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CONSECO(R)
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CONSECO VARIABLE INSURANCE COMPANY
ANNUAL REPORT
TO CONTRACT OWNERS
December 31, 1999
Conseco Variable Annuity Account G
<PAGE>
ANNUAL REPORT TO CONTRACT OWNERS
TABLE OF CONTENTS
DECEMBER 31, 1999
================================================================================
CONSECO VARIABLE ANNUITY ACCOUNT G PAGE
Statement of Assets and Liabilities as of December 31, 1999............... 2
Statements of Operations and Statements of Changes in Net Assets
for the Year Ended December 31, 1999.................................... 4
Statements of Operations and Statements of Changes in Net Assets
for the Period April 29, 1998 through December 31, 1998................. 10
Notes to Financial Statements............................................. 16
Report of Independent Accountants ........................................ 18
1
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
===================================================================================================
NET ASSET
SHARES COST VALUE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
Investments in portfolio shares, at net asset value (Note 2):
The Alger American Fund:
Growth Portfolio...................................... 5,917.2 $ 358,923 $ 380,947
Leveraged AllCap Portfolio............................ 9,918.5 433,415 574,978
MidCap Growth Portfolio............................... 5,784.1 161,279 186,420
Small Capitalization Portfolio........................ 896.1 38,845 49,418
American Century Variable Portfolios, Inc.:
Income and Growth Fund................................ 67,354.6 518,365 538,837
International Fund.................................... 44,177.5 551,741 552,219
Value Fund............................................ 14,971.5 93,382 89,080
Berger Institutional Products Trust:
100 Fund.............................................. 2,257.5 40,542 43,389
Growth and Income Fund................................ 29,627.7 615,571 783,652
Small Company Growth Fund............................. 1,664.1 29,586 39,123
BIAM International Fund............................... 189.3 2,286 2,769
Conseco Series Trust:
Balanced Portfolio.................................... 21,123.7 300,043 309,480
Equity Portfolio...................................... 4,072.4 96,084 94,401
Fixed Income Portfolio................................ 9,479.4 91,574 88,969
Government Securities Portfolio....................... 10,559.3 118,700 115,741
Money Market Portfolio................................ 7,999,930.0 7,999,930 7,999,930
Dreyfus Stock Index Fund................................ 13,156.2 487,644 505,855
The Dreyfus Socially Responsible Growth Fund, Inc....... 2,964.7 102,968 115,830
Dreyfus Variable Investment Fund:
Disciplined Stock Portfolio........................... 2,192.8 54,504 59,030
International Value Portfolio......................... 1,691.1 25,964 26,499
Federated Insurance Series:
High Income Bond Fund II.............................. 15,797.0 162,085 161,761
International Equity Fund II.......................... 347.9 6,904 9,616
Utility Fund II....................................... 2,006.2 29,044 28,790
Invesco Variable Investment Funds, Inc.:
Equity Income Fund.................................... 642.6 13,166 13,501
High Yield Fund....................................... 17,580.7 208,388 202,354
Janus Aspen Series:
Aggressive Growth Portfolio........................... 9,395.2 419,959 560,802
Growth Portfolio...................................... 21,517.0 674,168 724,048
Worldwide Growth Portfolio............................ 16,860.2 596,034 805,074
Lazard Retirement Series, Inc.:
Equity Portfolio...................................... 885.8 10,801 10,214
Small Cap Portfolio................................... 376.7 3,812 3,699
Lord Abbett Series Fund, Inc.:
Growth and Income Portfolio........................... 3,135.8 65,959 69,490
Mitchell Hutchins Series Trust:
Growth and Income Portfolio........................... 78.8 1,227 1,288
Neuberger Berman Advisers Management Trust:
Limited Maturity Bond Portfolio....................... 3,822.4 50,333 50,609
Partners Portfolio.................................... 932.3 18,104 18,311
Strong Variable Insurance Funds, Inc.:
Mid Cap Growth Fund II................................ 7,798.1 181,411 236,828
Strong Opportunity Fund II, Inc......................... 5,263.6 124,271 136,801
Van Eck Worldwide Insurance Trust:
Worldwide Bond Fund................................... 2,139.0 24,570 22,866
Worldwide Emerging Markets Fund....................... 4,657.8 45,035 66,420
Worldwide Hard Assets Fund............................ 2,062.0 22,509 22,600
Worldwide Real Estate Fund............................ 504.4 4,856 4,616
- ---------------------------------------------------------------------------------------------------
Total assets................................................................ 15,706,255
Liabilities:
Amounts due to Conseco Variable Insurance Company............................... 15,635
- ---------------------------------------------------------------------------------------------------
Net assets (Note 6)......................................................... $15,690,620
===================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENT OF ASSETS AND LIABILITIES - CONTINUED
DECEMBER 31, 1999
<TABLE>
<CAPTION>
====================================================================================================
TOTAL VALUE
UNITS UNIT VALUE OF UNITS
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Net assets attributable to:
Contract owners' deferred annuity reserves:
The Alger American Fund:
Growth Portfolio...................................... 16,371.5 $23.189882 $ 379,650
Leveraged AllCap Portfolio............................ 17,588.0 32.657950 574,388
MidCap Growth Portfolio............................... 9,297.9 20.032232 186,258
Small Capitalization Portfolio........................ 2,423.9 20.366734 49,367
American Century Variable Portfolios, Inc.:
Income and Growth Fund................................ 42,619.5 12.612406 537,534
International Fund.................................... 35,027.7 15.722703 550,730
Value Fund............................................ 9,758.4 9.119531 88,992
Berger Institutional Products Trust:
100 Fund.............................................. 3,034.5 14.294697 43,377
Growth and Income Fund................................ 44,588.5 17.558227 782,895
Small Company Growth Fund............................. 2,342.1 16.690233 39,090
BIAM International Fund............................... 213.7 12.960694 2,770
Conseco Series Trust:
Balanced Portfolio.................................... 18,121.9 17.061023 309,178
Equity Portfolio...................................... 4,335.2 21.755292 94,314
Fixed Income Portfolio................................ 8,054.0 11.034411 88,871
Government Securities Portfolio....................... 10,693.4 10.811727 115,614
Money Market Portfolio................................ 724,556.2 11.035857 7,996,100
Dreyfus Stock Index Fund................................ 38,649.3 13.052208 504,459
The Dreyfus Socially Responsible Growth Fund, Inc....... 8,134.5 14.224514 115,709
Dreyfus Variable Investment Fund:
Disciplined Stock Portfolio........................... 4,702.8 12.541406 58,980
International Value Portfolio......................... 2,227.3 11.889474 26,481
