As filed with the Securities and Exchange Registration No. 333-01107*
Commission on April 4, 2000 Registration No. 811-2513
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
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POST-EFFECTIVE AMENDMENT NO. 20 TO
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment To
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
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Variable Annuity Account C of Aetna Life Insurance and Annuity Company
(Exact Name of Registrant)
Aetna Life Insurance and Annuity Company
(Name of Depositor)
151 Farmington Avenue, TS31, Hartford, Connecticut 06156
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code: (860) 273-4686
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, TS31, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
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It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 485
--------
X on May 1, 2000 pursuant to paragraph (b) of Rule 485
--------
*Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in a prospectus relating
to the securities covered by the following earlier Registration Statements:
33-88720; 33-75964 (which had included a combined prospectus for earlier
Registration Statements: 33-75958, 33-75960, and 33-75994); 33-75986 (which had
included a combined prospectus for earlier Registration Statements: 33-75970,
33-75954, and 33-75956); 33-75982 (which had included a combined prospectus for
earlier Registration Statements: 33-75968, 33-75966, 33-75990, and the
individual deferred compensation contracts covered by Registration Statement No.
33-75992); and 33-91846 (which had included a combined prospectus for earlier
Registration Statement: 33-75976).
<PAGE>
VARIABLE ANNUITY ACCOUNT C
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
FORM N-4 LOCATION - PROSPECTUS DATED
ITEM NO. PART A (PROSPECTUS) MAY 1, 2000
<S> <C> <C>
1 Cover Page........................................ Cover Page
2 Definitions....................................... Not Applicable
3 Synopsis.......................................... Contract Overview; Fee Tables
4 Condensed Financial Information................... Condensed Financial Information; Appendix
VI - Condensed Financial Information
5 General Description of Registrant,
Depositor, and Portfolio Companies................ Other Topics - The Company, Variable
Annuity Account C; Appendix V - Fund
Descriptions
6 Deductions and Expenses........................... Fees
7 General Description of Variable
Annuity Contracts................................. Contract Overview; Other Topics
8 Annuity Period.................................... The Income Phase
9 Death Benefit..................................... Death Benefit
10 Purchases and Contract Value...................... Contract Purchase and Participation; Your
Account Value
11 Redemptions....................................... Right to Cancel; Withdrawals; Systematic Distribution
Options
12 Taxes............................................. Taxation
13 Legal Proceedings................................. Other Topics - Legal Matters and Proceedings
14 Table of Contents of the Statement of
Additional Information............................ Contents of the Statement of Additional Information
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LOCATION - STATEMENT OF
FORM N-4 PART B (STATEMENT OF ADDITIONAL INFORMATION
ITEM NO. ADDITIONAL INFORMATION) DATED MAY 1, 2000
<S> <C> <C>
15 Cover Page........................................... Cover page
16 Table of Contents.................................... Table of Contents
17 General Information and History...................... General Information and History
18 Services............................................. General Information and History;
Independent Auditors
19 Purchase of Securities Being Offered................. Offering and Purchase of Contracts
20 Underwriters......................................... Offering and Purchase of Contracts
21 Calculation of Performance Data...................... Performance Data; Average Annual Total Return
Quotations
22 Annuity Payments..................................... Income Phase Payments
23 Financial Statements................................. Financial Statements
</TABLE>
Part C (Other Information)
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
May 1, 2000 Supplement to May 1, 2000 Prospectus or Contract Prospectus Summary
Minnesota State Colleges and Universities Voluntary 403(b) Tax-Deferred Annuity
Your plan is administered in part by a third party. Such arrangements are
mentioned under the heading "Third Party Compensation Arrangements" in the
"Other Topics" section in the prospectus and the Contract Prospectus Summary.
In your case, Norwest Bank Minnesota is responsible for handling a portion of
administration and service for the contract in which you participate. In
exchange for the services provided, we compensate Norwest Bank Minnesota an
amount equal to 0.25% of the assets related to the plan on an annual basis
(0.0625% is paid quarterly). This is not an additional charge to you, but is
part of the charges for the contract.
Form No. XCS.01107-00MM May 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT C
May 1, 2000 Supplement to May 1, 2000 Prospectus or Contract Prospectus Summary
St. John's Regional Health Center
The following is a negotiated provision concerning the early withdrawal charge
applicable to the Suburban Hospital tax-deferred annuity plan. (See
"Fees--Early Withdrawal Charge" in the prospectus or the Contract Prospectus
Summary):
You may withdraw up to 10% of your current account each year without incurring
an early withdrawal charge. This applies only to the first partial withdrawal
in each calendar year. The amount eligible will be determined using the account
value on the date we receive the withdrawal request. This provision is
available to anyone up to age 70 1/2 (instead of between the ages of 59 1/2 and
70 1/2). Outstanding loan amounts on 403(b) accounts are not included in the
account value for the purpose of calculating the eligible partial withdrawal.
This provision does not apply to full withdrawals or to partial withdrawals due
to loan default.
Form No. XCS.01107-00SJ May 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT C
May 1, 2000 Supplement to May 1, 2000 Prospectus or Contract Prospectus Summary
Pennsylvania State Association of Boroughs (the "Association")
Under a signed agreement, the Association endorses our variable annuity for
sale to its employees under the group's Deferred Compensation Plan. We have
agreed to compensate the Association $3.50 per year for each participant for
which contributions are made under the contract. (See "Other Topics--Third
Party Compensation Arrangements" in the prospectus or the Contract Prospectus
Summary).
Form No. XCS.01107-PA00 May 2000
<PAGE>
Prospectus - May 1, 2000
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The Funds
Aetna Ascent VP
Aetna Balanced VP, Inc.
Aetna Income Shares d/b/a Aetna Bond VP
Aetna Crossroads VP
Aetna Growth VP
Aetna Variable Fund d/b/a Aetna Growth and Income VP
Aetna High Yield VP(1)
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 Variable Encore Fund d/b/a Aetna Money Market VP
Aetna Real Estate Securities VP(1)
Aetna Small Company VP
Aetna Technology VP
Aetna Value Opportunity VP
AIM V.I. Capital Appreciation Fund
AIM V.I. Growth Fund
AIM V.I. Growth and Income Fund
AIM V.I. Value Fund
Calvert Social Balanced Portfolio
DEM[Reg TM] Equity Fund (Institutional Shares)(2)
Fidelity Variable Insurance Products Fund (VIP) Equity-Income Portfolio
Fidelity Variable Insurance Products Fund (VIP) Growth Portfolio
Fidelity Variable Insurance Products Fund (VIP) Overseas Portfolio
Fidelity Variable Insurance Products Fund II (VIP II) Contrafund[Reg TM]
Portfolio
Janus Aspen Aggressive Growth Portfolio
Janus Aspen Balanced Portfolio
Janus Aspen Flexible Income Portfolio
Janus Aspen Growth Portfolio
Janus Aspen Worldwide Growth Portfolio
Janus Twenty Fund(2)
Lexington Natural Resources Trust(3)
Oppenheimer Global Securities Fund/VA
Oppenheimer Strategic Bond Fund/VA
Portfolio Partners, Inc. (PPI) MFS Capital Opportunities Portfolio (formerly
PPI MFS Value Equity Portfolio)
Portfolio Partners, Inc. (PPI) MFS Emerging Equities Portfolio
Portfolio Partners, Inc. (PPI) MFS Research Growth Portfolio
Portfolio Partners, Inc. (PPI) Scudder International Growth Portfolio
Portfolio Partners, Inc. (PPI) T. Rowe Price Growth Equity Portfolio
The Contracts. The contracts described in this prospectus are group or
individual deferred variable annuity contracts issued by Aetna Life Insurance
and Annuity Company (the Company). They are intended to be used as funding
vehicles for certain types of retirement plans and to qualify for beneficial
tax treatment and/or to provide current income reduction under certain sections
of the Internal Revenue Code of 1986, as amended (Tax Code).
- --------------------------------------------------------------------------------
Why reading this Prospectus is Important. Before you participate in the
contract through your retirement plan, you should read this prospectus. It
provides facts about the contract and its investment options. Plan sponsors
(generally your employer or a trust) should read this prospectus to help
determine if the contract is appropriate for their plan. Keep this document for
future reference.
Table of Contents . . . page 4
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Investment Options. The contracts offer variable investment options and fixed
interest options. When we establish your account(s), the contract holder, or
you if permitted by the plan, instructs us to direct account dollars to any of
the available options. Some investment options may be unavailable through
certain contracts and plans, or in some states.
Variable Investment Options. These options are called subaccounts. The
subaccounts are within Variable Annuity Account C (the separate account), a
separate account of the Company. Each subaccount invests in one of the mutual
funds (funds) listed on this page. Earnings on amounts invested in a subaccount
will vary depending upon the performance and fees of its underlying fund. You
do not invest directly in or hold shares of the funds.
Risks Associated with Investing in the Funds. Information about the risks of
investing in the funds is located in the "Investment Option" section of this
prospectus at page 11 and in each fund prospectus. Read this prospectus in
conjunction with the fund prospectus, and retain the prospectus for future
reference.
Getting Additional Information. You may obtain the May 1, 2000, Statement of
Additional Information (SAI) by indicating your request on your enrollment
materials or calling the Company at 1-800-262-3862. You may also obtain an SAI
for any of the funds by calling that number. This prospectus, the SAI and other
information about the separate account are posted on the Securities and
Exchange Commission (SEC) web site, www.sec.gov and copies of this information
may also be obtained, after paying a duplicating fee, by contacting the SEC
Public Reference Room electronically at the following e-mail address:
[email protected], or by writing the Commission's Public Reference Section,
- -------------------------
(1) Effective May 15, 2000, transfers or deposits are not allowed into the
subaccount investing in this fund except those made pursuant to standing
customer instructions (e.g., payroll deduction allocations, dollar cost
averaging) in effect prior to this date. See "Important Information
Regarding Aetna High Yield VP and Aetna Real Estate Securities VP
Subaccounts."
(2) This fund is available to the general public. See "Additional Risks of
Investing in the Funds."
(3) Transfers or deposits are not allowed into the subaccount investing in this
fund, except from accounts established under the contract before May 1,
1998. As soon as all those who have current allocations to the subaccount
under the contract have redirected their allocations to other investment
options, we will close the subaccount to all investments (except loan
repayments that we automatically deposit into the subaccount according to
our loan repayment procedures).
<PAGE>
Prospectus - May 1, 2000 (continued)
- --------------------------------------------------------------------------------
Washington, D.C. 20549-0102. This information can be reviewed and copied at the
Commission's Public Reference Room in Washington, D.C. and information on the
operation of the Public Reference Room may be obtained by calling
1-202-942-8090. The SAI table of contents is listed on page 47 of this
prospectus. The SAI is incorporated into this prospectus by reference.
Additional Disclosure Information. Neither the SEC, nor any state securities
commission, has approved or disapproved the securities offered through this
prospectus or passed on the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense. This prospectus is valid
only when accompanied by current prospectuses of the funds and the Guaranteed
Accumulation Account. We do not intend for this prospectus to be an offer to
sell or a solicitation of an offer to buy these securities in any state that
does not permit their sale. We have not authorized anyone to provide you with
information that is different from that contained in this prospectus.
Fixed Interest Options.
> Guaranteed Accumulation Account
> Fixed Plus Account
> Fixed Account
Except as specifically mentioned, this prospectus describes only the variable
investment options. However, we describe the fixed interest options in the
appendices to this prospectus. There is also a separate prospectus for the
Guaranteed Accumulation Account.
Important Information Regarding Aetna High Yield VP and Aetna Real Estate
Securities VP Subaccounts
Subaccounts to be Closed to New Investments
Effective May 15, 2000, the Aetna High Yield VP and Aetna Real Estate
Securities VP subaccounts will no longer be available for new investment. After
that date, the Company will only accept deposits into those subaccounts that
are made pursuant to standing customer instructions (e.g., payroll deduction
allocations, dollar cost averaging, etc.) in effect before the close of
business on May 12, 2000.
Fund Shares to be Substituted with Shares of Aetna Money Market VP.
Plan of Substitution. On or before September 29, 2000, subject to applicable
regulatory approvals and the requisite vote of shareholders of the applicable
fund, all existing balances in Aetna High Yield VP and Aetna Real Estate
Securities VP will be invested in (substituted with) shares of Aetna Money
Market VP. Contract owners or participants will not incur any fees or charges
as a result of the substitution. In addition, on and after September 29, 2000,
all investment allocations then being directed to the Aetna High Yield VP and
Aetna Real Estate Securities VP subaccounts will be redirected to the Aetna
Money Market VP subaccount. The Company believes that the substitution will not
create any tax liability for contract owners or participants.
<PAGE>
Prospectus - May 1, 2000 (continued)
- --------------------------------------------------------------------------------
Transfer Rights. At any time prior to the date of substitution, contract owners
or participants may transfer their accumulation values from the subaccounts
investing in substituted funds into any other investment options available
under the contract, and no transfer fees or other charges will be imposed. From
and after the date of substitution, contract owners or participants who had
values transferred from a subaccount as a result of a substitution may transfer
among any of the remaining investment options in accordance with the terms of
the contract, also free of any transfer fees and charges.
Surrender Rights. If a contract owner or participant whose shares are
substituted elects to make a surrender under the contract (if permitted by the
plan and applicable tax law) within 30 days after the date of the substitution,
the Company will waive any early withdrawal charge on amounts transferred as a
result of the substitution. This offer to waive the early withdrawal charge
will not apply to amounts transferred after April 10, 2000 from the other
investment options to the Aetna High Yield VP or Aetna Real Estate Securities
VP subaccounts. A contract owner or participant who exercises this surrender
right may incur income tax liability and a tax penalty. See the "Taxation"
section of this prospectus for a discussion of tax consequences resulting from
surrender. Contract owners or participants should seek qualified tax advice
before exercising their surrender rights.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
- ----------------------------------------------------------------------
Contract Overview: Who's Who; Contract Facts .................. 5
The Contract and Your Retirement Plan (sidebar)
Retirement Plan (sidebar)
Plan Type (sidebar)
Contract Rights (sidebar)
Contract Phases: Accumulation Phase, The Income Phase ......... 6
Questions: Contacting the Company (sidebar)
Sending forms and written requests in good order (sidebar)
- ----------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
Fee Table ...................................................... 7
Condensed Financial Information ................................ 11
Investment Options ............................................. 11
Transfers ...................................................... 13
Contract Purchase and Participation ............................ 14
Contract Ownership and Rights .................................. 15
Right to Cancel ................................................ 16
Fees ........................................................... 17
Your Account Value ............................................. 23
Withdrawals .................................................... 25
Loans .......................................................... 27
Systematic Distribution Options ................................ 27
Death Benefit .................................................. 28
The Income Phase ............................................... 30
Taxation ....................................................... 34
Other Topics ................................................... 41
</TABLE>
The Company - Variable Annuity Account C - Performance Reporting - Voting
Rights - Contract Distribution - Contract Modification - Legal Matters and
Proceedings - Payment Delay or Suspension - Transfer of Ownership; Assignment -
Account Termination - Intent to Confirm Quarterly
<TABLE>
<S> <C>
Contents of the Statement of Additional Information ............ 47
Appendix I - Guaranteed Accumulation Account ................... 48
Appendix II - Fixed Account .................................... 50
Appendix III - Fixed Plus Account .............................. 52
Appendix IV - Employee Appointment of Employer as Agent Under an
Annuity Contract ............................................... 56
Appendix V - Fund Descriptions ................................. 57
Appendix VI - Condensed Financial Information .................. 60
</TABLE>
4
<PAGE>
Contract Overview
- --------------------------------------------------------------------------------
The following is intended as a summary. Please read each section of this
prospectus for additional information.
- --------------------------------------------------------------------------------
Who's Who
- --------------------------------------------------------------------------------
You (the participant)*: The individual who participates in the contract through
a retirement plan.
Plan Sponsor: The sponsor of your retirement plan. Generally, your employer or
a trust.
Contract Holder*: The person to whom we issue the contract. Generally, the plan
sponsor.
We (the Company): Aetna Life Insurance and Annuity Company. We issue the
contract.
For greater detail, please review "Contract Ownership and Rights" and "Contract
Purchase and Participation."
- -------------------------
* Certain contracts are purchased by and issued directly to persons
participating in certain plans. The words "you" and "participant" apply to
these individuals, except that these individuals have all rights under the
contract. The word "contract holder" also applies to these individuals,
except that these individuals have no responsibilities to other participants
or beneficiaries.
- --------------------------------------------------------------------------------
Contract Facts
- --------------------------------------------------------------------------------
Free Look/Right to Cancel: Contract holders may cancel the contract no later
than 10 days after they receive the contract (or a longer period if required by
state law). Participants in 403(b) plans or in some plans under 401(a)/401(k)
or 403(a) may cancel their participation in the contract no later than 10 days
after they receive evidence of participation in the contract. See "Right to
Cancel."
Death Benefit: A beneficiary may receive a benefit in the event of your death
prior to the income phase. Death benefits during the income phase depend upon
the payment option selected. See "Death Benefit" and "The Income Phase."
Withdrawals: During the accumulation phase, you may, under some plans, withdraw
all or part of your account value. Amounts withdrawn may be subject to an early
withdrawal charge, other deductions, tax withholding and taxation. See
"Withdrawals" and "Taxation."
Systematic Distribution Options: These allow you to receive regular payments
from your account, while retaining the account in the accumulation phase. See
"Systematic Distribution Options."
Fees: Certain fees are deducted from your account value. See "Fee Table" and
"Fees."
Taxation: You will not generally pay taxes on any earnings from the annuity
contract described in this prospectus until they are withdrawn (or in the case
of a 457 plan, paid or made available to you or a beneficiary). Tax-qualified
retirement arrangements (e.g. 401(a), 401(k), 403(a), 403(b) or 457 plans) also
defer payment of taxes on earnings until they are withdrawn (or in the case of
a 457 plan, paid or made available to you or a beneficiary). When an annuity
contract is used to fund a tax-qualified retirement arrangement, you should
know that the annuity contract does not provide any additional tax deferral of
earnings beyond the tax deferral provided by the tax-qualified retirement
arrangement. However, annuities do provide other features and benefits which
may be valuable to you. You should discuss your alternatives with your
financial representative.
Amounts you receive as a distribution will be generally included in your gross
income and will be subject to taxation. Tax penalties may apply in some
circumstances. See "Taxation."
The Contract and Your Retirement Plan
Retirement Plan (plan): A plan sponsor has established a plan for you. This
contract is offered as a funding option for that plan. We are not a party to
the plan.
Plan Type: We refer to the plan by the Tax Code section under which it
qualifies. For example: a "457 plan" is a plan that qualifies for tax treatment
under code section 457. To learn which code section applies to your plan,
contact your plan sponsor, your Aetna representative or the Company.
Contract Rights: Rights under the contract and who may exercise those rights,
may vary by plan type. Also, while the contract may reserve certain rights for
the contract holder, the contract holder may permit you to exercise those
rights through the plan.
5
<PAGE>
Questions: Contacting the Company. Contact your local representative or write
or call the Home Office:
Aetna Financial Services
Annuity Services
151 Farmington Avenue
Hartford, CT 06156-1277
1-800-262-3862
(1-800-462-4458 for participants in contracts issued to the San Bernardino
County and Macomb County plans)
Sending forms and written requests in good order
If you are writing to change your beneficiary, request a withdrawal, or for any
other purpose, contact your local representative or the Company to learn what
information is required in order for the request to be in "good order." We can
only act upon written requests that are received in good order.
- --------------------------------------------------------------------------------
Contract Phases
- --------------------------------------------------------------------------------
I. The Accumulation Phase (accumulating retirement benefits)
STEP 1: You or the contract holder provide Aetna Life Insurance and Annuity
Company with your completed enrollment materials. According to the plan, we set
up one or more accounts for you. We may set up account(s) for employer
contributions and/or for contributions from your salary.
------------------
Payments to
Your Account
------------------
Step 1
---------------------------------------------------
Aetna Life Insurance and Annuity Company
---------------------------------------------------
(a) Step 2 (b)
- --------- ---------------------------------------------------
Variable Annuity
Fixed Account C
Interest
Options Variable Investment Options
- ---------
---------------------------------------------------
The Subaccounts
---------------------------------------------------
A B Etc.
---------------------------------------------------
Step 2(b)
---------------------------------------------------
Mutual Mutual Etc.
Fund A Fund B
---------------------------------------------------
STEP 2: The contract holder, or you if permitted by your plan, directs us to
invest your account dollars in any of the:
(a) Fixed Interest Options: and/or
(b) Variable Investment Options. (The variable investment options are the
subaccounts of Variable Annuity Account C. Each one invests in a specific
mutual fund.)
The subaccount(s) selected purchases shares of its corresponding fund.
II. The Income Phase
The contract offers several payment options. See "The Income Phase." In
general, you may:
> Receive income phase payments over a lifetime or a specified period;
> Receive income phase payments monthly, quarterly, semi-annually or annually;
> Select an option that provides a death benefit to beneficiaries; or
> Select fixed income phase payments or payments that vary based on the
performance of the variable investment options you select.
6
<PAGE>
Fee Table
- --------------------------------------------------------------------------------
The tables and examples in this section show the fees your account may incur
while accumulating dollars under the contract (the Accumulation Phase). See
"The Income Phase" for fees that may apply after you begin receiving payments
under the contract. The fees shown below do not include premium taxes that may
be applicable.
Maximum Transaction Fees
Maximum Early Withdrawal Charge(1).....................5% of amount withdrawn
This is a deferred sales charge. It is a percentage of the amount withdrawn.
The percentage will be determined by the applicable early withdrawal charge
schedule in the "Fees" section. In certain cases, this charge may not apply to
a portion or all of your withdrawal. The early withdrawal charge reduces over
time.
Maximum Annual Maintenance Fee(1)......................................$30.00
Maximum Fees Deducted From the Subaccounts
Maximum Amounts(1)
(Daily deductions equal to the given percentage on an annual basis)
Mortality and Expense Risk Charge.......................................1.50%
Administrative Expense Charge(2)....................................... 0.25%
-----
Total Separate Account Expenses........................................ 1.75%
=====
- -------------------------
(1) These fees may be waived, reduced or eliminated in certain circumstances.
See "Fees."
(2) We only impose this charge under some contracts. See "Fees."
In This Section:
> Maximum Transaction Fees;
> Maximum Fees Deducted From the Subaccounts;
> Fees Deducted by the Funds; and
> Examples of Fee Deductions.
Also, see the "Fees" section for:
> Early Withdrawal Charge Schedules;
> How, When and Why Fees are Deducted;
> Reduction, Waiver and/or Elimination of Certain Fees; and
> Premium and Other Taxes.
See "The Income Phase" for:
> Fees during the income phase.
7
<PAGE>
Fees Deducted by the Funds
Using this Information. The following table shows the investment advisory fees
and other expenses charged annually by each fund. Fund fees are one factor that
impacts the value of a fund share. To learn about additional factors, refer to
the fund prospectus.
How Fees are Deducted. Fund fees are not deducted from account values. Instead,
fees are deducted from the value of the fund shares on a daily basis, which in
turn will affect the value of each subaccount on a daily basis. Except as noted
below, the following figures are a percentage of the average net assets of each
fund, and are based on figures for the year ended December 31, 1999.
<TABLE>
<CAPTION>
Fund Expense Table
Total Fund Net Fund
Annual Annual
Expenses Expenses
Investment Without Total After
Advisory Other Waivers or Waivers and Waivers or
Fees(1) Expenses Reductions Reductions Reductions
------------------- ---------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Aetna Ascent VP(2) 0.60% 0.14% 0.74% 0.00% 0.74%
Aetna Balanced VP, Inc. 0.50% 0.09% 0.59% -- 0.59%
Aetna Bond VP 0.40% 0.09% 0.49% -- 0.49%
Aetna Crossroads VP(2) 0.60% 0.14% 0.74% 0.04% 0.70%
Aetna Growth VP(2) 0.60% 0.11% 0.71% 0.00% 0.71%
Aetna Growth and Income VP 0.50% 0.08% 0.58% -- 0.58%
Aetna High Yield VP(2) 0.65% 0.48% 1.13% 0.33% 0.80%
Aetna Index Plus Large Cap VP(2) 0.35% 0.10% 0.45% 0.00% 0.45%
Aetna Index Plus Mid Cap VP(2) 0.40% 0.40% 0.80% 0.20% 0.60%
Aetna Index Plus Small Cap VP(2) 0.40% 0.50% 0.90% 0.30% 0.60%
Aetna International VP(2) 0.85% 0.77% 1.62% 0.47% 1.15%
Aetna Legacy VP(2) 0.60% 0.15% 0.75% 0.10% 0.65%
Aetna Money Market VP 0.25% 0.09% 0.34% -- 0.34%
Aetna Real Estate Securities VP(2) 0.75% 0.74% 1.49% 0.54% 0.95%
Aetna Small Company VP(2) 0.75% 0.13% 0.88% 0.00% 0.88%
Aetna Technology VP(2)(3) 0.95% 0.25% 1.20% 0.05% 1.15%
Aetna Value Opportunity VP(2) 0.60% 0.13% 0.73% 0.00% 0.73%
AIM V.I. Capital Appreciation Fund 0.62% 0.11% 0.73% -- 0.73%
AIM V.I. Growth Fund 0.63% 0.10% 0.73% -- 0.73%
AIM V.I. Growth and Income Fund 0.61% 0.16% 0.77% -- 0.77%
AIM V.I. Value Fund 0.61% 0.15% 0.76% -- 0.76%
Calvert Social Balanced Portfolio(4) 0.70% 0.19% 0.89% 0.00% 0.89%
DEM[Reg TM] Equity Fund (5) 0.90% 2.10% 3.00% 1.75% 1.25%
Fidelity VIP Equity-Income Portfolio(6) 0.48% 0.09% 0.57% -- 0.57%
Fidelity VIP Growth Portfolio(6) 0.58% 0.08% 0.66% -- 0.66%
Fidelity VIP Overseas Portfolio(6) 0.73% 0.18% 0.91% -- 0.91%
Fidelity VIP II Contrafund[Reg TM] Portfolio(6) 0.58% 0.09% 0.67% -- 0.67%
Janus Aspen Aggressive Growth Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Balanced Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Flexible Income Portfolio(7) 0.65% 0.07% 0.72% 0.00% 0.72%
Janus Aspen Growth Portfolio(7) 0.65% 0.02% 0.67% 0.00% 0.67%
Janus Aspen Worldwide Growth Portfolio(7) 0.65% 0.05% 0.70% 0.00% 0.70%
Janus Twenty Fund (8) 0.65% 0.23% 0.88% 0.00% 0.88%
Lexington Natural Resources Trust 1.00% 0.33% 1.33% -- 1.33%
Oppenheimer Global Securities Fund/VA 0.67% 0.02% 0.69% -- 0.69%
Oppenheimer Strategic Bond Fund/VA 0.74% 0.04% 0.78% -- 0.78%
PPI MFS Capital Opportunities Portfolio(9) 0.65% 0.25% 0.90% 0.00% 0.90%
PPI MFS Emerging Equities Portfolio(9) 0.67% 0.13% 0.80% 0.00% 0.80%
PPI MFS Research Growth Portfolio(9) 0.70% 0.15% 0.85% 0.00% 0.85%
PPI Scudder International Growth Portfolio(9) 0.80% 0.20% 1.00% 0.00% 1.00%
PPI T. Rowe Price Growth Equity Portfolio(9) 0.60% 0.15% 0.75% 0.00% 0.75%
</TABLE>
8
<PAGE>
Footnotes to the "Fund Expense Table"
(1) Certain of the fund advisers reimburse the company for administrative costs
incurred in connection with administering the funds as variable funding
options under the contract. These reimbursements are generally paid out of
the Investment Advisory Fees and are not charged to investors. For the AIM
Funds, the reimbursements may be paid out of fund assets in an amount up to
0.25% annually. Any such reimbursements paid from the AIM Funds' assets are
included in the "Other Expenses" column.
(2) The investment adviser is contractually obligated through December 31, 2000
to waive all or a portion of its investment advisory fee and/or its
administrative services fee and/or to reimburse a portion of other expenses
in order to ensure that the fund's "Total Fund Annual Expenses Without
Waivers or Reductions" do not exceed the percentage reflected under "Net
Fund Annual Expenses After Waivers or Reductions."
(3) Aetna Technology VP commenced operations on May 1, 2000. Amounts reflected
in "Other Expenses" and "Total Fund Annual Expenses Without Waivers or
Reductions" are estimated amounts for the current fiscal year based on
expenses for comparable funds. Actual expenses may vary from those shown.
(4) "Other Expenses" reflect an indirect fee of 0.03% relating to an expense
offset arrangement with the portfolio's custodian. The amount shown under
Total Waivers and Reductions does not reflect a voluntary reduction of
fees paid indirectly. If this voluntary reduction of fees paid indirectly
was reflected, the amount shown under Net Fund Annual Expenses After
Waiver or Reductions would be 0.86%.
(5) The amount shown under "Other Expenses" includes a fee paid to the fund's
distributor for stockholder servicing and distribution services at an annual
rate of up to a total of 0.25% of average daily net assets. The fund's
investment adviser has contractually agreed to limit the total annual
operating expenses of the fund, solely attributable to the Institutional
Shares, to 1.25% of average daily net assets effective March 17, 2000 until
at least December 31, 2009. However, there is no guarantee the fund's
investment adviser will contract to limit the total annual operating
expenses of the fund attributable to the Institutional Shares beyond
December 31, 2009.
(6) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds',
or the investment adviser on behalf of certain funds', custodian, credits
realized as a result of uninvested cash balances were used to reduce a
portion of each applicable fund's expenses. These credits are not included
under Total Waivers and Reductions. If these credits had been included, the
amounts shown under Net Fund Annual Expenses After Waivers or Reductions
presented in the table would have been 0.56% for Fidelity VIP Equity-Income
Portfolio; 0.65% for Fidelity VIP Growth Portfolio; 0.87% for Fidelity VIP
Overseas Portfolio; and 0.65% for Fidelity VIP II Contrafund(R) Portfolio.
(7) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for Aggressive
Growth, Balanced, Growth and Worldwide Growth Portfolios. All expenses are
shown without the effect of expense offset arrangements.
(8) Investment Advisory Fees information has been restated to reflect a new
fee schedule effective January 31, 2000. Other Expenses were determined
based on net assets as of the fiscal year ended October 31, 1999.
(9) The investment adviser has agreed to reimburse the portfolios for expenses
and/or waive its fees, so that, through at least April 30, 2001, the
aggregate of each portfolio's expenses will not exceed the combined
investment advisory fees and other expenses shown under the Net Fund Annual
Expenses After Waivers or Reductions column above.
9
<PAGE>
Hypothetical Examples
Account Fees Incurred Over Time. The following hypothetical examples show the
fees paid over time if $1,000 is invested in a subaccount, assuming a 5% annual
return on the investment. For the purpose of these examples, we deducted the
maximum allowed under the contract for the following fees: mortality and
expense risk charge of 1.50% annually, an administrative expense charge of
0.25% annually, and a maintenance fee of $30.00 (converted to a percentage of
assets equal to 0.039%). The total annual fund expenses used are those shown in
the column "Total Annual Expenses Without Waivers or Reductions" in the Fund
Expense Table.
<TABLE>
<CAPTION>
> These examples are purely hypothetical.
> They should not be considered a
representation of past or future fees or
expected returns.
> Actual fees and/or returns may be more or
less than those shown in these examples.
EXAMPLE A EXAMPLE B
--------------------------------------- --------------------------------------
If you leave your entire account
If you withdraw your entire account value invested or if you select an income
value at the end of the periods shown, phase payment option at the end of the
you would pay the following fees, periods shown, you would pay the
including any applicable early following fees (no early withdrawal
withdrawal charge assessed:* charge is reflected):**
1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
-------- --------- --------- ---------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Ascent VP $77 $133 $191 $286 $26 $ 79 $135 $286
Aetna Balanced VP, Inc. $75 $128 $184 $272 $24 $ 74 $127 $272
Aetna Bond VP $74 $125 $179 $261 $23 $ 71 $122 $261
Aetna Crossroads VP $77 $133 $191 $286 $26 $ 79 $135 $286
Aetna Growth VP $77 $132 $190 $283 $25 $ 78 $133 $283
Aetna Growth and Income VP $75 $128 $183 $271 $24 $ 74 $126 $271
Aetna High Yield VP $81 $144 $209 $324 $29 $ 90 $154 $324
Aetna Index Plus Large Cap VP $74 $124 $177 $257 $23 $ 70 $120 $257
Aetna Index Plus Mid Cap VP $77 $134 $194 $292 $26 $ 81 $137 $292
Aetna Index Plus Small Cap VP $78 $137 $198 $302 $27 $ 84 $142 $302
Aetna International VP $85 $157 $231 $369 $34 $105 $177 $369
Aetna Legacy VP $77 $133 $191 $287 $26 $ 79 $135 $287
Aetna Money Market VP $73 $121 $172 $246 $22 $ 67 $114 $246
Aetna Real Estate Securities VP $84 $154 $226 $358 $33 $101 $171 $358
Aetna Small Company VP $78 $136 $198 $300 $27 $ 83 $141 $300
Aetna Technology VP $81 $145 $212 $331 $30 $ 92 $157 $331
Aetna Value Opportunity VP $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Capital Appreciation Fund $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Growth Fund $77 $132 $191 $285 $26 $ 78 $134 $285
AIM V.I. Growth and Income Fund $77 $133 $192 $289 $26 $ 80 $136 $289
AIM V.I. Value Fund $77 $133 $192 $288 $26 $ 79 $135 $288
Calvert Social Balanced Portfolio $78 $137 $198 $301 $27 $ 83 $142 $301
DEM[Reg TM] Equity Fund $98 $194 $291 $484 $48 $144 $241 $484
Fidelity VIP Equity-Income Portfolio $75 $128 $183 $270 $24 $ 74 $126 $270
Fidelity VIP Growth Portfolio $76 $130 $187 $279 $25 $ 76 $131 $279
Fidelity VIP Overseas Portfolio $78 $137 $199 $303 $27 $ 84 $143 $303
Fidelity VIP II Contrafund[Reg TM] Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Aggressive Growth Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Balanced Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Flexible Income Portfolio $77 $132 $190 $284 $25 $ 78 $133 $284
Janus Aspen Growth Portfolio $76 $131 $188 $280 $25 $ 77 $131 $280
Janus Aspen Worldwide Growth Portfolio $76 $131 $189 $282 $25 $ 78 $133 $282
Janus Twenty Fund $78 $136 $198 $300 $27 $ 83 $141 $300
Lexington Natural Resources Trust $82 $149 $218 $343 $31 $ 96 $163 $343
Oppenheimer Global Securities Fund/VA $76 $131 $189 $282 $25 $ 77 $132 $282
Oppenheimer Strategic Bond Fund/VA $77 $134 $193 $290 $26 $ 80 $136 $290
PPI MFS Capital Opportunities Portfolio $78 $137 $198 $302 $27 $ 84 $142 $302
PPI MFS Emerging Equities Portfolio $77 $134 $194 $292 $26 $ 81 $137 $292
PPI MFS Research Growth Portfolio $78 $136 $196 $297 $27 $ 82 $140 $297
PPI Scudder International Growth Portfolio $79 $140 $203 $312 $28 $ 86 $147 $312
PPI T. Rowe Price Growth Equity Portfolio $77 $133 $191 $287 $26 $ 79 $135 $287
</TABLE>
- -----------------
* This example reflects deduction of an early withdrawal charge calculated
using Early Withdrawal Charge Schedule I (based on completed purchase
payment periods.) Schedule I is listed in "Fees." Under that schedule, if
only one $1,000 payment was made as described above, fewer than 5 purchase
payments would have been completed at the end of years 1, 3 and 5, and the
5% charge would apply. At the end of the tenth account year, the early
withdrawal charge is waived regardless of the number of purchase payment
periods completed, and no early withdrawal charge would apply.
** Example B will not apply if during the income phase a nonlifetime payment
option is elected with variable payments and a lump-sum payment is
requested within a certain number of years as specified in the contract. In
that case, the lump-sum payment is treated as a withdrawal during the
accumulation phase and may be subject to an early withdrawal charge. (Refer
to Example A.)
10
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
Understanding Condensed Financial Information. In Appendix VI, we provide
condensed financial information about the Variable Annuity Account C (the
separate account) subaccounts available under the contracts. These tables show
the values of the subaccounts over the past 10 years. For subaccounts that were
not available 10 years ago, we give a history from the date of first
availability.
Investment Options
- --------------------------------------------------------------------------------
The contract offers variable investment options and fixed interest options.
When we establish your account(s), the contract holder, or you if permitted by
the plan, instructs us to direct account dollars to any of the available
options.
Variable Investment Options. These options are called subaccounts. The
subaccounts are within Variable Annuity Account C (the separate account), a
separate account of the Company. Earnings on amounts invested in a subaccount
will vary depending upon the performance and fees of its underlying fund. You
do not invest directly in or hold shares of the funds.
> Fund Descriptions. We provide brief descriptions of the funds in Appendix V.
Please refer to the fund prospectuses for additional information. Fund
prospectuses may be obtained, free of charge, from our Home Office at the
address and telephone number listed in "Contract Overview", by accessing the
SEC's web site or by contacting the SEC's Public Reference Room.
Fixed Interest Options. For descriptions of the fixed interest options, see
Appendices I, II and III and the Guaranteed Accumulation Account prospectus.
- --------------------------------------------------------------------------------
Selecting Investment Options
o Choose options appropriate for you. Your Aetna representative can help you
evaluate which subaccounts or fixed interest options may be appropriate for
your financial goals.
o Understand the risks associated with the options you choose. Some
subaccounts invest in funds that are considered riskier than others. Funds
with additional risks are expected to have a value that rises and falls
more rapidly and to a greater degree than other funds. For example, funds
investing in foreign or international securities are subject to additional
risks not associated with domestic investments, and their performance may
vary accordingly. Also, funds using derivatives in their investment
strategy may be subject to additional risks.
o Be informed. Read this prospectus, the fund prospectuses, fixed interest
option appendices and the Guaranteed Accumulation Account prospectus.
- --------------------------------------------------------------------------------
Limits on Option Availability. Some subaccounts and fixed interest options may
not be available through certain contracts and plans or in some states. We may
add, withdraw or substitute investment options subject to the conditions in the
contract and in compliance with regulatory requirements.
11
<PAGE>
Limits on Number of Options Selected. Generally, the contract holder, or you if
permitted by the plan, may select no more than 18 investment options at one
time during the accumulation phase of your account. If you have an outstanding
loan (403(b) and some 401 or 403(a) plans only), you may currently make a total
of 18 cumulative selections over the life of the account. Each subaccount, the
Fixed Account, Fixed Plus Account, and each classification of the Guaranteed
Accumulation Account selected counts toward these limits. If you have a loan on
the account, each option counts toward the limit, even after the full value is
transferred to other options.
Limits Imposed by the Underlying Fund. Orders for the purchase of fund shares
may be subject to acceptance by the fund. We reserve the right to reject,
without prior notice, any allocation of purchase payment to a subaccount if the
subaccount's investment in the corresponding fund is not accepted by the fund
for any reason.
Additional Risks of Investing in the Funds.
Variable Funds. (Mixed and Shared Funding) Most of the funds described in this
prospectus are available only to insurance companies for their variable
contracts. Such funds are often referred to as "variable funds," and are used
for "mixed" and "shared" funding.
"Mixed funding" occurs when shares of a fund, which the subaccounts buy for
variable annuity contracts, are bought for variable life insurance contracts
issued by us or other insurance companies.
"Shared funding" occurs when shares of a fund, which the subaccounts buy for
variable annuity contracts, are also bought by other insurance companies for
their variable annuity contracts.
> Mixed--bought for annuities and life insurance
> Shared--bought by more than one company
Public Funds. The following funds, which the subaccounts buy for variable
annuity contracts, are also available to the general public:
> DEM[Reg TM] Equity (Institutional Shares)
> Janus Twenty Fund
See "Taxation--403(b) Plans" for a discussion of investing in one of the public
funds under a 403(b) annuity contract.
Possible Conflicts of Interest. With respect to the variable funds and the
public funds, it is possible that a conflict of interest may arise due to mixed
and shared funding, a change in law affecting the operations of variable
annuity separate accounts, differences in the voting instructions of the
contract holder and others maintaining a voting interest in the funds, or some
other reason. Such a conflict could adversely impact the value of a fund. For
example, if a conflict of interest occurred and one of the subaccounts withdrew
its investment in a fund, the fund may be forced to sell its securities at
disadvantageous prices, causing its share value to decrease. Each variable
fund's board of directors or trustees will monitor events in order to identify
any conflicts which may arise and to determine what action, if any, should be
taken to address such conflicts. With respect to both the public funds and the
variable funds, in the event of a conflict, the Company will take any steps
necessary to protect contract holders and annuitants maintaining a voting
interest in the funds, including the withdrawal of Variable Annuity Account C
from participation in the funds which are involved in the conflict.
12
<PAGE>
Transfers
- --------------------------------------------------------------------------------
Transfers Among Investment Options. During the accumulation phase and under
some contracts, the income phase, the contract holder, or you if permitted by
the plan, may transfer amounts among investment options. Transfers from fixed
interest options are restricted as outlined in Appendices I, II and III.
Transfers may be requested in writing, by telephone or, where available,
electronically. Transfers must be made in accordance with the terms of the
contract.
Value of Transferred Dollars. The value of amounts transferred in or out of
subaccounts will be based on the subaccount unit values next determined after
we receive your request in good order at our Home Office, or if you are
participating in the dollar cost averaging program, after your scheduled
transfer.
Telephone and Electronic Transfers: Security Measures. To prevent fraudulent
use of telephone or electronic transactions (including, but not limited to,
internet transactions), we have established security procedures. These include
recording calls on our toll-free telephone lines and requiring use of a
personal identification number (PIN) to execute transactions. You are
responsible for keeping your PIN and account information confidential. If we
fail to follow reasonable security procedures, we may be liable for losses due
to unauthorized or fraudulent telephone or other electronic transactions. We
are not liable for losses resulting from following telephone or electronic
instructions we believe to be genuine. If a loss occurs when we rely on such
instructions, you will bear the loss.
Limits on Frequent Transfers. The contracts are not designed to serve as
vehicles for frequent trading in response to short-term fluctuations in the
market. Such frequent trading can disrupt management of a fund and raise its
expenses. This in turn can have an adverse effect on fund performance.
Accordingly, organizations or individuals that use market-timing investment
strategies and make frequent transfers should not purchase the contracts.
We reserve the right to restrict, in our sole discretion and without prior
notice, transfers initiated by a market-timing organization or individual or
other party authorized to give transfer instructions on behalf of multiple
contract holders or participants. Such restrictions could include:
(1) Not accepting transfer instructions from an agent acting on behalf of more
than one contract holder or participant; and
(2) Not accepting preauthorized transfer forms from market timers or other
entities acting on behalf of more than one contract holder or participant
at a time.
We further reserve the right to impose, without prior notice, restrictions on
any transfers that we determine, in our sole discretion, will disadvantage or
potentially hurt the rights or interests of other contract holders or
participants.
The Dollar Cost Averaging Program. Certain contracts allow you to participate
in our Dollar Cost Averaging Program. There is no additional charge for this
service. Dollar cost averaging is a system for investing that buys fixed dollar
amounts of an investment at regular intervals, regardless of price. Our program
transfers, at regular intervals, a fixed dollar amount to one or more
subaccounts that you select. Dollar cost averaging is not permitted into the
Lexington Natural Resources Trust subaccount. Dollar cost averaging neither
ensures a profit nor guarantees against loss in a declining market. You should
consider your financial ability to continue purchases through periods of low
price levels. For additional information about this program, contact your local
representative or call the Company at the number listed in "Contract
Overview--Questions."
13
<PAGE>
Contract Purchase and Participation
- --------------------------------------------------------------------------------
Contracts Available for Purchase. The contracts available for purchase are
group or individual deferred annuity contracts that the Company offers in
connection with plans established by eligible organizations under Tax Code
sections 401(a), 401(k), 403(a), 403(b) and 457.
ERISA Notification. Some plans under Sections 401, 403(a) and 403(b) are
subject to Title I of the Employee Retirement Income Security Act of 1974
(ERISA), as amended. The contract holder must notify the Company whether Title
I of ERISA applies to the plan.
Purchasing the Contract.
1. The contract holder submits the required forms and application to the
Company.
2. We approve the forms and issue a contract to the contract holder.
Participating in the Contract.
1. We provide you with enrollment materials for completion and return to us
(occasionally enrollment is conducted by someone unaffiliated with us who
is assisting the contract holder).
2. If your enrollment materials are complete and in good order, we establish
one or more accounts for you. Under certain plans we establish an employee
account for contributions from your salary and an employer account for
employer contributions.
Acceptance or Rejection. We must accept or reject an application or your
enrollment materials within two business days of receipt. If the forms are
incomplete, we may hold any forms and accompanying purchase payments for five
business days, unless you consent to our holding them longer. Under limited
circumstances, we may also agree, for a particular plan, to hold purchase
payments for longer periods with the permission of the contract holder. If we
agree to do this, we will deposit the purchase payments in the Aetna Money
Market VP subaccount until the forms are completed (or for a maximum of 105
days). If we reject the application or enrollment, we will return the forms and
any purchase payments.
14
<PAGE>
Methods of Purchase Payment. The contract may allow one or more of the
following purchase payment methods:
> Lump-sum payments--A one-time payment to your account in the form of a
transfer from a previous plan and/or
> Installment payments--More than one payment made over time to your account
The plan and the contract may have certain rules or restrictions that apply to
use of these two methods. For example, we may require that installment payments
meet certain minimums. Under some contracts, we will place the different types
of payments in distinct accounts, where each account will have its own early
withdrawal charge schedule. See "Fees--Early Withdrawal Charge Schedules."
Allocation of Purchase Payments. The contract holder or you, if the contract
holder permits, directs us to allocate initial contributions to the investment
options available under the plan. Generally, you will specify this information
on your enrollment materials. After your enrollment, changes to allocations for
future purchase payments or transfer of existing balances among investment
options may be requested in writing and, where available, by telephone or
electronically. Allocations must be in whole percentages, and there may be
limitations on the number of investment options that can be selected. See
"Investment Options" and "Transfers."
Transfer Credits. The Company provides a transfer credit in some cases on
transferred assets, as defined by the Company, subject to certain conditions
and state approvals. This benefit is provided on a nondiscriminatory basis. If
a transfer credit is due under the contract, you will be provided with
additional information specific to the contract.
Tax Code Restrictions. The Tax Code places some limitations on contributions to
your account. See "Taxation."
Contract Ownership and Rights
- --------------------------------------------------------------------------------
Who Owns the Contract? The contract holder. This is the person or entity to
whom we issue the contract.
Who Owns Money Accumulated Under the Contract?
> Under 457 Plans. The Tax Code requires that 457 plan assets of governmental
employers be held in trust for the exclusive benefit of you and your
beneficiaries. An annuity contract satisfies the trust requirement of the Tax
Code.
> Under 403(b) Plans. Under the contract, we may establish one or more accounts
for you. Generally, we establish an employee account to receive salary
reduction and rollover amounts and an employer account to receive employer
contributions. You have the right to the value of your employee account and
any employer account to the extent you are vested as interpreted by the
contract holder.
15
<PAGE>
> Under 401(a)/401(k) or 403(a) Plans. Under the contract, we may establish one
or more accounts for you. Generally, we establish an employee account to
receive salary reduction and rollover amounts and an employer account to
receive employer contributions. You have the right to the value of your
employee account and any employer account to the extent that you are vested
under the plan as interpreted by the contract holder.
Who Holds Rights under the Contract?
> Under all contracts, except group contracts issued through a voluntary 403(b)
plan, the contract holder holds all rights under the contract. The contract
holder may permit you to exercise some of those rights. For example, the
contract holder may allow you to choose investment options.
> If you participate in a group or individual contract through a voluntary
403(b) plan, you hold all rights under the contract.
Right to Cancel
- --------------------------------------------------------------------------------
When and How to Cancel. If the contract holder chooses to cancel a contract, we
must receive the contract and a written notice of cancellation within 10 days
(or a longer period if required by state law) after the contract holder's
receipt of the contract.
If you wish to cancel participation in the contract and are allowed to do so
under the contract and the plan, you must send the document evidencing your
participation and a written notice of cancellation to the Company within 10
days after you receive confirmation of your participation in the contract.
Refunds. We will produce a refund not later than seven days after we receive
the required documents and written notice in good order at our Home Office. The
refund will equal amounts contributed to the contract or account(s), as
applicable, plus any earnings or less any losses attributable to the investment
options in which amounts were invested. In certain states, we are required to
refund contributions. When a refund of contributions is not required, the
investor bears any investment risk.
16
<PAGE>
Fees
- --------------------------------------------------------------------------------
The following repeats and adds to information provided in the "Fee Table"
section. Please review both this section and the "Fee Table" section for
information on fees.
I. Transaction Fees
Early Withdrawal Charge
Withdrawals of all or a portion of your account value may be subject to a
charge.
Purpose: This is a deferred sales charge. It reimburses us for some of the
sales and administrative expenses associated with the contract. If our expenses
are greater than the amount we collect for the early withdrawal charge, we may
use any of our corporate assets, including potential profit that may arise from
the mortality and expense risk charges, to make up the difference.
Amount: This charge is a percentage of the amount that you withdraw from the
subaccounts, the Fixed Account and the Guaranteed Accumulation Account. We do
not deduct an early withdrawal charge from amounts that you withdraw from the
Fixed Plus Account. The percentage is determined by the early withdrawal charge
schedule that applies to your account. Some of these schedules are listed
below. The charge will never be more than 8.5% of your total purchase payments
to the account, or under some contracts, the maximum permitted by the rules of
the National Association of Securities Dealers.
Early Withdrawal Charge Schedules. You may determine which schedule applies to
you by consulting your certificate or the contract (held by the contract
holder).
Schedule I. This is the maximum early withdrawal charge schedule under the
contracts. It grades down to zero over a 10-year period, as shown below. Some
contracts have schedules that grade down to zero over fewer than 10 years.
Each contract will specify whether a schedule is based on one of the following:
(1) The number of years since the account was established; (2) the number of
years since the contract was established; or (3) the number of completed
purchase payment periods.
Unless the contract provides otherwise, the same schedule applies to
installment purchase payments (ongoing contributions) and to single purchase
payments (rollovers, exchanges or other one-time contributions).
Schedule I
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Purchase Payment or Contribution
Periods or, Contract Years or Account
Years Completed (depending upon
the contract) Early Withdrawal Charge
- --------------------------------------------- ------------------------
<S> <C>
Fewer than 5 5%
5 or more but fewer than 7 4%
7 or more but fewer than 9 3%
9 or more but fewer than 10 2%
more than 10 0%
- --------------------------------------------------------------------------------
</TABLE>
Types of Fees
There are three types of fees which you may incur under the contract:
> Transaction Fees
o Early Withdrawal Charge
o Annual Maintenance Fee
> Fees Deducted from the Subaccounts
o Mortality and Expense Risk Charge
o Administrative Expense Charge
> Fees Deducted by the Funds
o Investment Advisory Fees
o Other Expenses
Terms to Understand in
Schedules I and II
> Account Year--a 12-month period measured from the date we establish your
account, or measured from any anniversary of that date.
> Contract Year--a 12-month period measured from the date we establish the
contract, or measured from any anniversary of that date.
> Purchase Payment Period (also called Contribution Period under some
contracts) (for installment payments under some contracts)--the period of
time it takes to complete the number of installment payments expected to be
made to your account over a year. For example, if your payment frequency is
monthly, a payment period is completed after 12 payments are made. If only 11
payments are made, the payment period is not completed until the twelfth
payment is made. At any given time, the number of payment periods completed
cannot exceed the number of account years completed, regardless of the number
of payments made.
17
<PAGE>
Schedule II. For contracts where we establish distinct accounts for installment
purchase payments and single purchase payments (defined above), Schedule I
applies to installment payment accounts and Schedule II applies to single
payment accounts. As shown below, Schedule II grades down to zero over a
nine-year period as account years are completed.
Schedule II
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Account Years Completed Early Withdrawal Charge
- --------------------------------------- ------------------------
<S> <C>
Fewer than 5 5%
5 or more but fewer than 6 4%
6 or more but fewer than 7 3%
7 or more but fewer than 8 2%
8 or more but fewer than 9 1%
9 or more 0%
- --------------------------------------------------------------------------------
</TABLE>
Early Withdrawal Charge Waivers under all Contracts. These apply to all
contracts. Also read the following two subsections regarding additional
waivers, reduction or elimination of the charge.
This charge is waived for portions of a withdrawal that are:
> Used to provide income payments during the income phase;
> Paid because of your death before income payments begin;
> Paid where your account value is $5,000 or less ($3,500 under some contracts
and $1,999 for some contracts issued in New York), (or, if applicable, as
otherwise allowed by the plan for lump-sum cashout without participant's
consent) and no part of the account has been taken as a withdrawal, used to
provide income payments or taken as a loan within the prior 12 months;
> Taken because of the election of a systematic distribution option. See
"Systematic Distribution Options"; or
> Taken on or after the tenth anniversary of the effective date of the account.
Early Withdrawal Charge Waivers under Certain Contracts. To find out which
waivers apply to the contract issued in connection with your plan, consult the
certificate or the contract (held by the contract holder).
This charge is waived for portions of a withdrawal that are:
> Taken under accounts with an early withdrawal charge schedule based on
completed purchase payment periods when you are at least age 59 1/2 and have
completed at least nine purchase payment periods;
> Taken after you have separated from service with your employer. (Under
certain contracts, the employer must provide documentation of separation to
the Company);
> Used to purchase an Aetna single premium immediate annuity or other contracts
allowed by the Company, under the condition that you do not cancel the new
contract and obtain a refund during the cancellation period (If you cancel
the new contract, we will reinstate the account under the old contract. The
amount returned to the account from the new contract may then be withdrawn,
subject to any early withdrawal charge that would have applied at the time
the new contract was established);
> Depending upon the plan, due to financial hardship or hardship resulting from
an unforeseeable emergency, as defined by the Tax Code and
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<PAGE>
regulations thereunder or an in-service distribution permitted by the plan
when certified by the employer;
> From contracts used with plans under section 401(a)/401(k), section 403(a) or
section 403(b) of the Tax Code, if the withdrawal is not more than 10% of
your account value and is the first partial withdrawal in a calendar year (To
qualify for this waiver you must be between the ages of 59 1/2 and 70 1/2 and
cannot have elected the systematic withdrawal option. Any outstanding loans
are not included in the account value when calculating the 10% amount. This
waiver does not apply to full withdrawals or to a withdrawal due to a loan
default.);
> Withdrawn due to the transfer of your account value to another of the
retirement products the Company offers under the contract holder's plan,
subject to various conditions agreed to by the contract holder and the
Company in writing;
> Made because the Company terminated the account under the circumstances
described in "Other Topics--Account Termination"; or
> Withdrawn for a transfer as provided under Internal Revenue Service Ruling
90-24 to a Code section 403(b)(7) custodial account sponsored by the Company.
Reduction, Waiver or Elimination. In addition to the specific waivers described
above, we may reduce, waive or eliminate the early withdrawal charge for a
particular plan. Any such reduction will reflect the differences we expect in
distribution costs or services meant to be defrayed by this charge. Factors we
consider for a reduction include, but are not limited to, the following:
> The number of participants under the plan;
> The expected level of assets or cash flow under the plan;
> Our agent's involvement in sales activities;
> Our sales-related expenses;
> Distribution provisions under the plan;
> The plan's purchase of one or more other variable annuity contracts from us
and the features of those contracts;
> The level of employer involvement in determining eligibility for
distributions under the contract;
> Our assessment of financial risk to the Company relating to withdrawals; and
> Whether the contract results from the exchange of another contract issued by
the Company to the same plan sponsor.
We will not reduce the early withdrawal charge in a manner that is unfairly
discriminatory against any person.
We may also apply different early withdrawal charge provisions in contracts
issued to certain employer groups or associations which have negotiated the
contract terms on behalf of their employees. We will offer any resulting early
withdrawal charge uniformly to all employees in the group.
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<PAGE>
Reduction for Certain New York Contracts. For master 403(b) plan contracts
issued after July 29, 1993 in New York, in addition to waivers or reductions
that we grant, the state of New York requires a reduced early withdrawal charge
schedule for withdrawals from the Guaranteed Accumulation Account. The schedule
grades down over a seven-year period as account years are completed, as shown
in the table below. This same schedule is used for withdrawals from the
subaccounts, Fixed Account or the Guaranteed Accumulation Account for contracts
issued in New York on or after March 7, 2000 under contract form G-CDA-99(NY).
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Completed Account Years Early Withdrawal Charge
- --------------------------------------- ------------------------
<S> <C>
Fewer than 3 5%
3 or more but fewer than 4 4%
4 or more but fewer than 5 3%
5 or more but fewer than 6 2%
6 or more but fewer than 7 1%
7 or more 0%
- --------------------------------------------------------------------------------
</TABLE>
Maintenance Fee
Maximum Amount. $30.00
When/How. For those plans that have a maintenance fee, each year during the
accumulation phase we deduct this fee on your account anniversary and, in some
cases, at the time of full withdrawal. It is deducted on a pro rata basis from
your account value invested in the subaccounts and the fixed interest options.
We do not deduct this fee from a single purchase payment account. Under some
plans we deduct the maintenance fee from both employer and employee accounts.
Under some installment plans, your employer elects whether the fee is deducted
from the employee account, employer account, or a portion from each. The
Company may send a bill to your employer at or prior to such deduction.
Purpose. This fee helps defray the administrative expenses we incur in
establishing and maintaining your account.
Reduction or elimination. When a plan meets certain criteria, we may reduce,
waive or eliminate the maintenance fee. Factors we consider reflect differences
in our level of administrative costs and services, such as:
> The size, type and nature of the group to which a contract is issued;
> The expected level of assets under the plan (Under some contracts, we may
aggregate accounts under different contracts issued by the Company to the
same contract holder.);
> The anticipated level of administrative expenses, such as billing for
payments, producing periodic reports, providing for the direct payment of
account charges rather than having them deducted from account values, and any
other factors pertaining to the level and expense of administrative services
we will provide; and
> The number of eligible participants and the program's participation rate.
Due to factors on which the maintenance fee is based, it is possible that it
may increase or decrease from year to year as the characteristics of the group
changes.
We will not unfairly discriminate against any group if we reduce or eliminate
the maintenance fee. We will make any reduction according to our own rules in
effect at the time we approve the application for a contract. We reserve the
right to change these rules from time to time.
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<PAGE>
II. Fees Deducted from the Subaccounts
Mortality and Expense Risk Charge
Maximum Amount. 1.50% annually of your account value invested in the
subaccounts during the accumulation phase; 1.25% annually of your account value
invested in the subaccount during the income phase. We may charge a different
fee for different funds (but not beyond the maximum amount). See your
certificate or the contract (held by the contract holder).
When/How. This fee is deducted daily from the subaccounts. We do not deduct
this from any fixed interest option.
Purpose. This fee compensates us for the mortality and expense risks we assume
under the contracts.
> The mortality risks are those risks associated with our promise to make
lifetime payments based on annuity rates specified in the contracts and our
funding of the death benefits and other payments we make to owners or
beneficiaries of the accounts.
> The expense risk is the risk that the actual expenses we incur under the
contracts will exceed the maximum costs that we can charge.
If the amount we deduct for this fee is not enough to cover our mortality costs
and expenses under the contracts, we will bear the loss. We may use any excess
to recover distribution costs relating to the contract and as a source of
profit. We expect to make a profit from this fee.
Reduction. We may reduce the mortality and expense risk charge from the maximum
when the plan meets certain criteria and we agree to the reduction with the
contract holder in writing. Some contracts have a reduced mortality and expense
risk charge only during the accumulation phase of the account which then
increases during the income phase (but not beyond the maximum amount). Any
reduction will reflect differences in expenses for administration based on such
factors as:
> The expected level of assets under the plan (Under some contracts, we may
aggregate accounts under different contracts issued by the Company to the
same contract holder.);
> The size of the prospective group, projected annual number of eligible
participants and the program's participation rate;
> The plan design (for example, the plan may favor stability of invested assets
and limit the conditions for withdrawals, loans and available investment
options, which in turn lowers administrative expenses);
> The frequency, consistency and method of submitting payments and loan
repayments;
> The method and extent of onsite services we provide and the contract holder's
involvement in services such as enrollment and ongoing participant services;
> The contract holder's support and involvement in the communication,
enrollment, participant education and other administrative services;
> The projected frequency of distributions; and
> The type and level of other factors that affect the overall administrative
expense.
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<PAGE>
We will determine any reduction of mortality and expense risk on a basis that
is not unfairly discriminatory according to our rules in effect at the time a
contract application is approved. We reserve the right to change these rules
from time to time. Under some contracts we will reassess and increase or
decrease this fee each year on the anniversary of the date the contract was
established. However, the charge that may apply to a given participant upon
entry into the income phase will remain fixed while the participant remains in
that phase.
Administrative Expense Charge
Maximum Amount. 0.25% annually of your account value invested in the
subaccounts.
When/How. For all participants who became covered under a contract on or after
November 5, 1984, we reserve the right to charge an administrative expense
charge of up to 0.25% annually of your account value invested in the
subaccount. We are currently deducting this charge under the contracts issued
to some plans. If charged, this fee is deducted daily from the subaccounts. We
do not deduct this from any fixed interest option. This fee may be assessed
during the accumulation phase and/or the income phase. If we are currently
imposing this fee under the contract issued in connection with your plan when
you enter the income phase, the fee will apply to you during the entire income
phase.
Purpose. This fee helps defray our administrative expenses that cannot be
covered by the mortality and expense charge described above. The fee is not
intended to exceed our average expected cost of administering the contracts. We
do not expect to make a profit from this fee.
Reduction. Under some contracts, if we charge the administrative expense
charge, we may reduce it from the maximum when the plan meets certain criteria
and we agree to the reduction with the contract holder, in writing. The level
of the fee may be reassessed and increased or decreased at each contract
anniversary as the characteristics of the group change.
III. Fund Expenses
Maximum Amount. Each fund determines its own advisory fees and expenses. For a
list of fund fees see "Fee Table." The fees are described in more detail in
each fund prospectus.
When/How. Fund fees are not deducted from your account. Fund advisory fees and
expenses are reflected in the daily value of the fund shares which will, in
turn, affect the daily value of each subaccount.
Purpose. These amounts help to pay the fund's investment advisor and operating
expenses.
IV. Premium and Other Taxes
Maximum Amount. Some states and municipalities charge a premium tax on
annuities. These taxes currently range from 0% to 4%, depending upon the
jurisdiction.
When/How. We reserve the right to deduct premium taxes from your account value
or from payments to the account at any time, but not before there is a tax
liability under state law. Our current practice is to deduct premium taxes at
the time of a full withdrawal or the commencement of income phase payments.
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<PAGE>
We will not deduct any municipal premium tax of 1% or less, but we reserve the
right to reflect such an expense in our annuity purchase rates.
In addition, the Company reserves the right to assess a charge for any federal
taxes due against the separate account. See "Taxation."
Your Account Value
- --------------------------------------------------------------------------------
During the accumulation phase, your account value at any given time equals:
> Account dollars directed to the fixed interest options, including interest
earnings to date
> Less any deductions from the fixed interest options (e.g. withdrawals, fees)
> Plus the current dollar value of amounts invested in the subaccounts.
Subaccount Accumulation Units. When a fund is selected as an investment option,
your account dollars invest in "accumulation units" of the Variable Annuity
Account C subaccount corresponding to that fund. The subaccount invests
directly in the fund shares. The value of your interests in a subaccount is
expressed as the number of accumulation units you hold multiplied by an
"Accumulation Unit Value," as described below, for each unit.
Accumulation Unit Value (AUV). The value of each accumulation unit in a
subaccount is called the accumulation unit value or AUV. The value of
accumulation units vary daily in relation to the underlying fund's investment
performance. The value also reflects deductions for fund fees and expenses, the
mortality and expense risk charge, and the administrative expense charge (if
any). We discuss these deductions in more detail in "Fee Table" and "Fees."
Valuation. We determine the AUV every business day after the close of the New
York Stock Exchange (Exchange). At that time, we calculate the current AUV by
multiplying the AUV last calculated by the "net investment factor" of the
subaccount. The net investment factor measures the investment performance of
the subaccount from one valuation to the next.
Current AUV = Prior AUV x Net Investment Factor
Net Investment Factor. The net investment factor for a subaccount between two
consecutive valuations equals the sum of 1.0000 plus the net investment rate.
Net Investment Rate. The net investment rate is computed according to a formula
that is equivalent to the following:
> The net assets of the fund held by the subaccount as of the current
valuation, minus;
> The net assets of the fund held by the subaccount at the preceding valuation,
plus or minus;
> Taxes or provisions for taxes, if any, due to subaccount operations (with any
federal income tax liability offset by foreign tax credits to the extent
allowed);
> Divided by the total value of the subaccount's units at the preceding
valuation;
> Minus a daily deduction for the mortality and expense risk charge, the
administrative expense charge, if any, and any other fees deducted from
investments in the separate account (such as guaranty charges for the Aetna
GET Fund). See "Fees."
The net investment rate may be either positive or negative.
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<PAGE>
Hypothetical Illustration. As a hypothetical illustration, assume that an
investor contributes $5,000 to his account and directs us to invest $3,000 in
Fund A and $2,000 in Fund B. After receiving the contribution and following the
next close of business of the New York Stock Exchange, the applicable AUV's are
$10 for Subaccount A, and $25 for Subaccount B. The investor's account is
credited with 300 accumulation units of subaccount A, and 80 accumulation units
of subaccount B.
Step 1: An investor contributes $5,000.
---------------------
$5,000 contribution
---------------------
Step 1
---------------------------------------------------
Aetna Life Insurance and Annuity Company
---------------------------------------------------
Step 2
---------------------------------------------------
Variable Annuity Account C
---------------------------------------------------
Subaccount A Subaccount B Etc
300 80
accumulation accumulation
units units
---------------------------------------------------
Step 3
---------- -----------
Fund A Fund B
---------- -----------
Step 2:
A. He directs us to invest $3,000
in Fund A. His dollars purchase
300 accumulation units of
Subaccount A ($3,000 divided by
the current
$10 AUV).
B. He directs us to invest $2,000
in Fund B. His dollars purchase
80 accumulation units of
Subaccount B ($2,000 divided by
the current
$25 AUV).
Step 3: The separate account then
purchases shares of the applicable
funds at the current market value
(net asset value or NAV).
The fund's subsequent investment performance, expenses and charges, and the
daily charges deducted from the subaccount, will cause the AUV to move up or
down on a daily basis.
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<PAGE>
Purchase Payments to Your Account. If all or a portion of initial purchase
payments are directed to the subaccounts, they will purchase subaccount
accumulation units at the AUV next computed after our acceptance of the
applicable application or enrollment forms, as described in "Contract Purchase
and Participation." Subsequent purchase payments or transfers directed to the
subaccounts that we receive in good order by the close of business of the New
York Stock Exchange will purchase subaccount accumulation units at the AUV
computed after the close of the Exchange on that day. The value of subaccounts
may vary day to day.
Withdrawals
- --------------------------------------------------------------------------------
Making a Withdrawal. Subject to limitations on withdrawals from the fixed
interest options and other restrictions (see "Withdrawal Restrictions" below),
the contract holder, or you if permitted by the plan, may withdraw all or a
portion of your account value at any time during the accumulation phase.
Steps for Making a Withdrawal. The contract holder, or you if permitted by the
plan, must:
> Select the withdrawal amount
o Full Withdrawal: You will receive, reduced by any required withholding
tax, your account value allocated to the subaccounts, the Guaranteed
Accumulation Account (plus or minus any applicable market value
adjustment) and the Fixed Account, minus any applicable early withdrawal
charge, plus the amount available for withdrawal from the Fixed Plus
Account.
o Partial Withdrawal (Percentage or Specified Dollar Amount): You will
receive, reduced by any required withholding tax, the amount you specify,
subject to the value available in your account. However, the amount
actually withdrawn from your account will be adjusted by any applicable
early withdrawal charge for amounts withdrawn from the subaccounts, the
Guaranteed Accumulation Account or the Fixed Account, and any positive or
negative market value adjustments for amounts withdrawn from the
Guaranteed Accumulation Account. The amount available from the Fixed Plus
Account may be limited.
For a description of limitations on withdrawals from the Fixed Plus
Account, see Appendix III.
> Select investment options. If this is not specified, we will withdraw dollars
proportionally from each investment option in which you have an account
value.
> Properly complete a disbursement form and submit it to the Home Office.
Calculation of Your Withdrawal. We determine your account value every normal
business day after the close of the New York Stock Exchange. We pay withdrawal
amounts based on your account value either:
(1) As of the next valuation after we receive a request for withdrawal in good
order at our Home Office, or
(2) On such later date as specified on the disbursement form.
Delivery of Payment. Payments for withdrawal requests will be made in
accordance with SEC requirements. Normally, we will send your payment not later
than seven calendar days following our receipt of your disbursement form in
good order.
Taxes, Fees and Deductions
Amounts withdrawn may be subject to one or more of the following:
> Early Withdrawal Charge. See "Fees--Early Withdrawal Charge";
> Maintenance Fee. See "Fees--Maintenance Fee";
> Market Value Adjustment. See Appendix I;
> Tax Penalty. See "Taxation"; and/or
> Tax Withholding. See "Taxation".
To determine which may apply, refer to the appropriate sections of this
prospectus, contact your Aetna representative or call the Company at the number
listed in "Contract Overview--Questions."
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<PAGE>
Reinvestment Privilege. (not applicable to contracts under 457 plans). Some
contracts allow one-time use of a reinvestment privilege. Within 30 days after
a full withdrawal, if allowed by law and the contract, you may elect to
reinvest all or a portion of the proceeds. We must receive reinvested amounts
within 60 days of the withdrawal. We will credit the account for the amount
reinvested based on the subaccount values next computed following our receipt
of your request and the amount to be reinvested. We will credit the amount
reinvested proportionally for maintenance fees and early withdrawal charges
imposed at the time of withdrawal. We will deduct from the amounts reinvested
any maintenance fee which fell due after the withdrawal and before the
reinvestment. We will reinvest in the same investment options and proportions
in place at the time of withdrawal. If you withdraw amounts from a series of
the Aetna GET Fund and then elect to reinvest them, we will reinvest them in a
GET Fund series that is then accepting deposits, if one is available. If one is
not available, we will reallocate your GET amounts among other investment
options in which you invested, on a pro rata basis. Special rules apply to
reinvestments of amounts withdrawn from the Guaranteed Accumulation Account.
See Appendix I. Seek competent advice regarding the tax consequences associated
with reinvestment.
Withdrawal Restrictions. Some plans may have other limits on withdrawals, other
than or in addition to those listed below.
> Section 403(b)(11) of the Tax Code generally prohibits withdrawal under
403(b) contracts prior to your death, disability, attainment of age 591/2,
separation from service, or financial hardship of the following:
(1) Salary reduction contributions made after December 31, 1988; and
(2) Earnings on those contributions and earnings on amounts held before
1989 and credited after December 31, 1988.
> 401(k) plans generally prohibit withdrawal of salary reduction contributions
and associated earnings prior to your death, disability, attainment of age
59 1/2, separation from service, or financial hardship. Income attributable
to salary reduction contributions and credited on or after January 1, 1989
may not be distributed in the case of hardship.
> The contract may require that the contract holder certify that you are
eligible for the distribution.
> If you are married and covered by an ERISA plan, the contract holder must
provide certification that Retirement Equity Act requirements have been met.
> Participants in Ball State University Alternate Pension Plan--The portion of
your account value attributable to employer contributions and applicable
earnings may not be withdrawn unless your employment is terminated with Ball
State University or you have died, retired or separated from service. The
contract holder may withdraw the employer account value, and you may transfer
employer account values pursuant to an IRS Revenue Ruling 90-24 transfer,
without regard to this restriction. No early withdrawal charge will apply to
the first 20% of the employer account value transferred via a 90-24 transfer
in a calendar year. This waiver does not apply to a 90-24 transfer of the
full employer account value.
> Participants in Texas Optional Retirement Program--You may not receive any
distribution before retirement, except upon becoming disabled, as defined in
the Tax Code or terminating employment with Texas public institutions of
higher learning. Conditions under which you may exercise the right to
withdraw and the right to advance the date on which an income phase payment
option is to begin are limited. These restrictions are imposed by
reason of the Texas Attorney General's interpretation of Texas law.
26
<PAGE>
Loans
- --------------------------------------------------------------------------------
Availability. If allowed by the contract and the plan, you may take out a loan
from your account value during the accumulation phase. Some contracts restrict
loans from your employer account. Loans are only allowed from amounts allocated
to certain subaccounts and fixed interest options. Additional restrictions may
apply under the Tax Code or due to our administrative practices.
Requests. If you are eligible to obtain a loan, you may request one by properly
completing the loan request form and submitting it to our Home Office. Read the
terms of the loan agreement before submitting any request.
Systematic Distribution Options
- --------------------------------------------------------------------------------
Availability of Systematic Distribution Options. To exercise one of these
options, the account value must meet any minimum dollar amount and age criteria
applicable to that option. To determine what Systematic Distribution Options
are available, check with the contract holder or the Company. The Company
reserves the right to discontinue the availability of one or all of the
Systematic Distribution Options at any time, and/or to change the terms for
future elections.
Systematic Distribution Options currently available under the contract include
the following:
> SWO--Systematic Withdrawal Option. SWO is a series of partial withdrawals
from your account based on a payment method you select. It is designed for
those who want a periodic income while retaining accumulation phase
investment flexibility for amounts accumulated under the account. (This
option may not be available if you have an outstanding loan.)
> ECO--Estate Conservation Option. ECO also allows you to maintain the account
in the accumulation phase and provides periodic payments designed to meet the
Tax Code's minimum distribution requirement.
Under ECO, the Company calculates the minimum distribution amount required
by law at age 70 1/2 (for certain plans, 70 1/2 or retirement, if later) and
pays you that amount once a year.
For certain contracts issued in the state of New York, no market value
adjustment is imposed on ECO withdrawals from the Guaranteed Accumulation
Account.
> Other Systematic Distribution Options. Other Systematic Distribution Options
may be available from time to time. Additional information relating to any of
the Systematic Distribution Options may be obtained from your local
representative or from the Company's Home Office.
Electing a Systematic Distribution Option. The contract holder, or you if
permitted by the plan, makes the election of a Systematic Distribution Option.
For some contracts, the contract holder must provide the Company with
certification that the distribution is in accordance with the terms of the
plan.
Features of a Systematic Distribution Option
If available under your plan, a Systematic Distribution Option allows you to
receive regular payments from your account without moving into the income
phase. By remaining in the accumulation phase, you retain certain rights and
investment flexibility not available during the income phase. Because the
account remains in the accumulation phase, all accumulation phase charges
continue to apply.
27
<PAGE>
During the Income Phase
This section provides information about the accumulation phase. For death
benefit information applicable to the income phase, see "The Income Phase."
Terminating a Systematic Distribution Option. Once you elect a Systematic
Distribution Option, except for accounts that are part of 457 plan contracts,
you may revoke it at any time through a written request to our Home Office.
Once revoked, an option may not be elected again, nor may any other Systematic
Distribution Option be elected, unless the Tax Code permits it.
Tax Consequences. Withdrawals received through these options and revocations of
elections may have tax consequences. See "Taxation."
Death Benefit
- --------------------------------------------------------------------------------
The contract provides a death benefit in the event of your death, which is
payable to the beneficiary named under the contract (contract beneficiary).
> Under contracts issued in connection with most types of plans except
voluntary 403(b) plans, the contract holder must be named as the contract
beneficiary, but may direct that we make any payments to the beneficiary you
name under the plan (plan beneficiary).
> Under contracts issued in connection with voluntary 403(b) plans, you may
generally designate your own contract beneficiary who will normally be your
plan beneficiary, as well.
During the Accumulation Phase
Payment Process
1. Following your death, the contract beneficiary (on behalf of the plan
beneficiary, if applicable) must provide the Company with proof of death
acceptable to us and a payment request in good order.
2. The payment request should include selection of a benefit payment option.
3. Within seven days after we receive proof of death acceptable to us and
payment request in good order at our Home Office, we will mail payment,
unless otherwise requested.
Until a payment option is selected, account dollars will remain invested as at
the time of your death, and no distributions will be made.
Benefit Payment Options. The following payment options are available, if
allowed by the Tax Code:
> Lump-sum payment;
> Payment under an available income phase payment option (see "The Income
Phase--Payment Options"); and
> If the contract beneficiary or plan beneficiary is your spouse, payment under
an available Systematic Distribution Option (may not be available under all
plans). See "Systematic Distribution Options."
The following options are also available under some contracts, however, the Tax
Code limits how long the death benefit proceeds may be left in these options:
> Leaving the account value invested in the contract;
> Under some contracts, leaving your account value on deposit in the Company's
general account and receiving monthly, quarterly, semi-annual or annual
interest payments at the interest rate currently credited on such
28
<PAGE>
deposits. The balance on deposit can be withdrawn at any time or paid in
accordance with any of the available income phase payment options. See The
Income Phase--Payment Options"
Death Benefit Calculation. For most contracts, the death benefit will be based
on your account value. For amounts held in the Guaranteed Accumulation Account
(GAA), any positive aggregate market value adjustment (the sum of all market
value adjustments calculated due to a withdrawal) will be included in your
account value. If a negative market value adjustment applies, it would be
deducted only if the death benefit is withdrawn more than six months after your
death. We describe the market value adjustment in Appendix I and in the GAA
prospectus.
The death benefit is calculated as of the next time we value your account
following the date on which we receive proof of death and payment request in
good order. In addition to this amount, some states require we pay interest
calculated from date of death at a rate specified by state law.
Some contracts provide a guaranteed death benefit if the contract beneficiary
(on behalf of the plan beneficiary, if applicable) elects a lump-sum
distribution or an income phase payment option within six months of your death.
For those contracts, the guaranteed death benefit is the greater of:
(a) Your account value on the day that notice of death and request for payment
are received in good order at our Home Office, plus any positive aggregate
market value adjustment that applies to amounts allocated to the GAA; or
(b) The sum of payments (minus any applicable premium tax) made to your
account, minus withdrawals made from your account and any outstanding loan
amount.
Tax Code Requirements. The Tax Code requires distribution of death benefit
proceeds within a certain period of time. Failure to begin receiving death
benefit payments within those time periods can result in tax penalties.
Regardless of the method of payment, death benefit proceeds will generally be
taxed to the beneficiary in the same manner as if you had received those
payments. See "Taxation" for additional information.
29
<PAGE>
We may have used the following terms in prior prospectuses:
Annuity Phase--Income Phase
Annuity Option--Income Phase Payment Option
Annuity Payment--Income Phase Payment
Annuitization--Initiating Income Phase Payments
The Income Phase
- --------------------------------------------------------------------------------
During the income phase, you receive payments from your accumulated account
value.
Initiating Income Phase Payments. At least 30 days prior to the date you want
to start receiving income phase payments, the contract holder, or you if
permitted by the plan, must notify us in writing of the following:
> Start date;
> Income phase payment option (see the income phase payment options table in
this section);
> Income phase payment frequency (i.e., monthly, quarterly, semi-annually or
annually);
> Choice of fixed or variable payments;
> Selection of an assumed net investment rate (only if variable payments are
elected); and
> Under some plans, certification from your employer and/or submission of the
appropriate forms is also required.
The account will continue in the accumulation phase until the contract holder
or you, as applicable, properly initiate income phase payments. Once an income
phase payment option is selected, it may not be changed; however, certain
options allow you to withdraw a lump sum.
What Affects Income Phase Payments? Some of the factors that may affect income
phase payments include: your age, your account value, the income phase payment
option selected, number of guaranteed payments (if any) selected, and whether
you select variable or fixed payments.
Fixed Payments. Amounts funding fixed income phase payments will be held in the
Company's general account. Fixed payments will remain the same over time.
Variable Payments. Amounts funding your variable income phase payments will be
held in the subaccount(s) selected, or a combination of subaccounts and fixed
interest options. The contracts may restrict the subaccounts available, the
number of investment options to be selected and how many transfers, if any, are
allowed among options during the income phase. For variable payments, an
assumed net investment rate must be selected.
Payments from the Fixed Plus Account. Under some contracts, if a nonlifetime
income phase payment option is selected, payments from the Fixed Plus Account
may only be made on a fixed basis.
Assumed Net Investment Rate. If you select variable income phase payments, an
assumed net investment rate must also be selected. If you select a 5% rate,
your first payment will be higher, but subsequent payments will increase only
if the investment performance of the subaccounts you selected is greater than
5% annually, after deduction of fees. Payment amounts will decline if the
investment performance is less than 5%, after deduction of fees.
If you select a 3 1/2% rate, your first income phase payment will be lower and
subsequent payments will increase more rapidly or decline more slowly depending
upon the investment performance of the subaccounts you selected. For more
information about selecting an assumed net investment rate, request a copy of
the Statement of Additional Information by calling us. See "Contract
Overview--Questions?"
30
<PAGE>
Selecting an Increasing Payment. Under certain income phase payment options, if
you select fixed payments, some contracts will allow you to elect an increase
of one, two, or three percent, compounded annually. The higher your percentage,
the lower your initial payment will be, while future payments will increase
each year at a greater rate. Generally, this feature is not available with cash
refund payment options and nonlifetime options.
Charges Deducted.
> If variable income phase payments are selected, we make a daily deduction for
mortality and expense risks from any amounts held in the subaccounts. If you
choose variable income phase payments and a nonlifetime income phase option,
we still make this deduction from the subaccounts selected, even though we no
longer assume any mortality risk for you. The maximum mortality and expense
risk charge during the income phase is 1.25% on an annual basis of your
account value invested in the subaccount. Under some contracts, we may reduce
this fee based on certain factors. However, the charge that may apply to a
given participant upon entry into the income phase will remain fixed while
the participant remains in that phase. See "Fees--Mortality and Expense Risk
Charge."
> We may also deduct a daily administrative charge from amounts held in the
subaccounts. We currently charge this under some contracts and reserve the
right to charge it under all others. The maximum amount is 0.25% on an annual
basis of your account value invested in the subaccount. If we are currently
imposing this fee under the contract issued in connection with your plan when
you enter the income phase, the fee will apply throughout the entire income
phase.
Required Minimum Payment Amounts. The initial income phase payment or the
annual income phase payment total must meet the minimums stated in the
contract. If your account value is too low to meet these minimum payment
amounts, you will receive one lump-sum payment.
Death Benefit During the Income Phase. The death benefits that may be available
to a beneficiary are outlined in the income phase payment option table below.
If a lump-sum payment is due as a death benefit, we will make payment within
seven calendar days after we receive proof of death acceptable to us in good
order and the payment request at our Home Office.
Taxation. To avoid certain tax penalties, you and any beneficiary must meet the
distribution rules imposed by the Tax Code. See "Taxation."
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Income Phase Payment Options
The following tables list the income phase payment options and accompanying
death benefits which may be available under the contracts. Some contracts
restrict the options and the terms available. Refer to your certificate or
check with your contract holder for details. We may offer additional income
phase payment options under the contract from time to time.
Terms used in the Tables:
Annuitant: The person(s) on whose life expectancy the income phase payments are
calculated.
Beneficiary: The person designated to receive the death benefit payable under
the contract.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Lifetime Income Phase Payment Options
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Length of Payments: For as long as the annuitant lives. It is possible that only one payment will
Life Income be made should the annuitant die prior to the second payment's due date.
Death Benefit--None: All payments end upon the annuitant's death.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as the annuitant lives, with payments guaranteed for your
Life Income-- choice of 5-30 years or as otherwise specified in the contract.
Guaranteed Pay- Death Benefit--Payment to the Beneficiary: If the annuitant dies before we have made all the
ments guaranteed payments, we will continue to pay the beneficiary the remaining payments. Unless
prohibited by a prior election of the contract holder, the beneficiary may elect to receive a
lump-sum payment equal to the present value of the remaining guaranteed payments.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as either annuitant lives. It is possible that only one payment
will be made should both annuitants die before the second payment's due date.
Continuing Payments:
Life Income--Two (a) When you select this option, you choose for 100%, 66 2/3% or 50% of the payment to con-
Lives tinue to the surviving annuitant after the first death; or
(b) 100% of the payment to continue to the annuitant on the second annuitant's death, and
50% of the payment to continue to the second annuitant on the annuitant's death.
Death Benefit--None: All payments end after the death of both annuitants.
- -----------------------------------------------------------------------------------------------------------------------------
Length of Payments: For as long as either annuitant lives, with payments guaranteed from 5 to
30 years, or as otherwise specified in the contract.
Life Income--Two Continuing Payments: 100% of the payment to continue to the surviving annuitant after the
Lives--Guaranteed first death.
Payments Death Benefit--Payment to the Beneficiary: If both annuitants die before the guaranteed pay-
ments have all been paid, we will continue to pay the beneficiary the remaining payments.
Unless prohibited by a prior election of the contract holder, the beneficiary may elect to receive
a lump-sum payment equal to the present value of the remaining guaranteed payments.
- -----------------------------------------------------------------------------------------------------------------------------
Life Income--Cash Length of Payments: For as long as the annuitant lives.
Refund Option Death Benefit--Payment to the Beneficiary: Following the annuitant's death, we will pay a lump-
(limited sum payment equal to the amount originally applied to the payment option (less any premium
availability-- tax) and less the total amount of fixed income phase payments paid.
fixed payment
only)
-----------------------------------------------------------------------------------------------------------------------------
Life Income--Two Length of Payments: For as long as either annuitant lives.
Lives--Cash Continuing Payment: 100% of the payment to continue after the first death.
