The
AARP
Variable
Annuity
American Maturity Life
Insurance Company
SEMI-ANNUAL REPORT
- -------------------
JUNE 30, 1998
- -------------------
[AARP LOGO]
American Maturity Life
<PAGE>
- --------------------------------------------------------------------------------
Table of Contents
Letter to Certificate Owners
American Maturity Life Insurance Company Separate Account AMLVA
Financial Statements and Notes to Financial Statements
DREYFUS VARIABLE INVESTMENT FUND
Capital Appreciation Portfolio
Small Cap Portfolio
JANUS ASPEN SERIES
Worldwide Growth Portfolio
Balanced Portfolio
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Partners Portfolio
SCUDDER VARIABLE LIFE INVESTMENT FUND
Money Market Portfolio
Bond Portfolio
Growth and Income Portfolio
Capital Growth Portfolio
Certificate Owners should refer to the prospectus provided to them at the time
of purchase of their Certificate for a description of investment alternatives
available in Separate Account AMLVA. This prospectus, along with the financial
information contained in this report, provides them with the complete and
up-to-date financial information regarding Separate Account AMLVA.
This report is prepared for the general information on Certificate Owners and is
not an offer of contracts. It should not be used in connection with any other
offer, except in conjunction with the appropriate prospectus which contains all
pertinent information including the applicable sales, administrative and other
charges.
<PAGE>
[American Maturity Life LOGO] 200 Hopmeadow Street
Simsbury, Connecticut 06089
Telephone (860) 843-3293
Fax (860) 843-3623
Mailing Address: P.O. Box 2999
Hartford, CT 06104-2999
August 20, 1998
Dear AARP Variable Annuity Certificate Owner:
Planning for retirement and indeed paying for retirement have become
increasingly important goals for many AARP members. As we all have come to
realize, saving for a comfortable retirement is a long-term process. When you
purchased your AARP Variable Annuity, you took an important step toward
enhancing your financial future and supplementing your other sources of
retirement income.
At American Maturity Life we are exclusively dedicated to helping AARP members
meet their financial retirement goals. As a long-term investment vehicle your
AARP Variable Annuity was designed to provide superior value and flexibility. In
addition to tax-deferral on earnings, generous liquidity features and various
income options, it provides a broad choice of diversified investment portfolios.
These portfolios were selected to help you achieve the proper balance between
investment risk and reward -- now and in the future -- and have the added
advantage of being managed by leading investment professionals from Dreyfus
Corporation, Janus Capital Corporation, Neuberger & Berman Management, Inc. and
Scudder Kemper Investments, Inc.
As a valued customer of American Maturity Life we sincerely appreciate your
business and the trust and confidence you have place in us. Please be assured
that we will do everything in our power to continue to earn that trust and
confidence.
Should you have any questions about this semi-annual report or your AARP
Variable Annuity, please feel free to call one of our Customer Service Annuity
Specialists at 1-800-923-3334. Your satisfaction is our primary concern.
Thank you for allowing us to be of service to you.
