<PAGE>
As filed with the Securities and Exchange Registration No. 333-89953
Commission on December 29, 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------------------------------------------------------------
FORM S-6
POST-EFFECTIVE AMENDMENT NO. 1 TO
REGISTRATION STATEMENT
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
--------------------------------------------------------------------------------
Variable Life Account C of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, TS31, Hartford, Connecticut 06l56
Depositor's Telephone Number, including Area Code: (860) 273-4686
--------------------------------------------------------------------------------
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, TS31, Hartford, Connecticut 06l56
(NAME AND COMPLETE ADDRESS OF AGENT FOR SERVICE)
--------------------------------------------------------------------------------
It is proposed that this filing will become effective:
X immediately upon filing pursuant to paragraph (b) of Rule 485
------
on __________________ pursuant to paragraph (b) of Rule 485
------
this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
------
<PAGE>
VARIABLE LIFE ACCOUNT C
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
CROSS REFERENCE SHEET
<TABLE>
N-8B-2
Item No. Part I - Prospectus
<S> <C>
1 Cover Page; The Separate Account; The Company and Management, as
amended
2 Cover Page; The Separate Account; The Company and Management, as
amended
3 Not Applicable
4 Distribution of the Certificates
5 The Separate Account; The Company and Management, as amended
6 The Separate Account; The Company and Management, as amended
7 Not Applicable
8 Not Applicable
9 Additional Information - Legal Matters and Proceedings, as amended
10 The Separate Account; Certificate Rights; Certificate Choices; Additional
Information; Miscellaneous Certificate Provisions; Termination or Change in
Coverage; Allocation of Premiums - Fund Additions, Deletions or
Substitutions
11 Allocation of Premiums - The Funds
12 Allocation of Premiums - The Funds
13 Charges & Fees
14 Certificate Choices
15 Allocation of Premiums; Certificate Choices; Certificate Values
16 The Separate Account; Allocation of Premiums - The Funds; Certificate
Values
17 Certificate Rights
18 The Separate Account
19 Additional Information - Reports to Owners
20 Not Applicable
21 Certificate Rights - Certificate Loans
<PAGE>
N-8B-2
Item No. Part I - Prospectus
22 Not Applicable
23 The Company and Management, as amended
24 Not Applicable
25 The Company and Management, as amended
26 Not Applicable
27 The Company and Management, as amended
28 The Company and Management, as amended
29 The Company and Management, as amended
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Additional Information - State Regulation
36 Not Applicable
37 Not Applicable
38 Additional Information - Distribution of the Certificates
39 The Company and Management, as amended
40 Not Applicable
41 The Company and Management, as amended
42 Not Applicable
43 Not Applicable
44 Charges & Fees; Certificate Values
45 Not Applicable
46 The Separate Account; Certificate Values
47 Not Applicable
48 Not Applicable
49 Not Applicable
50 The Separate Account
51 Cover Page; Certificate Choices
<PAGE>
N-8B-2
Item No. Part I - Prospectus
52 Allocation of Premiums - Fund Additions, Deletions or Substitutions;
Termination or Change in Coverage
53 Tax Matters
54 Not Applicable
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Financial Statements
</TABLE>
<PAGE>
PART I
The Prospectus dated May 1, 2000, as amended, is incorporated into Part I of
this Post-Effective Amendment No. 1 to Registration Statement on Form S-6 (File
No. 333-89953) by reference to Registrant's filings under Rules 497(c) and
497(e), as filed on May 3, 2000 and August 21, 2000, respectively, (File No.
333-89953).
One Supplement dated December 29, 2000 to the Prospectus is included in this
Post-Effective Amendment No. 1.
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY
VARIABLE LIFE ACCOUNT C
SUPPLEMENT DATED DECEMBER 29, 2000 TO MAY 1, 2000 PROSPECTUS
The information in this supplement updates and amends certain information
contained in the prospectus dated May 1, 2000 and replaces the Supplement
X.INGS2-00 dated August 21, 2000. You should read this supplement along with the
prospectus.
- Effective November 17, 2000, Aetna Life Insurance and Annuity Company's
("ALIAC") broker-dealer subsidiary, Aetna Investment Services, Inc. (which
was subsequently converted to Aetna Investment Services, LLC) ("AIS"),
became the principal underwriter for the securities sold under the
prospectus. AIS, a Delaware limited liability company, is registered as a
broker-dealer with the Securities and Exchange Commission. AIS is also a
member of the National Association of Securities Dealers, Inc. and the
Securities Investor Protection Corporation. AIS' principal office is
located at 151 Farmington Avenue, Hartford, Connecticut 06156. ALIAC is no
longer a registered broker-dealer.
- On December 13, 2000, ALIAC became an indirect wholly-owned subsidiary of
ING Groep N.V. ("ING"). ING is a global financial institution active in
the fields of insurance, banking and asset management. The terms of your
contract will not be affected by this change in ownership. In the future,
you may begin to see the use of the ING lion logo on our printed
materials.
- The following information updates and replaces the third paragraph of the
"The Company and Management" section on page 23 of the prospectus:
The following are the Directors and Executive Officers of Aetna Life
Insurance and Annuity Company.*
<TABLE>
<CAPTION>
NAME AND ADDRESS POSITION WITH COMPANY BUSINESS EXPERIENCE DURING PAST 5 YEARS
------------------------------- ----------------------------- -----------------------------------------
<S> <C> <C>
Thomas J. McInerney** Director, President and President (since September 2000) -- Aetna
Alternate Member of Executive Life Insurance and Annuity Company; Aetna
Committee (Principal Retirement Holdings, Inc., Aetna
Executive Officer) Investment Adviser Holding Company, Inc.,
Aetna Retail Holding Company, Inc., Aetna
Services Holding Company, Inc.; Aetna
Retirement Services, Inc.; President
(since September 1997) -- Aetna Insurance
Company of America; Executive Vice
President (August 1997 -- November 2000)
-- Aetna Inc.; President (October 1998 --
May 2000) -- Aetna Investment Adviser
Holding Company, Inc., Aetna Retail
Holding Company, Inc., Aetna Services
Holding Company, Inc.; President (April
1998 -- May 2000) -- Aetna Retirement
Services, Inc.; President (September 1997
-- May 2000) -- Aetna Life Insurance and
Annuity Company, Aetna Retirement
Holdings, Inc.; Vice President, Strategy
(March 1997 -- August 1997) Aetna Inc.,
Aetna Services, Inc. and Aetna Life
Insurance Company; Vice President, Sales
(December 1996 -- March 1997) and Vice
President, National Accounts (April 1996
--March 1997) Aetna US Healthcare Inc.;
Vice President, Strategy, Finance, &
Administration (July 1995 -- April 1996)
Aetna Inc.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NAME AND ADDRESS POSITION WITH COMPANY BUSINESS EXPERIENCE DURING PAST 5 YEARS
------------------------------- ----------------------------- -----------------------------------------
<S> <C> <C>
Wayne R. Huneke*** Director Director (since December 2000) of Aetna
Life Insurance and Annuity Company, Aetna
Insurance Company of America, Aetna
Retirement Services, Inc., and Aetna
Retirement Holdings, Inc.; General
Manager and Chief Financial Officer
(October 2000 -- present) ING Americas;
Senior Executive Vice President (May 1999
-- present ReliaStar Financial Corp;
Senior Vice President Financial Markets
(November 1997 -- May 1999) ReliaStar
Financial Corp.; Senior Vice President,
Chief Financial Officer and Treasurer
(August 1994 -- November 1997) ReliaStar
Financial Corp.
Philip R. Lowery*** Director Director (since December 2000) of Aetna
Life Insurance and Annuity Company, Aetna
Insurance Company of America, Aetna
Retirement Services, Inc., and Aetna
Retirement Holdings, Inc.; General
Manager & Chief Actuary (November 2000 --
present) ING America Ins. Holdings, Inc.;
Director (February 2000 -- present)
Midwestern United Life Insurance Company;
Director (1999 -- Present) of First
Columbine Life Insurance Company,
Security Life of Denver Insurance
Company, Equitable Life Insurance Company
of Iowa, USG Annuity & Life Company;
Equitable American Life Insurance
Company; Golden American Life Insurance
Company; Southland Life Insurance
Company; and Life of Georgia Insurance
Company; Executive Vice President,
General Manager, Actuarial/Risk (1999 --
present) ING North America Insurance
Corp.; First Executive Vice President
(1999 -- November 2000) ING America
Insurance Holdings, Inc.; Senior Vice
President & Actuary (Since 1990) ING
America Life.
Robert C. Salipante*** Director Director (since December 2000) of Aetna
Life Insurance and Annuity Company, Aetna
Insurance Company of America, Aetna
Retirement Services, Inc., and Aetna
Retirement Holdings, Inc.; General
Manager and Chief Executive Officer (2000
-- present) ING; President and Chief
Operating Officer (1999 -- 2000)
ReliaStar Financial Corp.; Senior Vice
President -- Personal Financial Services
(1996 -- present) ReliaStar Financial
Corp.; Senior Vice President -- Strategic
Marketing and Technology (1994 -- 1996)
ReliaStar Financial Corp.
Mark A. Tullis*** Director Director (since December 2000) of Aetna
Life Insurance and Annuity Company, Aetna
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NAME AND ADDRESS POSITION WITH COMPANY BUSINESS EXPERIENCE DURING PAST 5 YEARS
------------------------------- ----------------------------- -----------------------------------------
<S> <C> <C>
Insurance Company of America, Aetna
Retirement Services, Inc., and Aetna
Retirement Holdings, Inc.; General
Manager and Chief of Staff (November 2000
--present) ING North America Insurance
Corporation; Director (February 2000 --
present) First ING Life Insurance Company
of New York; Director, President and
Treasurer (2000 -- Present Quichot, Inc.;
Director (2000 -- present) of Nordic
Insurance Company of Canada, Halifax
Insurance Company, Commerce Group
Insurance Company, ING Western Union
Insurance Company, ING Wellington
Insurance Company, ING Novex Insurance
Company Canada, ING Canada P & C Inc.,
ING Canada, Inc.; Director (1999 --
present) of Equitable American Life
Insurance Company, USG Annuity and Life
Company, Equitable Life Insurance Company
of Iowa, First Columbine Life Insurance
Company, Security Life of Denver
Insurance Company, Southland Life
Insurance Company, Life of Georgia
Insurance Company; Executive Vice
President, General Manager Strategy and
Operations (1999 -- November 2000) ING
North America Insurance Corporation;
Executive Vice President (June 1994 --
August 1999) Primerica.
