<PAGE>
[Picture of Byron D. Oliver]
Byron D. Oliver
President
[CIGNA LOGO]
CIGNA RETIREMENT &
INVESTMENT SERVICES
P.O. Box 2975
Routing 17C
Hartford, CT 06104
Dear CIGNA Client:
It is a pleasure to provide you with this Annual Report on the performance of
your Corporate Variable Universal Life Insurance product for the period ending
December 31, 1999.
The report includes financial data for each of the portfolio options
available under your product. In addition, we have included the text of the
Economic Review and Outlook prepared by Robert DeLucia of CIGNA Investment
Management. This overview deals with significant national and international
trends affecting key markets. I hope you will take a few minutes to read it
carefully.
Your Corporate Variable Universal Life Product is designed specifically to
meet your needs in the corporate marketplace. The CIGNA Corporate Insurance
Team is dedicated to meeting your executive benefit funding needs with the
sophisticated financial solutions that are essential to attracting and
retaining executive talent...the talent needed to grow a business in this
increasingly competitive market.
We're extremely proud to have you as a client and look forward to an
enduring partnership built on understanding, trust, and our ability to provide
financial solutions of recognized value to your organization.
If you have any questions or comments about this report, please feel free to
call Ilia Castellano, Director of Administration for CIGNA's Corporate
Insurance Department at 860.534.7175. Ilia is available Monday through
Friday, 8 am to 5 pm.
Sincerely,
/s/ Byron Oliver
Byron D. Oliver
President, CIGNA Retirement & Investment Services
CIGNA Client
<PAGE>
ECONOMIC REVIEW
FOURTH QUARTER 1999
SUMMARY
- - We expect 2000 to be a year of strong, synchronized global economic growth.
- - Domestic inflation has bottomed for the cycle and is currently on a
moderate cyclical uptrend.
- - It will be necessary for the Federal Reserve (Fed) to raise interest rates
more aggressively to achieve its targeted economic slowdown.
- - Financial markets face a turbulent six-to nine-month-period as monetary
conditions deteriorate.
- - High-grade bonds may outperform domestic equities during the upcoming
year; the technology sector is vulnerable to a major shakeout.
ECONOMIC REVIEW
A DECADE OF PROSPERITY
U.S. economic growth during 1999 registered an unprecedented fourth consecutive
year of approximately 4% real GDP (gross domestic product) growth. The current
economic expansion, which is entering its ninth year, is the longest business
cycle expansion in American history. The 1990s will be remembered as a period
of healthy economic growth, low inflation, rising corporate profitability,
strong job creation, and rising productivity, as well as an unprecedented boom
in equity markets, particularly technology stocks.
Since the beginning of the economic expansion in 1991, U.S. GDP has grown at a
highly stable 3.5% compound annual rate; inflation has risen at a 2.5% annual
rate; and S&P 500 profits have expanded at a 10% annual rate. For the decade
just ended, the total return on the S&P 500 was 18.2%, slightly ahead of the
17.5% total return of the 1980s, cumulating an unprecedented two-decade stock
market boom.
STRONG MOMENTUM CARRIED INTO 1999
Since 1996, however, the rate of U.S. economic growth has accelerated
significantly, and averaged 4% during the latest four-year period. GDP growth
during 1999 is also estimated at close to 4%, despite a variety of apparent
constraints on economic growth, including three official interest rate hikes by
the Fed, a sharp rise in bond yields and home mortgage rates, an approximate
doubling in the price of crude oil, and a dramatic increase in volatility of
the financial markets. These negative forces were more than offset by a
powerful surge in consumer expenditures and a boom in business capital
investment, particularly computers and telecommunications equipment.
ECONOMIC IMBALANCES CONTINUE TO WORSEN
We are increasingly concerned that the current rate of growth of domestic
demand is excessive and unsustainable. As such, it is contributing to a
number of disturbing economic imbalances:
DEBT EXPLOSION - Private sector debt (both businesses and households) have
risen to an all-time high relative to nominal GDP.
LABOR MARKET TIGHTNESS - The current demand for labor far exceeds the pool
of available workers, giving rise to potentially inflationary implications.
RECORD U.S. CURRENT ACCOUNT DEFICIT - The U.S. has become increasingly
dependent upon the rest of the world to finance its current pace of
spending, a trend with potentially negative implications for the
U.S. dollar.
EQUITY MARKET EXCESSES - Equity markets continue to exhibit progressively
broader signs of speculative excess with potentially damaging economic
repercussions.
These imbalances reflect an "overheating economy" in which consumer and
business expenditures have consistently outpaced domestic production and income
generation. At a minimum, these imbalances could have a destabilizing influence
on the economy and financial markets. In the worst case, they could contribute
directly to a rise in the inflation rate, resulting in a severe weakening of
economic activity. The Fed is well aware of these risks, and consequently, will
continue to tighten monetary policy gradually during the year until the rate of
U.S. economic growth has slowed to its sustainable long-term non-inflationary
"speed limit" of 3%.
FINANCIAL MARKET REVIEW
For the sixth consecutive year, equities outperformed bonds by a wide margin
in U.S. financial markets. On a global basis, stocks also generally
outperformed bonds, with foreign markets outperforming domestic stocks.
Equity markets benefited from strong economic growth, rising corporate
profits, and favorable financial liquidity trends, as reflected in the rapid
growth of money and credit. A gradual shift in global central bank monetary
policies toward more restrictive credit during the year did little to deter
the favorable psychology for common stock investing.
POOR YEAR FOR GLOBAL FIXED INCOME MARKETS Conversely, global fixed income
markets reacted adversely to the continued strong momentum in the domestic
economy and revival in economic growth worldwide. The continued robust growth
in private credit demands and the rise in private debt ratios also put upward
pressure on global interest rates and downward pressure on bond prices. The
surge in world oil prices and industrial commodity prices led to an uptick in
consumer inflation, as did increases in interest rates announced by the Fed,
the Bank of England, and the European Central Bank. The Lehman Brothers
Aggregate Bond Index fell by nearly 1% for the full year, while the 30-year
U.S. Treasury Bond had a negative total return of nearly 15%, its worst year
ever. Globally, the sharp increase in world interest rates combined with the
steep decline in the euro, caused global bond markets to decline by 6%, as
measured by the J. P. Morgan Non-U.S. Government Bond Index.
EQUITY MARKET DIVERGENCES
While 1999 appeared to be another excellent year for equity investors, there
were extreme winners and losers. The total return on the S&P 500 was 21%, an
unprecedented fifth consecutive year of returns exceeding 20%. Within the U.S.
market, growth managers continued to outperformed value-style managers by a
wide margin. The big story in the equity market during 1999 was the high
technology sector, with high tech-dominated NASDAQ Index registering its single
best year ever with a gain of 85%.
TECHNOLOGY SECTOR VS. THE BROAD MARKET
In reality, the spectacular headline gains in high tech stocks have effectively
masked profound weakness in the broadly
<PAGE>
based domestic equity market. Measurements of market breadth, including
advance/decline statistics and the number of new highs vs. new lows, were
more symptomatic of a "bear market." The median stock within the S&P 500
Index actually declined for the year, while fully 60% of issues on the New
York Stock Exchange suffered a decline for the full year. The technology
sector, which accounts for 30% of the weighting in the S & P 500, was
responsible for 90% of the full-year Index gain. Excluding the technology
sector, the remaining 70% of the Index gained less than 8%.
The equity market of the past year has been one of the most highly
concentrated and speculative markets in decades, analogous to energy sector
dominance between 1979 and 1980, and the "nifty fifty" consumer growth stock
era of 1972 and 1973.
ECONOMIC OUTLOOK
The major theme in our economic outlook for the year ahead is synchronized
global economic growth.
We expect global GDP in calendar year 2000 to register its fastest rate of
growth since the 1996-97 period, following two years of well below-trend growth.
