[Graphic Displaying Logos of Dreyfus, Janus, Scudder, and Neuberger & Berman]
The
AARP
Variable
Annuity
American Maturity Life
Insurance Company
ANNUAL REPORT
DECEMBER 31, 1998
[Logo with Words, "AARP Annuity Program"]
AMERICAN MATURITY LIFE
<PAGE>
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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
Worldwide Growth Portfolio
Balanced Portfolio
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST
Partners Portfolio
SCUDDER VARIABLE LIFE INVESTMENT FUND
Money Market Portfolio
Bond Portfolio
Growth & 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 of 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.
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200 Hopmeadow Street
Simsbury,
Connecticut 06089
Telephone (860)
843-3293
[Logo of American Maturity Life Insurance Company] Fax (860) 843-3623
Mailing Address:
P.O. Box 2999
Hartford, CT
06104-2999
February 18, 1999
Dear AARP Variable Annuity Certificate Owner:
Another exciting year for investors has just concluded. The stock market
proved to be resilient, continuing the bull market performance we have
been experiencing since 1995. The Dow Jones Industrial Average and the
Standard & Poors 500 Stock Index, two widely watched indicies of stock
market performance, posted increases in annual total returns of 18.1% and
28.5% respectively.
Americans planning for retirement continued to turn to variable annuities
as an investment vehicle to help them reach their retirement goals.
According to the Variable Annuity Research and Data Service (VARDS),
total variable annuity sales in 1998 were $98.8 billion, a 12% increase
over 1997, while year-end variable annuity assets totaled $778.4 billion,
a 22% increase.
Why the growing popularity of variable annuities? They offer a
combination of features to help you achieve your financial goals. Most
notably, variable annuities offer tax-deferral on earnings, a broad range
of professionally managed investment portfolios and a variety of income
options. Your AARP Variable Annuity includes all these features, plus
liquidity options. We believe, these features, combined with highly
competitive pricing, provide you with value and flexibility.
As a valued customer, we sincerely appreciate your business and the trust
and confidence you have placed in us. We pledge to continue to work to
earn that trust and confidence. Should you have any questions, about this
annual report or any 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.
Your satisfaction is our primary concern.
Sincerely,
[Signature of 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
Statements of Assets & Liabilities
December 31, 1998
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<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 3,999,281
Cost $3,999,281
Market Value .......................................................... $ 3,999,281 -- --
Scudder Variable Life Investment Fund Bond Portfolio
Shares 1,025,267
Cost $7,012,923
Market Value .......................................................... -- $ 7,053,834 --
Scudder Variable Life Investment Fund Capital Growth Portfolio
Shares 8,119,764
Cost $2,594,503
Market Value .......................................................... -- -- $ 2,868,344
Scudder Variable Life Investment Fund Growth and Income Portfolio
Shares 922,031
Cost $10,443,763
Market Value .......................................................... -- -- --
Neuberger & Berman Advisers Management Trust Partners Portfolio
Shares 314,237
Cost $6,042,120
Market Value .......................................................... -- -- --
Dreyfus Variable Investment Fund Capital Appreciation Portfolio
Shares 318,153
Cost $10,082,864
Market Value .......................................................... -- -- --
Dreyfus Variable Investment Fund Small Cap Portfolio
Shares 30,156
Cost $1,726,258
Market Value .......................................................... -- -- --
Janus Aspen Series Balanced Portfolio
Shares 172,864
Cost $3,322,552
Market Value .......................................................... -- -- --
Janus Aspen Series Worldwide Growth Portfolio
Shares 294,834
Cost $7,802,632
Market Value .......................................................... -- -- --
Due from American Maturity Life Insurance Company ...................... 29,254 141,913 --
Receivable from fund shares sold ....................................... -- -- 15,273
----------- ----------- -----------
Total Assets ........................................................... 4,028,535 7,195,747 2,883,617
----------- ----------- -----------
Liabilities:
Due to American Maturity Life Insurance Company ........................ -- -- 15,273
Payable for fund shares purchased ...................................... 29,254 141,913 --
----------- ----------- -----------
Total Liabilities ...................................................... 29,254 141,913 15,273
----------- ----------- -----------
Net Assets (variable annuity contract liabilities) ..................... $ 3,999,281 $ 7,053,834 $ 2,868,344
=========== =========== ===========
Deferred annuity contracts in the accumulation period:
Individual Sub-Accounts:
Units Owned by Participants ............................................ 370,199 616,937 188,053
