President's Letter
Dear Valued Client,
What a year this has been in the market! Many of us feel as if we've been
riding a roller coaster. Record highs one day. Record drops another. But you'll
see on the following pages that, overall, your Aetna Retirement Services
variable annuity or variable life insurance contract has once again delivered
solid returns(1).
The dramatic changes such as those witnessed in the 1998 financial markets
reinforce the importance of choosing a competent, long-term financial partner
- -- one who can help you to weather the dips in the market.
At Aetna Retirement Services, we take our role as your financial partner very
seriously, and realize that the dollars we hold are actually your dreams.
Perhaps it's your hope of an early retirement. Or a dream home. It may be the
promise of your child's or grandchild's college education. Or the pride you
take in knowing that your family is financially secure because of the financial
plans you've made with us in retirement. Whatever your goals, our team of
professionals is here to help you achieve them.
As we move through 1999, I want you to know that we are prepared to help meet
your needs well into the next millennium. We have a team of extremely competent
business experts and systems leading our charge in addressing the Year 2000
bug. In fact, we are making steady progress in systems remediation, and expect
to be Year 2000 ready by mid-1999.
My colleagues at Aetna Retirement Services and I look forward to continuing our
partnership into the next millennium. Thank you for your confidence and
support.
Sincerely,
/s/ Thomas J. McInerney
- -----------------------
Thomas J. McInerney
- --------------------------
(1) Remember that past performance is no indication of future results.
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1998
<TABLE>
<CAPTION>
ASSETS:
Investments, at net asset value: (Note 1)
Net
Shares Cost Assets
------ ---- ------
<S> <C> <C> <C>
Aetna Ascent VP: 6,134,112 $ 84,102,680 $ 86,000,256
Aetna Balanced VP: 64,322,517 924,156,866 1,011,793,195
Aetna Bond VP: 29,408,694 379,592,879 384,077,541
Aetna Crossroads VP: 5,563,073 73,501,226 74,100,133
Aetna Get Fund, Series B: 4,080,903 52,990,050 59,581,177
Aetna Get Fund, Series C: 13,705,460 145,612,096 198,180,953
Aetna Get Fund, Series D: 26,960,783 270,904,139 270,980,130
Aetna Growth and Income VP: 193,821,381 6,185,564,837 6,175,149,210
Aetna Growth VP: 4,793,106 57,756,294 64,850,726
Aetna High Yield VP: 137,652 1,348,506 1,244,378
Aetna Index Plus Bond VP: 139,903 1,485,972 1,425,611
Aetna Index Plus Large Cap VP: 13,588,180 200,817,845 239,016,092
Aetna Index Plus Mid Cap VP: 337,416 3,695,668 4,116,477
Aetna Index Plus Small Cap VP: 502,348 4,557,249 4,953,155
Aetna International VP: 173,945 1,962,427 2,016,027
Aetna Legacy VP: 4,311,341 53,451,493 53,331,289
Aetna Money Market VP: 19,342,066 253,530,714 258,939,971
Aetna Real Estate Securities VP: 183,009 1,671,798 1,561,066
Aetna Small Company VP: 3,751,125 48,380,625 47,976,886
Aetna Value Opportunity VP: 1,997,581 25,293,161 28,785,139
Calvert Social Balanced Portfolio: 29,902,390 54,315,545 63,901,407
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio: 8,898,556 188,619,345 226,201,287
Growth Portfolio: 5,135,023 170,211,305 230,408,503
High Income Portfolio: 139,771 1,602,694 1,611,556
Overseas Portfolio: 738,883 14,561,214 14,814,602
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio: 1,470,246 22,725,399 26,699,659
Contrafund Portfolio: 14,733,278 253,946,769 360,081,326
Index 500 Portfolio: 660,901 66,696,529 93,352,318
Janus Aspen Series:
Aggressive Growth Portfolio: 10,591,848 192,335,439 292,229,082
Balanced Portfolio: 4,216,755 74,736,185 94,876,992
Flexible Income Portfolio: 2,694,962 32,325,750 32,501,248
Growth Portfolio: 5,647,105 98,534,718 132,932,852
Worldwide Growth Portfolio: 21,182,596 478,559,912 616,201,712
Lexington Emerging Markets Fund: 722,126 5,748,692 4,094,455
Lexington Natural Resources Trust Fund: 1,789,785 25,967,652 19,741,327
MFS Funds:
Total Return Series: 21,290 364,758 385,767
Oppenheimer Funds:
Global Securities Fund: 44,228 885,530 976,121
Strategic Bond Fund: 440,840 2,233,363 2,257,099
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio: 7,831,597 346,198,947 434,183,761
PPI MFS Research Growth Portfolio: 20,275,336 201,414,681 242,087,516
PPI MFS Value Equity Portfolio: 3,985,534 120,187,249 150,852,476
PPI Scudder International Growth Portfolio: 12,050,466 183,514,369 201,965,809
PPI T. Rowe Price Growth Equity Portfolio: 3,903,977 170,360,011 215,928,990
--------------- ---------------
NET ASSETS $11,476,422,581 $12,426,365,277
=============== ===============
</TABLE>
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1998 (continued):
<TABLE>
<S> <C>
Net Assets represented by:
Reserves for annuity contracts in accumulation and payment period: (Notes 1 and 5)
Aetna Ascent VP:
Annuity contracts in accumulation ................................................ $ 86,000,256
Aetna Balanced VP:
Annuity contracts in accumulation ................................................ 982,574,403
Annuity contracts in payment period .............................................. 29,218,792
Aetna Bond VP:
Annuity contracts in accumulation ................................................ 377,693,504
Annuity contracts in payment period .............................................. 6,384,037
Aetna Crossroads VP:
Annuity contracts in accumulation ................................................ 74,028,644
Annuity contracts in payment period .............................................. 71,489
Aetna Get Fund, Series B:
Annuity contracts in accumulation ................................................ 59,581,177
Aetna Get Fund, Series C:
Annuity contracts in accumulation ................................................ 198,180,953
Aetna Get Fund, Series D:
Annuity contracts in accumulation ................................................ 270,980,130
Aetna Growth and Income VP:
Annuity contracts in accumulation ................................................ 5,846,282,205
Annuity contracts in payment period .............................................. 328,867,005
Aetna Growth VP:
Annuity contracts in accumulation ................................................ 64,734,239
Annuity contracts in payment period .............................................. 116,487
Aetna High Yield VP:
Annuity contracts in accumulation ................................................ 1,244,378
Aetna Index Plus Bond VP:
Annuity contracts in accumulation ................................................ 1,425,611
Aetna Index Plus Large Cap VP:
Annuity contracts in accumulation ................................................ 238,578,749
Annuity contracts in payment period .............................................. 437,343
Aetna Index Plus Mid Cap VP:
Annuity contracts in accumulation ................................................ 4,116,477
Aetna Index Plus Small Cap VP:
Annuity contracts in accumulation ................................................ 4,953,155
Aetna International VP:
Annuity contracts in accumulation ................................................ 2,016,027
Aetna Legacy VP:
Annuity contracts in accumulation ................................................ 53,070,226
Annuity contracts in payment period .............................................. 261,063
Aetna Money Market VP:
Annuity contracts in accumulation ................................................ 258,856,854
Annuity contracts in payment period .............................................. 83,117
Aetna Real Estate Securities VP:
Annuity contracts in accumulation ................................................ 1,561,066
Aetna Small Company VP:
Annuity contracts in accumulation ................................................ 47,966,985
Annuity contracts in payment period .............................................. 9,901
</TABLE>
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1998 (continued):
<TABLE>
<S> <C>
Aetna Value Opportunity VP:
Annuity contracts in accumulation ................................................ $ 28,785,139
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation ................................................ 63,901,407
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation ................................................ 226,201,287
Growth Portfolio:
Annuity contracts in accumulation ................................................ 230,408,503
High Income Portfolio:
Annuity contracts in accumulation ................................................ 1,611,556
Overseas Portfolio:
Annuity contracts in accumulation ................................................ 14,814,602
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation ................................................ 26,699,659
Contrafund Portfolio:
Annuity contracts in accumulation ................................................ 360,081,326
Index 500 Portfolio:
Annuity contracts in accumulation ................................................ 93,352,318
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation ................................................ 292,229,082
Balanced Portfolio:
Annuity contracts in accumulation ................................................ 94,876,992
Flexible Income Portfolio:
Annuity contracts in accumulation ................................................ 32,501,248
Growth Portfolio:
Annuity contracts in accumulation ................................................ 132,697,360
Annuity contracts in payment period .............................................. 235,492
Worldwide Growth Portfolio:
Annuity contracts in accumulation ................................................ 615,835,740
Annuity contracts in payment period .............................................. 365,972
Lexington Emerging Markets Fund:
Annuity contracts in accumulation ................................................ 4,094,455
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation ................................................ 19,741,327
MFS Funds:
Total Return Series:
Annuity contracts in accumulation ................................................ 385,767
Oppenheimer Funds:
Global Securities Fund:
Annuity contracts in accumulation ................................................ 976,121
Strategic Bond Fund:
Annuity contracts in accumulation ................................................ 2,253,578
Annuity contracts in payment period .............................................. 3,521
</TABLE>
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1998 (continued):
<TABLE>
<S> <C>
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation ................................................ $ 434,156,330
Annuity contracts in payment period .............................................. 27,431
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation ................................................ 242,087,516
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation ................................................ 150,852,476
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation ................................................ 201,965,809
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation ................................................ 215,872,943
Annuity contracts in payment period .............................................. 56,047
---------------
$12,426,365,277
===============
</TABLE>
See Notes to Financial Statements
<PAGE>
Variable Annuity Account C
Statements of Operations and Changes in Net Assets
<TABLE>
<CAPTION>
Year ended December 31,
1998 1997
---- ----
<S> <C> <C>
INVESTMENT INCOME:
Income: (Notes 1, 3 and 5)
Dividends .............................................................. $ 1,447,620,640 $ 1,552,106,208
Expenses: (Notes 2 and 5)
Valuation period deductions ............................................ (138,558,611) (120,867,375)
--------------- ---------------
Net investment income ................................................... 1,309,062,029 1,431,238,833
--------------- ---------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on sales of investments: (Notes 1, 4 and 5)
Proceeds from sales .................................................... 2,443,668,181 2,013,561,413
Cost of investments sold ............................................... 2,067,610,422 1,773,010,971
--------------- ---------------
Net realized gain ..................................................... 376,057,759 240,550,442
Net unrealized gain on investments: (Note 5)
Beginning of year ...................................................... 915,465,761 612,391,085
End of year ............................................................ 949,942,696 915,465,761
--------------- ---------------
Net change in unrealized gain ......................................... 34,476,935 303,074,676
--------------- ---------------
Net realized and unrealized gain on investments ......................... 410,534,694 543,625,118
--------------- ---------------
Net increase in net assets resulting from operations .................... 1,719,596,723 1,974,863,951
--------------- ---------------
FROM UNIT TRANSACTIONS:
Variable annuity contract purchase payments ............................. 1,136,921,898 1,039,113,157
Transfer from the Company for mortality guarantee adjustments ........... 849,771 2,085,609
Transfers from the Company's fixed account options ...................... 112,197,035 166,510,610
Transfer to the Company's other variable annuity accounts ............... (66,773,776) (88,238,000)
Redemptions by contract holders ......................................... (1,591,935,338) (474,257,152)
Annuity payments ........................................................ (41,589,989) (31,253,253)
Other ................................................................... 1,844,602 1,227,066
--------------- ---------------
Net increase (decrease) in net assets from unit transactions (Note 5) .. (448,485,797) 615,188,037
--------------- ---------------
Change in net assets .................................................... 1,271,110,926 2,590,051,988
NET ASSETS:
Beginning of year ....................................................... 11,155,254,351 8,565,202,363
--------------- ---------------
End of year ............................................................. $12,426,365,277 $11,155,254,351
=============== ===============
</TABLE>
See Notes to Financial Statements
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Ascent VP:
Qualified I $13.836 $14.260 3.06% 347.4 $ 4,953
Qualified III 15.422 15.886 3.01% 21,430.4 340,447
Qualified V 15.363 15.800 2.84% 1,408.7 22,258
Qualified VI 15.422 15.886 3.01% 3,508,677.1 55,739,609
Qualified VIII 15.419 15.882 3.00% 803.0 12,754
Qualified X (1.15) 15.900 16.395 3.11% 21,004.4 344,364
Qualified X (1.25) 15.860 16.337 3.01% 592,246.9 9,675,801
Qualified XI 15.514 16.028 3.31% 80,753.8 1,294,336