HIGHER INTEREST RATES NECESSARY TO RESTRAIN DOMESTIC DEMAND
The U.S. economy shows virtually no signs of slowdown, with the possible
exception of housing, despite the steep rise in interest rates and the
increasing monetary restraint by the Federal Reserve. For full-year 2000, we
expect GDP growth to slow only modestly from the nearly 4% growth achieved in
1999 and the 4% average annual growth of the 1996-99 period. It is our view that
interest rates have not risen to levels sufficient to choke off the strong
momentum in domestic demand from households and businesses. Our basic conclusion
is that a variety of existing powerful economic forces will continue to
overwhelm the restraining effects of high interest rates until they rise to
higher levels and remain at those levels for an extended period.
Within the household sector, these forces include a strong labor market,
continued ample availability of consumer credit, and the powerful influence of
the "wealth effect", resulting from large equity market gains.
STRONG RECOVERY IN MANUFACTURING ACTIVITY
Similarly, within the business sector, it is our view that the current level of
interest rates is not sufficient to obstruct the current strong momentum in
capital and inventory investment, and the production of exported goods. Capital
expenditures should continue to benefit from the boom in technology capital
goods and, in general, the high rates of return on new investment, relative to
the cost of capital. In addition, basic manufacturing will also benefit from
inventory rebuilding and a recovery in demand for U.S. exports, as a result of
the recovery in global economies and anticipated weakness in the value of the
U.S. dollar.
In short, we believe that until interest rates rise sufficiently to cause a
retrenchment in consumer spending as well as business hiring and investment,
domestic economic growth will continue at an above-trend pace.
SOLID RECOVERY UNDERWAY IN FOREIGN ECONOMIES
Unlike the past two years when the U.S. was virtually the world's sole
locomotive economy, all regions of the globe are expected to experience solid
economic growth during 2000, with Japan being the biggest question mark.
Following a 2% growth rate in 1999, the European Union continues to gather
momentum and is expected to achieve growth of at least 3%. Our confidence in
the European economy is based upon a stimulative monetary policy already in
place, an upturn in both consumer and business confidence, and a positive
swing in both inventories and foreign trade.
Similarly the economic and financial fundamentals within the Pacific-rim
countries continue to improve, (particularly Korea and Singapore), and overall
economic growth for that region is expected to be in the 5% to 6% range
during the next year.
The recovery of the Latin American region has lagged Asia, but appears to be
taking hold with economic growth of 3% expected during 2000.
The outlook for Japan, the world's second largest economy, is the most
uncertain. While it appears that the Japanese economy has stabilized and only
moderate growth is likely over the next year, deflationary forces continue to
put downward pressure on domestic private demand. Overall, we expect growth in
world GDP to average 3.75% during 2000, up from 3% in 1999 and 2% in 1998, and
about in line with the trend growth rate of the past three decades.
FURTHER FED TIGHTENING TO COUNTER U.S. INFLATION RISK
World inflation remains under excellent control, and is not likely to be a
problem during the next year, despite continued strength in energy and
industrial commodity prices. European inflation should remain below the 2%
level and Japanese inflation close to zero. The country at greatest risk to
rising inflationary pressures among the major industrial economies is the U.S.
for several reasons -- including labor market tightness, rising import and
industrial commodity prices, and a weakening U.S. dollar.
Nevertheless, the U.S. does not appear to face a major inflationary problem,
but rather a mild acceleration over the next 12 months. Specifically, we expect
consumer inflation to rise to 3% during the year, up from the present 2% rate.
However, the longer the Fed permits the domestic economy to expand at a rate in
excess of its long-term potential, the greater the inflation risk.
Because of this threat of higher inflation, we believe that the Fed will
continue its relentless pursuit to
<PAGE>
slow the pace of domestic economic growth by continuing to raise interest rates
to a level necessary to achieve its goal of price stability.
There are two broad risks to our forecast. The first is that a steep and
prolonged stock market decline could result in a sharper than expected economic
slowdown, due to the unprecedented reliance of household spending on equity
market values. The second is that the current economic momentum could persist
for a longer duration, contributing to a worsening of current economic
imbalances, which also might culminate in a more severe economic slowdown.
FINANCIAL MARKET OUTLOOK
We believe that the financial markets face a period of considerable turbulence,
instability and risk over the next six to nine months. Growing business
cycle-related strains and imbalances and tightening monetary conditions around
the world suggest that U.S. stocks, bond, and the U.S. dollar are at
considerable risk. Equities appear to be at far greater risk than bonds because
of current investor psychology and the relative valuations of the two broad
asset classes.
The most important factor in the capital market outlook is the likelihood of
continued deterioration in financial liquidity conditions during the next six
to nine months, which is a function of rapidly expanding global economic
growth and tightening monetary conditions by the central banks of the world.
The bottom line is that global interest rates will be under upward pressure
over the near term.
U.S. HIGH-GRADE BOND SECTORS ATTRACTIVELY VALUED
Although we anticipate a further moderate rise in interest rates during the
next six months and a decline in bond prices, the domestic bond market has
effectively discounted a substantial portion of the anticipated rate
increase. Assuming a long-term trendline for U.S. inflation of 2%,
intermediate and long-term Government bonds with yields in excess of 6.5%
would appear to offer attractive long-term values. Even more compelling
long-term values are available in the Government Agency, investment-grade
corporate, and mortgage-backed bond markets, which offer market yields in the
7.5% to 8% range. However, a sustained bond market rally is not likely to
occur until later in the year, when investors perceive that the Fed has
tightened monetary and credit conditions sufficiently to achieve its targeted
economic slowdown.
CORPORATE PROFITS WILL SLOW DURING 2000
Conversely, U.S. equity markets are vulnerable to a more severe correction, as
a result of current investor psychology, valuation, and fundamental factors
relating to corporate profits and Fed policy. The 22% year-over-year growth in
S&P 500 profits during the third quarter will likely mark the peak growth rate
for this phase of the cycle.
We expect profits to come under increasing pressure as the new year unfolds,
initially due to a squeeze in profit margins, and later in the year, because of
a slowdown in revenue growth. In today's highly competitive global economy,
companies lack the "pricing power" to offset the relentless increase in
operating expenses, in the form of wages, raw materials, energy, interest
expense, and rapidly escalating health care expenses. Consequently, we expect
only a modest increase in corporate profits during 2000, which would fall short
of the current very aggressive Wall Street estimates.
EQUITY MARKET VALUATIONS REMAIN STRETCHED
The other two obstacles in the path of higher equity prices are interest rates
and valuation. Thus far, investors seem undaunted by the Fed's three interest
rate hikes and the steady rise in bond yields.
It is our view that the equity market cannot ignore these financial forces
indefinitely, and is, therefore, vulnerable to a setback at some point.
We also continue to be concerned with the elevated level of market valuation.
During the equity market boom of the past five years, stock prices have
significantly outpaced corporate earnings. Since the end of 1994, the value of
the S&P 500 Index has increased by 220%, while earnings per share have grown by
only 75% over the same period, pushing current price-to-earnings multiples to
all-time highs.
For all these reasons, we expect domestic equities to underperform U.S.
high-grade bonds for the first full calendar year since 1993. The high-flying
technology sector also appears highly vulnerable to a reversal in investor
psychology. On the plus side, we expect cyclical stocks and value-style
managers to outperform growth managers, industrial cyclicals to outperform
growth stocks, and small capitalization stocks to outperform the large
capitalization sector.
We also expect foreign equity markets, including Japan, Europe, and the
emerging markets of Asia and Latin America, to outperform the U.S. equity
market. Moreover, following a severe slump during the past 12 months, the euro
appears to be undervalued at present, and is likely to appreciate steadily
versus the dollar over the next several years, thereby enhancing the total
return on European equities for U.S.-based investors.
CONCLUSION
BUSINESS CYCLE FORCES DOMINATE NEAR-TERM MARKET OUTLOOK
Longer-term economic prospects appear favorable as a result of the revolution
in computer and telecommunications technology and continued sound monetary and
fiscal policies. However, on a short-term basis, financial markets face a major
business cycle-related challenge. An overheating of the domestic economy,
combined with rapid economic recovery overseas, will result in continued credit
restraint by the Fed and tighter liquidity and monetary conditions on a global
basis. At greatest risk within global financial markets are those sectors of
previous speculative excess, namely large capitalization U.S. equities, and, in
particular, the high technology and Internet sectors of the equity market.
