INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
FINANCIAL STATEMENTS
June 30, 2000
(Unaudited)
This report is submitted for the general information of owners of Investors Life
Insurance Company of North America INA/Putnam Separate Account variable annuity
contracts. The Separate Account does not accept new contracts; accordingly, this
report is not authorized for distribution to prospective purchasers of such
contracts.
Investors Life Insurance
Company of North America
Administrative Offices: Austin, TX
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
COMBINED BALANCE SHEET
Period Ended June 30, 2000
(Unaudited)
ASSETS
Investments at Market Value (Notes 1 and 2):
PUTNAM DIVISIONS
Money Market
357,995 qualified shares (Cost $357,995) $357,995
742,615 non-qualified shares (Cost $742,615) 742,615
High Yield Trust
9,398 qualified shares (Cost $166,393) 91,155
166,684 non-qualified shares (Cost $2,732,701) 1,616,837
Equity Income Fund
6,879 qualified shares (Cost $34,234) 91,836
49,135 non-qualified shares (Cost $581,569) 655,956
Investors Trust
51,578 qualified shares (Cost $526,895) 962,963
71,017 non-qualified shares (Cost $677,004) 1,325,876
Income Fund
17,622 qualified shares (Cost $114,482) 110,495
32,829 non-qualified shares (Cost $158,602) 205,840
PUTNAM VARIABLE TRUST DIVISIONS
Putnam Variable Trust Money Market
5,617,440 non-qualified shares (Cost $5,617,440) 5,617,440
Putnam Variable Trust Growth and Income
157,792 non-qualified shares (Cost $2,909,922) 3,662,352
Putnam Variable Trust Income
(formerly U.S. Government and High Quality Bond
144,695 non-qualified shares (Cost $1,890,983) 1,723,332
___________
Total Assets $ 17,164,692
==========
The accompanying notes are an integral part of these financial statements.
<PAGE>
CONTRACT OWNERS' EQUITY
Contract Owners' Equity (Notes 3 and 7):
PUTNAM DIVISIONS
Money Market
110,283 qualified accumulation
units outstanding ($3.2461430 Per Unit) $ 357,995
226,451 non-qualified accumulation
units outstanding ($3.2793620 Per Unit) 742,615
High Yield Trust
14,216 qualified accumulation
units outstanding ($6.4121610 Per Unit) 91,155
264,169 non-qualified accumulation
units outstanding ($6.1204660 Per Unit) 1,616,837
Equity Income Fund
12,498 qualified accumulation
units outstanding ($7.3480790 Per Unit) 91,836
88,539 non-qualified accumulation
units outstanding ($7.4086630 Per Unit) 655,956
Investors Trust
54,352 qualified accumulation
units outstanding ($17.7171520 Per Unit) 962,963
81,271 non-qualified accumulation
units outstanding ($16.3142600 Per Unit) 1,325,876
Income Fund
19,435 qualified accumulation
units outstanding ($5.6853530 Per Unit) 110,495
37,794 non-qualified accumulation
units outstanding ($5.4463590 Per Unit) 205,840
PUTNAM VARIABLE TRUST DIVISIONS
Putnam Variable Trust Money Market
2,079,174 non-qualified accumulation
units outstanding ($2.7017650 Per Unit) 5,617,440
Putnam Variable Trust Growth and Income
485,922 non-qualified accumulation
units outstanding ($7.5369140 Per Unit) 3,662,352
Putnam Variable Trust Income
(formerly U.S. Government and High Quality Bond)
478,431 non-qualified accumulation
units outstanding ($3.6020490 Per Unit) 1,723,332
___________
Contract Owners' Equity $ 17,164,692
===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF OPERATIONS
Year Ended June 30, 2000
(Unaudited)
PUTNAM DIVISIONS
Money Market Money Market
Qualified Non-Qualified
Investment Income:
Dividends $ 10,114 $ 21,856
Expenses:
Mortality risk and expense
fees guarantees (Notes 1 and 3) 1,721 3,722
___________ ___________
Investment income - net 8,393 18,134
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized capital gain distributions 0 0
___________ ___________
Net realized gain (loss) on investments:
Proceeds from sale of shares 55,225 112,640
Cost of shares sold 55,225 112,640
___________ ___________
Net realized gain (loss) on investments 0 0
___________ ___________
Net unrealized gain (loss) on investments 93 58
___________ ___________
Net realized and unrealized gain
(loss) on investments 93 58
___________ ___________
Net Increase (Decrease) in Net Assets
from Investment Operations $ 8,486 $ 18,192
=========== ===========
High Yield High Yield
Trust Trust
Qualified Non-Qualified
Investment Income:
Dividends $ 5,324 $ 96,499
Expenses:
Mortality risk and expense
fees guarantees (Notes 1 and 3) 462 8,384
___________ __________
Investment income - net 4,862 88,115
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized capital gain distributions 0 0
