or
more eligible funds in accordance with the selection made by the contract
owner. As of December 31, 1996, the eligible funds available under Fund QP
are: Managed Assets Trust; High Yield Bond Trust; Capital Appreciation
Fund; U.S. Government Securities Portfolio, Social Awareness Stock
Portfolio and Utilities Portfolio of The Travelers Series Trust; American
Odyssey Core Equity Fund, American Odyssey Emerging Opportunities Fund,
American Odyssey International Equity Fund, American Odyssey Long-Term Bond
Fund, American Odyssey Intermediate-Term Bond Fund and American Odyssey
Short-Term Bond Fund of American Odyssey Funds, Inc.; Alliance Growth
Portfolio, Smith Barney High Income Portfolio, Smith Barney International
Equity Portfolio, Smith Barney Income and Growth Portfolio, Putnam
Diversified Income Portfolio, MFS Total Return Portfolio and Smith Barney
Money Market Portfolio of Travelers Series Fund Inc. (all of which are
managed by affiliates of The Travelers); Templeton Bond Fund, Templeton
Stock Fund and Templeton Asset Allocation Fund of Templeton Variable
Products Series Fund; High Income Portfolio, Growth Portfolio and
Equity-Income Portfolio of Fidelity's Variable Insurance Products Fund;
Asset Manager Portfolio of Fidelity's Variable Insurance Products Fund II;
and Dreyfus Stock Index Fund. All of the funds are Massachusetts business
trusts, except for American Odyssey Funds, Inc., Dreyfus Stock Index Fund
and Travelers Series Fund Inc. which are incorporated under Maryland law.
The following is a summary of significant accounting policies consistently
followed by Fund QP in the preparation of its financial statements.
SECURITY VALUATION. Investments are valued daily at the net asset values
per share of the underlying funds.
FEDERAL INCOME TAXES. The operations of Fund QP form a part of the total
operations of The Travelers and are not taxed separately. The Travelers is
taxed as a life insurance company under the Internal Revenue Code of 1986,
as amended (the "Code"). Under existing federal income tax law, no taxes
are payable on the investment income of Fund QP. Fund QP is not taxed as a
"regulated investment company" under Subchapter M of the Code.
OTHER. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Security transactions are accounted for on the trade date. Dividend income
is recorded on the ex-dividend date.
2. INVESTMENTS
Purchases and sales of investments aggregated $5,316,923 and $415,147
respectively, for the period ended December 31, 1996. Realized gains and
losses from investment transactions are reported on an identified cost
basis. The cost of investments in eligible funds was $4,905,136 at December
31, 1996. Gross unrealized appreciation for all investments at December 31,
1996 was $28,970. Gross unrealized depreciation for all investments at
December 31, 1996 was $126,281.
-4-
<PAGE> 6
NOTES TO FINANCIAL STATEMENTS - CONTINUED
3. CONTRACT CHARGES
Insurance charges are paid for the mortality and expense risks assumed by
The Travelers. These charges range from 0.60% to 1.20% of the average net
assets of Fund QP on an annual basis. Additionally, for certain allocated
contracts in the accumulation phase, a semi-annual charge of $15 (prorated
for partial periods) is deducted from participant account balances and paid
to The Travelers to cover administrative charges. As of December 31, 1996
all contract owners had a mortality and expense risk charge of 0.95%.
Administrative fees are paid for administrative expenses incurred by The
Travelers. This charge is equivalent to 0.10% of the average net assets of
certain allocated contracts in Fund QP on an annual basis. No
administrative fees were paid for the period ended December 31, 1996.
Participants in American Odyssey Funds, Inc. (the "Funds"), may elect to
enter into a separate asset allocation advisory agreement with Copeland
Financial Services, Inc. ("Copeland"), an affiliate of The Travelers. Under
this arrangement, Copeland provides asset allocation advice and charges
participants an annual fee, plus a one-time set-up fee of $30. The annual
fee, which decreases as a participant's assets in the Funds increase, is
equivalent to an amount of up to 1.50% of the participant's assets in the
Funds. No fees were paid for the period ended December 31, 1996.