Federated Insurance Series:
High Income Bond Fund II.............................. 16,320.3 9.902221 161,607
International Equity Fund II.......................... 389.7 24.656483 9,609
Utility Fund II....................................... 2,626.8 10.947785 28,758
Invesco Variable Investment Funds, Inc.:
Equity Income Fund.................................... 866.0 15.576930 13,490
High Yield Fund....................................... 16,490.2 12.260149 202,172
Janus Aspen Series:
Aggressive Growth Portfolio........................... 21,535.4 26.018575 560,320
Growth Portfolio...................................... 43,956.4 16.436786 722,502
Worldwide Growth Portfolio............................ 47,138.6 17.062892 804,321
Lazard Retirement Series, Inc.:
Equity Portfolio...................................... 904.9 11.274220 10,202
Small Cap Portfolio................................... 416.0 8.882039 3,695
Lord Abbett Series Fund, Inc.:
Growth and Income Portfolio........................... 4,642.9 14.951608 69,419
Mitchell Hutchins Series Trust:
Growth and Income Portfolio........................... 119.3 10.787063 1,287
Neuberger Berman Advisers Management Trust:
Limited Maturity Bond Portfolio....................... 4,966.8 10.180512 50,565
Partners Portfolio.................................... 1,859.8 9.836308 18,294
Strong Variable Insurance Funds, Inc.:
Mid Cap Growth Fund II................................ 10,943.8 21.617066 236,573
Strong Opportunity Fund II, Inc......................... 10,750.8 12.713201 136,677
Van Eck Worldwide Insurance Trust:
Worldwide Bond Fund................................... 2,313.7 9.872061 22,841
Worldwide Emerging Markets Fund....................... 6,405.8 10.357402 66,347
Worldwide Hard Assets Fund............................ 2,648.7 8.522860 22,574
WorldwideReal Estate Fund............................. 559.5 8.240317 4,610
- ----------------------------------------------------------------------------------------------------
Net assets...................................................................... $15,690,620
====================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
=================================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
---------------------------------------------- -----------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares .................... $34,014 $ 9,526 $ 6,642 $ 1,455 $ 2
Expenses:
Mortality and expense risk fees ................................... 4,482 2,637 663 249 3,348
Administrative fees ............................................... 585 344 87 33 437
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses ................................................... 5,067 2,981 750 282 3,785
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .................................. 28,947 6,545 5,892 1,173 (3,783)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized
appreciation (depreciation) on investments:
Net realized gains (losses) on sales of
investments in portfolio shares ................................ 54,246 23,355 27 716 24,340
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares .............. 6,282 135,119 20,990 10,541 14,852
- --------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares ............ 60,528 158,474 21,017 11,257 39,192
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ....... $89,475 $165,019 $26,909 $12,430 $ 35,409
=================================================================================================================================
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
=================================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
---------------------------------------------- -----------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income (loss) ................................. $ 28,947 $ 6,545 $ 5,892 $ 1,173 $ (3,783)
Net realized gains (losses) on sales of
investments in portfolio shares ............................. 54,246 23,355 27 716 24,340
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares .......................... 6,282 135,119 20,990 10,541 14,852
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ..... 89,475 165,019 26,909 12,430 35,409
- --------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ............................... 366,463 347,459 128,866 46,543 546,284
Contract redemptions ......................................... (8,924) (1,041) (288) -- (8,762)
Net transfers ................................................ (170,214) 14,358 2,859 (18,857) (10,527)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions ....................... 187,325 360,776 131,437 27,686 426,995
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets .................. 276,800 525,795 158,346 40,116 462,404
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year .................................. 102,850 48,593 27,912 9,251 75,130
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (Note 6) ....................... $ 379,650 $ 574,388 $ 186,258 $ 49,367 $ 537,534
================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ------------------------ -------------------------------------------- ----------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ -- $ 5,873 $ 2 $ -- $ -- $ 15 $54,308 $26,474 $ 7,238
3,993 668 97 2,282 106 12 2,205 518 1,287
521 87 13 298 14 2 288 68 168
- -----------------------------------------------------------------------------------------------------------
4,514 755 110 2,580 120 14 2,493 586 1,455
- -----------------------------------------------------------------------------------------------------------
(4,514) 5,118 (108) (2,580) (120) 1 51,815 25,888 5,783
- -----------------------------------------------------------------------------------------------------------
596,369 590 916 13,140 (28) 1 (993) 248 (4,807)
194 (5,115) 2,848 161,916 9,537 483 5,856 (4,139) (2,494)
- -----------------------------------------------------------------------------------------------------------
596,563 (4,525) 3,764 175,056 9,509 484 4,863 (3,891) (7,301)
- -----------------------------------------------------------------------------------------------------------
$592,049 $ 593 $3,656 $172,476 $9,389 $485 $56,678 $21,997 $(1,518)
===========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===========================================================================================================
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ------------------------ -------------------------------------------- ----------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ (4,514) $ 5,118 $ (108) $ (2,580) $ (120) $ 1 $ 51,815 $25,888 $ 5,783
596,369 590 916 13,140 (28) 1 (993) 248 (4,807)
194 (5,115) 2,848 161,916 9,537 483 5,856 (4,139) (2,494)
- -----------------------------------------------------------------------------------------------------------
592,049 593 3,656 172,476 9,389 485 56,678 21,997 (1,518)
- -----------------------------------------------------------------------------------------------------------
33,844 33,934 48,542 551,218 29,129 2,285 110,524 43,528 41,424
(60) (745) (225) (4,025) -- -- (85) (43) (12,695)
(82,554) 11,763 (8,596) 15,489 572 -- (35,736) (6,724) (27,228)
- -----------------------------------------------------------------------------------------------------------
(48,770) 44,952 39,721 562,682 29,701 2,285 74,703 36,761 1,501