Unit Values ............................................................ $ 10.803067 $ 11.433644 $ 15.252811
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Scudder Neuberger Dreyfus Dreyfus
Variable Life & Berman Variable Variable Janus Janus
Investment Fund Advisers Investment Fund Investment Fund Aspen Series Aspen Series
Growth and Income Management Trust Capital Appreciation Small Cap Balanced Worldwide Growth
Portfolio Partners Portfolio Portfolio Portfolio Portfolio Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------- -------------------- ---------------------- ----------------- ----------- ----------------
<S> <C> <C> <C> <C> <C>
-- -- -- -- -- --
-- -- -- -- -- --
-- -- -- -- -- --
$10,345,184 -- -- -- -- --
-- $5,948,506 -- -- -- --
-- -- $11,488,491 -- -- --
-- -- -- $1,625,706 -- --
-- -- -- -- $3,889,445 --
-- -- -- -- -- $8,576,729
63,208 -- 38,646 3,736 -- 25,005
-- 3,374 -- -- 10,867 --
----------- ---------- ----------- ---------- ---------- ----------
10,408,392 5,951,880 11,527,137 1,629,442 3,900,312 8,601,734
----------- ---------- ----------- ---------- ---------- ----------
-- 3,374 -- -- 10,836 --
63,208 0 38,646 3,736 -- 25,005
----------- ---------- ----------- ---------- ---------- ----------
63,208 3,374 38,646 3,736 10,836 25,005
----------- ---------- ----------- ---------- ---------- ----------
$10,345,184 $5,948,506 $11,488,491 $1,625,706 $3,889,476 $8,576,729
=========== ========== =========== ========== ========== ==========
805,216 466,749 754,971 143,503 253,245 588,239
$ 12.847720 $12.744539 $ 15.217132 $11.328714 $15.358564 $14.580355
</TABLE>
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<PAGE>
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Separate Account AMLVA
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American Maturity Life Insurance Company
Statements of Operations
For the Year Ended December 31, 1998
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<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 ................................................. $116,846 $175,767 $ 12,049
Expenses:
Mortality and expense undertakings ........................ (19,366) (28,887) (14,084)
-------- -------- --------
Net investment income (loss) ............................. 97,480 146,880 (2,035)
-------- -------- --------
Capital gains income ....................................... -- 3,650 42,529
-------- -------- --------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) on security transactions ......... -- 629 (5,726)
Net unrealized appreciation (depreciation) of
investments during the period ............................ -- 32,172 263,771
-------- -------- --------
Net gain (loss) on investments .......................... -- 32,801 258,045
-------- -------- --------
Net increase (decrease) in net assets resulting from
operations ............................................. $ 97,480 $183,331 $298,539
======== ======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 4 ---------------------------------------
<PAGE>
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<TABLE>
<CAPTION>
Scudder Neuberger Dreyfus Dreyfus
Variable Life & Berman Variable Variable Janus Janus
Investment Fund Advisers Investment Fund Investment Fund Aspen Series Aspen Series
Growth and Income Management Trust Capital Appreciation Small Cap Balanced Worldwide
Portfolio Partners Portfolio Portfolio Portfolio Portfolio Growth Portfolio
Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------- -------------------- ---------------------- ----------------- -------------- -----------------
<S> <C> <C> <C> <C> <C>
$ 128,040 $ 5,065 $ 61,576 $ 5 $ 81,227 $128,220
(51,689) (29,214) (49,073) (8,779) (14,376) (38,539)
--------- --------- ---------- -------- -------- --------
76,351 (24,149) 12,503 (8,774) 66,851 89,681
--------- --------- ---------- -------- -------- --------
177,059 159,547 843 26,295 10,381 49,802
--------- --------- ---------- -------- -------- --------
(14) (1,286) (983) (5,037) 512 (1,726)
(157,083) (124,793) 1,382,443 (80,516) 556,033 769,638
--------- --------- ---------- -------- -------- --------
(157,097) (126,079) 1,381,460 (85,553) 556,545 767,912
--------- --------- ---------- -------- -------- --------
$ 96,313 $ 9,319 $1,394,806 $(68,032) $633,777 $907,395
========= ========= ========== ======== ======== ========
</TABLE>
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<PAGE>
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Separate Account AMLVA
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American Maturity Life Insurance Company
Statements of Changes in Net Assets
For the Year Ended December 31, 1998
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<TABLE>
<CAPTION>
Scudder Scudder
Variable Life Investment Variable Life Investment
Fund Money Market Fund Bond
Portfolio Sub-Account Portfolio Sub-Account
-------------------------- --------------------------
<S> <C> <C>
Operations:
Net investment income (loss) ................................ $ 97,480 $ 146,880
Capital gains income ........................................ -- 3,650
Net realized gain (loss) on security transactions ........... -- 629
Net unrealized appreciation (depreciation) of
investments during the period .............................. -- 32,172
----------- ----------