Sincerely,
/s/Joseph J. Noto
Joseph J. Noto
Chief Operating Officer
<PAGE>
Separate Account AMLVA
American Maturity Life Insurance Company
Statement of Assets & Liabilities
June 30, 1998 (Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Scudder Scudder Scudder
Variable Variable Variable
Life Investment Life Investment Life Investment
Fund Money Fund Bond Fund Capital
Market Portfolio Portfolio Growth Portfolio
Sub-Account Sub-Account Sub-Account
------------------ ----------------- -----------------
<S> <C> <C> <C>
Assets:
Investments:
Scudder Variable Life Investment Fund Money Market Portfolio
Shares 2,407,852
Cost $2,407,852
Market Value .......................................................... $ 2,407,852 -- --
Scudder Variable Life Investment Fund Bond Portfolio
Shares 486,614
Cost $3,323,273
Market Value .......................................................... -- $ 3,347,906 --
Scudder Variable Life Investment Fund Capital Growth Portfolio
Shares 80,927
Cost $1,734,140
Market Value .......................................................... -- -- $ 1,830,571
Scudder Variable Life Investment Fund Growth and Income Portfolio
Shares 570,570
Cost $6,617,112
Market Value .......................................................... -- -- --
Neuberger & Berman Partners Advisers Management Trust Portfolio
Shares 204,311
Cost $4,066,799
Market Value .......................................................... -- -- --
Dreyfus Variable Investment Fund Capital Appreciation Portfolio
Shares 177,192
Cost $5,460,252
Market Value .......................................................... -- -- --
Dreyfus Variable Investment Fund Small Cap Portfolio
Shares 19,511
Cost $1,185,214
Market Value .......................................................... -- -- --
Janus Aspen Series Balanced Portfolio
Shares 82,913
Cost $1,554,726
Market Value .......................................................... -- -- --
Janus Aspen Series Worldwide Growth Portfolio
Shares 173,350
Cost $4,559,957
Market Value .......................................................... -- -- --
Due from American Maturity Life Insurance Company ...................... 6,608 14,353 5,598
Receivable from fund shares sold ....................................... -- -- --
----------- ------------ ------------
Total Assets ........................................................... 2,414,460 3,362,259 1,836,169
----------- ------------ ------------
Liabilities:
Due to American Maturity Life Insurance Company . ...................... -- -- --
Payable for fund shares purchased . .................................... 6,608 14,353 5,598
----------- ------------ ------------
Total Liabilities ...................................................... 6,608 14,353 5,598
----------- ------------ ------------
Net Assets (variable annuity contract liabilities) ..................... 2,407,852 $ 3,347,906 $ 1,830,571
=========== ============ ============
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts:
Units owned by Participants ............................................ 227,734 300,198 127,067
Unit values. ........................................................... 10.573089 $ 11.152326 $ 14.406344
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------------------- 2 ----------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Neuberger Dreyfus Dreyfus
Variable Life & Berman Variable Variable Janus Janus
Investment Fund Partners Advisers Investment Fund Investment Fund Aspen Series Aspen Series
Growth and Income Management Trust Capital Appreciation Small Capital Balanced Worldwide Growth
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------- ------------------- ---------------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
$ 6,669,961 -- -- -- -- --
-- $ 3,932,991 -- -- -- --
-- -- $ 5,966,058 -- -- --
-- -- -- $ 1,181,226 -- --
-- -- -- -- $ 1,649,975 --
-- -- -- -- -- $ 4,975,158
127,761 20,640 28,372 3,369 1,189 25,970
-- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
6,797,722 3,953,631 5,994,430 1,184,595 1,651,164 5,001,128
------------ ------------ ------------ ------------ ------------ ------------
-- -- -- -- -- --
127,761 20,640 28,372 3,369 1,189 25,970
------------ ------------ ------------ ------------ ------------ ------------
127,761 20,640 28,372 3,369 1,189 25,970
------------ ------------ ------------ ------------ ------------ ------------
$ 6,669,961 $ 3,932,991 $ 5,966,058 $ 1,181,226 $ 1,649,975 $ 4,975,158
