GE CAPITAL LIFE Separate Account II
Financial Statements
For the six months ended June 30, 1999
(Unaudited)
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Table of Contents
For the six months ended June 30, 1999
- ------------------------------------------------------------------------------
Page
Financial Statements:
(Unaudited)
Statements of Assets and Liabilities..................................1
Statements of Operations..............................................6
Statements of Changes in Net Assets..................................11
Notes to Financial Statements............................................16
(Unaudited)
- ------------------------------------------------------------------------------
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Assets and Liabilities
As of June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
------------------------------------------------------------------
S&P 500 Money Total Global Value U.S.
Index Market Return Income Equity Income Equity
Assets Fund Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc., at
fair value (note 2):
S&P 500 Index Fund (5,988 shares;
cost - $152,230) $ 159,107 - - - - - -
Money Market Fund (185,764 shares;
cost - $185,764) - 185,764 - - - - -
Total Return Portolio (918 shares;
cost - $14,140) - - 14,370 - - - -
Global Income Fund (2,310 shares;
cost - $22,904) - - - 22,564 - - -
Value Equity Fund (1,528 shares;
cost - $25,216) - - - - 25,497 - -
Income Fund (5,009 shares; cost $60,634) - - - - - 60,654 -
U.S. Equity Fund (699 shares; cost $26,194) - - - - - - 26,737
Receivable from affiliate (note 3) - 70 - - - - -
- ------------------------------------------------------------------------------------------------------------------------
Total assets $ 159,107 185,834 14,370 22,564 25,497 60,654 26,737
========================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 99 226 14 21 9 41 12
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities 99 226 14 21 9 41 12
- ------------------------------------------------------------------------------------------------------------------------
Net assets $ 159,008 185,608 14,356 22,543 25,488 60,613 26,725
========================================================================================================================
Outstanding units 13,340 17,985 1,305 2,268 2,151 6,037 2,218
========================================================================================================================
Net asset value per unit 11.92 10.32 11.00 9.94 11.85 10.04 12.05
========================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
1
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Goldman Sachs
Variable
Oppenheimer Variable Account Funds Insurance Trust
------------------------------------------------------------------------------
Aggressive Capital High Multiple Growth and Mid Cap
Bond Growth Appreciation Income Strategies Income Value
Assets Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable Account Funds,
at fair value (note 2):
Bond Fund/VA (3,044 shares;
cost - $35,009) $ 35,000 - - - - - -
Aggressive Growth Fund/VA (318 shares;
cost - $16,195) - 17,253 - - - - -
Capital Appreciation Fund/VA (892 shares;
cost - $34,027) - - 36,353 - - - -
High Income Fund/VA (3,622 shares;
cost - $38,651) - - - 38,642 - - -
Multiple Strategies Fund/VA (803 shares;
cost - $13,399) - - - - 13,611 - -
Investment in Goldman Sachs Variable
Insurance Trust, at fair value (note 2):
Growth and Income Fund (1,466 shares;
cost - $16,997) - - - - - 16,922 -
Mid Cap Equity Fund (3,378 shares;
cost - $33,533) - - - - - - 33,782
- ----------------------------------------------------------------------------------------------------------------------------------
Total assets $ 35,000 17,253 36,353 38,642 13,611 16,922 33,782
==================================================================================================================================
Liabilities
- ----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 23 29 50 26 10 26 31
- ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 23 29 50 26 10 26 31
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets $ 34,977 17,224 36,303 38,616 13,601 16,896 33,751
==================================================================================================================================
Outstanding units 3,515 1,455 3,015 3,969 1,271 1,615 3,027
==================================================================================================================================
Net asset value per unit 9.95 11.84 12.04 9.73 10.70 10.46 11.15
==================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
2
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Variable Insurance Variable Insurance
Products Fund Products Fund II Product Fund III
------------------------------------------------------------------------------------
Equity Asset Growth & Growth
Income Growth Overseas Manager Contrafund Income Opportunities
Assets Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products