Qualified XII (0.40) 13.239 14.086 6.40% (11) 86,320.6 1,215,931
Qualified XII (0.45) 9.146 9.519 4.08% (12) 778.8 7,414
Qualified XII (0.50) 10.475 9.848 (5.99%) (5) 2,670.4 26,297
Qualified XII (0.75) 9.913 9.502 (4.15%) (6) 43,141.8 409,924
Qualified XII (0.80) 10.604 10.101 (4.74%) (5) 255,775.2 2,583,503
Qualified XII (0.85) 13.699 14.113 3.02% (1) 70,990.9 1,001,901
Qualified XII (0.90) 9.227 9.953 7.87% (10) 211.7 2,107
Qualified XII (0.95) 13.624 14.076 3.32% 75,369.1 1,060,884
Qualified XII (1.00) 13.613 14.057 3.26% 520,438.2 7,315,952
Qualified XII (1.05) 13.602 14.039 3.21% 55,886.3 784,572
Qualified XII (1.10) 13.590 14.020 3.16% 9,573.2 134,219
Qualified XII (1.15) 13.579 14.002 3.12% 26,910.5 376,793
Qualified XII (1.20) 13.587 13.983 2.91% (1) 90,247.0 1,261,945
Qualified XII (1.25) 13.557 13.965 3.01% 1,249.2 17,444
Qualified XII (1.30) 13.546 13.946 2.95% 1,424.3 19,864
Qualified XII (1.40) 14.731 13.910 (5.57%) (5) 136.0 1,891
Qualified XII (1.50) 13.502 13.873 2.75% 14,280.4 198,111
Qualified XIII 15.497 16.011 3.32% 29,149.3 466,701
Qualified XV 15.471 15.984 3.32% 38,675.0 618,187
Qualified XVI 15.394 15.818 2.75% 38,619.9 610,875
Qualified XVII 15.453 15.974 3.37% 9,887.5 157,940
Qualified XVIII 15.892 16.427 3.37% 17,853.0 293,279
- ---------------------------------------------------------------------------------------------------------------
Aetna Balanced VP:
Qualified I 24.826 28.687 15.55% 73,629.4 2,112,224
Qualified III 24.700 28.524 15.48% 2,294,876.9 65,458,720
Qualified V 18.777 21.650 15.30% 2,680.4 58,031
Qualified VI 18.811 21.723 15.48% 25,990,902.2 564,602,474
Qualified VII 18.092 20.906 15.55% 266,036.8 5,561,697
Qualified VIII 17.463 20.165 15.47% 3,910.4 78,852
Qualified IX 17.464 20.269 16.06% 3,983.4 80,739
Qualified X (1.15) 18.889 21.836 15.60% 167,719.9 3,662,292
Qualified X (1.25) 18.811 21.723 15.48% 6,268,762.3 136,176,831
Qualified XI 18.922 21.917 15.83% 768,509.7 16,843,580
Qualified XII (0.40) 14.244 15.331 7.63% (11) 653,272.0 10,015,389
Qualified XII (0.50) 10.369 11.077 6.83% (4) 310,845.7 3,443,125
Qualified XII (0.75) 10.002 10.648 6.46% (6) 183,346.5 1,952,257
Qualified XII (0.80) 10.646 11.358 6.69% (5) 3,962,527.0 45,007,206
Qualified XII (0.85) 13.327 15.360 15.25% (1) 1,379,122.4 21,183,810
Qualified XII (0.90) 10.451 11.157 6.76% (4) 1,648.2 18,389
Qualified XII (0.95) 13.226 15.320 15.83% 468,467.7 7,176,841
Qualified XII (1.00) 13.215 15.300 15.78% 2,019,116.4 30,891,695
Qualified XII (1.05) 13.204 15.279 15.71% 61,615.2 941,444
Qualified XII (1.10) 13.194 15.259 15.65% 10,484.1 159,980
Qualified XII (1.15) 13.183 15.239 15.60% 275,680.7 4,201,140
Qualified XII (1.20) 13.676 15.219 11.28% (2) 33,673.0 512,471
Qualified XII (1.25) 13.161 15.199 15.49% 1,535.4 23,337
Qualified XII (1.30) 13.150 15.179 15.43% 7.8 118
Qualified XII (1.40) 14.278 15.139 6.03% (5) 532.9 8,068
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Balanced VP (continued):
Qualified XII (1.50) $13.107 $15.099 15.20% 9,090.9 $ 137,262
Qualified XIII 18.901 21.893 15.83% 266,635.9 5,837,554
Qualified XV 18.870 21.857 15.83% 771,905.7 16,871,521
Qualified XVI 18.776 21.629 15.19% 385,861.9 8,345,934
Qualified XVII 18.837 21.808 15.77% 429,954.4 9,376,647
Qualified XVIII 18.837 21.808 15.77% 643,218.8 14,027,618
Qualified XIX 24.861 28.800 15.84% 122,357.8 3,523,901
Qualified XX 24.735 28.636 15.77% 149,576.3 4,283,256
Annuity contracts in payment period 29,218,792
- ---------------------------------------------------------------------------------------------------------------------
Aetna Bond VP:
Qualified I 51.930 55.494 6.86% 26,694.1 1,481,367
Qualified III 51.330 54.819 6.80% 994,987.1 54,544,521
Qualified V 13.397 14.285 6.63% 8,614.2 123,053
Qualified VI 13.238 14.137 6.79% 15,101,998.1 213,504,437
Qualified VII 12.243 13.083 6.86% 189,500.4 2,479,295
Qualified VIII 12.190 13.018 6.79% 5,300.1 68,997
Qualified IX 12.330 13.221 7.23% 4,239.4 56,049
Qualified X (1.15) 13.293 14.211 6.91% 102,449.7 1,455,907
Qualified X (1.25) 13.238 14.137 6.79% 2,490,831.9 35,214,126
Qualified XI 13.316 14.264 7.12% 389,465.9 5,555,291
Qualified XII (0.40) 11.893 12.079 1.56% (11) 190,084.0 2,295,979
Qualified XII (0.50) 10.118 10.662 5.38% (4) 88,895.1 947,790
Qualified XII (0.75) 10.058 10.502 4.41% (6) 51,915.9 545,210
Qualified XII (0.80) 10.157 10.650 4.85% (5) 771,660.4 8,217,815
Qualified XII (0.85) 11.381 12.102 6.34% (1) 654,764.8 7,923,819
Qualified XII (0.90) 10.070 10.654 5.80% (3) 383.2 4,082
Qualified XII (0.95) 11.268 12.070 7.12% 187,652.9 2,264,942
Qualified XII (1.00) 11.258 12.054 7.07% 802,875.7 9,677,807
Qualified XII (1.05) 11.249 12.038 7.01% 50,220.3 604,552
Qualified XII (1.10) 11.240 12.022 6.96% 2,532.3 30,443
Qualified XII (1.15) 11.231 12.006 6.90% 106,178.7 1,274,807
Qualified XII (1.20) 11.283 11.990 6.27% (2) 23,608.3 283,072
Qualified XII (1.25) 11.217 11.975 6.76% (1) 1,197.4 14,338
Qualified XII (1.30) 11.203 11.959 6.75% 59,442.7 710,861
Qualified XII (1.40) 11.423 11.927 4.41% (5) 189.1 2,255
Qualified XII (1.50) 11.166 11.896 6.54% 27,679.9 329,273
Qualified XIII 13.301 14.248 7.12% 200,649.9 2,858,924
Qualified XV 13.279 14.225 7.12% 289,650.5 4,120,181
Qualified XVI 13.213 14.076 6.53% 199,388.3 2,806,677
Qualified XVII 13.249 14.171 6.96% 421,225.2 5,969,111
Qualified XVIII 13.249 14.171 6.96% 703,076.6 9,963,181
Qualified XIX 51.975 55.625 7.02% 18,270.8 1,016,314
Qualified XX 51.374 54.949 6.96% 24,550.7 1,349,028
Annuity contracts in payment period 6,384,037
- ---------------------------------------------------------------------------------------------------------------------
Aetna Crossroads VP:
Qualified III 14.456 15.120 4.59% 31,468.2 475,808
Qualified V 14.400 15.038 4.43% 266.3 4,005
Qualified VI 14.456 15.120 4.59% 2,863,811.8 43,301,656
Qualified VIII 14.453 15.116 4.59% 1,655.9 25,031
Qualified X (1.15) 14.835 15.532 4.70% 35,562.4 552,349
Qualified X (1.25) 14.797 15.478 4.60% 514,093.4 7,956,893
Qualified XI 14.541 15.255 4.91% 78,787.6 1,201,936
Qualified XII (0.40) 12.991 13.628 4.90% (11) 51,877.8 706,979
Qualified XII (0.45) 9.531 9.800 2.82% (12) 731.1 7,165
Qualified XII (0.50) 10.298 10.086 (2.06%) (4) 1,126.5 11,362
Qualified XII (0.75) 9.936 9.782 (1.55%) (6) 62,143.7 607,879
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Crossroads VP (continued):
Qualified XII (0.80) $10.524 $10.312 (2.01%) (5) 213,969.6 $ 2,206,459
Qualified XII (0.85) 13.063 13.654 4.52% (1) 102,916.2 1,405,196
Qualified XII (0.95) 12.980 13.618 4.92% 105,585.7 1,437,839
Qualified XII (1.00) 12.970 13.600 4.86% 168,963.5 2,297,868
Qualified XII (1.05) 12.959 13.582 4.81% 38,256.6 519,594
Qualified XII (1.10) 12.949 13.564 4.75% 14,611.0 198,182
Qualified XII (1.15) 12.938 13.546 4.70% 24,882.2 337,055
Qualified XII (1.20) 12.915 13.528 4.75% (1) 499,874.0 6,762,356
Qualified XII (1.25) 12.917 13.510 4.59% 8,074.9 109,094
Qualified XII (1.30) 12.906 13.492 4.54% 520.6 7,025
Qualified XII (1.40) 13.846 13.457 (2.81%) (5) 500.9 6,741
Qualified XII (1.50) 12.864 13.421 4.33% 22,767.6 305,573
Qualified XIII 14.526 15.239 4.91% 30,057.3 458,037
Qualified XV 14.501 15.214 4.92% 100,733.6 1,532,512
Qualified XVI 14.430 15.055 4.33% 32,996.7 496,765
Qualified XVII 14.485 15.204 4.96% 50,296.8 764,691
Qualified XVIII 14.827 15.563 4.96% 21,371.1 332,594
Annuity contracts in payment period 71,489
- --------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series B:
Qualified III 20.718 24.374 17.65% 2,484.4 60,555
Qualified VI 20.718 24.374 17.65% 985,962.2 24,031,914
Qualified X (1.25) 20.718 24.374 17.65% 256,573.6 6,253,743
Qualified XI 20.840 24.592 18.00% 239,997.9 5,901,967
Qualified XII (0.75) 10.505 10.948 4.22% (4) 5,251.3 57,493
Qualified XII (1.00) 9.974 10.323 3.50% (6) 2,321.4 23,963
Qualified XII (1.05) 11.069 11.514 4.02% (6) 277,120.5 3,190,757
Qualified XII (1.15) 12.852 15.216 18.39% (1) 35,803.1 544,787
Qualified XII (1.20) 12.870 15.186 18.00% 13,718.5 208,336
Qualified XII (1.25) 13.203 15.172 14.91% (10) 865,901.2 13,137,159
Qualified XII (1.30) 12.825 15.157 18.18% (1) 68,080.8 1,031,891
Qualified XII (1.40) 12.845 15.127 17.77% 1,060.3 16,040
Qualified XII (1.45) 14.415 15.112 4.84% (6) 1,372.5 20,741
Qualified XIII 20.818 24.565 18.00% 93,996.0 2,309,015
Qualified XV 20.783 24.524 18.00% 86,349.0 2,117,644
Qualified XVI 20.680 24.269 17.35% 1,049.7 25,475
Qualified XVII 20.718 24.374 17.65% 26,655.2 649,697
- --------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Qualified III 12.636 15.904 25.86% 737,715.1 11,732,640
Qualified VI 12.636 15.904 25.86% 7,446,679.1 118,432,185
Qualified XI 12.685 16.014 26.24% 761,714.6 12,197,745
Qualified XII (0.65) 14.392 16.025 11.35% (11) 42,433.1 680,005
Qualified XII (0.75) 10.520 11.696 11.18% (4) 14,905.0 174,326
Qualified XII (1.00) 10.012 10.999 9.86% (6) 10,347.4 113,809
Qualified XII (1.05) 11.056 12.202 10.37% (5) 1,503,095.6 18,340,765
Qualified XII (1.15) 12.877 16.050 24.64% (1) 118,746.7 1,905,910
Qualified XII (1.20) 12.685 16.014 26.24% 75,185.0 1,203,977
Qualified XII (1.25) 12.677 15.995 26.17% 1,498,695.3 23,971,956
Qualified XII (1.30) 12.841 15.977 24.42% (1) 20,116.4 321,400
Qualified XII (1.35) 14.400 15.959 10.83% (5) 2,128.7 33,971
Qualified XII (1.40) 12.653 15.940 25.98% 4,413.8 70,358
Qualified XII (1.45) 14.270 15.922 11.58% (6) 3,012.0 47,957
Qualified XII (1.75) 12.596 15.813 25.54% 495.7 7,839
Qualified XIII 12.685 16.014 26.24% 240,222.9 3,846,819
Qualified XV 12.676 16.002 26.24% 149,252.7 2,388,342
Qualified XVI 12.613 15.835 25.55% 38,452.8 608,917
Qualified XVII 12.636 15.904 25.86% 132,169.9 2,102,032
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Get Fund, Series D:
Qualified III $ 9.997 $ 10.062 0.65% (10) 1,665,880.7 $ 16,761,305
Qualified V 10.020 10.058 0.38% (11) 7,666.4 77,106
Qualified VI 9.997 10.062 0.65% (10) 11,162,070.9 112,307,489
Qualified IX 10.039 10.065 0.26% (12) 2,996.2 30,157
Qualified X (1.15) 10.009 10.062 0.53% (11) 107,240.1 1,078,999
Qualified X (1.25) 9.997 10.062 0.65% (10) 1,726,930.2 17,375,556
Qualified XI 9.998 10.068 0.70% (10) 1,733,084.5 17,449,528
Qualified XII (0.65) 10.020 10.076 0.56% (11) 37,674.2 379,602
Qualified XII (0.75) 10.065 10.079 0.14% (12) 5,093.2 51,334
Qualified XII (0.85) 9.998 10.071 0.73% (10) 143,089.7 1,441,027
Qualified XII (1.00) 9.998 10.073 0.75% (10) 17,547.2 176,755
Qualified XII (1.05) 9.998 10.072 0.74% (10) 3,535,548.4 35,609,867
Qualified XII (1.20) 9.996 10.068 0.72% (10) 94,345.5 949,916
Qualified XII (1.25) 10.000 10.067 0.67% (10) 5,027,992.4 50,618,444
Qualified XII (1.30) 9.998 10.066 0.68% (10) 217,493.5 2,189,324
Qualified XII (1.40) 9.997 10.064 0.67% (10) 18,631.2 187,501
Qualified XII (1.55) 10.002 10.060 0.58% (10) 32,997.9 331,971
Qualified XII (1.75) 10.019 10.056 0.37% (11) 7,346.0 73,870
Qualified XIII 9.998 10.068 0.70% (10) 423,655.2 4,265,565
Qualified XV 9.997 10.068 0.71% (10) 433,459.3 4,364,276
Qualified XVI 9.995 10.056 0.61% (10) 91,815.2 923,270
Qualified XVII 9.995 10.062 0.67% (10) 113,411.8 1,141,096
Qualified XVIII 9.997 10.062 0.65% (10) 317,662.6 3,196,172
- -------------------------------------------------------------------------------------------------------------
Aetna Growth and Income VP:
Qualified I 285.511 323.019 13.14% 140,708.4 45,451,460
Qualified III 217.359 245.765 13.07% 1,747,097.1 429,375,391
Qualified V 22.179 25.037 12.89% 13,723.7 343,603
Qualified VI 22.194 25.094 13.07% 134,233,827.6 3,368,523,807
Qualified VII 20.910 23.657 13.14% 8,868,088.4 209,791,507
Qualified VIII 20.609 23.301 13.06% 46,913.0 1,093,115
Qualified IX 20.525 23.323 13.63% 18,215.5 424,846
Qualified X (1.15) 22.287 25.225 13.18% 548,039.2 13,824,162
Qualified X (1.25) 22.194 25.094 13.07% 19,989,922.4 501,636,068
Qualified XI 22.325 25.319 13.41% 5,019,610.7 127,089,481
Qualified XII (0.40) 15.108 16.747 10.85% (11) 2,888,621.7 48,375,779
Qualified XII (0.45) 9.561 10.152 6.18% (12) 1,118.7 11,357
Qualified XII (0.50) 10.580 10.665 0.80% (4) 719,561.3 7,673,863
Qualified XII (0.75) 9.935 10.133 1.99% (6) 773,713.1 7,840,042
Qualified XII (0.80) 10.925 11.108 1.68% (5) 15,809,881.3 175,619,924
Qualified XII (0.85) 14.694 16.779 14.19% (1) 5,795,666.6 97,245,182
Qualified XII (0.90) 10.562 10.804 2.29% (3) 8,242.8 89,055
Qualified XII (0.95) 14.756 16.735 13.41% 2,224,466.5 37,225,732
Qualified XII (1.00) 14.744 16.713 13.35% 9,871,040.8 164,971,221
Qualified XII (1.05) 14.732 16.691 13.30% 326,490.2 5,449,309
Qualified XII (1.10) 14.720 16.669 13.24% 33,835.9 563,996
Qualified XII (1.15) 14.708 16.647 13.18% 581,225.8 9,675,416
Qualified XII (1.20) 14.696 16.625 13.13% 224,760.7 3,736,553
Qualified XII (1.25) 14.684 16.603 13.07% 35,132.5 583,294
Qualified XII (1.30) 14.672 16.581 13.01% 2,879.7 47,748
Qualified XII (1.40) 16.562 16.537 (0.15%) (4) 934.1 15,447
Qualified XII (1.50) 14.624 16.493 12.78% 47,949.7 790,856
Qualified XIII 22.301 25.291 13.41% 2,491,029.4 63,000,811
Qualified XV 22.264 25.249 13.41% 4,070,904.3 102,786,499
Qualified XVI 22.153 24.986 12.79% 1,587,350.5 39,661,776
Qualified XVII 22.226 25.193 13.35% 5,670,690.8 142,862,116
Qualified XVIII 22.226 25.193 13.35% 6,366,412.9 160,389,491
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- --------------------------------------------------------------------
<S> <C> <C>
Aetna Growth and Income VP (continued):
Qualified XIX $285.918 $324.288
Qualified XX 217.668 246.731
Annuity contracts in payment period
- --------------------------------------------------------------------
Aetna Growth VP:
Qualified III 11.392 13.597
Qualified V 15.281 17.862
Qualified VI 13.173 17.912
Qualified VIII 14.183 17.909
Qualified X (1.15) 13.183 17.943
Qualified X (1.25) 13.173 17.912
Qualified XI 13.202 18.005
Qualified XII (0.40) 15.200 18.018
Qualified XII (0.45) 10.444 11.470
Qualified XII (0.50) 10.479 12.397
Qualified XII (0.75) 9.925 11.449
Qualified XII (0.80) 11.326 13.030
Qualified XII (0.85) 13.357 18.036
Qualified XII (0.90) 10.958 12.681
Qualified XII (0.95) 13.202 18.005
Qualified XII (1.00) 12.674 17.989
Qualified XII (1.05) 13.192 17.974
Qualified XII (1.10) 13.188 17.958
Qualified XII (1.15) 13.183 17.943
Qualified XII (1.20) 14.173 17.927
Qualified XII (1.25) 12.876 17.912
Qualified XII (1.40) 15.724 17.865
Qualified XII (1.50) 13.027 17.834
Qualified XIII 13.202 18.005
Qualified XV 13.202 18.005
Qualified XVI 13.149 17.834
Qualified XVII 13.173 17.912
Qualified XVIII 15.603 18.010
Annuity contracts in payment period
- --------------------------------------------------------------------
Aetna High Yield VP:
Qualified VI 9.969 9.212
Qualified X (1.25) 9.968 9.212
Qualified XI 9.216 9.231
Qualified XII (0.40) 9.125 9.238
Qualified XII (0.50) 9.961 9.260
Qualified XII (0.75) 10.145 9.284
Qualified XII (0.80) 9.939 9.241
Qualified XII (0.85) 9.899 9.238
Qualified XII (0.95) 10.078 9.231
Qualified XII (1.00) 9.149 9.228
Qualified XII (1.05) 9.995 9.225
Qualified XII (1.10) 9.096 9.222
Qualified XII (1.15) 9.959 9.218
Qualified XII (1.20) 9.935 9.215
Qualified XIII 8.889 9.231
Qualified XV 10.044 9.231