- -----------------------------------------------------------------------------------------------------------
543,279 45,545 43,377 735,158 39,090 2,770 131,381 58,758 (17)
- -----------------------------------------------------------------------------------------------------------
7,451 43,447 -- 47,737 -- -- 177,797 35,556 88,888
- -----------------------------------------------------------------------------------------------------------
$550,730 $88,992 $43,377 $782,895 $39,090 $2,770 $309,178 $94,314 $ 88,871
===========================================================================================================
</TABLE>
5
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
===============================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
----------------------- -----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares .................... $ 5,600 $90,490 $ 3,871 $ 5,898 $ 571
Expenses:
Mortality and expense risk fees ................................... 869 20,687 419 5,018 303
Administrative fees ............................................... 113 2,695 55 655 40
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses ................................................... 982 23,382 474 5,673 343
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) .................................. 4,618 67,108 3,397 225 228
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized
appreciation (depreciation) of investments:
Net realized gains (losses) on sales of
investments in portfolio shares ................................ (3,771) -- 263 38,312 2,815
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares .............. (2,978) -- 12,275 15,730 1,095
- -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares ............ (6,749) -- 12,538 54,042 3,910
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ....... $(2,131) $67,108 $15,935 $54,267 $4,138
===============================================================================================================================
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
================================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
----------------------- -----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income (loss) ............................... $ 4,618 $ 67,108 $ 3,397 $ 225 $ 228
Net realized gains (losses) on sales of
investments in portfolio shares ........................... (3,771) 00 263 38,312 2,815
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ........................ (2,978) 00 12,275 15,730 1,095
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ... (2,131) 67,108 15,935 54,267 4,138
- --------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ............................. 70,696 7,805,123 75,767 451,148 54,742
Contract redemptions ....................................... (410) (464,912) (696) (13,538) -
Net transfers .............................................. 20,934 571,912 20,938 (39,335) (24,755)
--------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions ..................... 91,220 7,912,123 96,009 398,275 29,987
--------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets ........................... 89,089 7,979,231 111,944 452,542 34,125
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year ................................ 26,525 16,869 3,765 51,917 24,855
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (Note 6) ..................... $ 115,614 $7,996,100 $115,709 $504,459 $ 58,980
================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- -------------- ------------------------------------------- ------------------------------ ---------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$2,026 $ 7,013 $ 79 $ 4,054 $ 109 $ 10,894 $ 3,490 $ 1,700 $ 410
96 1,675 34 644 107 467 1,404 4,902 2,908
12 219 4 84 14 61 183 639 379
- -----------------------------------------------------------------------------------------------------------------------------------
108 1,894 38 728 121 528 1,587 5,541 3,287
- -----------------------------------------------------------------------------------------------------------------------------------
1,918 5,119 41 3,326 (12) 10,366 1,903 (3,841) (2,877)
- -----------------------------------------------------------------------------------------------------------------------------------
48 (6,718) 24 (1,129) 659 (290) 12,001 119,617 6,918
669 (1,069) 2,711 (2,912) 335 (5,213) 140,010 36,327 203,173
- -----------------------------------------------------------------------------------------------------------------------------------
717 (7,787) 2,735 (4,041) 994 (5,503) 152,011 155,944 210,091
- -----------------------------------------------------------------------------------------------------------------------------------
$2,635 $(2,668) $2,776 $ (715) $ 982 $ 4,863 $153,914 $152,103 $207,214
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===================================================================================================================================
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- -------------- ------------------------------------------- ------------------------------ ---------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 1,918 $ 5,119 $ 41 $ 3,326 $ (12) $ 10,366 $ 1,903 $ (3,841) $ (2,877)
48 (6,718) 24 (1,129) 659 (290) 12,001 119,617 6,918
669 (1,069) 2,711 (2,912) 335 (5,213) 140,010 36,327 203,173
- -----------------------------------------------------------------------------------------------------------------------------------
2,635 (2,668) 2,776 (715) 982 4,863 153,914 152,103 207,214
- -----------------------------------------------------------------------------------------------------------------------------------
17,939 203,258 7,237 63,856 19,037 134,822 311,095 607,627 505,696
(1,780) (1,776) (404) (3,740) -- (1,994) (1,457) (9,223) (3,717)
-- (69,189) -- (58,233) (6,529) 57,049 93,532 (120,321) 16,880
- -----------------------------------------------------------------------------------------------------------------------------------
16,159 132,293 6,833 1,883 12,508 189,877 403,170 478,083 518,859
- -----------------------------------------------------------------------------------------------------------------------------------
18,794 129,625 9,609 1,168 13,490 194,740 557,084 630,186 726,073
- -----------------------------------------------------------------------------------------------------------------------------------
7,687 31,982 -- 27,590 -- 7,432 3,236 92,316 78,248
- -----------------------------------------------------------------------------------------------------------------------------------
$26,481 $161,607 $9,609 $ 28,758 $ 13,490 $202,172 $560,320 $722,502 $804,321
===================================================================================================================================
</TABLE>
7
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
===================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
------------------ ----------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares ................. $ 388 $ 66 $ 5,517 $ -- $ 309
Expenses:
Mortality and expense risk fees ................................ 315 27 616 6 264
Administrative fees ............................................ 40 4 80 1 34
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses ................................................ 355 31 696 7 298
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) ............................... 33 35 4,821 (7) 11