No sales charge is deducted from participant purchase payments when they
are received. However, The Travelers assesses a contingent deferred sales
charge if a participant's purchase payment is surrendered within eight
years of its payment date. There were no contingent deferred sales charges
for the period ended December 31, 1996.
-5-
<PAGE> 7
NOTES TO FINANCIAL STATEMENTS - CONTINUED
4. NET CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
DECEMBER 31, 1996
------------------------------------------------------
ACCUMULATION UNIT NET
UNITS VALUE ASSETS
----- ----- ------
<S> <C> <C> <C>
Travelers Variable Products Funds
Managed Assets Trust...................................... 78,508 $ 1.043 $ 81,864
High Yield Bond Trust..................................... 6,520 1.031 6,724
Capital Appreciation Fund................................. 293,629 1.028 301,764
U.S. Government Securities Portfolio...................... 51,072 1.025 52,368
Utilities Portfolio....................................... 7,796 1.034 8,059
Social Awareness Stock Portfolio.......................... 35,689 1.036 36,958
Templeton Variable Products Series Fund
Templeton Bond Fund....................................... 15,303 1.035 15,841
Templeton Stock Fund...................................... 369,698 1.080 399,335
Templeton Asset Allocation Fund........................... 70,211 1.067 74,928
Fidelity's Variable Insurance Products Fund
High Income Portfolio..................................... 91,884 1.013 93,098
Growth Portfolio.......................................... 804,434 0.993 798,611
Equity-Income Portfolio................................... 417,374 1.043 435,284
Fidelity's Variable Insurance Products Fund II
Asset Manager Portfolio................................... 290,881 1.048 304,791
Dreyfus Stock Index Fund.................................... 204,067 1.076 219,606
American Odyssey Funds, Inc.
American Odyssey Core Equity Fund......................... 496,794 1.080 536,569
American Odyssey Emerging Opportunities Fund.............. 404,384 0.885 357,913
American Odyssey International Equity Fund................ 239,079 1.091 260,936
American Odyssey Long-Term Bond Fund...................... 232,943 1.022 238,177
American Odyssey Intermediate-Term Bond Fund.............. 195,701 1.017 198,938
American Odyssey Short-Term Bond Fund..................... 116,408 1.010 117,568
Travelers Series Fund Inc.
Alliance Growth Portfolio................................. 44,777 1.065 47,679
Smith Barney Income and Growth Portfolio.................. 270,469 1.058 286,273
Smith Barney High Income Portfolio........................ 278 1.042 290
MFS Total Return Portfolio................................ 2,087 1.045 2,182
Smith Barney International Equity Portfolio............... 8,808 1.017 8,962
Smith Barney Money Market Portfolio....................... 56,124 1.010 56,670
Putnam Diversified Income Portfolio....................... 12,636 1.019 12,883
---------------
Net Contract Owners' Equity............................................................... $ 4,954,271
===============
</TABLE>
-6-
<PAGE> 8
NOTES TO FINANCIAL STATEMENTS - CONTINUED
5. STATEMENT OF INVESTMENTS
<TABLE>
<CAPTION>
INVESTMENT OPTIONS NO. OF MARKET
SHARES VALUE
---------- ----------
<S> <C> <C>
TRAVELERS VARIABLE PRODUCTS FUNDS (9.4%)
Managed Assets Trust (Cost $81,451) 5,059 $ 75,779
High Yield Bond Trust (Cost $6,541) 710 6,031
Capital Appreciation Fund (Cost $297,678) 7,605 279,265
U.S. Government Securities Portfolio (Cost $52,588) 4,542 49,330
Utilities Portfolio (Cost $7,978) 602 7,352
Social Awareness Stock Portfolio (Cost $37,177) 2,248 35,427
---------- ----------
Total (Cost $483,413) 20,766 453,184
---------- ----------
TEMPLETON VARIABLE PRODUCTS SERIES FUND (10.2%)
Templeton Bond Fund (Cost $15,533) 1,352 15,729
Templeton Stock Fund (Cost $385,085) 17,403 398,185
Templeton Asset Allocation Fund (Cost $73,221) 3,554 74,921