Refund Option Death Benefit--Payment to the Beneficiary: When both annuitants die, we will pay a lump-sum
(limited payment equal to the amount applied to the income phase payment option (less any premium
availability--fixed tax) and less the total amount of fixed income phase payments paid.
payment only)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Table continued ---->
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<PAGE>
Income phase payment options continued
<TABLE>
- -----------------------------------------------------------------------------------------------------------------------------
Nonlifetime Income Phase Payment Options(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Length of Payments: Payments will continue for the number of years you choose, based on what is
available under the contract. Under some contracts, for amounts held in the Fixed Plus Account
during the accumulation phase, the payment must be on a fixed basis and must be for at least 5
Nonlifetime-- years. In certain cases, a lump-sum payment may be requested at any time (see below).
Guaranteed Death Benefit--Payment to the Beneficiary: If the annuitant dies before we make all the
Payments guaranteed payments, we will continue to pay the beneficiary the remaining payments. Unless
prohibited by a prior election of the contract holder, the beneficiary may elect to receive a lump-
sum payment equal to the present value of the remaining guaranteed payments. We will not
impose any early withdrawal charge.
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
Lump-sum Payment: If the Nonlifetime--Guaranteed Payments option is elected with
variable payments, you may request at any time that all or a portion of the
present value of the remaining payments be paid in one lump sum. A lump sum
elected before three or five years of income phase payments have been completed
as specified by the contract will be treated as a withdrawal during the
accumulation phase and we will charge any applicable early withdrawal charge. If
the early withdrawal charge is based on completed purchase payment periods, each
year that passes after income payments begin will be treated as a completed
purchase payment period, even if no additional payments are made. See
"Fees--Early Withdrawal Charge." Lump-sum payments will be sent within seven
calendar days after we receive the request for payment in good order at the Home
Office.
Calculation of Lump-sum Payments: If a lump-sum payment is available to a
beneficiary or to you in the income phase payment options above, the rate we use
to calculate the present value of the remaining guaranteed payments is the same
rate we use to calculate the income phase payments (i.e., the actual fixed rate
used for the fixed payments or the 3-1/2% or 5% assumed net investment rate for
variable payments).
- --------------------------------------------------------------------------------
(1) For contracts issued to the State of Montana and Board of Trustees,
University of Illinois, the nonlifetime option is available only with fixed
income phase payments.
33
<PAGE>
In This Section
I. Introduction
II. Your Retirement Plan
III. Withdrawals and other Distributions
o Taxation of Distributions
o Taxation of Death Benefits
o 10% Penalty Tax
o Withholding for Federal Income Tax Liability
IV. Minimum Distribution Requirements
o 50% Excise Tax
V. Rules Specific to Certain Plans
o 457 Plans
o 403(b) Plans
o 401(a), 401(k) and 403(a) Plans
o 415(m) Arrangements
o Bona Fide Severance Pay Plans
VI. Taxation of the Company
When consulting a tax adviser, be certain that he or she has expertise in the
Tax Code sections applicable to your tax concerns.
Taxation
- --------------------------------------------------------------------------------
I. Introduction
This section discusses our understanding of current federal income tax laws
affecting the contract. You should keep the following in mind when reading it:
> Your tax position (or the tax position of the beneficiary, as applicable)
determines federal taxation of amounts held or paid out under the contract.
> Tax laws change. It is possible that a change in the future could affect
contracts issued in the past.
> This section addresses federal income tax rules and does not discuss federal
estate and gift tax implications, state and local taxes or any other tax
provisions.
> We do not make any guarantee about the tax treatment of the contract or
transactions involving the contract.
- --------------------------------------------------------------------------------
We do not intend this information to be tax advice. For advice about the effect
of federal income taxes or any other taxes on amounts held or paid out under
the contract, consult a tax adviser. For more comprehensive information,
contact the Internal Revenue Service.
- --------------------------------------------------------------------------------
II. Your Retirement Plan
The tax rules applicable to retirement plans vary according to plan type, and
terms and conditions of the plan. To understand what tax rules apply, you need
to know the code section under which your plan qualifies. Contact your plan
sponsor, local representative or the Company to learn which code section
applies to your plan.
Plan Types. The contract is designed for use with retirement plans that qualify
under code sections 401(a), 401(k), 403(a), 403(b) or 457. A code section 457
plan may be either a 457(b) (eligible) plan or a 457 (f) (ineligible) plan. The
contract may also be used with code section 415(m) arrangements. You will not
generally pay taxes on earnings from the annuity contract described in this
prospectus until they are withdrawn (or in the case of a 457 plan, paid or made
available to you or a beneficiary). Tax-qualified retirement arrangements under
Tax Code sections 401(a), 401(k), 403(a), 403(b) or 457 also generally defer
payment of taxes on earnings until they are withdrawn (or in the case of a 457
plan, paid or made available to you or a beneficiary). (See "Taxation of
Distributions" later in this "Taxation" section for a discussion of how
distributions under the various types of plans are taxed.) When an annuity
contract is used to fund one of these tax-qualified retirement arrangements,
you should know that the annuity contract does not provide any additional tax
deferral of earnings beyond the tax deferral provided by the tax-qualified
retirement arrangement. However, annuities do provide other features and
benefits which may be valuable to you. You should discuss your alternatives
with your financial representative.
The Contract and Retirement Plans. Contract holders and contract participants
are responsible for determining that contributions, distributions and other
transactions satisfy applicable laws. Legal counsel and a tax adviser should be
consulted regarding the suitability of the contract.
Because the plan is not part of the contract, we are not bound by any plan's
terms or conditions.
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<PAGE>
III. Withdrawals and Other Distributions
Certain tax rules apply to distributions from the contract. A distribution is
any amount taken from the contract including withdrawals, income phase
payments, rollovers and any death benefit.
We report the taxable portion of all distributions to the IRS.
Taxation of Distributions
457(b) Plans. All amounts received under a 457(b) plan are includible in gross
income when paid or otherwise made available to you or your beneficiary.
457(f) Plans. Compensation deferred under a 457(f) plan is includible in gross
income in the first year when it is no longer subject to a "substantial risk of
forfeiture" as defined by the Tax Code.
401(a), 401(k), 403(a) or 403(b) Plans. All distributions from these plans are
taxed as received unless:
> The distribution is rolled over to another plan of the same type or to a
traditional individual retirement annuity/account (IRA) in accordance with
the Tax Code, or
> You made after-tax contributions to the plan. In this case, depending upon
the type of distribution, a portion may be excluded from gross income
according to rules detailed in the Tax Code.
Taxation of Death Benefits
In general, payments received by your beneficiaries after your death are taxed
in the same manner as if you had received those payments.
10% Penalty Tax
The Tax Code imposes a 10% penalty tax on the taxable portion of any
distribution from a 401(a), 401(k), 403(a) or 403(b) plan, unless certain
exceptions, including one or more of the following have occurred:
(a) You have attained age 59 1/2;
(b) You have become disabled, as defined in the Tax Code;
(c) You have died;
(d) You have separated from service with the plan sponsor at or after age 55;
(e) The distribution amount is rolled over into another plan of the same type
or to an IRA in accordance with the terms of the Tax Code;
(f) The distribution amount is made in substantially equal periodic payments
(at least annually) over your life or life expectancy or the joint lives
or joint life expectancies of you and your beneficiary. Also, you must
have separated from service with the plan sponsor; or
(g) The distribution is made due to an IRS levy upon your account.
In addition, the penalty tax does not apply for the amount of a distribution
equal to unreimbursed medical expenses incurred by you that qualify for
deduction as specified in the Tax Code. The Tax Code may impose other penalty
taxes in other circumstances.
Withholding for Federal Income Tax Liability
Any distributions under the contracts are generally subject to withholding.
Federal income tax liability rates vary according to the type of distribution
and the recipient's tax status.
35
<PAGE>
401(a), 401(k), 403(a) or 403(b) Plans. Generally, under these plans you or a
beneficiary may elect not to have tax withheld from distributions. However,
certain distributions from these plans are subject to a mandatory 20% federal
income tax withholding.
457 Plans. All distributions from a 457 plan, except death benefits, are
subject to mandatory federal income tax withholding as wages. No withholding is
required on payments to beneficiaries.
Non-resident Aliens. If you or a beneficiary is a non-resident alien and you
participate in other than a 457 plan, then any withholding is governed by code
section 1441 based on the individual's citizenship, the country of domicile and
treaty status.
IV. Minimum Distribution Requirements
To avoid certain tax penalties, you and any beneficiary must meet the minimum
distribution requirements imposed by the Tax Code. These requirements do not
apply to 457(f) plans. These rules may dictate one or more of the following:
> Start date for distributions;
> The time period in which all amounts in your account(s) must be distributed;
or
> Distribution amounts.
Start Date. Generally, you must begin receiving distributions by April 1 of the
calendar year following the calendar year in which you attain age 70 1/2 or
retire, whichever occurs later, unless:
> You are a 5% owner, in which case such distributions must begin by April 1st
of the calendar year following the calendar year in which you attain age
70 1/2; or
> Under 403(b) plans, you had amounts under the contract as of December 31,
1986. In this case, distribution of these amounts generally must begin by the
end of the calendar year in which you attain age 75 or retire, if later.
However, if you take any distributions in excess of the minimum required
amount, then special rules require that some or all of the December 31, 1986
balance be distributed earlier.
Time Period. We must pay out distributions from the contract over one of the
following time periods:
> Over your life or the joint lives of you and your beneficiary, or
> Over a period not greater than your life expectancy or the joint life
expectancies of you and your beneficiary.
Amount (457(b) Plans Only). Any distribution from a 457(b) plan, payable over a
period of more than one year, must be made in substantially non-increasing
amounts.
50% Excise Tax. If you fail to receive the minimum required distribution for
any tax year, a 50% excise tax is imposed on the required amount that was not
distributed.
Minimum Distribution of Death Benefits. The following applies to all plans
except 457(f) plans. Different distribution requirements apply if your death
occurs:
> After you begin receiving minimum distributions under the contract, or
> Before you begin receiving such distributions.
36
<PAGE>
If your death occurs after you begin receiving minimum distributions under the
contract, distributions must be made at least as rapidly as under the method in
effect at the time of your death. Code section 401(a)(9) provides specific
rules for calculating the minimum required distributions at your death. The
rules differ, depending upon:
> Whether your minimum required distribution was calculated each year based on
your single life expectancy or the joint life expectancies of you and your
beneficiary, and
> Whether life expectancy was recalculated.
The rules are complex and any beneficiary should consult with a tax adviser
before electing the method of calculation to satisfy the minimum distribution
requirements.
Should you die before you begin receiving minimum distributions under the
contract, your entire balance must be distributed by December 31 of the
calendar year containing the fifth anniversary of the date of your death. For
example, if you die on September 1, 2000, your entire balance must be
distributed to the beneficiary by December 31, 2005. However, if the
distribution begins by December 31 of the calendar year following the calendar
year of your death, then payments may be made in one of the following
time-frames:
> Over the life of the beneficiary; or
> Over a period not extending beyond the life expectancy of the beneficiary.
For 457(b) plans, if the beneficiary is not your spouse, the time-frame may not
exceed fifteen years.
Start Dates for Spousal Beneficiaries. If the beneficiary is your spouse, the
distribution must begin on or before the later of the following:
> December 31 of the calendar year following the calendar year of your death;
or
> December 31 of the calendar year in which you would have attained age 701/2.
V. Rules Specific to Certain Plans
457 Plans
Code section 457 provides for certain deferred compensation plans. These plans
may be offered by state governments, local governments, political subdivisions,
agencies, instrumentalities and certain affiliates of such entities, and
non-governmental tax exempt organizations. The plan may either be a 457(b)
(eligible) plan or a 457(f) (ineligible) plan. Either type of plan may permit
participants to specify the form of investment for their deferred compensation
account.
457(b) Plan. A 457(b) plan is subject to restrictions on contributions and
distributions.
457(f) Plan. A 457(f) plan is not subject to restrictions on contributions or
distributions, but must contain a "substantial risk of forfeiture" as defined
by the Tax Code. Generally, substantial risk of forfeiture means that your
right to receive deferred compensation is dependent upon your performance of
future services to an employer or other entity.
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<PAGE>
The Contract. We make this contract available to plans subject to code section
457 only if a governmental employer sponsors the plan.
Trust Requirement. 457(b) plans maintained by state or local governments, their
political subdivisions, agencies, instrumentalities and certain affiliates are
required to hold all assets and income of the plan in trust for the exclusive
benefit of plan participants and their beneficiaries. For purposes of meeting
this requirement, custodial accounts and annuity contracts are treated as
trusts.
Contributions Excluded from Gross Income. If your employer's plan is a 457(b)
plan, the Tax Code imposes a maximum limit on annual contributions to your
account(s) that may be excluded from your gross income. For Section 457(b) plan
participants, such limit is generally the lesser of $8,000, as adjusted to
reflect changes in the cost of living, or 33% of your includible compensation
(25% of gross compensation).
Restrictions on Distributions. Under a 457(b) plan, amounts may not be made
available to you earlier than (1) the calendar year you attain age 70 1/2; (2)
when you separate from service with the employer; or (3) when you are faced
with an unforeseeable emergency. A 457(b) plan may permit a one-time in-service
distribution if the total amount payable to the participant does not exceed
$5,000 and no amounts have been deferred by the participant during the 2-year
period ending on the date of distribution.
403(b) Plans
In addition to being offered as an investment option under the contract, shares
of certain of the Funds (DEM[Reg TM] Equity Fund and Janus Twenty Fund) are also
offered for sale directly to the general public. In order to qualify for
favorable tax treatment under Section 403(b), a contract must be considered an
"annuity". In Revenue Procedure 99-44, the Internal Revenue Service concluded
that it will treat a contract as an "annuity" for tax purposes under Section
403(b), notwithstanding that contract premiums are invested at the contract
holder's direction in publicly available securities. This treatment will be
available provided no additional federal tax liability would have been incurred
if the contribution were paid into a trust or a custodial account in an
arrangement that satisfied the requirements of Section 401(a) or 403(b)(7)(A).
We believe that the contract satisfies the requirements set forth in Revenue
Procedure 99-44 and will therefore be treated as an annuity for tax purposes,
notwithstanding the fact that investments may be made in publicly available
securities. However, the exact nature of the requirements of Revenue Procedures
99-44 is unclear, and you should consider consulting with a tax adviser before
electing to invest in one of the Funds that are offered for sale to the general
public.
Under code section 403(b), contributions made by public school systems or
nonprofit healthcare organizations and other section 501(c)(3) tax exempt
organizations to purchase annuity contracts for their employees are generally
excludable from the gross income of the employee. Adverse tax consequences to
the plan and/or to you may result if your beneficial interest in the contract
is assigned or transferred to any person except to an alternate payee under a
qualified domestic relations order in accordance with code section 414(p) or to
the Company as collateral for a loan.
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<PAGE>
Exclusions from Gross Income. In order to be excludable from gross income,
total annual contributions made by you and your employer cannot exceed the
lesser of the following limits set by the Tax Code.
> The first limit, under code section 415, is generally the lesser of 25% of
your compensation or $30,000. Compensation means your compensation from the
employer sponsoring the plan and, for years beginning after December 31,
1997, includes any elective deferrals under code section 402(g) and any
amounts not includible in gross income under code sections 125 or 457.
> The second limit, which is the exclusion allowance under code section 403(b),
is usually calculated according to a formula that takes into account your
length of employment, any pretax contributions you and your employer have
already made under the plan, and any pretax contributions to certain other
retirement plans.
These two limits apply to your contributions as well as to any contributions
made by your employer on your behalf.
> An additional limit specifically limits your salary reduction contributions
to generally no more than $10,500 annually (subject to indexing). Your own
limit may be higher or lower, depending upon certain conditions.
Payments to your account(s) will be excluded from your gross income only if the
plan meets certain nondiscrimination requirements.
Restrictions on Distributions. Code section 403(b)(11) restricts the
distribution under Section 403(b) contracts of:
> Salary reduction contributions made after December 31, 1988;
> Earnings on those contributions; and
> Earnings during such period on amounts held as of December 31, 1988.
Distribution of those amounts may only occur upon your death, attainment of age
59 1/2, separation from service, disability, or financial hardship. Income
attributable to salary reduction contributions and credited on or after January
1, 1989 may not be distributed in the case of hardship.
Transfers from 403(b)(7) Custodial Accounts. If, pursuant to Revenue Ruling
90-24, the Company agrees to accept, under any of the contracts, amounts
transferred from a code section 403(b)(7) custodial account, such amounts will
be subject to the withdrawal restrictions set forth in code section
403(b)(7)(A)(ii).
Taxation of Gains Prior to Distribution. Generally no amounts accumulated under
the contract will be taxable prior to the time of actual distribution.
However, the IRS has stated in published rulings that a variable contract
owner, including participants under code section 403(b) plans, will be
considered the owner of separate account assets if the contract owner possesses
incidents of investment control over the assets. In these circumstances, income
and gains from the separate account assets would be currently includible in the
variable contract owner's gross income.
The Treasury announced that it will issue guidance regarding the extent to
which owners could direct their investments among subaccounts without being
treated as owners of the underlying assets of the separate account. It is
possible that the Treasury's position, when announced, may adversely affect the
tax treatment of existing contracts. The Company therefore reserves the right
to modify the contract as necessary to attempt to prevent the owner from being
39
<PAGE>
considered the federal tax owner of a pro rata share of the assets of the
separate account.
401(a), 401(k) and 403(a) Plans
Code sections 401(a), 401(k) and 403(a) permit certain employers to establish
various types of retirement plans for employees, and permit self-employed
individuals to establish various types of retirement plans for themselves and
for their employees. These retirement plans may permit the purchase of the
contracts to accumulate retirement savings under the plans.
Assignment or Transfer of Contracts. Adverse tax consequences to the plan
and/or to you may result if your beneficial interest in the contract is
assigned or transferred to persons other than: a plan participant as a means to
provide benefit payments; an alternate payee under a qualified domestic
relations order in accordance with code section 414(p); or to the Company as
collateral for a loan.
Exclusion From Gross Income. The Tax Code imposes a maximum limit on annual
payments to your account(s) that may be excluded from gross income. The
employer must calculate this limit under the plan in accordance with code
section 415. This limit is generally the lesser of 25% of your compensation or
$30,000. Compensation means your compensation from the employer sponsoring the
plan and, for years beginning after December 31, 1997, includes any elective
deferrals under code section 402(g) and any amounts not includible in gross
income under code sections 125 or 457. The limit applies to your contributions
as well as any contributions made by your employer on your behalf. There is an
additional limit that specifically limits your salary reduction contributions
under a 401(k) plan to generally no more than $10,500 annually (subject to
indexing). Your own limits may be higher or lower, depending upon certain
conditions. In addition, payments to your account(s) will be excluded from your
gross income only if the plan meets certain nondiscrimination requirements.
Restrictions on Distributions. Code section 401(k) restricts distribution from
your 401(k) employee account, and possibly all or a portion of your 401(k)
employer account if such amounts are included in determining compliance with
certain nondiscrimination requirements under the Tax Code.
Subject to the terms of the 401(k) plan, distribution of these restricted
amounts may only occur upon: retirement, death, attainment of age 59 1/2,
disability, separation from service, financial hardship, termination of the
plan in certain circumstances, or, generally, if your employer is a corporation
and disposes of substantially all of its assets or disposes of a subsidiary. In
addition, income attributable to salary reduction contributions and credited on
or after January 1, 1989, may not be distributed in the case of hardship.
415(m) Arrangements
If you participate in the contract through a qualified governmental excess
benefit arrangement, defined in code section 415(m), the amounts provided under
the contract may be subject to the same requirements as those applied to code
section 457(b) plans described above, except that the limits described in
"Contributions Excluded from Taxable Income" do not apply. If the code section
415(m) arrangement is not designed to meet the requirements of code section
457(b), then the amounts provided under the contract are taxed in accordance
with code section 451 and are generally taxable when paid or made available to
you.
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<PAGE>
Bona Fide Severance Pay Plans
If you participate in the contract through certain bona fide severance pay
plans, described in code section 457(e)(11), amounts provided under the
contract are not generally taxable until paid or made available to you.
However, because these plans are not clearly defined in the Code, it may be
determined that your plan does not qualify as a bona fide severance pay plan.
If the plan does not qualify, then amounts provided under the contract are
taxable in the year in which they are deferred. Because of this lack of
clarity, it is imperative that you consult your tax adviser for guidance
regarding taxation.
VI. Taxation of the Company
We are taxed as a life insurance company under the Tax Code. Variable Annuity
Account C is not a separate entity from us. Therefore, it is not taxed
separately as a "regulated investment company," but is taxed as part of the
Company.
We automatically apply investment income and capital gains attributable to the
separate account to increase reserves under the contracts. Because of this,
under existing federal tax law we believe that any such income and gains will
not be taxed to the extent that such income and gains are applied to increase
reserves under the contracts. In addition, any foreign tax credits attributable
to the separate account will be first used to reduce any income taxes imposed
on the separate account before being used by the Company.
In summary, we do not expect that we will incur any federal income tax
liability attributable to the separate account and we do not intend to make any
provision for such taxes. However, changes in federal tax laws and/or their
interpretation may result in our being taxed on income or gains attributable to
the separate account. In this case, we may impose a charge against the separate
account (with respect to some or all of the contracts) to set aside provisions
to pay such taxes. We may deduct this amount from the separate account,
including from your account value invested in the subaccounts.
Other Topics
- --------------------------------------------------------------------------------
The Company
Aetna Life Insurance and Annuity Company (the Company, we, us, our) issues the
contracts described in this prospectus and is responsible for providing each
contract's insurance and annuity benefits.
We are a stock life insurance company organized under the insurance laws of the
State of Connecticut in 1976 and an indirect wholly owned subsidiary of Aetna
Inc. Through a merger, our operations include the business of Aetna Variable
Annuity Insurance Company (formerly known as Participating Annuity Life
Insurance Company, an Arkansas life insurance company organized in 1954).
We are engaged in the business of issuing life insurance and annuities.
Our principal executive offices are located at:
151 Farmington Avenue
Hartford, Connecticut 06156
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Variable Annuity Account C
We established Variable Annuity Account C (the "separate account") in 1976 as a
segregated asset account to fund our variable annuity contracts. The separate
account is registered as a unit investment trust under the Investment Company
Act of 1940 (the "40 Act"). It also meets the definition of "separate account"
under the federal securities laws.
The separate account is divided into "subaccounts." These subaccounts invest
directly in shares of a corresponding fund.
Although we hold title to the assets of the separate account, such assets are
not chargeable with the liabilities of any other business that we conduct.
Income, gains or losses of the separate account are credited to or charged
against the assets of the separate account without regard to other income,
gains or losses of the Company. All obligations arising under the contracts are
obligations of the Company.
Performance Reporting
We may advertise different types of historical performance for the subaccounts
including:
> Standardized average annual total returns; and
> Non-standardized average annual total returns.
We may also advertise certain ratings, rankings or other information related to
the Company, the subaccounts or the funds. For further details regarding
performance reporting and advertising, request a Statement of Additional
Information at the number listed in "Contract Overview--Questions."
Standardized Average Annual Total Returns. We calculate standardized average
annual total returns according to a formula prescribed by the SEC. This shows
the percentage return applicable to $1,000 invested in the subaccount over the
most recent one, five and 10-year periods. If the investment option was not
available for the full period, we give a history from the date money was first
received in that option under the separate account.
We include all recurring charges during each period (e.g., mortality and
expense risk charges, annual maintenance fees, administrative expense charges
(if any) and any applicable early withdrawal charges).
Non-Standardized Average Annual Total Returns. We calculate non-standardized
average annual total returns in a similar manner as that stated above, except
we do not include the deduction of any applicable early withdrawal charge. Some
non-standardized returns may also exclude the effect of a maintenance fee. If
we reflected these charges in the calculation, they would decrease the level of
performance reflected by the calculation. Non-standardized returns may also
include performance from the fund's inception date, if that date is earlier
than the one we use for standardized returns.
Voting Rights
Each of the subaccounts holds shares in a fund and each is entitled to vote at
regular and special meetings of that fund. Under our current view of applicable
law, we will vote the shares for each subaccount as instructed by persons
having a voting interest in the subaccount. Generally, under contracts issued
in connection with section 403(b), 401 or 403(a) plans, you have a fully vested
interest in the value of your employee account, and in your employer account to
the extent of
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your vested percentage in the plan. Therefore, under such plans you generally
have the right to instruct the contract holder how to direct us to vote shares
attributable to your account. Under contracts issued in connection with section
457 plans, the contract holder retains all voting rights. We will vote shares
for which instructions have not been received in the same proportion as those
for which we received instructions. Each person who has a voting interest in
the separate account will receive periodic reports relating to the funds in
which he or she has an interest, as well as any proxy materials and a form on
which to give voting instructions. Voting instructions will be solicited by a
written communication at least 14 days before the meeting.
The number of votes, whole and fractional, any person is entitled to direct
will be determined as of the record date set by any fund in which that person
invests through the subaccounts.
> During the accumulation phase, the number of votes is equal to the portion of
your account value invested in the fund, divided by the net asset value of
one share of that fund.
> During the income phase, the number of votes is equal to the portion of
reserves set aside for the contract's share of the fund, divided by the net
asset value of one share of that fund.
Contract Distribution
The Company will serve as the principal underwriter for the securities sold
under this prospectus. The Company is registered as a broker-dealer with the
SEC and is a member of the National Association of Securities Dealers, Inc.
As principal underwriter, the Company will enter into arrangements with one or
more registered broker-dealers, including at least one affiliate of the
Company, to offer and sell the contracts described in this prospectus. We call
these entities "distributors."
We and one or more of our affiliates may also sell the contracts directly. All
individuals offering and selling the contracts must be registered
representatives of a broker-dealer and must be licensed as insurance agents to
sell variable annuity contracts
Commission Payments. We may pay commissions to persons who offer and sell the
contracts. The maximum percentage amount we ever pay with respect to a given
purchase payment is the first-year percentage which ranges from 1% to a maximum
of 7% of the first year of payments to an account. We may also pay renewal
commissions on payments made after the first year and, under group contracts,
asset-based service fees. The average of all commissions and asset-based
service fees paid is estimated to equal approximately 3% of the total payments
made over the life of an average contract. Some sales personnel may receive
various types of non-cash compensation as special sales incentives, including
trips and educational and/or business seminars. However, any such compensation
will be paid in accordance with NASD rules. In addition, we may provide
additional compensation to the Company's supervisory and other management
personnel if the overall amount of investments in funds advised by the Company
or its affiliates increases over time.
We may reimburse the distributor for certain expenses. The names of the
distributor and the registered representative responsible for your account are
stated in your enrollment materials. Commissions and sales related expenses are
paid by us and are not deducted from payments to your account.
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Third Party Compensation Arrangements. Occasionally, we may:
> Pay commissions and fees to distributors affiliated or associated with the
contract holder, you and/or other contract participants; and/or
> Enter into agreements with entities associated with the contract holder, you
and/or other participants. Through such agreements, we may pay the entities
for certain services in connection with administering the contract.
In both these circumstances there may be an understanding that the distributor
or entities would endorse us as a provider of the contract. You will be
notified if you are purchasing a contract that is subject to these
arrangements.
Contract Modification
We may change the contract as required by federal or state law. In addition, we
may, upon 30 days' written notice to the contract holder, make other changes to
group contracts that would apply only to individuals who become participants
under that contract after the effective date of such changes. If the group
contract holder does not agree to a change, we reserve the right to refuse to
establish new accounts under the contract, and under some contracts, to
discontinue accepting payments to existing accounts. Certain changes will
require the approval of appropriate state or federal regulatory authorities.
In addition, under some contracts we reserve the right, without contract holder
consent, to change the tables for determining the amount of income phase
payments or the income phase payment options available. Such a change would
only apply to income phase payments attributable to contributions accepted
after the date of change.
Legal Matters and Proceedings
We are aware of no material legal proceedings pending which involve the
separate account or the Company as a party or which would materially affect the
separate account. The validity of the securities offered by this prospectus has
been passed upon by Counsel to the Company.
Payment Delay or Suspension
We reserve the right to suspend or postpone the date of any payment of benefits
or values under the following circumstances:
(a) On any valuation date when the New York Stock Exchange is closed (except
customary weekend and holiday closings), or when trading on the Exchange
is restricted;
(b) When an emergency exists as determined by the SEC so that disposal of
securities held in the subaccounts is not reasonably practicable or it is
not reasonably practicable for us fairly to determine the value of the
subaccount's assets; or
(c) During any other periods the SEC may by order permit for the protection of
investors.
The conditions under which restricted trading or an emergency exists shall be
determined by the rules and regulations of the SEC.
Transfer of Ownership; Assignment
An assignment of a contract will only be binding on us if it is made in writing
and sent to us at our Home Office. We will use reasonable procedures to
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confirm that the assignment is authentic, including verification of signature.
If we fail to follow our own procedures, we will be liable for any losses to
you directly resulting from the failure. Otherwise, we are not responsible for
the validity of any assignment. The rights of the contract holder and the
interest of the annuitant and any beneficiary will be subject to the rights of
any assignee we have on our records.
Account Termination
Under some contracts, where allowed by state law, we reserve the right to
terminate an individual account if the account value is less than $5,000
($3,500 under some contracts and $1,999 for some contracts issued in New York),
this value is not due to negative investment performance, and if no purchase
payments have been received within the previous twelve months (thirty-six
months under some contracts issued in New York). We will notify you or the
contract holder 90 days prior to terminating the account. If we exercise this
right we will not deduct an early withdrawal charge.
Intent to Confirm Quarterly
Under certain contracts, we will provide confirmation of scheduled transactions
quarterly rather than immediately to the participant.
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[OREGON EDUCATION ASSOCIATION CHOICE PERSONAL BENEFIT TRUST ("OEA TRUST")
AND THE COMPANY'S AGREEMENT
Under past and current agreements, the OEA Trust exclusively endorses our tax
deferred variable annuity and other related investment products for sale to its
members. Under the current agreement, the OEA Trust agrees to:
> Facilitate Oregon Education Association ("OEA") members' access to the
variable annuity and other related investment products; and
> Assist us by providing services such as office space and secretarial/clerical
support.
The OEA Trust will provide an employee who:
> Is a registered representative of one of our affiliates;
> Advertises the Company in OEA's newsletter;
> Facilitates and coordinates meetings and workshops where registered
representatives of the Company's affiliate present the annuity to OEA
members; and
> Acts as a liaison between the Company and OEA members.
In return, the Company agrees to:
> Compensate OEA Trust to help it defray the costs incurred in providing the
administrative and other support; and
> Reimburse OEA Trust for out-of-pocket travel and meeting expenses of an OEA
Trust employee who is also a registered representative of the Company's
affiliate.
During 1999, the Company paid OEA Trust $300,000 as reimbursement for the costs
and services described above. Effective January 1, 2000, the Company will pay
the OEA Trust $27,500 each month as reimbursement for the costs and services
described above.]
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Contents of the Statement of Additional Information
- --------------------------------------------------------------------------------
The Statement of Additional Information (SAI) contains more specific
information on the Separate Account and the contract, as well as the financial
statements of the Separate Account and the Company. A list of the contents of
the SAI is set forth below:
General Information and History
Variable Annuity Account C
Offering and Purchase of Contracts
Performance Data
General
Average Annual Total Return Quotations
Income Phase Payments
Sales Material and Advertising
Independent Auditors
Financial Statements of the Separate Account
Financial Statements of the Company
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Appendix I
Guaranteed Accumulation Account
- --------------------------------------------------------------------------------
The Guaranteed Accumulation Account (GAA) is a fixed interest option that may
be available during the accumulation phase. This appendix is only a summary of
certain facts about the GAA. Please read the GAA prospectus before investing in
this option.
In General. Amounts that you invest in GAA will earn a guaranteed interest rate
if amounts are left in GAA for the specified period of time. If you withdraw or
transfer those amounts before the specified period of time has elapsed, we may
apply a "market value adjustment," which may be positive or negative.
When you decide to invest money in GAA, you will want to contact your
representative or the Company to learn:
> The interest rate we will apply to the amounts that you invest in GAA. We
change this rate periodically, so be certain that you know what rate we
guarantee on the day your account dollars are invested into GAA.
> The period of time your account dollars need to remain in GAA in order to
earn that rate. You are required to leave your account dollars in GAA for a
specified period of time (guaranteed term), in order to earn the guaranteed
interest rate.
Deposit Periods. A deposit period is the time during which we offer a specific
interest rate if you deposit dollars for a certain guaranteed term. For a
particular interest rate and guaranteed term to apply to your account dollars,
you must invest them during the deposit period during which that rate and term
are offered.
Interest Rates. We guarantee different interest rates, depending upon when
account dollars are invested in GAA. The interest rate we guarantee is an
annual effective yield; that means that the rate reflects a full year's
interest. We credit interest daily at a rate that will provide the guaranteed
annual effective yield over one year. The guaranteed interest rate will never
be less than the rate stated in the contract.
Fees and Other Deductions.
> If all or a portion of your account value in GAA is withdrawn, you may incur
the following: Market Value Adjustment (MVA)--as described in this appendix
and in the GAA prospectus
Tax Penalties and/or Tax withholding--See "Taxation"
Early Withdrawal Charge--See "Fees"
Maintenance Fee--"See Fees"
> We do not make deductions from amounts in the GAA to cover mortality and
expense risks. Rather, we consider these risks when determining the credited
rate.
Market Value Adjustment (MVA). If you withdraw or transfer your account value
from GAA before the guaranteed term is completed, an MVA may apply. The MVA
reflects the change in the value of the investment due to changes in interest
rates since the date of deposit. The MVA may be positive or negative.
> If interest rates at the time of withdrawal have increased since the date of
deposit, the value of the investment decreases and the MVA will be negative.
This could result in your receiving less than the amount you paid into GAA.
> If interest rates at the time of withdrawal have decreased since the date of
deposit, the value of the investment increases and the MVA will be positive.
Under some contracts issued in New York, if you have elected ECO as described
in "Systematic Distribution Options," no MVA applies to amounts withdrawn from
GAA.
Guaranteed Terms. The guaranteed term is the period of time account dollars
must be left in GAA in order to earn the interest rate specified for that
guaranteed term. We offer different guaranteed terms at different times. Check
with your representative or the Company to learn the details about the
guaranteed term(s) currently being offered.
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In general we offer the following guaranteed terms:
>s hort-term--three years or less; and
> long-term--ten years or less, but greater than three years.
At the end of a guaranteed term, your contract holder or you if permitted may:
> transfer dollars to a new guaranteed term;
> transfer dollars to other available investment options; or
> withdraw dollars.
Deductions may apply to withdrawals. See "Fees and Other Deductions" in this
section.
Transfer of Account Dollars. Generally, account dollars invested in GAA may be
transferred among guaranteed terms offered through GAA, and/or to other
investment options offered through the contract. However, transfers may not be
made during the deposit period in which your account dollars are invested in
GAA or for 90 days after the close of that deposit period. We will apply an MVA
to transfers made before the end of a guaranteed term.
Income Phase. GAA cannot be used as an investment option during the income
phase. The contract holder or you, if permitted, may notify us at least 30 days
in advance to elect a variable payment option and to transfer your GAA account
dollars to any of the subaccounts available during the income phase.
Loans. You cannot take a loan from your account value in GAA. However, we
include your account value in GAA when determining the amount of your account
value we may distribute as a loan.
Reinvesting Amounts Withdrawn from GAA. If amounts are withdrawn from GAA and
then reinvested in GAA, we will apply the reinvested amount to the current
deposit period. The guaranteed annual interest rate, and guaranteed terms
available on the date of reinvestment will apply. Amounts will be reinvested
proportionately in the same way as they were allocated before withdrawal.
Your account value will not be credited for any negative MVA that was deducted
at the time of withdrawal.
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Appendix II
Fixed Account
- --------------------------------------------------------------------------------
The Fixed Account is an investment option available during the accumulation
phase under some contracts. Under some contracts, this option is available to
installment purchase plans only. This option is not available in the state of
New York under some contracts.
- --------------------------------------------------------------------------------
Additional information about this option may be found in the contract.
- --------------------------------------------------------------------------------
Amounts allocated to the Fixed Account are held in the Company's general
account which supports insurance and annuity obligations.
General Disclosure. Interests in the Fixed Account have not been registered
with the SEC in reliance upon exemptions under the Securities Act of 1933, as
amended. Disclosure in this prospectus regarding the Fixed Account may be
subject to certain generally applicable provisions of the federal securities
laws relating to the accuracy and completeness of the statements. Disclosure in
this Appendix regarding the Fixed Account has not been reviewed by the SEC.
Interest Rates. The Fixed Account guarantees that amounts allocated to this
option will earn the minimum interest rate specified in the contract. We may
credit a higher interest rate from time to time, but the rate we credit will
never fall below the guaranteed minimum specified in the contract. Interest
rate guarantees are based on the claims-paying ability of the Company. Amounts
applied to the Fixed Account will earn the interest rate in effect at the time
money is applied. Amounts in the Fixed Account will reflect a compound interest
rate as credited by us. The rate we quote is an annual effective yield.
Our determination of credited interest rates reflects a number of factors,
including mortality and expense risks, interest rate guarantees, the investment
income earned on invested assets and the amortization of any capital gains
and/or losses realized on the sale of invested assets. Under this option, we
assume the risk of investment gain or loss by guaranteeing the amounts you
allocate to this option and promising a minimum interest rate and income phase
payment.
Withdrawals. Under certain emergency conditions, some contracts allow us to
defer payment of any withdrawal for a period of up to 6 months or as provided
by federal law. Additionally, if allowed by state law, some contracts provide
that we may pay withdrawals in equal payments with interest, over a period not
to exceed 60 months when:
(a) The Fixed Account withdrawal value exceeds $250,000 on the day before
withdrawal; and
(b) The sum of the current Fixed Account withdrawal and total of all Fixed
Account withdrawals within the past 12 calendar months exceeds 20% of the
amount in the Fixed Account on the day before the current withdrawal.
The contract describes how we will determine the interest rate credited to
amounts held in the Fixed Account during the payment period, including the
minimum interest rate.
Charges. We do not make deductions from amounts in the Fixed Account to cover
mortality and expense risks. We consider these risks when determining the
credited rate.
If you make a withdrawal from amounts in the Fixed Account, an early withdrawal
charge may apply. See "Fees--Early Withdrawal Charge."
Transfers. During the accumulation phase, you may transfer account dollars from
the Fixed Account to any other available investment option. We may vary the
dollar amount that you are allowed to transfer, but it will never be less than
10% of your account value held in the Fixed Account each calendar year or each
12-month period, depending upon the contract. We determine the amount available
for transfer based on your Fixed Account value either (1) on the January 1st
preceding the transfer request or (2) as of the date we receive the transfer
request in good order at our Home Office. The 10% limit does not apply to
amounts being transferred into the Fixed Plus Account (if available under the
contract).
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By notifying the Home Office at least 30 days before income payments begin you,
or the contract holder on your behalf, may elect to have amounts transferred to
one or more of the funds available during the income phase to provide variable
payments.
Contract Loans. If available under your plan, contract loans may be made from
account values held in the Fixed Account.
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Appendix III
Fixed Plus Account
- --------------------------------------------------------------------------------
The Fixed Plus Account is an investment option available during the
accumulation phase under some contracts.
Amounts allocated to the Fixed Plus Account are held in the Company's general
account which supports insurance and annuity obligations.
- --------------------------------------------------------------------------------
Additional information about this option may be found in the contract.
- --------------------------------------------------------------------------------
General Disclosure. Interests in the Fixed Plus Account have not been
registered with the SEC in reliance upon exemptions under the Securities Act of
1933, as amended. Disclosure in this prospectus regarding the Fixed Plus
Account may be subject to certain generally applicable provisions of the
federal securities laws relating to the accuracy and completeness of the
statements. Disclosure in this Appendix regarding the Fixed Plus Account has
not been reviewed by the SEC.
Certain Restrictions. This option is not available in the state of New York
under some contracts. We reserve the right to limit investments in or transfers
to the Fixed Plus Account. Under most contracts, you may not elect certain
withdrawal options including, under most contracts, the systematic distribution
option, if you have requested a Fixed Plus Account transfer or withdrawal in
the prior 12-month period. For some contracts, under certain emergency
conditions, we may defer payment of a withdrawal from the Fixed Plus Account
for a period of up to six months or as provided by federal law.
Interest Rates. The Fixed Plus Account guarantees that amounts allocated to
this option will earn the minimum interest rate specified in the contract. We
may credit a higher interest rate from time to time, but the rate we credit
will never fall below the guaranteed minimum specified in the contract.
Interest rate guarantees are based on the claims-paying ability of the Company.
Under some contracts, we credit amounts held in the Fixed Plus Account with a
rate 0.25% higher than the then-declared rate beginning in the tenth year after
your account was established. Amounts applied to the Fixed Plus Account will
earn the interest rate in effect at the time money is applied. Amounts in the
Fixed Plus Account will reflect a compound interest rate as credited by us. The
rate we quote is an annual effective yield.
Our determination of credited interest rates reflects a number of factors,
including mortality and expense risks, interest rate guarantees, the investment
income earned on invested assets and the amortization of any capital gains
and/or losses realized on the sale of invested assets. Under this option, we
assume the risk of investment gain or loss by guaranteeing the amounts you
allocate to this option and promising a minimum interest rate and income phase
payment.
Requests for Partial Withdrawals. The contract holder or you, if permitted by
the plan, may take up to 20% of the Fixed Plus Account value as a partial
withdrawal in each twelve (12) month period, or under some contracts, in each
calendar year. We determine the amount eligible for partial withdrawal as of
the date we receive a request for partial withdrawal in good order at our Home
Office or as of the January 1st preceding the partial withdrawal request,
depending upon the terms of the contract. The amount allowed for partial
withdrawal is reduced by any Fixed Plus Account withdrawals, transfers, loans
or amounts applied to income phase payment options made in the prior 12 months
(or, under some contracts, the prior calendar year). Under most contracts, in
calculating the 20% limit, we reserve the right to include payments made due to
the election of a systematic distribution option.
Waiver of Partial Withdrawal Limits. We generally waive the 20% limit if the
partial withdrawal is due to the election of an income phase payment option
(under some contracts, the waiver does not apply to the election of a
nonlifetime payment option with variable payments). We also waive the 20% limit
for withdrawals due to your death. Under most contracts, the waiver upon death
may only be exercised once, must occur within six months after your date of
death and must be made proportionally from all subaccounts and fixed interest
options in which the account was invested.
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Also, under some contracts the 20% limit is waived if the withdrawal is due to
financial hardship or hardship resulting from an unforeseeable emergency, as
defined by the Tax Code and regulations thereunder (under some contracts it
must be for an unforeseeable emergency), and the following requirements are
satisfied:
> The hardship is certified (required under most contracts);
> The partial withdrawal is taken proportionally from each investment option in
which your account invests;
> The amount is paid directly to you; and
> The amount paid for all withdrawals due to hardship during the previous
12-month period does not exceed 10% (20% under some contracts) of the average
value of your account(s) and all other accounts under the relevant contracts
during that same period.
Under some contracts, the percentage limit is also waived if the partial
withdrawal is due to separation from service and the following conditions are
met:
> The employer certifies you have separated from service;
> The amount withdrawn is paid directly to you; and
> The amount paid for all partial and full withdrawals due to separation from
service during the previous 12-month period does not exceed 20% of the
average value of your account(s) and all other accounts under the relevant
contracts providing this waiver during that same period.
Additionally, we may allow other waivers of the percentage limit on partial
withdrawals to participants in certain plans. You can determine what additional
waivers, if any, apply to you by referring to the contract or certificate.
Requests for Full Withdrawals. If the contract holder or you, if allowed by the
plan, request a full withdrawal of your Fixed Plus Account value, we will pay
any amounts held in the Fixed Plus Account, with interest, in five annual
payments that will be equal to:
> One-fifth of the Fixed Plus Account value on the day the request is received,
reduced by any Fixed Plus Account withdrawals, transfers, amounts used to
fund income phase payments, or loans made during the prior 12 months (or,
under some contracts, during the prior calendar year);
> One-fourth of the remaining Fixed Plus Account value 12 months later;
> One-third of the remaining Fixed Plus Account value 12 months later;
> One-half of the remaining Fixed Plus Account value 12 months later; and
> The balance of the Fixed Plus Account value 12 months later.
Under some contracts, there is a different method of calculating the amount
available each year. The full withdrawal will be paid in installments of 20% of
your account value held in the Fixed Plus Account, reduced by any Fixed Plus
Account withdrawals, transfers, amounts used to fund income phase payments, or
loans made during the prior 12 months in each of four consecutive 12-month
periods. Under this provision, the remaining Fixed Plus Account balance in the
account may be withdrawn any time after the end of the fourth 12-month period.
Once we receive a request for a full withdrawal, no further withdrawals, loans
or transfers will be permitted from the Fixed Plus Account. A full withdrawal
from the Fixed Plus Account may be canceled at any time before the end of the
five-payment period.
Waiver of Full Withdrawal Provisions. We will waive the Fixed Plus Account
five-installment payout for full withdrawals made due to one or more of the
following:
(a) Due to the election of an income phase payment option (under some contracts
this waiver does not apply to the election of a nonlifetime payment option
with variable payments);
(b) Due to your death during the accumulation phase. Some contracts require
that we be notified of your death, or that the withdrawal be taken, within
six months of the death); and/or
(c) When the Fixed Plus Account value is $5,000 or less (lower amounts may
apply under some contracts). Most contracts also require that no
withdrawals, transfers, loans or elections of income phase payment options
have been made from the account within the prior 12 months (or, under some
contracts, within the prior calendar year).
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Additionally, under certain contracts, we will waive the five-payment full
withdrawal provision due to one or more of the following:
1. Due to financial hardship or hardship resulting from an unforeseeable
emergency, as defined by the Tax Code and regulations thereunder if all of
the following conditions are met:
> The hardship is certified by the employer;
> The amount is paid directly to you; and
> The amount paid for all withdrawals due to hardship during the previous
12-month period does not exceed 10% (20% under some contracts) of the average
value of your account(s) and all other accounts under the relevant contract
during that same period.
2. For any in-service distributions permitted by the plan and the following
conditions are met:
> The distribution has been certified by the employer;
> The amount distributed is paid directly to you; and
> The amount paid for all such withdrawals during the previous 12-months does
not exceed a given percentage (stated in the contract) of the average value
of all your accounts and all other accounts under the relevant contract
during the same period.
3. Due to your separation from service with the employer, provided that all the
following apply*:
> The employer certifies that you have separated from service;
> The amount withdrawn is paid directly to you (under some contracts it must be
paid directly to you only if you withdraw the amounts more than one year
after separation); and
> Under most contracts, if the amount paid for all partial and full withdrawals
due to separation from service during the previous 12-month period does not
exceed 20% of the average value of all your account(s) and all other accounts
under the relevant contract during that same period.
4. If you are at least age 59 1/2 and have completed nine payment periods.
5. If we terminate your account based on our right to do so for accounts below
a certain value (usually $5,000 or less; lower amounts may apply under some
contracts).
6. Additionally, we may allow other waivers of the five installment payout for
full withdrawals to participants in certain plans. You can determine what
additional waivers, if any, apply to you by referring to the contract or
certificate.
Charges. We do not make deductions from amounts in the Fixed Plus Account to
cover mortality and expense risks. We consider these risks when determining the
credited rate.
Transfers. The contract holder or you, if allowed by the plan, may transfer 20%
of your account value held in the Fixed Plus Account in each 12-month period or
during each calendar year, depending upon the terms of the contract. We
determine the amount eligible for transfer on the day we receive a transfer
request in good order at our Home Office, or under some contracts, as of the
January 1st preceding the transfer request. We will reduce amounts allowed for
transfer by any Fixed Plus Account withdrawals, transfers, loans or amounts
applied to income phase payment options during the prior 12 months (or, under
some contracts, during the prior calendar year). Under most contracts, in
calculating the percentage limit on transfers, we reserve the right to include
payments made due to the election of any of the systematic distribution
options. We will waive the percentage limit on transfers when the value in the
Fixed Plus Account is $1,000 or less ($2,000 or less under some contracts).
Under some contracts, if you transfer 20% of your account value held in the
Fixed Plus Account in each of four consecutive 12-month periods, you may
transfer the remaining balance in the succeeding 12-month period provided you
do not allocate any amount to or transfer any other amount from the Fixed Plus
Account during
- -----------------
* Instead of the provisions under number 3 above, some contracts waive the
five-payment full withdrawal provision for separation from service if all of
the following apply:
> The hardship is certified by the employer;
> We receive the withdrawal request within 60 days of the date of separation;
and
> You pay a 3% charge based on the entire Fixed Plus Account value.
If you instead choose to have your payout in five annual installments as
described above, then we will not assess the charge.
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the five-year period. The 20% amount available to transfer under this provision
will be reduced by any amount transferred, taken as a loan or applied to income
phase payment options within the 12-month period preceding the first 20%
transfer. Also, we may reduce it for payments we made from your Fixed Plus
Account value under any systematic distribution option.
Income Phase. Amounts accumulating under the Fixed Plus Account can be
transferred to subaccounts to fund variable payments during the income phase.
Availability of subaccounts may vary during the income phase. Some contracts do
not permit Fixed Plus Account values to fund nonlifetime income options with
variable payments.
Contract Loans. If permitted under the plan, loans may be made from account
values held in the Fixed Plus Account. See the loan agreement for a description
of the amount available and possible consequences upon loan default if Fixed
Plus Account values are used for a loan.
Transfer Credits. The Company provides a transfer credit in certain
circumstances. See "Purchase--Transfer Credits." The transfer credit is a
specified percentage of the assets transferred to the Company under a contract
that remain in the accounts for the period of time specified by the Company,
plus the interest that would have been credited had that amount been deposited
in the Fixed Plus Account on the first business day of the calendar month
following its calculation. We apply the transfer credit to the current value
held in the Fixed Plus Account.
55
<PAGE>
Appendix IV
Employee Appointment of Employer as Agent
Under an Annuity Contract
- --------------------------------------------------------------------------------
For Plans under Section 403(b), 401 or 403(a) of the Code (except voluntary
Section 403(b) Plans)
================================================================================
My employer has adopted a plan under Internal Revenue Code Sections 403(b),
401(a)/401(k) or 403(a) ("Plan") and has purchased an Aetna Life Insurance and
Annuity Company ("Company") group variable annuity contract ("Contract") as the
funding vehicle. Contributions under this Plan will be made by me through
salary reduction to an Employee Account, and by my employer to an Employer
Account.
By electing to participate in my employer's Plan, I voluntarily appoint my
employer, who is the Contract Holder, as my agent for the purposes of all
transactions under the Contract in accordance with the terms of the Plan. The
Company is not a party to the Plan and does not interpret the Plan provisions.
As a Participant in the Plan, I understand and agree to the following terms and
conditions:
> I own the value of my Employee Account subject to the restrictions of
Sections 403(b), 401(a)/401(k) or 403(a) and the terms of the Plan. Subject
to the terms of the vesting schedule in the Plan and the restrictions of
Sections 403(b), 401(a)/401(k) or 403(a), I have ownership in the value of my
Employer Account.
> I understand that the Company will process transactions only with my
employer's written direction to the Company. I agree to be bound by my
employer's interpretation of the Plan provisions and its written direction to
the Company.
> My employer may permit me to make investment selections under the Employee
Account and/or the Employer Account directly with the Company under the terms
of the Contract. Without my employer's written permission, I will be unable
to make any investment selections under the Contract.
> On my behalf, my employer may request a loan in accordance with the terms of
the Contract and the provisions of the Plan. The Company will make payment of
the loan amount directly to me. I will be responsible for making repayments
directly to the Company in a timely manner.
> In the event of my death, my employer is the named Beneficiary under the
terms of the Contract. I have the right to name a personal Beneficiary as
determined under the terms of the Plan and file that Beneficiary election
with my employer. It is my employer's responsibility to direct the Company to
properly pay any death benefits.
56
<PAGE>
Appendix V
Fund Descriptions
- --------------------------------------------------------------------------------
The investment results of the mutual funds (funds) are likely to differ
significantly and there is no assurance that any of the funds will achieve
their respective investment objectives. Shares of the funds will rise and fall
in value and you could lose money by investing in the funds. Investments in the
funds are not bank deposits and are not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Except as noted,
all funds are diversified, as defined under the Investment Company Act of 1940.
>Aetna Balanced VP, Inc. seeks to maximize investment return, consistent with
reasonable safety of principal by investing in a diversified portfolio of one
or more of the following asset classes: stocks, bonds, and cash equivalents,
based on the investment adviser's judgment of which of those sectors or mix
thereof offers the best investment prospects.(1)
>Aetna Income Shares d/b/a Aetna Bond VP seeks to maximize total return,
consistent with reasonable risk, through investments in a diversified
portfolio consisting primarily of debt securities. It is anticipated that
capital appreciation and investment income will both be major factors in
achieving total return.(1)
>Aetna Variable Fund d/b/a Aetna Growth and Income VP seeks to maximize total
return through investments in a diversified portfolio of common stocks and
securities convertible into common stock. It is anticipated that capital
appreciation and investment income will both be major factors in achieving
total return.(1)
>Aetna Variable Encore Fund d/b/a Aetna Money Market VP seeks to provide high
current return, consistent with preservation of capital and liquidity, through
investment in high-quality money market instruments. An investment in the fund
is neither insured nor guaranteed by the U.S. Government.(1)
>Aetna Generation Portfolios, Inc.--Aetna Ascent VP seeks to provide capital
appreciation. The Portfolio is managed for investors who generally have an
investment horizon exceeding 15 years and who have a high level of risk
tolerance.(1)
>Aetna Generation Portfolios, Inc.--Aetna Crossroads VP seeks to provide total
return (i.e., income and capital appreciation, both realized and unrealized).
The Portfolio is managed for investors who generally have an investment
horizon exceeding 10 years and who have a moderate level of risk tolerance.(1)
>Aetna Generation Portfolios, Inc.--Aetna Legacy VP seeks to provide total
return consistent with preservation of capital. The Portfolio is managed for
investors who generally have an investment horizon exceeding five years and
who have a low level of risk tolerance.(1)
>Aetna Variable Portfolios, Inc.--Aetna Growth VP seeks growth of capital
through investment in a diversified portfolio consisting primarily of common
stocks and securities convertible into common stocks believed to offer growth
potential.(1)
>Aetna Variable Portfolios, Inc.--Aetna High Yield VP seeks high current income
and growth of capital primarily through investment in a diversified portfolio
of fixed-income securities rated lower than BBB- by Standard and Poor's
Corporation or lower than Baa3 by Moody's Investors Service, Inc.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Large Cap VP seeks to
outperform the total return performance of the Standard & Poor's 500 Composite
Index (S&P 500), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Mid Cap VP seeks to
outperform the total return performance of the Standard & Poor's MidCap 400
Index (S&P 400), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna Index Plus Small Cap VP seeks to
outperform the total return performance of the Standard & Poor's SmallCap 600
Index (S&P 600), while maintaining a market level of risk.(1)
>Aetna Variable Portfolios, Inc.--Aetna International VP seeks long-term
capital growth primarily through investment in a diversified portfolio of
common stocks principally traded in countries outside of the United States.
Aetna International VP will not target any given level of current income.(1)
57
<PAGE>
>Aetna Variable Portfolios, Inc.--Aetna Real Estate Securities VP seeks maximum
total return primarily through investment in a diversified portfolio of equity
securities of real estate companies, the majority of which are real estate
investment trusts (REITs).(1)
>Aetna Variable Portfolios, Inc.--Aetna Small Company VP seeks growth of
capital primarily through investment in a diversified portfolio of common
stocks and securities convertible into common stocks of companies with smaller
market capitalizations.(1)
>Aetna Variable Portfolios, Inc.--Aetna Technology VP seeks long-term capital
appreciation.(1)(a)
>Aetna Variable Portfolios, Inc.--Aetna Value Opportunity VP seeks growth of
capital primarily through investment in a diversified portfolio of common
stocks and securities convertible into common stock.(1)
>AIM V.I. Capital Appreciation Fund seeks growth of capital through investment
in common stocks, with emphasis on medium- and small-sized growth
companies.(2)
>AIM V.I. Growth Fund seeks growth of capital primarily by investing in
seasoned and better capitalized companies considered to have strong earnings
momentum.(2)
>AIM V.I. Growth and Income Fund seeks growth of capital with a secondary
objective of current income.(2)
>AIM V.I. Value Fund seeks to achieve long-term growth of capital by investing
primarily in equity securities judged by the fund's investment adviser to be
undervalued relative to the investment adviser's appraisal of the current or
projected earnings of the companies issuing the securities, or relative to
current market values of assets owned by the companies issuing the securities
or relative to the equity market generally. Income is a secondary
objective.(2)
>Calvert Social Balanced Portfolio is a nondiversified portfolio that seeks to
achieve a competitive total return through an actively managed portfolio of
stocks, bonds, and money market instruments which offer income and capital
growth opportunity and which satisfy the investment and social criteria
established for the Portfolio.(3)(a)
>DEM[Reg TM] Equity Fund (Institutional Shares) seeks to provide aggressive
long-term growth through capital appreciation.(4)
>Fidelity Variable Insurance Products Fund Equity-Income Portfolio seeks
reasonable income. The fund will also consider the potential for capital
appreciation. The fund seeks a yield which exceeds the composite yield on the
securities comprising the S&P 500.(5)
>Fidelity Variable Insurance Products Fund-- Growth Portfolio seeks capital
appreciation by investing primarily in common stocks of companies the
investment adviser believes have above-average growth potential.(5)
>Fidelity Variable Insurance Products Fund-- Overseas Portfolio seeks long-term
growth of capital by investing in foreign securities, primarily in common
stocks.(5)(a)
>Fidelity Variable Insurance Products Fund II-- Contrafund[Reg TM] Portfolio
seeks long term capital appreciation by investing primarily in common stocks of
companies whose value the investment adviser believes is not fully recognized
by the public.(5)(b)
>Janus Aspen Series--Aggressive Growth Portfolio is a nondiversified portfolio
that seeks long-term growth of capital. The Portfolio pursues its investment
objective by investing primarily in common stocks selected for their growth
potential, and normally invests at least 50% of its equity assets in
medium-sized companies. Medium-sized companies are those whose market
capitalizations at the time of investment fall within the range of companies
in the S&P MidCap 400 Index. Market capitalization is a commonly used measure
of the size and value of a company. The market capitalizations within the
Index will vary, but as of December 31, 1999, they ranged from approximately
$170 million to $37 billion.(6)
>Janus Aspen Series--Balanced Portfolio seeks long-term capital growth,
consistent with preservation of capital and balanced by current income. The
Portfolio pursues its investment objective by normally investing 40%-60% of
its assets in securities selected primarily for their growth potential and
40%-60% of its assets in securities selected primarily for their income
potential. This Portfolio normally invests at least 25% of its assets in
fixed-income securities.(6)
58
<PAGE>
>Janus Aspen Series--Flexible Income Portfolio seeks to obtain maximum total
return, consistent with preservation of capital. The Portfolio pursues its
investment objective by primarily investing in a wide variety of
income-producing securities such as corporate bonds and notes, government
securities and preferred stock. As a fundamental policy, the Portfolio will
invest at least 80% of its assets in income-producing securities. The
Portfolio may own an unlimited amount of high-yield/high-risk securities, and
these may be a big part of the portfolio. This Portfolio generates total
return from a combination of current income and capital appreciation, but
income is usually the dominant portion.(6)
>Janus Aspen Series--Growth Portfolio seeks long-term growth of capital in a
manner consistent with the preservation of capital. The Portfolio pursues its
investment objective by investing primarily in common stocks selected for their
growth potential. Although the Portfolio can invest in companies of any size,
it generally invests in larger, more established issuers.(6)
>Janus Aspen Series--Worldwide Growth Portfolio seeks long-term growth of
capital in a manner consistent with the preservation of capital. The Portfolio
pursues its investment objective by investing primarily in common stocks of
companies of any size throughout the world. The Portfolio normally invests in
issuers from at least five different countries, including the United States.
The Portfolio may at times invest in fewer than five countries or even a
single country.(6)
>Janus Twenty Fund seeks long-term growth of capital by investing in a
nondiversified portfolio that normally concentrates its investments in a core
position of 20-30 common stocks.(6)
>Lexington Natural Resources Trust is a nondiversified portfolio that seeks
long-term growth of capital through investment primarily in common stocks of
companies which own or develop natural resources and other basic commodities
or supply goods and services to such companies.(7)(a)
>Oppenheimer Global Securities Fund/VA seeks long-term capital appreciation by
investing a substantial portion of its assets in securities of foreign
issuers, "growth-type" companies, cyclical industries, and special situations
which are considered to have appreciation possibilities.(8)
>Oppenheimer Strategic Bond Fund/VA seeks a high level of current income
principally derived from interest on debt securities and seeks to enhance such
income by writing covered call options on debt securities.(8)
>Portfolio Partners, Inc. (PPI)--MFS Capital Opportunities Portfolio (formerly
known as PPI MFS Value Equity Portfolio) seeks capital appreciation.(9)(a)
>Portfolio Partners, Inc. (PPI)--MFS Emerging Equities Portfolio seeks
long-term growth of capital. (9)(a)
>Portfolio Partners, Inc. (PPI)--MFS Research Growth Portfolio seeks long-term
growth of capital and future income.(9)(a)
>Portfolio Partners, Inc. (PPI)--Scudder International Growth Portfolio seeks
long-term growth of capital.(9)(b)
>Portfolio Partners, Inc. (PPI)--T. Rowe Price Growth Equity Portfolio seeks
long-term capital growth, and secondarily, increasing dividend income. (9)(c)
Investment Adviser:
(1) Investment Adviser: Aeltus Investment Management, Inc.
(a) Elijah Asset Management, LLC (subadviser)
(2) Investment Adviser: A I M Advisors, Inc.
(3) Investment Adviser: Calvert Asset Management Company, Inc.
(a) NCM Capital Management, Inc. (subadviser)
(4) Chapman Capital Management, Inc.
(5) Investment Adviser: Fidelity Management & Research Company
(a) Fidelity Management & Research (U.K.) Inc. (subadviser)
Fidelity Management & Research Far East Inc. (subadviser)
Fidelity International Investment Advisors (subadviser)
Fidelity International Investment Advisors (U.K.) Limited
(subadviser)
Fidelity Investments Japan Limited (subadviser)
(b) Fidelity Management & Research (U.K.) Inc. (subadviser)
Fidelity Management & Research Far East Inc. (subadviser)
Fidelity Investments Japan Limited (subadviser)
(6) Investment Adviser: Janus Capital Corporation
(7) Investment Adviser: Lexington Management Corporation
(a) Market Systems Research Advisors, Inc. (subadviser)
(8) Investment Adviser: OppenheimerFunds, Inc.
(9) Investment Adviser: Aetna Life Insurance and Annuity Company
(a) Massachusetts Financial Services Company (subadviser)
(b) Scudder Kemper Investments, Inc. (subadviser)
(c) T. Rowe Price Associates, Inc. (subadviser)
59
<PAGE>
Appendix VI
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
<S> <C>
Table I--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.40%, 0.45%, and 0.50% ....................................... 62
Table II--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.55%, 0.65%, and 0.70% ....................................... 65
Table III--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.75%, 0.80%, and 0.85% ....................................... 68
Table IV--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
0.90% and 0.95% ............................................... 71
Table V--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.00% ......................................................... 75
Table VI--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.05% and 1.10% ............................................... 79
Table VII--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.15% ......................................................... 83
Table VIII--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.20% and Those Issued Since 1996 with Total Separate
Account Charges of 1.25% ...................................... 86
Table IX--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans with Total Separate Account Charges of
1.30% and 1.40% ............................................... 90
Table X--For Contracts Issued Under 403(b), 401(a)
and 401(k) Plans Since 1996 with Total Separate Account Charges
of 1.50% ...................................................... 93
Table XI--For Contracts Issued Under 403(b) Plans and
Deferred Compensation Plans with Total Separate Account
Charges of 1.25% .............................................. 96
Table XII--For Multiple Option Contracts Issued to
San Bernardino County and Macomb County with Total
Separate Account Charges of 1.25% ............................. 100
Table XIII--For Contracts Issued Under 403(b) Plans and
Deferred Compensation Plans with Total Separate Account
Charges of 1.50% (including a 0.25% Administrative Expense
Charge Beginning April 7, 1997) ............................... 104
Table XIV--For Contracts Containing Limits on Fees Issued
Under 403(b) Plans and Deferred Compensation Plans ............ 107
Table XV--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On January 15, 1996 ........................................... 109
Table XVI--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On May 25, 1996 ............................................... 113
</TABLE>
60
<PAGE>
Appendix VI
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
Table XVII--For Deferred Compensation Contracts with
Total Separate Account Charges of 0.95% Effective
On or After December 16, 1996 ......................... 117
Table XVIII--For Contracts Issued to Missouri Municipal
League Under Deferred Compensation Plans with
Total Separate Account Charges of 0.80% ............... 121
Table XIX--For Contracts Issued to Metropolitan Utilities
District Under Deferred Compensation Plans with
Total Separate Account Charges of 0.80% ............... 124
</TABLE>
61
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE I
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.40%, 0.45%, AND 0.50%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the two-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.40% Total Charges
-----------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.086 $13.239(1)
Value at end of period $16.043 $14.086
Number of accumulation units outstanding at end
of period 84,264 86,321
AETNA BALANCED VP, INC.
Value at beginning of period $15.331 $14.244(1)
Value at end of period $17.347 $15.331
Number of accumulation units outstanding at end
of period 720,935 653,272
AETNA BOND VP
Value at beginning of period $12.079 $11.893(1)
Value at end of period $11.942 $12.079
Number of accumulation units outstanding at end
of period 198,382 190,084
AETNA CROSSROADS VP
Value at beginning of period $13.628 $12.991(1)
Value at end of period $14.960 $13.628
Number of accumulation units outstanding at end
of period 62,563 51,878
AETNA GROWTH VP
Value at beginning of period $18.018 $15.200(1)
Value at end of period $24.222 $18.018
Number of accumulation units outstanding at end
of period 59,855 21,805
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.747 $15.108(1)
Value at end of period $19.586 $16.747
Number of accumulation units outstanding at end
of period 2,978,733 2,888,622
AETNA HIGH YIELD VP
Value at beginning of period $9.238 $9.125(1)
Value at end of period $9.850 $9.238
Number of accumulation units outstanding at end
of period 2,049 1,146
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.916 $16.874(1)
Value at end of period $23.418 $18.916
Number of accumulation units outstanding at end
of period 193,247 87,238
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.921 $9.480(1)
Value at end of period $12.597 $10.921
Number of accumulation units outstanding at end
of period 2,808 1,187
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.840 $8.071(1)
Value at end of period $9.754 $8.840
Number of accumulation units outstanding at end
of period 2,620 3,928
AETNA INTERNATIONAL VP
Value at beginning of period $10.059(9)
Value at end of period $14.760
Number of accumulation units outstanding at end
of period 1,480
AETNA LEGACY VP
Value at beginning of period $13.111 $12.598(1)
Value at end of period $13.986 $13.111
Number of accumulation units outstanding at end
of period 21,809 19,291
<CAPTION>
0.45% Total Charges 0.50% Total Charges
-------------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.519 $9.146(2) $9.848 $10.475(3)
Value at end of period $10.836 $9.519 $11.205 $9.848
Number of accumulation units outstanding at end
of period 53,201 779 4,725 2,670
AETNA BALANCED VP, INC.
Value at beginning of period $10.747(4) $11.077 $10.369(5)
Value at end of period $12.064 $12.521 $11.077
Number of accumulation units outstanding at end
of period 80,717 307,534 310,846
AETNA BOND VP
Value at beginning of period $10.455(6) $10.662 $10.118(5)
Value at end of period $10.396 $10.530 $10.662
Number of accumulation units outstanding at end
of period 19,693 84,611 88,895
AETNA CROSSROADS VP
Value at beginning of period $9.800 $9.531(2) $10.086 $10.298(5)
Value at end of period $10.752 $9.800 $11.061 $10.086
Number of accumulation units outstanding at end
of period 111,369 731 1,386 1,127
AETNA GROWTH VP
Value at beginning of period $11.470 $10.444(2) $12.397 $10.479(5)
Value at end of period $15.412 $11.470 $16.649 $12.397
Number of accumulation units outstanding at end
of period 134,661 291 34,478 19,997
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.152 $9.561(2) $10.665 $10.580(5)
Value at end of period $11.867 $10.152 $12.460 $10.665
Number of accumulation units outstanding at end
of period 348,478 1,119 674,275 719,561
AETNA HIGH YIELD VP
Value at beginning of period $9.743(7) $9.260 $9.961(3)
Value at end of period $9.912 $9.864 $9.260
Number of accumulation units outstanding at end
of period 68 2,779 834
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $11.307 $10.639(2) $12.019 $10.708(5)
Value at end of period $13.991 $11.307 $14.865 $12.019
Number of accumulation units outstanding at end
of period 226,927 859 24,911 13,477
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.889(6) $10.947 $10.050(3)
Value at end of period $12.916 $12.614 $10.947
Number of accumulation units outstanding at end
of period 2,661 3,621 2,662
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.954(6) $8.861 $9.328(8)
Value at end of period $10.166 $9.768 $8.861
Number of accumulation units outstanding at end
of period 1,373 1,190 17
AETNA INTERNATIONAL VP
Value at beginning of period $9.567 $9.231(2) $9.815 $8.967(1)
Value at end of period $14.414 $9.567 $14.780 $9.815
Number of accumulation units outstanding at end
of period 19,616 61 1,029 562
AETNA LEGACY VP
Value at beginning of period $10.103(4) $10.293 $10.115(8)
Value at end of period $10.738 $10.968 $10.293
Number of accumulation units outstanding at end
of period 32,691 495 165
</TABLE>
62
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.40% Total Charges
-----------------------------------
1999 1998
---- -----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.225 $11.148(1)
Value at end of period $11.748 $11.225
Number of accumulation units outstanding at end
of period 271,583 107,285
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.898 $8.679(1)
Value at end of period $8.488 $8.898
Number of accumulation units outstanding at end
of period 2,267 1,099
AETNA SMALL COMPANY VP
Value at beginning of period $13.714 $12.820(1)
Value at end of period $17.873 $13.714
Number of accumulation units outstanding at end
of period 18,170 15,614
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.125 $13.986(1)
Value at end of period $19.205 $16.125
Number of accumulation units outstanding at end
of period 12,434 11,799
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.105(6)
Value at end of period $13.834
Number of accumulation units outstanding at end
of period 1,129
AIM V.I. GROWTH FUND
Value at beginning of period $10.158(6)
Value at end of period $12.140
Number of accumulation units outstanding at end
of period 114
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.351(10)
Value at end of period $11.785
Number of accumulation units outstanding at end
of period 426
AIM V.I. VALUE FUND
Value at beginning of period $10.177(10)
Value at end of period $11.574
Number of accumulation units outstanding at end
of period 1,916
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.976 $13.635(1)
Value at end of period $16.740 $14.976
Number of accumulation units outstanding at end
of period 40,498 38,218
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.192 $14.267(1)
Value at end of period $16.089 $15.192
Number of accumulation units outstanding at end
of period 114,725 54,320
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.525 $15.510(1)
Value at end of period $23.989 $17.525
Number of accumulation units outstanding at end
of period 325,063 128,518
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.170 $12.178(1)
Value at end of period $18.709 $13.170
Number of accumulation units outstanding at end
of period 30,213 10,817
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.813 $15.219(1)
Value at end of period $22.045 $17.813
Number of accumulation units outstanding at end
of period 239,028 197,022
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.125 $11.663(1)
Value at end of period $31.711 $14.125
Number of accumulation units outstanding at end
of period 405,725 198,264
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.878 $15.614(1)
Value at end of period $22.571 $17.878
Number of accumulation units outstanding at end
of period 103,517 39,424
<CAPTION>
0.45% Total Charges 0.50% Total Charges
-------------------------------- ---------------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.706(7) $10.399 $10.050(5)
Value at end of period $10.777 $10.872 $10.399
Number of accumulation units outstanding at end
of period 41,969 70,539 34,355
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.436(7) $8.919 $9.655(8)
Value at end of period $8.544 8.500 $8.919
Number of accumulation units outstanding at end
of period 33 0 649
AETNA SMALL COMPANY VP
Value at beginning of period $9.176 $8.583(2) $9.312 $10.719(5)
Value at end of period $11.953 $9.176 $12.124 $9.312
Number of accumulation units outstanding at end
of period 63,697 318 7,763 7,541
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $12.467(7) $11.369 $10.508(5)
Value at end of period $12.665 $13.527 $11.369
Number of accumulation units outstanding at end
of period 10,293 2,750 993
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.518(7)
Value at end of period $11.781
Number of accumulation units outstanding at end
of period 882
AIM V.I. VALUE FUND
Value at beginning of period $9.753(6)
Value at end of period $11.570
Number of accumulation units outstanding at end
of period 8,954
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $10.714 $10.217(2) $10.966 $10.377(5)
Value at end of period $11.970 $10.714 $12.245 $10.966
Number of accumulation units outstanding at end
of period 26,121 553 54,141 50,868
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $9.968 $9.516(2) $10.363 $10.522(5)
Value at end of period $10.552 $9.968 $10.964 $10.363
Number of accumulation units outstanding at end
of period 110,939 519 15,333 6,791
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $13.493(6) $12.779 $10.651(5)
Value at end of period $16.655 $17.475 $12.779
Number of accumulation units outstanding at end
of period 65,561 49,321 18,614
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $10.647(6) $10.183 $10.774(5)
Value at end of period $13.410 $14.451 $10.183
Number of accumulation units outstanding at end
of period 8,158 636 251
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $11.475 $10.553(2) $11.985 $10.673(5)
Value at end of period $14.194 $11.475 $14.817 $11.985
Number of accumulation units outstanding at end
of period 268,570 1,754 22,846 8,618
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $17.095(6) $12.541 $10.570(5)
Value at end of period $27.222 $28.128 $12.541
Number of accumulation units outstanding at end
of period 153,109 200,051 134,432
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $11.816 $10.945(2) $12.415 $10.615(5)
Value at end of period $14.910 $11.816 $15.658 $12.415
Number of accumulation units outstanding at end
of period 224,105 612 70,956 30,062
</TABLE>
63
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.40% Total Charges 0.45% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $13.053 $12.743(1) $10.446 $10.457(2)
Value at end of period $13.210 $13.053 $10.566 $10.446
Number of accumulation units outstanding at end
of period 20,171 21,374 42,021 82
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.807 $14.790(1) $11.979(4)
Value at end of period $25.537 $17.807 $16.753
Number of accumulation units outstanding at end
of period 156,805 73,901 233,330
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.582 $15.344(1) $10.235 $9.630(2)
Value at end of period $28.797 $17.582 $16.757 $10.235
Number of accumulation units outstanding at end
of period 531,184 383,490 466,808 1,186
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.626 $9.754(1) $8.644(7)
Value at end of period $10.939 $9.626 $8.758
Number of accumulation units outstanding at end
of period 8,856 12,237 4,241
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.047 $9.004(1) $13.162(7)
Value at end of period $15.859 $10.047 $15.849
Number of accumulation units outstanding at end
of period 5,065 1,564 27
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.923 $9.695(1) $9.953 $9.975(2)
Value at end of period $10.162 $9.923 $10.188 $9.953
Number of accumulation units outstanding at end
of period 1,576 1,513 6,623 575
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.676 $14.188(1) $10.673 $9.984(2)
Value at end of period $23.231 $15.676 $15.809 $10.673
Number of accumulation units outstanding at end
of period 44,936 36,644 36,972 192
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.776 $10.705(1) $11.002 $10.094(2)
Value at end of period $19.199 $12.776 $16.525 $11.002
Number of accumulation units outstanding at end
of period 413,847 339,956 128,507 371
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.641 $9.362(1) $10.577 $9.862(2)
Value at end of period $13.146 $10.641 $13.061 $10.577
Number of accumulation units outstanding at end
of period 323,178 331,958 50,332 473
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.602 $12.570(1) $11.701(6)
Value at end of period $21.461 $13.602 $15.452
Number of accumulation units outstanding at end
of period 196,446 168,912 42,208
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.863 $15.042(1) $11.057 $10.302(2)
Value at end of period $20.546 $16.863 $13.464 $11.057
Number of accumulation units outstanding at end
of period 165,483 169,615 79,777 817
<CAPTION>
0.50% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $10.640 $10.186(5)
Value at end of period $10.757 $10.640
Number of accumulation units outstanding at end
of period 24,751 13,364
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $12.391 $10.286(5)
Value at end of period $17.752 $12.391
Number of accumulation units outstanding at end
of period 36,959 7,785
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $11.485 $10.980(5)
Value at end of period $18.792 $11.485
Number of accumulation units outstanding at end
of period 68,055 37,288
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.070 $10.131(11)
Value at end of period $15.881 $10.070
Number of accumulation units outstanding at end
of period 786 180
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.946 $9.995(3)
Value at end of period $10.176 $9.946
Number of accumulation units outstanding at end
of period 5 14
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $11.320 $10.726(5)
Value at end of period $16.760 $11.320
Number of accumulation units outstanding at end
of period 69,113 71,605
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $10.841 $9.990(5)
Value at end of period $16.274 $10.841
Number of accumulation units outstanding at end
of period 181,468 178,398
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $11.127 $10.490(5)
Value at end of period $13.733 $11.127
Number of accumulation units outstanding at end
of period 72,064 79,769
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $10.797 $10.711(5)
Value at end of period $17.018 $10.797
Number of accumulation units outstanding at end
of period 115,575 113,511
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $11.551 $10.256(5)
Value at end of period $14.059 $11.551
Number of accumulation units outstanding at end
of period 6,942 4,869
</TABLE>
- -----------------
(1) Funds were first received in this option during November 1998.
(2) Funds were first received in this option during December 1998.
(3) Funds were first received in this option during May 1998.
(4) Funds were received in this option during January 1999.
(5) Funds were first received in this option during April 1998.
(6) Funds were received in this option during September 1999.
(7) Funds were received in this option during November 1999.
(8) Funds were first received in this option during June 1998.
(9) Funds were received in this option during February 1999.
(10) Funds were received in this option during July 1999.
(11) Funds were first received in this option during July 1998.
64
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE II
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.55%, 0.65%, AND 0.70%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for the period ended
December 31, 1999 (as applicable), is derived from the financial statements of
the separate account, which have been audited by KPMG LLP, independent auditors.
The financial statements and the independent auditors' report thereon for the
year ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.864(1) $9.484(2) $10.056(3)
Value at end of period $10.819 $10.802 $10.793
Number of accumulation units outstanding at end
of period 3,650 184,741 7,803
AETNA BALANCED VP, INC.
Value at beginning of period $11.266(1) $11.183(2) $11.192(3)
Value at end of period $12.045 $12.026 $12.016
Number of accumulation units outstanding at end
of period 237,142 119,529 96,082
AETNA BOND VP
Value at beginning of period $10.419(1) $10.594(2) $10.447(3)
Value at end of period $10.380 $10.363 $10.355
Number of accumulation units outstanding at end
of period 31,523 113,547 36,755
AETNA CROSSROADS VP
Value at beginning of period $10.032(1) $9.799(2) $10.178(3)
Value at end of period $10.735 $10.718 $10.709
Number of accumulation units outstanding at end
of period 3,809 90,629 2,882
AETNA GROWTH VP
Value at beginning of period $12.980(1) $12.835(4) $12.378(3)
Value at end of period $15.387 $15.362 $15.350
Number of accumulation units outstanding at end
of period 12,695 17,762 9,291
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.922(1) $10.867(2) $10.936(3)
Value at end of period $11.847 $11.828 $11.819
Number of accumulation units outstanding at end
of period 1,191,861 479,213 296,167
AETNA HIGH YIELD VP
Value at beginning of period $9.577(1) $9.554(4) $9.827(3)
Value at end of period $9.896 $9.880 $9.872
Number of accumulation units outstanding at end
of period 129 215 76
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $12.633(1) $12.586(2) $12.362(3)
Value at end of period $13.968 $13.946 $13.935
Number of accumulation units outstanding at end
of period 107,027 198,941 34,700
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.478(1) $11.204(4) $11.323(3)
Value at end of period $12.896 $12.875 $12.864
Number of accumulation units outstanding at end
of period 60 5,592 285
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $9.235(1) $8.416(2) $8.998(5)
Value at end of period $10.150 $10.134 $10.126
Number of accumulation units outstanding at end
of period 70 40,166 42
AETNA INTERNATIONAL VP
Value at beginning of period $11.236(1) $11.021(4) $10.927(4)
Value at end of period $14.391 $14.367 $14.356
Number of accumulation units outstanding at end
of period 59 405 14
AETNA LEGACY VP
Value at beginning of period $10.273(1) $10.114(2) $10.364(3)
Value at end of period $10.721 $10.704 $10.695
Number of accumulation units outstanding at end
of period 22,643 62,233 834
</TABLE>
65
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.669(1) $10.407(2) $10.434(3)
Value at end of period $10.760 $10.742 $10.734
Number of accumulation units outstanding at end
of period 67,587 249,862 38,319
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.263(1) $8.621(5)
Value at end of period $8.517 $8.510
Number of accumulation units outstanding at end
of period 15 14
AETNA SMALL COMPANY VP
Value at beginning of period $9.996(1) $9.740(4) $9.503(3)
Value at end of period $11.933 $11.914 $11.904
Number of accumulation units outstanding at end
of period 17,509 8,502 3,486
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $11.893(1) $11.196(2) $11.759(3)
Value at end of period $12.645 $12.625 $12.615
Number of accumulation units outstanding at end
of period 20,593 69,481 2,839
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.908(1) $10.189(5)
Value at end of period $13.820 $13.805
Number of accumulation units outstanding at end
of period 48 82
AIM V.I. GROWTH FUND
Value at beginning of period $10.242(1) $10.100(4) $11.387(6)
Value at end of period $12.127 $12.119 $12.115
Number of accumulation units outstanding at end
of period 990 1,728 54
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.229(1) $10.785(1) $9.404(5)
Value at end of period $11.773 $11.764 $11.760
Number of accumulation units outstanding at end
of period 880 17 41
AIM V.I. VALUE FUND
Value at beginning of period $10.242(1) $10.194(4) $9.661(5)
Value at end of period $11.562 $11.554 $11.550
Number of accumulation units outstanding at end
of period 203 733 80
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $11.207(1) $11.067(4) $11.025(3)
Value at end of period $11.951 $11.932 $11.922
Number of accumulation units outstanding at end
of period 13,438 3,322 3,736
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $10.462(1) $10.691(2) $11.230(3)
Value at end of period $10.535 $10.518 $10.509
Number of accumulation units outstanding at end
of period 65,154 123,332 8,104
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $14.192(1) $13.816(2) $13.474(3)
Value at end of period $16.628 $16.601 $16.588
Number of accumulation units outstanding at end
of period 129,223 309,124 37,940
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $11.159(1) $10.023(2) $10.077(3)
Value at end of period $13.389 $13.367 $13.356
Number of accumulation units outstanding at end
of period 8,971 15,589 396
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $12.452(1) $12.698(2) $12.471(3)
Value at end of period $14.171 $14.148 $14.137
Number of accumulation units outstanding at end
of period 119,841 276,641 19,120
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $19.683(1) $15.589(2) $15.319(3)
Value at end of period $27.178 $27.135 $27.113
Number of accumulation units outstanding at end
of period 112,798 216,673 49,337
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $13.489(1) $13.502(2) $13.144(3)
Value at end of period $14.886 $14.862 $14.850
Number of accumulation units outstanding at end
of period 104,837 251,840 7,041
</TABLE>
66
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.55% Total Charges 0.65% Total Charges 0.70% Total Charges
------------------- ------------------- -------------------
1999 1999 1999
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $10.380(1) $10.622(2) $10.473(3)
Value at end of period $10.549 $10.532 $10.523
Number of accumulation units outstanding at end
of period 27,998 88,620 2,088
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $14.336(1) $14.246(4) $13.194(3)
Value at end of period $16.726 $16.699 $16.686
Number of accumulation units outstanding at end
of period 74,827 29,859 26,860
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $12.638(1) $11.492(2) $11.151(3)
Value at end of period $16.730 $16.703 $16.689
Number of accumulation units outstanding at end
of period 177,086 237,116 31,925
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $8.255(1) $8.125(4) $9.037(3)
Value at end of period $8.744 $8.729 $8.722
Number of accumulation units outstanding at end
of period 4,257 2,246 2,018
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $12.055(1) $11.782(4) $14.516(6)
Value at end of period $15.823 $15.798 $15.785
Number of accumulation units outstanding at end
of period 371 137 58
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.997(1) $9.942(4)
Value at end of period $10.172 $10.155
Number of accumulation units outstanding at end
of period 1,233 64
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $12.844(1) $12.653(4) $11.997(3)
Value at end of period $15.783 $15.758 $15.745
Number of accumulation units outstanding at end
of period 51,669 14,720 4,667
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.327(1) $10.880(2) $11.165(3)
Value at end of period $16.499 $16.472 $16.459
Number of accumulation units outstanding at end
of period 103,358 109,678 32,821
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $11.303(1) $11.075(2) $11.020(3)
Value at end of period $13.040 $13.019 $13.008
Number of accumulation units outstanding at end
of period 54,854 89,183 22,796
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $12.322(1) $10.375(2) $10.603(3)
Value at end of period $15.427 $15.403 $15.390
Number of accumulation units outstanding at end
of period 60,619 24,792 12,199
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO
Value at beginning of period $11.814(1) $11.742(4) $11.790(3)
Value at end of period $13.443 $13.421 $13.410
Number of accumulation units outstanding at end
of period 26,870 17,657 17,647
</TABLE>
- -----------------
(1) Funds were first received in this option during November 1999.
(2) Funds were first received in this option during April 1999.
(3) Funds were first received in this option during May 1999.
(4) Funds were first received in this option during October 1999.
(5) Funds were first received in this option during September 1999.
(6) Funds were first received in this option during December 1999.
67
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE III
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) and 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.75%, 0.80%, AND 0.85%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the two-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.502 $9.913(1) $10.101 $10.604(2)
Value at end of period $10.784 $9.502 $11.458 $10.101
Number of accumulation units outstanding at end
of period 52,442 43,142 169,078 255,775
AETNA BALANCED VP, INC.