Fund, at fair value (note 2):
Equity-Income Portfolio (3,187 shares;
cost - $84,908) $ 86,833 - - - - - -
Growth Portfolio (288 shares;
cost - $12,790) - 13,149 - - - - -
Overseas Portfolio (2,463 shares;
cost - $51,145) - - 51,232 - - - -
Investment in Variable Insurance Products
Fund II, at fair value (note 2):
Asset Manager Portfolio (954 shares;
cost - $16,535) - - - 16,869 - - -
Contrafund Portfolio (4,869 shares;
cost - $122,816) - - - - 127,089 - -
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (3,061 shares;
cost - $51,072) - - - - - 52,343 -
Growth Opportunities Portfolio
(1,388 shares; cost - $32,198) - - - - - - 32,804
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 86,833 13,149 51,232 16,869 127,089 52,343 32,804
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 57 14 48 9 76 35 24
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 57 14 48 9 76 35 24
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 86,776 13,135 51,184 16,860 127,013 52,308 32,780
====================================================================================================================================
Outstanding units 7,673 1,036 4,984 1,551 10,638 4,490 2,828
====================================================================================================================================
Net asset value per unit 11.31 12.68 10.27 10.87 11.94 11.65 11.59
====================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
3
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Federated Insurance Series Alger American Fund
--------------------------------------------------------------
American High Small
Leaders Income Bond Capitalization Growth
Assets Fund II Fund II Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors Insurance Series,
at fair value (note 2):
American Leaders Fund II (1,561 shares;
cost - $33,532) $ 34,252 - - -
High Income Bond Fund II (1,310 shares;
cost - $13,663) - 13,455 - -
Investment in Alger American,
at fair value (note 2):
Small Capitalization Portfolio (943 shares;
cost - $38,791) - - 41,084 -
Growth Portfolio (1,252 shares;
cost - $69,617) - - - 69,897
- -----------------------------------------------------------------------------------------------------------------
Total assets $ 34,252 13,455 41,084 69,897
=================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 52 22 38 74
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 52 22 38 74
=================================================================================================================
Net assets $ 34,200 13,433 41,046 69,823
=================================================================================================================
Outstanding units 2,928 1,362 3,529 5,476
=================================================================================================================
Net asset value per unit 11.68 9.86 11.63 12.75
=================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
4
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
------------------------------------------------------------------------------------------
Aggressive Worldwide Flexible International Capital
Growth Growth Growth Balanced Income Growth Appreciation
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series, at fair
value (note 2):
Aggressive Growth Portfolio (1,339 shares;
cost - $45,750) $ 46,342 - - - - - -
Growth Portfolio (1,391 shares;
cost - $35,926) - 37,964 - - - - -
Worldwide Growth Portfolio (2,006 shares;
cost - $62,944) - - 65,683 - - - -
Balanced Portfolio (7,069 shares;
cost - $173,822) - - - 176,379 - - -
Flexible Income Portfolio (2,661 shares;
cost - $31,913) - - - - 30,760 - -
International Growth Portfolio (1,196 shares;
cost - $27,871) - - - - - 27,924 -
Capital Appreciation Portfolio (11,238 shares;
cost - $271,042) - - - - - - 281,057
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 46,342 37,964 65,683 176,379 30,760 27,924 281,057
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 35 41 47 178 29 13 223
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 35 41 47 178 29 13 223
====================================================================================================================================
Net assets $ 46,307 37,923 65,636 176,201 30,731 27,911 280,834
====================================================================================================================================
Outstanding units 3,091 2,933 5,913 14,153 3,046 2,747 19,625
====================================================================================================================================
Net asset value per unit 14.98 12.93 11.10 12.45 10.09 10.16 14.31
====================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
5
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Operations
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
---------------------------------------------------------------------------------------------
S&P 500 Money Total Global Value U.S.