---------- ----------
Total (Cost $473,839) 22,309 488,835
---------- ----------
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND (27.4%)
High Income Portfolio (Cost $91,379) 7,387 92,483
Growth Portfolio (Cost $800,449) 25,562 795,991
Equity-Income Portfolio (Cost $424,867) 20,516 431,459
---------- ----------
Total (Cost $1,316,695) 53,465 1,319,933
---------- ----------
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND II (6.3%)
Asset Manager Portfolio (Cost $303,418)
Total (Cost $303,418) 17,939 303,711
---------- ----------
DREYFUS STOCK INDEX FUND (4.5%)
Total (Cost $218,478) 10,640 215,789
---------- ----------
AMERICAN ODYSSEY FUNDS, INC. (33.6%)
American Odyssey Core Equity Fund (Cost $526,388) 32,601 504,986
American Odyssey Emerging Opportunities Fund (Cost $367,590) 24,498 328,758
American Odyssey International Equity Fund (Cost $248,270) 16,813 253,540
American Odyssey Long-Term Bond Fund (Cost $236,643) 22,214 225,474
American Odyssey Intermediate-Term Bond Fund (Cost $197,437) 18,364 187,310
American Odyssey Short-Term Bond Fund (Cost $116,866) 11,032 112,967
---------- ----------
Total (Cost $1,693,194) 125,522 1,613,035
---------- ----------
TRAVELERS SERIES FUND INC. (8.6%)
Alliance Growth Portfolio (Cost $46,966) 2,835 47,566
Smith Barney Income and Growth Portfolio (Cost $287,900) 18,930 285,079
Smith Barney High Income Portfolio (Cost $304) 25 292
MFS Total Return Portfolio (Cost $2,236) 165 2,176
Smith Barney International Equity Portfolio (Cost $8,848) 714 8,963
Smith Barney Money Market Portfolio (Cost $56,370) 56,370 56,370
Putnam Diversified Income Portfolio (Cost $13,475) 1,114 12,892
---------- ----------
Total (Cost $416,099) 80,153 413,338
---------- ----------
TOTAL INVESTMENT OPTIONS (100%)
(COST $4,905,136) $4,807,825
==========
</TABLE>
-7-
<PAGE> 9
NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. SCHEDULE OF SEPARATE ACCOUNT QP OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 8, 1996 (DATE OPERATIONS COMMENCED) TO DECEMBER 31,
1996
<TABLE>
<CAPTION>
U.S.
CAPITAL GOVERNMENT
MANAGED HIGH YIELD APPRECIATION SECURITIES UTILITIES
ASSETS TRUST BOND TRUST FUND PORTFOLIO PORTFOLIO
------------- ------------- -------------- ------------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............................................. $ 6,056 $ 629 $ 20,975 $ 3,043 $ 657
------------ ----------- ------------ ----------- ----------
EXPENSES:
Insurance charges...................................... 85 7 323 56 8
------------ ----------- ------------ ----------- ----------
Net investment income (loss)..................... 5,971 622 20,652 2,987 649
------------ ----------- ------------ ----------- ----------
REALIZED GAIN (LOSS) AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold..................... - 15 808 17 239
Cost of investments sold........................... - 15 786 16 229
------------ ----------- ------------ ----------- ----------
Net realized gain (loss)......................... - - 22 1 10
------------ ----------- ------------ ----------- ----------
Unrealized gain (loss) on investments:
End of period...................................... (5,672) (510) (18,413) (3,258) (626)
------------ ----------- ------------ ----------- ----------
Net increase (decrease) in net assets
resulting from operations........................ 299 112 2,261 (270) 33
------------ ----------- ------------ ----------- ----------
UNIT TRANSACTIONS:
Participant purchase payments.......................... 14,246 1,615 62,054 11,522 3,398
Participant transfers from other Travelers accounts.... 67,463 5,012 243,946 41,171 4,889
Administrative charges................................. (144) (15) (434) (55) (22)
Contract surrenders.................................... - - - - -
Participant transfers to other Travelers accounts...... - - (6,063) - (239)
------------ ----------- ------------ ----------- ----------
Net increase in net assets resulting
