<PAGE> 1
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February 20, 1999
- --------------------------------------------------------------------------------
Dear Contractholder:
Your CNA Capital Select Variable Annuity(SM) ("Contract") is issued by
Valley Forge Life Insurance Company, one of the CNA companies. Your variable
annuity offers 18 variable fund subaccounts, plus a fixed interest account into
which you may place all or part of your cash value.
This Annual Report reflects the assets, liabilities, results of operations
and changes in net assets, from inception, in 1997 through December 31, 1998,
under each of the 18 subaccounts.* The full list of subacccounts can be found in
the Notes to Financial Statements included within this report.
During 1998, CNA instituted a number of enhancements that make your variable
annuity an even better product - and all at no additional cost to you:
1) WE MADE IT POSSIBLE FOR YOU TO ACCESS MORE OF YOUR MONEY WITHOUT
BEING CHARGED. Our 15% free partial withdrawal (available after year 1) can
now be accumulated up to 30% AND it applies to whichever is greater,
premiums or account value. Plus, you can now begin making systematic
withdrawals during the first year of the contract.**
2) WE IMPROVED THE DEATH BENEFIT. The death benefit on your annuity now
locks in the highest account value on each anniversary (through an annual
ratchet) and then freezes at the age 80 level. In other words, your death
benefit will increase or won't decrease beyond the previous highest
anniversary value, regardless of market activity.
3) WE EXPANDED DOLLAR COST AVERAGING. It now includes two options -- a
6-month option and a 1-year option.
These enhancements are made available in addition to the host of other
benefits that your variable annuity already offers:
- Tax deferral; which allows all of your money to work for you (instead of
just the after-tax portion);
- Free transfers among subaccounts (up to a total of 12 per year) and fixed
accounts (four of the 12 free transfers can apply to fixed accounts);
- Widely recognized fund managers:
- Federated Advisers
- Fidelity Management & Research Company
- Fred Alger Management, Inc.
- Massachusetts Financial Services Company (MFS)
- Societe Generale Asset Management Corp. (SoGen)
- Van Eck Associates Corporation
If you need more information, please refer to your prospectus. If you can't
find it or you need another copy, please contact your CNA representative - or
let us hear from you directly. In any event, thank you for selecting the CNA
Capital Select Variable Annuity. Our goal is for you to be happy with your
decision.
Sincerely,
David M. Chermow
David M. Chermow
Senior Vice President & Chief Operating Officer, Annuities
* Although guaranteed-interest options are available in connection with the CNA
Capital Select Variable Annuity, financial reports regarding these
fixed-interest funds are not included in this report.
** It's important to remember that taxes will be due to the extent that any
earnings are withdrawn. And, in certain circumstances, withdrawals prior to
age 59 1/2 can result in government-imposed penalties and other charges.
Actual investment performance results will vary, and you may have a gain or
loss when you withdraw your money.
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1
<PAGE> 2
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VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY
FEDERATED FEDERATED FEDERATED FIDELITY ASSET FIDELITY FIDELITY
PRIME MONEY UTILITY HIGH INCOME EQUITY-INCOME MANAGER INDEX 500 CONTRAFUND
DECEMBER 31, 1998 FUND II FUND II BOND FUND II PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market value: $5,562,204 $1,693,662 $3,166,765 $4,264,468 $2,258,023 $10,689,980 $3,710,438
---------- ---------- ---------- ---------- ---------- ----------- ----------
TOTAL ASSETS 5,562,204 1,693,662 3,166,765 4,264,468 2,258,023 10,689,980 3,710,438
---------- ---------- ---------- ---------- ---------- ----------- ----------
LIABILITIES - - - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $5,562,204 $1,693,662 $3,166,765 $4,264,468 $2,258,023 $10,689,980 $3,710,438
=================================================================================================================================
</TABLE>
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY
FEDERATED FEDERATED FEDERATED FIDELITY ASSET FIDELITY FIDELITY
PRIME MONEY UTILITY HIGH INCOME EQUITY-INCOME MANAGER INDEX 500 CONTRAFUND
DECEMBER 31, 1997 FUND II FUND II BOND FUND II PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
Investments, at market value: $ 861,084 $ 50,683 $ 190,479 $ 495,969 $ 267,366 $ 562,885 $ 329,066
---------- ---------- ---------- ---------- ---------- ----------- ----------
TOTAL ASSETS 861,084 50,683 190,479 495,969 267,366 562,885 329,066
---------- ---------- ---------- ---------- ---------- ----------- ----------
LIABILITIES - - - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 861,084 $ 50,683 $ 190,479 $ 495,969 $ 267,366 $ 562,885 $ 329,066
=================================================================================================================================
</TABLE>
See accompanying Notes to Financial Statements.
