As filed with the Securities and Exchange Registration No. 333-56297
Commission on November 23, 1999 Registration No. 811-2512
-------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
-------------------------
POST-EFFECTIVE AMENDMENT NO. 11 TO
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
-------------------------
Variable Annuity Account B of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, TS31, Hartford, Connecticut 06156
Depositor's Telephone Number, including Area Code: (860) 273-4686
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, TS31, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
-------------------------
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 485
--------
X on December 1, 1999 pursuant to paragraph (b) of Rule 485
--------
<PAGE>
VARIABLE ANNUITY ACCOUNT B
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
LOCATION - PROSPECTUS DATED
MAY 3, 1999, AND AS AMENDED BY SUPPLEMENTS DATED
MAY 5, 1999, JUNE 1, 1999, SEPTEMBER 1, 1999, AND
FORM N-4 DECEMBER 1, 1999
ITEM NO. PART A (PROSPECTUS)
<S> <C> <C> <C>
1 Cover Page........................................... Cover Page
2 Definitions.......................................... Not Applicable
3 Synopsis............................................. Contract Overview; Fee Table, and as amended
4 Condensed Financial Information...................... Condensed Financial Information; Appendix IV -
Condensed Financial Information
5 General Description of Registrant, Depositor, and
Portfolio Companies.................................. Other Topics - The Company; Variable Annuity
Account B; Appendix III - The Funds, and as amended
6 Deductions and Expenses.............................. Fees, and as amended
7 General Description of Variable Annuity Contracts.... Contract Overview, and as amended
8 Annuity Period....................................... The Income Phase
9 Death Benefit........................................ Death Benefit, and as amended
10 Purchases and Contract Value......................... Purchase and Rights; Your Account Value
11 Redemptions.......................................... Your Right to Cancel; Systematic Distribution
Options
12 Taxes................................................ Taxation
13 Legal Proceedings.................................... Other Topics - Legal Matters and Proceedings
14 Table of Contents of the Statement of Additional
Information.......................................... Contents of the Statement of Additional Information
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LOCATION - STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 3, 1999, AND AS AMENDED BY SUPPLEMENT
DATED SEPTEMBER 1, 1999
FORM N-4 PART B (STATEMENT OF
ITEM NO. ADDITIONAL INFORMATION)
<S> <C> <C> <C>
15 Cover Page........................................... Cover page
16 Table of Contents.................................... Table of Contents
17 General Information and History...................... General Information and History
18 Services............................................. General Information and History; Independent Auditors
19 Purchase of Securities Being Offered................. Offering and Purchase of Contract
20 Underwriters......................................... Offering and Purchase of Contract
21 Calculation of Performance Data...................... Performance Data; Average Annual Total Return
Quotations, and as amended
22 Annuity Payments..................................... Income Phase Payments
23 Financial Statements................................. Financial Statements
</TABLE>
Part C (Other Information)
--------------------------
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
<PAGE>
PARTS A AND B
The Prospectus dated May 3, 1999 is incorporated in Part A of this
Post-Effective Amendment No. 11 by reference to Registrant's filing under Rule
497(c), as filed on May 6, 1999 (File No. 333-56297) and by reference to
Prospectus Supplement dated May 5, 1999, as filed in Post-Effective Amendment
No. 7 to the Registration Statement on Form N-4 (File No. 333-56297), as filed
on and declared effective on May 5, 1999, and by reference to Prospectus
Supplement dated June 1, 1999, as filed in Registrant's filing under Rule
497(c), on June 1, 1999, and by reference to three Prospectus Supplements each
dated September 1, 1999 as filed in Post-Effective Amendment No. 9 to the
Registration Statement on Form N-4 (File No. 333-56297), as filed on August 24,
1999 and declared effective on September 1, 1999.
The Statement of Additional Information (SAI) is incorporated in Part B of this
Post-Effective Amendment by reference to Registrant's filing under Rule 497(c),
as filed on May 5, 1999 (File No. 333-56297) and by reference to SAI Supplement
dated September 1, 1999, as filed in Post-Effective Amendment No. 9 to the
Registration Statement on Form N-4 (File No. 333-56297), on August 24, 1999 and
declared effective on September 1, 1999.
Three Prospectus Supplements to the Prospectus each dated December 1, 1999, are
included in Part A of this Post-Effective Amendment No. 11.
<PAGE>
VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement Dated December 1, 1999
to May 3, 1999 Prospectus
GENERAL DESCRIPTION OF GET H
Series H of the Aetna GET Fund (GET H) is an investment option that may be
available during the accumulation phase of the contract. Aetna Life Insurance
and Annuity Company (the Company, we, our) makes a guarantee, as described
below, when you direct money into GET H. Aeltus Investment Management, Inc.
serves as investment adviser to GET H.
We will offer GET H shares only during its offering period, which is scheduled
to run from December 15, 1999 through the close of business on March 14, 2000.
GET H may not be available under your contract, your plan or in your state.
Please read the GET H prospectus for a more complete description of GET H,
including its charges and expenses.
INVESTMENT OBJECTIVE OF GET H
GET H seeks to achieve maximum total return, without compromising a minimum
targeted return, by participating in favorable equity market performance during
the guarantee period.
GET H's guarantee period runs from March 15, 2000 through March 14, 2005. During
the offering period, all GET H assets will be invested in short-term
instruments, and during the guarantee period will be invested in a combination
of fixed income and equity securities.
THE GET FUND GUARANTEE
The guarantee period for GET H will end on March 14, 2005 which is GET H's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET H subaccount under the contract on the maturity date (as valued after
the close of business on March 14, 2005) will not be less than its value as
determined after the close of business on the last day of the offering period.
If the value on the maturity date is lower than it was on the last day of the
offering period, we will transfer funds from our general account to the GET H
subaccount to make up the difference. This means that if you remain invested in
GET H until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET H as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET H subaccount. The value of dividends or
distributions made by GET H during the guarantee period are not included in the
guarantee, nor does the guarantee promise that you will earn the fund's minimum
targeted return referred to in the investment objective.
If you withdraw or transfer funds from GET H before the maturity date, we will
process the transactions at the actual unit value next determined after we
receive your order. The guarantee will not apply to these amounts or to amounts
deducted as a maintenance fee, if applicable.
MATURITY DATE
Before the maturity date, we will send a notice to each contract holder who has
amounts in GET H. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET H
amounts. If you do not make a choice, on the maturity date we will transfer
your GET H amounts to another available series of the GET Fund that is
accepting deposits. If no GET Fund series is available, we will transfer your
GET H amounts to the fund or funds designated by the Company. We will make
these transfers as of the unit value next determined after the transfer.
X.GETHRETAIL-99 December 1999
<PAGE>
INCOME PHASE
GET H is not available during the income phase. You should not select this
option if you wish to begin income payments or to make other withdrawals or
transfers before the maturity date. You must transfer your GET H account value
to another available investment option before you may elect an income phase
payment option. As stated above, the Company's guarantee will not apply to
amounts you withdraw or transfer before the maturity date.
REINVESTMENT
Some contracts allow you to reinvest all or a portion of the proceeds after a
full withdrawal. If you withdraw amounts from GET H and then elect to reinvest
them, we will reinvest them in a GET Fund series that is then accepting
deposits, if one is available. If one is not available, we will reallocate your
GET H amounts among the other investment options in which you were invested, on
a pro rata basis.
The following information supplements the "Fee Table" contained in the
prospectus:
MAXIMUM FEES DEDUCTED FROM INVESTMENTS IN THE SEPARATE ACCOUNT
In addition to the amounts currently listed under the heading "Fee Table" in
the prospectus, we will make a daily deduction of a GET H Guarantee Charge,
equal on an annual basis to the percentage shown below, from the amounts
allocated to the GET H investment option:
<TABLE>
<S> <C>
GET H Guarantee Charge (deducted daily during the Guarantee Period) ..... 0.50%
Maximum Total Separate Account Expenses .................................. 1.90%(1)
</TABLE>
(1) The total separate account expenses that apply to your contract may be
lower. Please refer to the "Fee Table" section of your prospectus.
The following information supplements the "Fund Expense Table" contained in the
prospectus:
Aetna GET Fund Series H Annual Expenses
(As a percentage of the average net assets)
<TABLE>
<CAPTION>
Investment Total Fund Annual Expenses
Advisory Fees(2) Other Expenses(3) (after expense reimbursement)(4)
------------------ ------------------- -----------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series H 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET H prospectus.
- -----------------------
(2) The Investment Advisory Fee will be 0.25% during the offering period and
0.60% during the guarantee period.
(3) "Other Expenses" include an annual fund administrative fee of 0.075% of the
average daily net assets of GET H and any additional direct fund expenses.
(4) The investment adviser is contractually obligated through GET H's maturity
date to waive all or a portion of its investment advisory fee and/or its
administrative fee and/or to reimburse a portion of the fund's other
expenses in order to ensure that GET H's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is not expected that
GET H's actual expenses without this waiver or reimbursement will exceed
this amount.
<PAGE>
The following information supplements the "Hypothetical Examples" contained in
the prospectus.
HYPOTHETICAL EXAMPLES--AETNA GET FUND SERIES H
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the GET H
investment option under the contract (until GET H's maturity date) and assume a
5% annual return on the investment.(5)
<TABLE>
<CAPTION>
- ----------------------------- Example A Example B
> THESE EXAMPLES ARE PURELY
HYPOTHETICAL. If you withdraw your entire If at the end of the periods
account value at the end of shown you (1) leave your
> THEY SHOULD NOT BE the periods shown, you would entire account value invested
CONSIDERED A REPRESENTATION pay the following expenses, or (2) select an income phase
OF PAST OR FUTURE EXPENSES including any applicable early payment option, you would
OR EXPECTED RETURNS. withdrawal charge: pay the following expenses
(no early withdrawal charge ia
> ACTUAL EXPENSES AND/OR reflected):
RETURNS MAY BE MORE OR LESS
THAN THOSE SHOWN BELOW. 1 Year 3 Years 5 Years 1 Year 3 Years 5 Years
- ------------------------------- -------- --------- --------- -------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Aetna GET Fund Series H $90 $137 $177 $27 $83 $142
</TABLE>
- -----------------------
(5) The examples shown above reflect an annual mortality and expense risk charge
of 1.25%, an annual contract administrative expense charge of 0.15%, an
annual GET H guarantee charge of 0.50%, a $30 annual maintenance fee that
has been converted to a percentage of assets equal to 0.022%, and all
charges and expenses of the GET H Fund. Example A reflects an early
withdrawal charge of 7% of the purchase payments at the end of year 1, 6% at
the end of year 3, and 4% at the end of year 5. (The expenses that you would
pay under your contract may be lower. Please refer to the "Fee Table"
section of your prospectus.)
<PAGE>
APPENDIX
DESCRIPTION OF UNDERLYING FUNDS
Aetna GET Fund (Series H)
INVESTMENT OBJECTIVE
Seeks to achieve maximum total return without compromising a minimum targeted
return (Targeted Return) by participating in favorable equity market
performance during the guarantee period, from March 15, 2000 through March 14,
2005, the maturity date.
POLICIES
Prior to March 15, 2000, assets are invested entirely in short-term
instruments. After that date, assets are allocated between equities and fixed
income securities. Equities consist primarily of common stocks. Fixed income
securities consist primarily of short- to intermediate-duration U.S. Government
securities and may also consist of mortgage backed securities and corporate
obligations. The investment adviser uses a proprietary computer model to
determine the percentage of assets to allocate between the fixed and the equity
components. As the value of the equity component declines, more assets are
allocated to the fixed component.
RISKS
The principal risks of investing in Series H are those generally attributable
to stock and bond investing. The success of Series H's strategy depends on the
investment adviser's skill in allocating assets between the equity and fixed
components and in selecting investments within each component. Because Series H
invests in both stocks and bonds, it may underperform stock funds when stocks
are in favor and underperform bond funds when bonds are in favor. The risks
associated with investing in stocks include sudden and unpredictable drops in
the value of the market as a whole and periods of lackluster or negative
performance. The principal risk associated with investing in bonds is that
interest rates may rise, which generally causes bond prices to fall. If at the
inception of, or any time during, the guarantee period interest rates are low,
Series H assets may be largely invested in the fixed component in order to
increase the likelihood of achieving the Targeted Return at the maturity date.
The effect of low interest rates on Series H would likely be more pronounced at
the beginning of the guarantee period as the initial allocation of assets would
include more fixed income securities. In addition, if during the guarantee
period the equity markets experienced a major decline, Series H assets may
become largely invested in the fixed component in order to increase the
likelihood of achieving the Targeted Return at the maturity date. Use of the
fixed component reduces Series H's ability to participate as fully in upward
equity market movements, and therefore represents some loss of opportunity, or
opportunity cost, compared to a portfolio that is fully invested in equities.
Investment Adviser: Aeltus Investment Management, Inc.
X.GETHRETAIL-99 December 1999
<PAGE>
VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement dated December 1, 1999 to the Prospectus dated May 3, 1999 as
amended by
Supplement dated September 1, 1999
Aetna Variable Annuity--Group and Individual Deferred Variable Annuity Contracts
The information in this supplement updates and amends certain information
contained in the prospectus dated May 3, 1999 as amended by supplement dated
September 1, 1999. You should read this supplement along with the prospectus.
1. The following information replaces the "Option Packages" section on page 4 of
the prospectus:
Option Packages: There are three option packages available under the contract.
You select an option package at the time of application. Each option package is
distinct. The differences are summarized as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Option Package I Option Package II Option Package III
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Mortality and
Expense Risk
Charge(1): 0.80% 1.10% 1.25%
- ----------------------------------------------------------------------------------------------------------------------------------
Death Benefit(2) The greater of: The greatest of: Outside of New York: In New York:
on Death of the (1) The sum of all (1) The sum of all The greatest of: The greatest of:
Annuitant(3): payments made, payments made, (1) The sum of all (1) The sum of all
adjusted for adjusted for payments made, payments made,
amounts withdrawn amounts withdrawn adjusted for adjusted for
or applied to an or applied to an amounts withdrawn amounts withdrawn
income phase income phase or applied to an or applied to an
payment as of the payment as of the income phase income phase
claim date; or claim date; or payment as of the payment as of the
(2) The account value (2) The account value claim date; or claim date; or
on the claim date on the claim date; (2) The account value (2) The account value
or on the claim date; on the claim date;
(3) The "Step-up value" or or
on the claim date (3) The "Step-up value" (3) The "Step-up value"
on the claim date; on the claim date(4)
or
(4) The "Roll-up value"
on the claim date
- ----------------------------------------------------------------------------------------------------------------------------------
Minimum Initial Non- Non- Non-
Payment/Account Qualified: Qualified: Qualified: Qualified: Qualified: Qualified:
Value(5): $15,000 $1,500 $5,000 $1,500 $5,000 $1,500
- ----------------------------------------------------------------------------------------------------------------------------------
Free 10% of your account 10% of your account 10% of your account
Withdrawals(6): value each account value each account value each account year,
year, noncumulative. year, noncumulative. cumulative to a maximum 30%.
- ----------------------------------------------------------------------------------------------------------------------------------
Nursing Home Outside of In Outside of In Outside of In
Waiver--Waiver New York: New York: New York: New York: New York: New York:
of Early Withdrawal Not Not Not Not
Charge(7): Available Available Available Available Available Available
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) See "Fee Table" and "Fees."
(2) See "Death Benefit."
(3) When a contract holder is not the annuitant, the amount of the death benefit
is not the same as shown above under each option package. See "Death
Benefit." Therefore, contract holders who are not also the annuitant should
seriously consider whether Option Packages II and III are suitable for their
circumstances.
(4) For contracts issued in New York, the benefit payable upon the death of the
annuitant under Option Package III is the same as that described under
Option Package II. Therefore, contract holders of contracts issued in New
York should seriously consider whether Option Package III is suitable for
their circumstances.
(5) See "Purchase and Rights."
(6) See "Fees."
(7) See "Fees."
Form No.: X.56297-99-1 December 1999
<PAGE>
2. The following information replaces the "Early Withdrawal Charge" section on
page 7 of the prospectus:
Early Withdrawal Charge. (As a percentage of payments withdrawn.)