Net increase (decrease) in net assets resulting from
operations ................................................. 97,480 183,331
----------- ----------
Unit transactions:
Purchases ................................................... 10,698,733 5,222,099
Net transfers ............................................... (7,086,472) 1,174,593
Surrenders for benefit payments and fees .................... (52,625) (84,349)
----------- ----------
Net increase (decrease) in net assets resulting from unit
transactions ............................................... 3,559,636 6,312,343
----------- ----------
Total increase (decrease) in net assets ..................... 3,657,116 6,495,674
Net assets:
Beginning of period ......................................... 342,165 558,160
----------- ----------
End of period ............................................... $ 3,999,281 $7,053,834
=========== ==========
- ---------------------------------------------------------------
<CAPTION>
Scudder
Variable Life Investment
Fund Capital Growth
Portfolio Sub-Account
-------------------------
<S> <C>
Operations:
Net investment income (loss) ................................ $ (2,035)
Capital gains income ........................................ 42,529
Net realized gain (loss) on security transactions ........... (5,726)
Net unrealized appreciation (depreciation) of
investments during the period .............................. 263,771
----------
Net increase (decrease) in net assets resulting from
operations ................................................. 298,539
----------
Unit transactions:
Purchases ................................................... 1,667,990
Net transfers ............................................... 426,611
Surrenders for benefit payments and fees .................... (88,437)
----------
Net increase (decrease) in net assets resulting from unit
transactions ............................................... 2,006,164
----------
Total increase (decrease) in net assets ..................... 2,304,703
Net assets:
Beginning of period ......................................... 563,641
----------
End of period ............................................... $2,868,344
==========
</TABLE>
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American Maturity Life Insurance Company
Statements of Changes in Net Assets
For the period from inception, March 17, 1997 to December 31, 1997
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<TABLE>
<CAPTION>
Scudder Scudder
Variable Life Investment Variable Life Investment
Fund Money Market Fund Bond
Portfolio Sub-Account Portfolio Sub-Account
-------------------------- --------------------------
<S> <C> <C>
Operations:
Net investment income (loss) ................................ $ 6,239 $ 5,641
Capital gains income ........................................ -- --
Net realized gain (loss) on security transactions ........... -- 7
Net unrealized appreciation (depreciation) of
investments during the period .............................. -- 8,739
------------ --------
Net increase (decrease) in net assets resulting from
operations ................................................. 6,239 14,387
------------ --------
Unit transactions:
Purchases ................................................... 1,398,582 465,764
Net transfers ............................................... (1,031,362) 79,564
Surrenders for benefit payments and fees .................... (31,277) (1,544)
Other activity .............................................. (17) (11)
------------ --------
Net increase (decrease) in net assets resulting from unit
transactions ............................................... 335,926 543,773
------------ --------
Total increase (decrease) in net assets ..................... 342,165 558,160
Net assets:
Beginning of period ......................................... -- --
------------ --------
End of period ............................................... $ 342,165 $558,160
============ ========
<CAPTION>
Scudder
Variable Life Investment
Fund Capital Growth
Portfolio Sub-Account
-------------------------
<S> <C>
Operations:
Net investment income (loss) ................................ $ (98)
Capital gains income ........................................ --
Net realized gain (loss) on security transactions ........... 16
Net unrealized appreciation (depreciation) of
investments during the period .............................. 10,070
--------
Net increase (decrease) in net assets resulting from
operations ................................................. 9,988
--------
Unit transactions:
Purchases ................................................... 478,755
Net transfers ............................................... 75,274
Surrenders for benefit payments and fees .................... (128)
Other activity .............................................. (248)
--------
Net increase (decrease) in net assets resulting from unit
transactions ............................................... 553,653
--------
Total increase (decrease) in net assets ..................... 563,641
Net assets:
Beginning of period ......................................... --
--------
End of period ............................................... $563,641
========
</TABLE>
The accompanying notes are an integral part of these financial statements.