Index Market Return Income Equity Income Equity
Fund Fund Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------------------
Period from Period from Period from Period from Period from Period from Period from
5/06-6/30/99 4/29-6/30/99 5/26-6/30/99 5/14-6/30/99 5/14-6/30/99 5/14-6/30/99 6/02-6/30/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - 867 - - - - -
Expenses - Mortality and expense
risk charges (note 3) 96 288 14 22 8 42 12
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (96) 579 (14) (22) (8) (42) (12)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) (26) - 13 23 - - -
Unrealized appreciation
(depreciation) on investments 6,877 - 229 (339) 281 20 542
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 6,851 - 242 (316) 281 20 542
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations $ 6,755 579 228 (338) 273 (22) 530
====================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
6
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
----------------------------------------------------------------------------
Aggressive Capital High Multiple
Bond Growth Appreciation Income Strategies
Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
----------------------------------------------------------------------------
Period from Period from Period from Period from Period from
5/06-6/30/99 5/11-6/30/99 4/23-6/30/99 5/21-6/30/99 5/14-6/30/99
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - - - - -
Expenses - Mortality and expense
risk charges (note 3) 24 39 49 26 10
- ------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (24) (39) (49) (26) (10)
- ------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss) 7 - (43) - -
Unrealized appreciation
(depreciation) on investments (8) 1,058 2,326 (10) 212
- ------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (1) 1,058 2,283 (10) 212
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations $ (25) 1,019 2,234 (36) 202
========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------
Goldman Sachs Variable
Insurance Trust
-------------------------------
Growth and Mid Cap
Income Value
Fund Fund
-------------------------------
Period from Period from
5/14-6/30/99 5/14-6/30/99
- -----------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - -
Expenses - Mortality and expense
risk charges (note 3) 26 31
- -----------------------------------------------------------------------
Net investment income (expense) (26) (31)
- -----------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss) - -
Unrealized appreciation
(depreciation) on investments (75) 250
- -----------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (75) 250
- -----------------------------------------------------------------------
Increase (decrease) in net assets
from operations $(101) 219
=======================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
7
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund Variable Insurance Products Fund II
---------------------------------------------- ------------------------------------
Equity Asset
Income Growth Overseas Manager Contrafund
Portfolio Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------
Period from Period from Period from Period from Period from
5/13-6/30/99 5/06-6/30/99 5/14-6/30/99 6/07-6/30/99 5/06-6/30/99
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 1,200 - - - -
Expenses - Mortality and expense
risk charges (note 3) 56 14 47 8 75
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 1,144 (14) (47) (8) (75)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (8) 9 111 - (6)
Unrealized appreciation on
investments 1,925 359 87 334 4,273
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 1,917 368 198 334 4,267
- --------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $ 3,061 354 151 326 4,192
================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------
Variable Insurance
Product Fund III
-----------------------------------
Growth & Growth
Income Opportunities
Portfolio Portfolio
-----------------------------------
Period from Period from
4/12-6/30/99 5/11-6/30/99
- ----------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - -
Expenses - Mortality and expense
risk charges (note 3) 42 24
- ----------------------------------------------------------------------------
Net investment income (expense) (42) (24)
- ----------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (5) (1)
Unrealized appreciation on
investments 1,270 606
- ----------------------------------------------------------------------------
Net realized and unrealized gain
on investments 1,265 605
- ----------------------------------------------------------------------------
Increase in net assets from operations $1,223 581
============================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
8
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Federated Insurance Series Alger American
------------------------------ -----------------------------
American High Small
Leaders Income Bond Capitalization Growth
Fund II Fund II Portfolio Portfolio
------------------------------------------------------------
Period from Period from Period from Period from
4/23-6/30/99 5/11-6/30/99 5/06-6/30/99 4/29-6/30/99
- --------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - - 124 2,328
Expenses - Mortality and expense
risk charges (note 3) 63 23 37 85
- --------------------------------------------------------------------------------------------------------
Net investment income (expense) (63) (23) 87 2,243
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) (2) 10 5 530
Unrealized appreciation (depreciation)
on investments 720 (208) 2,293 281
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 718 (198) 2,298 811
- --------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations $ 655 (221) 2,385 3,054
========================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
9
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Janus Aspen Series
----------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------
Period from Period from Period from Period from
4/23-6/30/99 5/11-6/30/99 4/23-6/30/99 4/12-6/30/99
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 1,625 235 120 1,819
Expenses - Mortality and expense
risk charges (note 3) 42 40 50 196
- ------------------------------------------------------------------------------------------------------------
Net investment income 1,583 195 70 1,623
- ------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) (5) - - (20)
Unrealized appreciation
(depreciation)
on investments 592 2,038 2,739 2,557
- ------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 587 2,038 2,739 2,537
- ------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations $ 2,170 2,233 2,809 4,160
============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
Janus Aspen Series
------------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
------------------------------------------------
Period from Period from Period from
5/21-6/30/99 5/26-6/30/99 4/29-6/30/99
- ------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 1,085 72 552
Expenses - Mortality and expense
risk charges (note 3) 29 13 233
- ------------------------------------------------------------------------------------------
Net investment income 1,056 59 319
- ------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) - 12 521
Unrealized appreciation
(depreciation)
on investments (1,153) 53 10,015
- ------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (1,153) 65 10,536
- ------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations (97) 124 10,855
==========================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
10
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Changes in Net Assets
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
---------------------------------------------------------
S&P 500 Money Total
Index Market Return
Fund Fund Fund
---------------------------------------------------------
Period from Period from Period from
5/06-6/30/99 4/29-6/30/99 5/26-6/30/99
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (96) 579 (14)
Net realized gain (loss) (26) - 13
Unrealized appreciation (depreciation)
on investments 6,877 - 229
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 6,755 579 228
- ----------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 152,165 184,960 14,132
Loan interest - - -
Transfers (to) from the general account of GE Capital Life:
Death benefits - - -
Surrenders (129) (30) (30)
Loans - - -
Cost of insurance and administrative expense (note 3) - - -
Transfer gain (loss) and transfer fees (783) 99 26
Transfers (to) from the Guarantee Account (note 1) 1,000 - -
Interfund transfers - - -
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 152,253 185,029 14,128
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets 159,008 185,608 14,356
Net assets at beginning of year - - -
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 159,008 185,608 14,356
============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
--------------------------------------------------------------------
Global Value U.S.