Michael W. Cunningham*** Senior Vice President and Senior Vice President and Chief Financial
Chief Financial Officer Officer (December 2000 -- present) of
Aetna Life Insurance and Annuity Company,
Aetna Retirement Services, Inc., and
Aetna Retirement Holdings, Inc.; Senior
Vice President (December 2000 -- present)
Aetna Insurance Company of America;
Director (July 1999 -- present) Equitable
American Life Insurance Company, USG
Annuity & Life Company, Equitable Life
Insurance Company of Iowa; Director and
President (April 26, 1999 -- present)
Equitable of Iowa Companies, Inc.;
Director (April 21, 1999 -- present) of
ING Seguros, S.A. de C.V., Pensiones
Bital, S.A., Seguros Bital, S.A. de C.V.,
Grupo Financiero Bital; Director (April
6, 1999 -- present) First Golden American
Life Insurance Company; Director (April 4
1999 -- present) Golden American Life
Insurance Company; Director (August 28,
1998 -- present) Canadian Group
Underwriters Insurance Company; Director
(August 18, 1998 -- present) of Life of
Georgia Agency, Inc.; Executive Vice
President and Chief Financial Officer
(August
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NAME AND ADDRESS POSITION WITH COMPANY BUSINESS EXPERIENCE DURING PAST 5 YEARS
------------------------------- ----------------------------- -----------------------------------------
<S> <C> <C>
3, 1998 -- present) Lion II Custom
Investments LLC; Executive Vice President
(April 7, 1998 -- present) Security Life
of Denver Insurance Company; Director and
President (February 10, 1998 -- present)
GAC Capital, Inc.; Director (January 30,
1998 -- present) of Life Insurance
Company of Georgia and Southland Life
Insurance Company; Executive Vice
President and Chief Financial Officer
(January 1, 1998 -- present) Lion Custom
Investments LLC; Director, Executive Vice
President (October 1997 -- present)
Security Life Assignment Corporation;
Director (May 19, 1997 -- present) First
ING Life Insurance Company of New York;
Director (November 19, 1996 -- present)
NN Life Insurance Company of Canada;
Director (September 20, 1996 -- present)
ING Canada IARD Inc.; Director (July 30,
1996 -- present) Midwestern United Life
Insurance Company); Director (May 15,
1995 -- present) Security Life of Denver
Insurance Company; Executive Vice
President & Chief Financial Officer
(January 5, 1995 -- present) Orange
Investment Enterprises, Inc.; Executive
Vice President, Chief Financial Officer &
Treasurer (March 8, 1994 -- present) ING
North America Insurance Corporation;
Executive Vice President and Chief
Financial Officer (September 27, 1994 --
present) Lion Custom Investments, Inc.;
Director, President, Treasurer (1999 --
2000) Quichot, Inc.; Director (August 28,
1998 -- November 2000) The Nordic
Insurance Company of Canada; Executive
Vice President, Chief Financial Officer
(April 25, 1998 -- November 2000) ING
America Insurance Holdings, Inc.;
Director (February 26, 1997 -- November
2000) Western Union Insurance Company;
Director (November 18, 1996 -- November
2000) of The Commerce Group Insurance
Company, The Halifax Insurance Company,
and Wellington Insurance Company;
Director and Vice President (January 1,
1992 -- November 2000) ING Canada
Holdings Inc.
Kathleen A. Murphy** Senior Vice President and Senior Vice President and Deputy General
Deputy General Counsel Counsel (December 2000 -- present) Aetna
Life Insurance and Annuity Company; Vice
President, Deputy General Counsel (June
1987 -- December 2000) Aetna Inc.
Deborah Koltenuk** Vice President and Corporate Vice President, Treasurer and Chief
Controller Financial Officer (since May 2000) -
Aetna Investment
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NAME AND ADDRESS POSITION WITH COMPANY BUSINESS EXPERIENCE DURING PAST 5 YEARS
------------------------------- ----------------------------- -----------------------------------------
<S> <C> <C>
Services, Inc., as of November 28, 2000
Aetna Investment Services LLC; Vice
President and Corporate Controller (Since
May 2000) and Treasurer (May 2000 --
December 2000) Aetna Life Insurance and
Annuity Company; Treasurer (since June
2000) -- Systematized Benefits
Administrators, Inc.; Vice President,
Corporate Controller and Assistant
Treasurer (since July 1999) -- Aetna
Retirement Services, Inc.; Vice
President, Corporate Controller and
Assistant Treasurer (since June 1999) --
Aetna Investment Adviser Holding Company,
Inc., Aetna Retail Holding Company, Inc.,
Aetna Services Holding Company, Inc.,
Aetna Life Insurance and Annuity Company,
Aetna Retirement Holdings, Inc.; Vice
President and Corporate Controller (since
July 1999) -- Aetna Insurance Company of
America; Assistant Treasurer (July 1999
-- December 2000) -- Aetna Insurance
Company of America; Vice President,
Corporate Controller and Assistant
Treasurer (April 1999 - July 1999) --
Aetna Retirement Services, Inc.; Vice
President, Treasurer and Corporate
Controller (October 1998 -- June 1999) --
Aetna Investment Adviser Holding Company,
Inc., Aetna Retail Holding Company, Inc.,
Aetna Services Holding Company, Inc.;
Vice President and Controller (April 1997
-- April 1999) -- Aetna Retirement
Services, Inc.; Vice President, Treasurer
and Corporate Controller (April 1997 --
June 1999) -- Aetna Insurance Company of
America; Vice President, Treasurer and
Corporate Controller (July 1996 -- June
1999) -- Aetna Life Insurance and Annuity
Company; Vice President, Treasurer and
Corporate Controller (September 1996 --
June 1999) -- Aetna Retirement Holdings,
Inc.; Vice President and Treasurer,
Corporate Controller (April 1997 -- June
1999) Aetna Insurance Company of America;
Vice President, Investment Financial
Reporting and Securities Operations
(April 1996 -- July 1996) Aetna Life
Insurance Company; Vice President,
Investment Planning and Financial
Reporting (October 1994 -- April 1996)
The Aetna Casualty and Surety Company and
The Standard Fire and Insurance Company.
Brian Murphy** Vice President and Chief Vice President and Chief Compliance
Compliance Officer Officer (since May 2000) -- Aetna Life
Insurance and Annuity Company; Chief
Compliance Officer (since June 2000) --
Systematized Benefits Administrators,
Inc.
</TABLE>
<PAGE>
* Directors, officers and employees of the Company are covered by a blanket
fidelity bond in the amount of $60 million issued by Travelers Casualty and
Surety Company of America.
** The address of all these Directors and Officers is 151 Farmington Avenue,
Hartford, Connecticut. These individuals may also be directors and/or
officers of other affiliates of the Company.
*** The address of these Directors and Officers is 5780 Powers Ferry Road, NW,
Atlanta, Georgia 30327-4390. These individuals may also be directors and/or
officers of other affiliates of the Company.
**** The address of this Director is 20 Washington Avenue South, Minneapolis,
Minnesota 55401. These individuals may also be directors and/or officers of
other affiliates of the Company.
- The following information updates and replaces the "Legal Matters and
Proceedings" subsection on page 26 of the prospectus:
LEGAL MATTERS AND PROCEEDINGS
We are aware of no material legal proceedings pending which involve the
Separate Account as a party or which would materially affect the Separate
Account. The validity of the securities offered by this Prospectus has
been passed upon by Counsel to the Company.
In recent years, several life insurance and annuity companies have been
named as defendants in class action lawsuits, relating to life insurance
and annuity pricing and sales practices. The Company is a defendant in one
such lawsuit, a purported class action which was filed against the Company
in the United States District Court for the Middle District of Florida on
June 30, 2000, by Helen Reese, Richard Reese, Villere Bergeron and Alan
Eckert (the "Reese Complaint"). The Reese Complaint claims that the
Company engaged in unlawful sales practices in marketing life insurance
policies. The Company intends to defend this action vigorously.
The Company also is a party to other litigation and arbitration
proceedings in the ordinary course of its business, none of which is
expected to have a material adverse effect on the Company.