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2
<PAGE> 3
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE ALGER THE ALGER MFS
AMERICAN THE ALGER AMERICAN MFS GROWTH
SMALL AMERICAN MIDCAP EMERGING MFS WITH
CAPITALIZATION GROWTH GROWTH GROWTH RESEARCH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO SERIES SERIES SERIES
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$1,601,255 $5,444,900 $1,173,004 $2,923,811 $1,678,171 $2,385,418
---------- ---------- ---------- ---------- ---------- ----------
1,601,255 5,444,900 1,173,004 2,923,811 1,678,171 2,385,418
---------- ---------- ---------- ---------- ---------- ----------
- - - - - -
-------------------------------------------------------------------------------
1,$601,255 $5,444,900 $1,173,004 $2,923,811 $1,678,171 $2,385,418
===============================================================================
<CAPTION>
VAN ECK
MFS MFS SOGEN WORLDWIDE VAN ECK
LIMITED TOTAL OVERSEAS HARD EMERGING
MATURITY RETURN VARIABLE ASSETS MARKETS
SERIES SERIES FUND FUND FUND
- --------------------------------------------------------------
<C> <C> <C> <C> <C>
$1,031,558 $1,893,187 $2,038,462 $141,143 $401,475
---------- ---------- ---------- -------- --------
1,031,558 1,893,187 2,038,462 141,143 401,475
---------- ---------- ---------- -------- --------
- - - - -
- -------------------------------------------------------------
$1,031,558 $1,893,187 $2,038,462 $141,143 $401,475
==============================================================
</TABLE>
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE ALGER THE ALGER MFS
AMERICAN THE ALGER AMERICAN MFS GROWTH
SMALL AMERICAN MIDCAP EMERGING MFS WITH
CAPITALIZATION GROWTH GROWTH GROWTH RESEARCH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO SERIES SERIES SERIES
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 195,731 $ 249,383 $ 42,427 $ 141,648 $ 156,415 $ 219,017
---------- ---------- ---------- ---------- ---------- ----------
195,731 249,383 42,427 141,648 156,415 219,017
---------- ---------- ---------- ---------- ---------- ----------
- - - - - -
--------------------------------------------------------------------------------
$ 195,731 $ 249,383 $ 42,427 $ 141,648 $ 156,415 $ 219,017
================================================================================
<CAPTION> VAN ECK
MFS MFS SOGEN WORLDWIDE VAN ECK
LIMITED TOTAL OVERSEAS HARD EMERGING
MATURITY RETURN VARIABLE ASSETS MARKETS
SERIES SERIES FUND FUND FUND
- -------------------------------------- ---------------------
<C> <C> <C> <C> <C>
$ 81,706 $ 259,844 $ 752,892 $ 9,037 $ 16,890
---------- ---------- ---------- -------- --------
81,706 259,844 752,892 9,037 16,890
---------- ---------- ---------- -------- --------
- - - - -
- --------------------------------------------------------------
$ 81,706 $ 259,844 $ 752,892 $ 9,037 $ 16,890
===============================================================
</TABLE>
3
<PAGE> 4
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VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY
FEDERATED FEDERATED FEDERATED FIDELITY ASSET FIDELITY FIDELITY
PRIME MONEY UTILITY HIGH INCOME EQUITY-INCOME MANAGER INDEX 500 CONTRAFUND
FOR THE YEAR ENDED DECEMBER 31, 1998 FUND II FUND II BOND FUND II PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividend income $295,559 $ 11,976 $ 14,362 $ 37,197 $ 34,952 $ 53,264 $ 26,355
-------- -------- -------- -------- -------- ---------- --------
295,559 11,976 14,362 37,197 34,952 53,264 26,355
-------- -------- -------- -------- -------- ---------- --------
Expenses:
Mortality and expense risk and
administration charges 88,446 8,774 23,782 28,910 15,939 75,642 22,913
-------- -------- -------- -------- -------- ---------- --------
88,446 8,774 23,782 28,910 15,939 75,642 22,913
-------- -------- -------- -------- -------- ---------- --------
NET INVESTMENT INCOME (LOSS) 207,113 3,202 (9,420) 8,287 19,013 (22,378) 3,442
-------- -------- -------- -------- -------- ---------- --------
Investment gains and (losses):
Net realized gains (losses) 634 26,859 (8,426) (6,499) (25,723) 153,627 34,709
Net unrealized gains (losses) - 70,495 (18,378) 193,083 166,937 1,134,905 472,743
-------- -------- -------- -------- -------- ---------- --------
NET REALIZED AND UNREALIZED
INVESTMENT GAINS (LOSSES) 634 97,354 (26,804) 186,584 141,214 1,288,532 507,452
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $207,747 $100,556 $(36,224) $194,871 $160,227 $1,266,154 $510,894
=================================================================================================================================
FOR THE PERIOD FROM INCEPTION TO
DECEMBER 31, 1997 4-MAR-97 17-MAR-97 1-MAY-97 21-FEB-97 21-FEB-97 17-MAR-97 21-FEB-97
- ---------------------------------------------------------------------------------------------------------------------------------
Investment income:
Dividend income $ 21,053 $ 82 $ 1,192 - - - -
-------- -------- -------- -------- -------- ---------- --------
21,053 82 1,192 - - - -
-------- -------- -------- -------- -------- ---------- --------
Expenses:
Mortality, expense risk and
administration charges 5,938 150 647 $ 1,842 $ 1,397 $ 1,805 $ 917
-------- -------- -------- -------- -------- ---------- --------
5,938 150 647 1,842 1,397 1,805 917
-------- -------- -------- -------- -------- ---------- --------
NET INVESTMENT INCOME (LOSS) 15,115 (68) 545 (1,842) (1,397) (1,805) (917)
-------- -------- -------- -------- -------- ---------- --------
Investment gains and (losses):
Net realized gains (losses) - 85 1,461 18,226 11,160 9,302 3,732
Net unrealized gains (losses) - 4,190 3,915 6,272 1,593 19,813 4,074
-------- -------- -------- -------- -------- ---------- --------
NET REALIZED AND UNREALIZED
INVESTMENT GAINS (LOSSES) - 4,275 5,376 24,498 12,753 29,115 7,806
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 15,115 $ 4,207 $ 5,921 $ 22,656 $ 11,356 $ 27,310 $ 6,889
=================================================================================================================================
</TABLE>
See accompanying Notes to Financial Statements.