============ ============ ============ ============ ============ ============
502,144 302,175 421,062 94,619 122,303 344,857
$ 13.282968 $ 13.015616 $ 14.169072 $ 12.484025 $ 13.490901 $ 14.426727
</TABLE>
- ---------------------------------- 3 -------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Separate Account AMLVA
American Maturity Life Insurance Company
Statement of Operations
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Scudder Scudder
Variable Variable Variable
Life Investment Life Investment Life Investment
Fund Money Fund Bond Fund Capital
Market Portfolio Portfolio Growth Portfolio
Sub-Account Sub-Account Sub-Account
------------------ ----------------- -----------------
<S> <C> <C> <C>
Investment income:
Dividends ................................................. $ 33,380 $ 39,520 $ 3,157
Expenses:
Mortality and expense undertakings . ...................... (5,461) (6,977) (4,747)
-------- -------- ---------
Net investment income (loss) ............................. 27,919 32,543 (1,590)
-------- -------- ---------
Capital gains income ....................................... -- 3,650 42,529
-------- -------- ---------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... -- 33 420
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 15,893 86,361
-------- -------- ---------
Net gain (loss) on investments .......................... -- 15,926 86,781
-------- -------- ---------
Net increase (decrease) in net assets resulting from
operations ............................................. $ 27,919 $ 52,119 $ 127,720
======== ======== =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- ------------------------------------- 4 ----------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Neuberger Dreyfus Dreyfus
Variable Life & Berman Variable Variable Janus Janus
Investment Fund Partners Advisers Investment Fund Investment Fund Aspen Series Aspen Series
Growth and Income Management Trust Capital Appreciation Small Capital Balanced Worldwide
Portfolio Portfolio Portfolio Portfolio Portfolio Growth Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------- ------------------- ---------------------- ----------------- -------------- -----------------
<S> <C> <C> <C> <C> <C>
$ 33,214 $ 5,065 $ 253 $ -- $ 38,327 $ 116,475
(16,240) (8,811) (13,073) (3,227) (3,621) (11,682)
--------- ---------- --------- -------- --------- ---------
16,974 (3,746) (12,820) (3,227) 34,706 104,793
--------- ---------- --------- -------- --------- ---------
177,059 159,547 843 -- 10,381 49,802
--------- ---------- --------- -------- --------- ---------
912 (105) (77) (511) 3 15
(7,655) (164,986) 482,621 16,048 84,389 410,742
--------- ---------- --------- -------- --------- ---------
(6,743) (165,091) 482,544 15,537 84,392 410,757
--------- ---------- --------- -------- --------- ---------
$ 187,290 $ (9,290) $ 470,567 $ 12,310 $ 129,479 $ 565,352
========= ========== ========= ======== ========= =========
</TABLE>
- ------------------------------------- 5 ----------------------------------------
<PAGE>
Separate Account AMLVA
American Maturity Life Insurance Company
Statement of Changes in Net Assets
For the Six Months Ended June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder
Variable Life Investment
Fund Money Market
Portfolio Sub-Account
-------------------------
<S> <C>
Operations:
Net investment income (loss) ................................ $ 27,919
Capital gains income ........................................ --
Net realized gain (loss) on security transactions ........... --
Net unrealized appreciation (depreciation) of
investments during the period .............................. --
------------
Net increase (decrease) in net assets resulting from
operations ................................................. 27,919
------------
Unit transactions:
Purchases . ................................................. 5,502,743
Net transfers ............................................... (3,460,904)
Surrenders .................................................. (3,809)
Other Activity .............................................. (262)
------------
Net increase (decrease) in net assets resulting from unit
transactions ............................................... 2,037,768
------------
Total increase (decrease) in net assets ..................... 2,065,687
Net assets:
Beginning of period ......................................... 342,165
------------
End of period ............................................... $ 2,407,852
============
