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COVA FINANCIAL LIFE INSURANCE COMPANY
COVA VARIABLE LIFE ACCOUNT FIVE
Supplement dated September 1, 2000
The following supplements certain information contained in your Cova Flexible
Premium Variable Life Insurance Policy prospectus:
1. The following changes are made to the "Executive Officers and Directors"
section in Part II of the prospectus:
o Lorry E. Stensrud, William C. Mair, John W. Barber, Douglas E.
Jacobs and Myron H. Sandberg are deleted.
o The following replaces the information for Mark E. Reynolds:
President and Director of Cova, CFSLIC and FCLIC - June, 2000 to
present; Executive Vice President and Director of Cova and CFSLIC -
May, 1997 to June, 2000; Chief Financial Officer and Director of FCLIC
- May, 1997 to present; Executive Vice President of CLMC - May, 1997
to present; Executive Vice President and Director of Advisory -
December, 1996 to present; Executive Vice President and Director of
Allocation - December, 1996 to present.
o The following information is added:
James A. Shepherdson III - Chairman of the Board and a Director of
Cova and CFSLIC since June, 2000; Co-Chief Executive Officer, MetLife
Security First Group - April, 2000 to present; Co-Chief Executive
Officer, Equitable Distributors, Inc. - April, 1996 to April, 2000;
Chief Operating Officer, McGuinness Companies and Chief Operating
Officer, Endeavor Group - September, 1978 to March, 1996.
Gregory P. Brakovich - Director of Cova and CFSLIC since June, 2000;
Co-Chief Executive Officer, MetLife Security First Group - April, 2000
to present; Co-Chief Executive Officer, Equitable Distributors Inc. -
March, 1996 to April, 2000; Consultant/Managing Director, Bankers
Trust Co. - June, 1992 to March, 1996.
o The following supplements the information for Bernard J. Spaulding and
Peter L. Witkewiz, respectively:
<PAGE>
Bernard J. Spaulding - Director of Cova, CFSLIC and FCLIC since June,
2000.
Peter L. Witkewiz - Director of Cova, CFSLIC and FCLIC since June,
2000.
2. The following financial statements are added to the prospectus:
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Assets and Liabilities
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Assets:
Investments:
Cova Series Trust (Cova):
<S> <C> <C> <C>
Lord Abbett Growth and Income Portfolio 15,063 shares at a net asset value of $22.879850 per share $ 344,648
Bond Debenture Portfolio 14,283 shares at a net asset value of $11.818836 per share 168,814
Developing Growth Portfolio 16 shares at a net asset value of $12.436639 per share 195
Large Cap Research Portfolio 9,636 shares at a net asset value of $12.981956 per share 125,097
Mid-Cap Value Portfolio 5,433 shares at a net asset value of $13.030863 per share 70,796
Quality Bond Portfolio 20 shares at a net asset value of $10.407309 per share 205
Small Cap Stock Portfolio 7,489 shares at a net asset value of $16.700167 per share 125,066
Large Cap Stock Portfolio 28,726 shares at a net asset value of $18.543961 per share 532,693
Select Equity Portfolio 14,728 shares at a net asset value of $14.816764 per share 218,221
International Equity Portfolio 10,811 shares at a net asset value of $14.530295 per share 157,080
General American Capital Company (GACC):
Money Market Fund 69 shares at a net asset value of $20.873908 per share 1,441
Russell Insurance Funds (Russell):
Multi-Style Equity Fund 6 shares at a net asset value of $15.57 per share 98
Aggressive Equity Fund 7 shares at a net asset value of $13.48 per share 99
Non-US Fund 8 shares at a net asset value of $13.11 per share 101
Core Bond Fund 10 shares at a net asset value of $9.85 per share 102
Real Estate Securities Fund 11 shares at a net asset value of $9.73 per share 103
AIM Variable Insurance Funds, Inc. (AIM):
AIM V.I. Value Fund 4,877 shares at a net asset value of $33.41 per share 162,951
AIM V.I. Capital Appreciation Fund 1,076 shares at a net asset value of $38.51 per share 41,432
AIM V.I. International Equity Fund 7 shares at a net asset value of $26.11 per share 194
Alliance Variable Products Series Fund,
Inc. (Alliance):
Premier Growth Portfolio 2 shares at a net asset value of $39.60 per share 98
Real Estate Investment Portfolio 11 shares at a net asset value of $9.84 per share 104
Liberty Variable Investment Trust (Liberty):
Newport Tiger Fund, Variable Series 40 shares at a net asset value of $2.61 per share 104
Goldman Sachs Variable Insurance Trust
(Goldman Sachs):
Growth and Income Fund 9 shares at a net asset value of $10.97 per share 100
International Equity Fund 7 shares at a net asset value of $14.24 per share 100
Global Income Fund 10 shares at a net asset value of $10.15 per share 101
Kemper Variable Series (Kemper):
Kemper Small Cap Growth Portfolio 39 shares at a net asset value of $2.639950 per share 103
Kemper Small Cap Value Portfolio 93 shares at a net asset value of $1.058730 per share 99
Kemper Government Securities Portfolio 91 shares at a net asset value of $1.120430 per share 102
MFS Variable Insurance Trust (MFS):
MFS Research Series 4 shares at a net asset value of $23.24 per share 101
MFS Growth with Income Series 5 shares at a net asset value of $21.15 per share 100
MFS Emerging Growth Series 3 shares at a net asset value of $35.05 per share 98
MFS High Income Series 9 shares at a net asset value of $10.57 per share 100
MFS Global Governments Series 11 shares at a net asset value of $9.68 per share 102
Oppenheimer Variable Account Funds (Oppenheimer):
Oppenheimer Capital Appreciation Fund 2 shares at a net asset value of $51.14 per share 99
Oppenheimer Main Street Growth & Income Fund 4 shares at a net asset value of $23.35 per share 99
Oppenheimer High Income Fund 11 shares at a net asset value of $9.57 per share 101
Oppenheimer Bond Fund 9 shares at a net asset value of $10.81 per share 102
Oppenheimer Strategic Bond Fund 22 shares at a net asset value of $4.65 per share 102
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Assets and Liabilities
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Assets, continued:
Investments, continued:
Putnam Variable Trust (Putnam)
<S> <C> <C> <C>
Putnam VT Growth and Income Fund 4 shares at a net asset value of $23.21 per share $ 98
Putnam VT New Value Fund 9 shares at a net asset value of $11.36 per share 101
Putnam VT Vista Fund 4 shares at a net asset value of $23.79 per share 102
Putnam VT International Growth Fund 5 shares at a net asset value of $19.69 per share 102
Putnam VT International New Opportunities Fund 5 shares at a net asset value of $18.87 per share 92
Franklin Templeton Variable Insurance Products
Trust (Templeton)
Templeton Global Income Securities Fund 9 shares at a net asset value of $11.07 per share 101
Franklin Small Cap Fund 322 shares at a net asset value of $26.52 per share 8,551
Templeton Growth Securities Fund 3,038 shares at a net asset value of $13.26 per share 40,278
Templeton International Securities Fund 11 shares at a net asset value of $19.31 per share 215
Templeton Developing Markets Securities Fund 15 shares at a net asset value of $6.39 per share 99
Mutual Shares Securities Fund 8 shares at a net asset value of $12.69 per share 99
Franklin Large Cap Growth Securities Fund 6 shares at a net asset value of $22.28 per share 138
------------
Total assets $ 2,001,227
============
</TABLE>
<PAGE>
<TABLE>
Net Assets:
Accumulation units:
<S> <C> <C> <C>
Cova Lord Abbett Growth and Income 28,293 accumulation units at $12.178101 per unit 344,648
<PAGE>
Cova Bond Debenture 15,672 accumulation units at $10.765079 per unit 168,814
Cova Developing Growth 9 accumulation units at $11.720493 per unit 195
Cova Large Cap Research 9,532 accumulation units at $13.113251 per unit 125,097
Cova Mid-Cap Value 5,933 accumulation units at $11.915384 per unit 70,796
Cova Quality Bond 10 accumulation units at $10.935050 per unit 205
Cova Small Cap Stock 9,647 accumulation units at $12.954078 per unit 125,066
Cova Large Cap Stock 38,110 accumulation units at $13.975272 per unit 532,693
Cova Select Equity 17,487 accumulation units at $12.473352 per unit 218,221
Cova International Equity 12,055 accumulation units at $13.021727 per unit 157,080
GACC Money Market 118 accumulation units at $11.351072 per unit 1,441
Russell Multi-Style Equity 10 accumulation units at $9.839318 per unit 98
Russell Aggressive Equity 10 accumulation units at $9.924708 per unit 99
Russell Non-US 10 accumulation units at $10.044600 per unit 101
Russell Core Bond 10 accumulation units at $10.187476 per unit 102
Russell Real Estate Securities 10 accumulation units at $10.276129 per unit 103
AIM V.I. Value 13,869 accumulation units at $11.742562 per unit 162,951
AIM V.I. Capital Appreciation 2,742 accumulation units at $15.072152 per unit 41,432
AIM V.I. International Equity 10 accumulation units at $9.699112 per unit 194
Alliance Premier Growth 10 accumulation units at $9.805973 per unit 98
Alliance Real Estate Investment 10 accumulation units at $10.380389 per unit 104
Liberty Newport Tiger Fund, Variable 10 accumulation units at $10.430572 per unit 104
Goldman Sachs Growth and Income 10 accumulation units at $9.963734 per unit 100
Goldman Sachs International Equity 10 accumulation units at $9.990964 per unit 100
Goldman Sachs Global Income 10 accumulation units at $10.110501 per unit 101
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Assets and Liabilities
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Net Assets, continued:
Accumulation units, continued:
<S> <C> <C> <C>
Kemper Small Cap Growth 10 accumulation units at $10.313208 per unit $ 103
Kemper Small Cap Value 10 accumulation units at $9.863794 per unit 99
<PAGE>
Kemper Government Securities 10 accumulation units at $10.200453 per unit 102
MFS Research 10 accumulation units at $10.042841 per unit 101
MFS Growth with Income 10 accumulation units at $10.009910 per unit 100
MFS Emerging Growth 10 accumulation units at $9.809074 per unit 98
MFS High Income 10 accumulation units at $10.000426 per unit 100
MFS Global Governments 10 accumulation units at $10.223319 per unit 102
Oppenheimer Capital Appreciation 10 accumulation units at $9.938508 per unit 99
Oppenheimer Main Street Growth & Income 10 accumulation units at $9.935662 per unit 99
Oppenheimer High Income 10 accumulation units at $10.085815 per unit 101
Oppenheimer Bond 10 accumulation units at $10.179298 per unit 102
Oppenheimer Strategic Bond 10 accumulation units at $10.143666 per unit 102
<PAGE>
Putnam VT Growth and Income 10 accumulation units at $9.784413 per unit 98
Putnam VT New Value 10 accumulation units at $10.088674 per unit 101
Putnam VT Vista 10 accumulation units at $10.161851 per unit 102
Putnam VT International Growth 10 accumulation units at $10.187588 per unit 102
Putnam VT International New Opportunities 10 accumulation units at $9.160794 per unit 92
Templeton Global Income Securities 10 accumulation units at $10.078554 per unit 101