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4
<PAGE> 5
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<TABLE>
<CAPTION>
THE ALGER THE ALGER MFS
AMERICAN THE ALGER AMERICAN MFS GROWTH
SMALL AMERICAN MIDCAP EMERGING MFS WITH
CAPITALIZATION GROWTH GROWTH GROWTH RESEARCH INCOME
PORTFOLIO PORTFOLIO PORTFOLIO SERIES SERIES SERIES
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$128,450 $ 341,214 $ 25,115 $ 5,508 $ 7,886 -
-------- ---------- ----------- -------- -------- --------
128,450 341,214 25,115 5,508 7,886 -
-------- ---------- ----------- -------- -------- --------
12,751 33,774 6,729 16,497 9,361 $ 16,356
-------- ---------- ----------- -------- -------- --------
12,751 33,774 6,729 16,497 9,361 16,356
-------- ---------- ----------- -------- -------- --------
115,699 307,440 18,386 (10,989) (1,475) (16,356)
-------- ---------- ----------- -------- -------- --------
(39,387) (39,007) (16,647) 40,933 10,492 40,525
41,796 805,569 148,089 507,545 161,921 194,052
-------- ---------- ----------- -------- -------- --------
2,409 766,562 131,442 548,478 172,413 234,577
- -------------------------------------------------------------------------------
$118,108 $1,074,002 $ 149,828 $537,489 $170,938 $218,221
===============================================================================
3-APR-97 17-JUN-97 21-FEB-97 21-FEB-97 21-FEB-97 13-MAR-97
- -------------------------------------------------------------------------------
$ 51 - $ 89 - - $ 5,132
-------- ---------- ----------- -------- -------- --------
51 - 89 - - 5,132
-------- ---------- ----------- -------- -------- --------
661 $ 621 199 $ 692 $ 969 792
-------- ---------- ----------- -------- -------- --------
661 621 199 692 969 792
-------- ---------- ----------- -------- -------- --------
(610) (621) (110) (692) (969) 4,340
-------- ---------- ----------- -------- -------- --------
5,548 732 1,490 122 3,145 2,986
(13,637) (8,997) (1,453) 3,958 5,519 5,310
-------- ---------- ----------- -------- -------- --------
(8,089) (8,265) 37 4,080 8,664 8,296
- -------------------------------------------------------------------------------
$ (8,699) $ (8,886) $ (73) $ 3,388 $ 7,695 $ 12,636
===============================================================================
<CAPTION>
VAN ECK
MFS MFS SOGEN WORLDWIDE VAN ECK
LIMITED TOTAL OVERSEAS HARD EMERGING
MATURITY RETURN VARIABLE ASSETS MARKETS
SERIES SERIES FUND FUND FUND
- -----------------------------------------------------------
<C> <C> <C> <C> <C>
- $27,446 - $ 5,831 $ 783
-------- ------- ----------- -------- ---------
- 27,446 - 5,831 783
-------- ------- ----------- -------- ---------
$ 7,862 14,613 $ 24,005 1,223 3,457
-------- ------- ----------- -------- ---------
7,862 14,613 24,005 1,223 3,457
-------- ------- ----------- -------- ---------
(7,862) 12,833 (24,005) 4,608 (2,674)
-------- ------- ----------- -------- ---------
11,121 20,622 (62) (20,683) (49,149)
(22,155) 48,663 (64,430) (20,082) (60,604)
-------- ------- ----------- -------- ---------
(11,034) 69,285 (64,492) (40,765) (109,753)
- -----------------------------------------------------------
$(18,896) $82,118 $ (88,497) $(36,157) $(112,427)
===========================================================
1-MAY-97 21-FEB-97 3-FEB-97 3-APR-97 11-APR-97
- -----------------------------------------------------------
$ 3,140 - - - -
-------- ------- ----------- -------- ---------
3,140 - - - -
-------- ------- ----------- -------- ---------
470 $ 1,259 $ 8,364 $ 20 $ 94
-------- ------- ----------- -------- ---------
470 1,259 8,364 20 94
-------- ------- ----------- -------- ---------
2,670 (1,259) (8,364) (20) (94)
-------- ------- ----------- -------- ---------
1,202 5,264 7,592 11 (404)
(1,986) 11,648 (34,846) (189) (4,665)
-------- ------- ----------- -------- ---------
(784) 16,912 (27,254) (178) (5,069)
- -----------------------------------------------------------
$ 1,886 $15,653 $ (35,618) $ (198) $ (5,163)
============================================================
</TABLE>
5
<PAGE> 6
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VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FIDELITY
FEDERATED FEDERATED FEDERATED FIDELITY ASSET FIDELITY FIDELITY
PRIME MONEY UTILITY HIGH INCOME EQUITY-INCOME MANAGER INDEX 500 CONTRAFUND
FOR THE PERIOD ENDED DECEMBER 31, 1998 FUND II FUND II BOND FUND II PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
From operations:
Net investment income (loss) $ 207,113 $ 3,202 $ (9,420) $ 8,287 $ 19,013 $ (22,378) $ 3,442
Net realized and unrealized gains
(losses) 634 97,354 (26,804) 186,584 141,214 1,288,532 507,452
------------ ---------- ---------- ---------- ---------- ----------- ----------
Change in net assets resulting
from operations 207,747 100,556 (36,224) 194,871 160,227 1,266,154 510,894
------------ ---------- ---------- ---------- ---------- ----------- ----------