___________ ___________
Net realized gain (loss) on investments:
Proceeds from sale of shares 31,362 303,091
Cost of shares sold 38,491 351,461
___________ ___________
Net realized gain (loss) on investments (7,129) (48,370)
___________ ___________
Net unrealized gain (loss) on investments 942 (65,084)
___________ ___________
Net realized and unrealized gain
(loss) on investments (6,187) (113,454)
___________ ___________
Net Increase (Decrease) in Net Assets
from Investment Operations $ (1,325) $ (25,339)
=========== ===========
The accompanying notes are an integral part of these financial statements
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF OPERATIONS
Year Ended June 30, 2000
(Unaudited)
Equity Equity
Income Income
Qualified Non-Qualified
Investment Income:
Dividends $ 913 $ 6,849
Expenses:
Mortality risk and expense
fees guarantees (Notes 1 and 3) 443 3,272
___________ ___________
Investment income - net 470 3,577
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized capital gain distributions 0 0
___________ ___________
Net realized gain (loss) on investments:
Proceeds from sale of shares 3,229 76,191
Cost of shares sold 3,233 78,161
___________ ___________
Net realized gain (loss) on investments (4) (1,970)
___________ ___________
Net unrealized gain (loss) on investments (4,077) (28,710)
___________ ___________
Net realized and unrealized gain
(loss) on investments (4,081) (30,680)
___________ ___________
Net Increase (Decrease) in Net Assets
from Investment Operations $ (3,611) $ (27,103)
=========== ===========
Investors Investors
Trust Trust
Qualified Non-Qualified
Investment Income:
Dividends $ 0 $ 0
Expenses:
Mortality risk and expense
fees guarantees (Notes 1 and 3) 4,593 6,837
___________ ___________
Investment income - net (4,593) (6,837)
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized capital gain distributions 0 0
___________ ___________
Net realized gain (loss) on investments:
Proceeds from sale of shares 94,042 287,749
Cost of shares sold 73,828 156,590
___________ ___________
Net realized gain (loss) on investments 20,214 131,159
___________ ___________
Net unrealized gain (loss) on investments (47,261) (156,157)
___________ ___________
Net realized and unrealized gain
(loss) on investments (27,047) (24,998)
___________ ___________
Net Increase (Decrease) in Net Assets
from Investment Operations $ (31,640) $ (31,835)
=========== ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF OPERATIONS
Year Ended June 30, 2000
(Unaudited)
Income Income
Fund Fund
Qualified Non-Qualified
Investment Income:
Dividends $ 4,772 $ 7,281
Expenses:
Mortality risk and expense
fees guarantees (Notes 1 and 3) 649 1,041
___________ ___________
Investment income - net 4,123 6,240
Net Realized and Unrealized Gain
(Loss) on Investments:
Net realized capital gain distributions 0 0
___________ ___________
Net realized gain (loss) on investments:
Proceeds from sale of shares 96,117 46,624
Cost of shares sold 95,995 46,258
___________ ___________
Net realized gain (loss) on investments 122 366
___________ ___________
Net unrealized gain (loss) on investments (2,579) (3,264)
___________ ___________
Net realized and unrealized gain
(loss) on investments (2,457) (2,898)
___________ ___________
Net Increase (Decrease) in Net Assets
from Investment Operations $ 1,666 $ 3,342
============ ===========
PUTNAM VARIABLE TRUST DIVISIONS
Putnam
Variable Trust
Money
Market
Non-Qualified
Investment Income:
Dividends $ 176,757
Expenses:
Mortality risk and expense fees guarantees (Notes 1 and 3) 30,105
_____________
Investment income - net 146,652
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized capital gain distributions 0
______________
Net realized gain (loss) on investments:
Proceeds from sale of shares 1,315,109
Cost of shares sold 1,315,109
______________
Net realized gain (loss) on investments 0
______________
Net unrealized gain (loss) on investments (680)
______________
Net realized and unrealized gain (loss) on investments (680)
______________
Net Increase (Decrease) in Net Assets
from Investment Operations $ 145,972
=============
The accompanying notes are an integral part of these financial statements
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF OPERATIONS
Year Ended June 30, 2000
(Unaudited)
PUTNAM VARIABLE TRUST DIVISIONS Putnam Variable
Trust Growth
and Income
Non-Qualified
Investment Income:
Dividends $ 136,591
Expenses:
Mortality risk and expense fees guarantees (Notes 1 and 3) 18,878
_____________
Investment income - net 117,713
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized capital gain distributions 306,784
______________
Net realized gain (loss) on investments:
Proceeds from sale of shares 707,522
Cost of shares sold 717,720
______________
Net realized gain (loss) on investments (10,198)
______________
Net unrealized gain (loss) on investments (552,769)
______________
Net realized and unrealized gain (loss) on investments (256,183)
______________
Net Increase (Decrease) in Net Assets
from Investment Operations $ (138,470)
=============
Putnam Variable
Trust Income Fund
(formerly U.S. Govmnt
& High Quality Bond)
Non-Qualified
Investment Income:
Dividends $ 118,174
Expenses:
Mortality risk and expense fees guarantees (Notes 1 and 3) 8,173
______________
Investment income - net 110,001
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized capital gain distributions 0
______________
Net realized gain (loss) on investments:
Proceeds from sale of shares 120,304
Cost of shares sold 121,108
______________
Net realized gain (loss) on investments (804)
______________
Net unrealized gain (loss) on investments (83,326)
______________
Net realized and unrealized gain (loss) on investments (84,130)
______________
Net Increase (Decrease) in Net Assets
from Investment Operations $ 25,871
==============
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited)
PUTNAM DIVISIONS
Money Market Money Market
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 8,393 $ 18,134
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 0 0
Net unrealized gain (loss) on investments 93 58
_________ _________
Net increase (decrease) in net
assets from investment operations 8,486 18,192
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders and
transfers out (Note 3) (19,370) (95,815)
Benefit payments to annuitants 0 (12,915)
_________ _________
Net increase (decrease) from
accumulation unit transactions (19,370) (108,730)
_________ _________
Net Increase (Decrease) in Net Assets (10,884) (90,538)
Net Assets:
Net assets at December 31, 1999 368,879 833,153
_________ _________
Net assets at June 30, 2000 $ 357,995 $ 742,615
========== =========
Twelve Months Ended December 31, 1999
PUTNAM
Money Market Money Market
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 14,924 $ 34,443
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 0 0
Net unrealized gain (loss) on investments 0 0
_________ _________
Net increase (decrease) in net
assets from investment operations 14,924 34,443
_________ _________
Accumulation Unit Transactions:
Net contract considerations and
transfers in (Note 3) 0 0
Net contract surrenders and
transfers out (Note 3) (56,763) (260,275)
Benefit payments to annuitants 0 (20,111)
_________ _________
Net increase (Decrease) from
accumulation unit transactions (56,763) (280,386)
_________ _________
Net Increase (Decrease) in Net Assets (41,839) (245,943)
Net Assets:
Net assets at December 31, 1998 410,718 1,079,096
_________ _________
Net assets at December 31, 1999 $ 368,879 $ 833,153
========== =========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited)
PUTNMAN DIVISIONS High Yield High Yield
Trust Trust
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 4,862 $ 88,115
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (7,129) (48,370)
Net unrealized gain (loss) on investments 942 (65,084)
_________ _________
Net increase (decrease) in net assets
from investment operations (1,325) (25,339)
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (15,303) (292,671)
Benefit payments to annuitants (1,617) (1,676)
_________ _________
Net increase (decrease) from
accumulation unit transactions (16,920) (294,347)
_________ _________
Net Increase (Decrease) in Net Assets (18,245) (319,686)
Net Assets:
Net assets at December 31, 1999 109,400 1,936,523
_________ _________
Net assets at June 30, 2000 $ 91,155 $1,616,837
========= =========
Twelve Months Ended December 31, 1999
PUTNAM
High Yield High Yield
Trust Trust
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 17,308 $ 191,420
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (45,234) (540)
Net unrealized gain (loss) on investments 38,290 (86,215)
_________ _________
Net increase (decrease) in net
assets from investment operations 10,364 104,665
_________ _________
Accumulation Unit Transactions:
Net contract considerations and
transfers in (Note 3) 0 0