Value at beginning of period $10.648 $10.002(1) $11.358 $10.646(2)
Value at end of period $12.006 $10.648 $12.801 $11.358
Number of accumulation units outstanding at end
of period 194,625 183,347 3,380,638 3,962,527
AETNA BOND VP
Value at beginning of period $10.502 $10.058(1) $10.650 $10.157(2)
Value at end of period $10.346 $10.502 $10.487 $10.650
Number of accumulation units outstanding at end
of period 51,554 51,916 617,714 771,660
AETNA CROSSROADS VP
Value at beginning of period $9.782 $9.936(1) $10.312 $10.524(2)
Value at end of period $10.701 $9.782 $11.275 $10.312
Number of accumulation units outstanding at end
of period 67,538 62,144 93,911 213,970
AETNA GROWTH VP
Value at beginning of period $11.449 $9.925(1) $13.030 $11.326(2)
Value at end of period $15.338 $11.449 $17.447 $13.030
Number of accumulation units outstanding at end
of period 28,754 18,200 728,964 303,987
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.133 $9.935(1) $11.108 $10.925(2)
Value at end of period $11.809 $10.133 $12.939 $11.108
Number of accumulation units outstanding at end
of period 806,180 773,713 13,348,490 15,809,881
AETNA HIGH YIELD VP
Value at beginning of period $9.284 $10.145(4) $9.241 $9.939(1)
Value at end of period $9.864 $9.284 $9.814 $9.241
Number of accumulation units outstanding at end
of period 98 0 6,652 15,411
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $11.286 $10.015(1) $12.587 $11.117(2)
Value at end of period $13.923 $11.286 $15.521 $12.587
Number of accumulation units outstanding at end
of period 81,578 48,831 2,792,639 1,974,900
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.183 $9.822(1) $10.925 $9.576(1)
Value at end of period $12.854 $11.183 $12.551 $10.925
Number of accumulation units outstanding at end
of period 3,959 1,623 50,227 80,312
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $9.201 $9.642(1) $8.843 $9.269(1)
Value at end of period $10.117 $9.201 $9.718 $8.843
Number of accumulation units outstanding at end
of period 2,982 1,481 50,270 90,819
AETNA INTERNATIONAL VP
Value at beginning of period $9.550 $9.600(5) $9.795 $10.043(1)
Value at end of period $14.344 $9.550 $14.705 $9.795
Number of accumulation units outstanding at end
of period 134 7 43,135 45,801
AETNA LEGACY VP
Value at beginning of period $10.054 $9.977(1) $10.423 $10.359(2)
Value at end of period $10.686 $10.054 $11.073 $10.423
Number of accumulation units outstanding at end
of period 19,174 21,150 232,707 418,989
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.113 $13.699(3)
Value at end of period $16.002 $14.113
Number of accumulation units outstanding at end
of period 150,454 70,991
AETNA BALANCED VP, INC.
Value at beginning of period $15.360 $13.327(3)
Value at end of period $17.303 $15.360
Number of accumulation units outstanding at end
of period 1,479,143 1,379,122
AETNA BOND VP
Value at beginning of period $12.102 $11.381(3)
Value at end of period $11.911 $12.102
Number of accumulation units outstanding at end
of period 637,752 654,765
AETNA CROSSROADS VP
Value at beginning of period $13.654 $13.063(3)
Value at end of period $14.921 $13.654
Number of accumulation units outstanding at end
of period 121,322 102,916
AETNA GROWTH VP
Value at beginning of period $18.036 $13.357(3)
Value at end of period $24.137 $18.036
Number of accumulation units outstanding at end
of period 65,690 24,240
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.779 $14.694(3)
Value at end of period $19.535 $16.779
Number of accumulation units outstanding at end
of period 5,572,187 5,795,667
AETNA HIGH YIELD VP
Value at beginning of period $9.238 $9.899(5)
Value at end of period $9.806 $9.238
Number of accumulation units outstanding at end
of period 7,192 644
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.945 $14.692(3)
Value at end of period $23.350 $18.945
Number of accumulation units outstanding at end
of period 611,611 459,428
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.921 $9.028(5)
Value at end of period $12.540 $10.921
Number of accumulation units outstanding at end
of period 16,931 5,681
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.840 $8.464(5)
Value at end of period $9.710 $8.840
Number of accumulation units outstanding at end
of period 20,739 6,564
AETNA INTERNATIONAL VP
Value at beginning of period $9.792 $9.580(5)
Value at end of period $14.693 $9.792
Number of accumulation units outstanding at end
of period 12,523 8,719
AETNA LEGACY VP
Value at beginning of period $13.136 $12.497(3)
Value at end of period $13.950 $13.136
Number of accumulation units outstanding at end
of period 83,670 61,043
</TABLE>
68
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.283 $10.022(1) $10.414 $10.136(2)
Value at end of period $10.725 $10.283 $10.855 $10.414
Number of accumulation units outstanding at end
of period 23,586 26,810 1,891,667 1,574,454
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.944 $9.792(1) $8.900 $10.041(4)
Value at end of period $8.503 $8.944 $8.457 $8.900
Number of accumulation units outstanding at end
of period 75 9 21,245 27,225
AETNA SMALL COMPANY VP
Value at beginning of period $9.159 $9.812(1) $9.764 $10.578(2)
Value at end of period $11.895 $9.159 $12.675 $9.764
Number of accumulation units outstanding at end
of period 15,498 13,043 1,290,260 1,165,745
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $10.620 $9.921(1) $11.692 $10.972(2)
Value at end of period $12.604 $10.620 $13.870 $11.692
Number of accumulation units outstanding at end
of period 16,091 14,488 356,705 350,826
AIM V.I. CAPITAL APPRECIATION FUND
Value a beginning of period $9.957(6) $10.166(7)
Value at end of period $13.801 $13.796
Number of accumulation units outstanding at end
of period 49 21,991
AIM V.I. GROWTH FUND
Value a beginning of period $9.867(8) $10.306(9)
Value at end of period $12.111 $12.106
Number of accumulation units outstanding at end
of period 98 51,298
AIM V.I. GROWTH AND INCOME FUND
Value a beginning of period $9.275(7) $9.280(7)
Value at end of period $11.756 $11.752
Number of accumulation units outstanding at end
of period 2,338 81,160
AIM V.I. VALUE FUND
Value a beginning of period $9.815(6) $9.762(6)
Value at end of period $11.546 $11.542
Number of accumulation units outstanding at end
of period 1,011 166,176
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $10.694 $10.081(1) $11.254 $10.492(2)
Value at end of period $11.912 $10.694 $12.530 $11.254
Number of accumulation units outstanding at end
of period 9,602 9,543 73,943 91,333
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $9.950 $9.914(1) $10.850 $10.873(2)
Value at end of period $10.501 $9.950 $11.445 $10.850
Number of accumulation units outstanding at end
of period 73,216 67,227 833,428 846,660
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $12.150 $9.956(1) $13.307 $10.887(2)
Value at end of period $16.574 $12.150 $18.143 $13.307
Number of accumulation units outstanding at end
of period 110,673 63,727 1,602,406 981,477
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $9.427 $9.912(1) $10.530 $11.184(2)
Value at end of period $13.346 $9.427 $14.900 $10.530
Number of accumulation units outstanding at end
of period 6,009 4,502 53,817 47,503
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $11.454 $9.912(1) $12.589 $10.937(2)
Value at end of period $14.126 $11.454 $15.518 $12.589
Number of accumulation units outstanding at end
of period 96,687 78,075 1,895,670 2,102,805
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $12.109 $9.887(1) $13.056 $10.647(2)
Value at end of period $27.091 $12.109 $29.195 $13.056
Number of accumulation units outstanding at end
of period 181,271 117,103 2,728,718 1,605,726
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $11.794 $9.856(1) $12.741 $10.741(2)
Value at end of period $14.838 $11.794 $16.022 $12.741
Number of accumulation units outstanding at end
of period 69,363 26,592 815,864 425,125
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.246 $10.799(3)
Value at end of period $11.717 $11.246
Number of accumulation units outstanding at end
of period 472,335 396,669
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.897 $10.041(4)
Value at end of period $8.450 8.897
Number of accumulation units outstanding at end
of period 2,945 398
AETNA SMALL COMPANY VP
Value at beginning of period $13.728 $13.558(3)
Value at end of period $17.810 $13.728
Number of accumulation units outstanding at end
of period 36,864 25,298
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.141 $13.404(3)
Value at end of period $19.138 $16.141
Number of accumulation units outstanding at end
of period 19,877 15,014
AIM V.I. CAPITAL APPRECIATION FUND
Value a beginning of period $10.489(7)
Value at end of period $13.791
Number of accumulation units outstanding at end
of period 2,863
AIM V.I. GROWTH FUND
Value a beginning of period $10.118(7)
Value at end of period $12.102
Number of accumulation units outstanding at end
of period 14,758
AIM V.I. GROWTH AND INCOME FUND
Value a beginning of period $9.575(7)
Value at end of period $11.748
Number of accumulation units outstanding at end
of period 19,774
AIM V.I. VALUE FUND
Value a beginning of period $10.458(9)
Value at end of period $11.538
Number of accumulation units outstanding at end
of period 10,688
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $15.005 $13.124(3)
Value at end of period $16.697 $15.005
Number of accumulation units outstanding at end
of period 200,068 132,605
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.220 $13.708(3)
Value at end of period $16.047 $15.220
Number of accumulation units outstanding at end
of period 303,704 306,099
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.558 $12.857(3)
Value at end of period $23.927 $17.558
Number of accumulation units outstanding at end
of period 520,647 399,820
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.195 $12.182(3)
Value at end of period $18.661 $13.195
Number of accumulation units outstanding at end
of period 20,580 13,937
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.847 $13.824(3)
Value at end of period $21.988 $17.847
Number of accumulation units outstanding at end
of period 303,914 217,720
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.152 $10.427(3)
Value at end of period $31.629 $14.152
Number of accumulation units outstanding at end
of period 608,435 320,159
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.912 $13.744(3)
Value at end of period $22.513 $17.912
Number of accumulation units outstanding at end
of period 141,750 47,668
</TABLE>
69
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.75% Total Charges 0.80% Total Charges
------------------- -------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $10.427 $10.062(1) $10.643 $10.210(2)
Value at end of period $10.515 $10.427 $10.727 $10.643
Number of accumulation units outstanding at end
of period 6,855 6,947 300,761 367,677
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $11.666 $9.810(1) $12.836 $10.918(2)
Value at end of period $16.673 $11.666 $18.335 $12.836
Number of accumulation units outstanding at end
of period 73,998 41,104 1,206,255 434,913
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $10.217 $9.953(1) $12.009 $11.798(2)
Value at end of period $16.676 $10.217 $19.592 $12.009
Number of accumulation units outstanding at end
of period 211,807 167,606 4,837,241 4,480,348
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $7.696 $9.791(1) $8.415 $10.922(2)
Value at end of period $8.715 $7.696 $9.524 $8.415
Number of accumulation units outstanding at end
of period 10,960 13,175 92,365 140,250
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.027 $9.713(1) $10.050 $10.001(4)
Value at end of period $15.772 $10.027 $15.800 $10.050
Number of accumulation units outstanding at end
of period 2,178 535 8,820 2,686
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.935 $10.029(4) $9.926 $10.025(1)
Value at end of period $10.139 $9.935 $10.125 $9.926
Number of accumulation units outstanding at end
of period 1,052 925 4,198 18,786
PPI CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $10.653 $9.963(1) $12.055 $11.274(2)
Value at end of period $15.732 $10.653 $17.793 $12.055
Number of accumulation units outstanding at end
of period 57,584 49,316 343,239 376,471
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $10.982 $9.828(1) $11.846 $10.687(2)
Value at end of period $16.446 $10.982 $17.731 $11.846
Number of accumulation units outstanding at end
of period 161,338 139,547 2,991,235 3,491,454
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.558 $9.917(1) $11.682 $11.019(2)
Value at end of period $12.998 $10.558 $14.375 $11.682
Number of accumulation units outstanding at end
of period 52,317 46,475 541,625 750,388
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $9.781 $10.009(1) $11.041 $11.338(2)
Value at end of period $15.378 $9.781 $17.351 $11.041
Number of accumulation units outstanding at end
of period 37,463 34,688 721,190 850,743
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $11.036 $9.961(1) $12.153 $10.967(2)
Value at end of period $13.399 $11.036 $14.748 $12.153
Number of accumulation units outstanding at end
of period 52,086 42,865 869,106 1,058,534
<CAPTION>
0.85% Total Charges
-------------------
1999 1998
---- ----
<S> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $13.078 $12.306(3)
Value at end of period $13.175 $13.078
Number of accumulation units outstanding at end
of period 35,683 25,566
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.841 $13.512(3)
Value at end of period $25.471 $17.841
Number of accumulation units outstanding at end
of period 538,138 446,603
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.615 $14.300(3)
Value at end of period $28.723 $17.615
Number of accumulation units outstanding at end
of period 864,936 710,851
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.645 $11.047(3)
Value at end of period $10.911 $9.645
Number of accumulation units outstanding at end
of period 28,939 14,190
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.046 $9.275(5)
Value at end of period $15.787 $10.046
Number of accumulation units outstanding at end
of period 10,762 7,592
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.922 $9.935(5)
Value at end of period $10.116 $9.922
Number of accumulation units outstanding at end
of period 5,761 2,776
PPI CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.706 $12.661(3)
Value at end of period $23.171 $15.706
Number of accumulation units outstanding at end
of period 399,213 382,755
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.800 $10.399(3)
Value at end of period $19.150 $12.800
Number of accumulation units outstanding at end
of period 822,854 706,142
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.661 $8.861(3)
Value at end of period $13.112 $10.661
Number of accumulation units outstanding at end
of period 681,109 616,205
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.628 $11.868(3)
Value at end of period $21.405 $13.628
Number of accumulation units outstanding at end
of period 471,226 434,054
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.895 $13.562(3)
Value at end of period $20.493 $16.895
Number of accumulation units outstanding at end
of period 195,928 129,123
</TABLE>
- -----------------
(1) Funds were first received in this option during June 1998.
(2) Funds were first received in this option during May 1998.
(3) Funds were first received in this option during January 1998.
(4) Funds were first received in this option during July 1998.
(5) Funds were first received in this option during August 1998.
(6) Funds were first received in this option during May 1999.
(7) Funds were first received in this option during June 1999.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during July 1999.
70
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE IV
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.90% AND 0.95%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods
ended December 31, 1999, 1998, 1997 and 1996 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
0.90% Total
Charges
-----------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $9.953 $9.227(1)
Value at end of period $11.279 $9.953
Number of accumulation units
outstanding at end of period 19,046 212
AETNA BALANCED VP, INC.
Value at beginning of period $11.157 $10.451(3)
Value at end of period $12.561 $11.157
Number of accumulation units
outstanding at end of period $13,521 1,648
AETNA BOND VP
Value at beginning of period $10.654 $10.070(4)
Value at end of period $10.481 $10.654
Number of accumulation units
outstanding at end of period 2,670 383
AETNA CROSSROADS VP
Value at beginning of period $10.489(5)
Value at end of period $11.115
Number of accumulation units
outstanding at end of period 4,102
AETNA GROWTH VP
Value at beginning of period $12.681 $10.958(3)
Value at end of period $16.962 $12.681
Number of accumulation units
outstanding at end of period 4,182 628
AETNA GROWTH AND INCOME VP
Value at beginning of period $10.804 $10.562(4)
Value at end of period $12.572 $10.804
Number of accumulation units
outstanding at end of period 128,637 8,243
AETNA HIGH YIELD VP
Value at beginning of period $9.802(7)
Value at end of period $9.797
Number of accumulation units
outstanding at end of period 146
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $12.206 $10.648(4)
Value at end of period $15.036 $12.206
Number of accumulation units
outstanding at end of period 14,614 2,384
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $11.099(10)
Value at end of period $12.529
Number of accumulation units
outstanding at end of period 42
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.837 $9.582(8)
Value at end of period $9.702 $8.837
Number of accumulation units
outstanding at end of period 586 62
AETNA INTERNATIONAL VP
Value at beginning of period $11.286(10)
Value at end of period $14.680
Number of accumulation units
outstanding at end of period 24
AETNA LEGACY VP
Value at beginning of period $10.351 $10.390(11)
Value at end of period $10.986 $10.351
Number of accumulation units
outstanding at end of period 549 37
<CAPTION>
0.95% Total Charges
-----------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.076 $13.624 $11.472 $10.000(2)
Value at end of period $15.944 $14.076 $13.624 $11.472
Number of accumulation units
outstanding at end of period 75,808 75,369 119,471 20,237
AETNA BALANCED VP, INC.
Value at beginning of period $15.320 $13.226 $10.902 $10.000(2)
Value at end of period $17.240 $15.320 $13.226 $10.902
Number of accumulation units
outstanding at end of period 565,751 468,468 986,711 702,222
AETNA BOND VP
Value at beginning of period $12.070 $11.268 $10.503 $10.000(2)
Value at end of period $11.867 $12.070 $11.268 $10.503
Number of accumulation units
outstanding at end of period 228,114 187,653 251,156 161,765
AETNA CROSSROADS VP
Value at beginning of period $13.618 $12.980 $11.146 $10.000(2)
Value at end of period $14.867 $13.618 $12.980 $11.146
Number of accumulation units
outstanding at end of period 75,297 105,586 117,725 7,882
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.787(6)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 53,957 25,778 1,880
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.735 $14.756 $11.469 $10.000(2)
Value at end of period $19.464 $16.736 $14.756 $11.469
Number of accumulation units
outstanding at end of period 2,450,338 2,224,467 3,760,076 2,876,728
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $10.078(8)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 14,009 799
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(9)
Value at end of period $23.273 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 297,994 108,387 62,360 2,697
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.913 $10.108(11)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 2,500 564
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.834 $9.366(12)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 16,330 2,625
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $10.103(11)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 4,750 1,247
AETNA LEGACY VP
Value at beginning of period $13.102 $12.369 $10.905 $10.000(2)
Value at end of period $13.899 $13.102 $12.369 $10.905
Number of accumulation units
outstanding at end of period 38,639 55,494 47,726 61
</TABLE>
71
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.90% Total
Charges
-----------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $10.381 $10.297(1)
Value at end of period $10.811 $10.381
Number of accumulation units
outstanding at end of period 11,232 1,235
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY VP
Value at beginning of period $9.513 $10.939(3)
Value at end of period $12.336 $9.513
Number of accumulation units
outstanding at end of period 6,872 2,604
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $11.462 $10.515(4)
Value at end of period $13.583 $11.462
Number of accumulation units
outstanding at end of period 6,154 3,526
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period $11.422(7)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 264
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period $10.450(16)
Value at end of period $11.534
Number of accumulation units
outstanding at end of period 617
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $11.320(5)
Value at end of period $12.414
Number of accumulation units
outstanding at end of period 3,589
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $10.671 $9.265(17)
Value at end of period $11.245 $10.671
Number of accumulation units
outstanding at end of period 6,809 20
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $12.978 $10.757(3)
Value at end of period $17.677 $12.978
Number of accumulation units
outstanding at end of period 9,393 1,343
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.705(7)
Value at end of period $14.905
Number of accumulation units
outstanding at end of period 2,474
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $12.293 $10.737(4)
Value at end of period $15.138 $12.293
Number of accumulation units
outstanding at end of period 25,519 1,038
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $12.830 $10.787(3)
Value at end of period $28.662 $12.830
Number of accumulation units
outstanding at end of period 17,145 353
<CAPTION>
0.95% Total Charges
--------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.217 $10.738 $10.277 $10.000(2)
Value at end of period $11.675 $11.217 $10.738 $10.277
Number of accumulation units
outstanding at end of period 392,226 127,186 147,123 39,811
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.891 $10.053(11)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 17,118 15,245
AETNA SMALL COMPANY VP
Value at beginning of period $13.704 $13.684 $13.119(13)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 54,303 44,944 2,124
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $12.912(13)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 42,540 29,112 587
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.487(14)
Value at end of period $13.781
Number of accumulation units
outstanding at end of period 613
AIM V.I. GROWTH FUND
Value at beginning of period $9.465(15)
Value at end of period $12.094
Number of accumulation units
outstanding at end of period 6,722
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.261(16)
Value at end of period $11.740
Number of accumulation units
outstanding at end of period 10,352
AIM V.I. VALUE FUND
Value at beginning of period $9.827(14)
Value at end of period $11.530
Number of accumulation units
outstanding at end of period 14,638
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.965 $12.994 $10.924 $10.000(2)
Value at end of period $16.636 $14.965 $12.994 $10.924
Number of accumulation units
outstanding at end of period 117,902 95,020 93,905 19,808
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.180 $13.729 $10.819 $10.000(2)
Value at end of period $15.989 $15.180 $13.729 $10.819
Number of accumulation units
outstanding at end of period 188,394 147,150 125,669 27,639
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.512 $12.674 $10.362 $10.000(2)
Value at end of period $23.840 $17.512 $12.674 $10.362
Number of accumulation units
outstanding at end of period 345,699 165,194 150,612 54,133
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.160 $11.783 $10.664 $10.000(2)
Value at end of period $18.593 $13.160 $11.783 $10.664
Number of accumulation units
outstanding at end of period 10,723 9,217 20,273 3,820
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.800 $13.825 $11.243 $10.000(2)
Value at end of period $21.908 $17.800 $13.825 $11.243
Number of accumulation units
outstanding at end of period 357,610 254,734 266,396 95,199
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.114 $10.613 $9.510 $10.000(2)
Value at end of period $31.514 $14.114 $10.613 $9.510
Number of accumulation units
outstanding at end of period 638,670 375,663 416,100 125,232
</TABLE>
72
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
0.90% Total
Charges 0.95% Total Charges
----------------------------- ---------------------------------------------------------------
1999 1998 1999 1998 1997 1996
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $12.490 $10.570(3) $17.865 $13.431 $11.105 $10.000(2)
Value at end of period $15.690 $12.490 $22.431 $17.865 $13.431 $11.105
Number of accumulation units
outstanding at end of period 5,703 479 232,279 81,983 42,699 9,188
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $10.638 $10.232(3) $13.043 $12.069 $10.902 $10.000(9)
Value at end of period $10.712 $10.638 $13.127 $13.043 $12.069 $10.902
Number of accumulation units
outstanding at end of period 5,764 393 69,212 36,740 29,665 1,402
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $12.464 $10.569(12) $17.794 $13.242 $10.891 $10.000(2)
Value at end of period $17.786 $12.464 $25.378 $17.794 $13.242 $10.891
Number of accumulation units
outstanding at end of period 11,348 128 187,296 53,448 92,666 39,841
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $11.745 $10.606(4) $17.569 $13.757 $11.370 $10.000(2)
Value at end of period $19.141 $11.745 $28.619 $17.569 $13.757 $11.370
Number of accumulation units
outstanding at end of period 26,947 5,140 643,914 427,855 555,448 151,935
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.619 $12.082 $11.383 $10.000(2)
Value at end of period $10.871 $9.619 $12.082 $11.383
Number of accumulation units
outstanding at end of period 51,656 51,077 85,577 5,295
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $10.039 $10.182(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 544 144
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $10.037(8)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 1,106 614
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $11.654 $11.183(3) $15.664 $12.478 $12.296(18)
Value at end of period $17.184 $11.654 $23.087 $15.664 $12.478
Number of accumulation units
outstanding at end of period 11,687 957 121,012 103,317 96,338
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $11.462 $10.233(12) $12.767 $9.940 $10.062(18)
Value at end of period $17.139 $11.462 $19.080 $12.767 $9.940
Number of accumulation units
outstanding at end of period 20,776 236 684,437 626,638 795,375
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $11.375 $10.954(3) $10.633 $8.727 $8.897(18)
Value at end of period $13.982 $11.375 $13.064 $10.633 $8.727
Number of accumulation units
outstanding at end of period 8,901 828 259,783 237,867 484,407
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $11.029 $10.020(1) $13.592 $11.522 $11.376(18)
Value at end of period $17.314 $11.029 $21.327 $13.592 $11.522
Number of accumulation units
outstanding at end of period 15,231 10 248,204 234,075 351,150
PPI T. ROWE PRICE
GROWTH EQUITY PORTFOLIO
Value at beginning of period $11.792 $10.840(3) $16.851 $13.332 $13.062(18)
Value at end of period $14.296 $11.792 $20.418 $16.851 $13.332
Number of accumulation units
outstanding at end of period 6,405 169 257,759 197,938 238,562
</TABLE>
- -----------------
(1) Funds were first received in this option during October 1998.
(2) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(3) Funds were first received in this option during April 1998.
73
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during March 1998.
(5) Funds were first received in this option during August 1999.
(6) Funds were first received in this option during August 1997.
(7) Funds were first received in this option during December 1999.
(8) Funds were first received in this option during July 1998.
(9) The initial accumulation unit value was established during August 1996
when the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(10) Funds were first received in this option during September 1999.
(11) Funds were first received in this option during May 1998.
(12) Funds were first received in this option during June 1998.
(13) Funds were first received in this option during December 1997.
(14) Funds were first received in this option during June 1999.
(15) Funds were first received in this option during May 1999.
(16) Funds were first received in this option during July 1999.
(17) Funds were first received in this option during September 1998.
(18) Funds were first received in this option during November 1997.
74
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE V
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.00%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.057 $13.613 $11.468 $10.000(1)
Value at end of period $15.915 $14.057 $13.613 $11.468
Number of accumulation units
outstanding at end of period 412,579 520,438 14,463 13
AETNA BALANCED VP, INC.
Value at beginning of period $15.300 $13.215 $13.054(2)
Value at end of period $17.208 $15.300 $13.215
Number of accumulation units
outstanding at end of period 2,306,988 2,019,116 57,737
AETNA BOND VP
Value at beginning of period $12.054 $11.258 $10.500 $10.000(1)
Value at end of period $11.846 $12.054 $11.258 $10.500
Number of accumulation units
outstanding at end of period 1,191,777 802,876 64,958 679
AETNA CROSSROADS VP
Value at beginning of period $13.600 $12.970 $12.945(3)
Value at end of period $14.840 $13.600 $12.970
Number of accumulation units
outstanding at end of period 122,393 168,964 2,786
AETNA GROWTH VP
Value at beginning of period $17.989 $12.674(4)
Value at end of period $24.039 $17.989
Number of accumulation units
outstanding at end of period 550,970 194,081
AETNA GROWTH AND
INCOME VP
Value at beginning of period $16.713 $14.744 $11.465 $10.000(1)
Value at end of period $19.429 $16.713 $14.744 $11.465
Number of accumulation units
outstanding at end of period 12,501,599 9,871,041 362,675 13,125
AETNA HIGH YIELD VP
Value at beginning of period $9.228 $9.149(5)
Value at end of period $9.781 $9.228
Number of accumulation units
outstanding at end of period 11,322 9,211
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.880 $14.491 $14.289(6)
Value at end of period $23.235 $18.880 $14.491
Number of accumulation units
Outstanding at end of period 1,544,113 648,540 29
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.909 $7.996(5)
Value at end of period $12.508 $10.909
Number of accumulation units
outstanding at end of period 62,742 24,016
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.831 $9.580(7)
Value at end of period $9.686 $8.831
Number of accumulation units
outstanding at end of period 63,842 27,047
AETNA INTERNATIONAL VP
Value at beginning of period $9.781 $10.061(8)
Value at end of period $14.656 $9.781
Number of accumulation units
outstanding at end of period 54,742 14,898
AETNA LEGACY VP
Value at beginning of period $13.084 $12.358 $12.242(9)
Value at end of period $13.874 $13.084 $12.358
Number of accumulation units
outstanding at end of period 197,881 190,406 64
</TABLE>
75
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
AETNA MONEY MARKET VP
<S> <C> <C> <C> <C>
Value at beginning of period $11.202 $10.729 $10.274 $10.000(1)
Value at end of period $11.654 $11.202 $10.729 $10.274
Number of accumulation units
outstanding at end of period 2,142,834 1,039,909 65,496 1,551
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.888 $9.214(5)
Value at end of period $8.429 $8.888
Number of accumulation units
outstanding at end of period 11,150 6,500
AETNA SMALL COMPANY VP
Value at beginning of period $13.692 $14.234(10)
Value at end of period $17.737 $13.692
Number of accumulation units
outstanding at end of period 405,202 404,068
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.099 $12.765(4)
Value at end of period $19.059 $16.099
Number of accumulation units
outstanding at end of period 94,639 98,683
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.821(11)
Value at end of period $13.777
Number of accumulation units
outstanding at end of period 13,134
AIM V.I. GROWTH FUND
Value at beginning of period $9.382(11)
Value at end of period $12.090
Number of accumulation units
outstanding at end of period 32,099
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.939(11)
Value at end of period $11.736
Number of accumulation units
outstanding at end of period 160,745
AIM V.I. VALUE FUND
Value at beginning of period $9.747(11)
Value at end of period $11.526
Number of accumulation units
outstanding at end of period 43,172
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.945 $12.983 $12.982(12)
Value at end of period $16.606 $14.945 $12.983
Number of accumulation units
outstanding at end of period 178,990 108,344 25,620
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.160 $13.718 $13.438(12)
Value at end of period $15.960 $15.160 $13.718
Number of accumulation units
outstanding at end of period 363,066 409,327 29,808
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.489 $12.663 $10.358 $10.000(1)
Value at end of period $23.797 $17.489 $12.663 $10.358
Number of accumulation units
outstanding at end of period 1,055,742 581,798 61,043 21
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.143 $11.774 $11.818(6)
Value at end of period $18.559 $13.143 $11.774
Number of accumulation units
outstanding at end of period 53,000 44,183 1,294
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.776 $13.814 $11.239 $10.000(1)
Value at end of period $21.868 $17.776 $13.814 $11.239
Number of accumulation units
outstanding at end of period 1,508,807 1,138,180 139,417 20,020
</TABLE>
76
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $14.096 $10.604 $9.507 $10.000(1)
Value at end of period $31.457 $14.096 $10.604 $9.507
Number of accumulation units
outstanding at end of period 1,788,826 997,760 106,350 17,055
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.841 $13.420 $13.490(12)
Value at end of period $22.390 $17.841 $13.420
Number of accumulation units
outstanding at end of period 695,263 184,550 5,846
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $13.026 $12.059 $10.857(13)
Value at end of period $13.104 $13.026 $12.059
Number of accumulation units
outstanding at end of period 460,612 414,151 12,527
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $17.770 $13.231 $10.929(13)
Value at end of period $25.332 $17.770 $13.231
Number of accumulation units
outstanding at end of period 535,269 220,151 17,098
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $17.545 $13.746 $11.366 $10.000(1)
Value at end of period $28.567 $17.545 $13.746 $11.366
Number of accumulation units
outstanding at end of period 2,675,141 2,151,202 207,630 36,305
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.606 $12.072 $13.838(12)
Value at end of period $10.851 $9.606 $12.072
Number of accumulation units
outstanding at end of period 87,038 75,695 12,963
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.036 $9.484(14)
Value at end of period $15.747 $10.036
Number of accumulation units
outstanding at end of period 20,246 5,395
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.912 $9.991(8)
Value at end of period $10.091 $9.912
Number of accumulation units
outstanding at end of period 12,847 7,329
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.644 $12.467 $12.287(6)
Value at end of period $23.045 $15.644 $12.467
Number of accumulation units
outstanding at end of period 416,660 291,492 68,968
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.750 $9.932 $10.054(6)
Value at end of period $19.045 $12.750 $9.932
Number of accumulation units
outstanding at end of period 2,526,497 2,223,125 180,890
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.619 $8.720 $8.890(6)
Value at end of period $13.040 $10.619 $8.720
Number of accumulation units
outstanding at end of period 854,700 741,693 55,616
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.574 $11.512 $11.367(6)
Value at end of period $21.289 $13.574 $11.512
Number of accumulation units
outstanding at end of period 868,603 715,389 80,978
</TABLE>
77
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.829 $13.321 $13.052(6)
Value at end of period $20.381 $16.829 $13.321
Number of accumulation units
outstanding at end of period 666,142 767,053 65,906
</TABLE>
- -----------------
(1) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was
first utilized.
(2) Funds were first received in this option during July 1997.
(3) Funds were first received in this option during September 1997.
(4) Funds were first received in this option during January 1998.
(5) Funds were first received in this option during September 1998.
(6) Funds were first received in this option during November 1997.
(7) Funds were first received in this option during July 1998.
(8) Funds were first received in this option during May 1998.
(9) Funds were first received in this option during February 1997.
(10) Funds were first received in this option during February 1998.
(11) Funds were first received in this option during May 1999.
(12) Funds were first received in this option during October 1997.
(13) Funds were first received in this option during January 1997.
(14) Funds were first received in this option during August 1998.
78
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VI
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.05% and 1.10%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
--------------------------------------------- --------------------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.039 $13.602 $11.629(1) $14.020 $13.590 $13,275(2)
Value at end of period $15.886 $14.039 $13.602 $15.857 $14.020 $13.590
Number of accumulation units
outstanding at end of period 33,325 55,886 24,508 29,411 9,573 42
AETNA BALANCED VP, INC.
Value at beginning of period $15.279 $13.204 $12.677(3) $15.259 $13.194 $12.915(2)
Value at end of period $17.177 $15.279 $13.204 $17.146 $15.259 $13.194
Number of accumulation units
outstanding at end of period 103,305 61,615 4,205 79,953 10,484 294
AETNA BOND VP
Value at beginning of period $12.038 $11.249 $10.587(1) $12.022 $11.240 $11.219(4)
Value at end of period $11.824 $12.038 $11.249 $11.803 $12.022 $11.240
Number of accumulation units
outstanding at end of period 54,350 50,220 11,619 24,571 2,532 6
AETNA CROSSROADS VP
Value at beginning of period $13.582 $12.959 $11.292(1) $13.564 $12.949 $12.904(2)
Value at end of period $14.813 $13.582 $12.959 $14.786 $13.564 $12.949
Number of accumulation units
outstanding at end of period 40,690 38,257 12,847 51,462 14,611 14
AETNA GROWTH VP
Value at beginning of period $17.974 $13.192 $13.184(5) $17.958 $13.188 $13.325(2)
Value at end of period $24.006 $17.974 $13.192 $23.973 $17.958 $13.188
Number of accumulation units
outstanding at end of period 44,979 23,219 31 14,643 1,761 37
AETNA GROWTH AND
INCOME VP
Value at beginning of period $16.691 $14.732 $12.312(1) $16.669 $14.720 $14.520(2)
Value at end of period $19.393 $16.691 $14.732 $19.358 $16.669 $14.720
Number of accumulation units
outstanding at end of period 341,405 326,490 44,425 143,472 33,836 570
AETNA HIGH YIELD VP
Value at beginning of period $9.225 $9.995(6) $9.222 $9.096(7)
Value at end of period $9.772 $9.225 $9.764 $9.222
Number of accumulation units
outstanding at end of period 447 110 51 10
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.859 $14.481 $14.043(3) $18.837 $14.472 $14.078(2)
Value at end of period $23.196 $18.859 $14.481 $23.158 $18.837 $14.472
Number of accumulation units
Outstanding at end of period 61,200 51,170 1,083 65,999 10,488 215
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.906 $9.624(8) $10.902 $9.772(9)
Value at end of period $12.498 $10.906 $12.487 $10.902
Number of accumulation units
outstanding at end of period 460 168 1,327 3
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.827 $9.530(8) $8.476(10)
Value at end of period $9.677 $8.827 $9.669
Number of accumulation units
outstanding at end of period 1,538 330 1,596
AETNA INTERNATIONAL VP
Value at beginning of period $9.778 $8.935(11) $9.800(10)
Value at end of period $14.643 $9.778 $14.631
Number of accumulation units
outstanding at end of period 417 182 767
</TABLE>
79
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.05% Total Charges
--------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $13.067 $12.348 $11.009(1)
Value at end of period $13.848 $13.067 $12.348
Number of accumulation units
outstanding at end of period 38,755 62,453 6,221
AETNA MONEY MARKET VP
Value at beginning of period $11.187 $10.720 $10.322(1)
Value at end of period $11.632 $11.187 $10.720
Number of accumulation units
outstanding at end of period 47,453 43,461 1,863
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.885 $9.899(6)
Value at end of period $8.421 $8.885
Number of accumulation units
outstanding at end of period 171 131
AETNA SMALL COMPANY VP
Value at beginning of period $13.680 $13.674 $12.485(3)
Value at end of period $17.713 $13.680 $13.674
Number of accumulation units
outstanding at end of period 6,350 5,235 125
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.085 $13.281 $12.796(5)
Value at end of period $19.033 $16.085 $13.281
Number of accumulation units
outstanding at end of period 4,556 3,648 17
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.877(13)
Value at end of period $13.772
Number of accumulation units
outstanding at end of period 611
AIM V.I. GROWTH FUND
Value at beginning of period $9.632(13)
Value at the of period $12.085
Number of accumulation units
outstanding at end of period 957
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.842(15)
Value at end of period $11.732
Number of accumulation units
outstanding at end of period 10,546
AIM V.I. VALUE FUND
Value at beginning of period $10.384(14)
Value at end of period $11.522
Number of accumulation units
outstanding at end of period 3,085
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.926 $12.972 $12.278(3)
Value at end of period $16.576 $14.926 $12.972
Number of accumulation units
outstanding at end of period 8,581 25,822 766
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.140 $13.706 $11.435(1)
Value at end of period $15.931 $15.140 $13.706
Number of accumulation units
outstanding at end of period 62,832 81,062 34,010
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.466 $12.653 $10.988(1)
Value at end of period $23.754 $17.466 $12.653
Number of accumulation units
outstanding at end of period 96,712 65,095 22,425
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.126 $11.764 $10.798(1)
Value at end of period $18.525 $13.126 $11.764
Number of accumulation units
outstanding at end of period 7,698 9,113 3,858
<CAPTION>
1.10% Total Charges
--------------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $13.050 $12.338 $12.223(12)
Value at end of period $13.823 $13.050 $12.338
Number of accumulation units
outstanding at end of period 23,031 3,369 851
AETNA MONEY MARKET VP
Value at beginning of period $11.172 $10.711 $10.663(2)
Value at end of period $11.611 $11.172 $10.711
Number of accumulation units
outstanding at end of period 25,798 6,784 145
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.882 $9.159(7)
Value at end of period $8.414 $8.882
Number of accumulation units
outstanding at end of period 383 16
AETNA SMALL COMPANY VP
Value at beginning of period $13.668 $13.669 $13.331(2)
Value at end of period $17.689 $13.668 $13.669
Number of accumulation units
outstanding at end of period 7,548 6,323 650
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.071 $13.276 $12.952(2)
Value at end of period $19.007 $16.071 $13.276
Number of accumulation units
outstanding at end of period 1,480 1,219 46
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $10.778(14)
Value at end of period $13.767
Number of accumulation units
outstanding at end of period 251
AIM V.I. GROWTH FUND
Value at beginning of period $10.484(14)
Value at the of period $12.081
Number of accumulation units
outstanding at end of period 34
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $10.373(14)
Value at end of period $11.728
Number of accumulation units
outstanding at end of period 281
AIM V.I. VALUE FUND
Value at beginning of period $10.159(14)
Value at end of period $11.518
Number of accumulation units
outstanding at end of period 500
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.906 $13.068(16)
Value at end of period $16.546 $14.906
Number of accumulation units
outstanding at end of period 10,085 1,048
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.120 $13.695 $13.343(2)
Value at end of period $15.902 $15.120 $13.695
Number of accumulation units
outstanding at end of period 39,294 4,490 589
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $17.443 $12.643 $12.740(2)
Value at end of period $23.710 $17.443 $12.643
Number of accumulation units
outstanding at end of period 59,684 13,478 416
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.108 $11.754 $11.651(4)
Value at end of period $18.492 $13.108 $11.754
Number of accumulation units
outstanding at end of period 9,933 1,860 5
</TABLE>
80
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
-------------------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.753 $13.802 $12.865(3) $17.729 $13.791 $13.502(2)
Value at end of period $21.828 $17.753 $13.802 $21.789 $17.729 $13.791
Number of accumulation units
outstanding at end of period 82,955 90,950 9,650 45,203 5,768 110
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $14.077 $10.596 $8.894(1) $14.059 $10.587 $10.337(2)
Value at end of period $31.400 $14.077 $10.596 $31.343 $14.059 $10.587
Number of accumulation units
outstanding at end of period 157,088 114,249 38,785 64,071 3,032 269
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.818 $13.409 $11.587(1) $17.794 $13.398 $13.138(2)
Value at end of period $22.350 $17.818 $13.409 $22.309 $17.794 $13.398
Number of accumulation units
outstanding at end of period 78,372 37,434 14,527 28,646 4,709 256
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $13.009 $12.049 $11.571(3) $12.992 $12.039 $11.872(2)
Value at end of period $13.080 $13.009 $12.049 $13.056 $12.992 $12.039
Number of accumulation units
outstanding at end of period 25,083 13,507 700 7,040 2,780 12
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $17.747 $13.220 $13.078(3) $17.723 $13.209 $12.995(2)
Value at end of period $25.286 $17.747 $13.220 $25.240 $17.723 $13.209
Number of accumulation units
outstanding at end of period 49,883 45,804 7,726 25,768 2,555 498
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $17.522 $13.735 $12.089(1) $17.499 $13.724 $13.565(2)
Value at end of period $28.515 $17.522 $13.735 $28.463 $17.499 $13.724
Number of accumulation units
outstanding at end of period 199,510 202,768 59,673 65,151 14,918 971
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.594 $12.062 $12.407(3) $9.581 $8.980(11)
Value at end of period $10.831 $9.594 $12.062 $10.812 $9.581
Number of accumulation units
outstanding at end of period 3,378 2,961 791 1,354 31
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.032 $9.801(6) $10.029 $10.160(8)
Value at end of period $15.734 $10.032 $15.721 $10.029
Number of accumulation units
outstanding at end of period 494 180 966 27
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.908 $9.582(17) $9.905 $9.720(7)
Value at end of period $10.082 $9.908 $10.074 $9.905
Number of accumulation units
outstanding at end of period 243 5 783 22
PPI MFS CAPITAL
OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.623 $12.457 $12.277(2) $15.602 $14.846(18)
Value at end of period $23.003 $15.623 $12.457 $22.961 $15.602
Number of accumulation units
outstanding at end of period 10,435 25,784 1,514 3,853 1,488
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.733 $9.923 $10.046(2) $12.716 $9.915 $10.039(2)
Value at end of period $19.011 $12.733 $9.923 $18.976 $12.716 $9.915
Number of accumulation units
outstanding at end of period 110,360 102,952 26,577 34,563 6,017 16
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.605 $8.713 $8.883(2) $10.591 $10.008(19)
Value at end of period $13.016 $10.605 $8.713 $12.993 $10.591
Number of accumulation units
outstanding at end of period 22,552 40,974 1,465 20,445 121
</TABLE>
81
<PAGE>
<TABLE>
<CAPTION>
1.05% Total Charges 1.10% Total Charges
--------------------------------------- -----------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.556 $11.503 $11.358(2) $13.538 $11.633(16)
Value at end of period $21.250 $13.556 $11.503 $21.211 $13.538
Number of accumulation units
outstanding at end of period 21,942 29,581 8,780 7,463 3,300
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.806 $13.310 $13.042(2) $16.784 $14.258(20)
Value at end of period $20.344 $16.806 $13.310 $20.307 $16.784
Number of accumulation units
outstanding at end of period 61,161 51,412 18,429 23,320 2,769
</TABLE>
- -----------------
(1) Funds were first received in this option during February 1997.
(2) Funds were first received in this option during November 1997.
(3) Funds were first received in this option during July 1997.
(4) Funds were first received in this option during December 1997.
(5) Funds were first received in this option during August 1997.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during September 1998.
(8) Funds were first received in this option during July 1998.
(9) Funds were first received in this option during December 1998.
(10) Funds were first received in this option during February 1999.
(11) Funds were first received in this option during August 1998.
(12) Funds were first received in this option during January 1997.
(13) Funds were first received in this option during May 1999.
(14) Funds were first received in this option during July 1999.
(15) Funds were first received in this option during June 1999.
(16) Funds were first received in this option during January 1998.
(17) Funds were first received in this option during October 1998.
(18) Funds were first received in this option during April 1998.
(19) Funds were first received in this option during May 1998.
(20) Funds were first received in this option during February 1998.
82
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VII
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.15%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.15% Total Charges
-------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $14.002 $13.579 $11.525(1)
Value at end of period $15.828 $14.002 $13.579
Number of accumulation units outstanding at end
of period 43,436 26,911 6,392
AETNA BALANCED VP, INC.
Value at beginning of period $15.239 $13.183 $11.130(1)
Value at end of period $17.115 $15.239 $13.183
Number of accumulation units outstanding at end
of period 224,431 275,681 250,060
AETNA BOND VP
Value at beginning of period $12.006 $11.231 $10.476(1)
Value at end of period $11.781 $12.006 $11.231
Number of accumulation units outstanding at end
of period 88,391 106,179 89,517
AETNA CROSSROADS VP
Value at beginning of period $13.546 $12.938 $11.182(1)
Value at end of period $14.759 $13.546 $12.938
Number of accumulation units outstanding at end
of period 34,308 24,882 7,129
AETNA GROWTH VP
Value at beginning of period $17.943 $13.183 $13.348(2)
Value at end of period $23.940 $17.943 $13.183
Number of accumulation units outstanding at end
of period 25,113 14,989 118
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.467 $14.708 $11.805(1)
Value at end of period $19.323 $16.647 $14.708
Number of accumulation units outstanding at end
of period 514,328 581,226 508,938
AETNA HIGH YIELD VP
Value at beginning of period $9.218 $9.959(3)
Value at end of period $9.756 $9.218
Number of accumulation units outstanding at end
of period 363 1,725
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.815 $14.463 $11.663(1)
Value at end of period $23.120 $18.815 $14.463
Number of accumulation units outstanding at end
of period 49,777 26,210 5,517
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.898 $9.105(4)
Value at end of period $12.477 $10.898
Number of accumulation units outstanding at end
of period 933 96
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.821 $9.569(5)
Value at end of period $9.661 $8.821
Number of accumulation units outstanding at end
of period 3,035 1,234
AETNA INTERNATIONAL VP
Value at beginning of period $9.771 $9.763(4)
Value at end of period $14.618 $9.771
Number of accumulation units outstanding at end
of period 726 167
AETNA LEGACY VP
Value at beginning of period $13.033 $12.328 $10.927(1)
Value at end of period $13.798 $13.033 $12.328
Number of accumulation units outstanding at end
of period 19,762 23,052 21,027
</TABLE>
83
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.15% Total Charges
------------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.158 $10.702 $10.264 $10.000(6)
Value at end of period $11.590 $11.158 $10.702 $10.264
Number of accumulation units outstanding at end
of period 87,883 76,594 44,265 9,856
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.879 $10.034(5)
Value at end of period $8.407 $8.879
Number of accumulation units outstanding at end
of period 3,933 2,845
AETNA SMALL COMPANY VP
Value at beginning of period $13.657 $13.664 $13.709(2)
Value at end of period $17.665 $13.657 $13.664
Number of accumulation units outstanding at end
of period 12,873 9,141 119
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.057 $13.271 $13.244(2)
Value at end of period $18.982 $16.057 $13.271
Number of accumulation units outstanding at end
of period 5,973 4,025 47
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $9.693(7)
Value at end of period $13.762
Number of accumulation units outstanding at end
of period 518
AIM V.I. GROWTH FUND
Value at beginning of period $9.380(7)
Value at end of period $12.077
Number of accumulation units outstanding at end
of period 1,062
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.204(8)
Value at end of period $11.724
Number of accumulation units outstanding at end
of period 464
AIM V.I. VALUE FUND
Value at beginning of period $9.747(7)
Value at end of period $11.514
Number of accumulation units outstanding at end
of period 115
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.886 $12.951 $11.071(1)
Value at end of period $16.515 $14.886 $12.951
Number of accumulation units outstanding at end
of period 53,770 48,553 37,416
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.100 $13.684 $10.805 $10.000(6)
Value at end of period $15.873 $15.100 $13.684 $10.805
Number of accumulation units outstanding at end
of period 77,294 62,313 40,977 4,215
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.420 $12.632 $10.348 $10.000(6)
Value at end of period $23.667 $17.420 $12.632 $10.348
Number of accumulation units outstanding at end
of period 107,839 70,232 43,953 4,472
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.091 $11.745 $10.662(9)
Value at end of period $18.458 $13.091 $11.745
Number of accumulation units outstanding at end
of period 10,801 9,778 6,203
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.706 $13.780 $11.228 $10.000(6)
Value at end of period $21.749 $17.706 $13.780 $11.228
Number of accumulation units outstanding at end
of period 112,281 85,591 56,042 4,169
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.040 $10.578 $9.498 $10.000(6)
Value at end of period $31.286 $14.040 $10.578 $9.498
Number of accumulation units outstanding at end
of period 150,087 103,123 77,340 4,932
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.771 $13.387 $11.090 $10.000(6)
Value at end of period $22.269 $17.771 $13.387 $11.090
Number of accumulation units outstanding at end
of period 71,007 36,442 15,461 13
</TABLE>
84
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.15% Total Charges
------------------------------------------------------------------
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.975 $12.029 $10.882(1)
Value at end of period $13.032 $12.975 $12.029
Number of accumulation units outstanding at end
of period 15,890 8,869 4,140
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.700 $13.198 $11.138(1)
Value at end of period $25.194 $17.700 $13.198
Number of accumulation units outstanding at end
of period 56,211 39,188 22,179
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.476 $13.712 $11.355 $10.000(6)
Value at end of period $28.411 $17.476 $13.712 $11.355
Number of accumulation units outstanding at end
of period 163,390 130,326 77,286 9
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.568 $12.042 $11.865(1)
Value at end of period $10.792 $9.568 $12.042
Number of accumulation units outstanding at end
of period 8,711 12,059 12,454
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.025 $9.974(5)
Value at end of period $15.707 $10.025
Number of accumulation units outstanding at end
of period 775 295
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.902 $10.052(5)
Value at end of period $10.065 $9.902
Number of accumulation units outstanding at end
of period 1,186 689
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.582 $12.437 $12.258(9)
Value at end of period $22.919 $15.582 $12.437
Number of accumulation units outstanding at end
of period 77,458 75,920 79,382
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.699 $9.907 $10.031(9)
Value at end of period $18.942 $12.699 $9.907
Number of accumulation units outstanding at end
of period 200,163 196,772 165,668
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.577 $8.698 $8.869(9)
Value at end of period $12.969 $10.577 $8.698
Number of accumulation units outstanding at end
of period 129,349 135,559 122,863
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.520 $11.484 $11.341(9)
Value at end of period $21.173 $13.520 $11.484
Number of accumulation units outstanding at end
of period 80,398 88,163 77,528
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO
Value at beginning of period $16.762 $13.288 $13.021(9)
Value at end of period $20.270 $16.762 $13.288
Number of accumulation units outstanding at end
of period 62,597 60,127 42,110
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1997.
(2) Funds were first received in this option during September 1997.
(3) Funds were first received in this option during June 1998.
(4) Funds were first received in this option during August 1998.
(5) Funds were first received in this option during July 1998.
(6) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first received
in this option or when the applicable daily asset charge was first utilized.
(7) Funds were first received in this option during May 1999.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during November 1997.
85
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE VIII
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.20%
AND THOSE ISSUED SINCE 1996 WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.20% Total Charges Issued Since 1996 with 1.25% Total Charges
------------------------------------ -----------------------------------------------
1999 1998 1997 1999 1998 1997
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.983 $13.587(1) $13.965 $13.557 $12.564(2)
Value at end of period $15.799 $13.983 $15.770 $13.965 $13.557
Number of accumulation units
outstanding at end of period 47,132 90,247 1,617 1,249 253
AETNA BALANCED VP, INC.
Value at beginning of period $15.219 $13.676(3) $15.199 $13.161 $11.921(2)
Value at end of period $17.083 $15.219 $17.052 $15.199 $13.161
Number of accumulation units
outstanding at end of period 33,948 33,673 2,089 1,535 133
AETNA BOND VP
Value at beginning of period $11.990 $11.283(3) $11.975 $11.217(1)
Value at end of period $11.760 $11.990 $11.738 $11.975
Number of accumulation units
outstanding at end of period 26,798 23,608 521 1,197
AETNA CROSSROADS VP
Value at beginning of period $13.528 $12.915(1) $13.510 $12.917 $12.024(2)
Value at end of period $14.732 $13.528 $14.705 $13.510 $12.917
Number of accumulation units
outstanding at end of period 436,389 499,874 9,107 8,075 93
AETNA GROWTH VP
Value at beginning of period $17.927 $14.173(3) $17.912 $12.876(1)
Value at end of period $23.908 $17.927 $23.875 $17.912
Number of accumulation units
outstanding at end of period 7,995 7,333 7,486 5,419
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.625 $14.696 $13.746(4) $16.603 $14.684 $12.851(5)
Value at end of period $19.288 $16.625 $14.696 $19.253 $16.603 $14.684
Number of accumulation units
outstanding at end of period 192,381 224,761 25 35,468 35,133 1,646
AETNA HIGH YIELD VP
Value at beginning of period $9.215 $9.935(6) $9.348(7)
Value at end of period $9.748 $9.215 $9.739
Number of accumulation units
outstanding at end of period 119 132 260
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.794 $14.453 $13.642(4) $18.772 $14.444 $14.070(8)
Value at end of period $23.082 $18.794 $14.453 $23.044 $18.772 $14.444
Number of accumulation units
outstanding at end of period 32,936 28,911 24 6,043 594 10
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.894 $9.662(6) $10.154(9)
Value at end of period $12.466 $10.894 $12.455
Number of accumulation units
outstanding at end of period 1,115 452 1,234
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.818 $9.244(6)
Value at end of period $9.653 $8.818
Number of accumulation units
outstanding at end of period 1,733 989
AETNA INTERNATIONAL VP
Value at beginning of period $9.768 $9.973(6) $10.086(9)
Value at end of period $14.606 $9.768 $14.594
Number of accumulation units
outstanding at end of period 354 123 126
AETNA LEGACY VP
Value at beginning of period $13.015 $12.606(3) $12.998 $12.308 $12.362(10)
Value at end of period $13.773 $13.015 $13.748 $12.998 $12.308
Number of accumulation units
outstanding at end of period 27,715 61,973 5,897 5,866 2
</TABLE>
86
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.20% Total Charges
----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.143 $10.761(3)
Value at end of period $11.569 $11.143
Number of accumulation units
outstanding at end of period 40,450 15,147
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.876 $9.633(6)
Value at end of period $8.400 $8.876
Number of accumulation units
outstanding at end of period 914 372
AETNA SMALL COMPANY VP
Value at beginning of period $13.645 $14.380(3)
Value at end of period $17.641 $13.645
Number of accumulation units
outstanding at end of period 18,254 24,930
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.044 $14.033(3)
Value at end of period $18.956 $16.044
Number of accumulation units
outstanding at end of period 12,127 12,115
AIM V.I. CAPITAL APPRECIATION
FUND
Value a beginning of period $10.195(11)
Value at end of period $13.758
Number of accumulation units
outstanding at end of period 218
AIM V.I. GROWTH FUND
Value a beginning of period $9.493(13)
Value at end of period $12.073
Number of accumulation units
outstanding at end of period 167
AIM V.I. GROWTH AND INCOME
FUND
Value a beginning of period $9.601(15)
Value at end of period $11.720
Number of accumulation units
outstanding at end of period 179
AIM V.I. VALUE FUND
Value a beginning of period $9.848(11)
Value at end of period $11.510
Number of accumulation units
outstanding at end of period 156
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.867 $13.354(3)
Value at end of period $16.485 $14.867
Number of accumulation units
outstanding at end of period 6,433 2,926
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.080 $14.168(3)
Value at end of period $15.844 $15.080
Number of accumulation units
outstanding at end of period 21,440 13,584
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.397 $13.438(3)
Value at end of period $23.624 $17.397
Number of accumulation units
outstanding at end of period 55,527 58,305
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.074 $12.430(3)
Value at end of period $18.424 $13.074
Number of accumulation units
outstanding at end of period 2,471 5,797
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.683 $13.768 $12.889(2)
Value at end of period $21.710 $17.683 $13.768
Number of accumulation units
outstanding at end of period 29,986 29,528 27
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.022 $10.956(3)
Value at end of period $31,229 $14.022
Number of accumulation units
outstanding at end of period 67,583 43,050
<CAPTION>
Issued Since 1996 with 1.25% Total Charges
-----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.128 $10.746(3)
Value at end of period $11.548 $11.128
Number of accumulation units
outstanding at end of period 11,404 6,649
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.830(11)
Value at end of period $8.393
Number of accumulation units
outstanding at end of period 1
AETNA SMALL COMPANY VP
Value at beginning of period $13.633 $13.203(1)
Value at end of period $17.617 $13.633
Number of accumulation units
outstanding at end of period 8,928 7,548
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.030 $12.844(1)
Value at end of period $18.930 $16.030
Number of accumulation units
outstanding at end of period 2,022 1,234
AIM V.I. CAPITAL APPRECIATION
FUND
Value a beginning of period $12.638(12)
Value at end of period $13.753
Number of accumulation units
outstanding at end of period 17
AIM V.I. GROWTH FUND
Value a beginning of period $9.783(14)
Value at end of period $12.069
Number of accumulation units
outstanding at end of period 23
AIM V.I. GROWTH AND INCOME
FUND
Value a beginning of period $9.470(14)
Value at end of period $11.716
Number of accumulation units
outstanding at end of period 22
AIM V.I. VALUE FUND
Value a beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL BALANCED
PORTFOLIO
Value at beginning of period $14.847 $12.930 $12.790(16)
Value at end of period $16.455 $14.847 $12.930
Number of accumulation units
outstanding at end of period 270 51 6
FIDELITY VIP EQUITY-INCOME
PORTFOLIO
Value at beginning of period $15.061 $13.661 $13.299(16)
Value at end of period $15.815 $15.061 $13.661
Number of accumulation units
outstanding at end of period 11,533 8,741 6
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.374 $12.612 $11.704(2)
Value at end of period $23.581 $17.374 $12.612
Number of accumulation units
outstanding at end of period 23,472 9,906 214
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.056 $11.726 $12.512(8)
Value at end of period $18.391 $13.056 $11.726
Number of accumulation units
outstanding at end of period 6,718 688 22
FIDELITY VIP II CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $17.659 $13.757 $11.902(5)
Value at end of period $21.670 $17.659 $13.757
Number of accumulation units
outstanding at end of period 13,062 11,737 390
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $14.003 $10.561 $9.646(2)
Value at end of period $31.172 $14.003 $10.561
Number of accumulation units
outstanding at end of period 17,486 4,812 262
</TABLE>
87
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.20% Total Charges
---------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.747 $14.246(3)
Value at end of period $22.228 $17.747
Number of accumulation units
outstanding at end of period 22,044 21,105
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $12.958 $12.212(3)
Value at end of period $13.008 $12.958
Number of accumulation units
outstanding at end of period 6,648 13,990
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.677 $14.218(3)
Value at end of period $25.148 $17.677
Number of accumulation units
outstanding at end of period 32,113 19,754
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.453 $13.701 $13.856(2)
Value at end of period $28.360 $17.453 $13.701
Number of accumulation units
outstanding at end of period 50,750 46,824 27
LEXINGTON NATURAL RESOURCES
TRUST
Value at beginning of period $9.556 $11.980(6)
Value at end of period $10.772 $9.556
Number of accumulation units
outstanding at end of period 2,437 2,826
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $9.897(17)
Value at end of period $15.694
Number of accumulation units
outstanding at end of period 132
OPPENHEIMER STRATEGIC BOND
FUND/VA
Value at beginning of period $9.898 $9.905(18)
Value at end of period $10.057 $9.898
Number of accumulation units
outstanding at end of period 89 57
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.561 $13.387(3)
Value at end of period $22.878 $15.561
Number of accumulation units
outstanding at end of period 19,495 19,782
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.683 $11.093(3)
Value at end of period $18.907 $12.683
Number of accumulation units
outstanding at end of period 69,822 88,261
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.563 $9.310(3)
Value at end of period $12.945 $10.563
Number of accumulation units
outstanding at end of period 33,672 49,879
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $13.502 $12.274(3)
Value at end of period $21.134 $13.502
Number of accumulation units
outstanding at end of period 15,623 13,604
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.740 $14.232(3)
Value at end of period $20.233 $16.740
Number of accumulation units
outstanding at end of period 24,522 45,971
<CAPTION>
Issued Since 1996 with 1.25% Total Charges
--------------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $17.724 $13.370(1)
Value at end of period $22.188 $17.724
Number of accumulation units
outstanding at end of period 7,932 798
JANUS ASPEN FLEXIBLE INCOME
PORTFOLIO
Value at beginning of period $12.940 $12.112(1)
Value at end of period $12.985 $12.940
Number of accumulation units
outstanding at end of period 1,754 126
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.653 $13.177 $13.270(8)
Value at end of period $25.103 $17.653 $13.177
Number of accumulation units
outstanding at end of period 9,890 5,365 32
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.430 $13.690 $13.125(2)
Value at end of period $28.308 $17.430 $13.690
Number of accumulation units
outstanding at end of period 19,060 10,441 273
LEXINGTON NATURAL RESOURCES
TRUST
Value at beginning of period $9.543 $12.022 $11.717(2)
Value at end of period $10.753 $9.543 $12.022
Number of accumulation units
outstanding at end of period 71 53 35
OPPENHEIMER GLOBAL SECURITIES
FUND/VA
Value at beginning of period $11.614(13)
Value at end of period $15.681
Number of accumulation units
outstanding at end of period 8
OPPENHEIMER STRATEGIC BOND
FUND/VA
Value at beginning of period $9.869(7)
Value at end of period $10.048
Number of accumulation units
outstanding at end of period 9
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.541 $12.394(1)
Value at end of period $22.836 $15.541
Number of accumulation units
outstanding at end of period 3,709 1,060
PPI MFS EMERGING EQUITIES
PORTFOLIO
Value at beginning of period $12.666 $9.891 $10.015(16)
Value at end of period $18.873 $12.666 $9.891
Number of accumulation units
outstanding at end of period 26,072 21,617 99
PPI MFS RESEARCH GROWTH
PORTFOLIO
Value at beginning of period $10.549 $8.597(1)
Value at end of period $12.922 $10.549
Number of accumulation units
outstanding at end of period 3,583 3,244
PPI SCUDDER INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $13.485 $11.465 $11.323(16)
Value at end of period $21.096 $13.485 $11.465
Number of accumulation units
outstanding at end of period 3,170 2,493 189
PPI T. ROWE PRICE GROWTH
EQUITY PORTFOLIO
Value at beginning of period $16.718 $13.156((1)
Value at end of period $20.196 $16.718
Number of accumulation units
outstanding at end of period 1,434 1,239
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1998.
(2) Funds were first received in this option during June 1997.
(3) Funds were first received in this option during February 1998.
88
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during July 1997.
(5) Funds were first received in this option during May 1997.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during January 1999.
(8) Funds were first received in this option during September 1997.
(9) Funds were first received in this option during March 1999.
(10) Funds were first received in this option during October 1997.
(11) Funds were first received in this option during September 1999.
(12) Funds were first received in this option during December 1999.
(13) Funds were first received in this option during August 1999.
(14) Funds were first received in this option during October 1999.
(15) Funds were first received in this option during June 1999.
(16) Funds were first received in this option during November 1997.
(17) Funds were first received in this option during February 1999.
(18) Funds were first received in this option during December 1998.
89
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE IX
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS SINCE 1996
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.30% AND 1.40%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods
ended December 31, 1999, 1998 and 1997 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1.30% Total Charges
-------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.946 $13.546 $11.759(1)
Value at end of period $15.742 $13.946 $13.546
Number of accumulation units outstanding at end
of period 2,120 1,424 855
AETNA BALANCED VP, INC.
Value at beginning of period $15.179 $13.150 $11.717(3)
Value at end of period $17.021 $15.179 $13.150
Number of accumulation units outstanding at end
of period 113 8 459
AETNA BOND VP
Value at beginning of period $11.959 $11.203 $10.974(1)
Value at end of period $11.717 $11.959 $11.203
Number of accumulation units outstanding at end
of period 36,650 59,443 279
AETNA CROSSROADS VP
Value at beginning of period $13.492 $12.906 $11.380(1)
Value at end of period $14.679 $13.492 $12.906
Number of accumulation units outstanding at end
of period 870 521 641
AETNA GROWTH VP
Value at beginning of period $18.880(4)
Value at end of period $23.843
Number of accumulation units outstanding at end
of period 381
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.581 $14.672 $12.519(1)
Value at end of period $19.218 $16.581 $14.672
Number of accumulation units outstanding at end
of period 4,575 2,880 3,082
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.751 $14.435 $11.470(7)
Value at end of period $23.006 $18.751 $14.435
Number of accumulation units outstanding at end
of period 14,317 12,423 8,665
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.887 $9.805(8)
Value at end of period $12.445 $10.887
Number of accumulation units outstanding at end
of period 385 41
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.812 $8.198(8)
Value at end of period $9.637 $8.812
Number of accumulation units outstanding at end
of period 468 49
AETNA INTERNATIONAL VP
Value at beginning of period $10.019(4)
Value at end of period $14.582
Number of accumulation units outstanding at end
of period 149
AETNA LEGACY VP
Value at beginning of period $12.981 $12.298 $11.401(3)
Value at end of period $13.723 $12.981 $12.298
Number of accumulation units outstanding at end
of period 1,546 30,755 74
<CAPTION>
1.40% Total Charges
-----------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.910 $14.731(2)
Value at end of period $15.685 $13.910
Number of accumulation units outstanding at end
of period 457 136
AETNA BALANCED VP, INC.
Value at beginning of period $15.139 $14.278(2)
Value at end of period $16.960 $15.139
Number of accumulation units outstanding at end
of period 1,122 533
AETNA BOND VP
Value at beginning of period $11.927 $11.423(2)
Value at end of period $11.674 $11.927
Number of accumulation units outstanding at end
of period 324 189
AETNA CROSSROADS VP
Value at beginning of period $13.457 $13.846(2)
Value at end of period $14.625 $13.457
Number of accumulation units outstanding at end
of period 1,479 501
AETNA GROWTH VP
Value at beginning of period $17.865 $15.724(2)
Value at end of period $23.778 $17.865
Number of accumulation units outstanding at end
of period 746 211
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.537 $16.562(5)
Value at end of period $19.148 $16.537
Number of accumulation units outstanding at end
of period 2,977 934
AETNA HIGH YIELD VP
Value at beginning of period $9.555(6)
Value at end of period $9.715
Number of accumulation units outstanding at end
of period 30
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.708 $16.556(2)
Value at end of period $22.930 $18.708
Number of accumulation units outstanding at end
of period 1,399 173
AETNA INDEX PLUS MID CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA INTERNATIONAL VP
Value at beginning of period $10.925(9)
Value at end of period $14.557
Number of accumulation units outstanding at end
of period 21
AETNA LEGACY VP
Value at beginning of period $12.666(10)
Value at end of period $13.673
Number of accumulation units outstanding at end
of period 125
</TABLE>
90
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.30% Total Charges
-----------------------------------------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.114 $10.676 $10.358(7)
Value at end of period $11.527 $11.114 $10.676
Number of accumulation units outstanding at end
of period 5,569 13,000 8,302
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA SMALL COMPANY VP
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.016 $15.827(12)
Value at end of period $18.904 $16.016
Number of accumulation units outstanding at end
of period 192 88
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $9.857(13)
Value at end of period $13.748
Number of accumulation units outstanding at end
of period 54
AIM V.I. GROWTH FUND
Value at beginning of period $9.916(14)
Value at end of period $12.064
Number of accumulation units outstanding at end
of period 105
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $10.636(15)
Value at end of period $11.712
Number of accumulation units outstanding at end
of period 893
AIM V.I. VALUE FUND
Value at beginning of period $10.847(15)
Value at end of period $11.494
Number of accumulation units outstanding at end
of period 10
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.827 $12.919 $11.742(3)
Value at end of period $16.426 $14.827 $12.919
Number of accumulation units outstanding at end
of period 44 13 44
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.041 $13.650 $10.942(7)
Value at end of period $15.786 $15.041 $13.650
Number of accumulation units outstanding at end
of period 4,118 3,612 7,817
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.351 $12.601 $10.724(1)
Value at end of period $23.538 $17.351 $12.601
Number of accumulation units outstanding at end
of period 7,251 2,636 2,031
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.039 $11.716 $11.785(1)
Value at end of period $18.357 $13.039 $11.716
Number of accumulation units outstanding at end
of period 469 408 348
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.636 $13.746 $11.031(7)
Value at end of period $21.631 $17.636 $13.746
Number of accumulation units outstanding at end
of period 12,867 10,681 7,728
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.985 $10.552 $8.944(1)
Value at end of period $31.116 $13.985 $10.552
Number of accumulation units outstanding at end
of period 9,014 3,586 2,527
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.701 $13.354 $12.113(3)
Value at end of period $22.147 $17.701 $13.354
Number of accumulation units outstanding at end
of period 2,769 668 369
<CAPTION>
1.40% Total Charges
-------------------------------------
1999 1998
---- ----
<S> <C> <C>
AETNA MONEY MARKET VP
Value at beginning of period $11.084 $10.821(2)
Value at end of period $11.485 $11.084
Number of accumulation units outstanding at end
of period 441 161
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.402(6)
Value at end of period $8.372
Number of accumulation units outstanding at end
of period 33
AETNA SMALL COMPANY VP
Value at beginning of period $13.598 $11.872(11)
Value at end of period $17.545 $13.598
Number of accumulation units outstanding at end
of period 283 72
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.988 $15.181(2)
Value at end of period $18.852 $15.988
Number of accumulation units outstanding at end
of period 136 39
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. GROWTH FUND
Value at beginning of period $10.959(15)
Value at end of period $12.056
Number of accumulation units outstanding at end
of period 3
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units outstanding at end
of period
AIM V.I. VALUE FUND
Value at beginning of period $10.003(16)
Value at end of period $11.486
Number of accumulation units outstanding at end
of period 507
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.950(4)
Value at end of period $16.366
Number of accumulation units outstanding at end
of period 508
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $15.001 $15.124(2)
Value at end of period $15.729 $15.001
Number of accumulation units outstanding at end
of period 1,189 2,077
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.305 $14.386(2)
Value at end of period $23.453 $17.305
Number of accumulation units outstanding at end
of period 6,554 4,116
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.005 $13.828(2)
Value at end of period $18.291 $13.005
Number of accumulation units outstanding at end
of period 156 113
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.590 $15.738(5)
Value at end of period $21.552 $17.590
Number of accumulation units outstanding at end
of period 3,062 1,990
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.948 $11.943(5)
Value at end of period $31.003 $13.948
Number of accumulation units outstanding at end
of period 2,357 1,441
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.654 $15.102(2)
Value at end of period $22.067 $17.654
Number of accumulation units outstanding at end
of period 1,224 564
</TABLE>
91
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1.30% Total Charges 1.40% Total Charges
------------------------------------------ ---------------------------------
1999 1998 1997 1999 1998
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.923 $12.225(17) $12.889 $12.375(2)
Value at end of period $12.961 $12.923 $12.914 $12.889
Number of accumulation units outstanding at end
of period 4,549 8,960 169 30
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.630 $13.166 $10.962(7) $17.584 $15.123(2)
Value at end of period $25.057 $17.630 $13.166 $24.966 $17.584
Number of accumulation units outstanding at end
of period 4,722 911 637 3,143 2,368
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $17.407 $13.679 $11.961(7) $17.361 $16.231(5)
Value at end of period $28.257 $17.407 $13.679 $28.154 $17.361
Number of accumulation units outstanding at end
of period 14,291 6,473 2,018 2,148 649
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.012 $10.678(7)
Value at end of period $9.340 $12.012
Number of accumulation units outstanding at end
of period 0 5
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.015 $9.965(12) $10.008 $10.041(18)
Value at end of period $15.668 $10.015 $15.641 $10.008
Number of accumulation units outstanding at end
of period 31 139 31 14
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $15.520 $12.406 $12.230(19) $15.479 $14.631(2)
Value at end of period $22.794 $15.520 $12.406 $22.712 $15.479
Number of accumulation units outstanding at end
of period 4,032 1,074 237 95 46
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.649 $9.883 $10.007(19) $12.616 $11.707(2)
Value at end of period $18.838 $12.649 $9.883 $18.770 $12.616
Number of accumulation units outstanding at end
of period 7,480 5,462 3,595 1,615 928
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.535 $8.677 $8.848(19) $10.507 $9.977(2)
Value at end of period $12.898 $10.535 $8.677 $12.851 $10.507
Number of accumulation units outstanding at end
of period 6,221 5,146 1,788 406 220
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $13.467 $11.456 $11.314(19) $13.431 $13.542(2)
Value at end of period $21.057 $13.467 $11.456 $20.981 $13.431
Number of accumulation units outstanding at end
of period 462 313 200 182 125
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.696 $13.256 $12.991(19) $16.652 $15.190(2)
Value at end of period $20.160 $16.696 $13.256 $20.086 $16.652
Number of accumulation units outstanding at end
of period 3,215 2,748 1,649 2,478 1,525
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1997.
(2) Funds were first received in this option during May 1998.
(3) Funds were first received in this option during June 1997.
(4) Funds were first received in this option during February 1999.
(5) Funds were first received in this option during April 1998.
(6) Funds were first received in this option during May 1999.
(7) Funds were first received in this option during April 1997.
(8) Funds were first received in this option during November 1998.
(9) Funds were first received in this option during July 1999.
(10) Funds were first received in this option during March 1999.
(11) Funds were first received in this option during September 1998.
(12) Funds were first received in this option during December 1998.
(13) Funds were first received in this option during October 1999.
(14) Funds were first received in this option during September 1999.
(15) Funds were first received in this option during November 1999.
(16) Funds were first received in this option during August 1999.
(17) Funds were first received in this option during March 1998.
(18) Funds were first received in this option during July 1998.
(19) Funds were first received in this option during November 1997.
92
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE X
FOR CONTRACTS ISSUED UNDER 403(b), 401(a) AND 401(k) PLANS SINCE 1996
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.50%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the four-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $13.873 $13.502 $11.422(1)
Value at end of period $15.628 $13.873 $13.502
Number of accumulation units outstanding at end
of period 12,770 14,280 9,985
AETNA BALANCED VP, INC
Value at beginning of period $15.099 $13.107 $11.009(1)
Value at end of period $16.898 $15.099 $13.107
Number of accumulation units outstanding at end
of period 10,946 9,091 7,997
AETNA BOND VP
Value at beginning of period $11.896 $11.166 $10.442(1)
Value at end of period $11.632 $11.896 $11.166
Number of accumulation units outstanding at end
of period 6,253 27,680 2,940
AETNA CROSSROADS VP
Value at beginning of period $13.421 $12.864 $11.093(1)
Value at end of period $14.572 $13.421 $12.864
Number of accumulation units outstanding at end
of period 15,405 22,768 30,806
AETNA GROWTH VP
Value at beginning of period $17.834 $13.027(2)
Value at end of period $23.713 $17.834
Number of accumulation units outstanding at end
of period 5,473 3,470
AETNA GROWTH AND INCOME VP
Value at beginning of period $16.493 $14.624 $11.429 $10.000(3)
Value at end of period $19.078 $16.493 $14.624 $11.429
Number of accumulation units outstanding at end
of period 55,797 47,950 40,309 5
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.665 $14.397 $11.374(1)
Value at end of period $22.855 $18.665 $14.397
Number of accumulation units outstanding at end
of period 22,097 16,814 3,156
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.872 $9.216(4)
Value at end of period $12.403 $10.872
Number of accumulation units outstanding at end
of period 161 45
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.800 $7.150(4)
Value at end of period $9.604 $8.800
Number of accumulation units outstanding at end
of period 233 78
AETNA INTERNATIONAL VP
Value at beginning of period $10.050(5)
Value at end of period $14.532
Number of accumulation units outstanding at end
of period 36
AETNA LEGACY VP
Value at beginning of period $12.913 $12.257 $10.835(6)
Value at end of period $13.623 $12.913 $12.257
Number of accumulation units outstanding at end
of period 7,896 14,097 14,983
AETNA MONEY MARKET VP
Value at beginning of period $11.055 $10.641 $10.249(1)
Value at end of period $11.443 $11.055 $10.641
Number of accumulation units outstanding at end
of period 14,503 13,218 13,868
AETNA SMALL COMPANY VP
Value at beginning of period $13.574 $13.629 $13.952(7)
Value at end of period $17.497 $13.574 $13.629
Number of accumulation units outstanding at end
of period 3,951 3,581 47
</TABLE>
93
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.960 $13.237 $12.103(8)
Value at end of period $18.801 $15.960 $13.237
Number of accumulation units outstanding at end
of period 2,344 2,432 795
AIM V.I. GROWTH FUND
Value at beginning of period $9.898(9)
Value at end of period $12.048
Number of accumulation units outstanding at end
of period 135
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.550(10)
Value at end of period $11.695
Number of accumulation units outstanding at end
of period 22
AIM V.I. VALUE FUND
Value at beginning of period $10.442(11)
Value at end of period $11.502
Number of accumulation units outstanding at end
of period 67
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $14.749 $12.877 $10.955(1)
Value at end of period $16.306 $14.749 $12.877
Number of accumulation units outstanding at end
of period 3,026 1,709 1,007
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $14.961 $13.606 $10.905(1)
Value at end of period $15.672 $14.961 $13.606
Number of accumulation units outstanding at end
of period 11,235 9,414 9,207
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $17.259 $12.560 $10.537(1)
Value at end of period $23.368 $17.259 $12.560
Number of accumulation units outstanding at end
of period 30,213 12,956 2,793
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $12.971 $11.678 $10.566(1)
Value at end of period $18.224 $12.971 $11.678
Number of accumulation units outstanding at end
of period 956 468 107
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $17.543 $13.701 $11.436(1)
Value at end of period $21.474 $17.543 $13.701
Number of accumulation units outstanding at end
of period 14,452 11,751 8,704
JANUS ASPEN AGGRESSIVE GROWTH
PORTFOLIO
Value at beginning of period $13.911 $10.518 $9.477 $10.000(3)
Value at end of period $30.890 $13.911 $10.518 $9.477
Number of accumulation units outstanding at end
of period 19,942 13,650 12,648 9
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $17.607 $13.310 $11.136(1)
Value at end of period $21.987 $17.607 $13.310
Number of accumulation units outstanding at end
of period 31,263 20,319 2,801
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $12.855 $11.960 $10.955(6)
Value at end of period $12.867 $12.855 $11.960
Number of accumulation units outstanding at end
of period 669 248 118
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $17.537 $13.123 $11.002(1)
Value at end of period $24.875 $17.537 $13.123
Number of accumulation units outstanding at end
of period 10,931 8,842 5,724
JANUS ASPEN WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $17.315 $13.634 $11.483(1)
Value at end of period $28.052 $17.315 $13.634
Number of accumulation units outstanding at end
of period 34,244 23,085 16,828
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $9.480 $11.973 $11.712(1)
Value at end of period $10.655 $9.480 $11.973
Number of accumulation units outstanding at end
of period 147 318 627
</TABLE>
94
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.878 $9.973(12)
Value at end of period $10.006 $9.878
Number of accumulation units outstanding at end
of period 69 3
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO
Value at beginning of period $15.438 $12.365 $12.192(13)
Value at end of period $22.629 $15.438 $12.365
Number of accumulation units outstanding at end
of period 1,541 1,256 80
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $12.582 $9.850 $9.976(13)
Value at end of period $18.702 $12.582 $9.850
Number of accumulation units outstanding at end
of period 7,942 5,349 2,413
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $10.479 $8.649 $8.821(13)
Value at end of period $12.805 $10.479 $8.649
Number of accumulation units outstanding at end
of period 1,992 1,814 442
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $13.396 $11.418 $11.279(13)
Value at end of period $20.905 $13.396 $11.418
Number of accumulation units outstanding at end
of period 3,469 3,208 2,665
PPI T. ROWE PRICE GROWTH PORTFOLIO
Value at beginning of period $16.608 $13.212 $12.951(13)
Value at end of period $20.013 $16.608 $13.212
Number of accumulation units outstanding at end
of period 7,740 5,824 3,802
</TABLE>
- -----------------
(1) Funds were first received in this option during January 1997.
(2) Funds were first received in this option during January 1998.
(3) The initial accumulation unit value was established during May 1996 when
the fund became available under the contract, when funds were first
received in this option or when the applicable daily asset charge was first
utilized.
(4) Funds were first received in this option during August 1998.
(5) Funds were first received in this option during January 1999.
(6) Funds were first received in this option during April 1997.
(7) Funds were first received in this option during September 1997.
(8) Funds were first received in this option during July 1997.
(9) Funds were first received in this option during July 1999.
(10) Funds were first received in this option during October 1999.
(11) Funds were first received in this option during November 1999.
(12) Funds were first received in this option during May 1998.
(13) Funds were first received in this option during November 1997.
95
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XI
FOR CONTRACTS ISSUED UNDER 403(b) PLANS AND DEFERRED COMPENSATION PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.886 $15.422 $13.025 $10.673
Value at end of period $17.940 $15.886 $15.422 $13.025
Number of accumulation units
outstanding at end of period 2,759,063 3,508,677 3,543,367 1,314,997
AETNA BALANCED VP
Value at beginning of period $21.723 $18.811 $15.551 $13.673
Value at end of period $24.372 $21.723 $18.811 $15.551
Number of accumulation units
outstanding at end of period 21,610,375 25,990,902 34,194,804 36,147,028
AETNA BOND VP
Value at beginning of period $14.137 $13.238 $12.377 $12.098
Value at end of period $13.859 $14.137 $13.238 $12.377
Number of accumulation units
outstanding at end of period 11,928,359 15,101,998 18,047,780 20,036,622
AETNA CROSSROADS VP
Value at beginning of period $15.120 $14.456 $12.450 $10.612
Value at end of period $16.458 $15.120 $14.456 $12.450
Number of accumulation units
outstanding at end of period 2,306,431 2,863,812 2,469,082 918,336
AETNA GROWTH VP
Value at beginning of period $17.912 $13.173 $11.635(4)
Value at end of period $23.875 $17.912 $13.173
Number of accumulation units
outstanding at end of period 3,505,798 2,395,680 41,928
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.094 $22.194 $17.302 $14.077
Value at end of period $29.100 $25.094 $22.194 $17.302
Number of accumulation units
outstanding at end of period 107,941,232 134,233,828 177,627,474 185,328,132
AETNA HIGH YIELD VP
Value at beginning of period $9.212 $9.969(6)
Value at end of period $9.739 $9.212
Number of accumulation units
outstanding at end of period 151,581 91,056
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.772 $14.444 $10.924 $10.000(7)
Value at end of period $23.044 $18.772 $14.444 $10.924
Number of accumulation units
outstanding at end of period 10,058,181 7,100,483 4,796,644 879,588
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.891 $10.107(6)
Value at end of period $12.455 $10.891
Number of accumulation units
outstanding at end of period 395,150 146,921
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.815 $9.996(6)
Value at end of period $9.645 $8.815
Number of accumulation units
outstanding at end of period 407,203 253,184
AETNA INTERNATIONAL VP
Value at beginning of period $9.765 $10.182(6)
Value at end of period $14.594 $9.765
Number of accumulation units
outstanding at end of period 271,052 97,660
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
96
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.248 $13.491 $11.930 $10.580
Value at end of period $15.070 $14.248 $13.491 $11.930
Number of accumulation units
outstanding at end of period 1,420,931 11,971,281 1,624,842 513,590
AETNA MONEY MARKET VP
Value at beginning of period $12.447 $11.951 $11.473 $11.026
Value at end of period $12.917 $12.447 $11.951 $11.473
Number of accumulation units
outstanding at end of period 11,010,659 10,102,496 12,191,085 13,898,826
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.873 $10.126(6)
Value at end of period $8.393 $8.873
Number of accumulation units
outstanding at end of period 140,481 90,949
AETNA SMALL COMPANY
VP
Value at beginning of period $13.633 $13.654 $12.299(9)
Value at end of period $17.617 $13.633 $13.654
Number of accumulation units
outstanding at end of period 1,598,682 1,696,714 253,548
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.030 $13.261 $12.913(10)
Value at end of period $18.930 $16.030 $13.261
Number of accumulation units
outstanding at end of period 987,707 1,079,291 100,928
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $10.217(11)
Value at end of period $13.753
Number of accumulation units
outstanding at end of period 77,470
AIM V.I. GROWTH FUND
Value at beginning of period $9.513(11)
Value at end of period $12.069
Number of accumulation units
outstanding at end of period 240,556
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.627(11)
Value at end of period $11.716
Number of accumulation units
outstanding at end of period 470,277
AIM V.I. VALUE FUND
Value at beginning of period $9.747(11)
Value at end of period $11.506
Number of accumulation units
outstanding at end of period 405,286
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.485 $17.840 $15.044 $13.527
Value at end of period $22.705 $20.485 $17.840 $15.044
Number of accumulation units
outstanding at end of period 1,118,008 1,306,652 1,499,989 1,313,324
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.459 $15.837 $12.518 $11.092
Value at end of period $18.334 $17.459 $15.837 $12.518
Number of accumulation units
outstanding at end of period 5,366,553 6,281,077 7,111,490 5,007,706
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.155 $13.904 $11.402 $10.066
Value at end of period $25.999 $19.155 $13.904 $11.402
Number of accumulation units
outstanding at end of period 9,652,436 7,144,438 6,586,698 5,171,098
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.662 $12.269 $11.137 $9.961
Value at end of period $19.243 $13.662 $12.269 $11.137
Number of accumulation units
outstanding at end of period 676,303 651,566 718,565 487,709
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $10.000(1)
Value at end of period $10.580
Number of accumulation units
outstanding at end of period 143,637
AETNA MONEY MARKET VP
Value at beginning of period $10.528 $10.241 $10.048 $33.812(8) $32.138 $30.012
Value at end of period $11.026 $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 12,999,680 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $10.554 $11.036 $10.278 $10.000(12)
Value at end of period $13.527 $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 966,098 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(2)
Value at end of period $11.092
Number of accumulation units
outstanding at end of period 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.066
Number of accumulation units
outstanding at end of period 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $9.961
Number of accumulation units
outstanding at end of period 196,090
</TABLE>
97
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.601 $15.270 $12.455 $10.397
Value at end of period $24.053 $19.601 $15.270 $12.455
Number of accumulation units
outstanding at end of period 9,498,614 9,575,608 11,399,666 6,812,870
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $20.951 $15.801 $14.202 $13.322
Value at end of period $46.640 $20.951 $15.801 $14.202
Number of accumulation units
outstanding at end of period 12,224,096 7,536,062 9,271,525 8,835,470
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $19.908 $15.012 $12.449 $10.850
Value at end of period $24.922 $19.908 $15.012 $12.449
Number of accumulation units
outstanding at end of period 5,686,066 3,192,160 1,911,789 996,510
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.487 $14.373 $13.022 $12.077
Value at end of period $15.540 $15.487 $14.373 $13.022
Number of accumulation units
outstanding at end of period 1,078,342 1,213,451 934,053 619,287
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.651 $15.414 $12.716 $10.870
Value at end of period $29.366 $20.651 $15.414 $12.716
Number of accumulation units
outstanding at end of period 5,434,098 2,995,268 3,100,436 2,018,527
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.288 $16.720 $13.860 $10.877
Value at end of period $34.574 $21.288 $16.720 $13.860
Number of accumulation units
outstanding at end of period 15,478,181 14,519,620 17,194,687 8,715,825
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.336 $15.541 $14.686 $11.720
Value at end of period $13.900 $12.336 $15.541 $14.686
Number of accumulation units
outstanding at end of period 489,113 755,984 1,786,409 966,482
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.018 $10.079(6)
Value at end of period $15.681 $10.018
Number of accumulation units
outstanding at end of period 184,292 39,441
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.895 $10.015(6)
Value at end of period $10.048 $9.895
Number of accumulation units
outstanding at end of period 90,616 71,074
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.145 $19.291 $19.016(14)
Value at end of period $35.480 $24.145 $19.291
Number of accumulation units
outstanding at end of period 2,035,825 2,186,996 2,879,845
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.114 $14.927 $15.114(14)
Value at end of period $28.481 $19.114 $14.927
Number of accumulation units
outstanding at end of period 9,740,294 11,377,408 16,549,322
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.758 $13.795 $14.067(14)
Value at end of period $20.527 $16.758 $13.795
Number of accumulation units
outstanding at end of period 7,196,329 8,758,123 11,539,850
<CAPTION>
1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.397
Number of accumulation units
outstanding at end of period 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.581 $10.000(13)
Value at end of period $13.322 $10.581
Number of accumulation units
outstanding at end of period 4,887,060 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.850
Number of accumulation units
outstanding at end of period 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.873 $10.000(13)
Value at end of period $12.077 $9.873
Number of accumulation units
outstanding at end of period 315,361 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $9.832 $10.000(12)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
98
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $19.978 $16.986 $16.776(14)
Value at end of period $31.255 $19.978 $16.986
Number of accumulation units
outstanding at end of period 3,509,645 4,030,904 6,242,299
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.146 $14.400 $14.112(14)
Value at end of period $21.922 $18.146 $14.400
Number of accumulation units
outstanding at end of period 5,814,568 6,541,819 8,296,964
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995 when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(4) Funds were first received in this option during June 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during May 1998.