From capital transactions:
Net premiums/deposits 24,848,283 1,307,253 2,301,701 2,167,250 1,237,984 6,238,184 1,114,162
Death benefits (15,275) (19,978) (13,846) (7,421) - - (10,449)
Surrenders (198,856) (15,885) (12,264) (37,904) (1,620) (50,773) (23,821)
Withdrawals (112,539) (77,318) (93,235) (31,134) (22,890) (110,964) (23,659)
Transfers into (out of) subaccounts,
net -- Note 1 (20,028,240) 348,351 830,154 1,482,837 616,956 2,784,494 1,814,245
------------ ---------- ---------- ---------- ---------- ----------- ----------
Change in net assets resulting
from capital transactions 4,493,373 1,542,423 3,012,510 3,573,628 1,830,430 8,860,941 2,870,478
------------ ---------- ---------- ---------- ---------- ----------- ----------
Increase in net assets 4,701,120 1,642,979 2,976,286 3,768,499 1,990,657 10,127,095 3,381,372
Net assets at beginning of period 861,084 50,683 190,479 495,969 267,366 562,885 329,066
------------ ---------- ---------- ---------- ---------- ----------- ----------
NET ASSETS AT END OF PERIOD $ 5,562,204 $1,693,662 $3,166,765 $4,264,468 $2,258,023 $10,689,980 $3,710,438
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER UNIT AT END OF
PERIOD $ 1.00 $ 15.27 $ 10.92 $ 25.42 $ 18.16 $ 141.25 $ 24.44
===================================================================================================================================
UNITS OUTSTANDING AT END OF PERIOD 5,562,204 110,914 289,997 167,760 124,340 75,681 151,818
===================================================================================================================================
FOR THE PERIOD FROM INCEPTION TO
DECEMBER 31, 1997 4-MAR-97 17-MAR-97 1-MAY-97 21-FEB-97 21-FEB-97 17-MAR-97 21-FEB-97
- -----------------------------------------------------------------------------------------------------------------------------------
From operations:
Net investment income (loss) $ 15,115 $ (68) $ 545 $ (1,842) $ (1,397) $ (1,805) $ (917)
Net realized and unrealized gains
(losses) - 4,275 5,376 24,498 12,753 29,115 7,806
------------ ---------- ---------- ---------- ---------- ----------- ---------
Change in net assets resulting
from operations 15,115 4,207 5,921 22,656 11,356 27,310 6,889
------------ ---------- ---------- ---------- ---------- ----------- ---------
From capital transactions:
Net premiums/deposits 3,534,379 22,534 116,421 427,889 186,728 444,865 146,548
Withdrawals (6,610) - (507) (701) (12) (704) -
Transfers into (out of) subaccounts,
net -- Note 1 (2,681,800) 23,942 68,644 46,125 69,294 91,414 175,629
------------ ---------- ---------- ---------- ---------- ----------- ---------
Change in net assets resulting
from capital transactions 845,969 46,476 184,558 473,313 256,010 535,575 322,177
------------ ---------- ---------- ---------- ---------- ----------- ---------
Increase in net assets 861,084 50,683 190,479 495,969 267,366 562,885 329,066
Net assets at beginning of period - - - - - - -
------------ ---------- ---------- ---------- ---------- ----------- ---------
NET ASSETS AT END OF PERIOD $ 861,084 $ 50,683 $ 190,479 $ 495,969 $ 267,366 $ 562,885 $ 329,066
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER UNIT AT END OF
PERIOD $ 1.00 $ 14.29 $ 10.95 $ 24.28 $ 18.01 $ 114.39 $ 19.94
==================================================================================================================================
UNITS OUTSTANDING AT END OF PERIOD 861,084 3,547 17,395 20,427 14,845 4,921 16,503
==================================================================================================================================
</TABLE>
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
6
<PAGE> 7
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- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
THE THE
ALGER THE ALGER MFS VAN ECK
AMERICAN ALGER AMERICAN MFS GROWTH MFS MFS SOGEN WORLDWIDE VAN ECK
SMALL AMERICAN MIDCAP EMERGING MFS WITH LIMITED TOTAL OVERSEAS HARD EMERGING
CAPITALIZATION GROWTH GROWTH GROWTH RESEARCH INCOME MATURITY RETURN VARIABLE ASSETS MARKETS
PORTFOLIO PORTFOLIO PORTFOLIO SERIES SERIES SERIES SERIES SERIES FUND FUND FUND
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$ 115,699 $ 307,440 $ 18,386 $ (10,989) $ (1,475) $ (16,356) (7,862) $ 12,833 $ (24,005) $ 4,608 $ (2,674)
2,409 766,562 131,442 548,478 172,413 234,577 (11,034) 69,285 (64,492) (40,765) (109,753)
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- ---------
118,108 1,074,002 149,828 537,489 170,938 218,221 (18,896) 82,118 (88,497) (36,157) (112,427)
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- ---------
1,012,659 2,385,652 456,073 845,164 586,011 1,164,678 743,654 968,524 1,098,070 128,466 348,583
(3,193) - (3,436) - - (4,023) (7,699) - (3,348) - -
(27,136) (13,467) - (9,089) (1,253) - (6,502) (7,865) (16,724) (20,009) (3,769)
(16,711) (33,198) (1,155) (24,319) (11,140) (17,911) (6,087) (11,868) (21,157) (1,198) (4,392)