Income Equity Income Equity
Fund Fund Fund Fund
--------------------------------------------------------------------
Period from Period from Period from Period from
5/14-6/30/99 5/14-6/30/99 5/14-6/30/99 6/02-6/30/99
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (22) (8) (42) (12)
Net realized gain (loss) 23 - - -
Unrealized appreciation (depreciation)
on investments (339) 281 20 542
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (338) 273 (22) 530
- ---------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 22,942 25,200 60,577 25,194
Loan interest - - - -
Transfers (to) from the general account of GE Capital Life:
Death benefits - - - -
Surrenders (30) - - -
Loans - - - -
Cost of insurance and administrative expense (note 3) - - - -
Transfer gain (loss) and transfer fees (31) 15 58 1
Transfers (to) from the Guarantee Account (note 1) - - - 1,000
Interfund transfers - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 22,881 25,215 60,635 26,195
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 22,543 25,488 60,613 26,725
Net assets at beginning of year - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $22,543 25,488 60,613 26,725
=================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
11
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
-----------------------------------------------------------
Aggressive Capital
Bond Growth Appreciation
Fund/VA Fund/VA Fund/VA
-----------------------------------------------------------
Period from Period from Period from
5/06-6/30/99 5/11-6/30/99 4/23-6/30/99
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (24) (39) (49)
Net realized gain (loss) 7 - (43)
Unrealized appreciation (depreciation) on investments (8) 1,058 2,326
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (25) 1,019 2,234
- ------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 35,164 15,066 34,448
Loan interest - - -
Transfers (to) from the general account of GE Capital Life:
Death benefits - - -
Surrenders (159) - -
Loans - - -
Cost of insurance and administrative expense (note 3) - - -
Transfer gain (loss) and transfer fees (3) 1,139 (379)
Transfers (to) from the Guarantee Account (note 1) - - -
Interfund transfers - - -
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 35,002 16,205 34,069
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 34,977 17,224 36,303
Net assets at beginning of period - - -
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 34,977 17,224 36,303
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Goldman Sachs Variable
Account Funds Insurance Trust
------------------------------- --------------------------------
High Multiple Growth and Mid Cap
Income Strategies Income Value
Fund/VA Fund/VA Fund Fund
-----------------------------------------------------------------
Period from Period from Period from Period from
5/21-6/30/99 5/14-6/30/99 5/14-6/30/99 5/14-6/30/99
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (26) (10) (26) (31)
Net realized gain (loss) - - - -
Unrealized appreciation (depreciation) on investments (10) 212 (75) 250
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (36) 202 (101) 219
- ------------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 38,693 13,392 16,716 33,223
Loan interest - - - -
Transfers (to) from the general account of GE Capital Life:
Death benefits - - - -
Surrenders (30) - - -
Loans - - - -
Cost of insurance and administrative expense (note 3) - - - -
Transfer gain (loss) and transfer fees (11) 7 281 309
Transfers (to) from the Guarantee Account (note 1) - - - -
Interfund transfers - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 38,652 13,399 16,997 33,532
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 38,616 13,601 16,896 33,751
Net assets at beginning of period - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $38,616 13,601 16,896 33,751
====================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
12
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
--------------------------------------------------------
Equity
Income Growth Overseas
Portfolio Portfolio Portfolio
--------------------------------------------------------
Period from Period from Period from
5/13-6/30/99 5/06-6/30/99 5/14-6/30/99
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ 1,144 (14) (47)
Net realized gain (loss) (8) 9 111
Unrealized appreciation on investments 1,925 359 87
- ---------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 3,061 354 151
- ---------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 85,066 12,849 51,050
Loan interest - - -
Transfers (to) from the general account of
GE Capital Life:
Death benefits - - -
Surrenders (88) (160) -
Loans - - -
Cost of insurance and administrative expense (note 3) - - -
Transfer gain (loss) and transfer fees (1,263) 92 (17)
Transfers (to) from the Guarantee Account (note 1) - - -
Interfund transfers - - -
- ---------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 83,715 12,781 51,033
- ---------------------------------------------------------------------------------------------------------------------------
Increase in net assets 86,776 13,135 51,184
Net assets at beginning of year - - -
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 86,776 13,135 51,184
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Variable Insurance
Products Fund II Product Fund III
----------------------------------- --------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------------
Period from Period from Period from Period from
6/07-6/30/99 5/06-6/30/99 4/12-6/30/99 5/11-6/30/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (8) (75) (42) (24)
Net realized gain (loss) - (6) (5) (1)
Unrealized appreciation on investments 334 4,273 1,270 606
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 326 4,192 1,223 581
- -----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 16,515 122,599 51,215 32,232
Loan interest - - - -
Transfers (to) from the general account of
GE Capital Life:
Death benefits - - - -
Surrenders - (129) (129) -
Loans - - - -
Cost of insurance and administrative expense (note 3) - - - -
Transfer gain (loss) and transfer fees 19 (649) (1) (33)
Transfers (to) from the Guarantee Account (note 1) - 1,000 - -
Interfund transfers - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 16,534 122,821 51,085 32,199
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 16,860 127,013 52,308 32,780
Net assets at beginning of year - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $16,860 127,013 52,308 32,780
===================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
13
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Federated Insurance Series Alger American
---------------------------------- ---------------------------------
American High Small
Leaders Income Bond Capitalization Growth
Fund II Fund II Portfolio Portfolio
---------------------------------------------------------------------
Period from Period from Period from Period from
4/23-6/30/99 5/11-6/30/99 5/06-6/30/99 4/29-6/30/99
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (63) (23) 87 2,243
Net realized gain (loss) (2) 10 5 530
Unrealized appreciation (depreciation) on investments 720 (208) 2,293 281
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 655 (221) 2,385 3,054
- ---------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 33,607 13,716 38,444 67,995
Loan interest - - - -
Transfers (to) from the general account of GE Capital Life:
Death benefits - - - -
Surrenders - - (129) (129)
Loans - - - -
Cost of insurance and administrative expense (note 3) - - - -
Transfer gain (loss) and transfer fees (note 3) (62) (62) 346 (1,097)
Transfers (to) from the Guarantee Account (note 1) - - - -
Interfund transfers - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 33,545 13,654 38,661 66,769
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 34,200 13,433 41,046 69,823
Net assets at beginning of year - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 34,200 13,433 41,046 69,823
=================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
14
<PAGE>
GE Capital Life Separate Account II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
--------------------------------------------------------------------------
Aggressive Worldwide Flexible
Growth Growth Growth Balanced Income
Portfolio Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------------
Period from Period from Period from Period from Period from
4/23-6/30/99 5/11-6/30/99 4/23-6/30/99 4/12-6/30/99 5/21-6/30/99
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income $ 1,583 195 70 1,623 1,056
Net realized gain (loss) (5) - - (20) -
Unrealized appreciation (depreciation) on
investments 592 2,038 2,739 2,557 (1,153)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 2,170 2,233 2,809 4,160 (97)
- ---------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 43,291 35,575 62,471 172,027 30,851
Loan interest - - - - -
Transfers (to) from the general account of
GE Capital Life:
Death benefits - - - - -
Surrenders - (31) - (187) (30)
Loans - - - - -
Cost of insurance and administrative expense (note 3) - - - - -
Transfer gain (loss) and transfer fees 846 146 356 201 7
Transfers (to) from the Guarantee Account (note 1) - - - - -
Interfund transfers - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 44,137 35,690 62,827 172,041 30,828
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 46,307 37,923 65,636 176,201 30,731
Net assets at beginning of period - - - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 46,307 37,923 65,636 176,201 30,731
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
Janus Aspen Series
------------------------------
International Capital
Growth Appreciation
Portfolio Portfolio
------------------------------
Period from Period from
5/26-6/30/99 4/29-6/30/99
- -------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income $ 59 319
Net realized gain (loss) 12 521
Unrealized appreciation (depreciation) on
investments 53 10,015
- -------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 124 10,855
- -------------------------------------------------------------------------------------
From capital transactions:
Net premiums 27,817 270,024
Loan interest - -
Transfers (to) from the general account of
GE Capital Life:
Death benefits - -
Surrenders (31) -
Loans - -
Cost of insurance and administrative expense (note 3) - -
Transfer gain (loss) and transfer fees 1 (1,045)
Transfers (to) from the Guarantee Account (note 1) - 1,000
Interfund transfers - -
- -------------------------------------------------------------------------------------
Increase in net assets from capital transactions 27,787 269,979
- -------------------------------------------------------------------------------------
Increase (decrease) in net assets 27,911 280,834
Net assets at beginning of period - -
- -------------------------------------------------------------------------------------
Net assets at end of period $ 27,911 280,834
=====================================================================================
</TABLE>
See accompanying notes to unaudited financial statement
15
<PAGE>
GE Capital Life Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
- -------------------------------------------------------------------------------
(1) Description of Entity
GE Capital Life Separate Account II (the Account) is a separate
investment account established in 1996 by GE Life Assurance Company of
New York (GE Capital Life) and is incorporated in New York. The Account
operates as a unit investment trust under the Investment Company Act of
1940. The Account is used to fund certain benefits for flexible premium
variable deferred annuity life insurance policies issued by GE Capital
Life. GE Capital Life is a stock life insurance company incorporated in
New York on February 23, 1988. Fifty-two percent of the capital stock of
GE Capital Life is owned by General Electric Capital Assurance Company.