ROBERT F. DELUCIA
Managing Director, CIGNA Investment Management
December 31, 1999
[GRAPHIC OMITTED][GRAPHIC OMITTED]
<PAGE>
[PricewaterhouseCoopers Logo]
PRICEWATERHOUSECOOPERS LLP
100 Pearl Street
Hartford CT 06103-4508
Telephone (860) 241 7000
Facsimile (860) 241 7590
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors of Connecticut General
Life Insurance Company and Participants of the
CG Corporate Insurance Variable Life Separate Account 02
In our opinion, the accompanying statement of assets and liabilities, and the
related statements of operations and of changes in net assets present fairly
in all material respects, the financial position of each of the sub accounts,
Alger American Fund - Alger American Growth Portfolio, Alger American MidCap
Growth Portfolio, Alger American Small Capitalization Portfolio, Bankers
Trust Insurance Funds Trust - Bankers Trust EAFE Equity Index Fund, Bankers
Trust Small Capitalization Index Fund, CIGNA Variable Products Group-CIGNA
Variable Products Money Market Fund, CIGNA Variable Products S&P 500 Index
Fund, CIGNA Variable Products Investment Grade Bond Fund, Fidelity Variable
Insurance Products Fund - Equity-Income Portfolio, High Income Portfolio,
Fidelity Variable Insurance Products Fund II - Investment Grade Bond
Portfolio, Janus Aspen Series - Janus Aspen Series Worldwide Growth
Portfolio, MFS Variable Insurance Trust - MFS Emerging Growth Series, MSF
Total Return Series, OCC Accumulation Trust - OCC Equity Portfolio, OCC
Managed Portfolio, OCC Small Cap Portfolio, Templeton Variable Products
Series Fund - Templeton International Fund - Class I (constituting the CG
Corporate Insurance Variable Life Separate Account 02, hereafter referred to
as "the Account") at December 31, 1999, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in
the period then ended, in conformity with accounting principles generally
accepted in the United States. These financial statements are the
responsibility of the Account's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted
our audits of these financial statements in accordance with auditing
standards generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1999 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
February 21, 2000
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
Alger American Fund Sub-Accounts
--------------------------------------------
MidCap Small
Growth Growth Capitalization
-------------- ----------- ---------------
<S> <C> <C> <C>
ASSETS:
Investment in variable insurance
funds at fair value $ 2,025,620 $ 585,106 $ 1,396,727
Receivable from Connecticut
General Life Insurance Company - - -
-------------- ----------- ---------------
Total assets 2,025,620 585,106 1,396,727
-------------- ----------- ---------------
LIABILITIES:
Payable to Connecticut General
Life insurance Company 25 27 20
-------------- ----------- ---------------
Total liabilities 25 27 20
-------------- ----------- ---------------
Net assets $ 2,025,595 $ 585,079 $ 1,396,707
============== =========== ===============
Accumulation units outstanding - Contracts sold before May 1, 1998 (RVUL 01) 75,031 29,543 28,896
Net asset value per accumulation unit $ 22.754 $ 18.982 $ 20.399
Accumulation units outstanding - Contracts sold after April 30, 1998 (RVUL 02) 24,013 1,821 53,443
Net asset value per accumulation unit $ 13.257 $ 13.341 $ 15.105
============== =========== ===============
Accumulation net assets $ 2,025,595 $ 585,079 $ 1,396,707
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999 Bankers Trust
Insurance Funds Trust -
Sub-Accounts
------------------------------------------
EAFE-Registered Small
Trademark- Equity Capitalization
-------------------- --------------------
<S> <C> <C>
ASSETS:
Investment in variable insurance
funds at fair value $ 13,089 $ 1,308
Receivable from Connecticut
General Life Insurance Company - -
------------------------------------------
Total assets 13,089 1,308
------------------------------------------
LIABILITIES:
Payable to Connecticut General
Life insurance Company 64 9
------------------------------------------
Total liabilities 64 9
------------------------------------------
Net assets $ 13,025 $ 1,299
==========================================
Accumulation units outstanding - Contracts sold before May 1, 1998 (RVUL 01) 84 18
Net asset value per accumulation unit $ 12.881 $ 12.614
Accumulation units outstanding - Contracts sold after April 30, 1998 (RVUL 02) 1,082 91
Net asset value per accumulation unit $ 11.038 $ 11.775
==========================================
Accumulation net assets $ 13,025 $ 1,299
==========================================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999 CIGNA Variable
Products Group
Sub-Accounts
-----------------------------------------------
Investment
Money Market S&P 500 Grade Bond
------------ --------------- ----------------
<S> <C> <C> <C>
ASSETS:
Investment in variable insurance
funds at fair value $ 667,192 $ 39,258,101 $ 1,624,887
Receivable from Connecticut
General Life Insurance Company - - 20
------------ ---------------------------------
Total assets 667,192 39,258,101 1,624,907
------------ ---------------------------------
LIABILITIES:
Payable to Connecticut General
Life insurance Company 192 576 -
------------ ---------------------------------
Total liabilities 192 576 -
------------ ---------------------------------
Net assets $ 667,000 $ 39,257,525 $ 1,624,907
============ =================================
Accumulation units outstanding - Contracts
sold before May 1, 1998 (RVUL 01) 27,832 1,819,480 104,418
Net asset value per accumulation unit $ 11.278 $ 18.379 $ 9.852
Accumulation units outstanding - Contracts
sold after April 30, 1998 (RVUL 02) 33,209 434,971 59,636
Net asset value per accumulation unit $ 10.633 $ 13.374 $ 9.997
============ =================================
Accumulation net assets $ 667,000 $ 39,257,525 $ 1,624,907
============ =================================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES Fidelity Variable
DECEMBER 31, 1999 Fidelity Variable Insurance Insurance
Products Fund Products Fund ll
Sub-Accounts Sub-Account
----------------------------------------------------------------
--
Equity- High Investment
Income Income Grade Bond
-------------------- -------------------- --------------------
<S> <C> <C> <C>
ASSETS:
Investment in variable insurance
funds at fair value $ 1,380,023 $ 831,105 $ 4,164,192
Receivable from Connecticut
General Life Insurance Company - 132 -
-------------------- -------------------- --------------------
Total assets 1,380,023 831,237 4,164,192
-------------------- -------------------- --------------------
LIABILITIES:
Payable to Connecticut General
Life insurance Company 10 - 201
-------------------- -------------------- --------------------
Total liabilities 10 - 201
-------------------- -------------------- --------------------
Net assets $ 1,380,013 $ 831,237 $ 4,163,991
==================== ==================== ====================
Accumulation units outstanding - Contracts
sold before May 1, 1998 (RVUL 01) 96,947 68,582 326,250
Net asset value per accumulation unit $ 13.838 $ 11.711 $ 11.462
Accumulation units outstanding - Contracts
sold after April 30, 1998 (RVUL 02) 3,571 2,665 41,287
Net asset value per accumulation unit $ 10.770 $ 10.534 $ 10.282
==================== ==================== ====================
Accumulation net assets $ 1,380,013 $ 831,237 $ 4,163,991
==================== ==================== ====================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
Janus Aspen Series MFS Variable Insurance Trust -
Sub-Accounts Sub-Accounts
----------------------------------------------------------------
Emerging Total
Worldwide Growth Return
-------------------- -------------------- --------------------
<S> <C> <C> <C>
ASSETS:
Investment in variable insurance
funds at fair value $ 4,791,096 $ 2,438,581 $ 194,609
Receivable from Connecticut
General Life Insurance Company - 39 -
-------------------- -------------------- --------------------
Total assets 4,791,096 2,438,620 194,609
-------------------- -------------------- --------------------
LIABILITIES:
Payable to Connecticut General
Life insurance Company 52 - 14
-------------------- -------------------- --------------------
Total liabilities 52 - 14
-------------------- -------------------- --------------------
Net assets $ 4,791,044 $ 2,438,620 $ 194,595
==================== ==================== ====================
Accumulation units outstanding - Contracts
sold before May 1, 1998 (RVUL 01) 189,626 80,602 8,463
Net asset value per accumulation unit $ 23.684 $ 27.147 $ 13.062
Accumulation units outstanding - Contracts
sold after April 30, 1998 (RVUL 02) 18,869 14,616 8,547
Net asset value per accumulation unit $ 15.896 $ 17.140 $ 9.834
==================== ==================== ====================
Accumulation net assets $ 4,791,044 $ 2,438,620 $ 194,595
==================== ==================== ====================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
OCC Accumulation Trust Sub-Accounts
---------------------------------------------------------------
Small
Equity Managed Capitalization