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares ........................................ 3,161 (115) 138 -- (84)
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ......................... (5,024) (340) 2,927 61 160
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares ....... (1,863) (455) 3,065 61 76
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations .. $ (1,830) $ (420) $ 7,886 $ 54 $ 87
===================================================================================================================================
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
===================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
------------------ ---------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income (loss) ................................... $ 33 $ 35 $ 4,821 $ (7) $ 11
Net realized gains (losses) on sales of investments
in portfolio shares ........................................... 3,161 (115) 138 -- (84)
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares ............ (5,024) (340) 2,927 61 160
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ....... (1,830) (420) 7,886 54 87
- -----------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ................................. 10,037 3,831 17,497 1,233 47,922
Contract redemptions ........................................... (847) (37) (3,560) -- (2,109)
Net transfers .................................................. (67,298) (7,154) -- -- (18,944)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions ......................... (58,108) (3,360) 13,937 1,233 26,869
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets .................... (59,938) (3,780) 21,823 1,287 26,956
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of year .................................... 70,140 7,475 47,596 -- 23,609
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (Note 6) ......................... $ 10,202 $ 3,695 $ 69,419 $ 1,287 $ 50,565
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- --------- ----------------------------------------------------------------
STRONG
MID CAP OPPORTUNITY EMERGING HARD REAL COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE TOTAL
- --------------------------------------------------------------------------------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 707 $ 51 $ 6,235 $ 832 $ -- $ -- $ -- $ 295,859
175 971 1,876 232 214 107 20 66,903
23 127 245 30 28 13 3 8,726
- --------------------------------------------------------------------------------------------- ----------
198 1,098 2,121 262 242 120 23 75,629
- --------------------------------------------------------------------------------------------- ----------
509 (1,047) 4,114 570 (242) (120) (23) 220,230
- --------------------------------------------------------------------------------------------- ----------
1,695 16,039 1,523 (786) 379 (525) (17) 898,277
(518) 53,918 11,123 (1,587) 21,124 91 (240) 838,718
- --------------------------------------------------------------------------------------------- ----------
1,177 69,957 12,646 (2,373) 21,503 (434) (257) 1,736,995
- --------------------------------------------------------------------------------------------- ----------
$ 1,686 $ 68,910 $ 16,760 $ (1,803) $ 21,261 $ (554) $ (280) $1,957,225
============================================================================================= ==========
</TABLE>
<TABLE>
<CAPTION>
===================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- --------- -----------------------------------------------------------------
STRONG
MID CAP OPPORTUNITY EMERGING HARD REAL COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE TOTAL
- --------------------------------------------------------------------------------------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 509 $ (1,047) $ 4,114 $ 570 $ (242) $ (120) $ (23) $ 220,230
1,695 16,039 1,523 (786) 379 (525) (17) 898,277
(518) 53,918 11,123 (1,587) 21,124 91 (240) 838,718
- --------------------------------------------------------------------------------------------- ----------
1,686 68,910 16,760 (1,803) 21,261 (554) (280) 1,957,225
- --------------------------------------------------------------------------------------------- ----------
17,340 117,223 126,886 6,718 34,646 (140) 1,015 13,042,294
(43) (2,366) (8,456) -- (179) (141) (19) (558,297)
(19,839) 43,892 (18,400) 3,618 9,334 23,409 3,894 --
- --------------------------------------------------------------------------------------------- ----------
(2,542) 158,749 100,030 10,336 43,801 23,128 4,890 12,483,997
--------------------------------------------------------------------------------------------- ----------
(856) 227,659 116,790 8,533 65,062 22,574 4,610 14,441,222
- --------------------------------------------------------------------------------------------- ----------
19,150 8,914 19,887 14,308 1,285 -- -- 1,249,398
- --------------------------------------------------------------------------------------------- ----------
$ 18,294 $236,573 $136,677 $ 22,841 $ 66,347 $ 22,574 $ 4,610 $15,690,620
============================================================================================= ==========
</TABLE>
9
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENTS OF OPERATIONS
FOR THE PERIOD APRIL 29, 1998 THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
=================================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
-------------------------------------------------- ----------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares .............. $ 772 $ 220 $ 1 $ 608 $ 369
Expenses:
Mortality and expense risk fees ............................. 211 119 75 97 150
Administrative fees ......................................... 28 16 10 13 20
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses ............................................. 239 135 85 110 170
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) ............................ 533 85 (84) 498 199
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares .................................... (1,963) (1,829) (14) (1,224) (565)
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ..................... 15,743 6,444 4,151 32 5,620
- -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares ....... 13,780 4,615 4,137 (1,192) 5,055
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations .. $ 14,313 $ 4,700 $ 4,053 $ (694) $ 5,254
=================================================================================================================================
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD APRIL 29, 1998 THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
===============================================================================================================================
AMERICAN
CENTURY
VARIABLE
THE ALGER AMERICAN FUNDS PORTFOLIOS
-------------------------------------------------- ---------
LEVERAGED SMALL INCOME AND
GROWTH ALL CAP MIDCAP CAPITALIZATION GROWTH
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income (loss)................................ $ 533 $ 85 $ (84) $ 498 $ 199
Net realized gains (losses) on sales of investments
in portfolio shares........................................ (1,963) (1,829) (14) (1,224) (565)
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares........... 15,743 6,444 4,151 32 5,620
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations 14,313 4,700 4,053 (694) 5,254