Net contract surrenders and
transfers out (Note 3) (113,675) (119,447)
Benefit payments to annuitants (3,632) (2,353)
_________ _________
Net increase (Decrease) from
accumulation unit transactions (117,307) (121,800)
_________ _________
Net Increase (Decrease) in Net Assets (106,943) (17,135)
Net Assets:
Net assets at December 31, 1998 216,343 1,953,658
_________ _________
Net assets at December 31, 1999 $ 109,400 $1,936,523
========= =========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited)
PUTNAM DIVISIONS Equity Equity
Income Income
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 470 $ 3,577
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (4) (1,970)
Net unrealized gain (loss) on investments (4,077) (28,710)
_________ _________
Net increase (decrease) in net
assets from investment operations (3,611) (27,103)
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (77) (72,919)
Benefit payments to annuitants (2,709) 0
_________ _________
Net increase (decrease) from
accumulation unit transactions (2,786) (72,919)
_________ _________
Net Increase (Decrease) in Net Assets (6,397) (100,022)
Net Assets:
Net assets at December 31, 1999 98,233 755,978
_________ _________
Net assets at June 30, 2000 $ 91,836 $ 655,956
========= =========
Twelve Months Ended December 31, 1999
PUTNAM
Equity Equity
Income Income
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 3,300 $ 25,495
Realized capital gain distributions 7,090 54,582
Net realized gain (loss) on investments 341 1,860
Net unrealized gain (loss) on investments (10,368) (79,519)
_________ _________
Net increase (decrease) in net
assets from investment operations 363 2,418
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (40) (33,041)
Benefit payments to annuitants (6,025) 0
_________ _________
Net increase (Decrease) from
accumulation unit transactions (6,065) (33,041)
_________ _________
Net Increase (Decrease) in Net Assets (5,702) (30,623)
Net Assets:
Net assets at December 31, 1998 103,935 786,601
_________ _________
Net assets at December 31, 1999 $ 98,233 $ 755,978
========== =========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited)
PUTNAM DIVISION Investors Investors
Trust Trust
Qualified Non-Qualified
Investment Operations:
Investment income-net $ (4,593) $ (6,837)
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 20,214 131,159
Net unrealized gain (loss) on investments (47,261) (156,157)
_________ _________
Net increase (decrease) in net
assets from investment operations (31,640) (31,835)
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (42,840) (261,774)
Benefit payments to annuitants (6,556) (4,950)
_________ _________
Net increase (decrease)
from accumulation unit transactions (49,396) (266,724)
_________ _________
Net Increase (Decrease) in Net Assets (81,036) (298,559)
Net Assets:
Net assets at December 31, 1999 1,043,999 1,624,435
_________ _________
Net assets at June 30, 2000 $ 962,963 $ 1,325,876
========= ==========
Twelve Months Ended December 31, 1999
PUTNAM
Investors Investors
Trust Trust
Qualified Non-Qualified
Investment Operations:
Investment income-net $ (8,982) $ (13,796)
Realized capital gain distributions 6,942 10,791
Net realized gain (loss) on investments 96,279 129,020
Net unrealized gain (loss) on investments 147,100 261,074
_________ _________
Net increase (decrease) in net
assets from investment operations 241,339 387,089
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (289,126) (313,529)
Benefit payments to annuitants (12,000) (5,814)
_________ _________
Net increase (Decrease) from
accumulation unit transactions (301,126) (319,343)
_________ _________
Net Increase (Decrease) in Net Assets (59,787) 67,746
Net Assets:
Net assets at December 31, 1998 1,103,786 1,556,689
_________ _________
Net assets at December 31, 1999 $1,043,999 $1,624,435
========= =========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited)
PUTNAM DIVISION Variable Trust Variable
Income Income
Fund Fund
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 4,123 $ 6,240
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 122 366
Net unrealized gain (loss) on investments (2,579) (3,264)
_________ _________
Net increase (decrease) in net
assets from investment operations 1,666 3,342
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (95,468) (45,299)
Benefit payments to annuitants 0 (285)
_________ _________
Net increase (decrease) from
accumulation unit transactions (95,468) (45,584)
