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Table of Contents
Letter to Certificate Owners
American Maturity Life Insurance Company Separate Account AMLVA
Financial Statements and Notes to Financial Statements
Report of Independent Public Accountants
DREYFUS VARIABLE INVESTMENT FUND
Capital Appreciation Portfolio
Small Cap Portfolio
JANUS ASPEN SERIES
Balanced Portfolio
Worldwide Growth Portfolio
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Partners Portfolio
SCUDDER VARIABLE LIFE INVESTMENT FUND
Bond Portfolio
Capital Growth Portfolio
Growth & Income Portfolio
Money Market 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>
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200 Hopmeadow Street
Simsbury, Connecticut 06089
Telephone (860) 843-3293
Fax (860) 843-3623
[American
Maturity Mailing Address: P.O. Box 2999
Life Insurance Hartford, CT 06104-2999
Company LOGO]
February 20, 1998
Dear AARP Variable Annuity Certificate Owner:
As we close out the inaugural year of offering the AARP Variable
Annuity, I want to thank you for your business and your trust in the
AARP Annuity Program from American Maturity Life. By year-end, we were
actively marketing this annuity to AARP members in forty-five states.
The response to-date has been extremely encouraging.
Growth in the popularity of variable annuities continued at a robust
pace in 1997. According to the Variable Annuity Research & Data Service
(VARDS), variable annuity sales reached $87 billion, an 18% increase
over 1996 sales. More Americans than ever are turning to variable
annuities to help them prepare for a more financially secure retirement.
At a time when we are all being encouraged to save more for retirement,
variable annuities--with their unique advantages of tax-deferral on
earnings, unlimited contributions, and flexible payout options--
are becoming a key component of retirement plans.
Saving for retirement is a long-term process. In the same way, ownership
of a variable annuity is a long-term investment. As such, we look
forward to serving your financial needs now and into the future.
Today's economic conditions, both domestically and internationally,
provide a variety of opportunities and challenges for investors. The
portfolios which comprise the AARP Variable Annuity are poised to
address those opportunities and challenges. I hope you will be pleased
with the outstanding results produced by our investment managers--and
share my confidence in their ability to deliver performance results
which will help you reach your financial retirement goals.
If you have any questions about the portfolio results, or any other
aspect of your AARP Variable Annuity, please feel free to call one of
our Customer Service Annuity Specialists at 1-800-923-3334.
American Maturity Life is exclusively dedicated to helping AARP members
meet their retirement goals--and to this we remain firmly committed.
Sincerely,
/s/ Joseph J. Noto
Joseph J. Noto
Chief Operating Officer
<PAGE>
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Separate Account AMLVA
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American Maturity Life Insurance Company
Statement of Assets and Liabilities
December 31, 1997
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<TABLE>
<CAPTION>
Scudder
Variable Life Investment
Fund Money Market
Portfolio
Sub-Account
-----------
<S> <C>
Assets:
Investments:
Scudder Variable Life Investment Fund Money Market Portfolio
Shares 342,165
Cost $342,165
Market Value ...................................................... $ 342,165
Scudder Variable Life Investment Fund Bond Portfolio
Shares 81,246
Cost $549,421
Market Value ...................................................... --
Scudder Variable Life Investment Fund Capital Growth Portfolio
Shares 27,321
Cost $553,571
Market Value ...................................................... --
Scudder Variable Life Investment Fund Growth and Income Portfolio
Shares 179,296
Cost $1,999,818
Market Value ...................................................... --
Neuberger & Berman Partners Advisers Management Trust Portfolio
Shares 42,626
Cost $846,914
Market Value ...................................................... --
Dreyfus Variable Investment Fund Capital Appreciation Portfolio
Shares 46,411
Cost $1,271,683
Market Value ...................................................... --
Dreyfus Variable Investment Fund Small Cap Portfolio
Shares 7,314
Cost $437,966
Market Value ...................................................... --
Janus Aspen Series Balanced Portfolio
Shares 17,100
Cost $287,875
Market Value ...................................................... --
Janus Aspen Series Worldwide Growth Portfolio
Shares 56,443
Cost $1,315,752
Market Value ...................................................... --
Due from American Maturity Life Insurance Company ................... --
Receivable from fund shares sold .................................... 8
----------
Total Assets ........................................................ 342,173
----------
Liabilities:
Due to American Maturity Life Insurance Company ..................... 8
Payable for fund shares purchased ................................... --
----------
Total Liabilities ................................................... 8
----------
Net Assets (variable annuity contract liabilities) .................. $ 342,165
==========
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts:
Units owned by participants ......................................... 33,066
Unit values ......................................................... $10.347924
<CAPTION>
Scudder Scudder
Variable Life Investment Variable Life Investment
Fund Bond Fund Capital
Portfolio Growth Portfolio
Sub-Account Sub-Account
----------- -----------
<S> <C> <C>
Assets:
Investments:
Scudder Variable Life Investment Fund Money Market Portfolio
Shares 342,165
Cost $342,165
Market Value ...................................................... -- --