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- ------------------------------------------------------------------------------------------
Early Early
Years From Receipt Withdrawal Completed Account Withdrawal
of Payment Charge Years Charge
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- ------------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- ------------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- ------------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- ------------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- ------------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- ------------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------
FOR ALL CONTRACTS:
- ---------------------------------------------
Early
Years From Receipt Withdrawal
of Payment Charge
- ---------------------------------------------
<S> <C>
Less than 1 7%
- ---------------------------------------------
1 or more but less than 2 6%
- ---------------------------------------------
2 or more but less than 3 5%
- ---------------------------------------------
3 or more but less than 4 4%
- ---------------------------------------------
4 or more but less than 5 3%
- ---------------------------------------------
5 or more but less than 6 2%
- ---------------------------------------------
6 or more but less than 7 1%
- ---------------------------------------------
7 or more 0%
- ---------------------------------------------
</TABLE>
3. "For Contracts Issued Outside of the State of New York" is added to the top
of each of the hypothetical examples on pages 10 through 15 of the
prospectus.
<PAGE>
4. The following hypothetical examples for contracts issued in the state of New
York are added before the "Condensed Financial Information" section on page
16 of the prospectus:
For Contracts Issued in the State of New York:
Hypothetical Example: Option Package I
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ----------------------------------- Example A Example B
> These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
> They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
> Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples. 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ----------------------------------- ------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $70 $ 85 $103 $186 $16 $49 $ 85 $186
Aetna Bond VP $69 $ 82 $ 98 $176 $15 $47 $ 80 $176
Aetna Growth VP $71 $ 90 $111 $203 $18 $54 $ 93 $203
Aetna Growth and Income VP $70 $ 85 $102 $185 $16 $49 $ 85 $185
Aetna Index Plus Large Cap VP $68 $ 81 $ 95 $170 $14 $45 $ 78 $170
Aetna International VP $85 $130 $178 $336 $31 $94 $160 $336
Aetna Money Market VP $67 $ 77 $ 90 $158 $13 $42 $ 72 $158
Aetna Real Estate Securities VP $79 $112 $148 $279 $25 $76 $131 $279
Aetna Small Company VP $73 $ 94 $118 $218 $19 $59 $101 $218
AIM V.I. Capital Appreciation Fund $70 $ 87 $107 $195 $17 $52 $ 89 $195
AIM V.I. Growth Fund $71 $ 89 $110 $200 $17 $53 $ 92 $200
AIM V.I. Growth & Income Fund $70 $ 87 $106 $192 $16 $51 $ 88 $192
AIM V.I. Value Fund $70 $ 87 $106 $193 $17 $51 $ 89 $193
Fidelity VIP Equity-Income Portfolio $70 $ 85 $102 $185 $16 $49 $ 85 $185
Fidelity VIP Growth Portfolio $71 $ 88 $107 $196 $17 $52 $ 90 $196
Fidelity VIP High Income Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Fidelity VIP II Contrafund Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Janus Aspen Aggressive Growth
Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Balanced Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
Janus Aspen Growth Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Worldwide Growth
Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
MFS Total Return Series $73 $ 95 $119 $220 $19 $59 $102 $220
Oppenheimer Aggressive Growth
Fund/VA $71 $ 89 $109 $199 $17 $53 $ 91 $199
Oppenheimer Main Street Growth
& Income Fund/VA $72 $ 91 $113 $208 $18 $55 $ 96 $208
Oppenheimer Strategic Bond
Fund/VA $72 $ 91 $114 $209 $18 $56 $ 96 $209
Portfolio Partners MFS Emerging
Equities Portfolio $72 $ 92 $114 $210 $18 $56 $ 96 $210
Portfolio Partners MFS Research
Growth Portfolio $72 $ 93 $116 $214 $19 $57 $ 99 $214
Portfolio Partners MFS Value Equity
Portfolio $73 $ 94 $119 $219 $19 $59 $101 $219
Portfolio Partners Scudder
International Growth Portfolio $74 $ 98 $124 $230 $20 $62 $106 $230
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package II
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ----------------------------------- Example A Example B
> These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
> They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
> Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples. 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ----------------------------------- ------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $73 $ 94 $118 $218 $19 $ 59 $101 $218
Aetna Bond VP $72 $ 91 $114 $209 $18 $ 56 $ 96 $209
Aetna Growth VP $74 $ 99 $127 $235 $21 $ 63 $109 $235
Aetna Growth and Income VP $73 $ 94 $118 $217 $19 $ 58 $100 $217
Aetna Index Plus Large Cap VP $71 $ 90 $111 $203 $18 $ 54 $ 93 $203
Aetna International VP $88 $139 $192 $363 $34 $103 $174 $363
Aetna Money Market VP $70 $ 86 $105 $191 $16 $ 51 $ 88 $191
Aetna Real Estate Securities VP $82 $121 $163 $308 $28 $ 85 $146 $308
Aetna Small Company VP $76 $103 $134 $250 $22 $ 68 $116 $250
AIM V.I. Capital Appreciation Fund $74 $ 97 $122 $227 $20 $ 61 $105 $227
AIM V.I. Growth Fund $74 $ 98 $125 $232 $20 $ 63 $107 $232
AIM V.I. Growth & Income Fund $73 $ 96 $121 $225 $20 $ 60 $104 $225
AIM V.I. Value Fund $73 $ 96 $122 $226 $20 $ 61 $104 $226
Fidelity VIP Equity-Income Portfolio $73 $ 94 $118 $217 $19 $ 58 $100 $217
Fidelity VIP Growth Portfolio $74 $ 97 $123 $228 $20 $ 61 $105 $228
Fidelity VIP High Income Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Fidelity VIP II Contrafund Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Janus Aspen Aggressive Growth
Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Balanced Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
Janus Aspen Growth Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Worldwide Growth
Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
MFS Total Return Series $76 $104 $135 $252 $22 $ 68 $117 $252
Oppenheimer Aggressive Growth
Fund/VA $74 $ 98 $125 $231 $20 $ 62 $107 $231
Oppenheimer Main Street Growth
& Income Fund/VA $75 $100 $129 $239 $21 $ 65 $111 $239
Oppenheimer Strategic Bond Fund/VA $75 $101 $129 $240 $21 $ 65 $111 $240
Portfolio Partners MFS Emerging
Equities Portfolio $75 $101 $130 $241 $21 $ 65 $112 $241
Portfolio Partners MFS Research
Growth Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Portfolio Partners MFS Value Equity
Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Portfolio Partners Scudder
International Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package III
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ----------------------------------- Example A Example B
> These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
> They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
> Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples. 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ----------------------------------- ------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $74 $ 99 $126 $234 $20 $ 63 $108 $234
Aetna Bond VP $73 $ 96 $121 $225 $20 $ 60 $104 $225
Aetna Growth VP $76 $104 $134 $251 $22 $ 68 $117 $251
Aetna Growth and Income VP $74 $ 98 $126 $233 $20 $ 63 $108 $233
Aetna Index Plus Large Cap VP $73 $ 94 $119 $219 $19 $ 59 $101 $219
Aetna International VP $89 $143 $199 $377 $35 $107 $181 $377
Aetna Money Market VP $72 $ 91 $113 $208 $18 $ 55 $ 96 $208
Aetna Real Estate Securities VP $83 $126 $171 $323 $29 $ 90 $153 $323
Aetna Small Company VP $77 $108 $141 $265 $23 $ 72 $124 $265
AIM V.I. Capital Appreciation Fund $75 $101 $130 $242 $21 $ 66 $112 $242
AIM V.I. Growth Fund $76 $103 $133 $247 $22 $ 67 $115 $247
AIM V.I. Growth & Income Fund $75 $101 $129 $240 $21 $ 65 $111 $240
AIM V.I. Value Fund $75 $101 $130 $241 $21 $ 65 $112 $241
Fidelity VIP Equity-Income Portfolio $74 $ 98 $126 $233 $20 $ 63 $108 $243
Fidelity VIP Growth Portfolio $75 $101 $131 $243 $21 $ 66 $113 $243
Fidelity VIP High Income Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Fidelity VIP II Contrafund Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Janus Aspen Aggressive Growth
Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Balanced Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
Janus Aspen Growth Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Worldwide Growth
Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
MFS Total Return Series $77 $108 $142 $267 $24 $ 73 $125 $267
Oppenheimer Aggressive Growth
Fund/VA $75 $102 $132 $246 $22 $ 67 $115 $246
Oppenheimer Main Street Growth
& Income Fund/VA $76 $105 $136 $255 $22 $ 69 $119 $255
Oppenheimer Strategic Bond
Fund/VA $76 $105 $137 $256 $23 $ 69 $119 $256
Portfolio Partners MFS Emerging
Equities Portfolio $76 $105 $137 $257 $23 $ 70 $119 $257
Portfolio Partners MFS Research
Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
Portfolio Partners MFS Value Equity
Portfolio $77 $108 $142 $266 $24 $ 73 $124 $266
Portfolio Partners Scudder
International Growth Portfolio $78 $111 $147 $276 $25 $ 76 $129 $276
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
5. The following information replaces the "Early Withdrawal Charge Schedules"
section on page 24 of the prospectus:
Early Withdrawal Charge Schedules
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- ---------------------------------------------------------------------------------------------------------
Years From Receipt Early Withdrawal Completed Account Early Withdrawal
of Payment Charge Years Charge
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- ---------------------------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- ---------------------------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- ---------------------------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- ---------------------------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- ---------------------------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- -------------------------------------------------------
FOR ALL CONTRACTS
- -------------------------------------------------------
Years From Receipt Early Withdrawal
of Payment Charge
- -------------------------------------------------------
<S> <C>
Less than 1 7%
- -------------------------------------------------------
1 or more but less than 2 6%
- -------------------------------------------------------
2 or more but less than 3 5%
- -------------------------------------------------------
3 or more but less than 4 4%
- -------------------------------------------------------
4 or more but less than 5 3%
- -------------------------------------------------------
5 or more but less than 6 2%
- -------------------------------------------------------
6 or more but less than 7 1%
- -------------------------------------------------------
7 or more 0%
- -------------------------------------------------------
</TABLE>
6. The following information replaces the "First In, First Out" section on page
24 of the prospectus.
First In, First Out. The early withdrawal charge is calculated separately for
each payment withdrawn. For purposes of calculating your early withdrawal
charge, we consider that your first payment to the account (first in) is the
first you withdraw (first out).
Examples: For contracts other than Roth IRA contracts issued outside of the
state of New York, the early withdrawal charge is based upon the number of years
since the payment was received. If your initial payment was made three years
ago, we will deduct an early withdrawal charge equal to 6% of the portion of the
payment withdrawn.
For Roth IRA contracts issued outside of the state of New York, the early
withdrawal charge is based on the number of completed account years. If your
initial payment was made three years ago, we will deduct an early withdrawal
charge equal to 2% of the portion of the payment withdrawn.
For all contracts issued in the state of New York, the early withdrawal charge
is based upon the number of years since the payment was received, and if your
initial payment was made three years ago, we will deduct an early withdrawal
charge equal to 4% of the portion of the payment withdrawn.
In each case the next time you make a withdrawal we will access the early
withdrawal charge, if any, against the portion of the first payment you did not
withdraw and/or subsequent payments to your account in the order they were
received.
Earnings may be withdrawn after all payments have been withdrawn. There is no
early withdrawal charge for withdrawal of earnings.
7. The following information replaces the last paragraph of the "Nursing Home
Waiver" section on page 26 of the prospectus:
We will not waive the early withdrawal charge if the annuitant was in a nursing
care facility for at least one day during the two week period immediately
preceding or following the schedule effective date. The waiver will also not
apply to contracts issued in the state of New York or as otherwise prohibited by
state law.
<PAGE>
8. The following paragraph is added after the second paragraph in the "Roll-up
Value" section on page 35 of the prospectus:
The "roll-up value" is not available on contracts issued in the state of New
York. For contracts issued in the state of New York, the benefit payable upon
the death of the annuitant under Option Package III is the same as that
described under Option Package II. Therefore, contract holders of contracts
issued in New York should seriously consider whether Option Package III is
suitable for their circumstances.
Form No.: X.56297-99-1 December 1999
<PAGE>
VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement dated December 1, 1999 to the Prospectus dated May 3, 1999 as
amended by
Supplement dated September 1, 1999
Aetna Variable Annuity--Group and Individual Deferred Variable Annuity Contracts
The information in this supplement updates and amends certain information
contained in the prospectus dated May 3, 1999 as amended by supplement dated
September 1, 1999. You should read this supplement along with the prospectus.
1. The following information replaces the "Option Packages" section on page 4
of the prospectus:
Option Packages: There are three option packages available under the contract.
You select an option package at the time of application. Each option package is
distinct. The differences are summarized as follows:
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Option Package I Option Package II Option Package III
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Mortality and
Expense Risk
Charge(1): 0.80% 1.10% 1.25%
- ----------------------------------------------------------------------------------------------------------------------------------
Death Benefit(2) The greater of: The greatest of: Outside of New York: In New York:
on Death of the (1) The sum of all (1) The sum of all The greatest of: The greatest of:
Annuitant(3): payments made, payments made, (1) The sum of all (1) The sum of all
adjusted for adjusted for payments made, payments made,
amounts withdrawn amounts withdrawn adjusted for adjusted for
or applied to an or applied to an amounts withdrawn amounts withdrawn
income phase income phase or applied to an or applied to an
payment as of the payment as of the income phase income phase
claim date; or claim date; or payment as of the payment as of the
(2) The account value (2) The account value claim date; or claim date; or
on the claim date on the claim date; (2) The account value (2) The account value
or on the claim date; on the claim date;
(3) The "Step-up value" or or
on the claim date (3) The "Step-up value" (3) The "Step-up value"
on the claim date; on the claim
or date(4)
(4) The "Roll-up value"
on the claim date
- ----------------------------------------------------------------------------------------------------------------------------------
Minimum Initial Non- Non- Non-
Payment/Account Qualified: Qualified: Qualified: Qualified: Qualified: Qualified:
Value(5): $15,000 $1,500 $5,000 $1,500 $5,000 $1,500
- ----------------------------------------------------------------------------------------------------------------------------------
Free 10% of your account 10% of your account 10% of your account
Withdrawals(6): value each account value each account value each account year,
year, noncumulative. year, noncumulative. cumulative to a maximum 30%.
- ----------------------------------------------------------------------------------------------------------------------------------
Nursing Home Outside of In Outside of In Outside of In
Waiver--Waiver New York: New York: New York: New York: New York: New York:
of Early Withdrawal Not Not Not Not
Charge(7): Available Available Available Available Available Available
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) See "Fee Table" and "Fees."
(2) See "Death Benefit."
(3) When a contract holder is not the annuitant, the amount of the death benefit
is not the same as shown above under each option package. See "Death
Benefit." Therefore, contract holders who are not also the annuitant should
seriously consider whether Option Packages II and III are suitable for their
circumstances.
(4) For contracts issued in New York, the benefit payable upon the death of the
annuitant under Option Package III is the same as that described under
Option Package II. Therefore, contract holders of contracts issued in New
York should seriously consider whether Option Package III is suitable for
their circumstances.
(5) See "Purchase and Rights."
(6) See "Fees."
(7) See "Fees."
Form No.: X.AVAMH-99-2 December 1999
<PAGE>
2. The following information replaces the "Early Withdrawal Charge" section on
page 7 of the prospectus:
Early Withdrawal Charge. (As a percentage of payments withdrawn.)
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- ------------------------------------------------------------------------------------------
Early Early
Years From Receipt Withdrawal Completed Account Withdrawal
of Payment Charge Years Charge
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- ------------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- ------------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- ------------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- ------------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- ------------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- ------------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------
FOR ALL CONTRACTS:
- ---------------------------------------------
Early
Years From Receipt Withdrawal
of Payment Charge
- ---------------------------------------------
<S> <C>
Less than 1 7%
- ---------------------------------------------
1 or more but less than 2 6%
- ---------------------------------------------
2 or more but less than 3 5%
- ---------------------------------------------
3 or more but less than 4 4%
- ---------------------------------------------
4 or more but less than 5 3%
- ---------------------------------------------
5 or more but less than 6 2%
- ---------------------------------------------
6 or more but less than 7 1%
- ---------------------------------------------
7 or more 0%
- ---------------------------------------------
</TABLE>
3. "For Contracts Issued Outside of the State of New York" is added to the top
of each of the hypothetical examples on pages 10 through 15 of the
prospectus.