------------------- ------------------- -------------------
<S> <C> <C> <C>
ASSETS:
Investment in variable insurance
funds at fair value $ 258,528 $ 814,366 $ 1,061,240
Receivable from Connecticut
General Life Insurance Company - - -
------------------- ------------------- -------------------
Total assets 258,528 814,366 1,061,240
------------------- ------------------- -------------------
LIABILITIES:
Payable to Connecticut General
Life insurance Company 16 24 6
------------------- ------------------- -------------------
Total liabilities 16 24 6
------------------- ------------------- -------------------
Net assets $ 258,512 $ 814,342 $ 1,061,234
=================== =================== ===================
Accumulation units outstanding - Contracts
sold before May 1, 1998 (RVUL 01) 19,304 62,228 100,697
Net asset value per accumulation unit $ 13.364 $ 12.949 $ 10.523
Accumulation units outstanding - Contracts
sold after April 30, 1998 (RVUL 02) 53 794 159
Net asset value per accumulation unit $ 10.057 $ 10.771 $ 10.057
=================== =================== ===================
Accumulation net assets $ 258,512 $ 814,342 $ 1,061,234
=================== =================== ===================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES Templeton
DECEMBER 31, 1999 Variable Products
Series Fund -
Class 1
-------------------
International
-------------------
<S> <C>
ASSETS:
Investment in variable insurance
funds at fair value $ 2,007,898
Receivable from Connecticut
General Life Insurance Company 10
-------------------
Total assets 2,007,908
-------------------
LIABILITIES:
Payable to Connecticut General
Life insurance Company -
-------------------
Total liabilities -
-------------------
Net assets $ 2,007,908
===================
Accumulation units outstanding - Contracts
sold before May 1, 1998 (RVUL 01) 116,947
Net asset value per accumulation unit $ 14.490
Accumulation units outstanding - Contracts
sold after April 30, 1998 (RVUL 02) 26,566
Net asset value per accumulation unit $ 11.795
===================
Accumulation net assets $ 2,007,908
===================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Alger American Fund Sub-Accounts
-------------------------------------------------------------
MidCap Small
Growth Growth Capitalization
------------------- -------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 1,313 $ - $ -
EXPENSES:
Mortality and expense risk and
administrative charges 10,926 3,525 7,497
------------------- -------------------- -------------------
Net investment gain (loss) (9,613) (3,525) (7,497)
------------------- -------------------- -------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distributions from portfolio sponsors 89,671 49,152 84,143
Net realized gain (loss) on share transactions 23,106 4,468 9,266
------------------- -------------------- -------------------
Net realized gain (loss) 112,777 53,620 93,409
Net unrealized gain (loss) 333,646 80,099 310,481
------------------- -------------------- -------------------
Net realized and unrealized
gain (loss) on investments 446,423 133,719 403,890
------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 436,810 $ 130,194 $ 396,393
=================== ==================== ===================
</TABLE>
<TABLE>
<CAPTION>
Bankers Trust
Insurance Funds Trust -
Sub-Accounts
------------------------------------------
EAFE-Registered Small
Trademark- Equity Capitalization
-------------------- --------------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends $ 208 $ 13
EXPENSES:
Mortality and expense risk and
administrative charges 3 10
-------------------- --------------------
Net investment gain (loss) 205 3
-------------------- --------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distributions from portfolio sponsors 389 37
Net realized gain (loss) on share transactions 13 4
-------------------- --------------------
Net realized gain (loss) 402 41
Net unrealized gain (loss) 762 169
-------------------- --------------------
Net realized and unrealized
gain (loss) on investments 1,164 210
-------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,369 $ 213
==================== ====================
</TABLE>
<TABLE>
<CAPTION>
CIGNA Variable
Products Group
Sub-Accounts
---------------------------------------------------------------
Investment
Money Market S&P 500 Grade Bond
-------------------- -------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 26,951 $ 826,704 $ 53,012
EXPENSES:
Mortality and expense risk and
administrative charges 4,959 298,463 5,749
-------------------- -------------------- -------------------
Net investment gain (loss) 21,992 528,241 47,263
-------------------- -------------------- -------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distributions from portfolio sponsors - 724,386 -
Net realized gain (loss) on share transactions - 192,458 71
-------------------- -------------------- -------------------
Net realized gain (loss) - 916,844 71
Net unrealized gain (loss) - 4,672,428 (56,980)
-------------------- -------------------- -------------------
Net realized and unrealized
gain (loss) on investments - 5,589,272 (56,909)
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 21,992 $ 6,117,513 $ (9,646)
==================== ==================== ===================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Fidelity Variable
Fidelity Variable Insurance Insurance
Products Fund Products Fund ll
Sub-Accounts Sub-Account
--------------------------------------------------------------
Equity- High Investment
Income Income Grade Bond
------------------- -------------------- --------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 13,677 $ 99,356 $ 232,911
EXPENSES:
Mortality and expense risk and
administrative charges 12,179 8,726 47,871
------------------- -------------------- --------------------
Net investment gain (loss) 1,498 90,630 185,040
------------------- -------------------- --------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distributions from portfolio sponsors 30,234 3,714 73,070
Net realized gain (loss) on share transactions 2,905 3,929 4,993
------------------- -------------------- --------------------
Net realized gain (loss) 33,139 7,643 78,063
Net unrealized gain (loss) 23,754 (17,643) (362,524)
------------------- -------------------- --------------------
Net realized and unrealized
gain (loss) on investments 56,893 (10,000) (284,461)
------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 58,391 $ 80,630 $ (99,421)
=================== ==================== ====================
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Series MFS Variable Insurance Trust -
Sub-Accounts Sub-Accounts
--------------------------------------------------------------
Emerging Total
Worldwide Growth Return
-------------------- -------------------- -------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 5,948 $ - $ 1,058
EXPENSES:
Mortality and expense risk and
administrative charges 30,997 12,627 945
-------------------- -------------------- -------------------
Net investment gain (loss) (25,049) (12,627) 113
-------------------- -------------------- -------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distributions from portfolio sponsors - - 1,961
Net realized gain (loss) on share transactions 62,912 15,823 48
-------------------- -------------------- -------------------
Net realized gain (loss) 62,912 15,823 2,009
Net unrealized gain (loss) 1,793,064 975,528 (1,102)
-------------------- -------------------- -------------------
Net realized and unrealized
gain (loss) on investments 1,855,976 991,351 907
-------------------- -------------------- -------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,830,927 $ 978,724 $ 1,020
==================== ==================== ===================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
Templeton
Variable Products
Series Fund -
OCC Accumulation Trust Sub-Accounts Class 1
----------------------------------------------------------- --------------------
Small International-
Equity Managed Capitalization Class l
---------------- ------------------- -------------------- --------------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 1,603 $ 11,583 $ 8,114 $ 40,711
EXPENSES:
Mortality and expense risk and
administrative charges 1,858 7,861 10,732 15,671
---------------- ------------------- -------------------- --------------------
Net investment gain (loss) (255) 3,722 (2,618) 25,040
---------------- ------------------- -------------------- --------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Capital distributions from portfolio sponsors 7,302 25,992 - 141,416
Net realized gain (loss) on share transactions (859) 629 (18,932) 22,488
---------------- ------------------- -------------------- --------------------
Net realized gain (loss) 6,443 26,621 (18,932) 163,904
Net unrealized gain (loss) (4,712) 2,056 10,363 173,120
---------------- ------------------- -------------------- --------------------
Net realized and unrealized
gain (loss) on investments 1,731 28,677 (8,569) 337,024
---------------- ------------------- -------------------- --------------------
INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $ 1,476 $ 32,399 $ (11,187) $ 362,064
