Glenbrook Life and Annuity Company
Glenbrook Life Multi-Manager Variable Account
Supplement, dated January 24, 2000 to
Glenbrook Provider Variable Annuity Prospectus
dated May 1, 1999
This supplement amends certain disclosure contained in the above-referenced
prospectus for the Glenbrook Provider Variable Annuity Contract (the "Contract")
offered by SunTrust Annuities, Inc. ("SunTrust Annuities") and sold under the
direction of SunTrust Securities, Inc., a registered broker-dealer ("SunTrust
Securities"). SunTrust Annuities and SunTrust Securities are affiliates of
SunTrust Banks, Inc. This supplement supercedes any prior supplement to the
prospectus. Please keep this supplement for future reference together with your
prospectus.
Cover page: Replace the second paragraph and the first sentence of the third
paragraph with the following:
The Contract currently offers 35 ("investment alternatives"). The investment
alternatives include 3 fixed account options ("Fixed Account Options") and
32 variable sub-accounts ("Variable Sub-Accounts") of the Glenbrook Life
Multi-Manager Variable Account ("Variable Account"). Each Variable
Sub-Account invests exclusively in shares of one of the following portfolios
("Portfolios") of the following mutual funds ("Funds"):
<TABLE>
<CAPTION>
AIM Variable Insurance Funds, Inc.: Oppenheimer Variable Account Funds:
---------------------------------- ----------------------------------
<S> <C>
AIM V.I. Balanced Fund Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Capital Appreciation Fund/VA
AIM V.I. Growth Fund Oppenheimer Global Securities Fund/VA
AIM V.I. Growth and Income Fund Oppenheimer Main Street Growth and Income Fund/VA
AIM V.I. High Yield Fund Oppenheimer Multiple Strategies Fund/VA
AIM V.I. Value Fund Oppenheimer Strategic Bond Fund/VA
Federated Insurance Series STI Classic Variable Trust:
--------------------------- ---------------------------
Federated Prime Money Fund II STI Capital Appreciation Fund
STI Growth and Income Fund
Fidelity Variable Insurance Products Fund (VIP): STI International Equity
-------------------------------------------------- STI Investment Grade Bond Fund
Fund Fidelity VIP Equity-Income Portfolio - Initial Class STI Mid-Cap Equity Fund
Fidelity VIP Growth Portfolio - Initial Class STI Quality Growth Stock Fund
Fidelity VIP High Income Portfolio - Initial Class STI Small Cap Equity Fund
Fidelity VIP Overseas Portfolio - Initial Class STI Value Income Stock Fund
Fidelity Variable Insurance Products Fund II (VIPII): Templeton Variable Products Series Fund:
---------------------------------------------------- ----------------------------------------
Fidelity VIP II Contrafund(R)Portfolio - Initial Class Templeton Bond Fund - Class 2
Fidelity VIP II Index 500 Portfolio - Initial Class Templeton Stock Fund - Class 2
MFS(R) Variable Insurance Trust SM
----------------------------------
MFS Emerging Growth Series
MFS Growth with Income Series
MFS Research Series
</TABLE>
Delete all references in the prospectus to any Portfolio not listed above, to
any corresponding Variable Sub-Account, and to the following investment
advisers: American Century Investment Management, Inc., The Dreyfus Corporation,
Goldman Sachs Asset Management, Goldman Sachs Asset Management International,
Morgan Stanley Dean Witter Investment Management, Inc., and Neuberger Berman
Management Inc.
Page 4: Add "Federated Investment Management Company," "OppenheimerFunds, Inc.,"
"Templeton Investment Counsel, Inc.," and Trusco Capital Management, Inc. to the
list of investment advisers under the heading "Investment Alternatives."
Change all references throughout the prospectus to the availability of "44"
Variable Sub-Accounts to "32" Variable Sub-Accounts, and "47" investment
alternatives to "35" investment alternatives.
Page 8: Insert the following to the chart describing Portfolio Annual Expenses:
<TABLE>
<CAPTION>
Total Annual
Management Rule 12b-1 Other Portfolio
Portfolio Fee Fees Expenses Expenses
--------- -------- ------ -------- --------------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II 0.49 - - - 0.31 0.80%
Fidelity VIP Overseas Portfolio - Initial Class 0.74 - - - 0.15 0.89%
Fidelity VIP II Index 500 Portfolio - Initial Class 0.24 - - - 0.04 0.28%
MFS Research Series(4) 0.75 - - - 0.11 0.86%
Oppenheimer Aggressive Growth Fund/VA 0.69 - - - 0.02 0.71%
Oppenheimer Capital Appreciation Fund/VA 0.72 - - - 0.03 0.75%
Oppenheimer Global Securities Fund/VA 0.68 - - - 0.06 0.74%
Oppenheimer Main Street Growth and Income Fund/VA 0.74 - - - 0.05 0.79%
Oppenheimer Multiple Strategies Fund/VA 0.72 - - - 0.04 0.76%
Oppenheimer Strategic Bond Fund/VA 0.74 - - - 0.06 0.80%
STI Growth and Income Fund(6) 0.90 - - - 0.30 1.20%
STI International Equity Fund(1) 0.78 - - - 0.82 1.60%
STI Investment Grade Bond Fund(1) 0.15 - - - 0.60 0.75%
STI Mid-Cap Equity Fund(1) 0.77 - - - 0.38 1.15%
STI Quality Growth Stock Fund(6) 1.00 - - - 0.30 1.30%
STI Small Cap Equity Fund(1) 0.45 - - - 0.75 1.20%
Templeton Bond Fund - Class 2(5) 0.50 0.15 0.23 0.88%
Templeton Stock Fund - Class 2(5) 0.70 0.25 0.19 1.14%
</TABLE>
Page 9: Insert the following after the first sentence of footnote (1) of the
chart describing Portfolio Annual Expenses:
<TABLE>
<CAPTION>
Total Annual
Management Rule 12b-1 Other Portfolio
Portfolio Fee Fees Expenses Expenses
--------- --- ---- -------- --------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II 0.50 - - - 0.31 0.81%
Fidelity VIP Overseas Portfolio - Initial Class 0.74 - - - 0.17 0.91%
Fidelity VIP II Index 500 Portfolio- Initial Class 0.24 - - - 0.11 0.35%
STI International Equity Fund 1.25 - - - 0.82 2.07%
STI Investment Grade Bond Fund 0.74 - - - 0.60 1.34%
STI Mid-Cap Equity Fund 1.15 - - - 0.38 1.53%
STI Small Cap Equity Fund 1.15 - - - 0.75 1.90%
</TABLE>
Page 9: Add the following to footnote (3) of the chart describing Portfolio
Annual Expenses:
Absent reimbursements by MFS, "Other Expenses" for the Portfolio, expressed
as a percentage of average net assets, would have been 4.32%.
Page 9: Delete footnote (4) to the chart describing Portfolio Annual Expenses
and add the following footnotes:
(4) The Portfolio has an expense offset arrangement and directed brokerage
arrangements that have the effect of reducing the Portfolio's expenses. Expenses
do not take into account these expense reductions, and are therefore higher than
the actual expenses of the Portfolio.
(5) Class 2 of the Templeton Bond Fund has a distribution plan or "Rule 12b-1
plan" as described in the Fund prospectus. Because no Class 2 shares of
Templeton Bond Fund were issued as of December 31, 1998, figures (other than
"12b-1 Fees") are based on the expenses of the Fund's Class 1 shares for the
fiscal year ended December 31, 1998, plus Class 2's maximum annual Rule 12b-1
fee of 0.15%. See the Templeton Variable Products Series Fund prospectus for
more information about the Rule 12b-1 fees payable under the Fund's distribution
plan.
(6) As of December 31, 1999, the Portfolio had not commenced operations. "Other
Expenses" are based on estimated amounts for the current year.
<PAGE>
<TABLE>
<CAPTION>
Page 10: Insert the following to Example 1:
Variable Sub-Account 1 Year 3 Years 5 Years 10 Years
- -------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II $78 $126 $168 $302
Fidelity VIP Overseas $77 $123 $162 $291
Fidelity VIP II Index 500 $71 $104 $131 $227
MFS Research $77 $122 $161 $288
Oppenheimer Aggressive Growth $75 $117 $153 $272
Oppenheimer Capital Appreciation $76 $118 $155 $276
Oppenheimer Global Securities $76 $118 $155 $275
Oppenheimer Main Street Growth and Income $76 $120 $157 $280
Oppenheimer Multiple Strategies $76 $119 $156 $277
Oppenheimer Strategic Bond $76 $120 $158 $282
STI Growth and Income $80 $132 $178 $321
STI International Equity $84 $144 $198 $360
STI Investment Grade Bond $76 $118 $155 $276
STI Mid-Cap Equity $80 $131 $176 $317
STI Quality Growth Stock $81 $135 $183 $331
STI Small Cap Equity $80 $132 $178 $321
Templeton Bond $77 $122 $162 $290
Templeton Stock $80 $130 $175 $316
</TABLE>
<TABLE>
<CAPTION>
Page 11: Insert the following to Example 2:
Variable Sub-Account 1 Year 3 Years 5 Years 10 Years
- -------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Federated Prime Money Fund II $27 $84 $143 $302
Fidelity VIP Overseas $26 $80 $137 $291
Fidelity VIP II Index 500 $20 $61 $105 $227
MFS Research $26 $79 $135 $288
Oppenheimer Aggressive Growth $24 $75 $128 $272
Oppenheimer Capital Appreciation $25 $76 $130 $276
Oppenheimer Global Securities $25 $76 $129 $275
Oppenheimer Main Street Growth and Income $25 $77 $132 $280
Oppenheimer Multiple Strategies $25 $76 $130 $277
Oppenheimer Strategic Bond $25 $78 $132 $282
STI Growth and Income $29 $90 $153 $321
STI International Equity $33 $102 $173 $360
STI Investment Grade Bond $25 $76 $130 $276
STI Mid-Cap Equity $29 $88 $150 $317
STI Quality Growth Stock $30 $93 $158 $331
STI Small Cap Equity $29 $90 $153 $321
Templeton Bond $26 $80 $136 $290
Templeton Stock $29 $88 $150 $316
</TABLE>
Page 12: Replace the last two sentences of the second paragraph under Financial
Information with the following:
The financial statements of Glenbrook and the Variable Account, including
unaudited financial statements for the period ended September 30, 1999,
appear in the Statement of Additional Information.