Qualified XVI 9.616 9.196
Qualified XVII 9.135 9.212
Qualified XVIII 10.003 9.212
- --------------------------------------------------------------------
Aetna Index Plus Bond VP:
Qualified III 10.128 10.578
- --------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
---- ------- -------
<S> <C> <C> <C>
Aetna Growth and Income VP (continued):
Qualified XIX 13.42% 98,421.8 $ 31,917,036
Qualified XX 13.35% 195,339.4 48,196,262
Annuity contracts in payment period 328,867,005
- --------------------------------------------------------------------------------------------
Aetna Growth VP:
Qualified III 19.36% (9) 17.1 232
Qualified V 16.89% (4) 196.7 3,513
Qualified VI 35.98% 2,395,679.9 42,910,679
Qualified VIII 26.27% (2) 933.5 16,717
Qualified X (1.15) 36.11% 26,152.5 469,247
Qualified X (1.25) 35.98% 289,055.2 5,177,468
Qualified XI 36.38% 115,676.6 2,082,742
Qualified XII (0.40) 18.54% (11) 21,805.3 392,890
Qualified XII (0.45) 9.82% (12) 291.1 3,339
Qualified XII (0.50) 18.30% (4) 19,997.4 247,910
Qualified XII (0.75) 15.36% (6) 18,200.0 208,378
Qualified XII (0.80) 15.05% (5) 303,987.0 3,961,021
Qualified XII (0.85) 35.03% (1) 24,239.7 437,189
Qualified XII (0.90) 15.72% (4) 628.2 7,966
Qualified XII (0.95) 36.38% 25,777.5 464,120
Qualified XII (1.00) 41.94% (1) 194,080.7 3,491,376
Qualified XII (1.05) 36.25% 23,218.5 417,323
Qualified XII (1.10) 36.17% 1,760.5 31,615
Qualified XII (1.15) 36.11% 14,989.3 268,948
Qualified XII (1.20) 26.49% (2) 7,333.1 131,461
Qualified XII (1.25) 39.11% (1) 5,418.5 97,054
Qualified XII (1.40) 13.62% (5) 210.5 3,760
Qualified XII (1.50) 36.90% (1) 3,470.4 61,893
Qualified XIII 36.38% 81,692.7 1,470,865
Qualified XV 36.38% 59,373.8 1,069,017
Qualified XVI 35.63% 36,839.4 657,009
Qualified XVII 35.98% 25,257.0 452,395
Qualified XVIII 15.43% (5) 11,000.2 198,112
Annuity contracts in payment period 116,487
- --------------------------------------------------------------------------------------------
Aetna High Yield VP:
Qualified VI (7.59%) (5) 91,056.3 838,818
Qualified X (1.25) (7.58%) (6) 7,393.7 68,111
Qualified XI 0.16% (11) 1,841.9 17,003
Qualified XII (0.40) 1.24% (11) 1,146.3 10,589
Qualified XII (0.50) (7.04%) (5) 834.1 7,723
Qualified XII (0.75) (8.49%) (7) 0.3 3
Qualified XII (0.80) (7.02%) (6) 15,410.5 142,405
Qualified XII (0.85) (6.68%) (8) 643.7 5,946
Qualified XII (0.95) (8.40%) (7) 798.8 7,374
Qualified XII (1.00) 0.86% (9) 9,210.9 84,998
Qualified XII (1.05) (7.70%) (6) 110.4 1,019
Qualified XII (1.10) 1.39% (9) 10.2 94
Qualified XII (1.15) (7.44%) (6) 1,725.0 15,902
Qualified XII (1.20) (7.25%) (6) 131.8 1,215
Qualified XIII 3.85% (10) 16.5 153
Qualified XV (8.09%) (7) 1,308.2 12,076
Qualified XVI (4.37%) (8) 64.5 593
Qualified XVII 0.84% (12) 2,225.0 20,497
Qualified XVIII (7.91%) (6) 1,070.3 9,859
- --------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Qualified III 4.44% (5) 134,777.2 1,425,611
- --------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Index Plus Large Cap VP:
Qualified V $14.414 $18.704 29.76% 3,164.5 $ 59,187
Qualified VI 14.444 18.772 29.96% 7,100,482.5 133,292,287
Qualified VIII 14.443 18.769 29.95% 843.6 15,833
Qualified X (1.15) 14.463 18.815 30.09% 45,787.2 861,504
Qualified X (1.25) 14.444 18.772 29.96% 616,723.6 11,577,311
Qualified XI 14.500 18.902 30.36% 386,035.6 7,296,824
Qualified XII (0.40) 16.874 18.916 12.10% (11) 87,237.6 1,650,175
Qualified XII (0.45) 10.639 11.307 6.28% (12) 859.2 9,715
Qualified XII (0.50) 10.708 12.019 12.24% (4) 13,477.2 161,986
Qualified XII (0.75) 10.015 11.286 12.69% (6) 48,831.3 551,106
Qualified XII (0.80) 11.117 12.587 13.22% (5) 1,974,900.4 24,858,384
Qualified XII (0.85) 14.692 18.945 28.95% (1) 459,427.5 8,704,042
Qualified XII (0.90) 10.648 12.206 14.63% (3) 2,383.9 29,098
Qualified XII (0.95) 14.500 18.902 30.36% 108,387.2 2,048,730
Qualified XII (1.00) 14.491 18.880 30.29% 648,540.4 12,244,624
Qualified XII (1.05) 14.481 18.859 30.23% 51,170.0 964,995
Qualified XII (1.10) 14.472 18.837 30.16% 10,487.9 197,560
Qualified XII (1.15) 14.463 18.815 30.09% 26,209.5 493,143
Qualified XII (1.20) 14.453 18.794 30.04% 28,911.2 543,351
Qualified XII (1.25) 14.444 18.772 29.96% 593.5 11,141
Qualified XII (1.30) 14.435 18.751 29.90% 12,423.1 232,941
Qualified XII (1.40) 16.556 18.708 13.00% (5) 172.5 3,228
Qualified XII (1.50) 14.397 18.665 29.65% 16,814.2 313,835
Qualified XIII 14.500 18.902 30.36% 145,736.2 2,754,698
Qualified XIV 14.444 18.772 29.96% 1,302,824.7 24,456,998
Qualified XV 14.489 18.888 30.36% 136,251.8 2,573,507
Qualified XVI 14.418 18.691 29.64% 68,840.7 1,286,721
Qualified XVII 14.452 18.802 30.10% 48,458.7 911,108
Qualified XVIII 16.559 18.876 13.99% (5) 25,149.7 474,717
Annuity contracts in payment period 437,343
- ----------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP:
Qualified III 9.928 11.338 14.20% (5) 35,201.0 399,109
Qualified VI 10.107 10.891 7.76% (5) 146,921.2 1,600,074
Qualified X (1.25) 9.925 10.891 9.73% (5) 35,030.5 381,506
Qualified XI 7.633 10.913 42.97% (10) 5,165.7 56,375
Qualified XII (0.40) 9.480 10.921 15.20% (11) 1,186.8 12,961
Qualified XII (0.50) 10.050 10.947 8.93% (5) 2,661.9 29,140
Qualified XII (0.75) 9.822 11.183 13.86% (6) 1,622.7 18,147
Qualified XII (0.80) 9.576 10.925 14.09% (6) 80,312.2 877,375
Qualified XII (0.85) 9.028 10.921 20.97% (8) 5,681.1 62,042
Qualified XII (0.95) 10.108 10.913 7.96% (5) 564.1 6,156
Qualified XII (1.00) 7.996 10.909 36.43% (9) 24,015.5 261,997
Qualified XII (1.05) 9.624 10.906 13.32% (7) 167.7 1,829
Qualified XII (1.10) 9.772 10.902 11.56% (12) 2.6 28
Qualified XII (1.15) 9.105 10.898 19.69% (8) 95.5 1,040
Qualified XII (1.20) 9.662 10.894 12.75% (6) 451.6 4,920
Qualified XII (1.30) 9.805 10.887 11.04% (11) 40.6 442
Qualified XII (1.50) 9.216 10.872 17.97% (8) 44.9 488
Qualified XIII 9.927 10.913 9.93% (5) 9,117.4 99,501
Qualified XV 9.962 10.913 9.55% (5) 26,111.0 284,957
Qualified XVI 9.946 10.872 9.31% (7) 202.8 2,204
Qualified XVIII 9.017 10.891 20.78% (8) 1,486.1 16,186
- ----------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP:
Qualified III 10.193 9.157 (10.16%) (5) 81,388.0 745,282
Qualified V 6.661 8.806 32.20% (10) 7.3 64
Qualified VI 9.996 8.815 (11.81%) (5) 253,183.9 2,231,889
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- -------------------------------------------------------------------
<S> <C> <C>
Aetna Index Plus Small Cap VP (continued):
Qualified X (1.25) $ 9.918 $ 8.815
Qualified XI 6.425 8.834
Qualified XII (0.40) 8.071 8.840
Qualified XII (0.50) 9.328 8.861
Qualified XII (0.75) 9.642 9.201
Qualified XII (0.80) 9.269 8.843
Qualified XII (0.85) 8.464 8.840
Qualified XII (0.90) 9.582 8.837
Qualified XII (0.95) 9.366 8.834
Qualified XII (1.00) 9.580 8.831
Qualified XII (1.05) 9.530 8.827
Qualified XII (1.15) 9.569 8.821
Qualified XII (1.20) 9.244 8.818
Qualified XII (1.30) 8.198 8.812
Qualified XII (1.50) 7.150 8.800
Qualified XIII 9.997 8.834
Qualified XV 9.876 8.834
Qualified XVI 9.775 8.800
Qualified XVII 6.682 8.815
Qualified XVIII 8.454 8.815
- -------------------------------------------------------------------
Aetna International VP:
Qualified VI 10.182 9.765
Qualified X (1.25) 10.182 9.765
Qualified XI 8.779 9.785
Qualified XII (0.45) 9.231 9.567
Qualified XII (0.50) 8.967 9.815
Qualified XII (0.75) 9.600 9.550
Qualified XII (0.80) 10.043 9.795
Qualified XII (0.85) 9.580 9.792
Qualified XII (0.95) 10.103 9.785
Qualified XII (1.00) 10.061 9.781
Qualified XII (1.05) 8.935 9.778
Qualified XII (1.15) 9.763 9.771
Qualified XII (1.20) 9.973 9.768
Qualified XIII 10.183 9.785
Qualified XV 9.974 9.785
Qualified XVI 9.737 9.748
Qualified XVIII 10.021 9.765
- -------------------------------------------------------------------
Aetna Legacy VP:
Qualified III 13.491 14.248
Qualified V 13.439 14.171
Qualified VI 13.491 14.248
Qualified X (1.15) 13.583 14.360
Qualified X (1.25) 13.550 14.310
Qualified XI 13.571 14.375
Qualified XII (0.40) 12.598 13.111
Qualified XII (0.50) 10.115 10.293
Qualified XII (0.75) 9.977 10.054
Qualified XII (0.80) 10.359 10.423
Qualified XII (0.85) 12.497 13.136
Qualified XII (0.90) 10.390 10.351
Qualified XII (0.95) 12.369 13.102
Qualified XII (1.00) 12.358 13.084
Qualified XII (1.05) 12.348 13.067
Qualified XII (1.10) 12.338 13.050
Qualified XII (1.15) 12.328 13.033
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Index Plus Small Cap VP (continued):
Qualified X (1.25) (11.12%) (5) 40,793.4 $ 359,606
Qualified XI 37.49% (10) 6,054.3 53,481
Qualified XII (0.40) 9.53% (11) 3,928.4 34,727
Qualified XII (0.50) (5.01%) (6) 17.2 153
Qualified XII (0.75) (4.57%) (6) 1,480.7 13,624
Qualified XII (0.80) (4.60%) (6) 90,819.3 803,093
Qualified XII (0.85) 4.44% (8) 6,564.0 58,024
Qualified XII (0.90) (7.77%) (7) 62.0 548
Qualified XII (0.95) (5.68%) (6) 2,625.2 23,190
Qualified XII (1.00) (7.82%) (7) 27,046.5 238,835
Qualified XII (1.05) (7.38%) (7) 329.5 2,909
Qualified XII (1.15) (7.82%) (7) 1,234.1 10,887
Qualified XII (1.20) (4.61%) (6) 989.0 8,721
Qualified XII (1.30) 7.49% (11) 48.7 429
Qualified XII (1.50) 23.08% (8) 77.6 683
Qualified XIII (11.63%) (5) 12,799.8 113,068
Qualified XV (10.55%) (5) 26,256.7 231,941
Qualified XVI (9.97%) (5) 597.9 5,261
Qualified XVII 31.92% (10) 748.3 6,597
Qualified XVIII 4.27% (8) 1,150.8 10,143
- ------------------------------------------------------------------------------------------------------------
Aetna International VP:
Qualified VI (4.10%) (5) 97,659.7 953,611
Qualified X (1.25) (4.10%) (5) 25,090.2 244,996
Qualified XI 11.46% (10) 583.1 5,705
Qualified XII (0.45) 3.64% (12) 61.4 587
Qualified XII (0.50) 9.46% (11) 561.5 5,512
Qualified XII (0.75) (0.52%) (8) 7.1 68
Qualified XII (0.80) (2.47%) (6) 45,800.6 448,617
Qualified XII (0.85) 2.21% (8) 8,719.1 85,374
Qualified XII (0.95) (3.15%) (5) 1,246.5 12,197
Qualified XII (1.00) (2.78%) (5) 14,897.8 145,723
Qualified XII (1.05) 9.43% (8) 182.1 1,781
Qualified XII (1.15) 0.08% (8) 166.5 1,627
Qualified XII (1.20) (2.06%) (6) 122.9 1,201
Qualified XIII (3.91%) (5) 7,766.6 75,995
Qualified XV (1.89%) (8) 168.2 1,646
Qualified XVI 0.11% (6) 1,095.3 10,677
Qualified XVIII (2.55%) (6) 2,121.1 20,710
- ------------------------------------------------------------------------------------------------------------
Aetna Legacy VP:
Qualified III 5.61% 95,526.3 1,361,074
Qualified V 5.45% 536.8 7,607
Qualified VI 5.61% 1,971,280.9 28,087,126
Qualified X (1.15) 5.72% 76,396.2 1,097,045
Qualified X (1.25) 5.61% 507,368.3 7,260,552
Qualified XI 5.92% 63,385.3 911,193
Qualified XII (0.40) 4.07% (11) 19,291.3 252,937
Qualified XII (0.50) 1.76% (6) 165.1 1,699
Qualified XII (0.75) 0.77% (6) 21,150.2 212,634
Qualified XII (0.80) 0.62% (5) 418,989.2 4,367,015
Qualified XII (0.85) 5.11% (1) 61,042.9 801,884
Qualified XII (0.90) (0.38%) (5) 37.0 383
Qualified XII (0.95) 5.93% 55,493.5 727,061
Qualified XII (1.00) 5.87% 190,406.2 2,491,362
Qualified XII (1.05) 5.82% 62,452.8 816,080
Qualified XII (1.10) 5.77% 3,369.4 43,971
Qualified XII (1.15) 5.72% 23,052.4 300,435
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Legacy VP (continued):
Qualified XII (1.20) $12.606 $13.015 3.24% (2) 61,972.6 $ 806,604
Qualified XII (1.25) 12.308 12.998 5.61% 5,866.3 76,253
Qualified XII (1.30) 12.298 12.981 5.55% 30,754.8 399,233
Qualified XII (1.50) 12.257 12.913 5.35% 14,096.9 182,030
Qualified XIII 13.557 14.361 5.93% 17,755.5 254,980
Qualified XV 13.534 14.336 5.93% 80,906.6 1,159,876
Qualified XVI 13.467 14.187 5.35% 32,088.1 455,223
Qualified XVII 13.518 14.327 5.98% 10,683.7 153,062
Qualified XVIII 13.577 14.389 5.98% 58,579.8 842,907
Annuity contracts in payment period 261,063
- -----------------------------------------------------------------------------------------------------------------------------
Aetna Money Market VP:
Qualified I 41.763 43.523 4.21% 31,408.3 1,366,973
Qualified III 41.174 42.883 4.15% 564,537.2 24,209,040
Qualified V 11.888 12.362 3.99% 16,631.9 205,599
Qualified VI 11.951 12.447 4.15% 10,102,496.1 125,745,345
Qualified VII 11.867 12.367 4.21% 349,707.5 4,324,917
Qualified VIII 11.509 11.986 4.14% 3,278.4 39,294
Qualified IX 11.827 12.349 4.41% 1,816.8 22,435
Qualified X (1.15) 12.002 12.512 4.25% 190,680.2 2,385,820
Qualified X (1.25) 11.951 12.447 4.15% 2,329,194.7 28,991,388
Qualified XI 12.022 12.558 4.46% 230,562.1 2,895,449
Qualified XII (0.40) 11.148 11.225 0.69% (11) 107,235.3 1,203,719
Qualified XII (0.50) 10.050 10.399 3.47% (4) 34,355.4 357,246
Qualified XII (0.75) 10.022 10.283 2.60% (6) 26,809.9 275,699
Qualified XII (0.80) 10.136 10.414 2.74% (5) 1,574,453.7 16,396,164
Qualified XII (0.85) 10.799 11.246 4.14% (1) 396,668.8 4,461,110
Qualified XII (0.90) 10.297 10.381 0.82% (10) 1,235.3 12,824
Qualified XII (0.95) 10.738 11.217 4.46% 127,185.5 1,426,606
Qualified XII (1.00) 10.729 11.202 4.41% 1,039,908.8 11,649,013
Qualified XII (1.05) 10.720 11.187 4.36% 43,460.6 486,200
Qualified XII (1.10) 10.711 11.172 4.30% 6,783.6 75,790
Qualified XII (1.15) 10.702 11.158 4.26% 76,593.5 854,604
Qualified XII (1.20) 10.761 11.143 3.55% (2) 15,146.8 168,779
Qualified XII (1.25) 10.746 11.128 3.55% (2) 6,648.9 73,991
Qualified XII (1.30) 10.676 11.114 4.10% 13,000.2 144,478
Qualified XII (1.40) 10.821 11.084 2.43% (5) 160.5 1,779
Qualified XII (1.50) 10.641 11.055 3.89% 13,218.2 146,126
Qualified XIII 12.009 12.545 4.46% 132,737.2 1,665,127
Qualified XV 11.989 12.524 4.46% 300,194.8 3,759,548
Qualified XVI 11.929 12.393 3.89% 123,429.0 1,529,681
Qualified XVII 11.951 12.447 4.15% 553,914.9 6,894,555
Qualified XVIII 11.951 12.447 4.15% 853,247.4 10,620,334
Qualified XIX 41.763 43.523 4.21% 29,827.3 1,298,164
Qualified XX 41.174 42.883 4.15% 120,538.6 5,169,057
Annuity contracts in payment period 83,117
- -----------------------------------------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP:
Qualified VI 10.126 8.873 (12.37%) (5) 90,949.1 806,970
Qualified VIII 10.031 8.872 (11.55%) (7) 182.8 1,622
Qualified X (1.25) 9.904 8.873 (10.41%) (6) 12,789.0 113,474
Qualified XI 8.634 8.891 2.98% (10) 672.8 5,982
Qualified XII (0.40) 8.679 8.898 2.52% (11) 1,098.6 9,775
Qualified XII (0.50) 9.655 8.919 (7.62%) (6) 649.4 5,792
Qualified XII (0.75) 9.792 8.944 (8.66%) (6) 8.6 77
Qualified XII (0.80) 10.041 8.900 (11.36%) (7) 27,224.5 242,309
Qualified XII (0.85) 10.041 8.897 (11.39%) (7) 397.9 3,540
Qualified XII (0.95) 10.053 8.891 (11.56%) (5) 15,245.1 135,547
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- --------------------------------------------------------------------
<S> <C> <C>
Aetna Real Estate Securities VP (continued):
Qualified XII (1.00) $ 9.214 $ 8.888
Qualified XII (1.05) 9.899 8.885
Qualified XII (1.10) 9.159 8.882
Qualified XII (1.15) 10.034 8.879
Qualified XII (1.20) 9.633 8.876
Qualified XIII 10.127 8.891
Qualified XV 10.024 8.891
Qualified XVI 8.524 8.857
Qualified XVIII 9.907 8.873
- --------------------------------------------------------------------
Aetna Small Company VP:
Qualified V 13.186 13.595
Qualified VI 13.654 13.633
Qualified VIII 13.346 13.631
Qualified X (1.15) 13.664 13.657