- The following information is added to the "Financial Statements" section
on Page 36 of the prospectus:
<PAGE>
FINANCIAL STATEMENTS
VARIABLE LIFE ACCOUNT C
INDEX TO FINANCIALS FOR THE PERIOD ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Statement of Assets and Liabilities as of
September 30, 2000 (unaudited).................. S-22
Statement of Operations and Statement of Changes
in Net Assets for the Period ended
September 30, 2000 (unaudited).................. S-24
Condensed Financial Information as of September
30, 2000 (unaudited)............................ S-25
Notes to Financial Statements (unaudited)......... S-26
</TABLE>
S-21
<PAGE>
VARIABLE LIFE ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES -- September 30, 2000 (Unaudited)
ASSETS:
Investments, at net asset value: (Note 1)
<TABLE>
<CAPTION>
NET
SHARES COST ASSETS
------ ---- ------
<S> <C> <C> <C>
Aetna Balanced VP, Inc.: 2,046 $ 32,117 $ 31,894
Aetna Bond VP: 537 6,697 6,785
Aetna Crossroads VP: 4 60 61
Aetna Growth and Income VP: 1,776 54,369 51,210
Aetna Index Plus Large Cap VP: 5,781 111,799 114,180
Aetna Legacy VP: 208 2,639 2,677
Aetna Money Market VP: 400 5,261 5,362
Fidelity Investments Variable
Insurance Products Fund:
Equity-Income Portfolio: 734 17,489 18,022
Fidelity Investments Variable
Insurance Products Fund II:
Contrafund Portfolio: 1,274 32,265 32,370
Janus Aspen Series:
Aggressive Growth Portfolio: 674 36,731 35,635
Balanced Portfolio: 1,005 26,094 25,264
Growth Portfolio: 1,186 37,040 37,870
Worldwide Growth Portfolio: 1,124 51,058 47,730
Oppenheimer Funds:
Global Securities Fund/VA: 14 432 434
Strategic Bond Fund/VA: 255 1,227 1,201
Portfolio Partners, Inc. (PPI):
PPI MFS Capital Opportunities
Portfolio: 194 9,887 9,898
PPI MFS Emerging Equities
Portfolio: 37 2,807 2,784
PPI MFS Research Growth
Portfolio: 49 684 730
PPI Scudder International
Growth Portfolio: 47 992 893
PPI T. Rowe Price Growth Equity
Portfolio: 19 1,239 1,273
-------- --------
NET ASSETS $430,887 $426,273
======== ========
</TABLE>
<TABLE>
<S> <C>
NET ASSETS REPRESENTED BY:
POLICYHOLDERS' ACCOUNT VALUES: (Notes 1 and 6)
AETNA BALANCED VP, INC.:
Policyholders' account values................. $ 31,894
AETNA BOND VP:
Policyholders' account values................. 6,785
AETNA CROSSROADS VP:
Policyholders' account values................. 61
AETNA GROWTH AND INCOME VP:
Policyholders' account values................. 51,210
AETNA INDEX PLUS LARGE CAP VP:
Policyholders' account values................. 114,180
AETNA LEGACY VP:
Policyholders' account values................. 2,677
AETNA MONEY MARKET VP:
Policyholders' account values................. 5,362
</TABLE>
S-22
<PAGE>
VARIABLE LIFE ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES -- September 30, 2000 (Unaudited and
continued):
<TABLE>
<S> <C>
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND:
EQUITY-INCOME PORTFOLIO:
Policyholders' account values............... $ 18,022
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND II:
CONTRAFUND PORTFOLIO:
Policyholders' account values............... 32,370
JANUS ASPEN SERIES:
AGGRESSIVE GROWTH PORTFOLIO:
Policyholders' account values............... 35,635
BALANCED PORTFOLIO:
Policyholders' account values............... 25,264
GROWTH PORTFOLIO:
Policyholders' account values............... 37,870
WORLDWIDE GROWTH PORTFOLIO:
Policyholders' account values............... 47,730
OPPENHEIMER FUNDS:
GLOBAL SECURITIES FUND/VA:
Policyholders' account values............... 434
STRATEGIC BOND FUND/VA:
Policyholders' account values............... 1,201
PORTFOLIO PARTNERS, INC. (PPI):
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO:
Policyholders' account values............... 9,898
PPI MFS EMERGING EQUITIES PORTFOLIO:
Policyholders' account values............... 2,784
PPI MFS RESEARCH GROWTH PORTFOLIO:
Policyholders' account values............... 730
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO:
Policyholders' account values............... 893
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO:
Policyholders' account values............... 1,273
--------
$426,273
========
</TABLE>
See Notes to Financial Statements
S-23
<PAGE>
VARIABLE LIFE ACCOUNT C
STATEMENT OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
PERIOD ENDED
SEPTEMBER 30, 2000
------------------
(UNAUDITED)
-----------
<S> <C>
INVESTMENT INCOME:
Income: (Notes 1, 3 and 5)
Dividends....................................... $26,924
Expenses: (Notes 2 and 5)
Valuation period deductions..................... (2,299)
-------
Net investment income............................. $24,625
-------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on sales of investments:
(Notes 1, 4 and 5)
Proceeds from sales............................. $81,321
Cost of investments sold........................ 77,225
-------
Net realized gain on investments.............. 4,096
-------
Net unrealized gain (loss) on investments:
(Note 5)
Beginning of period............................. 0
End of period................................... (4,614)
-------
Net change in unrealized gain on
investments................................. (4,614)
-------
Net realized and unrealized gain on investments... (518)
-------
Net increase in net assets resulting from
operations...................................... $24,107
=======
</TABLE>
See Notes to Financial Statements
--------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
<TABLE>
<CAPTION>
PERIOD ENDED
SEPTEMBER 30, 2000
------------------
(UNAUDITED)
-----------
<S> <C>
FROM OPERATIONS:
Net investment income............................. $ 24,625
Net realized gain on investments.................. 4,096
Net change in unrealized loss on investments...... (4,614)
--------
Net increase in net assets resulting from
operations...................................... 24,107
--------
FROM UNIT TRANSACTIONS:
Variable life premium payments.................... 230,709
Transfer from Separate Account Variable Life B.... 230,380
Transfer to the Company's other separate
accounts........................................ (23,235)
Redemptions by policyholders...................... (34,757)
Other............................................. (931)
--------
Net increase (decrease) in net assets from unit
transactions (Note 6) ........................ 402,166
--------
Change in net assets.............................. 426,273
NET ASSETS:
Beginning of period............................... 0
--------
End of period..................................... $426,273
========
</TABLE>
See Notes to Financial Statements
S-24
<PAGE>
VARIABLE LIFE ACCOUNT C
CONDENSED FINANCIAL INFORMATION -- Period Ended September 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------
Value
Per Unit Increase (Decrease) Units
-------- in Value of Outstanding Reserves
Beginning End Accumulation at End at End
of Period of Period Unit of Period of Period
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
AETNA BALANCED VP, INC.:
NYSUT Individual Life $15.582 $15.649 0.43%(1) 2,038.0 $ 31,894
------------------------------------------------------------------------------------------------------------------------
AETNA BOND VP:
NYSUT Individual Life 11.284 11.771 4.32%(1) 576.4 6,785
------------------------------------------------------------------------------------------------------------------------
AETNA CROSSROADS VP:
NYSUT Individual Life 13.505 13.480 (0.19%)(1) 4.6 61
------------------------------------------------------------------------------------------------------------------------
AETNA GROWTH AND INCOME VP:
NYSUT Individual Life 15.996 15.469 (3.29%)(1) 3,310.5 51,210
------------------------------------------------------------------------------------------------------------------------
AETNA INDEX PLUS LARGE CAP VP:
NYSUT Individual Life 19.489 19.186 (1.55%)(1) 5,951.3 114,180
------------------------------------------------------------------------------------------------------------------------
AETNA LEGACY VP:
NYSUT Individual Life 13.057 13.214 1.20%(1) 202.6 2,677
------------------------------------------------------------------------------------------------------------------------
AETNA MONEY MARKET VP:
NYSUT Individual Life 11.489 11.756 2.32%(1) 456.1 5,362
------------------------------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO:
NYSUT Individual Life 13.549 14.233 5.05%(1) 1,266.3 18,022
------------------------------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND II:
CONTRAFUND PORTFOLIO:
NYSUT Individual Life 18.891 18.788 (0.55%)(1) 1,722.9 32,370
------------------------------------------------------------------------------------------------------------------------
JANUS ASPEN SERIES:
AGGRESSIVE GROWTH PORTFOLIO:
NYSUT Individual Life 34.576 34.185 (1.13%)(1) 1,042.4 35,635
------------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO:
NYSUT Individual Life 19.164 19.012 (0.79%)(1) 1,328.9 25,264
------------------------------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO:
NYSUT Individual Life 22.924 22.471 (1.98%)(1) 1,685.3 37,870
------------------------------------------------------------------------------------------------------------------------
WORLDWIDE GROWTH PORTFOLIO:
NYSUT Individual Life 24.554 22.657 (7.73%)(1) 2,106.6 47,730
------------------------------------------------------------------------------------------------------------------------
OPPENHEIMER FUNDS:
GLOBAL SECURITIES FUND/VA:
NYSUT Individual Life 18.601 18.436 (0.89%)(1) 23.5 434
------------------------------------------------------------------------------------------------------------------------
STRATEGIC BOND FUND/VA:
NYSUT Individual Life 10.230 10.461 2.26%(1) 114.8 1,201
------------------------------------------------------------------------------------------------------------------------
PORTFOLIO PARTNERS, INC. (PPI):
PPI MFS CAPITAL OPPORTUNITIES PORTFOLIO:
NYSUT Individual Life 18.378 18.183 (1.06%)(1) 544.4 9,898
------------------------------------------------------------------------------------------------------------------------
PPI MFS EMERGING EQUITIES PORTFOLIO:
NYSUT Individual Life 21.989 19.441 (11.59%)(1) 143.2 2,784
------------------------------------------------------------------------------------------------------------------------
PPI MFS RESEARCH GROWTH PORTFOLIO:
NYSUT Individual Life 16.074 16.514 2.74%(1) 44.2 730
------------------------------------------------------------------------------------------------------------------------
PPI SCUDDER INTERNATIONAL GROWTH PORTFOLIO:
NYSUT Individual Life 18.123 16.033 (11.53%)(1) 55.7 893
------------------------------------------------------------------------------------------------------------------------
PPI T. ROWE PRICE GROWTH EQUITY PORTFOLIO:
NYSUT Individual Life 14.768 15.186 2.83%(1) 83.8 1,273
------------------------------------------------------------------------------------------------------------------------
Total $426,273
========================================================================================================================
</TABLE>
(1) - Funds were transferred from the Separate Account Variable Life B May 1,
2000.
S-25
<PAGE>
VARIABLE LIFE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- September 30, 2000 (Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Variable Life Account C (the "Account") is a separate account established by
Aetna Life Insurance and Annuity Company (the "Company") and is registered
under the Investment Company Act of 1940 as a unit investment trust. The
Account is sold exclusively for use with the variable life insurance
contracts as defined under the Internal Revenue Code of 1986, as amended. The
Account commenced operations on May 1, 2000.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect amounts reported therein. Actual results could differ from these
estimates.
A. VALUATION OF INVESTMENTS
Investments in the following Funds are stated at the closing net asset value
per share as determined by each Fund on September 30, 2000:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Oppenheimer Funds:
Aetna Bond VP - Global Securities Fund/VA
Aetna Crossroads VP - Strategic Bond Fund/VA
Aetna Growth and Income VP Portfolio Partners, Inc. (PPI):
Aetna Index Plus Large Cap VP - PPI MFS Capital Opportunities Portfolio
Aetna Legacy VP - PPI MFS Emerging Equities Portfolio
Aetna Money Market VP - PPI MFS Research Growth Portfolio
Fidelity Investments Variable Insurance Products - PPI Scudder International Growth Portfolio
Fund: - PPI T. Rowe Price Growth Equity Portfolio
- Equity-Income Portfolio
Fidelity Investments Variable Insurance Products
Fund II:
- Contrafund Portfolio
Janus Aspen Series:
- Aggressive Growth Portfolio
- Balanced Portfolio
- Growth Portfolio
- Worldwide Growth Portfolio
</TABLE>
B. OTHER
Investment transactions are accounted for on a trade date basis and dividend
income is recorded on the ex-dividend date. The cost of investments sold is
determined by specific identification.
C. FEDERAL INCOME TAXES
The operations of the Account form a part of, and are taxed with, the total
operations of the Company which is taxed as a life insurance company under
the Internal Revenue Code of 1986, as amended.
2. VALUATION PERIOD DEDUCTIONS
Deductions by the Account for mortality and expense risk charges are made in
accordance with the terms of the contracts and are paid to the Company.
S-26
<PAGE>
VARIABLE LIFE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- September 30, 2000 (Unaudited and continued):
3. DIVIDEND INCOME
On an annual basis, the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions to the
Account are automatically reinvested in shares of the Funds. The Account's
proportionate share of each Fund's undistributed net investment income
(distributions in excess of net investment income) and accumulated net
realized gain (loss) on investments is included in net unrealized gain (loss)
in the Statement of Operations.
4. PURCHASES AND SALES OF INVESTMENTS
The cost of purchases and proceeds from sales of investments other than
short-term investments for the year ended September 30, 2000 aggregated
$277,732 and $81,321.