from unit transactions........................... 81,565 6,612 299,503 52,638 8,026
------------ ----------- ------------ ----------- ----------
Net increase in net assets....................... 81,864 6,724 301,764 52,368 8,059
NET ASSETS:
Beginning of period................................ - - - - -
------------ ----------- ------------ ----------- ----------
End of period...................................... $ 81,864 $ 6,724 $ 301,764 $ 52,368 $ 8,059
============ =========== ============ =========== ==========
</TABLE>
-8-
<PAGE> 10
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
SOCIAL TEMPLETON
AWARENESS ASSET FIDELITY'S FIDELITY'S FIDELITY'S FIDELITY'S
STOCK TEMPLETON TEMPLETON ALLOCATION HIGH INCOME GROWTH EQUITY-INCOME ASSET MANAGER
PORTFOLIO BOND FUND STOCK FUND FUND PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------- --------- ---------- ---------- ----------- ---------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 1,315 $ - $ - $ - $ - $ - $ - $ -
- --------- --------- --------- --------- --------- --------- --------- ---------
29 11 352 49 62 846 493 302
- --------- --------- --------- --------- --------- --------- --------- ---------
1,286 (11) (352) (49) (62) (846) (493) (302)
- --------- --------- --------- --------- --------- --------- --------- ---------
- - 2,509 639 902 4,926 49,917 3,660
- - 2,345 606 897 4,890 47,243 3,478
- --------- --------- --------- --------- --------- --------- --------- ---------
- - 164 33 5 36 2,674 182
- --------- --------- --------- --------- --------- --------- --------- ---------
(1,750) 196 13,100 1,700 1,104 (4,458) 6,592 293
- --------- --------- --------- --------- --------- --------- --------- ---------
(464) 185 12,912 1,684 1,047 (5,268) 8,773 173
- --------- --------- --------- --------- --------- --------- --------- ---------
3,970 3,196 84,800 14,826 17,467 190,454 99,468 46,514
33,515 12,472 312,745 58,533 75,602 624,859 361,290 262,701
(63) (12) (527) (115) (117) (1,547) (837) (454)
- - - - (901) (983) - (1,201)
- - (10,595) - - (8,904) (33,410) (2,942)
- --------- --------- --------- --------- --------- --------- --------- ---------
37,422 15,656 386,423 73,244 92,051 803,879 426,511 304,618
- --------- --------- --------- --------- --------- --------- --------- ---------
36,958 15,841 399,335 74,928 93,098 798,611 435,284 304,791
- - - - - - - -
- --------- --------- --------- --------- --------- --------- --------- ---------
$ 36,958 $ 15,841 $ 399,335 $ 74,928 $ 93,098 $ 798,611 $ 435,284 $ 304,791
========= ========= ========= ========= ========= ========= ========= =========
</TABLE>
-9-
<PAGE> 11
NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. SCHEDULE OF SEPARATE ACCOUNT QP OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 8, 1996 (DATE OPERATIONS COMMENCED) TO DECEMBER 31,
1996 (CONTINUED)
<TABLE>
<CAPTION>
AMERICAN
AMERICAN ODYSSEY AMERICAN AMERICAN
ODYSSEY EMERGING ODYSSEY ODYSSEY
DREYFUS STOCK CORE EQUITY OPPORTUNITIES INTERNATIONAL LONG-TERM
INDEX FUND FUND FUND EQUITY FUND BOND FUND
------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............................................. $ 2,900 $ 29,964 $ 27,579 $ 6,305 $ 11,487
----------- ------------ ------------ ------------ ----------
EXPENSES:
Insurance charges...................................... 190 546 335 240 263
----------- ------------ ------------ ------------ ----------
Net investment income (loss)..................... 2,710 29,418 27,244 6,065 11,224
----------- ------------ ------------ ------------ ----------
REALIZED GAIN (LOSS) AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold..................... 194 2,856 1,974 2,590 4,319
Cost of investments sold........................... 178 2,670 2,141 2,518 4,212
----------- ------------ ------------ ------------ ----------
Net realized gain (loss)......................... 16 186 (167) 72 107
----------- ------------ ------------ ------------ ----------