Scudder Variable Life Investment Fund Bond Portfolio
Shares 81,246
Cost $549,421
Market Value ...................................................... $ 558,160 --
Scudder Variable Life Investment Fund Capital Growth Portfolio
Shares 27,321
Cost $553,571
Market Value ...................................................... -- $ 563,641
Scudder Variable Life Investment Fund Growth and Income Portfolio
Shares 179,296
Cost $1,999,818
Market Value ...................................................... -- --
Neuberger & Berman Partners Advisers Management Trust Portfolio
Shares 42,626
Cost $846,914
Market Value ...................................................... -- --
Dreyfus Variable Investment Fund Capital Appreciation Portfolio
Shares 46,411
Cost $1,271,683
Market Value ...................................................... -- --
Dreyfus Variable Investment Fund Small Cap Portfolio
Shares 7,314
Cost $437,966
Market Value ...................................................... -- --
Janus Aspen Series Balanced Portfolio
Shares 17,100
Cost $287,875
Market Value ...................................................... -- --
Janus Aspen Series Worldwide Growth Portfolio
Shares 56,443
Cost $1,315,752
Market Value ...................................................... -- --
Due from American Maturity Life Insurance Company ................... -- 4,430
Receivable from fund shares sold .................................... 13 --
---------- ----------
Total Assets ........................................................ 558,173 568,071
---------- ----------
Liabilities:
Due to American Maturity Life Insurance Company ..................... 13 --
Payable for fund shares purchased ................................... -- 4,430
---------- ----------
Total Liabilities ................................................... 13 4,430
---------- ----------
Net Assets (variable annuity contract liabilities) .................. $ 558,160 $ 563,641
========== ==========
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts:
Units owned by participants ......................................... 51,585 45,151
Unit values ......................................................... $10.820260 $12.483490
</TABLE>
The accompanying notes are an integral part of this financial statement.
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<PAGE>
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Scudder Neuberger Dreyfus
Variable Life Investment & Berman Variable Investment Fund
Fund Growth Partners Capital
and Income Advisers Management Appreciation
Portfolio Trust Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
-- -- --
-- -- --
-- -- --
$2,058,322 -- --
-- $ 878,092 --
-- -- $1,294,868
-- -- --
-- -- --
-- -- --
-- 1,409 10,020
8 -- --
---------- ---------- ----------
2,058,330 879,501 1,304,888
---------- ---------- ----------
8 -- --
-- 1,409 10,020
---------- ---------- ----------
8 1,409 10,020
---------- ---------- ----------
$2,058,322 $ 878,092 $1,294,868
========== ========== ==========
169,811 71,192 109,859
$12.121271 $12.334172 $11.786664
Dreyfus Janus
Variable Investment Fund Janus Aspen Series
Small Aspen Series Worldwide
Capital Balanced Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
-- -- --
-- -- --
-- -- --
-- -- --
-- -- --
-- -- --
$ 417,930 -- --
-- $ 298,735 --
-- -- $1,320,210
-- 12,832 --
2,972 -- 5,658
---------- ---------- ----------
420,902 311,567 1,325,868
---------- ---------- ----------
2,972 -- 5,658
-- 12,832 --
---------- ---------- ----------
2,972 12,832 5,658
---------- ---------- ----------
$ 417,930 $ 298,735 $1,320,210
========== ========== ==========
35,318 25,899 115,748
$11.833201 $11.534865 $11.405913
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<PAGE>
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Separate Account AMLVA
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American Maturity Life Insurance Company
Statement of Operations
For the Period From Inception, March 17, 1997 to December 31, 1997
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Scudder
Variable Life Investment
Fund Money Market
Portfolio
Sub-Account
-----------
Investment income:
Dividends .......................................... $7,456
Expenses:
Mortality and expense undertakings ................. (1,217)
------
Net investment income (loss) ....................... 6,239
------
Capital gains income ................................ --
------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on security transactions .. --
Net unrealized appreciation (depreciation) of
investments during the period ..................... --
------
Net realized and unrealized gain (loss) on
investments ..................................... --
------
Net increase in net assets resulting from
operations: ..................................... $6,239
======
<TABLE>
<CAPTION>
Scudder
Scudder Variable Life Investment
Variable Life Investment Fund Capital
Fund Bond Growth
Portfolio Portfolio
Sub-Account Sub-Account
----------- -----------
<S> <C> <C>
Investment income:
Dividends ............................................. $ 6,904 $ 1,033
Expenses:
Mortality and expense undertakings .................... (1,263) (1,131)
------- --------
Net investment income (loss) .......................... 5,641 (98)
------- --------
Capital gains income ................................... -- --
------- --------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) on security transactions ..... 7 16
Net unrealized appreciation (depreciation) of
investments during the period ........................ 8,739 10,070
------- --------
Net realized and unrealized gain (loss) on
investments ........................................ 8,746 10,086
------- --------
Net increase in net assets resulting from
operations: ........................................ $14,387 $ 9,988
======= ========
</TABLE>
The accompanying notes are an integral part of this financial statement.