_________ _________
Net Increase (Decrease) in Net Assets (93,802) (42,242)
Net Assets:
Net assets at December 31, 1999 204,297 248,082
_________ _________
Net assets at June 30, 2000 $ 110,495 $ 205,840
========= =========
Twelve Months Ended December 31, 1999
PUTNAM
Income Income
Fund Fund
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 12,791 $ 14,836
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (1,296) 2,333
Net unrealized gain (loss) on investments (18,582) (25,745)
_________ _________
Net increase (decrease) in net
assets from investment operations (7,087) (8,576)
_________ _________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (82,127) (68,196)
Benefit payments to annuitants 0 (602)
_________ _________
Net increase (Decrease) from
accumulation unit transactions (82,127) (68,798)
_________ _________
Net Increase (Decrease) in Net Assets (89,214) (77,374)
Net Assets:
Net assets at December 31, 1998 293,511 325,456
_________ _________
Net assets at December 31, 1999 $ 204,297 $ 248,082
========= =========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited)
PUTNAM VARIABLE TRUST DIVISIONS
Putnam
Variable Trust
Money
Market
Non-Qualified
Investment Operations:
Investment income-net $ 146,652
Realized capital gain distributions 0
Net realized gain (loss) on investments 0
Net unrealized gain (loss) on investments (680)
_________
Net increase (decrease) in net assets from investment operations 145,972
_________
Accumulation Unit Transactions:
Net contract considerations and transfers in (Note 3) 88,240
Net contract surrenders and transfers out (Note 3) (1,094,634)
Benefit payments to annuitants (52,478)
_________
Net increase (decrease) from accumulation unit transactions (1,058,872)
_________
Net Increase (Decrease) in Net Assets (912,900)
Net Assets:
Net assets at December 31, 1999 6,530,340
_________
Net assets at June 30, 2000 $ 5,617,440
=========
Twelve Months Ended December 31, 1999
Putnam
Variable Trust
Money
Market
Non-Qualified
Investment Operations:
Investment income-net $ 264,015
Realized capital gain distributions 0
Net realized gain (loss) on investments 0
Net unrealized gain (loss) on investments 0
_________
Net increase (decrease) in net assets
from investment operations 264,015
_________
Accumulation Unit Transactions:
Net contract considerations and transfers in (Note 3) 0
Net contract surrenders and transfers out (Note 3) (959,586)
Benefit payments to annuitants (38,758)
_________
Net increase (Decrease) from accumulation unit transactions (998,344)
_________
Net Increase (Decrease) in Net Assets (734,329)
Net Assets:
Net assets at December 31, 1998 7,264,669
_________
Net assets at December 31, 1999 $ 6,530,340
=========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited)
Putnam Variable
Trust Growth
and Income
Non-Qualified
Investment Operations:
Investment income-net $ 117,713
Realized capital gain distributions 306,784
Net realized gain (loss) on investments (10,198)
Net unrealized gain (loss) on investments (552,769)
_________
Net increase (decrease) in net
assets from investment operations (138,470)
_________
Accumulation Unit Transactions:
Net contract considerations and transfers in (Note 3) 0
Net contract surrenders and transfers out (Note 3) (508,895)
Benefit payments to annuitants (7,181)
_________
Net increase (decrease) from accumulation unit transactions (516,076)
_________
Net Increase (Decrease) in Net Assets (654,546)
Net Assets:
Net assets at December 31, 1999 4,316,898
_________
Net assets at June 30, 2000 $ 3,662,352
=========
Twelve Months Ended December 31, 1999
Putnam Variable
Trust Growth
and Income
Non-Qualified
Investment Operations:
Investment income-net $ 67,249
Realized capital gain distributions 259,426
Net realized gain (loss) on investments 28,616
Net unrealized gain (loss) on investments (339,821)
_________
Net increase (decrease) in net
assets from investment operations 15,470
_________
Accumulation Unit Transactions:
Net contract considerations and transfers in (Note 3) 286,339
Net contract surrenders and transfers out (Note 3) (595,190)
Benefit payments to annuitants (15,627)
_________
Net increase (Decrease) from accumulation unit transactions (324,478)
_________
Net Increase (Decrease) in Net Assets (309,008)
Net Assets:
Net assets at December 31, 1998 4,625,906
_________
Net assets at December 31, 1999 $ 4,316,898
=========
The accompanying notes are an integral part of these financial statements.