Page 16: Insert the following to the table describing the investment objective
and investment adviser of each Portfolio:
<TABLE>
<CAPTION>
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
<S> <C> <C>
Portfolio: Each Portfolio Seeks: Investment Adviser*
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Federated Insurance Series
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Prime Money Fund II Current income consistent with the Federated Investment Management
stability of principal and liquidity Company
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund (VIP) *
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio - Initial Class Long-term growth of capital Fidelity Management & Research
Company
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity Variable Insurance Products Fund II (VIPII) *
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Index 500 Portfolio - Initial Class Investment results that correspond to the Fidelity Management & Research
total return of common stocks publicly Company
traded in the United States, as
represented by the S&P 500
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
MFS(R) Variable Insurance Trust SM
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
MFS Research Series Long-term growth of capital and future MFS Investment Management(R)
income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
- -----------------------------------------------------------------------------------------------------------------------------------
OppenheimerFunds, Inc.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Aggressive Growth Fund/VA Capital appreciation
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Capital Appreciation Fund/VA Capital appreciation
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Global Securities Fund/VA Long-term capital appreciation
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Main Street Growth and Income Fund/VA High total return, which includes
growth in the value of its shares
as well as current income, from
equity and debt securities
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Multiple Strategies Fund/VA A high total investment return which
includes current income and capital
appreciation in the value of its
shares.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Oppenheimer Strategic Bond Fund/VA High level of current income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Growth and Income Fund Long-term capital appreciation with the Trusco Capital Management, Inc.
secondary goal of current income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI International Equity Fund Long-term capital appreciation STI Capital Management, N.A.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Investment Grade Bond Fund High total return through current income STI Capital Management, N.A.
and capital appreciation, while
preserving the principal amount invested
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Mid-Cap Equity Fund Capital appreciation STI Capital Management, N.A.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Quality Growth Stock Fund Long-term capital appreciation with Trusco Capital Management, Inc.
nominal dividend income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
STI Small Cap Equity Fund Capital appreciation with the secondary STI Capital Management, N.A.
goal of current income
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton Variable Products Series Fund
- -----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Templeton Bond Fund - Class 2 High current income Templeton Investment Counsel,
Inc.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
Templeton Stock Fund - Class 2 Long-term capital growth Templeton Investment Counsel,
Inc.
- ----------------------------------------------------- ------------------------------------------- ---------------------------------
</TABLE>
<PAGE>
* The following entities serve as sub-advisers to the Portfolios indicated
below:
<TABLE>
<CAPTION>
- ----------------------------------------------------------- --------------------------------------------------------------------
<S> <C>
Portfolio Sub-Adviser(s)
- ----------------------------------------------------------- --------------------------------------------------------------------
- ----------------------------------------------------------- --------------------------------------------------------------------
Fidelity VIP Overseas Portfolio - Initial Class Fidelity Management & Research (U.K.) Inc.; Fidelity Management &
Research Far East Inc.; Fidelity International Investment
Advisors; and Fidelity International Investment Advisors (UK)
- ----------------------------------------------------------- --------------------------------------------------------------------
- ----------------------------------------------------------- --------------------------------------------------------------------
Fidelity VIP II Index 500 Portfolio - Initial Class Bankers Trust Company
- ----------------------------------------------------------- --------------------------------------------------------------------
</TABLE>
Page 29: Replace the first sentence of the third paragraph under the sub-heading
THE VARIABLE ACCOUNT with the following:
The Variable Account consists of 66 Variable Sub-Accounts, of which 32 are
currently available for investment under the Contract.
Page A-1 (Appendix A): Add the following after the table of Accumulation Unit
Values:
As of September 30, 1999, there were no Accumulation Unit Values to report
for the following Variable Sub-Accounts, which had not commenced operations
as of that date: the Federated Prime Money Fund II, Fidelity Overseas,
Fidelity Index 500, MFS Research, Oppenheimer Aggressive Growth,
Oppenheimer Capital Appreciation, Oppenheimer Global Securities,
Oppenheimer Main Street Growth and Income, Oppenheimer Multiple Strategies,
Oppenheimer Strategic Bond, STI Growth and Income, STI International
Equity, STI Investment Grade Bond, STI Mid-Cap Equity, STI Quality Growth
Stock, STI Small Cap Equity, Templeton Bond, and Templeton Stock Variable
Sub-Accounts.
<PAGE>
Glenbrook Life and Annuity Company
Glenbrook Life Multi-Manager Variable Account
Supplement, dated January 24, 2000, to
Glenbrook Provider Variable Annuity
Statement of Additional Information
dated May 1, 1999
This supplement amends certain disclosure contained in the above-referenced
Statement of Additional Information ("SAI") for the Glenbrook Provider Variable
Annuity Contract (the "Contract") offered by SunTrust Annuities, Inc. ("SunTrust
Annuities") and sold under the direction of SunTrust Securities, Inc., a
registered broker-dealer ("SunTrust Securities"). SunTrust Annuities and
SunTrust Securities are affiliates of SunTrust Banks, Inc. This supplement
supersedes any prior supplement(s) to the Statement of Additional Information.
For convenience, we sometimes refer to the Contract as the Glenbrook Enhanced
SunTrust Provider Variable Annuity contract ("Enhanced SunTrust Provider
Contract").
With respect to the Enhanced SunTrust Provider Contracts, delete all references
in the statement of additional information to the following Portfolios and to
any corresponding Variable Sub-Account:
<TABLE>
<CAPTION>
<S> <C>
AIM V.I. Diversified Income Fund Goldman Sachs Capital Growth Fund
AIM V.I. Global Utilities Fund Goldman Sachs Mid Cap Equity Fund
AIM V.I. Government Securities Fund Goldman Sachs International Equity Fund
AIM V.I. International Equity Fund Goldman Sachs Global Income Fund
American Century VP Balanced Morgan Stanley Fixed Income
American Century VP International Morgan Stanley Equity Growth
Dreyfus Socially Responsible Growth Morgan Stanley Value
Dreyfus Stock Index Morgan Stanley Mid Cap Value
Dreyfus VIF Growth and Income Morgan Stanley U.S. Real Estate
Dreyfus VIF Money Market Morgan Stanley Global Equity
Dreyfus VIF Small Company Stock Morgan Stanley International Magnum
Goldman Sachs Growth and Income Fund MFS New Discovery
Goldman Sachs CORE U.S. Equity Fund Neuberger & Berman AMT Guardian
Goldman Sachs CORE Large Cap Growth Fund Neuberger & Berman AMT Mid-Cap Growth
Goldman Sachs CORE Small Cap Equity Fund Neuberger & Berman AMT Partners
</TABLE>
Pages 4, 10 & 15: Insert "(except as otherwise indicated)" after the date in the
first sentence of the fourth paragraph under Standardized Total Returns, after
the date in the first sentence of the third paragraph under Non-Standardized
Total Returns, and after the date in the first sentence of the second paragraph
under Adjusted Historical Total Returns.
Page 4: Append the following to the fifth paragraph under Standardized Total
Returns:
No standardized total returns are shown for the Federated Prime Money Fund
II. In addition, no standardized total returns are shown for the Fidelity
VIP II Index 500, Fidelity VIP Overseas, Oppenheimer Multiple Strategies,
STI Growth and Income, STI International Equity, STI Investment Grade Bond,
STI Mid-Cap Equity, STI Quality Growth Stock, STI Small Cap Equity, and
Templeton Bond Variable Sub-Accounts, because they commenced operations on
January 21, 2000.
Page 10: Append the following after the charts showing standardized total
returns for the Enhanced Provider Contracts:
<TABLE>
<CAPTION>
Since inception* through December 31, 1999
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Without the Enhanced
Death Benefit Rider or
the Enhanced Death and With the Enhanced Death
Income Benefit With the Enhanced Death and Income Benefit
Variable Sub-Account Combination Rider Benefit Rider Combination Rider
- -------------------- ----------------- ------------- -----------------
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
MFS Research 1.31% 1.30% 1.29%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Capital Appreciation 2.75% 2.74% 2.73%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Aggressive Growth 9.90% 9.89% 9.88%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Strategic Bond -5.02% -5.02% -5.03%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Main Street Growth and
Income -1.73% -1.74% -1.75%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Global Securities 3.78% 3.77% 3.77%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Templeton Stock -1.06% -1.07% -1.08%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
</TABLE>
* The Variable Sub-Accounts listed above commenced operations on December
17, 1999. Performance information is not annualized.