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<PAGE>
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Scudder Neuberger Dreyfus
Variable Life Investment & Berman Variable Investment Fund
Fund Growth Partners Capital
and Income Advisers Management Appreciation
Portfolio Trust Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
$ 8,946 $ -- $ 8,960
(4,154) (1,934) (2,881)
------- ------- -------
4,792 (1,934) 6,079
------- ------- -------
-- -- 752
------- ------- -------
(7,527) 48 397
58,504 31,178 23,185
------- ------- -------
50,977 31,226 23,582
------- ------- -------
$55,769 $29,292 $30,413
======= ======= =======
Dreyfus Janus Janus
Variable Investment Fund Aspen Series Aspen Series
Small Balanced Worldwide
Capital Growth Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
$ 453 $ 3,615 $ 5,047
(934) (724) (2,976)
------- ------- --------
(481) 2,891 2,071
------- ------- --------
23,882 -- --
------- ------- --------
(2,631) 28 (191)
(20,036) 10,860 4,458
------- ------- --------
(22,667) 10,888 4,267
------- ------- --------
$ 734 $13,779 $ 6,338
======= ======= ========
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Separate Account AMLVA
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American Maturity Life Insurance Company
Statement of Changes in Net Assets
For the period from inception, March 17, 1997 to December 31, 1997
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Scudder
Variable Life
Investment
Fund Money Market
Portfolio
Sub-Account
-----------
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 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 in net assets resulting from unit
transactions ............................................ 335,926
-----------
Total increase in net assets ............................. 342,165
Net Assets:
Beginning of period ...................................... --
-----------
End of period ............................................ $ 342,165
===========
<TABLE>
<CAPTION>
Scudder
Scudder Variable Life Investment
Variable Life Investment Fund Capital
Fund Bond Growth
Portfolio Portfolio
Sub-Account Sub-Account
----------- -----------
<S> <C> <C>
Operations:
Net investment income (loss) ................................ $ 5,641 $ (98)
Capital gains income ........................................ -- --
Net realized gain (loss) on security transactions ........... 7 16
Net unrealized appreciation (depreciation) of investments
during the period .......................................... 8,739 10,070
-------- --------
Net increase in net assets resulting from operations ........ 14,387 9,988
-------- --------
Unit transactions:
Purchases ................................................... 465,764 478,755
Net transfers ............................................... 79,564 75,274
Surrenders .................................................. (1,544) (128)
Other activity .............................................. (11) (248)
-------- --------
Net increase in net assets resulting from unit
transactions ............................................... 543,773 553,653
-------- --------
Total increase in net assets ................................ 558,160 563,641
Net Assets:
Beginning of period ......................................... -- --
-------- --------
End of period ............................................... $558,160 $563,641
======== ========
</TABLE>
The accompanying notes are an integral part of this financial statement.
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<PAGE>
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Scudder Neuberger Dreyfus
Variable Life Investment & Berman Variable Investment Trust
Fund Growth Partners Capital
and Income Advisers Management Appreciation
Portfolio Trust Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
$ 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
========== ======== ==========
Dreyfus Janus Janus
Variable Investment Trust Aspen Series Aspen Series
Small Balanced Worldwide
Capital Growth Growth
Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account
----------- ----------- -----------
$ (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
======== ======== ==========
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<PAGE>
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Separate Account AMLVA
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American Maturity Life Insurance Company
Notes to Financial Statements
December 31, 1997
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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). Security gains and
losses are 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 federal income tax regulations.
b) Security Valuation--The investment in shares of the Scudder Variable
Life Investment Fund Portfolios, Janus Aspen Series Portfolios,
Neuberger & Berman Advisers Management Trust Partners Portfolio and
Dreyfus Variable Investment Fund Portfolios are valued at the
closing net asset value per share as determined by the appropriate
Fund as of December 31, 1997.
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 the
applicable contractholders' accounts, in accordance with the terms
of the contracts.
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Report of Independent Public Accountants
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To American Maturity Life Insurance Company
Separate Account AMLVA and to the
Owners of Units of Interest Therein:
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We have audited the accompanying statement of assets and liabilities of
American Maturity Life Insurance Company Separate Account AMLVA (the Account)
as of December 31, 1997, and the related statements of operations and changes
in net assets for the period from inception, March 17, 1997, to December 31,
1997. 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 audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of American Maturity Life
Insurance Company Separate Account AMLVA as of December 31, 1997 and the
results of its operations and the changes in its net assets for the period
from inception, March 17, 1997, to December 31, 1997, in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 16, 1998
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