S-27
<PAGE>
VARIABLE LIFE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- September 30, 2000 (Unaudited and continued):
5. SUPPLEMENTAL INFORMATION TO STATEMENT OF OPERATIONS
<TABLE>
Net
Realized
Gain
Valuation Proceeds Cost of (Loss)
Period from Investments on
PERIOD ENDED SEPTEMBER 30, 2000 Dividends Deductions Sales Sold Investments
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AETNA BALANCED VP, INC.: $738 ($144) $8,970 $8,476 $494
Policyholders' account values
-------------------------------------------------------------------------------------------------
AETNA BOND VP: 75 (34) 1,005 1,034 (29)
Policyholders' account values
-------------------------------------------------------------------------------------------------
AETNA CROSSROADS VP: 0 0 43 43 0
Policyholders' account values
-------------------------------------------------------------------------------------------------
AETNA GROWTH AND INCOME VP: 1,877 (263) 6,296 6,826 (530)
Policyholders' account values
-------------------------------------------------------------------------------------------------
AETNA INDEX PLUS LARGE CAP VP: 4,746 (607) 7,980 7,242 738
Policyholders' account values
-------------------------------------------------------------------------------------------------
AETNA LEGACY VP: 40 (12) 806 798 8
Policyholders' account values
-------------------------------------------------------------------------------------------------
AETNA MONEY MARKET VP: 1,143 (75) 23,782 24,111 (329)
Policyholders' account values
-------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO: 1,258 (93) 7,137 8,363 (1,226)
Policyholders' account values
-------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND II:
CONTRAFUND PORTFOLIO: 3,537 (188) 2,077 2,023 54
Policyholders' account values
-------------------------------------------------------------------------------------------------
JANUS ASPEN SERIES:
AGGRESSIVE GROWTH PORTFOLIO: 3,099 (154) 7,382 6,288 1,094
Policyholders' account values
-------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO: 2,529 (170) 2,225 2,006 219
Policyholders' account values
-------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO: 2,650 (228) 3,833 3,084 749
Policyholders' account values
-------------------------------------------------------------------------------------------------
WORLDWIDE GROWTH PORTFOLIO: 3,667 (255) 7,743 5,266 2,477
Policyholders' account values
-------------------------------------------------------------------------------------------------
OPPENHEIMER FUNDS:
GLOBAL SECURITIES FUND/VA: 2 0 51 52 (1)
Policyholders' account values
-------------------------------------------------------------------------------------------------
STRATEGIC BOND FUND/VA: 71 (6) 222 226 (4)
Policyholders' account values
-------------------------------------------------------------------------------------------------
PORTFOLIO PARTNERS, INC. (PPI):
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO:(1) 1,269 (46) 799 596 203
Policyholders' account values
-------------------------------------------------------------------------------------------------
PPI MFS EMERGING EQUITIES
PORTFOLIO: 24 (12) 421 319 102
Policyholders' account values
-------------------------------------------------------------------------------------------------
PPI MFS RESEARCH GROWTH
PORTFOLIO: 51 (4) 132 105 27
Policyholders' account values
-------------------------------------------------------------------------------------------------
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO: 52 (2) 79 92 (13)
Policyholders' account values
-------------------------------------------------------------------------------------------------
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO: 96 (6) 338 275 63
Policyholders' account values
-------------------------------------------------------------------------------------------------
TOTAL VARIABLE LIFE ACCOUNT C $26,924 ($2,299) $81,321 $77,225 $4,096
=================================================================================================
</TABLE>
(1) - Effective May 1, 2000, PPI MFS Value Equity Portfolio's name changed
to PPI MFS Capital Opportunities Portfolio.
S-28
<PAGE>
<TABLE>
Net
Net Unrealized Change in Net Increase
Gain (Loss) Unrealized (Decrease) in
-------------------- Gain Net Assets
Beginning End (Loss) Resulting
of of on from
Period Period Investments Operations
----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AETNA BALANCED VP, INC.: $0 ($223) ($223) $865
Policyholders' account values
----------------------------------------------------------------------------------------
AETNA BOND VP: 0 88 88 100
Policyholders' account values
----------------------------------------------------------------------------------------
AETNA CROSSROADS VP: 0 1 1 1
Policyholders' account values
----------------------------------------------------------------------------------------
AETNA GROWTH AND INCOME VP: 0 (3,159) (3,159) (2,075)
Policyholders' account values
----------------------------------------------------------------------------------------
AETNA INDEX PLUS LARGE CAP VP: 0 2,381 2,381 7,258
Policyholders' account values
----------------------------------------------------------------------------------------
AETNA LEGACY VP: 0 38 38 74
Policyholders' account values
----------------------------------------------------------------------------------------
AETNA MONEY MARKET VP: 0 101 101 840
Policyholders' account values
----------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO: 0 533 533 472
Policyholders' account values
----------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND II:
CONTRAFUND PORTFOLIO: 0 105 105 3,508
Policyholders' account values
----------------------------------------------------------------------------------------
JANUS ASPEN SERIES:
AGGRESSIVE GROWTH PORTFOLIO: 0 (1,096) (1,096) 2,943
Policyholders' account values
----------------------------------------------------------------------------------------
BALANCED PORTFOLIO: 0 (830) (830) 1,748
Policyholders' account values
----------------------------------------------------------------------------------------
GROWTH PORTFOLIO: 0 830 830 4,001
Policyholders' account values
----------------------------------------------------------------------------------------
WORLDWIDE GROWTH PORTFOLIO: 0 (3,328) (3,328) 2,561
Policyholders' account values
----------------------------------------------------------------------------------------
OPPENHEIMER FUNDS:
GLOBAL SECURITIES FUND/VA: 0 2 2 3
Policyholders' account values
----------------------------------------------------------------------------------------
STRATEGIC BOND FUND/VA: 0 (26) (26) 35
Policyholders' account values
----------------------------------------------------------------------------------------
PORTFOLIO PARTNERS, INC. (PPI):
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO:(1) 0 11 11 1,437
Policyholders' account values
----------------------------------------------------------------------------------------
PPI MFS EMERGING EQUITIES
PORTFOLIO: 0 (23) (23) 91
Policyholders' account values
----------------------------------------------------------------------------------------
PPI MFS RESEARCH GROWTH
PORTFOLIO: 0 46 46 120
Policyholders' account values
----------------------------------------------------------------------------------------
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO: 0 (99) (99) (62)
Policyholders' account values
----------------------------------------------------------------------------------------
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO: 0 34 34 187
Policyholders' account values
----------------------------------------------------------------------------------------
TOTAL VARIABLE LIFE ACCOUNT C $0 ($4,614) ($4,614) $24,107
========================================================================================
</TABLE>
S-29
<PAGE>
VARIABLE LIFE ACCOUNT C
NOTES TO FINANCIAL STATEMENTS -- September 30, 2000 (Unaudited and continued):
6. SUPPLEMENTAL INFORMATION TO STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
Net Net
Net Change in Increase
Realized Unrealized (Decrease) Net Assets
Net Gain (Loss) Gain (Loss) in Net Assets --------------------
Investment on on from Unit Beginning End
PERIOD ENDED SEPTEMBER 30, 2000 Income Investments Investments Transactions of Period of Period
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
AETNA BALANCED VP, INC.: $594 $494 ($223) $31,029 $0 $31,894
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
AETNA BOND VP: 41 (29) 88 6,685 0 6,785
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
AETNA CROSSROADS VP: 0 0 1 60 0 61
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
AETNA GROWTH AND INCOME VP: 1,614 (530) (3,159) 53,285 0 51,210
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
AETNA INDEX PLUS LARGE CAP VP: 4,139 738 2,381 106,922 0 114,180
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
AETNA LEGACY VP: 28 8 38 2,603 0 2,677
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
AETNA MONEY MARKET VP: 1,068 (329) 101 4,522 0 5,362
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO: 1,165 (1,226) 533 17,550 0 18,022
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
FIDELITY INVESTMENTS VARIABLE
INSURANCE PRODUCTS FUND II:
CONTRAFUND PORTFOLIO: 3,349 54 105 28,862 0 32,370
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
JANUS ASPEN SERIES:
AGGRESSIVE GROWTH PORTFOLIO: 2,945 1,094 (1,096) 32,692 0 35,635
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO: 2,360 219 (830) 23,515 0 25,264
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
GROWTH PORTFOLIO: 2,422 749 830 33,869 0 37,870
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
WORLDWIDE GROWTH PORTFOLIO: 3,411 2,477 (3,328) 45,170 0 47,730
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
OPPENHEIMER FUNDS:
GLOBAL SECURITIES FUND/VA: 2 (1) 2 431 0 434
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
STRATEGIC BOND FUND/VA: 65 (4) (26) 1,166 0 1,201
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
PORTFOLIO PARTNERS, INC. (PPI):
PPI MFS CAPITAL OPPORTUNITIES
PORTFOLIO:(1) 1,223 203 11 8,461 0 9,898
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
PPI MFS EMERGING EQUITIES
PORTFOLIO: 12 102 (23) 2,693 0 2,784
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
PPI MFS RESEARCH GROWTH
PORTFOLIO: 47 27 46 610 0 730
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
PPI SCUDDER INTERNATIONAL GROWTH
PORTFOLIO: 50 (13) (99) 955 0 893
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
PPI T. ROWE PRICE GROWTH EQUITY
PORTFOLIO: 90 63 34 1,086 0 1,273
Policyholders' account values
-------------------------------------------------------------------------------------------------------------------------
TOTAL VARIABLE LIFE ACCOUNT C $24,625 $4,096 ($4,614) $402,166 $0 $426,273
=========================================================================================================================
</TABLE>
(1) - Effective May 1, 2000, PPI MFS Value Equity Portfolio's name changed
to PPI MFS Capital Opportunities Portfolio.