The remaining 48% is owned by Great Northern Insured Annuity Corporation.
General Electric Capital Assurance Company and Great Northern Insured
Annuity Corporation are indirect, wholly-owned subsidiaries of General
Electric Capital Corporation ("GE Capital"). GE Capital, a diversified
financial services company, is a wholly-owned subsidiary of General
Electric Company (GE), a New York corporation.
There are currently 41 investment subdivisions available in the Account.
The Growth, Aggressive Growth, International Growth, Worldwide Growth,
Balanced, Flexible Income and Capital Appreciation Portfolios each
invests solely in a designated portfolio of the Janus Aspen Series. The
Equity-Income, Overseas, and Growth Portfolios each invests solely in a
designated portfolio of the Variable Insurance Products Fund. The Asset
Manager and the Contrafund Portfolios each invests solely in a designated
portfolio of Variable Insurance Products Fund II. The Growth & Income and
the Growth Opportunities Portfolios each invests solely in a designated
portfolio of Variable Insurance Products Fund III. The S&P 500 Index,
Money Market, Total Return, International Equity, Real Estate Securities,
Global Income, Value Equity, Income, U.S. Equity, and Premier Growth
Equity Funds each invests solely in a designated portfolio of the GE
Investments Funds, Inc. The Bond Fund/VA, Aggressive Fund Growth/VA,
Capital Appreciation Fund/VA, High Income Fund/VA, and the Multiple
Strategies Fund/VA each invests solely in a designated portfolio of
Oppenheimer Variable Account Funds. American Leaders Fund II, Federated
Utility Fund II, and Federated High Income Bond Fund II each invests
solely in a designated portfolio of the Federated Insurance Series. The
Growth and Small Capitalization Portfolios each invests solely in a
designated portfolio of the Alger American Fund. The PBHG Growth II and
PBHG Large Cap Growth Portfolios each invests solely in a designated
portfolio of the PBHG Insurance Series Fund, Inc. The Growth and Income
and Mid Cap Value Funds each invests solely in a designated portfolio of
the Goldman Sachs Variable Insurance Trust. The Investors, Total Return,
and Strategic Bond Funds each invests solely in a designated portfolio of
the Salomon Brothers Variable Series Fund Inc. All designated portfolios
described above are series type mutual funds.
16 (Continued)
<PAGE>
GE Capital Life Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
- -------------------------------------------------------------------------------
(2) Summary of Significant Accounting Policies
(a) Investments
Investments are stated at fair value, which is based on the
underlying net asset value per share of the respective portfolios
or funds. Purchases and sales of investments are recorded on the
trade date and income distributions are recorded on the
ex-dividend date. Realized gains and losses on investments are
determined on the average cost basis. The units and unit values
are disclosed as of the last business day in the applicable year
or period.