Franklin Small Cap 572 accumulation units at $14.756923 per unit 8,551
Templeton Growth Securities 3,534 accumulation units at $11.398217 per unit 40,278
Templeton International Securities 10 accumulation units at $10.889422 per unit 215
Templeton Developing Markets Securities 10 accumulation units at $9.852198 per unit 99
Templeton Mutual Shares Securities 10 accumulation units at $9.866570 per unit 99
Franklin Large Cap Growth Securities 10 accumulation units at $13.758849 per unit 138
-----------------
Total net assets $ 2,001,227
=================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Cova
------------------------------------------------------------------------------------
Lord Abbett
Growth Large Small
<PAGE>
and Bond Developing Cap Mid-Cap Quality Cap
Income Debenture Growth Research Value Bond Stock
----------- ---------- ----------- ----------- ----------- -------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 4,145 11,106 - 311 209 12 1
Expenses:
Mortality and expense risk - - - - - - -
----------- ---------- ----------- ----------- ----------- -------- ----------
Net investment income (loss) 4,145 11,106 - 311 209 12 1
----------- ---------- ----------- ----------- ----------- -------- ----------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of fund
shares 69 40 - 59 14 - 3,319
Realized gain distributions 5,756 - 10 11,177 444 - 4,940
<PAGE>
----------- ---------- ----------- ----------- ----------- -------- ----------
Net realized gain (loss) 5,825 40 10 11,236 458 - 8,259
----------- ---------- ----------- ----------- ----------- -------- ----------
Change in unrealized appreciation (9,315) (8,722) (28) (17,226) 10,050 (7) (5,881)
----------- ---------- ----------- ----------- ----------- -------- ----------
Net increase (decrease) in net
assets from operations $ 655 2,424 (18) (5,679) 10,717 5 2,379
=========== ========== =========== =========== =========== ======== ==========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Cova GACC Russell
-------------------------------------- ----------- ----------------------------------
Large Multi-
Cap Select International Money Style Aggressive
Stock Equity Equity Market Equity Equity Non-US
----------- --------- -------------- ----------- ---------- ----------- ---------
<PAGE>
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ 3,286 1,074 667 - - - -
Expenses:
Mortality and expense risk - - - - - - -
----------- --------- -------------- ----------- ---------- ----------- ---------
Net investment income (loss) 3,286 1,074 667 - - - -
----------- --------- -------------- ----------- ---------- ----------- ---------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of fund
shares (226) (914) 122 6,755 - - -
Realized gain distributions 40,933 14,402 9,711 - - - -
----------- --------- -------------- ----------- ---------- ----------- ---------
Net realized gain (loss) 40,707 13,488 9,833 6,755 - - -
----------- --------- -------------- ----------- ---------- ----------- ---------
Change in unrealized appreciation (50,826) (14,915) (16,819) (3,710) (2) (1) 1
----------- --------- -------------- ----------- ---------- ----------- ---------
Net increase (decrease) in net
assets from operations $ (6,833) (353) (6,319) 3,045 (2) (1) 1
<PAGE>
=========== ========= ============== =========== ========== =========== =========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Russell AIM Alliance
--------------------- --------------------------------------- -----------------------
Real V.I. V.I. Real
Core Estate V.I. Capital International Premier Estate
Bond Securities Value Appreciation Equity Growth Investment
-------- ----------- -------- -------------- -------------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
<PAGE>
Dividends $ - - - - - - -
Expenses:
Mortality and expense risk - - - - - - -
-------- ----------- -------- -------------- -------------- --------- ------------
Net investment income (loss) - - - - - - -
-------- ----------- -------- -------------- -------------- --------- ------------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of fund
shares - - 68 99 - - -
Realized gain distributions - - - - - 5 4
-------- ----------- -------- -------------- -------------- --------- ------------
Net realized gain (loss) - - 68 99 - 5 4
-------- ----------- -------- -------------- -------------- --------- ------------
Change in unrealized appreciation 2 3 (638) 2,665 (6) (7) -
-------- ----------- -------- -------------- -------------- --------- ------------
Net increase (decrease) in net
assets from operations $ 2 3 (570) 2,764 (6) (2) 4
======== =========== ======== ============== ============== ========= ============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<PAGE>
<TABLE>
<CAPTION>
Liberty Goldman Sachs Kemper
----------- --------------------------------------- ----------------------------------
Newport
Tiger Growth Small Small
Fund and International Global Cap Cap Government
Variable Income Equity Income Growth Value Securities
----------- --------- --------------- ----------- -------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ - - - - - - -
Expenses:
Mortality and expense risk - - - - - - -
<PAGE>
----------- --------- --------------- ----------- -------- --------- -------------
Net investment income (loss) - - - - - - -
----------- --------- --------------- ----------- -------- --------- -------------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of fund
shares - - - - - - -
Realized gain distributions - - - - - - -
----------- --------- --------------- ----------- -------- --------- -------------
Net realized gain (loss) - - - - - - -
----------- --------- --------------- ----------- -------- --------- -------------
Change in unrealized appreciation 4 - - 1 3 (1) 2
----------- --------- --------------- ----------- -------- --------- -------------
Net increase (decrease) in net
assets from operations $ 4 - - 1 3 (1) 2
=========== ========= =============== =========== ======== ========= =============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
MFS Oppenheimer
------------------------------------------------------------ --------------------------
Main Street
Growth Growth
<PAGE>
and Emerging High Global Capital &
Research Income Growth Income Governments Appreciation Income
---------- --------- ----------- -------- -------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ - - - - - - -
Expenses:
Mortality and expense risk - - - - - - -
---------- --------- ----------- -------- -------------- ------------- -----------
Net investment income (loss) - - - - - - -
<PAGE>
---------- --------- ----------- -------- -------------- ------------- -----------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of fund
shares - - - - - - -
Realized gain distributions - - - - - - -
---------- --------- ----------- -------- -------------- ------------- -----------
Net realized gain (loss) - - - - - - -
---------- --------- ----------- -------- -------------- ------------- -----------
Change in unrealized appreciation 1 - (2) - 2 (1) (1)
---------- --------- ----------- -------- -------------- ------------- -----------
Net increase (decrease) in net
assets from operations $ 1 - (2) - 2 (1) (1)
========== ========= =========== ======== ============== ============= ===========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Oppenheimer Putnam
----------------------------------- ---------------------------------------------------
VT
Growth VT VT
High Strategic and New VT International
Income Bond Bond Income Value Vista Growth
----------- --------- ----------- ----------- ----------- --------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ - - - - - - -
Expenses:
Mortality and expense risk - - - - - - -
<PAGE>
----------- --------- ----------- ----------- ----------- --------- --------------
Net investment income (loss) - - - - - - -
----------- --------- ----------- ----------- ----------- --------- --------------
Net realized gain (loss) on investments:
<PAGE>
Realized gain (loss) on sale of fund
shares - - - - - - -
Realized gain distributions - - - - - - -
----------- --------- ----------- ----------- ----------- --------- --------------
Net realized gain (loss) - - - - - - -
----------- --------- ----------- ----------- ----------- --------- --------------
Change in unrealized appreciation 1 2 2 (2) 1 2 2
----------- --------- ----------- ----------- ----------- --------- --------------
Net increase (decrease) in net
assets from operations $ 1 2 2 (2) 1 2 2
=========== ========= =========== =========== =========== ========= ==============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Putnam Templeton
--------------- ------------------------------------------------------------------------
VT
International Global Franklin Developing Mutual
New Income Small Growth International Markets Shares
Opportunities Securities Cap Securities Securities Securities Securities
--------------- ---------- -------- --------- ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Dividends $ - 6 37 443 2 - -
Expenses:
Mortality and expense risk - - - - - - -
--------------- ---------- -------- --------- ------------- ----------- -----------
Net investment income (loss) - 6 37 443 2 - -
--------------- ---------- -------- --------- ------------- ----------- -----------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of fund
shares - - (10) (38) - - -
Realized gain distributions - - 28 8,360 13 - -
--------------- ---------- -------- --------- ------------- ----------- -----------
<PAGE>
<PAGE>
Net realized gain (loss) - - 18 8,322 13 - -
--------------- ---------- -------- --------- ------------- ----------- -----------
Change in unrealized appreciation (8) (5) (1,286) (5,721) (8) (1) (1)
--------------- ---------- -------- --------- ------------- ----------- -----------
Net increase (decrease) in net
assets from operations $ (8) 1 (1,231) 3,044 7 (1) (1)
=============== ========== ======== ========= ============= =========== ===========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Templeton
-------------------
Franklin
Large Cap
Growth
Securities Total
------------------- -------------------
<S> <C> <C>
Investment income:
Dividends $ 1 21,300
Expenses:
Mortality and expense risk - -
------------------- -------------------
Net investment income (loss) 1 21,300
------------------- -------------------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of fund
shares - 9,357
Realized gain distributions 7 95,790
------------------- -------------------
Net realized gain (loss) 7 105,147
------------------- -------------------
Change in unrealized appreciation 7 (122,389)
------------------- -------------------
Net increase (decrease) in net
assets from operations $ 15 4,058
<PAGE>
<PAGE>
=================== ===================
See accompanying notes to financial statements.