321,797 1,782,528 529,267 1,432,918 777,200 805,436 245,382 602,434 317,226 61,004 156,590
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- ---------
1,287,416 4,121,515 980,749 2,244,674 1,350,818 1,948,180 968,748 1,551,225 1,374,067 168,263 497,012
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- ---------
1,405,524 5,195,517 1,130,577 2,782,163 1,521,756 2,166,401 949,852 1,633,343 1,285,570 132,106 384,585
195,731 249,383 42,427 141,648 156,415 219,017 81,706 259,844 752,892 9,037 16,890
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- ---------
$ 1,601,255 $5,444,900 $1,173,004 $2,923,811 $1,678,171 $2,385,418 1,031,558 $1,893,187 $2,038,462 $141,143 $ 401,475
- -----------------------------------------------------------------------------------------------------------------------------------
$ 43.97 $ 53.22 $ 28.87 $ 21.47 $ 19.05 $ 20.11 10.16 $ 18.12 $ 10.07 $ 9.20 $ 7.12
===================================================================================================================================
36,417 102,309 40,631 136,181 88,093 118,618 101,531 104,481 202,429 15,342 56,387
===================================================================================================================================
3-APR-97 17-JUN-97 21-FEB-97 21-FEB-97 21-FEB-97 13-MAR-97 1-MAY-97 21-FEB-97 3-FEB-97 3-APR-97 11-APR-97
- -----------------------------------------------------------------------------------------------------------------------------------
$ (610) $ (621) $ (110) $ (692) $ (969) $ 4,340 2,670 $ (1,259) $ (8,364) $ (20)$ (94)
(8,089) (8,265) 37 4,080 8,664 8,296 (784) 16,912 (27,254) (178) (5,069)
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- --------
(8,699) (8,886) (73) 3,388 7,695 12,636 1,886 15,653 (35,618) (198) (5,163)
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- --------
186,908 203,646 38,097 99,654 121,533 124,921 75,938 186,723 819,873 4,326 19,999
- - - - - - (960) (786) (959) - -
17,522 54,623 4,403 38,606 27,187 81,460 4,842 58,254 (30,404) 4,909 2,054
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- --------
204,430 258,269 42,500 138,260 148,720 206,381 79,820 244,191 788,510 9,235 22,053
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- --------
195,731 249,383 42,427 141,648 156,415 219,017 81,706 259,844 752,892 9,037 16,890
- - - - - - - - - - -
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- --------
$ 195,731 $ 249,383 $ 42,427 $ 141,648 $ 156,415 $ 219,017 81,706 $ 259,844 $ 752,892 $ 9,037 16,890
----------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ---------- -------- --------
$ 43.75 $ 42.76 $ 24.18 $ 16.14 $ 15.79 $ 16.44 10.01 $ 16.63 $ 9.77 $ 15.72 $ 11.00
==================================================================================================================================
4,474 5,832 1,755 8,776 9,906 13,322 8,162 15,625 77,062 575 1,536
==================================================================================================================================
</TABLE>
- --------------------------------------------------------------------------------
7
<PAGE> 8
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
- --------------------------------------------------------------------------------
Valley Forge Life Insurance Company Variable Annuity Separate Account
("Variable Account"), a unit investment trust registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, is a separate
account of Valley Forge Life Insurance Company ("VFL"). The Variable Account
began operation on February 3, 1997. The assets of the Variable Account are
segregated from VFL's general account and its other separate accounts. VFL is a
wholly-owned subsidiary of Continental Assurance Company ("Assurance").
Assurance is a wholly-owned subsidiary of Continental Casualty Company
("Casualty"), which is wholly-owned by CNA Financial Corporation ("CNA"). Loews
Corporation owns approximately 85% of the outstanding common stock of CNA.
VFL sells a wide range of life insurance products, including the Flexible
Premium Deferred Annuity Contract ("Contract"). Under the terms of the Contract,
contractholders select where the net purchase payments of the Contract are
invested. The contractholder may choose to invest in either the Variable
Account, the Guaranteed Interest Option Separate Account ("GIO Account") or both
the Variable Account and the GIO Account.
The Variable Account currently offers 18 subaccounts each of which invests
in shares of corresponding funds ("Funds"), in which the contractholders bear
all of the investment risk. Each Fund is either an open-end diversified
management investment company or a separate investment portfolio of such a
company and is managed by a registered investment advisor ("Investment
Advisor"). The Investment Advisors and subaccounts are identified in Notes 3 and
4.