S-30
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
INDEX TO QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
--------
<S> <C>
Consolidated Financial Statements:
Consolidated Statements of Income for the Three-Month and
Nine-Month Periods Ended September 30, 2000 and 1999
(unaudited)............................................. F-34
Consolidated Balance Sheets as of September 30, 2000
(unaudited) and December 31, 1999....................... F-35
Consolidated Statements of Changes in Shareholder's Equity
for the Nine Month Periods Ended September 30, 2000 and
1999 (unaudited)........................................ F-36
Consolidated Statements of Cash Flows for the Nine Month
Periods Ended September 30, 2000 and 1999
(unaudited)............................................. F-37
Condensed Notes to Consolidated Financial Statements
(unaudited)............................................. F-38
</TABLE>
F-33
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONSOLIDATED STATEMENTS OF INCOME
(MILLIONS)
<TABLE>
<CAPTION>
THREE MONTHS
ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- -------------------
2000 1999 2000 1999
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Revenue:
Premiums............................................... $ 41.8 $ 44.2 $ 117.1 $ 86.6
Charges assessed against policyholders................. 119.9 98.6 351.0 283.1
Net investment income.................................. 231.9 230.6 681.5 668.8
Net realized capital losses............................ (11.2) (11.1) (23.1) (5.4)
Other income........................................... 44.0 20.1 117.5 82.5
------ ------ -------- --------
Total revenue............................................ 426.4 382.4 1,244.0 1,115.6
Benefits and expenses:
Current and future benefits............................ 199.8 201.8 598.3 564.0
Operating expenses:
Salaries and related benefits........................ 52.3 35.0 144.0 107.7
Other................................................ 60.1 54.0 166.4 155.1
Amortization of deferred policy acquisition costs...... 36.8 25.9 96.4 77.6
------ ------ -------- --------
Total benefits and expenses.............................. 349.0 316.7 1,005.1 904.4
------ ------ -------- --------
Income from continuing operations before income taxes.... 77.4 65.7 238.9 211.2
Income taxes........................................... 22.7 21.8 75.9 69.6
------ ------ -------- --------
Income from continuing operations........................ 54.7 43.9 163.0 141.6
Discontinued operations, net of tax:
Amortization of deferred gain on sale.................. 1.5 1.4 4.7 4.1
------ ------ -------- --------
Net income............................................... $ 56.2 $ 45.3 $ 167.7 $ 145.7
====== ====== ======== ========
</TABLE>
SEE CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-34
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONSOLIDATED BALANCE SHEETS
(MILLIONS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
2000 1999
-------------- -------------
(UNAUDITED)
<S> <C> <C>
ASSETS
Investments:
Debt securities available for sale, at fair value
(amortized cost: $11,193.0 and $11,657.9)............... $11,075.8 $11,410.1
Equity securities, at fair value:
Nonredeemable preferred stock (cost: $107.9 and
$134.7)............................................... 101.0 130.9
Investment in affiliated mutual funds (cost: $13.0 and
$63.5)................................................ 18.7 64.1
Common stock (cost: $5.6 and $6.7)...................... 13.0 11.5
Short-term investments.................................... 81.5 74.2
Mortgage loans............................................ 4.6 6.7
Policy loans.............................................. 338.6 314.0
Other investments......................................... 13.5 13.2
--------- ---------
Total investments........................................... 11,646.7 12,024.7
Cash and cash equivalents................................. 987.3 694.4
Short-term investments under securities loan agreement.... 753.3 232.5
Accrued investment income................................. 148.7 150.7
Premiums due and other receivables........................ 97.3 298.3
Reinsurance recoverable................................... 3,003.4 3,001.2
Deferred income taxes..................................... 93.7 150.4
Deferred policy acquisition costs......................... 1,155.2 1,046.4
Other assets.............................................. 108.3 96.5
Separate Accounts assets.................................. 40,059.6 38,692.6
--------- ---------
Total assets................................................ $58,053.5 $56,387.7
========= =========
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities:
Future policy benefits.................................... $ 3,938.2 $ 3,850.4
Unpaid claims and claim expenses.......................... 29.3 27.3
Policyholders' funds left with the Company................ 10,887.4 11,121.7
--------- ---------
Total insurance reserve liabilities......................... 14,854.9 14,999.4
Payables under securities loan agreement.................. 753.3 232.5
Current income taxes...................................... 13.3 14.7
Other liabilities......................................... 797.9 1,062.8
Separate Accounts liabilities............................. 40,059.6 38,692.6
--------- ---------
Total liabilities........................................... 56,479.0 55,002.0
========= =========
Shareholder's equity:
Common stock, par value $50 (100,000 shares authorized;
55,000 shares issued and outstanding)................... 2.8 2.8
Paid-in capital........................................... 431.9 431.9
Accumulated other comprehensive loss...................... (14.5) (44.8)
Retained earnings......................................... 1,154.3 995.8
--------- ---------
Total shareholder's equity.................................. 1,574.5 1,385.7
--------- ---------
Total liabilities and shareholder's equity.................. $58,053.5 $56,387.7
========= =========
</TABLE>
SEE CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-35
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(MILLIONS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
-------------------------
2000 1999
----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
Shareholder's equity, beginning of period................... $1,385.7 $1,394.5
Comprehensive income:
Net income................................................ 167.7 145.7
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) on securities $46.6, ($200.5)
pretax) (1)........................................... 30.3 (130.3)
-------- --------
Total comprehensive income.................................. 198.0 15.4
-------- --------
Other changes............................................... 0.9 0.5
Common stock dividends...................................... (10.1) (29.8)
-------- --------
Shareholder's equity, end of period......................... $1,574.5 $1,380.6
======== ========
</TABLE>
(1) Net of reclassification adjustments.
SEE CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-36
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(MILLIONS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
-------------------------
2000 1999
----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
Cash Flows from Operating Activities:
Net income................................................ $ 167.7 $ 145.7
Adjustments to reconcile net income to net cash provided
by (used for) operating activities:
Net accretion of discount on investments................ (25.2) (20.6)
Amortization of deferred gain on sale................... (4.7) (4.1)
Net realized capital losses............................. 23.1 5.4
Changes in assets and liabilities:
Decrease (increase) in accrued investment income...... 2.0 (11.4)
Decrease in premiums due and other receivables........ 13.2 31.6
Increase in policy loans.............................. (24.6) (16.7)
Increase in deferred policy acquisition costs......... (108.8) (114.7)
Increase (decrease) in universal life account
balances............................................ 21.0 (220.5)
Increase in other insurance reserve liabilities....... 84.6 232.1
Net (decrease) in other liabilities and other
assets.............................................. (69.0) (75.5)
Increase (decrease) in income taxes................... 36.6 (280.1)
--------- ---------
Net cash provided by (used for) operating activities........ 115.9 (328.8)
--------- ---------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale.................... 9,074.5 4,017.1
Equity securities..................................... 107.4 89.9
Mortgage loans........................................ 2.1 2.3
Investment maturities and collections of:
Debt securities available for sale.................... 488.0 995.2
Short-term investments................................ 57.2 60.6
Cost of investment purchases in:
Debt securities available for sale.................... (9,128.6) (4,805.5)
Equity securities..................................... (16.5) (9.4)
Short-term investments................................ (89.9) (68.4)
Decrease in property and equipment...................... 2.9 7.6
Other, net.............................................. (4.6) 6.2
--------- ---------
Net cash provided by investing activities................... 492.5 295.6
--------- ---------
Cash Flows from Financing Activities:
Deposits and interest credited for investment
contracts............................................. 1,275.1 1,576.5
Withdrawals of investment contracts..................... (1,606.9) (1,308.4)
Dividends paid to shareholder........................... (10.1) (235.8)
Other, net.............................................. 24.4 170.4
--------- ---------
Net cash (used for) provided by financing activities........ (317.5) 202.7
--------- ---------
Net increase in cash and cash equivalents................... 290.9 169.5
Effect of exchange rate changes on cash and cash
equivalents............................................... 2.0 --
Cash and cash equivalents, beginning of period.............. 694.4 629.4
--------- ---------
Cash and cash equivalents, end of period.................... $ 987.3 $ 798.9
========= =========
Supplemental cash flow information:
Income taxes paid, net.................................. $ 39.4 $ 315.6
========= =========
</TABLE>
SEE CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
F-37
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
(1) BASIS OF PRESENTATION
The consolidated financial statements include Aetna Life Insurance and
Annuity Company ("ALIAC") and its wholly owned subsidiaries, Aetna Insurance
Company of America ("AICA"), Aetna Investment Adviser Holding Company, Inc.
("IA Holdco") and Aetna Investment Services, Inc. (collectively, the "Company").
ALIAC is a wholly owned subsidiary of Aetna Retirement Holdings, Inc.
("HOLDCO"). HOLDCO is a wholly owned subsidiary of Aetna Retirement
Services, Inc., whose ultimate parent is Aetna Inc. ("Aetna"). On June 30, 2000
HOLDCO contributed Aetna Investment Services, Inc. ("AISI") to the Company.
(Refer to note 2). The Company has two business segments: Financial Products and
Investment Management Services. On October 1, 1998, the Company sold its
individual life insurance business to Lincoln National Corporation ("Lincoln")
and accordingly, it is now classified as Discontinued Operations.
These consolidated financial statements have been prepared in accordance
with generally accepted accounting principles and are unaudited. The
contribution of IA Holdco to the Company, which occurred on July 1, 1999, and
the contribution of AISI to the Company were each accounted for in a manner
similar to that of a pooling-of-interests and, accordingly, the Company's
historical consolidated financial statements have been restated to include the
accounts and results of operations of IA Holdco and AISI. Certain
reclassifications have been made to 1999 financial information to conform to the
2000 presentation. These interim statements necessarily rely heavily on
estimates, including assumptions as to annualized tax rates. In the opinion of
management, all adjustments necessary for a fair statement of results for the
interim periods have been made. All such adjustments are of a normal, recurring
nature. The accompanying condensed consolidated financial statements should be
read in conjunction with the consolidated financial statements and related notes
as presented in ALIAC's 1999 Annual Report on Form 10-K. Certain financial
information that is normally included in annual financial statements prepared in
accordance with generally accepted accounting principles, but that is not
required for interim reporting purposes, has been condensed or omitted.
(2) CONTRIBUTION OF AISI FROM HOLDCO
On June 30, 2000, HOLDCO contributed AISI to the Company. AISI is registered
with the Securities Exchange Commission as a broker/dealer and is a member of
the National Association of Securities Dealers, Inc. It is also registered with
the appropriate state securities authorities as a broker/ dealer. The principal
operation of AISI is the sale of fixed and variable annuities and mutual funds
through its registered representatives.
(3) RECENT DEVELOPMENTS
AGREEMENT TO SELL AETNA FINANCIAL SERVICES AND AETNA INTERNATIONAL
On July 20, 2000, Aetna Inc. ("Aetna"), the ultimate parent of the Company,
announced that it reached a definitive agreement to sell its Aetna Financial
Services and Aetna International businesses to ING Groep N.V. ("ING") in a
transaction valued at approximately $7.7 billion. The Company is part of the
Aetna Financial Services business and will be included in the sale to ING. Under
the terms of the agreement, in two effectively simultaneous steps: (1) Aetna
will spin off to its shareholders the shares of a standalone health company that
will be comprised primarily of its Aetna U.S. Healthcare
F-38
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
(3) RECENT DEVELOPMENTS (CONTINUED)
and Large Case Pensions businesses; and (2) Aetna, which then will be comprised
of Aetna Financial Services and Aetna International, will merge with a newly
formed subsidiary of ING.
Aetna's goal is to close the transaction, which is subject to receipt of
required shareholder, regulatory and other consents and approvals, as well as
other closing conditions, by year-end 2000. An Aetna shareholders' meeting has
been scheduled for November 30, 2000 to consider the transaction and certain
other matters. The full impact of the sale to ING on the Company's financial
position and results of operations cannot be determined at this time.
(4) NEW ACCOUNTING STANDARD
On January 1, 2000, the Company adopted Statement of Position 98-7, Deposit
Accounting: Accounting for Insurance and Reinsurance Contracts That Do Not
Transfer Insurance Risk, issued by the American Institute of Certified Public
Accountants. This statement provides guidance on how to account for all
insurance and reinsurance contracts that do not transfer insurance risk, except
for long-duration life and health insurance contracts. The adoption of this
standard had no impact on the Company's financial position or results of
operations.