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Cova
---------------------------------------------------------------------------------------
Lord Abbett
Growth Large Small
and Bond Developing Cap Mid-Cap Quality Cap
Income Debenture Growth Research Value Bond Stock
---------- ----------- ----------- ----------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) $ 4,145 11,106 - 311 209 12 1
Net realized gain (loss) 5,825 40 10 11,236 458 - 8,259
Change in unrealized appreciation (9,315) (8,722) (28) (17,226) 10,050 (7) (5,881)
---------- ----------- ----------- ----------- ---------- ----------- -----------
Net increase (decrease) from
operations 655 2,424 (18) (5,679) 10,717 5 2,379
---------- ----------- ----------- ----------- ---------- ----------- -----------
Contract transactions:
Cova payments 100 100 100 100 100 100 100
Cova redemptions - - - - - - -
Payments received from contract
owners - - - - - - -
Transfers between sub-accounts, net 133,258 59,351 - 14,939 - - (7,279)
Transfers for contract benefits,
terminations and insurance charges (3,610) (1,757) - (1,376) (766) - (1,508)
---------- ----------- ----------- ----------- ---------- ----------- -----------
Net increase (decrease) in net
assets from contract
transactions 129,748 57,694 100 13,663 (666) 100 (8,687)
---------- ----------- ----------- ----------- ---------- ----------- -----------
<PAGE>
Net increase (decrease) in net
assets 130,403 60,118 82 7,984 10,051 105 (6,308)
<PAGE>
Net assets at beginning of period 214,245 108,696 113 117,113 60,745 100 131,374
---------- ----------- ----------- ----------- ---------- ----------- -----------
Net assets at end of period $ 344,648 168,814 195 125,097 70,796 205 125,066
========== =========== =========== =========== ========== =========== ===========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Cova GACC Russell
------------------------------------- ----------- ----------------------------------
Large Multi-
Cap Select International Money Style Aggressive
Stock Equity Equity Market Equity Equity Non-US
---------- ---------- ------------- ----------- ----------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) $ 3,286 1,074 667 - - - -
Net realized gain (loss) 40,707 13,488 9,833 6,755 - - -
Change in unrealized appreciation (50,826) (14,915) (16,819) (3,710) (2) (1) 1
---------- ---------- ------------- ----------- ----------- ----------- --------
Net increase (decrease) from
operations (6,833) (353) (6,319) 3,045 (2) (1) 1
---------- ---------- ------------- ----------- ----------- ----------- --------
Contract transactions:
Cova payments 100 100 100 - 100 100 100
Cova redemptions - - - - - - -
Payments received from contract
owners - - - 263,402 - - -
Transfers between sub-accounts, net 94,947 81,529 43,904 (580,983) - - -
Transfers for contract benefits,
terminations and insurance charges (5,938) (2,264) (1,745) (1,580) - - -
---------- ---------- ------------- ----------- ----------- ----------- --------
Net increase (decrease) in net
assets from contract
<PAGE>
transactions 89,109 79,365 42,259 (319,161) 100 100 100
---------- ---------- ------------- ----------- ----------- ----------- --------
Net increase (decrease) in net
assets 82,276 79,012 35,940 (316,116) 98 99 101
Net assets at beginning of period 450,417 139,209 121,140 317,557 - - -
<PAGE>
---------- ---------- ------------- ----------- ----------- ----------- --------
Net assets at end of period $ 532,693 218,221 157,080 1,441 98 99 101
========== ========== ============= =========== =========== =========== ========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Russell AIM Alliance
--------------------- --------------------------------------- -------------------------
Real V.I. V.I. Real
Core Estate V.I. Capital International Premier Estate
Bond Securities Value Appreciation Equity Growth Investment
--------- ----------- --------- ------------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) $ - - - - - - -
Net realized gain (loss) - - 68 99 - 5 4
Change in unrealized appreciation 2 3 (638) 2,665 (6) (7) -
--------- ----------- --------- ------------- ------------- ----------- ------------
Net increase (decrease) from
operations 2 3 (570) 2,764 (6) (2) 4
--------- ----------- --------- ------------- ------------- ----------- ------------
Contract transactions:
Cova payments 100 100 100 100 200 100 100
Cova redemptions - - - - - - -
Payments received from contract
owners - - - - - - -
Transfers between sub-accounts, net - - 101,401 11,823 - - -
Transfers for contract benefits,
terminations and insurance charges - - (1,640) (426) - - -
<PAGE>
--------- ----------- --------- ------------- ------------- ----------- ------------
Net increase (decrease) in net
assets from contract
transactions 100 100 99,861 11,497 200 100 100
--------- ----------- --------- ------------- ------------- ----------- ------------
Net increase (decrease) in net
assets 102 103 99,291 14,261 194 98 104
Net assets at beginning of period - - 63,660 27,171 - - -
--------- ----------- --------- ------------- ------------- ----------- ------------
<PAGE>
Net assets at end of period $ 102 103 162,951 41,432 194 98 104
========= =========== ========= ============= ============= =========== ============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Liberty Goldman Sachs Kemper
----------- ------------------------------------ -----------------------------------
Newport
Tiger Growth Small Small
Fund and International Global Cap Cap Government
Variable Income Equity Income Growth Value Securities
----------- ----------- ------------- -------- ---------- -------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) $ - - - - - - -
Net realized gain (loss) - - - - - - -
Change in unrealized appreciation 4 - - 1 3 (1) 2
----------- ----------- ------------- -------- ---------- -------- -------------
Net increase (decrease) from
operations 4 - - 1 3 (1) 2
----------- ----------- ------------- -------- ---------- -------- -------------
Contract transactions:
Cova payments 100 100 100 100 100 100 100
Cova redemptions - - - - - - -
<PAGE>
Payments received from contract
owners - - - - - - -
Transfers between sub-accounts, net - - - - - - -
Transfers for contract benefits,
terminations and insurance charges - - - - - - -
----------- ----------- ------------- -------- ---------- -------- -------------
Net increase (decrease) in net
assets from contract
transactions 100 100 100 100 100 100 100
----------- ----------- ------------- -------- ---------- -------- -------------
Net increase (decrease) in net
assets 104 100 100 101 103 99 102
Net assets at beginning of period - - - - - - -
<PAGE>
----------- ----------- ------------- -------- ---------- -------- -------------
Net assets at end of period $ 104 100 100 101 103 99 102
=========== =========== ============= ======== ========== ======== =============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
MFS Oppenheimer
------------------------------------------------------------ -------------------------
Main Street
Growth Growth
and Emerging High Global Capital &
Research Income Growth Income Governments Appreciation Income
--------- ----------- ----------- -------- ------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) $ - - - - - - -
Net realized gain (loss) - - - - - - -
Change in unrealized appreciation 1 - (2) - 2 (1) (1)
--------- ----------- ----------- -------- ------------- ------------ -----------
Net increase (decrease) from
operations 1 - (2) - 2 (1) (1)
--------- ----------- ----------- -------- ------------- ------------ -----------
<PAGE>
Contract transactions:
Cova payments 100 100 100 100 100 100 100
Cova redemptions - - - - - - -
Payments received from contract
owners - - - - - - -
Transfers between sub-accounts, net - - - - - - -
Transfers for contract benefits,
terminations and insurance charges - - - - - - -
--------- ----------- ----------- -------- ------------- ------------ -----------
Net increase (decrease) in net
assets from contract
transactions 100 100 100 100 100 100 100
--------- ----------- ----------- -------- ------------- ------------ -----------
Net increase (decrease) in net
assets 101 100 98 100 102 99 99
Net assets at beginning of period - - - - - - -
--------- ----------- ----------- -------- ------------- ------------ -----------
<PAGE>
Net assets at end of period $ 101 100 98 100 102 99 99
========= =========== =========== ======== ============= ============ ===========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Oppenheimer Putnam
-------------------------------- ---------------------------------------------------
VT
Growth VT VT
High Strategic and New VT International
Income Bond Bond Income Value Vista Growth
----------- -------- --------- ----------- ----------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) $ - - - - - - -
Net realized gain (loss) - - - - - - -
Change in unrealized appreciation 1 2 2 (2) 1 2 2
----------- -------- --------- ----------- ----------- ---------- -------------
Net increase (decrease) from
<PAGE>
operations 1 2 2 (2) 1 2 2
----------- -------- --------- ----------- ----------- ---------- -------------
Contract transactions:
Cova payments 100 100 100 100 100 100 100
Cova redemptions - - - - - - -
Payments received from contract
owners - - - - - - -
Transfers between sub-accounts, net - - - - - - -
Transfers for contract benefits,
terminations and insurance charges - - - - - - -
----------- -------- --------- ----------- ----------- ---------- -------------
Net increase (decrease) in net
assets from contract
transactions 100 100 100 100 100 100 100
----------- -------- --------- ----------- ----------- ---------- -------------
Net increase (decrease) in net
assets 101 102 102 98 101 102 102
Net assets at beginning of period - - - - - - -
----------- -------- --------- ----------- ----------- ---------- -------------
Net assets at end of period $ 101 102 102 98 101 102 102
<PAGE>
=========== ======== ========= =========== =========== ========== =============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Putnam Templeton
------------- -------------------------------------------------------------------------
VT
International Global Franklin Developing Mutual
New Income Small Growth International Markets Shares
Opportunities Securities Cap Securities Securities Securities Securities
------------- ----------- --------- ---------- ------------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) $ - 6 37 443 2 - -
Net realized gain (loss) - - 18 8,322 13 - -
<PAGE>
Change in unrealized appreciation (8) (5) (1,286) (5,721) (8) (1) (1)
------------- ----------- --------- ---------- ------------- ----------- ---------
Net increase (decrease) from
operations (8) 1 (1,231) 3,044 7 (1) (1)
------------- ----------- --------- ---------- ------------- ----------- ---------
Contract transactions:
Cova payments 100 - 100 - 100 100 100
Cova redemptions - - - - - - -
Payments received from contract
owners - - - - - - -
Transfers between sub-accounts, net - - 9,596 37,512 - - -
Transfers for contract benefits,
terminations and insurance charges - - (55) (388) - - -
------------- ----------- --------- ---------- ------------- ----------- ---------
Net increase (decrease) in net
assets from contract
transactions 100 - 9,641 37,124 100 100 100
------------- ----------- --------- ---------- ------------- ----------- ---------
Net increase (decrease) in net
assets 92 1 8,410 40,168 107 99 99
Net assets at beginning of period - 100 141 110 108
------------- ----------- --------- ---------- ------------- ----------- ---------
Net assets at end of period $ 92 101 8,551 40,278 215 99 99
============= =========== ========= ========== ============= =========== =========
<PAGE>
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended June 30, 2000
Unaudited
<TABLE>
<CAPTION>
Templeton
------------------
Franklin
Large Cap
Growth
Securities Total
------------------ -----------------
<S> <C> <C>
Increase (decrease) in net assets
from operations:
<PAGE>
Net investment income (loss) $ 1 21,300
Net realized gain (loss) 7 105,147
Change in unrealized appreciation 7 (122,389)
------------------ -----------------
Net increase (decrease) from
operations 15 4,058
------------------ -----------------
Contract transactions:
Cova payments - 4,700
Cova redemptions - -
Payments received from contract
owners - 263,402
Transfers between sub-accounts, net - (2)
Transfers for contract benefits,
terminations and insurance charges - (23,053)
------------------ -----------------
Net increase (decrease) in net
assets from contract
transactions - 245,047
------------------ -----------------
Net increase (decrease) in net
assets 15 249,105
Net assets at beginning of period 123 1,752,122
------------------ -----------------
Net assets at end of period $ 138 2,001,227
================== =================
<PAGE>
See accompanying notes to financial statements.