The GIO Account is also a separate account of VFL. Through the guaranteed
interest option, VFL offers specified effective annual rates of interest that
are credited daily and available for specified periods of time. Contractholders
choosing the guaranteed interest option do not participate in the investment
performance of the GIO Account and this performance does not determine the GIO
Account value or benefits relating thereto.
The assets of the GIO Account and the Variable Account are held separately
from other VFL assets and from the general account of VFL. The contractholder
(before the maturity date, while the contractholder is still living or the
Contract is in force) may transfer all or part of any subaccount value to
another subaccount(s) or to the GIO Account, or transfer all or part of GIO
Account value to any subaccounts. The GIO Account, however, unlike the Variable
Account, is not registered as an investment company under the 1940 Act. Separate
financial statements are not prepared for the GIO Account and the accompanying
financial statements do not reflect amounts invested in the GIO Account.
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
VALUATION OF INVESTMENTS -- Investments in the Variable Account consist of
shares of the Funds and are stated at market value based on quoted market
prices. Changes in the difference between market value and cost are reflected as
net unrealized gains (losses) in the accompanying financial statements.
INVESTMENT INCOME -- Investment income consists of dividends declared by
the Funds and are recognized on the date of record.
REALIZED INVESTMENT GAINS AND LOSSES -- Realized investment gains and
losses in the Variable Account represent the difference between the proceeds
from sales of shares of the Funds held by the subaccount and the cost of such
shares, which is determined using the average cost method.
- --------------------------------------------------------------------------------
8
<PAGE> 9
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
- --------------------------------------------------------------------------------
FEDERAL INCOME TAXES -- Net investment income and realized gains and losses
on investments of the Variable Account are taxable to contractholders generally
upon distribution. Accordingly, no provision for income taxes has been recorded
in the accompanying financial statements.
USE OF ESTIMATES -- 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.
In the opinion of Variable Accounts' management, these statements include all
adjustments, consisting of normal recurring accruals, which are necessary for
the fair presentation of the financial position, results of operations and
changes in net assets in the accompanying financial statements.
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENTS
- --------------------------------------------------------------------------------
The investments in the Funds/subaccounts of the Variable Account at
December 31, 1998 and December 31, 1997 are as follows:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR
FUND/SUBACCOUNT SHARES COST MARKET VALUE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FEDERATED ADVISERS:
FEDERATED PRIME MONEY FUND II
December 31, 1998 5,562,204 $5,562,204 $ 5,562,204
December 31, 1997 861,084 $ 861,084 $ 861,084
FEDERATED UTILITY FUND II
December 31, 1998 110,914 $1,618,977 $ 1,693,662
December 31, 1997 3,547 $ 46,493 $ 50,683
FEDERATED HIGH INCOME BOND FUND II
December 31, 1998 289,997 $3,181,228 $ 3,166,765
December 31, 1997 17,395 $ 186,564 $ 190,479
FIDELITY MANAGEMENT & RESEARCH COMPANY:
FIDELITY VARIABLE INSURANCE PRODUCTS FUND EQUITY-INCOME
PORTFOLIO ("FIDELITY EQUITY-INCOME PORTFOLIO")
December 31, 1998 167,760 $4,065,113 $ 4,264,468
December 31, 1997 20,427 $ 489,697 $ 495,969
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II ASSET MANAGER
PORTFOLIO ("FIDELITY ASSET MANAGER PORTFOLIO")
December 31, 1998 124,340 $2,089,493 $ 2,258,023
December 31, 1997 14,845 $ 265,773 $ 267,366
</TABLE>
- --------------------------------------------------------------------------------
9
<PAGE> 10
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR
FUND/SUBACCOUNT SHARES COST MARKET VALUE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II INDEX 500
PORTFOLIO ("FIDELITY INDEX 500 PORTFOLIO")
December 31, 1998 75,681 $9,535,262 $10,689,980
December 31, 1997 4,921 $ 543,072 $ 562,885
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II CONTRAFUND
PORTFOLIO ("FIDELITY CONTRAFUND PORTFOLIO")
December 31, 1998 151,818 $3,233,621 $ 3,710,438
December 31, 1997 16,503 $ 324,992 $ 329,066
FRED ALGER MANAGEMENT, INC.:
THE ALGER AMERICAN SMALL CAPITALIZATION PORTFOLIO
December 31, 1998 36,417 $1,573,096 $ 1,601,255
December 31, 1997 4,474 $ 209,368 $ 195,731
THE ALGER AMERICAN GROWTH PORTFOLIO
December 31, 1998 102,309 $4,648,328 $ 5,444,900
December 31, 1997 5,832 $ 258,380 $ 249,383
THE ALGER AMERICAN MIDCAP GROWTH PORTFOLIO
December 31, 1998 40,631 $1,026,368 $ 1,173,004
December 31, 1997 1,755 $ 43,880 $ 42,427
MASSACHUSETTS FINANCIAL SERVICES COMPANY:
MFS EMERGING GROWTH SERIES
December 31, 1998 136,181 $2,412,308 $ 2,923,811
December 31, 1997 8,776 $ 137,690 $ 141,648
MFS RESEARCH SERIES
December 31, 1998 88,093 $1,510,731 $ 1,678,171
December 31, 1997 9,906 $ 150,896 $ 156,415
MFS GROWTH WITH INCOME SERIES
December 31, 1998 118,618 $2,186,056 $ 2,385,418