- -------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments.............................. 21,483 18,860 23,859 15,306 16,194
Contract redemptions ....................................... (359) -- -- (23) (411)
Net transfers............................................... 67,413 25,033 -- (5,338) 54,093
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from contract owners' transactions...................... 88,537 43,893 23,859 9,945 69,876
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets ........................... 102,850 48,593 27,912 9,251 75,130
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of period .............................. -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ............................ $102,850 $ 48,593 $ 27,912 $ 9,251 $ 75,130
=================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ------------------------ -------------------------------------------- ----------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ -- $ 316 $ -- $ -- $ 3,141 $ 150 $ 1,767
43 123 -- 184 40 -- 732 221 309
6 16 -- 24 5 -- 95 29 40
- -----------------------------------------------------------------------------------------------------------
49 139 -- 208 45 -- 827 250 349
- -----------------------------------------------------------------------------------------------------------
(49) (139) -- 108 (45) -- 2,314 (100) 1,418
- -----------------------------------------------------------------------------------------------------------
(1,155) (1) -- (653) (4,450) -- (1,428) (2,515) (61)
284 813 -- 6,163 -- -- 3,582 2,456 (111)
- -----------------------------------------------------------------------------------------------------------
(871) 812 -- 5,510 (4,450) -- 2,154 (59) (172)
- -----------------------------------------------------------------------------------------------------------
$ (920) $ 673 $ -- $ 5,618 $ (4,495) $ -- $ 4,468 $ (159) $ 1,246
===========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===========================================================================================================
AMERICAN CENTURY
VARIABLE PORTFOLIOS
(CONTINUED) BERGER INSTITUTIONAL PRODUCTS TRUST CONSECO SERIES TRUST PORTFOLIOS
- ------------------------ -------------------------------------------- ----------------------------------
GROWTH AND SMALL BIAM FIXED
INTERNATIONAL VALUE 100 INCOME COMPANY INTERNATIONAL BALANCED EQUITY INCOME
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ (49) $ (139) $ -- $ 108 $ (45) $ -- $ 2,314 $ (100) $ 1,418
(1,155) (1) -- (653) (4,450) -- (1,428) (2,515) (61)
284 813 -- 6,163 -- -- 3,582 2,456 (111)
- -----------------------------------------------------------------------------------------------------------
(920) 673 -- 5,618 (4,495) -- 4,468 (159) 1,246
- -----------------------------------------------------------------------------------------------------------
13,493 (1,099) -- 61,371 6,911 -- 219,964 51,835 66,678
(22) -- -- (1,483) (20) -- (81) (70) (3,366)
(5,100) 43,873 -- (17,769) (2,396) -- (46,554) (16,050) 24,330
- -----------------------------------------------------------------------------------------------------------
8,371 42,774 -- 42,119 4,495 -- 173,329 35,715 87,642
- -----------------------------------------------------------------------------------------------------------
7,451 43,447 -- 47,737 -- -- 177,797 35,556 88,888
- -----------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------
$ 7,451 $ 43,447 $ -- $ 47,737 $ -- $ -- $177,797 $ 35,556 $ 88,888
===========================================================================================================
</TABLE>
11
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE PERIOD APRIL 29, 1998 THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
===============================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
----------------------- -----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares ................... $ 618 $ 1,118 $ 137 $ 323 $ 117
Expenses:
Mortality and expense risk fees .................................. 119 258 11 221 49
Administrative fees .............................................. 15 34 2 29 6
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses .................................................. 134 292 13 250 55
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) ................................. 484 826 124 73 62
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares ......................................... 62 -- 1 104 17
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares .......................... 19 -- 587 2,482 3,431
- -------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares ......... 81 -- 588 2,586 3,448
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations .... $ 565 $ 826 $ 712 $ 2,659 $ 3,510
===============================================================================================================================
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE PERIOD APRIL 29, 1998 THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
===============================================================================================================================
CONSECO SERIES DREYFUS
TRUST PORTFOLIOS VARIABLE
(CONTINUED) INVESTMENT
----------------------- -----------
DREYFUS
SOCIALLY DREYFUS
GOVERNMENT MONEY RESPONSIBLE STOCK DISCIPLINED
SECURITIES MARKET GROWTH INDEX STOCK
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income (loss) ..................................... $ 484 $ 826 $ 124 $ 73 $ 62
Net realized gains (losses) on sales of investments
in portfolio shares ............................................ 62 -- 1 104 17
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares .............. 19 -- 587 2,482 3,431
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ........ 565 826 712 2,659 3,510
- -------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments ................................... 52,528 292,964 3,053 48,640 56
Contract redemptions ............................................. (33) (12,500) -- (152) (293)
Net transfers .................................................... (26,535) (264,421) -- 770 21,582
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from contract owners' transactions .......................... 25,960 16,043 3,053 49,258 21,345
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets ................................ 26,525 16,869 3,765 51,917 24,855
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of period .................................... -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ................................. $ 26,525 $ 16,869 $ 3,765 $ 51,917 $ 24,855
===============================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- -------------- ------------------------------------------- ------------------------------ ---------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 604 $ -- $ -- $ -- $ -- $ 792 $ -- $ 39 $ 108
33 124 2 86 -- 31 19 126 234
4 16 -- 11 -- 4 3 17 31
- -----------------------------------------------------------------------------------------------------------------------------------
37 140 2 97 -- 35 22 143 265
- -----------------------------------------------------------------------------------------------------------------------------------
567 (140) (2) (97) -- 757 (22) (104) (157)
- -----------------------------------------------------------------------------------------------------------------------------------