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended December 31, 1999
<TABLE>
<CAPTION>
Cova
---------------------------------------------------------------------------------------
<PAGE>
Lord Abbett
Growth Large Small
and Bond Developing Cap Mid-Cap Quality Cap
Income Debenture Growth Research Value Bond Stock
----------- ----------- ----------- ----------- --------- ----------- -----------
Investment income:
<S> <C> <C> <C> <C> <C> <C> <C>
Dividends $ - 242 - 156 78 1 213
----------- ----------- ----------- ----------- --------- ----------- -----------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of portfolio
shares (50) 2 - (13) (46) - 77
Realized gain distributions - 78 - - - 1 -
----------- ----------- ----------- ----------- --------- ----------- -----------
Net realized gain (loss) (50) 80 - (13) (46) 1 77
----------- ----------- ----------- ----------- --------- ----------- -----------
Change in unrealized appreciation 6,653 3,004 13 10,559 (3,680) (2) 34,574
----------- ----------- ----------- ----------- --------- ----------- -----------
Net increase (decrease) in net
assets from operations $ 6,603 3,326 13 10,702 (3,648) - 34,864
=========== =========== =========== =========== ========= =========== ===========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended December 31, 1999
<PAGE>
<TABLE>
<CAPTION>
Cova GACC AIM Templeton
----------------------------------- ----------- ----------------------- -----------
Large V.I. Global
Cap Select International Money V.I. Capital Income
Stock Equity Equity Market Value Appreciation Securities
--------- --------- ------------- ----------- -------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
<PAGE>
Dividends $ 329 275 415 - 110 18 -
--------- --------- ------------- ----------- -------- ------------- -----------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of portfolio
shares (116) (167) 31 6,140 6 17 -
Realized gain distributions 7,182 9,317 1,110 - 575 558 -
--------- --------- ------------- ----------- -------- ------------- -----------
Net realized gain (loss) 7,066 9,150 1,141 6,140 581 575 -
--------- --------- ------------- ----------- -------- ------------- -----------
Change in unrealized appreciation 16,032 (10,304) 16,888 3,725 4,069 6,608 -
--------- --------- ------------- ----------- -------- ------------- -----------
Net increase (decrease) in net
assets from operations $ 23,427 (879) 18,444 9,865 4,760 7,201 -
========= ========= ============= =========== ======== ============= ===========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Operations
Period ended December 31, 1999
<TABLE>
<CAPTION>
Templeton
--------------------------------------------------------
Franklin
Franklin Large Cap
Small Growth International Growth
Cap Securities Securities Securities Total
----------- ----------- --------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Investment income:
Dividends $ - - - - 1,837
<PAGE>
----------- ----------- --------------- ------------- -------------
Net realized gain (loss) on investments:
Realized gain (loss) on sale of portfolio
shares - - - - 5,881
Realized gain distributions - - - - 18,821
<PAGE>
-------------
----------- ----------- --------------- ------------- -------------
Net realized gain (loss) - - - - 24,702
----------- ----------- --------------- ------------- -------------
Change in unrealized appreciation 41 10 8 23 88,221
----------- ----------- --------------- ------------- -------------
Net increase (decrease) in net
assets from operations $ 41 10 8 23 114,760
=========== =========== =============== ============= =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended December 31, 1999
<TABLE>
<CAPTION>
Cova
----------------------------------------------------------------------------------------
Lord Abbett
Growth Large Small
and Bond Developing Cap Mid-Cap Quality Cap
Income Debenture Growth Research Value Bond Stock
----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets from
operations:
Investment income $ - 242 - 156 78 1 213
Net realized gain (loss) (50) 80 - (13) (46) 1 77
Change in unrealized appreciation 6,653 3,004 13 10,559 (3,680) (2) 34,574
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) from
operations 6,603 3,326 13 10,702 (3,648) - 34,864
----------- ----------- ----------- ----------- ----------- ----------- -----------
Contract transactions:
Cova payments 100 100 100 100 100 100 100
Cova redemptions - - - - - - -
<PAGE>
Payments received from contract
<PAGE>
owners - - - - - - -
Transfers between sub-accounts, net 209,709 105,997 - 107,473 65,008 - 97,560
Transfers for contract benefits,
terminations and insurance charges (2,167) (727) - (1,162) (715) - (1,150)
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets from contract
transactions 207,642 105,370 100 106,411 64,393 100 96,510
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase (decrease) in net
assets 214,245 108,696 113 117,113 60,745 100 131,374
Net assets at beginning of period - - - - - - -
----------- ----------- ----------- ----------- ----------- ----------- -----------
Net assets at end of period $ 214,245 108,696 113 117,113 60,745 100 131,374
=========== =========== =========== =========== =========== =========== ===========
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended December 31, 1999
<TABLE>
<CAPTION>
Cova GACC AIM Templeton
-------------------------------------- ----------- ------------------------ -------------
Large V.I. Global
Cap Select International Money V.I. Capital Income
Stock Equity Equity Market Value Appreciation Securities
-------- ----------- --------------- ----------- --------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets from
operations:
Investment income $ 329 275 415 - 110 18 -
Net realized gain (loss) 7,066 9,150 1,141 6,140 581 575 -
Change in unrealized appreciation 16,032 (10,304) 16,888 3,725 4,069 6,608 -
-------- ----------- --------------- ----------- --------- ------------- -------------
Net increase (decrease) from
operations 23,427 (879) 18,444 9,865 4,760 7,201 -
-------- ----------- --------------- ----------- --------- ------------- -------------
Contract transactions:
Cova payments 100 100 100 300 100 100 100
Cova redemptions - - - (102) - - -
Payments received from contract
<PAGE>
<PAGE>
owners - - - 1,654,000 - - -
Transfers between sub-accounts, net 430,747 141,193 103,808 (1,340,545) 59,046 20,004 -
Transfers for contract benefits,
terminations and insurance charges (3,857) (1,205) (1,212) (5,961) (246) (134) -
-------- ----------- --------------- ----------- --------- ------------- -------------
Net increase (decrease) in net
assets from contract
transactions 426,990 140,088 102,696 307,692 58,900 19,970 100
-------- ----------- --------------- ----------- --------- ------------- -------------
Net increase (decrease) in net
assets 450,417 139,209 121,140 317,557 63,660 27,171 100
Net assets at beginning of period - - - - - - -
-------- ----------- --------------- ----------- --------- ------------- -------------
Net assets at end of period $450,417 139,209 121,140 317,557 63,660 27,171 100
======== =========== =============== =========== ========= ============= =============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Statement of Changes in Net Assets
Period ended December 31, 1999
<TABLE>
<CAPTION>
Templeton
--------------------------------------------------------
Franklin
Franklin Large Cap
Small Growth International Growth
Cap Securities Securities Securities Total
----------- ----------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in net assets from
operations:
Investment income $ - - - - 1,837
Net realized gain (loss) - - - - 24,702
Change in unrealized appreciation 41 10 8 23 88,221
----------- ----------- -------------- -------------- -------------
Net increase (decrease) from
operations 41 10 8 23 114,760
----------- ----------- -------------- -------------- -------------
Contract transactions:
Cova payments 100 100 100 100 2,000
<PAGE>
Cova redemptions - - - - (102)
Payments received from contract
owners - - - - 1,654,000
<PAGE>
Transfers between sub-accounts, net - - - - -
Transfers for contract benefits,
terminations and insurance charges - - - - (18,536)
----------- ----------- -------------- -------------- -------------
Net increase (decrease) in net
assets from contract
transactions 100 100 100 100 1,637,362
----------- ----------- -------------- -------------- -------------
Net increase (decrease) in net
assets 141 110 108 123 1,752,122
Net assets at beginning of period - - - - -
----------- ----------- -------------- -------------- -------------
Net assets at end of period $ 141 110 108 123 1,752,122
=========== =========== ============== ============== =============
See accompanying notes to financial statements.
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
(1) ORGANIZATION
Cova Variable Life Account Five (the Separate Account), a unit investment
trust registered under the Investment Company Act of 1940 as amended, was
established by Cova Financial Life Insurance Company (CFLIC) and exists in
accordance with the regulations of the California Department of Insurance.
The Separate Account is a funding vehicle for variable life insurance
policies issued by CFLIC.
The Separate Account is divided into sub-accounts with the assets of each
sub-account invested in corresponding portfolios of the following
investment companies. Each investment company is a diversified, open-end,
management investment company registered under the Investment Company Act
of 1940 as amended. The sub-accounts available for investment may vary
between variable life insurance policies offered for sale by CFLIC.
<PAGE>
<TABLE>
<S> <C>
Cova Series Trust (Trust) 10 portfolios
General American Capital Company (GACC) 1 portfolio
Russell Insurance Funds (Russell) 5 portfolios
AIM Variable Insurance Funds, Inc. (AIM) 3 portfolios
Alliance Variable Products Series Fund, Inc. (Alliance) 2 portfolios
Liberty Variable Investment Trust (Liberty) 1 portfolio
<PAGE>
Goldman Sachs Variable Insurance Trust (Goldman Sachs) 3 portfolios
Kemper Variable Series (Kemper) 3 portfolios
MFS Variable Insurance Trust (MFS) 5 portfolios
Oppenheimer Variable Account Funds (Oppenheimer) 5 portfolios
Putnam Variable Trust (Putnam) 5 portfolios
Franklin Templeton Variable Insurance Products
Trust (Templeton) 7 portfolios
</TABLE>
(2) SIGNIFICANT ACCOUNTING POLICIES
(A) INVESTMENT VALUATION
Investments made in the portfolios of the investment companies are
valued at the reported net asset value of such portfolios, which value
their investment securities at fair value. The average cost method is
used to compute the realized gains and losses on the sale of portfolio
shares owned by the sub-accounts. Income from dividends and gains from
realized capital gain distributions are recorded on the
ex-distribution date.
(B) REINVESTMENT OF DISTRIBUTIONS
With the exception of the GACC Money Market Fund, dividends and gains
from realized gain distributions are reinvested in additional shares
of the portfolio.
GACC follows the Federal income tax practice known as consent
dividending, whereby substantially all of its net investment income
and realized capital gains are deemed to pass through to the Separate
Account. As a result, GACC does not distribute dividends and realized
capital gains. During December of each year, the accumulated net
investment income and realized capital gains of the GACC Money Market
Fund are allocated to the Separate Account by increasing the cost
basis and recognizing a gain in the Separate Account.
(C) FEDERAL INCOME TAXES
The operations of the Separate Account are included in the federal
income tax return of CFLIC which is taxed as a Life Insurance Company
under the provisions of the Internal Revenue Code (IRC). Under current
<PAGE>
IRC provisions, CFLIC believes it will be treated as the owner of the
Separate Account assets for federal income tax purposes and does not
expect to incur federal income taxes on the earnings of the Separate
Account to the extent the earnings are credited to the variable life
insurance policies. Based on this, no charge has been made to the
Separate Account for federal income taxes. A charge may be made in
future years for federal income taxes that would be attributable to
the variable life insurance policies.
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<PAGE>
(3) SEPARATE ACCOUNT EXPENSES
For flexible premium variable universal life policies, CFLIC deducts a
daily charge from the net assets of the Separate Account sub-accounts for
the assumption of mortality and expense risks. The daily charge is
equivalent on an annual basis to 0.55% for the first 10 policy years,
0.45% for policy years 11-20 and 0.35% thereafter.
(4) CONTRACT CHARGES AND FEES
There are contract charges and fees associated with the variable life
insurance policies CFLIC deducts from the policy account value that reduce
the return on investment. CFLIC sells single premium variable life (SPVL)
and flexible premium variable universal life (FPVL) policies and the
contract charges and fees vary.
The insurance charges for SPVL policies include mortality and expense
risk, administrative, tax expense and cost of insurance. These charges are
deducted from the policy account value on a monthly basis. Withdrawals
during the first 10 years may be subject to a contingent deferred sales
charge. In addition, CFLIC deducts a deferred premium tax charge on
premium surrendered during the first 10 years. CFLIC charges a $30 annual
contract maintenance fee on policies with values less than $50,000.
Subject to certain restrictions, policy owners may transfer accumulated
value between the available Separate Account sub-accounts. CFLIC deducts a
transfer fee on each transfer in excess of twelve transfers during a
policy year. Transfers made in a dollar cost averaging program are not
subject to the transfer fee. The insurance charges and fees are explained
in the product prospectus.
The insurance charges for FPVL policies include tax expense, selection and
<PAGE>
expense, monthly policy charge, cost of insurance and the charges for
additional benefit riders. These charges are deducted from the policy
account value on a monthly basis. CFLIC deducts a sales charge from each
premium payment. In addition, CFLIC will deduct a contingent deferred
sales charge during the first 10 years if certain conditions occur.
