<PAGE>
Massachusetts Mutual Variable Annuity Separate Account 1-
Variable Annuity Fund 4 and Flex-Annuity IV (Qualified)
Part II
Part II was not included with the Semiannual Report (N30-D filing) sent to the
Contract Owners in August, 1998. The Contract Owners did receive the
accompanying Separate Account financial statements and the respective underlying
Fund report that the Massachusetts Mutual Variable Annuity Separate Account 1-
Variable Annuity Fund and Flex-Annuity IV (Qualified) invest in.
The following underlying Fund that was sent to the Contract Owners is
incorporated by reference in this filing to the SEC as part of the Edgarization
filing:
1. The MML Series Investment Fund was edgarized and filed with the SEC in
August, 1998 under File number 811-0224.
<PAGE>
A Message To Our Contract Owners:
We are pleased to forward this combined Semiannual Report of the segment of
Massachusetts Mutual Variable Annuity Separate Account 1 ("Separate Account 1")
pertaining to Variable Annuity Fund 4 and Flex-Annuity IV (Qualified) (the
"Segment"), and the MML Series Investment Fund ("MML Trust"). These reports are
for the period ended June 30, 1998.
The Semiannual Report for the Segment begins on page 3. The Segment has net
assets of $426,747,728 as of June 30, 1998. Net asset values per accumulation
unit for the MML Equity, MML Money Market, MML Managed Bond and MML Blend
Divisions of the Segment as of June 30, 1998 are shown in detail in the table on
page 3.
The Semiannual Report for the MML Trust begins on page 11. This report contains
a detailed description of the financial results of four series of the MML Trust
- - MML Equity Fund, MML Money Market Fund, MML Managed Bond Fund and MML Blend
Fund for the period ended June 30, 1998.
We appreciate the interest and confidence you have shown in Separate Account 1.
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
/s/ Thomas B. Wheeler
Thomas B. Wheeler
Chairman and Chief Executive Officer
August 3, 1998
1
<PAGE>
Table of Contents
<TABLE>
<S> <C>
Massachusetts Mutual Variable Annuity Separate Account 1
Statement of Assets and Liabilities as of June 30, 1998........................................ 3
Statement of Operations For the Six Months Ended June 30, 1998................................. 4
Statement of Changes in Net Assets For the Six Months Ended June 30, 1998 and 1997............. 5
Notes to Financial Statements.................................................................. 6-10
MML Series Investment Fund
To Our Shareholders............................................................................ 11-16
Statement of Assets and Liabilities as of June 30, 1998........................................ 17
Statement of Operations For the Six Months Ended June 30, 1998................................. 18
Statement of Changes in Net Assets For the Six Months Ended June 30, 1998 and
For the Year Ended December 31, 1997........................................................ 19
Financial Highlights........................................................................... 20-22
Schedule of Investments as of June 30, 1998
MML Equity Fund............................................................................. 23-24
MML Money Market Fund....................................................................... 25-26
MML Managed Bond Fund....................................................................... 27-29
MML Blend Fund.............................................................................. 30-36
Notes to Financial Statements.................................................................. 37-39
</TABLE>
2
<PAGE>