111 (706) 2 385 -- (63) (2,381) 379 (431)
(134) 745 -- 2,657 -- (821) 834 13,553 5,866
- -----------------------------------------------------------------------------------------------------------------------------------
(23) 39 2 3,042 -- (884) (1,547) 13,932 5,435
- -----------------------------------------------------------------------------------------------------------------------------------
$ 544 $ (101) $ -- $ 2,945 $ -- $ (127) $ (1,569) $ 13,828 $ 5,278
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
===================================================================================================================================
DREYFUS
VARIABLE
INVESTMENT
(CONTINUED) FEDERATED INSURANCE SERIES FUNDS INVESCO VARIABLE INV. FUNDS JANUS ASPEN SERIES PORTFOLIOS
- -------------- ------------------------------------------- ------------------------------ ---------------------------------------
INTERNATIONAL HIGH INCOME INTERNATIONAL EQUITY AGGRESSIVE WORLDWIDE
VALUE BOND II EQUITY II UTILITY II INCOME HIGH YIELD GROWTH GROWTH GROWTH
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
$ 567 $ (140) $ (2) $ (97) $ -- $ 757 $ (22) $ (104) $ (157)
111 (706) 2 385 -- (63) (2,381) 379 (431)
(134) 745 -- 2,657 -- (821) 834 13,553 5,866
- -----------------------------------------------------------------------------------------------------------------------------------
544 (101) -- 2,945 -- (127) (1,569) 13,828 5,278
- -----------------------------------------------------------------------------------------------------------------------------------
7,843 47,326 -- 28,678 -- 8,259 2,351 16,592 49,723
(700) (3,393) -- (4,033) -- (700) -- (359) (771)
-- (11,850) -- -- -- -- 2,454 62,255 24,018
- -----------------------------------------------------------------------------------------------------------------------------------
7,143 32,083 -- 24,645 -- 7,559 4,805 78,488 72,970
- -----------------------------------------------------------------------------------------------------------------------------------
7,687 31,982 -- 27,590 -- 7,432 3,236 92,316 78,248
- -----------------------------------------------------------------------------------------------------------------------------------
-- -- -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
$ 7,687 $ 31,982 $ -- $ 27,590 $ -- $ 7,432 $ 3,236 $ 92,316 $ 78,248
===================================================================================================================================
</TABLE>
13
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
STATEMENTS OF OPERATIONS - CONTINUED
FOR THE PERIOD APRIL 29, 1998 THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
===================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
------------------ ----------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income:
Dividends from investments in portfolio shares .................. $ 238 $ -- $ 2,982 $ -- $ --
Expenses:
Mortality and expense risk fees ................................. 106 11 245 -- 31
Administrative fees ............................................. 14 1 32 -- 4
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses ................................................. 120 12 277 -- 35
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) ................................ 118 (12) 2,705 -- (35)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gains (losses) and unrealized appreciation
(depreciation) of investments:
Net realized gains (losses) on sales of investments
in portfolio shares .......................................... 20 -- (142) -- --
Net change in unrealized appreciation (depreciation)
of investments in portfolio shares ........................... 4,437 230 603 -- 116
- -----------------------------------------------------------------------------------------------------------------------------------
Net gain (loss) on investments in portfolio shares .......... 4,457 230 461 -- 116
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ..... $ 4,575 $ 218 $ 3,166 $ -- $ 81
===================================================================================================================================
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS - CONTINUED
FOR THE PERIOD APRIL 29, 1998 THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
===================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT
LAZARD RETIREMENT TRUST
SERIES PORTFOLIOS PORTFOLIOS
------------------ ----------
MITCHELL
LORD ABBETT HUTCHINS
SERIES TRUST SERIES TRUST LIMITED
GROWTH AND GROWTH AND MATURITY
EQUITY SMALL CAP INCOME INCOME BOND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Changes from operations:
Net investment income (loss) .................................... $ 118 $ (12) $ 2,705 $ -- $ (35)
Net realized gains (losses) on sales of investments
in portfolio shares ............................................ 20 -- (142) -- --
Net change in unrealized appreciation
(depreciation) of investments in portfolio shares ............. 4,437 230 603 -- 116
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from operations ........ 4,575 218 3,166 -- 81
- -----------------------------------------------------------------------------------------------------------------------------------
Changes from contract owners' transactions:
Net contract purchase payments .................................. (89) (82) 45,830 -- 3,656
Contract redemptions ............................................ (359) -- (1,400) -- --
Net transfers ................................................... 66,013 7,339 -- -- 19,872
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from contract owners' transactions .......................... 65,565 7,257 44,430 -- 23,528
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets ................................ 70,140 7,475 47,596 -- 23,609
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, beginning of period ................................... -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period ................................. $ 70,140 $ 7,475 $ 47,596 $ -- $ 23,609
===================================================================================================================================
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
===================================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- --------- ----------------------------------------------------------------
STRONG
MID CAP OPPORTUNITY EMERGING HARD REAL COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE TOTAL
- --------------------------------------------------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ -- $ -- $ 40 $ -- $ -- $ -- $ -- $ 14,460
63 33 84 9 4 (1) -- 4,202
8 4 11 1 1 -- -- 550
- --------------------------------------------------------------------------------------------- ------------
71 37 95 10 5 (1) -- 4,752
- --------------------------------------------------------------------------------------------- ------------
(71) (37) (55) (10) (5) 1 -- 9,708
- --------------------------------------------------------------------------------------------- ------------
1,111 (13) (52) -- -- -- -- (17,454)
724 1,499 1,405 (117) 262 -- -- 83,555
- --------------------------------------------------------------------------------------------- ------------
1,835 1,486 1,353 (117) 262 -- -- 66,101
- --------------------------------------------------------------------------------------------- ------------