Qualified X (1.25) 13.654 13.633
Qualified XI 13.684 13.704
Qualified XII (0.40) 12.820 13.714
Qualified XII (0.45) 8.583 9.176
Qualified XII (0.50) 10.719 9.312
Qualified XII (0.75) 9.812 9.159
Qualified XII (0.80) 10.578 9.764
Qualified XII (0.85) 13.558 13.728
Qualified XII (0.90) 10.939 9.513
Qualified XII (0.95) 13.684 13.704
Qualified XII (1.00) 14.234 13.692
Qualified XII (1.05) 13.674 13.680
Qualified XII (1.10) 13.669 13.668
Qualified XII (1.15) 13.664 13.657
Qualified XII (1.20) 14.380 13.645
Qualified XII (1.25) 13.203 13.633
Qualified XII (1.40) 11.872 13.598
Qualified XII (1.50) 13.629 13.574
Qualified XIII 13.684 13.704
Qualified XV 13.684 13.704
Qualified XVI 13.629 13.574
Qualified XVII 13.654 13.633
Qualified XVIII 15.646 13.708
Annuity contracts in payment period
- --------------------------------------------------------------------
Aetna Value Opportunity VP:
Qualified III 11.472 12.088
Qualified V 14.922 15.985
Qualified VI 13.261 16.030
Qualified VIII 14.070 16.028
Qualified X (1.25) 13.261 16.030
Qualified XI 13.290 16.113
Qualified XII (0.40) 13.986 16.125
Qualified XII (0.50) 10.508 11.369
Qualified XII (0.75) 9.921 10.620
Qualified XII (0.80) 10.972 11.692
Qualified XII (0.85) 13.404 16.141
Qualified XII (0.90) 10.515 11.462
Qualified XII (0.95) 13.290 16.113
Qualified XII (1.00) 12.765 16.099
Qualified XII (1.05) 13.281 16.085
Qualified XII (1.10) 13.276 16.071
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Real Estate Securities VP (continued):
Qualified XII (1.00) (3.54%) (9) 6,500.0 $ 57,773
Qualified XII (1.05) (10.24%) (6) 131.2 1,166
Qualified XII (1.10) (3.02%) (9) 15.5 138
Qualified XII (1.15) (11.51%) (7) 2,845.4 25,264
Qualified XII (1.20) (7.86%) (6) 371.7 3,299
Qualified XIII (12.20%) (5) 11,639.0 103,484
Qualified XV (11.30%) (5) 1,414.9 12,580
Qualified XVI 3.91% (9) 1,342.4 11,890
Qualified XVIII (10.44%) (6) 2,297.4 20,384
- ---------------------------------------------------------------------------------------------------------
Aetna Small Company VP:
Qualified V 3.10% (1) 11.6 158
Qualified VI (0.15%) 1,696,713.8 23,131,181
Qualified VIII 2.14% (1) 105.6 1,440
Qualified X (1.15) (0.05%) 20,254.4 276,606
Qualified X (1.25) (0.15%) 208,453.6 2,841,833
Qualified XI 0.15% 61,244.3 839,286
Qualified XII (0.40) 6.97% (11) 15,613.9 214,129
Qualified XII (0.45) 6.91% (12) 317.8 2,916
Qualified XII (0.50) (13.13%) (4) 7,540.9 70,221
Qualified XII (0.75) (6.66%) (6) 13,042.9 119,462
Qualified XII (0.80) (7.70%) (5) 1,165,744.5 11,382,850
Qualified XII (0.85) 1.25% (1) 25,298.1 347,283
Qualified XII (0.90) (13.04%) (4) 2,603.8 24,770
Qualified XII (0.95) 0.15% 44,944.2 615,911
Qualified XII (1.00) (3.81%) (2) 404,068.0 5,532,521
Qualified XII (1.05) 0.04% 5,235.3 71,620
Qualified XII (1.10) (0.01%) 6,323.0 86,425
Qualified XII (1.15) (0.05%) 9,141.2 124,838
Qualified XII (1.20) (5.11%) (2) 24,930.3 340,167
Qualified XII (1.25) 3.26% (1) 7,547.6 102,896
Qualified XII (1.40) 14.54% (9) 71.7 975
Qualified XII (1.50) (0.40%) 3,580.5 48,602
Qualified XIII 0.15% 52,935.6 725,425
Qualified XV 0.15% 49,514.4 678,541
Qualified XVI (0.40%) 21,070.1 286,008
Qualified XVII (0.15%) 4,296.5 58,574
Qualified XVIII (12.39%) (5) 3,089.3 42,347
Annuity contracts in payment period 9,901
- ---------------------------------------------------------------------------------------------------------
Aetna Value Opportunity VP:
Qualified III 5.37% (5) 33,957.0 410,457
Qualified V 7.12% (4) 116.2 1,857
Qualified VI 20.88% 1,079,290.5 17,300,643
Qualified VIII 13.92% (2) 170.3 2,730
Qualified X (1.25) 20.88% 112,738.5 1,807,157
Qualified XI 21.24% 54,627.0 880,205
Qualified XII (0.40) 15.29% (11) 11,799.4 190,264
Qualified XII (0.50) 8.19% (4) 992.7 11,286
Qualified XII (0.75) 7.05% (6) 14,488.0 153,864
Qualified XII (0.80) 6.56% (5) 350,825.7 4,101,946
Qualified XII (0.85) 20.42% (1) 15,014.4 242,346
Qualified XII (0.90) 9.01% (3) 3,526.4 40,419
Qualified XII (0.95) 21.24% 29,112.3 469,087
Qualified XII (1.00) 26.12% (1) 98,683.4 1,588,714
Qualified XII (1.05) 21.11% 3,647.9 58,677
Qualified XII (1.10) 21.05% 1,219.4 19,598
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- ------------------------------------------------------------------
<S> <C> <C>
Aetna Value Opportunity VP (continued):
Qualified XII (1.15) $13.271 $16.057
Qualified XII (1.20) 14.033 16.044
Qualified XII (1.25) 12.844 16.030
Qualified XII (1.30) 15.827 16.016
Qualified XII (1.40) 15.181 15.988
Qualified XII (1.50) 13.237 15.960
Qualified XIII 13.290 16.113
Qualified XV 13.290 16.113
Qualified XVI 13.237 15.960
Qualified XVII 12.899 16.030
Qualified XVIII 16.118 16.118
- ------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Qualified III 23.675 27.186
Qualified V 18.234 20.904
Qualified VI 17.840 20.485
Qualified VIII 16.207 18.609
Qualified X (1.25) 9.839 10.500
Qualified XI 17.946 20.668
Qualified XII (0.40) 13.635 14.976
Qualified XII (0.45) 10.217 10.714
Qualified XII (0.50) 10.377 10.966
Qualified XII (0.75) 10.081 10.694
Qualified XII (0.80) 10.492 11.254
Qualified XII (0.85) 13.124 15.005
Qualified XII (0.95) 12.994 14.965
Qualified XII (1.00) 12.983 14.945
Qualified XII (1.05) 12.972 14.926
Qualified XII (1.10) 13.068 14.906
Qualified XII (1.15) 12.951 14.886
Qualified XII (1.20) 13.354 14.867
Qualified XII (1.25) 12.930 14.847
Qualified XII (1.30) 12.919 14.827
Qualified XII (1.50) 12.877 14.749
Qualified XIII 17.926 20.646
Qualified XV 17.896 20.612
Qualified XVI 17.808 20.397
Qualified XVII 17.840 20.485
Qualified XVIII 10.094 10.500
- ------------------------------------------------------------------
Fidelity Investments Variable Insurance Products
Fund:
Equity-Income Portfolio:
Qualified III 16.587 18.285
Qualified V 15.723 17.305
Qualified VI 15.837 17.459
Qualified VIII 15.781 17.395
Qualified X (1.15) 19.890 21.948
Qualified X (1.25) 19.818 21.848
Qualified XI 15.931 17.615
Qualified XII (0.40) 14.267 15.192
Qualified XII (0.45) 9.516 9.968
Qualified XII (0.50) 10.522 10.363
Qualified XII (0.75) 9.914 9.950
Qualified XII (0.80) 10.873 10.850
Qualified XII (0.85) 13.708 15.220
Qualified XII (0.90) 9.265 10.671
Qualified XII (0.95) 13.729 15.180
Qualified XII (1.00) 13.718 15.160
<CAPTION>
- --------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Value Opportunity VP (continued):
Qualified XII (1.15) 20.99% 4,025.1 $ 64,633
Qualified XII (1.20) 14.33% (2) 12,115.1 194,368
Qualified XII (1.25) 24.81% (1) 1,234.3 19,786
Qualified XII (1.30) 1.19% (12) 87.7 1,405
Qualified XII (1.40) 5.32% (5) 39.1 625
Qualified XII (1.50) 20.57% 2,432.4 38,822
Qualified XIII 21.24% 19,971.3 321,798
Qualified XV 21.24% 32,611.7 525,472
Qualified XVI 20.57% 15,870.2 253,296
Qualified XVII 24.27% (1) 5,260.5 84,325
Qualified XVIII 0.00% (12) 84.5 1,359
- --------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Qualified III 14.83% 917,567.2 24,944,800
Qualified V 14.64% 1,516.9 31,708
Qualified VI 14.83% 1,306,652.4 26,767,345
Qualified VIII 14.82% 6,057.5 112,723
Qualified X (1.25) 6.72% (6) 17,067.7 179,203
Qualified XI 15.17% 71,154.2 1,470,649
Qualified XII (0.40) 9.83% (11) 38,218.1 572,357
Qualified XII (0.45) 4.86% (12) 552.8 5,922
Qualified XII (0.50) 5.68% (4) 50,868.4 557,814
Qualified XII (0.75) 6.08% (6) 9,542.9 102,055
Qualified XII (0.80) 7.26% (5) 91,332.8 1,027,864
Qualified XII (0.85) 14.33% (1) 132,604.9 1,989,689
Qualified XII (0.95) 15.17% 95,020.1 1,421,979
Qualified XII (1.00) 15.11% 108,344.1 1,619,237
Qualified XII (1.05) 15.06% 25,821.6 385,403
Qualified XII (1.10) 14.06% (1) 1,048.3 15,626
Qualified XII (1.15) 14.94% 48,552.7 722,766
Qualified XII (1.20) 11.33% (2) 2,926.4 43,505
Qualified XII (1.25) 14.83% 50.5 750
Qualified XII (1.30) 14.77% 13.0 192
Qualified XII (1.50) 14.54% 1,708.5 25,199
Qualified XIII 15.17% 21,808.2 450,252
Qualified XV 15.18% 37,944.0 782,091
Qualified XVI 14.54% 24,487.0 499,461
Qualified XVII 14.83% 3,612.3 74,000
Qualified XVIII 4.02% (7) 9,411.8 98,817
- --------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance
Products Fund:
Equity-Income Portfolio:
Qualified III 10.24% 2,533,673.2 46,328,715
Qualified V 10.06% 488.1 8,446
Qualified VI 10.24% 6,281,076.6 109,662,239
Qualified VIII 10.23% 4,737.8 82,416
Qualified X (1.15) 10.35% 114,565.1 2,514,522
Qualified X (1.25) 10.24% 1,332,062.6 29,102,669
Qualified XI 10.57% 239,213.5 4,213,775
Qualified XII (0.40) 6.48% (11) 54,319.8 825,201
Qualified XII (0.45) 4.75% (12) 519.2 5,176
Qualified XII (0.50) (1.51%) (4) 6,791.1 70,376
Qualified XII (0.75) 0.36% (6) 67,227.1 668,920
Qualified XII (0.80) (0.21%) (5) 846,659.8 9,186,377
Qualified XII (0.85) 11.03% (1) 306,098.9 4,658,977
Qualified XII (0.90) 15.18% (9) 20.0 213
Qualified XII (0.95) 10.57% 147,150.0 2,233,784
Qualified XII (1.00) 10.51% 409,327.3 6,205,534
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Equity-Income Portfolio (continued):
Qualified XII (1.05) $13.706 $15.140 10.46% 81,061.5 $ 1,227,296
Qualified XII (1.10) 13.695 15.120 10.41% 4,490.0 67,891
Qualified XII (1.15) 13.684 15.100 10.35% 62,313.0 940,950
Qualified XII (1.20) 14.168 15.080 6.44% (2) 13,583.5 204,846
Qualified XII (1.25) 13.661 15.061 10.25% 8,740.6 131,639
Qualified XII (1.30) 13.650 15.041 10.19% 3,611.9 54,325
Qualified XII (1.40) 15.124 15.001 (0.81%) (5) 2,077.2 31,160
Qualified XII (1.50) 13.606 14.961 9.96% 9,413.6 140,841
Qualified XIII 15.914 17.596 10.57% 74,067.2 1,303,285
Qualified XV 15.887 17.567 10.57% 68,970.1 1,211,581
Qualified XVI 15.808 17.384 9.97% 222,658.2 3,870,640
Qualified XVII 15.837 17.459 10.24% 44,812.1 782,380
Qualified XVIII 19.818 21.848 10.24% 21,380.3 467,113
- ----------------------------------------------------------------------------------------------------------------------
Growth Portfolio:
Qualified I 13.142 18.115 37.84% 448.8 8,131
Qualified III 14.087 19.406 37.76% 71.9 1,395
Qualified V 14.021 19.285 37.54% 1,160.1 22,372
Qualified VI 13.904 19.155 37.77% 7,144,437.7 136,848,861
Qualified VIII 14.073 19.385 37.75% 5,391.9 104,524
Qualified X (1.15) 19.409 26.764 37.89% 76,868.5 2,057,310
Qualified X (1.25) 19.339 26.641 37.76% 1,278,104.0 34,049,762
Qualified XI 13.987 19.326 38.17% 292,984.6 5,662,140
Qualified XII (0.40) 15.510 17.525 12.99% (11) 128,517.6 2,252,224
Qualified XII (0.50) 10.651 12.779 19.98% (4) 18,614.4 237,873
Qualified XII (0.75) 9.956 12.150 22.04% (6) 63,727.2 774,299
Qualified XII (0.80) 10.887 13.307 22.23% (5) 981,477.1 13,060,689
Qualified XII (0.85) 12.857 17.558 36.56% (1) 399,819.9 7,020,059
Qualified XII (0.90) 10.757 12.978 20.65% (4) 1,343.2 17,433
Qualified XII (0.95) 12.674 17.512 38.17% 165,194.2 2,892,838
Qualified XII (1.00) 12.663 17.489 38.11% 581,798.3 10,174,875
Qualified XII (1.05) 12.653 17.466 38.04% 65,095.3 1,136,925
Qualified XII (1.10) 12.643 17.443 37.97% 13,477.5 235,081
Qualified XII (1.15) 12.632 17.420 37.90% 70,232.0 1,223,407
Qualified XII (1.20) 13.438 17.397 29.46% (2) 58,305.3 1,014,312
Qualified XII (1.25) 12.612 17.374 37.76% 9,906.3 172,109
Qualified XII (1.30) 12.601 17.351 37.70% 2,635.9 45,735
Qualified XII (1.40) 14.386 17.305 20.29% (5) 4,116.0 71,227
Qualified XII (1.50) 12.560 17.259 37.41% 12,955.9 223,609
Qualified XIII 13.972 19.305 38.17% 100,561.3 1,941,310
Qualified XV 13.948 19.273 38.18% 176,188.4 3,395,613
Qualified XVI 13.879 19.072 37.42% 228,968.9 4,366,889
Qualified XVII 13.904 19.155 37.77% 41,575.2 796,355
Qualified XVIII 19.339 26.641 37.76% 22,564.9 601,146
- ----------------------------------------------------------------------------------------------------------------------
High Income Portfolio:
Qualified III 9.995 9.023 (9.72%) (5) 178,600.9 1,611,556
- ----------------------------------------------------------------------------------------------------------------------
Overseas Portfolio:
Qualified V 12.222 13.587 11.17% 33.6 457
Qualified VI 12.269 13.662 11.35% 651,566.3 8,901,467
Qualified VIII 12.267 13.658 11.34% 243.9 3,331
Qualified X (1.15) 12.686 14.140 11.46% 15,875.5 224,473
Qualified X (1.25) 12.640 14.074 11.34% 194,687.2 2,740,125
Qualified XI 12.342 13.784 11.68% 26,108.2 359,869
Qualified XII (0.40) 12.178 13.170 8.15% (11) 10,817.1 142,461
Qualified XII (0.50) 10.774 10.183 (5.49%) (4) 251.0 2,556
Qualified XII (0.75) 9.912 9.427 (4.89%) (6) 4,502.1 42,443
Qualified XII (0.80) 11.184 10.530 (5.85%) (5) 47,503.2 500,227
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Overseas Portfolio (continued):
Qualified XII (0.85) $12.182 $13.195 8.32% (1) 13,936.7 $ 183,897
Qualified XII (0.95) 11.783 13.160 11.69% 9,216.6 121,293
Qualified XII (1.00) 11.774 13.143 11.63% 44,182.9 580,693
Qualified XII (1.05) 11.764 13.126 11.58% 9,112.9 119,612
Qualified XII (1.10) 11.754 13.108 11.52% 1,859.7 24,378
Qualified XII (1.15) 11.745 13.091 11.46% 9,778.0 128,004
Qualified XII (1.20) 12.430 13.074 5.18% (2) 5,796.8 75,785
Qualified XII (1.25) 11.726 13.056 11.34% 687.9 8,982
Qualified XII (1.30) 11.716 13.039 11.29% 408.4 5,325
Qualified XII (1.40) 13.828 13.005 (5.95%) (5) 112.7 1,466
Qualified XII (1.50) 11.678 12.971 11.07% 467.9 6,069
Qualified XIII 12.328 13.769 11.69% 14,164.7 195,030
Qualified XV 12.308 13.746 11.68% 17,178.0 236,126
Qualified XVI 12.247 13.603 11.07% 11,522.9 156,741
Qualified XVII 12.269 13.662 11.35% 1,816.0 24,809
Qualified XVIII 12.640 14.074 11.34% 2,059.3 28,983
- -----------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance
Products Fund II:
Asset Manager Portfolio:
Qualified III 14.715 16.719 13.62% 1,596,943.4 26,699,659
- -----------------------------------------------------------------------------------------------------------------
Contrafund Portfolio:
Qualified III 17.276 22.177 28.37% 3,333,319.6 73,922,966
Qualified V 15.315 19.627 28.16% 1,261.0 24,749
Qualified VI 15.270 19.601 28.36% 9,575,607.6 187,691,926
Qualified VIII 15.371 19.729 28.35% 3,321.4 65,530
Qualified X (1.15) 17.201 22.103 28.50% 19,136.2 422,961
Qualified X (1.25) 17.156 22.023 28.37% 834,976.3 18,388,472
Qualified XI 15.360 19.776 28.75% 209,707.3 4,147,194
Qualified XII (0.40) 15.219 17.813 17.04% (11) 197,022.1 3,509,529
Qualified XII (0.45) 10.553 11.475 8.74% (12) 1,753.8 20,125
Qualified XII (0.50) 10.673 11.985 12.29% (4) 8,618.1 103,285
Qualified XII (0.75) 9.912 11.454 15.56% (6) 78,074.5 894,250
Qualified XII (0.80) 10.937 12.589 15.10% (5) 2,102,804.7 26,471,967
Qualified XII (0.85) 13.824 17.847 29.10% (1) 217,720.3 3,885,627
Qualified XII (0.90) 10.737 12.293 14.49% (3) 1,037.9 12,758
Qualified XII (0.95) 13.825 17.800 28.75% 254,733.6 4,534,200
Qualified XII (1.00) 13.814 17.776 28.68% 1,138,179.9 20,232,652
Qualified XII (1.05) 13.802 17.753 28.63% 90,949.6 1,614,615
Qualified XII (1.10) 13.791 17.729 28.55% 5,767.6 102,257
Qualified XII (1.15) 13.780 17.706 28.49% 85,590.6 1,515,471
Qualified XII (1.20) 13.768 17.683 28.44% 29,528.3 522,139
Qualified XII (1.25) 13.757 17.659 28.36% 11,736.6 207,260
Qualified XII (1.30) 13.746 17.636 28.30% 10,680.8 188,366
Qualified XII (1.40) 15.738 17.590 11.77% (4) 1,990.2 35,007
Qualified XII (1.50) 13.701 17.543 28.04% 11,751.1 206,153