December 31, 1997 13,322 $ 213,707 $ 219,017
MFS LIMITED MATURITY SERIES
December 31, 1998 101,531 $1,055,699 $ 1,031,558
December 31, 1997 8,162 $ 83,692 $ 81,706
MFS TOTAL RETURN SERIES
December 31, 1998 104,481 $1,832,876 $ 1,893,187
December 31, 1997 15,625 $ 248,196 $ 259,844
</TABLE>
- --------------------------------------------------------------------------------
10
<PAGE> 11
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 3. INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR
FUND/SUBACCOUNT SHARES COST MARKET VALUE
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SOCIETE GENERALE ASSETS MANAGEMENT CORP.:
SOGEN OVERSEAS VARIABLE FUND
December 31, 1998 202,429 $2,137,738 $ 2,038,462
December 31, 1997 77,062 $ 787,738 $ 752,892
VAN ECK ASSOCIATES CORPORATION:
VAN ECK WORLDWIDE HARD ASSETS FUND
December 31, 1998 15,342 $ 161,414 $ 141,143
December 31, 1997 575 $ 9,226 $ 9,037
VAN ECK EMERGING MARKETS FUND
December 31, 1998 56,387 $ 466,744 $ 401,475
December 31, 1997 1,536 $ 21,555 $ 16,890
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE> 12
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 4. INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
The aggregate cost of purchases and proceeds from sales of shares of Funds
in the subaccounts for the year ended December 31, 1998 and from inception
through 1997 are as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
INVESTMENT ADVISOR 1998 1997
FUND/SUBACCOUNT PURCHASES SALES PURCHASES SALES
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FEDERATED ADVISERS:
Federated Prime Money Fund II $37,915,138 $33,510,211 $3,550,031 $2,710,000
Federated Utility Fund II 2,109,966 576,317 131,884 85,557
Federated High Income Bond Fund II 3,840,081 851,353 226,400 42,489
FIDELITY MANAGEMENT & RESEARCH COMPANY:
Fidelity Equity-Income Portfolio 4,569,909 1,025,191 675,097 203,626
Fidelity Asset Manager Portfolio 2,313,974 499,483 429,770 175,157
Fidelity Index 500 Portfolio 10,107,926 1,322,627 646,677 112,906
Fidelity Contrafund Portfolio 3,468,672 621,107 366,624 45,364
FRED ALGER MANAGEMENT, INC.:
The Alger American Small Capitalization Portfolio 1,599,548 324,883 327,651 123,882
The Alger American Growth Portfolio 4,889,796 802,055 391,931 134,284
The Alger American MidCap Growth Portfolio 1,170,468 196,448 55,923 13,622
MASSACHUSETTS FINANCIAL SERVICES COMPANY:
MFS Emerging Growth Series 2,619,399 391,222 319,665 182,097
MFS Research Series 1,743,636 402,179 181,534 33,784
MFS Growth With Income Series 2,781,439 849,615 231,099 25,510
MFS Limited Maturity Series 1,655,554 694,668 135,099 55,749
MFS Total Return Series 2,062,990 526,378 466,510 223,577
SOCIETE GENERALE ASSETS MANAGEMENT CORP.:
SoGen Overseas Variable Fund 1,826,237 476,175 994,765 214,619
VAN ECK ASSOCIATES CORPORATION:
Van Eck Worldwide Hard Assets Fund 212,775 45,735 10,106 892
Van Eck Emerging Markets Fund 623,134 129,579 26,885 4,925
</TABLE>
- --------------------------------------------------------------------------------
12
<PAGE> 13
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
VALLEY FORGE LIFE INSURANCE COMPANY
VARIABLE ANNUITY SEPARATE ACCOUNT
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NOTE 5. CHARGES AND DEDUCTIONS
- --------------------------------------------------------------------------------
VFL deducts a daily charge from the assets of the Variable Account to
compensate it for mortality and expense risks that it assumes under the
Contract. The daily charge is equal to an annual rate of 1.25% of the net assets
of the subaccount.
An annual administration fee of $30 is also deducted from the subaccounts
on each Contract if the contract value is below $50,000. This fee covers a
portion of VFL's administrative expenses related to the contracts.
VFL deducts a daily administration charge from the assets of the
subaccounts on each Contract to compensate it for a portion of the expenses it
incurs in administering the contracts. The daily charge is equal to an annual
rate of 0.15% of the net assets of the subaccounts.
VFL permits 12 transfers among and between the subaccounts within the
Variable Account (four of which can be applied to the GIO Account) per contract
year without an assessment of a fee. For each additional transfer, VFL charges
$25 at the time each such transfer is processed. The fee is deducted from the
amount being transferred.
- --------------------------------------------------------------------------------
NOTE 6. DIVERSIFICATION REQUIREMENTS
- --------------------------------------------------------------------------------
Under the provisions of Section 817(h) of the Internal Revenue Code of 1986
(the Code), a variable annuity contract, other than a contract issued in
connection with certain types of employee benefit plans, will not be treated as
an annuity contract for federal tax purposes for any period for which the
investments of the segregated asset account on which the contract is based are
not adequately diversified. The Code provides that the "adequately diversified"
requirement may be met if the underlying investments satisfy either a statutory
safe harbor test or diversification requirements set forth in regulations issued
by the Secretary of the Treasury. VFL believes, based on the prospectuses of
each of the Funds that the Variable Account participates in, that the Funds
satisfy the diversification requirement of the regulations.