Page 11: Append the following after the first sentence of the third paragraph
under Non-Standardized Total Returns:
No non-standardized total returns are shown for the Fidelity VIP II
Index 500, Fidelity VIP Overseas, Oppenheimer Multiple Strategies, STI
Growth and Income, STI International Equity, STI Investment Grade
Bond, STI Mid-Cap Equity, STI Quality Growth Stock, STI Small Cap
Equity, and Templeton Bond Variable Sub-Accounts, because they
commenced operations on January 21, 2000.
Page 11: Append the following after the charts showing non-standardized total
returns for the Enhanced Provider Contracts:
<TABLE>
<CAPTION>
Since inception* through December 31, 1999
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Without the Enhanced
Death Benefit Rider or
the Enhanced Death and With the Enhanced Death
Income Benefit With the Enhanced Death and Income Benefit
Variable Sub-Account Combination Rider Benefit Rider Combination Rider
- -------------------- ----------------- ------------- -----------------
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
<S> <C> <C> <C>
MFS Research 6.48% 6.47% 6.46%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Capital Appreciation 7.92% 7.92% 7.91%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Aggressive Growth 15.07% 15.06% 15.05%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Strategic Bond 0.16% 0.15% 0.14%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Main Street Growth and
Income 3.44% 3.43% 3.42%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Oppenheimer Global Securities 8.96% 8.95% 3.77%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
Templeton Stock 4.11% 4.11% 4.10%
- ----------------------------------------- -------------------------- --------------------------- ---------------------------
</TABLE>
* The Variable Sub-Accounts listed above commenced operations on December 17,
1999. Performance information is not annualized.
Page 16: Insert the following to the chart describing the inception dates of the
Portfolios:
Portfolio Inception Date
--------- --------------
Fidelity VIP II Index 500 8/27/92
Fidelity VIP Overseas 1/28/87
MFS Research 7/26/95
Oppenheimer Multiple Strategies 2/9/87
Oppenheimer Aggressive Growth 8/15/86
Oppenheimer Capital Appreciation 4/3/95
Oppenheimer Global Securities 11/1/90
Oppenheimer Main Street Growth and Income 7/1/95
Oppenheimer Strategic Bond 5/3/93
STI Growth and Income 12/31/99
STI International Equity 11/7/96
STI Investment Grade Bond 10/2/95
STI Mid-Cap Equity 10/2/95
STI Quality Growth Stock 12/31/99
STI Small Cap Equity 10/21/97
Templeton Bond 8/24/88
Templeton Stock 8/24/88
<PAGE>
Page 17: Insert the following after the tables describing the Adjusted
Historical Total Returns for the Enhanced Provider Contracts:
The adjusted historical returns for the following new Variable Sub-Accounts
for the periods ended December 31, 1999 are set out below. No adjusted
historical total returns are shown for the Federated Prime Money Fund II.
No adjusted historical total returns are shown for the STI Growth and
Income or STI Quality Growth Stock Funds which commenced operations on
December 31, 1999.
(Without the Enhanced Death Benefit Rider or the Enhanced Death and Income
Benefit Combination Rider)
<TABLE>
<CAPTION>
------------------------------------------------------- ---------------- ------------------ ---------------------
10 Years or Since
Inception of
Variable Sub-Account 1 Year 5 Years Portfolio if less
-------------------- ------ ------- -----------------
<S> <S> <C> <C> <C>
Fidelity Index 500 19.16% 26.67% 19.70%
Fidelity Overseas 41.04% 15.98% 10.13%
MFS Research 17.46% N/A 21.00%
Oppenheimer Capital Appreciation 34.86% 28.93% 16.23%
Oppenheimer Aggressive Growth 76.34% 27.98% 17.76%
Oppenheimer Strategic Bond -3.52% 6.56% 5.79%
Oppenheimer Main Street Growth and Income 15.14% N/A 23.95%
Oppenheimer Global Securities 51.50% 19.97% 15.40%
Oppenheimer Multiple Strategies Fund/VA 10.52% 13.09% 9.57%
STI International Equity 7.57% N/A 10.82%
STI Investment Grade Bond -2.86% N/A 4.02%
STI Mid-Cap Equity 12.53% N/A 13.36%
STI Small Cap Equity -5.87% N/A -9.74%
Templeton Bond Fund - Class 2 1.49% 6.02% 5.55%
Templeton Stock - Class 2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(With Enhanced Death Benefit Rider)*
------------------------------------------------------- ---------------- ------------------ ---------------------
10 Years or Since
Inception of
Variable Sub-Account 1 Year 5 Years Portfolio if less
-------------------- ------ ------- -----------------
<S> <C> <C> <C>
Fidelity Index 500 18.90% 26.40% 19.44%
Fidelity Overseas 40.74% 15.72% 9.89%
MFS Research 17.19% N/A 20.73%
Oppenheimer Capital Appreciation 34.56% 28.64% 15.98%
Oppenheimer Aggressive Growth 75.94% 27.69% 17.50%
Oppenheimer Strategic Bond -3.75% 6.32% 5.55%
Oppenheimer Main Street Growth and Income 14.88% N/A 23.67%
Oppenheimer Global Securities 51.16% 19.70% 15.15%
Oppenheimer Multiple Strategies Fund/VA 10.28% 12.84% 9.33%
STI International Equity 7.33% N/A 10.58%
STI Investment Grade Bond -3.07% N/A 3.79%
STI Mid-Cap Equity 12.28% N/A 13.11%
STI Small Cap Equity -6.08% N/A -9.94%
Templeton Bond Fund - Class 2 1.26% 5.79% 5.32%
Templeton Stock - Class 2
</TABLE>
<TABLE>
<CAPTION>
(With Enhanced Death and Income Benefit Combination Rider)*
------------------------------------------------------- ---------------- ------------------ ---------------------
10 Years or Since
Inception of
Variable Sub-Account 1 Year 5 Years Portfolio if less
-------------------- ------ ------- -----------------
<S> <C> <C> <C>
Fidelity Index 500 18.65% 26.12% 19.18%
Fidelity Overseas 40.44% 15.47% 9.65%
MFS Research 17.14% N/A 20.72%
Oppenheimer Capital Appreciation 34.51% 28.63% 15.98%
Oppenheimer Aggressive Growth 75.87% 27.68% 17.50%
Oppenheimer Strategic Bond -3.78% 6.31% 5.55%
Oppenheimer Main Street Growth and Income 14.84% N/A 23.66%
Oppenheimer Global Securities 51.10% 19.70% 15.14%
Oppenheimer Multiple Strategies 10.03% 12.59% 9.08%
STI International Equity 7.09% N/A 10.34%
STI Investment Grade Bond -3.28% N/A 3.56%
STI Mid-Cap Equity 12.03% N/A 12.86%
STI Small Cap Equity -6.28% N/A -10.14%
Templeton Bond Fund - Class 2 1.04% 5.56% 5.09%
Templeton Stock - Class 2
</TABLE>
Page 27: Replace the sentence under the heading "Experts" with the following:
The financial statements and related financial statement schedule of
Glenbrook as of December 31, 1998 and 1997 and for each of the three years
in the period ended December 31, 1998 that appear in this Statement of
Additional Information, have been audited by Deloitte & Touche LLP,
independent auditors, as stated in their reports appearing herein, and have
been so included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
The financial statements of the Variable Account as of December 31, 1998
and for the periods indicated in the table of contents to the financial
statements appearing in this Statement of Additional Information, have been
audited by Deloitte & Touche LLP, independent auditors, as stated in their
reports appearing herein, and have been so included in reliance upon the
report of such firm given upon their authority as experts in accounting and
auditing.
Page 28: Replace the first sentence under Financial Statements with the
following:
The financial statements of the Variable Account and Glenbrook as of and
for the periods ended December 31, 1998, and the accompanying Independent
Auditors' Report appear on the pages that follow. The financial statements
of the Variable Account and Glenbrook for the period ended September 30,
1999 are unaudited.
Financial Statements: Insert the following unaudited financial statements for
the Variable Account and Glenbrook after the audited financial statements for
the Variable Account and Glenbrook as of and for the period ended December 31,
1998 that are attached to the Glenbrook Provider Variable Annuity Statement of
Additional Information dated May 1, 1999.