<PAGE>
4. The following hypothetical examples for contracts issued in the state of New
York are added before the "Condensed Financial Information" section on page
16 of the prospectus:
For Contracts Issued in the State of New York:
Hypothetical Example: Option Package I
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ----------------------------------- Example A Example B
> These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
> They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
> Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples. 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ----------------------------------- ------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $70 $ 85 $103 $186 $16 $49 $ 85 $186
Aetna Bond VP $69 $ 82 $ 98 $176 $15 $47 $ 80 $176
Aetna Growth VP $71 $ 90 $111 $203 $18 $54 $ 93 $203
Aetna Growth and Income VP $70 $ 85 $102 $185 $16 $49 $ 85 $185
Aetna Index Plus Large Cap VP $68 $ 81 $ 95 $170 $14 $45 $ 78 $170
Aetna International VP $85 $130 $178 $336 $31 $94 $160 $336
Aetna Money Market VP $67 $ 77 $ 90 $158 $13 $42 $ 72 $158
Aetna Real Estate Securities VP $79 $112 $148 $279 $25 $76 $131 $279
Aetna Small Company VP $73 $ 94 $118 $218 $19 $59 $101 $218
AIM V.I. Capital Appreciation Fund $70 $ 87 $107 $195 $17 $52 $ 89 $195
AIM V.I. Growth Fund $71 $ 89 $110 $200 $17 $53 $ 92 $200
AIM V.I. Growth & Income Fund $70 $ 87 $106 $192 $16 $51 $ 88 $192
AIM V.I. Value Fund $70 $ 87 $106 $193 $17 $51 $ 89 $193
Fidelity VIP Equity-Income Portfolio $70 $ 85 $102 $185 $16 $49 $ 85 $185
Fidelity VIP Growth Portfolio $71 $ 88 $107 $196 $17 $52 $ 90 $196
Fidelity VIP High Income Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Fidelity VIP II Contrafund Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Janus Aspen Aggressive Growth Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Balanced Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
Janus Aspen Growth Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Worldwide Growth Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
MFS Total Return Series $73 $ 95 $119 $220 $19 $59 $102 $220
Mitchell Hutchins Series Trust Growth
and Income Portfolio (Class I Shares) $77 $106 $139 $260 $23 $71 $121 $260
Mitchell Hutchins Series Trust Small
Cap Portfolio (Class I Shares) $86 $133 $183 $347 $32 $98 $166 $347
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I Shares) $76 $104 $134 $251 $22 $68 $117 $251
Oppenheimer Aggressive Growth
Fund/VA $71 $ 89 $109 $199 $17 $53 $ 91 $199
Oppenheimer Main Street Growth
& Income Fund/VA $72 $ 91 $113 $208 $18 $55 $ 96 $208
Oppenheimer Strategic Bond Fund/VA $72 $ 91 $114 $209 $18 $56 $ 96 $209
Portfolio Partners MFS Emerging
Equities Portfolio $72 $ 92 $114 $210 $18 $56 $ 96 $210
Portfolio Partners MFS Research
Growth Portfolio $72 $ 93 $116 $214 $19 $57 $ 99 $214
Portfolio Partners MFS Value Equity
Portfolio $73 $ 94 $119 $219 $19 $59 $101 $219
Portfolio Partners Scudder
International Growth Portfolio $74 $ 98 $124 $230 $20 $62 $106 $230
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package II
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ----------------------------------- Example A Example B
> These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
> They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
> Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples. 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ----------------------------------- ------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $73 $ 94 $118 $218 $19 $ 59 $101 $218
Aetna Bond VP $72 $ 91 $114 $209 $18 $ 56 $ 96 $209
Aetna Growth VP $74 $ 99 $127 $235 $21 $ 63 $109 $235
Aetna Growth and Income VP $73 $ 94 $118 $217 $19 $ 58 $100 $217
Aetna Index Plus Large Cap VP $71 $ 90 $111 $203 $18 $ 54 $ 93 $203
Aetna International VP $88 $139 $192 $363 $34 $103 $174 $363
Aetna Money Market VP $70 $ 86 $105 $191 $16 $ 51 $ 88 $191
Aetna Real Estate Securities VP $82 $121 $163 $308 $28 $ 85 $146 $308
Aetna Small Company VP $76 $103 $134 $250 $22 $ 68 $116 $250
AIM V.I. Capital Appreciation Fund $74 $ 97 $122 $227 $20 $ 61 $105 $227
AIM V.I. Growth Fund $74 $ 98 $125 $232 $20 $ 63 $107 $232
AIM V.I. Growth & Income Fund $73 $ 96 $121 $225 $20 $ 60 $104 $225
AIM V.I. Value Fund $73 $ 96 $122 $226 $20 $ 61 $104 $226
Fidelity VIP Equity-Income Portfolio $73 $ 94 $118 $217 $19 $ 58 $100 $217
Fidelity VIP Growth Portfolio $74 $ 97 $123 $228 $20 $ 61 $105 $228
Fidelity VIP High Income Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Fidelity VIP II Contrafund Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Janus Aspen Aggressive Growth Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Balanced Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
Janus Aspen Growth Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Worldwide Growth Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
MFS Total Return Series $76 $104 $135 $252 $22 $ 68 $117 $252
Mitchell Hutchins Series Trust Growth
and Income Portfolio (Class I Shares) $80 $115 $154 $290 $26 $ 80 $136 $290
Mitchell Hutchins Series Trust Small
Cap Portfolio (Class I Shares) $89 $142 $198 $374 $35 $106 $180 $374
Mitchell Hutchins Series Trust Tactical
Allocation Portfolio (Class I Shares) $79 $113 $149 $281 $25 $ 77 $132 $281
Oppenheimer Aggressive Growth
Fund/VA $74 $ 98 $125 $231 $20 $ 62 $107 $231
Oppenheimer Main Street Growth
& Income Fund/VA $75 $100 $129 $239 $21 $ 65 $111 $239
Oppenheimer Strategic Bond Fund/VA $75 $101 $129 $240 $21 $ 65 $111 $240
Portfolio Partners MFS Emerging
Equities Portfolio $75 $101 $130 $241 $21 $ 65 $112 $241
Portfolio Partners MFS Research
Growth Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Portfolio Partners MFS Value Equity
Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Portfolio Partners Scudder
International Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package III
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ----------------------------------- Example A Example B
> These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
> They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
> Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples. 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
- ----------------------------------- ------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $74 $ 99 $126 $234 $20 $ 63 $108 $234
Aetna Bond VP $73 $ 96 $121 $225 $20 $ 60 $104 $225
Aetna Growth VP $76 $104 $134 $251 $22 $ 68 $117 $251
Aetna Growth and Income VP $74 $ 98 $126 $233 $20 $ 63 $108 $233
Aetna Index Plus Large Cap VP $73 $ 94 $119 $219 $19 $ 59 $101 $219
Aetna International VP $89 $143 $199 $377 $35 $107 $181 $377
Aetna Money Market VP $72 $ 91 $113 $208 $18 $ 55 $ 96 $208
Aetna Real Estate Securities VP $83 $126 $171 $323 $29 $ 90 $153 $323
Aetna Small Company VP $77 $108 $141 $265 $23 $ 72 $124 $265
AIM V.I. Capital Appreciation Fund $75 $101 $130 $242 $21 $ 66 $112 $242
AIM V.I. Growth Fund $76 $103 $133 $247 $22 $ 67 $115 $247
AIM V.I. Growth & Income Fund $75 $101 $129 $240 $21 $ 65 $111 $240
AIM V.I. Value Fund $75 $101 $130 $241 $21 $ 65 $112 $241
Fidelity VIP Equity-Income Portfolio $74 $ 98 $126 $233 $20 $ 63 $108 $243
Fidelity VIP Growth Portfolio $75 $101 $131 $243 $21 $ 66 $113 $243
Fidelity VIP High Income Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Fidelity VIP II Contrafund Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Janus Aspen Aggressive Growth Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Balanced Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
Janus Aspen Growth Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Worldwide Growth Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
MFS Total Return Series $77 $108 $142 $267 $24 $ 73 $125 $267
Mitchell Hutchins Series Trust Growth
and Income Portfolio (Class I Shares) $81 $120 $161 $304 $27 $ 84 $144 $304
Mitchell Hutchins Series Trust Small
Cap Portfolio (Class I Shares) $90 $146 $205 $387 $36 $111 $187 $387
Mitchell Hutchins Series Trust Tactical
Allocation Portfolio (Class I Shares) $80 $117 $157 $296 $27 $ 82 $139 $296
Oppenheimer Aggressive Growth
Fund/VA $75 $102 $132 $246 $22 $ 67 $115 $246
Oppenheimer Main Street Growth
& Income Fund/VA $76 $105 $136 $255 $22 $ 69 $119 $255
Oppenheimer Strategic Bond Fund/VA $76 $105 $137 $256 $23 $ 69 $119 $256
Portfolio Partners MFS Emerging
Equities Portfolio $76 $105 $137 $257 $23 $ 70 $119 $257
Portfolio Partners MFS Research
Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
Portfolio Partners MFS Value Equity
Portfolio $77 $108 $142 $266 $24 $ 73 $124 $266
Portfolio Partners Scudder International
Growth Portfolio $78 $111 $147 $276 $25 $ 76 $129 $276
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
5. The following information replaces the "Early Withdrawal Charge Schedules"
section on page 24 of the prospectus:
Early Withdrawal Charge Schedules
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- ---------------------------------------------------------------------------------------------------------
Years From Receipt Early Withdrawal Completed Account Early Withdrawal
of Payment Charge Years Charge
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- ---------------------------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- ---------------------------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- ---------------------------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- ---------------------------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- ---------------------------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- -------------------------------------------------------
FOR ALL CONTRACTS
- -------------------------------------------------------
Years From Receipt Early Withdrawal
of Payment Charge
- -------------------------------------------------------
<S> <C>
Less than 1 7%
- -------------------------------------------------------
1 or more but less than 2 6%
- -------------------------------------------------------
2 or more but less than 3 5%
- -------------------------------------------------------
3 or more but less than 4 4%
- -------------------------------------------------------
4 or more but less than 5 3%
- -------------------------------------------------------
5 or more but less than 6 2%
- -------------------------------------------------------
6 or more but less than 7 1%
- -------------------------------------------------------
7 or more 0%
- -------------------------------------------------------
</TABLE>
6. The following information replaces the "First In, First Out" section on page
24 of the prospectus.
First In, First Out. The early withdrawal charge is calculated separately for
each payment withdrawn. For purposes of calculating your early withdrawal
charge, we consider that your first payment to the account (first in) is the
first you withdraw (first out).
Examples: For contracts other than Roth IRA contracts issued outside of the
state of New York, the early withdrawal charge is based upon the number of years
since the payment was received. If your initial payment was made three years
ago, we will deduct an early withdrawal charge equal to 6% of the portion of the
payment withdrawn.
For Roth IRA contracts issued outside of the state of New York, the early
withdrawal charge is based on the number of completed account years. If your
initial payment was made three years ago, we will deduct an early withdrawal
charge equal to 2% of the portion of the payment withdrawn.
For all contracts issued in the state of New York, the early withdrawal charge
is based upon the number of years since the payment was received, and if your
initial payment was made three years ago, we will deduct an early withdrawal
charge equal to 4% of the portion of the payment withdrawn.
In each case the next time you make a withdrawal we will access the early
withdrawal charge, if any, against the portion of the first payment you did not
withdraw and/or subsequent payments to your account in the order they were
received.
Earnings may be withdrawn after all payments have been withdrawn. There is no
early withdrawal charge for withdrawal of earnings.
7. The following information replaces the last paragraph of the "Nursing Home
Waiver" section on page 26 of the prospectus:
We will not waive the early withdrawal charge if the annuitant was in a nursing
care facility for at least one day during the two week period immediately
preceding or following the schedule effective date. The waiver will also not
apply to contracts issued in the state of New York or as otherwise prohibited by
state law.
<PAGE>
8. The following paragraph is added after the second paragraph in the "Roll-up
Value" section on page 35 of the prospectus:
The "roll-up value" is not available on contracts issued in the state of New
York. For contracts issued in the state of New York, the benefit payable upon
the death of the annuitant under Option Package III is the same as that
described under Option Package II. Therefore, contract holders of contracts
issued in New York should seriously consider whether Option Package III is
suitable for their circumstances.