<CAPTION>
Scudder Scudder
Variable Life Investment Variable Life Investment
Fund Bond Fund Capital Growth
Portfolio Sub-Account Portfolio Sub-Account
- -------------------------- -------------------------
<C> <C>
$ 32,543 $ (1,590)
3,650 42,529
33 420
15,893 86,361
----------- -----------
52,119 127,720
----------- -----------
2,134,246 901,828
609,390 277,723
(6,527) (39,646)
518 (695)
----------- -----------
2,737,627 1,139,210
----------- -----------
2,789,746 1,266,930
558,160 563,641
----------- -----------
$ 3,347,906 $ 1,830,571
=========== ===========
</TABLE>
- --------------------------------------------------------------------------------
American Maturity Life Insurance Company
Statement of Changes in Net Assets
For the period from inception, March 17, 1997 to December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder
Variable Life Investment
Fund Money Market
Portfolio Sub-Account
--------------------------
<S> <C>
Operations:
Net investment income (loss) . .......................... $ 6,239
Capital gains income .................................... --
Net realized gain (loss) on security transactions ....... --
Net unrealized appreciation (depreciation) of
investments during the period .......................... --
-------------
Net increase (decrease) in net assets resulting from
operations ............................................. 6,239
-------------
Unit transactions:
Purchases . ............................................. 1,398,582
Net transfers ........................................... (1,031,362)
Surrenders .............................................. (31,277)
Other activity .......................................... (17)
-------------
Net increase (decrease) in net assets resulting from unit
transactions ........................................... 335,926
-------------
Total increase (decrease) in net assets . ............... 342,165
Net assets:
Beginning of period ..................................... --
-------------
End of period ........................................... $ 342,165
=============
<CAPTION>
Scudder Scudder
Variable Life Investment Variable Life Investment
Fund Bond Fund Capital Growth
Portfolio Sub-Account Portfolio Sub-Account
- -------------------------- -------------------------
<C> <C>
$ 5,641 $ (98)
-- --
7 16
8,739 10,070
--------- ---------
14,387 9,988
--------- ---------
465,764 478,755
79,564 75,274
(1,544) (128)
(11) (248)
--------- ---------
543,773 553,653
--------- ---------
558,160 563,641
-- --
--------- ---------
$ 558,160 $ 563,641
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 6 ---------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Neuberger & Berman Dreyfus
Variable Life Investment Partners Advisers Variable Investment Fund
Fund Growth and Income Management Trust Capital Appreciation
Portfolio Sub-Account Portfolio Sub-Account Portfolio Sub-Account
- -------------------------- ----------------------- --------------------------
<S> <C> <C>
$ 16,974 $ (3,746) $ (12,820)
177,059 159,547 843
912 (105) (77)
(7,655) (164,986) 482,621
----------- ----------- -----------
187,290 (9,290) 470,567
----------- ----------- -----------
3,628,383 2,386,189 3,340,783
820,691 706,920 879,154
(27,686) (29,346) (19,791)
2,961 426 477
----------- ----------- -----------
4,424,349 3,064,189 4,200,623
----------- ----------- -----------
4,611,639 3,054,899 4,671,190
2,058,322 878,092 1,294,868
----------- ----------- -----------
$ 6,669,961 $ 3,932,991 $ 5,966,058
=========== =========== ===========
<CAPTION>
Dreyfus Janus Janus
Variable Investment Aspen Series Aspen Series
Fund Small Capital Balanced Worldwide Growth
Portfolio Sub-Account Portfolio Sub-Account Portfolio Sub-Account
-------------------------- ----------------------- -----------------------
<C> <C> <C>
$ (3,227) $ 34,706 $ 104,793
-- 10,381 49,802
(511) 3 15
16,048 84,389 410,742
----------- ----------- -----------
12,310 129,479 565,352
----------- ----------- -----------
637,211 983,090 2,473,397
130,347 247,710 641,148
(17,113) (9,075) (24,424
541 36 (525
----------- ----------- -----------
750,986 1,221,761 3,089,596
----------- ----------- -----------
763,296 1,351,240 3,654,948
417,930 298,735 1,320,210
----------- ----------- -----------
$ 1,181,226 $ 1,649,975 $ 4,975,158
=========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Neuberger & Berman Dreyfus
Variable Life Investment Partners Advisers Variable Investment Trust
Fund Growth and Income Management Trust Capital Appreciation