<PAGE>
Glenbrook Life Multi-Manager Variable Account
Financial Statements as of September 30, 1999
(unaudited)
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENT OF NET ASSETS
September 30, 1999
- ------------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C>
NET ASSETS
Allocation to Sub-Accounts investing in the AIM Variable Insurance Funds, Inc. :
V.I. Capital Appreciation, 15,969 shares (cost $386,606) $ 428,753
V.I. Diversified Income, 20,990 shares (cost $237,048) 224,587
V.I. Government Securities, 35,425 shares (cost $390,630) 417,100
V.I. Growth, 26,191 shares (cost $619,195) 717,198
V.I. Growth and Income, 43,024 shares (cost $921,928) 1,127,175
V.I. International Equity, 3,693 shares (cost $74,909) 79,169
V.I. Global Utilities, 1,072 shares (cost $19,493) 19,746
V.I. Value, 63,527 shares (cost $1,615,669) 1,889,720
V.I. Balanced, 19,649 shares (cost $227,506) 225,833
V.I. High Yield, 1,644 shares (cost $15,349) 15,288
Allocation to Sub-Accounts investing in the American Century Variable Portfolios, Inc.:
American Century VP Balanced, 33,978 shares (cost $268,519) 245,322
American Century VP International, 11,045 shares (cost $85,259) 93,553
Allocation to Sub-Accounts investing in the Dreyfus Variable Investment Fund:
VIF Growth and Income, 20,317 shares (cost $449,686) 471,357
VIF Money Market, 108,872 shares (cost $108,872) 108,872
VIF Small Company Stock, 6,130 shares (cost $91,202) 90,340
Allocation to Sub-Account investing in the Dreyfus Socially Responsible Growth Fund,
Inc., 6,383 shares (cost $196,995) 215,171
Allocation to Sub-Account investing in the Dreyfus Stock Index Fund, 59,499 shares (cost $1,800,445) 2,006,926
Allocation to Sub-Accounts investing in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth -
VIS European Growth -
VIS Quality Income Plus -
VIS Utilities -
Allocation to Sub-Accounts investing in the Fidelity Variable Insurance Products Fund:
VIP Growth, 13,233 shares (cost $542,363) 588,475
VIP High Income, 32,602 shares (cost $376,041) 358,411
VIP Equity-Income, 58,598 shares (cost $1,446,162) 1,457,924
Allocation to Sub-Accounts investing in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund, 22,871 shares (cost $527,234) 568,108
Allocation to Sub-Accounts investing in the MFS Variable Insurance Trust:
MFS Emerging Growth, 22,553 shares (cost $485,694) 551,882
MFS Limited Maturity, 7,183 shares (cost $76,667) 74,268
MFS Growth With Income, 7,067 shares (cost $144,548) 136,243
MFS New Discovery, 2,389 shares (cost $28,360) 27,403
</TABLE>
See notes to financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENT OF NET ASSETS (continued)
September 30, 1999
- ----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
<S> <C>
NET ASSETS
Allocation to Sub-Accounts investing in the Goldman Sachs Variable Insurance Trust:
Growth and Income, 2,714 shares (cost $30,396) $ 27,493
CORE U.S. Equity, 18,935 shares (cost $237,197) 232,717
CORE Large Cap Growth, -
CORE Small Cap Equity, 19,917 shares (cost $175,453) 181,645
Capital Growth, 2,170 shares (cost $26,173) 26,045
Mid Cap Value, -
International Equity -
Global Income -
Allocation to Sub-Accounts investing in the Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income, 1,471 shares (cost $15,372) 15,494
Equity Growth, 6,251 shares (cost $103,762) 107,972
Value 15,718 shares (cost $185,139) 166,004
Mid Cap Value, 1,028 shares (cost $15,924) 15,989
U.S. Real Estate -
Global Equity, 191 shares (cost $2,462) 2,537
International Magnum -
Allocation to Sub-Accounts investing in the Neuberger & Berman Advisers Management Trust:
AMT Guardian, 2,545 shares (cost $39,765) 34,683
AMT Partners, 9,657 shares (cost $188,365) 174,314
AMT Mid-Cap Growth, 275 shares (cost $4,247) 4,489
Allocation to Sub-Accounts investing in the STI Classic Variable Trust:
STI Capital Appreciation Fund -
STI Value Income Stock Fund -
--------------
Total Assets 13,128,206
LIABILITIES
Payable to Glenbrook Life and Annuity Company:
Accrued contract charges 3,706
--------------
Net Assets $ 13,124,500
==============
</TABLE>
See notes to financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
--------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
V.I. V.I. V.I. V.I.
Capital Diversified Government V.I. Growth &
Appreciation Income Securities Growth Income
------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 6,867 $ 11,966 $ - $ 26,540 $ 12,017
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (3,705) (2,157) (2,398) (5,853) (10,600)
Administrative expense (273) (167) (178) (448) (803)
------------ ----------- ----------- ----------- -----------
Net investment income (loss) 2,889 9,642 (2,576) 20,239 614
------------ ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 38,741 48,286 11,055 41,879 130,033
Cost of investments sold 45,802 65,300 12,278 61,310 123,492
------------ ----------- ----------- ----------- -----------
Net realized gains (losses) (7,061) (17,014) (1,223) (19,431) 6,541
------------ ----------- ----------- ----------- -----------
Change in unrealized gains (losses) 21,695 (2,089) (352) 46,463 64,909
------------ ----------- ----------- ----------- -----------
Net gains (losses) on investments 14,634 (19,103) (1,575) 27,032 71,450
------------ ----------- ----------- ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 17,523 $ (9,461) $ (4,151) $ 47,271 $ 72,064
============ =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
--------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
V.I. V.I. V.I.
International Global V.I. V.I. High
Equity Utilities Value Balanced Yield
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 626 $ - $ 52,775 $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (734) (97) (15,230) (1,186) (50)
Administrative expense (56) (7) (1,156) (82) (4)
----------- ------------ ------------ ----------- -----------
Net investment income (loss) (164) (104) 36,389 (1,268) (54)
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 5,271 103 194,003 10,076 52
Cost of investments sold 10,333 101 167,254 10,007 52
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) (5,062) 2 26,749 69 -
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) 6,956 254 103,943 (1,875) (61)
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments 1,894 256 130,692 (1,806) (61)
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,730 $ 152 $ 167,081 $ (3,074) $ (115)
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
(unaudited)
American Century Variable Dreyfus Variable Investment Fund
Portfolios, Inc. Sub-account Sub-account
---------------------------- ---------------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------
American American VIF VIF VIF
Century Century Growth and Money Small Company
VP Balanced VP International Income Market Stock
------------ ----------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 33,476 $ - $ 3,668 $ 5,209 $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (2,278) (830) (4,455) (1,542) (902)
Administrative expense (175) (62) (342) (116) (65)
----------- ------------ ------------ ------------ ------------
Net investment income (loss) 31,023 (892) (1,129) 3,551 (967)
----------- ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 2,169 781 38,638 87,281 10,832
Cost of investments sold 2,316 746 36,625 87,281 11,006
----------- ------------ ------------ ------------ ------------
Net realized gains (losses) (147) 35 2,013 - (174)
----------- ------------ ------------ ------------ ------------
Change in unrealized gains (losses) (28,866) 8,650 8,091 - (4,065)
----------- ------------ ------------ ------------ ------------
Net gains (losses) on investments (29,013) 8,685 10,104 - (4,239)
----------- ------------ ------------ ------------ ------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 2,010 $ 7,793 $ 8,975 $ 3,551 $ (5,206)
=========== ============ ============ ============ ============
</TABLE>
See notes to financial statements.
6
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------------------------------------------
(unaudited)
Dreyfus Socially
Responsible Dreyfus Stock Morgan Stanley Dean Witter
Growth Fund, Inc. Index Fund Variable Investment Series
Sub-account Sub-account Sub-account
--------------- ----------- --------------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------
Dreyfus Socially VIS VIS VIS
Responsible Dreyfus Stock Dividend European Quality
Growth Fund, Inc. Index Fund Growth Growth Income Plus
--------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 4,551 $ 23,858 $ - $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (1,385) (18,738) - - -
Administrative expense (106) (1,419) - - -
--------------- ----------- ----------- ----------- -----------
Net investment income (loss) 3,060 3,701 - - -
--------------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales (2,268) 199,938 - - -
Cost of investments sold 2,291 181,160 - - -
--------------- ----------- ----------- ----------- -----------
Net realized gains (losses) (4,559) 18,778 - - -
--------------- ----------- ----------- ----------- -----------
Change in unrealized gains (losses) 10,260 24,784 - - -
--------------- ----------- ----------- ----------- -----------
Net gains (losses) on investments 5,701 43,562 - - -
--------------- ----------- ----------- ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 8,761 $ 47,263 $ - $ - $ -
=============== =========== =========== =========== ===========
</TABLE>
See notes to financial statements.
7
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
(unaudited)
Morgan Stanley
Dean Witter
Variable Fidelity Variable
Investment Series Fidelity Variable Insurance Insurance Products
Sub-account Products Fund Sub-account Fund II Sub-account
-------------- -------------------------------- -------------------
For the Nine Months Ended September 30, 1999
------------------------------------------------------------------------
VIP VIP
VIS VIP High Equity- VIP II
Utilities Growth Income Income Contrafund
-------------- ---------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ 26,003 $ 33,365 $ 63,618 $ 12,548
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk - (3,954) (3,595) (14,039) (4,497)
Administrative expense - (308) (270) (1,066) (334)
-------------- ---------- ---------- ---------- ----------------
Net investment income (loss) - 21,741 29,500 48,513 7,717
-------------- ---------- ---------- ---------- ----------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales - 22,989 26,073 181,942 52,360
Cost of investments sold - 23,265 40,629 172,412 52,234
-------------- ---------- ---------- ---------- ----------------
Net realized gains (losses) - (276) (14,556) 9,530 126
-------------- ---------- ---------- ---------- ----------------
Change in unrealized gains (losses) - 3,272 (18,335) (35,127) (2,545)
-------------- ---------- ---------- ---------- ----------------
Net gains (losses) on investments - 2,996 (32,891) (25,597) (2,419)
-------------- ---------- ---------- ---------- ----------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ - $ 24,737 $ (3,391) $ 22,916 $ 5,298
============== ========== ========== ========== ================
</TABLE>
See notes to financial statements.