Qualified XIII 15.343 19.755 28.76% 176,552.7 3,487,733
Qualified XV 15.318 19.722 28.75% 187,525.3 3,698,342
Qualified XVI 15.242 19.516 28.04% 157,444.1 3,072,751
Qualified XVII 15.270 19.601 28.36% 31,455.3 616,556
Qualified XVIII 17.156 22.023 28.37% 22,090.1 486,485
- -----------------------------------------------------------------------------------------------------------------
Index 500 Portfolio:
Qualified III 18.662 23.650 26.73% 3,947,186.8 93,352,318
- -----------------------------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Qualified III 18.174 24.098 32.60% 2,142,129.7 51,620,505
Qualified V 15.720 20.810 32.38% 2,389.5 49,726
Qualified VI 15.801 20.951 32.59% 7,536,062.4 157,891,352
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- ------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- ------------------------------------------------------------------
<S> <C> <C>
Aggressive Growth Portfolio (continued):
Qualified VIII $15.798 $20.945
Qualified X (1.15) 15.295 20.300
Qualified X (1.25) 15.254 20.226
Qualified XI 15.895 21.139
Qualified XII (0.40) 11.663 14.125
Qualified XII (0.50) 10.570 12.541
Qualified XII (0.75) 9.887 12.109
Qualified XII (0.80) 10.647 13.056
Qualified XII (0.85) 10.427 14.152
Qualified XII (0.90) 10.787 12.830
Qualified XII (0.95) 10.613 14.114
Qualified XII (1.00) 10.604 14.096
Qualified XII (1.05) 10.596 14.077
Qualified XII (1.10) 10.587 14.059
Qualified XII (1.15) 10.578 14.040
Qualified XII (1.20) 10.956 14.022
Qualified XII (1.25) 10.561 14.003
Qualified XII (1.30) 10.552 13.985
Qualified XII (1.40) 11.943 13.948
Qualified XII (1.50) 10.518 13.911
Qualified XIII 15.878 21.116
Qualified XV 15.851 21.081
Qualified XVI 15.773 20.861
Qualified XVII 15.801 20.951
Qualified XVIII 15.254 20.226
- ------------------------------------------------------------------
Balanced Portfolio:
Qualified III 15.016 19.914
Qualified V 14.954 19.800
Qualified VI 15.012 19.908
Qualified VIII 15.009 19.903
Qualified X (1.15) 15.616 20.731
Qualified X (1.25) 15.576 20.657
Qualified XI 15.100 20.086
Qualified XII (0.40) 15.614 17.878
Qualified XII (0.45) 10.945 11.816
Qualified XII (0.50) 10.615 12.415
Qualified XII (0.75) 9.856 11.794
Qualified XII (0.80) 10.741 12.741
Qualified XII (0.85) 13.744 17.912
Qualified XII (0.90) 10.570 12.490
Qualified XII (0.95) 13.431 17.865
Qualified XII (1.00) 13.420 17.841
Qualified XII (1.05) 13.409 17.818
Qualified XII (1.10) 13.398 17.794
Qualified XII (1.15) 13.387 17.771
Qualified XII (1.20) 14.246 17.747
Qualified XII (1.25) 13.370 17.724
Qualified XII (1.30) 13.354 17.701
Qualified XII (1.40) 15.102 17.654
Qualified XII (1.50) 13.310 17.607
Qualified XIII 15.084 20.064
Qualified XV 15.059 20.031
Qualified XVI 14.984 19.822
Qualified XVII 15.012 19.908
Qualified XVIII 15.576 20.657
- ------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aggressive Growth Portfolio (continued):
Qualified VIII 32.58% 5,606.5 $ 117,425
Qualified X (1.15) 32.72% 15,875.8 322,277
Qualified X (1.25) 32.59% 565,274.8 11,433,071
Qualified XI 32.99% 283,820.6 5,999,598
Qualified XII (0.40) 21.11% (11) 198,263.9 2,800,434
Qualified XII (0.50) 18.65% (4) 134,432.0 1,685,956
Qualified XII (0.75) 22.47% (6) 117,102.9 1,418,013
Qualified XII (0.80) 22.63% (5) 1,605,725.7 20,964,683
Qualified XII (0.85) 35.72% (1) 320,159.2 4,530,814
Qualified XII (0.90) 18.94% (4) 353.1 4,531
Qualified XII (0.95) 32.99% 375,663.3 5,302,265
Qualified XII (1.00) 32.93% 997,760.1 14,064,209
Qualified XII (1.05) 32.85% 114,249.2 1,608,306
Qualified XII (1.10) 32.79% 3,031.6 42,621
Qualified XII (1.15) 32.73% 103,123.2 1,447,854
Qualified XII (1.20) 27.98% (2) 43,050.2 603,629
Qualified XII (1.25) 32.59% 4,812.4 67,388
Qualified XII (1.30) 32.53% 3,585.6 50,142
Qualified XII (1.40) 16.79% (4) 1,441.3 20,102
Qualified XII (1.50) 32.26% 13,650.3 189,886
Qualified XIII 32.99% 120,002.0 2,533,930
Qualified XV 32.99% 212,741.1 4,484,705
Qualified XVI 32.26% 100,074.7 2,087,661
Qualified XVII 32.59% 32,181.5 674,250
Qualified XVIII 32.59% 10,568.2 213,749
- ----------------------------------------------------------------------------------------------------------
Balanced Portfolio:
Qualified III 32.62% 3,698.2 73,645
Qualified V 32.41% 426.9 8,452
Qualified VI 32.61% 3,192,160.0 63,550,099
Qualified VIII 32.61% 3,145.3 62,600
Qualified X (1.15) 32.75% 22,910.9 474,964
Qualified X (1.25) 32.62% 447,035.2 9,234,497
Qualified XI 33.02% 105,755.4 2,124,205
Qualified XII (0.40) 14.50% (11) 39,424.1 704,830
Qualified XII (0.45) 7.96% (12) 612.1 7,232
Qualified XII (0.50) 16.96% (4) 30,062.0 373,209
Qualified XII (0.75) 19.66% (6) 26,591.6 313,619
Qualified XII (0.80) 18.62% (5) 425,124.8 5,416,639
Qualified XII (0.85) 30.33% (1) 47,668.3 853,846
Qualified XII (0.90) 18.16% (4) 478.6 5,977
Qualified XII (0.95) 33.01% 81,982.5 1,464,616
Qualified XII (1.00) 32.94% 184,550.3 3,292,638
Qualified XII (1.05) 32.88% 37,433.9 666,991
Qualified XII (1.10) 32.81% 4,709.2 83,797
Qualified XII (1.15) 32.75% 36,442.2 647,610
Qualified XII (1.20) 24.58% (2) 21,104.5 374,551
Qualified XII (1.25) 32.57% (1) 797.9 14,141
Qualified XII (1.30) 32.55% 668.1 11,826
Qualified XII (1.40) 16.90% (5) 564.4 9,964
Qualified XII (1.50) 32.28% 20,319.3 357,771
Qualified XIII 33.02% 45,434.7 911,610
Qualified XV 33.02% 89,095.1 1,784,651
Qualified XVI 32.29% 53,979.8 1,070,002
Qualified XVII 32.61% 23,034.8 458,581
Qualified XVIII 32.62% 25,387.3 524,429
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Flexible Income Portfolio:
Qualified III $ 14.430 $ 15.548 7.75% 8,966.5 $ 139,412
Qualified V 14.299 15.383 7.58% 24.7 380
Qualified VI 14.373 15.487 7.75% 1,213,451.1 18,792,980
Qualified VIII 14.370 15.482 7.74% 283.5 4,389
Qualified X (1.25) 10.054 10.419 3.63% (5) 54,517.2 568,008
Qualified XI 14.458 15.626 8.08% 57,101.4 892,246
Qualified XII (0.40) 12.743 13.053 2.43% (11) 21,373.8 278,992
Qualified XII (0.45) 10.457 10.446 (0.11%) (12) 82.2 859
Qualified XII (0.50) 10.186 10.640 4.46% (4) 13,363.7 142,197
Qualified XII (0.75) 10.062 10.427 3.63% (6) 6,947.4 72,440
Qualified XII (0.80) 10.210 10.643 4.24% (5) 367,677.1 3,913,004
Qualified XII (0.85) 12.306 13.078 6.27% (1) 25,566.1 334,351
Qualified XII (0.90) 10.232 10.638 3.97% (4) 392.7 4,178
Qualified XII (0.95) 12.069 13.043 8.07% 36,739.5 479,207
Qualified XII (1.00) 12.059 13.026 8.02% 414,150.6 5,394,811
Qualified XII (1.05) 12.049 13.009 7.97% 13,507.0 175,712
Qualified XII (1.10) 12.039 12.992 7.92% 2,779.8 36,115
Qualified XII (1.15) 12.029 12.975 7.86% 8,868.9 115,071
Qualified XII (1.20) 12.212 12.958 6.11% (2) 13,990.2 181,278
Qualified XII (1.25) 12.112 12.940 6.84% (1) 126.4 1,636
Qualified XII (1.30) 12.225 12.923 5.71% (3) 8,960.0 115,794
Qualified XII (1.40) 12.375 12.889 4.15% (5) 30.2 389
Qualified XII (1.50) 11.960 12.855 7.48% 247.6 3,183
Qualified XIII 14.442 15.609 8.08% 10,857.1 169,464
Qualified XV 14.418 15.583 8.08% 20,316.8 316,591
Qualified XVI 14.347 15.420 7.48% 14,524.0 223,965
Qualified XVII 14.373 15.487 7.75% 9,336.5 144,596
- ---------------------------------------------------------------------------------------------------------------------
Growth Portfolio:
Qualified III 16.816 22.529 33.97% 1,354,047.1 30,505,388
Qualified V 15.368 20.556 33.76% 1,053.4 21,653
Qualified VI 15.414 20.651 33.98% 2,995,268.0 61,855,860
Qualified VIII 15.424 20.663 33.97% 1,852.6 38,279
Qualified X (1.15) 16.528 22.165 34.11% 33,675.9 746,443
Qualified X (1.25) 16.485 22.086 33.98% 465,445.6 10,279,993
Qualified XI 15.505 20.836 34.38% 128,843.5 2,684,540
Qualified XII (0.40) 14.790 17.807 20.40% (11) 73,901.1 1,315,941
Qualified XII (0.50) 10.286 12.391 20.46% (4) 7,784.6 96,459
Qualified XII (0.75) 9.810 11.666 18.92% (6) 41,103.5 479,534
Qualified XII (0.80) 10.918 12.836 17.57% (5) 434,912.8 5,582,684
Qualified XII (0.85) 13.512 17.841 32.04% (1) 446,603.2 7,967,771
Qualified XII (0.90) 10.569 12.464 17.93% (6) 127.7 1,591
Qualified XII (0.95) 13.242 17.794 34.38% 53,447.5 951,030
Qualified XII (1.00) 13.231 17.770 34.31% 220,151.3 3,912,152
Qualified XII (1.05) 13.220 17.747 34.24% 45,804.1 812,878
Qualified XII (1.10) 13.209 17.723 34.17% 2,555.4 45,291
Qualified XII (1.15) 13.198 17.700 34.11% 39,188.1 693,632
Qualified XII (1.20) 14.218 17.677 24.33% (2) 19,753.5 349,177
Qualified XII (1.25) 13.177 17.653 33.97% 5,365.3 94,715
Qualified XII (1.30) 13.166 17.630 33.91% 911.2 16,065
Qualified XII (1.40) 15.123 17.584 16.27% (5) 2,368.3 41,643
Qualified XII (1.50) 13.123 17.537 33.64% 8,841.6 155,057
Qualified XIII 15.489 20.813 34.37% 47,156.5 981,469
Qualified XV 15.463 20.778 34.37% 61,354.9 1,274,858
Qualified XVI 15.386 20.562 33.64% 56,524.9 1,162,269
Qualified XVII 15.414 20.651 33.98% 7,087.9 146,374
Qualified XVIII 16.485 22.086 33.98% 21,941.8 484,614
Annuity contracts in payment period 235,492
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- --------------------------------------------------------------
<S> <C> <C>
Worldwide Growth Portfolio:
Qualified III $18.690 $23.797
Qualified V 16.782 21.334
Qualified VI 16.720 21.288
Qualified VIII 16.670 21.223
Qualified X (1.15) 18.828 23.996
Qualified X (1.25) 18.779 23.910
Qualified XI 16.819 21.478
Qualified XII (0.40) 15.344 17.582
Qualified XII (0.45) 9.630 10.235
Qualified XII (0.50) 10.980 11.485
Qualified XII (0.75) 9.953 10.217
Qualified XII (0.80) 11.798 12.009
Qualified XII (0.85) 14.300 17.615
Qualified XII (0.90) 10.606 11.745
Qualified XII (0.95) 13.757 17.569
Qualified XII (1.00) 13.746 17.545
Qualified XII (1.05) 13.735 17.522
Qualified XII (1.10) 13.724 17.499
Qualified XII (1.15) 13.712 17.476
Qualified XII (1.20) 13.701 17.453
Qualified XII (1.25) 13.690 17.430
Qualified XII (1.30) 13.679 17.407
Qualified XII (1.40) 16.231 17.361
Qualified XII (1.50) 13.634 17.315
Qualified XIII 16.800 21.455
Qualified XV 16.773 21.419
Qualified XVI 16.689 21.196
Qualified XVII 16.720 21.288
Qualified XVIII 18.779 23.910
Annuity contracts in payment period
- --------------------------------------------------------------
Lexington Emerging Markets Fund:
Qualified III 7.715 5.470
- --------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Qualified III 14.403 11.433
Qualified V 15.987 12.670
Qualified VI 15.541 12.336
Qualified VIII 13.472 10.693
Qualified XI 15.633 12.446
Qualified XII (0.40) 9.754 9.626
Qualified XII (0.75) 9.791 7.696
Qualified XII (0.80) 10.922 8.415
Qualified XII (0.85) 11.047 9.645
Qualified XII (0.95) 12.082 9.619
Qualified XII (1.00) 12.072 9.606
Qualified XII (1.05) 12.062 9.594
Qualified XII (1.10) 8.980 9.581
Qualified XII (1.15) 12.042 9.568
Qualified XII (1.20) 11.980 9.556
Qualified XII (1.25) 12.022 9.543
Qualified XII (1.50) 11.973 9.480
Qualified XIII 15.616 12.433
Qualified XV 15.590 12.412
Qualified XVI 15.512 12.283
Qualified XVII 15.541 12.336
- --------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Worldwide Growth Portfolio:
Qualified III 27.32% 4,687,166.8 $111,538,596
Qualified V 27.12% 2,948.4 62,899
Qualified VI 27.32% 14,519,619.8 309,094,974
Qualified VIII 27.31% 6,944.9 147,391
Qualified X (1.15) 27.45% 74,103.7 1,778,187
Qualified X (1.25) 27.32% 1,360,741.2 32,534,708
Qualified XI 27.70% 655,880.5 14,087,149
Qualified XII (0.40) 14.59% (11) 383,490.2 6,742,350
Qualified XII (0.45) 6.28% (12) 1,185.6 12,135
Qualified XII (0.50) 4.60% (4) 37,288.1 428,241
Qualified XII (0.75) 2.65% (6) 167,605.9 1,712,362
Qualified XII (0.80) 1.79% (5) 4,480,347.5 53,804,310
Qualified XII (0.85) 23.18% (1) 710,850.5 12,521,719
Qualified XII (0.90) 10.74% (3) 5,139.9 60,366
Qualified XII (0.95) 27.71% 427,855.0 7,516,824
Qualified XII (1.00) 27.64% 2,151,201.8 37,743,896
Qualified XII (1.05) 27.57% 202,767.8 3,552,963
Qualified XII (1.10) 27.51% 14,917.9 261,052
Qualified XII (1.15) 27.45% 130,325.6 2,277,589
Qualified XII (1.20) 27.38% 46,823.7 817,219
Qualified XII (1.25) 27.32% 10,441.4 181,995
Qualified XII (1.30) 27.25% 6,473.0 112,676
Qualified XII (1.40) 6.96% (4) 648.5 11,260
Qualified XII (1.50) 27.00% 23,084.7 399,722
Qualified XIII 27.71% 236,904.3 5,082,747
Qualified XV 27.70% 301,775.4 6,463,796
Qualified XVI 27.01% 182,950.6 3,877,864
Qualified XVII 27.32% 67,482.4 1,436,571
Qualified XVIII 27.32% 65,838.9 1,574,179
Annuity contracts in payment period 365,972
- ----------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Qualified III (29.10%) 745,855.7 4,094,455
- ----------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Qualified III (20.62%) 534,962.3 6,116,289
Qualified V (20.75%) 2,110.3 26,737
Qualified VI (20.62%) 755,983.9 9,325,791
Qualified VIII (20.63%) 652.7 6,979
Qualified XI (20.39%) 37,897.4 471,683
Qualified XII (0.40) ( 1.31%) (11) 12,236.5 117,791
Qualified XII (0.75) (21.40%) (6) 13,174.5 101,395
Qualified XII (0.80) (22.95%) (5) 140,250.4 1,180,144
Qualified XII (0.85) (12.69%) (1) 14,189.8 136,854
Qualified XII (0.95) (20.39%) 51,076.6 491,310
Qualified XII (1.00) (20.43%) 75,695.4 727,160
Qualified XII (1.05) (20.46%) 2,960.6 28,403
Qualified XII (1.10) 6.69% (8) 31.3 300
Qualified XII (1.15) (20.54%) 12,058.7 115,382
Qualified XII (1.20) (20.23%) (6) 2,826.2 27,006
Qualified XII (1.25) (20.62%) 52.7 503
Qualified XII (1.50) (20.82%) 317.5 3,010
Qualified XIII (20.38%) 16,413.6 204,067
Qualified XV (20.38%) 38,283.4 475,178
Qualified XVI (20.82%) 14,341.8 176,155
Qualified XVII (20.62%) 745.1 9,190
- ----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End of Accumulation at End at End
of Year Year Unit of Year of Year
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MFS Funds:
Total Return Series:
Qualified III $10.182 $10.531 3.43% (5) 36,633.2 $ 385,767
- -----------------------------------------------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund:
Qualified III 10.077 10.303 2.24% (6) 20,547.5 211,700
Qualified VI 10.079 10.018 (0.61%) (5) 39,441.2 395,141
Qualified X (1.25) 9.865 10.018 1.55% (5) 11,129.0 111,496
Qualified XI 8.907 10.039 12.71% (10) 773.7 7,768
Qualified XII (0.40) 9.004 10.047 11.58% (11) 1,563.9 15,712
Qualified XII (0.50) 10.131 10.070 (0.60%) (7) 179.7 1,810
Qualified XII (0.75) 9.713 10.027 3.23% (6) 535.3 5,367
Qualified XII (0.80) 10.001 10.050 0.49% (7) 2,686.4 26,997
Qualified XII (0.85) 9.275 10.046 8.31% (8) 7,592.4 76,275
Qualified XII (0.95) 10.182 10.039 (1.40%) (7) 144.4 1,450
Qualified XII (1.00) 9.484 10.036 5.82% (8) 5,395.1 54,144
Qualified XII (1.05) 9.801 10.032 2.36% (6) 180.2 1,808
Qualified XII (1.10) 10.160 10.029 (1.29%) (7) 26.8 269
Qualified XII (1.15) 9.974 10.025 0.51% (7) 294.7 2,954
Qualified XII (1.30) 9.965 10.015 0.50% (12) 139.3 1,395
Qualified XII (1.40) 10.041 10.008 (0.33%) (7) 13.5 135
Qualified XIII 10.080 10.039 (0.41%) (5) 3,153.1 31,654
Qualified XV 10.042 10.039 (0.03%) (5) 381.8 3,833
Qualified XVI 9.728 10.001 2.81% (6) 152.2 1,522
Qualified XVII 8.115 10.018 23.45% (10) 2,464.5 24,691
- -----------------------------------------------------------------------------------------------------------------------
Strategic Bond Fund:
Qualified III 10.055 9.935 (1.19%) (5) 100,555.4 999,000