Form No.: X.AVAMH-99-2 December 1999
<PAGE>
VARIABLE ANNUITY ACCOUNT B
PART C - OTHER INFORMATION
<TABLE>
<S> <C> <C>
Item 24. Financial Statements and Exhibits
- ------------------------------------------
(a) Financial Statements:
(1) Incorporated by reference in Part A:
Condensed Financial Information
(2) Incorporated by reference in Part B:
Financial Statements of Variable Annuity Account B:
- Statement of Assets and Liabilities as of December 31, 1998
- Statements of Operations and Changes in Net Assets for the years ended
December 31, 1998 and 1997
- Condensed Financial Information for the year ended December 31, 1998
- Notes to Financial Statements
- Independent Auditors' Report
Financial Statements of the Depositor:
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended December 31, 1998,
1997 and 1996
- Consolidated Balance Sheets as of December 31, 1998 and 1997
- Consolidated Statements of Changes in Shareholder's Equity for the years
ended December 31, 1998, 1997 and 1996
- Consolidated Statements of Cash Flows for the years ended December 31,
1998, 1997 and 1996
- Notes to Consolidated Financial Statements
</TABLE>
(b) Exhibits
<TABLE>
<S> <C> <C>
(1) Resolution of the Board of Directors of Aetna Life Insurance and
Annuity Company establishing Variable Annuity Account B(1)
(2) Not applicable
(3.1) Broker-Dealer Agreement(2)
(3.2) Alternative Form of Wholesaling Agreement and Related Selling
Agreement(3)
(4.1) Variable Annuity Contract (GM-VA-98)(2)
(4.2) Variable Annuity Contract Certificate (GMC-VA-98)(2)
(4.3) Endorsement (EVAGET98) to Variable Annuity Contract GM-VA-98 and
Variable Annuity Contract Certificate GMC-VA-98(4)
(4.4) Endorsement (EGET-99) to Variable Annuity Contract GM-VA-98 and
Variable Annuity Contract Certificate GMC-VA-98(5)
(5) Variable Annuity Contract Application(9.5.89-6(9/98))(6)
(6.1) Certificate of Incorporation of Aetna Life Insurance and Annuity
Company(7)
(6.2) Amendment of Certificate of Incorporation of Aetna Life
Insurance and Annuity Company(8)
</TABLE>
<PAGE>
<TABLE>
<S> <C>
(6.3) By-Laws as amended September 17, 1997 of Aetna Life Insurance
and Annuity Company(9)
(7) Not applicable
(8.1) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and AIM dated June 30, 1998(6)
(8.2) Service Agreement between Aetna Life Insurance and Annuity
Company and AIM effective June 30, 1998(6)
(8.3) Fund Participation Agreement by and among Aetna Life Insurance
and Annuity Company and Aetna Variable Fund, Aetna Variable
Encore Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna
GET Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series, Aetna Variable
Portfolios, Inc. on behalf of each of its series, and Aeltus
Investment Management, Inc. dated as of May 1, 1998(2)
(8.4) Amendment dated November 9, 1998 to Fund Participation Agreement
by and among Aetna Life Insurance and Annuity Company and Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of
its series, Aetna Variable Portfolios, Inc. on behalf of each of
its series, and Aeltus Investment Management, Inc. dated as of
May 1, 1998(10)
(8.5) Service Agreement between Aeltus Investment Management, Inc. and
Aetna Life Insurance and Annuity Company in connection with the
sale of shares of Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna GET
Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series, and Aetna
Variable Portfolios, Inc. on behalf of each of its series dated
as of May 1, 1998(2)
(8.6) Amendment dated November 4, 1998 to Service Agreement between
Aeltus Investment Management, Inc. and Aetna Life Insurance and
Annuity Company in connection with the sale of shares of Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of
its series and Aetna Variable Portfolios, Inc. on behalf of each
of its series dated as of May 1, 1998(10)
(8.7) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996 and March 1, 1996(8)
(8.8) Fifth Amendment dated as of May 1, 1997 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996 and March 1, 1996(11)
</TABLE>
<PAGE>
<TABLE>
<S> <C>
(8.9) Sixth Amendment dated November 6, 1997 to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996, March 1,
1996 and May 1, 1997(12)
(8.10) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996, March 1, 1996, May 1, 1997 and November 6, 1997(2)
(8.11) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1, 1996(8)
(8.12) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996 and March 1, 1996(11)
(8.13) Sixth Amendment dated as of January 20, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996, March 1, 1996 and May 1, 1997(13)
(8.14) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996, March 1, 1996, May 1, 1997 and January 20, 1998(2)
(8.15) Service Agreement between Aetna Life Insurance and Annuity
Company and Fidelity Investments Institutional Operations
Company dated as of November 1, 1995(14)
(8.16) Amendment dated January 1, 1997 to Service Agreement between
Aetna Life Insurance and Annuity Company and Fidelity
Investments Institutional Operations Company dated as of
November 1, 1995(11)
(8.17) Service Contract between Fidelity Distributors Corporation and
Aetna Life Insurance and Annuity Company dated May 2, 1997(10)
(8.18) Fund Participation Agreement among Janus Aspen Series and Aetna
Life Insurance and Annuity Company and Janus Capital Corporation
dated December 8, 1997(15)
(8.19) Amendment dated October 12, 1998 to Fund Participation Agreement
among Janus Aspen Series and Aetna Life Insurance and Annuity
Company and Janus Capital Corporation dated December 8, 1997(10)
</TABLE>
<PAGE>
<TABLE>
<S> <C>
(8.20) Service Agreement between Janus Capital Corporation and Aetna
Life Insurance and Annuity Company dated December 8, 1997(15)
(8.21) Fund Participation Agreement among MFS Variable Insurance Trust,
Aetna Life Insurance and Annuity Company and Massachusetts
Financial Services Company dated April 30, 1996, and amended on
September 3, 1996, March 14, 1997 and November 28, 1997(2)
(8.22) Fourth Amendment dated May 1, 1998 to the Fund Participation
Agreement by and among MFS Variable Insurance Trust, Aetna Life
Insurance and Annuity Company and Massachusetts Financial
Services Company dated April 30, 1996, and amended on September
3, 1996, March 14, 1997 and November 28, 1997(6)
(8.23) Fifth Amendment dated May 1, 1998 to Fund Participation
Agreement by and among MFS Variable Insurance Trust, Aetna Life
Insurance and Annuity Company and Massachusetts Financial
Services Company dated April 30, 1996, and amended on September
3, 1996, March 14, 1997 and November 28, 1997(16)
(8.24) Fifth Amendment dated July 1, 1999 to Fund Participation
Agreement by and among MFS Variable Insurance Trust, Aetna Life
Insurance and Annuity Company and Massachusetts Financial
Services Company dated April 30, 1996, and amended on September
3, 1996, March 14, 1997, November 28, 1997 and May 1, 1998
(8.25) Fund Participation Agreement dated May 1, 1999 between Aetna
Life Insurance and Annuity Company, Mitchell Hutchins Series
Trust, and Mitchell Hutchins Asset Management, Inc.(17)
(8.26) Service Agreement dated May 1, 1999 between Mitchell Hutchins
Asset Management, Inc. and Aetna Life Insurance and Annuity
Company(17)
(8.27) Fund Participation Agreement dated March 11, 1997 between Aetna
Life Insurance and Annuity Company and Oppenheimer Variable
Annuity Account Funds and Oppenheimer Funds, Inc.(18)
(8.28) Service Agreement effective as of March 11, 1997 between
Oppenheimer Funds, Inc. and Aetna Life Insurance and Annuity
Company(18)
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors
(11) Not applicable
(12) Not applicable
(13) Schedule for Computation of Performance Data(6)
(14) Not applicable
(15.1) Powers of Attorney(19)
(15.2) Authorization for Signatures(3)
</TABLE>
1. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75986), as filed on April 22, 1996.
2. Incorporated by reference to Registration Statement on Form N-4 (File No.
333-56297), as filed on June 8, 1998.
<PAGE>
3. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed on April 12, 1996.
4. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on September 14, 1998.
5. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on April
7, 1999.
6. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on August 4, 1998.
7. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-1 (File No. 33-60477), as filed on April 15, 1996.
8. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 11, 1997.
9. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-91846), as filed on October
30, 1997.
10. Incorporated by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on December 14, 1998.
11. Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on
September 29, 1997.
12. Incorporated by reference to Post-Effective Amendment No. 16 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 9, 1998.
13. Incorporated by Reference to Post-Effective Amendment No. 7 to Registration
Statement on Form S-6 (File No. 33-75248), as filed on February 24, 1998.
14. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-88720), as filed on June 28, 1996.
15. Incorporated by reference to Post-Effective Amendment No. 10 to
Registration Statement on Form N-4 (File No. 33-75992), as filed on
December 31, 1997.
16. Incorporated by reference to Post-Effective Amendment No. 4 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on February 16, 1999.
17. Incorporated by reference to Post-Effective Amendment No. 8 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on June 25, 1999.
18. Incorporated by reference to Post-Effective Amendment No. 27 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on April
16, 1997.
19. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form No. 4 (File No. 333-56297), as filed on February 25,
1999.
<PAGE>
Item 25. Directors and Officers of the Depositor
- ------------------------------------------------
<TABLE>
<CAPTION>
Name and Principal
Business Address* Positions and Offices with Depositor
- ------------------ ------------------------------------
<S> <C>
Thomas J. McInerney Director and President
Shaun P. Mathews Director and Senior Vice President
Catherine H. Smith Director, Chief Financial Officer and Senior Vice
President
Deborah Koltenuk Vice President, Corporate Controller, and Assistant
Treasurer
Therese M. Squillacote Vice President and Chief Compliance Officer
Kirk P. Wickman Senior Vice President, General Counsel and Corporate
Secretary
</TABLE>
* The principal business address of all directors and officers listed is 151
Farmington Avenue, Hartford, Connecticut 06156.
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
- ----------------------------------------------------------------------------
Attached is a listing of all persons directly or indirectly controlled by
or under common control with the Registrant. The listing indicates (1) the state
or other sovereign power under the laws of which the entity is organized, (2)
the percentage of voting securities owned or other basis of control by the
person, if any, immediately controlling it (percentages are rounded to the
nearest whole percentage and are based on ownership of voting rights), and (3)
its principal business.
September 30, 1999
COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Inc. CT (1) Publicly Held Holding Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna Services, Inc. CT (1) (*) Aetna Inc. 100% Holding Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare PA (1) (*) Aetna Inc. 100% Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Risk Indemnity Bermuda (1) (*) Aetna Inc. 100% Insurance
Company Limited
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance CT (1) (*) Aetna Services, Inc. 100% Life and Health Insurance
Company and Related Services
- ---------------------------------------------------------------------------------------------------------------------
Aetna Retirement CT (1) (*) Aetna Services, Inc. 100% Holding Company
Services, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna International, CT (1) (*) Aetna Services, Inc. 100% Holding Company for
Inc. International Subsidiaries
- ---------------------------------------------------------------------------------------------------------------------
Aetna Health and Life CT (1) (*) Aetna Services, Inc. 100% Life and Health Insurance
Insurance Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust I DE (4) (*) Aetna Services, Inc. 100% Business Trust
- ---------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust II DE (4) (*) Aetna Services, Inc. 100% Business Trust
- ---------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust III DE (4) (*) Aetna Services, Inc. 100% Business Trust
- ---------------------------------------------------------------------------------------------------------------------
Aetna Capital Trust IV DE (4) (*) Aetna Services, Inc. 100% Business Trust
- ---------------------------------------------------------------------------------------------------------------------
AUSHC Holdings, Inc. CT (1) (*) Aetna Services, Inc. 100% Holding Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Corporation (*) Fully Consolidated
(2) Partnership (**) One Line Consolidation
(3) Joint Venture (***) Not Consolidated
(4) Trust
(5) Limited Liability Company
+ Percentages are rounded to the nearest whole percent and are based on
ownership of voting rights.
1
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Aetna Foundation, Inc. CT (1) (***) Aetna Services, Inc. 100%(a) Supports Charitable
Scientific, Literary and
Educational Activities
- ---------------------------------------------------------------------------------------------------------------------
Imperial Fire & Marine U.K. (1) (***) Aetna Services, Inc. 10% Reinsurance
Re-Insurance Company
Limited
- ---------------------------------------------------------------------------------------------------------------------
Aetna Business CT (1) (*) Aetna Services, Inc. 100% Provides Business Services
Resources, Inc to External Clients
- ---------------------------------------------------------------------------------------------------------------------
AE Fifteen, Incorporated CT (1) (*) Aetna Services, Inc. 100% Shell Corp. for Interest in
Cogeneration
- ---------------------------------------------------------------------------------------------------------------------
Luettgens Limited CT (1) (*) Aetna Services, Inc. 100% Retail Specialty Store
- ---------------------------------------------------------------------------------------------------------------------
AE Housing Corp. CT (1) (*) Aetna Services, Inc. 100% Real Estate
- ---------------------------------------------------------------------------------------------------------------------
Aetna Capital L.L.C. DE (5) (*) Aetna Services, Inc. 95%(b) Finance - Limited Liability
Company
- ---------------------------------------------------------------------------------------------------------------------
A.S.I. Wings, L.L.C. DE (5) (*) Aetna Services, Inc. 100% General Business Corporation
- ---------------------------------------------------------------------------------------------------------------------
Aetna Realty CT (1) (*) Aetna Services, Inc. 100% Real Estate Investment
Investments I, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Properties I CT (2) (***) Aetna Realty 84%(c) Real Estate Investment
Limited Partnership Investments I, Inc.
- ---------------------------------------------------------------------------------------------------------------------
PHPSNE Parent DE (1) (*) AUSHC Holdings, Inc. 55% Holding Company
Corporation
- ---------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of CT (1) (*) PHPSNE Parent 100% Health Care
Southern New England, Corporation
Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(a) Nonstock Corporation
(b) Aetna Capital Holdings, Inc. owns 5% of this Limited Liability
Company.
(c) Aetna Realty Investments I, Inc. is a 1% general partner and an 83%
limited partner.
2
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
CMBS Holdings, Inc. TX (1) (*) Aetna Life Insurance 100% Real Estate Investment and
Company Management
- ---------------------------------------------------------------------------------------------------------------------
CMBS Holdings, Inc. - II CT (1) (*) Aetna Life Insurance 100% Real Estate
Company
- ---------------------------------------------------------------------------------------------------------------------
CMBS Holdings, L.L.C. CT (5) (*) Aetna Life Insurance 99%(d) Real Estate
Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna Real Estate CT (1) (*) Aetna Life Insurance 100% Acquire, Develop and Lease
Properties, Inc. Company Real Estate
- ---------------------------------------------------------------------------------------------------------------------
AE Fourteen, Inc. CT (1) (*) Aetna Life Insurance 100% Cogeneration
Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life Assignment CT (1) (*) Aetna Life Insurance 100% Assignment Company for
Company Company Structured Settlements
- ---------------------------------------------------------------------------------------------------------------------
Aetna/Area Corporation CT (1) (*) Aetna Life Insurance 100% Real Estate Investment and
Company Management
- ---------------------------------------------------------------------------------------------------------------------
Aetna Institutional CT (2) (**) Aetna Life Insurance 13%(e) Real Estate Investment
Investors I Limited Company
Partnership
- ---------------------------------------------------------------------------------------------------------------------
Shadow Ridge At Oak CA (2) (**) Aetna Life Insurance 80% Real Estate
Park Condominium Company
Associates
- ---------------------------------------------------------------------------------------------------------------------
BPC Equity, Inc. DE (1) (*) Aetna Life Insurance 100% General Business Corporation
Company
- ---------------------------------------------------------------------------------------------------------------------
BPC Equity, L.L.C. DE (5) (**) Aetna Life Insurance 99%(f) General Business Corporation
Company
- ---------------------------------------------------------------------------------------------------------------------
85 L.L.C. DE (5) (**) Aetna Life Insurance 100% General Business Corporation
Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(d) CMBS Holdings, Inc. II owns 1% of this Limited Liability Company.
(e) Aetna Real Estate Properties, Inc. is a 1% general partner.
(f) BPC Equity, Inc. owns 1% of this Limited Liability Company.
3
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Aetna Affordable CT (1) (*) Aetna Life Insurance 100% Real Estate Investment
Housing, Inc. Company
- ---------------------------------------------------------------------------------------------------------------------
AHP Holdings, Inc. CT (1) (*) Aetna Life Insurance 100% Holding Company
Company
- ---------------------------------------------------------------------------------------------------------------------
ALEC Coinvestment Fund DE (5) (**) Aetna Life Insurance 100% Real Estate
1, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Bay Area Mall, Inc. DE (1) (*) Aetna Life Insurance 100% Real Estate
Company
- ---------------------------------------------------------------------------------------------------------------------
455 Market Street CA (2) (**) Aetna Life Insurance 90%(g) Real Estate
Company
- ---------------------------------------------------------------------------------------------------------------------
Circulation L.L.C. CT (5) (**) Aetna Life Insurance 100% General Business Corporation
Company
- ---------------------------------------------------------------------------------------------------------------------
Koll Center Newport A CA (2) (**) Aetna Life Insurance 50%(h) Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Koll Center Newport CA (2) (**) Aetna Life Insurance 50%(i) Real Estate Investment
Number 8 Company
- ---------------------------------------------------------------------------------------------------------------------
Koll Center Newport CA (2) (**) Aetna Life Insurance 50%(j) Real Estate Investment
Number 9 Company
- ---------------------------------------------------------------------------------------------------------------------
Koll Center Newport CA (2) (**) Aetna Life Insurance 50%(k) Real Estate Investment
Number 10 Company
- ---------------------------------------------------------------------------------------------------------------------
Koll Center Newport CA (2) (**) Aetna Life Insurance 50%(l) Real Estate Investment
Number 11 Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(g) 89% general partner and 1% limited partner.
(h) Aetna Life Insurance Company is a 49% general partner and a 1%
limited partner.
(i) Aetna Life Insurance Company is a 49% general partner and a 1%
limited partner.
(j) Aetna Life Insurance Company is a 49% general partner and a 1%
limited partner.
(k) Aetna Life Insurance Company is a 49% general partner and a 1%
limited partner.
(l) Aetna Life Insurance Company is a 49% general partner and a 1%
limited partner.
4
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Koll Center Newport CA (3) (**) Aetna Life Insurance 60% Real Estate Investment
Number 14 Company
- ---------------------------------------------------------------------------------------------------------------------
Pinnacle McDowell DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
1111 Pasquinelli Dr. DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
1400 Busch Parkway, DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Hayward Industrial Park CT (2) (**) Aetna Life Insurance 99% Real Estate Investment
Associates Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna Hamilton IL (2) (**) Aetna Life Insurance 62% Real Estate
Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
Waterloo Associates NC (2) (**) Aetna Life Insurance 99%(m) Real Estate Investment
Limited Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
Gables At Farmington CT (2) (**) Aetna Life Insurance 60% Real Estate Investment
Associates Company
- ---------------------------------------------------------------------------------------------------------------------
Country Club Heights at MA (2) (**) Aetna Life Insurance 60% Real Estate Investment
Woburn Associates Company
- ---------------------------------------------------------------------------------------------------------------------
Carlyle Club Apartments DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Citation Club DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors, L.L.C Company
- ---------------------------------------------------------------------------------------------------------------------
Birtcher Aetna-Laguna CA (2) (**) Aetna Life Insurance 68% Real Estate Investment
Hills Company
- ---------------------------------------------------------------------------------------------------------------------
Harbor Business Park CA (2) (**) Aetna Life Insurance 99% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Ensenada De Las Colinas TX (2) (**) Aetna Life Insurance 99%(n) Real Estate Investment
I Associates Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(m) Aetna Life Insurance Company is a 99% general partner and Trumbull Three,
Inc. is a 1% limited partner.
