<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
SEI Insurance Products Trust - As of December 31, 1999
------------- ------------ ----------- ------------ ---------- ---------------
VP Large VP Large VP VP Small VP Small VP
Cap Cap S & P 500 Cap Cap International
Value Growth Index Value Growth Equity
Fund Fund Fund Fund Fund Fund
------------- ------------ ----------- ------------ ---------- ---------------
Assets:
<S> <C> <C> <C> <C> <C> <C>
Cash $7,692 $7,692 $7,692 $7,692 $7,692 $7,692
Deferred Offering Costs $5,112 $5,112 $5,112 $5,112 $5,112 $5,112
------- ------- ------- ------- ------- -------
Total Assets $12,804 $12,804 $12,804 $12,804 $12,804 $12,804
------- ------- ------- ------- ------- -------
Liabilities:
Due to Manager $5,112 $5,112 $5,112 $5,112 $5,112 $5,112
------- ------- ------- ------- ------- -------
Net Assets: $7,692 $7,692 $7,692 $7,692 $7,692 $7,692
======= ======= ======= ======= ======= =======
Shares of beneficial
interest issued and
outstanding (unlimited
authorization-no par value) 769 769 769 769 769 769
======= ======= ======= ======= ======= =======
Net asset value, offering
price and redemption price
per share $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
======= ======= ======= ======= ======= =======
</TABLE>
---------- ----------
VP Emerging VP Core
Markets Fixed
Equity Income
Fund Fund
---------- ----------
Assets:
Cash $7,692 $7,692
Deferred Offering Costs $5,112 $5,112
------- -------
Total Assets $12,804 $12,804
------- -------
Liabilities:
Due to Manager $5,112 $5,112
------- -------
Net Assets: $7,692 $7,692
======= =======
Shares of beneficial
interest issued and
outstanding (unlimited
authorization-no par value) 769 769
======= =======
Net asset value, offering
price and redemption price
per share $10.00 $10.00
======= =======
The Funds have not commenced operations as of December 31, 1999
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
SEI Insurance Products Trust - As of December 31, 1999
----------- --------- ---------------- ----------- -----------
VP High VP International VP Emerging
VP Bond Yield Fixed Markets VP Prime
Index Bond Income Debt Obligation
Fund Fund Fund Fund Fund
----------- --------- ---------------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets:
Cash $7,692 $7,692 $7,692 $7,692 $7,696
Deferred Offering Costs $5,112 $5,112 $5,112 $5,112 $5,115
------- ------- ------- ------- -------
Total Assets $12,804 $12,804 $12,804 $12,804 $12,811
------- ------- ------- ------- -------
Liabilities:
Due to Manager $5,112 $5,112 $5,112 $5,112 $5,115
------- ------- ------- ------- -------
Net Assets: $7,692 $7,692 $7,692 $7,692 $7,696
======= ======= ======= ======= =======
Shares of beneficial
interest issued and
outstanding (unlimited
authorization-no par value) 769 769 769 769 7,696
======= ======= ======= ======= ======
Net asset value, offering
price and redemption price
per share $10.00 $10.00 $10.00 $10.00 $1.00
======= ======= ======= ======= ======
</TABLE>
The funds have not commenced operations as of December 31, 1999.
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
SEI INSURANCE PRODUCTS TRUST - DECEMBER 31, 1999
1. ORGANIZATION
SEI Insurance Products Trust (the "Trust") was organized as a Massachusetts
business trust under a Declaration of Trust dated December 14, 1998. The Trust
is registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company consisting of thirteen funds: SEI VP
Large Cap Value Fund, SEI VP Large Cap Growth Fund, SEI VP S&P 500 Index Fund,
SEI VP Small Cap Value Fund, SEI VP Small Cap Growth Fund, SEI VP International
Equity Fund, SEI VP Emerging Markets Equity Fund, SEI VP Core Fixed Income Fund,
SEI VP Bond Index Fund, SEI VP High Yield Bond Fund, SEI VP International Fixed
Income Fund, SEI VP Emerging Markets Debt Fund, and SEI VP Prime Obligation Fund
(collectively the "Funds", and each of these, a "Fund"). The Trust has
diversified and non-diversified funds. The Funds' prospectus provides a
description of each Fund's investment objectives, policies and strategies. The
assets of each fund are segregated, and a shareholder's interest is limited to
the fund in which shares are held. The Funds are authorized to offer an
unlimited number of shares of beneficial interest with no par value. The Trust
has not commenced operations except those related to organizational matters and
the sale of initial shares of beneficial interest to SEI Investments Fund
Management ("SIFM" or the "Manager") on July 16, 1999.
2. OFFERING COSTS
Offering costs related to the sale of initial shares will be deferred and
amortized on a straight line basis over a period of twelve months commencing
with operations. These costs of approximately $66,000 include legal fees of
approximately $32,000 for work performed by a law firm of which an officer of
the Trust is a Partner. The remainder of these costs included approximately
$11,000 for other legal costs and $23,000 for typesetting costs.
Certain officers and / or trustees of the Trust are also officers of the
Manager. The Trust pays each unaffiliated Trustee an annual fee for attendance
of quarterly, interim and committee meetings. Compensation of officers and
affiliated trustees of the Trust is paid by the Manager.