(5) FUTURE ACCOUNTING STANDARD
In September 2000, the Financial Accounting Standards Board ("FASB") issued
Financial Accounting Standard ("FAS") No. 140, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities which replaces
FAS No. 125, Accounting for Transfers and Services of Financial Assets and
Extinguishments of Liabilities. This standard revises the methods for accounting
for securitizations and other transfers of financial assets and collateral as
outlined in FAS No. 125, and requires certain additional disclosures. For
transfers and servicing of financial assets and extinguishments of liabilities,
this standard will be effective for the Company's June 30, 2001 financial
statements. However, for disclosures regarding securitizations and collateral,
as well as recognition and reclassification of collateral, this standard will be
effective for the Company's December 31, 2000 financial statements. The Company
is currently evaluating the impact of the adoption of this standard, however it
does not expect the adoption of this standard to have a material effect on its
financial position or results of operations.
In June 1998, the FASB issued FAS No. 133, Accounting for Derivative
Instruments and Hedging Activities. In June 2000, further guidance related to
accounting for derivative instruments and hedging activities was provided when
the FASB issued FAS No. 138, Accounting for Certain Derivative Instruments and
Certain Hedging Activities -- an Amendment of FASB Statement No. 133. This
standard, as amended, requires companies to record all derivatives on the
balance sheet as either assets or liabilities and measure those instruments at
fair value. The manner in which companies are to record gains or losses
resulting from changes in the values of those derivatives depends on the use of
the derivative and whether it qualifies for hedge accounting. As amended by
FAS No. 137, Accounting for Derivative Instruments and Hedging Activities --
Deferral of the Effective Date of FASB Statement No. 133, this standard is
effective for the Company's financial statements beginning January 1, 2001, with
early adoption permitted. The impact of FAS No. 133, as amended, on the
Company's financial statements will vary based on certain factors including
future interpretive guidance from the FASB, the
F-39
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
(5) FUTURE ACCOUNTING STANDARD (CONTINUED)
extent of the Company's hedging activities, the types of hedging instruments
used and the effectiveness of such instruments. The Company is evaluating the
impact of the adoption of this standard, as amended, and currently does not
believe that it will have a material effect on the Company's financial position
or results of operations.
(6) ADDITIONAL INFORMATION -- ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Changes in accumulated other comprehensive income (loss) related to changes
in unrealized gains (losses) on securities (excluding those related to
experience-rated contractholders) were as follows:
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
---------------------------------------
(MILLIONS) 2000 1999
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Unrealized holding gains (losses) arising during the
period (1)................................................ $31.7 $(120.4)
Less: reclassification adjustments for accretion of net
investment discounts and gains included in net
income (2)............................................... 1.4 9.9
-----------------------------------------------------------------------------------------------------
Net unrealized gains (losses) on securities................ $30.3 $(130.3)
=====================================================================================================
</TABLE>
(1) Pretax unrealized holding gains (losses) arising during the period were
$48.7 million and $(185.3) million for the nine months ended September 30,
2000 and September 30, 1999, respectively.
(2) Pretax reclassification adjustments for accretion of net investment
discounts and gains included in net income for the period were $2.1 million
and $15.2 million for the nine months ended September 30, 2000 and
September 30, 1999, respectively.
F-40
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
(7) SEGMENT INFORMATION
Summarized financial information for the Company's principal operations for
the three months ended September 30, was as follows:
<TABLE>
<CAPTION>
INVESTMENT
FINANCIAL MANAGEMENT DISCONTINUED
(MILLIONS) PRODUCTS (1) SERVICES (1) OPERATIONS (1) OTHER (1) TOTAL
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
2000
Revenues from external customers............. $ 182.4 $36.4 $ -- $(13.1) $ 205.7
Net investment income........................ 230.0 0.9 -- 1.0 231.9
---------------------------------------------------------------------------------------------------------------------------------
Total revenue excluding net realized capital
losses...................................... $ 412.4 $37.3 $ -- $(12.1) $ 437.6
=================================================================================================================================
Operating earnings (2)....................... $ 55.0 $ 9.2 $ -- $ (2.2) $ 62.0
Net realized capital losses, net of tax...... (7.3) -- -- -- (7.3)
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations..... 47.7 9.2 -- (2.2) 54.7
Discontinued operations, net of tax:
Amortization of deferred gain on sale..... -- -- 1.5 -- 1.5
---------------------------------------------------------------------------------------------------------------------------------
Net income (loss)............................ $ 47.7 $ 9.2 $1.5 $ (2.2) $ 56.2
=================================================================================================================================
1999
Revenues from external customers............. $ 144.1 $29.8 $ -- $(11.0) $ 162.9
Net investment income........................ 229.3 0.4 -- 0.9 230.6
---------------------------------------------------------------------------------------------------------------------------------
Total revenue excluding net realized capital
losses...................................... $ 373.4 $30.2 $ -- $(10.1) $ 393.5
=================================================================================================================================
Operating earnings (2)....................... $ 47.9 $ 7.5 $ -- $ (4.3) $ 51.1
Net realized capital losses, net of tax...... (7.2) -- -- -- (7.2)
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations..... 40.7 7.5 -- (4.3) 43.9
Discontinued operations, net of tax:
Amortization of deferred gain on sale..... -- -- 1.4 -- 1.4
---------------------------------------------------------------------------------------------------------------------------------
Net income (loss)............................ $ 40.7 $ 7.5 $1.4 $ (4.3) $ 45.3
=================================================================================================================================
</TABLE>
(1) Financial Products include: deferred and immediate annuity contracts; mutual
funds; distribution services for annuities and mutual funds and programs
offered to qualified plans and nonqualified deferred compensation plans that
package administrative and recordkeeping services along with a menu of
investment options, investment advisory services and pension plan
administrative services. Investment Management Services include the
following services: investment advisory services to affiliated and
unaffiliated institutional and retail clients; underwriting; distribution
for Company mutual funds and an affiliate's separate accounts; and trustee,
administrative and other services to retirement plans. Discontinued
Operations include life insurance products. Other includes consolidating
adjustments and Year 2000 costs of $2.6 million in 1999.
(2) Operating earnings is comprised of net income (loss) excluding net realized
capital gains and losses. While operating earnings is the measure of profit
or loss used by the Company's management when assessing performance or
making operating decisions, it does not replace operating income or net
income as a measure of profitability.
F-41
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
(7) SEGMENT INFORMATION (CONTINUED)
Summarized financial information for the Company's principal operations for
the nine months ended September 30, was as follows:
<TABLE>
<CAPTION>
INVESTMENT
FINANCIAL MANAGEMENT DISCONTINUED
(MILLIONS) PRODUCTS (1) SERVICES (1) OPERATIONS (1) OTHER (1) TOTAL
<S> <C> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
2000
Revenues from external customers............. $ 519.6 $104.2 $ -- $(38.2) $ 585.6
Net investment income........................ 676.4 2.1 -- 3.0 681.5
---------------------------------------------------------------------------------------------------------------------------------
Total revenue excluding net realized capital
(losses) gains............................ $1,196.0 $106.3 $ -- $(35.2) $1,267.1
=================================================================================================================================
Operating earnings (2)....................... $ 158.1 $ 25.7 $ -- $ (5.8) $ 178.0
Net realized capital (losses) gains, net of
tax......................................... (15.1) 0.1 -- -- (15.0)
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from continuing operations..... 143.0 25.8 -- (5.8) 163.0
Discontinued operations, net of tax:
Amortization of deferred gain on sale..... -- -- 4.7 -- 4.7
---------------------------------------------------------------------------------------------------------------------------------
Net income (loss)............................ $ 143.0 $ 25.8 $4.7 $ (5.8) $ 167.7
=================================================================================================================================
1999
Revenues from external customers............. $ 399.1 $ 86.4 $ -- $(33.3) $ 452.2
Net investment income........................ 665.2 1.0 -- 2.6 668.8
---------------------------------------------------------------------------------------------------------------------------------
Total revenue excluding net realized capital
losses...................................... $1,064.3 $ 87.4 $ -- $(30.7) $1,121.0
=================================================================================================================================
Operating earnings (2)....................... $ 142.6 $ 21.1 $ -- $(18.6) $ 145.1
Net realized capital losses, net of tax...... (3.5) -- -- -- (3.5)
---------------------------------------------------------------------------------------------------------------------------------
Income from continuing operations............ 139.1 21.1 -- (18.6) 141.6
Discontinued operations, net of tax:
Amortization of deferred gain on sale..... -- -- 4.1 -- 4.1
---------------------------------------------------------------------------------------------------------------------------------
Net income (loss)............................ $ 139.1 $ 21.1 $4.1 $(18.6) $ 145.7
=================================================================================================================================
</TABLE>
(1) Financial Products include: deferred and immediate annuity contracts; mutual
funds; distribution services for annuities and mutual funds and programs
offered to qualified plans and nonqualified deferred compensation plans that
package administrative and recordkeeping services along with a menu of
investment options, investment advisory services and pension plan
administrative services. Investment Management Services include the
following services: investment advisory services to affiliated and
unaffiliated institutional and retail clients; underwriting; distribution
for Company mutual funds and an affiliate's separate accounts; and trustee,
administrative and other services to retirement plans. Discontinued
Operations include life insurance products. Other includes consolidating
adjustments and Year 2000 costs of $13.0 million in 1999.
(2) Operating earnings is comprised of net income (loss) excluding net realized
capital gains and losses. While operating earnings is the measure of profit
or loss used by the Company's management when assessing performance or
making operating decisions, it does not replace operating income or net
income as a measure of profitability.
F-42
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA RETIREMENT HOLDINGS, INC.)
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
(8) COMMITMENTS AND CONTINGENT LIABILITIES
COMMITMENTS
Through the normal course of investment operations, the Company commits to
either purchase or sell securities or money market instruments at a specified
future date and at a specified price or yield. The inability of counterparties
to honor these commitments may result in either higher or lower replacement
cost. Also, there is likely to be a change in the value of the securities
underlying the commitments between the time that the Company enters into the
commitments and the specified future date on which the Company must purchase or
sell the securities, as the case may be. As of September 30, 2000, there were no
such off-balance sheet commitments.
LITIGATION
In recent years, several life insurance and annuity companies have been
named as defendants in class action lawsuits relating to life insurance and
annuity pricing and sales practices. The Company has been a defendant in two
such lawsuits.