================ =================== ==================== ====================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
Alger American Fund Sub-Accounts
---------------------------------------------------------------
MidCap Small
Growth Growth Capitalization
-------------------- ------------------- --------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ (9,613) $ (3,525) $ (7,497)
Net realized gain (loss) 112,777 53,620 93,409
Net unrealized gain (loss) 333,646 80,099 310,481
-------------------- ------------------- --------------------
Net increase (decrease) from operations 436,810 130,194 396,393
-------------------- ------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 551,404 244,920 533,399
Participant transfers 780,181 20,937 38,592
Participant withdrawals (255,605) (89,986) (169,989)
-------------------- ------------------- --------------------
Net increase (decrease) from participant
transactions 1,075,980 175,871 402,002
-------------------- ------------------- --------------------
Total increase (decrease) in net assets 1,512,790 306,065 798,395
NET ASSETS:
Beginning of year 512,805 279,014 598,312
-------------------- ------------------- --------------------
End of year $ 2,025,595 $ 585,079 $ 1,396,707
==================== =================== ====================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
Bankers Trust
Insurance Funds Trust -
Sub-Accounts
-----------------------------------------
EAFE-Registered Small
Trademark- Equity Capitalization
------------------- --------------------
<S> <C> <C>
OPERATIONS:
Net investment gain (loss) $ 205 $ 3
Net realized gain (loss) 402 41
Net unrealized gain (loss) 762 169
------------------- --------------------
Net increase (decrease) from operations 1,369 213
------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 883 216
Participant transfers 11,230 1,013
Participant withdrawals (457) (143)
------------------- --------------------
Net increase (decrease) from participant
transactions 11,656 1,086
------------------- --------------------
Total increase (decrease) in net assets 13,025 1,299
NET ASSETS:
Beginning of year - -
------------------- --------------------
End of year $ 13,025 $ 1,299
=================== ====================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
CIGNA Variable
Products Group
Sub-Accounts
---------------------------------------------------------------
Investment
Money Market S&P 500 Grade Bond
------------------- ------------------- --------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ 21,992 $ 528,241 $ 47,263
Net realized gain (loss) - 916,844 71
Net unrealized gain (loss) - 4,672,428 (56,980)
------------------- ------------------- --------------------
Net increase (decrease) from operations 21,992 6,117,513 (9,646)
------------------- ------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 4,533,879 6,318,489 769,586
Participant transfers (3,852,237) 2,849,214 896,333
Participant withdrawals (249,781) (3,289,918) (31,366)
------------------- ------------------- --------------------
Net increase (decrease) from participant
transactions 431,861 5,877,785 1,634,553
------------------- ------------------- --------------------
Total increase (decrease) in net assets 453,853 11,995,298 1,624,907
NET ASSETS:
Beginning of year 213,147 27,262,227 -
------------------- ------------------- --------------------
End of year $ 667,000 $ 39,257,525 $ 1,624,907
=================== =================== ====================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS Fidelity Variable
FOR THE YEAR ENDED DECEMBER 31, 1999 Fidelity Variable Insurance Insurance
Products Fund Products Fund ll
Sub-Accounts Sub-Account
---------------------------------------------------------------
Equity- High Investment
Income Income Grade Bond
-------------------- -------------------- --------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ 1,498 $ 90,630 $ 185,040
Net realized gain (loss) 33,139 7,643 78,063
Net unrealized gain (loss) 23,754 (17,643) (362,524)
-------------------- -------------------- --------------------
Net increase (decrease) from operations 58,391 80,630 (99,421)
-------------------- -------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 491,716 297,772 176,641
Participant transfers (96,198) 15,626 (621,365)
Participant withdrawals (175,786) (642,298) (1,189,155)
-------------------- -------------------- --------------------
Net increase (decrease) from
participant transactions 219,732 (328,900) (1,633,879)
-------------------- -------------------- --------------------
Total increase (decrease) in net assets 278,123 (248,270) (1,733,300)
NET ASSETS:
Beginning of year 1,101,890 1,079,507 5,897,291
-------------------- -------------------- --------------------
End of year $ 1,380,013 $ 831,237 $ 4,163,991
==================== ==================== ====================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1999
Janus Aspen Series MFS Variable Insurance Trust -
Sub-Accounts Sub-Accounts
---------------------------------------------------------------
Emerging Total
Worldwide Growth Return
-------------------- ------------------- --------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ (25,049) $ (12,627) $ 113
Net realized gain (loss) 62,912 15,823 2,009
Net unrealized gain (loss) 1,793,064 975,528 (1,102)
-------------------- ------------------- --------------------
Net increase (decrease) from operations 1,830,927 978,724 1,020
-------------------- ------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 716,337 543,803 135,071
Participant transfers 161,404 86,751 25,773
Participant withdrawals (743,901) (197,247) (31,059)
-------------------- ------------------- --------------------
Net increase (decrease) from
participant transactions 133,840 433,307 129,785
-------------------- ------------------- --------------------
Total increase (decrease) in net assets 1,964,767 1,412,031 130,805
NET ASSETS:
Beginning of year 2,826,277 1,026,589 63,790
-------------------- ------------------- --------------------
End of year $ 4,791,044 $ 2,438,620 $ 194,595
==================== =================== ====================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS Templeton
FOR THE YEAR ENDED DECEMBER 31, 1999 Variable Products
Series Fund -
OCC Accumulation Trust Sub-Accounts Class 1
-------------------------------------------------------------- --------------------
Small
Equity Managed Capitalization International
------------------- -------------------- ------------------- --------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ (255) $ 3,722 $ (2,618) $ 25,040
Net realized gain (loss) 6,443 26,621 (18,932) 163,904
Net unrealized gain (loss) (4,712) 2,056 10,363 173,120
------------------- -------------------- ------------------- --------------------
Net increase (decrease) from
operations 1,476 32,399 (11,187) 362,064
------------------- -------------------- ------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 144,530 229,604 176,782 740,350
Participant transfers (812) (45,329) (44,201) (56,157)
Participant withdrawals (34,557) (141,705) (318,138) (334,392)
------------------- -------------------- ------------------- --------------------
Net increase (decrease) from
participant transactions 109,161 42,570 (185,557) 349,801
------------------- -------------------- ------------------- --------------------
Total increase (decrease) in
net assets 110,637 74,969 (196,744) 711,865
NET ASSETS:
Beginning of year 147,875 739,373 1,257,978 1,296,043
------------------- -------------------- ------------------- --------------------
End of year $ 258,512 $ 814,342 $ 1,061,234 $ 2,007,908
=================== ==================== =================== ====================
</TABLE>
The Notes to Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
Alger American Fund Sub-Accounts
---------------------------------------------------------------
MidCap Small
Growth Growth Capitalization
-------------------- ------------------- --------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ (1,846) $ (1,536) $ (3,035)
Net realized gain (loss) 32,404 13,683 33,148
Net unrealized gain (loss) 91,238 40,548 5,340
-------------------- ------------------- --------------------
Net increase (decrease) from operations 121,796 52,695 35,453
-------------------- ------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 234,347 107,151 115,723
Participant transfers 178,850 100,550 387,084
Participant withdrawals (72,383) (19,855) (30,038)
-------------------- ------------------- --------------------
Net increase (decrease) from
participant transactions 340,814 187,846 472,769
-------------------- ------------------- --------------------
Total increase (decrease) in net assets 462,610 240,541 508,222
NET ASSETS:
Beginning of year 50,195 38,473 90,090
-------------------- ------------------- --------------------
End of year $ 512,805 $ 279,014 $ 598,312
==================== =================== ====================
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998 CIGNA Variable
Products Group
Sub-Accounts
------------------------------------------
Money Market S&P 500
------------------- -------------------