(n) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% general partner.
5
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Trevose Hospitality, CT (1) (**) Aetna Life Insurance 100% Real Estate Investment
Inc. Company
- ---------------------------------------------------------------------------------------------------------------------
Oaks at Valley Ranch I TX (2) (**) Aetna Life Insurance 99%(o) Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Oaks at Valley Ranch II TX (2) (**) Aetna Life Insurance 99%(p) Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
KBC-RED Hill Limited CA (2) (**) Aetna Life Insurance 80% Real Estate Investment
Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
KBC-Eastside Limited AZ (2) (**) Aetna Life Insurance 80% Real Estate Investment
Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
Sturbridge Square DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Apartments Investors LLC Company
- ---------------------------------------------------------------------------------------------------------------------
900 North Stuart Street DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Stuart Park Associates, VA (5) (***) 900 North Stuart 50% Real Estate Holding Company
L.L.C. Street Investors
L.L.C.
- ---------------------------------------------------------------------------------------------------------------------
Trumbull One, Inc. CT (1) (*) Aetna Life Insurance 100% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Trumbull Three, Inc. CT (1) (*) Aetna Life Insurance 100% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Trumbull Four, Inc. CT (1) (*) Aetna Life Insurance 100% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Southfield Partners MD (2) (**) Aetna Life Insurance 99%(q) Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(o) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% general partner.
(p) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% general partner.
(q) Aetna Life Insurance Company is a 99% general partner and Trumbull Four,
Inc. is a 1% general partner.
6
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Lincoln Rancho CA (2) (**) Aetna Life Insurance 60% Real Estate Investment
Cucamonga Associates Company
- ---------------------------------------------------------------------------------------------------------------------
Metroplace Office DE (5) (***) Aetna Life Insurance 100% Real Estate Investment
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
1010 Executive Court, DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Becknell Properties IL (2) (**) Aetna Life Insurance 75% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
3365 Enterprise Avenue DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Cherry Hill Investors CT (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Evergreen Industrial DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Park Investors, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
1135 Arbor Drive DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Centrum Associates CA (2) (**) Aetna Life Insurance 65% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Tri-City Mall Associates AZ (2) (**) Aetna Life Insurance 50% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Southwest Financial AZ (2) (**) Aetna Life Insurance 60% Real Estate Investment
Associates Company
- ---------------------------------------------------------------------------------------------------------------------
B&H Ventures IV Limited CT (2) (**) Aetna Life Insurance 75% Real Estate Investment
Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
Champions Richland TX (2) (*) Aetna Life Insurance 99%(r) Real Estate Investment
Northcourte Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
Chris-Town Village AZ (2) (**) Aetna Life Insurance 50% Real Estate Investment
Associates Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(r) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% general partner.
7
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Arshaw Partners II TX (2) (**) Aetna Life Insurance 50% Real Estate Holding Company
Company
- ---------------------------------------------------------------------------------------------------------------------
Assembly Square Mall LLC DE (5) (**) Aetna Life Insurance 99%(s) Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Spectrum Fashion Center AZ (2) (**) Aetna Life Insurance 50% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Canyon Springs TX (2) (**) Aetna Life Insurance 100%(t) Real Estate Holding Company
Investment Partners L.P. Company
- ---------------------------------------------------------------------------------------------------------------------
Cambridgeside Galleria MA (2) (**) Aetna Life Insurance 50% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Stamford Town Center DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Rich-Taubman Associates MA (2) (***) Stamford Town Center 50% Real Estate Holding Company
Investors L.L.C.
- ---------------------------------------------------------------------------------------------------------------------
ADBI Partnership FL (2) (**) Aetna Life Insurance 30% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Pratt Street Hotel MD (2) (*) Aetna Life Insurance 99%(u) Real Estate Investment
Limited Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
737 North Michigan DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Avenue Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Meridian Business DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Campus Investors Company
I L.L.C.
- ---------------------------------------------------------------------------------------------------------------------
1501 Fourth Ave. WA (2) (**) Aetna Life Insurance 91%(v) Real Estate Investment
Limited Partnership Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(s) Aetna Life Insurance Company is a 99% general partner and Bay Area Mall,
Inc., is a 1% general partner.
(t) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% general partner.
(u) Aetna Life Insurance Company is a 99% general partner and Trumbull One,
Inc. is a 1% general partner.
(v) Aetna Life Insurance Company is a 90% general partner and a 1% limited
partner.
8
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Thace Associates MI (2) (**) Aetna Life Insurance 25% Real Estate Investment
Company
- ---------------------------------------------------------------------------------------------------------------------
Eastmeadow Distribution GA (2) (**) Aetna Life Insurance 99%(w) Real Estate Investment
Center Limited Company
Partnership
- ---------------------------------------------------------------------------------------------------------------------
Eastmeadow Distribution GA (2) (**) Aetna Life Insurance 99%(x) Real Estate Investment
Center Phase II Limited Company
Partnership
- ---------------------------------------------------------------------------------------------------------------------
777 Oak Lane, L.L.C. DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Company
- ---------------------------------------------------------------------------------------------------------------------
Azalea Mall, L.L.C. DE (5) (**) Aetna Life Insurance 100% Real Estate Holding Company
Company
- ---------------------------------------------------------------------------------------------------------------------
Southeast Second DE (1) (*) Aetna Life Insurance 100% Real Estate Investment
Avenue, Inc. Company
- ---------------------------------------------------------------------------------------------------------------------
1401 West 22nd Street DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Towns of Chapel Hill DE (2) (***) Aetna Life Insurance 99%(y) Real Estate Holding Company
Apartments, L.P. Company
- ---------------------------------------------------------------------------------------------------------------------
Freeport Office Center, DE (2) (***) Aetna Life Insurance 99%(z) Real Estate Holding Company
L.P. Company
- ---------------------------------------------------------------------------------------------------------------------
The Vinings at Delray DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Beach Apartments Company
Investors L.L.C.
- ---------------------------------------------------------------------------------------------------------------------
Central Trust Center OH (2) (**) Aetna Life Insurance 15% Real Estate Investment
Associates Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------
(w) Aetna Life Insurance Company is a 98% general partner and a 1%
limited partner.
(x) Aetna Life Insurance Company is a 98% general partner and a 1%
limited partner.
(y) Aetna Life Insurance Company is a 99% limited partner and Trumbull One,
Inc. is a 1% general partner.
(z) Aetna Life Insurance Company is a 99% limited partner and Trumbull One,
Inc. is a 1% general partner.
9
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
South Center I & II DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
South Center III & IV DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Quail Ridge Drive DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
3360 Enterprise Avenue DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Corporate Center II DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Dakota McDowell DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Meridian Business Campus DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors II L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Meridian Business Campus DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors III L.L.C. Compan
- ---------------------------------------------------------------------------------------------------------------------
Mountain View Crossing DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Parcel 6 Meridian DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Parkway Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
The Vintage at Hyland DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Hills Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Westlake Greens DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Apartments Investors, Company
LLC
- ---------------------------------------------------------------------------------------------------------------------
Airport Square Holdings DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
I, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Airport Square Holdings DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
III, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Airport Square Holdings DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
VI and VII L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Airport Square Holdings DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
VIII, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Airport Square Holdings DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
IX, L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Meridian at Carlyle DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Apartments Investors Company
L.L.C.
- ---------------------------------------------------------------------------------------------------------------------
2155 Louisiana Avenue DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Village Green of DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Rochester Apartments Company
Investors L.L.C.
- ---------------------------------------------------------------------------------------------------------------------
Novi Town Center DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Village Park of DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Mayfield Investors Company
L.L.C.
- ---------------------------------------------------------------------------------------------------------------------
8909 Purdue Road DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Brookdale Apartments DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Chevy Chase Pavilion DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Concourse Office Plaza DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Village Green of Ann DE (5) (***) Aetna Life Insurance 100% Real Estate Holding Company
Arbor Investors L.L.C. Company
- ---------------------------------------------------------------------------------------------------------------------
Capitol District Energy CT (2) (**) AE Fourteen, Inc. 50% Cogeneration of Electrical
Center Cogeneration Power
Associates
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Aetna Insurance Company CT (1) (*) AHP Holdings, Inc. 100% Insurance
of Connecticut
- ---------------------------------------------------------------------------------------------------------------------
Aetna Retirement CT (1) (*) Aetna Retirement 100% Holding Company
Holdings, Inc. Services, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance CT (1) (*) Aetna Retirement 100% Life Insurance, Pensions
and Annuity Company Holdings, Inc. and Annuities
- ---------------------------------------------------------------------------------------------------------------------
Aetna Retail Holding CT (1) (*) Aetna Retirement 100% Holding Company for Retail
Company, Inc. Holdings, Inc. Distribution Companies
- ---------------------------------------------------------------------------------------------------------------------
Aetna Services Holding CT (1) (*) Aetna Retirement 100% Holding Company for Service
Company, Inc. Holdings, Inc. Contract Companies
- ---------------------------------------------------------------------------------------------------------------------
Systematized Benefits CT (1) (*) Aetna Services 100% Third Party Administrator
Administrators, Inc. Holding Company, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aeltus Investment CT (1) (*) Aetna Investment 100% Investment Advisor
Management, Inc. Adviser holding
Company,Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency CT (1) (*) Aetna Retail Holding 100% Holding Company
Holding Company, Inc. Company, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Investment CT (1) (*) Aetna Retail Holding 100% Distribute Securities
Services, Inc. Company, Inc. Products - ALIAC and
Outside Funds
- ---------------------------------------------------------------------------------------------------------------------
Aetna Financial CT (1) (*) Aetna Retirement 100% Broker-Dealer and
Services, Inc. Holdings, Inc. Investment Advisor
- ---------------------------------------------------------------------------------------------------------------------
FNI International, Inc. CA (1) (*) Aetna Retail Holding 100% Holding Company
Company, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Investment CT (1) (*) Aetna Life Insurance 100% Holding Company for
Adviser Holding Company, and Annuity Company Investment Adviser Companies
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Insurance Company CT (1) (*) Aetna Life Insurance 100% Write/Reinsure Life and
of America and Annuity Company Annuity Business
- ---------------------------------------------------------------------------------------------------------------------
Aetna New Series Fund, MD (1) (**) Aetna Life Insurance 100% Regulated Investment
Inc. and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Aetna Income Shares MA (4) (**) Aetna Life Insurance 99% Regulated Investment
and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore MA (4) (**) Aetna Life Insurance 100% Regulated Investment
Fund and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Aetna GET Fund MA (4) (**) Aetna Life Insurance 100% Regulated Investment
and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Aetna Variable MD (1) (**) Aetna Life Insurance 100% Regulated Investment
Portfolios, Inc. and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Aetna Variable Fund MA (4) (**) Aetna Life Insurance 100% Regulated Investment
and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Aetna Generation MD (1) (**) Aetna Life Insurance 100% Regulated Investment
Portfolios, Inc. and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc. MD (1) (**) Aetna Life Insurance 100% Regulated Investment
and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Aetna Series Fund, Inc. MD (1) (**) Aetna Life Insurance 43%(aa) Regulated Investment
and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. MD (1) (**) Aetna Life Insurance 97%(bb) Regulated Investment
and Annuity Company Company (Mutual Fund)
- ---------------------------------------------------------------------------------------------------------------------
Financial Network CA (1) (*) FNI International, 100% Broker/Dealer
Investment Corporation Inc.
- ---------------------------------------------------------------------------------------------------------------------
Financial Network HI (1) (*) FNI International, 100% Solicitation of Insurance
Investment Corporation Inc. Business
of Hilo, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Financial Network HI (1) (*) FNI International, 100% Solicitation of Insurance
Investment Corporation Inc. Business
of Kauai, Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(aa) Aetna Life Insurance Company owns 2% of Aetna Series Fund, Inc.
(bb) Aetna Insurance Company of America owns 3% of Portfolio Partners, Inc.
13
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
FN Insurance Agency of MA (1) (*) FNI International, 100% Solicitation of Insurance
Massachusetts, Inc. Inc. Business
- ---------------------------------------------------------------------------------------------------------------------
FN Insurance Services, CA (1) (*) FNI International, 100% Solicitation of Insurance
Inc. Inc. Business
- ---------------------------------------------------------------------------------------------------------------------
FN Insurance Services AL (1) (*) FNI International, 100% Solicitation of Insurance
of Alabama, Inc. Inc. Business
- ---------------------------------------------------------------------------------------------------------------------
FN Insurance Services NV (1) (*) FNI International, 100% Solicitation of Insurance
of Nevada, Inc. Inc. Business
- ---------------------------------------------------------------------------------------------------------------------
Financial Network HI (1) (*) Financial Network 100% Solicitation of Insurance
Investment Corporation Investment Corporation Business
of Hawaii
- ---------------------------------------------------------------------------------------------------------------------
Aetna Investment Bermuda (1) (*) Aeltus Investment 100% Holding Company
Management (Bermuda) Management, Inc.
Holdings Limited
- ---------------------------------------------------------------------------------------------------------------------
Aeltus Trust Company CT (1) (*) Aeltus Investment 100% Fiduciary Powers re Banking
Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aeltus Capital, Inc. CT (1) (*) Aeltus Investment 100% Broker-Dealer Related
Management, Inc. Functions
- ---------------------------------------------------------------------------------------------------------------------
China Dynamic Hong Kong (1) (**) Aetna Investment 50% Establish and Manage
Investment Management Management (Bermuda) Collective Investment Scheme
(Hong Kong) Limited Holdings Limited
- ---------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency, CT (1) (*) Aetna Insurance 100% Insurance Agency for the
Inc. Agency Holding Marketing of Registered and
Company, Inc. Nonregistered Insurance
Products
- ---------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency MA (1) (*) Aetna Insurance 100% Insurance Agency for the
of Massachusetts, Inc. Agency Holding Marketing of Registered and
Company, Inc. Nonregistered Insurance
Products
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Insurance Agency AL (1) (*) Aetna Insurance 100% Insurance Agency for the
of Alabama, Inc. Agency Holding Marketing of Registered and
Company, Inc. Nonregistered Insurance
Products
- ---------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency Ohio (1) (*) Aetna Insurance 90%(cc) Insurance Agency for the
of Ohio, Inc. Agency Holding Marketing of Registered and
Company, Inc. Nonregistered Insurance
Products
- ---------------------------------------------------------------------------------------------------------------------
Aetna International Hong Kong (1) (*) Aetna International, 100% Holding Company for
Holdings (Hong Kong) I Inc. Insurance and Financial
Limited Services
- ---------------------------------------------------------------------------------------------------------------------
East Asia Aetna Bermuda (1) (**) Aetna International, 50% Life Disability and
Insurance Company Inc. Employee Benefits Ins. in
(Bermuda) Ltd. H.K.
- ---------------------------------------------------------------------------------------------------------------------
Aetna International CT (1) (*) Aetna International, 100% Investment Management
Fund Management Inc. Inc. Services
- ---------------------------------------------------------------------------------------------------------------------
Aetna Information PRC (1) (*) Aetna International, 100% Information Services Company
Technology (Guanghzou) Inc.
Limited
- ---------------------------------------------------------------------------------------------------------------------
AII 1, L.L.C. CT (1) (**) Aetna International, 100% Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
AII 2, L.L.C. CT (1) (**) Aetna International, 100% Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
AII 3, L.L.C. CT (1) (**) Aetna International, 100% Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
AII 4, L.L.C. CT (1) (**) Aetna International, 100% Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Holdings (Cayman) Cayman (1) (**) Aetna International, 100% Insurance Company
Ltd. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Argentina S.A. Argentina (1) (*) Aetna International, 100% Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
ALICA Holdings, Inc. CT (1) (*) Aetna International, 80% Dedicated Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance CT (1) (*) Aetna International, 100% Life Insurance
Company of America Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(cc) Non-voting interest
15
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna International Hong Kong (1) (*) Aetna International, 100% Holding Company
Holdings (Hong Kong) Inc.
II Limited
- ---------------------------------------------------------------------------------------------------------------------
Aetna Internacional y Mexico (1) (*) Aetna International, 64%(dd) Holding Company
Compania, S. de R.L. de Inc.