Subject to certain restrictions, policy owners may transfer or withdraw
accumulated value between the available Separate Account sub-accounts and
the General Account. CFLIC deducts a fee on each transfer or withdrawal in
excess of twelve transfers and withdrawals during a policy year. The
insurance charges and fees are explained in the product prospectus.
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<PAGE>
<TABLE>
<CAPTION>
(5) COST BASIS OF INVESTMENTS
The cost basis of each sub-account's investment follows:
<S> <C> <C> <C>
Cova Lord Abbett Growth and Income $ 347,310 Kemper Small Cap Growth $ 100
Cova Bond Debenture 174,532 Kemper Small Cap Value 100
Cova Developing Growth 210 Kemper Government Securities 100
Cova Large Cap Research 131,764 MFS Research 100
Cova Mid-Cap Value 64,426 MFS Growth with Income 100
Cova Quality Bond 214 MFS Emerging Growth 100
Cova Small Cap Stock 96,373 MFS High Income 100
Cova Large Cap Stock 567,487 MFS Global Governments 100
Cova Select Equity 243,440 Oppenheimer Capital Appreciation 100
Cova International Equity 157,011 Oppenheimer Main Street Growth & Income 100
GACC Money Market 1,426 Oppenheimer High Income 100
Russell Multi-Style Equity 100 Oppenheimer Bond 100
Russell Aggressive Equity 100 Oppenheimer Strategic Bond 100
Russell Non-US 100 Putnam VT Growth and Income 100
Russell Core Bond 100 Putnam VT New Value 100
Russell Real Estate Securities 100 Putnam VT Vista 100
AIM V.I. Value 159,520 Putnam VT International Growth 100
AIM V.I. Capital Appreciation 32,159 Putnam VT International New Opportunities 100
AIM V.I. International Equity 200 Templeton Global Income Securities 106
<PAGE>
Alliance Premier Growth 105 Franklin Small Cap 9,796
Alliance Real Estate Investment 104 Templeton Growth Securities 45,989
Liberty Newport Tiger Fund, Variable 100 Templeton International Securities 215
Goldman Sachs Growth and Income 100 Templeton Developing Markets Securities 100
Goldman Sachs International Equity 100 Templeton Mutual Shares Securities 100
Goldman Sachs Global Income 100 Franklin Large Cap Growth Securities 108
------------
$ 2,035,395
============
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(6) UNIT FAIR VALUE
Sub-account
Commenced Accumulation Unit Value
--------------------------
Operations 6/30/00 12/31/99
<PAGE>
------------ ----------- -----------
Single premium variable life policies (SPVL):
<S> <C> <C> <C>
Cova Lord Abbett Growth and Income 04/29/99 12.178101 12.448204
Cova Bond Debenture 04/29/99 10.765079 10.614338
Cova Developing Growth 07/17/99 11.720493 13.050371
Cova Large Cap Research 07/12/99 13.113251 13.771430
Cova Mid-Cap Value 07/12/99 11.915384 10.119059
Cova Quality Bond 07/19/99 10.935050 10.551764
Cova Small Cap Stock 04/29/99 12.954078 12.850204
Cova Large Cap Stock 04/29/99 13.975272 14.283064
Cova Select Equity 06/29/99 12.473352 12.600289
Cova International Equity 05/04/99 13.021727 13.571289
GACC Money Market 03/01/99 11.351072 11.013039
AIM V.I. Value 05/03/99 11.742562 11.774189
AIM V.I. Capital Appreciation 05/03/99 15.072152 13.925402
AIM V.I. International Equity 05/01/00 9.699112 -
Templeton Global Income Securities 07/19/99 10.078554 9.970060
Franklin Small Cap 07/19/99 14.756923 14.136079
<PAGE>
Templeton Growth Securities 07/19/99 11.398217 11.011283
Templeton International Securities 07/19/99 10.889422 10.827249
Franklin Large Cap Growth Securities 07/19/99 13.758849 12.333825
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(6) UNIT FAIR VALUE
Sub-account Sub-account
Accumulation Unit Accumulation Unit
Commenced Net Assets (in thousands) Total Return
-------------------------- -------------------------
Operations 6/30/00 12/31/99 6/30/00 12/31/99
------------ ------------ ------------ ----------- -----------
Single premium variable life policies (SPVL):
<S> <C> <C> <C> <C> <C>
Cova Lord Abbett Growth and Income 04/29/99 345 - -2.17% 4.60%
Cova Bond Debenture 04/29/99 169 - 1.42% 0.70%
Cova Developing Growth 07/17/99 - - -10.19% 12.75%
Cova Large Cap Research 07/12/99 125 - -4.78% 9.95%
Cova Mid-Cap Value 07/12/99 71 - 17.75% -5.60%
Cova Quality Bond 07/19/99 - - 3.63% -0.23%
Cova Small Cap Stock 04/29/99 125 - 0.81% 44.89%
Cova Large Cap Stock 04/29/99 533 - -2.15% 6.90%
<PAGE>
Cova Select Equity 06/29/99 218 - -1.01% -0.35%
Cova International Equity 05/04/99 157 - -4.05% 20.84%
GACC Money Market 03/01/99 1 - 3.07% 4.34%
AIM V.I. Value 05/03/99 163 - -0.27% 17.74%
AIM V.I. Capital Appreciation 05/03/99 41 - 8.23% 28.36%
AIM V.I. International Equity 05/01/00 - - -3.01% -
Templeton Global Income Securities 07/19/99 - - 1.09% -0.30%
Franklin Small Cap 07/19/99 8 - 4.39% 41.36%
Templeton Growth Securities 07/19/99 40 - 3.51% 10.11%
Templeton International Securities 07/19/99 - - 0.57% 8.27%
Franklin Large Cap Growth Securities 07/19/99 - - 11.55% 23.34%
</TABLE>
<PAGE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(6) UNIT FAIR VALUE, CONTINUED
Sub-account
Commenced Accumulation Unit Value
------------------------
Operations 6/30/00 12/31/99
------------ ----------- -----------
Flexible premium variable universal life policies (FPVL):
<S> <C> <C> <C>
Cova Lord Abbett Growth and Income 05/01/00 9.723262 -
Cova Bond Debenture 05/01/00 10.060863 -
Cova Developing Growth 05/01/00 9.585406 -
Cova Large Cap Research 05/01/00 9.746632 -
Cova Mid-Cap Value 05/01/00 10.306919 -
Cova Quality Bond 05/01/00 10.174491 -
Cova Small Cap Stock 05/01/00 10.401447 -
Cova Large Cap Stock 05/01/00 9.746632 -
Cova Select Equity 05/01/00 9.862256 -
Cova International Equity 05/01/00 9.992277 -
GACC Money Market 11/29/99 10.327135 10.047103
Russell Multi-Style Equity 05/01/00 9.839318 -
Russell Aggressive Equity 05/01/00 9.924708 -
Russell Non-US 05/01/00 10.044600 -
Russell Core Bond 05/01/00 10.187476 -
Russell Real Estate Securities 05/01/00 10.276129 -
AIM V.I. Value 05/01/00 9.424010 -
AIM V.I. Capital Appreciation 05/01/00 10.194834 -
AIM V.I. International Equity 05/01/00 9.690339 -
<PAGE>
Alliance Premier Growth 05/01/00 9.805973 -
Alliance Real Estate Investment 05/01/00 10.380389 -
Liberty Newport Tiger Fund, Variable 05/01/00 10.430572 -
Goldman Sachs Growth and Income 05/01/00 9.963734 -
Goldman Sachs International Equity 05/01/00 9.990964 -
Goldman Sachs Global Income 05/01/00 10.110501 -
Kemper Small Cap Growth 05/01/00 10.313208 -
Kemper Small Cap Value 05/01/00 9.863794 -
Kemper Government Securities 05/01/00 10.200453 -
<PAGE>
MFS Research 05/01/00 10.042841 -
MFS Growth with Income 05/01/00 10.009910 -
MFS Emerging Growth 05/01/00 9.809074 -
MFS High Income 05/01/00 10.000426 -
MFS Global Governments 05/01/00 10.223319 -
Oppenheimer Capital Appreciation 05/01/00 9.938508 -
Oppenheimer Main Street Growth & Income 05/01/00 9.935662 -
Oppenheimer High Income 05/01/00 10.085815 -
Oppenheimer Bond 05/01/00 10.179298 -
Oppenheimer Strategic Bond 05/01/00 10.143666 -
Putnam VT Growth and Income 05/01/00 9.784413 -
Putnam VT New Value 05/01/00 10.088674 -
Putnam VT Vista 05/01/00 10.161851 -
Putnam VT International Growth 05/01/00 10.187588 -
Putnam VT International New Opportunities 05/01/00 9.160794 -
Franklin Small Cap 05/01/00 10.489358 -
Templeton International Securities 05/01/00 10.594502 -
Templeton Developing Markets Securities 05/01/00 9.852198 -
Templeton Mutual Shares Securities 05/01/00 9.866570 -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(6) UNIT FAIR VALUE, CONTINUED
Sub-account Sub-account
Accumulation Unit Accumulation Unit
Commenced Net Assets (in thousands) Total Return
-------------------------- -------------------------
Operations 6/30/00 12/31/99 6/30/00 12/31/99
------------ ------------ ------------ ----------- -----------
Flexible premium variable universal life policies (FPVL):
<S> <C> <C> <C> <C> <C>
Cova Lord Abbett Growth and Income 05/01/00 - - -2.77% -
Cova Bond Debenture 05/01/00 - - 0.61% -
<PAGE>
Cova Developing Growth 05/01/00 - - -4.15% -
Cova Large Cap Research 05/01/00 - - -2.53% -
Cova Mid-Cap Value 05/01/00 - - 3.07% -
<PAGE>
Cova Quality Bond 05/01/00 - - 1.74% -
Cova Small Cap Stock 05/01/00 - - 4.01% -
Cova Large Cap Stock 05/01/00 - - -2.53% -
Cova Select Equity 05/01/00 - - -1.38% -
Cova International Equity 05/01/00 - - -0.08% -
GACC Money Market 11/29/99 - - 2.79% 0.47%
Russell Multi-Style Equity 05/01/00 - - -1.61% -
Russell Aggressive Equity 05/01/00 - - -0.75% -
Russell Non-US 05/01/00 - - 0.45% -
Russell Core Bond 05/01/00 - - 1.87% -
Russell Real Estate Securities 05/01/00 - - 2.76% -
AIM V.I. Value 05/01/00 - - -5.76% -
AIM V.I. Capital Appreciation 05/01/00 - - 1.95% -
AIM V.I. International Equity 05/01/00 - - -3.10% -
Alliance Premier Growth 05/01/00 - - -1.94% -
Alliance Real Estate Investment 05/01/00 - - 3.80% -
Liberty Newport Tiger Fund, Variable 05/01/00 - - 4.31% -
Goldman Sachs Growth and Income 05/01/00 - - -0.36% -
Goldman Sachs International Equity 05/01/00 - - -0.09% -
Goldman Sachs Global Income 05/01/00 - - 1.11% -
Kemper Small Cap Growth 05/01/00 - - 3.13% -
Kemper Small Cap Value 05/01/00 - - -1.36% -
Kemper Government Securities 05/01/00 - - 2.00% -
MFS Research 05/01/00 - - 0.43% -
MFS Growth with Income 05/01/00 - - 0.10% -
MFS Emerging Growth 05/01/00 - - -1.91% -
MFS High Income 05/01/00 - - 0.00% -
MFS Global Governments 05/01/00 - - 2.23% -
Oppenheimer Capital Appreciation 05/01/00 - - -0.61% -
Oppenheimer Main Street Growth & Income 05/01/00 - - -0.64% -
Oppenheimer High Income 05/01/00 - - 0.86% -
Oppenheimer Bond 05/01/00 - - 1.79% -
Oppenheimer Strategic Bond 05/01/00 - - 1.44% -
Putnam VT Growth and Income 05/01/00 - - -2.16% -
Putnam VT New Value 05/01/00 - - 0.89% -
Putnam VT Vista 05/01/00 - - 1.62% -
Putnam VT International Growth 05/01/00 - - 1.88% -
Putnam VT International New Opportunities 05/01/00 - - -8.39% -
Franklin Small Cap 05/01/00 - - 4.89% -
Templeton International Securities 05/01/00 - - 5.95% -
Templeton Developing Markets Securities 05/01/00 - - -1.48% -
Templeton Mutual Shares Securities 05/01/00 - - -1.33% -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