<PAGE>
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
FOR PERIOD ENDED JUNE 30, 2000
(Unaudited) Putnam Variable
Trust Income Fund
(formerly U.S. Govmnt
& High Quality Bond)
Non-Qualified
Investment Operations:
Investment income-net $ 110,001
Realized capital gain distributions 0
Net realized gain (loss) on investments (804)
Net unrealized gain (loss) on investments (83,326)
_________
Net increase (decrease) in net
assets from investment operations 25,871
_________
Accumulation Unit Transactions:
Net contract considerations and transfers in (Note 3) 0
Net contract surrenders and transfers out (Note 3) (76,579)
Benefit payments to annuitants (22)
_________
Net increase (decrease) from accumulation unit transactions (76,601)
_________
Net Increase (Decrease) in Net Assets (50,730)
Net Assets:
Net assets at December 31, 1999 1,774,062
_________
Net assets at June 30, 2000 $ 1,723,332
=========
Twelve Months Ended December 31, 1999
Putnam Variable
Trust U.S.
Govmt and High
Quality Bond
Non-Qualified
Investment Operations:
Investment income-net $ 100,707
Realized capital gain distributions 10,374
Net realized gain (loss) on investments 3,299
Net unrealized gain (loss) on investments (171,035)
_________
Net increase (decrease) in net
assets from investment operations (56,655)
_________
Accumulation Unit Transactions:
Net contract considerations and transfers in (Note 3) 22,911
Net contract surrenders and transfers out (Note 3) (88,480)
Benefit payments to annuitants (19,282)
_________
Net increase (Decrease) from accumulation unit transactions (84,851)
_________
Net Increase (Decrease) in Net Assets (141,506)
Net Assets:
Net assets at December 31, 1998 1,915,568
_________
Net assets at December 31, 1999 $ 1,774,062
=========
The accompanying notes are an integral part of these financial statements.
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INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
INA/PUTNAM SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
Note 1. Organization
Investors Life Insurance Company of North America - INA/Putnam Separate Account
(the "Separate Account"), a separate account of Investors Life Insurance Company
of North America ("Investors Life"), is registered under the Investment Company
Act of 1940, as amended, as a unit investment trust. The Separate Account
currently has five specific Putnam Divisions which correspond to five Putnam
mutual funds (the "Putnam Funds") and three Putnam Variable Trust Divisions
which correspond to three portfolios of the Putnam Variable Trust (formerly the
Putnam Capital Manager Trust") (and, collectively, the "Funds"). Each Division
contains two subdivisions, one for the allocation of tax qualified and one for
the allocation of non-tax qualified net payments made under variable annuity
contracts.
Amounts allocated to the Separate Account for variable annuity contracts can be
invested by Investors Life in up to three of the following mutual funds: Putnam
Income Fund, Inc., Putnam High Yield Trust, Putnam Equity Income Fund (formerly
Putnam Strategic Income Trust), Putnam Money Market Fund (which was known as the
Putnam Daily Dividend Trust prior to a name change which was effective September
1, 1994) and Putnam Investors Fund, Inc. (the "Putnam Divisions"). In addition,
variable annuity contract values transferred as a result of Revenue Ruling
81-225 (see Note 5), can be invested in up to three of the following portfolios
of Putnam Variable Trust: Putnam Variable Trust Money Market Fund, Putnam
Variable Trust Income Fund (formerly Putnam Variable Trust U.S. Government and
High Quality Bond Fund) and Putnam Variable Trust Growth and Income Fund (the
"Putnam Variable Trust Divisions"). The contract owners' equity of each
subdivision of the Separate Account is affected by the investment results of the
appropriate Putnam Fund, or Putnam Variable Trust Fund, shares designated for
the subdivision, the mortality risk and expense fees guarantees assessed on
Separate Account assets (see Note 3) and the administrative charge deductions.
Under the current provisions of the Internal Revenue Code (the "Code"),
transfers of contract values from one division of the Separate Account to
another division are not subject to current taxation. There can be no assurance
that future changes in the Code will not subject such transfers to current
taxation.