Qualified VI 10.015 9.895 (1.20%) (5) 71,074.2 703,260
Qualified X (1.25) 9.988 9.895 (0.93%) (5) 13,884.9 137,388
Qualified XI 9.660 9.915 2.64% (10) 176.2 1,747
Qualified XII (0.40) 9.695 9.923 2.35% (11) 1,512.8 15,011
Qualified XII (0.45) 9.975 9.953 (0.22%) (12) 574.6 5,719
Qualified XII (0.50) 9.995 9.946 (0.49%) (5) 14.2 142
Qualified XII (0.75) 10.029 9.935 (0.94%) (7) 924.6 9,186
Qualified XII (0.80) 10.025 9.926 (0.99%) (6) 18,785.5 186,456
Qualified XII (0.85) 9.935 9.922 (0.13%) (8) 2,776.3 27,546
Qualified XII (0.95) 10.037 9.915 (1.22%) (7) 614.0 6,088
Qualified XII (1.00) 9.991 9.912 (0.79%) (5) 7,329.1 72,645
Qualified XII (1.05) 9.582 9.908 3.40% (10) 4.8 47
Qualified XII (1.10) 9.720 9.905 1.90% (9) 22.4 222
Qualified XII (1.15) 10.052 9.902 (1.49%) (7) 688.9 6,821
Qualified XII (1.20) 9.905 9.898 (0.07%) (12) 56.6 561
Qualified XII (1.50) 9.973 9.878 (0.95%) (5) 2.5 25
Qualified XIII 10.056 9.915 (1.40%) (7) 1,158.4 11,486
Qualified XV 9.992 9.915 (0.77%) (5) 5,937.8 58,874
Qualified XVI 9.666 9.878 2.19% (11) 11.1 110
Qualified XVIII 10.023 9.895 (1.28%) (6) 1,136.4 11,244
Annuity contracts in payment period 3,521
- -----------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Qualified III 15.046 19.268 28.06% 3,101,879.7 59,766,560
Qualified V 14.893 19.041 27.85% 4,324.5 82,342
Qualified VI 14.927 19.114 28.05% 11,377,408.3 217,471,707
Qualified VIII 15.638 20.023 28.04% 12,327.2 246,830
Qualified X (1.15) 14.991 19.216 28.18% 72,541.9 1,393,949
Qualified X (1.25) 14.927 19.114 28.05% 1,369,984.2 26,186,352
Qualified XI 15.015 19.285 28.44% 595,462.3 11,483,622
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- --------------------------------------------------------------------------
<S> <C> <C>
PPI MFS Emerging Equities Portfolio (continued):
Qualified XII (0.40) $10.705 $12.776
Qualified XII (0.45) 10.094 11.002
Qualified XII (0.50) 9.990 10.841
Qualified XII (0.75) 9.828 10.982
Qualified XII (0.80) 10.687 11.846
Qualified XII (0.85) 10.399 12.800
Qualified XII (0.90) 10.233 11.462
Qualified XII (0.95) 9.940 12.767
Qualified XII (1.00) 9.932 12.750
Qualified XII (1.05) 9.923 12.733
Qualified XII (1.10) 9.915 12.716
Qualified XII (1.15) 9.907 12.699
Qualified XII (1.20) 11.093 12.683
Qualified XII (1.25) 9.891 12.666
Qualified XII (1.30) 9.883 12.649
Qualified XII (1.40) 11.707 12.616
Qualified XII (1.50) 9.850 12.582
Qualified XIII 14.999 19.264
Qualified XV 14.974 19.232
Qualified XVI 14.899 19.032
Qualified XVII 14.927 19.114
Qualified XVIII 14.927 19.114
Annuity contracts in payment period
- --------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Qualified I 9.041 10.989
Qualified III 11.960 14.528
Qualified V 13.682 16.593
Qualified VI 13.795 16.758
Qualified VII 11.627 14.132
Qualified VIII 11.636 14.134
Qualified IX 11.436 13.926
Qualified X (1.15) 13.852 16.844
Qualified X (1.25) 13.795 16.758
Qualified XI 13.877 16.907
Qualified XII (0.40) 9.362 10.641
Qualified XII (0.45) 9.862 10.577
Qualified XII (0.50) 10.490 11.127
Qualified XII (0.75) 9.917 10.558
Qualified XII (0.80) 11.019 11.682
Qualified XII (0.85) 8.861 10.661
Qualified XII (0.90) 10.954 11.375
Qualified XII (0.95) 8.727 10.633
Qualified XII (1.00) 8.720 10.619
Qualified XII (1.05) 8.713 10.605
Qualified XII (1.10) 10.008 10.591
Qualified XII (1.15) 8.698 10.577
Qualified XII (1.20) 9.310 10.563
Qualified XII (1.25) 8.597 10.549
Qualified XII (1.30) 8.677 10.535
Qualified XII (1.40) 9.977 10.507
Qualified XII (1.50) 8.649 10.479
Qualified XIII 13.862 16.889
Qualified XV 13.839 16.861
Qualified XVI 13.770 16.685
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PPI MFS Emerging Equities Portfolio (continued):
Qualified XII (0.40) 19.35% (11) 339,956.1 $ 4,343,297
Qualified XII (0.45) 9.00% (12) 371.1 4,083
Qualified XII (0.50) 8.52% (4) 178,397.7 1,933,950
Qualified XII (0.75) 11.74% (6) 139,546.5 1,532,495
Qualified XII (0.80) 10.84% (5) 3,491,453.8 41,360,324
Qualified XII (0.85) 23.09% (1) 706,142.1 9,038,965
Qualified XII (0.90) 12.01% (6) 236.2 2,707
Qualified XII (0.95) 28.44% 626,638.0 8,000,073
Qualified XII (1.00) 28.37% 2,223,124.5 28,344,393
Qualified XII (1.05) 28.32% 102,952.0 1,310,884
Qualified XII (1.10) 28.25% 6,017.4 76,519
Qualified XII (1.15) 28.18% 196,772.2 2,498,884
Qualified XII (1.20) 14.33% (2) 88,260.5 1,119,370
Qualified XII (1.25) 28.06% 21,617.0 273,798
Qualified XII (1.30) 27.99% 5,461.9 69,088
Qualified XII (1.40) 7.76% (5) 928.1 11,708
Qualified XII (1.50) 27.74% 5,349.1 67,305
Qualified XIII 28.44% 289,624.8 5,579,409
Qualified XV 28.44% 398,717.2 7,668,212
Qualified XVI 27.74% 135,640.9 2,581,496
Qualified XVII 28.05% 40,139.8 767,246
Qualified XVIII 28.05% 49,217.5 940,762
Annuity contracts in payment period 27,431
- --------------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Qualified I 21.55% 603.1 6,627
Qualified III 21.47% 1,379,652.6 21,623,158
Qualified V 21.28% 8,235.9 136,659
Qualified VI 21.48% 8,758,122.7 146,764,601
Qualified VII 21.54% 50,979.3 720,451
Qualified VIII 21.47% 12,597.3 178,046
Qualified IX 21.77% 1,089.6 15,174
Qualified X (1.15) 21.60% 5,155.0 86,830
Qualified X (1.25) 21.48% 1,054,685.1 17,673,929
Qualified XI 21.83% 378,797.5 6,404,485
Qualified XII (0.40) 13.66% (11) 331,957.8 3,532,250
Qualified XII (0.45) 7.25% (12) 473.4 5,007
Qualified XII (0.50) 6.07% (4) 79,769.0 887,585
Qualified XII (0.75) 6.46% (6) 46,474.6 490,680
Qualified XII (0.80) 6.02% (5) 750,388.3 8,766,147
Qualified XII (0.85) 20.31% (1) 616,204.9 6,569,356
Qualified XII (0.90) 3.84% (4) 827.6 9,414
Qualified XII (0.95) 21.84% 237,867.2 2,529,201
Qualified XII (1.00) 21.78% 741,692.5 7,875,882
Qualified XII (1.05) 21.71% 40,973.9 434,517
Qualified XII (1.10) 5.83% (5) 121.2 1,283
Qualified XII (1.15) 21.60% 135,558.5 1,433,769
Qualified XII (1.20) 13.46% (2) 49,879.0 526,859
Qualified XII (1.25) 22.71% (1) 3,244.0 34,220
Qualified XII (1.30) 21.41% 5,146.2 54,215
Qualified XII (1.40) 5.31% (5) 219.8 2,309
Qualified XII (1.50) 21.16% 1,814.1 19,011
Qualified XIII 21.84% 158,866.2 2,683,093
Qualified XV 21.84% 431,603.1 7,277,219
Qualified XVI 21.17% 146,727.9 2,448,181
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- -------------------------------------------------------------------
<S> <C> <C>
PPI MFS Research Growth Portfolio (continued):
Qualified XVII $ 13.795 $ 16.758
Qualified XVIII 13.795 16.758
Qualified XIX 9.041 10.989
Qualified XX 11.960 14.528
- -------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Qualified III 23.440 29.339
Qualified V 19.248 24.053
Qualified VI 19.291 24.145
Qualified VIII 16.585 20.756
Qualified X (1.15) 9.473 10.502
Qualified X (1.25) 9.828 10.495
Qualified XI 19.405 24.361
Qualified XII (0.40) 14.188 15.676
Qualified XII (0.45) 9.984 10.673
Qualified XII (0.50) 10.726 11.320
Qualified XII (0.75) 9.963 10.653
Qualified XII (0.80) 11.274 12.055
Qualified XII (0.85) 12.661 15.706
Qualified XII (0.90) 11.183 11.654
Qualified XII (0.95) 12.478 15.664
Qualified XII (1.00) 12.467 15.644
Qualified XII (1.05) 12.457 15.623
Qualified XII (1.10) 14.846 15.602
Qualified XII (1.15) 12.437 15.582
Qualified XII (1.20) 13.387 15.561
Qualified XII (1.25) 12.394 15.541
Qualified XII (1.30) 12.406 15.520
Qualified XII (1.40) 14.631 15.479
Qualified XII (1.50) 12.365 15.438
Qualified XIII 19.384 24.335
Qualified XV 19.352 24.294
Qualified XVI 19.256 24.041
Qualified XVII 19.291 24.145
Qualified XVIII 10.055 10.495
- -------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Qualified III 17.709 20.829
Qualified V 16.782 19.707
Qualified VI 16.986 19.978
Qualified VIII 14.312 16.832
Qualified X (1.15) 17.056 20.081
Qualified X (1.25) 16.986 19.978
Qualified XI 17.087 20.157
Qualified XII (0.40) 12.570 13.602
Qualified XII (0.50) 10.711 10.797
Qualified XII (0.75) 10.009 9.781
Qualified XII (0.80) 11.338 11.041
Qualified XII (0.85) 11.868 13.628
Qualified XII (0.90) 10.020 11.029
Qualified XII (0.95) 11.522 13.592
Qualified XII (1.00) 11.512 13.574
Qualified XII (1.05) 11.503 13.556
Qualified XII (1.10) 11.633 13.538
Qualified XII (1.15) 11.484 13.520
Qualified XII (1.20) 12.274 13.502
Qualified XII (1.25) 11.465 13.485
Qualified XII (1.30) 11.456 13.467
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PPI MFS Research Growth Portfolio
(continued):
Qualified XVII 21.48% 56,680.1 $ 949,819
Qualified XVIII 21.48% 75,738.1 1,269,184
Qualified XIX 21.55% 30,746.7 337,866
Qualified XX 21.47% 23,436.6 340,489
- ---------------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Qualified III 25.17% 2,244,308.4 65,845,563
Qualified V 24.96% 6,631.6 159,509
Qualified VI 25.16% 2,186,996.3 52,805,949
Qualified VIII 25.15% 11,497.4 238,643
Qualified X (1.15) 10.86% (11) 12,126.4 127,350
Qualified X (1.25) 6.79% (5) 42,212.8 443,007
Qualified XI 25.54% 182,556.6 4,447,294
Qualified XII (0.40) 10.49% (11) 36,644.4 574,430
Qualified XII (0.45) 6.90% (12) 191.7 2,046
Qualified XII (0.50) 5.54% (4) 71,604.9 810,587
Qualified XII (0.75) 6.93% (6) 49,316.4 525,368
Qualified XII (0.80) 6.93% (5) 376,470.9 4,538,245
Qualified XII (0.85) 24.05% (1) 382,755.1 6,011,447
Qualified XII (0.90) 4.21% (4) 957.3 11,156
Qualified XII (0.95) 25.53% 103,316.6 1,618,377
Qualified XII (1.00) 25.48% 291,491.9 4,559,986
Qualified XII (1.05) 25.42% 25,784.2 402,826
Qualified XII (1.10) 5.09% (4) 1,487.6 23,210
Qualified XII (1.15) 25.29% 75,919.6 1,182,959
Qualified XII (1.20) 16.24% (2) 19,782.0 307,830
Qualified XII (1.25) 25.39% (1) 1,059.7 16,468
Qualified XII (1.30) 25.10% 1,073.5 16,661
Qualified XII (1.40) 5.80% (5) 45.6 706
Qualified XII (1.50) 24.85% 1,255.5 19,383
Qualified XIII 25.54% 48,710.8 1,185,364
Qualified XV 25.54% 171,101.9 4,156,785
Qualified XVI 24.85% 28,002.3 673,209
Qualified XVII 25.16% 5,459.7 131,826
Qualified XVIII 4.38% (5) 1,552.3 16,292
- ---------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Qualified III 17.62% 2,962,630.7 61,707,422
Qualified V 17.43% 3,201.7 63,094
Qualified VI 17.61% 4,030,904.1 80,530,902
Qualified VIII 17.61% 21,064.0 354,542
Qualified X (1.15) 17.74% 27,591.3 554,056
Qualified X (1.25) 17.61% 467,483.6 9,339,562
Qualified XI 17.97% 273,684.1 5,516,618
Qualified XII (0.40) 8.21% (11) 168,912.2 2,297,502
Qualified XII (0.50) 0.80% (4) 113,510.7 1,225,536
Qualified XII (0.75) (2.28%) (6) 34,687.8 339,267
Qualified XII (0.80) (2.62%) (5) 850,743.3 9,392,885
Qualified XII (0.85) 14.83% (1) 434,053.9 5,915,156
Qualified XII (0.90) 10.07% (10) 9.8 108
Qualified XII (0.95) 17.97% 234,075.3 3,181,491
Qualified XII (1.00) 17.91% 715,388.6 9,710,570
Qualified XII (1.05) 17.85% 29,581.3 401,001
Qualified XII (1.10) 16.38% (1) 3,300.1 44,677
Qualified XII (1.15) 17.73% 88,163.2 1,191,979
Qualified XII (1.20) 10.00% (2) 13,604.4 183,691
Qualified XII (1.25) 17.62% 2,493.0 33,617
Qualified XII (1.30) 17.55% 312.5 4,208
</TABLE>
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- --------------------------------------------------------------------------------
<S> <C> <C>
PPI Scudder International Growth Portfolio (continued):
Qualified XII (1.40) $13.542 $13.431
Qualified XII (1.50) 11.418 13.396
Qualified XIII 17.068 20.135
Qualified XV 17.040 20.102
Qualified XVI 16.955 19.892
Qualified XVII 16.986 19.978
Qualified XVIII 16.986 19.978
- --------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Qualified III 16.608 20.929
Qualified V 14.647 18.429
Qualified VI 14.400 18.146
Qualified VIII 14.701 18.525
Qualified X (1.15) 16.172 20.400
Qualified X (1.25) 16.131 20.328
Qualified XI 14.485 18.309
Qualified XII (0.40) 15.042 16.863
Qualified XII (0.45) 10.302 11.057
Qualified XII (0.50) 10.256 11.551
Qualified XII (0.75) 9.961 11.036
Qualified XII (0.80) 10.967 12.153
Qualified XII (0.85) 13.562 16.895
Qualified XII (0.90) 10.840 11.792
Qualified XII (0.95) 13.332 16.851
Qualified XII (1.00) 13.321 16.829
Qualified XII (1.05) 13.310 16.806
Qualified XII (1.10) 14.258 16.784
Qualified XII (1.15) 13.288 16.762
Qualified XII (1.20) 14.232 16.740
Qualified XII (1.25) 13.156 16.718
Qualified XII (1.30) 13.256 16.696
Qualified XII (1.40) 15.190 16.652
Qualified XII (1.50) 13.212 16.608
Qualified XIII 14.470 18.289
Qualified XV 14.445 18.258
Qualified XVI 14.374 18.068
Qualified XVII 14.400 18.146
Qualified XVIII 16.131 20.328
Annuity contracts in payment period
- --------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PPI Scudder International Growth Portfolio
(continued):
Qualified XII (1.40) (0.82%) (5) 125.4 $ 1,685
Qualified XII (1.50) 17.32% 3,207.5 42,967
Qualified XIII 17.97% 81,257.4 1,636,113
Qualified XV 17.97% 353,311.2 7,102,088
Qualified XVI 17.32% 45,319.7 901,506
Qualified XVII 17.61% 3,854.9 77,015
Qualified XVIII 17.61% 10,839.2 216,551
- -------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Qualified III 26.02% 1,564,888.2 32,751,256
Qualified V 25.82% 1,068.6 19,693
Qualified VI 26.01% 6,541,818.7 118,710,603
Qualified VIII 26.01% 3,988.5 73,886
Qualified X (1.15) 26.14% 47,435.8 967,704
Qualified X (1.25) 26.02% 717,871.6 14,592,925
Qualified XI 26.40% 277,044.4 5,072,289
Qualified XII (0.40) 12.11% (11) 169,615.2 2,860,277
Qualified XII (0.45) 7.33% (12) 817.4 9,038
Qualified XII (0.50) 12.63% (4) 4,868.6 56,236
Qualified XII (0.75) 10.79% (6) 42,864.5 473,063
Qualified XII (0.80) 10.81% (5) 1,058,534.2 12,864,165
Qualified XII (0.85) 24.58% (1) 129,123.4 2,181,602
Qualified XII (0.90) 8.78% (4) 168.7 1,989
Qualified XII (0.95) 26.40% 197,937.5 3,335,428
Qualified XII (1.00) 26.33% 767,052.8 12,908,505
Qualified XII (1.05) 26.27% 51,411.7 864,048
Qualified XII (1.10) 17.72% (2) 2,769.4 46,482
Qualified XII (1.15) 26.14% 60,127.4 1,007,864
Qualified XII (1.20) 17.62% (2) 45,970.5 769,546
Qualified XII (1.25) 27.08% (1) 1,238.6 20,707
Qualified XII (1.30) 25.95% 2,748.4 45,888
Qualified XII (1.40) 9.62% (5) 1,524.7 25,389
Qualified XII (1.50) 25.70% 5,824.3 96,729
Qualified XIII 26.39% 84,841.6 1,551,639
Qualified XV 26.40% 109,122.7 1,992,390
Qualified XVI 25.70% 91,619.6 1,655,394
Qualified XVII 26.01% 29,383.6 533,207
Qualified XVIII 26.02% 18,939.4 385,001
Annuity contracts in payment period 56,047
- -------------------------------------------------------------------------------------------------------
</TABLE>
Qualified I Individual contracts issued prior to May 1, 1975 in connection
with "Qualified Corporate Retirement Plans" established pursuant
to Section 401 of the Internal Revenue Code ("Code"); Tax-Deferred
Annuity Plans established by the public school systems and
tax-exempt organizations pursuant to Section 403(b) of the Code,
and certain Individual Retirement Annuity Plans established by or
on behalf of individuals pursuant to section 408(b) of the Code;
Individual contracts issued prior to November 1, 1975 in
connection with "H.R. 10 Plans" established by persons entitled to
the benefits of the Self-Employed Individuals Tax Retirement Act
of 1962, as amended; allocated group contracts issued prior to May
1, 1975 in connection with Qualified Corporate Retirement Plans;
and group contracts issued prior to October 1, 1978 in connection
with Tax-Deferred Annuity Plans.