(7) The initial accumulation unit value was established at $10.000 during
August 1996, when the portfolio became available under the contract.
(8) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account value
were not changed as a result of the conversion.
(9) Funds were first received in this option during July 1997.
(10) Funds were first received in this option during August 1997.
(11) Funds were first received in this option during May 1999.
(12) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under the
contract.
(13) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(14) Funds were first received in this option during November 1997.
99
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XII
FOR MULTIPLE OPTION CONTRACTS ISSUED TO
SAN BERNARDINO COUNTY AND MACOMB COUNTY
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.25%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from the
financial statements of the separate account, which have been audited by KPMG
LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.886 $15.422 $13.291(1)
Value at end of period $17.940 $15.886 $15.422
Number of accumulation units
outstanding at end of period 33,852 21,430 380
AETNA BALANCED VP, INC
Value at beginning of period $28.524 $24.700 $20.419 $17.954
Value at end of period $32.002 $28.524 $24.700 $20.419
Number of accumulation units
outstanding at end of period 2,155,445 2,294,877 2,160,305 2,716,641
AETNA BOND VP
Value at beginning of period $54.819 $51.330 $47.992 $46.913
Value at end of period $53.738 $54.819 $51.330 $47.992
Number of accumulation units
outstanding at end of period 867,416 994,987 959,336 835,724
AETNA CROSSROADS VP
Value at beginning of period $15.120 $14.456 $12.577(1)
Value at end of period $16.458 $15.120 $14.456
Number of accumulation units
outstanding at end of period 30,738 31,468 873
AETNA GROWTH VP
Value at beginning of period $13.597 $11.392(2)
Value at end of period $18.124 $13.597
Number of accumulation units
outstanding at end of period 781 17
AETNA GROWTH AND
INCOME VP
Value at beginning of period $245.765 $217.359 $169.448 $137.869
Value at end of period $284.994 $245.765 $217.359 $169.448
Number of accumulation units
outstanding at end of period 1,555,542 1,747,097 1,826,355 2,071,139
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.772 $14.444 $14.493(3)
Value at end of period $23.044 $18.772 $14.444
Number of accumulation units
outstanding at end of period 2,748,955 1,302,825 17,771
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $11.338 $9.928(4)
Value at end of period $12.967 $11.338
Number of accumulation units
outstanding at end of period 73,984 35,201
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $ 9.157 $10.193(4)
Value at end of period $10.019 $9.157
Number of accumulation units
outstanding at end of period 118,433 81,388
AETNA LEGACY VP
Value at beginning of period $14.248 $13.491 $12.296(5)
Value at end of period $15.070 $14.248 $13.491
Number of accumulation units
outstanding at end of period 46,462 95,526 2,279
AETNA MONEY MARKET VP
Value at beginning of period $42.883 $41.174 $39.528 $37.988
Value at end of period $44.501 $42.883 $41.174 $39.528
Number of accumulation units
outstanding at end of period 845,679 564,537 455,502 597,656
<CAPTION>
1995 1994 1993 1992 1991 1990
-------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA BALANCED VP, INC
Value at beginning of period $14.270 $14.519 $13.379 $12.736 $10.896 $10.437
Value at end of period $17.954 $14.270 $14.519 $13.379 $12.736 $10.896
Number of accumulation units
outstanding at end of period 9,193,181 21,990,186 30,784,750 34,802,433 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $40.173 $42.283 $39.038 $36.789 $31.192 $28.943
Value at end of period $46.913 $40.173 $42.283 $39.038 $36.789 $31.192
Number of accumulation units
outstanding at end of period 2,377,622 5,108,720 8,210,666 8,507,292 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $105.558 $107.925 $102.383 $ 97.165 $ 77.845 $76.311
Value at end of period $137.869 $105.558 $107.925 $102.383 $ 97.165 $77.845
Number of accumulation units
outstanding at end of period 6,364,000 13,966,072 21,148,863 24,201,565 20,948,226 18,362,906
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $36.271 $35.282 $34.619 $33.812 $32.138 $30.012
Value at end of period $37.988 $36.271 $35.282 $34.619 $33.812 $32.138
Number of accumulation units
outstanding at end of period 1,836,260 3,679,802 5,086,515 7,534,662 8,430,082 10,220,110
</TABLE>
100
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
--------- -------- -------- ---------
<S> <C> <C> <C> <C>
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $12.088 $11.472(4)
Value at end of period $14.274 $12.088
Number of accumulation units
outstanding at end of period 74,768 33,957
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $27.186 $23.675 $19.965 $17.951
Value at end of period $30.131 $27.186 $23.675 $19.965
Number of accumulation units
outstanding at end of period 880,319 917,567 929,282 898,279
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $18.285 $16.587 $13.110 $11.617
Value at end of period $19.201 $18.285 $16.587 $13.110
Number of accumulation units
outstanding at end of period 2,271,494 2,533,673 2,139,178 1,454,755
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.406 $14.087 $11.843(7)
Value at end of period $26.340 $19.406 $14.087
Number of accumulation units
outstanding at end of period 78 72 29
FIDELITY VIP HIGH
INCOME PORTFOLIO
Value at beginning of period $9.023
Value at end of period $9.638
Number of accumulation units
outstanding at end of period 194,440
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $11.400 $10.197
Value at end of period $12.560 $11.400
Number of accumulation units
outstanding at end of period 0 1,302
FIDELITY VIP II ASSET
MANAGER PORTFOLIO
Value at beginning of period $16.719
Value at end of period $18.343
Number of accumulation units
outstanding at end of period 1,511,789
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $22.177 $17.276 $14.092 $11.763
Value at end of period $27.214 $22.177 $17.276 $14.092
Number of accumulation units
outstanding at end of period 3,780,287 3,333,320 2,706,862 1,522,169
FIDELITY VIP II INDEX 500
PORTFOLIO
Value at beginning of period $23.650
Value at end of period $28.147
Number of accumulation units
outstanding at end of period 4,354,723
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $24.098 $18.174 $16.334 $15.323
Value at end of period $53.644 $24.098 $18.174 $16.334
Number of accumulation units
outstanding at end of period 3,274,450 2,142,130 1,939,607 1,893,718
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $19.914 $15.016 $12.453 $10.853
Value at end of period $24.929 $19.914 $15.016 $12.453
Number of accumulation units
outstanding at end of period 476 3,698 7,873 231
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.548 $14.430 $13.074 $12.124
Value at end of period $15.601 $15.548 $14.430 $13.074
Number of accumulation units
outstanding at end of period 6,629 8,967 5,211 3,761
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $22.529 $16.816 $13.872 $11.859
Value at end of period $32.036 $22.529 $16.816 $13.872
Number of accumulation units
outstanding at end of period 2,721,885 1,354,047 1,109,942 663,945
<CAPTION>
1995 1994 1993 1992 1991 1990
-------- ------- -------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C>
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $13.990 $14.640 $13.726 $12.913 $11.233 $10.568
Value at end of period $17.951 $13.990 $14.640 $13.726 $12.913 $11.233
Number of accumulation units
outstanding at end of period 856,361 743,464 705,415 503,006 355,851 148,576
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(6)
Value at end of period $11.617
Number of accumulation units
outstanding at end of period 628,582
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP HIGH
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $10.197
Number of accumulation units
outstanding at end of period
FIDELITY VIP II ASSET
MANAGER PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(6)
Value at end of period $11.763
Number of accumulation units
outstanding at end of period 525,476
FIDELITY VIP II INDEX 500
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $12.169 $10.000(9)
Value at end of period $15.323 $12.169
Number of accumulation units
outstanding at end of period 1,280,953 393,553
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $10.853
Number of accumulation units
outstanding at end of period 161
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.911 $10.000(10)
Value at end of period $12.124 $9.911
Number of accumulation units
outstanding at end of period 3,345 1,555
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $11.859
Number of accumulation units
outstanding at end of period 109,717
</TABLE>
101
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
--------- ------- --------- ---------
<S> <C> <C> <C> <C>
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $23.797 $18.690 $15.493 $12.158
Value at end of period $38.648 $23.797 $18.690 $15.493
Number of accumulation units
outstanding at end of period 5,548,674 4,687,167 3,873,511 2,090,908
LEXINGTON EMERGING
MARKETS FUND
Value at beginning of period $ 5.470
Value at end of period $12.315
Number of accumulation units
outstanding at end of period 940,817
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $11.433 $14.403 $13.611 $10.862
Value at end of period $12.882 $11.433 $14.403 $13.611
Number of accumulation units
outstanding at end of period 437,491 534,962 650,486 587,248
MFS TOTAL RETURN
SERIES
Value at beginning of period $10.531
Value at end of period $10.720
Number of accumulation units
outstanding at end of period 63,822
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.303 $10.077(11)
Value at end of period $16.126 $10.303
Number of accumulation units
outstanding at end of period 59,571 20,548
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.935 $10.055(4)
Value at end of period $10.089 $9.935
Number of accumulation units
outstanding at end of period 173,219 100,555
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $29.339 $23.440 $23.106(12)
Value at end of period $43.112 $29.339 $23.440
Number of accumulation units
outstanding at end of period 2,448,587 2,244,308 2,018,219
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.268 $15.046 $15.236(12)
Value at end of period $28.710 $19.268 $15.046
Number of accumulation units
outstanding at end of period 3,024,975 3,101,880 2,707,904
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $14.528 $11.960 $12.195(12)
Value at end of period $17.796 $14.528 $11.960
Number of accumulation units
outstanding at end of period 194,296 1,379,653 232,418
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.829 $17.709 $17.490(12)
Value at end of period $32.585 $20.829 $17.709
Number of accumulation units
outstanding at end of period 2,807,485 2,962,631 3,237,710
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $20.929 $16.608 $16.276(12)
Value at end of period $25.283 $20.929 $16.608
Number of accumulation units
outstanding at end of period 1,549,310 1,564,888 1,317,058
<CAPTION>
1995 1994 1993 1992 1991 1990
--------- -------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(8)
Value at end of period $12.158
Number of accumulation units
outstanding at end of period 314,653
LEXINGTON EMERGING
MARKETS FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $9.412 $10.071 $9.193 $9.018 $9.608 $11.441
Value at end of period $10.862 $9.412 $10.071 $9.193 $9.018 $9.608
Number of accumulation units
outstanding at end of period 530,562 533,016 341,771 198,338 144,139 75,052
MFS TOTAL RETURN
SERIES
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
102
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(1) Funds were first received in this option during February 1997.
(2) Funds were first received in this option during September 1998.
(3) Funds were first received in this option during December 1997.
(4) Funds were first received in this option during May 1998.
(5) Funds were first received in this option during February 1997.
(6) The initial accumulation unit value was established at $10.000 during May
1995, when the fund became available under the contract.
(7) Funds were first received in this option during January 1997.
(8) The initial accumulation unit value was established at $10.000 during July
1995, when the fund became available under the contract.
(9) The initial accumulation unit value was established at $10.000 during June
1994, when funds were first received in this option.
(10) The initial accumulation unit value was established at $10.000 during
November 1994, when funds were first received in this option.
(11) Funds were first received in this option during June 1998.
(12) Funds were first received in this option during November 1997.
103
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIII
FOR CONTRACTS ISSUED UNDER 403(b) PLANS AND DEFERRED COMPENSATION PLANS
WITH TOTAL SEPARATE ACCOUNT CHARGES OF 1.50%
(INCLUDING A 0.25% ADMINISTRATIVE EXPENSE CHARGE BEGINNING APRIL 7, 1997)
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997
------- --------- -------
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.818 $15.394 $13.020(1)
Value at end of period $17.818 $15.818 $15.394
Number of accumulation units outstanding at end of period 40,362 38,620 29,840
AETNA BALANCED VP
Value at beginning of period $21.629 $18.776 $15.674(1)
Value at end of period $24.206 $21.629 $18.776
Number of accumulation units outstanding at end of period 352,495 385,862 478,117
AETNA BOND VP
Value at beginning of period $14.076 $13.213 $12.302(1)
Value at end of period $13.764 $14.076 $13.213
Number of accumulation units outstanding at end of period 186,303 199,388 215,650
AETNA CROSSROADS VP
Value at beginning of period $15.055 $14.430 $12.449(1)
Value at end of period $16.346 $15.055 $14.430
Number of accumulation units outstanding at end of period 32,067 32,997 26,483
AETNA GROWTH VP(10)
Value at beginning of period $17.834 $13.149 $12.739(2)
Value at end of period $23.713 $17.834 $13.149
Number of accumulation units outstanding at end of period 63,831 36,839 3,326
AETNA GROWTH AND INCOME VP
Value at beginning of period $24.986 $22.153 $17.861(1)
Value at end of period $28.902 $24.986 $22.153
Number of accumulation units outstanding at end of period 1,449,638 1,587,351 1,699,982
AETNA HIGH YIELD VP
Value at beginning of period $9.196 $9.616(3)
Value at end of period $9.698 $9.196
Number of accumulation units outstanding at end of period 707 65
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.691 $14.418 $11.345(1)
Value at end of period $22.887 $18.691 $14.418
Number of accumulation units outstanding at end of period 118,788 68,841 27,945
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.872 $9.946(4)
Value at end of period $12.403 $10.872
Number of accumulation units outstanding at end of period 3,733 203
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.800 $9.775(5)
Value at end of period $9.604 $8.800
Number of accumulation units outstanding at end of period 1,705 598
AETNA INTERNATIONAL VP
Value at beginning of period $9.748 $9.737(6)
Value at end of period $14.532 $9.748
Number of accumulation units outstanding at end of period 4,118 1,095
AETNA LEGACY VP
Value at beginning of period $14.187 $13.467 $11.873(1)
Value at end of period $14.967 $14.187 $13.467
Number of accumulation units outstanding at end of period 23,515 32,088 14,817
AETNA MONEY MARKET VP
Value at beginning of period $12.393 $11.929 $11.592(1)
Value at end of period $12.829 $12.393 $11.929
Number of accumulation units outstanding at end of period 136,761 123,429 176,703
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $8.857 $8.524(7)
Value at end of period $8.358 $8.857
Number of accumulation units outstanding at end of period 1,197 1,342
AETNA SMALL COMPANY VP
Value at beginning of period $13.574 $13.629 $13.629(2)
Value at end of period $17.497 $13.574 $13.629
Number of accumulation units outstanding at end of period 18,033 21,070 82
</TABLE>
104
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
--------- ------- --------
<S> <C> <C> <C>
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $15.960 $13.237 $13.237(2)
Value at end of period $18.801 $15.960 $13.237
Number of accumulation units outstanding at end of period 12,803 15,870 84
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.165(8)
Value at end of period $13.729
Number of accumulation units outstanding at end of period 2,372
AIM V.I. GROWTH FUND
Value at beginning of period $10.209(10)
Value at end of period $12.048
Number of accumulation units outstanding at end of period 2,771
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.684(9)
Value at end of period $11.695
Number of accumulation units outstanding at end of period 5,151
AIM V.I. VALUE FUND
Value at beginning of period $9.842(9)
Value at end of period $11.486
Number of accumulation units outstanding at end of period 2,077
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $20.397 $17.808 $14.934(1)
Value at end of period $22.550 $20.397 $17.808
Number of accumulation units outstanding at end of period 27,661 24,487 20,521
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $17.384 $15.808 $12.711(1)
Value at end of period $18.209 $17.384 $15.808
Number of accumulation units outstanding at end of period 145,786 222,658 117,588
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $19.072 $13.879 $11.373(1)
Value at end of period $25.822 $19.072 $13.879
Number of accumulation units outstanding at end of period 200,009 228,969 104,982
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.603 $12.247 $11.253(1)
Value at end of period $19.112 $13.603 $12.247
Number of accumulation units outstanding at end of period 12,105 11,523 8,098
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $19.516 $15.242 $12.388(1)
Value at end of period $23.889 $19.516 $15.242
Number of accumulation units outstanding at end of period 170,565 157,444 146,381
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $20.861 $15.773 $12.594(1)
Value at end of period $46.323 $20.861 $15.773
Number of accumulation units outstanding at end of period 175,442 100,075 85,304
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $19.822 $14.984 $12.760(1)
Value at end of period $24.752 $19.822 $14.984
Number of accumulation units outstanding at end of period 84,774 53,980 19,967
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.420 $14.347 $13.025(1)
Value at end of period $15.434 $15.420 $14.347
Number of accumulation units outstanding at end of period 13,514 14,524 8,189
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $20.562 $15.386 $12.975(1)
Value at end of period $29.166 $20.562 $15.386
Number of accumulation units outstanding at end of period 96,294 56,525 53,182
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $21.196 $16.689 $14.439(1)
Value at end of period $34.339 $21.196 $16.689
Number of accumulation units outstanding at end of period 215,248 182,951 168,191
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.283 $15.512 $13.756(1)
Value at end of period $13.805 $12.283 $15.512
Number of accumulation units outstanding at end of period 10,231 14,342 26,426
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.001 $9.728(6)
Value at end of period $15.615 $10.001
Number of accumulation units outstanding at end of period 7,932 152
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.878 $9.666(11)
Value at end of period $10.006 $9.878
Number of accumulation units outstanding at end of period 234 11
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $24.041 $19.256 $18.985(12)
Value at end of period $35.239 $24.041 $19.256
Number of accumulation units outstanding at end of period 34,760 28,002 25,830
</TABLE>
105
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997
-------- -------- ---------
<S> <C> <C> <C>
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $19.032 $14.899 $15.090(12)
Value at end of period $28.288 $19.032 $14.899
Number of accumulation units outstanding at end of period 133,579 135,641 131,565
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $16.685 $13.770 $14.044(12)
Value at end of period $20.388 $16.685 $13.770
Number of accumulation units outstanding at end of period 139,056 146,728 149,523
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $19.892 $16.955 $16.749(12)
Value at end of period $31.043 $19.892 $16.955
Number of accumulation units outstanding at end of period 52,692 45,320 48,385
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $18.068 $14.374 $14.090(12)
Value at end of period $21.773 $18.068 $14.374
Number of accumulation units outstanding at end of period 93,176 91,620 79,799
</TABLE>
- -----------------
(1) Funds were first received in this option during April 1997.
(2) Funds were first received in this option during December 1997.
(3) Funds were first received in this option during August 1998.
(4) Funds were first received in this option during July 1998.
(5) Funds were first received in this option during May 1998.
(6) Funds were first received in this option during June 1998.
(7) Funds were first received in this option during September 1998.
(8) Funds were first received in this option during August 1999.
(9) Funds were first received in this option during June 1999.
(10) Funds were first received in this option during July 1999.
(11) Funds were first received in this option during November 1998.
(12) Funds were first received in this option during November 1997.
106
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIV
FOR CONTRACTS CONTAINING LIMITS ON FEES ISSUED UNDER 403(b) PLANS
AND DEFERRED COMPENSATION PLANS
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the three-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information.
<TABLE>
<CAPTION>
1999 1998 1997
------- --------- --------
<S> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $15.974 $15.453 $13.971(1)
Value at end of period $18.102 $15.974 $15.453
Number of accumulation units outstanding at end of period 7,679 9,888 10,257
AETNA BALANCED VP
Value at beginning of period $21.808 $18.837 $16.739(1)
Value at end of period $24.529 $21.808 $18.837
Number of accumulation units outstanding at end of period 343,842 429,954 454,232
AETNA BOND VP
Value at beginning of period $14.171 $13.249 $12.629(1)
Value at end of period $13.912 $14.171 $13.249
Number of accumulation units outstanding at end of period 347,131 421,225 453,723
AETNA CROSSROADS VP
Value at beginning of period $15.204 $14.485 $13.199(1)
Value at end of period $16.607 $15.204 $14.485
Number of accumulation units outstanding at end of period 47,768 50,297 50,297
AETNA GROWTH VP
Value at beginning of period $17.912 $13.173 $12.615(2)
Value at end of period $23.875 $17.912 $13.173
Number of accumulation units outstanding at end of period 48,373 25,257 1,565
AETNA GROWTH AND INCOME VP
Value at beginning of period $25.193 $22.226 $19.673(1)
Value at end of period $29.287 $25.193 $22.226
Number of accumulation units outstanding at end of period 4,958,303 5,670,691 6,093,102
AETNA HIGH YIELD VP
Value at beginning of period $9.212 $9.135(3)
Value at end of period $9.739 $9.212
Number of accumulation units outstanding at end of period 2,025 2,225
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $18.802 $14.452 $12.748(1)
Value at end of period $23.103 $18.802 $14.452
Number of accumulation units outstanding at end of period 80,552 48,459 13,748
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.815 $6.682(4)
Value at end of period $9.645 $8.815
Number of accumulation units outstanding at end of period 722 748
AETNA LEGACY VP
Value at beginning of period $14.327 $13.518 $12.496(1)
Value at end of period $15.206 $14.327 $13.518
Number of accumulation units outstanding at end of period 22,033 10,684 16,060
AETNA MONEY MARKET VP
Value at beginning of period $12.447 $11.951 $11.674(1)
Value at end of period $12.917 $12.447 $11.951
Number of accumulation units outstanding at end of period 515,621 553,915 591,901
AETNA SMALL COMPANY VP
Value at beginning of period $13.633 $13.654 $13.092(2)
Value at end of period $17.617 $13.633 $13.654
Number of accumulation units outstanding at end of period 7,350 4,297 1,779
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $16.030 $12.899(5)
Value at end of period $18.930 $16.030
Number of accumulation units outstanding at end of period 10,011 5,261
AIM V.I. CAPITAL APPRECIATION FUND
Value at beginning of period $10.649(6)
Value at end of period $13.759
Number of accumulation units outstanding at end of period 2,465
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.763(7)
Value at end of period $11.721
Number of accumulation units outstanding at end of period 4,408
AIM V.I. VALUE FUND
Value at beginning of period $9.778(8)
Value at end of period $11.511
Number of accumulation units outstanding at end of period 27,063
</TABLE>
107
<PAGE>
Condensed Financial Information (continued)
<TABLE>
<CAPTION>
1999 1998 1997
-------- ------- --------
<S> <C> <C> <C>
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $20.485 $17.840 $16.178(1)
Value at end of period $22.705 $20.485 $17.840
Number of accumulation units outstanding at end of period 1,312 3,612 3,576
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $17.459 $15.837 $14.065(1)
Value at end of period $18.334 $17.459 $15.837
Number of accumulation units outstanding at end of period 31,846 44,812 49,884
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $19.155 $13.904 $12.498(1)
Value at end of period $25.999 $19.155 $13.904
Number of accumulation units outstanding at end of period 60,970 41,575 31,477
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $13.662 $12.269 $12.518(1)
Value at end of period $19.243 $13.662 $12.269
Number of accumulation units outstanding at end of period 1,456 1,816 1,206
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $19.601 $15.270 $13.443(1)
Value at end of period $24.053 $19.601 $15.270
Number of accumulation units outstanding at end of period 35,985 31,455 29,365
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $20.951 $15.801 $14.156(1)
Value at end of period $46.640 $20.951 $15.801
Number of accumulation units outstanding at end of period 63,769 32,182 26,177
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $19.908 $15.012 $13.573(1)
Value at end of period $24.922 $19.908 $15.012
Number of accumulation units outstanding at end of period 43,805 23,035 8,663
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.487 $14.373 $13.448(1)
Value at end of period $15.540 $15.487 $14.373
Number of accumulation units outstanding at end of period 6,227 9,337 323
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $20.651 $15.414 $13.985(1)
Value at end of period $29.366 $20.651 $15.414
Number of accumulation units outstanding at end of period 28,974 7,088 6,389
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $21.288 $16.720 $15.828(1)
Value at end of period $34.574 $21.288 $16.720
Number of accumulation units outstanding at end of period 84,796 67,482 63,534
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $12.336 $15.541 $15.221(1)
Value at end of period $13.900 $12.336 $15.541
Number of accumulation units outstanding at end of period 900 745 8,053
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.018 $8.115(4)
Value at end of period $15.681 $10.018
Number of accumulation units outstanding at end of period 6,425 2,465
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $24.145 $19.291 $19.016(9)
Value at end of period $35.480 $24.145 $19.291
Number of accumulation units outstanding at end of period 8,425 5,460 7,188
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $19.114 $14.927 $15.114(9)
Value at end of period $28.481 $19.114 $14.927
Number of accumulation units outstanding at end of period 14,236 40,140 56,819
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $16.758 $13.795 $14.067(9)
Value at end of period $20.527 $16.758 $13.795
Number of accumulation units outstanding at end of period 64,138 56,680 55,233
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $19.978 $16.986 $16.776(9)
Value at end of period $31.255 $19.978 $16.986
Number of accumulation units outstanding at end of period 6,428 3,855 6,970
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $18.146 $14.400 $14.112(9)
Value at end of period $21.922 $18.146 $14.400
Number of accumulation units outstanding at end of period 24,825 29,384 24,650
</TABLE>
- -----------------
(1) Funds were first received in this option during June 1997.
(2) Funds were first received in this option during December 1997.
(3) Funds were first received in this option during December 1998.
(4) Funds were first received in this option during October 1998.
(5) Funds were first received in this option during January 1998.
(6) Funds were first received in this option during July 1999.
(7) Funds were first received in this option during September 1999.
(8) Funds were first received in this option during May 1999.
(9) Funds were first received in this option during November 1997.
108
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XV
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON JANUARY 15, 1996
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until January 15, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase.
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- -------- --------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $16.028 $15.514 $13.063 $10.673
Value at end of period $18.172 $16.028 $15.514 $13.063
Number of accumulation units
outstanding at end of period 68,230 80,754 65,940 22,888
AETNA BALANCED VP, INC
Value at beginning of period $21.917 $18.922 $15.596 $13.673
Value at end of period $24.687 $21.917 $18.922 $15.596
Number of accumulation units
outstanding at end of period 725,533 768,510 776,268 768,178
AETNA BOND VP
Value at beginning of period $14.264 $13.316 $12.413 $12.098
Value at end of period $14.037 $14.264 $13.316 $12.413
Number of accumulation units
outstanding at end of period 345,815 389,466 328,774 354,731
AETNA CROSSROADS VP
Value at beginning of period $15.255 $14.541 $12.486 $10.612
Value at end of period $16.670 $15.255 $14.541 $12.486
Number of accumulation units
outstanding at end of period 69,848 78,788 71,276 35,151
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.787(4)
Value at end of period $24.094 $18.005 $13.202
Number of accumulation units
outstanding at end of period 172,922 115,677 6,619
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.319 $22.325 $17.352 $14.077
Value at end of period $29.475 $25.319 $22.325 $17.352
Number of accumulation units
outstanding at end of period 4,530,330 5,019,611 5,232,193 4,796,196
AETNA HIGH YIELD VP
Value at beginning of period $9.2 31 $9.216(6)
Value at end of period $9.79 8 $9.231
Number of accumulation units
outstanding at end of period 6,160 1,842
AETNA INDEX PLUS
LARGE CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(7)
Value at end of period $23.294 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 580,525 386,036 159,318 27,436
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $7.633(8)
Value at end of period $12.530 $10.913
Number of accumulation units
outstanding at end of period 32,617 5,166
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $6.425(8)
Value at end of period $9.703 $8.834
Number of accumulation units
outstanding at end of period 14,120 6,054
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $8.779(8)
Value at end of period $14.682 9.785
Number of accumulation units
outstanding at end of period 5,886 583
<CAPTION>
1995 1994 1993 1992 1991 1990
----------- ---------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP, INC
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS
LARGE CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
109
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.375 $13.571 $11.965 $10.580 $10.000(1)
Value at end of period $15.264 $14.375 $13.571 $11.965 $10.580
Number of accumulation units
outstanding at end of period 53,313 63,385 38,899 13,861 143,637
AETNA MONEY MARKET VP
Value at beginning of period $12.558 $12.022 $11.506 $11.026 $10.528
Value at end of period $13.083 $12.558 $12.022 $11.506 $11.026
Number of accumulation units
outstanding at end of period 345,617 230,562 262,519 228,698 12,999,680
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.89 1 $8.634(8)
Value at end of period $8.444 $8.891
Number of accumulation units
outstanding at end of period 13,312 673
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.119(4)
Value at end of period $17.778 $13.704 $13.684
Number of accumulation units
outstanding at end of period 58,528 61,244 1,098
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.037(10)
Value at end of period $19.103 $16.113 $13.290
Number of accumulation units
outstanding at end of period 52,283 54,627 3,417
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.668 $17.946 $15.088 $13.527 $10.554
Value at end of period $22.998 $20.668 $17.946 $15.088 $13.527
Number of accumulation units
outstanding at end of period 68,703 71,154 66,428 57,557 966,098
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.615 $15.931 $12.554 $11.092 $10.000(1)
Value at end of period $18.570 $17.615 $15.931 $12.554 $11.092
Number of accumulation units
outstanding at end of period 222,000 239,214 196,921 116,432 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.326 $13.987 $11.435 $10.066 $10.000(1)
Value at end of period $26.334 $19.326 $13.987 $11.435 $10.066
Number of accumulation units
outstanding at end of period 476,086 292,985 181,487 112,748 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.784 $12.342 $11.169 $9.961 $10.000(1)
Value at end of period $19.492 $13.784 $12.342 $11.169 $9.961
Number of accumulation units
outstanding at end of period 24,274 26,108 22,047 10,848 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.776 $15.360 $12.491 $10.397 $10.000(1)
Value at end of period $24.363 $19.776 $15.360 $12.491 $10.397
Number of accumulation units
outstanding at end of period 222,596 209,707 171,832 92,021 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.139 $15.895 $14.243 $13.322 $10.581
Value at end of period $47.242 $21.139 $15.895 $14.243 $13.322
Number of accumulation units
outstanding at end of period 582,335 283,821 253,316 226,504 4,887,060
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.086 $15.100 $12.485 $10.850 $10.000(1)
Value at end of period $25.243 $20.086 $15.100 $12.485 $10.850
Number of accumulation units
outstanding at end of period 248,076 105,755 45,503 29,442 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.626 $14.458 $13.060 $12.077 $9.873
Value at end of period $15.741 $15.626 $14.458 $13.060 $12.077
Number of accumulation units
outstanding at end of period 53,088 57,101 13,925 6,607 315,361
<CAPTION>
1994 1993 1992 1991 1990
--------- ---------- -------- ------- ---------
<S> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $10.241 $10.048 $33.812(9) $32.138 $30.012
Value at end of period $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $11.036 $10.278 $10.000(11)
Value at end of period $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.000(12)
Value at end of period $10.581
Number of accumulation units
outstanding at end of period 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $10.000(12)
Value at end of period $9.873
Number of accumulation units
outstanding at end of period 28,543
</TABLE>
110
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- ------- ------- --------
<S> <C> <C> <C> <C>
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.836 $15.505 $12.753 $10.870
Value at end of period $29.744 $20.836 $15.505 $12.753
Number of accumulation units
outstanding at end of period 260,307 128,844 83,855 51,761
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.478 $16.819 $13.900 $10.877
Value at end of period $35.020 $21.478 $16.819 $13.900
Number of accumulation units
outstanding at end of period 771,009 655,881 511,940 212,494
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.446 $15.633 $14.729 $11.720
Value at end of period $14.079 $12.446 $15.633 $14.729
Number of accumulation units
outstanding at end of period 26,550 37,897 73,258 42,174
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $8.907(8)
Value at end of period $15.775 $10.039
Number of accumulation units
outstanding at end of period 14,291 774
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $9.660(8)
Value at end of period $10.108 $9.915
Number of accumulation units
outstanding at end of period 1,294 176
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.361 $19.405 $19.123(13)
Value at end of period $35.938 $24.361 $19.405
Number of accumulation units
outstanding at end of period 184,604 182,557 192,553
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.285 $15.015 $15.199(13)
Value at end of period $28.849 $19.285 $15.015
Number of accumulation units
outstanding at end of period 587,576 595,462 573,528
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.907 $13.877 $14.147(13)
Value at end of period $20.792 $16.907 $13.877
Number of accumulation units
outstanding at end of period 333,629 378,798 418,965
PPI SCUDDER
INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period $20.157 $17.087 $16.871(13)
Value at end of period $31.658 $20.157 $17.087
Number of accumulation units
outstanding at end of period 262,481 273,684 295,952
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.309 $14.485 $14.192(13)
Value at end of period $22.205 $18.309 $14.485
Number of accumulation units
outstanding at end of period 297,723 277,044 212,654
<CAPTION>
1995 1994 1993 1992
----------- -------- ---------- --------
<S> <C> <C> <C> <C>
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $ 9.832 $10.000(11)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
111
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during November 1998.
(7) The initial accumulation unit value was established during August 1996
when the portfolio became available under the contract, when funds were
first received in this option or when the applicable daily asset charge
was first utilized. Funds were first received in this option during
October 1998.
(8) Funds were first received in this option during October 1998.
(9) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(10) Funds were first received in this option during August 1997.
(11) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under
contract.
(12) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(13) Funds were first received in this option during November 1997.
112
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVI
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON MAY 25, 1996
(Selected data for accumulation units outstanding throughout each period)
- --------------------------------------------------------------------------------
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until May 25, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase.
<TABLE>
<CAPTION>
1999 1998 1997 1996
-------- ------- --------- ----------
<S> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $16.011 $15.497 $13.049 $10.673
Value at end of period $18.135 $16.011 $15.497 $13.049
Number of accumulation units
outstanding at end of period 11,396 29,149 178,233 35,180
AETNA BALANCED VP, INC
Value at beginning of period $21.893 $18.901 $15.579 $13.673
Value at end of period $24.637 $21.893 $18.901 $15.579
Number of accumulation units
outstanding at end of period 127,612 266,636 1,511,041 1,528,051
AETNA BOND VP
Value at beginning of period $14.248 $13.301 $12.399 $12.098
Value at end of period $14.009 $14.248 $13.301 $12.399
Number of accumulation units
outstanding at end of period 128,235 200,650 463,068 493,485
AETNA CROSSROADS VP
Value at beginning of period $15.239 $14.526 $12.473 $10.612
Value at end of period $16.637 $15.239 $14.526 $12.473
Number of accumulation units
outstanding at end of period 10,401 30,057 99,660 28,829
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.975(4)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 26,330 81,693 4,360
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.291 $22.301 $17.333 $14.077
Value at end of period $29.416 $25.291 $22.301 $17.333
Number of accumulation units
outstanding at end of period 1,028,949 2,491,029 7,667,724 7,250,286
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $8.889(6)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 5 17
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.902 $14.500 $10.934 $10.000(7)
Value at end of period $23.273 $18.902 $14.500 $10.934
Number of accumulation units
outstanding at end of period 83,941 145,736 190,348 28,473
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $9.927(8)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 5,399 9,117
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $9.997(8)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 5,249 12,800
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $10.183(8)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 1,203 7,767
<CAPTION>
1995 1994 1993 1992 1991 1990
---------- ---------- ---------- ------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
AETNA ASCENT VP
Value at beginning of period $10.000(1)
Value at end of period $10.673
Number of accumulation units
outstanding at end of period 393,053
AETNA BALANCED VP, INC
Value at beginning of period $10.868 $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $13.673 $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 38,152,395 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.360 $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $12.098 $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 21,379,976 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period $10.000(1)
Value at end of period $10.612
Number of accumulation units
outstanding at end of period 294,673
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $10.778 $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $14.077 $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 188,964,022 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
113
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
------- -------- ------- --------
<S> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $14.361 $13.557 $11.953 $10.580
Value at end of period $15.234 $14.361 $13.557 $11.953
Number of accumulation units
outstanding at end of period 3,379 17,756 58,121 15,755
AETNA MONEY MARKET VP
Value at beginning of period $12.545 $12.009 $11.494 $11.026
Value at end of period $13.057 $12.545 $12.009 $11.494
Number of accumulation units
outstanding at end of period $117,934 132,737 328,674 351,832
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.891 $10.127(8)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 1,264 11,639
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.248(4)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 12,642 52,936 12,603
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.093(4)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 3,855 19,971 8,131
AIM V.I. GROWTH FUND
Value at beginning of period $10.229(10)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 110
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.645(11)
Value at end of period $11.710
Number of accumulation units
outstanding at end of period 328
AIM V.I. VALUE FUND
Value at beginning of period $9.915(12)
Value at end of period $11.495
Number of accumulation units
outstanding at end of period 181
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.646 $17.926 $15.071 $13.527
Value at end of period $22.951 $20.646 $17.926 $15.071
Number of accumulation units
outstanding at end of period 16,438 21,808 40,783 35,511
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.596 $15.914 $12.541 $11.092
Value at end of period $18.533 $17.596 $15.914 $12.541
Number of accumulation units
outstanding at end of period 30,245 74,067 121,281 82,568
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.305 $13.972 $11.423 $10.066
Value at end of period $26.281 $19.305 $13.972 $11.423
Number of accumulation units
outstanding at end of period 77,945 100,561 176,877 135,704
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.769 $12.328 $11.157 $9.961
Value at end of period $19.452 $13.769 $12.328 $11.157
Number of accumulation units
outstanding at end of period 7,531 14,165 40,516 29,108
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.755 $15.343 $12.477 $10.397
Value at end of period $24.314 $19.755 $15.343 $12.477
Number of accumulation units
outstanding at end of period 79,042 176,553 320,226 175,463
<CAPTION>
1995 1994 1993 1992 1991 1990
----------- ---------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
AETNA LEGACY VP
Value at beginning of period $10.000(1)
Value at end of period $10.580
Number of accumulation units
outstanding at end of period 143,637
AETNA MONEY MARKET VP
Value at beginning of period $10.528 $10.241 $10.048 $33.812(9) $32.138 $30.012
Value at end of period $11.026 $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 12,999,680 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $10.554 $11.036 $10.278 $10.000(13)
Value at end of period $13.527 $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 966,098 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $11.092
Number of accumulation units
outstanding at end of period 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.066
Number of accumulation units
outstanding at end of period 1,833,794
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $9.961
Number of accumulation units
outstanding at end of period 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.397
Number of accumulation units
outstanding at end of period 2,116,732
</TABLE>
114
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996
-------- ------- ------- -------
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.116 $15.878 $14.227 $13.322
Value at end of period $47.147 $21.116 $15.878 $14.227
Number of accumulation units
outstanding at end of period 98,304 120,002 211,783 171,747
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.064 $15.084 $12.472 $10.850
Value at end of period $25.192 $20.064 $15.084 $12.472
Number of accumulation units
outstanding at end of period 54,960 45,435 58,999 29,198
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.609 $14.442 $13.046 $12.077
Value at end of period $15.709 $15.609 $14.442 $13.046
Number of accumulation units
outstanding at end of period 5,620 10,857 11,145 9,054
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.813 $15.489 $12.739 $10.870
Value at end of period $29.684 $20.813 $15.489 $12.739
Number of accumulation units
outstanding at end of period 52,381 47,157 86,733 67,001
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $21.455 $16.800 $13.885 $10.877
Value at end of period $34.949 $21.455 $16.800 $13.885
Number of accumulation units
outstanding at end of period 109,644 236,904 586,164 241,823
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.433 $15.616 $14.713 $11.720
Value at end of period $14.051 $12.433 $15.616 $14.713
Number of accumulation units
outstanding at end of period 5,186 16,414 72,475 43,665
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $10.080(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 595 3,153
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $10.056(15)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 597 1,158
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.335 $19.384 $19.102 (16)
Value at end of period $35.866 $24.335 $19.384
Number of accumulation units
outstanding at end of period 20,453 48,711 84,592
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.264 $14.999 $15.183 (16)
Value at end of period $28.791 $19.264 $14.999
Number of accumulation units
outstanding at end of period 67,372 289,625 586,517
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.889 $13.862 $14.131 (16)
Value at end of period $20.750 $16.889 $13.862
Number of accumulation units
outstanding at end of period 50,206 158,866 317,033
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.135 $17.068 $16.853 (16)
Value at end of period $31.595 $20.135 $17.068
Number of accumulation units
outstanding at end of period 29,731 81,257 273,402
<CAPTION>
1995 1994 1993 1992
--------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.581 $10.000(14)
Value at end of period $13.322 $10.581
Number of accumulation units
outstanding at end of period 4,887,060 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.850
Number of accumulation units
outstanding at end of period 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $9.873 $10.000(14)
Value at end of period $12.077 $9.873
Number of accumulation units
outstanding at end of period 315,361 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.870
Number of accumulation units
outstanding at end of period 259,196
JANUS ASPEN WORLDWIDE
GROWTH PORTFOLIO
Value at beginning of period $10.000(1)
Value at end of period $10.877
Number of accumulation units
outstanding at end of period 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.154 $10.877 $9.832 $10.000(13)
Value at end of period $11.720 $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 711,892 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
115
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
------- -------- --------- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.289 $14.470 $14.176(16)
Value at end of period $22.160 $18.289 $14.470
Number of accumulation units
outstanding at end of period 31,427 84,842 227,469
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(3) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(6) Funds were first received in this option during October 1998.
(7) The initial accumulation unit value was established during August 1996
when the portfolio became available under the contract, when funds were
first received in this option or when the applicable daily asset charge
was first utilized.
(8) Funds were first received in this option during May 1998.
(9) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the
date of conversion, additional units were issued so that account values
were not changed as a result of the conversion.
(10) Funds were first received in this option during July 1999.
(11) Funds were first received in this option during September 1999.
(12) Funds were first received in this option during June 1999.
(13) The initial accumulation unit value was established at $10.000 August 21,
1992, the date on which the fund/portfolio became available under the
contract.
(14) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds were first received in this option.
(15) Funds were first received in this option during July 1998.
(16) Funds were first received in this option during November 1997.
116
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVII
FOR DEFERRED COMPENSATION CONTRACTS WITH TOTAL SEPARATE ACCOUNT CHARGES
OF 0.95% EFFECTIVE ON OR AFTER DECEMBER 16, 1996
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for each of the periods in
the ten-year period ended December 31, 1999 (as applicable), is derived from
the financial statements of the separate account, which have been audited by
KPMG LLP, independent auditors. The financial statements and the independent
auditors' report thereon for the year ended December 31, 1999 are included in
the Statement of Additional Information. The accumulation unit values reflect a
mortality and expense risk charge of 1.25% until December 16, 1996, when the
mortality and expense risk charge was reduced to 0.95% during the accumulation
phase. It will increase to 1.25% during the income phase. The class of
accumulation unit value shown below may also be used for contracts with 0.95%
total separate account charges issued after December 16, 1996; however, the
condensed financial information for periods prior to December 16, 1996 will not
be applicable.
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C
AETNA ASCENT VP
Value at beginning of period $15.984 $15.471 $13.027 $10.673 $10.000(1)
Value at end of period $18.105 $15.984 $15.471 $13.027 $10.673
Number of accumulation units
outstanding at end of period 11,315 38,675 86,255 32,497 393,053
AETNA BALANCED VP, INC
Value at beginning of period $21.857 $18.870 $15.553 $13.673 $10.868
Value at end of period $24.596 $21.857 $18.870 $15.553 $13.673
Number of accumulation units
outstanding at end of period 86,058 771,906 1,144,876 270,688 38,152,395
AETNA BOND VP
Value at beginning of period $14.225 $13.279 $12.379 $12.098 $10.360
Value at end of period $13.986 $14.225 $13.279 $12.379 $12.098
Number of accumulation units
outstanding at end of period 114,359 289,651 553,279 159,594 21,379,976
AETNA CROSSROADS VP
Value at beginning of period $15.214 $14.501 $12.452 $10.612 $10.000(1)
Value at end of period $16.609 $15.214 $14.501 $12.452 $10.612
Number of accumulation units
outstanding at end of period 14,627 100,734 101,836 9,415 294,673
AETNA GROWTH VP
Value at beginning of period $18.005 $13.202 $12.912(4)
Value at end of period $24.071 $18.005 $13.202
Number of accumulation units
outstanding at end of period 24,434 59,374 7
AETNA GROWTH AND
INCOME VP
Value at beginning of period $25.249 $22.264 $17.304 $14.077 $10.778
Value at end of period $29.367 $25.249 $22.264 $17.304 $14.077
Number of accumulation units
outstanding at end of period 975,160 4,070,904 8,238,898 3,033,655 188,964,022
AETNA HIGH YIELD VP
Value at beginning of period $9.231 $10.044(6)
Value at end of period $9.789 $9.231
Number of accumulation units
outstanding at end of period 1,594 1,308
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period $18.888 $14.489 $10.925 $11.038(7)
Value at end of period $23.256 $18.888 $14.489 $10.925
Number of accumulation units
outstanding at end of period 37,025 136,252 293,223 23,856
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period $10.913 $9.962(8)
Value at end of period $12.519 $10.913
Number of accumulation units
outstanding at end of period 3,069 26,111
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period $8.834 $9.876(8)
Value at end of period $9.694 $8.834
Number of accumulation units
outstanding at end of period 1,965 26,257
<CAPTION>
1994 1993 1992 1991 1990
------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C
AETNA ASCENT VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA BALANCED VP, INC
Value at beginning of period $11.057 $10.189 $12.736(2) $10.896 $10.437
Value at end of period $10.868 $11.057 $10.189 $12.736 $10.896
Number of accumulation units
outstanding at end of period 23,139,604 11,368,365 11,508 22,898,099 17,078,985
AETNA BOND VP
Value at beginning of period $10.905 $10.068 $36.789(3) $31.192 $28.943
Value at end of period $10.360 $10.905 $10.068 $36.789 $31.192
Number of accumulation units
outstanding at end of period 11,713,354 4,084,142 3,870 7,844,412 6,984,793
AETNA CROSSROADS VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA GROWTH AND
INCOME VP
Value at beginning of period $11.020 $10.454 $97.165(5) $77.845 $76.311
Value at end of period $10.778 $11.020 $10.454 $97.165 $77.845
Number of accumulation units
outstanding at end of period 114,733,035 44,166,470 21,250 20,948,226 18,362,906
AETNA HIGH YIELD VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS LARGE
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS MID
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA INDEX PLUS SMALL
CAP VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
117
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
AETNA INTERNATIONAL VP
Value at beginning of period $9.785 $9.974(9)
Value at end of period $14.668 $9.785
Number of accumulation units
outstanding at end of period 752 168
AETNA LEGACY VP
Value at beginning of period $14.336 $13.534 $11.932 $10.580 $10.000(1)
Value at end of period $15.208 $14.336 $13.534 $11.932 $10.580
Number of accumulation units
outstanding at end of period 7,165 80,907 82,178 7,543 143,637
AETNA MONEY MARKET VP
Value at beginning of period $12.524 $11.989 $11.475 $11.026 $10.528
Value at end of period $13.035 $12.524 $11.989 $11.475 $11.026
Number of accumulation units
outstanding at end of period 81,149 300,195 477,490 179,361 12,999,680
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period $8.891 $10.024(8)
Value at end of period $8.436 $8.891
Number of accumulation units
outstanding at end of period 107 1,415
AETNA SMALL COMPANY
VP
Value at beginning of period $13.704 $13.684 $13.248(4)
Value at end of period $17.762 $13.704 $13.684
Number of accumulation units
outstanding at end of period 9,745 49,514 4,993
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period $16.113 $13.290 $13.093(4)
Value at end of period $19.085 $16.113 $13.290
Number of accumulation units
outstanding at end of period 4,285 32,612 4,910
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period $9.660(11)
Value at end of period $13.745
Number of accumulation units
outstanding at end of period 42
AIM V.I. GROWTH FUND
Value at beginning of period $10.595(12)
Value at end of period $12.098
Number of accumulation units
outstanding at end of period 18
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period $9.601(11)
Value at end of period $11.710
Number of accumulation units
outstanding at end of period 115
AIM V.I. VALUE FUND
Value at beginning of period $9.845(13)
Value at end of period $11.495
Number of accumulation units
outstanding at end of period 674
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $20.612 $17.896 $15.046 $13.527 $10.554
Value at end of period $22.913 $20.612 $17.896 $15.046 $13.527
Number of accumulation units
outstanding at end of period 6,811 37,944 62,328 21,317 966,098
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period $17.567 $15.887 $12.520 $11.092 $10.000(1)
Value at end of period $18.502 $17.567 $15.887 $12.520 $11.092
Number of accumulation units
outstanding at end of period 14,979 68,970 114,725 27,814 1,660,304
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period $19.273 $13.948 $11.404 $10.066 $10.000(1)
Value at end of period $26.237 $19.273 $13.948 $11.404 $10.066
Number of accumulation units
outstanding at end of period 43,826 176,188 191,151 60,491 1,833,794
<CAPTION>
1994 1993 1992 1991 1990
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
AETNA INTERNATIONAL VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA LEGACY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA MONEY MARKET VP
Value at beginning of period $10.241 $10.048 $33.812(10) $32.138 $30.012
Value at end of period $10.528 $10.241 $10.048 $33.812 $32.138
Number of accumulation units
outstanding at end of period 7,673,528 2,766,044 825 8,430,082 10,220,110
AETNA REAL ESTATE
SECURITIES VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA SMALL COMPANY
VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AETNA VALUE
OPPORTUNITY VP
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. CAPITAL
APPRECIATION FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. GROWTH AND
INCOME FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
AIM V.I. VALUE FUND
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
CALVERT SOCIAL
BALANCED PORTFOLIO
Value at beginning of period $11.036 $10.278 $10.000(14)
Value at end of period $10.554 $11.036 $10.278
Number of accumulation units
outstanding at end of period 521,141 144,168 2,556
FIDELITY VIP EQUITY-
INCOME PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
118
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period $13.746 $12.308 $11.138 $9.961 $10.000(1)
Value at end of period $19.420 $13.746 $12.308 $11.138 $9.961
Number of accumulation units
outstanding at end of period 3,845 17,178 19,949 2,023 196,090
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period $19.722 $15.318 $12.457 $10.397 $10.000(1)
Value at end of period $24.274 $19.722 $15.318 $12.457 $10.397
Number of accumulation units
outstanding at end of period $37,380 187,525 263,159 41,394 2,116,732
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $21.081 $15.851 $14.204 $13.322 $10.581
Value at end of period $47.068 $21.081 $15.851 $14.204 $13.322
Number of accumulation units
outstanding at end of period 79,376 212,741 294,623 122,154 4,887,060
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period $20.031 $15.059 $12.451 $10.850 $10.000(1)
Value at end of period $25.151 $20.031 $15.059 $12.451 $10.850
Number of accumulation units
outstanding at end of period 32,085 89,095 78,052 12,340 93,304
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $15.583 $14.418 $13.024 $12.077 $9.873
Value at end of period $15.683 $15.583 $14.418 $13.024 $12.077
Number of accumulation units
outstanding at end of period 6,316 20,317 13,587 3,861 315,361
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period $20.778 $15.463 $12.718 $10.870 $10.000(1)
Value at end of period $29.635 $20.778 $15.463 $12.718 $10.870
Number of accumulation units
outstanding at end of period 38,376 61,355 93,386 29,696 259,196
JANUS ASPEN
WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period $21.419 $16.773 $13.862 $10.877 $10.000(1)
Value at end of period $34.891 $21.419 $16.773 $13.862 $10.877
Number of accumulation units
outstanding at end of period 81,241 301,775 538,281 124,749 1,036,040
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $12.412 $15.590 $14.688 $11.720 $10.154
Value at end of period $14.028 $12.412 $15.590 $14.688 $11.720
Number of accumulation units
outstanding at end of period 9,116 38,283 103,604 10,977 711,892
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period $10.039 $10.042(8)
Value at end of period $15.760 $10.039
Number of accumulation units
outstanding at end of period 329 382
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period $9.915 $9.992(8)
Value at end of period $10.099 $9.915
Number of accumulation units
outstanding at end of period 3,113 5,938
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period $24.294 $19.352 $19.071(16)
Value at end of period $35.806 $24.294 $19.352
Number of accumulation units
outstanding at end of period 18,282 171,102 206,191
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period $19.232 $14.974 $15.158(16)
Value at end of period $28.743 $19.232 $14.974
Number of accumulation units
outstanding at end of period 73,452 398,717 703,653
<CAPTION>
1994 1993 1992 1991 1990
-------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C>
FIDELITY VIP OVERSEAS
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
FIDELITY VIP II
CONTRAFUND[Reg TM]
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN AGGRESSIVE
GROWTH PORTFOLIO
Value at beginning of period $10.000(15)
Value at end of period $10.581
Number of accumulation units
outstanding at end of period 753,862
JANUS ASPEN BALANCED
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN FLEXIBLE
INCOME PORTFOLIO
Value at beginning of period $10.000(15)
Value at end of period $9.873
Number of accumulation units
outstanding at end of period 28,543
JANUS ASPEN GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
JANUS ASPEN
WORLDWIDE GROWTH
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
LEXINGTON NATURAL
RESOURCES TRUST
Value at beginning of period $10.877 $9.832 $10.000(14)
Value at end of period $10.154 $10.877 $9.832
Number of accumulation units
outstanding at end of period 703,676 135,614 561
OPPENHEIMER GLOBAL
SECURITIES FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
OPPENHEIMER STRATEGIC
BOND FUND/VA
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS CAPITAL
OPPORTUNITIES
PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
PPI MFS EMERGING
EQUITIES PORTFOLIO
Value at beginning of period
Value at end of period
Number of accumulation units
outstanding at end of period
</TABLE>
119
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
------- -------- ------- ------ ------ ------ ------ ------ ------ -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PPI MFS RESEARCH
GROWTH PORTFOLIO
Value at beginning of period $16.861 $13.839 $14.108(16)
Value at end of period $20.716 $16.861 $13.839
Number of accumulation units
outstanding at end of period 66,415 431,603 627,658
PPI MFS SCUDDER
INTERNATIONAL GROWTH
PORTFOLIO
Value at beginning of period $20.102 $17.040 $16.825(16)
Value at end of period $31.542 $20.102 $17.040
Number of accumulation units
outstanding at end of period 35,480 353,311 457,354
PPI T. ROWE PRICE
GROWTH EQUITY
PORTFOLIO
Value at beginning of period $18.258 $14.445 $14.153(16)
Value at end of period $22.123 $18.258 $14.445
Number of accumulation units
outstanding at end of period 19,172 109,123 200,374
</TABLE>
- -----------------
(1) The initial accumulation unit value was established at $10.000 during
August 1995, when the fund became available under the contract.
(2) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $13.118. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(3) The accumulation unit value was established at $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $38.521. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(4) Funds were first received in this option during December 1997.
(5) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $97.817. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(6) Funds were first received in this option during July 1998.
(7) The initial accumulation unit value was established during December 1996
when the portfolio became available under the contract, when the funds were
first received in this option or when the applicable daily asset charge was
first utilized.
(8) Funds were first received in this option during May 1998.
(9) Funds were first received in this option during August 1998.
(10) The accumulation unit value was converted to $10.000 on August 21, 1992
upon the commencement of a new administrative system. Immediately prior to
that date, the accumulation unit value of the fund was $34.397. On the date
of conversion, additional units were issued so that account values were not
changed as a result of the conversion.
(11) Funds were first received in this option during June 1999.
(12) Funds were first received in this option during November 1999.
(13) Funds were first received in this option during August 1999.
(14) The initial accumulation unit value was established at $10.000 on August
21, 1992, the date on which the fund/portfolio became available under the
contract.
(15) The initial accumulation unit value was established at $10.000 during
October 1994, when the funds ere first received in this option.
(16) Funds were first received in this option during November 1997.
120
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XVIII
FOR CONTRACTS ISSUED TO MISSOURI MUNICIPAL LEAGUE UNDER DEFERRED
COMPENSATION PLANS WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.80%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the period ended
December 31, 1999, is derived from the financial statements of the separate
account, which have been audited by KPMG LLP, independent auditors. The
financial statements and the independent auditors' report thereon for the year
ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
1999
-------
<S> <C>
AETNA ASCENT VP
Value at beginning of period $16.800(1)
Value at end of period $18.122
Number of accumulation units outstanding at end of period 14,127
AETNA BALANCED VP, INC.
Value at beginning of period $22.705(1)
Value at end of period $24.619
Number of accumulation units outstanding at end of period 246,195
AETNA BOND VP
Value at beginning of period $14.118(1)
Value at end of period $13.999
Number of accumulation units outstanding at end of period 23,788
AETNA CROSSROADS VP
Value at beginning of period $15.738(1)
Value at end of period $16.624
Number of accumulation units outstanding at end of period 12,284
AETNA GROWTH VP
Value at beginning of period $19.053(1)
Value at end of period $24.094
Number of accumulation units outstanding at end of period 61,303
AETNA GROWTH AND INCOME VP
Value at beginning of period $26.736(1)
Value at end of period $29.394
Number of accumulation units outstanding at end of period 948,654
AETNA HIGH YIELD VP
Value at beginning of period $9.492(2)
Value at end of period $9.798
Number of accumulation units outstanding at end of period 61
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $20.242(1)
Value at end of period $23.277
Number of accumulation units outstanding at end of period 309,655
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.927(1)
Value at end of period $12.530
Number of accumulation units outstanding at end of period 2,027
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.783(1)
Value at end of period $9.703
Number of accumulation units outstanding at end of period 5,600
AETNA INTERNATIONAL VP
Value at beginning of period $10.489(1)
Value at end of period $14.681
Number of accumulation units outstanding at end of period 1,250
AETNA LEGACY VP
Value at beginning of period $14.711(1)
Value at end of period $15.222
Number of accumulation units outstanding at end of period 42,489
AETNA MONEY MARKET VP
Value at beginning of period $12.707(1)
Value at end of period $13.047
Number of accumulation units outstanding at end of period 139,150
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.523(1)
Value at end of period $8.443
Number of accumulation units outstanding at end of period 608
AETNA SMALL COMPANY VP
Value at beginning of period $14.508(1)
Value at end of period $17.778
Number of accumulation units outstanding at end of period 29,452
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $17.291(1)
Value at end of period $19.103
Number of accumulation units outstanding at end of period 11,792
</TABLE>
121
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
-------
<S> <C>
AIM V.I. GROWTH FUND
Value at beginning of period $11.240(3)
Value at end of period $12.110
Number of accumulation units outstanding at end of period 2,843
AIM V.I. GROWTH AND INCOME FUND
Value at beginning of period $9.727(4)
Value at end of period $11.721
Number of accumulation units outstanding at end of period 1,867
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $21.036(1)
Value at end of period $22.935
Number of accumulation units outstanding at end of period 2,376
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $19.392(1)
Value at end of period $18.519
Number of accumulation units outstanding at end of period 25,382
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $21.072(1)
Value at end of period $26.262
Number of accumulation units outstanding at end of period 82,069
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $14.422(1)
Value at end of period $19.438
Number of accumulation units outstanding at end of period 7,321
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $21.258(1)
Value at end of period $24.296
Number of accumulation units outstanding at end of period 82,920
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $27.003(1)
Value at end of period $47.112
Number of accumulation units outstanding at end of period 214,523
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $22.140(1)
Value at end of period $25.174
Number of accumulation units outstanding at end of period 80,071
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.603(1)
Value at end of period $15.698
Number of accumulation units outstanding at end of period 9,552
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $23.156(1)
Value at end of period $29.662
Number of accumulation units outstanding at end of period 63,406
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $23.168(1)
Value at end of period $34.923
Number of accumulation units outstanding at end of period 216,743
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $14.452(1)
Value at end of period $14.041
Number of accumulation units outstanding at end of period 4,390
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.913(1)
Value at end of period $15.775
Number of accumulation units outstanding at end of period 14,641
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.954(1)
Value at end of period $10.108
Number of accumulation units outstanding at end of period 3,895
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $27.595(1)
Value at end of period $35.839
Number of accumulation units outstanding at end of period 23,458
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $20.019(1)
Value at end of period $28.769
Number of accumulation units outstanding at end of period 194,333
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $17.376(1)
Value at end of period $20.735
Number of accumulation units outstanding at end of period 86,899
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $21.199(1)
Value at end of period $31.571
Number of accumulation units outstanding at end of period 79,515
</TABLE>
122
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
--------
<S> <C>
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $19.112(1)
Value at end of period $22.144
Number of accumulation units outstanding at end of period 53,724
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1999.
(2) Funds were first received in this option during August 1999.
(3) Funds were first received in this option during December 1999.
(4) Funds were first received in this option during October 1999.
123
<PAGE>
Condensed Financial Information
- --------------------------------------------------------------------------------
TABLE XIX
FOR CONTRACTS ISSUED TO METROPOLITAN UTILITIES DISTRICT UNDER DEFERRED
COMPENSATION PLANS WITH TOTAL SEPARATE ACCOUNT CHARGES OF 0.80%
(Selected data for accumulation units outstanding throughout each period)
================================================================================
The condensed financial information presented below for the period ended
December 31, 1999, is derived from the financial statements of the separate
account, which have been audited by KPMG LLP, independent auditors. The
financial statements and the independent auditors' report thereon for the year
ended December 31, 1999 are included in the Statement of Additional
Information.
<TABLE>
<CAPTION>
1999
--------
<S> <C>
AETNA ASCENT VP
Value at beginning of period $16.828(1)
Value at end of period $18.152
Number of accumulation units outstanding at end of period 9,510
AETNA BALANCED VP, INC.
Value at beginning of period $22.742(1)
Value at end of period $24.660
Number of accumulation units outstanding at end of period 89,985
AETNA BOND VP
Value at beginning of period $14.142(1)
Value at end of period $14.022
Number of accumulation units outstanding at end of period 74,784
AETNA CROSSROADS VP
Value at beginning of period $15.764(1)
Value at end of period $16.652
Number of accumulation units outstanding at end of period 12,822
AETNA GROWTH VP
Value at beginning of period $19.053(1)
Value at end of period $24.094
Number of accumulation units outstanding at end of period 72,901
AETNA GROWTH AND INCOME VP
Value at beginning of period $26.781(1)
Value at end of period $29.443
Number of accumulation units outstanding at end of period 1,234,587
AETNA HIGH YIELD VP
Value at beginning of period $9.716(1)
Value at end of period $9.798
Number of accumulation units outstanding at end of period 3,126
AETNA INDEX PLUS LARGE CAP VP
Value at beginning of period $20.257(1)
Value at end of period $23.294
Number of accumulation units outstanding at end of period 120,481
AETNA INDEX PLUS MID CAP VP
Value at beginning of period $10.927(1)
Value at end of period $12.530
Number of accumulation units outstanding at end of period 6,386
AETNA INDEX PLUS SMALL CAP VP
Value at beginning of period $8.783(1)
Value at end of period $9.703
Number of accumulation units outstanding at end of period 5,603
AETNA INTERNATIONAL VP
Value at beginning of period $10.489(1)
Value at end of period $14.681
Number of accumulation units outstanding at end of period 19,174
AETNA LEGACY VP
Value at beginning of period $14.736(1)
Value at end of period $15.248
Number of accumulation units outstanding at end of period 8,034
AETNA MONEY MARKET VP
Value at beginning of period $12.728(1)
Value at end of period $13.069
Number of accumulation units outstanding at end of period 124,835
AETNA REAL ESTATE SECURITIES VP
Value at beginning of period $9.523(1)
Value at end of period $8.443
Number of accumulation units outstanding at end of period 3,605
AETNA SMALL COMPANY VP
Value at beginning of period $14.508(1)
Value at end of period $17.778
Number of accumulation units outstanding at end of period 37,985
AETNA VALUE OPPORTUNITY VP
Value at beginning of period $17.291(1)
Value at end of period $19.103
Number of accumulation units outstanding at end of period 19,132
</TABLE>
124
<PAGE>
Condensed Financial Information (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999
-------
<S> <C>
CALVERT SOCIAL BALANCED PORTFOLIO
Value at beginning of period $21.071(1)
Value at end of period $22.973
Number of accumulation units outstanding at end of period 3,697
FIDELITY VIP EQUITY-INCOME PORTFOLIO
Value at beginning of period $19.424(1)
Value at end of period $18.550
Number of accumulation units outstanding at end of period 37,177
FIDELITY VIP GROWTH PORTFOLIO
Value at beginning of period $21.107(1)
Value at end of period $26.305
Number of accumulation units outstanding at end of period 73,156
FIDELITY VIP OVERSEAS PORTFOLIO
Value at beginning of period $14.446(1)
Value at end of period $19.470
Number of accumulation units outstanding at end of period 11,298
FIDELITY VIP II CONTRAFUND[Reg TM] PORTFOLIO
Value at beginning of period $21.293(1)
Value at end of period $24.336
Number of accumulation units outstanding at end of period 111,857
JANUS ASPEN AGGRESSIVE GROWTH PORTFOLIO
Value at beginning of period $27.048(1)
Value at end of period $47.190
Number of accumulation units outstanding at end of period 130,374
JANUS ASPEN BALANCED PORTFOLIO
Value at beginning of period $22.177(1)
Value at end of period $25.216
Number of accumulation units outstanding at end of period 42,380
JANUS ASPEN FLEXIBLE INCOME PORTFOLIO
Value at beginning of period $15.629(1)
Value at end of period $15.724
Number of accumulation units outstanding at end of period 8,959
JANUS ASPEN GROWTH PORTFOLIO
Value at beginning of period $23.195(1)
Value at end of period $29.712
Number of accumulation units outstanding at end of period 45,184
JANUS ASPEN WORLDWIDE GROWTH PORTFOLIO
Value at beginning of period $23.206(1)
Value at end of period $34.982
Number of accumulation units outstanding at end of period 158,965
LEXINGTON NATURAL RESOURCES TRUST
Value at beginning of period $14.476(1)
Value at end of period $14.064
Number of accumulation units outstanding at end of period 4,217
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Value at beginning of period $10.913(1)
Value at end of period $15.775
Number of accumulation units outstanding at end of period 2,690
OPPENHEIMER STRATEGIC BOND FUND/VA
Value at beginning of period $9.954(1)
Value at end of period $10.108
Number of accumulation units outstanding at end of period 483
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO
Value at beginning of period $27.641(1)
Value at end of period $35.899
Number of accumulation units outstanding at end of period 29,139
PPI MFS EMERGING EQUITIES PORTFOLIO
Value at beginning of period $20.053(1)
Value at end of period $28.817
Number of accumulation units outstanding at end of period 197,164
PPI MFS RESEARCH GROWTH PORTFOLIO
Value at beginning of period $17.405(1)
Value at end of period $20.770
Number of accumulation units outstanding at end of period 94,525
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO
Value at beginning of period $21.234(1)
Value at end of period $31.624
Number of accumulation units outstanding at end of period 46,782
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO
Value at beginning of period $19.144(1)
Value at end of period $22.181
Number of accumulation units outstanding at end of period 51,974
</TABLE>
- -----------------
(1) Funds were first received in this option during May 1999.
125
<PAGE>
For Master Applications Only
- --------------------------------------------------------------------------------
I hereby acknowledge receipt of an Account C prospectus dated May 1, 2000, as
well as all current prospectuses for the funds available under the Contracts.
- --- Please send an Account C Statement of Additional Information (Form No.
SAI.01107-00) dated May 1, 2000.
- --------------------------------------------------------------------------------
CONTRACT HOLDER'S SIGNATURE
- --------------------------------------------------------------------------------
DATE
PROS.01107-00
126
<PAGE>
- --------------------------------------------------------------------------------
VARIABLE ANNUITY ACCOUNT C
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
- --------------------------------------------------------------------------------
Statement of Additional Information dated May 1, 2000
This Statement of Additional Information is not a prospectus and should be read
in conjunction with the current prospectus dated May 1, 2000. The contracts
offered in connection with the prospectus are group or individual deferred
variable annuity contracts funded through Variable Annuity Account C (the
"separate account").
A free prospectus is available upon request from the local Aetna Life Insurance
and Annuity Company office or by writing to or calling:
Aetna Life Insurance and Annuity Company
Customer Service
151 Farmington Avenue
Hartford, Connecticut 06156
1-800-262-3862
Read the prospectus before you invest. Unless otherwise indicated, terms used in
this Statement of Additional Information shall have the same meaning as in the
prospectus.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S> <C>
General Information and History........................................... 2
Variable Annuity Account C................................................ 2
Offering and Purchase of Contracts........................................ 3
Performance Data.......................................................... 3
General.............................................................. 3
Average Annual Total Return Quotations............................... 3
Income Phase Payments..................................................... 6
Sales Material and Advertising............................................ 7
Independent Auditors...................................................... 7
Financial Statements of the Separate Account.............................. S-1
Financial Statements of Aetna Life Insurance and Annuity Company ......... F-1
</TABLE>
<PAGE>
GENERAL INFORMATION AND HISTORY
Aetna Life Insurance and Annuity Company (the "Company," we, us, our) is a stock
life insurance company which was organized under the insurance laws of the State
of Connecticut in 1976. Through a merger, it succeeded to the business of Aetna
Variable Annuity Life Insurance Company (formerly Participating Annuity Life
Insurance Company organized in 1954). As of December 31, 1999, the Company and
its subsidiary life company had $53 billion invested through its products,
including $39 billion in its separate accounts (of which the Company or its
subsidiary, Aeltus Investment Management, Inc. oversees the management of $24
billion). The Company is ranked based on assets among the top 2% of all U.S.
life insurance companies rated by A.M. Best Company as of December 31, 1998. The
Company is an indirect wholly owned subsidiary of Aetna Inc. The Company is
engaged in the business of issuing life insurance policies and annuity
contracts. Our Home Office is located at 151 Farmington Avenue, Hartford,
Connecticut 06156.
In addition to serving as the principal underwriter and the depositor for the
separate account, the Company is a registered investment adviser under the
Investment Advisers Act of 1940, and a registered broker-dealer under the
Securities Exchange Act of 1934. We provide investment advice to several of the
registered management investment companies offered as variable investment
options under the contracts funded by the separate account (see "Variable
Annuity Account C" below).
Other than the mortality and expense risk charge and administrative expense
charge described in the prospectus, all expenses incurred in the operations of
the separate account are borne by the Company. (See "Fees" in the prospectus.)
We receive reimbursement for certain administrative costs from some advisers of
the funds used as funding options under the contract. These fees generally range
up to 0.425%.
The assets of the separate account are held by the Company. The separate account
has no custodian. However, the funds in whose shares the assets of the separate
account are invested each have custodians, as discussed in their respective
prospectuses.
From this point forward, the term "contract(s)" refers only to those offered
through the prospectus.
VARIABLE ANNUITY ACCOUNT C
Variable Annuity Account C is a separate account established by the Company for
the purpose of funding variable annuity contracts issued by the Company. The
separate account is registered with the Securities and Exchange Commission as a
unit investment trust under the Investment Company Act of 1940, as amended.
Purchase payments to accounts under the contract may be allocated to one or more
of the subaccounts. Each subaccount invests in the shares of only one of the
funds listed below. We may make additions to, deletions from or substitutions of
available investment options as permitted by law and subject to the conditions
of the contract. The availability of the funds is subject to applicable
regulatory authorization. Not all funds are available in all jurisdictions,
under all contracts, or under all plans.
<PAGE>
The funds currently available under the contract are as follows:
<TABLE>
<S> <C>
o Aetna Ascent VP o Fidelity Variable Insurance Products Fund (VIP) Growth Portfolio
o Aetna Balanced VP, Inc. o Fidelity Variable Insurance Products Fund (VIP) Overseas Portfolio
o Aetna Income Shares d/b/a Aetna Bond VP o Fidelity Variable Insurance Products Fund (VIP II)
o Aetna Crossroads VP Contrafund[Reg TM] Portfolio
o Aetna Growth VP o Janus Aspen Aggressive Growth Portfolio
o Aetna Variable Fund d/b/a Aetna Growth and Income VP o Janus Aspen Balanced Portfolio
o Aetna High Yield VP(1) o Janus Aspen Flexible Income Portfolio
o Aetna Index Plus Large Cap VP o Janus Aspen Growth Portfolio
o Aetna Index Plus Mid Cap VP o Janus Aspen Worldwide Growth Portfolio
o Aetna Index Plus Small Cap VP o Janus Twenty Fund(2)
o Aetna International VP o Lexington Natural Resources Trust(3)
o Aetna Legacy VP o Oppenheimer Global Securities Fund/VA
o Aetna Variable Encore Fund d/b/a Aetna Money Market VP o Oppenheimer Strategic Bond Fund/VA
o Aetna Real Estate Securities VP(1) o Portfolio Partners Inc. (PPI) MFS Capital Opportunities Portfolio
o Aetna Small Company VP formerly PPI MFS Value Equity Portfolio
o Aetna Technology VP o Portfolio Partners Inc. (PPI) MFS Emerging Equities Portfolio
o Aetna Value Opportunity VP o Portfolio Partners Inc. (PPI) MFS Research Growth Portfolio
o AIM V.I. Capital Appreciation Fund o Portfolio Partners Inc. (PPI) Scudder International Growth Portfolio
o AIM V.I. Growth Fund o Portfolio Partners Inc. (PPI) T. Rowe Price Growth Equity Portfolio
o AIM V.I. Growth and Income Fund
o AIM V.I. Value Fund
o Calvert Social Balanced Portfolio
o DEM[Reg TM] Equity Fund (Institutional Shares)(2)
o Fidelity Variable Insurance Products Fund (VIP)
Equity-Income Portfolio
</TABLE>
(1) Effective May 15, 2000, transfers or deposits are not allowed into the
subaccount investing in this fund, except those made pursuant to standing
customer instructions (e.g., payroll deduction allocations, dollar cost
averaging) in effect prior to this date.
(2) This fund is available to the general public.
(3) Transfers or deposits are not allowed into the subaccount investing in this
fund, except from accounts established under the contract before May 1,
1998. As soon as all those who have current allocations to the subaccount
under the contract have redirected their allocations to other investment
options, we will close the subaccount to all investments (except loan
repayments that we automatically deposit into the subaccount according to
our loan repayment procedures).
A complete description of each of the funds, including their investment
objectives, policies, risks and fees and expenses, is contained in the
prospectus and statement of additional information for each of the funds.
OFFERING AND PURCHASE OF CONTRACTS
The Company is both the depositor and the principal underwriter for the
securities sold under the prospectus. We offer the contracts through life
insurance agents licensed to sell variable annuities who are registered
representatives of the Company or of other registered broker-dealers who have
sales agreements with the Company. The offering of the contracts is continuous.
A description of the manner in which contracts are purchased may be found in the
prospectus under the sections entitled "Contract Ownership and Rights" and "Your
Account Value."
2
<PAGE>
PERFORMANCE DATA
General
From time to time, we may advertise different types of historical performance
for the subaccounts of the separate account available under the contracts. We
may advertise the "standardized average annual total returns," calculated in a
manner prescribed by the Securities and Exchange Commission (the "standardized
total return"), as well as the "non-standardized total return," both of which
are described below.
The standardized and non-standardized total return figures are computed
according to a formula in which a hypothetical initial purchase payment of
$1,000 is applied to the various subaccounts under the contract, and then
related to the ending redeemable values over one, five and ten year periods (or
fractional periods thereof). The redeemable value is then divided by the initial
investment and this quotient is taken to the Nth root (N represents the number
of years in the period) and 1 is subtracted from the result which is then
expressed as a percentage, carried to at least the nearest hundredth of a
percent. The standardized figures use the actual returns of the fund since the
date contributions were first received in the corresponding subaccount of the
separate account and then adjust them to reflect the deduction of all recurring
charges under the contracts during each period (e.g., mortality and expense risk
charges, administrative expense charges, maintenance fees and early withdrawal
charges). These charges will be deducted on a pro rata basis in the case of
fractional periods. The maintenance fee is converted to a percentage of assets
based on the average account size under the contracts described in the
prospectus. The total return figures shown below may be different from the
actual historical total return under your contract because for periods prior to
1994, the subaccount's investment performance reflected the investment
performance of the underlying fund plus any cash held by the subaccount.
The non-standardized total return figures will be calculated in a similar
manner, except that they will not reflect the deduction of any applicable early
withdrawal charge, and in some advertisements will also exclude the effect of
any applicable maintenance fee. The deduction of the early withdrawal charge and
the maintenance fee would decrease the level of performance shown if reflected
in these calculations. The non-standardized figures may also include monthly,
quarterly, year-to-date and three year periods, and may include returns
calculated from the fund's inception date and/or the date contributions were
first received in the corresponding subaccount of the separate account. The
non-standardized returns shown in the tables below reflect the deduction of all
charges under the contract except the early withdrawal charge. The maximum
maintenance fee has been deducted for the purposes of calculating the returns.
Investment results of the subaccounts will fluctuate over time, and any
presentation of the subaccounts' total return quotations for any prior period
should not be considered as a representation of how the subaccounts will perform
in any future period. Additionally, the contract value and/or account value upon
redemption may be more or less than your original cost.
Average Annual Total Return Quotations - Standardized and Non-Standardized
The tables below reflect the average annual standardized and non-standardized
total return quotation figures for the periods ended December 31, 1999 for the
subaccounts under the contracts. The standardized returns (Table A) assume the
maximum mortality and expense risk charge of 1.50%, administrative expense
charge of 0.25%, maximum maintenance fee of $30 and early withdrawal charges
corresponding to Schedule I in the prospectus that is based on completed payment
periods. The non-standardized returns (Table B) assume the same charges but do
not include the early withdrawal charges. We may also advertise returns based on
other fee schedules that apply to a particular contract. These fee schedules may
result in higher returns than those shown.
For the subaccounts funded by the Portfolio Partners portfolios, two sets of
performance returns are shown for each subaccount: one showing performance based
solely on the performance of the Portfolio Partners portfolio from November 28,
1997, the date the Portfolio commenced operations; and one quotation based on
(a)
3
<PAGE>
performance through November 26, 1997 of the fund it replaced under many
contracts and; (b) after November 26, 1997, based on the performance of the
Portfolio Partners portfolio.
For those subaccounts where results are not available for the full calendar
period indicated, performance for such partial periods is shown in the column
labeled "Since Inception." For standardized performance, the "Since Inception"
column shows the average annual return since the date contributions were first
received in the fund under the separate account. For non-standardized
performance, the "Since Inception" column shows average annual total return
since the fund's inception date.
TABLE A
<TABLE>
<CAPTION>
----------------------------------------------------------------------
Date
Contributions
STANDARDIZED First Received
Under the
Separate Account
- ------------------------------------------------------------------------------------------------------------------------------------
Since
SUBACCOUNT 1 Year 5 Year 10 Year Inception*
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Ascent VP 6.72% 12.72% 07/05/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc.(1) 6.02% 15.69% 11.27%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Bond VP(1) (7.37%) 4.35% 5.82%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads VP 2.86% 10.46% 07/05/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Growth VP 25.97% 31.23% 05/30/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Growth and Income VP(1) 9.58% 20.10% 13.49%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna High Yield VP (0.10%) (4.90%) 05/04/1998
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP 16.00% 25.67% 10/31/1996
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP 8.08% 9.38% 05/04/1998
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP 3.39% (5.62%) 05/04/1998
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International VP 41.25% 19.80% 05/04/1998
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Legacy VP (0.06%) 8.15% 07/05/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Money Market VP(1)(2) (1.94%) 2.56% 3.47%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP (10.62%) (13.87%) 05/04/1998
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Small Company VP 22.12% 15.70% 05/30/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Value Opportunity VP 11.60% 20.37% 05/30/1997
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Capital Appreciation Fund 32.58% 05/07/1999
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Growth Fund 20.09% 05/04/1999
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Growth and Income Fund 15.20% 05/10/1999
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Value Fund 11.58% 05/05/1999
- ------------------------------------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio(1) 4.73% 14.76% 10.08%
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio (0.77%) 15.33% 14.44% 05/31/1994
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio 28.27% 26.16% 23.97% 05/31/1994
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio 33.12% 14.13% 11.88% 05/31/1994
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund[Reg TM] Portfolio 15.96% 22.49% 05/31/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio 110.40% 32.47% 33.89% 06/30/1994
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 18.30% 21.03% 06/30/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio (5.18%) 7.81% 7.29% 10/31/1994
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Growth Portfolio 34.38% 26.14% 06/30/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 53.49% 32.01% 05/31/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust 6.48% 4.83% 3.50% 10/14/1991
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund/VA 47.92% 25.87% 05/04/1998
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Strategic Bond Fund/VA (4.04%) (3.38%) 05/07/1998
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI MFS Capital Opportunities Portfolio 38.87% 30.81% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Growth/PPI MFS Capital
Opportunities(3) 38.87% 24.39% 14.27%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI MFS Emerging Equities Portfolio 40.82% 31.43% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Small Cap/PPI MFS Emerging Equities(3) 40.82% 22.80% 17.03% 09/30/1993
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio 15.76% 16.30% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP Capital Appreciation/PPI MFS
Research Growth(3) 15.76% 10.05% 8.85% 08/31/1992
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio 47.85% 30.72% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Scudder International Portfolio Class A/PPI Scudder
International Growth(3) 47.85% 17.91% 11.58%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio 14.16% 19.83% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Growth/PPI T. Rowe Price Growth Equity(3) 14.16% 21.89% 20.69% 10/31/1994
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please refer to the discussion preceding the tables for an explanation of the
charges included and methodology used in calculating the standardized and
non-standardized figures. These figures represent historical performance and
should not be considered a projection of future performance.
* Reflects performance from the date contributions were first received in the
fund under the separate account.
(1) These funds have been available through the separate account for more than
ten years.
(2) The current yield for the subaccount for the seven-day period ended
December 31, 1999 (on an annualized basis) was 4.01%. Current yield more
closely reflects current earnings than does total return. The current yield
reflects the deduction of all charges under the contract that are deducted
from the total return quotations shown above except the maximum 5% early
withdrawal charge.
(3) The fund first listed was replaced with the applicable Portfolio Partners
Portfolio after the close of business on November 26, 1997. The performance
shown is based on the performance of the replaced fund until November 26,
1997, and the performance of the applicable Portfolio Partners Portfolio
after that date. The replaced fund may not have been available under all
contracts. The "Date Contributions First Received Under the Separate
Account" refers to the applicable date for the replaced fund. If no date is
shown, contributions were first received in the replaced fund under the
separate account more than ten years ago.
