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CML ACCUMULATION ANNUITY ACCOUNT E
E
ANNUAL REPORT
AT DECEMBER 31, 1995
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Dear Connecticut Mutual Investor:
We are pleased to report to you on the performance of your CML Accumulation
Annuity Account E. As of December 31, 1995, the accumulation unit value for the
Account was $6.02 for tax-qualified plans and $4.81 for non-tax qualified
plans.
As you know, Account E is invested in the Income Portfolio (the same Income
Portfolio included in our Panorama Variable Annuity) which has as its objective
providing investors with a maximum level of income consistent with prudent
investment risk and preservation of capital, by investing in fixed-income debt
securities anticipated to have an average maturity of eight to twelve years from
the date of purchase.
Our Income Portfolio has enjoyed strong performance over the years. So now
might be an opportune time to make an additional investment in Account E! Of
course, past performance does not guarantee future results. We've enclosed a
self-addressed envelope for your convenience. Please be sure to write your
contract number on your check.
The following Annual Report for CML Accumulation Annuity Account E contains the
financial statements for your annuity. The Annual Report for Panorama, which is
also included, contains a full report and schedule of investments for the Income
Portfolio.
The Income Portfolio is just one of the four top-quality investment portfolios
in Panorama. We've enclosed a brochure that introduces you to the Panorama
features. With Panorama, investors can choose among the Growth Portfolio, the
Total Return Portfolio, the Income Portfolio and the Money Market Portfolio.
Also, with Panorama there is no initial sales charge, so each premium dollar
immediately goes to work for you (a surrender charge may apply to withdrawals).
If your needs change, Panorama lets you transfer your money among its four
Portfolios whenever you want, with no penalties or tax repercussions.
To learn how you can increase your investment flexibility with Panorama, call
1-800-234-5606 and press three to speak to a Sales Associate. A prospectus,
describing Panorama's features and charges, along with information on how to
transfer your current contract assets, will be sent to you free of charge.
Please read the prospectus carefully before you invest or send money.
We at Connecticut Mutual Financial Services enjoy serving you and are committed
to helping you achieve your financial goals.
Sincerely,
/s/ Donald H. Pond, Jr.
Donald H. Pond, Jr.
President
Connecticut Mutual Financial Services Series Fund I, Inc.
1
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CML ACCUMULATION ANNUITY
ACCOUNT E
STATEMENT OF NET ASSETS
December 31, 1995
<TABLE>
<S> <C>
ASSETS
Investments, at market:
Connecticut Mutual Financial Services
Series Fund I, Inc.
Income Portfolio
7,956,235 shares (Cost $9,362,029) $9,802,138
Due from Affiliates
Cash 308
386
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TOTAL ASSETS 9,802,832
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LIABILITIES
Due to Affiliates 563
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NET ASSETS, applicable to:
1,621,178 tax-qualified accumulation units
outstanding at $6.024577 per unit 9,766,912
7,356 non tax-qualified accumulation units
outstanding at $4.806617 per unit 35,357
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TOTAL NET ASSETS $9,802,269
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----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
2
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CML ACCUMULATION ANNUITY
ACCOUNT E
STATEMENT OF OPERATIONS
For the Year Ended
December 31, 1995
<TABLE>
<S> <C>
INVESTMENT INCOME
Income:
Dividends $ 610,660
Expenses:
Mortality and expense risk fees 2,258
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NET INVESTMENT INCOME 608,402
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REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Realized gain from investment transactions 41,866
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Unrealized (depreciation)/appreciation on investments:
Beginning of year (573,518)
End of year 440,109
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Net unrealized appreciation during the period 1,013,627
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NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS 1,055,493
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $1,663,895
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</TABLE>
The accompanying notes are an integral part of these financial statements.