8
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- -------------------------------------------------------------------------------------------------------------------
(unaudited)
Goldman Sachs
Variable Insurance
MFS Variable Insurance Trust Sub-account Trust Sub-account
---------------------------------------------------- ---------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------
MFS Emerging MFS Limited MFS Growth MFS New Growth and
Growth Maturity With Income Discovery Income
----------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ 1,987 $ 189 $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (3,470) (661) (462) (43) (167)
Administrative expense (254) (49) (34) (3) (12)
----------- ----------- ----------- ----------- ---------------
Net investment income (loss) (3,724) 1,277 (307) (46) (179)
----------- ----------- ----------- ----------- ---------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 15,559 (2,100) 15,071 43 8,561
Cost of investments sold 14,529 778 15,360 44 8,492
----------- ----------- ----------- ----------- ---------------
Net realized gains (losses) 1,030 (2,878) (289) (1) 69
----------- ----------- ----------- ----------- ---------------
Change in unrealized gains (losses) 43,854 1,107 (8,305) (957) (2,971)
----------- ----------- ----------- ----------- ---------------
Net gains (losses) on investments 44,884 (1,771) (8,594) (958) (2,902)
----------- ----------- ----------- ----------- ---------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 41,160 $ (494) $ (8,901) $ (1,004) $ (3,081)
=========== =========== =========== =========== ===============
</TABLE>
See notes to financial statements.
9
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
Goldman Sachs Variable Insurance Trust Sub-account
--------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
CORE CORE
CORE Large Cap Small Cap Capital Mid Cap
U.S. Equity Growth Equity Growth Value
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ - $ - $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (1,378) - (1,105) (136) (14)
Administrative expense (93) - (74) (9) (1)
----------- ------------ ------------ ----------- -----------
Net investment income (loss) (1,471) - (1,179) (145) (15)
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 21,296 - 10,921 188 5,133
Cost of investments sold 20,759 - 10,141 160 5,036
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) 537 - 780 28 97
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) (4,657) - 6,191 (128) (168)
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments (4,120) - 6,971 (100) (71)
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ (5,591) $ - $ 5,792 $ (245) $ (86)
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
10
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
Goldman Sachs Variable Morgan Stanley Dean Witter
Insurance Trust Sub-account Universal Funds, Inc. Sub-account
---------------------------- ------------------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
International Global Fixed Equity
Equity Income Income Growth Value
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ - $ 2 $ 59 $ 23
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk - - (50) (498) (1,123)
Administrative expense - - (4) (33) (74)
----------- ------------ ------------ ----------- -----------
Net investment income (loss) - - (52) (472) (1,174)
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales - - 52 14,159 26,570
Cost of investments sold - - 52 13,707 26,242
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) - - - 452 328
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) - - 122 3,930 (19,155)
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments - - 122 4,382 (18,827)
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ - $ - $ 70 $ 3,910 $ (20,001)
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
11
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------
(unaudited)
Morgan Stanley Dean Witter
Universal Funds, Inc. Sub-account
------------------------------------------------------
For the Nine Months Ended September 30, 1999
------------------------------------------------------
Mid Cap U.S. Global International
Value Real Estate Equity Magnum
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 122 $ - $ 11 $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (59) - (29) -
Administrative expense (4) - (2) -
----------- ------------ ------------ -----------
Net investment income (loss) 59 - (20) -
----------- ------------ ------------ -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 10,563 - 2,528 -
Cost of investments sold 10,577 - 2,511 -
----------- ------------ ------------ -----------
Net realized gains (losses) (14) - 17 -
----------- ------------ ------------ -----------
Change in unrealized gains (losses) (244) - (18) -
----------- ------------ ------------ -----------
Net gains (losses) on investments (258) - (1) -
----------- ------------ ------------ -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ (199) $ - $ (21) $ -
=========== ============ ============ ===========
</TABLE>
See notes to financial statements.
12
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------
(unaudited)
Neuberger & Berman Advisers STI Classic
Management Trust Sub-account Variable Trust Sub-account
---------------------------------------- -------------------------
For the Nine Months Ended September 30, 1999
--------------------------------------------------------------------
AMT Capital Value
AMT AMT Mid-Cap Appreciation Income
Guardian Partners Growth Fund Stock Fund
----------- ------------ ------------ ----------- -----------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ 431 $ - $ - $ -
Charges from Glenbrook Life and Annuity Company:
Mortality and expense risk (143) (1,185) (6) - -
Administrative expense (10) (79) (1) - -
----------- ------------ ------------ ----------- -----------
Net investment income (loss) (153) (833) (7) - -
----------- ------------ ------------ ----------- -----------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 451 12,571 6 - -
Cost of investments sold 465 12,684 6 - -
----------- ------------ ------------ ----------- -----------
Net realized gains (losses) (14) (113) - - -
----------- ------------ ------------ ----------- -----------
Change in unrealized gains (losses) (5,082) (14,051) 242 - -
----------- ------------ ------------ ----------- -----------
Net gains (losses) on investments (5,096) (14,164) 242 - -
----------- ------------ ------------ ----------- -----------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ (5,249) $ (14,997) $ 235 $ - $ -
=========== ============ ============ =========== ===========
</TABLE>
See notes to financial statements.
13
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
---------------------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------------------
V.I. V.I. V.I. V.I.
Capital Diversified Government V.I. Growth &
Appreciation Income Securities Growth Income
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 2,889 $ 9,642 $ (2,576) $ 20,239 $ 614
Net realized gains (losses) (7,061) (17,014) (1,223) (19,431) 6,541
Change in unrealized gains (losses) 21,695 (2,089) (352) 46,463 64,909
------------- -------------- -------------- ------------- --------------
Change in net assets resulting from operations 17,523 (9,461) (4,151) 47,271 72,064
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 132,911 85,926 - 271,914 125,772
Benefit payments - - (10,033) - (12,064)
Payments on termination (720) (10,729) - (13,059) (67,439)
Contract maintenance charges (85) (60) (100) (220) (371)
Transfers among the sub-accounts
and with the Fixed Account - net 17,367 (29,433) 341,818 (13,550) 68,122
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions 149,473 45,704 331,685 245,085 114,020
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS 166,996 36,243 327,534 292,356 186,084
NET ASSETS AT BEGINNING OF PERIOD 261,635 188,282 89,448 424,639 940,773
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ 428,631 $ 224,525 $ 416,982 $ 716,995 $ 1,126,857
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
14
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
(unaudited)
AIM Variable Insurance Funds, Inc. Sub-account
---------------------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------------------
V.I. V.I. V.I.
International Global V.I. V.I. High
Equity Utilities Value Balanced Yield
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ $ (164) $ (104) $ 36,389 $ (1,268) $ (54)
Net realized gains (losses) (5,062) 2 26,749 69 -
Change in unrealized gains (losses) 6,956 254 103,943 (1,875) (61)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting from operations 1,730 152 167,081 (3,074) (115)
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 3,682 - 543,466 213,262 15,425
Benefit payments - - (10,108) - -
Payments on termination (3,300) - (43,729) (300) -
Contract maintenance charges (16) (6) (587) (62) (4)
Transfers among the sub-accounts
and with the Fixed Account - net (1,808) 19,595 71,776 11,602 (23)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions (1,442) 19,589 560,818 224,502 15,398
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS 288 19,741 727,899 221,428 15,283
NET ASSETS AT BEGINNING OF PERIOD 78,858 - 1,161,286 4,341 -
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ 79,146 $ 19,741 $ 1,889,185 $ 225,769 $ 15,283
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
15
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
American Century Variable
Portfolios, Inc. Sub-account Dreyfus Variable Investment Fund Sub-account
------------------------------- ----------------------------------------------
For the Nine Months Ended September 30, 1999
---------------------------------------------------------------------------------
American American VIF VIF VIF
Century Century Growth and Money Small Company
VP Balanced VP International Income Market Stock
-------------- ------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 31,023 $ (892) $ (1,129) $ 3,551 $ (967)
Net realized gains (losses) (147) 35 2,013 - (174)
Change in unrealized gains (losses) (28,866) 8,650 8,091 - (4,065)
------------- -------------- -------------- -------------- -------------
Change in net assets resulting from operations 2,010 7,793 8,975 3,551 (5,206)
------------- -------------- -------------- -------------- -------------
FROM CAPITAL TRANSACTIONS
Deposits - - 82,986 47,217 20,822
Benefit payments - - - - (3,013)
Payments on termination - - (17,335) (6,750) -
Contract maintenance charges (35) (9) (108) (18) (7)
Transfers among the sub-accounts
and with the Fixed Account - net 33,044 20,736 3,138 (80,748) 3,010
------------- -------------- -------------- -------------- -------------
Change in net assets resulting
from capital transactions 33,009 20,727 68,681 (40,299) 20,812
------------- -------------- -------------- -------------- -------------
INCREASE (DECREASE) IN NET ASSETS 35,019 28,520 77,656 (36,748) 15,606
NET ASSETS AT BEGINNING OF PERIOD 210,235 65,005 393,567 145,589 74,709
------------- -------------- -------------- -------------- -------------
NET ASSETS AT END OF PERIOD $ 245,254 $ 93,525 $ 471,223 $ 108,841 $ 90,315
============= ============== ============== ============== =============
</TABLE>
See notes to financial statements.