Portfolio Sub-Account Portfolio Sub-Account Portfolio Sub-Account
- -------------------------- ----------------------- ---------------------------
<S> <C> <C>
$ 4,792 $ (1,934) $ 6,079
-- -- 752
(7,527) 48 397
58,504 31,178 23,185
----------- --------- -----------
55,769 29,292 30,413
----------- --------- -----------
1,774,328 741,365 1,080,754
216,036 108,605 185,964
(2,468) (1,032) (2,276)
14,657 (138) 13
----------- --------- -----------
2,002,553 848,800 1,264,455
----------- --------- -----------
2,058,322 878,092 1,294,868
-- -- --
----------- --------- -----------
$ 2,058,322 $ 878,092 $ 1,294,868
=========== ========= ===========
<CAPTION>
Dreyfus Janus Janus
Variable Investment Aspen Series Aspen Series
Trust Small Capital Balanced Worldwide Growth
Portfolio Sub-Account Portfolio Sub-Account Portfolio Sub-Account
- ------------------------ ----------------------- ----------------------
<C> <C> <C>
$ (481) $ 2,891 $ 2,071
23,882 -- --
(2,631) 28 (191)
(20,036) 10,860 4,458
--------- --------- ----------
734 13,779 6,338
--------- --------- ----------
361,150 252,727 1,132,151
55,933 32,780 184,710
(25) (325) (2,078)
138 (226) (911)
--------- --------- ----------
417,196 284,956 1,313,872
--------- --------- ----------
417,930 298,735 1,320,210
-- -- --
--------- --------- ----------
$ 417,930 $ 298,735 $1,320,210
========= ========= ==========
</TABLE>
- -------------------------------------- 7 ---------------------------------------
<PAGE>
Separate Account AMLVA
American Maturity Life Insurance Company
Notes to Financial Statements
June 30, 1998 (Unaudited)
- --------------------------------------------------------------------------------
1. Organization:
Separate Account AMLVA (the Account) is a separate investment account
within American Maturity Life Insurance Company (the Company) and is
registered with the Securities and Exchange Commission (SEC) as a unit
investment trust under the Investment Company Act of 1940, as amended. Both
the Company and the Account are subject to supervision and regulation by
the Department of Insurance of the State of Connecticut and the SEC. The
Account invests deposits by variable annuity contractholders of the Company
in various mutual funds (The Funds) as directed by the contractholders.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies of the
Account, which are in accordance with generally accepted accounting
principles in the investment company industry:
a) Security Transactions--Security transactions are recorded on the
trade date (date the order to buy or sell is executed). Cost of
investments sold is determined on the basis of identified cost.
Dividend and capital gains income are accrued as of the ex-dividend
date. Capital gains income represents dividends from the Funds which
are characterized as capital gains under tax regulations.
b) Security Valuation--The investment in shares of the Scudder Variable
Life Investment Funds, Janus Aspen Series, Neuberger & Berman
Advisers Management Trust and Dreyfus Variable Investment Funds are
valued at the closing net asset value per share as determined by the
appropriate Fund as of June 30, 1998.
c) Federal Income Taxes--The operations of the Account form a part of,
and are taxed with, the total operations of the Company, which is
taxed as an insurance company under the Internal Revenue Code. Under
current law, no federal income taxes are payable with respect to the
operations of the Account.
d) Use of Estimates--The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities as of the date of the financial
statements and the reported amounts of income and expenses during the
period. Operating results in the future could vary from the amounts
derived from management's estimates.
3. Administration of the Account and Related Charges:
a) Mortality and Expense Undertakings--The Company, as issuer of
variable annuity contracts, provides the mortality and expense
undertakings and, with respect to the Account, receives a maximum
annual fee of up to .65% of the Account's average daily net assets.
The Company also provides administrative services and receives an
annual fee of 0.20% of the Account's average daily net assets.
b) Deduction of Annual Maintenance Fee--Annual maintenance fees are
deducted through termination of units of interest from applicable
contract owners' accounts, in accordance with the terms of the
contracts.
- -------------------------------------- 8 ---------------------------------------
<PAGE>
AML-315VA00CW-0