Massachusetts Mutual Variable Annuity Separate Account 1 --
Variable Annuity Fund 4 and Flex-Annuity IV (Qualified)
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
Division Division Division Division
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
ASSETS
Investment in the MML Series Investment Fund
Number of shares (Note 2) 3,894,760 11,358,781 1,056,063 9,933,157
============== ============== ============== ==============
Identified cost (Note 3B) $ 85,880,986 $ 11,358,781 $ 12,864,209 $182,417,877
============== ============== ============== ==============
Value (Note 3A) $149,317,874 $ 11,358,781 $ 13,444,603 $253,836,424
Dividends receivable - 48,175 - -
Receivable for accumulation units sold 25,216 -- 1,469 46,540
Divisional transfers pending settlement - (127,997) - 127,997
Other assets 1,569 516 126 2,694
-------------- -------------- -------------- --------------
Total assets 149,344,659 11,279,475 13,446,198 254,013,655
LIABILITIES
Annuitant mortality fluctuation reserve (Note 3D) 11,453 2,273 2,714 14,608
Payable to Massachusetts Mutual Life Insurance Company 465,941 35,386 62,785 741,099
-------------- -------------- -------------- --------------
Total liabilities 477,394 37,659 65,499 755,707
-------------- -------------- -------------- --------------
NET ASSETS $148,867,265 $ 11,241,816 $ 13,380,699 $253,257,948
============== ============== ============== ==============
Net Assets:
Accumulation units--Value $148,485,503 $ 11,166,029 $ 13,290,226 $252,771,002
Annuity reserves (Note 3E) 381,762 75,787 90,473 486,946
-------------- -------------- -------------- --------------
Net assets $148,867,265 $ 11,241,816 $ 13,380,699 $253,257,948
============== ============== ============== ==============
Contractowners accumulation units (Note 8) 13,600,845 4,838,457 3,443,894 47,468,127
============== ============== ============== ==============
NET ASSET VALUE PER ACCUMULATION UNIT
Variable Annuity Fund 4 Contracts
June 30, 1998 $ 11.74 $ 2.61 $ 4.46 $ 5.72
June 30, 1997 9.84 2.49 4.04 4.96
June 30, 1996 7.71 2.39 3.75 4.15
June 30, 1995 6.33 2.29 3.61 3.61
June 30, 1994 5.27 2.20 3.22 3.13
Flex-Annuity IV Contracts
June 30, 1998 $ 10.84 $ 2.24 $ 3.78 $ 5.31
June 30, 1997 9.13 2.15 3.45 4.62
June 30, 1996 7.19 2.07 3.22 3.89
June 30, 1995 5.93 2.00 3.12 3.41
June 30, 1994 4.97 1.92 2.80 2.97
</TABLE>
See Notes to Financial Statements.
3
<PAGE>
Massachusetts Mutual Variable Annuity Separate Account 1 --
Variable Annuity Fund 4 and Flex-Annuity IV (Qualified)
STATEMENT OF OPERATIONS
For The Six Months Ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
Division Division Division Division
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Investment income
Dividends (Note 3B) $ 1,353 $ 296,773 $ 212,184 $ 2,084,522
Expenses
Mortality and expense risk fees (Note 4) 895,243 66,070 79,471 1,569,345
-------------- -------------- -------------- ---------------
Net investment income (loss) (Note 3C) (893,890) 230,703 132,713 515,177
-------------- -------------- -------------- ---------------
Net realized and unrealized gain on investments
Net realized gain on investments (Notes 3B, 3C and 7) 6,200,502 - 32,858 8,616,369
Change in net unrealized appreciation of investments 5,857,881 - 312,880 6,803,608
-------------- -------------- -------------- ---------------
Net gain on investments 12,058,383 - 345,738 15,419,977
-------------- -------------- -------------- ---------------
Net increase in net assets resulting from operations $ 11,164,493 $ 230,703 $ 478,451 $ 15,935,154
============== ============== ============== ===============
</TABLE>
See Notes to Financial Statements.