A purported class action complaint was filed in the Circuit Court of
Lauderdale County, Alabama on March 28, 2000 by Loretta Shaner against ALIAC
(the "Shaner Complaint"). This case was removed to the United States District
Court for the Northern District of Alabama. The Shaner Complaint sought
unspecified compensatory damages from ALIAC and unnamed affiliates of ALIAC. The
Shaner Complaint claimed that ALIAC's sale of deferred annuity products for use
as investments in tax-deferred contributory retirement plans (e.g., IRAs) was
improper. On August 31, 2000, the Court entered an order and judgement
dismissing the case. The case has been refiled as an individual action in the
Alabama state court.
A purported class action complaint was filed in the United States District
Court for the Middle District of Florida on June 30, 2000, by Helen Reese,
Richard Reese, Villere Bergeron and Allan Eckert against ALIAC (the "Reese
Complaint"). The Reese Complaint seeks compensatory and punitive damages and
injunctive relief from ALIAC. The Reese Complaint claims that ALIAC engaged in
unlawful sales practices in marketing life insurance policies. ALIAC has moved
to dismiss the Reese Complaint for failure to state a claim upon which relief
can be granted. This litigation is in the preliminary stages. The Company
intends to defend the action vigorously.
The Company is also involved in numerous other lawsuits arising, for the
most part, in the ordinary course of its business operations. While the outcome
of the litigation against the Company referred to in this paragraph cannot be
determined at this time, after consideration of the defenses available to the
Company, applicable insurance coverage and any related reserves established, the
litigation referred to in this paragraph is not expected to result in liability
for amounts material to the financial condition of the Company, although it may
adversely affect results of operations in future periods.
(9) DIVIDENDS
During 2000, the Company paid $10.1 million in dividends to HOLDCO, which
did not require approval from the Insurance Commissioner of the State of
Connecticut.
F-43
X.89953-00 December 2000
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
UNDERTAKING PURSUANT TO RULE 484
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
INDEMNIFICATION
Section 33-779 of the Connecticut General Statutes ("CGS") provides that a
corporation may provide indemnification of or advance expenses to a director,
officer, employee or agent only as permitted by Sections 33-770 to 33-778,
inclusive, of the CGS. Reference is hereby made to Section 33-771(e) of the CGS
regarding indemnification of directors and Section 33-776(d) of CGS regarding
indemnification of officers, employees and agents of Connecticut corporations.
These statutes provide in general that Connecticut corporations incorporated
prior to January 1, 1997 shall, except to the extent that their certificate of
incorporation expressly provides otherwise, indemnify their directors, officers,
employees and agents against "liability" (defined as the obligation to pay a
judgment, settlement, penalty, fine, including an excise tax assessed with
respect to an employee benefit plan, or reasonable expenses incurred with
respect to a proceeding) when (1) a determination is made pursuant to Section
33-775 that the party seeking indemnification has met the standard of conduct
set forth in Section 33-771 or (2) a court has determined that indemnification
is appropriate pursuant to Section 33-774. Under Section 33-775, the
determination of and the authorization for indemnification are made (a) by the
disinterested directors, as defined in Section 33-770(3); (b) by special
counsel; (c) by the shareholders; or (d) in the case of indemnification of an
officer, agent or employee of the
<PAGE>
corporation, by the general counsel of the corporation or such other officer(s)
as the board of directors may specify. Also, Section 33-772 provides that a
corporation shall indemnify an individual who was wholly successful on the
merits or otherwise against reasonable expenses incurred by him in connection
with a proceeding to which he was a party because he was a director of the
corporation. Pursuant to Section 33-771(d), in the case of a proceeding by or in
the right of the corporation or with respect to conduct for which the director,
officer, agent or employee was adjudged liable on the basis that he received a
financial benefit to which he was not entitled, indemnification is limited to
reasonable expenses incurred in connection with the proceeding against the
corporation to which the individual was named a party. reasonable expenses
incurred with respect to a proceeding) when (1) a determination is made pursuant
to Section 33-775 that the party seeking indemnification has met the standard of
conduct set forth in Section 33-771 or (2) a court has determined that
indemnification is appropriate pursuant to Section 33-774. Under Section 33-775,
the determination of and the authorization for indemnification are made (a) by
the disinterested directors, as defined in Section 33-770(3); (b) by special
counsel; (c) by the shareholders; or (d) in the case of indemnification of an
officer, agent or employee of the corporation, by the general counsel of the
corporation or such other officer(s) as the board of directors may specify.
Also, Section 33-772 provides that a corporation shall indemnify an individual
who was wholly successful on the merits or otherwise against reasonable expenses
incurred by him in connection with a proceeding to which he was a party because
he was a director of the corporation. Pursuant to Section 33-771(d), in the case
of a proceeding by or in the right of the corporation or with respect to conduct
for which the director, officer, agent or employee was adjudged liable on the
basis that he received a financial benefit to which he was not entitled,
indemnification is limited to reasonable expenses incurred in connection with
the proceeding against the corporation to which the individual was named a
party.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who was a director, officer, employer or
agent of the corporation. Consistent with the statute, Aetna Inc. has procured
insurance from Lloyd's of London and several major United States and
international excess insurers for its directors and officers and the directors
and officers of its subsidiaries, including the Depositor.
REPRESENTATION PURSUANT TO SECTION 26(e)(2)(A) OF
THE INVESTMENT COMPANY ACT OF 1940
Aetna Life Insurance and Annuity Company represents that the fees and charges
deducted under the policies covered by this registration statement, in the
aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the insurance company.
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 1 TO
THE REGISTRATION STATEMENT
This Post-Effective Amendment No. 1 to Registration Statement No. 1 is comprised
of the following papers and documents:
<PAGE>
- The facing sheet.
- One Supplement dated December 18, 2000 and consisting of 26 pages to the
Flexible Premium Group Variable Universal Life Insurance Life Insurance
Policy for New York State United Teachers Benefit Trust prospectus
- The undertaking to file reports
- The undertaking pursuant to Rule 484
- Indemnification
- Representation pursuant to Section 26(e)(2)(A) of the Investment Company
Act of 1940
- The signatures
- Written consents of the following persons:
A. Consent of Counsel (included as part of Exhibit No. 2 below)
B. Consent of Independent Auditors (included as Exhibit No. 7 below)
The following Exhibits:
1. Exhibits required by paragraph A of instructions to exhibits for
Form N-8B-2:
(1) Resolution establishing Variable Life Account C(1)
(2) Not Applicable
(3)(i) Master General Agent Agreement(2)
(3)(ii) Life Insurance General Agent Agreement(2)
(3)(iii) Broker Agreement(2)
(3)(iv) Broker-Dealer Agreement dated June 7, 2000 between Aetna
Life Insurance and Annuity Company and Aetna Investment
Services, Inc. (AISI) and Letter of Assignment to AISI(3)
(3)(v) Underwriting Agreement dated November 17, 2000 between
Aetna Life Insurance and Annuity Company and Aetna
Investment Services, Inc.(3)
(3)(vi) Life Insurance Broker-Dealer Agreement(2)
(3)(vii) Restated and Amended Third Party Administration and
Transfer Agent Agreement(4)
(4) Not Applicable
(5)(i) Group Policy (70262-97)(5)
(5)(ii) Endorsement (ENYSUTLFSA99(P)) to Group Policy(6)
(5)(iii) Certificate (70263-97) Under Group Policy(5)
(5)(iv) Endorsement (ENYSUTLFLN99) to Certificate(6)
(5)(v) Endorsement (ENYSUTLFSA99(C)) to Certificate(6)
(5)(vi) Disability Benefit Rider (70264-97)(5)
(5)(vii) Accelerated Death Benefit Rider (70265-97)(5)
(5)(viii) Accidental Death Benefit Rider (70266-97)(5)
(5)(ix) Accelerated Death Benefit Disclosure Statement
(DISC/NYSUT)(5)
(5)(x) Children Insurance Rider Term Insurance (70267-97)(5)
(6)(i) Certificate of Incorporation of Aetna Life Insurance and
Annuity Company, Depositor(7)
<PAGE>
(6)(ii) Amendment of Certificate of Incorporation of Aetna Life
Insurance and Annuity Company, Depositor(8)
(6)(iii) By-Laws as amended September 17, 1997 of Aetna Life
Insurance and Annuity Company(9)
(7) Not Applicable
(8)(i) Fund Participation Agreement by and among Aetna Life
Insurance and Annuity Company and Aetna Variable Fund,
Aetna Variable Encore Fund, Aetna Income Shares, Aetna
Balanced VP, Inc., Aetna GET Fund on behalf of each of its
series, Aetna Generation Portfolios, Inc. on behalf of each
of its series, Aetna Variable Portfolios, Inc. on behalf of
each of its series, and Aeltus Investment Management, Inc.