(7) REALIZED GAIN (LOSS) AND CHANGE IN UNREALIZED APPRECIATION The realized
gain (loss) on the sale of fund shares and the change in unrealized
appreciation for each sub-account during the period ending June 30, 2000
and the year ending December 31, 1999 follows:
Realized Gain (Loss)
---------------------------------------------------------------------
Aggregate Aggregate Cost
Year or Proceeds from Sales of Portfolio Shares Realized
Period of Portfolio Shares Redeemed Gain (Loss)
----------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Cova Lord Abbett Growth and Income 2000 $ 3,084 $ 3,015 $ 69
1999 1,940 1,990 (50)
Cova Bond Debenture 2000 1,700 1,660 40
1999 727 725 2
Cova Developing Growth 2000 - - -
1999 - - -
Cova Large Cap Research 2000 1,352 1,293 59
1999 1,159 1,172 (13)
Cova Mid-Cap Value 2000 766 752 14
1999 715 761 (46)
Cova Quality Bond 2000 - - -
1999 - - -
Cova Small Cap Stock 2000 8,765 5,446 3,319
1999 1,150 1,073 77
Cova Large Cap Stock 2000 15,871 16,097 (226)
1999 3,539 3,655 (116)
Cova Select Equity 2000 10,975 11,889 (914)
1999 1,195 1,362 (167)
Cova International Equity 2000 1,490 1,368 122
1999 1,062 1,031 31
GACC Money Market 2000 581,894 575,139 6,755
1999 1,342,862 1,336,722 6,140
<PAGE>
Russell Multi-Style Equity 2000 - - -
1999 - - -
<PAGE>
Russell Aggressive Equity 2000 - - -
1999 - - -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(7) REALIZED GAIN (LOSS), CONTINUED:
Realized Gain (Loss)
---------------------------------------------------------------------
Aggregate Aggregate Cost
Year or Proceeds from Sales of Fund Shares Realized
Period of Fund Shares Redeemed Gain (Loss)
---------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Russell Non-US 2000 $ - $ - $ -
1999 - - -
Russell Core Bond 2000 - - -
1999 - - -
Russell Real Estate Securities 2000 - - -
1999 - - -
AIM V.I. Value 2000 1,640 1,572 68
1999 246 240 6
AIM V.I. Capital Appreciation Fund 2000 426 327 99
1999 134 117 17
AIM V.I. International Equity 2000 - - -
1999 - - -
Alliance Premier Growth 2000 - - -
<PAGE>
1999 - - -
Alliance Real Estate Investment 2000 - - -
1999 - - -
Liberty Newport Tiger Fund, Variable 2000 - - -
1999 - - -
<PAGE>
Goldman Sachs Growth and Income 2000 - - -
1999 - - -
Goldman Sachs International Equity 2000 - - -
1999 - - -
Goldman Sachs Global Income 2000 - - -
1999 - - -
Kemper Small Cap Growth 2000 - - -
1999 - - -
Kemper Small Cap Value 2000 - - -
1999 - - -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(7) REALIZED GAIN (LOSS), CONTINUED:
Realized Gain (Loss)
---------------------------------------------------------------------
Aggregate Aggregate Cost
Year or Proceeds from Sales of Fund Shares Realized
Period of Fund Shares Redeemed Gain (Loss)
---------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Kemper Government Securities 2000 $ - $ - $ -
<PAGE>
1999 - - -
MFS Research 2000 - - -
1999 - - -
MFS Growth with Income 2000 - - -
1999 - - -
MFS Emerging Growth 2000 - - -
1999 - - -
MFS High Income 2000 - - -
1999 - - -
<PAGE>
MFS Global Governments 2000 - - -
1999 - - -
Oppenheimer Capital Appreciation 2000 - - -
1999 - - -
Oppenheimer Main Street Growth & Income 2000 - - -
1999 - - -
Oppenheimer High Income 2000 - - -
1999 - - -
Oppenheimer Bond 2000 - - -
1999 - - -
Oppenheimer Strategic Bond 2000 - - -
1999 - - -
Putnam VT Growth and Income 2000 - - -
1999 - - -
Putnam VT New Value 2000 - - -
1999 - - -
Putnam VT Vista 2000 - - -
1999 - - -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
<PAGE>
Unaudited
<TABLE>
<CAPTION>
(7) REALIZED GAIN (LOSS), CONTINUED:
Realized Gain (Loss)
---------------------------------------------------------------------
Aggregate Aggregate Cost
Year or Proceeds from Sales of Fund Shares Realized
Period of Fund Shares Redeemed Gain (Loss)
---------- ------------------- ------------------- ------------------
<S> <C> <C> <C> <C>
Putnam VT International Growth 2000 $ - $ - $ -
1999 - - -
Putnam VT International New Opportunities 2000 - - -
<PAGE>
1999 - - -
Templeton Global Income Securities 2000 - - -
1999 - - -
Franklin Small Cap 2000 55 65 (10)
1999 - - -
Templeton Growth Securities 2000 388 426 (38)
1999 - - -
Templeton International Securities 2000 - - -
1999 - - -
Templeton Developing Markets Securities 2000 - - -
1999 - - -
Templeton Mutual Shares Securities 2000 - - -
1999 - - -
Franklin Large Cap Growth Securities 2000 - - -
1999 - - -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(7) CHANGE IN UNREALIZED APPRECIATION:
Unrealized Appreciation (Depreciation)
---------------------------------------------------------------------
Appreciation Appreciation
Year or (Depreciation) (Depreciation)
Period End of Period Beginning of Period Change
---------- ------------------- ----------------------- --------------
<S> <C> <C> <C> <C>
Cova Lord Abbett Growth and Income 2000 $ (2,662) $ 6,653 $ (9,315)
1999 6,653 - 6,653
Cova Bond Debenture 2000 (5,718) 3,004 (8,722)
1999 3,004 - 3,004
<PAGE>
Cova Developing Growth 2000 (15) 13 (28)
1999 13 - 13
Cova Large Cap Research 2000 (6,667) 10,559 (17,226)
1999 10,559 - 10,559
Cova Mid-Cap Value 2000 6,370 (3,680) 10,050
1999 (3,680) - (3,680)
Cova Quality Bond 2000 (9) (2) (7)
1999 (2) - (2)
Cova Small Cap Stock 2000 28,693 34,574 (5,881)
1999 34,574 - 34,574
Cova Large Cap Stock 2000 (34,794) 16,032 (50,826)
1999 16,032 - 16,032
Cova Select Equity 2000 (25,219) (10,304) (14,915)
1999 (10,304) - (10,304)
<PAGE>
Cova International Equity 2000 69 16,888 (16,819)
1999 16,888 - 16,888
GACC Money Market 2000 15 3,725 (3,710)
1999 3,725 - 3,725
Russell Multi-Style Equity 2000 (2) - (2)
1999 - - -
Russell Aggressive Equity 2000 (1) - (1)
1999 - - -
Russell Non-US 2000 1 - 1
1999 - - -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(7) CHANGE IN UNREALIZED APPRECIATION, CONTINUED:
Unrealized Appreciation (Depreciation)
---------------------------------------------------------------------
Appreciation Appreciation
Year or (Depreciation) (Depreciation)
<PAGE>
Period End of Period Beginning of Period Change
---------- ------------------- ----------------------- ---------------
<S> <C> <C> <C> <C>
Russell Core Bond 2000 $ 2 $ - $ 2
1999 - - -
Russell Real Estate Securities 2000 3 - 3
1999 - - -
AIM V.I. Value 2000 3,431 4,069 (638)
1999 4,069 - 4,069
AIM V.I. Capital Appreciation Fund 2000 9,273 6,608 2,665
<PAGE>
1999 6,608 - 6,608
AIM V.I. International Equity 2,000 (6) - (6)
1,999 - - -
Alliance Premier Growth 2000 (7) - (7)
1999 - - -
Alliance Real Estate Investment 2000 - - -
1999 - - -
Liberty Newport Tiger Fund, Variable 2000 4 - 4
1999 - - -
Goldman Sachs Growth and Income 2000 - - -
1999 - - -
Goldman Sachs International Equity 2000 - - -
1999 - - -
Goldman Sachs Global Income 2000 1 - 1
1999 - - -
Kemper Small Cap Growth 2000 3 - 3
1999 - - -
Kemper Small Cap Value 2000 (1) - (1)
1999 - - -
Kemper Government Securities 2000 2 - 2
1999 - - -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
<PAGE>
Unaudited
<TABLE>
<CAPTION>
(7) CHANGE IN UNREALIZED APPRECIATION, CONTINUED:
Unrealized Appreciation (Depreciation)
--------------------------------------------------------------------
<PAGE>
Appreciation Appreciation
Year or (Depreciation) (Depreciation)
Period End of Period Beginning of Period Change
----------- ------------------ ----------------------- --------------
<S> <C> <C> <C> <C>
MFS Research 2000 $ 1 $ - $ 1
1999 - - -
MFS Growth with Income 2000 - - -
1999 - - -
MFS Emerging Growth 2000 (2) - (2)
1999 - - -
MFS High Income 2000 - - -
1999 - - -
MFS Global Governments 2000 2 - 2
1999 - - -
Oppenheimer Capital Appreciation 2000 (1) - (1)
1999 - - -
Oppenheimer Main Street Growth & Income 2000 (1) - (1)
1999 - - -
Oppenheimer High Income 2000 1 - 1
1999 - - -
Oppenheimer Bond 2000 2 - 2
1999 - - -
Oppenheimer Strategic Bond 2000 2 - 2
1999 - - -
Putnam VT Growth and Income 2000 (2) - (2)
1999 - - -
Putnam VT New Value 2000 1 - 1
1999 - - -
<PAGE>
Putnam VT Vista 2000 2 - 2
1999 - - -
<PAGE>
Putnam VT International Growth 2000 2 - 2
1999 - - -
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(7) CHANGE IN UNREALIZED APPRECIATION, CONTINUED:
Unrealized Appreciation (Depreciation)
--------------------------------------------------------------------
Appreciation Appreciation
Year or (Depreciation) (Depreciation)
Period End of Period Beginning of Period Change
---------- ------------------ -------------------- ------------------
<S> <C> <C> <C> <C>
Putnam VT International New Opportunities 2000 $ (8) $ - $ (8)
1999 - - -
Templeton Global Income Securities 2000 (5) - (5)
1999 - - -
Franklin Small Cap 2000 (1,245) 41 (1,286)
1999 41 - 41
Templeton Growth Securities 2000 (5,711) 10 (5,721)
1999 10 - 10
Templeton International Securities 2000 - 8 (8)
1999 8 - 8
Templeton Developing Markets Securities 2000 (1) - (1)
1999 - - -
Templeton Mutual Shares Securities 2000 (1) - (1)
1999 - - -
Franklin Large Cap Growth Securities 2000 30 23 7
1999 23 - 23
<PAGE>
<PAGE>
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(8) ACCUMULATION UNITS OUTSTANDING
6/30/00 12/31/99
----------------- -----------------
Single premium variable life policies (SPVL):
<S> <C> <C>
Cova Lord Abbett Growth and Income 28,293 17,211
Cova Bond Debenture 15,672 10,240
Cova Developing Growth 9 9
Cova Large Cap Research 9,532 8,504
Cova Mid-Cap Value 5,933 6,003
Cova Quality Bond 10 9
Cova Small Cap Stock 9,647 10,224
Cova Large Cap Stock 38,110 31,535
Cova Select Equity 17,487 11,048
Cova International Equity 12,055 8,926
GACC Money Market 118 28,826
AIM V.I. Value 13,869 5,407
AIM V.I. Capital Appreciation 2,742 1,951
AIM V.I. International Equity 10 -
Templeton Global Income Securities 10 10
Franklin Small Cap 572 10
Templeton Growth Securities 3,534 10
Templeton International Securities 10 10
Franklin Large Cap Growth Securities 10 10
</TABLE>
<PAGE>
COVA VARIABLE LIFE ACCOUNT FIVE
Notes to Financial Statements
June 30, 2000
Unaudited
<TABLE>
<CAPTION>
(8) ACCUMULATION UNITS OUTSTANDING, CONTINUED:
<PAGE>
6/30/00 12/31/99
----------------- -----------------