4
<PAGE>
Massachusetts Mutual Variable Annuity Separate Account 1 --
Variable Annuity Fund 4 and Flex-Annuity IV (Qualified)
STATEMENT OF CHANGES IN NET ASSETS
For The Six Months Ended June 30, 1998 and 1997
(Unaudited)
<TABLE>
<CAPTION>
1998
---------------------------------------------------------------------
MML MML
MML Money Managed MML
Equity Market Bond Blend
Division Division Division Division
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss) $ (893,890) $ 230,703 $ 132,713 $ 515,177
Net realized gain
on investments 6,200,502 - 32,858 8,616,369
Change in net unrealized
appreciation of investments 5,857,881 - 312,880 6,803,608
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 11,164,493 230,703 478,451 15,935,154
--------------- --------------- --------------- ---------------
Capital transactions: (Note 8)
Net contract payments (Note 6) 1,813,477 85,363 124,556 3,373,127
Withdrawal of funds (9,594,755) (1,187,731) (1,147,955) (17,502,594)
Reimbursement (payment) of
accumlation unit value fluctuation 33,443 (805) 113,651 10,644
Net charge (credit) to
annuitant mortality fluctuation
reserve (Note 3D) (11,449) (1,246) (139,332) (66,042)
Annuity benefit payments (17,435) (4,608) (5,816) (24,874)
Withdrawal due to administrative
charges and contingent deferred
sales charges (Note 6) (107,712) (9,342) (11,902) (251,541)
Divisional transfers 1,951,106 203,600 563,796 (2,718,502)
--------------- --------------- --------------- ---------------
Net decrease in net assets
assets resulting from capital
transactions (5,933,325) (914,769) (503,002) (17,179,782)
--------------- --------------- --------------- ---------------
Total increase (decrease) 5,231,168 (684,066) (24,551) (1,244,628)
NET ASSETS, at beginning
of the year 143,636,097 11,925,882 13,405,250 254,502,576
--------------- --------------- --------------- ---------------
NET ASSETS, at end
of the period $ 148,867,265 $ 11,241,816 $ 13,380,699 $ 253,257,948
=============== =============== =============== ===============
<CAPTION>
1997
---------------------------------------------------------------------
MML MML
MML Money Managed MML
Equity Market Bond Blend
Division Division Division Division
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets Operations:
Net investment income (loss) $ (774,273) $ 235,347 $ 151,841 $ 638,425
Net realized gain
on investments 4,386,500 - 55,458 7,808,824
Change in net unrealized
appreciation of investments 15,216,271 - 128,805 16,247,026
--------------- --------------- --------------- ---------------
Net increase in net assets
resulting from operations 18,828,498 235,347 336,104 24,694,275
--------------- --------------- --------------- ---------------
Capital transactions: (Note 8)
Net contract payments (Note 6) 1,959,483 314,890 185,094 4,159,174
Withdrawal of funds (8,314,620) (2,563,050) (982,402) (17,870,313)
Reimbursement (payment) of
accumlation unit value fluctuation (60,305) (1,876) 48,536 24,963
Net charge (credit) to
annuitant mortality fluctuation
reserve (Note 3D) 382 868 (50,027) (22,512)
Annuity benefit payments (13,665) (4,502) (5,805) (18,423)
Withdrawal due to administrative
charges and contingent deferred
sales charges (Note 6) (114,964) (11,240) (13,941) (293,637)
Divisional transfers 1,149,722 1,427,074 (452,045) (2,124,750)
--------------- --------------- --------------- ---------------
Net decrease in net assets
assets resulting from capital
transactions (5,393,967) (837,836) (1,270,590) (16,145,498)
--------------- --------------- --------------- ---------------
Total increase (decrease) 13,434,531 (602,489) (934,486) 8,548,777
NET ASSETS, at beginning
of the year 125,266,639 12,666,115 14,802,760 240,535,453
--------------- --------------- --------------- ---------------
NET ASSETS, at end
of the period $ 138,701,170 $ 12,063,626 $ 13,868,274 $ 249,084,230
=============== =============== =============== ===============
</TABLE>
See Notes to Financial Statements.
5
<PAGE>
Massachusetts Mutual Variable Annuity Separate Account 1 -
Variable Annuity Fund 4 and Flex-Annuity IV (Qualified)
Notes To Financial Statements
(Unaudited)
1. HISTORY
Massachusetts Mutual Variable Annuity Separate Account 1 ("Separate Account
1") is a separate investment account established on April 8, 1981 by
Massachusetts Mutual Life Insurance Company ("MassMutual"). Separate Account
1 operates as a registered unit investment trust pursuant to the Investment
Company Act of 1940 and the rules promulgated thereunder.