3
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CML ACCUMULATION ANNUITY
ACCOUNT E
STATEMENTS OF CHANGES
IN NET ASSETS
For the Years Ended
December 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
<S> <C> <C>
FROM OPERATIONS
Net investment income $ 608,402 $ 713,120
Net Realized gain from investment
transactions 41,866 135,179
Net unrealized appreciation (depreciation)
during the period 1,013,627 (1,271,965)
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Net increase (decrease) in net assets
resulting from operations 1,663,895 (423,666)
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FROM UNIT TRANSACTIONS
Purchases by contract holders 50,887 39,429
Less: Sales and administrative
expenses and applicable premium taxes 4,088 3,178
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Net purchase payments 46,799 36,251
Withdrawals by contract holders (1,503,911) (887,879)
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Net decrease in net assets from unit
transactions (1,457,112) (851,628)
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Net increase (decrease) in net assets 206,783 (1,275,294)
NET ASSETS
Beginning of year 9,595,486 10,870,780
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End of year $9,802,269 $ 9,595,486
---------- ------------
---------- ------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
CML ACCUMULATION ANNUITY
ACCOUNT E
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
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1. ORGANIZATION:
CML Accumulation Annuity Account E (the Account) is a separate account within
Connecticut Mutual Life Insurance Company (Connecticut Mutual). Although the
Account is an integral part of Connecticut Mutual, it is registered as a unit
investment trust under the Investment Company Act of 1940, as amended. The
assets attributable to contracts participating in the Account are held for the
benefit of the participants and are not chargeable with liabilities arising out
of any other business that Connecticut Mutual may conduct.
The Account is invested exclusively in the Income Portfolio of Connecticut
Mutual Financial Services Series Fund I, Inc. (the Fund). Net purchase
payments are applied to purchase Fund shares at the net asset value determined
as of the end of the valuation period during which the payments were received.
2. SIGNIFICANT ACCOUNTING POLICIES:
(a) Fund Share Transactions--
Fund share transactions are recorded on the trade date. The cost of Fund
shares sold is determined on the basis of identified cost.
(b) Valuation of Investments--
The investment in shares of the Fund is valued at the closing net asset
value per share on December 31, 1995. Valuation of securities of the Fund
is discussed in Note 1 of the Fund's December 31, 1995 Notes to Financial
Statements.
(c) Federal Income Taxes--
The operations of the Account form a part of Connecticut Mutual's total
operations and are not taxed separately. Connecticut Mutual is taxed as a
life insurance company under the life insurance tax provisions of the
Internal Revenue Code of 1986, as amended. The Account will not be taxed
as a regulated investment company under Subchapter M of the Internal
Revenue Code. Accordingly, no provision for income taxes has been required
in the accompanying financial statements.
(d) Annuity Reserves--
Annuity reserves are computed according to the Progressive Annuity Table at
3 1/2% interest, adjusted for the investment performance of the Account.
3. CONTRACT CHARGES:
For assuming morality and expense risks, and any income tax liability which may
be incurred by Connecticut Mutual with regard to non-qualified assets,
Connecticut Mutual makes a daily charge equal to .00006% (.0219% on an annual
basis assuming 365 days per year) and .00116% (.4234% on an annual basis
assuming 365 days per year) of the value of the Account's assets attributable,
respectively, to the tax-qualified and non tax-qualified contracts offered.
4. SUBSEQUENT EVENT:
On September 8, 1995, the Board of Directors of Connecticut Mutual approved the
merger of Connecticut Mutual and Massachusetts Mutual Life Insurance Company.
Thereafter, a definitive agreement was signed by both companies. On January 27,
1996, Connecticut Mutual and its insurance subsidiary policyholders and other
insureds and annuitants approved the merger. The merger was subsequently
reviewed by the insurance regulatory authorities in Connecticut and
Massachusetts and approved. It is anticipated that the merger will be effective
on March 1, 1996.
5
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Owners of Accumulation Annuity Contracts of CML
Accumulation Annuity Account E:
We have audited the accompanying statement of net assets of CML
Accumulation Annuity Account E (the Account) as of December 31, 1995, and the
related statement of operations for the year then ended and the statements of
changes in net assets for each of the two years in the period then ended. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of CML Accumulation
Annuity Account E as of December 31, 1995, the results of its operations for
the year then ended and the changes in its net assets for each of the two
years in the period then ended, in conformity with generally accepted
accounting principles.
ARTHUR ANDERSEN LLP
Hartford, Connecticut
February 15, 1996
6
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This report is prepared for the general information of contract holders and is
not an offer of shares of this Account. It should not be used in connection
with any offer except in conjunction with the Prospectus which contains all
pertinent information including the applicable sales charges.
Distributed through
G.R. Phelps & Co., Inc.
a subsidiary of
[LOGO] CONNECTICUT MUTUAL
The Blue Chip Company-Registered Trademark-
Connecticut Mutual
Life Insurance Company
140 Garden Street
Hartford, CT 06154
(203) 987-6500
L1137