C.V.
- ---------------------------------------------------------------------------------------------------------------------
Aetna S.A. Chile (1) (*) Aetna International, 100% Holding Co.
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Arcella Limited Hong Kong (1) (*) Aetna International, 100% Investment & Holding Co.
Inc. for Aetna's Asia Pacific
Operations
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life & Casualty Bermuda (1) (*) Aetna International, 100% Insurance, Guaranteed and
Bermuda Limited Inc. Indemnity Business
- ---------------------------------------------------------------------------------------------------------------------
Inversiones Mercantil Venezuela (1) (*) Aetna International, 50% Insurance Company
Aetna, C.A. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Heart Investment Taiwan (1) (*) Aetna Life Insurance 80% Holding Company
Holdings Limited Company of America
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life and Casualty Netherlands Antilles Aetna International, 100% Finance Investment Company
International Finance (1) (*) Inc.
N.V.
- ---------------------------------------------------------------------------------------------------------------------
Sul America Aetna Brazil(1) (**) Aetna International, 49% Insurance
Seguros de Previdencia Inc.
S.A.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Capital Holdings, CT (1) (*) Aetna International, 100% Holding Company
Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Securities Taiwan (1) (*) Aetna International, 80% Securities Investment
Investment Management Inc. Advisor
(Taiwan) Ltd.
- ---------------------------------------------------------------------------------------------------------------------
AE Five Incorporated CT (1) (*) Aetna International, 100% Holding Company
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Powszechne Towarzystwo Poland (1) (*) Aetna International, 40% Pension Fund Corporation
Emerytalne PBK Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(dd) AE Five, Inc. owns 36% of Aetna Internacional y Compania,
S. de R.L. de C.V.
16
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Pacific-Aetna Life PRC (3) (**) Aetna International, 50%(ee) Life Insurance
Insurance Co., Ltd. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna MPF Limited Hong Kong (1) (*) Aetna International, 100% Investment Management &
Inc. Advisory Services for
Individual Clients and
Investment Funds
- ---------------------------------------------------------------------------------------------------------------------
Aetna Canada Holdings Canada (1) (*) Aetna International, 100% Investment Holding Company
Limited Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Health Canada (1) (*) Aetna International, 100% Health Investment Company
Investments Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Investment Taiwan (1) (*) Aetna International, 80% Provide Non-Security
Management (Taiwan) Inc. Business and Investment
Limited Advice
- ---------------------------------------------------------------------------------------------------------------------
Aetna International New Zealand (1) (*) Aetna International, 100% Holding Company
(N.Z.) Limited Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Investment Hong Kong (1) (*) Aetna International, 100% Investment Holding Company
Management (F.E.) Inc.
Holdings Limited
- ---------------------------------------------------------------------------------------------------------------------
Osatspa Insurance Co. Thailand (1) (**) Aetna International, 20% Holding Company
Ltd. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Osatspa Life Insurance Thailand (1) (**) Aetna International, 80% Life Insurance
Co., Ltd. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Philippine Philippine (1) (*) Aetna International, 100% Holding Company
Ventures, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
First Canadian Health Canada (1) (**) Aetna Health 49% Managed Health Services
Management Corporation, Investments, Inc.
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Philippine (1) (*) Aetna Philippine 100% Life Insurance
Inc. Ventures, Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(ee) Aetna Life Insurance Company owns 1% of Pacific - Aetna Life
Insurance Co. Ltd.
17
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Healthcare, Inc. Philippines (1) (*) Aetna Philippine 100% Insurance
Ventures, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Blue Cross (Asia Hong Kong (1) (**) Aetna International 35%(ff) Underwriter Casualty and
Pacific) Insurance Ltd. Holdings (Hong Kong) General Insurance in Hong
I Limited Kong and Macau
- ----------------------------------------------------------------------------------------------------------------------
East Asia Aetna Hong Kong (1) (**) East Asia Aetna 100% Management Services to
Services Company Insurance Company Associate Companies
Limited (Bermuda) Ltd.
- ----------------------------------------------------------------------------------------------------------------------
PT Aetna Life Insurance Indonesia (1) (**) Aetna Life Insurance 80% Limited Liability Life
Indonesia Company of America Insurance Company
- ----------------------------------------------------------------------------------------------------------------------
Daya Aetna (Malaysia) Malaysia (1) (*) Aetna International 82%(gg) Holding Company
SDN. BHD. Holdings (Hong Kong)
II Limited
- ----------------------------------------------------------------------------------------------------------------------
Genesis Healthcare SDN, Malaysia (1) (*) Daya Aetna (Malaysia) 100% Health Insurance Company
BHD SDN, BHD
- ----------------------------------------------------------------------------------------------------------------------
Aetna Trust Limited Hong Kong (1) (*) Aetna International, 100% Financial Services Company
Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna Universal Malaysia (1) (*) Daya Aetna (Malaysia) 100% Individual Life,
Insurance Berhad SDN. BHD. Home Service, Group and
General Insurance
- ----------------------------------------------------------------------------------------------------------------------
Aetna Heart Co., Ltd. Taiwan (1) (**) Aetna Heart 100% Trading Company - Marketing
Investment Holdings of Gifts and Souvenirs
Limited
- ----------------------------------------------------------------------------------------------------------------------
Aetna South Life Agency Taiwan (1) (**) Aetna Heart 100% Administrative Support
Co., Ltd. Investment Holdings
Limited
- ----------------------------------------------------------------------------------------------------------------------
Huei Hong Securities Taiwan (1) (*) Aetna Heart 20% Securities Trading
Co., Ltd. Investment Holdings
Limited
- ----------------------------------------------------------------------------------------------------------------------
Aetna Heart Publishing Taiwan (1) (*) Aetna Heart 100% Trading Company
Company Ltd. Investment Holdings
Limited
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(ff) East Asia Aetna Insurance Company (Bermuda) Ltd. owns 30% of
Blue Cross (Asia Pacific) Insurance Ltd.
(gg) Arcelia Limited owns 18% of Daya Aetna (Malaysia) SDN. BHD.
18
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Seguros Mercantil, C.A. Venezuela (1) (*) Inveriones Mercantil 100% Insurance Company
Aetna, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Inversiones Veninversa, Venezuela (1) (*) Seguros Mercantil, 100% Holding Company
C.A. C.A.
- ---------------------------------------------------------------------------------------------------------------------
Estacionamiento Vence, Venezuela (1) (*) Seguros Mercantil, 100% Holding Company
C.A. C.A.
- ---------------------------------------------------------------------------------------------------------------------
Aetna (Netherlands) Netherlands (1) (*) Aetna Life and 100% Finance Company
Holdings B.V. Casualty
International Finance
N.V.
- ---------------------------------------------------------------------------------------------------------------------
Travelguard Limited Hong Kong (1) (*) Blue Cross (Asia 100% Insurance Agent
Pacific) Insurance
Ltd.
- ---------------------------------------------------------------------------------------------------------------------
Toursafe Limited Hong Kong (1) (*) Blue Cross (Asia 100% Insurance Agent
Pacific) Insurance
Ltd.
- ---------------------------------------------------------------------------------------------------------------------
Travelsafe Limited Hong Kong (1) (*) Blue Cross (Asia 100% Insurance Agent for its
Pacific) Insurance Ultimate Holding Company
Ltd.
- ---------------------------------------------------------------------------------------------------------------------
Multiasistencia, S.A. Mexico (1) (**) Seguros Bancomer, 50%(hh) Administrative Services in
de C.V. S.A. de C.V. Connection with Insurance
Claims
- ---------------------------------------------------------------------------------------------------------------------
Meximed, S.A. de C.V. Mexico (1) (**) Seguros Bancomer, 50%(ii) Services for Insureds for
S.A. de C.V. Hospitals Admissions and
Claims Processing
- ---------------------------------------------------------------------------------------------------------------------
Seguros Bancomer, S.A. Mexico (1) (**) Aetna Internacional 49% Insurance and Reinsurance
de C.V. y Compania S de R.L. Company
de C.V.
- ---------------------------------------------------------------------------------------------------------------------
Pensiones Bancomer S.A. Mexico (1) (**) Aetna Internacional 49% Insurance Company
de C.V. y Compania S de R.L.
de C.V.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(hh) Seguros Monterrey Aetna, S.A. owns 50% of both Multiasistencia
S.A. de C.V. and Meximed, S.A. de C.V.
(ii) Seguros Monterrey Aetna, S.A. owns 50% of both Multiasistencia
S.A. de C.V. and Meximed, S.A. de C.V.
19
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Seguros Monterrey Mexico (1) (**) Aetna Internacional 21%(jj) Insurance and Reinsurance
Aetna, S.A. y Compania S de R.L.
de C.V.
- ---------------------------------------------------------------------------------------------------------------------
Fianzas Monterrey Mexico (1) (**) Aetna Internacional 21%(kk) Issuance of Bonds
Aetna, S.A. y Compania de R.L.
de C.V.
- ---------------------------------------------------------------------------------------------------------------------
Centro Nacional de Mexico (1) (**) Seguros Monterrey 70%(ll) Operation Support Services
Servicios Y Operaciones Aetna, S.A. Company
S.A. de C.V.
- ---------------------------------------------------------------------------------------------------------------------
Centro de Capacitacion Mexico (1) (**) Seguros Monterrey 99%(mm) Training Services Company
Monterrey, A.C. Aetna, S.A.
- ---------------------------------------------------------------------------------------------------------------------
Futuro Familiar S.A. de Mexico (1) (**) Seguros Monterrey 99%(nn) Marketing of Financial
C.V. Aetna, S.A. Services & Products
- ---------------------------------------------------------------------------------------------------------------------
Corporativo Seguros Mexico (1) (**) Seguros Monterrey 40%(oo) Corporate Services Company
S.A. de C.V. Aetna, S.A.
- ---------------------------------------------------------------------------------------------------------------------
Operadora FMA S.A. de Mexico (1) (**) Fianzas Monterrey 99% Corporate Services Company
C.V. Aetna, S.A.
- ---------------------------------------------------------------------------------------------------------------------
Administradora de Mexico (1) (**) Aetna Internacional 33%(pp) Retirement Funds Management
Fondos Para el Retiro y Compania S de R.L. Company
Bancomer, S.A. de C.V. de C.V.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- ---------
(jj) Aetna International, Inc. and AE Five, Inc. owns 14% each of both
Seguros Monterrey Aetna S.A. and Fianzas Monterrey Aetna S.A.
(kk) Aetna International, Inc. and AE Five, Inc. owns 14% each of both
Seguros Monterrey Aetna S.A. and Fianzas Monterrey Aetna S.A.
(ll) Pensiones Bancomer, S.A. de C.V. owns 30% of this company.
(mm) Fianzas Monterrey Aetna, S.A. owns 1% of this company.
(nn) Grupa Vamsa, S.A. de C.V. owns 1% of this company.
(oo) Seguros Bancomer, S.A. de C.V. and Pensiones Bancomer, S.A. de C.V.
each owns 30% of this company.
(pp) Santa Maria Internacional S.A. owns 16% of Administradora de Fondos
para el Retiro Bancomer, S.A. de C.V.
20
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Servicios Corporativos Mexico (1) (**) Administradora de 99% Pension Administration
Bancomer S.A. Fondos para el Retiro
Bancomer, S.A. de
C.V.
- ----------------------------------------------------------------------------------------------------------------------
Grupo Vamsa, S.A. de Mexico (1) (**) Aetna Internacional 49% Legal Administration and
C.V. y Compania S de R.L. Financial Services
de C.V.
- ----------------------------------------------------------------------------------------------------------------------
Asesores en Promociones Mexico (1) (**) Seguros Bancomer, 33%(qq) Marketing of Seguros
Segunomina S.A. de C.V. S.A. de C.V. Products/Payroll Discounts
- ----------------------------------------------------------------------------------------------------------------------
Inverval de Mexico S.A. Mexico (1) (*) Aetna Internacional 98% Holding Company
de C.V. y Compania S de R.L.
de C.V.
- ----------------------------------------------------------------------------------------------------------------------
AE Five y Compania S. Mexico (1) (*) Aetna Internacional 100% Limited Limitability
de R.L. de C.V. y Compania S de R.L. Company Formed Under Mex.
de C.V. Law for The Purpose of
Issuing Cpos in Mexico
- ----------------------------------------------------------------------------------------------------------------------
Aetna Salud S.A. Argentina (1) (*) Aetna Argentina, S.A. 100% Managing of Health Services
- ----------------------------------------------------------------------------------------------------------------------
Assistencia Medica Argentina (1) (*) Aetna Argentina, S.A. 100% Healthcare Management
Social Argentina S.A.
- ----------------------------------------------------------------------------------------------------------------------
Aetna Vida S.A. Argentina (1) (*) Aetna Argentina, Inc. 100% Health and Life Insurance
- ----------------------------------------------------------------------------------------------------------------------
Aetna Chile Seguros Chile (1) (*) Aetna S.A. 98% Casualty Insurance Company
Generales S.A.
- ----------------------------------------------------------------------------------------------------------------------
Aetna Administradora de Chile (1) (*) Aetna S.A. 100% Real Estate Investment
Fondos de Inversion S.A. Trust Management Co.
- ----------------------------------------------------------------------------------------------------------------------
Aetna Chile Seguros de Chile (1) (*) Aetna S.A. 100% Life Insurance Company
Vida S.A.
- ----------------------------------------------------------------------------------------------------------------------
Aetna Pensiones S.A. Chile (1) (*) Aetna S.A. 100% Holding Company
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(qq) Seguros Monterrey Aetna, S.A. owns 34% and Pensiones Bancomer,
S.A. de C.V. owns 33% of Aserores en Promociones Segunomina,
S.A. de C.V.
21
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Credito Chile (1) (*) Aetna S.A. 100% Mortgage Company
Hipotecario S.A.
- ---------------------------------------------------------------------------------------------------------------------
Cruz-Blanca Isapre, Chile (1) (*) Aetna S.A. 81% Insurance Company
S.A.
- ---------------------------------------------------------------------------------------------------------------------
Aetna International Peru (1) (*) Aetna S.A. 86%(rr) Holding Company
Peru S.A.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Salud S.A. Chile (1) (*) Aetna S.A. 90% Health Indemnity - Chile
- ---------------------------------------------------------------------------------------------------------------------
Administradora de Chile (1) (*) Aetna Pensiones S.A. 97% Pension Funds Management
Fondos de Pensiones Company
Santa Maria S.A.
- ---------------------------------------------------------------------------------------------------------------------
Santa Maria Chile (1) (*) Administradora de 100% Pension Administration
Internacional S.A. Fondos de Pensiones
Santa Maria S.A.
- ---------------------------------------------------------------------------------------------------------------------
Inmobiliaria Chile (1) (*) Inmobiliaria Padre 15% Service Company
Inmarangatn S.A. Mariano S.A.
- ---------------------------------------------------------------------------------------------------------------------
Asesories Previdencia Chile (1) (*) Cruz Blanca Entidad 99% Service Company
Promotora de Salud
S.A.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Pensiones Peru Peru (1) (**) Santa Maria 66%(ss) Investment
S.A. Internacional S.A.
- ---------------------------------------------------------------------------------------------------------------------
Administradora de Peru (1) (**) Aetna Pensiones 40%(tt) Pension Funds Management
Fondos de Pensiones Peru S.A. Company
Integra S.A.
- ---------------------------------------------------------------------------------------------------------------------
Wiese Aetna Compania Peru (1) (**) Aetna International 34% Insurance and Reinsurance
de Seguros S.A. Peru S.A.
- ---------------------------------------------------------------------------------------------------------------------
Novasalud Peru S.A. Peru (1) (**) Wiese Aetna Compania 50% Insurance subsidiary
Entidad Prestadora de de Seguros S.A.
Salud
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(rr) Aetna Chile Seguros de Vida S.A. and Aetna Chile Seguros Generales
S.A. have combined ownership of 14%.
(ss) Aetna S.A. owns 34% of this company.
(tt) Aetna Pensiones Peru S.A. owns 40% of this company.
22
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Immobilaria Padre Chile (1) (*) Aetna Credito 99%(uu) Real Estate Development
Mariano S.A. Hipotecario S.A.