Qualified III Individual contracts issued in connection with Tax-Deferred
Annuity Plans and Individual Retirement Annuity Plans since May 1,
1975, H.R. 10 Plans since November 1, 1975; group contracts issued
since October 1, 1978 in connection with Tax-Deferred Annuity
Plans and group contracts issued since May 1, 1979 in connection
with Deferred Compensation Plans adopted by state and local
governments and H.R. 10 Plans.
Qualified V Group AetnaPlus contracts issued since August 28, 1992 in
connection with Optional Retirement Plans established pursuant to
Section 403(b) or 401(a) of the Internal Revenue Code.
Qualified VI Group AetnaPlus contracts issued in connection with
Tax-Deferred Annuity Plans and Retirement Plus Plans since August
28, 1992.
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1998 (continued):
Qualified VII Certain existing contracts that were converted to ACES, an
administrative system (previously valued under Qualified I).
Qualified VIII Group AetnaPlus contracts issued in connection with
Tax-Deferred Annuity Plans and Deferred Compensation Plans
adopted by state and local governments since June 30, 1993.
Qualified IX Certain large group contracts (Jumbo) that were converted to
ACES, an administrative system (previously valued under
Qualified VI).
Qualified X Individual Retirement Annuity and Simplified Employee Pension
Plans issued or converted to ACES, an administrative system.
Qualified XI Certain large group contracts issued in connection with
Deferred Compensation Plans adopted by state and local
governments since January 1996.
Qualified XII Group Deferred Compensation Plan contracts shown separately
by applicable daily charge.
Qualified XIII Certain existing contracts issued in connection with
Tax-Deferred Annuity Plans and Retirement Plus Plans issued
through product exchange (previously valued under Qualified VI).
Qualified XIV Certain existing contracts issued in connection with
Tax-Deferred Annuity Plans that were converted to ACES, an
administrative system (previously valued under Qualified III).
Qualified XV Certain existing contracts issued in connection with
Tax-Deferred Annuity Plans (previously valued under
Qualified VI).
Qualified XVI Group AetnaPlus contracts issued in connection with Deferred
Compensation Plans having contract modifications effective
April 7, 1997.
Qualified XVII Group AetnaPlus contracts issued in connection with
Deferred Compensation Plans having contract modifications
effective May 29, 1997.
Qualified XVIII Group AetnaPlus contracts issued in connection with
Deferred Compensation Plans having contract modifications
effective May 29, 1997.
Qualified XIX Group AetnaPlus contracts issued in connection with Deferred
Compensation Plans having contract modifications effective
May 29, 1997.
Qualified XX Group AetnaPlus contracts issued in connection with Deferred
Compensation Plans having contract modifications effective
May 29, 1997.
Notes to Condensed Financial Information
(1)-Reflects less than a full year of performance activity. Funds were first
received in this option during January 1998.
(2)-Reflects less than a full year of performance activity. Funds were first
received in this option during February 1998.
(3)-Reflects less than a full year of performance activity. Funds were first
received in this option during March 1998.
(4)-Reflects less than a full year of performance activity. Funds were first
received in this option during April 1998.
(5)-Reflects less than a full year of performance activity. Funds were first
received in this option during May 1998.
(6)-Reflects less than a full year of performance activity. Funds were first
received in this option during June 1998.
(7)-Reflects less than a full year of performance activity. Funds were first
received in this option during July 1998.
(8)-Reflects less than a full year of performance activity. Funds were first
received in this option during August 1998.
(9)-Reflects less than a full year of performance activity. Funds were first
received in this option during September 1998.
(10)-Reflects less than a full year of performance activity. Funds were first
received in this option during October 1998.
(11)-Reflects less than a full year of performance activity. Funds were first
received in this option during November 1998.
(12)-Reflects less than a full year of performance activity. Funds were first
received in this option during December 1998.
See Notes to Financial Statements
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998
1. Summary of Significant Accounting Policies
Variable Annuity Account C (the "Account") is a separate account
established by Aetna Life Insurance and Annuity Company (the "Company") and
is registered under the Investment Company Act of 1940 as a unit investment
trust. The Account is sold exclusively for use with variable annuity
contracts that are qualified under the Internal Revenue Code of 1986, as
amended.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect amounts reported therein. Although actual results
could differ from these estimates, any such differences are expected to be
immaterial to the net assets of the Account.
a. Valuation of Investments
Investments in the following Funds are stated at the closing net asset
value per share as determined by each Fund on December 31, 1998:
Aetna Ascent VP
Aetna Balanced VP
Aetna Bond VP
Aetna Crossroads VP
Aetna GET Fund, Series B
Aetna GET Fund, Series C
Aetna GET Fund, Series D
Aetna Growth and Income VP
Aetna Growth VP
Aetna High Yield VP
Aetna Index Plus Bond VP
Aetna Index Plus Large Cap VP
Aetna Index Plus Mid Cap VP
Aetna Index Plus Small Cap VP
Aetna International VP
Aetna Legacy VP
Aetna Money Market VP
Aetna Real Estate Securities VP
Aetna Small Company VP
Aetna Value Opportunity VP
Calvert Social Balanced Portfolio
Fidelity Investments Variable Insurance Products Fund:
o Equity-Income Portfolio
o Growth Portfolio
o High Income Portfolio
o Overseas Portfolio
Fidelity Investments Variable Insurance Products
Fund II:
o Asset Manager Portfolio
o Contrafund Portfolio
o Index 500 Portfolio
Janus Aspen Series:
o Aggressive Growth Portfolio
o Balanced Portfolio
o Flexible Income Portfolio
o Growth Portfolio
o Worldwide Growth Portfolio
Lexington Emerging Markets Fund
Lexington Natural Resources Trust Fund
MFS Funds:
o Total Return Series
Oppenheimer Funds:
o Global Securities Fund
o Strategic Bond Fund
Portfolio Partners, Inc. (PPI):
o PPI MFS Emerging Equities Portfolio
o PPI MFS Research Growth Portfolio
o PPI MFS Value Equity Portfolio
o PPI Scudder International Growth Portfolio
o PPI T. Rowe Price Growth Equity Portfolio
b. Other
Investment transactions are accounted for on a trade date basis and
dividend income is recorded on the ex-dividend date. The cost of
investments sold is determined by specific identification.
c. Federal Income Taxes
The operations of the Account form a part of, and are taxed with, the total
operations of the Company which is taxed as a life insurance company under
the Internal Revenue Code of 1986, as amended.
d. Annuity Reserves
Annuity reserves held in the Account are computed for currently payable
contracts according to the Progressive Annuity, a49, 1971 Individual
Annuity Mortality, 1971 Group Annuity Mortality, 83a, and 1983 Group
Annuity Mortality tables using various assumed interest rates not to exceed
seven percent. Mortality experience is monitored by the Company. Charges to
annuity reserves for mortality experience are reimbursed to the Company if
the reserves required are less than originally estimated. If additional
reserves are required, the Company reimburses the Account.
2. Valuation Period Deductions
Deductions by the Account for mortality and expense risk charges are made
in accordance with the terms of the contracts and are paid to the Company.
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
3. Dividend Income
On an annual basis, the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions to
the Account are automatically reinvested in shares of the Funds. The
Account's proportionate share of each Fund's undistributed net investment
income (distributions in excess of net investment income) and accumulated
net realized gain (loss) on investments is included in net unrealized gain
(loss) in the Statements of Operations and Changes in Net Assets.
4. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments other than
short-term investments for the years ended December 31, 1998 and 1997
aggregated $3,304,244,413 and $2,443,668,181; $4,059,988,283 and
$2,013,561,413, respectively.
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
5. Supplemental Information to Statements of Operations and Changes in Net
Assets
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1998
Valuation Proceeds Cost of Net
Period from Investments Realized
Dividends Deductions Sales Sold Gain (Loss)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Ascent VP: (1) $ 4,099,373 ($970,989) $ 11,412,260 $ 8,849,863 $ 2,562,397
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Balanced VP: (2) 164,981,369 (11,769,413) 170,317,767 127,614,543 42,703,224
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna Bond VP: (3) 22,962,206 (4,524,317) 60,705,518 60,183,593 521,925
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads VP: (4) 2,857,543 (807,577) 14,346,330 11,896,097 2,450,233
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series B: 17,006,590 (1,044,377) 35,975,652 24,014,822 11,960,830
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series C: 25,369,439 (3,371,574) 95,082,475 71,161,693 23,920,782
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series D: 1,154,248 (337,762) 0 0 0
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Growth and Income VP: (5) 1,089,290,192 (73,720,169) 1,128,903,988 938,855,493 190,048,495
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna Growth VP: (6) 124,674 (348,321) 5,016,498 4,785,323 231,175
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna High Yield VP: (7) 121,758 (5,391) 1,502,593 1,551,979 (49,386)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP: 75,564 (3,850) 559,445 551,414 8,031
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP: (8) 10,603,464 (1,786,058) 13,329,755 11,362,468 1,967,287
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP: (9) 198,320 (11,890) 1,297,593 1,306,891 (9,298)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP: (10) 195,090 (14,898) 1,781,711 2,020,397 (238,686)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna International VP: (11) 101,318 (9,462) 1,561,383 1,739,124 (177,741)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
Aetna Legacy VP: (12) 2,324,968 (578,374) 11,247,035 10,271,411 975,624
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna Money Market VP: (13) 12,126,669 (3,036,771) 277,970,761 276,464,964 1,505,797
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP: (14) 77,295 (6,563) 418,128 466,072 (47,944)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Net
Net Unrealized
Gain (Loss) Net Increase (Decrease) Net Assets
----------- Change in In Net Assets ----------
Beginning End Unrealized from Unit Beginning End
of Year of Year Gain (Loss) Transactions of Year of Year
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 5,507,794 $ 1,897,575 ($3,610,219) $ 11,804,390
$ 72,115,304 $ 86,000,256
- -----------------------------------------------------------------------------------------------------------------
141,499,248 87,636,330 (53,862,918) (119,806,746)
968,354,403 982,574,403
21,193,276 29,218,792
- -----------------------------------------------------------------------------------------------------------------
(1,128,028) 4,484,663 5,612,691 (19,343,273)
372,629,553 377,693,504
6,218,756 6,384,037
- -----------------------------------------------------------------------------------------------------------------
2,614,303 598,907 (2,015,396) 21,876,020
49,739,310 74,028,644
0 71,489
- -----------------------------------------------------------------------------------------------------------------
22,946,346 6,591,127 (16,355,219) (31,539,579)
79,552,932 59,581,177
- -----------------------------------------------------------------------------------------------------------------
46,742,374 52,568,856 5,826,482 (90,386,869)
236,822,693 198,180,953
- -----------------------------------------------------------------------------------------------------------------
0 75,991 75,991 270,087,653
0 270,980,130
- -----------------------------------------------------------------------------------------------------------------
438,575,885 (10,415,627) (448,991,512) (952,072,750)
6,078,549,136 5,846,282,205
292,045,818 328,867,005
- -----------------------------------------------------------------------------------------------------------------
(237,223) 7,094,432 7,331,655 56,413,060
1,098,483 64,734,239
0 116,487
- -----------------------------------------------------------------------------------------------------------------
0 (104,129) (104,129) 1,281,526
0 1,244,378
- -----------------------------------------------------------------------------------------------------------------
0 (60,361) (60,361) 1,406,227
0 1,425,611
- -----------------------------------------------------------------------------------------------------------------
6,964,574 38,198,247 31,233,673 113,822,649
83,098,319 238,578,749
76,758 437,343
- -----------------------------------------------------------------------------------------------------------------
0 420,810 420,810 3,518,535
0 4,116,477
- -----------------------------------------------------------------------------------------------------------------
0 395,906 395,906 4,615,743
0 4,953,155
- -----------------------------------------------------------------------------------------------------------------
0 53,600 53,600 2,048,312
0 2,016,027
- -----------------------------------------------------------------------------------------------------------------
588,337 (120,205) (708,542) 18,514,701
32,749,254 53,070,226
53,658 261,063
- -----------------------------------------------------------------------------------------------------------------
5,712,842 5,409,256 (303,586) 8,301,664
240,346,197 258,856,854
0 83,117
- -----------------------------------------------------------------------------------------------------------------
0 (110,732) (110,732) 1,649,010
0 1,561,066
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
5. Supplemental Information to Statements of Operations and Changes in Net
Assets (continued):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Year Ended December 31, 1998
Valuation
Period
Dividends Deductions
- -------------------------------------------------------------------------------------------
<S> <C> <C>
Aetna Small Company VP: (15) $408,671 ($374,596)
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna Value Opportunity VP: (16) 321,076 (248,765)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio: 4,618,537 (706,037)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio: 12,563,282 (2,635,293)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Growth Portfolio: 18,444,780 (2,023,269)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
High Income Portfolio: 0 (5,690)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Overseas Portfolio: 1,074,038 (179,663)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio: 2,980,690 (315,932)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Contrafund Portfolio: 15,297,373 (3,578,430)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Index 500 Portfolio: 2,402,321 (956,584)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio: 0 (2,715,064)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Balanced Portfolio: 2,769,822 (716,695)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Flexible Income Portfolio: 1,688,473 (284,556)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Growth Portfolio: 6,243,312 (1,192,652)
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Worldwide Growth Portfolio: 20,289,794 (6,298,518)
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund: 401,401 (60,257)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund: 1,725,445 (338,985)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
Year Ended December 31, 1998
Proceeds Cost of Net
from Investments Realized
Sales Sold Gain (Loss)
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Small Company VP: (15) $12,808,646 $13,441,212 ($632,566)
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------------------------
Aetna Value Opportunity VP: (16) 5,237,037 5,066,190 170,847
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio: 6,463,168 4,551,117 1,912,051
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio: 26,794,870 20,300,865 6,494,005
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Growth Portfolio: 12,322,259 10,024,949 2,297,310
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
High Income Portfolio: 112,691 124,297 (11,606)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Overseas Portfolio: 7,836,104 7,260,256 575,848
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio: 2,910,017 2,416,750 493,267
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Contrafund Portfolio: 26,959,224 18,010,395 8,948,829
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Index 500 Portfolio: 3,863,355 2,441,761 1,421,594
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio: 29,546,424 20,073,556 9,472,868
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Balanced Portfolio: 5,961,535 4,458,066 1,503,469
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Flexible Income Portfolio: 6,263,674 5,778,906 484,768
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Growth Portfolio: 10,856,472 7,922,879 2,933,593
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------------------------
Worldwide Growth Portfolio: 89,412,749 61,701,159 27,711,590
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund: 3,629,654 4,888,912 (1,259,258)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund: 20,532,500 19,980,740 551,760
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Net Unrealized Net
Gain (Loss) Net Increase (Decrease) Net Assets
----------- Change in In Net Assets ----------
Beginning End Unrealized from Unit Beginning End
of Year of Year Gain (Loss) Transactions of Year of Year
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
($166,700) ($403,739) ($237,039) $43,856,203
$ 4,956,212 $ 47,966,985
0 9,901
- ----------------------------------------------------------------------------------------------------------
(274,002) 3,491,978 3,765,980 22,736,361
2,039,640 28,785,139
- ----------------------------------------------------------------------------------------------------------
7,196,636 9,585,862 2,389,226 1,243,219
54,444,411 63,901,407
- ----------------------------------------------------------------------------------------------------------
33,998,298 37,581,942 3,583,644 15,460,299
190,735,350 226,201,287
- ----------------------------------------------------------------------------------------------------------
22,394,599 60,197,198 37,802,599 45,629,738
128,257,345 230,408,503
- ----------------------------------------------------------------------------------------------------------
0 8,863 8,863 1,619,989
0 1,611,556
- ----------------------------------------------------------------------------------------------------------
225,478 253,388 27,910 (132,737)
13,449,206 14,814,602
- ----------------------------------------------------------------------------------------------------------
3,922,056 3,974,260 52,204 290,089
23,199,341 26,699,659
- ----------------------------------------------------------------------------------------------------------
50,217,979 106,134,557 55,916,578 26,948,171
256,548,805 360,081,326
- ----------------------------------------------------------------------------------------------------------
11,512,547 26,655,788 15,143,241 17,619,975
57,721,771 93,352,318
- ----------------------------------------------------------------------------------------------------------
36,485,267 99,893,644 63,408,377 11,462,457
210,600,444 292,229,082
- ----------------------------------------------------------------------------------------------------------
4,804,494 20,140,807 15,336,313 38,532,102
37,451,981 94,876,992
- ----------------------------------------------------------------------------------------------------------
381,113 175,498 (205,615) 16,062,139
14,756,039 32,501,248
- ----------------------------------------------------------------------------------------------------------
11,683,190 34,398,134 22,714,944 22,205,253
79,992,417 132,697,360
35,986 235,492
- ----------------------------------------------------------------------------------------------------------
62,504,868 137,641,800 75,136,932 70,151,913
429,093,163 615,835,740
116,838 365,972
- ----------------------------------------------------------------------------------------------------------
(968,279) (1,654,236) (685,957) (90,067)
5,788,593 4,094,455
- ----------------------------------------------------------------------------------------------------------
1,786,893 (6,226,325) (8,013,218) (17,149,400)
42,965,725 19,741,327
- ----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
5. Supplemental Information to Statements of Operations and Changes in Net
Assets (continued):
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------
Year Ended December 31, 1998
Valuation
Period
Dividends Deductions
- ----------------------------------------------------------------------------------
<S> <C> <C>
MFS Fund:
Total Return Series: $ 0 ($980)
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund: 0 (3,966)
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------
Strategic Bond Fund: 0 (10,626)
Annuity contracts in accumulation
Annuity contracts in payment period
- ----------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio: 1,085,565 (4,502,863)
Annuity contracts in accumulation
Annuity contracts in payment period
- ----------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio: 52,603 (2,749,051)
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio: 176,769 (1,585,851)
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio: 366,652 (2,452,299)
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio: 1,039,956 (2,274,233)
Annuity contracts in accumulation
Annuity contracts in payment period
- ----------------------------------------------------------------------------------
Total Variable Annuity Account C $1,447,620,640 ($138,558,611)
==================================================================================
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Year Ended December 31, 1998
Proceeds Cost of Net
from Investments Realized
Sales Sold Gain (Loss)
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MFS Fund:
Total Return Series: $12,895 $13,063 ($168)
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund: 1,212,566 1,238,363 (25,797)
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------------------------
Strategic Bond Fund: 961,012 980,672 (19,660)
Annuity contracts in accumulation
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio: 75,859,428 69,641,869 6,217,559
Annuity contracts in accumulation
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio: 46,349,744 43,146,611 3,203,133
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio: 15,602,083 13,837,807 1,764,276
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio: 173,282,604 152,346,231 20,936,373
Annuity contracts in accumulation
- ----------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio: 27,448,578 24,867,649 2,580,929
Annuity contracts in accumulation
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
Total Variable Annuity Account C $2,443,668,181 $2,067,610,422 $376,057,759
====================================================================================================
</TABLE>
(1) Effective May 1, 1998, Aetna Ascent Variable Portfolio's name changed to
Aetna Ascent VP.