dated as of May 1, 1998(10)
(8)(ii) Amendment dated November 9, 1998 to Fund Participation
Agreement by and among Aetna Life Insurance and Annuity
Company and Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna
GET Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series, Aetna
Variable Portfolios, Inc. on behalf of each of its series,
and Aeltus Investment Management, Inc. dated as of
May 1, 1998(11)
(8)(iii) Second Amendment dated December 31, 1999 to Fund
Participation Agreement by and among Aetna Life Insurance
and Annuity Company and Aetna Variable Fund, Aetna Variable
Encore Fund, Aetna Income Shares, Aetna Balanced VP, Inc.,
Aetna GET Fund on behalf of each of its series, Aetna
Generation Portfolios, Inc. on behalf of each of its
series, Aetna Variable Portfolios, Inc. on behalf of each
of its series, and Aeltus Investment Management, Inc. dated
as of May 1, 1998 and amended on November 9, 1998(12)
(8)(iv) Third Amendment dated February 11, 2000 to Fund
Participation Agreement by and among Aetna Life Insurance
and Annuity Company and Aetna Variable Fund, Aetna Variable
Encore Fund, Aetna Income Shares, Aetna Balanced VP, Inc.,
Aetna GET Fund on behalf of each of its series, Aetna
Generation Portfolios, Inc., on behalf of each of its
series, Aetna Variable Portfolio, Inc., on behalf of each
of its series, and Aeltus Investment Management, Inc.,
dated as of May 1, 1998, amended on November 9, 1998 and
December 31, 1999(13)
(8)(v) Fourth Amendment dated May 1, 2000 to Fund Participation
Agreement by and among Aetna Life Insurance and Annuity
Company and Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna
GET Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series, Aetna
Variable Portfolios, Inc. on behalf of each of its series,
and Aeltus Investment Management, Inc. dated as of
May 1, 1998 and amended on November 9, 1998,
December 31, 1999 and February 11, 2000(13)
(8)(vi) Service Agreement between Aeltus Investment Management,
Inc. and Aetna Life Insurance and Annuity Company in
connection with the sale
<PAGE>
of shares of Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna
GET Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series, and Aetna
Variable Portfolios, Inc. on behalf of each of its series
dated as of May 1, 1998(10)
(8)(vii) Amendment dated November 4, 1998 to Service Agreement
between Aeltus Investment Management, Inc. and Aetna Life
Insurance and Annuity Company in connection with the sale
of shares of Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna
GET Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series and Aetna
Variable Portfolios, Inc. on behalf of each of its series
dated as of May 1, 1998(11)
(8)(viii) Second Amendment dated February 11, 2000 to Service
Agreement between Aeltus Investment Management, Inc. and
Aetna Life Insurance and Annuity Company in connection with
the sales of shares of Aetna Variable Fund, Aetna Variable
Encore Fund, Aetna Income Shares, Aetna Balanced VP, Inc.,
Aetna GET Fund on behalf of each of its series, Aetna
Generation Portfolios, Inc., on behalf of each of its
series and Aetna Variable Portfolio, Inc. on behalf of each
of its series, and Aeltus Investment Management, Inc.,
dated as of May 1, 1998 and amended on November 4, 1998(13)
(8)(ix) Third Amendment dated May 1, 2000 to Service Agreement
between Aeltus Investment Management, Inc. and Aetna Life
Insurance and Annuity Company in connection with the sale
of shares of Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc., Aetna
GET Fund on behalf of each of its series, Aetna Generation
Portfolios, Inc. on behalf of each of its series and Aetna
Variable Portfolios, Inc. on behalf of each of its series
dated as of May 1, 1998, November 4, 1998 and
February 11, 2000(13)
(8)(x) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996 and March 1, 1996(14)
(8)(xi) Fifth Amendment dated as of May 1, 1997 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996 and March 1, 1996(14)
(8)(xii) Sixth Amendment dated November 6, 1997 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February
<PAGE>
1, 1995, May 1, 1995, January 1, 1996, March 1, 1996 and
May 1, 1997(15)
(8)(xiii) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996, March 1, 1996, May 1, 1997
and November 6,1997(10)
(8)(xiv) Eighth Amendment dated December 1, 1999 to Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996, March 1, 1996, May 1, 1997,
November 6, 1997 and May 1, 1998(12)
(8)(xv) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund II
and Fidelity Distributors Corporation dated
February 1, 1994 and amended on December 15, 1994,
February 1, 1995, May 1, 1995, January 1, 1996 and
March 1,1996(8)
(8)(xvi) Fifth Amendment dated as of May 1, 1997 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996, and March 1, 1996(14)
(8)(xvii) Sixth Amendment dated as of January 20, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996, March 1, 1996 and
May 1, 1997(16)
(8)(xviii) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996, March 1, 1996, May 1, 1997
and January 20, 1998(10)
(8)(xix) Eighth Amendment dated December 1, 1999 to Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996, March 1, 1996, May 1, 1997,
January 20, 1998 and May 1, 1998(12)
<PAGE>
(8)(xx) Service Agreement between Aetna Life Insurance and Annuity
Company and Fidelity Investment Institutional Operations
Company dated as of November 1, 1995(17)
(8)(xxi) Amendment dated January 1, 1997 to Service Agreement
between Aetna Life Insurance and Annuity Company and
Fidelity Investment Institutional Operations Company dated
as of November 1, 1995(14)
(8)(xxii) Service Contract between Fidelity Distributors Corporation
and Aetna Life Insurance and Annuity Company dated May 2,
1997(11)
(8)(xxiii) Fund Participation Agreement among Janus Aspen Series and
Aetna Life Insurance and Annuity Company and Janus Capital
Corporation dated December 8, 1997(18)
(8)(xxiv) Amendment dated October 12, 1998 to Fund Participation
Agreement among Janus Aspen Series and Aetna Life Insurance
and Annuity Company and Janus Capital Corporation dated
December 8, 1997(11)
(8)(xxv) Second Amendment dated December 1, 1999 to Fund
Participation Agreement among Janus Aspen Series and Aetna
Life Insurance and Annuity Company and Janus Capital
Corporation dated December 8, 1997 and amended on
October 12, 1998(12)
(8)(xxvi) Amendment dated as of August 1, 2000 to Fund Participation
Agreement among Janus Aspen Series and Aetna Life Insurance
and Annuity Company and Janus Capital Corporation dated
December 8, 1997, as amended on October 12, 1998 and
December 1, 1999(19)
(8)(xxvii) Service Agreement between Janus Capital Corporation and
Aetna Life Insurance and Annuity Company dated
December 8,1997(18)
(8)(xxviii)First Amendment dated as of August 1, 2000 to Service
Agreement between Janus Capital Corporation and Aetna Life
Insurance and Annuity Company dated December 8, 1997(19)
(8)(xxix) Distribution and Shareholder Services Agreement - Service
Shares of Janus Aspen Series (for Insurance Companies)
dated August 1, 2000 between Janus Distributors, Inc. and
Aetna Life Insurance and Annuity Company(20)
(8)(xxx) Fund Participation Agreement dated March 11, 1997 between
Aetna Life Insurance and Annuity Company and Oppenheimer
Variable Annuity Account Funds and Oppenheimer Funds,
Inc.(20)
(8)(xxxi) First Amendment dated December 1, 1999 between Aetna Life
Insurance and Annuity Company and Oppenheimer Variable
Annuity Account Funds and Oppenheimer Funds, Inc. dated
March 11, 1997(12)
(8)(xxxii) Service Agreement effective as of March 11, 1997 between
Oppenheimer Funds, Inc. and Aetna Life Insurance and
Annuity Company(20)
(9) Not Applicable
(10)(i) Application for Group Variable Universal Life Insurance
(Application for Group Policy) (70262-1997NYAPP)(5)
(10)(ii) Life Insurance Pre-APP (70272-97)(5)
<PAGE>
(10)(iii) Group Life Insurance Application (70272-97(A)ZNY)(5)
(10)(iv) Supplement (70268-97(5/98)) to Application for Variable
Life Insurance(5)
(11) Issuance, Transfer and Redemption Procedures(21)
2. Opinion and Consent of Counsel
3. Not Applicable
4. Not Applicable
5. Not Applicable
6. Actuarial Opinion and Consent(22)
7. Consent of Independent Auditors - KPMG LLP
8. (a) Powers of Attorney
(b) Certificate of Resolution Authorizing Signature by Power
of Attorney(22)
9. Not Applicable
10. Not Applicable
11. Code of Ethics for ALIAC dated August 2000
1. Incorporated by reference to Registration Statement on Form S-6 (File
No. 333-89953), as filed on October 29, 1999.
2. Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form S-6 (File No. 33-76004), as filed on
February 16, 1996.
3. Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement on Form N-4 (File No. 333-49176), as filed on
November 30, 2000.
4. Incorporated by reference to Post-Effective Amendment No. 5 to
Registration Statement on Form S-6 (File No. 33-75248), as filed on
July 29, 1997.
5. Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form S-6 (File No. 333-15817), as filed on
April 16, 1998.
6. Incorporated by reference to Pre-Effective Amendment No. 1 to
Registration Statement on Form S-6 (File No. 333-37448), as filed on
April 14, 2000.
7. Incorporated by reference to Post-Effective Amendment No. 1 to
Registration Statement on Form S-1 (File No. 33-60477), as filed on
April 15, 1996.
8. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 11, 1997.
9. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-91846), as filed on
October 30, 1997.
10. Incorporated by reference to Registration Statement on Form N-4 (File
No. 333-56297), as filed on June 8, 1998.
11. Incorporated by reference to Post-Effective Amendment No. 2 to
Registration Statement on Form N-4 (File No. 333-56297), as filed on
December 14, 1998.
12. Incorporated by reference to Post-Effective Amendment No. 19 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
February 16, 2000.
13. Incorporated by reference to Post-Effective Amendment No. 20 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
April 4, 2000.
14. Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on
September 29, 1997.
15. Incorporated by reference to Post-Effective Amendment No. 16 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 9, 1998.
16. Incorporated by reference to Post-Effective Amendment No. 7 to
Registration Statement on Form S-6 (File No. 33-75248), as filed on
February 24, 1998.
<PAGE>
17. Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement on Form N-4 (File No. 33-88720), as filed on
June 28, 1996.
18. Incorporated by reference to Post-Effective Amendment No. 10 to
Registration Statement on Form N-4 (File No. 33-75992), as filed on
December 31, 1997.
19. Incorporated by reference to Post-Effective Amendment No. 22 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on
August 14, 2000.
20. Incorporated by reference to Post-Effective Amendment No. 27 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on
April 16, 1997.
21. Incorporated by reference to Registration Statement on Form S-6 (File
No. 333-27337), as filed on May 16, 1997.
22. Incorporated by reference to Post-Effective Amendment No. 5 to
Registration Statement on Form N-4 (File No. 33-75986), as filed on
April 12, 1996.
22. Incorporated by reference to Pre-Effective Amendment No 1 to
Registration Statement on Form S-6 (File No. 333-89953), as filed on
April 14, 2000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant,
Variable Life Account C of Aetna Life Insurance and Annuity Company, certifies
that it meets the requirements of Securities Act Rule 485(b) for effectiveness
of this Post-Effective Amendment to its Registration Statement on Form S-6 (File
No. 333-89953) and has duly caused this Post-Effective Amendment No. 1 to its
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, and the seal of the Depositor to be hereunto affixed and
attested, all in the City of Hartford, and State of Connecticut, on this 29th
day of December, 2000.
VARIABLE LIFE ACCOUNT C OF
AETNA LIFE INSURANCE AND
ANNUITY COMPANY
(REGISTRANT)
(SEAL)
ATTEST: /s/Rose-Marie DeRensis
----------------------------
Rose-Marie DeRensis
Assistant Corporate Secretary
By: AETNA LIFE INSURANCE AND
ANNUITY COMPANY
(DEPOSITOR)
By: Thomas J. McInerney*
--------------------------
Thomas J. McInerney
Principal Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment No. 1 to the Registration Statement has been signed below by the
following persons in the capacities indicated and on the dates indicated.
Signature Title Date
--------- ----- ----
Thomas J. McInerney* Director and President )
-------------------------
Thomas J. McInerney (Principal Executive Officer) )
------------------------- Director ) December
Wayne R. Huneke )
) 29, 2000
Philip R. Lowery* )
------------------------- Director )
Philip R. Lowery )
Robert C. Salipante* )
------------------------- Director )
Robert C. Salipante )
Mark A. Tullis* )
------------------------- Director )
Mark A. Tullis )
Mark W. Cunningham* )
------------------------- Chief Financial Officer )
Mark W. Cunningham )
<PAGE>
Deborah Koltenuk* )
------------------------- Corporate Controller )
Deborah Koltenuk )
By: /s/ Michael A. Pignatella
Michael A. Pignatella
*Attorney-in-Fact
<PAGE>
VARIABLE LIFE ACCOUNT C
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT NO. EXHIBIT
<S> <C> <C>
99-2 Opinion and Consent of Counsel
------------
99-7 Consent of Independent Auditors
------------
99-8(a) Powers of Attorney
------------
99-11 Code of Ethics for ALIAC dated August 2000
------------
</TABLE>