Flexible premium variable universal life (FPVL):
<S> <C> <C>
Cova Lord Abbett Growth and Income 10 -
Cova Bond Debenture 10 -
Cova Developing Growth 10 -
Cova Large Cap Research 10 -
Cova Mid-Cap Value 10 -
Cova Quality Bond 10 -
Cova Small Cap Stock 10 -
Cova Large Cap Stock 10 -
Cova Select Equity 10 -
Cova International Equity 10 -
GACC Money Market 10 10
Russell Multi-Style Equity 10 -
Russell Aggressive Equity 10 -
Russell Non-US 10 -
Russell Core Bond 10 -
Russell Real Estate Securities 10 -
AIM V.I. Value 10 -
AIM V.I. Capital Appreciation 10 -
AIM V.I. International Equity 10 -
Alliance Premier Growth 10 -
Alliance Real Estate Investment 10 -
Liberty Newport Tiger Fund, Variable 10 -
Goldman Sachs Growth and Income 10 -
Goldman Sachs International Equity 10 -
Goldman Sachs Global Income 10 -
Kemper Small Cap Growth 10 -
Kemper Small Cap Value 10 -
Kemper Government Securities 10 -
MFS Research 10 -
MFS Growth with Income 10 -
MFS Emerging Growth 10 -
MFS High Income 10 -
MFS Global Governments 10 -
Oppenheimer Capital Appreciation 10 -
Oppenheimer Main Street Growth & Income 10 -
Oppenheimer High Income 10 -
Oppenheimer Bond 10 -
Oppenheimer Strategic Bond 10 -
Putnam VT Growth and Income 10 -
<PAGE>
Putnam VT New Value 10 -
Putnam VT Vista 10 -
Putnam VT International Growth 10 -
Putnam VT International New Opportunities 10 -
Franklin Small Cap 10 -
Templeton International Securities 10 -
Templeton Developing Markets Securities 10 -
Templeton Mutual Shares Securities 10 -
<PAGE>
</TABLE>
COVA FINANCIAL LIFE INSURANCE COMPANY
(a wholly owned subsidiary of Cova Financial
Services Life Insurance Company)
Balance Sheets
<TABLE>
<CAPTION>
JUNE 30,
2000 DECEMBER 31,
Assets (UNAUDITED) 1999
----------------- -------------------
(IN THOUSANDS)
<S> <C> <C>
Investments:
Debt securities available-for-sale, at fair value
(cost of $95,350 in 2000 and $101,690 in 1999) $ 93,911 95,568
Mortgage loans, net of allowance for potential loan
loss of $40 in 2000 and 1999 5,296 5,439
Policy loans 1,040 938
----------------- -------------------
Total investments 100,247 101,945
Cash and cash equivalents - interest-bearing 6,655 751
Cash - noninterest-bearing 1,571 1,448
Accrued investment income 1,764 1,624
Deferred policy acquisition costs 1,313 15,093
<PAGE>
Present value of future profits -- 1,740
Value of business acquired 20,474 --
Goodwill 2,860 1,631
Deferred tax asset, net 185 1,232
Receivable from OakRe 5,866 18,890
Federal and state income taxes recoverable 75 75
Reinsurance receivables 89 9
Other assets 21 24
Separate account assets 199,798 186,040
----------------- -------------------
Total assets $ 340,918 330,502
================= ===================
<PAGE>
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
COVA FINANCIAL LIFE INSURANCE COMPANY (a wholly owned
subsidiary of Cova Financial Services Life Insurance Company)
Balance Sheets, Continued
<TABLE>
<CAPTION>
JUNE 30,
2000 DECEMBER 31,
Liabilities and Shareholder's Equity (UNAUDITED) 1999
---------------- -------------------
(IN THOUSANDS)
<S> <C> <C>
Policyholder deposits $ 105,610 116,184
Future policy benefits 6,680 6,707
Payable on purchase of securities 1,755 85
Accounts payable and other liabilities 1,618 1,589
Future purchase price payable to OakRe 74 172
Guaranty fund assessments 1,100 1,100
Separate account liabilities 199,786 186,035
---------------- -------------------
Total liabilities 316,623 311,872
---------------- -------------------
<PAGE>
Shareholder's equity:
Common stock, $233.34 par value, (authorized
30,000 shares; issued and outstanding
12,000 shares in 2000 and 1999) 2,800 2,800
Additional paid-in capital 21,679 15,523
Retained earnings 97 1,993
Accumulated other comprehensive loss,
net of tax (281) (1,686)
---------------- -------------------
Total shareholder's equity 24,295 18,630
---------------- -------------------
Total liabilities and shareholder's equity $ 340,918 330,502
================ ===================
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
<PAGE>
COVA FINANCIAL LIFE INSURANCE COMPANY (a wholly owned
subsidiary of Cova Financial Services Life Insurance Company)
Statements of Income (Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
2000 1999 2000 1999
--------------- --------------- --------------- ---------------
(IN THOUSANDS)
Revenues:
<S> <C> <C> <C> <C>
Premiums $ 249 1,448 250 1,273
Net investment income 4,349 3,855 2,193 1,956
Net realized losses on sales of investments (31) (4) (36) (42)
Separate account fees 1,372 1,004 708 537
Other income 133 160 93 78
--------------- --------------- --------------- ---------------
<PAGE>
Total revenues 6,072 6,463 3,208 3,802
--------------- --------------- --------------- ---------------
Benefits and expenses:
Interest on policyholder deposits 2,854 2,953 1,453 1,481
Current and future policy benefits 505 1,694 354 1,430
Operating and other expenses 799 363 489 76
Amortization of purchased intangible
assets 1,720 122 903 61
Amortization of deferred policy
acquisition costs 2 766 (1) 577
--------------- --------------- --------------- ---------------
Total benefits and expenses 5,880 5,898 3,198 3,625
--------------- --------------- --------------- ---------------
Income before income taxes 192 565 10 177
--------------- --------------- --------------- ---------------
Income tax expense (benefit):
Current -- 205 -- (200)
Deferred 95 (25) 30 255
--------------- --------------- --------------- ---------------
Total income tax expense 95 180 30 55
<PAGE>
--------------- --------------- --------------- ---------------
Net income (loss) $ 97 385 (20) 122
=============== =============== =============== ===============
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
COVA FINANCIAL LIFE INSURANCE COMPANY (a wholly owned
subsidiary of Cova Financial Services Life Insurance Company)
Statements of Shareholder's Equity
<TABLE>
<CAPTION>
JUNE 30,
<PAGE>
2000 DECEMBER 31,
(UNAUDITED) 1999
---------------- -------------------
(IN THOUSANDS)
Common stock, at beginning
<S> <C> <C>
and end of period $ 2,800 2,800
---------------- -------------------
Additional paid-in capital:
Balance at beginning of period 15,523 14,523
Adjustment to reflect purchase acquisition 3,656 --
Capital contribution 2,500 1,000
---------------- -------------------
Balance at end of period 21,679 15,523
---------------- -------------------
Retained earnings:
Balance at beginning of period 1,993 1,833
Adjustment to reflect purchase acquisition (1,993) --
Net income 97 160
---------------- -------------------
Balance at end of period 97 1,993
---------------- -------------------
Accumulated other comprehensive income:
Balance at beginning of period (1,686) 333
Adjustment to reflect purchase acquisition 1,686 --
<PAGE>
Change in unrealized depreciation
of debt securities (1,439) (7,552)
Deferred federal income tax impact 151 1,087
Change in deferred policy acquisition costs
attributable to unrealized depreciation -- 3,519
Change in value of business acquired
attributable to unrealized depreciation 1,007 927
---------------- -------------------
Balance at end of period (281) (1,686)
---------------- -------------------
Total shareholder's equity $ 24,295 18,630
================ ===================
<PAGE>
Total comprehensive income:
Net income $ 97 160
Other comprehensive income (loss) (change in net unrealized
depreciation of debt and equity securities) (281) (2,019)
---------------- -------------------
Total comprehensive income (loss) $ (184) (1,859)
================ ===================
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
COVA FINANCIAL LIFE INSURANCE COMPANY (a wholly owned
subsidiary of Cova Financial Services Life Insurance Company)
Statements of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
2000 1999
---------- ------------
(IN THOUSANDS)
Reconciliation of net income to net cash
<S> <C> <C>
provided by (used in) operating activities:
Net income $ 97 385
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
<PAGE>
Increase in future policy benefits 172 405
Increase in payables and accrued liabilities 1,699 863
Decrease (increase) in accrued investment income (140) (103)
Amortization of intangible assets and
deferred policy acquisition costs 1,722 888
Amortization and accretion of
securities, premiums, and discounts (533) (10)
Interest credited to intangible assets and deferred
policy acquisition costs (719) (401)
<PAGE>
Net realized gain on sale of investments 31 4
Interest on policyholder deposits 2,854 2,953
(Decrease) increase in current and
deferred federal income taxes 95 (340)
Decrease in recapture commissions payable to OakRe (98) (61)
Commissions and expenses deferred (1,289) (1,651)
Other (65) 828
---------- ------------
Net cash provided by operating activities 3,826 3,760
---------- ------------
Cash flows from investing activities:
Cash used in the purchase of
investment securities (3,970) (16,925)
Proceeds from investment securities 4,722 10,882
sold and matured
---------- ------------
Net cash provided (used) in investing activities 752 (6,043)
---------- ------------
</TABLE>
<PAGE>
COVA FINANCIAL LIFE INSURANCE COMPANY (a wholly owned
subsidiary of Cova Financial Services Life Insurance Company)
Statements of Cash Flows (Unaudited), Continued
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
2000 1999
------------ ------------
(IN THOUSANDS)
<PAGE>
Cash flows from financing activities:
<S> <C> <C>
Policyholder deposits $ 30,022 35,427
<PAGE>
Transfers from OakRe 13,330 8,836
Transfer to separate accounts (22,871) (23,006)
Return of policyholder deposits (21,532) (19,713)
Capital contributions received 2,500 1,000
------------ ------------
Net cash provided by financing activities 1,449 2,544
------------ ------------
Increase in cash and cash equivalents 6,027 261
Cash and cash equivalents - beginning of period 2,199 6,989
------------ ------------
Cash and cash equivalents - end of period $ 8,226 7,250
============ ============
See accompanying notes to unaudited financial statements.