4
<PAGE>
TABLE B
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
Fund
NON-STANDARDIZED Inception
Date
- ------------------------------------------------------------------------------------------------------------------------------------
Since
SUBACCOUNT 1 Year 3 Years 5 Years 10 Years Inception**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Aetna Ascent VP 12.33% 10.67% 14.01% 07/05/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc.(1) 11.60% 15.55% 16.88% 11.27%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Bond VP(1) (2.50%) 3.29% 5.43% 5.82%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads VP 8.27% 9.17% 11.73% 07/05/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Growth VP 32.60% 32.83% 32.86% 12/13/1996
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Growth and Income VP(1) 15.35% 18.30% 21.34% 13.49%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna High Yield VP 5.16% 2.14% 12/10/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP 22.11% 27.58% 28.22% 09/16/1996
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP 13.77% 19.42% 12/16/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP 8.83% 4.77% 12/19/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International VP 48.68% 33.06% 12/22/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Legacy VP 5.21% 7.53% 9.40% 07/05/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Money Market VP(1)(2) 3.22% 3.48% 3.62% 3.47%
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP (5.91%) (8.50%) 12/15/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Small Company VP 28.55% 19.04% 19.44% 12/27/1996
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Value Opportunity VP 17.47% 24.59% 24.98% 12/13/1996
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Capital Appreciation Fund 42.08% 22.92% 23.40% 20.20% 05/05/1993
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Growth Fund 32.86% 29.72% 27.39% 20.78% 05/05/1993
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Growth and Income Fund 31.89% 26.91% 25.95% 22.32% 05/02/1994
- ------------------------------------------------------------------------------------------------------------------------------------
AIM V.I. Value Fund 27.61% 26.37% 25.02% 20.92% 05/05/1993
- ------------------------------------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio(1) 10.25% 14.10% 15.95% 10.08%
- ------------------------------------------------------------------------------------------------------------------------------------
DEM[Reg TM] Equity Fund 107.31% 53.27% 04/08/1998
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio(1) 4.45% 12.96% 16.52% 12.48%
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio(1) 35.02% 30.93% 27.46% 17.83%
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio(1) 40.12% 19.37% 15.30% 9.47%
- ------------------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund[Reg TM] Portfolio 22.07% 23.88% 25.51% 01/03/1995
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Aggressive Growth Portfolio 121.48% 47.87% 33.84% 32.06% 09/13/1993
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Balanced Portfolio 24.53% 25.37% 22.49% 18.50% 09/13/1993
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Flexible Income Portfolio (0.19%) 5.51% 8.92% 6.59% 09/13/1993
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Growth Portfolio 41.46% 31.49% 27.60% 22.10% 09/13/1993
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Worldwide Growth Portfolio 61.57% 34.91% 31.25% 27.43% 09/13/1993
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Twenty Fund(1) 62.02% 52.11% 42.71% 24.67%
- ------------------------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust 12.08% (2.34%) 5.92% 4.14% 10/14/1991
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Securities Fund/VA 55.71% 28.04% 19.53% 14.74% 11/12/1990
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Strategic Bond Fund/VA 1.01% 2.92% 6.34% 4.31% 05/03/1993
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI MFS Capital Opportunities Portfolio 46.18% 33.97% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Growth/PPI MFS Capital
Opportunities(3) 46.18% 31.21% 25.67% 14.27%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI MFS Emerging Equities Portfolio 48.23% 34.70% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Small Cap/PPI MFS Emerging Equities(3) 48.23% 26.54% 24.07% 17.86%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio 21.85% 19.18% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
American Century VP Capital Appreciation/PPI MFS
Research Growth(3) 21.85% 11.96% 11.18% 8.88%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio 55.64% 34.10% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Scudder International Portfolio Class A/PPI Scudder
International Growth(3) 55.64% 24.92% 19.13% 11.58%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio 20.17% 22.73% 11/28/1997
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American Growth/PPI T. Rowe Price Growth Equity(3) 20.17% 23.81% 23.14% 18.13%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Please refer to the discussion preceding the tables for an explanation of the
charges included and methodology used in calculating the standardized and
non-standardized figures. These figures represent historical performance and
should not be considered a projection of future performance.
** Reflects performance from the fund's inception date.
(1) These funds have been in operation for more than ten years.
(2) The current yield for the subaccount for the seven-day period ended
December 31, 1999 (on an annualized basis) was 4.01%. Current yield more
closely reflects current earnings than does total return. The current yield
reflects the deduction of all charges under the contract that are deducted
from the total return quotations shown above. As in the table above, the
maximum 5% early withdrawal charge is not reflected.
(3) The fund first listed was replaced with the applicable Portfolio Partners
Portfolio after the close of business on November 26, 1997. The performance
shown is based on the performance of the replaced fund until November 26,
1997, and the performance of the applicable Portfolio Partners Portfolio
after that date. The replaced fund may not have been available under all
contracts. The "Fund Inception Date" refers to the applicable date for the
replaced fund. If no date is shown, the replaced fund has been in operation
for more than ten years.
5
<PAGE>
INCOME PHASE PAYMENTS
When you begin receiving payments under the contract during the income phase
(see "The Income Phase" in the prospectus), the value of your account is
determined using accumulation unit values as of the tenth valuation before the
first income phase payment is due. Such value (less any applicable premium tax)
is applied to provide income phase payments to you in accordance with the
payment option and investment options elected.
The Annuity option tables found in the contract show, for each option, the
amount of the first income phase payment for each $1,000 of value applied.
Thereafter, variable payments fluctuate as the Annuity Unit value(s) fluctuates
with the investment experience of the selected investment option(s). The first
income phase payment and subsequent income phase payments also vary depending on
the assumed net investment rate selected (3.5% or 5% per annum). Selection of a
5% rate causes a higher first income phase payment, but income phase payments
will increase thereafter only to the extent that the net investment rate
increases by more than 5% on an annual basis.
Income phase payments would decline if the rate failed to increase by 5%. Use of
the 3.5% assumed rate causes a lower first income phase payment, but subsequent
income phase payments would increase more rapidly or decline more slowly as
changes occur in the net investment rate.
When the income phase begins, the annuitant is credited with a fixed number of
Annuity Units (which does not change thereafter) in each of the designated
investment options. This number is calculated by dividing (a) by (b), where (a)
is the amount of the first income phase payment based upon a particular
investment option, and (b) is the then current Annuity Unit value for that
investment option. As noted, Annuity Unit values fluctuate from one valuation to
the next (see "Your Account Value" in the prospectus); such fluctuations reflect
changes in the net investment factor for the appropriate subaccount(s) (with a
ten valuation lag which gives the Company time to process payments) and a
mathematical adjustment which offsets the assumed net investment rate of 3.5% or
5% per annum.
The operation of all these factors can be illustrated by the following
hypothetical example. These procedures will be performed separately for the
investment options selected during the income phase.
EXAMPLE:
Assume that, at the date income phase payments are to begin, there are 3,000
accumulation units credited under a particular contract or account and that the
value of an accumulation unit for the tenth valuation prior to retirement was
$13.650000. This produces a total value of $40,950.
Assume also that no premium tax is payable and that the annuity table in the
contract provides, for the income phase payment option elected, a first monthly
variable income phase payment of $6.68 per $1000 of value applied; the
annuitant's first monthly income phase payment would thus be 40.950 multiplied
by $6.68, or $273.55.
Assume then that the value of an Annuity Unit upon the valuation on which the
first income phase payment was due was $13.400000. When this value is divided
into the first monthly income phase payment, the number of Annuity Units is
determined to be 20.414. The value of this number of Annuity Units will be paid
in each subsequent month.
If the net investment factor with respect to the appropriate subaccount is
1.0015000 as of the tenth valuation preceding the due date of the second monthly
income phase payment, multiplying this factor by .9999058* (to take into account
the assumed net investment rate of 3.5% per annum built into the number of
Annuity Units determined above) produces a result of 1.0014057. This is then
multiplied by the Annuity Unit value for the
*If an assumed net investment rate of 5% is elected, the appropriate factor to
take into account such assumed rate would be .9998663.
6
<PAGE>
prior valuation (assume such value to be $13.504376) to produce an Annuity Unit
value of $13.523359 for the valuation occurring when the second income phase
payment is due.
The second monthly income phase payment is then determined by multiplying the
number of Annuity Units by the current Annuity Unit value, or 20.414 times
$13.523359, which produces a payment of $276.07.
SALES MATERIAL AND ADVERTISING
We may include hypothetical illustrations in our sales literature that explain
the mathematical principles of dollar cost averaging, compounded interest, tax
deferred accumulation, and the mechanics of variable annuity contracts. We may
also discuss the difference between variable annuity contracts and other types
of savings or investment products such as personal savings accounts and
certificates of deposit.
We may distribute sales literature that compares the percentage change in
accumulation unit values for any of the subaccounts to established market
indices such as the Standard & Poor's 500 Stock Index and the Dow Jones
Industrial Average or to the percentage change in values of other management
investment companies that have investment objectives similar to the subaccount
being compared.
We may publish in advertisements and reports, the ratings and other information
assigned to us by one or more independent rating organizations such as A.M. Best
Company, Duff & Phelps, Standard & Poor's Corporation and Moody's Investors
Service, Inc. The purpose of the ratings is to reflect our financial strength
and/or claims-paying ability. We may also quote ranking services such as
Morningstar's Variable Annuity/Life Performance Report and Lipper's Variable
Insurance Products Performance Analysis Service (VIPPAS), which rank variable
annuity or life subaccounts or their underlying funds by performance and/or
investment objective. We may categorize the underlying funds in terms of the
asset classes they represent and use such categories in marketing materials for
the contracts. We may illustrate in advertisements the performance of the
underlying funds, if accompanied by performance which also shows the performance
of such funds reduced by applicable charges under the separate account. We may
also show in advertisements the portfolio holdings of the underlying funds,
updated at various intervals. From time to time, we will quote articles from
newspapers and magazines or other publications or reports such as The Wall
Street Journal, Money magazine, USA Today and The VARDS Report.
We may provide in advertising, sales literature, periodic publications or other
materials information on various topics of interest to current and prospective
contract holders or participants. These topics may include the relationship
between sectors of the economy and the economy as a whole and its effect on
various securities markets, investment strategies and techniques (such as value
investing, market timing, dollar cost averaging, asset allocation, constant
ratio transfer and account rebalancing), the advantages and disadvantages of
investing in tax-deferred and taxable investments, customer profiles and
hypothetical purchase and investment scenarios, financial management and tax and
retirement planning, and investment alternatives to certificates of deposit and
other financial instruments, including comparison between the contracts and the
characteristics of and market for such financial instruments.
INDEPENDENT AUDITORS
KPMG LLP, CityPlace II, Hartford, Connecticut 06103-4103, are the independent
auditors for the separate account and for the Company. The services provided to
the separate account include primarily the examination of the separate account's
financial statements and review of filings made with the SEC.
7
<PAGE>
FINANCIAL STATEMENTS
VARIABLE ANNUITY ACCOUNT C
Index
<TABLE>
<CAPTION>
Page
<S> <C>
Statement of Assets and Liabilities......................................S-2
Statement of Operations..................................................S-7
Statements of Changes in Net Assets......................................S-7
Condensed Financial Information..........................................S-8
Notes to Financial Statements...........................................S-35
Independent Auditors' Report............................................S-46
</TABLE>
S-1
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1999
ASSETS:
Investments, at net asset value: (Note 1)
<TABLE>
<CAPTION>
Net
Shares Cost Assets
------ ---- ------
<S> <C> <C> <C>
Aetna Ascent VP: 5,487,998 $ 77,850,801 $ 81,880,934
Aetna Balanced VP, Inc.: 63,798,342 948,295,840 993,340,184
Aetna Bond VP: 26,111,128 337,527,308 317,772,433
Aetna Crossroads VP: 4,900,036 66,342,707 67,473,490
Aetna Get Fund, Series C: 13,344,337 151,169,479 170,407,185
Aetna Get Fund, Series D: 44,266,790 445,750,521 471,441,304
Aetna Get Fund, Series E: 14,653,796 147,439,580 157,821,380
Aetna Get Fund, Series G: 4,403,891 44,362,936 45,668,355
Aetna Get Fund, Series H: 177,810 1,780,349 1,782,585
Aetna Growth and Income VP: 199,632,297 6,407,871,320 6,126,715,184
Aetna Growth VP: 8,400,854 114,098,403 145,502,794
Aetna High Yield VP: 247,442 2,290,075 2,177,493
Aetna Index Plus Bond VP: 105,454 1,063,945 999,704
Aetna Index Plus Large Cap VP: 22,759,570 380,903,893 474,992,216
Aetna Index Plus Mid Cap VP: 742,803 9,063,006 9,210,760
Aetna Index Plus Small Cap VP: 759,404 7,605,471 8,277,508
Aetna International VP: 484,592 6,442,241 7,714,709
Aetna Legacy VP: 3,434,547 42,980,971 42,897,494
Aetna Money Market VP: 24,259,864 321,393,718 325,448,505
Aetna Real Estate Securities VP: 256,614 2,056,484 1,983,625
Aetna Small Company VP: 3,809,327 49,829,392 62,930,074
Aetna Value Opportunity VP: 2,109,605 28,865,898 34,639,709
AIM V.I. Funds:
Capital Appreciation Fund: 51,442 1,663,535 1,830,289
Growth and Income Fund: 308,705 8,531,987 9,752,003
Growth Fund: 145,759 4,202,783 4,700,713
Value Fund: 254,868 7,703,036 8,538,069
Calvert Social Balanced Portfolio: 31,393,409 60,290,971 68,092,305
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio: 8,321,344 183,959,852 213,941,762
Growth Portfolio: 8,016,298 304,409,589 440,335,255
High Income Portfolio: 165,693 1,831,003 1,873,989
Overseas Portfolio: 802,972 16,957,060 22,033,565
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio: 1,485,310 23,755,294 27,730,745
Contrafund Portfolio: 16,307,149 307,785,749 475,353,405
Index 500 Portfolio: 732,174 87,437,682 122,573,178
Janus Aspen Series:
Aggressive Growth Portfolio: 18,318,476 503,488,085 1,093,429,837
Balanced Portfolio: 8,431,614 181,578,113 235,410,674
Flexible Income Portfolio: 2,881,635 34,591,070 32,908,277
Growth Portfolio: 10,799,778 243,582,035 363,412,513
Worldwide Growth Portfolio: 23,812,784 600,003,141 1,137,060,432
Lexington Emerging Markets Fund: 904,459 8,311,189 11,586,115
Lexington Natural Resources Trust Fund: 1,319,622 18,631,009 16,508,469
MFS Funds:
Total Return Series: 38,546 685,374 684,196
</TABLE>
S-2
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1999 (continued):
<TABLE>
<CAPTION>
Net
Shares Cost Assets
------ ---- ------
<S> <C> <C> <C>
Oppenheimer Funds:
Global Securities Fund/VA: 175,752 $ 4,453,856 $ 5,871,877
Strategic Bond Fund/VA: 702,571 3,494,361 3,491,776
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio: 7,216,621 332,022,669 597,752,731
PPI MFS Research Growth Portfolio: 17,304,728 174,113,125 255,763,877
PPI MFS Value Equity Portfolio: 4,141,093 133,672,606 226,807,681
PPI Scudder International Growth Portfolio: 11,435,215 230,983,651 291,483,624
PPI T. Rowe Price Growth Equity Portfolio: 3,683,260 166,480,917 243,095,170
--------------- ---------------
NET ASSETS $13,239,604,080 $15,463,100,152
=============== ===============
</TABLE>
S-3
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1999 (continued):
Net assets represented by:
Reserves for annuity contracts in accumulation and payment period:
(Notes 1 and 6)
<TABLE>
<S> <C>
Aetna Ascent VP:
Annuity contracts in accumulation .............................................. $ 81,880,934
Aetna Balanced VP, Inc.:
Annuity contracts in accumulation .............................................. 958,810,376
Annuity contracts in payment period ............................................ 34,529,808
Aetna Bond VP:
Annuity contracts in accumulation .............................................. 312,007,882
Annuity contracts in payment period ............................................ 5,764,551
Aetna Crossroads VP:
Annuity contracts in accumulation .............................................. 67,400,270
Annuity contracts in payment period ............................................ 73,220
Aetna Get Fund, Series C:
Annuity contracts in accumulation .............................................. 170,407,185
Aetna Get Fund, Series D:
Annuity contracts in accumulation .............................................. 471,441,304
Aetna Get Fund, Series E:
Annuity contracts in accumulation .............................................. 157,821,380
Aetna Get Fund, Series G:
Annuity contracts in accumulation .............................................. 45,668,355
Aetna Get Fund, Series H:
Annuity contracts in accumulation .............................................. 1,782,585
Aetna Growth and Income VP:
Annuity contracts in accumulation .............................................. 5,753,192,035
Annuity contracts in payment period ............................................ 373,523,149
Aetna Growth VP:
Annuity contracts in accumulation .............................................. 145,431,206
Annuity contracts in payment period ............................................ 71,588
Aetna High Yield VP:
Annuity contracts in accumulation .............................................. 2,177,493
Aetna Index Plus Bond VP:
Annuity contracts in accumulation .............................................. 999,704
Aetna Index Plus Large Cap VP:
Annuity contracts in accumulation .............................................. 473,757,587
Annuity contracts in payment period ............................................ 1,234,629
Aetna Index Plus Mid Cap VP:
Annuity contracts in accumulation .............................................. 9,210,760
Aetna Index Plus Small Cap VP:
Annuity contracts in accumulation .............................................. 8,277,508
Aetna International VP:
Annuity contracts in accumulation .............................................. 7,714,709
Aetna Legacy VP:
Annuity contracts in accumulation .............................................. 42,650,270
Annuity contracts in payment period ............................................ 247,224
Aetna Money Market VP:
Annuity contracts in accumulation .............................................. 325,367,721
Annuity contracts in payment period ............................................ 80,784
Aetna Real Estate Securities VP:
Annuity contracts in accumulation .............................................. 1,983,625
</TABLE>
S-4
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1999 (continued):
<TABLE>
<S> <C>
Aetna Small Company VP:
Annuity contracts in accumulation ..................... $ 62,919,038
Annuity contracts in payment period ................... 11,036
Aetna Value Opportunity VP:
Annuity contracts in accumulation ..................... 34,639,709
AIM V.I. Funds:
Capital Appreciation Fund:
Annuity contracts in accumulation ..................... 1,830,289
Growth and Income Fund:
Annuity contracts in accumulation ..................... 9,752,003
Growth Fund:
Annuity contracts in accumulation ..................... 4,700,713
Value Fund:
Annuity contracts in accumulation ..................... 8,538,069
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation ..................... 68,092,305
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation ..................... 213,941,762
Growth Portfolio:
Annuity contracts in accumulation ..................... 440,335,255
High Income Portfolio:
Annuity contracts in accumulation ..................... 1,873,989
Overseas Portfolio:
Annuity contracts in accumulation ..................... 22,033,565
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation ..................... 27,730,745
Contrafund Portfolio:
Annuity contracts in accumulation ..................... 475,353,405
Index 500 Portfolio:
Annuity contracts in accumulation ..................... 122,573,178
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation ..................... 1,093,429,837
Balanced Portfolio:
Annuity contracts in accumulation ..................... 235,410,674
Flexible Income Portfolio:
Annuity contracts in accumulation ..................... 32,908,277
Growth Portfolio:
Annuity contracts in accumulation ..................... 362,723,120
Annuity contracts in payment period ................... 689,393
Worldwide Growth Portfolio:
Annuity contracts in accumulation ..................... 1,136,307,574
Annuity contracts in payment period ................... 752,858
Lexington Emerging Markets Fund:
Annuity contracts in accumulation ..................... 11,586,115
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation ..................... 16,508,469
MFS Funds:
Total Return Series:
Annuity contracts in accumulation ..................... 684,196
</TABLE>
S-5
<PAGE>
Variable Annuity Account C
Statement of Assets and Liabilities - December 31, 1999 (continued):
<TABLE>
<S> <C>
Oppenheimer Funds:
Global Securities Fund/VA:
Annuity contracts in accumulation ........... $ 5,871,877
Strategic Bond Fund/VA:
Annuity contracts in accumulation ........... 3,464,259
Annuity contracts in payment period ......... 27,517
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation ........... 597,714,231
Annuity contracts in payment period ......... 38,500
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation ........... 255,763,877
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation ........... 226,770,707
Annuity contracts in payment period ......... 36,974
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation ........... 291,483,624
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation ........... 243,032,240
Annuity contracts in payment period ......... 62,930
---------------
$15,463,100,152
===============
</TABLE>
See Notes to Financial Statements
S-6
<PAGE>
Variable Annuity Account C
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
Year Ended
December 31, 1999
-----------------
<S> <C>
INVESTMENT INCOME:
Income: (Notes 1, 3 and 5)
Dividends ...................................................... $1,492,280,564
Expenses: (Notes 2 and 5)
Valuation period deductions .................................... (155,996,756)
--------------
Net investment income ........................................... $1,336,283,808
--------------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Net realized gain on sales of investments: (Notes 1, 4 and 5)
Proceeds from sales ............................................ $3,038,110,918
Cost of investments sold ....................................... 2,616,313,236
--------------
Net realized gain on investments .............................. 421,797,682
--------------
Net unrealized gain on investments: (Note 5)
Beginning of year .............................................. 949,942,696
End of year .................................................... 2,223,496,072
--------------
Net change in unrealized gain on investments .................. 1,273,553,376
--------------
Net realized and unrealized gain on investments ................. 1,695,351,058
--------------
Net increase in net assets resulting from operations ............ $3,031,634,866
==============
</TABLE>
See Notes to Financial Statements
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended December 31,
1999 1998
---- ----
FROM OPERATIONS:
<S> <C> <C>
Net investment income ................................................... $ 1,336,283,808 $ 1,309,062,029
Net realized gain on investments ........................................ 421,797,682 376,057,759
Net change in unrealized gain on investments ............................ 1,273,553,376 34,476,935
--------------- ---------------
Net increase in net assets resulting from operations .................... 3,031,634,866 1,719,596,723
--------------- ---------------
FROM UNIT TRANSACTIONS:
Variable annuity contract purchase payments ............................. 1,172,840,518 1,136,921,898
Transfer from the Company for mortality guarantee adjustments ........... 2,184,815 849,771
Transfers from the Company's fixed account options ...................... 168,739,006 112,197,035
Transfer to the Company's other variable annuity accounts ............... 51,518,318 (66,773,776)
Redemptions by contract holders ......................................... (1,347,163,695) (1,591,935,338)
Annuity Payments ........................................................ (43,203,172) (41,589,989)
Other ................................................................... 184,219 1,844,602
--------------- ---------------
Net increase (decrease) in net assets from unit transactions (Note 6) .. 5,100,009 (448,485,797)
--------------- ---------------
Change in net assets .................................................... 3,036,734,875 1,271,110,926
NET ASSETS:
Beginning of year ....................................................... 12,426,365,277 11,155,254,351
--------------- ---------------
End of year ............................................................. $15,463,100,152 $12,426,365,277
=============== ===============
</TABLE>
See Notes to Financial Statements
S-7
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999
<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> <C>
Aetna Ascent VP:
Qualified III $15.886 $17.940 12.93% 33,852.1 $ 607,317
Qualified V 15.800 17.814 12.75% 1,632.1 29,075
Qualified VI 15.886 17.940 12.93% 2,759,063.1 49,498,437
Qualified VIII 15.882 17.934 12.92% 7.6 136
Qualified X (1.15) 16.395 18.533 13.04% 11,213.5 207,822
Qualified X (1.25) 16.337 18.450 12.93% 473,603.0 8,737,920
Qualified XI 16.028 18.172 13.38% 68,230.2 1,239,866
Qualified XII (0.40) 14.086 16.043 13.89% 84,264.1 1,351,871
Qualified XII (0.45) 9.519 10.836 13.84% 53,201.3 576,512
Qualified XII (0.50) 9.848 11.205 13.78% 4,725.1 52,944
Qualified XII (0.55) 9.864 10.819 9.68% (11) 3,650.3 39,493
Qualified XII (0.65) 9.484 10.802 13.90% (4) 184,741.3 1,995,487
Qualified XII (0.70) 10.056 10.793 7.33% (5) 7,803.1 84,218
Qualified XII (0.75) 9.502 10.784 13.49% 52,441.5 565,534
Qualified XII (0.80) 10.101 11.458 13.43% 169,078.4 1,937,317
Qualified XII (0.85) 14.113 16.002 13.38% 150,454.1 2,407,530
Qualified XII (0.90) 9.953 11.279 13.32% 19,045.8 214,821
Qualified XII (0.95) 14.076 15.944 13.27% 75,808.4 1,208,657
Qualified XII (1.00) 14.057 15.915 13.22% 412,578.7 6,566,029
Qualified XII (1.05) 14.039 15.886 13.16% 33,325.3 529,395
Qualified XII (1.10) 14.020 15.857 13.10% 29,410.8 466,362
Qualified XII (1.15) 14.002 15.828 13.04% 43,436.3 687,507
Qualified XII (1.20) 13.983 15.799 12.99% 47,132.2 744,648
Qualified XII (1.25) 13.965 15.770 12.93% 1,616.8 25,497
Qualified XII (1.30) 13.946 15.742 12.88% 2,119.6 33,367
Qualified XII (1.40) 13.910 15.685 12.76% 456.6 7,162
Qualified XII (1.50) 13.873 15.628 12.65% 12,770.2 199,567
Qualified XIII 16.011 18.135 13.27% 11,395.7 206,664
Qualified XV 15.984 18.105 13.27% 11,315.1 204,861
Qualified XVI 15.818 17.818 12.64% 40,362.2 719,184
Qualified XVII 15.974 18.102 13.32% 7,679.2 139,012
Qualified XVIII 16.427 18.616 13.33% 9,028.8 168,085
Qualified XXI 16.800 18.122 7.87% (5) 14,127.4 256,014
Qualified XXII 16.828 18.152 7.87% (5) 9,509.9 172,623
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc.:
Qualified I 28.687 32.205 12.26% 46,577.5 1,500,025
Qualified III 28.524 32.002 12.19% 2,155,444.9 68,979,058
Qualified V 21.650 24.251 12.01% 2,950.4 71,552
Qualified VI 21.723 24.372 12.19% 21,610,375.0 526,690,848
Qualified VII 20.906 23.469 12.26% 244,536.2 5,739,082
Qualified VIII 20.165 22.622 12.18% 4,333.4 98,031
Qualified IX 20.269 22.855 12.76% 3,089.4 70,608
Qualified X (1.15) 21.836 24.523 12.31% 144,539.6 3,544,554
Qualified X (1.25) 21.723 24.372 12.19% 5,427,321.4 132,275,378
Qualified XI 21.917 24.687 12.64% 725,532.7 17,911,003
Qualified XII (0.40) 15.331 17.347 13.15% 720,935.4 12,506,401
Qualified XII (0.45) 10.747 12.064 12.25% (1) 80,716.6 973,804
Qualified XII (0.50) 11.077 12.521 13.04% 307,533.7 3,850,603
Qualified XII (0.55) 11.266 12.045 6.91% (11) 237,141.6 2,856,384
Qualified XII (0.65) 11.183 12.026 7.54% (4) 119,528.5 1,437,404
Qualified XII (0.70) 11.192 12.016 7.36% (5) 96,082.3 1,154,518
Qualified XII (0.75) 10.648 12.006 12.75% 194,624.9 2,336,717
Qualified XII (0.80) 11.358 12.801 12.70% 3,380,638.3 43,274,716
Qualified XII (0.85) 15.360 17.303 12.65% 1,479,143.3 25,592,940
Qualified XII (0.90) 11.157 12.561 12.58% 13,520.7 169,839
Qualified XII (0.95) 15.320 17.240 12.53% 565,751.2 9,753,347
Qualified XII (1.00) 15.300 17.208 12.47% 2,306,988.0 39,699,337
Qualified XII (1.05) 15.279 17.177 12.42% 103,304.6 1,774,462
</TABLE>
S-8
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Balanced VP, Inc. (continued):
Qualified XII (1.10) $15.259 $17.146 12.37% 79,952.8 $ 1,370,853
Qualified XII (1.15) 15.239 17.115 12.31% 224,431.2 3,841,053
Qualified XII (1.20) 15.219 17.083 12.25% 33,948.3 579,954
Qualified XII (1.25) 15.199 17.052 12.19% 2,089.1 35,624
Qualified XII (1.30) 15.179 17.021 12.14% 112.6 1,916
Qualified XII (1.40) 15.139 16.960 12.03% 1,121.8 19,026
Qualified XII (1.50) 15.099 16.898 11.91% 10,945.5 184,956
Qualified XIII 21.893 24.637 12.53% 127,612.2 3,143,976
Qualified XV 21.857 24.596 12.53% 86,058.1 2,116,686
Qualified XVI 21.629 24.206 11.91% 352,494.7 8,532,621
Qualified XVII 21.808 24.529 12.48% 343,841.9 8,434,153
Qualified XVIII 21.808 24.529 12.48% 567,804.2 13,927,761
Qualified XIX 28.800 32.412 12.54% 59,324.7 1,922,853
Qualified XX 28.636 32.208 12.47% 129,106.3 4,158,308
Qualified XXI 22.705 24.619 8.43% (5) 246,195.4 6,061,023
Qualified XXII 22.742 24.660 8.43% (5) 89,984.8 2,219,002
Annuity contracts in payment period 34,529,808
- --------------------------------------------------------------------------------------------------------------------------------
Aetna Bond VP:
Qualified I 55.494 54.432 (1.91%) 13,087.6 712,387
Qualified III 54.819 53.738 (1.97%) 867,416.1 46,612,996
Qualified V 14.285 13.981 (2.13%) 9,603.3 134,261
Qualified VI 14.137 13.859 (1.97%) 11,928,359.4 165,309,860
Qualified VII 13.083 12.833 (1.91%) 162,929.5 2,090,861
Qualified VIII 13.018 12.760 (1.98%) 6,576.0 83,911
Qualified IX 13.221 13.012 (1.58%) 1,660.2 21,602
Qualified X (1.15) 14.211 13.945 (1.87%) 71,392.2 995,530
Qualified X (1.25) 14.137 13.859 (1.97%) 2,085,754.6 28,905,552
Qualified XI 14.264 14.037 (1.59%) 345,814.5 4,854,370
Qualified XII (0.40) 12.079 11.942 (1.13%) 198,382.2 2,368,992
Qualified XII (0.45) 10.455 10.396 (0.56%) (9) 19,692.6 204,733
Qualified XII (0.50) 10.662 10.530 (1.24%) 84,610.6 890,970
Qualified XII (0.55) 10.419 10.380 (0.37%) (11) 31,522.7 327,195
Qualified XII (0.65) 10.594 10.363 (2.18%) (4) 113,546.9 1,176,679
Qualified XII (0.70) 10.447 10.355 (0.88%) (5) 36,754.8 380,581
Qualified XII (0.75) 10.502 10.346 (1.49%) 51,553.5 533,383
Qualified XII (0.80) 10.650 10.487 (1.53%) 617,713.8 6,477,656
Qualified XII (0.85) 12.102 11.911 (1.58%) 637,752.4 7,595,995
Qualified XII (0.90) 10.654 10.481 (1.62%) 2,670.4 27,987
Qualified XII (0.95) 12.070 11.867 (1.68%) 228,113.5 2,707,087
Qualified XII (1.00) 12.054 11.846 (1.73%) 1,191,777.2 14,117,427
Qualified XII (1.05) 12.038 11.824 (1.78%) 54,349.6 642,636
Qualified XII (1.10) 12.022 11.803 (1.82%) 24,570.7 289,999
Qualified XII (1.15) 12.006 11.781 (1.87%) 88,391.1 1,041,349
Qualified XII (1.20) 11.990 11.760 (1.92%) 26,797.5 315,130
Qualified XII (1.25) 11.975 11.738 (1.98%) 520.5 6,110
Qualified XII (1.30) 11.959 11.717 (2.02%) 36,650.4 429,431
Qualified XII (1.40) 11.927 11.674 (2.12%) 323.8 3,780
Qualified XII (1.50) 11.896 11.632 (2.22%) 6,253.3 72,737
Qualified XIII 14.248 14.009 (1.68%) 128,234.5 1,796,461
Qualified XV 14.225 13.986 (1.68%) 114,358.8 1,599,414
Qualified XVI 14.076 13.764 (2.22%) 186,302.7 2,564,315
Qualified XVII 14.171 13.912 (1.83%) 347,131.3 4,829,329
Qualified XVIII 14.171 13.912 (1.83%) 608,177.8 8,461,036
Qualified XIX 55.625 54.642 (1.77%) 14,745.1 805,707
Qualified XX 54.949 53.945 (1.83%) 22,963.9 1,238,793
Qualified XXI 14.118 13.999 (0.84%) (5) 23,788.3 333,009
Qualified XXII 14.142 14.022 (0.85%) (5) 74,783.9 1,048,631
Annuity contracts in payment period 5,764,551
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
S-9
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Crossroads VP:
Qualified III $15.120 $16.458 8.85% 30,738.0 $ 505,884
Qualified V 15.038 16.342 8.67% 383.9 6,274
Qualified VI 15.120 16.458 8.85% 2,306,431.0 37,959,074
Qualified VIII 15.116 16.452 8.84% 98.8 1,626
Qualified X (1.15) 15.532 16.923 8.96% 39,124.9 662,102
Qualified X (1.25) 15.478 16.847 8.84% 372,045.9 6,267,768
Qualified XI 15.255 16.670 9.28% 69,847.5 1,164,381
Qualified XII (0.40) 13.628 14.960 9.77% 62,562.9 935,938
Qualified XII (0.45) 9.800 10.752 9.71% 111,368.9 1,197,490
Qualified XII (0.50) 10.086 11.061 9.67% 1,386.1 15,332
Qualified XII (0.55) 10.032 10.735 7.01% (11) 3,809.4 40,895
Qualified XII (0.65) 9.799 10.718 9.38% (4) 90,629.0 971,345
Qualified XII (0.70) 10.178 10.709 5.22% (5) 2,882.4 30,868
Qualified XII (0.75) 9.782 10.701 9.39% 67,538.1 722,694
Qualified XII (0.80) 10.312 11.275 9.34% 93,911.4 1,058,841
Qualified XII (0.85) 13.654 14.921 9.28% 121,322.2 1,810,277
Qualified XII (0.90) 10.489 11.115 5.97% (8) 4,102.4 45,598
Qualified XII (0.95) 13.618 14.867 9.17% 75,296.8 1,119,436
Qualified XII (1.00) 13.600 14.840 9.12% 122,393.1 1,816,307
Qualified XII (1.05) 13.582 14.813 9.06% 40,689.7 602,733
Qualified XII (1.10) 13.564 14.786 9.01% 51,461.8 760,917
Qualified XII (1.15) 13.546 14.759 8.95% 34,307.7 506,351
Qualified XII (1.20) 13.528 14.732 8.90% 436,388.8 6,428,997
Qualified XII (1.25) 13.510 14.705 8.85% 9,106.6 133,916
Qualified XII (1.30) 13.492 14.679 8.80% 870.2 12,773
Qualified XII (1.40) 13.457 14.625 8.68% 1,479.4 21,636
Qualified XII (1.50) 13.421 14.572 8.58% 15,404.5 224,478
Qualified XIII 15.239 16.637 9.17% 10,401.1 173,040
Qualified XV 15.214 16.609 9.17% 14,626.7 242,937
Qualified XVI 15.055 16.346 8.58% 32,067.0 524,165
Qualified XVII 15.204 16.607 9.23% 47,768.1 793,264
Qualified XVIII 15.563 16.999 9.23% 13,248.1 225,204
Qualified XXI 15.738 16.624 5.63% (5) 12,283.9 204,214
Qualified XXII 15.764 16.652 5.63% (5) 12,822.1 213,515
Annuity contracts in payment period 73,220
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Qualified III 15.904 19.358 21.72% 596,623.2 11,549,650
Qualified VI 15.904 19.358 21.72% 5,363,382.8 103,826,321
Qualified XI 16.014 19.568 22.19% 577,726.4 11,305,148
Qualified XII (0.65) 16.025 19.672 22.76% 38,157.9 750,657
Qualified XII (0.70) 12.660 13.520 6.79% (11) 33,609.8 454,406
Qualified XII (0.75) 11.696 14.343 22.63% 12,252.8 175,745
Qualified XII (0.80) 12.234 13.498 10.33% (11) 8,956.2 120,893
Qualified XII (0.90) 12.110 13.477 11.29% (10) 10,850.4 146,226
Qualified XII (1.00) 10.999 13.455 22.33% 10,347.4 139,222
Qualified XII (1.05) 12.202 14.919 22.27% 665,803.2 9,933,249
Qualified XII (1.10) 16.050 19.615 22.21% 90,184.8 1,768,933
Qualified XII (1.15) 13.929 14.489 4.02% (12) 4,014.7 58,168
Qualified XII (1.20) 16.014 19.550 22.08% 98,911.8 1,933,743
Qualified XII (1.25) 15.995 19.518 22.03% 1,061,017.8 20,709,009
Qualified XII (1.30) 15.977 19.486 21.96% 1,697.8 33,083
Qualified XII (1.35) 15.959 19.454 21.90% 5,444.4 105,915
Qualified XII (1.40) 15.940 19.422 21.84% 3,217.1 62,483
Qualified XII (1.45) 15.922 19.390 21.78% 3,011.6 58,396
Qualified XII (1.75) 15.813 19.200 21.42% 495.5 9,514
Qualified XIII 16.014 19.550 22.08% 90,531.2 1,769,901
Qualified XV 16.002 19.536 22.08% 17,017.4 332,453
</TABLE>
S-10
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Get Fund, Series C (continued):
Qualified XVI $15.835 $19.227 21.42% 28,960.1 $ 556,808
Qualified XVII 15.904 19.358 21.72% 95,802.4 1,854,577
Qualified XXI 16.740 19.557 16.83% (6) 48,418.5 946,913
Qualified XXII 16.752 19.571 16.83% (6) 92,268.0 1,805,772
- --------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series D:
Qualified III 10.062 10.726 6.60% 3,810,727.5 40,872,636
Qualified V 10.058 10.704 6.42% 5,515.1 59,034
Qualified VI 10.062 10.726 6.60% 18,170,043.9 194,886,034
Qualified IX 10.065 10.745 6.76% 15,611.1 167,749
Qualified X (1.15) 10.062 10.726 6.60% 139,046.9 1,491,372
Qualified X (1.25) 10.062 10.726 6.60% 3,231,872.5 34,664,023
Qualified XI 10.068 10.775 7.02% 2,873,392.4 30,961,803
Qualified XII (0.65) 10.076 10.833 7.51% 102,963.8 1,115,377
Qualified XII (0.70) 10.467 10.832 3.49% (11) 67,005.7 725,790
Qualified XII (0.75) 10.079 10.825 7.40% 25,428.6 275,267
Qualified XII (0.80) 10.229 10.818 5.76% (11) 41,864.1 452,904
Qualified XII (0.85) 10.071 10.779 7.03% 202,198.1 2,179,410
Qualified XII (0.90) 10.160 10.805 6.35% (10) 22,607.0 244,272
Qualified XII (1.00) 10.073 10.792 7.14% 18,211.6 196,537
Qualified XII (1.05) 10.072 10.785 7.08% 4,843,476.6 52,237,951
Qualified XII (1.15) 10.566 10.772 1.95% (12) 8,484.1 91,391
Qualified XII (1.20) 10.068 10.765 6.92% 414,563.5 4,462,919
Qualified XII (1.25) 10.067 10.759 6.87% 7,379,720.4 79,396,426
Qualified XII (1.30) 10.066 10.752 6.82% 42,788.7 460,068
Qualified XII (1.40) 10.064 10.739 6.71% 17,125.9 183,914
Qualified XII (1.50) 10.069 10.726 6.52% (1) 4,237.4 45,449
Qualified XII (1.55) 10.060 10.719 6.55% 84,745.5 908,394
Qualified XII (1.75) 10.056 10.693 6.33% 13,930.9 148,960
Qualified XIII 10.068 10.765 6.92% 420,980.0 4,531,995
Qualified XV 10.068 10.765 6.92% 83,197.7 895,652
Qualified XVI 10.056 10.693 6.33% 132,567.9 1,417,517
Qualified XVII 10.062 10.726 6.60% 157,815.2 1,692,675
Qualified XVIII 10.062 10.726 6.60% 591,778.3 6,347,224
Qualified XXI 9.949 10.777 8.32% (6) 384,568.8 4,144,416
Qualified XXII 9.949 10.777 8.32% (6) 573,839.4 6,184,145
- --------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series E:
Qualified III 10.000 10.760 7.60% (6) 1,175,742.6 12,651,122
Qualified V 10.019 10.751 7.31% (7) 489.8 5,266
Qualified VI 10.000 10.760 7.60% (6) 6,811,257.7 73,289,900
Qualified X (1.15) 10.020 10.755 7.34% (6) 162,651.2 1,749,277
Qualified X (1.25) 10.012 10.752 7.39% (6) 1,460,077.3 15,699,247
Qualified XI 10.000 10.787 7.87% (6) 793,284.8 8,556,796
Qualified XII (0.70) 10.355 10.807 4.37% (11) 4,273.8 46,188
Qualified XII (0.80) 10.115 10.801 6.78% (11) 33,946.1 366,660
Qualified XII (1.00) 10.001 10.789 7.88% (6) 2,108.2 22,746
Qualified XII (1.05) 10.000 10.787 7.87% (6) 1,369,132.2 14,768,193
Qualified XII (1.10) 10.000 10.784 7.84% (6) 54,629.0 589,097
Qualified XII (1.15) 10.516 10.781 2.52% (12) 1,600.5 17,255
Qualified XII (1.20) 10.000 10.778 7.78% (6) 106,496.3 1,147,788
Qualified XII (1.25) 10.000 10.775 7.75% (6) 1,782,985.0 19,211,276
Qualified XII (1.30) 10.002 10.772 7.70% (6) 12,179.6 131,196
Qualified XII (1.35) 10.060 10.769 7.05% (8) 3,590.8 38,669
Qualified XII (1.40) 10.006 10.766 7.60% (6) 7,037.4 75,764
Qualified XII (1.50) 10.038 10.760 7.19% (7) 9,588.6 103,175
Qualified XII (1.75) 10.004 10.745 7.41% (6) 1,012.4 10,879
Qualified XIII 10.001 10.778 7.77% (6) 110,714.9 1,193,255
Qualified XV 10.005 10.778 7.73% (6) 97,325.1 1,048,943
</TABLE>
S-11
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (continued):
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease)
-------- in Value of
Beginning End of Accumulation
of Year Year Unit
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Get Fund, Series E (continued):
Qualified XVI $ 10.004 $ 10.745 7.41%
Qualified XVII 10.005 10.760 7.55%
Qualified XVIII 10.012 10.752 7.39%
Qualified XXI 10.005 10.787 7.82%
Qualified XXII 10.000 10.787 7.87%
- -------------------------------------------------------------------------------------
Aetna Get Fund, Series G:
Qualified III 10.003 10.370 3.67%
Qualified VI 9.998 10.370 3.72%
Qualified X (1.25) 9.999 10.369 3.70%
Qualified XI 9.999 10.384 3.85%
Qualified XII (0.65) 10.014 10.397 3.82%
Qualified XII (0.80) 10.054 10.392 3.36%
Qualified XII (0.90) 10.048 10.389 3.39%
Qualified XII (0.95) 9.998 10.379 3.81%
Qualified XII (1.00) 10.029 10.386 3.56%
Qualified XII (1.05) 10.004 10.384 3.80%
Qualified XII (1.10) 10.015 10.383 3.67%
Qualified XII (1.25) 10.005 10.378 3.73%
Qualified XII (1.30) 9.999 10.376 3.77%
Qualified XII (1.35) 10.072 10.375 3.01%
Qualified XII (1.40) 10.011 10.373 3.62%
Qualified XII (1.45) 9.999 10.371 3.72%
Qualified XII (1.75) 10.073 10.362 2.87%
Qualified XIII 10.005 10.379 3.74%
Qualified XV 9.998 10.379 3.81%
Qualified XVI 10.010 10.362 3.52%
Qualified XVII 10.020 10.370 3.49%
Qualified XVIII 10.026 10.369 3.42%
Qualified XXI 10.021 10.384 3.62%
Qualified XXII 10.007 10.384 3.77%
- -------------------------------------------------------------------------------------
Aetna Get Fund, Series H:
Qualified III 10.001 10.020 0.19%
Qualified VI 10.000 10.020 0.20%
Qualified X (1.25) 10.000 10.020 0.20%
Qualified XI 10.007 10.022 0.15%
Qualified XII (0.95) 10.015 10.021 0.06%
Qualified XII (1.25) 10.000 10.021 0.21%
Qualified XII (1.30) 10.005 10.021 0.16%
Qualified XII (1.35) 10.005 10.020 0.15%
Qualified XII (1.45) 10.007 10.020 0.13%
Qualified XIII 10.008 10.021 0.13%
Qualified XV 10.006 10.021 0.15%
Qualified XVI 10.015 10.019 0.04%
Qualified XVIII 10.006 10.020 0.14%
Qualified XXI 10.014 10.022 0.08%
- -------------------------------------------------------------------------------------
Aetna Growth and Income VP:
Qualified I 323.019 374.804 16.03%
Qualified III 245.765 284.994 15.96%
Qualified V 25.037 28.987 15.78%
Qualified VI 25.094 29.100 15.96%
Qualified VII 23.657 27.450 16.03%
Qualified VIII 23.301 27.018 15.95%
Qualified IX 23.323 27.182 16.55%
Qualified X (1.15) 25.225 29.280 16.08%
Qualified X (1.25) 25.094 29.100 15.96%
Qualified XI 25.319 29.475 16.41%
Qualified XII (0.40) 16.747 19.586 16.95%
<CAPTION>
- --------------------------------------------------------------------------------------
Units
Outstanding Reserves
at End at End
of Year of Year
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Get Fund, Series E (continued):
Qualified XVI (6) 36,127.2 $ 388,203
Qualified XVII (6) 163,057.8 1,754,543
Qualified XVIII (6) 69,586.5 748,228
Qualified XXI (6) 208,645.0 2,250,556
Qualified XXII (6) 181,444.5 1,957,158
- --------------------------------------------------------------------------------------
Aetna Get Fund, Series G:
Qualified III (9) 652,808.0 6,769,699
Qualified VI (9) 1,877,479.2 19,469,026
Qualified X (1.25) (9) 493,375.1 5,115,589
Qualified XI (9) 90,486.0 939,626
Qualified XII (0.65) (9) 6,272.2 65,212
Qualified XII (0.80) (11) 1,379.7 14,338
Qualified XII (0.90) (10) 340.0 3,532
Qualified XII (0.95) (9) 14,669.7 152,263
Qualified XII (1.00) (10) 498.6 5,178
Qualified XII (1.05) (9) 212,129.8 2,202,850
Qualified XII (1.10) (9) 51,654.2 536,305
Qualified XII (1.25) (9) 739,313.3 7,672,438
Qualified XII (1.30) (9) 1,182.2 12,267
Qualified XII (1.35) (11) 3,428.9 35,574
Qualified XII (1.40) (9) 3,266.1 33,879
Qualified XII (1.45) (9) 40,814.1 423,298
Qualified XII (1.75) (12) 3,871.6 40,116
Qualified XIII (9) 30,304.5 314,543
Qualified XV (9) 34,688.8 360,048
Qualified XVI (9) 11,830.8 122,588
Qualified XVII (10) 29,549.5 306,422
Qualified XVIII (10) 70,357.2 729,503
Qualified XXI (10) 13,722.6 142,499
Qualified XXII (9) 19,410.4 201,562
- --------------------------------------------------------------------------------------
Aetna Get Fund, Series H:
Qualified III (12) 53,208.1 533,130
Qualified VI (12) 54,199.7 543,065
Qualified X (1.25) (12) 11,861.2 118,846
Qualified XI (12) 420.0 4,209
Qualified XII (0.95) (12) 1,556.5 15,598
Qualified XII (1.25) (12) 36,046.3 361,213
Qualified XII (1.30) (12) 1,295.0 12,976
Qualified XII (1.35) (12) 571.4 5,726
Qualified XII (1.45) (12) 3,803.9 38,115
Qualified XIII (12) 448.9 4,498
Qualified XV (12) 357.1 3,578
Qualified XVI (12) 1,043.1 10,451
Qualified XVIII (12) 11,877.3 119,007
Qualified XXI (12) 1,214.6 12,173
- --------------------------------------------------------------------------------------
Aetna Growth and Income VP:
Qualified I 124,050.3 46,494,563
Qualified III 1,555,542.4 443,319,945
Qualified V 15,312.1 443,854
Qualified VI 107,941,231.7 3,141,089,842
Qualified VII 7,891,082.0 216,606,278
Qualified VIII 52,006.6 1,405,121
Qualified IX 18,313.2 497,783
Qualified X (1.15) 488,809.5 14,312,523
Qualified X (1.25) 17,496,240.9 509,140,609
Qualified XI 4,530,330.3 133,533,424
Qualified XII (0.40) 2,978,732.9 58,340,903
</TABLE>
S-12
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (continued):
<TABLE>
<CAPTION>
- -----------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- -----------------------------------------------------------------
<S> <C> <C>
Aetna Growth and Income VP (continued):
Qualified XII (0.45) $ 10.152 $ 11.867
Qualified XII (0.50) 10.665 12.460
Qualified XII (0.55) 10.922 11.847
Qualified XII (0.65) 10.867 11.828
Qualified XII (0.70) 10.936 11.819
Qualified XII (0.75) 10.133 11.809
Qualified XII (0.80) 11.108 12.939
Qualified XII (0.85) 16.779 19.535
Qualified XII (0.90) 10.804 12.572
Qualified XII (0.95) 16.735 19.464
Qualified XII (1.00) 16.713 19.429
Qualified XII (1.05) 16.691 19.393
Qualified XII (1.10) 16.669 19.358
Qualified XII (1.15) 16.647 19.323
Qualified XII (1.20) 16.625 19.288
Qualified XII (1.25) 16.603 19.253
Qualified XII (1.30) 16.581 19.218
Qualified XII (1.40) 16.537 19.148
Qualified XII (1.50) 16.493 19.078
Qualified XIII 25.291 29.416
Qualified XV 25.249 29.367
Qualified XVI 24.986 28.902
Qualified XVII 25.193 29.287
Qualified XVIII 25.193 29.287
Qualified XIX 324.288 377.218
Qualified XX 246.731 286.829
Qualified XXI 26.736 29.394
Qualified XXII 26.781 29.443
Annuity contracts in payment period
- -----------------------------------------------------------------
Aetna Growth VP:
Qualified III 13.597 18.124
Qualified V 17.862 23.771
Qualified VI 17.912 23.875
Qualified VIII 17.909 23.870
Qualified X (1.15) 17.943 23.940
Qualified X (1.25) 17.912 23.875
Qualified XI 18.005 24.094
Qualified XII (0.40) 18.018 24.222
Qualified XII (0.45) 11.470 15.412
Qualified XII (0.50) 12.397 16.649
Qualified XII (0.55) 12.980 15.387
Qualified XII (0.65) 12.835 15.362
Qualified XII (0.70) 12.378 15.350
Qualified XII (0.75) 11.449 15.338
Qualified XII (0.80) 13.030 17.447
Qualified XII (0.85) 18.036 24.137
Qualified XII (0.90) 12.681 16.962
Qualified XII (0.95) 18.005 24.071
Qualified XII (1.00) 17.989 24.039
Qualified XII (1.05) 17.974 24.006
Qualified XII (1.10) 17.958 23.973
Qualified XII (1.15) 17.943 23.940
Qualified XII (1.20) 17.927 23.908
Qualified XII (1.25) 17.912 23.875
Qualified XII (1.30) 18.880 23.843
Qualified XII (1.40) 17.865 23.778
Qualified XII (1.50) 17.834 23.713
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Growth and Income VP (continued):
Qualified XII (0.45) 16.89% 348,478.4 $ 4,135,244
Qualified XII (0.50) 16.83% 674,274.8 8,401,436
Qualified XII (0.55) 8.47% (11) 1,191,861.0 14,120,507
Qualified XII (0.65) 8.84% (4) 479,212.5 5,668,292
Qualified XII (0.70) 8.07% (5) 296,167.3 3,500,351
Qualified XII (0.75) 16.54% 806,180.4 9,520,415
Qualified XII (0.80) 16.48% 13,348,490.1 172,721,345
Qualified XII (0.85) 16.43% 5,572,186.8 108,853,321
Qualified XII (0.90) 16.36% 128,636.7 1,617,278
Qualified XII (0.95) 16.31% 2,450,338.3 47,693,642
Qualified XII (1.00) 16.25% 12,501,599.0 242,890,830
Qualified XII (1.05) 16.19% 341,405.3 6,621,019
Qualified XII (1.10) 16.13% 143,471.8 2,777,354
Qualified XII (1.15) 16.07% 514,327.5 9,938,338
Qualified XII (1.20) 16.02% 192,381.3 3,710,616
Qualified XII (1.25) 15.96% 35,467.5 682,848
Qualified XII (1.30) 15.90% 4,575.4 87,930
Qualified XII (1.40) 15.79% 2,976.6 56,996
Qualified XII (1.50) 15.67% 55,796.6 1,064,510
Qualified XIII 16.31% 1,028,948.7 30,267,616
Qualified XV 16.31% 975,159.8 28,637,704
Qualified XVI 15.67% 1,449,637.9 41,897,597
Qualified XVII 16.25% 4,958,302.8 145,215,966
Qualified XVIII 16.25% 5,385,977.0 157,741,446
Qualified XIX 16.32% 81,134.8 30,605,514
Qualified XX 16.25% 158,086.1 45,343,739
Qualified XXI 9.94% (5) 948,653.9 27,885,068
Qualified XXII 9.94% (5) 1,234,586.7 36,350,268
Annuity contracts in payment period 373,523,149
- ----------------------------------------------------------------------------------------------------------
Aetna Growth VP:
Qualified III 33.29% 781.3 14,161
Qualified V 33.08% 2,180.1 51,825
Qualified VI 33.29% 3,505,798.2 83,701,657
Qualified VIII 33.28% 1,147.1 27,382
Qualified X (1.15) 33.42% 30,864.5 738,909
Qualified X (1.25) 33.29% 516,658.3 12,335,324
Qualified XI 33.82% 172,921.7 4,166,336
Qualified XII (0.40) 34.43% 59,855.2 1,449,804
Qualified XII (0.45) 34.37% 134,661.4 2,075,404
Qualified XII (0.50) 34.30% 34,477.5 574,011
Qualified XII (0.55) 18.54% (11) 12,695.3 195,345
Qualified XII (0.65) 19.69% (10) 17,761.6 272,862
Qualified XII (0.70) 24.01% (5) 9,291.4 142,622
Qualified XII (0.75) 33.97% 28,754.1 441,021
Qualified XII (0.80) 33.90% 728,963.9 12,718,065
Qualified XII (0.85) 33.83% 65,689.6 1,585,562
Qualified XII (0.90) 33.76% 4,181.5 70,925
Qualified XII (0.95) 33.69% 53,956.8 1,298,817
Qualified XII (1.00) 33.63% 550,969.6 13,244,542
Qualified XII (1.05) 33.56% 44,979.2 1,079,764
Qualified XII (1.10) 33.49% 14,642.6 351,029
Qualified XII (1.15) 33.42% 25,112.6 601,206
Qualified XII (1.20) 33.36% 7,994.8 191,138
Qualified XII (1.25) 33.29% 7,486.1 178,733
Qualified XII (1.30) 26.29% (2) 380.7 9,078
Qualified XII (1.40) 33.10% 745.5 17,726
Qualified XII (1.50) 32.97% 5,473.2 129,785
</TABLE>
S-13
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Growth VP (continued):
Qualified XIII $18.005 $24.071 33.69% 26,330.1 $ 633,804
Qualified XV 18.005 24.071 33.69% 24,433.9 588,158
Qualified XVI 17.834 23.713 32.97% 63,830.9 1,513,617
Qualified XVII 17.912 23.875 33.29% 48,373.4 1,154,926
Qualified XVIII 18.010 24.091 33.76% 26,741.4 644,219
Qualified XXI 19.053 24.094 26.46% (5) 61,302.5 1,477,003
Qualified XXII 19.053 24.094 26.46% (5) 72,900.7 1,756,446
Annuity contracts in payment period 71,588
- --------------------------------------------------------------------------------------------------------------------------------
Aetna High Yield VP:
Qualified VI 9.212 9.739 5.72% 151,580.7 1,476,308
Qualified X (1.25) 9.212 9.739 5.72% 10,892.8 106,090
Qualified XI 9.231 9.798 6.14% 6,159.5 60,351
Qualified XII (0.40) 9.238 9.850 6.62% 2,048.8 20,181
Qualified XII (0.45) 9.743 9.912 1.73% (11) 68.0 674
Qualified XII (0.50) 9.260 9.864 6.52% 2,779.3 27,414
Qualified XII (0.55) 9.577 9.896 3.33% (11) 128.7 1,273
Qualified XII (0.65) 9.554 9.880 3.41% (10) 215.0 2,124
Qualified XII (0.70) 9.827 9.872 0.46% (5) 75.9 750
Qualified XII (0.75) 9.284 9.864 6.25% 97.6 963
Qualified XII (0.80) 9.241 9.814 6.20% 6,652.0 65,281
Qualified XII (0.85) 9.238 9.806 6.15% 7,192.3 70,524
Qualified XII (0.90) 9.802 9.797 (0.05%) (12) 146.2 1,432
Qualified XII (0.95) 9.231 9.789 6.04% 14,009.2 137,135
Qualified XII (1.00) 9.228 9.781 5.99% 11,321.5 110,732
Qualified XII (1.05) 9.225 9.772 5.93% 446.9 4,367
Qualified XII (1.10) 9.222 9.764 5.88% 51.2 500
Qualified XII (1.15) 9.218 9.756 5.84% 362.6 3,538
Qualified XII (1.20) 9.215 9.748 5.78% 118.8 1,158
Qualified XII (1.25) 9.348 9.739 4.18% (1) 259.8 2,531
Qualified XII (1.40) 9.555 9.715 1.67% (5) 29.8 290
Qualified XIII 9.231 9.789 6.04% 4.5 44
Qualified XV 9.231 9.789 6.04% 1,593.9 15,603
Qualified XVI 9.196 9.698 5.46% 706.9 6,855
Qualified XVII 9.212 9.739 5.72% 2,025.3 19,726
Qualified XVIII 9.212 9.739 5.72% 1,069.9 10,420
Qualified XXI 9.492 9.798 3.22% (8) 61.2 600
Qualified XXII 9.716 9.798 0.84% (5) 3,126.0 30,629
- --------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Qualified III 10.578 10.333 (2.32%) 96,745.1 999,704
- --------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP:
Qualified V 18.704 22.923 22.56% 1,406.1 32,233
Qualified VI 18.772 23.044 22.76% 10,058,180.6 231,780,884
Qualified VIII 18.769 23.038 22.74% 1,284.5 29,593
Qualified X (1.15) 18.815 23.120 22.88% 56,950.1 1,316,689
Qualified X (1.25) 18.772 23.044 22.76% 1,067,590.0 24,601,562
Qualified XI 18.902 23.294 23.24% 580,524.9 13,523,011
Qualified XII (0.40) 18.916 23.418 23.80% 193,246.7 4,525,512
Qualified XII (0.45) 11.307 13.991 23.74% 226,926.8 3,174,926
Qualified XII (0.50) 12.019 14.865 23.68% 24,910.6 370,302
Qualified XII (0.55) 12.633 13.968 10.57% (11) 107,026.9 1,494,998
Qualified XII (0.65) 12.586 13.946 10.81% (4) 198,941.1 2,774,421
Qualified XII (0.70) 12.362 13.935 12.72% (5) 34,699.5 483,527
Qualified XII (0.75) 11.286 13.923 23.37% 81,577.5 1,135,841
Qualified XII (0.80) 12.587 15.521 23.31% 2,792,639.0 43,344,718
Qualified XII (0.85) 18.945 23.350 23.25% 611,611.4 14,280,925
Qualified XII (0.90) 12.206 15.036 23.19% 14,614.0 219,739
Qualified XII (0.95) 18.902 23.273 23.12% 297,993.7 6,935,159
</TABLE>
S-14
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (continued):
<TABLE>
<CAPTION>
- --------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- --------------------------------------------------------------------
<S> <C> <C>
Aetna Index Plus Large Cap VP (continued):
Qualified XII (1.00) $18.880 $23.235
Qualified XII (1.05) 18.859 23.196
Qualified XII (1.10) 18.837 23.158
Qualified XII (1.15) 18.815 23.120
Qualified XII (1.20) 18.794 23.082
Qualified XII (1.25) 18.772 23.044
Qualified XII (1.30) 18.751 23.006
Qualified XII (1.40) 18.708 22.930
Qualified XII (1.50) 18.665 22.855
Qualified XIII 18.902 23.273
Qualified XIV 18.772 23.044
Qualified XV 18.888 23.256
Qualified XVI 18.691 22.887
Qualified XVII 18.802 23.103
Qualified XVIII 18.876 23.252
Qualified XXI 20.242 23.277
Qualified XXII 20.257 23.294
Annuity contracts in payment period
- --------------------------------------------------------------------
Aetna Index Plus Mid Cap VP:
Qualified III 11.338 12.967
Qualified VI 10.891 12.455
Qualified VIII 10.582 12.454
Qualified X (1.25) 10.891 12.455
Qualified XI 10.913 12.530
Qualified XII (0.40) 10.921 12.597
Qualified XII (0.45) 10.889 12.916
Qualified XII (0.50) 10.947 12.614
Qualified XII (0.55) 11.478 12.896
Qualified XII (0.65) 11.204 12.875
Qualified XII (0.70) 11.323 12.864
Qualified XII (0.75) 11.183 12.854
Qualified XII (0.80) 10.925 12.551
Qualified XII (0.85) 10.921 12.540
Qualified XII (0.90) 11.099 12.529
Qualified XII (0.95) 10.913 12.519
Qualified XII (1.00) 10.909 12.508
Qualified XII (1.05) 10.906 12.498
Qualified XII (1.10) 10.902 12.487
Qualified XII (1.15) 10.898 12.477
Qualified XII (1.20) 10.894 12.466
Qualified XII (1.25) 10.154 12.455
Qualified XII (1.30) 10.887 12.445
Qualified XII (1.50) 10.872 12.403
Qualified XIII 10.913 12.519
Qualified XV 10.913 12.519
Qualified XVI 10.872 12.403
Qualified XVIII 10.891 12.455
Qualified XXI 10.927 12.530
Qualified XXII 10.927 12.530
- --------------------------------------------------------------------
Aetna Index Plus Small Cap VP:
Qualified III 9.157 10.019
Qualified VI 8.815 9.645
Qualified VIII 8.606 9.644
Qualified X (1.15) 9.414 9.661
Qualified X (1.25) 8.815 9.645
Qualified XI 8.834 9.703
Qualified XII (0.40) 8.840 9.754
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Index Plus Large Cap VP (continued):
Qualified XII (1.00) 23.07% 1,544,113.0 $35,876,783
Qualified XII (1.05) 23.00% 61,199.8 1,419,609
Qualified XII (1.10) 22.94% 65,998.6 1,528,406
Qualified XII (1.15) 22.88% 49,777.3 1,150,854
Qualified XII (1.20) 22.82% 32,935.8 760,222
Qualified XII (1.25) 22.76% 6,042.9 139,252
Qualified XII (1.30) 22.69% 14,317.4 329,386
Qualified XII (1.40) 22.57% 1,398.9 32,077
Qualified XII (1.50) 22.45% 22,096.9 505,026
Qualified XIII 23.12% 83,940.6 1,953,535
Qualified XIV 22.76% 2,748,955.1 63,346,969
Qualified XV 23.13% 37,025.1 861,037
Qualified XVI 22.45% 118,787.7 2,718,738
Qualified XVII 22.88% 80,552.2 1,861,018
Qualified XVIII 23.18% 53,167.9 1,236,259
Qualified XXI 14.99% (5) 309,654.8 7,207,844
Qualified XXII 14.99% (5) 120,481.2 2,806,532
Annuity contracts in payment period 1,234,629
- -------------------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP:
Qualified III 14.37% 73,984.0 959,354
Qualified VI 14.36% 395,149.5 4,921,781
Qualified VIII 17.69% (1) 1.5 18
Qualified X (1.25) 14.36% 51,901.1 646,454
Qualified XI 14.82% 32,616.9 408,704
Qualified XII (0.40) 15.35% 2,808.2 35,376
Qualified XII (0.45) 18.62% (9) 2,661.4 34,376
Qualified XII (0.50) 15.23% 3,620.5 45,671
Qualified XII (0.55) 12.35% (11) 60.3 777
Qualified XII (0.65) 14.91% (10) 5,592.0 71,996
Qualified XII (0.70) 13.61% (5) 285.2 3,669
Qualified XII (0.75) 14.94% 3,958.9 50,888
Qualified XII (0.80) 14.88% 50,226.6 630,372
Qualified XII (0.85) 14.82% 16,931.2 212,317
Qualified XII (0.90) 12.88% (9) 41.6 521
Qualified XII (0.95) 14.72% 2,499.6 31,292
Qualified XII (1.00) 14.66% 62,741.6 784,786
Qualified XII (1.05) 14.60% 460.2 5,751
Qualified XII (1.10) 14.54% 1,327.0 16,571
Qualified XII (1.15) 14.49% 933.2 11,643
Qualified XII (1.20) 14.43% 1,114.9 13,898
Qualified XII (1.25) 22.66% (3) 1,234.4 15,375
Qualified XII (1.30) 14.31% 385.2 4,794
Qualified XII (1.50) 14.08% 160.9 1,995
Qualified XIII 14.72% 5,399.2 67,592
Qualified XV 14.72% 3,069.4 38,425
Qualified XVI 14.08% 3,733.0 46,300
Qualified XVIII 14.36% 3,584.7 44,650
Qualified XXI 14.67% (5) 2,026.9 25,398
Qualified XXII 14.67% (5) 6,385.8 80,016
- -------------------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP:
Qualified III 9.41% 118,433.1 1,186,554
Qualified VI 9.42% 407,202.6 3,927,371
Qualified VIII 12.06% (1) 1.8 18
Qualified X (1.15) 2.62% (12) 1,062.2 10,262
Qualified X (1.25) 9.42% 73,715.1 710,965
Qualified XI 9.84% 14,120.0 137,004
Qualified XII (0.40) 10.34% 2,620.1 25,558
</TABLE>
S-15
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Index Plus Small Cap VP (continued):
Qualified XII (0.45) $ 8.954 $10.166 13.54% (9) 1,372.7 $ 13,956
Qualified XII (0.50) 8.861 9.768 10.24% 1,189.7 11,621
Qualified XII (0.55) 9.235 10.150 9.91% (11) 70.3 714
Qualified XII (0.65) 8.416 10.134 20.41% (4) 40,166.0 407,029
Qualified XII (0.70) 8.998 10.126 12.54% (9) 42.2 427
Qualified XII (0.75) 9.201 10.117 9.96% 2,982.2 30,172
Qualified XII (0.80) 8.843 9.718 9.89% 50,270.2 488,546
Qualified XII (0.85) 8.840 9.710 9.84% 20,738.7 201,377
Qualified XII (0.90) 8.837 9.702 9.79% 585.8 5,683
Qualified XII (0.95) 8.834 9.694 9.74% 16,330.3 158,302
Qualified XII (1.00) 8.831 9.686 9.68% 63,842.3 618,352
Qualified XII (1.05) 8.827 9.677 9.63% 1,537.6 14,880
Qualified XII (1.10) 8.476 9.669 14.08% (2) 1,596.3 15,435
Qualified XII (1.15) 8.821 9.661 9.52% 3,035.3 29,325
Qualified XII (1.20) 8.818 9.653 9.47% 1,732.9 16,727
Qualified XII (1.30) 8.812 9.637 9.36% 468.3 4,513
Qualified XII (1.50) 8.800 9.604 9.14% 233.0 2,238
Qualified XIII 8.834 9.694 9.74% 5,249.1 50,884
Qualified XV 8.834 9.694 9.74% 1,965.0 19,048
Qualified XVI 8.800 9.604 9.14% 1,705.1 16,376
Qualified XVII 8.815 9.645 9.42% 722.4 6,968
Qualified XVIII 8.815 9.645 9.42% 6,066.5 58,510
Qualified XXI 8.783 9.703 10.47% (5) 5,599.7 54,332
Qualified XXII 8.783 9.703 10.47% (5) 5,602.6 54,361
- ---------------------------------------------------------------------------------------------------------------------------------
Aetna International VP:
Qualified V 10.104 14.554 44.04% (4) 56.3 819
Qualified VI 9.765 14.594 49.45% 271,051.8 3,955,686
Qualified VIII 9.945 14.592 46.73% (1) 5.3 77
Qualified X (1.15) 11.160 14.618 30.99% (10) 7,827.5 114,426
Qualified X (1.25) 9.765 14.594 49.45% 55,009.4 802,798
Qualified XI 9.785 14.682 50.05% 5,886.4 86,422
Qualified XII (0.40) 10.059 14.760 46.73% (2) 1,479.7 21,840
Qualified XII (0.45) 9.567 14.414 50.66% 19,616.2 282,743
Qualified XII (0.50) 9.815 14.780 50.59% 1,028.7 15,204
Qualified XII (0.55) 11.236 14.391 28.08% (11) 59.2 852
Qualified XII (0.65) 11.021 14.367 30.36% (10) 405.0 5,818
Qualified XII (0.70) 10.927 14.356 31.38% (10) 13.7 196
Qualified XII (0.75) 9.550 14.344 50.20% 133.9 1,921
Qualified XII (0.80) 9.795 14.705 50.13% 43,135.0 634,305
Qualified XII (0.85) 9.792 14.693 50.05% 12,522.6 183,991
Qualified XII (0.90) 11.286 14.680 30.07% (9) 23.5 345
Qualified XII (0.95) 9.785 14.668 49.90% 4,750.0 69,672
Qualified XII (1.00) 9.781 14.656 49.84% 54,742.1 802,278
Qualified XII (1.05) 9.778 14.643 49.75% 416.6 6,101
Qualified XII (1.10) 9.800 14.631 49.30% (2) 767.4 11,228
Qualified XII (1.15) 9.771 14.618 49.61% 726.0 10,612
Qualified XII (1.20) 9.768 14.606 49.53% 354.4 5,176
Qualified XII (1.25) 10.086 14.594 44.70% (3) 126.2 1,841
Qualified XII (1.30) 10.019 14.582 45.54% (2) 149.4 2,178
Qualified XII (1.40) 10.925 14.557 33.24% (7) 21.1 307
Qualified XII (1.50) 10.050 14.532 44.60% (1) 36.4 529
Qualified XIII 9.785 14.668 49.90% 1,202.9 17,644
Qualified XV 9.785 14.668 49.90% 752.4 11,036
Qualified XVI 9.748 14.532 49.08% 4,118.1 59,846
Qualified XVIII 9.765 14.594 49.45% 21,170.8 308,963
Qualified XXI 10.489 14.681 39.97% (5) 1,249.9 18,351
Qualified XXII 10.489 14.681 39.97% (5) 19,174.1 281,504
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
S-16
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Legacy VP:
Qualified III $14.248 $15.070 5.77% 46,461.8 $ 700,166
Qualified V 14.171 14.964 5.60% 739.3 11,062
Qualified VI 14.248 15.070 5.77% 1,420,930.7 21,413,019
Qualified X (1.15) 14.360 15.203 5.87% 43,421.5 660,142
Qualified X (1.25) 14.310 15.135 5.77% 412,345.7 6,240,997
Qualified XI 14.375 15.264 6.18% 53,313.0 813,781
Qualified XII (0.40) 13.111 13.986 6.67% 21,808.7 305,011
Qualified XII (0.45) 10.103 10.738 6.29% (1) 32,691.1 351,048
Qualified XII (0.50) 10.293 10.968 6.56% 495.1 5,430
Qualified XII (0.55) 10.273 10.721 4.36% (11) 22,642.8 242,755
Qualified XII (0.65) 10.114 10.704 5.83% (4) 62,233.0 666,127
Qualified XII (0.70) 10.364 10.695 3.19% (5) 834.1 8,920
Qualified XII (0.75) 10.054 10.686 6.29% 19,173.7 204,899
Qualified XII (0.80) 10.423 11.073 6.24% 232,706.5 2,576,858
Qualified XII (0.85) 13.136 13.950 6.20% 83,669.8 1,167,153
Qualified XII (0.90) 10.351 10.986 6.13% 549.0 6,032
Qualified XII (0.95) 13.102 13.899 6.08% 38,638.7 537,032
Qualified XII (1.00) 13.084 13.874 6.04% 197,880.9 2,745,308
Qualified XII (1.05) 13.067 13.848 5.98% 38,755.2 536,693
Qualified XII (1.10) 13.050 13.823 5.92% 23,031.1 318,362
Qualified XII (1.15) 13.033 13.798 5.87% 19,761.9 272,674
Qualified XII (1.20) 13.015 13.773 5.82% 27,715.3 381,719
Qualified XII (1.25) 12.998 13.748 5.77% 5,897.3 81,074
Qualified XII (1.30) 12.981 13.723 5.72% 1,546.2 21,218
Qualified XII (1.40) 12.666 13.673 7.95% (3) 125.0 1,709
Qualified XII (1.50) 12.913 13.623 5.50% 7,895.5 107,563
Qualified XIII 14.361 15.234 6.08% 3,378.7 51,473
Qualified XV 14.336 15.208 6.08% 7,165.0 108,967
Qualified XVI 14.187 14.967 5.50% 23,514.7 351,949
Qualified XVII 14.327 15.206 6.14% 22,032.6 335,024
Qualified XVIII 14.389 15.272 6.14% 43,007.6 656,814
Qualified XXI 14.711 15.222 3.47% (5) 42,489.1 646,778
Qualified XXII 14.736 15.248 3.47% (5) 8,034.4 122,513
Annuity contracts in payment period 247,224
- -------------------------------------------------------------------------------------------------------------------------------
Aetna Money Market VP:
Qualified I 43.523 45.192 3.83% 35,830.2 1,619,232
Qualified III 42.883 44.501 3.77% 845,679.0 37,633,362
Qualified V 12.362 12.808 3.61% 26,389.7 337,990
Qualified VI 12.447 12.917 3.78% 11,010,658.5 142,219,462
Qualified VII 12.367 12.842 3.84% 318,287.7 4,087,302
Qualified VIII 11.986 12.437 3.76% 3,577.1 44,489
Qualified IX 12.349 12.847 4.03% 1,744.1 22,406
Qualified X (1.15) 12.512 12.997 3.88% 348,707.6 4,532,211
Qualified X (1.25) 12.447 12.917 3.78% 2,636,397.2 34,053,096
Qualified XI 12.558 13.083 4.18% 345,616.6 4,521,799
Qualified XII (0.40) 11.225 11.748 4.66% 271,583.3 3,190,538
Qualified XII (0.45) 10.706 10.777 0.66% (11) 41,968.6 452,293
Qualified XII (0.50) 10.399 10.872 4.55% 70,538.5 766,899
Qualified XII (0.55) 10.669 10.760 0.85% (11) 67,586.8 727,205
Qualified XII (0.65) 10.407 10.742 3.22% (4) 249,861.7 2,684,068
Qualified XII (0.70) 10.434 10.734 2.88% (5) 38,318.7 411,297
Qualified XII (0.75) 10.283 10.725 4.30% 23,586.3 252,961
Qualified XII (0.80) 10.414 10.855 4.23% 1,891,667.2 20,534,942
Qualified XII (0.85) 11.246 11.717 4.19% 472,334.7 5,534,575
Qualified XII (0.90) 10.381 10.811 4.14% 11,231.6 121,422
Qualified XII (0.95) 11.217 11.675 4.08% 392,226.2 4,579,187
Qualified XII (1.00) 11.202 11.654 4.03% 2,142,833.9 24,971,836
</TABLE>
S-17
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Money Market VP (continued):
Qualified XII (1.05) $11.187 $11.632 3.98% 47,453.3 $ 551,997
Qualified XII (1.10) 11.172 11.611 3.93% 25,798.4 299,553
Qualified XII (1.15) 11.158 11.590 3.87% 87,883.4 1,018,584
Qualified XII (1.20) 11.143 11.569 3.82% 40,450.3 467,972
Qualified XII (1.25) 11.128 11.548 3.77% 11,404.3 131,697
Qualified XII (1.30) 11.114 11.527 3.72% 5,569.1 64,195
Qualified XII (1.40) 11.084 11.485 3.62% 441.1 5,066
Qualified XII (1.50) 11.055 11.443 3.51% 14,502.9 165,962
Qualified XIII 12.545 13.057 4.08% 117,934.1 1,539,853
Qualified XV 12.524 13.035 4.08% 81,149.2 1,057,796
Qualified XVI 12.393 12.829 3.52% 136,761.4 1,754,461
Qualified XVII 12.447 12.917 3.78% 515,620.8 6,660,030
Qualified XVIII 12.447 12.917 3.78% 816,768.4 10,549,812
Qualified XIX 43.523 45.192 3.83% 15,404.6 696,161
Qualified XX 42.883 44.501 3.77% 82,223.8 3,659,023
Qualified XXI 12.707 13.047 2.68% (5) 139,149.8 1,815,524
Qualified XXII 12.728 13.069 2.68% (5) 124,834.9 1,631,463
Annuity contracts in payment period 80,784
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP:
Qualified V 8.529 8.370 (1.86%) (3) 13.7 115
Qualified VI 8.873 8.393 (5.41%) 140,481.1 1,179,054
Qualified VIII 8.872 8.392 (5.41%) 242.7 2,037
Qualified X (1.25) 8.873 8.393 (5.41%) 12,462.0 104,594
Qualified XI 8.891 8.444 (5.03%) 13,312.1 112,401
Qualified XII (0.40) 8.898 8.488 (4.61%) 2,266.6 19,240
Qualified XII (0.45) 8.436 8.544 1.28% (11) 33.3 284
Qualified XII (0.50) 8.919 8.500 (4.70%) 0.1 1
Qualified XII (0.65) 8.263 8.517 3.07% (11) 14.8 126
Qualified XII (0.70) 8.621 8.510 (1.29%) (9) 14.3 122
Qualified XII (0.75) 8.944 8.503 (4.93%) 74.8 636
Qualified XII (0.80) 8.900 8.457 (4.98%) 21,244.9 179,671
Qualified XII (0.85) 8.897 8.450 (5.02%) 2,944.7 24,882
Qualified XII (0.95) 8.891 8.436 (5.12%) 17,117.9 144,401
Qualified XII (1.00) 8.888 8.429 (5.16%) 11,149.7 93,976
Qualified XII (1.05) 8.885 8.421 (5.22%) 171.0 1,440
Qualified XII (1.10) 8.882 8.414 (5.27%) 382.5 3,219
Qualified XII (1.15) 8.879 8.407 (5.32%) 3,933.4 33,069
Qualified XII (1.20) 8.876 8.400 (5.36%) 913.7 7,675
Qualified XII (1.25) 8.830 8.393 (4.95%) (9) 1.1 10
Qualified XII (1.40) 9.402 8.372 (10.96%) (5) 32.8 275
Qualified XIII 8.891 8.436 (5.12%) 1,263.7 10,660
Qualified XV 8.891 8.436 (5.12%) 107.2 904
Qualified XVI 8.857 8.358 (5.63%) 1,197.0 10,004
Qualified XVIII 8.873 8.393 (5.41%) 2,294.5 19,258
Qualified XXI 9.523 8.443 (11.34%) (5) 607.9 5,133
Qualified XXII 9.523 8.443 (11.34%) (5) 3,605.0 30,438
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Small Company VP:
Qualified V 13.595 17.540 29.02% 35.8 628
Qualified VI 13.633 17.617 29.22% 1,598,681.6 28,163,583
Qualified VIII 13.631 17.613 29.21% 195.3 3,440
Qualified X (1.15) 13.657 17.665 29.35% 20,667.6 365,092
Qualified X (1.25) 13.633 17.617 29.22% 183,701.3 3,236,221
Qualified XI 13.704 17.778 29.73% 58,527.7 1,040,512
Qualified XII (0.40) 13.714 17.873 30.33% 18,169.7 324,742
Qualified XII (0.45) 9.176 11.953 30.26% 63,697.3 761,345
Qualified XII (0.50) 9.312 12.124 30.20% 7,762.6 94,111
Qualified XII (0.55) 9.996 11.933 19.38% (11) 17,508.6 208,935
</TABLE>
S-18
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Aetna Small Company VP (continued):
Qualified XII (0.65) $ 9.740 $11.914 22.32% (10) 8,502.2 $ 101,295
Qualified XII (0.70) 9.503 11.904 25.27% (5) 3,486.1 41,501
Qualified XII (0.75) 9.159 11.895 29.87% 15,497.8 184,344
Qualified XII (0.80) 9.764 12.675 29.81% 1,290,260.0 16,353,637
Qualified XII (0.85) 13.728 17.810 29.73% 36,864.4 656,562
Qualified XII (0.90) 9.513 12.336 29.68% 6,872.1 84,774
Qualified XII (0.95) 13.704 17.762 29.61% 54,303.1 964,511
Qualified XII (1.00) 13.692 17.737 29.54% 405,201.8 7,187,234
Qualified XII (1.05) 13.680 17.713 29.48% 6,349.8 112,476
Qualified XII (1.10) 13.668 17.689 29.42% 7,547.6 133,511
Qualified XII (1.15) 13.657 17.665 29.35% 12,872.8 227,397
Qualified XII (1.20) 13.645 17.641 29.29% 18,254.1 322,017
Qualified XII (1.25) 13.633 17.617 29.22% 8,927.9 157,280
Qualified XII (1.40) 13.598 17.545 29.03% 282.6 4,959
Qualified XII (1.50) 13.574 17.497 28.90% 3,951.2 69,135
Qualified XIII 13.704 17.762 29.61% 12,641.7 224,537
Qualified XV 13.704 17.762 29.61% 9,745.4 173,094
Qualified XVI 13.574 17.497 28.90% 18,033.2 315,526
Qualified XVII 13.633 17.617 29.22% 7,350.4 129,491
Qualified XVIII 13.708 17.776 29.68% 4,403.0 78,267
Qualified XXI 14.508 17.778 22.54% (5) 29,451.5 523,590
Qualified XXII 14.508 17.778 22.54% (5) 37,984.5 675,291
Annuity contracts in payment period 11,036
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Value Opportunity VP:
Qualified III 12.088 14.274 18.08% 74,767.5 1,067,264
Qualified V 15.985 18.847 17.90% 286.5 5,399
Qualified VI 16.030 18.930 18.09% 987,707.1 18,697,106
Qualified VIII 16.028 18.926 18.08% 412.6 7,810
Qualified X (1.15) 16.754 18.982 13.30% (9) 2,242.2 42,561
Qualified X (1.25) 16.030 18.930 18.09% 118,475.7 2,242,722
Qualified XI 16.113 19.103 18.56% 52,282.7 998,763
Qualified XII (0.40) 16.125 19.205 19.10% 12,433.6 238,784
Qualified XII (0.45) 12.467 12.665 1.59% (11) 10,292.9 130,365
Qualified XII (0.50) 11.369 13.527 18.98% 2,750.3 37,203
Qualified XII (0.55) 11.893 12.645 6.32% (11) 20,593.3 260,403
Qualified XII (0.65) 11.196 12.625 12.76% (4) 69,481.4 877,183
Qualified XII (0.70) 11.759 12.615 7.28% (5) 2,838.6 35,808
Qualified XII (0.75) 10.620 12.604 18.68% 16,090.7 202,814
Qualified XII (0.80) 11.692 13.870 18.63% 356,704.5 4,947,460
Qualified XII (0.85) 16.141 19.138 18.57% 19,876.9 380,395
Qualified XII (0.90) 11.462 13.583 18.50% 6,153.7 83,584
Qualified XII (0.95) 16.113 19.085 18.44% 42,539.8 811,889
Qualified XII (1.00) 16.099 19.059 18.39% 94,639.0 1,803,762
Qualified XII (1.05) 16.085 19.033 18.33% 4,555.5 86,707
Qualified XII (1.10) 16.071 19.007 18.27% 1,480.1 28,132
Qualified XII (1.15) 16.057 18.982 18.22% 5,972.7 113,371
Qualified XII (1.20) 16.044 18.956 18.15% 12,127.4 229,883
Qualified XII (1.25) 16.030 18.930 18.09% 2,021.5 38,266
Qualified XII (1.30) 16.016 18.904 18.03% 192.0 3,630
Qualified XII (1.40) 15.988 18.852 17.91% 135.5 2,554
Qualified XII (1.50) 15.960 18.801 17.80% 2,344.1 44,071
Qualified XIII 16.113 19.085 18.44% 3,855.4 73,581
Qualified XV 16.113 19.085 18.44% 4,285.3 81,787
Qualified XVI 15.960 18.801 17.80% 12,802.8 240,706
Qualified XVII 16.030 18.930 18.09% 10,011.1 189,507
Qualified XVIII 16.118 19.101 18.51% 2,382.2 45,501
Qualified XXI 17.291 19.103 10.48% (5) 11,791.7 225,258
Qualified XXII 17.291 19.103 10.48% (5) 19,132.0 365,480
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
S-19
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
AIM V.I. Funds:
Capital Appreciation Fund:
Qualified V $10.681 $13.738 28.62% (10) 360.5 $ 4,952
Qualified VI 10.217 13.753 34.61% (5) 77,469.7 1,065,430
Qualified VIII 10.134 13.752 35.70% (10) 4.0 55
Qualified X (1.15) 10.465 13.762 31.51% (8) 78.7 1,083
Qualified X (1.25) 10.217 13.753 34.61% (5) 7,991.7 109,909
Qualified XII (0.40) 10.105 13.834 36.90% (9) 1,128.9 15,617
Qualified XII (0.55) 10.908 13.820 26.70% (11) 48.0 663
Qualified XII (0.70) 10.189 13.805 35.49% (9) 82.4 1,137
Qualified XII (0.75) 9.957 13.801 38.61% (5) 49.2 680
Qualified XII (0.80) 10.166 13.796 35.71% (6) 21,990.9 303,382
Qualified XII (0.85) 10.489 13.791 31.48% (6) 2,863.3 39,488
Qualified XII (0.95) 10.487 13.781 31.41% (6) 613.3 8,452
Qualified XII (1.00) 9.821 13.777 40.28% (5) 13,134.2 180,945
Qualified XII (1.05) 9.877 13.772 39.44% (5) 610.7 8,410