16
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------------------
Dreyfus Socially
Responsible Dreyfus Stock Morgan Stanley Dean Witter
Growth Fund, Inc. Index Fund Variable Investment Series
Sub-account Sub-account Sub-account
------------------- -------------- ------------------------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------------------------
Dreyfus Socially VIS VIS VIS
Responsible Dreyfus Stock Dividend European Quality
Growth Fund, Inc. Index Fund Growth Growth Income Plus
------------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 3,060 $ 3,701 $ - $ - $ -
Net realized gains (losses) (4,559) 18,778 - - -
Change in unrealized gains (losses) 10,260 24,784 - - -
------------------- -------------- ------------- -------------- --------------
Change in net assets resulting
from operations 8,761 47,263 - - -
------------------- -------------- ------------- -------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 44,599 406,908 - - -
Benefit payments - - - - -
Payments on termination - (55,136) - - -
Contract maintenance charges (38) (719) - - -
Transfers among the sub-accounts
and with the Fixed Account - net 36,296 (13,790) - - -
------------------- -------------- ------------- -------------- --------------
Change in net assets resulting
from capital transactions 80,857 337,263 - - -
------------------- -------------- ------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS 89,618 384,526 - - -
NET ASSETS AT BEGINNING OF PERIOD 125,492 1,621,832 - - -
------------------- -------------- ------------- -------------- --------------
NET ASSETS AT END OF PERIOD $ 215,110 $ 2,006,358 $ - $ - $ -
=================== ============== ============= ============== ==============
</TABLE>
See notes to financial statements.
17
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- -----------------------------------------------------------------------------------------------------------------------------
Morgan Stanley
Dean Witter Fidelity Variable
Variable Insurance Products
Investment Series Fidelity Variable Insurance Products Fund II
Sub-account Fund Sub-account Sub-account
----------------- ----------------------------------------------- ---------------
For the Nine Months Ended September 30, 1999
-------------------------------------------------------------------------------------
VIP VIP
VIS VIP High Equity- VIP II
Utilities Growth Income Income Contrafund
----------------- ------------- ------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ - $ 21,741 $ 29,500 $ 48,513 $ 7,717
- (276) (14,556) 9,530 126
Change in unrealized gains (losses) - 3,272 (18,335) (35,127) (2,545)
----------------- ------------- ------------- ------------- ---------------
Change in net assets resulting
from operations - 24,737 (3,391) 22,916 5,298
----------------- ------------- ------------- ------------- ---------------
FROM CAPITAL TRANSACTIONS
Deposits - 246,059 4,000 191,350 261,735
Benefit payments - - (4,021) - -
Payments on termination - (4,464) (7,109) (44,116) (3,930)
Contract maintenance charges - (230) (49) (368) (84)
Transfers among the sub-accounts
and with the Fixed Account - net - 93,686 22,801 (22,334) (311)
----------------- ------------- ------------- ------------- ---------------
Change in net assets resulting
from capital transactions - 335,051 15,622 124,532 257,410
----------------- ------------- ------------- ------------- ---------------
INCREASE (DECREASE) IN NET ASSETS - 359,788 12,231 147,448 262,708
NET ASSETS AT BEGINNING OF PERIOD - 228,522 346,079 1,310,064 305,242
----------------- ------------- ------------- ------------- ---------------
NET ASSETS AT END OF PERIOD $ - $ 588,310 $ 358,310 $ 1,457,512 $ 567,950
================= ============= ============= ============= ===============
</TABLE>
See notes to financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- ---------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs
Variable
Insurance Trust
MFS Variable Insurance Trust Sub-account Sub-account
------------------------------------------------------------------ -------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------------------------
MFS Emerging MFS Limited MFS Growth MFS New Growth and
Growth Maturity With Income Discovery Income
-------------- -------------- ------------- -------------- -------------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (3,724) $ 1,277 $ (307) $ (46) $ (179)
Net realized gains (losses) 1,030 (2,878) (289) (1) 69
Change in unrealized gains (losses) 43,854 1,107 (8,305) (957) (2,971)
-------------- -------------- ------------- -------------- -------------------
Change in net assets resulting
from operations 41,160 (494) (8,901) (1,004) (3,081)
-------------- -------------- ------------- -------------- -------------------
FROM CAPITAL TRANSACTIONS
Deposits 278,660 - 140,519 18,194 26,360
Benefit payments - - - - -
Payments on termination (1,875) - (300) - -
Contract maintenance charges (169) (45) (38) (8) (6)
Transfers among the sub-accounts
and with the Fixed Account - net 68,508 20,428 4,924 10,214 53
-------------- -------------- ------------- -------------- -------------------
Change in net assets resulting
from capital transactions 345,124 20,383 145,105 28,400 26,407
-------------- -------------- ------------- -------------- -------------------
INCREASE (DECREASE) IN NET ASSETS 386,284 19,889 136,204 27,396 23,326
NET ASSETS AT BEGINNING OF PERIOD 165,443 54,358 - - 4,158
-------------- -------------- ------------- -------------- -------------------
NET ASSETS AT END OF PERIOD $ 551,727 $ 74,247 $ 136,204 $ 27,396 $ 27,484
============== ============== ============= ============== ===================
</TABLE>
See notes to financial statements.
19
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Variable Insurance Trust Sub-account
-----------------------------------------------------------------------------------
For the Nine Months Ended September 30, 1999
-----------------------------------------------------------------------------------
CORE CORE
CORE Large Cap Small Cap Capital Mid Cap
U.S. Equity Growth Growth Growth Growth
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (1,471) $ - $ (1,179) $ (145) $ (15)
Net realized gains (losses) 537 - 780 28 97
Change in unrealized gains (losses) (4,657) - 6,191 (128) (168)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from operations (5,591) - 5,792 (245) (86)
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 236,994 - 184,989 13,428 (5,000)
Benefit payments - - - - -
Payments on termination (300) - - - -
Contract maintenance charges (64) - (51) (7) 3
Transfers among the sub-accounts
and with the Fixed Account - net (2,754) - (9,136) 12,861 (77)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions 233,876 - 175,802 26,282 (5,074)
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS 228,285 - 181,594 26,037 (5,160)
NET ASSETS AT BEGINNING OF PERIOD 4,366 - - - 5,160
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ 232,651 $ - $ 181,594 $ 26,037 $ -
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
20
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
- ----------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Variable Morgan Stanley Dean Witter
Insurance Trust Sub-account Universal Funds, Inc. Sub-account
------------------------------- -------------------------------------------------
For the Nine Months Ended September 30, 1999
-----------------------------------------------------------------------------------
International Global Fixed Equity
Equity Income Income Growth Value
------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ - $ - $ (52) $ (472) $ (1,174)
Net realized gains (losses) - - - 452 328
Change in unrealized gains (losses) - - 122 3,930 (19,155)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from operations - - 70 3,910 (20,001)
------------- -------------- -------------- ------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits - - 15,425 83,764 198,511
Benefit payments - - - - -
Payments on termination - - - - (300)
Contract maintenance charges - - (4) (28) (47)
Transfers among the sub-accounts
and with the Fixed Account - net - - (1) 15,859 (12,205)
------------- -------------- -------------- ------------- --------------
Change in net assets resulting
from capital transactions - - 15,420 99,595 185,959
------------- -------------- -------------- ------------- --------------
INCREASE (DECREASE) IN NET ASSETS - - 15,490 103,505 165,958
NET ASSETS AT BEGINNING OF PERIOD - - - 4,438 -
------------- -------------- -------------- ------------- --------------
NET ASSETS AT END OF PERIOD $ - $ - $ 15,490 $ 107,943 $ 165,958
============= ============== ============== ============= ==============
</TABLE>
See notes to financial statements.
21
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter
Universal Funds, Inc. Sub-account
-----------------------------------------------------------------
For the Nine Months Ended September 30, 1999
-----------------------------------------------------------------
Mid Cap U.S. Global International
Value Real Estate Equity Magnum
------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 59 $ - $ (20) $ -
Net realized gains (losses) (14) - 17 -
Change in unrealized gains (losses) (244) - (18) -
------------- -------------- -------------- -------------
Change in net assets resulting from operations (199) - (21) -
------------- -------------- -------------- -------------
FROM CAPITAL TRANSACTIONS
Deposits 2,486 - - -
Benefit payments - - - -
Payments on termination - - - -
Contract maintenance charges (2) - 1 -
Transfers among the sub-accounts
and with the Fixed Account - net 9,231 - (2) -
------------- -------------- -------------- -------------
Change in net assets resulting
from capital transactions 11,715 - (1) -
------------- -------------- -------------- -------------
INCREASE (DECREASE) IN NET ASSETS 11,516 - (22) -
NET ASSETS AT BEGINNING OF PERIOD 4,468 - 2,558 -
------------- -------------- -------------- -------------
NET ASSETS AT END OF PERIOD $ 15,984 $ - $ 2,536 $ -
============= ============== ============== =============
</TABLE>
See notes to financial statements.