- ---------------------------------------------------------------------------------------------------------------------
Cruz Blanca Entidad Columbia (1) (*) Cruz Blanca Isapre, 50% Pension Insurance Company
Protomotra de Salud S.A. S.A.
- ---------------------------------------------------------------------------------------------------------------------
Sul America Aetna Brazil (1) (*) Sul America Aetna 100% Pension
Companhia Nacional de Seguros de
Seguros e Previdencia Previdencia S.A.
Privada
- ---------------------------------------------------------------------------------------------------------------------
Sul America Servicos Brazil (1) (*) Sul America Aetna 100% Health Administrator
Medicos S.A. Seguros de
Previdencia S.A.
- ---------------------------------------------------------------------------------------------------------------------
Clube Dos Executivos, Brazil (1) (*) Sul American Aetna 100% Life insurance sponsor
S.A. Seguros de
Previdencia S.A.
- ---------------------------------------------------------------------------------------------------------------------
Executivos S/A Brazil (1) (*) Clube Dos Executivos 99% Administrative Services
Administracao e S.A.
Promocao de Seguros
- ---------------------------------------------------------------------------------------------------------------------
Executivos Corretorae Brazil (1) (*) Clube Dos Executivos 99% Administrative Services
Administradora de S.A.
Seguros S/C LTDA
- ---------------------------------------------------------------------------------------------------------------------
Sulalet Servisos Medicos Brazil (1) (*) Sul America Aetna 100% Healthcare Services
Companhia Nacional de
Seguros e Previdencia
Privada
- ---------------------------------------------------------------------------------------------------------------------
Brasilprev Previdencia Brazil (1) (**) Sul America Aetna 22% Pension
Privada S.A. Companhia Nacional de
Seguros e Previdencia
Privada
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(uu) Aetna S.A. owns 1% of this company.
23
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Brasilsaude Companhia Brazil (1) (*) Sul America Aetna 51% Insurance
de Segoros Companhia Nacional de
Seguros e Previdencia
Privada
- ----------------------------------------------------------------------------------------------------------------------
Aetna Health Management Ontario (1)(*) Aetna Canada Holdings 100% Managed Healthcare
Canada, Inc. Limited
- ----------------------------------------------------------------------------------------------------------------------
Aetna Life Acceptance Ontario (1) (*) Aetna Canada Holdings 100% Provision of Financial
Corporation Limited Limited Assistance to Agents to
Assist in Growth of Business
- ----------------------------------------------------------------------------------------------------------------------
Equinox Financial Group Canada (1) (*) Aetna Canada Holdings 92%(vv) Distributor of Life
Inc. Limited Insurance, Financial and
Related Products
- ----------------------------------------------------------------------------------------------------------------------
2733854 Canada Ltd. Canada (1) (*) Aetna Canada Holdings 70%(ww) Marketing of Life Ins. and
Limited Related Products
- ----------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Canada (1) (*) Aetna Canada Holdings 100% Life, Accident and Sickness
Company of Canada Limited Insurance
- ----------------------------------------------------------------------------------------------------------------------
Aynsley La Vergne Quebec (1) (*) Equinox Financial 100% Finance Services Company
Financial Services, Inc. Group Inc.
- ----------------------------------------------------------------------------------------------------------------------
Canadian Corporate Canada (1) (*) Aetna Health 100% Managed Health Services
Health Solutions Inc. Management Canada,
Inc.
- ----------------------------------------------------------------------------------------------------------------------
Equinox Investors Canada (1) (*) Equinox Financial 80% Mutual Funds
Services Inc. Group Inc.
- ----------------------------------------------------------------------------------------------------------------------
Landex Properties Ltd. British Columbia Aetna Life Insurance 100% Real Estate Acquisitions
(1) (*) Company of Canada
- ----------------------------------------------------------------------------------------------------------------------
Aetna Benefits Canada (1) (*) Aetna Life Insurance 100% Claims Administration and
Management, Inc. Company of Canada Actuarial Services
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(vv) Aetna Life Insurance Company of Canada owns 8% of this corporation.
(ww) Equinox Financial Group, Inc. owns 30% of this corporation.
24
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Mount-Batten Properties Ontario (1) (*) Aetna Life Insurance 100% Acquisition, Development and
Limited Company of Canada Management of Real Estate
- ---------------------------------------------------------------------------------------------------------------------
3158047 Canada Limited Canada (1) (*) Aetna Life Insurance 100% Acquisition, Development and
Company of Canada Management of Real Estate
- ---------------------------------------------------------------------------------------------------------------------
Financial Life Canada (1) (*) Aetna Life Insurance 100% Insurance Company
Assurance Company of Company of Canada
Canada
- ---------------------------------------------------------------------------------------------------------------------
Eclipse Claims Services Canada (1) (**) Aetna Life Insurance 25% Electronic Claims
Inc. Company of Canada Adjudication Services
- ---------------------------------------------------------------------------------------------------------------------
PVS Preferred Vision Canada (1) (**) Aetna Benefits 20% Provider of Ophthalmic,
Services Inc. Management, Inc. Service for Four Major
Shareholders
- ---------------------------------------------------------------------------------------------------------------------
Churchill Office Park Canada (1) (**) Mount-Batten 45% Real Estate Development of
Limited Properties Limited Ottawa Site
- ---------------------------------------------------------------------------------------------------------------------
Aetna Health (N.Z.) New Zealand (1) (**) Aetna International 100% Health Insurance Underwriting
Limited (N.Z) Limited
- ---------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance New Zealand (1) (*) Aetna Health 100% Group Benefits/Pension
(N.Z.) Limited (N.Z.) Limited Management
- ---------------------------------------------------------------------------------------------------------------------
Human Affairs Limited New Zealand (1) (*) Aetna Health 100% Indemnity Health Insurance
(N.Z.) (N.Z.) Limited
- ---------------------------------------------------------------------------------------------------------------------
First Health (New New Zealand (1) (*) Aetna Health 100% Super Annuitization/Long
Zealand Limited) (N.Z.) Limited Term Care
- ---------------------------------------------------------------------------------------------------------------------
Prime Health Limited New Zealand (1) (*) First Health (New 50% Buying and Managing Risk
Zealand) Limited for Publicly Funded Health
Services and Providing
Management Services and
Infrastructure to its
Network of Doctors
- ---------------------------------------------------------------------------------------------------------------------
Managed Care New New Zealand (1) (*) Human Affairs (NZ) 100% Long Term Care Provider
Zealand Limited Limited
- ---------------------------------------------------------------------------------------------------------------------
PLJ Holdings Limited Hong Kong (1) (*) Aetna Investment 100% Investment Management &
Management (F.E.) Securities Trading
Holdings Limited
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Investment Hong Kong (1) (*) Aetna Investment 100% Nominee Services Holding
Management (F.E.) Management (F.E.) Assets of AIM F.E.'s
Limited Holdings Limited Customers in Street Name
- ----------------------------------------------------------------------------------------------------------------------
Kwang HUA Securities Taiwan (1) (***) Aetna Investment 20% Securities Investment &
Investment & Trust Co. Management (F.E.) Trust
Ltd. Holdings Limited
- ----------------------------------------------------------------------------------------------------------------------
Kwang Hua Investment & Hong Kong (1) (***) Kwang HUA Securities 100% Investment Company
Trust (H.K.) Co. Ltd Investment & Trust
Co. Ltd.
- ----------------------------------------------------------------------------------------------------------------------
Kwang HUA Securities Taiwan (1) (***) PLJ Holdings Limited 20% Investment Consulting Company
Investment Consultant
Co. Ltd.
- ----------------------------------------------------------------------------------------------------------------------
U.S. Healthcare DE (1) (*) Aetna U.S. Healthcare 100% Holding Company
Financial Services, Inc. Inc.(PA)
- ----------------------------------------------------------------------------------------------------------------------
Primary Holdings, Inc. DE (1) (*) Aetna U.S. Healthcare 100% Holding Company
Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Aetna Health DE (1) (*) Aetna U.S. Healthcare 100% HMO Management Company
Management, Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans, DE (1) (*) Aetna U.S. Healthcare 100% Holding Company
Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare PA (1) (*) Aetna U.S. Healthcare 100% Dental
Dental Plan, Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Dental NJ (1) (*) Aetna U.S. Healthcare 100% Dental
Plan, Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Dental DE (1) (*) Aetna U.S. Healthcare 100% Dental
Plan, Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
U.S. Health Insurance NY (1) (*) Aetna U.S. Healthcare 100% Accident and Health
Company Inc. (PA) Insurance Company
- ----------------------------------------------------------------------------------------------------------------------
Corporate Health PA (1) (*) Aetna U.S. Healthcare 100% Accident and Health
Insurance Company Inc. (PA) Insurance Company
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
26
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Managed Care, Inc. MD (1) (*) Aetna U.S. Healthcare 100% Utilization Review
Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, NJ (1) (*) Aetna U.S. Healthcare 100% HMO
Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. NY (1) (*) Aetna U.S. Healthcare 100% HMO
Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, CT (1) (*) Aetna U.S. Healthcare 100% HMO
Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, MA (1) (*) Aetna U.S. Healthcare 100% HMO
Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, DE (1) (*) Aetna U.S. Healthcare 100% HMO
Inc. (DE) Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare NH (1) (*) Aetna U.S. Healthcare 100% HMO
of New Hampshire, Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Prudential Health Care TX (1) (*) Aetna U.S. Healthcare 100% HMO
Plan, Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Prudential Health Care NY (1) (*) Aetna U.S. Healthcare 100% HMO
Plan of New York, Inc. Inc. (PA)
- ----------------------------------------------------------------------------------------------------------------------
Prudential Health Care CT (1) (*) Aetna U.S. Healthcare 100% HMO
Plan of Connecticut, Inc. (PA)
Inc.
- ----------------------------------------------------------------------------------------------------------------------
Advent Investments, Inc. DE (1) (*) U.S. Healthcare 100% DE Holding Company
Financial Services,
Inc.
- ----------------------------------------------------------------------------------------------------------------------
Independent DE (1) (*) U.S. Healthcare 100% DE Holding Company
Investments, Inc. Financial Services,
Inc.
- ----------------------------------------------------------------------------------------------------------------------
United States PA (1) (*) U.S. Healthcare 100% Financial Services to
Physicians Care Financial Services, Physicians
Systems, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
United States Home PA (1) (*) U.S. Healthcare 100% Inactive - other Medical
Health Care Systems, Financial Services, Services
Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
U.S. Health Aviation PA (1) (*) U.S. Healthcare 100% Ownership and Operation of
Corp. Financial Services, Airplanes
Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
27
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Healthcare PA (1) (*) U.S. Healthcare 100% Holding Company for Real
Properties, Inc. Financial Services, Estate
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Intelihealth, Inc. DE (1) (*) U.S. Healthcare 98% Software Development
Financial Services,
Inc.
- ---------------------------------------------------------------------------------------------------------------------
USHC Management Services DE (1) (*) U.S. Healthcare 100% Management and Financial
Corporation Financial Services, Services to Network
Inc. Providers
- ---------------------------------------------------------------------------------------------------------------------
Integrated Pharmacy FL (1) (*) U.S. Healthcare 100% Pharmaceutical
Solutions, Inc. Financial Services,
Inc.
- ---------------------------------------------------------------------------------------------------------------------
U.S. Healthcare DE (1) (*) Advent Investments, 100% Holding Company
Advantage, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Wissahickon Payment DE (1) (*) Advent Investments, 100% Third Party Administrator
Administrators, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Advent Financial DE (1) (*) U.S. Healthcare 100% Holding Company
Services, Inc. Advantage, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Corporate Health PA (1) (*) Advent Financial 100% Third Party Administrator
Administrators, Inc. Services, Inc. for Self-Insured Plans
- ---------------------------------------------------------------------------------------------------------------------
Managed Care DE (1) (*) Advent Financial 100% Evaluation and
Coordinators, Inc. Services, Inc. Administration of Multiple
Health Plans
- ---------------------------------------------------------------------------------------------------------------------
U.S. Phoenix Corporation PA (1) (*) Advent Financial 100% Shell
Services, Inc.
- ---------------------------------------------------------------------------------------------------------------------
U.S. Quality PA (1) (*) Advent Financial 100% Services to Analyze the
Algorithms, Inc. Services, Inc. Quality and Effectiveness
of Medical Care
- ---------------------------------------------------------------------------------------------------------------------
Workers Comp Advantage, PA (1) (*) Advent Financial 100% Case Management and other
Inc. Services, Inc. Medical Management Services
for Employers on Costs
Related to Workers'
Compensation Claims
- ---------------------------------------------------------------------------------------------------------------------
Primary Investments, DE (1) (*) Primary Holdings, 100% Holding Company
Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
28
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States Health PA (1) (*) Primary Investments, 100% HMO
Care Systems of Inc.
Pennsylvania, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare MD (1) (*) Primary Investments, 15%(xx) HMO
Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare NC (1) (*) Primary Investments, 100% HMO
of the Carolinas, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Chickering Claims MA (1) (**) Primary Investments, 47% Third Party Claims
Administrators, Inc. Inc. Administration Business
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare GA (1) (*) Primary Investments, 63%(yy) HMO
of Georgia, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Prudential Health Care GA (1) (*) Primary Investments, 100% HMO
Plan of Georgia, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare AL (1) (*) Primary Investments, 100% HMO
of Alabama, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
U.S. Health Insurance CT (1) (*) Primary Investments, 100% Accident and Health
Company Inc. Insurance Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, MI (1) (*) Primary Investments, 100% HMO
Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, OK (1) (*) Primary Investments, 100% HMO
Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. MO (1) (*) Primary Investments, 100% HMO
Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare DE (1) (*) Primary Investments, 100% Holding Company
Holdings, Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare WA (1) (*) Primary Investments, 100% HMO
Inc. Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(xx) NYLCare Health Plans, Inc. owns 44% and Aetna Health Management, Inc.
owns 41% of Aetna U.S. Healthcare, Inc. (MD)
(yy) Aetna Health Management, Inc. owns 37% of Aetna U.S. Healthcare of
Georgia, Inc.
29
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare, CO (1) (*) Aetna U.S. Healthcare 100% HMO
Inc. Holdings, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Prudential Health Care CA (1) (*) Aetna Health 100% HMO
Plan of California, Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Prudential Dental TX (1) (*) Aetna Health 100% HMO Offering Single Health
Maintenance Management Inc. Service Plan (Dental)
Organization, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare CA (1) (*) Aetna Health 100% Provide Pre-Paid Dental
Dental Plan of Management, Inc. Services
California Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, OH (1) (*) Aetna Health 100% HMO
Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, MD (1) (*) Aetna Health 41%(zz) HMO
Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, FL (1) (*) Aetna Health 100% HMO
Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Informed Health, Inc. DE (1) (*) Aetna Health 100% Sponsors Health Information
Management, Inc. Service
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, TN (1) (*) Aetna Health 100% HMO
Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare GA (1) (*) Aetna Health 37%(aaa) HMO
of Georgia, Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna Dental Care of NJ (1) (*) Aetna Health 100% Dental Care
New Jersey, Inc. Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
AUSHC Holdings, Inc. DE (1) (*) Aetna Health 100% Holding Company
Management, Inc.
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(zz) NYLCare Health Plans, Inc. owns 44% and Primary Investments, Inc.
owns 15% of Aetna U.S. Healthcare, Inc. (MD)
(aaa) Primary Investments, Inc. owns 63% of Aetna U.S. Healthcare of
Georgia, Inc.
30
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare, AZ (1) (*) Aetna Health 100% HMO
Inc. Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare TX (1) (*) Aetna Health 100% HMO Offering Single Health
Dental Plan Inc. Management, Inc. Service Plan - Dental
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare IL (1) (*) Aetna Health 100% HMO
of Illinois, Inc. Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Dental Care KY (1) (*) Aetna Health 100% Dental Plan Organization
of Kentucky, Inc. Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of PA (1) (*) Aetna Health 100% HMO
Central and Eastern Management, Inc.