Note 2. Significant Accounting Policies
Following is a summary of the significant accounting policies of the Separate
Account:
(a) the market value of investments is based on closing bid prices (net asset
value) at June 30, 2000; (b) investment transactions are accounted for on the
trade date and income is recorded on the ex-dividend date; (c) the cost of
investments sold is determined on the specific identification method. See Notes
4 through 6 with respect to income taxes.
Note 3. Contract Owner Transactions
Contract owners have limited rights to transfer their contract values between
Separate Account Divisions. Certain contract owners affected by Revenue Ruling
81-225 have limited rights to transfer their contract values to Divisions for
which one of the portfolios of Putnam Variable Trust serves as the underlying
investment vehicle (see Note 5). The amount of all transfers for the six-month
period June 30, 2000 was $88,240. Payments for the six-month period June 30,
2000 were $2,621,615 with respect to contract surrender benefits and $90,389
with respect to annuity benefits. Investors Life charges a fee to each Separate
Account subdivision for assuming the mortality risk and expense fees guarantees.
The daily equivalent of the annual charges of 0.95% is made against the average
net value of the Separate Account.
<PAGE>
Note 4. Income Taxes
Investors Life is taxed as a life insurance company under the Code. The Separate
Account is taxed as a part of Investors Life. Under the current provisions of
the Code, no federal income taxes are payable by Investors Life with respect to
investment income and capital gains on the assets of the Separate Account when
used to determine contract values. Investors Life retains the right to make
adjustments for taxes to Separate Account assets should future changes in the
Code so warrant.
Note 5. Effect of Revenue Ruling 81-225
Revenue Ruling 81-225 was issued by the Internal Revenue Service on September
25, 1981. The Ruling pertains to variable annuities, where the insurance
company, through a separate account, holds shares of mutual funds which also
offer their shares to the public independently. The Ruling also questioned the
tax treatment of variable annuity contracts where the underlying mutual funds
are not managed by the issuing insurance company or an affiliate, or where the
contract owner may initially allocate, and subsequently reallocate the contract
values among several underlying funds.
The Ruling adversely affected the tax status of the Separate Account variable
annuity contracts issued on a non-tax qualified basis after December 31, 1980,
and those issued after September 25, 1981 which were intended to qualify under
Internal Revenue Code Sections 403(a), 403(b) or 408(b). As a result, Investors
Life suspended new contract sales utilizing the Putnam Division. A former
affiliate of Investors Life sponsored the creation of a new money market mutual
fund called INA Annuity Fund Inc. This fund became the CIGNA Annuity Fund, Inc.
Money Market portfolio late in 1982 and three additional portfolios were
introduced. In October, 1985, the CIGNA Annuity Fund, Inc. was reorganized as
the CIGNA Annuity Funds Group, pursuant to a plan of reorganization approved by
shareholders of the Fund. Contract owners who transfer their Putnam Division
contract values to the CIGNA Division cannot later reverse the transfer back to
any of the Putnam Divisions.
As of April 18, 1995, shares of the Putnam Variable Trust were substituted for
shares of the applicable CIGNA Fund as the underlying investment vehicle.
Investors Life obtained an order from the U.S. Securities and Exchange
Commission approving the provisions of the substitution. Thereafter, the
proposal was submitted to contractholders for their approval, in accordance with
the provisions of the variable annuity contracts. The substitution of shares of
certain portfolios of Putnam Variable Trust as the underlying investment vehicle
for the variable annuity contracts was effected by Investors Life's exchange of
shares of each of the portfolios of the CIGNA Funds for shares of the
corresponding portfolio of Putnam Variable Trust.
Note 6. Diversification Requirements
Under the provisions of Section 817(h) of the Code, a variable annuity contract,
other than a contract issued in connection with certain types of employee
benefit plans, will not be treated as an annuity contract for federal tax
purposes for any period for which the investments of the segregated asset
account on which the contract is based are not adequately diversified. The Code
provides that the "adequately diversified" requirement may be met if the
underlying investments satisfy either a statutory safe harbor test or
diversification requirements set forth in regulations issued by the Secretary of
Treasury.