22
<PAGE>
<TABLE>
<CAPTION>
GLENBROOK LIFE MULTI-MANAGER VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------
Neuberger & Berman Advisers STI Classic
Management Trust Sub-account Variable Trust Sub-account
------------------------------------------------ --------------------------------
For the Nine Months Ended September 30, 1999
----------------------------------------------------------------------------------
AMT Capital Value
AMT AMT Mid-Cap Appreciation Income
Guardian Partners Growth Fund Stock Fund
------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (153) $ (833) $ (7) $ - $ -
Net realized gains (losses) (14) (113) - - -
Change in unrealized gains (losses) (5,082) (14,051) 242 - -
------------- -------------- -------------- -------------- --------------
Change in net assets resulting
from operations (5,249) (14,997) 235 - -
------------- -------------- -------------- -------------- --------------
FROM CAPITAL TRANSACTIONS
Deposits 40,089 200,554 4,263 - -
Benefit payments - - - - -
Payments on termination (300) - - - -
Contract maintenance charges (10) (49) (1) - -
Transfers among the sub-accounts
and with the Fixed Account - net 142 (11,243) (10) - -
------------- -------------- -------------- -------------- --------------
Change in net assets resulting
from capital transactions 39,921 189,262 4,252 - -
------------- -------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS 34,672 174,265 4,487 - -
NET ASSETS AT BEGINNING OF PERIOD - - - - -
------------- -------------- -------------- -------------- --------------
NET ASSETS AT END OF PERIOD $ 34,672 $ 174,265 $ 4,487 $ - $ -
============= ============== ============== ============== ==============
</TABLE>
See notes to financial statements.
23
<PAGE>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
1. Organization
Glenbrook Life Multi-Manager Variable Account (the "Account"), a unit
investment trust registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, is a Separate Account of
Glenbrook Life and Annuity Company ("Glenbrook Life"). The assets of the
Account are legally segregated from those of Glenbrook Life. Glenbrook Life
is wholly owned by Allstate Life Insurance Company, a wholly owned
subsidiary of Allstate Insurance Company, which is wholly owned by The
Allstate Corporation.
These financial statements and notes as of September 30, 1999 and for the
nine-month period ended September 30, 1999 are unaudited. The financial
statements reflect all adjustments (consisting only of normal recurring
accruals) which are, in the opinion of management, necessary for the fair
presentation of the financial position, results of operations and changes
in net assets for the interim period. These financial statements and notes
should be read in conjunction with the Glenbrook Life Multi-Manager
Variable Account II financial statements and notes for the period ended
December 31, 1998 included in the Registration Statement on Form N-4 for
the Account. The results of operations for the interim periods should not
be considered indicative of results to be expected for the full year.
24
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE
(Units in whole amounts)
Glenbrook Provider
-------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
----------------- -----------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 7,789 13.03
V.I. Diversified Income 13,069 9.81
V.I. Government Securities 712 10.32
V.I. Growth Fund 14,643 14.74
V.I. Growth and Income 21,888 13.90
V.I. International Equity 1,207 12.38
V.I. Global Utilities - -
V.I. Value 32,735 14.52
V.I. Balanced - -
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced 9,678 12.25
American Century VP International 371 12.93
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 14,991 11.95
VIF Money Market 6,353 10.83
VIF Small Company Stock 709 9.75
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 6,935 14.80
Investment in the Dreyfus Stock Index Fund 37,306 13.34
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 7,682 16.21
VIP High Income 6,120 10.49
VIP Equity-Income 42,061 11.48
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 9,593 14.89
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 6,247 16.43
MFS Limited Maturity 1,053 10.77
MFS Growth with Income - -
MFS New Discovery - -
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income - -
CORE U.S. Equity - -
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth - -
Value - -
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian - -
AMT Partners - -
AMT Mid Cap Growth - -
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE
(Units in whole amounts)
Glenbrook Provider with Enhanced
Death Benefit Rider
----------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
------------------ -------------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 13,893 13.01
V.I. Diversified Income 7,618 9.79
V.I. Government Securities 1,584 12.00
V.I. Growth 39,760 10.31
V.I. Growth and Income 16,160 14.71
V.I. International Equity 54,162 13.88
V.I. Global Utilities 4,969 12.36
V.I. Value 67,216 14.50
V.I. Balanced - -
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced 10,367 12.23
American Century VP International 6,879 12.90
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 18,568 11.92
VIF Money Market 3,704 10.81
VIF Small Company Stock 5,756 9.72
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 4,681 14.77
Investment in the Dreyfus Stock Index Fund 87,700 13.32
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 13,202 16.17
VIP High Income 28,126 10.46
VIP Equity-Income 73,471 11.46
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 14,768 14.86
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 12,191 16.40
MFS Limited Maturity 5,859 10.74
MFS Growth with Income - -
MFS New Discovery - -
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income - -
CORE U.S. Equity - -
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth - -
Value - -
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian - -
AMT Partners - -
AMT Mid Cap Growth - -
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE (continued)
(Units in whole amounts)
Enhanced Glenbrook Provider
-------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
----------------- ----------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 693 12.04
V.I. Diversified Income 721 9.91
V.I. Government Securities - -
V.I. Growth 7,558 12.95
V.I. Growth and Income 1,969 12.27
V.I. International Equity - -
V.I. Global Utilities - -
V.I. Value 10,561 12.61
V.I. Balanced - -
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced - -
American Century VP International - -
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 2,681 10.92
VIF Money Market - -
VIF Small Company Stock 200 10.05
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 2,014 12.04
Investment in the Dreyfus Stock Index Fund 9,284 11.33
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 9,846 12.36
VIP High Income - -
VIP Equity-Income 4,707 10.69
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 2,166 12.24
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 915 13.51
MFS Limited Maturity - -
MFS Growth with Income 5,818 10.35
MFS New Discovery 158 12.77
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income 637 9.65
CORE U.S. Equity 244 11.68
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth - -
Value - -
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian - -
AMT Partners - -
AMT Mid Cap Growth 296 12.45
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE (continued)
(Units in whole amounts)
Enhanced Glenbrook Provider
With Enhanced Death Benefit Rider
-------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
---------------- -----------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 672 12.01
V.I. Diversified Income - -
V.I. Government Securities - -
V.I. Growth - -
V.I. Growth and Income - -
V.I. International Equity 243 11.56
V.I. Global Utilities 65 11.27
V.I. Value 3,400 12.58
V.I. Balanced 1,814 10.96
V.I. High Yield 1,423 10.74
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced - -
American Century VP International - -
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income - -
VIF Money Market - -
VIF Small Company Stock - -
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 200 12.02
Investment in the Dreyfus Stock Index Fund 5,009 11.31
Investments in the Morgan Stanley Dean Witter Variable Investment Series:
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 3,381 12.34
VIP High Income -
VIP Equity-Income 3,469 10.67
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 844 12.22
Investments in MFS Variable Insurance Trust:
MFS Emerging Growth 2,281 13.48
MFS Limited Maturity -
MFS Growth with Income 3,227 10.33
MFS New Discovery 1,286 12.75
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income - -
CORE U.S. Equity - -
CORE Large Cap Growth - -
CORE Small Cap Equity - -
Capital Growth - -
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income 1,566 10
Equity Growth 1,954 12
Value 903 9
Mid Cap Value - -
U.S. Real Estate - -
Global Equity - -
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian 1,333 11
AMT Partners - -
AMT Mid Cap Growth - -
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
Glenbrook Life Multi-Manager Variable Account
Notes to Financial Statements
(unaudited)
2. UNITS OUTSTANDING AND ACCUMULATION UNIT VALUE (continued)
(Units in whole amounts)
Enhanced Glenbrook Provider
With Enhanced Death Benefit Rider
and Income Benefit Combination Rider
---------------------------------------
Accumulation
Units Outstanding Unit Value
September 30, 1999 September 30, 1999
----------------- ------------------
<S> <C> <C>
Investments in AIM Variable Insurance Funds, Inc.:
V.I. Capital Appreciation 10,859 11.99
V.I. Diversified Income 1,484 9.87
V.I. Government Securities - -
V.I. Growth 12,852 12.90
V.I. Growth and Income 3,850 12.22
V.I. International Equity - -
V.I. Global Utilities - -
V.I. Value 20,997 12.56
V.I. Balanced 15,569 10.94
V.I. High Yield - -
Investments in the American Century Variable Portfolios Inc.:
American Century VP Balanced - -
American Century VP International - -
Investments in Dreyfus Variable Investment Fund: - -
VIF Growth & Income 3,829 10.87
VIF Money Market - -
VIF Small Company Stock 2,544 10.01
Investment in The Dreyfus Socially Responsible Growth Fund, Inc. 1,399 11.99
Investment in the Dreyfus Stock Index Fund 15,848 11.29
Investments in the Morgan Stanley Dean Witter Variable Investment Series: - -
VIS Dividend Growth - -
VIS European Growth - -
VIS Quality Income Plus - -
VIS Utilities - -
Investment in the Fidelity Variable Insurance Products Fund:
VIP Growth 7,074 12.31
VIP High Income - -
VIP Equity-Income 4,290 10.65
Investment in the Fidelity Variable Insurance Products Fund II:
VIP II Contrafund 13,860 12.20
Investments in MFS Variable Insurance Trust: - -
MFS Emerging Growth 15,323 13.46
MFS Limited Maturity - -
MFS Growth with Income 4,138 10.31
MFS New Discovery 707 12.72
Investments in the Goldman Sachs Variable Insurance Trust:
Growth and Income 2,221 9.61
CORE U.S. Equity 19,750 11.64
CORE Large Cap Growth - -
CORE Small Cap Equity 17,135 10.60
Capital Growth 2,233 11.66
Mid Cap Value - -
International Equity - -
Global Income - -
Investments in Morgan Stanley Dean Witter Universal Funds, Inc.:
Fixed Income - -
Equity Growth 6,766 12.38
Value 16,854 9.35
Mid Cap Value 1,386 11.53
U.S. Real Estate - -
Global Equity 245 10.34
International Magnum - -
Investments in Neuberger & Berman Advisers Management Trust:
AMT Guardian 1,951 10.55
AMT Partners 17,349 10.05
AMT Mid Cap Growth 64 12.40
Investments in STI Classic Variable Trust:
STI Capital Appreciation - -
STI Value Income Stock - -
</TABLE>
29
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF FINANCIAL POSITION
SEPTEMBER 30, DECEMBER 31,
1999 1998
------------ ------------
($ in thousands, except par value data) (UNAUDITED)
ASSETS
Investments
Fixed income securities, at fair value
(amortized cost $94,957 and $87,415) .......... $ 95,569 $ 94,313
Short-term ....................................... 689 4,663
---------- ----------
Total investments .......................... 96,258 98,976
Reinsurance recoverable from
Allstate Life Insurance Company .................. 3,900,740 3,113,278
Other assets ........................................ 3,157 2,590
Separate Accounts ................................... 1,236,227 993,622
---------- ----------
TOTAL ASSETS ............................... $5,236,382 $4,208,466
========== ==========
LIABILITIES
Contractholder funds ................................ $3,900,740 $3,113,278
Current income taxes payable ........................ 1,863 2,181
Deferred income taxes ............................... 285 2,499
Payable to affiliates, net .......................... 4,641 3,583
Separate Accounts ................................... 1,236,227 993,622
---------- ----------
TOTAL LIABILITIES .......................... 5,143,756 4,115,163
---------- ----------
COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 4)
SHAREHOLDER'S EQUITY
Common stock, $500 par value, 4,200 shares
authorized, issued and outstanding ............ 2,100 2,100
Additional capital paid-in .......................... 69,641 69,641
Retained income ..................................... 20,487 17,079
Accumulated other comprehensive income:
Unrealized net capital gains .................... 398 4,483
---------- ----------
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME 398 4,483
---------- ----------
TOTAL SHAREHOLDER'S EQUITY ................. 92,626 93,303
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY . $5,236,382 $4,208,466
========== ==========
See notes to financial statements.