Pennsylvania, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, TX (1) (*) Aetna Health 100% HMO
Inc. Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, LA (1) (*) Aetna Health 100% HMO
Inc. Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
MED Southwest, Inc. TX (1) (*) Aetna Health 55% Holding Company
Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Government Health CA (1) (*) Aetna Health 100% Sponsors Champus Business
Plans, Inc. Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare CA (1) (*) Aetna Health 100% HMO
of California, Inc. Management, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of NY (1) (*) AUSHC Holdings, Inc. 100% HMO
New York, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of NJ (1) (*) AUSHC Holdings, Inc. 100% HMO
New Jersey, Inc.
- ---------------------------------------------------------------------------------------------------------------------
Southwest Physicians TX (1) (*) MED Southwest, Inc. 100% Life and Health Insurer
Life Insurance Company
- ---------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare TX (1) (*) MED Southwest, Inc. 100% HMO
of North Texas Inc.
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Lonestar Holding Co. DE (1) (*) NYLCare Health Plans, 100% Holding Company
Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare of Texas, Inc. TX (1) (*) NYLCare Health Plans, 100% Management Company for PPO
Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of PA (1) (*) NYLCare Health Plans, 100% HMO
Pennsylvania, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
One Liberty Plaza DE (1) (*) NYLCare Health Plans, 100% Special Purpose Funding
Holdings, Inc. Inc. Entity for Industrial
Development Agency
Transaction
- ----------------------------------------------------------------------------------------------------------------------
Benefit Panel Services, CA (1) (*) NYLCare Health Plans, 50% Manages HMOs
Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Dental Plans of TX (1) (*) NYLCare Health Plans, 100% Dental HMO
the Southwest, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
Sanus Preferred CA (1) (*) NYLCare Health Plans, 100% PPO
Providers West, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of TX (1) (*) NYLCare Health Plans, 100% Holding Company
the Southwest, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare of New England, DE (1) (*) NYLCare Health Plans, 100% Management Company
Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of NY (1) (*) NYLCare Health Plans, 100% HMO
New York, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of NJ (1) (*) NYLCare Health Plans, 100% HMO
New Jersey, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of CT (1) (*) NYLCare Health Plans, 100% HMO
Connecticut, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Preferred MD (1) (*) NYLCare Health Plans, 100% PPO
Services, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
Sanus of New York and NY (1) (*) NYLCare Health Plans, 100% PPO
New Jersey, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sanus Dental Plan of NJ (1) (*) NYLCare Health Plans, 100% Dental HMO
N.J., Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
The Ethix Corporation DE (1) (*) NYLCare Health Plans, 100% Holding Company of PPO
Inc. Network
- ----------------------------------------------------------------------------------------------------------------------
Aetna US Healthcare, ME (1) (*) NYLCare Health Plans, 100% HMO
Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
New York Life and DE (1) (*) NYLCare Health Plans, 100% Reinsurance
Health Insurance Company Inc.
- ----------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, MD (1) (*) NYLCare Health Plans, 44%(bbb) HMO
Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
Lone star Health Plan, TX (1) (*) Lonestar Holding Co. 90%(ccc) Holding Company
Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Passport PPO of TX (1) (*) NYLCare of Texas, 100% PPO
the Southwest, Inc. Inc.
- ----------------------------------------------------------------------------------------------------------------------
BPS Health Plan CA (1) (*) Benefit Panel 100% Third Party Administrator
Administrators Services, Inc.
- ----------------------------------------------------------------------------------------------------------------------
VivaHealth, Incorporated CA (1) (*) Benefit Panel 100% HMO
Services, Inc.
- ----------------------------------------------------------------------------------------------------------------------
NYLCare Health Plans of TX (1) (*) Lonestar Health 100% HMO
the Gulf Coast, Inc. Plan, Inc.
- ----------------------------------------------------------------------------------------------------------------------
Ethix Northwest, Inc. WA (1) (*) The Ethix Corporation 100% PPO
- ----------------------------------------------------------------------------------------------------------------------
Ethix Northwest Public WA (1) (*) The Ethix Corporation 100% Managed Care Services to
Services, Inc. Medicaid Recipients
- ----------------------------------------------------------------------------------------------------------------------
Ethix Pacific, Inc. OR (1) (*) The Ethix Corporation 100% PPO
- ----------------------------------------------------------------------------------------------------------------------
Ethix Midlands, Inc. DE (1) (*) The Ethix Corporation 100% PPO
- ----------------------------------------------------------------------------------------------------------------------
Ethix Great Lakes, Inc. MI (1) (*) The Ethix Corporation 100% PPO
- ----------------------------------------------------------------------------------------------------------------------
Ethix Mid-Rivers, Inc. MO (1) (*) The Ethix Corporation 100% PPO
- ----------------------------------------------------------------------------------------------------------------------
Ethix Southwest, Inc. TX (1) (*) The Ethix Corporation 100% PPO
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------
(bbb) Aetna Health Management, Inc. owns 41% and Primary Investments, Inc.
owns 15% of Aetna U.S. Healthcare, Inc. (MD)
(ccc) NYLCare Health Plans, Inc. owns 10% of this company.
33
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare WA (1) (*) Ethix Northwest, Inc. 100% HMO
of Washington, Inc.
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
Item 27. Number of Contract Owners
- ----------------------------------
As of October 31, 1999, there were 92,783 individuals holding interests in
variable annuity contracts funded through Variable Annuity Account B.
Item 28. Indemnification
- ------------------------
Section 21 of Public Act No. 97-246 of the Connecticut General Assembly (the
"Act") provides that a corporation may provide indemnification of or advance
expenses to a director, officer, employee or agent only as permitted by Sections
33-770 to 33-778, inclusive, of the Connecticut General Statutes, as amended by
Sections 12 to 20, inclusive, of this Act. Reference is hereby made to Section
33-771(e) of the Connecticut General Statutes ("CGS") regarding indemnification
of directors and Section 33-776(d) of CGS regarding indemnification of officers,
employees and agents of Connecticut corporations. These statutes provide in
general that Connecticut corporations incorporated prior to January 1, 1997
shall, except to the extent that their certificate of incorporation expressly
provides otherwise, indemnify their directors, officers, employees and agents
against "liability" (defined as the obligation to pay a judgment, settlement,
penalty, fine, including an excise tax assessed with respect to an employee
benefit plan, or reasonable expenses incurred with respect to a proceeding) when
(1) a determination is made pursuant to Section 33-775 that the party seeking
indemnification has met the standard of conduct set forth in Section 33-771 or
(2) a court has determined that indemnification is appropriate pursuant to
Section 33-774. Under Section 33-775, the determination of and the authorization
for indemnification are made (a) by the disinterested directors, as defined in
Section 33-770(3); (b) by special counsel; (c) by the shareholders; or (d) in
the case of indemnification of an officer, agent or employee of the corporation,
by the general counsel of the corporation or such other officer(s) as the board
of directors may specify. Also, Section 33-772 provides that a corporation shall
indemnify an individual who was wholly successful on the merits or otherwise
against reasonable expenses incurred by him in connection with a proceeding to
which he was a party because he was a director of the corporation. In the case
of a proceeding by or in the right of the corporation or with respect to conduct
for which the director, officer, agent or employee was adjudged liable on the
basis that he received a financial benefit to which he was not entitled,
indemnification is limited to reasonable expenses incurred in connection with
the proceeding against the corporation to which the individual was named a
party.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who was a director, officer, employer or
agent of the corporation. Consistent with the statute, Aetna Inc. has procured
insurance from Lloyd's of London and several major United States excess insurers
for its directors and officers and the directors and officers of its
subsidiaries, including the Depositor.
Item 29. Principal Underwriter
- ------------------------------
(a) In addition to serving as the principal underwriter and depositor for
the Registrant, Aetna Life Insurance and Annuity Company (Aetna) also
acts as the principal underwriter, only, for Aetna Variable Encore
Fund, Aetna Variable Fund, Aetna Generation Portfolios, Inc., Aetna
Income Shares, Aetna Balanced VP, Inc. (formerly Aetna Investment
Advisers Fund, Inc.), Aetna GET Fund, and Aetna Variable Portfolios,
Inc. and as the principal
<PAGE>
underwriter and investment adviser for Portfolio Partners, Inc. (all
management investment companies registered under the Investment Company
Act of 1940 (1940 Act)). Additionally, Aetna acts as the principal
underwriter and depositor for Variable Life Account B of Aetna,
Variable Annuity Account C of Aetna and Variable Annuity Account G of
Aetna (separate accounts of Aetna registered as unit investment trusts
under the 1940 Act). Aetna is also the principal underwriter for
Variable Annuity Account I of Aetna Insurance Company of America (AICA)
(a separate account of AICA registered as a unit investment trust under
the 1940 Act).
(b) See Item 25 regarding the Depositor.
(c) Compensation as of December 31, 1998:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Compensation on
Name of Net Underwriting Redemption or Brokerage
Principal Underwriter Discounts and Commissions Annuitization Commissions Compensation*
- --------------------- ------------------------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Aetna Life Insurance $684,000 $42,930,000
and Annuity Company
</TABLE>
* Compensation shown in column 5 includes deductions for mortality and
expense risk guarantees and contract charges assessed to cover costs
incurred in the sales and administration of the contracts issued under
Variable Annuity Account B.
Item 30. Location of Accounts and Records
- -----------------------------------------
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules under it relating to the securities
described in and issued under this Registration Statement are located at the
home office of the Depositor as follows:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
- ----------------------------
Not applicable
Item 32. Undertakings
- ---------------------
Registrant hereby undertakes:
<PAGE>
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than
sixteen months old for as long as payments under the variable annuity
contracts may be accepted;
(b) to include as part of any application to purchase a contract offered by
a prospectus which is part of this registration statement on Form N-4,
a space that an applicant can check to request a Statement of
Additional Information; and
(c) to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4 promptly
upon written or oral request.
(d) The Company hereby represents that it is relying upon and will comply
with the provisions of Paragraphs (1) through (4) of the SEC Staff's
No-Action Letter dated November 28, 1988 with respect to language
concerning withdrawal restrictions applicable to plans established
pursuant to Section 403(b) of the Internal Revenue Code. See American
Counsel of Life Insurance; SEC No-Action Letter, [1988 WL 235221, *13
(S.E.C.)].
(e) Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid
by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of whether
such indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.
(f) Aetna Life Insurance and Annuity Company represents that the fees and
charges deducted under the contracts covered by this registration
statement, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed
by the insurance company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Variable Annuity Account B of Aetna Life Insurance and
Annuity Company, certifies that it meets the requirements of Securities Act Rule
485(b) for effectiveness of this Post-Effective Amendment to its Registration
Statement on Form N-4 (File No. 333-56297) and has duly caused this
Post-Effective Amendment to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Hartford, State of Connecticut, on the
23rd day of November, 1999.
VARIABLE ANNUITY ACCOUNT B OF AETNA
LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Depositor)
By: /s/ Thomas J. McInerney*
-------------------------------------
Thomas J. McInerney
President
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 11 to the Registration Statement on Form N-4 (File No. 333-56297) has been
signed by the following persons in the capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
/s/ Thomas J. McInerney* Director and President )
- ------------------------------------- (principal executive officer) )
Thomas J. McInerney )
)
/s/ Shaun P. Mathews* Director ) November
- ------------------------------------- ) 23, 1999
Shaun P. Mathews )
)
/s/ Catherine H. Smith* Director and Chief Financial Officer )
- ------------------------------------- )
Catherine H. Smith )
)
/s/ Deborah Koltenuk* Vice President, Corporate Controller, and )
- ------------------------------------- Assistant Treasurer )
Deborah Koltenuk )
By: /s/ J. Neil McMurdie
---------------------------------
J. Neil McMurdie
*Attorney-in-Fact
</TABLE>
<PAGE>
VARIABLE ANNUITY ACCOUNT B
Exhibit Index
<TABLE>
<CAPTION>
Exhibit No. Exhibit
- ----------- -------
<S> <C> <C>
99-8.24 Fifth Amendment dated July 1, 1999 to Fund Participation
Agreement by and among MFS Variable Insurance Trust,
Aetna Life Insurance and Annuity Company and
Massachusetts Financial Services Company dated April 30,
1996, and amended on September 3, 1996, March 14, 1997,
November 28, 1997 and May 1, 1998
------------
99-B.9 Opinion and Consent of Counsel
------------
99-B.10 Consent of Independent Auditors
------------
</TABLE>
EX 99-B.8.24
FIFTH AMENDMENT TO PARTICIPATION AGREEMENT
Pursuant To the Participation agreement made and entered into in April, 1996,
and as amended on September 3, 1996, March 14, 1997, November 28, 1997 and May
1, 1998 by and among MFS Variable Insurance Trust, Aetna Life Insurance and
Annuity Company and Massachusetts Financial Services Company, the parties do
hereby agree to amend Article V, Section 5.4 to read as follows:
5.4 MFS will quarterly reimburse the Company for certain of the
administrative costs and expenses incurred by the Company as a result of
operations necessitated by the beneficial ownership by Policy owners of
shares of the Portfolios in the Trust, equal to 0.25% per annum of the
aggregate net assets of the Trust attributable to such Policy owners. In
no event shall such fee be paid by the Trust, its shareholders or by the
Policy holders.
IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to the
Participation Agreement to be executed in its name and on its behalf by its duly
authorized representative. The Amendment shall take effect on July 1, 1999.
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By its authorized officer,
By: /s/ Laurie M. LeBlanc
---------------------------
Laurie M. LeBlanc
Title: Vice President
MFS VARIABLE INSURANCE TRUST,
On behalf of the Portfolios
By: /s/ Jeffrey L. Shames
---------------------------
Jeffrey L. Shames
Chairman
MASSACHUSETTS FINANCIAL SERVICES
COMPANY
By its authorized officer,
By: /s/ Jeffrey L. Shames
---------------------------
Jeffrey L. Shames
Chairman and Chief Executive Officer
[Aetna Logo]
[Aetna Letterhead]
151 Farmington Avenue
Hartford, CT 06156-1492
Julie E. Rockmore
Counsel
Law Department, TS31
November 23, 1999 Aetna Financial Services
(860) 273-4686
Fax: (860) 273-0385
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Attention: Filing Desk
Re: Aetna Life Insurance and Annuity Company and its Variable Annuity Account B
Post-Effective Amendment No. 11 to Registration Statement on Form N-4
Prospectus Title: Aetna Variable Annuity
File Nos.: 333-56297 and 811-02512
Gentlemen:
The undersigned serves as counsel to Aetna Life Insurance and Annuity Company, a
Connecticut life insurance company (the "Company"). It is my understanding that
the Company, as depositor, has registered an indefinite amount of securities
(the "Securities") under the Securities Act of 1933 (the "Securities Act") as
provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment
Company Act").
In connection with this opinion, I or those for whom I have supervisory
responsibility, have reviewed the N-4 Registration Statement, as amended to the
date hereof, and this Post-Effective Amendment No. 11. I have also examined
originals or copies, certified or otherwise identified to my satisfaction, of
such documents, trust records and other instruments I have deemed necessary or
appropriate for the purpose of rendering this opinion. For purposes of such
examination, I have assumed the genuineness of all signatures on original
documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, and do not purport to be an expert
on the laws of any other state. My opinion herein as to any other law is based
upon a limited inquiry thereof which I have deemed appropriate under the
circumstances.
Based upon the foregoing, and, assuming the Securities are sold in accordance
with the provisions of the prospectus, I am of the opinion that the Securities
being registered will be legally issued and will represent binding obligations
of the Company.
<PAGE>
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
- ----------------------
Julie E. Rockmore
Counsel
EX 99-B.10
Consent of Independent Auditors
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contractholders of Aetna Variable Annuity Account B:
We consent to the use in this prospectus constituting part of this
Post-Effective Amendment No. 11 to the Registration Statement on Form N-4 (File
No. 333-56297) of our reports dated February 3, 1999 and February 26, 1999
relating to the financial statements of the Aetna Variable Annuity Account B and
Aetna Life Insurance and Annuity Company, respectively, which are incorporated
by reference in such prospectus.
We also consent to the reference to our firm under the headings "Condensed
Financial Information", which is incorporated by reference in the prospectus and
"Independent Auditors" which is incorporated by reference in the statement of
additional information.
/s/ KPMG LLP
Hartford, Connecticut
November 23, 1999