The Trust incurred other expenses of approximately $12,000 in legal and audit
fees. The full amount of these organizational expenses were assumed by SEI
Investments Management Corporation (SIMC) and the Funds are not required to
reimburse SIMC.
3. INVESTMENT ADVISORY, MANAGEMENT, DISTRIBUTION AND CUSTODY AGREEMENTS
The Trust has entered into the following service agreements:
Under an Investment Advisory Agreement with the Trust, SEI Investments
Management Corporation ("SIMC") will act as investment adviser to each Fund. For
its investment advisory services to the Trust, SIMC will receive an annual fee
which is calculated daily and paid monthly at the following annual rates (shown
as a percentage of the average daily net assets of each
<PAGE>
Fund): SEI VP Large Cap Value Fund, 0.35%; SEI VP Large Cap Growth Fund, 0.40%;
SEI VP S&P 500 Index Fund, 0.03%; SEI VP Small Cap Value Fund, 0.65%; SEI VP
Small Cap Growth Fund, 0.65%; SEI VP International Equity Fund, 0.51%; SEI VP
Emerging Markets Equity Fund, 1.05%; SEI VP Core Fixed Income Fund, 0.28%; SEI
VP Bond Index Fund, 0.07%; SEI VP High Yield Bond Fund, 0.49%; SEI VP
International Fixed Income Fund, 0.40%; SEI VP Emerging Markets Debt Fund,
0.85%; and SEI VP Prime Obligation Fund, 0.01%. SIMC has agreed, on a voluntary
basis, to waive all or a portion of its investment advisory fee. In addition,
SIMC reserves the right to terminate its waivers at any time in its full
discretion.
Under an Administration Agreement with the Trust, the Manager will provide the
Trust with overall administrative and accounting services and act as transfer
agent and dividend disbursing agent. For its services, the Manager will receive
an annual fee which is calculated daily and paid monthly at the following annual
rates (shown as a percentage of the average daily net assets of each Fund): SEI
VP Large Cap Value Fund, 0.35%; SEI VP Large Cap Growth Fund, 0.35%; SEI VP S&P
500 Index Fund, 0.22%; SEI VP Small Cap Value Fund, 0.35%; SEI VP Small Cap
Growth Fund, 0.35%; SEI VP International Equity Fund, 0.45%; SEI VP Emerging
Markets Equity Fund, 0.65%; SEI VP Core Fixed Income Fund, 0.28%; SEI VP Bond
Index Fund, 0.35%; SEI VP High Yield Bond Fund, 0.35%; SEI VP International
Fixed Income Fund, 0.60%; SEI VP Emerging Markets Debt Fund, 0.65%; and SEI VP
Prime Obligation Fund, 0.42%. The Manager has agreed, on a voluntary basis, to
waive all or a portion of its administration fee and/or reimburse other
expenses. In addition, the Manager reserves the right to terminate its waivers
and/or reimbursements at any time in its full discretion.
Under a Distribution Agreement with the Trust, SEI Investments Distribution
Co. (the "Distributor") will provide the Trust with distribution services. The
Distributor will not be entitled to any fee for performing these services.
Under a Custodian Agreement with the Trust, First Union National Bank will serve
as custodian for the assets of SEI VP Large Cap Value Fund, SEI VP Large Cap
Growth Fund, SEI VP S&P 500 Index Fund, SEI VP Small Cap Value Fund, SEI VP
Small Cap Growth Fund, SEI VP Core Fixed Income Fund, SEI VP Bond Index Fund,
SEI VP High Yield Bond Fund, and SEI VP Prime Obligation Fund.
Under a Custodian Agreement with the Trust, State Street Bank and Trust Company
will serve as custodian for the assets of SEI VP International Equity Fund, SEI
VP Emerging Markets Equity Fund, SEI VP International Fixed Income Fund and SEI
VP Emerging Markets Debt Fund.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors
of the SEI Insurance Products Trust, Inc.:
In our opinion, the accompanying statement of assets and liabilities
presents fairly, in all material respects, the financial position of The SEI
Insurance Products Trust, Inc., (comprising the SEI VP Large Cap Value Fund, SEI
VP Large Cap Growth Fund, SEI VP S&P 500 Index Fund, SEI VP Small Cap Value
Fund, SEI VP Small Cap Growth Fund, SEI VP International Equity Fund, SEI VP
Emerging Markets Equity Fund, SEI VP Core Fixed Income Fund, SEI VP Bond Index
Fund, SEI VP High Yield Bond Fund, SEI VP International Fixed Income Fund, SEI
VP Emerging Markets Debt Fund, and SEI VP Prime Obligation Fund), collectively,
(the "Trust"), at December 31, 1999, in conformity with generally accepted
accounting principles. This financial statement is the responsibility of the
Trusts' management; our responsibility is to express an opinion on this
financial statement based on our audit. We conducted our audit of this financial
statement in accordance with generally accepted auditing standards which require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statement is free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statement, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for the opinion expressed above.
PricewaterhouseCoopers LLP
February 28, 2000