3
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- -----------------
($ in thousands) 1999 1998 1999 1998
-------- ------- ------- -------
(UNAUDITED) (UNAUDITED)
REVENUES
Net investment income ........... $ 1,682 $ 1,563 $ 4,864 $ 4,690
Realized capital losses and gains (69) -- 360 --
------- ------- ------- -------
INCOME BEFORE INCOME TAX EXPENSE 1,613 1,563 5,224 4,690
Income tax expense .............. 555 559 1,816 1,624
------- ------- ------- -------
NET INCOME ...................... $ 1,058 $ 1,004 $ 3,408 $ 3,066
======= ======= ======= =======
See notes to financial statements.
4
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
---------------------
($ in thousands) 1999 1998
--------- --------
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ..................................................... $ 3,408 $ 3,066
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization and other non-cash items ................... (8) --
Realized capital gains and losses ....................... (360) --
Changes in:
Income taxes payable ................................ (331) 1,045
Other operating assets and payable to affiliates, net 288 2,815
-------- --------
Net cash provided by operating activities ....... 2,997 6,926
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed income securities
Proceeds from sales ..................................... 7,116 --
Investment collections .................................. 4,297 5,164
Investment purchases .................................... (18,394) (11,265)
Change in short-term investments, net .......................... 3,984 1,680
-------- --------
Net cash used in investing activities ........... (2,997) (4,421)
-------- --------
NET INCREASE IN CASH ........................................... -- 2,505
CASH AT THE BEGINNING OF PERIOD ................................ -- --
-------- --------
CASH AT END OF PERIOD .......................................... $ -- $ 2,505
======== ========
</TABLE>
See notes to financial statements.
5
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying financial statements include the accounts of Glenbrook
Life and Annuity Company (the "Company"), a wholly owned subsidiary of
Allstate Life Insurance Company ("ALIC"), which is wholly owned by
Allstate Insurance Company ("AIC"), a wholly owned subsidiary of The
Allstate Corporation (the "Corporation"). These financial statements have
been prepared in conformity with generally accepted accounting principles.
The financial statements and notes as of September 30, 1999 and for the
three month and nine month periods ended September 30, 1999 and 1998 are
unaudited. The financial statements reflect all adjustments (consisting
only of normal recurring accruals) which are, in the opinion of
management, necessary for the fair presentation of the financial position,
results of operations and cash flows for the interim periods. These
financial statements and notes should be read in conjunction with the
financial statements and notes thereto included in the Glenbrook Life and
Annuity Company Annual Report on Form 10-K for 1998. The results of
operations for the interim periods should not be considered indicative of
results to be expected for the full year.
Effective January 1, 1999, the Company adopted Statement of Position
("SOP") 97-3, "Accounting by Insurance and Other Enterprises for
Insurance-Related Assessments." The SOP provides guidance concerning when
to recognize a liability for insurance-related assessments and how those
liabilities should be measured. Specifically, insurance-related
assessments should be recognized as liabilities when all of the following
criteria have been met: 1) an assessment has been imposed or it is
probable that an assessment will be imposed, 2) the event obligating an
entity to pay an assessment has occurred and 3) the amount of the
assessment can be reasonably estimated. The adoption of this statement had
an immaterial impact on the Company's results of operations and financial
position.
To conform with the 1999 presentation, certain amounts in the prior years'
financial statements and notes have been reclassified.
2. REINSURANCE
The Company has reinsurance agreements whereby substantially all contract
charges, credited interest, policy benefits and certain expenses are ceded
to ALIC and reflected net of such reinsurance in the statements of
operations. The amounts shown in the Company's statements of operations
relate to the investment of those assets of the Company that are not
transferred under reinsurance agreements. Reinsurance recoverable and the
related contractholder funds are reported separately in the statements of
financial position. The Company continues to have primary liability as the
direct insurer for risks reinsured.
Investment income earned on the assets which support contractholder funds
is not included in the Company's financial statements as those assets are
owned and managed by the assuming company under the terms of reinsurance
agreements. The following amounts were ceded to ALIC under reinsurance
agreements.
6
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------------------- -------------------------------
($ in thousands) 1999 1998 1999 1998
--------------- ------------- -------------- -------------
<S> <C> <C> <C> <C>
Contract charges $ 6,924 $ 5,010 $ 19,540 $ 14,198
Credited interest, policy
benefits, and certain
expenses 59,740 62,025 177,233 156,627
</TABLE>
3. COMPREHENSIVE INCOME
The components of other comprehensive income on a pretax and after-tax
basis are as follows:
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------------------------------
($ in thousands) 1999 1998
-------------------------------------- ------------------------------------
After- After-
Pretax Tax Tax Pretax Tax tax
------ --- --- ------ --- ---
<S> <C> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
Unrealized holding
(losses) gains arising
during the period $ (951) $ 334 $ (617) $3,115 $ (1,090) $2,025
Less: reclassification
adjustment for realized
net capital losses
included in net income (69) 24 (45) - - -
------ ----- ------ ------ ------- -----
Unrealized net capital
(losses) gains (882) 310 (572) 3,115 (1,090) 2,025
------ ----- ------ ------ ------- -----
Other comprehensive
(loss) income $ (882) $ 310 (572) $3,115 $(1,090) 2,025
====== ====== ====== =======
Net income 1,058 1,004
------ ------
Comprehensive
income $ 486 $3,029
====== ======
</TABLE>
7
<PAGE>
GLENBROOK LIFE AND ANNUITY COMPANY
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
3. COMPREHENSIVE INCOME (CONTINUED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------------------------------
($ in thousands) 1999 1998
-------------------------------------- ------------------------------------
After- After-
Pretax Tax Tax Pretax Tax tax
------ --- --- ------ --- ---
<S> <C> <C> <C> <C> <C> <C>
Unrealized capital gains and losses:
Unrealized holding
(losses) gains arising
during the period $(5,926) $2,075 $(3,851) $3,710 $ (1,299) $2,411
Less: reclassification
adjustment for realized
net capital gains
included in net income 360 (126) 234 - - -
------ ------ ------- ------ ------- -----
Unrealized net capital
(losses) gains (6,286) 2,201 (4,085) 3,710 (1,299) 2,411
------ ------ ------- ------ ------- -----
Other comprehensive
(loss) income $(6,286) $2,201 (4,085) $3,710 $(1,299) 2,411
======= ====== ====== =======
Net income 3,408 3,066
------- ------
Comprehensive
(loss) income $ (677) $5,477
======= ======
</TABLE>
4. COMMITMENTS AND CONTINGENT LIABILITIES
REGULATION AND LEGAL PROCEEDINGS
The Company is subject to the effects of a changing social, economic and
regulatory environment. Public and regulatory initiatives have varied and
have included employee benefit regulations, removal of barriers preventing
banks from engaging in the securities and insurance business, tax law
changes affecting the taxation of insurance companies, the tax treatment
of insurance products and its impact on the relative desirability of
various personal investment vehicles, and proposed legislation to prohibit
the use of gender in determining insurance rates and benefits. The
ultimate changes and eventual effects, if any, of these initiatives are
uncertain.
Various other legal and regulatory actions are currently pending that
involve the Company and specific aspects of its conduct of business. In
the opinion of management, the ultimate liability, if any, in one or more
of these actions in excess of amounts currently reserved is not expected
to have a material effect on the results of operations, liquidity or
financial position of the Company.
8