</TABLE>
<PAGE>
COVA FINANCIAL LIFE INSURANCE COMPANY (a wholly owned
subsidiary of Cova Financial Services Life
Insurance Company)
Notes To Interim Financial Statements (Unaudited)
June 30, 2000 and 1999
(1) BASIS OF PRESENTATION
The interim financial statements for Cova Financial Life Insurance
Company (the Company) have been prepared on the basis of generally
accepted accounting principles (GAAP) and, in the opinion of management,
reflect all adjustments (consisting of normal recurring accruals)
necessary for a fair presentation of results for such periods. The
results of operations and cash flows for any interim period are not
necessarily indicative of results for the full year. These financial
statements should be read in conjunction with the financial statements as
of December 31, 1999 and December 31, 1998, and for each of the years in
the three-year period ended December 31, 1999 and related notes thereto,
presented elsewhere herein. Interim financial data presented herein are
unaudited.
(2) MERGER
The Company is a wholly owned subsidiary of Cova Financial Services Life
Insurance Company (CFSLIC). CFSLIC is a wholly owned subsidiary of Cova
Corporation, which is a wholly owned subsidiary of General American Life
Insurance Company (GALIC), a Missouri domiciled life insurance company.
GALIC is a wholly owned subsidiary of GenAmerica Corporation, which in
turn is a wholly owned by the ultimate parent, General American Mutual
Holding Company (GAMHC).
On January 6, 2000, GenAmerica Corporation and all of its holdings were
acquired by Metropolitan Life Insurance Company (MetLife), a New York
domiciled life insurance company, for $1.2 billion in cash. For the
purposes of financial reporting, the Company has accounted for the merger
as if it took place on January 1, 2000.
(3) CHANGE IN ACCOUNTING
Upon the merger, the Company restated its financial statements in
accordance with "push down purchase accounting". The net purchase price
of approximately $22 million was allocated to the Company based on the
fair values of the acquired assets and liabilities, including the
estimated value of business acquired. These allocated values were
dependent upon policies in force and market conditions at the time of
closing. These allocations are summarized below:
<PAGE>
<TABLE>
<CAPTION>
JANUARY 1, 2000
---------------------
(IN THOUSANDS)
<S> <C>
Total investments $ 101,835
<PAGE>
Cash and cash equivalents 2,199
Value of business acquired 20,180
<PAGE>
Goodwill 2,933
Receivable from OakRe 18,890
Deferred tax benefits 129
Other assets 1,732
Separate account assets 186,040
---------------
Total assets acquired 333,938
---------------
Policyholder deposits 116,469
Future policy benefits 6,508
Other liabilities 2,947
Separate account liabilities 186,035
---------------
Total liabilities assumed 311,959
---------------
Adjusted purchase price $ 21,979
===============
</TABLE>
In addition to revaluing all material tangible assets and liabilities to
their respective estimated market values at the merger date, the Company
also recorded in its financial statements the excess of cost over fair
value of net assets acquired (goodwill) as well as the value of business
acquired to be derived from the purchased and reinsured business. These
amounts were determined in accordance with the purchase method of
accounting. This new basis of accounting resulted in an increase in
shareholder's equity of approximately $3 million on January 1, 2000
reflecting the application of push down purchase accounting. The
Company's consolidated financial statements subsequent to January 1, 2000
reflect this new basis of accounting.
<PAGE>
(4) INVESTMENTS
<PAGE>
The Company's investments in debt and equity securities are considered
available-for-sale and carried at estimated fair value, with the
aggregate unrealized appreciation or depreciation being recorded as a
separate component of shareholder's equity. The amortized cost, estimated
fair value, and carrying value of investments at June 30, 2000 are as
follows:
<TABLE>
<CAPTION>
JUNE 30, 2000
-----------------------------------------------------------------------------
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR CARRYING
COST GAINS LOSSES VALUE VALUE
-------------- -------------- --------------- --------------- --------------
(IN THOUSANDS)
<S> <C> <C> <C> <C> <C>
Debt securities:
Corporate securities $ 72,763 613 (1,945) 71,431 71,431
Mortgage-backed securities 8,966 10 (45) 8,931 8,931
Asset-backed securities 13,621 152 (224) 13,549 13,549
-------------- -------------- --------------- --------------- --------------
Total debt securities 95,350 775 (2,214) 93,911 93,911
Mortgage loans (net) 5,296 41 - 5,337 5,296
Policy loans 1,040 - - 1,040 1,040
-------------- -------------- --------------- --------------- --------------
Total investments $ 101,686 816 (2,214) 100,288 100,247
============== ============== =============== =============== ==============
Company's beneficial interest
in separate accounts
$ 12 - - 12 12
============== ============== =============== =============== ==============
</TABLE>
The Company had one impaired debt security with estimated fair value of
approximately $100,000, and all debt securities are income producing at
June 30 2000. The Company's valuation allowance for potential losses on
mortgage loans is $40,000 at June 30, 2000.
<PAGE>
The amortized cost and estimated fair value of debt securities at June
30, 2000, by contractual maturity, are shown below. Expected maturities
will differ from contractual maturities because borrowers may have the
right to call or prepay obligations with or without call or prepayment
penalties. Maturities of mortgage-backed securities will be
substantially shorter than their contractual maturity because they
require monthly principal installments and mortgagees may prepay
principal.
<PAGE>
<TABLE>
<CAPTION>
JUNE 30, 2000
------------------------------
ESTIMATED
AMORTIZED FAIR
COST VALUE
-------------- --------------
(IN THOUSANDS)
<S> <C> <C>
Less than one year $ 4,191 4,192
Due after one year through five years 32,977 31,799
Due after five years through ten years 29,879 29,612
Due after ten years 5,716 5,828
Mortgage-backed securities 22,587 22,480
-------------- --------------
Total $ 95,350 93,911
============== ==============
</TABLE>
At June 30, 2000, approximately 92.2% of the Company's debt securities
are investment grade or are nonrated but considered to be of investment
grade. Of the 7.8% noninvestment grade debt securities, 5.8% are rated
as BB, 1.0% are rated as B, and 1.0 % are rated C and treated as
impaired.
<TABLE>
<CAPTION>
The components of investment income, realized capital gains (losses),
and unrealized appreciation (depreciation) are as follows:
<PAGE>
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
2000 1999 2000 1999
----------- ------------- ------------ -----------
(IN THOUSANDS)
<S> <C> <C> <C> <C>
Income on debt securities $ 4,015 3,565 2,011 1,790
Income on mortgage loans 244 217 121 126
Income on short-term investments 91 96 59 52
Interest on policy loans 39 41 20 21
Miscellaneous interest 18 1 10 1
------------ ------------ ------------ -------------
Total investment income 4,407 3,920 2,221 1,990
Investment expenses (58) (65) (28) (34)
------------ ------------ ------------ -------------
Net investment income $ 4,349 3,855 2,193 1,956
<PAGE>
============ ============ ============ =============
Net realized capital losses - debt securities $ (31) (4) (36) (42)
============ ============ ============ =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
JUNE 30, 2000 DECEMBER 31,
UNAUDITED 1999
---------------- ---------------
(IN THOUSANDS)
Unrealized appreciation (depreciation) are as follows:
<S> <C> <C>
Debt securities $ (1,439) (6,122)
Effects on deferred acquisition costs amortization - 2,793
Effects on PVFP amortization - 735
Effects on VOBA amortization 1,007 -
----------------- ---------------
Unrealized appreciation before income tax (432) (2,594)
Unrealized income tax expense 151 908
----------------- ---------------
<PAGE>
Net change in unrealized appreciation $ (281) (1,686)
================= ===============
</TABLE>
(5) SECURITIES GREATER THAN 10% OF SHAREHOLDER'S EQUITY
The Company does not have any individual security that exceeds 10% of
shareholder's equity at June 30, 2000.
(6) STATUTORY SURPLUS
As of June 30, 2000, the Company's statutory capital and surplus was
$11,119,295. The Company's statutory net losses for the periods ended
June 30, 2000 and 1999 were $796,169 and $418,255, respectively.
(7) RELATED-PARTY TRANSACTIONS
On October 31, 1999, the Company's affiliate Cova Life Management Company
(CLMC) purchased the remaining 51% interest in Cova Life Administrative
Service Company (CLASC) from another affiliate, Navisys Incorporated, for
$1,184,414.
<PAGE>
The Company has entered into management, operations, and servicing
agreements with its affiliated companies. The affiliated companies are
CLMC, which provides management services and the employees necessary to
conduct the activities of the Company; Conning Asset Management, which
provides investment advice; and CLASC, which provides underwriting,
policy issuance, claims, and other policy administration functions.
Additionally, a portion of overhead and other corporate expenses is
allocated by the Company's ultimate parent, GALIC. Expenses and fees paid
to affiliated companies as of June 30, 2000 and 1999 were $629,730 and
$489,502 respectively.
<PAGE>
(8) REINSURANCE
Effective July 25, 1999, the company entered into a modified coinsurance
agreement with MetLife. Under the agreement, the Company ceded life
insurance and annuity business that was issued or renewed from July 25,
1999 through December 31, 1999 to MetLife. Net earnings to MetLife from
<PAGE>
that business are experience refunded to the Company. The agreement does
not meet the conditions for reinsurance accounting under GAAP. In
substance, the agreement represents a permanent guarantee by MetLife of
new and renewed business during this period. There was no impact on the
Company's financial statements resulting from the reinsurance transaction
with MetLife. On January 6, 2000, the Company discontinued ceding new
business under the modified coinsurance agreement with MetLife.
(9) SUBSEQUENT EVENT
On July 1, 2000, the Company recaptured all of the existing single
premium deferred annuity policies ceded to OakRe Life Insurance Company
(OakRe). On that same date, the Company terminated the June 1, 1995
reinsurance agreement with OakRe.
(10) OTHER
Certain 1999 amounts have been reclassified to conform to the 2000
presentation.
CC-4399 (9/00) 21-RVUL-SC-1
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