$ 1,764 $ 1,449 $ 1,298 $ (127) $ 257 $ 1 $ -- $ 75.809
============================================================================================= ============
</TABLE>
<TABLE>
<CAPTION>
=====================================================================================================================
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT STRONG
TRUST VARIABLE
PORTFOLIOS INSURANCE
(CONTINUED) FUNDS VAN ECK WORLDWIDE INSURANCE TRUST FUNDS
- ----------- --------- ----------------------------------------------------------------
STRONG
MID CAP OPPORTUNITY EMERGING HARD REAL COMBINED
PARTNERS GROWTH II FUND II BOND MARKETS ASSETS ESTATE TOTAL
- --------------------------------------------------------------------------------------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (71) $ (37) $ (55) $ (10) $ (5) $ 1 $ -- $ 9,708
1,111 (13) (52) -- -- -- -- (17,454)
724 1,499 1,405 (117) 262 -- -- 83,555
- --------------------------------------------------------------------------------------------- ------------
1,764 1,449 1,298 (127) 257 1 -- 75,809
- --------------------------------------------------------------------------------------------- ------------
18,499 8,165 19,289 14,435 1,028 21,918 -- 1,205,517
-- (700) (700) -- -- -- -- (31,928)
(1,113) -- -- -- -- (21,919) -- --
- --------------------------------------------------------------------------------------------- ------------
17,386 7,465 18,589 14,435 1,028 (1) -- 1,173,589
- --------------------------------------------------------------------------------------------- ------------
19,150 8,914 19,887 14,308 1,285 -- -- 1,249,398
- --------------------------------------------------------------------------------------------- ------------
-- -- -- -- -- -- -- --
- --------------------------------------------------------------------------------------------- ------------
$ 19,150 $ 8,914 $ 19,887 $ 14,308 $ 1,285 $ -- $ -- $ 1,249,398
============================================================================================= ============
</TABLE>
15
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
================================================================================
(1) GENERAL
Conseco Variable Insurance Company (the "Company") established two separate
accounts within Conseco Variable Annuity Account G ("Account G"). Both accounts
were established on September 26, 1997, and commenced operations on April 29,
1998. Account G is a segregated investment account for individual and group
variable annuity contracts which are registered under the Securities Act of
1933. One account, also named Conseco Variable Annuity Account G ("Variable
Account"), which serves the variable annuity portion of the contract, is
registered under the Investment Company Act of 1940, as amended, as a unit
investment trust. The other account, Conseco Variable Market Value Adjustment
Account ("MVA"), offers investment options which pay fixed rates of interest as
declared by the Company for specified periods (one, three and five years) from
the date amounts are allocated to the MVA. The MVA is not registered as an
investment company under the Investment Company Act of 1940. The operations of
Account G are included in the operations of the Company pursuant to the
provisions of the Texas Insurance Code. The Company is an indirect wholly owned
subsidiary of Conseco, Inc., a publicly-held specialized financial services
holding company listed on the New York Stock Exchange.
Besides the three guarantee periods of the MVA option, the following
investment Variable Account options are currently available:
THE ALGER AMERICAN FUND
Growth Portfolio
Leveraged AllCap Portfolio
MidCap Growth Portfolio
Small Capitalization Portfolio
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
Income and Growth Fund
International Fund
Value Fund
BERGER INSTITUTIONAL PRODUCTS TRUST
100 Fund
Growth and Income Fund
Small Company Growth Fund
BIAM International Fund
CONSECO SERIES TRUST
Balanced Portfolio
Equity Portfolio
Fixed Income Portfolio
Government Securities Portfolio
Money Market Portfolio
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
DREYFUS STOCK INDEX FUND
DREYFUS VARIABLE INVESTMENT FUND
International Value Portfolio
Disciplined Stock Portfolio
FEDERATED INSURANCE SERIES
High Income Bond Fund II
International Equity Fund II
Utility Fund II
INVESCO VARIABLE INVESTMENT FUNDS, INC.
Equity Income Fund
High Yield Fund
JANUS ASPEN SERIES
Aggressive Growth Portfolio
Growth Portfolio
Worldwide Growth Portfolio
LAZARD RETIREMENT SERIES, INC.
Equity Portfolio
Small Cap Portfolio
LORD ABBETT SERIES FUND, INC.
Growth and Income Portfolio
MITCHELL HUTCHINS SERIES TRUST
Growth and Income Portfolio
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio
Partners Portfolio
STRONG VARIABLE INSURANCE FUNDS, INC.
Mid Cap Growth Fund II
STRONG OPPORTUNITY FUND II, INC.
VAN ECK WORLDWIDE INSURANCE TRUST
Worldwide Bond Fund
Worldwide Emerging Markets Fund
Worldwide Hard Assets Fund
Worldwide Real Estate Fund
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 increases and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENT VALUATION, TRANSACTIONS AND INCOME
Investments in portfolio shares are valued using the net asset value of the
respective portfolios at the end of each New York Stock Exchange business day.
Investment share transactions are accounted for on a trade date basis (the date
the order to purchase or redeem shares is executed) and dividend income is
recorded on the ex-dividend date. The cost of investments in portfolio shares
sold is determined on a first-in first-out basis. Account G does not hold any
investments which are restricted as to resale.
Net investment income and net realized gains (losses) and unrealized
appreciation (depreciation) on investments are allocated to the contracts on
each valuation date based on each contract's pro rata share of the assets of
Account G as of the beginning of the valuation date.
FEDERAL INCOME TAXES
No provision for federal income taxes has been made in the accompanying
financial statements because the operations of Account G are included in the
total operations of the Company, which is treated as a life insurance company
for federal income tax purposes under the Internal Revenue Code. Net investment
income and realized gains (losses) are retained in Account G and are not taxable
until received by the contract owner or beneficiary in the form of annuity
payments or other distributions.
16
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G
NOTES TO FINANCIAL STATEMENTS - CONTINUED
DECEMBER 31, 1999 AND 1998
================================================================================
ANNUITY RESERVES
Deferred annuity contract reserves are comprised of net contract purchase
payments less redemptions and benefits. These reserves are adjusted daily for
the net investment income and net realized gains (losses) and unrealized
appreciation (depreciation) on investments.
(3) PURCHASES AND SALES OF INVESTMENTS IN PORTFOLIO SHARES
The aggregate cost of purchases of investments in portfolio shares was
$77,960,412 and $1,908,738 for the year ended December 31, 1999 and for the
period April 29, 1998 through December 31, 1998, respectively. The aggregate
proceeds from sales of investments in portfolio shares were $65,241,882 and
$724,111 for the year ended December 31, 1999 and for the period April 29, 1998
through December 31, 1998, respectively.