Unrealized gain (loss) on investments:
End of period...................................... (2,689) (21,402) (38,832) 5,270 (11,169)
----------- ------------ ------------ ------------ ----------
Net increase (decrease) in net assets
resulting from operations........................ 37 8,202 (11,755) 11,407 162
----------- ------------ ------------ ------------ ----------
UNIT TRANSACTIONS:
Participant purchase payments.......................... 36,355 98,412 90,453 60,937 64,829
Participant transfers from other Travelers accounts.... 189,963 432,532 280,037 190,213 178,977
Administrative charges................................. (410) (831) (749) (515) (549)
Contract surrenders.................................... - - - - -
Participant transfers to other Travelers accounts...... (6,339) (1,746) (73) (1,106) (5,242)
----------- ------------ ------------ ------------ ----------
Net increase in net assets resulting
from unit transactions........................... 219,569 528,367 369,668 249,529 238,015
----------- ------------ ------------ ------------ ----------
Net increase in net assets....................... 219,606 536,569 357,913 260,936 238,177
NET ASSETS:
Beginning of period................................ - - - - -
----------- ------------ ------------ ------------ ----------
End of period...................................... $ 219,606 $ 536,569 $ 357,913 $ 260,936 $ 238,177
=========== ============ ============ ============ ==========
</TABLE>
-10-
<PAGE> 12
NOTES TO FINANCIAL STATEMENTS - CONTINUED
<TABLE>
<CAPTION>
AMERICAN
ODYSSEY AMERICAN SMITH BARNEY SMITH BARNEY
INTERMEDIATE- ODYSSEY ALLIANCE INCOME AND SMITH BARNEY MFS INTERNATIONAL SMITH BARNEY
TERM SHORT-TERM GROWTH GROWTH HIGH INCOME TOTAL RETURN EQUITY MONEY MARKET
BOND FUND BOND FUND PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------- ---------- ---------- ----------- ------------ ------------- -------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 10,808 $ 4,054 $ 1,224 $ 6,452 $ 17 $ 74 $ 9 $ 2,122
- --------- --------- --------- --------- --------- --------- --------- ---------
191 118 46 342 - 2 6 417
- --------- --------- --------- --------- --------- --------- --------- ---------
10,617 3,936 1,178 6,110 17 72 3 1,705
- --------- --------- --------- --------- --------- --------- --------- ---------
- - - 461 - - - 339,121
- - - 442 - - - 339,121
- --------- --------- --------- --------- --------- --------- --------- ---------
- - - 19 - - - -
- --------- --------- --------- --------- --------- --------- --------- ---------
(10,127) (3,899) 600 (2,821) (12) (60) 115 -
- --------- --------- --------- --------- --------- --------- --------- ---------
490 37 1,778 3,308 5 12 118 1,705
- --------- --------- --------- --------- --------- --------- --------- ---------
44,746 30,759 11,043 49,120 287 2,184 4,232 350,371
155,208 87,106 34,916 234,450 - - 4,629 65,700
(367) (274) (58) (435) (2) (14) (17) (158)
- - - - - - - -
(1,139) (60) - (170) - - - (360,948)
- --------- --------- --------- --------- --------- --------- --------- ---------
198,448 117,531 45,901 282,965 285 2,170 8,844 54,965
- --------- --------- --------- --------- --------- --------- --------- ---------
198,938 117,568 47,679 286,273 290 2,182 8,962 56,670
- - - - - - - -
- --------- --------- --------- --------- --------- --------- --------- ---------
$ 198,938 $ 117,568 $ 47,679 $ 286,273 $ 290 $ 2,182 $ 8,962 $ 56,670
========= ========= ========= ========= ========= ========= ========= =========
</TABLE>
-11-
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS - CONTINUED
6. SCHEDULE OF SEPARATE ACCOUNT QP OPERATIONS AND CHANGES IN NET ASSETS
FOR THE PERIOD OCTOBER 8, 1996 (DATE OPERATIONS COMMENCED) TO DECEMBER 31,
1996 (CONTINUED)
<TABLE>
<CAPTION>
PUTNAM
DIVERSIFIED
INCOME
PORTFOLIO COMBINED
------------ ------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends................................................. $ 686 $ 136,356