<S> <C> <C>
OPERATIONS:
Net investment gain (loss) $ 32,021 $ 330,619
Net realized gain (loss) - 331,220
Net unrealized gain (loss) - 4,308,965
------------------- -------------------
Net increase (decrease) from operations 32,021 4,970,804
------------------- -------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 8,339,674 6,448,072
Participant transfers (7,699,759) 3,889,673
Participant withdrawals (530,422) (1,497,945)
------------------- -------------------
Net increase (decrease) from
participant transactions 109,493 8,839,800
------------------- -------------------
Total increase (decrease) in net assets 141,514 13,810,604
NET ASSETS:
Beginning of year 71,633 13,451,623
------------------- -------------------
End of year $ 213,147 $ 27,262,227
=================== ===================
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets Fidelity Variable
For the year ended December 31, 1998 Fidelity Variable Insurance Insurance
Products Fund Products Fund ll
Sub-Accounts Sub-Account
----------------------------------------------------------------
Equity- High Investment
Income Income Grade Bond
-------------------- ------------------- --------------------
<S> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ (2,545) $ 18,760 $ 183,389
Net realized gain (loss) 16,037 15,162 41,735
Net unrealized gain (loss) 36,839 (50,282) 201,263
-------------------- ------------------- --------------------
Net increase (decrease) from operations 50,331 (16,360) 426,387
-------------------- ------------------- --------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 436,963 220,573 424,660
Participant transfers 543,337 612,890 838,386
Participant withdrawals (111,582) (42,487) (773,867)
-------------------- ------------------- --------------------
Net increase (decrease) from
participant transactions 868,718 790,976 489,179
-------------------- ------------------- --------------------
Total increase (decrease) in net assets 919,049 774,616 915,566
NET ASSETS:
Beginning of year 182,841 304,891 4,981,725
-------------------- ------------------- --------------------
End of year $ 1,101,890 $ 1,079,507 $ 5,897,291
==================== =================== ====================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1998
Janus Aspen Series MFS Variable Insurance Trust -
Sub-Accounts Sub-Accounts
------------------------------------------------------------------------------------
Short-term Emerging Total
Bond* Worldwide Growth Return
-------------------- ------------------- -------------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ 5 $ 43,843 $ (6,074) $ (172)
Net realized gain (loss) 45 7,330 1,679 125
Net unrealized gain (loss) - 479,024 216,913 3,234
-------------------- ------------------- -------------------- -------------------
Net increase (decrease) from
operations 50 530,197 212,518 3,187
-------------------- ------------------- -------------------- -------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 5,631 687,079 316,114 6,219
Participant transfers (5,488) 254,640 274,990 55,960
Participant withdrawals (193) (306,422) (86,142) (5,231)
-------------------- ------------------- -------------------- -------------------
Net increase (decrease) from
participant transactions (50) 635,297 504,962 56,948
-------------------- ------------------- -------------------- -------------------
Total increase (decrease) in
net assets - 1,165,494 717,480 60,135
NET ASSETS:
Beginning of year - 1,660,783 309,109 3,655
-------------------- ------------------- -------------------- -------------------
End of year $ - $ 2,826,277 $ 1,026,589 $ 63,790
==================== =================== ==================== ===================
* For the period ended December 31, 1998.
Deposits first received January 29, 1998.
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE
ACCOUNT 02
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS Templeton
FOR THE YEAR ENDED DECEMBER 31, 1998 Variable Products
Series Fund -
OCC Accumulation Trust Sub-Accounts Class 1
--------------------------------------------------------------- -------------------
Small
Equity Managed Capitalization International
-------------------- ------------------- -------------------- -------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment gain (loss) $ (270) $ (1,825) $ (8,491) $ 5,965
Net realized gain (loss) 3,665 15,752 22,064 28,963
Net unrealized gain (loss) 6,897 22,152 (177,446) (28,223)
-------------------- ------------------- -------------------- -------------------
Net increase (decrease) from
operations 10,292 36,079 (163,873) 6,705
-------------------- ------------------- -------------------- -------------------
ACCUMULATION UNIT TRANSACTIONS:
Participant deposits 105,497 449,913 128,149 424,779
Participant transfers 14,836 (10,371) 89,173 342,949
Participant withdrawals (30,729) (70,856) (158,738) (55,891)
-------------------- ------------------- -------------------- -------------------
Net increase (decrease) from
participant transactions 89,604 368,686 58,584 711,837
-------------------- ------------------- -------------------- -------------------
Total increase (decrease) in
net assets 99,896 404,765 (105,289) 718,542
NET ASSETS:
Beginning of year 47,979 334,608 1,363,267 577,501
-------------------- ------------------- -------------------- -------------------
End of year $ 147,875 $ 739,373 $ 1,257,978 $ 1,296,043
==================== =================== ==================== ===================
</TABLE>
The Notes to the Financial Statements are an integral part of these statements.
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE ACCOUNT 02
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION
CG Corporate Insurance Variable Life Separate Account 02 (the Account)
is registered as a Unit Investment Trust under the Investment Company Act of
1940, as amended. The operations of the Account are part of the operations of
Connecticut General Life Insurance Company (CG Life). The assets and liabilities
of the Account are clearly identified and distinguished from other assets and
liabilities of CG Life. The assets of the Account are not available to meet the
general obligations of CG Life and are held for the exclusive benefit of the
participants.
At December 31, 1999, the assets of the Account are divided into
variable sub-accounts each of which is invested in shares of one of eighteen
portfolios (mutual funds) of nine diversified open-end management investment
companies, each portfolio having its own investment objective. The variable
sub-accounts are:
ALGER AMERICAN FUND:
Alger American Growth Portfolio
Alger American MidCap Growth Portfolio
Alger American Small Capitalization Portfolio
BANKERS TRUST INSURANCE FUNDS TRUST:
EAFE-Registered Trademark- Equity Index Fund
Small Capitalization Index Fund
CIGNA VARIABLE PRODUCTS GROUP:
CIGNA Variable Products Money Market Fund
CIGNA Variable Products S&P 500 Index Fund
CIGNA Variable Products Investment Grade Bond Fund
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
Equity-Income Portfolio ("Fidelity Equity-Income Portfolio")
High Income Portfolio ("Fidelity High Income Portfolio")
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
Investment Grade Bond Portfolio ("Fidelity Investment Grade Bond
Portfolio")
JANUS ASPEN SERIES:
Janus Aspen Series Worldwide Growth Portfolio
MFS VARIABLE INSURANCE TRUST:
MFS Emerging Growth Series
MFS Total Return Series
OCC ACCUMULATION TRUST:
OCC Equity Portfolio
OCC Managed Portfolio
OCC Small Cap Portfolio
TEMPLETON VARIABLE PRODUCTS SERIES FUND:
Templeton International Fund - Class 1
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in conformity with generally
accepted accounting principles and reflect management's estimates and
assumptions, such as those regarding fair value, that affect recorded amounts.
Actual results could differ from those estimates. Significant estimates are
discussed throughout the Notes to Financial Statements. The following is a
summary of significant accounting policies consistently applied in the
preparation of the Account's financial statements:
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE ACCOUNT 02
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
A. INVESTMENT VALUATION: Investments held by the sub-accounts are valued
at their respective closing net asset values per share as determined by the
underlying mutual funds as of December 31, 1999. The change in the difference
between cost and value is reflected as unrealized gain (loss) in the Statements
of Operations.
B. INVESTMENT TRANSACTIONS: Investment transactions are recorded on the
trade date (date the order to buy or sell is executed). Realized gains and
losses on sales of investments are determined by the last-in, first-out cost
basis of the investment sold. Dividend and capital gain distributions are
recorded on the ex-dividend date. Investment transactions are settled through CG
Life.
C. FEDERAL INCOME TAXES: The operations of the Account form a part of,
and are taxed with, the total operations of CG Life, which is taxed as a life
insurance company. Under existing Federal income tax law, investment income
(dividends) and capital gains attributable to the Account are not taxed.