The Internal Revenue Service has issued regulations under section 817(h) of the
Code. Investors Life believes that the Separate Account satisfies the current
requirements of the regulations, and it intends that the Separate Account will
continue to meet such requirements.
<PAGE>
Note 7. Accumulation Units Transactions
For the Period Ended June 30, 2000
The changes in the number of accumulation units (the measure of ownership in the
Separate Account) during the six-month period ended June 30, 2000 and units
outstanding at June 30, 2000 were as follows:
.
PUTNAM DIVISIONS
Money Market Money Market
Qualified Non-Qualified
Units outstanding at December 31, 1999 116,281 259,973
Units purchased and transfers in 0 0
Benefits, surrenders and transfers out (5,998) (33,522)
________________________
Units outstanding at June 30, 2000 110,283 226,451
========================
High Yield High Yield
Trust Trust
Qualified Non-Qualified
Units outstanding at December 31, 1999 16,803 311,626
Units purchased and transfers in 0 0
Benefits, surrenders and transfers out (2,587) (47,457)
_______________________
Units outstanding at June 30, 2000 14,216 264,169
=======================
Equity Equity
Income Income
Qualified Non-Qualified
Units outstanding at December 31, 1999 12,870 98,218
Units purchased and transfers in 0 0
Benefits, surrenders and transfers out (372) (9,679)
_______________________
Units outstanding at June 30, 2000 12,498 88,539
=======================
Investors Investors
Trust Trust
Qualified Non-Qualified
Units outstanding at December 31, 1999 57,179 96,764
Units purchased and transfers in 0 0
Benefits, surrenders and transfers out (2,827) (15,493)
________________________
Units outstanding at June 30, 2000 54,352 81,271
========================
Income Income
Fund Fund
Qualified Non-Qualified
Units outstanding at December 31, 1999 36,458 46,215
Units purchased and transfers in 0 0
Benefits, surrenders and transfers out (17,023) (8,421)
____________________________
Units outstanding at June 30, 2000 19,435 37,794
============================
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PUTNAM VARIABLE TRUST DIVISIONS
Putnam Variable
Trust Income
Putnam Fund (formerly
Variable Variable U.S. Govmnt
Money Trust Growth & High Quality
Market and Income Bond)
Non-Qualified Non-Qualified Non-Qualified
Units outstanding
at December 31, 1999 2,473,443 553,365 500,055
Units purchased
and transfers in 32,946 0 0
Benefits, surrenders
and transfers out (427,215) (67,443) (21,624)
____________ __________ _________
Units outstanding
at June 30, 2000 2,079,174 485,922 478,431
============ ========== =========
The accumulation units for ten of the subdivisions include units applicable to
contract owners who are "on benefit annuitants." At June 30, 2000 the number of
accumulation units, the aggregate value of the subdivisions' equity and the
number of monthly annuity units and value per unit of "on benefit annuitants"
are as follows:
Accumulation Aggregate
Units Value
Money Market Non-Qualified
formerly Daily Dividend Trust) 110,119 $361,120
High Yield Trust Qualified 4,817 $30,887
High Yield Trust Non-Qualified 6,722 $41,142
Equity Income Fund Qualified 7,689 $56,499
Investors Trust Qualified 8,751 $155,043
Investors Trust Non-Qualified 6,087 $99,305
Income Fund Non-Qualified 1,310 $7,135
Putnam Variable Trust Money Market, Non-Qualified 162,018 $437,735
Putnam Variable Trust Growth and Income,
Non-Qualified 21,379 $161,132
Putnam Variable Trust U.S. Government
and High Quality Bond, Non-Qualified 67,767 $244,100
Monthly Annuity
Annuity Units Unit Value
Money Market Non-Qualified
(formerly Daily Dividend Trust) 1,980 $1.1287168
High Yield Trust Qualified 255 $3.2668827
High Yield Trust Non-Qualified 136 $3.2221120
Equity Income Fund Qualified 172 $3.0021370
Investors Trust Qualified 312 $6.0387718
Investors Trust Non-Qualified 217 $3.4586787
Income Fund Non-Qualified 23 $3.0235727
Putnam Variable Trust Money Market, Non-Qualified 3,647 $1.3119642
Putnam Variable Trust Growth and Income,
Non-Qualified 505 $2.8769315
Putnam Variable Trust U.S. Government
and High Quality Bond, Non-Qualified 1,165 $1.7107700