---------- ------------
EXPENSES:
Insurance charges......................................... 11 5,330
Net investment income (loss)........................ 675 131,026
---------- ------------
REALIZED GAIN (LOSS) AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Realized gain (loss) from investment transactions:
Proceeds from investments sold........................ - 415,147
Cost of investments sold.............................. - 411,787
---------- ------------
Net realized gain (loss)............................ - 3,360
---------- ------------
Unrealized gain (loss) on investments:
End of period......................................... (583) (97,311)
---------- ------------
Net increase (decrease) in net assets
resulting from operations........................... 92 37,075
---------- ------------
UNIT TRANSACTIONS:
Participant purchase payments............................. 302 1,397,560
Participant transfers from other Travelers accounts....... 12,498 3,970,427
Administrative charges.................................... (9) (8,730)
Contract surrenders....................................... - (3,085)
Participant transfers to other Travelers accounts......... - (438,976)
---------- ------------
Net increase in net assets resulting
from unit transactions.............................. 12,791 4,917,196
---------- ------------
Net increase in net assets.......................... 12,883 4,954,271
NET ASSETS:
Beginning of period................................... - -
---------- ------------
End of period......................................... $ 12,883 $ 4,954,271
========== ============
</TABLE>
-12-
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS - CONTINUED
7. SCHEDULE OF ACCUMULATION UNITS FOR SEPARATE ACCOUNT QP
FOR THE PERIOD OCTOBER 8, 1996 (DATE OPERATIONS COMMENCED) TO DECEMBER 31,
1996
<TABLE>
<CAPTION>
U.S.
CAPITAL GOVERNMENT
MANAGED HIGH YIELD APPRECIATION SECURITIES UTILITIES
ASSETS TRUST BOND TRUST FUND PORTFOLIO PORTFOLIO
------------ ---------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Accumulation units beginning of period ..... - - - - -
Accumulation units purchased and
transferred from other Travelers accounts 78,645 6,534 300,243 51,125 8,047
Accumulation units redeemed and
transferred to other Travelers accounts . (137) (14) (6,614) (53) (251)
----------- ---------- ---------- ---------- -----------
Accumulation units end of period ........... 78,508 6,520 293,629 51,072 7,796
=========== ========== ========== ========== ===========
<CAPTION>
SOCIAL TEMPLETON
AWARENESS ASSET FIDELITY'S
STOCK TEMPLETON TEMPLETON ALLOCATION HIGH INCOME
PORTFOLIO BOND FUND STOCK FUND FUND PORTFOLIO
----------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C>
Accumulation units beginning of period ..... - - - - -
Accumulation units purchased and
transferred from other Travelers accounts 35,750 15,314 380,246 70,319 92,899
Accumulation units redeemed and
transferred to other Travelers accounts . (61) (11) (10,548) (108) (1,015)
----------- ---------- ---------- ---------- -----------
Accumulation units end of period ........... 35,689 15,303 369,698 70,211 91,884
=========== ========== ========== ========== ===========
<CAPTION>
AMERICAN
FIDELITY'S FIDELITY'S FIDELITY'S ODYSSEY
GROWTH EQUITY-INCOME ASSET MANAGER DREYFUS STOCK CORE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO INDEX FUND FUND
----------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Accumulation units beginning of period ..... - - - - -
Accumulation units purchased and
transferred from other Travelers accounts 815,967 450,102 295,230 210,643 499,139
Accumulation units redeemed and
transferred to other Travelers accounts . (11,533) (32,728) (4,349) (6,576) (2,345)
----------- ---------- ---------- ---------- -----------
Accumulation units end of period ........... 804,434 417,374 290,881 204,067 496,794
=========== ========== ========== ========== ===========
<CAPTION>
AMERICAN AMERICAN