Qualified XII (1.10) 10.778 13.767 27.73% (7) 250.6 3,450
Qualified XII (1.15) 9.693 13.762 41.98% (5) 517.7 7,125
Qualified XII (1.20) 10.195 13.758 34.95% (9) 218.3 3,003
Qualified XII (1.25) 12.638 13.753 8.82% (12) 16.6 229
Qualified XII (1.30) 9.857 13.748 39.47% (10) 53.9 741
Qualified XV 9.660 13.745 42.29% (6) 41.7 573
Qualified XVI 10.165 13.729 35.06% (8) 2,372.0 32,565
Qualified XVII 10.649 13.759 29.20% (7) 2,465.1 33,917
Qualified XVIII 10.003 13.759 37.55% (6) 616.6 8,483
- ---------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund:
Qualified VI 9.627 11.716 21.70% (5) 470,276.7 5,509,569
Qualified VIII 10.883 11.715 7.64% (12) 314.0 3,678
Qualified X (1.25) 9.627 11.716 21.70% (5) 53,572.1 627,629
Qualified XII (0.40) 10.351 11.785 13.85% (7) 425.5 5,014
Qualified XII (0.45) 10.518 11.781 12.01% (11) 882.4 10,395
Qualified XII (0.55) 10.229 11.773 15.09% (11) 879.7 10,356
Qualified XII (0.65) 10.785 11.764 9.08% (11) 16.6 195
Qualified XII (0.70) 9.404 11.760 25.05% (9) 41.2 484
Qualified XII (0.75) 9.275 11.756 26.75% (6) 2,337.5 27,480
Qualified XII (0.80) 9.280 11.752 26.64% (6) 81,159.5 953,802
Qualified XII (0.85) 9.575 11.748 22.69% (6) 19,773.7 232,303
Qualified XII (0.95) 10.261 11.740 14.41% (7) 10,352.2 121,534
Qualified XII (1.00) 9.939 11.736 18.08% (5) 160,744.5 1,886,482
Qualified XII (1.05) 9.842 11.732 19.20% (6) 10,546.3 123,728
Qualified XII (1.10) 10.373 11.728 13.06% (7) 280.9 3,295
Qualified XII (1.15) 9.204 11.724 27.38% (8) 463.7 5,436
Qualified XII (1.20) 9.601 11.720 22.07% (6) 178.9 2,096
Qualified XII (1.25) 9.470 11.716 23.72% (10) 22.4 262
Qualified XII (1.30) 10.636 11.712 10.12% (11) 892.6 10,454
Qualified XII (1.50) 9.550 11.695 22.46% (10) 22.4 262
Qualified XIII 9.645 11.710 21.41% (9) 328.1 3,842
Qualified XV 9.601 11.710 21.97% (6) 115.1 1,348
Qualified XVI 9.684 11.695 20.77% (6) 5,151.3 60,246
Qualified XVII 9.763 11.721 20.06% (9) 4,407.5 51,659
Qualified XVIII 9.566 11.721 22.53% (6) 6,703.9 78,575
Qualified XXI 9.727 11.721 20.50% (10) 1,866.7 21,879
- ---------------------------------------------------------------------------------------------------------------------------
Growth Fund:
Qualified V 10.278 12.055 17.29% (10) 375.4 4,525
Qualified VI 9.513 12.069 26.87% (5) 240,556.1 2,903,181
Qualified X (1.15) 10.207 12.077 18.32% (8) 14.3 172
Qualified X (1.25) 9.819 12.069 22.91% (5) 31,910.4 385,114
Qualified XII (0.40) 10.158 12.140 19.51% (9) 114.3 1,387
</TABLE>
S-20
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Growth Fund (continued):
Qualified XII (0.55) $10.242 $12.127 18.40% (11) 989.8 $ 12,004
Qualified XII (0.65) 10.100 12.119 19.99% (10) 1,727.9 20,940
Qualified XII (0.70) 11.387 12.115 6.39% (12) 54.3 658
Qualified XII (0.75) 9.867 12.111 22.74% (8) 97.7 1,184
Qualified XII (0.80) 10.306 12.106 17.47% (7) 51,297.6 621,025
Qualified XII (0.85) 10.118 12.102 19.61% (6) 14,757.5 178,597
Qualified XII (0.90) 11.422 12.098 5.92% (12) 264.3 3,197
Qualified XII (0.95) 9.465 12.094 27.78% (5) 6,721.5 81,288
Qualified XII (1.00) 9.382 12.090 28.86% (5) 32,099.1 388,064
Qualified XII (1.05) 9.632 12.085 25.47% (5) 956.7 11,563
Qualified XII (1.10) 10.484 12.081 15.23% (7) 33.9 409
Qualified XII (1.15) 9.380 12.077 28.75% (5) 1,061.5 12,820
Qualified XII (1.20) 9.493 12.073 27.18% (8) 166.9 2,015
Qualified XII (1.25) 9.783 12.069 23.37% (10) 23.4 283
Qualified XII (1.30) 9.916 12.064 21.66% (9) 105.1 1,268
Qualified XII (1.40) 10.959 12.056 10.01% (11) 2.6 31
Qualified XII (1.50) 9.898 12.048 21.72% (7) 135.2 1,628
Qualified XIII 10.229 12.098 18.27% (7) 110.3 1,334
Qualified XV 10.595 12.098 14.19% (11) 17.8 216
Qualified XVI 10.209 12.048 18.01% (7) 2,770.5 33,378
Qualified XXI 11.240 12.110 7.74% (12) 2,843.4 34,432
- ----------------------------------------------------------------------------------------------------------------------------
Value Fund:
Qualified V 10.069 11.493 14.14% (10) 0.7 8
Qualified VI 9.747 11.506 18.05% (5) 405,286.4 4,663,125
Qualified X (1.15) 10.171 11.514 13.20% (8) 661.7 7,618
Qualified X (1.25) 9.746 11.506 18.06% (5) 49,173.1 565,774
Qualified XII (0.40) 10.177 11.574 13.73% (7) 1,915.7 22,172
Qualified XII (0.45) 9.753 11.570 18.63% (9) 8,954.0 103,595
Qualified XII (0.55) 10.242 11.562 12.89% (11) 202.9 2,345
Qualified XII (0.65) 10.194 11.554 13.34% (10) 733.3 8,472
Qualified XII (0.70) 9.661 11.550 19.55% (9) 79.6 919
Qualified XII (0.75) 9.815 11.546 17.64% (5) 1,010.9 11,672
Qualified XII (0.80) 9.762 11.542 18.23% (5) 166,175.9 1,917,951
Qualified XII (0.85) 10.458 11.538 10.33% (7) 10,688.2 123,317
Qualified XII (0.90) 10.450 11.534 10.37% (7) 616.5 7,111
Qualified XII (0.95) 9.827 11.530 17.33% (6) 14,637.9 168,771
Qualified XII (1.00) 9.747 11.526 18.25% (5) 43,171.5 497,582
Qualified XII (1.05) 10.384 11.522 10.96% (7) 3,085.2 35,547
Qualified XII (1.10) 10.159 11.518 13.38% (7) 500.1 5,760
Qualified XII (1.15) 9.747 11.514 18.13% (5) 115.4 1,329
Qualified XII (1.20) 9.848 11.510 16.88% (9) 156.0 1,795
Qualified XII (1.50) 10.442 11.502 10.15% (11) 66.9 769
Qualified XII (1.30) 10.847 11.494 5.96% (11) 9.9 113
Qualified XII (1.40) 10.003 11.486 14.83% (8) 506.8 5,822
Qualified XIII 9.915 11.495 15.94% (6) 181.1 2,082
Qualified XV 9.845 11.495 16.76% (8) 674.4 7,752
Qualified XVI 9.842 11.486 16.70% (6) 2,077.1 23,858
Qualified XVII 9.778 11.511 17.72% (5) 27,063.0 311,517
Qualified XVIII 10.017 11.511 14.91% (8) 3,587.3 41,293
- ----------------------------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Qualified III 27.186 30.131 10.83% 880,318.8 26,524,926
Qualified V 20.904 23.131 10.65% 1,743.6 40,331
Qualified VI 20.485 22.705 10.84% 1,118,008.2 25,384,126
Qualified VIII 18.609 20.623 10.82% 7,545.8 155,618
Qualified X (1.25) 10.500 11.637 10.83% 29,860.0 347,482
Qualified XI 20.668 22.998 11.27% 68,702.6 1,580,009
Qualified XII (0.40) 14.976 16.740 11.78% 40,497.9 677,943
</TABLE>
S-21
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (continued):
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- ------------------------------------------------------------------------
<S> <C> <C>
Calvert Social Balanced Portfolio (continued):
Qualified XII (0.45) $10.714 $11.970
Qualified XII (0.50) 10.966 12.245
Qualified XII (0.55) 11.207 11.951
Qualified XII (0.65) 11.067 11.932
Qualified XII (0.70) 11.025 11.922
Qualified XII (0.75) 10.694 11.912
Qualified XII (0.80) 11.254 12.530
Qualified XII (0.85) 15.005 16.697
Qualified XII (0.90) 11.320 12.414
Qualified XII (0.95) 14.965 16.636
Qualified XII (1.00) 14.945 16.606
Qualified XII (1.05) 14.926 16.576
Qualified XII (1.10) 14.906 16.546
Qualified XII (1.15) 14.886 16.515
Qualified XII (1.20) 14.867 16.485
Qualified XII (1.25) 14.847 16.455
Qualified XII (1.30) 14.827 16.426
Qualified XII (1.40) 14.950 16.366
Qualified XII (1.50) 14.749 16.306
Qualified XIII 20.646 22.951
Qualified XV 20.612 22.913
Qualified XVI 20.397 22.550
Qualified XVII 20.485 22.705
Qualified XVIII 10.500 11.637
Qualified XXI 21.036 22.935
Qualified XXII 21.071 22.973
- ------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Qualified III 18.285 19.201
Qualified V 17.305 18.143
Qualified VI 17.459 18.334
Qualified VIII 17.395 18.265
Qualified X (1.15) 21.948 23.071
Qualified X (1.25) 21.848 22.942
Qualified XI 17.615 18.570
Qualified XII (0.40) 15.192 16.089
Qualified XII (0.45) 9.968 10.552
Qualified XII (0.50) 10.363 10.964
Qualified XII (0.55) 10.462 10.535
Qualified XII (0.65) 10.691 10.518
Qualified XII (0.70) 11.230 10.509
Qualified XII (0.75) 9.950 10.501
Qualified XII (0.80) 10.850 11.445
Qualified XII (0.85) 15.220 16.047
Qualified XII (0.90) 10.671 11.245
Qualified XII (0.95) 15.180 15.989
Qualified XII (1.00) 15.160 15.960
Qualified XII (1.05) 15.140 15.931
Qualified XII (1.10) 15.120 15.902
Qualified XII (1.15) 15.100 15.873
Qualified XII (1.20) 15.080 15.844
Qualified XII (1.25) 15.061 15.815
Qualified XII (1.30) 15.041 15.786
Qualified XII (1.40) 15.001 15.729
Qualified XII (1.50) 14.961 15.672
Qualified XIII 17.596 18.533
Qualified XV 17.567 18.502
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Increase (Decrease) Units
in Value of Outstanding Reserves
Accumulation at End at End
Unit of Year of Year
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Calvert Social Balanced Portfolio (continued):
Qualified XII (0.45) 11.72% 26,121.4 $ 312,675
Qualified XII (0.50) 11.66% 54,140.9 662,972
Qualified XII (0.55) 6.64% (11) 13,438.2 160,597
Qualified XII (0.65) 7.82% (10) 3,321.9 39,636
Qualified XII (0.70) 8.14% (5) 3,735.6 44,535
Qualified XII (0.75) 11.39% 9,601.8 114,379
Qualified XII (0.80) 11.34% 73,942.9 926,469
Qualified XII (0.85) 11.28% 200,067.8 3,340,502
Qualified XII (0.90) 9.66% (8) 3,588.7 44,549
Qualified XII (0.95) 11.17% 117,901.6 1,961,427
Qualified XII (1.00) 11.11% 178,990.3 2,972,296
Qualified XII (1.05) 11.05% 8,581.1 142,238
Qualified XII (1.10) 11.00% 10,085.2 166,866
Qualified XII (1.15) 10.94% 53,769.7 888,032
Qualified XII (1.20) 10.88% 6,432.6 106,044
Qualified XII (1.25) 10.83% 270.0 4,443
Qualified XII (1.30) 10.78% 43.8 719
Qualified XII (1.40) 9.47% (2) 507.9 8,312
Qualified XII (1.50) 10.56% 3,025.6 49,337
Qualified XIII 11.16% 16,438.0 377,276
Qualified XV 11.16% 6,810.6 156,054
Qualified XVI 10.56% 27,661.0 623,765
Qualified XVII 10.84% 1,312.3 29,796
Qualified XVIII 10.83% 9,410.8 109,514
Qualified XXI 9.03% (5) 2,376.2 54,497
Qualified XXII 9.03% (5) 3,697.4 84,940
- ----------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Qualified III 5.01% 2,271,493.5 43,615,144
Qualified V 4.84% 696.2 12,631
Qualified VI 5.01% 5,366,552.8 98,388,525
Qualified VIII 5.00% 4,753.3 86,821
Qualified X (1.15) 5.12% 94,758.7 2,186,163
Qualified X (1.25) 5.01% 1,171,916.0 26,886,274
Qualified XI 5.42% 221,999.6 4,122,595
Qualified XII (0.40) 5.90% 114,724.9 1,845,765
Qualified XII (0.45) 5.86% 110,939.0 1,170,616
Qualified XII (0.50) 5.80% 15,333.0 168,111
Qualified XII (0.55) 0.70% (11) 65,153.9 686,387
Qualified XII (0.65) (1.62%) (4) 123,331.6 1,297,187
Qualified XII (0.70) (6.42%) (5) 8,104.0 85,168
Qualified XII (0.75) 5.54% 73,216.2 768,837
Qualified XII (0.80) 5.48% 833,428.1 9,538,585
Qualified XII (0.85) 5.43% 303,703.7 4,873,512
Qualified XII (0.90) 5.38% 6,809.4 76,571
Qualified XII (0.95) 5.33% 188,393.5 3,012,143
Qualified XII (1.00) 5.28% 363,065.9 5,794,363
Qualified XII (1.05) 5.22% 62,832.4 1,000,951
Qualified XII (1.10) 5.17% 39,293.5 624,827
Qualified XII (1.15) 5.12% 77,293.8 1,226,854
Qualified XII (1.20) 5.07% 21,440.3 339,694
Qualified XII (1.25) 5.01% 11,532.6 182,388
Qualified XII (1.30) 4.95% 4,118.0 65,008
Qualified XII (1.40) 4.85% 1,188.6 18,696
Qualified XII (1.50) 4.75% 11,234.6 176,064
Qualified XIII 5.33% 30,245.2 560,530
Qualified XV 5.32% 14,978.8 277,139
</TABLE>
S-22
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Equity-Income Portfolio (continued):
Qualified XVI $17.384 $18.209 4.75% 145,786.4 $ 2,654,614
Qualified XVII 17.459 18.334 5.01% 31,846.3 583,859
Qualified XVIII 21.848 22.942 5.01% 19,877.9 456,041
Qualified XXI 19.392 18.519 (4.50%) (5) 25,382.2 470,058
Qualified XXII 19.424 18.550 (4.50%) (5) 37,177.4 689,641
- -------------------------------------------------------------------------------------------------------------------------------
Growth Portfolio:
Qualified I 18.115 24.603 35.82% 2,653.5 65,283
Qualified III 19.406 26.340 35.73% 77.8 2,048
Qualified V 19.285 26.134 35.51% 1,744.6 45,594
Qualified VI 19.155 25.999 35.73% 9,652,435.9 250,951,352
Qualified VIII 19.385 26.310 35.72% 6,647.6 174,898
Qualified X (1.15) 26.764 36.363 35.87% 90,675.2 3,297,257
Qualified X (1.25) 26.641 36.160 35.73% 1,477,316.1 53,419,605
Qualified XI 19.326 26.334 36.26% 476,085.8 12,537,324
Qualified XII (0.40) 17.525 23.989 36.88% 325,063.2 7,798,002
Qualified XII (0.45) 13.493 16.655 23.43% (9) 65,561.2 1,091,891
Qualified XII (0.50) 12.779 17.475 36.75% 49,321.0 861,906
Qualified XII (0.55) 14.192 16.628 17.16% (11) 129,222.6 2,148,677
Qualified XII (0.65) 13.816 16.601 20.16% (4) 309,123.5 5,131,739
Qualified XII (0.70) 13.474 16.588 23.11% (5) 37,939.7 629,327
Qualified XII (0.75) 12.150 16.574 36.41% 110,673.3 1,834,323
Qualified XII (0.80) 13.307 18.143 36.34% 1,602,405.7 29,073,018
Qualified XII (0.85) 17.558 23.927 36.27% 520,647.2 12,457,602
Qualified XII (0.90) 12.978 17.677 36.21% 9,392.8 166,039
Qualified XII (0.95) 17.512 23.840 36.14% 345,699.0 8,241,537
Qualified XII (1.00) 17.489 23.797 36.07% 1,055,741.9 25,123,389
Qualified XII (1.05) 17.466 23.754 36.00% 96,711.6 2,297,248
Qualified XII (1.10) 17.443 23.710 35.93% 59,683.5 1,415,122
Qualified XII (1.15) 17.420 23.667 35.86% 107,839.2 2,552,264
Qualified XII (1.20) 17.397 23.624 35.79% 55,526.7 1,311,781
Qualified XII (1.25) 17.374 23.581 35.73% 23,471.7 553,495
Qualified XII (1.30) 17.351 23.538 35.66% 7,250.6 170,667
Qualified XII (1.40) 17.305 23.453 35.53% 6,553.5 153,700
Qualified XII (1.50) 17.259 23.368 35.40% 30,213.3 706,018
Qualified XIII 19.305 26.281 36.14% 77,944.8 2,048,479
Qualified XV 19.273 26.237 36.13% 43,825.8 1,149,877
Qualified XVI 19.072 25.822 35.39% 200,009.1 5,164,642
Qualified XVII 19.155 25.999 35.73% 60,970.0 1,585,144
Qualified XVIII 26.641 36.160 35.73% 57,973.8 2,096,327
Qualified XXI 21.072 26.262 24.63% (5) 82,068.8 2,155,269
Qualified XXII 21.107 26.305 24.63% (5) 73,156.4 1,924,411
- -------------------------------------------------------------------------------------------------------------------------------
High Income Portfolio:
Qualified III 9.023 9.638 6.82% 194,440.2 1,873,989
- -------------------------------------------------------------------------------------------------------------------------------
Overseas Portfolio:
Qualified V 13.587 19.108 40.63% 32.3 618
Qualified VI 13.662 19.243 40.85% 676,303.2 13,014,360
Qualified VIII 13.658 19.237 40.85% 353.5 6,801
Qualified X (1.15) 14.140 19.936 40.99% 8,088.7 161,259
Qualified X (1.25) 14.074 19.825 40.86% 164,209.0 3,255,428
Qualified XI 13.784 19.492 41.41% 24,274.1 473,141
Qualified XII (0.40) 13.170 18.709 42.06% 30,213.1 565,255
Qualified XII (0.45) 10.647 13.410 25.95% (9) 8,158.2 109,404
Qualified XII (0.50) 10.183 14.451 41.91% 636.2 9,194
Qualified XII (0.55) 11.159 13.389 19.98% (11) 8,970.5 120,104
Qualified XII (0.65) 10.023 13.367 33.36% (4) 15,589.0 208,382
Qualified XII (0.70) 10.077 13.356 32.54% (5) 396.1 5,291
Qualified XII (0.75) 9.427 13.346 41.57% 6,008.6 80,189
</TABLE>
S-23
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Overseas Portfolio (continued):
Qualified XII (0.80) $10.530 $14.900 41.50% 53,816.9 $ 801,849
Qualified XII (0.85) 13.195 18.661 41.42% 20,580.3 384,042
Qualified XII (0.90) 13.705 14.905 8.76% (12) 2,473.7 36,870
Qualified XII (0.95) 13.160 18.593 41.28% 10,722.9 199,368
Qualified XII (1.00) 13.143 18.559 41.21% 52,999.7 983,621
Qualified XII (1.05) 13.126 18.525 41.13% 7,697.7 142,602
Qualified XII (1.10) 13.108 18.492 41.07% 9,932.8 183,673
Qualified XII (1.15) 13.091 18.458 41.00% 10,800.7 199,359
Qualified XII (1.20) 13.074 18.424 40.92% 2,471.1 45,529
Qualified XII (1.25) 13.056 18.391 40.86% 6,717.6 123,543
Qualified XII (1.30) 13.039 18.357 40.79% 469.0 8,610
Qualified XII (1.40) 13.005 18.291 40.65% 156.2 2,857
Qualified XII (1.50) 12.971 18.224 40.50% 955.5 17,413
Qualified XIII 13.769 19.452 41.27% 7,531.1 146,498
Qualified XV 13.746 19.420 41.28% 3,845.1 74,672
Qualified XVI 13.603 19.112 40.50% 12,105.1 231,359
Qualified XVII 13.662 19.243 40.85% 1,455.6 28,011
Qualified XVIII 14.074 19.825 40.86% 2,622.2 51,984
Qualified XXI 14.422 19.438 34.78% (5) 7,321.2 142,309
Qualified XXII 14.446 19.470 34.78% (5) 11,297.7 219,970
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Qualified III 16.719 18.343 9.71% 1,511,789.2 27,730,745
- --------------------------------------------------------------------------------------------------------------------------
Contrafund Portfolio:
Qualified III 22.177 27.214 22.71% 3,780,286.9 102,875,596
Qualified V 19.627 24.046 22.51% 1,845.8 44,384
Qualified VI 19.601 24.053 22.71% 9,498,614.4 228,467,569
Qualified VIII 19.729 24.208 22.70% 3,710.6 89,828
Qualified X (1.15) 22.103 27.150 22.83% 21,611.4 586,742
Qualified X (1.25) 22.023 27.024 22.71% 888,915.1 24,022,425
Qualified XI 19.776 24.363 23.19% 222,596.4 5,423,123
Qualified XII (0.40) 17.813 22.045 23.76% 239,028.1 5,269,342
Qualified XII (0.45) 11.475 14.194 23.69% 268,569.5 3,812,080
Qualified XII (0.50) 11.985 14.817 23.63% 22,845.8 338,510
Qualified XII (0.55) 12.452 14.171 13.81% (11) 119,840.6 1,698,279
Qualified XII (0.65) 12.698 14.148 11.42% (4) 276,640.9 3,914,000
Qualified XII (0.70) 12.471 14.137 13.36% (5) 19,119.6 270,293
Qualified XII (0.75) 11.454 14.126 23.33% 96,687.0 1,365,756
Qualified XII (0.80) 12.589 15.518 23.27% 1,895,669.7 29,416,282
Qualified XII (0.85) 17.847 21.988 23.20% 303,913.8 6,682,417
Qualified XII (0.90) 12.293 15.138 23.14% 25,518.5 386,292
Qualified XII (0.95) 17.800 21.908 23.08% 357,609.8 7,834,494
Qualified XII (1.00) 17.776 21.868 23.02% 1,508,806.9 32,994,816
Qualified XII (1.05) 17.753 21.828 22.95% 82,954.6 1,810,762
Qualified XII (1.10) 17.729 21.789 22.90% 45,202.7 984,910
Qualified XII (1.15) 17.706 21.749 22.83% 112,280.7 2,442,001
Qualified XII (1.20) 17.683 21.710 22.77% 29,985.7 650,976
Qualified XII (1.25) 17.659 21.670 22.71% 13,062.1 283,057
Qualified XII (1.30) 17.636 21.631 22.65% 12,866.9 278,320
Qualified XII (1.40) 17.590 21.552 22.52% 3,061.9 65,990
Qualified XII (1.50) 17.543 21.474 22.41% 14,452.2 310,342
Qualified XIII 19.755 24.314 23.08% 79,041.7 1,921,820
Qualified XV 19.722 24.274 23.08% 37,379.6 907,338
Qualified XVI 19.516 23.889 22.41% 170,565.1 4,074,657
Qualified XVII 19.601 24.053 22.71% 35,985.2 865,543
Qualified XVIII 22.023 27.024 22.71% 19,561.4 528,636
Qualified XXI 21.258 24.296 14.29% (5) 82,919.6 2,014,620
</TABLE>
S-24
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Contrafund Portfolio: (continued):
Qualified XXII $21.293 $24.336 14.29% (5) 111,857.0 $ 2,722,205
- -----------------------------------------------------------------------------------------------------------------------------
Index 500 Portfolio:
Qualified III 23.650 28.147 19.01% 4,354,722.7 122,573,178
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Qualified I 17.901 32.516 81.64% (4) 2,923.0 95,042
Qualified III 24.098 53.644 122.61% 3,274,450.0 175,655,970
Qualified V 20.810 46.252 122.26% 3,751.7 173,525
Qualified VI 20.951 46.640 122.61% 12,224,096.0 570,136,151
Qualified VIII 20.945 46.621 122.59% 8,113.3 378,254
Qualified X (1.15) 20.300 45.235 122.83% 57,149.5 2,585,169
Qualified X (1.25) 20.226 45.025 122.61% 1,118,452.8 50,358,073
Qualified XI 21.139 47.242 123.48% 582,335.3 27,510,669
Qualified XII (0.40) 14.125 31.711 124.50% 405,725.2 12,865,991
Qualified XII (0.45) 17.095 27.222 59.24% (9) 153,108.7 4,167,965
Qualified XII (0.50) 12.541 28.128 124.29% 200,050.7 5,627,045
Qualified XII (0.55) 19.683 27.178 38.08% (11) 112,797.8 3,065,669
Qualified XII (0.65) 15.589 27.135 74.07% (4) 216,672.5 5,879,346
Qualified XII (0.70) 15.319 27.113 76.99% (5) 49,337.1 1,337,673
Qualified XII (0.75) 12.109 27.091 123.73% 181,270.9 4,910,822
Qualified XII (0.80) 13.056 29.195 123.61% 2,728,718.1 79,665,963
Qualified XII (0.85) 14.152 31.629 123.49% 608,435.3 19,244,434
Qualified XII (0.90) 12.830 28.662 123.40% 17,144.7 491,400
Qualified XII (0.95) 14.114 31.514 123.28% 638,670.0 20,127,352
Qualified XII (1.00) 14.096 31.457 123.16% 1,788,826.0 56,271,451
Qualified XII (1.05) 14.077 31.400 123.06% 157,087.7 4,932,554
Qualified XII (1.10) 14.059 31.343 122.94% 64,071.0 2,008,178
Qualified XII (1.15) 14.040 31.286 122.83% 150,086.8 4,695,612
Qualified XII (1.20) 14.022 31.229 122.71% 67,582.7 2,110,545
Qualified XII (1.25) 14.003 31.172 122.61% 17,486.4 545,093
Qualified XII (1.30) 13.985 31.116 122.50% 9,014.2 280,481
Qualified XII (1.40) 13.948 31.003 122.28% 2,357.0 73,073
Qualified XII (1.50) 13.911 30.890 122.05% 19,942.0 616,008
Qualified XIII 21.116 47.147 123.28% 98,303.6 4,634,714
Qualified XV 21.081 47.068 123.27% 79,375.6 3,736,084
Qualified XVI 20.861 46.323 122.06% 175,441.5 8,127,054
Qualified XVII 20.951 46.640 122.61% 63,768.6 2,974,190
Qualified XVIII 20.226 45.025 122.61% 41,961.6 1,889,313
Qualified XXI 27.003 47.112 74.47% (5) 214,522.9 10,106,578
Qualified XXII 27.048 47.190 74.47% (5) 130,373.7 6,152,396
- -----------------------------------------------------------------------------------------------------------------------------
Balanced Portfolio:
Qualified III 19.914 24.929 25.18% 476.1 11,868
Qualified V 19.800 24.747 24.98% 736.6 18,229
Qualified VI 19.908 24.922 25.19% 5,686,065.5 141,706,964
Qualified VIII 19.903 24.913 25.17% 3,566.1 88,842
Qualified X (1.15) 20.731 25.978 25.31% 73,950.4 1,921,057
Qualified X (1.25) 20.657 25.859 25.18% 760,023.7 19,653,789
Qualified XI 20.086 25.243 25.67% 248,075.6 6,262,255
Qualified XII (0.40) 17.878 22.571 26.25% 103,516.9 2,336,519
Qualified XII (0.45) 11.816 14.910 26.18% 224,105.2 3,341,389
Qualified XII (0.50) 12.415 15.658 26.12% 70,955.7 1,111,023
Qualified XII (0.55) 13.489 14.886 10.36% (11) 104,836.8 1,560,589
Qualified XII (0.65) 13.502 14.862 10.07% (4) 251,840.1 3,742,825
Qualified XII (0.70) 13.144 14.850 12.98% (5) 7,041.4 104,565
Qualified XII (0.75) 11.794 14.838 25.81% 69,363.3 1,029,209
Qualified XII (0.80) 12.741 16.022 25.75% 815,864.4 13,071,690
Qualified XII (0.85) 17.912 22.513 25.69% 141,750.2 3,191,220
</TABLE>
S-25
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Balanced Portfolio (continued):
Qualified XII (0.90) $12.490 $15.690 25.62% 5,703.4 $ 89,486
Qualified XII (0.95) 17.865 22.431 25.56% 232,278.8 5,210,286
Qualified XII (1.00) 17.841 22.390 25.50% 695,262.6 15,567,199
Qualified XII (1.05) 17.818 22.350 25.43% 78,371.6 1,751,579
Qualified XII (1.10) 17.794 22.309 25.37% 28,645.9 639,063
Qualified XII (1.15) 17.771 22.269 25.31% 71,007.4 1,581,229
Qualified XII (1.20) 17.747 22.228 25.25% 22,043.8 489,988
Qualified XII (1.25) 17.724 22.188 25.19% 7,932.4 176,001
Qualified XII (1.30) 17.701 22.147 25.12% 2,768.5 61,314
Qualified XII (1.40) 17.654 22.067 25.00% 1,224.1 27,013
Qualified XII (1.50) 17.607 21.987 24.88% 31,263.2 687,372
Qualified XIII 20.064 25.192 25.56% 54,960.2 1,384,582
Qualified XV 20.031 25.151 25.56% 32,084.5 806,945
Qualified XVI 19.822 24.752 24.87% 84,774.3 2,098,363
Qualified XVII 19.908 24.922 25.19% 43,804.8 1,091,694
Qualified XVIII 20.657 25.859 25.18% 58,477.1 1,512,186
Qualified XXI 22.140 25.174 13.70% (5) 80,071.3 2,015,707
Qualified XXII 22.177 25.216 13.70% (5) 42,379.6 1,068,634
- --------------------------------------------------------------------------------------------------------------------------
Flexible Income Portfolio:
Qualified III 15.548 15.601 0.34% 6,629.1 103,422
Qualified V 15.383 15.411 0.18% 72.6 1,119
Qualified VI 15.487 15.540 0.34% 1,078,342.0 16,757,704
Qualified VIII 15.482 15.534 0.34% 315.8 4,905
Qualified X (1.25) 10.419 10.455 0.35% 58,739.2 614,092
Qualified XI 15.626 15.741 0.74% 53,087.6 835,644
Qualified XII (0.40) 13.053 13.210 1.20% 20,171.3 266,453
Qualified XII (0.45) 10.446 10.566 1.15% 42,020.8 443,990
Qualified XII (0.50) 10.640 10.757 1.10% 24,750.6 266,251
Qualified XII (0.55) 10.380 10.549 1.63% (11) 27,998.1 295,351
Qualified XII (0.65) 10.622 10.532 (0.85%) (4) 88,619.6 933,335
Qualified XII (0.70) 10.473 10.523 0.48% (5) 2,087.9 21,972
Qualified XII (0.75) 10.427 10.515 0.84% 6,854.8 72,078
Qualified XII (0.80) 10.643 10.727 0.79% 300,761.2 3,226,299
Qualified XII (0.85) 13.078 13.175 0.74% 35,683.2 470,136
Qualified XII (0.90) 10.638 10.712 0.70% 5,764.2 61,744
Qualified XII (0.95) 13.043 13.127 0.64% 69,212.2 908,574
Qualified XII (1.00) 13.026 13.104 0.60% 460,612.0 6,035,640
Qualified XII (1.05) 13.009 13.080 0.55% 25,082.7 328,073
Qualified XII (1.10) 12.992 13.056 0.49% 7,040.3 91,917
Qualified XII (1.15) 12.975 13.032 0.44% 15,890.0 207,081
Qualified XII (1.20) 12.958 13.008 0.39% 6,648.3 86,484
Qualified XII (1.25) 12.940 12.985 0.35% 1,753.5 22,768
Qualified XII (1.30) 12.923 12.961 0.29% 4,549.2 58,962
Qualified XII (1.40) 12.889 12.914 0.19% 168.5 2,176
Qualified XII (1.50) 12.855 12.867 0.09% 668.9 8,607
Qualified XIII 15.609 15.709 0.64% 5,619.8 88,282
Qualified XV 15.583 15.683 0.64% 6,315.9 99,052
Qualified XVI 15.420 15.434 0.09% 13,513.5 208,573
Qualified XVII 15.487 15.540 0.34% 6,227.3 96,773
Qualified XXI 15.603 15.698 0.61% (5) 9,552.3 149,948
Qualified XXII 15.629 15.724 0.61% (5) 8,959.3 140,872
- --------------------------------------------------------------------------------------------------------------------------
Growth Portfolio:
Qualified III 22.529 32.036 42.20% 2,721,884.9 87,197,725
Qualified V 20.556 29.183 41.97% 1,417.8 41,376
Qualified VI 20.651 29.366 42.20% 5,434,097.8 159,575,131
Qualified VIII 20.663 29.380 42.19% 2,469.1 72,543
Qualified X (1.15) 22.165 31.550 42.34% 44,364.2 1,399,706
</TABLE>
S-26
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Growth Portfolio (continued):
Qualified X (1.25) $22.086 $31.406 42.20% 773,102.5 $ 24,280,266
Qualified XI 20.836 29.744 42.75% 260,307.0 7,742,653
Qualified XII (0.40) 17.807 25.537 43.41% 156,804.6 4,004,271
Qualified XII (0.45) 11.979 16.753 39.85% (1) 233,330.2 3,909,059
Qualified XII (0.50) 12.391 17.752 43.27% 36,959.2 656,108
Qualified XII (0.55) 14.336 16.726 16.67% (11) 74,826.7 1,251,580
Qualified XII (0.65) 14.246 16.699 17.22% (10) 29,858.5 498,619
Qualified XII (0.70) 13.194 16.686 26.47% (5) 26,860.0 448,185
Qualified XII (0.75) 11.666 16.673 42.92% 73,998.2 1,233,737
Qualified XII (0.80) 12.836 18.335 42.84% 1,206,254.8 22,116,909
Qualified XII (0.85) 17.841 25.471 42.77% 538,137.7 13,706,789
Qualified XII (0.90) 12.464 17.786 42.70% 11,347.9 201,835
Qualified XII (0.95) 17.794 25.378 42.62% 187,296.1 4,753,232
Qualified XII (1.00) 17.770 25.332 42.55% 535,269.4 13,559,498
Qualified XII (1.05) 17.747 25.286 42.48% 49,882.8 1,261,338
Qualified XII (1.10) 17.723 25.240 42.41% 25,768.2 650,392
Qualified XII (1.15) 17.700 25.194 42.34% 56,210.8 1,416,188
Qualified XII (1.20) 17.677 25.148 42.26% 32,112.6 807,581
Qualified XII (1.25) 17.653 25.103 42.20% 9,889.5 248,254
Qualified XII (1.30) 17.630 25.057 42.13% 4,721.6 118,309
Qualified XII (1.40) 17.584 24.966 41.98% 3,142.8 78,464
Qualified XII (1.50) 17.537 24.875 41.84% 10,930.5 271,900
Qualified XIII 20.813 29.684 42.62% 52,381.4 1,554,913
Qualified XV 20.778 29.635 42.63% 38,375.8 1,137,271
Qualified XVI 20.562 29.166 41.84% 96,293.5 2,808,486
Qualified XVII 20.651 29.366 42.20% 28,973.6 850,824
Qualified XVIII 22.086 31.406 42.20% 52,432.8 1,646,718
Qualified XXI 23.156 29.662 28.10% (5) 63,405.5 1,880,766
Qualified XXII 23.195 29.712 28.10% (5) 45,183.8 1,342,494
Annuity contracts in payment period 689,393
- -------------------------------------------------------------------------------------------------------------------------------
Worldwide Growth Portfolio:
Qualified I 19.333 29.020 50.11% (5) 2,110.6 61,251
Qualified III 23.797 38.648 62.41% 5,548,673.8 214,445,606
Qualified V 21.334 34.593 62.15% 3,432.5 118,738
Qualified VI 21.288 34.574 62.41% 15,478,181.3 535,143,072
Qualified VIII 21.223 34.465 62.39% 8,372.5 288,561
Qualified X (1.15) 23.996 39.011 62.57% 58,657.5 2,288,271
Qualified X (1.25) 23.910 38.832 62.41% 1,490,250.0 57,868,699
Qualified XI 21.478 35.020 63.05% 771,009.1 27,000,589
Qualified XII (0.40) 17.582 28.797 63.79% 531,184.1 15,296,712
Qualified XII (0.45) 10.235 16.757 63.72% 466,807.5 7,822,094
Qualified XII (0.50) 11.485 18.792 63.62% 68,055.0 1,278,915
Qualified XII (0.55) 12.638 16.730 32.38% (11) 177,086.4 2,962,581
Qualified XII (0.65) 11.492 16.703 45.34% (4) 237,115.7 3,960,462
Qualified XII (0.70) 11.151 16.689 49.66% (5) 31,925.2 532,806
Qualified XII (0.75) 10.217 16.676 63.22% 211,806.8 3,532,039
Qualified XII (0.80) 12.009 19.592 63.14% 4,837,241.4 94,768,911
Qualified XII (0.85) 17.615 28.723 63.06% 864,935.8 24,843,664
Qualified XII (0.90) 11.745 19.141 62.97% 26,946.9 515,796
Qualified XII (0.95) 17.569 28.619 62.89% 643,913.5 18,428,009
Qualified XII (1.00) 17.545 28.567 62.82% 2,675,140.6 76,420,285
Qualified XII (1.05) 17.522 28.515 62.74% 199,509.8 5,688,999
Qualified XII (1.10) 17.499 28.463 62.66% 65,151.2 1,854,408
Qualified XII (1.15) 17.476 28.411 62.57% 163,390.0 4,642,134
Qualified XII (1.20) 17.453 28.360 62.49% 50,750.3 1,439,265
Qualified XII (1.25) 17.430 28.308 62.41% 19,060.1 539,558
Qualified XII (1.30) 17.407 28.257 62.33% 14,290.6 403,807
</TABLE>
S-27
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Worldwide Growth Portfolio (continued):
Qualified XII (1.40) $17.361 $28.154 62.17% 2,147.7 $ 60,466
Qualified XII (1.50) 17.315 28.052 62.01% 34,243.8 960,605
Qualified XIII 21.455 34.949 62.89% 109,644.4 3,831,997
Qualified XV 21.419 34.891 62.90% 81,241.3 2,834,612
Qualified XVI 21.196 34.339 62.01% 215,248.0 7,391,423
Qualified XVII 21.288 34.574 62.41% 84,795.7 2,931,728
Qualified XVIII 23.910 38.832 62.41% 77,803.3 3,021,223
Qualified XXI 23.168 34.923 50.74% (5) 216,743.3 7,569,432
Qualified XXII 23.206 34.982 50.75% (5) 158,965.3 5,560,856
Annuity contracts in payment period 752,858
- -------------------------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Qualified III 5.470 12.315 125.14% 940,817.1 11,586,115
- -------------------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Qualified III 11.433 12.882 12.67% 437,491.3 5,635,952
Qualified V 12.670 14.253 12.49% 2,485.0 35,419
Qualified VI 12.336 13.900 12.68% 489,112.5 6,798,533
Qualified VIII 10.693 12.047 12.66% 839.6 10,115
Qualified XI 12.446 14.079 13.12% 26,550.1 373,805
Qualified XII (0.40) 9.626 10.939 13.64% 8,855.9 96,874
Qualified XII (0.45) 8.644 8.758 1.32% (11) 4,240.5 37,137
Qualified XII (0.55) 8.255 8.744 5.92% (11) 4,256.5 37,217
Qualified XII (0.65) 8.125 8.729 7.43% (10) 2,246.3 19,609
Qualified XII (0.70) 9.037 8.722 (3.49%) (5) 2,018.1 17,602
Qualified XII (0.75) 7.696 8.715 13.24% 10,959.9 95,520
Qualified XII (0.80) 8.415 9.524 13.18% 92,365.4 879,684
Qualified XII (0.85) 9.645 10.911 13.13% 28,938.8 315,743
Qualified XII (0.95) 9.619 10.871 13.02% 51,656.2 561,554
Qualified XII (1.00) 9.606 10.851 12.96% 87,037.7 944,466
Qualified XII (1.05) 9.594 10.831 12.89% 3,378.1 36,590
Qualified XII (1.10) 9.581 10.812 12.85% 1,354.1 14,640
Qualified XII (1.15) 9.568 10.792 12.79% 8,710.7 94,006
Qualified XII (1.20) 9.556 10.772 12.72% 2,436.7 26,249
Qualified XII (1.25) 9.543 10.753 12.68% 70.6 759
Qualified XII (1.50) 9.480 10.655 12.39% 146.7 1,563
Qualified XIII 12.433 14.051 13.01% 5,185.8 72,865
Qualified XV 12.412 14.028 13.02% 9,115.8 127,872
Qualified XVI 12.283 13.805 12.39% 10,231.1 141,241
Qualified XVII 12.336 13.900 12.68% 900.1 12,511
Qualified XXI 14.452 14.041 (2.84%) (5) 4,390.1 61,640
Qualified XXII 14.476 14.064 (2.85%) (5) 4,216.7 59,303
- -------------------------------------------------------------------------------------------------------------------------------
MFS Funds:
Total Return Series:
Qualified III 10.531 10.720 1.79% 63,821.5 684,196
- -------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund/VA:
Qualified III 10.303 16.126 56.52% 59,571.1 960,641
Qualified V 11.564 15.638 35.23% (7) 21.9 343
Qualified VI 10.018 15.681 56.53% 184,292.1 2,889,837
Qualified X (1.15) 10.923 15.707 43.80% (8) 658.0 10,336
Qualified X (1.25) 10.018 15.681 56.53% 29,386.7 460,806
Qualified XI 10.039 15.775 57.14% 14,290.6 225,435
Qualified XII (0.40) 10.047 15.859 57.85% 5,065.0 80,325
Qualified XII (0.45) 13.162 15.849 20.41% (11) 26.7 423
Qualified XII (0.50) 10.070 15.881 57.71% 785.5 12,474
Qualified XII (0.55) 12.055 15.823 31.26% (11) 370.7 5,866
Qualified XII (0.65) 11.782 15.798 34.09% (10) 136.8 2,161
</TABLE>
S-28
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
Global Securities Fund/VA (continued):
Qualified XII (0.70) $14.516 $15.785 8.74% (12) 58.4 $ 922
Qualified XII (0.75) 10.027 15.772 57.30% 2,178.1 34,354
Qualified XII (0.80) 10.050 15.800 57.21% 8,820.1 139,361
Qualified XII (0.85) 10.046 15.787 57.15% 10,761.7 169,895
Qualified XII (0.95) 10.039 15.760 56.99% 543.5 8,566
Qualified XII (1.00) 10.036 15.747 56.91% 20,245.9 318,814
Qualified XII (1.05) 10.032 15.734 56.84% 493.8 7,770
Qualified XII (1.10) 10.029 15.721 56.76% 965.5 15,177
Qualified XII (1.15) 10.025 15.707 56.68% 775.0 12,174
Qualified XII (1.20) 9.897 15.694 58.57% (2) 131.7 2,067
Qualified XII (1.25) 11.614 15.681 35.02% (8) 8.3 130
Qualified XII (1.30) 10.015 15.668 56.45% 31.3 491
Qualified XII (1.40) 10.008 15.641 56.28% 30.7 479
Qualified XIII 10.039 15.760 56.99% 595.1 9,378
Qualified XV 10.039 15.760 56.99% 329.3 5,190
Qualified XVI 10.001 15.615 56.13% 7,932.0 123,856
Qualified XVII 10.018 15.681 56.53% 6,425.3 100,753
Qualified XVIII 11.696 15.681 34.07% (7) 29.0 454
Qualified XXI 10.913 15.775 44.55% (5) 14,640.9 230,960
Qualified XXII 10.913 15.775 44.55% (5) 2,690.3 42,439
- ---------------------------------------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA:
Qualified III 9.935 10.089 1.55% 173,218.8 1,747,553
Qualified V 9.762 10.021 2.65% (3) 64.0 641
Qualified VI 9.895 10.048 1.55% 90,615.5 910,504
Qualified X (1.25) 9.895 10.048 1.55% 20,573.3 206,721
Qualified XI 9.915 10.108 1.95% 1,293.6 13,076
Qualified XII (0.40) 9.923 10.162 2.41% 1,576.1 16,017
Qualified XII (0.45) 9.953 10.188 2.36% 6,623.0 67,477
Qualified XII (0.50) 9.946 10.176 2.31% 4.5 46
Qualified XII (0.55) 9.997 10.172 1.75% (11) 1,233.2 12,544
Qualified XII (0.65) 9.942 10.155 2.14% (10) 63.5 644
Qualified XII (0.75) 9.935 10.139 2.05% 1,052.4 10,670
Qualified XII (0.80) 9.926 10.125 2.00% 4,198.4 42,507
Qualified XII (0.85) 9.922 10.116 1.96% 5,761.4 58,284
Qualified XII (0.95) 9.915 10.099 1.86% 1,105.7 11,167
Qualified XII (1.00) 9.912 10.091 1.81% 12,846.9 129,632
Qualified XII (1.05) 9.908 10.082 1.76% 243.2 2,452
Qualified XII (1.10) 9.905 10.074 1.71% 782.8 7,885
Qualified XII (1.15) 9.902 10.065 1.65% 1,185.6 11,933
Qualified XII (1.20) 9.898 10.057 1.61% 88.7 892
Qualified XII (1.25) 9.869 10.048 1.81% (1) 8.9 89
Qualified XII (1.50) 9.878 10.006 1.30% 68.8 689
Qualified XIII 9.915 10.099 1.86% 596.5 6,024
Qualified XV 9.915 10.099 1.86% 3,113.1 31,440
Qualified XVI 9.878 10.006 1.30% 233.6 2,338
Qualified XVIII 9.895 10.048 1.55% 12,816.0 128,775
Qualified XXI 9.954 10.108 1.55% (5) 3,895.0 39,373
Qualified XXII 9.954 10.108 1.55% (5) 483.4 4,886
Annuity contracts in payment period 27,517
- ---------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Qualified III 19.268 28.710 49.00% 3,024,975.4 86,846,795
Qualified V 19.041 28.327 48.77% 5,879.2 166,539
Qualified VI 19.114 28.481 49.01% 9,740,293.5 277,415,257
Qualified VIII 20.023 29.833 48.99% 12,353.8 368,553
Qualified X (1.15) 19.216 28.661 49.15% 48,708.9 1,396,043
Qualified X (1.25) 19.114 28.481 49.01% 1,234,594.7 35,162,739
</TABLE>
S-29
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
PPI MFS Emerging Equities Portfolio (continued):
Qualified XI $19.285 $28.849 49.59% 587,576.1 $ 16,950,838
Qualified XII (0.40) 12.776 19.199 50.27% 413,846.5 7,945,488
Qualified XII (0.45) 11.002 16.525 50.20% 128,506.7 2,123,601
Qualified XII (0.50) 10.841 16.274 50.12% 181,468.3 2,953,302
Qualified XII (0.55) 12.327 16.499 33.84% (11) 103,358.4 1,705,269
Qualified XII (0.65) 10.880 16.472 51.40% (4) 109,677.9 1,806,619
Qualified XII (0.70) 11.165 16.459 47.42% (5) 32,820.8 540,190
Qualified XII (0.75) 10.982 16.446 49.75% 161,338.1 2,653,286
Qualified XII (0.80) 11.846 17.731 49.68% 2,991,234.9 53,036,901
Qualified XII (0.85) 12.800 19.150 49.61% 822,853.5 15,757,311
Qualified XII (0.90) 11.462 17.139 49.53% 20,775.8 356,082
Qualified XII (0.95) 12.767 19.080 49.45% 684,437.0 13,059,015
Qualified XII (1.00) 12.750 19.045 49.37% 2,526,496.6 48,117,681
Qualified XII (1.05) 12.733 19.011 49.30% 110,359.8 2,098,004
Qualified XII (1.10) 12.716 18.976 49.23% 34,562.6 655,861
Qualified XII (1.15) 12.699 18.942 49.16% 200,163.0 3,791,391
Qualified XII (1.20) 12.683 18.907 49.07% 69,822.2 1,320,130
Qualified XII (1.25) 12.666 18.873 49.01% 26,071.5 492,039
Qualified XII (1.30) 12.649 18.838 48.93% 7,480.3 140,916
Qualified XII (1.40) 12.616 18.770 48.78% 1,614.8 30,310
Qualified XII (1.50) 12.582 18.702 48.64% 7,941.7 148,524
Qualified XIII 19.264 28.791 49.45% 67,371.5 1,939,672
Qualified XV 19.232 28.743 49.45% 73,452.1 2,111,218
Qualified XVI 19.032 28.288 48.63% 133,578.6 3,778,611
Qualified XVII 19.114 28.481 49.01% 14,235.7 405,449
Qualified XVIII 19.114 28.481 49.01% 41,011.6 1,168,060
Qualified XXI 20.019 28.769 43.71% (5) 194,332.5 5,590,819
Qualified XXII 20.053 28.817 43.70% (5) 197,163.5 5,681,718
Annuity contracts in payment period 38,500
- -------------------------------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Qualified I 10.989 13.469 22.57% 603.1 8,122
Qualified III 14.528 17.796 22.49% 194,295.5 3,457,720
Qualified III 15.891 19.466 22.50% 1,102,793.9 21,466,554
Qualified V 16.593 20.293 22.30% 9,280.3 188,329
Qualified VI 16.758 20.527 22.49% 7,196,328.6 147,721,273
Qualified VII 14.132 17.322 22.57% 71,237.7 1,233,968
Qualified VIII 14.134 17.312 22.48% 13,755.1 238,128
Qualified IX 13.926 17.102 22.81% 1,935.0 33,092
Qualified X (1.15) 16.844 20.653 22.61% 12,984.9 268,183
Qualified X (1.25) 16.758 20.527 22.49% 930,520.8 19,101,090
Qualified XI 16.907 20.792 22.98% 333,629.4 6,936,944
Qualified XII (0.40) 10.641 13.146 23.54% 323,177.5 4,248,345
Qualified XII (0.45) 10.577 13.061 23.48% 50,332.2 657,388
Qualified XII (0.50) 11.127 13.733 23.42% 72,063.8 989,621
Qualified XII (0.55) 11.303 13.040 15.37% (11) 54,853.8 715,290
Qualified XII (0.65) 11.075 13.019 17.55% (4) 89,183.3 1,161,070
Qualified XII (0.70) 11.020 13.008 18.04% (5) 22,795.7 296,537
Qualified XII (0.75) 10.558 12.998 23.11% 52,316.5 680,006
Qualified XII (0.80) 11.682 14.375 23.05% 541,625.4 7,785,678
Qualified XII (0.85) 10.661 13.112 22.99% 681,108.9 8,930,414
Qualified XII (0.90) 11.375 13.982 22.92% 8,900.9 124,453
Qualified XII (0.95) 10.633 13.064 22.86% 259,783.1 3,393,776
Qualified XII (1.00) 10.619 13.040 22.80% 854,700.1 11,145,402
Qualified XII (1.05) 10.605 13.016 22.73% 22,552.0 293,545
Qualified XII (1.10) 10.591 12.993 22.68% 20,445.0 265,636
Qualified XII (1.15) 10.577 12.969 22.62% 129,349.4 1,677,539
Qualified XII (1.20) 10.563 12.945 22.55% 33,672.0 435,899
</TABLE>
S-30
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (continued):
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------
Value
Per Unit
--------
Beginning End of
of Year Year
- ---------------------------------------------------------------------
<S> <C> <C>
PPI MFS Research Growth Portfolio (continued):
Qualified XII (1.25) $10.549 $12.922
Qualified XII (1.30) 10.535 12.898
Qualified XII (1.40) 10.507 12.851
Qualified XII (1.50) 10.479 12.805
Qualified XIII 16.889 20.750
Qualified XV 16.861 20.716
Qualified XVI 16.685 20.388
Qualified XVII 16.758 20.527
Qualified XVIII 16.758 20.527
Qualified XIX 10.989 13.469
Qualified XX 14.528 17.796
Qualified XXI 17.376 20.735
Qualified XXII 17.405 20.770
- ---------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Qualified III 29.339 43.112
Qualified V 24.053 35.288
Qualified VI 24.145 35.480
Qualified VIII 20.756 30.498
Qualified X (1.15) 10.502 15.447
Qualified X (1.25) 10.495 15.421
Qualified XI 24.361 35.938
Qualified XII (0.40) 15.676 23.231
Qualified XII (0.45) 10.673 15.809
Qualified XII (0.50) 11.320 16.760
Qualified XII (0.55) 12.844 15.783
Qualified XII (0.65) 12.653 15.758
Qualified XII (0.70) 11.997 15.745
Qualified XII (0.75) 10.653 15.732
Qualified XII (0.80) 12.055 17.793
Qualified XII (0.85) 15.706 23.171
Qualified XII (0.90) 11.654 17.184
Qualified XII (0.95) 15.664 23.087
Qualified XII (1.00) 15.644 23.045
Qualified XII (1.05) 15.623 23.003
Qualified XII (1.10) 15.602 22.961
Qualified XII (1.15) 15.582 22.919
Qualified XII (1.20) 15.561 22.878
Qualified XII (1.25) 15.541 22.836
Qualified XII (1.30) 15.520 22.794
Qualified XII (1.40) 15.479 22.712
Qualified XII (1.50) 15.438 22.629
Qualified XIII 24.335 35.866
Qualified XV 24.294 35.806
Qualified XVI 24.041 35.239
Qualified XVII 24.145 35.480
Qualified XVIII 10.495 15.421
Qualified XXI 27.595 35.839
Qualified XXII 27.641 35.899
Annuity contracts in payment period
- ---------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Qualified III 20.829 32.585
Qualified V 19.707 30.781
Qualified VI 19.978 31.255
Qualified VIII 16.832 26.330
Qualified X (1.15) 20.081 31.447
Qualified X (1.25) 19.978 31.255
Qualified XI 20.157 31.658
<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 XII (1.25) 22.50% 3,582.9 $ 46,298
Qualified XII (1.30) 22.43% 6,221.1 80,241
Qualified XII (1.40) 22.31% 405.6 5,213
Qualified XII (1.50) 22.20% 1,992.4 25,512
Qualified XIII 22.86% 50,206.0 1,041,798
Qualified XV 22.86% 66,414.5 1,375,838
Qualified XVI 22.19% 139,055.9 2,835,026
Qualified XVII 22.49% 64,137.6 1,316,573
Qualified XVIII 22.49% 57,610.6 1,182,591
Qualified XIX 22.57% 14,801.9 199,364
Qualified XX 22.49% 24,517.6 436,320
Qualified XXI 19.33% (5) 86,898.8 1,801,854
Qualified XXII 19.33% (5) 94,524.7 1,963,247
- --------------------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Qualified III 46.94% 2,448,586.9 105,562,849
Qualified V 46.71% 6,568.3 231,784
Qualified VI 46.95% 2,035,825.4 72,231,550
Qualified VIII 46.94% 11,317.8 345,168
Qualified X (1.15) 47.09% 12,265.5 189,469
Qualified X (1.25) 46.94% 77,143.0 1,189,640
Qualified XI 47.52% 184,604.4 6,634,315
Qualified XII (0.40) 48.19% 44,935.8 1,043,902
Qualified XII (0.45) 48.12% 36,972.2 584,478
Qualified XII (0.50) 48.06% 69,113.2 1,158,302
Qualified XII (0.55) 22.88% (11) 51,668.9 815,496
Qualified XII (0.65) 24.54% (10) 14,719.7 231,948
Qualified XII (0.70) 31.24% (5) 4,666.5 73,474
Qualified XII (0.75) 47.68% 57,583.9 905,928
Qualified XII (0.80) 47.60% 343,239.4 6,107,402
Qualified XII (0.85) 47.53% 399,213.2 9,250,158
Qualified XII (0.90) 47.45% 11,686.5 200,826
Qualified XII (0.95) 47.39% 121,012.3 2,793,777
Qualified XII (1.00) 47.31% 416,660.2 9,601,847
Qualified XII (1.05) 47.24% 10,435.4 240,043
Qualified XII (1.10) 47.17% 3,853.0 88,468
Qualified XII (1.15) 47.09% 77,457.5 1,775,271
Qualified XII (1.20) 47.02% 19,495.1 446,000
Qualified XII (1.25) 46.94% 3,708.9 84,697
Qualified XII (1.30) 46.87% 4,031.9 91,904
Qualified XII (1.40) 46.73% 95.2 2,162
Qualified XII (1.50) 46.58% 1,540.9 34,869
Qualified XIII 47.38% 20,452.5 733,542
Qualified XV 47.39% 18,282.1 654,607
Qualified XVI 46.58% 34,760.3 1,224,918
Qualified XVII 46.95% 8,425.1 298,926
Qualified XVIII 46.94% 3,646.0 56,226
Qualified XXI 29.87% (5) 23,458.1 840,717
Qualified XXII 29.88% (5) 29,138.7 1,046,044
Annuity contracts in payment period 36,974
- --------------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Qualified III 56.44% 2,807,485.1 91,482,777
Qualified V 56.19% 3,184.1 98,009
Qualified VI 56.45% 3,509,645.1 109,694,655
Qualified VIII 56.43% 21,757.3 572,876
Qualified X (1.15) 56.60% 34,626.0 1,088,877
Qualified X (1.25) 56.45% 437,547.4 13,675,631
Qualified XI 57.06% 262,480.7 8,309,690
</TABLE>
S-31
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
PPI Scudder International Growth Portfolio (continued):
Qualified XII (0.40) $13.602 $21.461 57.78% 196,446.2 $ 4,215,834
Qualified XII (0.45) 11.701 15.452 32.06% (9) 42,207.6 652,206
Qualified XII (0.50) 10.797 17.018 57.62% 115,575.3 1,966,827
Qualified XII (0.55) 12.322 15.427 25.20% (11) 60,618.9 935,195
Qualified XII (0.65) 10.375 15.403 48.46% (4) 24,792.0 381,861
Qualified XII (0.70) 10.603 15.390 45.15% (5) 12,199.0 187,745
Qualified XII (0.75) 9.781 15.378 57.22% 37,463.1 576,100
Qualified XII (0.80) 11.041 17.351 57.15% 721,189.5 12,513,015
Qualified XII (0.85) 13.628 21.405 57.07% 471,225.5 10,086,642
Qualified XII (0.90) 11.029 17.314 56.99% 15,230.7 263,709
Qualified XII (0.95) 13.592 21.327 56.91% 248,204.3 5,293,546
Qualified XII (1.00) 13.574 21.289 56.84% 868,602.8 18,491,374
Qualified XII (1.05) 13.556 21.250 56.76% 21,941.8 466,262
Qualified XII (1.10) 13.538 21.211 56.68% 7,463.1 158,302
Qualified XII (1.15) 13.520 21.173 56.61% 80,397.5 1,702,233
Qualified XII (1.20) 13.502 21.134 56.52% 15,622.5 330,169
Qualified XII (1.25) 13.485 21.096 56.44% 3,169.6 66,866
Qualified XII (1.30) 13.467 21.057 56.36% 461.5 9,719
Qualified XII (1.40) 13.431 20.981 56.21% 182.1 3,820
Qualified XII (1.50) 13.396 20.905 56.05% 3,468.6 72,510
Qualified XIII 20.135 31.595 56.92% 29,730.7 939,330
Qualified XV 20.102 31.542 56.91% 35,479.5 1,119,099
Qualified XVI 19.892 31.043 56.06% 52,692.0 1,635,704
Qualified XVII 19.978 31.255 56.45% 6,428.2 200,914
Qualified XVIII 19.978 31.255 56.45% 9,672.4 302,313
Qualified XXI 21.199 31.571 48.93% (5) 79,515.0 2,510,383
Qualified XXII 21.234 31.624 48.93% (5) 46,782.3 1,479,431
- --------------------------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Qualified III 20.929 25.283 20.80% 1,549,309.9 39,171,615
Qualified V 18.429 22.227 20.61% 1,304.0 28,985
Qualified VI 18.146 21.922 20.81% 5,814,568.3 127,466,773
Qualified VIII 18.525 22.377 20.79% 4,311.4 96,477
Qualified X (1.15) 20.400 24.669 20.93% 43,662.1 1,077,119
Qualified X (1.25) 20.328 24.557 20.80% 668,583.2 16,418,730
Qualified XI 18.309 22.205 21.28% 297,723.2 6,610,911
Qualified XII (0.40) 16.863 20.546 21.84% 165,483.2 3,399,972
Qualified XII (0.45) 11.057 13.464 21.77% 79,776.9 1,074,133
Qualified XII (0.50) 11.551 14.059 21.71% 6,941.6 97,592
Qualified XII (0.55) 11.814 13.443 13.79% (11) 26,870.3 361,204
Qualified XII (0.65) 11.742 13.421 14.30% (10) 17,656.7 236,968
Qualified XII (0.70) 11.790 13.410 13.74% (5) 17,646.5 236,641
Qualified XII (0.75) 11.036 13.399 21.41% 52,085.5 697,906
Qualified XII (0.80) 12.153 14.748 21.35% 869,106.4 12,817,158
Qualified XII (0.85) 16.895 20.493 21.30% 195,928.3 4,015,067
Qualified XII (0.90) 11.792 14.296 21.23% 6,405.2 91,566
Qualified XII (0.95) 16.851 20.418 21.17% 257,759.2 5,262,937
Qualified XII (1.00) 16.829 20.381 21.11% 666,141.7 13,576,601
Qualified XII (1.05) 16.806 20.344 21.05% 61,160.7 1,244,246
Qualified XII (1.10) 16.784 20.307 20.99% 23,320.3 473,563
Qualified XII (1.15) 16.762 20.270 20.93% 62,597.1 1,268,841
Qualified XII (1.20) 16.740 20.233 20.87% 24,522.4 496,163
Qualified XII (1.25) 16.718 20.196 20.80% 1,434.1 28,963
Qualified XII (1.30) 16.696 20.160 20.75% 3,214.8 64,809
Qualified XII (1.40) 16.652 20.086 20.62% 2,478.4 49,781
Qualified XII (1.50) 16.608 20.013 20.50% 7,739.5 154,893
Qualified XIII 18.289 22.160 21.17% 31,427.2 696,430
Qualified XV 18.258 22.123 21.17% 19,172.1 424,151
</TABLE>
S-32
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (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> <C>
PPI T. Rowe Price Growth Equity Portfolio (continued):
Qualified XVI $18.068 $21.773 20.51% 93,175.6 $ 2,028,703
Qualified XVII 18.146 21.922 20.81% 24,824.6 544,205
Qualified XVIII 20.328 24.557 20.80% 19,410.1 476,664
Qualified XXI 19.112 22.144 15.86% (5) 53,724.1 1,189,654
Qualified XXII 19.144 22.181 15.86% (5) 51,974.1 1,152,819
Annuity contracts in payment period 62,930
- -------------------------------------------------------------------------------------------------------------------------------
Total $15,463,100,152
===============================================================================================================================
</TABLE>
<TABLE>
<S> <C>
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 Certain 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 Certain group AetnaPlus contracts issued in connection with Tax-Deferred Annuity Plans, Retirement Plus Plans
and Deferred Compensation Plans since August 28, 1992.
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 Retirement Plus and Voluntary TDA contracts issued since 1996 in connection with plans established
pursuant to Section 403(b) or 401(a) of the Internal Revenue Code, shown separately by applicable daily
charge; and contracts issued since October 1, 1996 in connection with Optional Retirement Plans established
pursuant to Section 403(b) or 403(a) of the Internal Revenue Code.
Qualified XIII Certain existing contracts issued in connection with Deferred Compensation Plans issued through product
exchange on May 25, 1996 (previously valued under Qualified VI).
Qualified XIV Certain existing contracts issued in connection with Deferred Compensation Plans issued through product
exchange on November 1, 1996 (previously valued under Qualified III).
Qualified XV Certain existing contracts issued in connection with Deferred Compensation Plans issued through product
exchange on December 16, 1996 (previously valued under Qualified VI), and new contracts issued after that date
in connection with certain Deferred Compensation Plans.
Qualified XVI Group AetnaPlus contracts assessing an administrative expense charge effective April 7, 1997 issued in
connection with Tax-Deferred Annuity Plans, Retirement Plus Plans and Deferred Compensation Plans.
Qualified XVII Group AetnaPlus contracts containing contractual limits on fees issued in connection with Tax-Deferred Annuity
Plans and Deferred Compensation Plans, which result in reduced daily charges for certain funding options
effective May 29, 1997.
Qualified XVIII Individual Retirement Annuity and Simplified Employee Pension Plan contracts containing contractual limits on
fees, which resulted in reduced daily charges for certain funding options effective May 29, 1997.
Qualified XIX Group Corporate 401 contracts containing contractual limits on fees, which resulted in reduced daily charges
for certain funding options effective May 29, 1997.
Qualified XX Group HR 10 contracts containing contractual limits on fees, which resulted in reduced daily charges for
certain funding options effective May 29, 1997.
Qualified XXI Certain existing contracts issued in connection with Deferred Compensation Plans having contract modifications
effective May 20, 1999.
Qualified XXII Certain existing contracts issued in connection with Deferred Compensation Plans having contract modifications
effective May 20, 1999.
</TABLE>
S-33
<PAGE>
Variable Annuity Account C
Condensed Financial Information - Year Ended December 31, 1999 (continued):
Notes to Condensed Financial Information:
(1) - Reflects less than a full year of performance activity. Funds were first
received in this option during January 1999.
(2) - Reflects less than a full year of performance activity. Funds were first
received in this option during February 1999.
(3) - Reflects less than a full year of performance activity. Funds were first
received in this option during March 1999.
(4) - Reflects less than a full year of performance activity. Funds were first
received in this option during April 1999.
(5) - Reflects less than a full year of performance activity. Funds were first
received in this option during May 1999.
(6) - Reflects less than a full year of performance activity. Funds were first
received in this option during June 1999.
(7) - Reflects less than a full year of performance activity. Funds were first
received in this option during July 1999.
(8) - Reflects less than a full year of performance activity. Funds were first
received in this option during August 1999.
(9) - Reflects less than a full year of performance activity. Funds were first
received in this option during September 1999.
(10) - Reflects less than a full year of performance activity. Funds were first
received in this option during October 1999.
(11) - Reflects less than a full year of performance activity. Funds were first
received in this option during November 1999.
(12) - Reflects less than a full year of performance activity. Funds were first
received in this option during December 1999.
See Notes to Financial Statements
S-34
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999
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. Actual results could
differ from these estimates.
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, 1999:
<TABLE>
<S> <C>
Aetna Ascent VP Fidelity Investments Variable Insurance Products Fund:
Aetna Balanced VP, Inc. o Equity-Income Portfolio
Aetna Bond VP o Growth Portfolio
Aetna Crossroads VP o High Income Portfolio
Aetna Get Fund, Series C o Overseas Portfolio
Aetna Get Fund, Series D Fidelity Investments Variable Insurance Products Fund II:
Aetna Get Fund, Series E o Asset Manager Portfolio
Aetna Get Fund, Series G o Contrafund Portfolio
Aetna Get Fund, Series H o Index 500 Portfolio
Aetna Growth and Income VP Janus Aspen Series:
Aetna Growth VP o Aggressive Growth Portfolio
Aetna High Yield VP o Balanced Portfolio
Aetna Index Plus Bond VP o Flexible Income Portfolio
Aetna Index Plus Large Cap VP o Growth Portfolio
Aetna Index Plus Mid Cap VP o Worldwide Growth Portfolio
Aetna Index Plus Small Cap VP Lexington Emerging Markets Fund
Aetna International VP Lexington Natural Resources Trust Fund
Aetna Legacy VP MFS Funds:
Aetna Money Market VP o Total Return Series
Aetna Real Estate Securities VP Oppenheimer Funds:
Aetna Small Company VP o Global Securities Fund/VA
Aetna Value Opportunity VP o Strategic Bond Fund/VA
AIM V.I. Funds: Portfolio Partners, Inc. (PPI):
o Capital Appreciation Fund o PPI MFS Emerging Equities Portfolio
o Growth and Income Fund o PPI MFS Research Growth Portfolio
o Growth Fund o PPI MFS Value Equity Portfolio
o Value Fund o PPI Scudder International Growth Portfolio
Calvert Social Balanced Portfolio o PPI T. Rowe Price Growth Equity Portfolio
</TABLE>
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.
S-35
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999 (continued):
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.
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 Statement of Operations.
4. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments other than
short-term investments for the year ended December 31, 1999 aggregated
$4,379,494,735 and $3,038,110,918.
S-36
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999 (continued):
5. Supplemental Information to Statements of Operations
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Valuation Proceeds Cost of
Period from Investments
Dividends Deductions Sales Sold
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Ascent VP:
Annuity contracts in accumulation $5,424,720 ($940,095) $21,050,463 $17,923,719
- -------------------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc.:
Annuity contracts in accumulation 129,648,887 (11,409,349) 171,784,150 134,352,886
- -------------------------------------------------------------------------------------------------------
Aetna Bond VP:
Annuity contracts in accumulation 20,583,480 (4,121,837) 76,211,807 75,164,913
- -------------------------------------------------------------------------------------------------------
Aetna Crossroads VP:
Annuity contracts in accumulation 4,102,960 (794,117) 20,541,177 18,623,780
- -------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series B:
Annuity contracts in accumulation 19,659,225 (300,702) 61,627,051 73,666,337
- -------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Annuity contracts in accumulation 49,567,794 (2,297,493) 65,399,058 46,252,270
- -------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series D:
Annuity contracts in accumulation 9,818,549 (6,617,202) 79,039,494 77,044,032
- -------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series E:
Annuity contracts in accumulation 1,026,607 (841,648) 4,290,162 4,199,198
- -------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series G:
Annuity contracts in accumulation 126,467 (70,416) 326,817 320,955
- -------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series H:
Annuity contracts in accumulation 0 (453) 124 124
- -------------------------------------------------------------------------------------------------------
Aetna Growth and Income VP:
Annuity contracts in accumulation 1,090,401,955 (69,870,331) 1,125,243,123 977,360,909
- -------------------------------------------------------------------------------------------------------
Aetna Growth VP:
Annuity contracts in accumulation 6,868,901 (1,208,168) 13,984,560 10,684,305
- -------------------------------------------------------------------------------------------------------
Aetna High Yield VP:
Annuity contracts in accumulation 240,452 (24,430) 6,400,921 6,491,793
- -------------------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Annuity contracts in accumulation 65,211 (16,666) 2,220,589 2,299,816
- -------------------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP:
Annuity contracts in accumulation 19,800,531 (4,075,549) 19,224,441 13,144,705
- -------------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP:
Annuity contracts in accumulation 1,034,576 (71,863) 5,521,453 5,107,109
- -------------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP:
Annuity contracts in accumulation 16,354 (73,367) 8,139,482 7,636,928
- -------------------------------------------------------------------------------------------------------
Aetna International VP:
Annuity contracts in accumulation 545,291 (38,870) 3,280,269 3,005,531
- -------------------------------------------------------------------------------------------------------
Aetna Legacy VP:
Annuity contracts in accumulation 2,455,488 (529,171) 18,575,474 17,994,341
- -------------------------------------------------------------------------------------------------------
Aetna Money Market VP:
Annuity contracts in accumulation 11,526,349 (3,232,107) 467,395,045 463,827,536
- -------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net Unrealized Net Net
Net Gain (Loss) Change in Increase (Decrease)
Realized ----------- Unrealized in Net Assets
Gain (Loss) Beginning End Gain (Loss) Resulting from
on Investments of Year of Year on Investments Operations
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Ascent VP:
Annuity contracts in accumulation $3,126,744 $1,897,575 $4,030,133 $2,132,558 $9,743,927
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc.:
Annuity contracts in accumulation 37,431,264 87,636,330 45,044,344 (42,591,986) 113,078,816
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Bond VP:
Annuity contracts in accumulation 1,046,894 4,484,663 (19,754,875) (24,239,538) (6,731,001)
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Crossroads VP:
Annuity contracts in accumulation 1,917,397 598,907 1,130,783 531,876 5,758,116
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series B:
Annuity contracts in accumulation (12,039,286) 6,591,127 0 (6,591,127) 728,110
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Annuity contracts in accumulation 19,146,788 52,568,856 19,237,706 (33,331,150) 33,085,939
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series D:
Annuity contracts in accumulation 1,995,462 75,991 25,690,783 25,614,792 30,811,601
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series E:
Annuity contracts in accumulation 90,964 0 10,381,800 10,381,800 10,657,723
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series G:
Annuity contracts in accumulation 5,862 0 1,305,419 1,305,419 1,367,332
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Get Fund, Series H:
Annuity contracts in accumulation 0 0 2,236 2,236 1,783
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Growth and Income VP:
Annuity contracts in accumulation 147,882,214 (10,415,627) (281,156,139) (270,740,512) 897,673,326
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Growth VP:
Annuity contracts in accumulation 3,300,255 7,094,432 31,404,391 24,309,959 33,270,947
- ------------------------------------------------------------------------------------------------------------------------------
Aetna High Yield VP:
Annuity contracts in accumulation (90,872) (104,129) (112,582) (8,453) 116,697
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Annuity contracts in accumulation (79,227) (60,361) (64,241) (3,880) (34,562)
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP:
Annuity contracts in accumulation 6,079,736 38,198,247 94,088,323 55,890,076 77,694,794
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP:
Annuity contracts in accumulation 414,344 420,810 147,754 (273,056) 1,104,001
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP:
Annuity contracts in accumulation 502,554 395,906 672,037 276,131 721,672
- ------------------------------------------------------------------------------------------------------------------------------
Aetna International VP:
Annuity contracts in accumulation 274,738 53,600 1,272,468 1,218,868 2,000,027
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Legacy VP:
Annuity contracts in accumulation 581,133 (120,205) (83,476) 36,729 2,544,179
- ------------------------------------------------------------------------------------------------------------------------------
Aetna Money Market VP:
Annuity contracts in accumulation 3,567,509 5,409,256 4,054,787 (1,354,469) 10,507,282
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
S-37
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999 (continued):
5. Supplemental Information to Statements of Operations (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Valuation Proceeds Cost of
Period from Investments
Dividends Deductions Sales Sold
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Real Estate Securities VP:
Annuity contracts in accumulation $96,758 ($21,708) $4,751,578 $4,984,993
- ----------------------------------------------------------------------------------------------
Aetna Small Company VP:
Annuity contracts in accumulation 737,403 (519,552) 40,286,820 39,790,199
- ----------------------------------------------------------------------------------------------
Aetna Value Opportunity VP:
Annuity contracts in accumulation 1,611,663 (341,816) 7,979,762 6,203,281
- ----------------------------------------------------------------------------------------------
AIM V.I. Funds:
Capital Appreciation Fund:
Annuity contracts in accumulation 28,724 3,269 1,544,175 1,410,847
- ----------------------------------------------------------------------------------------------
Growth and Income Fund:
Annuity contracts in accumulation 68,381 (17,821) 204,821 189,523
- ----------------------------------------------------------------------------------------------
Growth Fund:
Annuity contracts in accumulation 138,595 5,418 169,728 154,998
- ----------------------------------------------------------------------------------------------
Value Fund:
Annuity contracts in accumulation 132,412 (24,625) 576,329 531,365
- ----------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation 6,507,151 (756,397) 8,714,679 5,905,102
- ----------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation 10,257,428 (2,626,771) 41,095,659 30,480,559
- ----------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 27,209,682 (3,706,242) 17,808,060 11,356,644
- ----------------------------------------------------------------------------------------------
High Income Portfolio:
Annuity contracts in accumulation 145,647 (21,453) 1,233,636 1,275,624
- ----------------------------------------------------------------------------------------------
Overseas Portfolio:
Annuity contracts in accumulation 579,736 (188,699) 10,461,822 9,483,583
- ----------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation 1,997,141 (339,739) 4,369,870 3,500,735
- ----------------------------------------------------------------------------------------------
Contrafund Portfolio:
Annuity contracts in accumulation 14,553,764 (4,734,800) 33,984,565 18,708,684
- ----------------------------------------------------------------------------------------------
Index 500 Portfolio:
Annuity contracts in accumulation 1,559,066 (1,337,952) 21,485,592 11,241,981
- ----------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation 19,472,265 (6,169,116) 31,107,794 12,726,969
- ----------------------------------------------------------------------------------------------
Balanced Portfolio:
Annuity contracts in accumulation 4,338,447 (1,930,480) 6,359,847 3,664,310
- ----------------------------------------------------------------------------------------------
Flexible Income Portfolio:
Annuity contracts in accumulation 2,263,711 (358,371) 13,162,073 13,059,305
- ----------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 1,753,103 (2,631,764) 9,901,606 5,697,727
- ----------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net Unrealized Net Net
Net Gain (Loss) Change in Increase (Decrease)
Realized ----------- Unrealized in Net Assets
Gain (Loss) Beginning End Gain (Loss) Resulting from
on Investments of Year of Year on Investments Operations
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Aetna Real Estate Securities VP:
Annuity contracts in accumulation ($233,415) ($110,732) ($72,859) $37,873 ($120,492)
- --------------------------------------------------------------------------------------------------------------------------
Aetna Small Company VP:
Annuity contracts in accumulation 496,621 (403,739) 13,100,682 13,504,421 14,218,893
- --------------------------------------------------------------------------------------------------------------------------
Aetna Value Opportunity VP:
Annuity contracts in accumulation 1,776,481 3,491,978 5,773,811 2,281,833 5,328,161
- --------------------------------------------------------------------------------------------------------------------------
AIM V.I. Funds:
Capital Appreciation Fund:
Annuity contracts in accumulation 133,328 0 166,754 166,754 332,075
- --------------------------------------------------------------------------------------------------------------------------
Growth and Income Fund:
Annuity contracts in accumulation 15,298 0 1,220,016 1,220,016 1,285,874
- --------------------------------------------------------------------------------------------------------------------------
Growth Fund:
Annuity contracts in accumulation 14,730 0 497,930 497,930 656,673
- --------------------------------------------------------------------------------------------------------------------------
Value Fund:
Annuity contracts in accumulation 44,964 0 835,034 835,034 987,785
- --------------------------------------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation 2,809,577 9,585,862 7,801,335 (1,784,527) 6,775,804
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation 10,615,100 37,581,942 29,981,910 (7,600,032) 10,645,725
- --------------------------------------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 6,451,416 60,197,198 135,925,667 75,728,469 105,683,325
- --------------------------------------------------------------------------------------------------------------------------
High Income Portfolio:
Annuity contracts in accumulation (41,988) 8,863 42,986 34,123 116,329
- --------------------------------------------------------------------------------------------------------------------------
Overseas Portfolio:
Annuity contracts in accumulation 978,239 253,388 5,076,505 4,823,117 6,192,393
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation 869,135 3,974,260 3,975,450 1,190 2,527,727
- --------------------------------------------------------------------------------------------------------------------------
Contrafund Portfolio:
Annuity contracts in accumulation 15,275,881 106,134,557 167,567,655 61,433,098 86,527,943
- --------------------------------------------------------------------------------------------------------------------------
Index 500 Portfolio:
Annuity contracts in accumulation 10,243,611 26,655,788 35,135,496 8,479,708 18,944,433
- --------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation 18,380,825 99,893,644 589,941,753 490,048,109 521,732,083
- --------------------------------------------------------------------------------------------------------------------------
Balanced Portfolio:
Annuity contracts in accumulation 2,695,537 20,140,807 53,832,562 33,691,755 38,795,259
- --------------------------------------------------------------------------------------------------------------------------
Flexible Income Portfolio:
Annuity contracts in accumulation 102,768 175,498 (1,682,793) (1,858,291) 149,817
- --------------------------------------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 4,203,879 34,398,134 119,830,478 85,432,344 88,757,562
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
S-38
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999 (continued):
5. Supplemental Information to Statements of Operations (continued)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999
Valuation Proceeds Cost of
Period from Investments
Dividends Deductions Sales Sold
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Worldwide Growth Portfolio:
Annuity contracts in accumulation $1,323,812 ($8,554,217) $63,944,985 $35,293,263
- ---------------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Annuity contracts in accumulation 32,463 (70,487) 10,365,694 9,445,496
- ---------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation 104,698 (205,256) 8,764,535 10,714,263
- ---------------------------------------------------------------------------------------------------------------------
MFS Funds:
Total Return Series:
Annuity contracts in accumulation 28,468 (6,861) 149,841 140,401
- ---------------------------------------------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund/VA: (1)
Annuity contracts in accumulation 61,201 (28,933) 1,584,101 1,350,923
- ---------------------------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (2)
Annuity contracts in accumulation 160,240 (35,993) 1,816,177 1,856,796
- ---------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation 4,595,402 (5,055,146) 76,719,475 57,253,122
- ---------------------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation 458,020 (2,725,841) 47,188,957 37,113,369
- ---------------------------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation 4,866,792 (2,019,570) 19,528,061 13,513,009
- ---------------------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation 8,941,510 (2,492,688) 347,966,927 288,716,184
- ---------------------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation 5,343,084 (2,549,311) 34,628,089 25,448,794
- ---------------------------------------------------------------------------------------------------------------------
Total Variable Annuity Account C $1,492,280,564 ($155,996,756) $3,038,110,918 $2,616,313,236
=====================================================================================================================
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net Unrealized Net
Net Gain (Loss) Change in
Realized ----------- Unrealized
Gain (Loss) Beginning End Gain (Loss)
on Investments of Year of Year on Investments
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Worldwide Growth Portfolio:
Annuity contracts in accumulation $28,651,722 $137,641,800 $537,057,291 $399,415,491
- -------------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Annuity contracts in accumulation 920,198 (1,654,236) 3,274,926 4,929,162
- -------------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation (1,949,728) (6,226,325) (2,122,540) 4,103,785
- -------------------------------------------------------------------------------------------------------------------
MFS Funds:
Total Return Series:
Annuity contracts in accumulation 9,440 21,009 (1,178) (22,187)
- -------------------------------------------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund/VA: (1)
Annuity contracts in accumulation 233,178 90,591 1,418,022 1,327,431
- -------------------------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (2)
Annuity contracts in accumulation (40,619) 23,736 (2,586) (26,322)
- -------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation 19,466,353 87,984,814 265,730,062 177,745,248
- -------------------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation 10,075,588 40,672,835 81,650,752 40,977,917
- -------------------------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation 6,015,052 30,665,227 93,135,075 62,469,848
- -------------------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation 59,250,743 18,451,441 60,499,972 42,048,531
- -------------------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation 9,179,295 45,568,978 76,614,253 31,045,275
- -------------------------------------------------------------------------------------------------------------------
Total Variable Annuity Account C $421,797,682 $949,942,696 $2,223,496,072 $1,273,553,376
===================================================================================================================
<CAPTION>
- -----------------------------------------------------------------
Year Ended December 31, 1999 Net
Increase (Decrease)
in Net Assets
Resulting from
Operations
- -----------------------------------------------------------------
<S> <C>
Worldwide Growth Portfolio:
Annuity contracts in accumulation $420,836,808
- -----------------------------------------------------------------
Lexington Emerging Markets Fund:
Annuity contracts in accumulation 5,811,336
- -----------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation 2,053,499
- -----------------------------------------------------------------
MFS Funds:
Total Return Series:
Annuity contracts in accumulation 8,860
- -----------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund/VA: (1)
Annuity contracts in accumulation 1,592,877
- -----------------------------------------------------------------
Strategic Bond Fund/VA: (2)
Annuity contracts in accumulation 57,306
- -----------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation 196,751,857
- -----------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation 48,785,684
- -----------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation 71,332,122
- -----------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation 107,748,096
- -----------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation 43,018,343
- -----------------------------------------------------------------
Total Variable Annuity Account C $3,031,634,866
=================================================================
</TABLE>
(1) - Effective May 1, 1999, Oppenheimer Global Securities Fund's name changed
to Oppenheimer Global Securities Fund/VA.
(2) - Effective May 1, 1999, Oppenheimer Strategic Bond Fund's name changed to
Oppenheimer Strategic Bond Fund/VA.