- --------------------------------------------------------------------------------
13
<PAGE> 14
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
To the Contractholders of Valley Forge Life Insurance Company Variable Annuity
Separate Account and the Board of Directors of Valley Forge Life Insurance
Company:
We have audited the accompanying statements of assets and liabilities of
the subaccounts of Valley Forge Life Insurance Company Variable Annuity Separate
Account (the "Account") as of December 31, 1998 and 1997, and the related
statements of operations and changes in net assets for the year ended December
31, 1998 and the period from inception through December 31, 1997. The
subaccounts that collectively comprise the Account are the Federated Prime Money
Fund II, Federated Utility Fund II, Federated High Income Bond Fund II, Fidelity
Variable Insurance Products Fund Equity-Income Portfolio, Fidelity Variable
Insurance Products Fund II Asset Manager Portfolio, Fidelity Variable Insurance
Products Fund II Index 500 Portfolio, Fidelity Variable Insurance Products Fund
II Contrafund Portfolio, The Alger American Fund Small Capitalization Portfolio,
The Alger American Growth Portfolio, The Alger American MidCap Growth Portfolio,
MFS Emerging Growth Series, MFS Research Series, MFS Growth With Income Series,
MFS Limited Maturity Series, MFS Total Return Series, SoGen Overseas Variable
Fund, Van Eck Worldwide Hard Assets Fund and Van Eck Emerging Markets Fund.
These financial statements are the responsibility of the Variable Account's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits 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 securities owned at December 31, 1998 and 1997. 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 audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of each of the subaccounts that comprise the
Account as of December 31, 1998 and 1997, the results of their operations and
the changes in their net assets for the year ended December 31, 1998 and the
period from inception through December 31, 1997, in conformity with generally
accepted accounting principles.
Chicago, Illinois
February 23, 1999
- --------------------------------------------------------------------------------
14
<PAGE> 15
- --------------------------------------------------------------------------------
MANAGEMENT'S DISCUSSION OF IMPACT OF YEAR 2000 ON VARIABLE ACCOUNT
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The widespread use of computer programs, both in the United States and
internationally, that rely on two digit date fields to perform computations and
decision making functions may cause computer systems to malfunction when
processing information involving dates beginning in 1999. Such malfunctions
could lead to business delays and disruptions. Variable Account does not
maintain any systems. Instead, it relies on the systems of Assurance and third
party vendors. CNA, on behalf of Assurance, has a plan under which it reviews
periodically the progress that these parties are making on this issue. To date,
CNA on behalf of Assurance has certified internally as Year 2000-ready all of
the internal systems used by Assurance. CNA estimates that the total cost to
replace and upgrade its systems to accommodate Year 2000 processing will be
approximately $60 to $70 million. As of December 31, 1998, CNA has spent
approximately $59 million on Year 2000 readiness matters.
CNA has also received statements of Year 2000 compliance from certain of
key business partners. Variable Account management believes that the systems on
which it relies do not have any significant remaining exposure to the Year 2000
issue and, therefore, Variable Account does not have material exposure to the
Year 2000 issue. However, due to the interdependent nature of computer systems,
there may be an adverse impact on the Variable Account if its business partners
fail to successfully address the Year 2000 issue. To mitigate this impact, if
any, CNA is communicating with these various entities to coordinate Year 2000
conversion.
In addition, CNA has developed business resumption plans to ensure that it
and Variable Account are able to continue critical processes through other means
in the event that it becomes necessary to do so. Formal strategies have been
developed within each business unit and support organization to include
appropriate recovery processes and use of alternative vendors.
- --------------------------------------------------------------------------------
15
<PAGE> 16
CNA
CAPITAL SELECT /SM/
VARIABLE
ANNUITY
================================================================================
|
| ANNUAL REPORT
| ISSUED BY THE
| VALLEY FORGE
| LIFE INSURANCE COMPANY,
| ONE OF THE CNA
| COMPANIES
|
|
|
| DECEMBER 31, 1998
|
|
|
[LOGO OF CNA]
FOR ALL THE COMMITMENTS YOU MAKE(R)
The principal underwriter of this product is CNA Investor Services, Inc., a
registered broker-dealer and member of the National Association of Securities
Dealers. CNA Investor Services, Inc., is an affiliate of CNA Financial
Corporation. CNA annuities are issued by the Valley Forge Life Insurance
Company, one of the CNA insurance companies.
CNA is a registered service mark of CNA Financial Corporation. The policy form
numbers for this product are: V100-1128-A Series, V100-1129-A Series,
P4-119913-A Series and P4-119914-A Series. The CNA Capital Select Variable
Annuity is not available in all states.
Mailing Address:
CNA Insurance Companies
Variable Product Team
P.O. Box 305139
Nashville TN 37230-5139
[LOGO OF CNA]
FOR ALL THE COMMITMENTS YOU MAKE(R)
AG-134300-A 2/99 Printed in USA