(2) Effective May 1, 1998, Aetna Investment Advisors Fund's name changed to
Aetna Balanced VP.
(3) Effective May 1, 1998, Aetna Income Shares' name changed to Aetna Bond Fund
VP.
(4) Effective May 1, 1998, Aetna Crossroads Variable Portfolio's name changed
to Aetna Crossroads VP.
(5) Effective May 1, 1998, Aetna Variable Fund's name changed to Aetna Growth
and Income VP.
(6) Effective May 1, 1998, Aetna Variable Growth Portfolio's name changed to
Aetna Growth VP.
(7) Effective May 1, 1998, Aetna High Yield Portfolio's name changed to Aetna
High Yield VP.
(8) Effective May 1, 1998, Aetna Variable Index Plus Portfolio's name changed
to Aetna Index Plus Large Cap VP.
(9) Effective May 1, 1998, Aetna Index Plus Mid Cap Portfolio's name changed to
Aetna Index Plus Mid Cap VP.
(10) Effective May 1, 1998, Aetna Index Plus Small Cap Portfolio's name changed
to Aetna Index Plus Small Cap VP.
(11) Effective May 1, 1998, Aetna International Portfolio's name changed to
Aetna International VP.
(12) Effective May 1, 1998, Aetna Legacy Variable Portfolio's name changed to
Aetna Legacy VP.
(13) Effective May 1, 1998, Aetna Variable Encore Fund's name changed to Aetna
Money Market VP.
(14) Effective May 1, 1998, Aetna Real Estate Securities Portfolio's name
changed to Aetna Real Estate Securities VP.
(15) Effective May 1, 1998, Aetna Variable Small Company Portfolio's name
changed to Aetna Small Company VP.
(16) Effective May 1, 1998, Aetna Variable Capital Appreciation Portfolio's name
changed to Aetna Value Opportunity VP.
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Net Unrealized Net
Gain (Loss) Net Increase (Decrease) Net Assets
----------- Change in In Net Assets ----------
Beginning End Unrealized from Unit Beginning End
of Year of Year Gain (Loss) Transactions of Year of Year
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$0 $21,009 $21,009 $365,906
$ 0 $ 385,767
- ---------------------------------------------------------------------------------------------------------------
0 90,591 90,591 915,293
0 976,121
- ---------------------------------------------------------------------------------------------------------------
0 23,736 23,736 2,263,649
0 2,253,578
0 3,521
- ---------------------------------------------------------------------------------------------------------------
(3,901,193) 87,984,814 91,886,007 (13,492,672)
352,966,999 434,156,330
23,166 27,431
- ---------------------------------------------------------------------------------------------------------------
(4,166,217) 40,672,835 44,839,052 (30,288,218)
227,029,997 242,087,516
- ---------------------------------------------------------------------------------------------------------------
1,637,084 30,665,227 29,028,143 5,182,435
116,286,704 150,852,476
- ---------------------------------------------------------------------------------------------------------------
3,033,630 18,451,441 15,417,811 (35,002,543)
202,699,815 201,965,809
- ---------------------------------------------------------------------------------------------------------------
3,371,568 45,568,978 42,197,410 2,934,376
169,450,553 215,872,943
0 56,047
- ---------------------------------------------------------------------------------------------------------------
$915,465,761 $949,942,696 $34,476,935 ($448,485,797) $11,155,254,351 $12,426,365,277
===============================================================================================================
</TABLE>
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
5. Supplemental Information to Statements of Operations and Changes in Net
Assets (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Year Ended December 31, 1997
Valuation
Period
Dividends Deductions
- --------------------------------------------------------------------------------------
<S> <C> <C>
Aetna Variable Fund: $1,291,034,822 ($ 68,500,273)
Annuity contracts in accumulation
Annuity contracts in payment period
- --------------------------------------------------------------------------------------
Aetna Income Shares: 22,258,737 (4,263,839)
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------
Aetna Variable Encore Fund: 9,635,587 (2,938,575)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc.: 128,304,517 (10,844,018)
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------
Aetna GET Fund, Series B: 13,341,021 (1,078,816)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Aetna GET Fund, Series C: 3,678,012 (3,257,441)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Aetna Ascent Variable Portfolio: 4,541,482 (578,657)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Aetna Crossroads Variable Portfolio: 3,316,159 (392,434)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Aetna Legacy Variable Portfolio: 1,788,369 (229,584)
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------
Aetna Variable Portfolios Inc:
Aetna Variable Capital Appreciation Portfolio: 312,433 (2,197)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Aetna Variable Growth Portfolio: 249,335 (1,093)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Aetna Variable Index Plus Portfolio: 3,327,658 (542,532)
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------
Aetna Variable Small Company Portfolio: 269,004 (5,868)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Alger American Funds:
Growth Portfolio: (1) 1,199,482 (1,526,918)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------
Small Capitalization Portfolio: (7) 11,721,861 (3,575,543)
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------
Year Ended December 31, 1997
Proceeds Cost of Net
from Investments Realized
Sales Sold Gain (Loss)
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Variable Fund: $205,088,291 $150,120,010 $ 54,968,281
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------
Aetna Income Shares: 46,789,033 49,260,722 (2,471,689)
Annuity contracts in accumulation
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund: 206,958,669 210,166,945 (3,208,276)
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc.: 37,558,168 27,770,494 9,787,674
Annuity contracts in accumulation
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
Aetna GET Fund, Series B: 7,648,728 4,940,723 2,708,005
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Aetna GET Fund, Series C: 13,972,003 11,896,317 2,075,686
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Aetna Ascent Variable Portfolio: 498,613 380,091 118,522
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Aetna Crossroads Variable Portfolio: 409,248 325,568 83,680
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Aetna Legacy Variable Portfolio: 2,265,127 2,019,840 245,287
Annuity contracts in accumulation
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
Aetna Variable Portfolios Inc:
Aetna Variable Capital Appreciation Portfolio: 123,165 113,851 9,314
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Aetna Variable Growth Portfolio: 80,207 72,190 8,017
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Aetna Variable Index Plus Portfolio: 29,980,862 29,823,433 157,429
Annuity contracts in accumulation
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
Aetna Variable Small Company Portfolio: 478,457 428,319 50,138
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Alger American Funds:
Growth Portfolio: (1) 169,481,196 134,718,793 34,762,403
Annuity contracts in accumulation
- --------------------------------------------------------------------------------------------------
Small Capitalization Portfolio: (7) 403,516,606 343,440,431 60,076,175
Annuity contracts in accumulation
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Net Unrealized Net
Gain (Loss) Net Increase (Decrease) Net Assets
----------- Change in In Net Assets ----------
Beginning End Unrealized from Unit Beginning End
of Year of Year Gain (Loss) Transactions of Year of Year
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 327,744,944 $438,575,885 $ 110,830,941 $ 75,435,966
$4,694,078,344 $6,078,549,136
212,746,872 292,045,818
- ------------------------------------------------------------------------------------------------------------------
(9,314,233) (1,128,028) 8,186,205 (4,710,418)
354,233,289 372,629,553
5,616,023 6,218,756
- ------------------------------------------------------------------------------------------------------------------
(750,036) 5,712,842 6,462,878 (14,909,883)
245,304,466 240,346,197
- ------------------------------------------------------------------------------------------------------------------
97,219,569 141,499,248 44,279,679 2,724,400
800,532,626 968,354,403
14,762,802 21,193,276
- ------------------------------------------------------------------------------------------------------------------
17,286,695 22,946,346 5,659,651 (6,139,082)
65,062,153 79,552,932
- ------------------------------------------------------------------------------------------------------------------
2,983,885 46,742,374 43,758,489 (8,490,216)
199,058,163 236,822,693
- ------------------------------------------------------------------------------------------------------------------
1,716,824 5,507,794 3,790,970 42,582,396
21,660,591 72,115,304
- ------------------------------------------------------------------------------------------------------------------
838,329 2,614,303 1,775,974 30,197,010
14,758,921 49,739,310
- ------------------------------------------------------------------------------------------------------------------
112,482 588,337 475,855 21,455,983
9,067,002 32,749,254
0 53,658
- ------------------------------------------------------------------------------------------------------------------
0 (274,002) (274,002) 1,994,092
0 2,039,640
- ------------------------------------------------------------------------------------------------------------------
0 (237,223) (237,223) 1,079,447
0 1,098,483
- ------------------------------------------------------------------------------------------------------------------
80,325 6,964,574 6,884,249 62,694,836
10,653,437 83,098,319
0 76,758
- ------------------------------------------------------------------------------------------------------------------
0 (166,700) (166,700) 4,809,638
0 4,956,212
- ------------------------------------------------------------------------------------------------------------------
6,730,808 0 (6,730,808) (132,576,331)
104,872,172 0
- ------------------------------------------------------------------------------------------------------------------
39,364,541 0 (39,364,541) (352,729,122)
323,871,170 0
0 0
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
5. Supplemental Information to Statements of Operations and Changes in Net
Assets (continued):
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Year Ended December 31, 1997
Valuation
Period
Dividends Deductions
- ------------------------------------------------------------------------------------------
<S> <C> <C>
American Century Investments -
Capital Appreciation Fund: (2) $ 5,882,464 ($2,974,651)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio: 3,787,208 (578,804)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio: 11,536,379 (1,844,101)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Growth Portfolio: 3,033,640 (1,277,878)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Overseas Portfolio: 762,691 (144,474)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio: 2,134,313 (253,981)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Contrafund Portfolio: 4,376,096 (2,382,593)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Index 500 Portfolio: 890,215 (515,853)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Franklin Government Securities Trust: (3) 1,578,341 (279,189)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio: 0 (2,188,842)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Balanced Portfolio: 940,676 (329,511)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Flexible Income Portfolio: 757,640 (131,213)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Growth Portfolio: 1,871,919 (768,752)
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Short-Term Bond Portfolio: (4) 64,108 (25,465)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------
Worldwide Growth Portfolio: 5,510,563 (4,109,527)
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1997
Proceeds Cost of Net
from Investments Realized
Sales Sold Gain (Loss)
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
American Century Investments -
Capital Appreciation Fund: (2) $347,378,690 $348,986,817 ($1,608,127)
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio: 1,767,421 1,342,657 424,764
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio: 2,876,456 2,187,102 689,354
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Growth Portfolio: 1,967,157 1,268,813 698,344
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Overseas Portfolio: 6,265,740 5,529,606 736,134
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio: 1,353,806 1,132,813 220,993
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Contrafund Portfolio: 989,526 754,795 234,731
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Index 500 Portfolio: 2,042,782 1,517,607 525,175
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Franklin Government Securities Trust: (3) 35,001,358 34,302,739 698,619
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio: 16,697,333 12,596,723 4,100,610
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Balanced Portfolio: 1,236,230 981,509 254,721
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Flexible Income Portfolio: 4,035,296 3,816,553 218,743
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Growth Portfolio: 1,933,431 1,461,183 472,248
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------
Short-Term Bond Portfolio: (4) 5,452,797 5,400,161 52,636
Annuity contracts in accumulation
- -------------------------------------------------------------------------------------------------------------
Worldwide Growth Portfolio: 16,620,763 10,266,465 6,354,298
Annuity contracts in accumulation
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Net Unrealized Net
Gain (Loss) Net Increase (Decrease) Net Assets
----------- Change in In Net Assets ----------
Beginning End Unrealized from Unit Beginning End
of Year of Year Gain (Loss) Transactions of Year of Year
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$8,139,519 $0 ($8,139,519) ($339,404,560)
$346,244,393 $0
- -----------------------------------------------------------------------------------------------------------
2,963,927 7,196,636 4,232,709 6,589,199
39,989,335 54,444,411
- -----------------------------------------------------------------------------------------------------------
10,675,870 33,998,298 23,322,428 50,561,862
106,469,428 190,735,350
- -----------------------------------------------------------------------------------------------------------
5,256,264 22,394,599 17,138,335 28,222,857
80,442,047 128,257,345
- -----------------------------------------------------------------------------------------------------------
649,630 225,478 (424,152) 4,069,619
8,449,388 13,449,206
- -----------------------------------------------------------------------------------------------------------
2,502,591 3,922,056 1,419,465 2,575,422
17,103,129 23,199,341
- -----------------------------------------------------------------------------------------------------------
15,161,493 50,217,979 35,056,486 100,377,564
118,886,521 256,548,805
- -----------------------------------------------------------------------------------------------------------
2,304,865 11,512,547 9,207,682 26,383,649
21,230,903 57,721,771
- -----------------------------------------------------------------------------------------------------------
405,959 0 (405,959) (24,948,755)
23,356,943 0
- -----------------------------------------------------------------------------------------------------------
17,668,916 36,485,267 18,816,351 16,995,758
172,876,567 210,600,444
- -----------------------------------------------------------------------------------------------------------
751,567 4,804,494 4,052,927 17,251,901
15,281,267 37,451,981
- -----------------------------------------------------------------------------------------------------------
140,666 381,113 240,447 5,252,958
8,417,464 14,756,039
- -----------------------------------------------------------------------------------------------------------
2,192,571 11,683,190 9,490,619 28,161,560
40,800,809 79,992,417
0 35,986
- -----------------------------------------------------------------------------------------------------------
(6,468) 0 6,468 (1,788,353)
1,690,606 0
- -----------------------------------------------------------------------------------------------------------
16,710,390 62,504,868 45,794,478 203,261,915
172,398,274 429,093,163
0 116,838
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
5. Supplemental Information to Statements of Operations and Changes in Net
Assets (continued):
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Year Ended December 31, 1997
Valuation
Period
Dividends Deductions
- ----------------------------------------------------------------------------------------
<S> <C> <C>
Lexington Emerging Markets Fund: $4,375 ($79,412)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund: 1,239,038 (531,930)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
Neuberger and Berman Advisers Management Trust -
Growth Portfolio: (5) 8,158,940 (1,195,227)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
Portfolio Partners, Inc.:
PPI MFS Emerging Equities Portfolio: 0 (406,682)
Annuity contracts in accumulation
Annuity contracts in payment period
- -----------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio: 0 (262,081)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio: 0 (133,426)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
PPI MFS Scudder International Growth Portfolio: 0 (235,626)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
PPI MFS T. Rowe Price Growth Equity Portfolio: 0 (193,734)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
Scudder Variable Life Investment Fund -
International Portfolio: (6) 4,599,123 (2,286,635)
Annuity contracts in accumulation
- -----------------------------------------------------------------------------------------
Total Variable Annuity Account C $1,552,106,208 ($120,867,375)
=========================================================================================
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Year Ended December 31, 1997
Proceeds Cost of Net
from Investments Realized
Sales Sold Gain (Loss)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Lexington Emerging Markets Fund: $1,639,618 $1,424,729 $214,889
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund: 14,866,827 11,618,994 3,247,833
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Neuberger and Berman Advisers Management Trust -
Growth Portfolio: (5) 128,039,479 103,983,767 24,055,712
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc.:
PPI MFS Emerging Equities Portfolio: 3,797,005 3,880,012 (83,007)
Annuity contracts in accumulation
Annuity contracts in payment period
- ---------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio: 1,453,829 1,486,006 (32,177)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio: 928,145 929,114 (969)
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
PPI MFS Scudder International Growth Portfolio: 13,091,485 12,881,912 209,573
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
PPI MFS T. Rowe Price Growth Equity Portfolio: 891,088 887,544 3,544
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Scudder Variable Life Investment Fund -
International Portfolio: (6) 278,386,778 238,895,623 39,491,155
Annuity contracts in accumulation
- ---------------------------------------------------------------------------------------------------------
Total Variable Annuity Account C $2,013,561,413 $1,773,010,971 $240,550,442
=========================================================================================================
</TABLE>
(1) Effective November 28, 1997, this funds assets were transferred to the PPI
T. Rowe Price Growth Equity Portfolio.
(2) Effective November 28, 1997, this funds assets were transferred to the PPI
MFS Research Growth Portfolio.
(3) Effective November 28, 1997, this funds assets were transferred to Aetna
Income Shares.
(4) Effective November 28, 1997, this funds assets were transferred to the
Aetna Variable Encore Fund.
(5) Effective November 28, 1997, this funds assets were transferred to the PPI
MFS Value Equity Portfolio.
(6) Effective November 28, 1997, this funds assets were transferred to the PPI
Scudder International Growth Portfolio.
(7) Effective November 28, 1997, this funds assets were transferred to the PPI
MFS Emerging Equities Portfolio.
<PAGE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Net Unrealized Net
Gain (Loss) Net Increase (Decrease) Net Assets
----------- Change in In Net Assets ----------
Beginning End Unrealized from Unit Beginning End
of Year of Year Gain (Loss) Transactions of Year of Year
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$102,991 ($968,279) ($1,071,270) $1,874,530
$4,845,481 $5,788,593
- -------------------------------------------------------------------------------------------------------------------
3,997,171 1,786,893 (2,210,278) 17,376,715
23,844,347 42,965,725
- -------------------------------------------------------------------------------------------------------------------
9,459,521 0 (9,459,521) (116,641,588)
95,081,684 0
- -------------------------------------------------------------------------------------------------------------------
0 (3,901,193) (3,901,193) 357,381,047
0 352,966,999
0 23,166
- -------------------------------------------------------------------------------------------------------------------
0 (4,166,217) (4,166,217) 231,490,472
0 227,029,997
- -------------------------------------------------------------------------------------------------------------------
0 1,637,084 1,637,084 114,784,015
0 116,286,704
- -------------------------------------------------------------------------------------------------------------------
0 3,033,630 3,033,630 199,692,238
0 202,699,815
- -------------------------------------------------------------------------------------------------------------------
0 3,371,568 3,371,568 166,269,175
0 169,450,553
- -------------------------------------------------------------------------------------------------------------------
29,299,509 0 (29,299,509) (204,019,879)
191,515,746 0
- -------------------------------------------------------------------------------------------------------------------
$612,391,085 $915,465,761 $303,074,676 $ 615,188,037 $8,565,202,363 $11,155,254,351
===================================================================================================================
</TABLE>
<PAGE>
Independent Auditors' Report
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contract Owners of Variable Annuity Account C:
We have audited the accompanying statement of assets and liabilities of Aetna
Life Insurance and Annuity Company Variable Annuity Account C (the "Account")
as of December 31, 1998, and the related statements of operations and changes
in net assets for each of the years in the two-year period then ended and
condensed financial information for the year ended December 31, 1998. These
financial statements and condensed financial information are the responsibility
of the Account's management. Our responsibility is to express an opinion on
these financial statements and condensed financial information based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and condensed
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and condensed financial information. Our procedures
included confirmation of securities owned as of December 31, 1998, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and condensed financial information
referred to above present fairly, in all material respects, the financial
position of Aetna Life Insurance and Annuity Company Variable Annuity Account C
as of December 31, 1998, the results of its operations and changes in its net
assets for each of the years in the two-year period then ended and condensed
financial information for the year ended December 31, 1998, in conformity with
generally accepted accounting principles.
KPMG LLP
Hartford, Connecticut
February 26, 1999