The aggregate cost of the investments acquired and the aggregate
proceeds of investments sold, for the six months or lesser period
ended June 30, 1999 were:
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- --------------------------------------------------------------------------
GE Investment Funds, Inc.:
S&P 500 Index $ 153,330 $ 1,074
Money Market 185,856 92
Total Return 14,171 43
Global Income 22,942 61
Value Equity 25,216 0
Income 60,634 0
U.S. Equity 26,194 0
Oppenheimer Variable Account Funds:
Bond 35,172 170
Aggressive Growth 16,212 17
Capital Appreciation 34,775 706
High Income 38,693 42
Multiple Strategies 13,409 10
Variable Insurance Products Fund:
Equity-Income 85,183 268
Growth 12,957 176
Overseas 51,145 111
17 (Continued)
<PAGE>
GE Capital Life Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
- -------------------------------------------------------------------------------
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- --------------------------------------------------------------------------
Variable Insurance Products Fund II:
Asset Manager 16,535 0
Contrafund 123,791 969
Variable Insurance Products Fund III:
Growth & Income 51,219 142
Growth Opportunties 32,232 34
Goldman Sachs Variable Insurance Trust
Growth and Income 16,997 0
Mid Cap Value 33,533 0
Janus Aspen Series:
Aggressive Growth 46,064 310
Growth 35,986 60
Worldwide Growth 62,948 4
Balanced 174,533 692
Flexible Income 31,944 31
International Growth 27,903 44
Capital Appreciation 272,415 1,893
Federated Insurance Series:
High Income Bond Fund II 13,716 63
American Leaders Fund II 33,946 412
The Alger American Fund
Small Capitalization 38,925 139
Growth 70,329 1,242
(b) Capital Transactions
The increase (decrease) of outstanding units from capital
transactions for the six months or lesser period ended June 30,
1999 is as follows:
18 (Continued)
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
---------------------------------------------------------------------------
S&P 500 Money Total Global Value U.S.
Index Market Return Income Equity Income Equity
Fund Fund Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 - - - - - - -
From capital transactions:
Net premiums 13,264 17,988 1,308 2,271 2,151 6,037 2,133
Loan Interest - - - - - - -
Tranfers (to) from the
general acct. of GE Capital Life:
Death benefits - - - - - - -
Surrenders (11) (3) (3) (3) - - -
Loans - - - - - - -
Cost of insurance - - - - - - -
Fixed Transfers 87 - - - - - 85
Interfund transfers - - - - - - -
------- ------- ------ ------ ------ ------ ------
Net increase in units resulting
from capital transactions 13,340 17,985 1,305 2,268 2,151 6,037 2,218
------- ------- ------ ------ ------ ------ ------
Units outstanding at June 30, 1999 13,340 17,985 1,305 2,268 2,151 6,037 2,218
===================================================================================================================
</TABLE>
19
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Goldman Sachs
Variable
Oppenheimer Variable Account Funds Insurance Trust
------------------------------------------------------------- ---------------------
Aggressive Capital High Multiple Growth and Mid Cap
Bond Growth Appreciation Income Strategies Income Value
Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 - - - - - - -
From capital transactions:
Net premiums 3,531 1,455 3,015 3,972 1,271 1,615 3,027
Loan Interest - - - - - - -
Tranfers (to) from the
general acct. of GE Capital Life:
Death benefits - - - - - - -
Surrenders (16) - - (3) - - -
Loans - - - - - - -
Cost of insurance - - - - - - -
Fixed Transfers - - - - - - -
Interfund transfers - - - - - - -
------ ------ ------ ------ ------ ------ ------
Net increase in units resulting
from capital transactions 3,515 1,455 3,015 3,969 1,271 1,615 3,027
------ ------ ------ ------ ------ ------ ------
Units outstanding at June 30, 1999 3,515 1,455 3,015 3,969 1,271 1,615 3,027
===========================================================================================================================
</TABLE>
20
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Variable Insurance Products Fund
---------------------------------------------------------------
Equity
Income Growth Overseas
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 - - -
From capital transactions:
Net premiums 7,681 1,049 4,984
Loan Interest - - -
Tranfers (to) from the
general acct. of GE Capital Life:
Death benefits - - -
Surrenders (8) (13) -
Loans - - -
Cost of insurance - - -
Fixed Transfers - - -
Interfund transfers - - -
------ ------ ------
Net increase in units resulting
from capital transactions 7,673 1,036 4,984
------ ------ ------
Units outstanding at June 30, 1999 7,673 1,036 4,984
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance Variable Insurance
Products Fund II Products Fund III
-------------------------------------- -----------------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 - - - -
From capital transactions:
Net premiums 1,551 10,563 4,501 2,828
Loan Interest - - - -
Tranfers (to) from the
general acct. of GE Capital Life:
Death benefits - - - -
Surrenders - (11) (11) -
Loans - - - -
Cost of insurance - - - -
Fixed Transfers - 86 - -
Interfund transfers - - - -
------ ------- ------ ------
Net increase in units resulting
from capital transactions 1,551 10,638 4,490 2,828
------ ------- ------ ------
Units outstanding at June 30, 1999 1,551 10,638 4,490 2,828
============================================================================================================================
</TABLE>
21