S-39
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999 (continued):
6. Supplemental Information to Statements of Changes in Net Assets
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Ascent VP:
Annuity contracts in accumulation $4,484,625 $3,126,744 $2,132,558
- -------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc.:
Annuity contracts in accumulation 118,239,538 37,431,264 (42,591,986)
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna Bond VP:
Annuity contracts in accumulation 16,461,643 1,046,894 (24,239,538)
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna Crossroads VP:
Annuity contracts in accumulation 3,308,843 1,917,397 531,876
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna Get Fund, Series B:
Annuity contracts in accumulation 19,358,523 (12,039,286) (6,591,127)
- -------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Annuity contracts in accumulation 47,270,301 19,146,788 (33,331,150)
- -------------------------------------------------------------------------------------------
Aetna Get Fund, Series D:
Annuity contracts in accumulation 3,201,347 1,995,462 25,614,792
- -------------------------------------------------------------------------------------------
Aetna Get Fund, Series E:
Annuity contracts in accumulation 184,959 90,964 10,381,800
- -------------------------------------------------------------------------------------------
Aetna Get Fund, Series G:
Annuity contracts in accumulation 56,051 5,862 1,305,419
- -------------------------------------------------------------------------------------------
Aetna Get Fund, Series H:
Annuity contracts in accumulation (453) 0 2,236
- -------------------------------------------------------------------------------------------
Aetna Growth and Income VP:
Annuity contracts in accumulation 1,020,531,624 147,882,214 (270,740,512)
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna Growth VP:
Annuity contracts in accumulation 5,660,733 3,300,255 24,309,959
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna High Yield VP:
Annuity contracts in accumulation 216,022 (90,872) (8,453)
- -------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Annuity contracts in accumulation 48,545 (79,227) (3,880)
- -------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP:
Annuity contracts in accumulation 15,724,982 6,079,736 55,890,076
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP:
Annuity contracts in accumulation 962,713 414,344 (273,056)
- -------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP:
Annuity contracts in accumulation (57,013) 502,554 276,131
- -------------------------------------------------------------------------------------------
Aetna International VP:
Annuity contracts in accumulation 506,421 274,738 1,218,868
- -------------------------------------------------------------------------------------------
Aetna Legacy VP:
Annuity contracts in accumulation 1,926,317 581,133 36,729
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Increase (Decrease) Net Assets
in Net Assets ----------
from Unit Beginning End
Transactions of Year of Year
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Ascent VP:
Annuity contracts in accumulation ($13,863,249) $86,000,256 $81,880,934
- -----------------------------------------------------------------------------------------------
Aetna Balanced VP, Inc.:
Annuity contracts in accumulation (131,531,827) 982,574,403 958,810,376
Annuity contracts in payment period 29,218,792 34,529,808
- -----------------------------------------------------------------------------------------------
Aetna Bond VP:
Annuity contracts in accumulation (59,574,107) 377,693,504 312,007,882
Annuity contracts in payment period 6,384,037 5,764,551
- -----------------------------------------------------------------------------------------------
Aetna Crossroads VP:
Annuity contracts in accumulation (12,384,759) 74,028,644 67,400,270
Annuity contracts in payment period 71,489 73,220
- -----------------------------------------------------------------------------------------------
Aetna Get Fund, Series B:
Annuity contracts in accumulation (60,309,287) 59,581,1770 0
- -----------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Annuity contracts in accumulation (60,859,707) 198,180,953 170,407,185
- -----------------------------------------------------------------------------------------------
Aetna Get Fund, Series D:
Annuity contracts in accumulation 169,649,573 270,980,130 471,441,304
- -----------------------------------------------------------------------------------------------
Aetna Get Fund, Series E:
Annuity contracts in accumulation 147,163,657 0 157,821,380
- -----------------------------------------------------------------------------------------------
Aetna Get Fund, Series G:
Annuity contracts in accumulation 44,301,023 0 45,668,355
- -----------------------------------------------------------------------------------------------
Aetna Get Fund, Series H:
Annuity contracts in accumulation 1,780,802 0 1,782,585
- -----------------------------------------------------------------------------------------------
Aetna Growth and Income VP:
Annuity contracts in accumulation (946,107,352) 5,846,282,205 5,753,192,035
Annuity contracts in payment period 328,867,005 373,523,149
- -----------------------------------------------------------------------------------------------
Aetna Growth VP:
Annuity contracts in accumulation 47,381,121 64,734,239 145,431,206
Annuity contracts in payment period 116,487 71,588
- -----------------------------------------------------------------------------------------------
Aetna High Yield VP:
Annuity contracts in accumulation 816,418 1,244,378 2,177,493
- -----------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Annuity contracts in accumulation (391,345) 1,425,611 999,704
- -----------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP:
Annuity contracts in accumulation 158,281,330 238,578,749 473,757,587
Annuity contracts in payment period 437,343 1,234,629
- -----------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP:
Annuity contracts in accumulation 3,990,282 4,116,477 9,210,760
- -----------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP:
Annuity contracts in accumulation 2,602,681 4,953,155 8,277,508
- -----------------------------------------------------------------------------------------------
Aetna International VP:
Annuity contracts in accumulation 3,698,655 2,016,027 7,714,709
- -----------------------------------------------------------------------------------------------
Aetna Legacy VP:
Annuity contracts in accumulation (12,977,974) 53,070,226 42,650,270
Annuity contracts in payment period 261,063 247,224
- -----------------------------------------------------------------------------------------------
</TABLE>
S-40
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999 (continued):
6. Supplemental Information to Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Money Market VP:
Annuity contracts in accumulation $8,294,242 $3,567,509 ($1,354,469)
Annuity contracts in payment period
- --------------------------------------------------------------------------------------
Aetna Real Estate Securities VP:
Annuity contracts in accumulation 75,050 (233,415) 37,873
- --------------------------------------------------------------------------------------
Aetna Small Company VP:
Annuity contracts in accumulation 217,851 496,621 13,504,421
Annuity contracts in payment period
- --------------------------------------------------------------------------------------
Aetna Value Opportunity VP:
Annuity contracts in accumulation 1,269,847 1,776,481 2,281,833
- --------------------------------------------------------------------------------------
AIM V.I. Funds:
Capital Appreciation Fund:
Annuity contracts in accumulation 31,993 133,328 166,754
- --------------------------------------------------------------------------------------
Growth and Income Fund:
Annuity contracts in accumulation 50,560 15,298 1,220,016
- --------------------------------------------------------------------------------------
Growth Fund:
Annuity contracts in accumulation 144,013 14,730 497,930
- --------------------------------------------------------------------------------------
Value Fund:
Annuity contracts in accumulation 107,787 44,964 835,034
- --------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation 5,750,754 2,809,577 (1,784,527)
- --------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation 7,630,657 10,615,100 (7,600,032)
- --------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 23,503,440 6,451,416 75,728,469
- --------------------------------------------------------------------------------------
High Income Portfolio:
Annuity contracts in accumulation 124,194 (41,988) 34,123
- --------------------------------------------------------------------------------------
Overseas Portfolio:
Annuity contracts in accumulation 391,037 978,239 4,823,117
- --------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation 1,657,402 869,135 1,190
- --------------------------------------------------------------------------------------
Contrafund Portfolio:
Annuity contracts in accumulation 9,818,964 15,275,881 61,433,098
- --------------------------------------------------------------------------------------
Index 500 Portfolio:
Annuity contracts in accumulation 221,114 10,243,611 8,479,708
- --------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation 13,303,149 18,380,825 490,048,109
- --------------------------------------------------------------------------------------
Balanced Portfolio:
Annuity contracts in accumulation 2,407,967 2,695,537 33,691,755
- --------------------------------------------------------------------------------------
Flexible Income Portfolio:
Annuity contracts in accumulation 1,905,340 102,768 (1,858,291)
- --------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Increase (Decrease) Net Assets
in Net Assets ----------
from Unit Beginning End
Transactions of Year of Year
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Money Market VP:
Annuity contracts in accumulation $56,001,252 $258,856,854 $325,367,721
Annuity contracts in payment period 83,117 80,784
- ---------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP:
Annuity contracts in accumulation 543,051 1,561,066 1,983,625
- ---------------------------------------------------------------------------------------------
Aetna Small Company VP:
Annuity contracts in accumulation 734,295 47,966,985 62,919,038
Annuity contracts in payment period 9,901 11,036
- ---------------------------------------------------------------------------------------------
Aetna Value Opportunity VP:
Annuity contracts in accumulation 526,409 28,785,139 34,639,709
- ---------------------------------------------------------------------------------------------
AIM V.I. Funds:
Capital Appreciation Fund:
Annuity contracts in accumulation 1,498,214 0 1,830,289
- ---------------------------------------------------------------------------------------------
Growth and Income Fund:
Annuity contracts in accumulation 8,466,129 0 9,752,003
- ---------------------------------------------------------------------------------------------
Growth Fund:
Annuity contracts in accumulation 4,044,040 0 4,700,713
- ---------------------------------------------------------------------------------------------
Value Fund:
Annuity contracts in accumulation 7,550,284 0 8,538,069
- ---------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation (2,584,906) 63,901,407 68,092,305
- ---------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation (22,905,250) 226,201,287 213,941,762
- ---------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 104,243,427 230,408,503 440,335,255
- ---------------------------------------------------------------------------------------------
High Income Portfolio:
Annuity contracts in accumulation 146,104 1,611,556 1,873,989
- ---------------------------------------------------------------------------------------------
Overseas Portfolio:
Annuity contracts in accumulation 1,026,570 14,814,602 22,033,565
- ---------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation (1,496,641) 26,699,659 27,730,745
- ---------------------------------------------------------------------------------------------
Contrafund Portfolio:
Annuity contracts in accumulation 28,744,136 360,081,326 475,353,405
- ---------------------------------------------------------------------------------------------
Index 500 Portfolio:
Annuity contracts in accumulation 10,276,427 93,352,318 122,573,178
- ---------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation 279,468,672 292,229,082 1,093,429,837
- ---------------------------------------------------------------------------------------------
Balanced Portfolio:
Annuity contracts in accumulation 101,738,423 94,876,992 235,410,674
- ---------------------------------------------------------------------------------------------
Flexible Income Portfolio:
Annuity contracts in accumulation 257,212 32,501,248 32,908,277
- ---------------------------------------------------------------------------------------------
</TABLE>
S-41
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1999 (continued):
6. Supplemental Information to Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Growth Portfolio:
Annuity contracts in accumulation ($878,661) $4,203,879 $85,432,344
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
Worldwide Growth Portfolio:
Annuity contracts in accumulation (7,230,405) 28,651,722 399,415,491
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Annuity contracts in accumulation (38,024) 920,198 4,929,162
- ----------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation (100,558) (1,949,728) 4,103,785
- ----------------------------------------------------------------------------------------------------
MFS Funds:
Total Return Series:
Annuity contracts in accumulation 21,607 9,440 (22,187)
- ----------------------------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund/VA: (1)
Annuity contracts in accumulation 32,268 233,178 1,327,431
- ----------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (2)
Annuity contracts in accumulation 124,247 (40,619) (26,322)
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation (459,744) 19,466,353 177,745,248
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation (2,267,821) 10,075,588 40,977,917
- ----------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation 2,847,222 6,015,052 62,469,848
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation 6,448,822 59,250,743 42,048,531
- ----------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation 2,793,773 9,179,295 31,045,275
Annuity contracts in payment period
- ----------------------------------------------------------------------------------------------------
Total Variable Annuity Account C $1,336,283,808 $421,797,682 $1,273,553,376
====================================================================================================
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Year Ended December 31, 1999 Net
Increase (Decrease) Net Assets
in Net Assets ----------
from Unit Beginning End
Transactions of Year of Year
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Growth Portfolio:
Annuity contracts in accumulation $141,722,099 $132,697,360 $362,723,120
Annuity contracts in payment period 235,492 689,393
- --------------------------------------------------------------------------------------------------------
Worldwide Growth Portfolio:
Annuity contracts in accumulation 100,021,912 615,835,740 1,136,307,574
Annuity contracts in payment period 365,972 752,858
- --------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Annuity contracts in accumulation 1,680,324 4,094,455 11,586,115
- --------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation (5,286,357) 19,741,327 16,508,469
- --------------------------------------------------------------------------------------------------------
MFS Funds:
Total Return Series:
Annuity contracts in accumulation 289,569 385,767 684,196
- --------------------------------------------------------------------------------------------------------
Oppenheimer Funds:
Global Securities Fund/VA: (1)
Annuity contracts in accumulation 3,302,879 976,121 5,871,877
- --------------------------------------------------------------------------------------------------------
Strategic Bond Fund/VA: (2)
Annuity contracts in accumulation 1,177,371 2,253,578 3,464,259
Annuity contracts in payment period 3,521 27,517
- --------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation (33,182,887) 434,156,330 597,714,231
Annuity contracts in payment period 27,431 38,500
- --------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation (35,109,323) 242,087,516 255,763,877
- --------------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation 4,623,083 150,852,476 226,770,707
Annuity contracts in payment period 0 36,974
- --------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation (18,230,281) 201,965,809 291,483,624
- --------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation (15,852,163) 215,872,943 243,032,240
Annuity contracts in payment period 56,047 62,930
- --------------------------------------------------------------------------------------------------------
Total Variable Annuity Account C $5,100,009 $12,426,365,277 $15,463,100,152
========================================================================================================
</TABLE>
(1) - Effective May 1, 1999, Oppenheimer Global Securities Fund's name changed
to Oppenheimer Global Securities Fund/VA.
(2) - Effective May 1, 1999, Oppenheimer Strategic Bond Fund's name changed to
Oppenheimer Strategic Bond Fund/VA.
S-42
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
6. Supplemental Information to Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Ascent VP: (1)
Annuity contracts in accumulation $3,128,384 $2,562,397 ($3,610,219)
- --------------------------------------------------------------------------------------------
Aetna Balanced VP: (2)
Annuity contracts in accumulation 153,211,956 42,703,224 (53,862,918)
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna Bond VP: (3)
Annuity contracts in accumulation 18,437,889 521,925 5,612,691
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna Crossroads VP: (4)
Annuity contracts in accumulation 2,049,966 2,450,233 (2,015,396)
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna Get Fund, Series B:
Annuity contracts in accumulation 15,962,213 11,960,830 (16,355,219)
- --------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Annuity contracts in accumulation 21,997,865 23,920,782 5,826,482
- --------------------------------------------------------------------------------------------
Aetna Get Fund, Series D:
Annuity contracts in accumulation 816,486 0 75,991
- --------------------------------------------------------------------------------------------
Aetna Growth and Income VP: (5)
Annuity contracts in accumulation 1,015,570,023 190,048,495 (448,991,512)
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna Growth VP: (6)
Annuity contracts in accumulation (223,647) 231,175 7,331,655
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna High Yield VP: (7)
Annuity contracts in accumulation 116,367 (49,386) (104,129)
- --------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Annuity contracts in accumulation 71,714 8,031 (60,361)
- --------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP: (8)
Annuity contracts in accumulation 8,817,406 1,967,287 31,233,673
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP: (9)
Annuity contracts in accumulation 186,430 (9,298) 420,810
- --------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP: (10)
Annuity contracts in accumulation 180,192 (238,686) 395,906
- --------------------------------------------------------------------------------------------
Aetna International VP: (11)
Annuity contracts in accumulation 91,856 (177,741) 53,600
- --------------------------------------------------------------------------------------------
Aetna Legacy VP: (12)
Annuity contracts in accumulation 1,746,594 975,624 (708,542)
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna Money Market VP: (13)
Annuity contracts in accumulation 9,089,898 1,505,797 (303,586)
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP: (14)
Annuity contracts in accumulation 70,732 (47,944) (110,732)
- --------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Increase (Decrease) Net Assets
in Net Assets ----------
from Unit Beginning End
Transactions of Year of Year
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Ascent VP: (1)
Annuity contracts in accumulation $11,804,390 $72,115,304 $86,000,256
- ------------------------------------------------------------------------------------------------
Aetna Balanced VP: (2)
Annuity contracts in accumulation (119,806,746) 968,354,403 982,574,403
Annuity contracts in payment period 21,193,276 29,218,792
- ------------------------------------------------------------------------------------------------
Aetna Bond VP: (3)
Annuity contracts in accumulation (19,343,273) 372,629,553 377,693,504
Annuity contracts in payment period 6,218,756 6,384,037
- ------------------------------------------------------------------------------------------------
Aetna Crossroads VP: (4)
Annuity contracts in accumulation 21,876,020 49,739,310 74,028,644
Annuity contracts in payment period 0 71,489
- ------------------------------------------------------------------------------------------------
Aetna Get Fund, Series B:
Annuity contracts in accumulation (31,539,579) 79,552,932 59,581,177
- ------------------------------------------------------------------------------------------------
Aetna Get Fund, Series C:
Annuity contracts in accumulation (90,386,869) 236,822,693 198,180,953
- ------------------------------------------------------------------------------------------------
Aetna Get Fund, Series D:
Annuity contracts in accumulation 270,087,653 0 270,980,130
- ------------------------------------------------------------------------------------------------
Aetna Growth and Income VP: (5)
Annuity contracts in accumulation (952,072,750) 6,078,549,136 5,846,282,205
Annuity contracts in payment period 292,045,818 328,867,005
- ------------------------------------------------------------------------------------------------
Aetna Growth VP: (6)
Annuity contracts in accumulation 56,413,060 1,098,483 64,734,239
Annuity contracts in payment period 0 116,487
- ------------------------------------------------------------------------------------------------
Aetna High Yield VP: (7)
Annuity contracts in accumulation 1,281,526 0 1,244,378
- ------------------------------------------------------------------------------------------------
Aetna Index Plus Bond VP:
Annuity contracts in accumulation 1,406,227 0 1,425,611
- ------------------------------------------------------------------------------------------------
Aetna Index Plus Large Cap VP: (8)
Annuity contracts in accumulation 113,822,649 83,098,319 238,578,749
Annuity contracts in payment period 76,758 437,343
- ------------------------------------------------------------------------------------------------
Aetna Index Plus Mid Cap VP: (9)
Annuity contracts in accumulation 3,518,535 0 4,116,477
- ------------------------------------------------------------------------------------------------
Aetna Index Plus Small Cap VP: (10)
Annuity contracts in accumulation 4,615,743 0 4,953,155
- ------------------------------------------------------------------------------------------------
Aetna International VP: (11)
Annuity contracts in accumulation 2,048,312 0 2,016,027
- ------------------------------------------------------------------------------------------------
Aetna Legacy VP: (12)
Annuity contracts in accumulation 18,514,701 32,749,254 53,070,226
Annuity contracts in payment period 53,658 261,063
- ------------------------------------------------------------------------------------------------
Aetna Money Market VP: (13)
Annuity contracts in accumulation 8,301,664 240,346,197 258,856,854
Annuity contracts in payment period 0 83,117
- ------------------------------------------------------------------------------------------------
Aetna Real Estate Securities VP: (14)
Annuity contracts in accumulation 1,649,010 0 1,561,066
- ------------------------------------------------------------------------------------------------
</TABLE>
S-43
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
6. Supplemental Information to Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Small Company VP: (15)
Annuity contracts in accumulation $34,075 ($632,566) ($237,039)
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Aetna Value Opportunity VP: (16)
Annuity contracts in accumulation 72,311 170,847 3,765,980
- -------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation 3,912,500 1,912,051 2,389,226
- -------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation 9,927,989 6,494,005 3,583,644
- -------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 16,421,511 2,297,310 37,802,599
- -------------------------------------------------------------------------------------------
High Income Portfolio:
Annuity contracts in accumulation (5,690) (11,606) 8,863
- -------------------------------------------------------------------------------------------
Overseas Portfolio:
Annuity contracts in accumulation 894,375 575,848 27,910
- -------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation 2,664,758 493,267 52,204
- -------------------------------------------------------------------------------------------
Contrafund Portfolio:
Annuity contracts in accumulation 11,718,943 8,948,829 55,916,578
- -------------------------------------------------------------------------------------------
Index 500 Portfolio:
Annuity contracts in accumulation 1,445,737 1,421,594 15,143,241
- -------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation (2,715,064) 9,472,868 63,408,377
- -------------------------------------------------------------------------------------------
Balanced Portfolio:
Annuity contracts in accumulation 2,053,127 1,503,469 15,336,313
- -------------------------------------------------------------------------------------------
Flexible Income Portfolio:
Annuity contracts in accumulation 1,403,917 484,768 (205,615)
- -------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 5,050,660 2,933,593 22,714,944
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Worldwide Growth Portfolio:
Annuity contracts in accumulation 13,991,276 27,711,590 75,136,932
Annuity contracts in payment period
- -------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Annuity contracts in accumulation 341,144 (1,259,258) (685,957)
- -------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation 1,386,460 551,760 (8,013,218)
- -------------------------------------------------------------------------------------------
MFS Fund:
Total Return Series:
Annuity contracts in accumulation (980) (168) 21,009
- -------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Increase (Decrease) Net Assets
in Net Assets ----------
from Unit Beginning End
Transactions of Year of Year
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Aetna Small Company VP: (15)
Annuity contracts in accumulation $43,856,203 $4,956,212 $47,966,985
Annuity contracts in payment period 0 9,901
- ---------------------------------------------------------------------------------------------
Aetna Value Opportunity VP: (16)
Annuity contracts in accumulation 22,736,361 2,039,640 28,785,139
- ---------------------------------------------------------------------------------------------
Calvert Social Balanced Portfolio:
Annuity contracts in accumulation 1,243,219 54,444,411 63,901,407
- ---------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Annuity contracts in accumulation 15,460,299 190,735,350 226,201,287
- ---------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 45,629,738 128,257,345 230,408,503
- ---------------------------------------------------------------------------------------------
High Income Portfolio:
Annuity contracts in accumulation 1,619,989 0 1,611,556
- ---------------------------------------------------------------------------------------------
Overseas Portfolio:
Annuity contracts in accumulation (132,737) 13,449,206 14,814,602
- ---------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Annuity contracts in accumulation 290,089 23,199,341 26,699,659
- ---------------------------------------------------------------------------------------------
Contrafund Portfolio:
Annuity contracts in accumulation 26,948,171 256,548,805 360,081,326
- ---------------------------------------------------------------------------------------------
Index 500 Portfolio:
Annuity contracts in accumulation 17,619,975 57,721,771 93,352,318
- ---------------------------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth Portfolio:
Annuity contracts in accumulation 11,462,457 210,600,444 292,229,082
- ---------------------------------------------------------------------------------------------
Balanced Portfolio:
Annuity contracts in accumulation 38,532,102 37,451,981 94,876,992
- ---------------------------------------------------------------------------------------------
Flexible Income Portfolio:
Annuity contracts in accumulation 16,062,139 14,756,039 32,501,248
- ---------------------------------------------------------------------------------------------
Growth Portfolio:
Annuity contracts in accumulation 22,205,253 79,992,417 132,697,360
Annuity contracts in payment period 35,986 235,492
- ---------------------------------------------------------------------------------------------
Worldwide Growth Portfolio:
Annuity contracts in accumulation 70,151,913 429,093,163 615,835,740
Annuity contracts in payment period 116,838 365,972
- ---------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund:
Annuity contracts in accumulation (90,067) 5,788,593 4,094,455
- ---------------------------------------------------------------------------------------------
Lexington Natural Resources Trust Fund:
Annuity contracts in accumulation (17,149,400) 42,965,725 19,741,327
- ---------------------------------------------------------------------------------------------
MFS Fund:
Total Return Series:
Annuity contracts in accumulation 365,906 0 385,767
- ---------------------------------------------------------------------------------------------
</TABLE>
S-44
<PAGE>
Variable Annuity Account C
Notes to Financial Statements - December 31, 1998 (continued):
6. Supplemental Information to Statements of Changes in Net Assets (continued)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Net Change in
Net Realized Unrealized
Investment Gain (Loss) Gain (Loss)
Income on Investments on Investments
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oppenheimer Funds:
Global Securities Fund:
Annuity contracts in accumulation ($3,966) ($25,797) $90,591
- --------------------------------------------------------------------------------------------------
Strategic Bond Fund:
Annuity contracts in accumulation (10,626) (19,660) 23,736
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation (3,417,298) 6,217,559 91,886,007
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation (2,696,448) 3,203,133 44,839,052
- --------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation (1,409,082) 1,764,276 29,028,143
- --------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation (2,085,647) 20,936,373 15,417,811
- --------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation (1,234,277) 2,580,929 42,197,410
Annuity contracts in payment period
- --------------------------------------------------------------------------------------------------
Total Variable Annuity Account C $1,309,062,029 $376,057,759 $34,476,935
==================================================================================================
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Year Ended December 31, 1998 Net
Increase (Decrease) Net Assets
in Net Assets ----------
from Unit Beginning End
Transactions of Year of Year
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Oppenheimer Funds:
Global Securities Fund:
Annuity contracts in accumulation $915,293 $0 $976,121
- --------------------------------------------------------------------------------------------------------
Strategic Bond Fund:
Annuity contracts in accumulation 2,263,649 0 2,253,578
Annuity contracts in payment period 0 3,521
- --------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. (PPI):
PPI MFS Emerging Equities Portfolio:
Annuity contracts in accumulation (13,492,672) 352,966,999 434,156,330
Annuity contracts in payment period 23,166 27,431
- --------------------------------------------------------------------------------------------------------
PPI MFS Research Growth Portfolio:
Annuity contracts in accumulation (30,288,218) 227,029,997 242,087,516
- --------------------------------------------------------------------------------------------------------
PPI MFS Value Equity Portfolio:
Annuity contracts in accumulation 5,182,435 116,286,704 150,852,476
- --------------------------------------------------------------------------------------------------------
PPI Scudder International Growth Portfolio:
Annuity contracts in accumulation (35,002,543) 202,699,815 201,965,809
- --------------------------------------------------------------------------------------------------------
PPI T. Rowe Price Growth Equity Portfolio:
Annuity contracts in accumulation 2,934,376 169,450,553 215,872,943
Annuity contracts in payment period 0 56,047
- --------------------------------------------------------------------------------------------------------
Total Variable Annuity Account C ($448,485,797) $11,155,254,351 $12,426,365,277
========================================================================================================
</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 began doing business under
the name Aetna Bond 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 began doing business under
the name 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 began doing business
under the name 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.
S-45
<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, 1999, the related statement of operations for the year then
ended, statements of 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, 1999. 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. Our procedures included confirmation of securities
owned as of December 31, 1999, 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, 1999, the results of its operations for the year then ended,
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, 1999,
in conformity with generally accepted accounting principles.
/s/ KPMG LLP
Hartford, Connecticut
February 3, 2000
S-46
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
Index to Consolidated Financial Statements
<TABLE>
<CAPTION>
Page
----
<S> <C>
Independent Auditors' Report........................................................ F-2
Consolidated Financial Statements:
Consolidated Statements of Income for the Years Ended December 31, 1999,
1998 and 1997.................................................................. F-3
Consolidated Balance Sheets as of December 31, 1999 and 1998..................... F-4
Consolidated Statements of Changes in Shareholder's Equity for the Years Ended
December 31, 1999, 1998 and 1997............................................... F-5
Consolidated Statements of Cash Flows for the Years Ended December 31, 1999, 1998
and 1997....................................................................... F-6
Notes to Consolidated Financial Statements....................................... F-7
</TABLE>
F-1
<PAGE>
Independent Auditors' Report
The Shareholder and Board of Directors
Aetna Life Insurance and Annuity Company:
We have audited the accompanying consolidated balance sheets of Aetna Life
Insurance and Annuity Company and Subsidiaries as of December 31, 1999 and
1998, and the related consolidated statements of income, changes in
shareholder's equity and cash flows for each of the years in the three-year
period ended December 31, 1999. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statements presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the aforementioned consolidated financial statements present
fairly, in all material respects, the financial position of Aetna Life
Insurance and Annuity Company and Subsidiaries at December 31, 1999 and 1998,
and the results of their operations and their cash flows for each of the years
in the three-year period ended December 31, 1999, in conformity with generally
accepted accounting principles.
/s/ KPMG LLP
Hartford, Connecticut
February 7, 2000
F-2
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Statements of Income
(millions)
<TABLE>
<CAPTION>
Years Ended December 31,
-----------------------------------------
1999 1998 1997
----------- ------------ ------------
<S> <C> <C> <C>
Revenue:
Premiums $ 107.5 $ 79.4 $ 69.1
Charges assessed against policyholders 388.3 324.3 262.0
Net investment income 886.3 871.8 881.7
Net realized capital (losses) gains (21.5) 10.4 29.7
Other income 129.7 100.2 96.8
-------- -------- --------
Total revenue 1,490.3 1,386.1 1,339.3
-------- -------- --------
Benefits and expenses:
Current and future benefits 746.2 714.4 720.4
Operating expenses:
Salaries and related benefits 153.0 141.0 133.5
Other 214.9 200.8 182.8
Amortization of deferred policy acquisition costs 104.9 91.2 66.3
-------- -------- --------
Total benefits and expenses 1,219.0 1,147.4 1,103.0
-------- -------- --------
Income from continuing operations before income
taxes 271.3 238.7 236.3
Income taxes 90.1 66.6 68.4
-------- -------- --------
Income from continuing operations 181.2 172.1 167.9
Discontinued operations, net of tax:
Income from operations -- 61.8 67.8
Amortization of deferred gain on sale 5.7 -- --
Immediate gain on sale -- 59.0 --
-------- -------- --------
Net income $ 186.9 $ 292.9 $ 235.7
======== ======== ========
</TABLE>
See Notes to Consolidated Financial Statements
F-3
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Balance Sheets
(millions, except share data)
<TABLE>
<CAPTION>
December 31, December 31,
1999 1998
------------- --------------
<S> <C> <C>
Assets
Investments:
Debt securities available for sale, at fair value
(amortized cost: $11,657.9 and $11,571.3) $11,410.1 $12,068.2
Equity securities, available for sale:
Nonredeemable preferred stock (cost: $134.7 and $202.6) 130.9 203.3
Investment in affiliated mutual funds (cost: $63.5 and $96.8) 64.1 100.1
Common stock (cost: $6.7 and $1.0) 11.5 2.0
Short-term investments 74.2 48.9
Mortgage loans 6.7 12.7
Policy loans 314.0 292.2
Other investments 13.2 12.7
----------- -----------
Total investments 12,024.7 12,740.1
Cash and cash equivalents 693.3 628.3
Short-term investments under securities loan agreement 232.5 277.3
Accrued investment income 150.7 151.6
Premiums due and other receivables 298.3 61.1
Reinsurance recoverable 3,001.2 2,959.8
Deferred income taxes 150.4 114.3
Deferred policy acquisition costs 1,046.4 893.1
Other assets 96.5 70.4
Separate Accounts assets 38,692.6 29,430.2
----------- -----------
Total assets $56,386.6 $47,326.2
=========== ===========
Liabilities and Shareholder's Equity
Liabilities:
Future policy benefits $ 3,850.4 $ 3,815.9
Unpaid claims and claim expenses 27.3 18.8
Policyholders' funds left with the Company 11,121.7 11,305.6
----------- -----------
Total insurance reserve liabilities 14,999.4 15,140.3
Payables under securities loan agreement 232.5 277.3
Current income taxes 14.7 279.6
Other liabilities 1,063.0 805.5
Separate Accounts liabilities 38,692.6 29,430.2
----------- -----------
Total liabilities 55,002.2 45,932.9
----------- -----------
Shareholder's equity:
Common stock, par value $50 (100,000 shares
authorized; 55,000 shares issued and outstanding) 2.8 2.8
Paid-in capital 431.8 431.8
Accumulated other comprehensive (loss) income (44.8) 104.8
Retained earnings 994.6 853.9
----------- -----------
Total shareholder's equity 1,384.4 1,393.3
----------- -----------
Total liabilities and shareholder's equity $56,386.6 $47,326.2
=========== ===========
</TABLE>
See Notes to Consolidated Financial Statements
F-4
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Statements of Changes in Shareholder's Equity
(millions)
<TABLE>
<CAPTION>
Years Ended December 31,
---------------------------------------------
1999 1998 1997
------------- ------------- -------------
<S> <C> <C> <C>
Shareholder's equity, beginning of year $1,393.3 $1,852.8 $1,618.3
Comprehensive income:
Net income 186.9 292.9 235.7
Other comprehensive income, net of tax:
Unrealized (losses) gains on securities
($(230.2), $18.2 $49.9, pretax)(1) (149.6) 11.9 32.4
---------- ---------- ----------
Total comprehensive income 37.3 304.8 268.1
---------- ---------- ----------
Capital contribution -- 9.3 (5.0)
Other changes 2.8 2.4 5.7
---------- ---------- ----------
Common stock dividends (49.0) (776.0) (34.3)
---------- ---------- ----------
Shareholder's equity, end of year $1,384.4 $1,393.3 $1,852.8
========== ========== ==========
</TABLE>
(1) Net of reclassification adjustments.
See Notes to Consolidated Financial Statements
F-5
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Statements of Cash Flows
(millions)
<TABLE>
<CAPTION>
Years Ended December 31,
---------------------------------------------
1999 1998 1997
------------- ------------- -------------
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net income $ 186.9 $ 292.9 $ 235.7
Adjustments to reconcile net income to net cash (used for) provided by
operating activities:
Net accretion of discount on investments (26.5) (29.5) (66.8)
Amortization of deferred gain on sale ( 5.7) -- --
Immediate gain on sale -- (59.0) --
Net realized capital losses (gains) 21.5 (11.1) (36.0)
Changes in assets and liabilities:
Decrease (increase) in accrued investment income 0.9 11.4 ( 4.0)
Increase in premiums due and other receivables 23.3 (23.7) (30.0)
(Increase) decrease in policy loans (21.8) 177.4 (70.3)
Increase in deferred policy acquisition costs (153.3) (132.8) (155.8)
Decrease in reinsurance loan to affiliate -- 397.2 231.1
Net increase in universal life account balances 55.7 122.9 157.1
Decrease in other insurance reserve liabilities (28.6) (41.8) (120.3)
Decrease in other liabilities and other assets (53.9) (53.6) (74.0)
(Decrease) increase in income taxes (259.8) 106.4 (25.8)
---------- ---------- ----------
Net cash (used for) provided by operating activities (261.3) 756.7 40.9
---------- ---------- ----------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale 5,890.1 6,790.2 5,311.4
Equity securities 111.2 150.1 103.1
Mortgage loans 6.1 0.3 0.2
Life Business -- 966.5 --
Investment maturities and collections of:
Debt securities available for sale 1,216.5 1,296.3 1,212.7
Short-term investments 80.6 135.3 108.4
Cost of investment purchases in:
Debt securities available for sale (7,099.7) (6,706.4) (6,734.8)
Equity securities (13.0) (125.7) (113.3)
Short-term investments (106.0) (83.9) (167.1)
Increase in property and equipment 5.7 9.0 10.0
Other, net 3.7 (2,725.9) --
---------- ---------- ----------
Net cash provided by (used for) investing activities 95.2 (294.2) (269.4)
---------- ---------- ----------
Cash Flows from Financing Activities:
Deposits and interest credited for investment contracts 2,040.2 1,571.1 1,621.2
Withdrawals of investment contracts (1,680.8) (1,393.1) (1,256.3)
Capital contribution to Separate Account -- -- (25.0)
Return of capital from Separate Account -- 1.7 12.3
Capital contribution from HOLDCO -- 9.3 (5.0)
Dividends paid to shareholder (255.0) (570.0) (34.3)
Other, net 126.7 (34.3) 26.4
---------- ---------- ----------
Net cash provided by (used for) financing activities 231.1 (415.3) 339.3
---------- ---------- ----------
Net increase in cash and cash equivalents 65.0 47.2 110.8
Cash and cash equivalents, beginning of year 628.3 581.1 470.3
---------- ---------- ----------
Cash and cash equivalents, end of year $ 693.3 $ 628.3 $ 581.1
========== ========== ==========
Supplemental cash flow information:
Income taxes paid, net $ 316.5 $ 60.5 $ 130.3
========== ========== ==========
</TABLE>
See Notes to Consolidated Financial Statements
F-6
<PAGE>
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
Aetna Life Insurance and Annuity Company ("ALIAC") and its wholly owned
subsidiaries (collectively, the "Company") are providers of financial products
and services and investment management services in the United States. The
Company has two business segments: Financial Products and Investment Management
Services. On October 1, 1998, the Company sold its individual life insurance
business to Lincoln National Corporation ("Lincoln") and accordingly, it is now
classified as Discontinued Operations (refer to note 3).
Financial Products include annuity contracts that offer a variety of funding
and payout options for individual and employer-sponsored retirement plans
qualified under Internal Revenue Code Sections 401, 403, 408 and 457,
nonqualified annuity contracts and mutual funds. Annuity contracts may be
deferred or immediate ("payout annuities"). These products also include
programs offered to qualified plans and nonqualified deferred compensation
plans that package administrative and recordkeeping services along with a menu
of investment options, including mutual funds (both ALIAC and nonaffiliated
mutual funds), variable and fixed investment options. Financial Products also
include investment advisory services and pension plan administrative services.
Investment Management Services provides: investment advisory services to
affiliated and unaffiliated institutional and retail clients on a
fee-for-service basis; underwriting services to the Aetna Series Fund Inc.;
distribution services for other Aetna products; and trustee, administrative,
and other fiduciary services to retirement plans requiring or otherwise
utilizing a trustee or custodian.
Discontinued Operations include universal life, variable universal life,
traditional whole life and term insurance.
Principles of Consolidation
The consolidated financial statements include ALIAC and its wholly owned
subsidiaries, Aetna Insurance Company of America ("AICA") and Aetna Investment
Adviser Holding Company, Inc. ("IA Holdco"). ALIAC is a wholly owned subsidiary
of Aetna Retirement Holdings, Inc. ("HOLDCO"). HOLDCO is a wholly owned
subsidiary of Aetna Retirement Services, Inc. whose ultimate parent is Aetna
Inc. ("Aetna"). On July 1, 1999, HOLDCO contributed IA Holdco to the Company
(refer to note 2).
The consolidated financial statements have been prepared in accordance with
generally accepted accounting principles. The contribution of IA Holdco to the
Company was accounted for in a manner similar to that of a pooling-of-interests
and accordingly, the Company's historical consolidated financial statements
have been restated to include the accounts and results of operations of IA
Holdco. Certain reclassifications have been made to 1998 and 1997 financial
information to conform to the 1999 presentation.
F-7
<PAGE>
Notes to Consolidated Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
New Accounting Standards
Accounting by Insurance and Other Enterprises for Insurance-Related Assesments
As of January 1, 1999, the Company adopted Statement of Position ("SOP") 97-3,
Accounting by Insurance and Other Enterprises for Insurance-Related
Assessments, issued by the American Institute of Certified Public Accountants
("AICPA"). This statement provides guidance for determining when an insurance
or other enterprise should recognize a liability for guaranty-fund and other
insurance-related assessments and guidance for measuring the liability. The
adoption of this standard did not have a material effect on the Company's
financial position or results of operations, as the Company had previously
accounted for guaranty-fund and other insurance-related assessments in a manner
consistent with this standard.
Future Application of Accounting Standards
Deposit Accounting: Accounting for Insurance and Reinsurance Contracts That Do
Not Transfer Insurance Risk
In October 1998, the AICPA issued SOP 98-7, Deposit Accounting: Accounting for
Insurance and Reinsurance Contracts That Do Not Transfer Insurance Risk, which
provides guidance on how to account for all insurance and reinsurance contracts
that do not transfer insurance risk, except for long-duration life and health
insurance contracts. This statement is effective for the Company's financial
statements beginning January 1, 2000. The Company does not expect the adoption
of this standard to have a material effect on its financial position and
results of operations.
Accounting for Derivative Instruments and Hedging Activities
In June 1998, the Financial Accounting Standards Board ("FASB") issued
Financial Accounting Standard ("FAS") No. 133, Accounting for Derivative
Instruments and Hedging Activities. This standard requires companies to record
all derivatives on the balance sheet as either assets or liabilities and
measure those instruments at fair value. The manner in which companies are to
record gains or losses resulting from changes in the values of those
derivatives depends on the use of the derivative and whether it qualifies for
hedge accounting. As amended by FAS No. 137, Accounting for Derivative
Instruments and Hedging Activities -- Deferral of the Effective Date of FASB
Statement No. 133, this standard is effective for the Company's financial
statements beginning January 1, 2001, with early adoption permitted. The impact
of FAS No. 133 on the Company's financial statements will vary based on certain
factors including future interpretative guidance from the FASB, the extent of
the Company's hedging activities, the types of hedging instruments used and the
effectiveness of such instruments. The Company is evaluating the impact of
adoption of this standard and currently does not believe that it will have a
material effect on its financial position and results of operations.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the
F-8
<PAGE>
Notes to Consolidated Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
financial statements and accompanying notes. Actual results could differ from
reported results using those estimates.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, money market instruments and
other debt issues with a maturity of 90 days or less when purchased.
Investments
Debt and equity securities are classified as available for sale and carried at
fair value. Securities are written down (as realized capital losses) for other
than temporary declines in value. Included in available-for-sale securities are
investments that support experience-rated products.
Experience-rated products are products where the customer, not the Company,
assumes investment (including realized capital gains and losses) and other
risks, subject to, among other things, minimum guarantees. As long as minimum
guarantees are not triggered, the effect of experience- rated products'
investment performance does not impact the Company's results of operations.
Realized and unrealized capital gains and losses on investments supporting
these products are reflected in policyholder's funds left with the Company.
Realized capital gains and losses on all other investments are reflected in the
Company's results of operations. Unrealized capital gains and losses on all
other investments are reflected in shareholders' equity, net of related income
taxes. Purchases and sales of debt and equity securities are recorded on the
trade date. Sales of mortgage loans are recorded on the closing date.
Fair values for debt and equity securities are based on quoted market prices or
dealer quotations. Where quoted market prices or dealer quotations are not
available, fair values are measured utilizing quoted market prices for similar
securities or by using discounted cash flow methods. Cost for mortgage-backed
securities is adjusted for unamortized premiums and discounts, which are
amortized using the interest method over the estimated remaining term of the
securities, adjusted for anticipated prepayments. The Company does not accrue
interest on problem debt securities when management believes the collection of
interest is unlikely.
The Company engages in securities lending whereby certain securities from its
portfolio are loaned to other institutions for short periods of time. Initial
collateral, primarily cash, is required at a rate of 102% of the market value
of a loaned domestic security and 105% of the market value of a loaned foreign
security. The collateral is deposited by the borrower with a lending agent, and
retained and invested by the lending agent according to the Company's
guidelines to generate additional income. The market value of the loaned
securities is monitored on a daily basis with additional collateral obtained or
refunded as the market value of the loaned securities fluctuates. At December
31, 1999 and 1998, the Company loaned securities (which are reflected as
invested assets) with a fair value of approximately $232.5 million and $277.3
million, respectively.
The investment in affiliated mutual funds represents an investment in Aetna
managed mutual funds which have been seeded by the Company, and is carried at
fair value.
F-9
<PAGE>
Notes to Consolidated Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Mortgage loans and policy loans are carried at unpaid principal balances, net
of impairment reserves.
Short-term investments, consisting primarily of money market instruments and
other debt issues purchased with an original maturity of 91 days to one year,
are considered available for sale and are carried at fair value, which
approximates amortized cost.
The Company utilizes futures contracts for other than trading purposes in order
to hedge interest rate risk (i.e. market risk, refer to note 5.)
Futures contracts are carried at fair value and require daily cash settlement.
Changes in the fair value of futures contracts allocable to experience rated
contracts are deducted from capital gains and losses with an offsetting amount
reported in future policy benefits. Changes in the fair value of futures
contracts allocable to non-experienced-rated contracts that qualify as hedges
are deferred and recognized as an adjustment to the hedged asset or liability.
Deferred gains or losses on such futures contracts are amortized over the life
of the acquired asset or liability as a yield adjustment or through net
realized capital gains or losses upon disposal of an asset. Changes in the fair
value of futures contracts that do not qualify as hedges are recorded in net
realized capital gains or losses. Hedge designation requires specific asset or
liability identification, a probability at inception of high correlation with
the position underlying the hedge, and that high correlation be maintained
throughout the hedge period. If a hedging instrument ceases to be highly
correlated with the position underlying the hedge, hedge accounting ceases at
that date and excess gains or losses on the hedging instrument are reflected in
net realized capital gains or losses.
Included in common stock are warrants which represent the right to purchase
specific securities. Upon exercise, the cost of the warrants is added to the
basis of the securities purchased.
On occasion, the Company sells call options written on underlying securities
which are carried at fair value. Changes in fair value of these options are
recorded in net realized capital gains or losses.
Deferred Policy Acquisition Costs
Certain costs of acquiring certain insurance business are deferred. These
costs, all of which vary with and are primarily related to the production of
new and renewal business, consist principally of commissions, certain expenses
of underwriting and issuing contracts, and certain agency expenses. For certain
annuity and pension contracts, such costs are amortized in proportion to
estimated gross profits and adjusted to reflect actual gross profits over the
life of the contracts (up to 20 years for annuity and pension contracts.)
Periodically, modifications may be made to deferred annuity contract features,
such as shortening the surrender charge period or waiving the surrender charge,
changing the mortality and expense fees, etc. Unamortized deferred policy
acquisition costs associated with these modified contracts are not written off,
but rather, continue to be associated with the original block of business to
F-10
<PAGE>
Notes to Consolidated Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
which these costs were previously recorded. Such costs are amortized based on
revised estimates of expected gross profits based upon the contract after the
modification. Unamortized deferred policy acquisition costs related to deferred
annuity products were approximately $1.0 billion and $893 million as of
December 31, 1999 and 1998, respectively.
Deferred policy acquisition costs are written off to the extent that it is
determined that future policy premiums and investment income or gross profits
are not adequate to cover related expenses.
Insurance Reserve Liabilities
Future policy benefits include reserves for universal life, immediate annuities
with life contingent payouts and traditional life insurance contracts. Reserves
for universal life products are equal to cumulative deposits less withdrawals
and charges plus credited interest thereon. Reserves for traditional life
insurance contracts represent the present value of future benefits to be paid
to or on behalf of policyholders and related expenses less the present value of
future net premiums.
Reserves for immediate annuities with life contingent payouts contracts are
computed on the basis of assumed investment yield, mortality, and expenses,
including a margin for adverse deviations. Such assumptions generally vary by
plan, year of issue and policy duration. Reserve interest rates range from
1.50% to 11.25% for all years presented. Investment yield is based on the
Company's experience. Mortality and withdrawal rate assumptions are based on
relevant Aetna experience and are periodically reviewed against both industry
standards and experience.
Because the sale of the domestic individual life insurance business was
substantially in the form of an indemnity reinsurance agreement, the Company
reported an addition to its reinsurance recoverable approximating the Company's
total individual life reserves at the sale date.
Policyholders' funds left with the Company include reserves for deferred
annuity investment contracts and immediate annuities without life contingent
payouts. Reserves on such contracts are equal to cumulative deposits less
charges and withdrawals plus credited interest thereon (rates range from 1.50%
to 11.25% for all years presented) net of adjustments for investment experience
that the Company is entitled to reflect in future credited interest. These
reserves also include unrealized gains/losses related to FAS No. 115. Reserves
on contracts subject to experience rating reflect the rights of
contractholders, plan participants and the Company.
Unpaid claims for all lines of insurance include benefits for reported losses
and estimates of benefits for losses incurred but not reported.
Revenue Recognition
For certain annuity contracts, charges assessed against policyholders' funds
for the cost of insurance, surrender charges, actuarial margin and other fees
are recorded as revenue in charges assessed against policyholders. Other
amounts received for these contracts are reflected as deposits
F-11
<PAGE>
Notes to Consolidated Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
and are not recorded as revenue. Related policy benefits are recorded in
relation to the associated premiums or gross profit so that profits are
recognized over the expected lives of the contracts. When annuity payments with
life contingencies begin under contracts that were initially investment
contracts, the accumulated balance in the account is treated as a single
premium for the purchase of an annuity and reflected as an offsetting amount in
both premiums and current and future benefits in the Consolidated Statements of
Income.
Separate Accounts
Separate Accounts assets and liabilities generally represent funds maintained
to meet specific investment objectives of contractholders who bear the
investment risk, subject, in some cases, to minimum guaranteed rates.
Investment income and investment gains and losses generally accrue directly to
such contractholders. The assets of each account are legally segregated and are
not subject to claims that arise out of any other business of the Company.
Separate Accounts assets supporting variable options under universal life and
annuity contracts are invested, as designated by the contractholder or
participant under a contract (who bears the investment risk subject, in limited
cases, to minimum guaranteed rates) in shares of mutual funds which are managed
by the Company, or other selected mutual funds not managed by the Company.
Separate Accounts assets are carried at fair value. At December 31, 1999 and
1998 , unrealized losses of $8.0 million and unrealized gains of $10.0 million,
respectively, after taxes, on assets supporting a guaranteed interest option
are reflected in shareholder's equity. Separate Accounts liabilities are
carried at fair value, except for those relating to the guaranteed interest
option. Reserves relating to the guaranteed interest option are maintained at
fund value and reflect interest credited at rates ranging from 3.70% to 12.00%
in 1999 and 3.00 to 8.10% in 1998.
Separate Accounts assets and liabilities are shown as separate captions in the
Consolidated Balance Sheets. Deposits, investment income and net realized and
unrealized capital gains and losses of the Separate Accounts are not reflected
in the Consolidated Financial Statements (with the exception of realized and
unrealized capital gains and losses on the assets supporting the guaranteed
interest option). The Consolidated Statements of Cash Flows do not reflect
investment activity of the Separate Accounts.
Reinsurance
The Company utilizes indemnity reinsurance agreements to reduce its exposure to
large losses in all aspects of its insurance business. Such reinsurance permits
recovery of a portion of losses from reinsurers, although it does not discharge
the primary liability of the Company as direct insurer of the risks reinsured.
The Company evaluates the financial strength of potential reinsurers and
continually monitors the financial condition of reinsurers. Only those
reinsurance recoverable deemed probable of recovery are reflected as assets on
the Company's Consolidated Balance Sheets. Of the reinsurance recoverable on
the Consolidated Balance Sheets at December 31, 1999 and 1998, $2,989 million
and $2,946 million, respectively, is related to the reinsurance recoverable
from Lincoln arising from the sale of the domestic life insurance business.
(Refer to note 3)
F-12
<PAGE>
Notes to Consolidated Financial Statements (continued)
1. Summary of Significant Accounting Policies (continued)
Income Taxes
The Company is included in the consolidated federal income tax return of Aetna.
The Company is taxed at regular corporate rates after adjusting income reported
for financial statement purposes for certain items. Deferred income tax
expenses/benefits result from changes during the year in cumulative temporary
differences between the tax basis and book basis of assets and liabilities.
2. Contribution of IA Holdco from HOLDCO
On July 1, 1999, HOLDCO contributed IA Holdco to the Company. The primary
operating subsidiary of IA Holdco is Aeltus Investment Management, Inc.
("Aeltus") which has two wholly-owned operating subsidiaries: Aeltus Capital,
Inc. ("ACI"), a broker dealer, and Aeltus Trust Company ("ATC"), a limited
purpose banking entity. Aeltus is a registered investment advisor under the
Investment Advisers Act of 1940 and provides investment advisory services to
institutional and retail clients on a fee-for-service basis. In addition,
Aeltus, through its ACI subsidiary, provides distribution services for certain
Aetna mutual funds and other Aetna products. Aeltus' ATC subsidiary provides
trustee, administrative, and other fiduciary services to retirement plans
requiring or otherwise utilizing a trustee or custodian.
3. Discontinued Operations-Individual Life Insurance
On October 1, 1998, the Company sold its domestic individual life insurance
business to Lincoln for $1 billion in cash. The transaction was generally in
the form of an indemnity reinsurance arrangement, under which Lincoln
contractually assumed from the Company certain policyholder liabilities and
obligations, although the Company remains directly obligated to policyholders.
Assets related to and supporting the life policies were transferred to Lincoln
and the Company recorded a reinsurance recoverable from Lincoln. The
transaction resulted in an after-tax gain on the sale of approximately $117
million, of which $57.7 million was deferred and was being recognized over
approximately 15 years. The remaining portion of the gain is recognized
immediately in net income and was largely attributed to access to the agency
sales force and brokerage distribution channel. Approximately $5.2 million
(after tax) of the deferred gain was recognized during 1999. During the fourth
quarter of 1999, the Company refined certain accrual and tax estimates which
had been established in connection with the recording of the deferred gain. As
a result, the deferred gain was increased by $12.9 million (after tax) to $65.4
million at December 31, 1999. The remaining deferred gain will be recognized
over approximately 14 years. The unamortized portion of the deferred gain is
presented in other liabilities on the Consolidated Balance Sheets.
The operating results of the domestic individual life insurance business are
presented as Discontinued Operations. All prior year income statement data has
been restated to reflect the presentation as Discontinued Operations. Revenues
for the individual life segment were $652.2 million and $620.4 million for 1998
and 1997. Premiums ceded and reinsurance recoveries made in 1999 totaled $476.5
million and $513.4 million, respectively, and in 1998 totaled $153.4 million
and $70.5 million, respectively.
F-13
<PAGE>
Notes to Consolidated Financial Statements (continued)
4. Investments
Debt securities available for sale as of December 31 were as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
1999 (Millions) Cost Gains Losses Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. government and government agencies
and authorities $ 1,087.2 $ 4.6 $ 22.1 $ 1,069.7
States, municipalities and political subdivisions 0.3 -- -- 0.3
U.S. corporate securities:
Utilities 514.5 5.6 12.7 507.4
Financial 1,869.8 8.2 44.7 1,833.3
Transportation/capital goods 623.4 .9 39.0 585.3
Health care/consumer products 1,138.7 9.3 51.3 1,096.7
Natural resources 424.6 1.3 15.4 410.5
Other corporate securities 214.0 1.0 14.9 200.1
- ----------------------------------------------------------------------------------------------------------------
Total U.S. corporate securities 4,785.0 26.3 178.0 4,633.3
- ----------------------------------------------------------------------------------------------------------------
Foreign securities:
Government, including political subdivisions 364.6 17.1 11.9 369.8
Utilities 196.4 7.3 .4 203.3
Other 748.2 8.9 34.3 722.8
- ----------------------------------------------------------------------------------------------------------------
Total foreign securities 1,309.2 33.3 46.6 1,295.9
- ----------------------------------------------------------------------------------------------------------------
Residential mortgage-backed securities:
Pass-throughs 1,055.9 19.8 17.6 1,058.1
Collateralized mortgage obligations 1,683.1 25.1 37.7 1,670.5
- ----------------------------------------------------------------------------------------------------------------
Total residential mortgage-backed securities 2,739.0 44.9 55.3 2,728.6
- ----------------------------------------------------------------------------------------------------------------
Commercial/Multifamily mortgage-backed
securities 1,031.5 3.4 48.7 986.2
Other asset-backed securities 705.7 0.3 9.9 696.1
- ----------------------------------------------------------------------------------------------------------------
Total debt securities $ 11,657.9 $ 112.8 $ 360.6 $ 11,410.1
================================================================================================================
</TABLE>
F-14
<PAGE>
Notes to Consolidated Financial Statements (continued)
4. Investments (continued)
Debt securities available for sale as of December 31 were as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
1998 (Millions) Cost Gains Losses Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. government and government agencies
and authorities $ 718.9 $ 60.4 $ 0.2 $ 779.1
States, municipalities and political subdivisions 0.3 -- -- 0.3
U.S. corporate securities:
Utilities 615.2 29.8 4.1 640.9
Financial 2,260.2 94.6 5.6 2,349.2
Transportation/capital goods 580.8 33.0 1.1 612.7
Healthcare/consumer products 1,328.2 69.8 4.8 1,393.2
Natural resources 254.5 6.9 2.3 259.1
Other corporate securities 261.7 5.8 7.4 260.1
- ----------------------------------------------------------------------------------------------------------------
Total U.S. corporate securities 5,300.6 239.9 25.3 5,515.2
- ----------------------------------------------------------------------------------------------------------------
Foreign securities:
Government, including political subdivisions 507.6 30.4 32.9 505.1
Utilities 147.0 32.4 -- 179.4
Other 511.2 14.9 1.8 524.3
- ----------------------------------------------------------------------------------------------------------------
Total foreign securities 1,165.8 77.7 34.7 1,208.8
- ----------------------------------------------------------------------------------------------------------------
Residential mortgage-backed securities:
Pass-throughs 671.9 38.4 2.9 707.4
Collateralized mortgage obligations 1,879.6 119.7 10.4 1,988.9
- ----------------------------------------------------------------------------------------------------------------
Total residential mortgage-backed securities 2,551.5 158.1 13.3 2,696.3
- ----------------------------------------------------------------------------------------------------------------
Commercial/Multifamily mortgage-backed
securities 1,114.9 30.9 9.8 1,136.0
Other asset-backed securities 719.3 13.8 0.6 732.5
- ----------------------------------------------------------------------------------------------------------------
Total debt securities $ 11,571.3 $ 580.8 $ 83.9 $ 12,068.2
================================================================================================================
</TABLE>
F-15
<PAGE>
Notes to Consolidated Financial Statements (continued)
4. Investments (continued)
At December 31, 1999 and 1998, net unrealized (depreciation) appreciation of
$(247.8) million and $496.9 million, respectively, on available-for-sale debt
securities included $(189.7) million and $355.8 million, respectively, related
to experience-rated contracts, which were not reflected in shareholder's equity
but in insurance reserves.
The amortized cost and fair value of debt securities for the year ended
December 31, 1999 are shown below by contractual maturity. Actual maturities
may differ from contractual maturities because securities may be restructured,
called, or prepaid.
<TABLE>
<CAPTION>
Amortized Fair
(Millions) Cost Value
- -------------------------------------------------------------------------
<S> <C> <C>
Due to mature:
One year or less $ 266.4 $ 266.5
After one year through five years 2,838.4 2,798.7
After five years through ten years 1,718.0 1,674.6
After ten years 2,351.4 2,250.1
Mortgage-backed securities 3,776.5 3,722.3
Other asset-backed securities 707.2 697.9
- -------------------------------------------------------------------------
Total $ 11,657.9 $ 11,410.1
=========================================================================
</TABLE>
At December 31, 1999 and 1998, debt securities carried at fair value of $8.7
million and $8.8 million, respectively, were on deposit as required by
regulatory authorities.
The Company did not have any investments in a single issuer, other than
obligations of the U.S. government, with a carrying value in excess of 10% of
the Company's shareholder's equity at December 31, 1999.
Included in the Company's debt securities were residential collateralized
mortgage obligations ("CMOs") supporting the following:
<TABLE>
<CAPTION>
1999 1998
----------------------------- --------------------------
Amortized Fair Amortized Fair
(Millions) Cost Value Cost Value
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Total residential CMOs (1) $ 1,683.1 $ 1,670.5 $ 1,879.6 $ 1,988.9
=====================================================================================================
Percentage of total:
Supporting experience rated products 80.7% 81.7%
Supporting remaining products 19.3% 18.3%
- -----------------------------------------------------------------------------------------------------
100.0% 100.0%
=====================================================================================================
</TABLE>
(1) At December 31, 1999 and 1998, approximately 81% and 66%, respectively, of
the Company's residential CMO holdings were backed by government agencies
such as GNMA, FNMA, FHLMC.
F-16
<PAGE>
Notes to Consolidated Financial Statements (continued)
4. Investments (continued)
There are various categories of CMOs which are subject to different degrees of
risk from changes in interest rates and, for CMO's that are not agency-backed,
defaults. The principal risks inherent in holding CMOs are prepayment and
extension risks related to dramatic decreases and increases in interest rates
resulting in the repayment of principal from the underlying mortgages either
earlier or later than originally anticipated. At December 31, 1999 and 1998,
approximately 1% and 2%, respectively, of the Company's CMO holdings were
invested in types of CMOs which are subject to more prepayment and extension
risk than traditional CMOs (such as interest- or principal-only strips).
Investments in equity securities available for sale as of December 31 were as
follows:
<TABLE>
<CAPTION>
(Millions) 1999 1998
- ----------------------------------------------------
<S> <C> <C>
Amortized Cost $ 204.9 $ 300.4
Gross unrealized gains 12.5 13.1
Gross unrealized losses 10.9 8.1
- ----------------------------------------------------
Fair Value $ 206.5 $ 305.4
====================================================
</TABLE>
5. Financial Instruments
Estimated Fair Value
The carrying values and estimated fair values of certain of the Company's
financial instruments at December 31, 1999 and 1998 were as follows:
<TABLE>
<CAPTION>
1999 1998
-------------------------- ----------------------
Carrying Fair Carrying Fair
(Millions) Value Value Value Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets:
Mortgage loans $ 6.7 $ 6.8 $ 12.7 $ 12.3
Liabilities:
Investment contract liabilities:
With a fixed maturity 1,055.3 991.0 1,063.9 984.3
Without a fixed maturity 10,066.4 9,452.8 10,241.7 9,686.2
- ------------------------------------------------------------------------------------------
</TABLE>
Fair value estimates are made at a specific point in time, based on available
market information and judgments about the financial instrument, such as
estimates of timing and amount of future cash flows. Such estimates do not
reflect any premium or discount that could result from offering for sale at one
time the Company's entire holdings of a particular financial instrument, nor do
they consider the tax impact of the realization of unrealized gains or losses.
In many cases, the fair value estimates cannot be substantiated by comparison
to independent markets, nor can the disclosed value be realized in immediate
settlement of the instrument. In evaluating the Company's management of
interest rate, price and liquidity risks, the fair values of all assets and
liabilities should be taken into consideration, not only those presented above.
F-17
<PAGE>
Notes to Consolidated Financial Statements (continued)
5. Financial Instruments (continued)
The following valuation methods and assumptions were used by the Company in
estimating the fair value of the above financial instruments:
Mortgage loans: Fair values are estimated by discounting expected mortgage loan
cash flows at market rates which reflect the rates at which similar loans would
be made to similar borrowers. The rates reflect management's assessment of the
credit quality and the remaining duration of the loans.
Investment contract liabilities (included in Policyholders' funds left with the
Company):
With a fixed maturity: Fair value is estimated by discounting cash flows at
interest rates currently being offered by, or available to, the Company for
similar contracts.
Off-Balance-Sheet and Other Financial Instruments
Without a fixed maturity: Fair value is estimated as the amount payable to the
contractholder upon demand. However, the Company has the right under such
contracts to delay payment of withdrawals which may ultimately result in paying
an amount different than that determined to be payable on demand.
Futures Contracts:
Futures contracts are used to manage interest rate risk in the Company's bond
portfolio. Futures contracts represent commitments to either purchase or sell
securities at a specified future date and at a specified price or yield.
Futures contracts trade on organized exchanges and, therefore, have minimal
credit risk. Cash settlements are made daily based on changes in the prices of
the underlying assets. The notional amounts, carrying values and estimated fair
values of the Company's open treasury futures as of December 31, 1998 were
$250.9 million, $.1 million, and $.1 million, respectively. There were no open
treasury futures as of December 31, 1999.
Warrants:
Included in common stocks are warrants which are instruments giving the Company
the right, but not the obligation to buy a security at a given price during a
specified period. The carrying values and estimated fair values of the
Company's warrants to purchase equity securities as of December 31, 1999 were
both $6.5 million. The carrying values and estimated fair values as of December
31, 1998 were both $1.5 million.
Options:
During 1999, the Company earned $0.4 million of investment income for writing
call options on underlying securities. The Company did not write any call
options in 1998. As of December 31, 1999 and 1998, there were no option
contracts outstanding.
F-18
<PAGE>
Notes to Consolidated Financial Statements (continued)
5. Financial Instruments (continued)
Debt Instruments with Derivative Characteristics:
The Company also had investments in certain debt instruments with derivative
characteristics, including those whose market value is at least partially
determined by, among other things, levels of or changes in domestic and/or
foreign interest rates (short- or long-term), exchange rates, prepayment rates,
equity markets or credit ratings/spreads. The amortized cost and fair value of
these securities, included in the debt securities portfolio, as of December 31,
1999 was as follows:
<TABLE>
<CAPTION>
Amortized Fair
(Millions) Cost Value
- --------------------------------------------------------------------------------
<S> <C> <C>
Residential collateralized mortgage obligations $ 1,683.1 $ 1,670.5
Principal-only strips (included above) 9.2 9.7
Interest-only strips (included above) 10.7 14.6
Other structured securities with derivative
characteristics (1) 81.7 67.2
- --------------------------------------------------------------------------------
</TABLE>
(1) Represents non-leveraged instruments whose fair values and credit risk are
based on underlying securities, including fixed income securities and
interest rate swap agreements.
6. Net Investment Income
Sources of net investment income were as follows:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Debt securities $ 823.3 $ 798.8 $ 814.6
Nonredeemable preferred stock 17.1 18.4 12.9
Investment in affiliated mutual funds 2.4 6.6 3.8
Mortgage loans 1.1 0.6 0.3
Policy loans 7.7 7.2 5.7
Reinsurance loan to affiliate -- 2.3 5.5
Cash equivalents 39.0 46.1 40.2
Other 15.3 13.2 16.1
- --------------------------------------------------------------------------------
Gross investment income 905.9 893.2 899.1
Less: investment expenses (19.6) (21.4) (17.4)
- --------------------------------------------------------------------------------
Net investment income $ 886.3 $ 871.8 $ 881.7
================================================================================
</TABLE>
Net investment income includes amounts allocable to experience rated
contractholders of $659.6 million, $655.6 million and $673.8 million for the
years ended December 31, 1999, 1998 and 1997, respectively. Interest credited
to contractholders is included in current and future benefits.
F-19
<PAGE>
Notes to Consolidated Financial Statements (continued)
7. Dividend Restrictions and Shareholder's Equity
The Company paid $255.0 million, $570.0 million and $34.3 million in cash
dividends to HOLDCO in 1999,1998 and 1997, respectively. Of the $255.0 million
paid in 1999, $206 million was accrued for in 1998. Of the $776.0 million
dividends paid or accrued in 1998, $756.0 million (all of which was approved by
the Insurance Commissioner of the State of Connecticut) was attributable to
proceeds from the sale of the domestic individual life insurance business.
The Department recognizes as net income and shareholder's capital and surplus
those amounts determined in conformity with statutory accounting practices
prescribed or permitted by the Department, which differ in certain respects
from generally accepted accounting principles. Statutory net income was $133.9
million, $148.1 million and $80.5 million for the years ended December 31,
1999, 1998 and 1997, respectively. Statutory capital and surplus was $845.2
million and $773.0 million as of December 31, 1999 and 1998, respectively.
As of December 31, 1999, the Company does not utilize any statutory accounting
practices which are not prescribed by state regulatory authorities that,
individually or in the aggregate, materially affect statutory capital and
surplus.
8. Capital Gains and Losses on Investment Operations
Realized capital gains or losses are the difference between the carrying value
and sale proceeds of specific investments sold.
Net realized capital (losses) gains on investments were as follows:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- ----------------------------------------------------------------------------------
<S> <C> <C> <C>
Debt securities $ (23.6) $ 7.4 $ 21.1
Equity securities 2.1 3.0 8.6
- ----------------------------------------------------------------------------------
Pretax realized capital (losses) gains $ (21.5) $ 10.4 $ 29.7
==================================================================================
After-tax realized capital (losses) gains $ (14.0) $ 7.3 $ 19.2
==================================================================================
</TABLE>
Net realized capital (losses) gains of $(36.7) million, $15.0 million and $83.7
million for 1999, 1998 and 1997, respectively, allocable to experience rated
contracts, were deducted from net realized capital gains and an offsetting
amount was reflected in Policyholders' funds left with the Company. Net
unamortized gains allocable to experienced-rated contractholders were $68.5
million and $118.6 million at December 31, 1999 and 1998, respectively.
F-20
<PAGE>
Notes to Consolidated Financial Statements (continued)
8. Capital Gains and Losses on Investment Operations (continued)
Proceeds from the sale of available-for-sale debt securities and the related
gross gains and losses were as follows:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- ------------------------------------------------------------------
<S> <C> <C> <C>
Proceeds on sales $ 5,890.1 $ 6,790.2 $ 5,311.3
Gross gains 10.5 98.8 23.8
Gross losses 34.1 91.4 2.7
- ------------------------------------------------------------------
</TABLE>
Changes in shareholder's equity related to changes in accumulated other
comprehensive income (unrealized capital gains and losses on securities,
excluding those related to experience-rated contractholders) were as follows:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- -------------------------------------------------------------------------------------
<S> <C> <C> <C>
Debt securities $ (199.2) $ 18.9 $ 44.3
Equity securities (3.4) (16.1) 5.6
Other (27.6) 15.4 --
- -------------------------------------------------------------------------------------
Subtotal (230.2) 18.2 49.9
(Decrease) increase in deferred income taxes
(Refer to note 9) (80.6) 6.3 17.5
- -------------------------------------------------------------------------------------
Net changes in accumulated other
comprehensive (loss) income $ (149.6) $ 11.9 $ 32.4
=====================================================================================
</TABLE>
Net unrealized capital (losses) gains allocable to experience-rated contracts
of $(189.7) and $355.8 million at December 31, 1999 and December 31, 1998
respectively, are reflected on the Consolidated Balance Sheets in
Policyholders' funds left with the Company and are not included in
shareholder's equity.
F-21
<PAGE>
Notes to Consolidated Financial Statements (continued)
8. Capital Gains and Losses on Investment Operations (continued)
Shareholder's equity included the following accumulated other comprehensive
(loss) income, which is net of amounts allocable to experience-rated
contractholders, at December 31:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- -----------------------------------------------------------------------------------
<S> <C> <C> <C>
Debt securities:
Gross unrealized capital gains $ 18.6 $ 157.3 $ 140.6
Gross unrealized capital losses (76.7) (16.2) (18.4)
- -----------------------------------------------------------------------------------
(58.1) 141.1 122.2
- -----------------------------------------------------------------------------------
Equity securities:
Gross unrealized capital gains 12.5 13.1 21.2
Gross unrealized capital losses (10.9) (8.1) (0.1)
- -----------------------------------------------------------------------------------
1.6 5.0 21.1
- -----------------------------------------------------------------------------------
Other:
Gross unrealized capital gains 1.3 17.1 --
Gross unrealized capital losses (13.7) (1.8) --
- -----------------------------------------------------------------------------------
(12.4) 15.3 --
- -----------------------------------------------------------------------------------
Deferred income taxes (Refer to note 9) (24.1) 56.6 50.4
- -----------------------------------------------------------------------------------
Net accumulated other comprehensive (loss)
income $ (44.8) $ 104.8 $ 92.9
===================================================================================
</TABLE>
Changes in accumulated other comprehensive income related to changes in
unrealized gains (losses) on securities (excluding those related to
experience-rated contractholders) were as follows:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Unrealized holding (losses) gains arising
during the year (1) $ (146.3) $ 38.3 $ 99.2
Less: reclassification adjustment for gains and
other items included in net income (2) 3.3 26.4 66.8
========================================================================================
Net unrealized (losses) gains on securities $ (149.6) $ 11.9 $ 32.4
========================================================================================
</TABLE>
(1) Pretax unrealized holding (losses) gains arising during the year were
$(225.2) million, $58.8 million and $152.7 million for 1999, 1998 and
1997, respectively.
(2) Pretax reclassification adjustments for gains and other items included in
net income were $5.0 million, $40.6 million and $102.8 million for 1999,
1998 and 1997, respectively.
F-22
<PAGE>
Notes to Consolidated Financial Statements (continued)
9. Income Taxes
The Company is included in the consolidated federal income tax return, the
combined New York return, and Illinois unitary state income tax return of
Aetna. Aetna allocates to each member, as permitted under a tax sharing
arrangement, an amount approximating the tax it would have incurred were it not
a member of the consolidated group, and credits the member for the use of its
tax saving attributes in the consolidated federal income tax return.
Income taxes from continuing operations consist of the following:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- -----------------------------------------------------------------------------
<S> <C> <C> <C>
Current taxes (benefits):
Federal $ 63.8 $ 257.4 $ 40.0
State 2.5 3.0 3.3
Net realized capital (losses) gains (20.1) 16.8 39.1
- -----------------------------------------------------------------------------
46.2 277.2 82.4
- -----------------------------------------------------------------------------
Deferred taxes (benefits):
Federal 31.3 (196.7) 14.3
Net realized capital gains (losses) 12.6 (13.9) (28.3)
- -----------------------------------------------------------------------------
43.9 (210.6) (14.0)
- -----------------------------------------------------------------------------
Total $ 90.1 $ 66.6 $ 68.4
=============================================================================
</TABLE>
Income taxes were different from the amount computed by applying the federal
income tax rate to income from continuing operations before income taxes for
the following reasons:
<TABLE>
<CAPTION>
(Millions) 1999 1998 1997
- ------------------------------------------------------------------------------------
<S> <C> <C> <C>
Income from continuing operations before
income taxes $ 271.3 $ 238.7 $ 236.3
Tax rate 35% 35% 35%
- ------------------------------------------------------------------------------------
Application of the tax rate 95.0 83.5 82.7
Tax effect of:
State income tax, net of federal benefit 1.6 2.0 2.1
Excludable dividends (6.1) (17.1) (15.6)
Other, net (0.4) (1.8) (0.8)
- ------------------------------------------------------------------------------------
Income taxes $ 90.1 $ 66.6 $ 68.4
=====================================================================================
</TABLE>
F-23
<PAGE>
Notes to Consolidated Financial Statements (continued)
9. Income Taxes (continued)
The tax effects of temporary differences that give rise to deferred tax assets
and deferred tax liabilities at December 31 are presented below:
<TABLE>
<CAPTION>
(Millions) 1999 1998
- ---------------------------------------------------------------------------------------
<S> <C> <C>
Deferred tax assets:
Insurance reserves $ 323.1 $ 324.1
Unrealized gains allocable to experience rated contracts -- 124.5
Net unrealized capital losses 90.5 --
Investment losses 1.3 --
Postretirement benefits other than pensions 24.8 27.6
Deferred compensation 42.5 37.3
Sale of individual life 44.9 48.9
Other 20.2 20.4
- ---------------------------------------------------------------------------------------
Total gross assets 547.3 582.8
- ---------------------------------------------------------------------------------------
Deferred tax liabilities:
Deferred policy acquisition costs 324.0 282.9
Market discount 6.5 4.5
Net unrealized capital gains -- 181.1
Unrealized losses allocable to experience rated contracts 66.4 --
- ---------------------------------------------------------------------------------------
Total gross liabilities 396.9 468.5
- ---------------------------------------------------------------------------------------
Net deferred tax asset $ 150.4 $ 114.3
=======================================================================================
</TABLE>
Net unrealized capital gains and losses are presented in shareholder's equity
net of deferred taxes.
Management believes that it is more likely than not that the Company will
realize the benefit of the net deferred tax asset. The Company expects
sufficient taxable income in the future to realize the net deferred tax asset
because of the Company's long-term history of having taxable income, which is
projected to continue.
The "Policyholders' Surplus Account," which arose under prior tax law, is
generally that portion of a life insurance company's statutory income that has
not been subject to taxation. As of December 31, 1983, no further additions
could be made to the Policyholders' Surplus Account for tax return purposes
under the Deficit Reduction Act of 1984. The balance in such account was
approximately $17.2 million at December 31, 1999. This amount would be taxed
only under certain conditions. No income taxes have been provided on this
amount since management believes under current tax law the conditions under
which such taxes would become payable are remote.
The Internal Revenue Service (the "Service") has completed examinations of the
consolidated federal income tax returns of Aetna through 1994. Discussions are
being held with the Service with respect to proposed adjustments. Management
believes there are adequate defenses against, or sufficient reserves to provide
for, any such adjustments. The Service has commenced its examinations for the
years 1995 through 1997.
F-24
<PAGE>
Notes to Consolidated Financial Statements (continued)
10. Benefit Plans
Aetna has noncontributory defined benefit pension plans covering substantially
all employees. Aetna's accrued pension cost has been allocated to its
subsidiaries, including the Company, under an allocation based on eligible
salaries. Data on a separate company basis regarding the proportionate share of
the projected benefit obligation and plan assets is not available. The
accumulated benefit obligation and plan assets are recorded by Aetna. As of the
measurement date (September 30), fair value of plan assets exceed projected
benefit obligations. Allocated pretax charges to operations for the pension
plan (based on the Company's total salary cost as a percentage of Aetna's total
salary cost) were $6.6 million and $3.0 million for the years ended December
31, 1999 and 1997, respectively. There were no charges in 1998 due to favorable
plan asset performance.
Effective January 1, 1999, the Company, in conjunction with Aetna, changed the
formula from the previous final average pay formula to a cash balance formula,
which will credit employees annually with an amount equal to a percentage of
eligible pay based on age and years of service as well as an interest credit
based on individual account balances. The formula also provides for a
transition period until December 1, 2006, which allows certain employees to
receive vested benefits at the higher of the final average pay or cash balance
formula. The changing of this formula did not have a material effect on the
Company's results of operations, liquidity or financial condition.
In addition to providing pension benefits, Aetna currently provides certain
health care and life insurance benefits for retired employees. A comprehensive
medical and dental plan is offered to all full-time employees retiring at age
45 with 10 years of service. The company provides subsidized benefits to
employees whose sum of age and service is at least equal to 65. There is a cap
on the portion of the cost paid by the Company relating to medical and dental
benefits. The costs to the Company associated with the Aetna postretirement
plans for 1999, 1998 and 1997 were $2.1 million, $1.0 million and $2.4 million,
respectively.
The Company, in conjunction with Aetna, has a non-qualified pension plan
covering certain agents. The plan provides pension benefits based on annual
commission earnings. As of the measurement date (September 30), accumulated
benefit obligations exceeded fair value of plan assets.
The Company, in conjunction with Aetna, also provides certain postretirement
health care and life insurance benefits for certain agents. The costs to the
Company associated with the agents' postretirement plans for 1999, 1998 and
1997 were $2.1 million, $1.4 million and $0.6 million, respectively.
Incentive Savings Plan--Substantially all employees are eligible to participate
in a savings plan under which designated contributions, which may be invested
in common stock of Aetna or certain other investments, are matched, up to 5% of
compensation, by Aetna. Pretax charges to operations for the incentive savings
plan were $7.7 million, $5.3 million and $5.0 million in 1999, 1998 and 1997,
respectively.
Stock Plans--Aetna has a stock incentive plan that provides for stock options,
deferred contingent common stock or equivalent cash awards or restricted stock
to employees. Executive, middle
F-25
<PAGE>
Notes to Consolidated Financial Statements (continued)
10. Benefit Plans (continued)
management and non-management employees may be granted options to purchase
common stock of Aetna at or above the market price on the date of grant.
Options generally become 100% vested three years after the grant is made, with
one-third of the options vesting each year. Aetna does not recognize
compensation expense for stock options granted at or above the market price on
the date of grant under its stock incentive plans. In addition, executives may,
from time to time, be granted incentive units which are rights to receive
common stock or an equivalent value in cash. The incentive units may vest
within a range from 0% to 175% at the end of a four year period based on the
attainment of performance goals. The costs to the Company associated with the
Aetna stock plans for 1999, 1998 and 1997, were $0.4 million, $4.2 million and
$2.9 million, respectively.
11. Related Party Transactions
Investment Advisory and Other Fees
The Company serves as investment advisor to the Aetna managed mutual funds and
variable funds (collectively, the Funds). Under the advisory agreements, the
Funds pay the Company a daily fee which, on an annual basis, ranged, depending
on the fund, from 0.25% to 0.95% of their average daily net assets. The Company
is also compensated by the Separate Accounts (variable funds) for bearing
mortality and expense risks pertaining to variable life and annuity contracts.
Under the insurance and annuity contracts, the Separate Accounts pay the
Company a daily fee which, on an annual basis is, depending on the product, up
to 2.15% of their average daily net assets. The amount of compensation and fees
received from the Funds and Separate Accounts, included in charges assessed
against policyholders and other income, amounted to $424.2 million, $349.0
million and $271.2 million in 1999, 1998 and 1997, respectively.
Reinsurance Transactions
Effective December 31, 1988, the Company entered into a modified coinsurance
reinsurance agreement ("MODCO") with Aetna Life Insurance Company ("Aetna
Life"), an affiliate company, in which substantially all of the
non-participating individual life and annuity business written by Aetna Life
prior to 1981 was assumed by the Company. Effective January 1, 1997, this
agreement was amended to transition (based on underlying investment rollover in
Aetna Life) from a modified coinsurance arrangement to a coinsurance agreement.
As a result of this change, reserves were ceded to the Company from Aetna Life
as investment rollover occurred. Effective October 1, 1998, this agreement was
fully transitioned to a coinsurance arrangement and this business along with
the Company's direct individual non-participation life insurance business was
sold to Lincoln. (Refer to note 3).
The operating results of the domestic individual life business are presented as
Discontinued Operations. Premiums of $17.9 million, $336.3 million and $176.7
million and current and future benefits of $8.6 million, $341.1 million and
$183.9 million, were assumed in 1999, 1998 and 1997, respectively. Investment
income of $17.0 million and $37.5 million was generated from a reinsurance loan
to affiliate for the years ended December 31, 1998 and 1997, respectively.
Prior to the sale of the domestic individual life insurance business to Lincoln
on October 1, 1998, the Company's retention limit per individual life was $2.0
million and amounts in excess of this
F-26
<PAGE>
Notes to Consolidated Financial Statements (continued)
11. Related Party Transactions (continued)
limit, up to a maximum of $8.0 million on any new individual life business was
reinsured with Aetna Life on a yearly renewable term basis. Premium amounts
related to this agreement were $2.0 million and $5.9 million for 1998 and 1997,
respectively. This agreement was terminated effective October 1, 1998.
Effective October 1, 1997, the Company entered into a reinsurance agreement
with Aetna Life to assume amounts in excess of $0.2 million for certain of its
participating life insurance, on a yearly renewable term basis. Premium amounts
related to this agreement were $4.4 million in1998. The business assumed under
this agreement was retroceded to Lincoln effective October 1, 1998.
On December 16, 1988, the Company assumed $25.0 million of premium revenue from
Aetna Life for the purchase and administration of a life contingent single
premium variable payout annuity contract. In addition, the Company is also
responsible for administering fixed annuity payments that are made to
annuitants receiving variable payments. Reserves of $115.3 million and $87.8
million were maintained for this contract as of December 31, 1999 and 1998,
respectively.
Capital Transactions
The Company received no capital contributions in 1999. In 1998, the Company
received a capital contribution of $9.3 million in cash from HOLDCO. In 1997,
the Company returned capital of $5.0 million to HOLDCO.
Refer to note 7 for dividends paid to HOLDCO.
Other
Premiums due and other receivables include $10.5 million and $1.6 million due
from affiliates in 1999 and 1998, respectively. Other liabilities include $1.9
million and $2.2 million due to affiliates for 1999 and 1998, respectively.
Aetna transferred to the Company $0.8 million, $1.7 million and $3.8 million
based on its decision not to settle state tax liabilities for the years 1999,
1998 and 1997, respectively, as permitted under the tax sharing arrangement,
which is reported in other changes in retained earnings.
Substantially all of the administrative and support functions of the Company
are provided by Aetna and its affiliates. The financial statements reflect
allocated charges for these services based upon measures appropriate for the
type and nature of service provided.
12. Reinsurance
On October 1, 1998, the Company sold its domestic individual life insurance
business to Lincoln for $1 billion in cash. The transaction is generally in the
form of an indemnity reinsurance arrangement, under which Lincoln contractually
assumed from the Company certain policyholder liabilities and obligations,
although the Company remains directly obligated to policyholders. (Refer to
note 3)
F-27
<PAGE>
Notes to Consolidated Financial Statements (continued)
12. Reinsurance (continued)
Effective January 1, 1998, 90% of the mortality risk on substantially all
individual universal life product business written from June 1, 1991 through
October 31, 1997 was reinsured externally. Beginning November 1, 1997, 90% of
new business written on these products was reinsured externally. Effective
October 1, 1998 this agreement was assigned from the third party reinsurer to
Lincoln.
The following table includes premium amounts ceded/assumed as discussed in note
11.
<TABLE>
<CAPTION>
Ceded to Assumed
Direct Other from Other Net
(Millions) Amount Companies Companies Amount
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1999
----
Premiums:
Discontinued Operations $ 460.1 $ 478.0 $ 17.9 $ --
Accident and Health Insurance 33.4 33.4 -- --
Annuities 111.5 4.9 .9 107.5
- ---------------------------------------------------------------------------------------
Total earned premiums $ 605.0 $ 516.3 $ 18.8 $ 107.5
=======================================================================================
1998
----
Premiums:
Discontinued Operations $ 166.8 $ 165.4 $ 340.6 $ 342.0
Accident and Health Insurance 16.3 16.3 -- --
Annuities 80.8 2.9 1.5 79.4
- ---------------------------------------------------------------------------------------
Total earned premiums $ 263.9 $ 184.6 $ 342.1 $ 421.4
=======================================================================================
1997
----
Premiums:
Discontinued Operations $ 35.7 $ 15.1 $ 177.4 $ 198.0
Accident and Health Insurance 5.6 5.6 -- --
Annuities 67.9 -- 1.2 69.1
- ---------------------------------------------------------------------------------------
Total earned premiums $ 109.2 $ 20.7 $ 178.6 $ 267.1
=======================================================================================
</TABLE>
F-28
<PAGE>
Notes to Consolidated Financial Statements (continued)
13. Segment Information
Summarized financial information for the Company's principal operations was as
follows:
<TABLE>
<CAPTION>
Investment
Year ended December 31, Financial Management Discontinued
1999 (Millions) Products (1) Services (1) Operations (1) Other (1) Total
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenue from external
customers $ 551.1 $ 118.3 -- $ (43.9) $ 625.5
Net investment income 881.5 1.5 -- 3.3 886.3
- ---------------------------------------------------------------------------------------------------------
Total revenue excluding net
realized capital losses $ 1,432.6 $ 119.8 -- $ (40.6) $ 1,511.8
=========================================================================================================
Amortization of deferred policy
acquisition costs $ 93.4 $ 11.5 $ 104.9
- ---------------------------------------------------------------------------------------------------------
Income taxes (benefits) $ 87.0 $ 16.5 $ (13.4) $ 90.1
- ---------------------------------------------------------------------------------------------------------
Operating earnings (losses) (2) $ 192.1 $ 28.1 -- $ (7.5) $ 212.7
Other item (3) -- -- (17.5) (17.5)
Net realized capital losses,
net of tax (14.0) -- -- (14.0)
- ---------------------------------------------------------------------------------------------------------
Income (loss) from continuing
operations 178.1 28.1 -- (25.0) 181.2
Discontinued operations,
net of tax:
Amortization of deferred
gain on sale -- $ 5.7 -- 5.7
- ---------------------------------------------------------------------------------------------------------
Net income (loss) $ 178.1 $ 28.1 $ 5.7 $ (25.0) $ 186.9
=========================================================================================================
Segment assets $ 53,324.4 $ 73.2 $ 2,989.0 $ 56,386.6
- ---------------------------------------------------------------------------------------------------------
Expenditures for long-lived
assets (4) -- -- -- $ 5.7 $ 5.7
- ---------------------------------------------------------------------------------------------------------
Balance of long-lived assets -- -- -- $ 16.5 $ 16.5
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1) Financial Products include: deferred and immediate annuity contracts,
mutual funds, programs offered to qualified plans and nonqualified
deferred compensation plans that package administrative and recordkeeping
services along with a menu of investment options, investment advisory
services and pension plan administrative services. Investment Management
Services include the following services: investment advisory to affiliated
and unaffiliated institutional and retail clients, underwriting,
distribution for Company products and trustee, administrative and other
fiduciary services to retirement plans. (Refer to notes 1 and 2.)
Discontinued operations include life insurance products. (Refer to note
3.) Other includes consolidating adjustments and Year 2000 costs.