3. INVESTMENTS
Total shares outstanding and cost of investments as of December 31, 1999
were:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
COST OF
SUB-ACCOUNT SHARES HELD INVESTMENTS
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alger American Growth Portfolio 31,463 $ 1,599,469
Alger American MidCap Growth Portfolio 18,153 459,286
Alger American Small Capitalization Portfolio 25,326 1,070,465
Bankers Trust EAFE-Registered Trademark- Equity-Index Fund 962 12,327
Bankers Trust Small Capitalization Index Fund 113 1,139
CIGNA Variable Products Money Market Fund 667,192 666,997
CIGNA Variable Products S&P 500 Index Fund 1,719,584 28,955,852
CIGNA Variable Products Investment Grade Bond Fund 170,502 1,681,867
Fidelity Equity-Income Portfolio 53,677 1,293,030
Fidelity High Income Portfolio 73,484 872,039
Fidelity Investment Grade Bond Portfolio 342,450 4,133,213
Janus Aspen Series Worldwide Growth Portfolio 100,337 2,475,086
MFS Emerging Growth Series 64,275 1,209,688
MFS Total Return Series 10,964 192,170
OCC Equity Portfolio 6,883 253,352
OCC Managed Portfolio 18,657 762,573
OCC Small Cap Portfolio 47,124 1,209,100
Templeton International Fund - Class 1 90,243 1,870,230
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Total purchases and sales of shares of each mutual fund for the year ended
December 31, 1999, amounted to:
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
SUB-ACCOUNT PURCHASES SALES
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alger American Growth Portfolio $ 1,671,761 $ 461,742
Alger American MidCap Growth Portfolio 351,125 129,633
Alger American Small Capitalization Portfolio 746,786 268,118
Bankers Trust EAFE-Registered Trademark- Equity-Index Fund 12,758 443
Bankers Trust Small Capitalization Index Fund 1,282 147
CIGNA Variable Products Money Market Fund 4,486,363 4,032,513
CIGNA Variable Products S&P 500 Index Fund 10,672,784 3,541,805
CIGNA Variable Products Investment Grade Bond Fund 1,742,347 60,577
Fidelity Equity-Income Portfolio 916,424 664,950
Fidelity High Income Portfolio 571,014 805,552
Fidelity Investment Grade Bond Portfolio 1,076,546 2,452,255
Janus Aspen Series Worldwide Growth Portfolio 1,076,272 967,459
MFS Emerging Growth Series 752,206 331,566
MFS Total Return Series 175,526 43,652
OCC Equity Portfolio 163,627 47,403
OCC Managed Portfolio 277,270 204,965
OCC Small Cap Portfolio 234,835 423,005
Templeton International Fund - Class 1 1,026,021 509,792
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE ACCOUNT 02
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
4. CHARGES AND DEDUCTIONS
For all contracts sold after April 30, 1998, CG Life charges each variable
sub-account for mortality and expense risks the daily equivalent of .70%, on an
annual basis, of the current value of each sub-account's assets during the first
fifteen policy years and .25% thereafter. All contracts sold before May 1, 1998
have an annual fee for mortality and expense risks of .85% per year during the
first ten policy years, .45% per year during the eleventh through fifteenth
policy years and .15% thereafter.
For all contracts sold after April 30, 1998, CG Life charges each variable
sub-account for administrative costs, a daily deduction currently equivalent to
.10% per year during the first fifteen policy years only. For all contracts sold
before May 1, 1998, CG Life charges administrative costs at the rate of .10% per
year for the first ten policy years only.
Both the mortality and expense risk charge and the administrative fee
deductions are also assessed against amounts held in the fixed account, if any.
The fixed account is part of the general account of CG Life and is not included
in these financial statements.
The fees charged by CG Life for mortality and expense risks and
administrative fees from variable sub-accounts for the year ended December 31,
1999 amounted to:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
MORTALITY AND ASSET BASED
EXPENSE ADMINISTRATIVE
SUB-ACCOUNT RISK FEES FEES
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Alger American Growth Portfolio $ 9,766 $ 1,160
Alger American MidCap Growth Portfolio 3,153 372
Alger American Small Capitalization Portfolio 6,641 856
Bankers Trust EAFE-Registered Trademark- Equity-Index Fund 3 -
Bankers Trust Small Capitalization Index Fund 9 1
CIGNA Variable Products Money Market Fund 4,384 575
CIGNA Variable Products S&P 500 Index Fund 266,465 31,998
CIGNA Variable Products Investment Grade Bond Fund 5,118 631
Fidelity Equity-Income Portfolio 10,895 1,284
Fidelity High Income Portfolio 7,806 920
Fidelity Investment Grade Bond Portfolio 42,753 5,118
Janus Aspen Series Worldwide Growth Portfolio 27,723 3,274
MFS Emerging Growth Series 11,292 1,335
MFS Total Return Series 840 105
OCC Equity Portfolio 1,662 196
OCC Managed Portfolio 7,033 828
OCC Small Cap Portfolio 9,602 1,130
Templeton International Fund - Class 1 13,993 1,678
- ------------------------------------------------------------------------------------------------------------
</TABLE>
CG Life charges a one-time policy issue fee of $175 from the accumulation
value for a portion of CG Life's administrative expenses for all contracts sold
after April 30, 1998 and $250 for all contracts sold before May 1, 1998. Policy
issue fees, which were deducted from the initial premium payment, amounted to
$73,325, all of which were deducted from the CIGNA Variable Products Money
Market Fund.
For all contracts sold after April 30, 1998, CG Life deducts a premium load
of 6.5% of each premium payment to cover sales loads, state taxes and Federal
income tax liabilities. An additional 45% on premium payments up to target
premium specified in the policy will be deducted in the first policy year and an
additional 12% of premium payments up to target premium will be deducted in
years two through ten. In the event that the specified amount under the policy
is increased, other than a change in the death benefit option, an additional 25%
premium load on premium payments up to the increase in the target premium will
be deducted from premium payments received during the 12 months following the
increase, to the extent such premium payments are attributable to the increase
in specified amount rather than to the previously existing specified amount.
For all contracts sold before May 1, 1998, CG Life deducts a premium load
of 6.5% of each premium payment to cover sales loads, state taxes and Federal
income tax liabilities. An additional 40% on premium
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE ACCOUNT 02
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
4. CHARGES AND DEDUCTIONS (CONTINUED)
payments, up to one guideline annual premium, as defined in the Account's
prospectus, will be deducted in the first policy year. In the event that the
specified amount under the policy is increased, other than a change in the death
benefit option, an additional 25% premium load on premium payments up to the
increase in the target premium will be deducted from premium payments received
during the 12 months following the increase, to the extent such premium payments
are attributable to the increase in specified amount rather than to the extent
such premium payments are attributable to the increase in specified amount
rather than to the previously existing specified amount.
CG Life charges a monthly administrative fee of $8 per month. This charge
is for items such as premium billing and collection, policy value calculation,
confirmations and periodic reports.
CG Life charges a monthly deduction for the cost of insurance and any
charges for supplemental riders. The cost of insurance charge depends on the
attained age, years since issue, risk class (in accordance with state law) of
the insured and the current net amount at risk. On a monthly basis, the
administrative fee and the cost of insurance charge are deducted proportionately
from the value of each variable sub-account and/or the fixed account funding
option. The fixed account is part of the general account of CG Life and is not
included in these financial statements.
CG Life charges a $25 transaction fee for each transfer between funding
options in excess of four during the policy year. No transaction fee charges
were paid to CG Life for the year ended December 31, 1999.
Fees charged by CG Life for premium loads are deducted from premium
payments. Administrative fees and the amount deducted for the cost of insurance
are included in participant withdrawals. Premium loads, net of refunds,
administrative fees and costs of insurance, by variable sub-account, for the
year ended December 31, 1999, amounted to:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
PREMIUM ADMIN- COSTS OF
LOADS, NET OF ISTRATIVE INSURANCE
SUB-ACCOUNT REFUNDS FEES DEDUCTION
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Alger American Growth Portfolio $ 39,543 $5,692 $ 108,908
Alger American MidCap Growth Portfolio 17,181 2,178 34,239
Alger American Small Capitalization Portfolio 44,544 5,828 42,735
Bankers Trust EAFE-Registered Trademark- Equity-Index Fund 433 49 408
Bankers Trust Small Capitalization Index Fund 192 20 123
CIGNA Variable Products Money Market Fund 1,204,219 13,772 132,048
CIGNA Variable Products S&P 500 Index Fund. 509,098 51,374 726,712
CIGNA Variable Products Investment Grade Bond Fund 81,843 3,684 27,648
Fidelity Equity-Income Portfolio 40,221 14,596 127,840
Fidelity High Income Portfolio (44,836) 2,380 66,653
Fidelity Investment Grade Bond Portfolio 16,857 8,955 104,090
Janus Aspen Series Worldwide Growth Portfolio 44,116 8,447 132,890
MFS Emerging Growth Series 35,220 8,278 97,397
MFS Total Return Series 18,258 1,127 23,528
OCC Equity Portfolio 11,808 1,769 30,416
OCC Managed Portfolio 12,370 3,364 42,048
OCC Small Cap Portfolio 9,180 1,103 24,005
Templeton International Fund - Class 1 29,577 9,052 57,936
- ------------------------------------------------------------------------------------------------------------
</TABLE>
For policies issued after April 30, 1998, if the policy is fully
surrendered during the first 12 months after issue, a credit will be paid equal
to 100% of all premium loads previously deducted in excess of 3.5% of all
premiums paid. If the policy is fully surrendered during months 13 through 24,
the credit will equal 50% of all premium loads previously deducted in excess of
3.5% of all premiums paid. If the policy is fully surrendered during the months
25 through 36, the credit will equal 33% of all premium loads previously
deducted in excess of 3.5% of all premiums paid.