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Federated Insurance Series Alger American Fund
----------------------------- -------------------------------
American High Small
Leaders Income Bond Capitalization Growth
Fund II Fund II Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 - - - -
From capital transactions:
Net premiums 2,928 1,362 3,541 5,486
Loan Interest - - - -
Tranfers (to) from the
general acct. of GE Capital Life:
Death benefits - - - -
Surrenders - - (12) (10)
Loans - - - -
Cost of insurance - - - -
Fixed Transfers - - - -
Interfund transfers - - - -
----- ------ ------ ------
Net increase in units resulting
from capital transactions 2,928 1,362 3,529 5,476
------ ------ ------ ------
Units outstanding at June 30, 1999 2,928 1,362 3,529 5,476
========================================================================================================
</TABLE>
22
<PAGE>
GE CAPITAL LIFE SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Janus Aspen Series
- --------------------------------------------------------------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 - - - -
From capital transactions:
Net premiums 3,091 2,936 5,913 14,168
Loan Interest - - - -
Tranfers (to) from the
general acct. of GE Capital Life:
Death benefits - - - -
Surrenders - (3) - (15)
Loans - - - -
Cost of insurance - - - -
Fixed Transfers - - - -
Interfund transfers - - - -
------ ------ ------ -------
Net increase in units resulting
from capital transactions 3,091 2,933 5,913 14,153
------ ------ ------ -------
Units outstanding at June 30, 1999 3,091 2,933 5,913 14,153
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Series
- --------------------------------------------------------------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 - - -
From capital transactions:
Net premiums 3,049 2,750 19,553
Loan Interest - - -
Tranfers (to) from the
general acct. of GE Capital Life:
Death benefits - - -
Surrenders (3) (3) -
Loans - - -
Cost of insurance - - -
Fixed Transfers - - 72
Interfund transfers - - -
------ ------ -------
Net increase in units resulting
from capital transactions 3,046 2,747 19,625
------ ------ -------
Units outstanding at June 30, 1999 3,046 2,747 19,625
============================================================================================
</TABLE>
23
<PAGE>
GE Capital Life Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
- --------------------------------------------------------------------------------
(c) Federal Income Taxes
The Account is not taxed separately because the operations of the
Account are part of the total operations of GE Capital Life. GE
Capital Life is taxed as a life insurance company under the
Internal Revenue Code (the Code). GE Capital Life is included in
the General Electric Capital Assurance Company consolidated
federal income tax return. Under existing federal income tax law,
no taxes are payable on the investment income or on the capital
gains of the Account.
(d) Use of Estimates
Financial statements prepared in conformity with generally
accepted accounting principles require management to make
estimates and assumptions that affect amounts and disclosures
reported therein. Actual results could differ from those
estimates.
(3) Related Party Transactions
The premiums transferred from GE Capital Life to the Account represent
gross premiums recorded by GE Capital Life on its flexible variable
deferred annuity products. If a policy is surrendered or lapses during
the first six years, a charge is made by GE Capital Life to cover the
expenses of issuing the policy. In addition, surrender charges are
assessed against payments made upon the maturity date if the maturity
date occurs before all of the premium payments have been in the policy
for seven years. Subject to certain limitations, the charge generally
equals 6% of the premium withdrawn in the first four years, and this
charge decreases 2% per year for every year thereafter.
GE Capital Life will deduct a charge of $25 plus .15% per year from the
Account for certain administrative charges. In addition, GE Capital Life
charges the Account 1.25% for the mortality and expense (M&E) risk that
GE Capital Life assumes. The administrative expenses as well as the M&E
charges are deducted daily and reflect the effective annual rates.
GE Investments Funds, Inc. (the Fund) is an open-end diversified
management investment company.
Capital Brokerage Corporation, an affiliate of GE Capital Life, is a
Washington Corporation registered with the Commission under the
Securities Exchange Act of 1934 as a broker-dealer and is a member of the
National Association of Securities Dealers, Inc. Capital Brokerage
Corporation serves as principal underwriter for variable life insurance
policies and variable annuities issued by GE Capital Life.
24 (Continued)
<PAGE>
GE Capital Life Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
- --------------------------------------------------------------------------------
GE Investment Management Incorporated (Investment Advisor), a
wholly-owned subsidiary of GE, currently serves as investment advisor to
GE Investments Funds, Inc. As compensation for its services, the
Investment Advisor is paid an investment advisory fee by the Fund based
on the average daily net assets at an effective annual rate of .35% for
the S&P 500 Index Fund, .50% for the Money Market, Income, and Total
Return Funds, .60% for the Global Income Fund, .55% for the U.S. Equity
Fund and .65% for the Value Equity Fund.
Certain officers and directors of GE Capital Life are also officers and
directors of Capital Brokerage Corporation.
25