(2) Operating earnings is comprised of net income (loss) excluding net
realized capital gains and losses and any other items. While operating
earnings is the measure of profit or loss used by the Company's management
when assessing performance or making operating decisions, it does not
replace operating income or net income as a measure of profitability.
(3) Other item excluded from operating earnings represents after-tax Year 2000
costs of $17.5 million
(4) Expenditures of long-lived assets represents additions to property and
equipment not allocable to business segments.
F-29
<PAGE>
Notes to Consolidated Financial Statements (continued)
13. Segment Information (continued)
<TABLE>
<CAPTION>
Investment
Year ended December 31, Financial Management Discontinued
1998 (Millions) Products (1) Services (1) Operations (1) Other (1) Total
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenue from external
customers $ 445.6 $ 96.7 -- $ (38.4) $ 503.9
Net investment income 865.3 1.5 -- 5.0 871.8
- --------------------------------------------------------------------------------------------------------
Total revenue excluding net
realized capital gains $ 1,310.9 $ 98.2 -- $ (33.4) $ 1,375.7
========================================================================================================
Amortization of deferred policy
acquisition costs $ 80.3 -- -- $ 10.9 $ 91.2
- --------------------------------------------------------------------------------------------------------
Income Taxes (benefits) $ 67.7 $ 14.7 -- $ (15.8) $ 66.6
- --------------------------------- ---------- ------- -- ------- ----------
Operating earnings (2) $ 170.3 $ 24.0 -- $ (7.1) $ 187.2
Other item (3) -- -- -- (22.4) (22.4)
Net realized capital gains,
net of tax 7.3 -- -- -- 7.3
- --------------------------------------------------------------------------------------------------------
Income from continuing
operations 177.6 24.0 -- (29.5) 172.1
Discontinued operations,
net of tax:
Income from operations -- -- $ 61.8 -- 61.8
Immediate gain on sale -- -- 59.0 -- 59.0
- --------------------------------------------------------------------------------------------------------
Net income (loss) $ 177.6 $ 24.0 $ 120.8 $ (29.5) $ 292.9
========================================================================================================
Segment assets $ 44,366.4 $ 13.4 $ 2,946.4 $ 47,326.2
- --------------------------------------------------------------------------------------------------------
Expenditures for long-lived
assets (4) -- -- -- $ 9.0 $ 9.0
- --------------------------------------------------------------------------------------------------------
Balance of long-lived assets $ 14.8 $ 14.8
- --------------------------------------------------------------------------------------------------------
</TABLE>
(1) Financial products include: deferred and immediate annuity contracts,
mutual funds, programs offered to qualified plans and nonqualified
deferred compensation plans that package administrative and recordkeeping
services along with a menu of investment options, investment advisory
services and pension plan administrative services. Investment Management
Services include the following services: investment advisory to affiliated
and unaffiliated institutional and retail clients, underwriting,
distribution for Company products and trustee, administrative and other
fiduciary services to retirement plans. (Refer to notes 1 and 2.)
Discontinued operations include life insurance products. (Refer to note
3.) Other includes consolidating adjustments and Year 2000 costs.
(2) Operating earnings is comprised of net income (loss) excluding net
realized capital gains and losses and any other items. While operating
earnings is the measure of profit or loss used by the Company's management
when assessing performance or making operating decisions, it does not
replace operating income or net income as a measure of profitability.
(3) Other item excluded from operating earnings represents after-tax Year 2000
costs of $22.4 million
(4) Expenditures of long-lived assets represents additions to property and
equipment not allocable to business segments.
F-30
<PAGE>
Notes to Consolidated Financial Statements (continued)
13. Segment Information (continued)
<TABLE>
<CAPTION>
Investment
Year ended December 31, Financial Management Discontinued
1997 (Millions) Products (1) Services (1) Operations (1) Other (1) Total
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Revenue from external
customers $ 371.5 $80.3 -- $(23.9) $ 427.9
Net investment income 876.7 1.4 -- 3.6 881.7
- --------------------------------------------------------------------------------------------------------
Total revenue excluding net
realized capital gains $ 1,248.2 $81.7 -- $(20.3) $ 1,309.6
========================================================================================================
Amortization of deferred policy
acquisition costs $ 57.2 -- -- $ 9.1 $ 66.3
- --------------------------------------------------------------------------------------------------------
Income Taxes (benefits) $ 59.7 $11.9 -- $ (3.2) $ 68.4
- --------------------------------------------------------------------------------------------------------
Operating earnings (2) $ 134.9 $19.7 -- $ (5.9) $ 148.7
Net realized capital gains,
net of tax 19.2 -- -- -- 19.2
- --------------------------------------------------------------------------------------------------------
Income from continuing
operations 154.1 $19.7 -- (5.9) 167.9
Discontinued operations,
net of tax:
Income from operations -- -- $ 67.8 -- 67.8
Deferred gain on sale -- -- -- -- --
- --------------------------------------------------------------------------------------------------------
Net income (loss) $ 154.1 $19.7 $ 67.8 $ (5.9) $ 235.7
========================================================================================================
Segment assets $ 36,379.5 $17.9 $ 3,792.5 -- $ 40,189.9
- --------------------------------------------------------------------------------------------------------
Expenditures for long-lived
assets (3) -- -- -- $ 10.0 $ 10.0
- --------------------------------------------------------------------------------------------------------
Balance of long-lived assets $ 12.7 $ 12.7
- --------------------------------------------------------------------------------------------------------
</TABLE>
(1) Financial products include: deferred and immediate annuity contracts,
mutual funds, programs offered to qualified plans and nonqualified
deferred compensation plans that package administrative and recordkeeping
services along with a menu of investment options, investment advisory
services and pension plan administrative services. Investment Management
Services include the following services: investment advisory to affiliated
and unaffiliated institutional and retail clients, underwriting,
distribution for Company products and trustee, administrative and other
fiduciary services to retirement plans. (Refer to notes 1 and 2.)
Discontinued operations include life insurance products. (Refer to note
3.) Other includes consolidating adjustments and Year 2000 costs.
(2) Operating earnings is comprised of net income (loss) excluding net
realized capital gains and losses and any other items. While operating
earnings is the measure of profit or loss used by the Company's management
when assessing performance or making operating decisions, it does not
replace operating income or net income as a measure of profitability.
(3) Expenditures of long-lived assets represents additions to property and
equipment not allocable to business segments.
F-31
<PAGE>
Notes to Consolidated Financial Statements (continued)
14. Commitments and Contingent Liabilities
Commitments
Through the normal course of investment operations, the Company commits to
either purchase or sell securities or money market instruments at a specified
future date and at a specified price or yield. The inability of counterparties
to honor these commitments may result in either higher or lower replacement
cost. Also, there is likely to be a change in the value of the securities
underlying the commitments. At December 31,1998, the Company had off-balance
sheet commitments to purchase investments of $68.7 million with an estimated
fair value of $68.9 million. At December 31, 1999, there were no off-balance
sheet commitments.
Litigation
The Company is involved in numerous lawsuits arising, for the most part, in the
ordinary course of its business operations. While the ultimate outcome of
litigation against the Company cannot be determined at this time, after
consideration of the defenses available to the Company and any related reserves
established, it is not expected to result in liability for amounts material to
the financial condition of the Company, although it may adversely affect
results of operations in future periods.
F-32
<PAGE>
Form No. SAI.01107-00 ALIAC Ed. May 2000
<PAGE>
VARIABLE ANNUITY ACCOUNT C
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Included in Part A:
Condensed Financial Information
(2) Included in Part B:
Financial Statements of Variable Annuity Account C:
- Statement of Assets and Liabilities as of December 31, 1999
- Statement of Operations for the year ended December 31, 1999
- Statements of Changes in Net Assets for the years ended
December 31, 1999 and 1998
- Condensed Financial Information for the year ended December 31,
1999
- Notes to Financial Statements
- Independent Auditors' Report
Financial Statements of the Depositor:
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended December
31, 1999, 1998 and 1997
- Consolidated Balance Sheets as of December 31, 1999 and 1998
- Consolidated Statements of Changes in Shareholder's Equity for
the years ended December 31, 1999, 1998 and 1997
- Consolidated Statements of Cash Flows for the years ended
December 31, 1999, 1998 and 1997
- Notes to Consolidated Financial Statements
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna Life Insurance and
Annuity Company establishing Variable Annuity Account C(1)
(2) Not applicable
(3.1) Broker-Dealer Agreement(2)
(3.2) Alternative Form of Wholesaling Agreement and Related Selling
Agreement(3)
(4.1) Variable Annuity Contract (G-CDA(12/99))(4)
(4.2) Variable Annuity Contract Certificate (C-CDA(12/99))(4)
(4.3) Endorsement (E-MMLOAN(12/99)) to Contract G-CDA(12/99) and
Contract Certificate C-CDA(12/99)(4)
(4.4) Endorsement (E-MMFPEX-99R) to Contract G-CDA(12/99) and Contract
Certificate C-CDA(12/99)(4)
(4.5) Endorsement (E-MMGDB(12/99)) to Contract G-CDA(12/99) and Contract
Certificate C-CDA(12/99)(4)
(4.6) Endorsement (E-MMLSWC(12/99)) to Contract G-CDA(12/99) and
Contract Certificate C-CDA(12/99)(4)
<PAGE>
(4.7) Endorsement (E-MMTC(12/99)) to Contract G-CDA(12/99) and Contract
Certificate C-CDA(12/99)(4)
(4.8) Variable Annuity Contract (G-CDA-99(NY))(4)
(4.9) Variable Annuity Contract Certificate (C-CDA-99(NY))(4)
(4.10) Endorsement (E-MMGDB-99(NY)) to Contract G-CDA-99(NY) and Contract
Certificate C-CDA-99(NY)(4)
(4.11) Endorsement (E-MMLOAN-99(NY)) to Contract G-CDA-99(NY) and
Contract Certificate C-CDA-99(NY)(4)
(4.12) Variable Annuity Contract (G-CDA(99))(4)
(4.13) Variable Annuity Contract Certificate (C-CDA(99))(4)
(4.14) Group Combination Annuity Contract (Nonparticipating)
(A001RP95)(5)
(4.15) Group Combination Annuity Certificate (Nonparticipating)
(A007RC95)(5)
(4.16) Group Combination Annuity Contract (Nonparticipating)
(A020RV95)(5)
(4.17) Group Combination Annuity Certificate (Nonparticipating)
(A027RV95)(5)
(4.18) Variable Annuity Contract (G-CDA-IA(RP))(3)
(4.19) Variable Annuity Contract Certificate (GTCC-IA(RP))(6)
(4.20) Variable Annuity Contract (G-CDA-IA(RPM/XC))(3)
(4.21) Variable Annuity Contract (G-CDA-HF)(7)
(4.22) Variable Annuity Contract Certificate (GTCC-HF)(8)
(4.23) Variable Annuity Contract Certificate (GDCC-HF)(4)
(4.24) Variable Annuity Contract (G-CDA-HD)(9)
(4.25) Variable Annuity Contract Certificate (GTCC-HD)(6)
(4.26) Variable Annuity Contract Certificate (GDCC-HD)(4)
(4.27) Variable Annuity Contract (GID-CDA-HO)(10)
(4.28) Variable Annuity Contract (GLID-CDA-HO)(10)
(4.29) Variable Annuity Contract (GSD-CDA-HO)(10)
(4.30) Variable Annuity Contract (G-CDA-HD(XC))(4)
(4.31) Variable Annuity Contract Certificate (GDCC-HO)(4)
(4.32) Variable Annuity Contract Certificate (GDCC-HD(XC))(4)
(4.33) Variable Annuity Contract Certificate (GTCC-HD(XC))(4)
(4.34) Variable Annuity Contract Certificate (GTCC-HO)(4)
(4.35) Variable Annuity Contract Certificate (GTCC-96(ORP))(4)
(4.36) Variable Annuity Contract (G-CDA-96(ORP))(4)
(4.37) Variable Annuity Contract Certificate (GTCC-96(TORP))(4)
(4.38) Variable Annuity Contract Certificate (GTCC-IB(ATORP))(4)
(4.39) Variable Annuity Contract Certificate (GTCC-IB(AORP))(4)
(4.40) Variable Annuity Contract (GST-CDA-HO)(11)
(4.41) Variable Annuity Contract (I-CDA-HD)(11)
(4.42) Variable Annuity Contract (G-CDA-IB(ATORP))(12)
<PAGE>
(4.43) Variable Annuity Contract (G-CDA-95(TORP)) and Contract
Certificate (GTCC-95(TORP))(12)
(4.44) Variable Annuity Contract (G-CDA-IB(AORP))(12)
(4.45) Variable Annuity Contract (G-CDA-95(ORP)) and Contract Certificate
(GTCC-95(ORP))(12)
(4.46) Variable Annuity Contracts (G-CDA-IB(ORP), (G-CDA-IB(TORP))(12)
(4.47) Variable Annuity Contract (G-CDA-96(TORP))(13)
(4.48) Variable Annuity Contract (IA-CDA-IA)(7)
(4.49) Variable Annuity Contract (GIT-CDA-HO)(11)
(4.50) Variable Annuity Contract (GLIT-CDA-HO)(11)
(4.51) Variable Annuity Contract (I-CDA-98(ORP))(7)
(4.52) Endorsement for Exchanged Contract (EINRP95) to Contract
A001RP95(5)
(4.53) Endorsement for Exchanged Contract (EINRV95) to Contract
A020RV95(5)
(4.54) Endorsement (GET 9/96) to Contracts A001RP95 and A020RV95(13)
(4.55) Endorsement (GET-1 (9/96)) to Contracts A001RP95 and A020RV95(14)
(4.56) Endorsement (E1OMNI97) to Contract A001RP95(15)
(4.57) Endorsement (E2OMNI97) to Contract A001RP95(15)
(4.58) Endorsement (E1FXPL97) to Contract A001RP95(15)
(4.59) Endorsement (E3FXPL97) to Contracts A001RP95 and A020RV95(7)
(4.60) Endorsement (EINRP97) to Contract A001RP95(7)
(4.61) Endorsement (EINRV97) to Contract A020RV95(7)
(4.62) Endorsement (E1PAY97) to Contracts A001RP95 and A020RV95(7)
(4.63) Endorsement (E4OMNI98) to Contracts A001RP95 and A020RV95(16)
(4.64) Endorsement (EINRV98) to Contract A020RV95(7)
(4.65) Endorsement (EINRP98) to Contract A001RP95(7)
(4.66) Endorsement (EGET-IC(R)) to Contracts G-CDA-IA(RP), G-CDA-HF,
G-CDA-IB(ATORP), G-CDA-IB(AORP) and G-CDA-HD(3)
(4.67) Endorsement (EGETE-IC(R)) to Contracts G-CDA-IA(RPM/XC) and
GLID-CDA-HO(17)
(4.68) Endorsement (EGHDHFRPSDO97) to Contracts G-CDA-HF, G-CDA-HD and
G-CDA-IA(RP)(18)
(4.69) Endorsement (EG403-GIE-98) to Contracts G-CDA-HF, G-CDA-HD,
G-CDA-IA(RP), A001RP95, A020RV95 and Contract Certificates
GTCC-HF, GTCC-HD, GTCC-IA(RP), A007RC95 and A027RV95(19)
(4.70) Endorsement (EG403-GIHC-98) to Contracts G-CDA-IA(RP), A001RP95
and A020RV95 and Contract Certificates GTCC-IA(RP), A007RC95 and
A027RV95(19)
(4.71) Endorsement (EG403-GI-98) to Contract G-CDA-HF and Contract
Certificate GTCC-HF(20)
(4.72) Endorsement (EFUND97) to Contracts GID-CDA-HO, GLID-CDA-HO,
GSD-CDA-HO, and GST-CDA-HO(7)
<PAGE>
(4.73) Endorsement (E98-G-CDA-HF/HD) to Contracts G-CDA-HF and G-CDA-HD
and Contract Certificates GTCC-HD and GTCC-HF(21)
(4.74) Endorsement (E98-CDA-HO) to Contracts GLID-CDA-HO, GID-CDA-HO and
GSD-CDA-HO(21)
(4.75) Endorsement (E3KSDC96) to Variable Annuity Contract
GLID-CDA-HO(22)
(4.76) Endorsement (EMETHO96) to Variable Annuity Contract
GLID-CDA-HO(23)
(4.77) Endorsement (ENEMHF96) to Variable Annuity Contract G-CDA-HF(23)
(4.78) Endorsement (E2ME96) to Variable Annuity Contract GLID-CDA-HO(24)
(4.79) Endorsement (GET 9/96) to Variable Annuity Contracts
G-CDA-95(TORP) and G-CDA-95(ORP) and Contract Certificates
GTCC-95(TORP) and GTCC-95(ORP)(13)
(4.80) Endorsements (EIGET-IC(R)), (EIGF-IC) and (EGF-IC(SPD)) to
Contract IA-CDA-IA(25)
(4.81) Endorsement (EIHDIASDO) to Contracts I-CDA-HD and IA-CDA-IA(26)
(4.82) Endorsement (EHOSDO) to Contracts GIT-CDA-HO, GLIT-CDA-HO and
GST-CDA-HO(26)
(4.83) Endorsement (EHOTABLE97) to Contracts GIT-CDA-HO, GLIT-CDA-HO and
GST-CDA-HO(26)
(4.84) Endorsement (EI403-GI-98) to Contract IA-CDA-IA(7)
(4.85) Endorsement (E-MMGDB(99)) to Contract G-CDA(99) and Contract
Certificate C-CDA (99)(27)
(4.86) Endorsement (E-MMFPEX(99)) to Contract G-CDA(99) and Contract
Certificate C-CDA(99)(27)
(4.87) Endorsement (E-MMLOAN(99)) to Contract G-CDA(99) and Contract
Certificate C-CDA(99)(4)
(4.88) Endorsement (E-MMLSWC(99)) to Contract G-CDA(99) and Contract
Certificate C-CDA(99)(27)
(4.89) Endorsement (E-MMTC(5/99)) to Contract G-CDA(99) and Contract
Certificate C-CDA(99)(27)
(4.90) Endorsement (EGET-99) to Contracts A001RP95, A020RV95,
G-CDA-IA(RP), G-CDA-IA(RPM/XC), G-CDA-HF, G-CDA-HD, G-CDA-HD(X),
GID-CDA-HO, GLID-CDA-HO, GIT-CDA-HO, GLIT-CDA-HO, GSD-CDA-HO,
GST-CDA-HO, I-CDA-HD, I-CDA-HD(XC), G-CDA-IB(ATORP),
G,CDA-IB(TORP), G-CDA-IB(AORP), G-CDA-96(TORP), IA-CDA-IA, and
I-CDA-98(ORP) and Contract Certificates A007RC95, A027RV95,
GTCC-IA(RP), GTCC-IA(RPM/XC), GTCC-HF, GTCC-HD, GTCC-HD(XC), and
GDCC-HD(XC)(27)
(4.91) Variable Annuity Contract Schedule I (A001RP95(1/98))(7)
(4.92) Variable Annuity Contract Schedule I (A020RV95(1/98))(7)
(5.1) Variable Annuity Contract Application (300-MOP-96)(28)
(5.2) Variable Annuity Contract Application (300-GTD-IA)(29)
(5.3) Variable Annuity Contract Application (710.00.16H(11/97))(30)
<PAGE>
(5.4) Variable Annuity Contract Application (710.00.16H(NY)(11/97))(30)
(6.1) Certificate of Incorporation of Aetna Life Insurance and Annuity
Company(30)
(6.2) Amendment of Certificate of Incorporation of Aetna Life Insurance
and Annuity Company(11)
(6.3) By-Laws as amended September 17, 1997 of Aetna Life Insurance and
Annuity Company(31)
(7) Not applicable
(8.1) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and AIM dated June 30, 1998(32)
(8.2) Service Agreement between Aetna Life Insurance and Annuity Company
and AIM effective June 30, 1998(32)
(8.3) Fund Participation Agreement by and among Aetna Life Insurance and
Annuity Company and Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna GET Fund
on behalf of each of its series, Aetna Generation Portfolios, Inc.
on behalf of each of its series, Aetna Variable Portfolios, Inc.
on behalf of each of its series, and Aeltus Investment Management,
Inc. dated as of May 1, 1998(2)
(8.4) Amendment dated November 9, 1998 to Fund Participation Agreement
by and among Aetna Life Insurance and Annuity Company and Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of its
series, Aetna Variable Portfolios, Inc. on behalf of each of its
series, and Aeltus Investment Management, Inc. dated as of May 1,
1998(32)
(8.5) Second Amendment dated December 31, 1999 to Fund Participation
Agreement by and among Aetna Life Insurance and Annuity Company
and Aetna Variable Fund, Aetna Variable Encore Fund, Aetna Income
Shares, Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each
of its series, Aetna Generation Portfolios, Inc. on behalf of each
of its series, Aetna Variable Portfolios, Inc. on behalf of each
of its series, and Aeltus Investment Management, Inc. dated as of
May 1, 1998 and amended on November 9, 1998(4)
(8.6) Third Amendment dated February 11, 2000 to Fund Participation
Agreement by and among Aetna Life Insurance and Annuity Company
and Aetna Variable Fund, Aetna Variable Encore Fund, Aetna Income
Shares, Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each
of its series, Aetna Generation Portfolios, Inc. on behalf of each
of its series, Aetna Variable Portfolios, Inc. on behalf of each
of its series, and Aeltus Investment Management, Inc. dated as of
May 1, 1998 and amended on November 9, 1998 and December 31, 1999
(8.7) Fourth Amendment dated May 1, 2000 to Fund Participation Agreement
by and among Aetna Life Insurance and Annuity Company and Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of its
series, Aetna Variable Portfolios, Inc. on behalf of each of
<PAGE>
its series, and Aeltus Investment Management, Inc. dated as of May
1, 1998 and amended on November 9, 1998, December 31, 1999 and
February 11, 2000
(8.8) Service Agreement between Aeltus Investment Management, Inc. and
Aetna Life Insurance and Annuity Company in connection with the
sale of shares of Aetna Variable Fund, Aetna Variable Encore Fund,
Aetna Income Shares, Aetna Balanced VP, Inc., Aetna GET Fund on
behalf of each of its series, Aetna Generation Portfolios, Inc. on
behalf of each of its series, and Aetna Variable Portfolios, Inc.
on behalf of each of its series dated as of May 1, 1998(2)
(8.9) Amendment dated November 4, 1998 to Service Agreement between
Aeltus Investment Management, Inc. and Aetna Life Insurance and
Annuity Company in connection with the sale of shares of Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of its
series and Aetna Variable Portfolios, Inc. on behalf of each of
its series dated as of May 1, 1998(32)
(8.10) Second Amendment dated February 11, 2000 to Service Agreement
between Aeltus Investment Management, Inc. and Aetna Life
Insurance and Annuity Company in connection with the sale of
shares of Aetna Variable Fund, Aetna Variable Encore Fund, Aetna
Income Shares, Aetna Balanced VP, Inc., Aetna GET Fund on behalf
of each of its series, Aetna Generation Portfolios, Inc. on behalf
of each of its series and Aetna Variable Portfolios, Inc. on
behalf of each of its series dated as of May 1, 1998 and November
4, 1998
(8.11) Third Amendment dated May 1, 2000 to Service Agreement between
Aeltus Investment Management, Inc. and Aetna Life Insurance and
Annuity Company in connection with the sale of shares of Aetna
Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each of its
series and Aetna Variable Portfolios, Inc. on behalf of each of
its series dated as of May 1, 1998, November 4, 1998 and February
11, 2000
(8.12) Fund Participation Agreement among Calvert Responsibly Invested
Balanced Portfolio, Calvert Asset Management Company, Inc. and
Aetna Life Insurance and Annuity Company dated December 1,
1997(34)
(8.13) Service Agreement between Calvert Asset Management Company, Inc.
and Aetna Life Insurance and Annuity Company dated December 1,
1997(34)
(8.14) Form of Fund Participation Agreement dated as of May 1, 2000
between The Chapman Funds, Inc. and Aetna Life Insurance and
Annuity Company
(8.15) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996
and March 1, 1996(11)
(8.16) Fifth Amendment dated as of May 1, 1997 to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products
<PAGE>
Fund and Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1, 1996(35)
(8.17) Sixth Amendment dated November 6, 1997 to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996, March 1,
1996 and May 1, 1997(36)
(8.18) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996,
March 1, 1996, May 1, 1997 and November 6, 1997(2)
(8.19) Eighth Amendment dated December 1, 1999 to Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996, March 1,
1996, May 1, 1997, November 6, 1997 and May 1, 1998(4)
(8.20) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996
and March 1,1996(11)
(8.21) Fifth Amendment dated as of May 1, 1997 to the Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund II and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996 and March 1,
1996(35)
(8.22) Sixth Amendment dated as of January 20, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996,
March 1, 1996 and May 1, 1997(37)
(8.23) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and Annuity
Company, Variable Insurance Products Fund II and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996,
March 1, 1996, May 1, 1997 and January 20, 1998(2)
(8.24) Eighth Amendment dated December 1, 1999 to Fund Participation
Agreement between Aetna Life Insurance and Annuity Company,
Variable Insurance Products Fund II and Fidelity Distributors
Corporation dated February 1, 1994 and amended on December 15,
1994, February 1, 1995, May 1, 1995, January 1, 1996, March 1,
1996, May 1, 1997, January 20, 1998 and May 1, 1998(4)
<PAGE>
(8.25) Service Agreement between Aetna Life Insurance and Annuity Company
and Fidelity Investments Institutional Operations Company dated as
of November 1, 1995(24)
(8.26) Amendment dated January 1, 1997 to Service Agreement between Aetna
Life Insurance and Annuity Company and Fidelity Investments
Institutional Operations Company dated as of November 1, 1995(35)
(8.27) Service Contract between Fidelity Distributors Corporation and
Aetna Life Insurance and Annuity Company dated May 2, 1997(33)
(8.28) Fund Participation Agreement among Janus Aspen Series and Aetna
Life Insurance and Annuity Company and Janus Capital Corporation
dated December 8, 1997(23)
(8.29) Amendment dated October 12, 1998 to Fund Participation Agreement
among Janus Aspen Series and Aetna Life Insurance and Annuity
Company and Janus Capital Corporation dated December 8, 1997(33)
(8.30) Second Amendment dated December 1, 1999 to Fund Participation
Agreement among Janus Aspen Series and Aetna Life Insurance and
Annuity Company and Janus Capital Corporation dated December 8,
1997 and amended on October 12, 1998(4)
(8.31) Service Agreement between Janus Capital Corporation and Aetna Life
Insurance and Annuity Company dated December 8, 1997(38)
(8.32) Fund Participation Agreement dated May 11, 1994, between Janus
Capital Corporation and Aetna Life Insurance and Annuity
Company(4)
(8.33) Amendment dated January 2, 1995 to Fund Participation Agreement
dated May 11, 1994, between Janus Capital Corporation and Aetna
Life Insurance and Annuity Company(4)
(8.34) Amendment dated February 24, 1995 to Fund Participation Agreement
dated May 11, 1994, between Janus Capital Corporation and Aetna
Life Insurance and Annuity Company, as amended on January 2,
1995(4)
(8.35) Third Amendment dated May 1, 1995 to Fund Participation Agreement
dated May 11, 1994, between Janus Capital Corporation and Aetna
Life Insurance and Annuity Company, as amended on January 2, 1995
and February 24, 1995(4)
(8.36) Letter Agreement dated January 1,1996 to Fund Participation
Agreement dated May 11, 1994, between Janus Capital Corporation
and Aetna Life Insurance and Annuity Company, as amended on
January 2, 1995, February 24, 1995 and May 1, 1995(4)
(8.37) Letter Agreement dated February 18, 1999 to Fund Participation
Agreement dated May 11, 1994, between Janus Capital Corporation
and Aetna Life Insurance and Annuity Company, as amended on
January 2, 1995, February 24, 1995, May 1, 1995 and January 1,
1996(4)
(8.38) Amendment dated May 1, 2000 to Fund Participation Agreement dated
May 11, 1994, between Janus Capital Corporation and Aetna Life
Insurance and Annuity Company, as amended on January 2, 1995,
February 24, 1995, May 1, 1995, January 1, 1996, and February 18,
1999
<PAGE>
(8.39) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Lexington Management Corporation regarding
Natural Resources Trust dated December 1, 1988 and amended
February 11, 1991(3)
(8.40) Fund Participation Agreement dated March 11, 1997 between Aetna
Life Insurance and Annuity Company and Oppenheimer Variable
Annuity Account Funds and Oppenheimer Funds, Inc.(39)
(8.41) First Amendment dated December 1, 1999 to Fund Participation
Agreement between Aetna Life Insurance and Annuity Company and
Oppenheimer Variable Annuity Account Funds and Oppenheimer Funds,
Inc. dated March 11, 1997(4)
(8.42) Service Agreement effective as of March 11, 1997 between
Oppenheimer Funds, Inc. and Aetna Life Insurance and Annuity
Company(39)
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors
(11) Not applicable
(12) Not applicable
(13) Schedule for Computation of Performance Data(16)
(14.1) Powers of Attorney
(14.2) Authorization for Signatures(3)
1. Incorporated by reference to Post-Effective Amendment No. 6 to
Registration Statement on Form N-4 (File No. 33-75986), as filed on April
22, 1996.
2. Incorporated by reference to Registration Statement on Form N-4 (File No.
333-56297), as filed on June 8, 1998.
3. Incorporated by reference to Post-Effective Amendment No. 5 to
Registration Statement on Form N-4 (File No. 33-75986), as filed on April
12, 1996.
4. Incorporated by reference to Post-Effective Amendment No. 19 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
February 16, 2000.
5. Incorporated by reference to Registration Statement on Form N-4 (File No.
333-01107), as filed on February 21, 1996.
6. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
February 4, 1999.
7. Incorporated by reference to Post-Effective Amendment No. 14 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on July
29, 1997.
8. Incorporated by reference to Post-Effective Amendment No. 6 to
Registration Statement on Form N-4 (File No. 33-75980), as filed on
February 12, 1997.
9. Incorporated by reference to Post-Effective Amendment No. 6 to
Registration Statement on Form N-4 (File No. 33-75982), as filed on April
22, 1996.
10. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75982), as filed on
February 20, 1997.
11. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 11, 1997.
<PAGE>
12. Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement on Form N-4 (File No. 33-91846), as filed on April
15, 1996.
13. Incorporated by reference to Post-Effective Amendment No. 6 to
Registration Statement on Form N-4 (File No. 33-91846), as filed on August
6, 1996.
14. Incorporated by reference to Post-Effective Amendment No. 10 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on July
22, 1998.
15. Incorporated by reference to Post-Effective Amendment No. 4 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
February 26, 1997.
16. Incorporated by reference to Post-Effective Amendment No. 9 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on April
7, 1998.
17. Incorporated by reference to Post-Effective Amendment No. 8 to
Registration Statement on Form N-4 (File No. 33-75986), as filed on August
30, 1996.
18. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-4 (File No. 33-75986), as filed on April
11, 1997.
19. Incorporated by reference to Post-Effective Amendment No. 11 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
September 10, 1998.
20. Incorporated by reference to Post-Effective Amendment No. 15 to
Registration Statement on Form N-4 (File No. 33-75962), as filed on
September 15, 1998.
21. Incorporated by reference to Post-Effective Amendment No. 15 to
Registration Statement on Form N-4 (File No. 33-75982), as filed on April
13, 1998.
22. Incorporated by reference to Post-Effective Amendment No. 1 to
Registration Statement on Form N-4 (File No. 33-88720), as filed on April
22, 1996.
23. Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement on Form N-4 (File No. 33-88720), as filed on June
28, 1996.
24. Incorporated by reference to Post-Effective Amendment No. 5 to
Registration Statement on Form N-4 (File No. 33-88720), as filed on
February 21, 1997.
25. Incorporated by reference to Post Effective Amendment No. 8 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on August
30, 1996.
26. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on April
11, 1997.
27. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on May
3, 1999.
28. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-4 (File No. 33-91846), as filed on April
13, 1998.
29. Incorporated by reference to Post-Effective Amendment No. 14 to
Registration Statement on Form N-4 (File No. 33-75986), as filed on August
19, 1997.
30. Incorporated by reference to Post-Effective Amendment No. 1 to
Registration Statement on Form S-1 (File No. 33-60477), as filed on April
15, 1996.
31. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-91846), as filed on
October 30, 1997.
32. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on August 4, 1998.
<PAGE>
33. Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form N-4 (File No. 333-56297), as filed on
December 14, 1998.
34. Incorporated by reference to Post-Effective Amendment No. 8 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
February 19, 1998.
35. Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on
September 29, 1997.
36. Incorporated by reference to Post-Effective Amendment No. 16 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 9, 1998.
37. Incorporated by reference to Post-Effective Amendment No. 7 to
Registration Statement on Form S-6 (File No. 33-75248), as filed on
February 24, 1998.
38. Incorporated by reference to Post-Effective Amendment No. 10 to
Registration Statement on Form N-4 (File No. 33-75992), as filed on
December 31, 1997.
39. Incorporated by reference to Post-Effective Amendment No. 27 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on April
16, 1997.
<PAGE>
Item 25. Directors and Officers of the Depositor
Name and Principal
Business Address* Positions and Offices with Depositor
- ----------------- ------------------------------------
Thomas J. McInerney Director and President
Catherine H. Smith Director, Chief Financial Officer and
Senior Vice President
Shaun P. Mathews Director and Senior Vice President
Deborah Koltenuk Vice President, Corporate Controller,
and Assistant Treasurer
Therese M. Squillacote Vice President and Chief Compliance
Officer
Kirk P. Wickman Senior Vice President, General
Counsel and Corporate Secretary
* The principal business address of all directors and officers listed is 151
Farmington Avenue, Hartford, Connecticut 06156.
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
Incorporated herein by reference to Item 24 of Registration Statement on
Form N-4 (File No. 33-41694), as filed on February 23, 2000.
Item 27. Number of Contract Owners
As of February 29, 2000, there were 597,694 individuals holding interests
in variable annuity contracts funded through Variable Annuity Account C.
Item 28. Indemnification
Section 21 of Public Act No. 97-246 of the Connecticut General Assembly (the
"Act") provides that a corporation may provide indemnification of or advance
expenses to a director, officer, employee or agent only as permitted by Sections
33-770 to 33-778, inclusive, of the Connecticut General Statutes, as amended by
Sections 12 to 20, inclusive, of this Act. Reference is hereby made to Section
33-771(e) of the Connecticut General Statutes ("CGS") regarding indemnification
of directors and Section 33-776(d) of CGS regarding indemnification of officers,
employees and agents of Connecticut corporations. These statutes provide in
general that Connecticut corporations incorporated prior to January 1, 1997
shall, except to the extent that their certificate of incorporation expressly
provides otherwise, indemnify their directors, officers, employees and agents
against "liability" (defined as the obligation to pay a judgment, settlement,
penalty, fine, including an excise tax assessed with respect to an employee
benefit plan, or
<PAGE>
reasonable expenses incurred with respect to a proceeding) when (1) a
determination is made pursuant to Section 33-775 that the party seeking
indemnification has met the standard of conduct set forth in Section 33-771 or
(2) a court has determined that indemnification is appropriate pursuant to
Section 33-774. Under Section 33-775, the determination of and the authorization
for indemnification are made (a) by the disinterested directors, as defined in
Section 33-770(3); (b) by special counsel; (c) by the shareholders; or (d) in
the case of indemnification of an officer, agent or employee of the corporation,
by the general counsel of the corporation or such other officer(s) as the board
of directors may specify. Also, Section 33-772 provides that a corporation shall
indemnify an individual who was wholly successful on the merits or otherwise
against reasonable expenses incurred by him in connection with a proceeding to
which he was a party because he was a director of the corporation. Pursuant to
Section 33-771(d), in the case of a proceeding by or in the right of the
corporation or with respect to conduct for which the director, officer, agent or
employee was adjudged liable on the basis that he received a financial benefit
to which he was not entitled, indemnification is limited to reasonable expenses
incurred in connection with the proceeding against the corporation to which the
individual was named a party.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who was a director, officer, employer or
agent of the corporation. Consistent with the statute, Aetna Inc. has procured
insurance from Lloyd's of London and several major United States and
international excess insurers for its directors and officers and the directors
and officers of its subsidiaries, including the Depositor.
Item 29. Principal Underwriter
(a) In addition to serving as the principal underwriter and depositor
for the Registrant, Aetna Life Insurance and Annuity Company (Aetna)
also acts as the principal underwriter, only, for Aetna Variable
Encore Fund, Aetna Variable Fund, Aetna Generation Portfolios, Inc.,
Aetna Income Shares, Aetna Balanced VP, Inc. (formerly Aetna
Investment Advisers Fund, Inc.), Aetna GET Fund, and Aetna Variable
Portfolios, Inc. and as the principal underwriter and investment
adviser for Portfolio Partners, Inc. (all management investment
companies registered under the Investment Company Act of 1940 (1940
Act)). Additionally, Aetna acts as the principal underwriter and
depositor for Variable Life Account B of Aetna, Variable Life
Account C of Aetna, Variable Annuity Account B of Aetna and Variable
Annuity Account G of Aetna (separate accounts of Aetna registered as
unit investment trusts under the 1940 Act). Aetna is also the
principal underwriter for Variable Annuity Account I of Aetna
Insurance Company of America (AICA) (a separate account of AICA
registered as a unit investment trust under the 1940 Act).
(b) See Item 25 regarding the Depositor.
<PAGE>
(c) Compensation as of December 31, 1998:
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation
Principal Discounts and on Redemption Brokerage
Underwriter Commissions or Annuitization Commissions Compensation*
- ----------- ----------- ---------------- ----------- -------------
Aetna Life $5,240,551 $159,707,139
Insurance and
Annuity Company
* Compensation shown in column 5 includes deductions for mortality and
expense risk guarantees and contract charges assessed to cover costs
incurred in the sales and administration of the contracts issued under
Variable Annuity Account C.
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules under it relating to the securities
described in and issued under this Registration Statement are located at the
home office of the Depositor as follows:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
Not applicable
Item 32. Undertakings
Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more
than sixteen months old for as long as payments under the variable
annuity contracts may be accepted;
(b) to include as part of any application to purchase a contract offered
by a prospectus which is part of this registration statement on Form
N-4, a space that an applicant can check to request a Statement of
Additional Information; and
(c) to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4
promptly upon written or oral request.
<PAGE>
(d) The Company hereby represents that it is relying upon and complies
with the provisions of Paragraphs (1) through (4) of the SEC Staff's
No-Action Letter dated November 28, 1988 with respect to language
concerning withdrawal restrictions applicable to plans established
pursuant to Section 403(b) of the Internal Revenue Code. See
American Counsel of Life Insurance; SEC No-Action Letter, [1988 WL
1235221 *13 (S.E.C.)].
(e) Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to directors, officers and
controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, the Registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and
is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the Registrant of expenses incurred or paid by a director, officer
or controlling person of the Registrant in the successful defense of
any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the Registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.
(f) Aetna Life Insurance and Annuity Company represents that the fees
and charges deducted under the contracts covered by this
registration statement, in the aggregate, are reasonable in relation
to the services rendered, the expenses expected to be incurred, and
the risks assumed by the insurance company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933, and the Investment Company Act
of 1940, the Registrant, Variable Annuity Account C of Aetna Life Insurance and
Annuity Company, certifies that it meets the requirements of Securities Act Rule
485(b) for effectiveness of this Post-Effective Amendment to its Registration
Statement on Form N-4 (File No. 333-01107) and has duly caused this
Post-Effective Amendment to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Hartford, State of Connecticut, on the
4th day of April, 2000.
VARIABLE ANNUITY ACCOUNT C OF AETNA
LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND ANNUITY
COMPANY
(Depositor)
By: /s/ Thomas J. McInerney*
------------------------------------------
Thomas J. McInerney
President
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 20 to the Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.
Signature Title Date
- --------- ----- ----
Thomas J. McInerney* Director and President )
- -------------------------- (principal executive officer) )
Thomas J. McInerney )
)
Catherine H. Smith* Director and Chief Financial Officer ) April
- -------------------------- ) 4, 2000
Catherine H. Smith )
)
Shaun P. Mathews* Director )
- -------------------------- )
Shaun P. Mathews )
)
Deborah Koltenuk* Vice President, Corporate Controller, )
- -------------------------- and Assistant Treasurer )
Deborah Koltenuk
By: /s/ Julie E. Rockmore
----------------------
Julie E. Rockmore
*Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT C
EXHIBIT INDEX
Exhibit No. Exhibit
- ----------- -------
99-B.8.6 Third Amendment dated February 11, 2000 to Fund
Participation Agreement by and among Aetna Life
Insurance and Annuity Company and Aetna Variable Fund,
Aetna Variable Encore Fund, Aetna Income Shares, Aetna
Balanced VP, Inc., Aetna GET Fund on behalf of each of
its series, Aetna Generation Portfolios, Inc. on
behalf of each of its series, Aetna Variable
Portfolios, Inc. on behalf of each of its series, and
Aeltus Investment Management, Inc. dated as of May 1,
1998 and amended on November 9, 1998 and December 31,
1999
---------
99-B.8.7 Fourth Amendment dated May 1, 2000 to Fund
Participation Agreement by and among Aetna Life
Insurance and Annuity Company and Aetna Variable Fund,
Aetna Variable Encore Fund, Aetna Income Shares, Aetna
Balanced VP, Inc., Aetna GET Fund on behalf of each of
its series, Aetna Generation Portfolios, Inc. on behalf
of each of its series, Aetna Variable Portfolios, Inc.
on behalf of each of its series, and Aeltus Investment
Management, Inc. dated as of May 1, 1998 and amended on
November 9, 1998, December 31, 1999 and February 11,
2000
---------
99-B.8.10 Second Amendment dated February 11, 2000 to Service
Agreement between Aeltus Investment Management, Inc.
and Aetna Life Insurance and Annuity Company in
connection with the sale of shares of Aetna Variable
Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of
each of its series, Aetna Generation Portfolios, Inc.
on behalf of each of its series and Aetna Variable
Portfolios, Inc. on behalf of each of its series dated
as of May 1, 1998 and November 4, 1998
---------
99-B.8.11 Third Amendment dated May 1, 2000 to Service Agreement
between Aeltus Investment Management, Inc. and Aetna
Life Insurance and Annuity Company in connection with
the sale of shares of Aetna Variable Fund, Aetna
Variable Encore Fund, Aetna Income Shares, Aetna
Balanced VP, Inc., Aetna GET Fund on behalf of each of
its series, Aetna Generation Portfolios, Inc. on behalf
of each of its series and Aetna Variable Portfolios,
Inc. on behalf of each of its series dated as of May 1,
1998, November 4, 1998 and February 11, 2000
---------
<PAGE>
Exhibit No. Exhibit
- ----------- -------
99-B.8.14 Form of Fund Participation Agreement dated as of
May 1, 2000 between The Chapman Funds, Inc. and
Aetna Life Insurance and Annuity Company
---------
99-B.8.38 Amendment dated May 1, 2000 to Fund Participation
Agreement dated May 11, 1994, between Janus Capital
Corporation and Aetna Life Insurance and Annuity
Company, as amended on January 2, 1995, February 24,
1995, May 1, 1995, January 1, 1996, and February 18,
1999
---------
99-B.9 Opinion and Consent of Counsel
---------
99-B.10 Consent of Independent Auditors
---------
99-B.14.1 Power of Attorney
---------
Exhibit 99-B.8.6
Third Amendment
to
Fund Participation Agreement
WITNESSETH:
WHEREAS, Aetna Life Insurance and Annuity Company ("ALIAC"), Aeltus
Investment Management, Inc. ("Aeltus") and Aetna Variable Fund, Aetna Variable
Encore Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna GET Fund, on
behalf of each of its series, Aetna Generation Portfolios, Inc., on behalf of
each of its series, and Aetna Variable Portfolios, Inc., on behalf of each of
its series ("Funds") have entered into a Fund Participation Agreement dated May
1, 1998 and amended on November 9, 1998 and December 31, 1999 (the "Agreement").
WHEREAS, ALIAC, Aeltus and the Funds now desire to amend and restate
Schedule B to the Agreement to include Aetna GET Fund, series: E, G, H, and I.
NOW THEREFORE, in consideration of the mutual covenants and promises
contained in the Agreement, ALIAC, Aeltus and the Funds hereby agree:
1. to amend and restate Schedule B to include Aetna GET Fund,
series: E, G, H and I, effective as of: June 1, 1999 with
respect to series E, September 1, 1999 with respect to series G,
December 1, 1999 with respect to series H, and March 1, 2000
with respect to series I; and
2. that the Agreement, as modified by this Amendment, is ratified
and confirmed.
IN WITNESS WHEREOF, the undersigned duly authorized officers of ALIAC,
Aeltus and the Funds have executed this Third Amendment as of the 11th day of
February, 2000.
AETNA LIFE INSURANCE AND AETNA VARIABLE FUND
ANNUITY COMPANY AETNA VARIABLE ENCORE FUND
AETNA INCOME SHARES
AETNA BALANCED VP, INC.
AETNA GET FUND
AETNA GENERATION PORTFOLIOS, INC.
AETNA VARIABLE PORTFOLIOS, INC.
By /s/ Laurie M. LeBlanc By /s/ Frank Litwin
---------------------- ----------------------
Name Laurie M. LeBlanc Name Frank Litwin
Title Vice President Title Vice President
AELTUS INVESTMENT MANAGEMENT, INC.
By /s/ J. Scott Fox
----------------------
Name J. Scott Fox
Title Managing Director,
Chief Operating
Officer
<PAGE>
SCHEDULE B
(Amended and restated as of May 1, 2000)
Aetna Variable Fund
Aetna Variable Encore Fund
Aetna Income Shares
Aetna Balanced VP Inc.
Aetna GET Fund
Series C
Series D
Series E
Series G
Series H
Series I
Aetna Generation Portfolios, Inc.
Aetna Ascent VP
Aetna Crossroads VP
Aetna Legacy VP
Aetna Variable Portfolios, Inc.
Aetna Value Opportunity VP
Aetna Growth VP
Aetna Small Company VP
Aetna Index Plus Large Cap VP
Aetna High Yield VP
Aetna Real Estate Securities VP
Aetna Index Plus Mid Cap VP
Aetna Index Plus Small Cap VP
Aetna Index Plus Bond VP
Aetna International VP
Aetna Technology VP
2
Exhibit 99-B.8.7
Fourth Amendment
to
Fund Participation Agreement
WITNESSETH:
WHEREAS, Aetna Life Insurance and Annuity Company ("ALIAC"), Aeltus
Investment Management, Inc. ("Aeltus") and Aetna Variable Fund, Aetna Variable
Encore Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna GET Fund, on
behalf of each of its series, Aetna Generation Portfolios, Inc., on behalf of
each of its series, and Aetna Variable Portfolios, Inc., on behalf of each of
its series ("Funds") have entered into a Fund Participation Agreement dated May
1, 1998 and amended on November 9, 1998, December 31, 1999 and February 11, 2000
(the "Agreement").
WHEREAS, ALIAC, Aeltus and the Funds now desire to amend and restate
Schedule B to the Agreement to include (i) Aetna GET Fund, series: J and K, and
(ii) Aetna Variable Portfolios, Inc. series: Aetna Technology VP.
NOW THEREFORE, in consideration of the mutual covenants and promises
contained in the Agreement, ALIAC, Aeltus and the Funds hereby agree:
1. to amend and restate Schedule B to include (i) Aetna GET Fund,
series: J and K, effective as of: June 1, 2000 with respect to
series J and September 1, 2000 with respect to series K; and
(ii) Aetna Variable Portfolios, Inc., series: Aetna Technology
VP, effective as of May 1, 2000; and
2. that the Agreement, as modified by this Amendment, is ratified
and confirmed.
IN WITNESS WHEREOF, the undersigned duly authorized officers of ALIAC,
Aeltus and the Funds have executed this Fourth Amendment as of the 1st day of
May, 2000.
AETNA LIFE INSURANCE AND AETNA VARIABLE FUND
ANNUITY COMPANY AETNA VARIABLE ENCORE FUND
AETNA INCOME SHARES
AETNA BALANCED VP, INC.
AETNA GET FUND
AETNA GENERATION PORTFOLIOS, INC.
AETNA VARIABLE PORTFOLIOS, INC.
By /s/ Laurie M. LeBlanc By /s/ Frank Litwin
---------------------- -----------------------------
Name Laurie M. LeBlanc Name Frank Litwin
Title Vice President Title Vice President
AELTUS INVESTMENT MANAGEMENT, INC.
By /s/ J. Scott Fox
----------------------
Name J. Scott Fox
Title Managing Director,
Chief Operating
Officer
<PAGE>
SCHEDULE B
(Amended and restated as of May 1, 2000)
Aetna Variable Fund
Aetna Variable Encore Fund
Aetna Income Shares
Aetna Balanced VP Inc.
Aetna GET Fund
Series C
Series D
Series E
Series G
Series H
Series I
Series J
Series K
Aetna Generation Portfolios, Inc.
Aetna Ascent VP
Aetna Crossroads VP
Aetna Legacy VP
Aetna Variable Portfolios, Inc.
Aetna Value Opportunity VP
Aetna Growth VP
Aetna Small Company VP
Aetna Index Plus Large Cap VP
Aetna High Yield VP
Aetna Real Estate Securities VP
Aetna Index Plus Mid Cap VP
Aetna Index Plus Small Cap VP
Aetna Index Plus Bond VP
Aetna International VP
Aetna Technology VP
2
Exhibit 99-B.8.10
Second Amendment
to
Service Agreement with Investment Advisor
WHEREAS Aeltus Investment Management, Inc. (the "Adviser") and Aetna Life
Insurance and Annuity Company (the "Company"), have entered into a Service
Agreement effective May 1, 1998, as amended on November 4, 1998 (the
"Agreement") for the provision of administrative services by the Company in
connection with the sale of shares of, among others, Aetna GET Fund on behalf of
each of its series.
WHEREAS, the Adviser and the Company now desire to amend and restate
Schedule A to the Agreement to include Aetna GET Fund, series: E, G, H and I.
NOW THEREFORE, the Adviser and the Company hereby agree:
1. to amend and restate Schedule A to include Aetna GET Fund, series: E,
G, H and I, effective as of: June 1, 1999 with respect to series E,
September 1, 1999 with respect to series G, December 1, 1999 with
respect to series H, and March 1, 2000 with respect to series I of
Aetna GET Fund; and
2. that the Agreement, as modified by this Amendment, is ratified and
confirmed.
IN WITNESS WHEREOF, the parties to the Agreement have caused this Amendment
to be executed by their authorized officers as of the 11th day of February,
2000.
AELTUS INVESTMENT MANAGEMENT, INC.
By: /s/ J. Scott Fox
---------------------------------------
J. Scott Fox
Title: Managing Director, Chief Operating
Officer
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ Laurie M. LeBlanc
---------------------------------------
Laurie M. LeBlanc
Title: Vice President
<PAGE>
Schedule A
(Amended and restated as of May 1, 2000)
Servicing Fee
<TABLE>
<CAPTION>
Aetna Aetna
Aetna Money Aetna Balanced Aetna Crossroads Aetna Aetna Growth
Market VP Bond VP VP, Inc. Ascent VP VP Legacy VP & Income VP
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
12.5 20 25 30 30 30 25 on first $10
billion of average
daily net assets
22.5 on next $5
billion of average
daily net assets
21.25 on next $15
billion of average
daily net assets
</TABLE>
<TABLE>
<CAPTION>
12/15/1999 3/15/2000 3/15/2000 6/15/2000
3/14/2000 3/14/2005 6/14/2000 6/14/2000
Aetna Aetna Aetna Aetna Aetna Aetna GET Aetna Aetna
GET Fund GET Fund GET Fund GET Fund GET Fund Fund GET Fund GET Fund
Series C Series D Series E Series G Series H Series H Series I Series I
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
30 30 30 30 12.5 30 12.5 30
</TABLE>
Aetna Index Aetna
Plus Large Aetna Value Aetna Small
Cap VP Growth VP Opportunity Company VP
- ---------------------------------------------------
17.5 30 30 37.5
<TABLE>
<CAPTION>
Aetna Aetna Real Aetna
Aetna Index Index Estate Aetna Index Aetna
Plus Small Plus Mid Securities International Plus Aetna High Technology
Cap VP Cap VP VP VP Bond VP Yield VP VP
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
20 20 37.5 42.5 15 32.5 22.5
</TABLE>
Exhibit 99-B.8.11
Third Amendment
to
Service Agreement with Investment Advisor
WHEREAS Aeltus Investment Management, Inc. (the "Adviser") and Aetna Life
Insurance and Annuity Company (the "Company"), have entered into a Service
Agreement effective May 1, 1998, as amended on November 4, 1998 and February 11,
2000 (the "Agreement") for the provision of administrative services by the
Company in connection with the sale of shares of, among others, (i) Aetna GET
Fund on behalf of each of its series; and (ii) Aetna Variable Portfolios, Inc.
on behalf of each of its series.
WHEREAS, the Adviser and the Company now desire to (i) amend and restate
Schedule A to the Agreement to include Aetna GET Fund, series: J and K; and (ii)
Aetna Variable Portfolios, Inc., series: Aetna Technology VP.
NOW THEREFORE, the Adviser and the Company hereby agree:
1. to amend and restate Schedule A to include (i) Aetna GET Fund, series:
J and K, effective as of: June 1, 2000 with respect to series J and
September 1, 2000 with respect to series K; and (ii) Aetna Variable
Portfolios, Inc., series: Aetna Technology VP, effective as of May 1,
2000; and
2. that the Agreement, as modified by this Amendment, is ratified and
confirmed.
IN WITNESS WHEREOF, the parties to the Agreement have caused this
Amendment to be executed by their authorized officers as of the 1st day of May,
2000.
AELTUS INVESTMENT MANAGEMENT, INC.
By: /s/ J. Scott Fox
------------------------------------------
J. Scott Fox
Title: Managing Director, Chief Operating Officer
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ Laurie M. LeBlanc
------------------------------------------
Laurie M. LeBlanc
Title: Vice President
<PAGE>
Schedule A
(Amended and restated as of May 1, 2000)
Servicing Fee
<TABLE>
<CAPTION>
Aetna Aetna
Aetna Money Aetna Bond Balanced Aetna Crossroads Aetna Legacy Aetna Growth
Market VP VP VP, Inc. Ascent VP VP VP & Income VP
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
12.5 20 25 30 30 30 25 on first $10
billion of average
daily net assets
22.5 on next $5
billion of average
daily net assets
21.25 on next $15
billion of average
daily net assets
</TABLE>
<TABLE>
<CAPTION>
12/15/1999 3/15/2000
3/14/2000 3/14/2005 3/15/2000
Aetna Aetna Aetna Aetna Aetna Aetna 6/14/2000
GET GET GET GET GET GET Aetna
Fund Fund Series Fund Fund Series Fund Fund GET
Series C D Series E G Series H Series H Fund Series I
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
30 30 30 30 12.5 30 12.5
</TABLE>
6/15/2000 6/15/2000 09/14/2000 09/14/2000 12/14/2000
6/14/2000 9/14/2000 09/13/2005 12/13/2000 12/13/2005
Aetna Aetna Aetna Aetna Aetna
GET GET GET GET GET
Fund Fund Series Fund Series Fund Series Fund Series
Series I J J K K
- --------------------------------------------------------------------
30 12.5 30 12.5 30
Aetna Index
Plus Large Aetna Aetna Value Aetna Small
Cap VP Growth VP Opportunity Company VP
- -----------------------------------------------------------
17.5 30 30 37.5
<TABLE>
<CAPTION>
Aetna Index Aetna Index Aetna Real
Plus Small Plus Mid Estate Aetna Aetna Index Aetna Aetna
Cap Cap Securities International Plus Bond High Technology
VP VP VP VP VP Yield VP VP
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
20 20 37.5 42.5 15 32.5 22.5
</TABLE>
Exhibit 99-B.8.14
FORM OF
FUND PARTICIPATION AGREEMENT
between
FUND and ALIAC
Aetna Life Insurance and Annuity Company (the "Company"), the Chapman
Funds, Inc. (the "Fund") and The Chapman Co. (the "Distributor") hereby agree to
an arrangement whereby the series of the Fund listed on Schedule A attached
hereto shall be made available to serve as underlying investment media for
Variable Annuity Contracts ("Contracts") to be issued by the Company.
1. Establishment of Accounts; Availability of Fund.
The Company represents that it has established Variable Annuity Accounts B,
C and D and may establish such other accounts as may be set forth in
Schedule B attached hereto and as may be amended from time to time with the
mutual consent of the parties hereto (the "Accounts"), each of which is a
separate account under Connecticut Insurance law, and has registered or
will register each of the Accounts (except for such Accounts for which no
such registration is required) as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"), to serve as an investment
vehicle for the Contracts. Each Contract provides for the allocation of net
amounts received by the Company to an Account for investment in the shares
of one of more specified open-end management investment companies available
through that Account as underlying investment media. Selection of a
particular investment management company and changes therein from time to
time are made by the participant or Contract owner, as applicable under a
particular Contract.
2. Pricing Information; Orders; Settlement.
(a) The Fund will make Fund shares available to be purchased by the
Company, and will accept redemption orders from the Company, on behalf
of each Account at the net asset value applicable to each order on
those days on which the Fund calculates its net asset value (a
"Business Day"). Fund shares shall be purchased and redeemed in such
quantity and at such time determined by the Company to be necessary to
meet the requirements of those Contracts for which the Fund(s) serve as
underlying investment media, provided, however, that the Board of
Directors of the Fund (hereinafter the "Directors") may upon reasonable
notice to the Company, refuse to sell shares of any series of the Fund
to any person, or suspend or terminate the offering of shares of any
series if such action is required by law or by regulatory authorities
having jurisdiction or is, in the sole discretion of the Directors,
acting in good faith and in the best interests of the shareholders of
any series and is acting in compliance with their fiduciary obligations
under federal and/or any applicable state laws.
<PAGE>
(b) The Fund will provide to the Company closing net asset value, dividend
and capital gain information at the close of trading each day that the
New York Stock Exchange (the "Exchange") is open (each such day a
"Business Day"). The Fund will use its best efforts to provide such
information by 6:30 p.m. Eastern Standard time and will provide such
information in no event later than 7:00p.m. Eastern Standard time on
such Business Day. The Company will send via facsimile or electronic
transmission to the Fund or its specified agent orders to purchase
and/or redeem Fund shares by 10:00 a.m. Eastern Standard Time the
following business day. Payment for net purchases will be wired by the
Company to an account designated by the Fund to coincide with the order
for shares of the Fund.
(c) The Fund hereby appoints the Company as its agent for the limited
purpose of accepting purchase and redemption orders for Fund shares
relating to the Contracts from Contract owners or participants. Orders
from Contract owners or participants received from any distributor of
the Contracts (including affiliates of the Company) by the Company,
acting as agent for the Fund, prior to the close of the Exchange on any
given business day will be executed by the Fund at the net asset value
determined as of the close of the Exchange on such Business Day,
provided that the Fund receives written (or facsimile) notice of such
order by 10 a.m. Eastern Standard Time on the next following Business
Day. Any orders received by the Company acting as agent on such day but
after the close of the Exchange will be executed by the Fund at the net
asset value determined as of the close of the Exchange on the next
business day following the day of receipt of such order, provided that
the Fund receives written (or facsimile) notice of such order by 10
a.m. Eastern Standard Time within two days following the day of receipt
of such order.
(d) Payments for net redemptions of shares of the Fund will be wired by the
Fund to an account designated by the Company on the same Business Day
the Company places an order to redeem Fund Shares. Payments for net
purchases of the Fund will be wired by the Company to an account
designated by the Fund on the same Business Day the Company places an
order to purchase Fund shares. Payments shall be in federal funds
transmitted by wire.
(e) In lieu of applicable provisions set forth in paragraphs 2(a)
through 2(d) above, the parties may agree to provide pricing
information, execute orders and wire payments for purchases and
redemptions through National Securities Clearing Corporation's
Fund/SERV system in which case such activities will be governed by the
provisions set forth in an Exhibit to this Agreement.
(f) Each party has the right to rely on information or confirmations
provided by the other party (or by any affiliate of the other party),
and shall not be liable in the event that an error is a result of any
misinformation supplied by the other party
2
<PAGE>
(g) The Fund and Distributor shall indemnify and hold the Company harmless,
from the effective date of this Agreement, against any amount the
Company is required to pay to Contract owners or participants due to:
(i) an incorrect calculation of a Fund's daily net asset value,
dividend rate, or capital gains distribution rate or (ii) incorrect or
late reporting of the daily net asset value, dividend rate, or capital
gain distribution rate of a Fund, upon written notification by the
Company, with supporting data, to Distributor. In addition, the Fund or
the Distributor shall be liable to the Company for systems and out of
pocket costs incurred by the Company in making a Contract owners's or a
participant's account whole, if such costs or expenses are a result of
the Fund's or the Distributor's failure to provide timely or correct
net asset values, dividend and capital gains or financial information
and if such information is not corrected by 4:00 p.m. Eastern Standard
time of the next business day after releasing such incorrect
information provided the incorrect NAV as well as the correct NAV for
each day that the error occurred is provided. If a mistake is caused in
supplying such information or confirmations, which results in a
reconciliation with incorrect information, the amount required to make
a Contract owner's or a participant's account whole shall be borne by
the party providing the incorrect information, regardless of when the
error is corrected.
(h) The Company agrees to purchase and redeem the shares of the series of
the Fund named in Schedule A offered by the then current prospectus and
statement of additional information of the Fund in accordance with the
provisions of such prospectus and statement of additional information.
3. Fees.
In consideration of services provided by the Company under this Agreement,
the Fund or Distributor shall pay fees to the Company as set forth in
Schedule C.
4. Expenses.
(a) Except as otherwise provided in this Agreement, all expenses incident
to the performance by the Fund under this Agreement shall be paid by
the Fund, including the cost of registration of Fund shares with the
Securities and Exchange Commission (the "SEC") and in states where
required. The Fund and Distributor shall pay no fee or other
compensation to the Company under this Agreement, and the Company shall
pay no fee or other compensation to the Fund or Distributor, except as
provided herein and in Schedule C attached hereto and made a part of
this Agreement as may be amended from time to time with the mutual
consent of the parties hereto. All expenses incident to performance by
each party of its respective duties under this Agreement shall be paid
by that party, unless otherwise specified in this Agreement.
(b) The Fund or the Distributor shall provide to the Company, at the
location designated by the Company, periodic fund reports to
shareholders and other materials that are required by law to be sent to
Contract owners or participants. In addition, the Fund or
3
<PAGE>
the Distributor shall provide the Company with a sufficient quantity of
its prospectuses, statements of additional information and any
supplements to any of these materials, to be used in connection with
the offerings and transactions contemplated by this Agreement
(c) The Fund or Distributor shall provide the company with a sufficient
quantity of its proxy material that is required to be sent to Contract
owners or participants. The cost associated with proxy preparation,
group authorization letters, programming for tabulation and necessary
materials (including postage) will be paid by the Fund or Distributor.
5. Representations.
(a) The Company agrees that it and its agents shall not, without the
written consent of the Fund or the Distributor, make representations
concerning the Fund, or its shares except those contained in the then
current prospectuses and in current printed sales literature approved
by the Fund or the Distributor.
(b) The Fund and Distributor represent and warrant that (i) they have
examined and tested their systems and made reasonable inquiry of their
business partners and other entities with whom they conduct business
with respect to Year 2000 problems and (ii) their ability to perform
their obligations under this Agreement will not be materially
interrupted or disrupted as a result of any business interruptions or
other business problems relating to specific dates or days before,
during and after the Year 2000. This representation and warranty does
not extend to any interruption or disruption caused solely by any act
or omission of the Company.
6. Termination.
This agreement shall terminate as to the sale and issuance of new
Contracts:
(a) at the option of either the Company, the Distributor or the Fund, upon
sixty days advance written notice to the other parties;
(b) at the option of the Company, upon one week advance written notice to
the Distributor and the Fund, if Fund shares are not available for any
reason to meet the requirement of Contracts as determined by the
Company. Reasonable advance notice of election to terminate shall be
furnished by Company;
(c) at the option of either the Company, the Distributor or the Fund,
immediately upon institution of formal proceedings against the
broker-dealer or broker-dealers marketing the Contracts, the Account,
the Company, the Fund or the Distributor by the National Association of
Securities Dealers, Inc. (the "NASD"), the SEC or any other regulatory
body;
4
<PAGE>
(d) upon the determination of the Accounts to substitute for the Fund's
shares the shares of another investment company in accordance with the
terms of the applicable Contracts. The Company will give 60 days
written notice to the Fund and the Distributor of any decision to
replace the Fund's shares;
(e) upon assignment of this Agreement, unless made with the written consent
of all other parties hereto;
(f) if Fund shares are not registered, issued or sold in conformance with
Federal law or such law precludes the use of Fund shares as an
underlying investment medium for Contracts issued or to be issued by
the Company. Prompt notice shall be given by the appropriate party
should such situation occur.
7. Continuation of Agreement.
Termination as the result of any cause listed in Section 6 shall not affect
the Fund's obligation to furnish its shares to Contracts then in force for
which its shares serve or may serve as the underlying medium unless such
further sale of Fund shares is prohibited by law or the SEC or other
regulatory body.
8. Advertising Materials; Filed Documents.
(a) Advertising and sales literature with respect to the Fund prepared by
the Company or its agents for use in marketing its Contracts will be
submitted to the Fund or its designee for review before such material
is submitted to any regulatory body for review, distributed to the
public, or used in connection with any Account or Contract.. No such
material shall be used if the Fund or its designee reasonably object to
such use in writing, transmitted by facsimile within five business days
after receipt of such material.
(b) The Fund will provide additional copies of its financials as soon as
available to the Company and at least one complete copy of all
registration statements, prospectuses, statements of additional
information, annual and semi-annual reports, proxy statements and all
amendments or supplements to any of the above that relate to the series
of the Fund named in Schedule A promptly after the filing of such
document with the SEC or other regulatory authorities. At the
Distributor's request, the Company will provide to the Distributor at
least one complete copy of all registration statements, prospectuses,
statements of additional information, annual and semi-annual reports,
proxy statements, and all amendments or supplements to any of the above
that relate to the Account promptly after the filing of such document
with the SEC or other regulatory authority.
(c) The Fund or the Distributor will provide via Excel spreadsheet diskette
format or in electronic transmission to the Company at least quarterly
portfolio information
5
<PAGE>
necessary to update Fund profiles within seven business days following
the end of each quarter.
9. Proxy Voting.
(a) The Company shall provide pass-through voting privileges on Fund shares
held by registered separate accounts to all Contract owners and
participants to the extent the SEC continues to interpret the 1940 Act
as requiring such privileges. The Company shall provide pass-through
voting privileges on Fund shares held by unregistered separate accounts
to all Contract owners.
(b) The Company will distribute to Contract owners and participants, as
appropriate, all proxy material furnished by the Fund and will vote
Fund shares in accordance with instructions received from such Contract
owners and participants. If and to the extent required by law, the
Company, with respect to each group Contract and in each Account, shall
vote Fund shares for which no instructions have been received in the
same proportion as shares for which such instructions have been
received. The Company and its agents shall not oppose or interfere with
the solicitation of proxies for Fund shares held for such Contract
owners and participants.
10. Indemnification.
(a) The Company agrees to indemnify and hold harmless the Fund and the
Distributor, and its directors, officers, employees, agents and each
person, if any, who controls the Fund or its Distributor within the
meaning of the Securities Act of 1933 (the "1933 Act") against any
losses, claims, damages or liabilities to which the Fund or any such
director, officer, employee, agent, or controlling person may become
subject, under the 1933 Act or otherwise, insofar as such losses,
claims, damages, or liabilities (or actions in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Registration Statement,
prospectus or sales literature of the Company or arise out of or are
based upon the omission or the alleged omission to state therein a
material fact required to be stated therein or necessary to make the
statements therein not misleading, or arise out of or as a result of
conduct, statements or representations (other than statements or
representations contained in the prospectuses or sales literature of
the Fund) of the Company or its agents, with respect to the sale and
distribution of Contracts for which Fund shares are the underlying
investment. The Company will reimburse any legal or other expenses
reasonably incurred by the Fund or any such director, officer,
employee, agent, investment Distributor, or controlling person in
connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the Company will
not be liable in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon (i) an untrue
statement or omission or alleged omission made in such Registration
Statement or prospectus in conformity with written materials furnished
to the Company by the Fund specifically for use therein or (ii) the
willful misfeasance, bad faith, or gross
6
<PAGE>
negligence by the Fund or Distributor in the performance of its duties
or the Fund's or Distributor's reckless disregard of obligations or
duties under this Agreement or to the Company, whichever is applicable.
This indemnity agreement will be in addition to any liability which
Company may otherwise have.
(b) The Fund and the Distributor agree to indemnify and hold harmless the
Company and its directors, officers, employees, agents and each person,
if any, who controls the Company within the meaning of the 1933 Act
against any losses, claims, damages or liabilities to which the Company
or any such director, officer, employee, agent or controlling person
may become subject, under the 1933 Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Registration Statement,
prospectuses or sales literature of the Fund or arise out of or are
based upon the omission or the alleged omission to state therein a
material fact required to be stated therein or material fact required
to be stated therein or necessary to make the statements therein not
misleading. The Fund will reimburse any legal or other expenses
reasonably incurred by the Company or any such director, officer,
employee, agent, or controlling person in connection with investigating
or defending any such loss, claim, damage, liability or action;
provided, however, that the Fund will not be liable in any such case to
the extent that any such loss, claim, damage or liability arises out of
or is based upon an untrue statement or omission or alleged omission
made in such Registration Statement or prospectuses which are in
conformity with written materials furnished to the Fund by the Company
specifically for use therein.
(c) Promptly after receipt by an indemnified party hereunder of notice of
the commencement of action, such indemnified party will, if a claim in
respect thereof is to be made against the indemnifying party hereunder,
notify the indemnifying party of the commencement thereof; but the
omission so to notify the indemnifying party will not relieve it from
any liability which it may have to any indemnified party otherwise than
under this Section 10. In case any such action is brought against any
indemnified party, and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to
participate therein and, to the extent that it may wish to, assume the
defense thereof, with counsel satisfactory to such indemnified party,
and after notice from the indemnifying party to such indemnified party
of its election to assume the defense thereof, the indemnifying party
will not be liable to such indemnified party under this Section 10 for
any legal or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof other than reasonable
costs of investigation.
11. Miscellaneous.
(a) Amendment and Waiver. Neither this Agreement, nor any provision hereof,
may be amended, waived, discharged or terminated orally, but only by an
instrument in writing signed by all parties hereto.
7
<PAGE>
(b) Notices. All notices and other communications hereunder shall be given
or made in writing and shall be delivered personally, or sent by telex,
telecopier or registered or certified mail, postage prepaid, return
receipt requested, or recognized overnight courier service to the party
or parties to whom they are directed at the following addresses, or at
such other addresses as may be designated by notice from such party to
all other parties.
To the Company:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Attention: Julie E. Rockmore, Counsel
To the Fund:
The Chapman Fund, Inc.
_________________________
_________________________
_________________________
Attn: __________________
To the Distributor:
The Chapman Co.
_________________________
_________________________
_________________________
Attn: __________________
Any notice, demand or other communication given in a manner prescribed in
this subsection (b) shall be deemed to have been delivered on receipt.
(c) Successors and Assigns. This agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective permitted
successors and assigns.
(d) Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one
agreement, and any party hereto may execute this Agreement by signing
any such counterpart.
(e) Severability. In case any one or more of the provisions contained in
this Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and
8
<PAGE>
enforceability of the remaining provisions contained herein shall not
in any way be affected or impaired thereby.
(f) Entire Agreement. This Agreement constitutes the entire agreement and
understanding between the parties hereto and supersedes all prior
agreement and understandings relating to the subject matter hereof.
(g) Governing Law. This Agreement shall be governed and interpreted in
accordance with the laws of the State of Connecticut.
(h) Non Exclusivity. It is understood by the parties that this Agreement
is not an exclusive arrangement in any respect.
(i) Confidentiality. The terms of this Agreement and the Schedules thereto
will be held confidential by each party except to the extent that
either party or its counsel may deem it necessary to disclose such
terms.
12. Limitation on Liability of Directors, etc.
This agreement has been executed on behalf of the Fund by the undersigned
officer of the Fund in his or her capacity as an officer of the Fund. The
obligations of this agreement shall be binding upon the assets and property
of the Fund only and shall not be binding on any Director, officer or
shareholder of the Fund individually.
IN WITNESS WHEREOF, the undersigned have executed this Agreement by their
duly authorized officers effective as of the ____ day of _________, _____.
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By: _________________________________
Name: _________________________________
Title:_________________________________
THE CHAPMAN FUND, INC.
By: _________________________________
Name: _________________________________
Title:_________________________________
THE CHAPMAN CO.
By: _________________________________
Name: _________________________________
Title:_________________________________
9
<PAGE>
10
<PAGE>
Schedule A
List of Series Available
Chapman DEM Equity (Institutional Shares)
11
<PAGE>
Schedule B
(For any future separate accounts--See Section 1)
12
Exhibit 99-B.8.38
AMENDMENT TO FUND PARTICIPATION AGREEMENT
This Amendment to the Fund Participation Agreement ("Agreement") dated May
11, 1994, as amended, between Janus Capital Corporation, a Colorado corporation
("Janus"), and Aetna Life Insurance and Annuity Company, a Connecticut life
insurance company (the "Company") is effective as of May 1, 2000.
AMENDMENT
For good and valuable consideration, the receipt of which is hereby
acknowledged, the parties agree to amend the Agreement as follows:
1. Schedule A of this Agreement shall be deleted and replaced with the
attached Schedule A.
2. Schedule B of this Agreement shall be deleted and replaced with the
attached Schedule B.
3. All other terms of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused their duly authorized officers
to execute this Amendment as of the date and year first above written.
AETNA LIFE INSURANCE AND
ANNUITY COMPANY
By: /s/ Laurie LeBlanc
------------------
Name: Laurie LeBlanc
Title: Vice President
JANUS CAPITAL CORPORATION
By: /s/ Bonnie M. Howe
------------------
Name: Bonnie M. Howe
Title: Vice President
<PAGE>
Schedule A
Separate Accounts and Associated Contracts
Name of Separate Account Contracts Funded by Sep. Acct.
- ------------------------ ------------------------------
Separate Account F GF-PVA-IC
GFA-PVA-IC
EFG-PVU-IC
EGFA-PVU-IC
G-CDA-ID (DCF); and
Associated 401/457 Contracts
Separate Account B 457 Contracts sold in Healthcare or
Education Markets
Separate Account C 403(b)/401/457 Contracts sold in
Healthcare, Education or
Government Markets
Separate Account D 401/457 Contracts sold in Corporate
Or Government Markets
Any state variation of the above referenced contracts are considered included on
this Schedule A.
<PAGE>
Schedule B
Janus Funds
Janus Fund
Janus Balanced Fund
Janus Flexible Income Fund
Janus Twenty Fund*
Janus Worldwide Fund
*Closed to new investors and available to Company's contract owners only through
Company's existing Separate Accounts listed on Schedule A.
EX-99.B.9
[Aetna logo] Aetna Inc.
Financial Services 151 Farmington Avenue
Hartford, CT 06156-8975
Julie E. Rockmore
Counsel
AFS Law, TS31
April 4, 2000 (860) 273-4686
Fax: (860) 273-0385
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Aetna Life Insurance and Annuity Company and its Variable Annuity Account C
Post-Effective Amendment No. 20 to Registration Statement on Form N-4
Prospectus Title: Multiple Sponsored Retirement Options 403(b), 457, 401(a)
and 401(k)
File Nos.: 333-01107* and 811-2513
Dear Sir or Madam:
The undersigned serves as counsel to Aetna Life Insurance and Annuity Company, a
Connecticut life insurance company (the "Company"). It is my understanding that
the Company, as depositor, has registered an indefinite amount of securities
(the "Securities") under the Securities Act of 1933 (the "Securities Act") as
provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment
Company Act").
In connection with this opinion, I or those for whom I have supervisory
responsibility, have reviewed the N-4 Registration Statement, as amended to the
date hereof, and this Post-Effective Amendment No. 20 (the "Registration
Statement"). I have also examined originals or copies, certified or otherwise
identified to my satisfaction, of such documents, trust records and other
instruments I have deemed necessary or appropriate for the purpose of rendering
this opinion. For purposes of such examination, I have assumed the genuineness
of all signatures on original documents and the conformity to the original of
all copies.
- --------
* Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which
includes all the information which would currently be required in a
prospectus relating to the securities covered by the following earlier
Registration Statements: 33-88720; 33-75964 (which had included a combined
prospectus for earlier Registration Statements: 33-75958, 33-75960, and
33-75994); 33-75986 (which had included a combined prospectus for earlier
Registration Statements: 33-75970, 33-75954, and 33-75956); 33-75982 (which
had included a combined prospectus for earlier Registration Statements:
33-75968, 33-75966, 33-75990, and the individual deferred compensation
contracts covered by Registration Statement No. 33-75992); and 33-91846
(which had included a combined prospectus for earlier Registration
Statement: 33-75976).
<PAGE>
I am admitted to practice law in Connecticut, and do not purport to be an expert
on the laws of any other state. My opinion herein as to any other law is based
upon a limited inquiry thereof which I have deemed appropriate under the
circumstances.
Based upon the foregoing, and, assuming the Securities are sold in accordance
with the provisions of the prospectus, I am of the opinion that the Securities
being registered will be legally issued and will represent binding obligations
of the Company.
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
- ---------------------
Julie E. Rockmore
Counsel
CONSENT OF INDEPENDENT AUDITORS
The Board of Directors Aetna Life Insurance and Annuity Company and Contract
Owners of Variable Annuity Account C:
We consent to the use of our report dated February 7, 2000, relating to the
consolidated financial statements of Aetna Life Insurance and Annuity Company
and our report dated February 3, 2000, relating to the financial statements of
Variable Annuity Account C, which are included in this Post-Effective Amendment
No. 20 to Registration Statement (File No. 333-01107) on Form N-4 and to the
references to our firm under the headings "Condensed Financial Information" in
the prospectus and "Independent Auditors" in the statement of Additional
information.
/s/ KPMG LLP
------------------------
KPMG LLP
Hartford, Connecticut
April 4, 2000
EX-99-B.14.1
POWER OF ATTORNEY
I, the undersigned Director and President of Aetna Life Insurance and Annuity
Company, hereby constitute and appoint Julie E. Rockmore, Kirk P. Wickman, Megan
L. Dunphy, Michael A. Pignatella and J. Neil McMurdie and each of them
individually, my true and lawful attorneys, with full power to them and each of
them to sign for me, and in my name and in the capacities indicated below, any
and all amendments, to the Registration Statements listed below filed with the
Securities and Exchange Commission under the Securities Act of 1933 and the
Investment Company Act of 1940:
Registration Statements filed under the Securities Act of 1933:
<TABLE>
<S> <C> <C> <C>
2-52448 33-75960 33-75998 333-30694
2-52449 33-75962 33-75996 333-49593
33-02339 33-75964 33-76000 333-49599
33-34370 33-75966 33-76002 333-56297
33-34583 33-75968 33-76004 333-72079
33-42555 33-75970 33-76018 333-84299
33-60477 33-75972 33-76024 333-87305
33-61897 33-75974 33-76026 333-89953
33-62473 33-75976 33-79118
333-01107 33-75978 33-79122
33-63611 33-75980 33-81216
33-64277 33-75982 33-87642
33-64331 33-75984 33-87932
33-75248 33-75986 33-88720
33-75954 33-75988 33-88722
33-75956 33-75990 33-88724
33-75958 33-75992 33-89858
333-15817 33-75994 33-91846
333-24645 333-09515 333-27337
</TABLE>
Registration Statements filed under the Investment Company Act of 1940:
<TABLE>
<S> <C> <C> <C> <C>
811-09665 811-2512 811-2513 811-4536 811-5906
</TABLE>
hereby ratifying and confirming on this 22nd day of March, 2000, my signature as
it may be signed by my said attorneys to any such Registration Statements and
any and all amendments thereto.
Signature/Title
---------------
/s/ Thomas J. McInerney
- ---------------------------------
Thomas J. McInerney
Director and President
(Principal Executive Officer)
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director of Aetna Life Insurance and Annuity Company, hereby
constitute and appoint Julie E. Rockmore, Kirk P. Wickman, Megan L. Dunphy,
Michael A. Pignatella and J. Neil McMurdie and each of them individually, my
true and lawful attorneys, with full power to them and each of them to sign for
me, and in my name and in the capacity indicated below, any and all amendments,
to the Registration Statements listed below filed with the Securities and
Exchange Commission under the Securities Act of 1933 and the Investment Company
Act of 1940:
Registration Statements filed under the Securities Act of 1933:
<TABLE>
<S> <C> <C> <C>
2-52448 33-75960 33-75998 333-30694
2-52449 33-75962 33-75996 333-49593
33-02339 33-75964 33-76000 333-49599
33-34370 33-75966 33-76002 333-56297
33-34583 33-75968 33-76004 333-72079
33-42555 33-75970 33-76018 333-84299
33-60477 33-75972 33-76024 333-87305
33-61897 33-75974 33-76026 333-89953
33-62473 33-75976 33-79118
333-01107 33-75978 33-79122
33-63611 33-75980 33-81216
33-64277 33-75982 33-87642
33-64331 33-75984 33-87932
33-75248 33-75986 33-88720
33-75954 33-75988 33-88722
33-75956 33-75990 33-88724
33-75958 33-75992 33-89858
333-15817 33-75994 33-91846
333-24645 333-09515 333-27337
</TABLE>
Registration Statements filed under the Investment Company Act of 1940:
<TABLE>
<S> <C> <C> <C> <C>
811-09665 811-2512 811-2513 811-4536 811-5906
</TABLE>
hereby ratifying and confirming on this 22nd day of March, 2000, my signature as
it may be signed by my said attorneys to any such Registration Statements and
any and all amendments thereto.
Signature/Title
---------------
/s/ Shaun P. Mathews
- ------------------------
Shaun P. Mathews
Director
<PAGE>
POWER OF ATTORNEY
I, the undersigned Director and Chief Financial Officer of Aetna Life Insurance
and Annuity Company, hereby constitute and appoint Julie E. Rockmore, Kirk P.
Wickman, Megan L. Dunphy, Michael A. Pignatella and J. Neil McMurdie and each of
them individually, my true and lawful attorneys, with full power to them and
each of them to sign for me, and in my name and in the capacities indicated
below, any and all amendments, to the Registration Statements listed below filed
with the Securities and Exchange Commission under the Securities Act of 1933 and
the Investment Company Act of 1940:
Registration Statements filed under the Securities Act of 1933:
<TABLE>
<S> <C> <C> <C>
2-52448 33-75960 33-75998 333-30694
2-52449 33-75962 33-75996 333-49593
33-02339 33-75964 33-76000 333-49599
33-34370 33-75966 33-76002 333-56297
33-34583 33-75968 33-76004 333-72079
33-42555 33-75970 33-76018 333-84299
33-60477 33-75972 33-76024 333-87305
33-61897 33-75974 33-76026 333-89953
33-62473 33-75976 33-79118
333-01107 33-75978 33-79122
33-63611 33-75980 33-81216
33-64277 33-75982 33-87642
33-64331 33-75984 33-87932
33-75248 33-75986 33-88720
33-75954 33-75988 33-88722
33-75956 33-75990 33-88724
33-75958 33-75992 33-89858
333-15817 33-75994 33-91846
333-24645 333-09515 333-27337
</TABLE>
Registration Statements filed under the Investment Company Act of 1940:
<TABLE>
<S> <C> <C> <C> <C>
811-09665 811-2512 811-2513 811-4536 811-5906
</TABLE>
hereby ratifying and confirming on this 22nd day of March, 2000, my signature as
it may be signed by my said attorneys to any such Registration Statements and
any and all amendments thereto.
Signature/Title
---------------
/s/ Catherine H. Smith
- ---------------------------------------
Catherine H. Smith
Director and Chief Financial Officer
<PAGE>
POWER OF ATTORNEY
I, the undersigned Vice President, Corporate Controller and Assistant Treasurer
of Aetna Life Insurance and Annuity Company, hereby constitute and appoint Julie
E. Rockmore, Kirk P. Wickman, Megan L. Dunphy, Michael A. Pignatella and J. Neil
McMurdie and each of them individually, my true and lawful attorneys, with full
power to them and each of them to sign for me, and in my name and in the
capacities indicated below, any and all amendments, to the Registration
Statements listed below filed with the Securities and Exchange Commission under
the Securities Act of 1933 and the Investment Company Act of 1940:
Registration Statements filed under the Securities Act of 1933:
<TABLE>
<S> <C> <C> <C>
2-52448 33-75960 33-75998 333-30694
2-52449 33-75962 33-75996 333-49593
33-02339 33-75964 33-76000 333-49599
33-34370 33-75966 33-76002 333-56297
33-34583 33-75968 33-76004 333-72079
33-42555 33-75970 33-76018 333-84299
33-60477 33-75972 33-76024 333-87305
33-61897 33-75974 33-76026 333-89953
33-62473 33-75976 33-79118
333-01107 33-75978 33-79122
33-63611 33-75980 33-81216
33-64277 33-75982 33-87642
33-64331 33-75984 33-87932
33-75248 33-75986 33-88720
33-75954 33-75988 33-88722
33-75956 33-75990 33-88724
33-75958 33-75992 33-89858
333-15817 33-75994 33-91846
333-24645 333-09515 333-27337
</TABLE>
Registration Statements filed under the Investment Company Act of 1940:
<TABLE>
<S> <C> <C>> <C> <C>
811-09665 811-2512 811-2513 811-4536 811-5906
</TABLE>
hereby ratifying and confirming on this 22nd day of March, 2000, my signature as
it may be signed by my said attorneys to any such Registration Statements and
any and all amendments thereto.
Signature/Title
---------------
/s/ Deborah Koltenuk
- ----------------------------------------------------------------
Deborah Koltenuk
Vice President, Corporate Controller and Assistant Treasurer