- -------------------------------------- 6 ---------------------------------------
<PAGE>
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<TABLE>
<CAPTION>
Scudder Neuberger & Berman Dreyfus
Variable Life Investment Advisers Management Variable Investment Fund
Fund Growth and Income Trust Partners Capital Appreciation
Portfolio Sub-Account Portfolio Sub-Account Portfolio Sub-Account
- -------------------------- ----------------------- --------------------------
<S> <C> <C>
$ 76,351 $ (24,149) $ 12,503
177,059 159,547 843
(14) (1,286) (983)
(157,083) (124,793) 1,382,443
----------- ---------- -----------
96,313 9,319 1,394,806
----------- ---------- -----------
7,063,101 4,250,056 7,506,702
1,254,596 929,649 1,443,526
(127,148) (118,610) (151,411)
----------- ---------- -----------
8,190,549 5,061,095 8,798,817
----------- ---------- -----------
8,286,862 5,070,414 10,193,623
2,058,322 878,092 1,294,868
----------- ---------- -----------
$10,345,184 $5,948,506 $11,488,491
=========== ========== ===========
<CAPTION>
Dreyfus Janus Janus
Variable Investment Aspen Series Aspen Series
Fund Small Cap Balanced Worldwide Growth
Portfolio Sub-Account Portfolio Sub-Account Portfolio Sub-Account
- ----------------------- ----------------------- ----------------------
<S> <C> <C>
$ (8,774) $ 66,851 $ 89,681
26,295 10,381 49,802
(5,037) 512 (1,726)
(80,516) 556,033 769,638
---------- ---------- ----------
(68,032) 633,777 907,395
---------- ---------- ----------
1,181,613 2,272,711 5,236,711
150,817 798,826 1,274,902
(56,622) (114,573) (162,489)
---------- ---------- ----------
1,275,808 2,956,964 6,349,124
---------- ---------- ----------
1,207,776 3,590,741 7,256,519
417,930 298,735 1,320,210
---------- ---------- ----------
$1,625,706 $3,889,476 $8,576,729
========== ========== ==========
</TABLE>
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- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Scudder Neuberger & Berman Dreyfus
Variable Life Investment Advisers Management Variable Investment Fund
Fund Growth and Income Trust Partners 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
Fund Small Cap Balanced Worldwide Growth
Portfolio Sub-Account Portfolio Sub-Account Portfolio Sub-Account
- ----------------------- ----------------------- ----------------------
<S> <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>
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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, 1998
- --------------------------------------------------------------------------------
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 life 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 is 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 investments 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 December 31, 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. These expenses are reflected in surrenders for benefit
payments and fees on the accompanying statements of changes in net
assets.
- -------------------------------------- 8 ---------------------------------------
<PAGE>
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Report of Independent Public Accountants
- --------------------------------------------------------------------------------
To American Maturity Life Insurance Company
Separate Account AMLVA and to the
Owners of Units of Interest therein:
- --------------------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities of
American Maturity Life Insurance Company Separate Account AMLVA (Scudder
Variable Life Investment Fund Money Market Portfolio, Scudder Variable Life
Investment Fund Bond Portfolio, Scudder Variable Life Investment Fund Capital
Growth Portfolio, Scudder Variable Life Investment Fund Growth and Income
Portfolio, Neuberger & Berman Advisers Management Trust Partners Portfolio,
Dreyfus Variable Investment Fund Capital Appreciation Portfolio, Dreyfus
Variable Investment Fund Small Cap Portfolio, Janus Aspen Series Balanced
Portfolio, and Janus Aspen Series Worldwide Growth Portfolio) (collectively, the
Account) as of December 31, 1998, and the related statements of operations and
the statements of changes in net assets for the periods presented. 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 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 audits provide 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 the Account as of December 31,
1998, and the results of their operations and the changes in their net assets
for the periods presented in conformity with generally accepted accounting
principles.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 16, 1999
- -------------------------------------- 9 ---------------------------------------
<PAGE>
AML-85VAOO5A-2