ODYSSEY AMERICAN AMERICAN ODYSSEY AMERICAN
EMERGING ODYSSEY ODYSSEY INTERMEDIATE- ODYSSEY
OPPORTUNITIES INTERNATIONAL LONG-TERM TERM SHORT-TERM
FUND EQUITY FUND BOND FUND BOND FUND BOND FUND
------------- ------------- ---------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Accumulation units beginning of period ..... - - - - -
Accumulation units purchased and
transferred from other Travelers accounts 405,313 240,600 238,611 197,187 116,737
Accumulation units redeemed and
transferred to other Travelers accounts . (929) (1,521) (5,668) (1,486) (329)
----------- ---------- ---------- ---------- -----------
Accumulation units end of period ........... 404,384 239,079 232,943 195,701 116,408
=========== ========== ========== ========== ===========
</TABLE>
-13-
<PAGE> 15
NOTES TO FINANCIAL STATEMENTS - CONTINUED
7. SCHEDULE OF ACCUMULATION UNITS FOR SEPARATE ACCOUNT QP
FOR THE PERIOD OCTOBER 8, 1996 (DATE OPERATIONS COMMENCED) TO DECEMBER 31,
1996 (CONTINUED)
<TABLE>
<CAPTION>
SMITH BARNEY SMITH BARNEY
ALLIANCE INCOME AND SMITH BARNEY MFS INTERNATIONAL
GROWTH GROWTH HIGH INCOME TOTAL RETURN EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ----------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
Accumulation units beginning of period ..... - - - - -
Accumulation units purchased and
transferred from other Travelers accounts 44,832 271,038 280 2,100 8,825
Accumulation units redeemed and
transferred to other Travelers accounts . (55) (569) (2) (13) (17)
-------- -------- -------- -------- --------
Accumulation units end of period ........... 44,777 270,469 278 2,087 8,808
======== ======== ======== ======== ========
<CAPTION>
PUTNAM
SMITH BARNEY DIVERSIFIED
MONEY MARKET INCOME
PORTFOLIO PORTFOLIO
----------- ----------
<S> <C> <C>
Accumulation units beginning of period ..... - -
Accumulation units purchased and
transferred from other Travelers accounts 414,303 12,644
Accumulation units redeemed and
transferred to other Travelers accounts . (358,179) (8)
-------- --------
Accumulation units end of period ........... 56,124 12,636
======== ========
</TABLE>
-14-
<PAGE> 16
REPORT OF INDEPENDENT ACCOUNTANTS
To the Owners of Variable Annuity Contracts of
The Travelers Separate Account QP for Variable Annuities:
We have audited the accompanying statement of assets and liabilities of The
Travelers Separate Account QP for Variable Annuities as of December 31, 1996,
and the related statement of operations and changes in net assets for the period
October 8, 1996 (date operations commenced) to December 31, 1996. These
financial statements are the responsibility of management. Our responsibility is
to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards 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. Our procedures included
confirmation of shares owned as of December 31, 1996, by correspondence with the
underlying funds. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of The Travelers Separate Account
QP for Variable Annuities as of December 31, 1996, the results of its operations
and the changes in its net assets for the period October 8, 1996 (date
operations commenced) to December 31, 1996, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
February 7, 1997
-15-
<PAGE> 17
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<PAGE> 18
Independent Accountants
COOPERS & LYBRAND L.L.P.
Hartford, Connecticut
This report is prepared for the general information of contract owners and is
not an offer of shares of The Travelers Separate Account QP for Variable
Annuities or Separate Account QP's underlying funds. It should not be used in
connection with any offer except in conjunction with the Prospectuses for the
Variable Annuity products offered by The Travelers Insurance Company and the
Prospectuses for the underlying funds, which collectively contain all pertinent
information, including the applicable sales commissions.
VG-QP (Annual) (12-96) Printed in U.S.A.