For policies issued between May 1, 1997 and April 30, 1998, if the policy
is fully surrendered during the first 12 months after issue, a credit will be
paid equal to 100% of all premium loads previously deducted in
<PAGE>
CG CORPORATE INSURANCE VARIABLE LIFE SEPARATE ACCOUNT 02
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
- --------------------------------------------------------------------------------
4. CHARGES AND DEDUCTIONS (CONTINUED)
excess of 3.5% of all premiums paid. If the policy is fully surrendered during
months 13 through 24, the credit will equal 50% of all premium loads previously
deducted in excess of 3.5% of all premiums paid.
For policies issued before May 1, 1997, CG Life will refund 60% of all
premium loads previously deducted if a policy is fully surrendered during the
first 12 months after issue. If a policy is fully surrendered during the months
13 through 24 after issue, the refund will equal 30% of all premium loads
previously deducted.
Premium load refunds for the year ended December 31, 1999 amounted to
$267,847.
For partial surrenders, a transaction charge of $25 is imposed, allocated
pro-rata among the variable sub-accounts (and, where applicable, the fixed
account) from which the partial surrender proceeds are taken, unless the policy
owner and CG Life agree otherwise.
Partial surrender transaction charges paid to CG Life attributable to the
variable sub-accounts for the year ended December 31, 1999 were not significant.
5. DISTRIBUTION OF NET INCOME
The Account does not expect to declare dividends to participants from
accumulated net income. The accumulated net income is distributed to
participants as part of death benefits, surrenders, and transfers to other fixed
or variable sub-accounts.
6. DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code of 1986
(the Code), a variable life insurance policy will not be treated as life
insurance under Section 7702 of the Code for any period for which the
investments of the segregated asset account, on which the policy is based, are
not adequately diversified. The Code provides that the "adequately diversified"
requirement may be met if the underlying investments satisfy either a statutory
safe harbor test or diversification requirements set forth in regulations issued
by the Secretary of Treasury. CG Life believes, based on assurances from the
mutual funds, that the mutual funds satisfy the requirements of the regulations
and that the Account therefore satisfies the requirements of the regulations,
and that the Account will continue to meet such requirements.
<PAGE>
GC CORPORATE INSURANCE VARIABLE UNIVERSAL LIFE SEPARATE ACCOUNT 02
SCHEDULE OF CHANGES IN UNIT VALUES
PERIOD ENDED DECEMBER 31, 1999
UNAUDITED
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulation
Date Initially Accumulated Accumulation Unit Value % Change % Change
Funded Unit Value Unit Value 12/31/1999 Inception 12/31/1998
Sub-Account (Inception Date) at Inception 12/31/1998 YTD to YTD to YTD
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CONTRACTS SOLD BEFORE MAY 1, 1998
Alger American Growth Portfolio 02/24/1997 10.000000 17.174509 22.753794 127.54 32.49
Alger American MidCap Growth Portfolio 02/24/1997 10.000000 14.533269 18.981572 89.82 30.61
Alger American Small Capitalization
Portfolio 03/31/1997 10.000000 14.358496 20.398939 103.99 42.07
- -----------------------------------------------------------------------------------------------------------------------------------
Bankers Trust - EAFE-Registered
Trademark- Equity Index Fund 03/08/1999 10.000000 ** 12.881229 28.81 N/A
Bankers Trust - Small Cap Index Fund 03/08/1999 10.000000 ** 12.614069 26.14 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
CIGNA VP Money Market Fund 12/24/1996 10.008961* 10.861410 11.278484 12.68 3.84
CIGNA VP S&P 500 Index Fund 02/24/1997 10.000000 15.363576 18.379394 83.79 19.63
CIGNA VP Investment Grade Bond Fund 05/11/1999 10.000000 ** 9.851835 (1.48) N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 02/24/1997 10.000000 13.137868 13.838011 38.38 5.33
Fidelity VIP High Income Portfolio 01/29/1997 10.000000 10.930880 11.711075 17.11 7.14
Fidelity VIP II Investment Grade
Bond Portfolio 01/29/1997 10.000000 11.693725 11.462104 14.62 (1.98)
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Worldwide Growth
Portfolio 02/24/1997 10.000000 14.538727 23.684224 136.84 62.90
- -----------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Series 01/29/1997 10.000000 15.507615 27.146504 171.47 75.05
MFS Total Return Series 02/24/1997 10.000000 12.791189 13.061631 30.62 2.11
- -----------------------------------------------------------------------------------------------------------------------------------
OCC Equity Portfolio 02/24/1997 10.000000 13.156140 13.363501 33.64 1.58
OCC Managed Portfolio 01/29/1997 10.000000 12.450284 12.949336 29.49 4.01
OCC Small Cap Portfolio 02/24/1997 10.000000 10.821353 10.523062 5.23 (2.76)
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton International Fund Class I 02/24/1997 10.000000 11.832899 14.489634 44.90 22.45
- -----------------------------------------------------------------------------------------------------------------------------------
CONTRACTS SOLD AFTER APRIL 30, 1998
Alger American Growth Portfolio 01/21/1999 10.000000 ** 13.257221 32.57 N/A
Alger American MidCap Growth Portfolio 01/21/1999 10.000000 ** 13.340647 33.41 N/A
Alger American Small Capitalization
Portfolio 06/17/1998 10.000000 10.616506 15.105161 51.05 42.28
- -----------------------------------------------------------------------------------------------------------------------------------
Bankers Trust - EAFE-Registered
Trademark- Equity Index Fund 11/11/1999 10.000000 ** 11.038066 10.38 N/A
Bankers Trust - Small Cap Index Fund 04/21/1999 10.000000 ** 11.774734 17.75 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
CIGNA VP Money Market Fund 06/17/1998 10.000000 ** 10.632584 6.33 N/A
CIGNA VP S&P 500 Index Fund 06/17/1998 10.000000 11.162600 13.373636 33.74 19.81
CIGNA VP Investment Grade Bond Fund 06/02/1999 10.000000 ** 9.996680 (0.03) N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio 01/21/1999 10.000000 ** 10.769746 7.70 N/A
Fidelity VIP High Income Portfolio 01/21/1999 10.000000 ** 10.533846 5.34 N/A
Fidelity VIP II Investment Grade
Bond Portfolio 06/17/1998 10.000000 10.474584 10.282392 2.82 (1.83)
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Worldwide Growth
Portfolio 01/21/1999 10.000000 ** 15.896172 58.96 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
MFS Emerging Growth Series 01/21/1999 10.000000 ** 17.140484 71.40 N/A
MFS Total Return Series 05/17/1999 10.000000 ** 9.834193 (1.66) N/A
- -----------------------------------------------------------------------------------------------------------------------------------
OCC Equity Portfolio 09/01/1999 10.000000 ** 10.056584 0.57 N/A
OCC Managed Portfolio 01/21/1999 10.000000 ** 10.771008 7.71 N/A
OCC Small Cap Portfolio 01/21/1999 10.000000 ** 10.056968 0.57 N/A
- -----------------------------------------------------------------------------------------------------------------------------------
Templeton International Fund Class I 06/17/1998 10.000000 9.617966 11.794910 17.95 22.63
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Accumulation unit value as of 12/31/96
** As of 12/31/1998, no contributions were invested in funds.
Acumulation Unit Values are net of charges agsainst the assets of the
Variable Account for the assumption of mortality and expense risks and for
administrative expenses.