(4) DEDUCTIONS AND EXPENSES
Although periodic retirement payments to contract owners vary according to
the investment performance of the portfolios, such payments are not affected by
mortality or expense experience because the Company assumes the mortality and
expense risks under the contracts.
The mortality risk assumed by the Company results from the life annuity
payment option in the contracts in which the Company agrees to make annuity
payments regardless of how long a particular annuitant or other payee lives. The
annuity payments are determined in accordance with annuity purchase rate
provisions established at the time the contracts are issued. Based on the
actuarial determination of expected mortality, the Company is required to fund
any deficiency in the annuity payment reserves from its general account assets.
The expense risk assumed by the Company is the risk that the deductions for
sales and administrative expenses may prove insufficient to cover the actual
sales and administrative expenses. The Company deducts daily from Account G a
fee, which is equal on an annual basis to 1.15 percent of the daily value of the
total investments of Account G, for assuming the mortality and expense risks.
These fees were $66,903 and $4,202 for the year ended December 31, 1999 and for
the period April 29, 1998 through December 31, 1998, respectively.
Pursuant to an agreement between Account G and the Company (which may be
terminated by the Company at any time), the Company provides sales and
administrative services to Account G, as well as a minimum death benefit prior
to retirement for the contracts. In addition, the Company deducts units from
individual contracts annually and upon full surrender to cover an administrative
fee of $30, unless the value of the contract is $25,000 or greater. This fee is
recorded as a redemption in the accompanying Statements of Changes in Net
Assets. There were no sales and administrative charges for both the year ended
December 31, 1999, and for the period April 29, 1998 through December 31, 1998.
The Company also deducts daily from Account G a fee, which is equal on an annual
basis to 0.15 percent of the daily value of the total investments of Account G,
for administrative expenses. These expenses were $8,726 and $550 for the year
ended December 31, 1999, and for the period April 29, 1998 through December 31,
1998, respectively.
The MVA account is subject to a market value adjustment if the amounts are
withdrawn prior to the end of the guarantee period with certain exceptions. This
adjustment can be positive or negative depending on the changes in the U.S.
Treasury rates during the holding period of the MVA contract. There were no
charges for both the year ended December 31, 1999, and the period April 29, 1998
through December 31, 1998.
(5) OTHER TRANSACTIONS WITH AFFILIATES
Conseco Equity Sales, Inc., an affiliate of the Company, is the principal
underwriter and performs all variable annuity sales functions on behalf of the
Company through various retail broker/dealers including Conseco Securities, Inc.
(formerly Conseco Financial Services, Inc. prior to its name change in August
1999), an affiliate of the Company.
(6) NET ASSETS
Net assets consisted of the following at December 31, 1999:
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Proceeds from the sales of units since organization,
less cost of units redeemed .................................... $13,657,586
Undistributed net investment income .............................. 229,938
Undistributed net realized gains on sales of investments ......... 880,823
Net unrealized appreciation of investments ....................... 922,273
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Net assets ................................................... $15,690,620
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REPORT OF INDEPENDENT ACCOUNTANTS
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TO THE BOARD OF DIRECTORS OF CONSECO VARIABLE
INSURANCE COMPANY AND CONTRACT OWNERS OF
CONSECO VARIABLE ANNUITY ACCOUNT G
In our opinion, the accompanying statement of assets and liabilities and the
related statements of operations and of changes in net assets present fairly, in
all material respects, the financial position of the Conseco Variable Annuity
Account G (the "Account") at December 31, 1999, and the results of its
operations and the changes in its net assets for the year ended December 31,
1999 and from inception (April 29, 1998) through December 31, 1998, in
conformity with accounting principles generally accepted in the United States.
These financial statements are the responsibility of the Account's management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States,
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, which included
confirmation of portfolio shares owned at December 31, 1999 by correspondence
with the funds, provide a reasonable basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
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Indianapolis, Indiana
February 10, 2000
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20
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CONSECO VARIABLE ANNUITY ACCOUNT G
SPONSOR
Conseco Variable Insurance Company - Carmel, Indiana.
DISTRIBUTOR
Conseco Equity Sales, Inc. - Carmel, Indiana
INDEPENDENT PUBLIC ACCOUNTANTS
PricewaterhouseCoopers LLP - Indianapolis, Indiana.
21
<PAGE>
CONSECO VARIABLE ANNUITY ACCOUNT G IS ISSUED BY CONSECO VARIABLE
INSURANCE COMPANY THE PRODUCT IS UNDERWRITTEN, AND THE SECURITIES
WITHIN ARE OFFERED, BY CONSECO EQUITY SALES, INC., A BROKER-DEALER FOR
CONSECO VARIABLE INSURANCE COMPANY. BOTH COMPANIES ARE SUBSIDIARIES OF
CONSECO, INC., A FINANCIAL SERVICES ORGANIZATION HEADQUARTERED IN
CARMEL, INDIANA. CONSECO, THROUGH ITS SUBSIDIARY COMPANIES, IS
ONE OF MIDDLE AMERICA'S LEADING SOURCES FOR INSURANCE, INVESTMENT AND LENDING
PRODUCTS, HELPING 12 MILLION CUSTOMER STEP UP TO A BETTER, MORE SECURE FUTURE.
CONSECO EQUITY SALES, INC., IS A MEMBER OF THE NASD.
CONSECO VARIABLE INSURANCE COMPANY
11815 NORTH PENNSYLVANIA STREET
CARMEL, INDIANA 46032
CV-210 (2/00) 05961
(C) 1999 Conseco Variable Insurance Company
www.conseco.com
INSURANCE INVESTMENTS LENDING
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CONSECO
STEP UP.(SM)