MassMutual maintains three segments within Separate Account 1. The segments
are Variable Annuity Fund 4, Flex-Annuity IV (Qualified) and Flex Extra
(Qualified). These notes and the financial statements presented herein, with
the exception of Note 9, describe and consist only of the Variable Annuity
Fund 4 and Flex-Annuity IV (Qualified) segments (the "Segment").
2. INVESTMENT OF THE SEGMENT'S ASSETS
The Variable Annuity Fund 4 and the Flex-Annuity IV (Qualified) segments
each have four divisions. The MML Equity Division invests in shares of MML
Equity Fund, the MML Money Market Division invests in shares of MML Money
Market Fund, the MML Managed Bond Division invests in shares of MML Managed
Bond Fund and the MML Blend Division invests in shares of MML Blend Fund.
MML Equity Fund, MML Money Market Fund, MML Managed Bond Fund and MML Blend
Fund are four series of shares of MML Series Investment Fund (the "MML
Trust"). The MML Trust is a registered, no-load, open-end, management
investment company for which MassMutual serves as investment manager. David
L. Babson and Company, Inc., a controlled subsidiary of MassMutual, serves
as the investment sub-adviser to MML Equity Fund and the Equity Sector of
the MML Blend Fund.
3. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Segment in preparation of the financial statements in
conformity with generally accepted accounting principles.
A. Investment Valuation
Investments in MML Equity Fund, MML Money Market Fund, MML Managed Bond Fund
and MML Blend Fund are each stated at market value which is the net asset
value of each of the respective funds.
B. Accounting For Investments
Investment transactions are accounted for on trade date and identified cost
is the basis followed in determining the cost of investments sold for
financial statement purposes. Dividend income is recorded on the ex-dividend
date.
6
<PAGE>
Notes To Financial Statements (Continued)
C. Federal Income Taxes
Operations of the Segment form a part of the total operations of MassMutual,
and the Segment is not taxed separately. MassMutual is taxed as a life
insurance company under the provisions of the 1986 Internal Revenue Code, as
amended. The Segment will not be taxed as a "regulated investment company"
under Subchapter M of the Internal Revenue Code. Under existing federal law,
no taxes are payable on investment income and realized capital gains
attributable to Contracts which depend on the Segment's investment
performance. Accordingly, no provision for federal income tax has been made.
MassMutual may, however, make such a charge in the future if an
unanticipated change of current law results in a company tax liability
attributable to the Segment.
D. Annuitant Mortality Fluctuation Reserve
The Segment maintains a reserve as required by regulatory authorities to
provide for mortality losses incurred. The reserve is increased quarterly
for mortality gains and its proportionate share of any increases in value.
The reserve is charged quarterly for mortality losses and its proportionate
share of any decreases in value. Transfers to or from MassMutual are then
made quarterly to adjust the Segments. Net transfers from the Segments to
MassMutual totaled $127,762 and $67,596 for the period ended June 30, 1998
and 1997, respectively. The reserve is subject to a maximum of 3% of the
Segment's annuity reserves. Any mortality losses in excess of this reserve
will be assumed by MassMutual. The reserve is not available to owners of
Contracts except to the extent necessary to cover mortality losses under the
Contracts.
E. Annuity Reserves
Annuity reserves are developed by using accepted actuarial methods and are
computed using the 1971 Individual Annuity Mortality Table, as modified.
F. Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
4. CHARGES FOR MORTALITY AND EXPENSE RISKS
A. Variable Annuity Fund 4 Contracts
Currently, daily charges for mortality and expense risks assumed by
MassMutual are made which are equivalent on an annual basis to 0.730% of the
value of the Variable Annuity Fund 4 Contracts. Effective on January 1 of
any year after the first Contract year, the daily charge made for the
assumption of mortality and expense risks will be as determined by
MassMutual, but in no event will such charge be at an annual rate of more
than 1.2045% of the value of the Variable Annuity Fund 4 Contracts.
B. Flex-Annuity IV (Qualified) Contracts
Daily charges for mortality and expense risks assumed by MassMutual are made
which are equivalent on an annual basis to 1.25% of the value of the
Flex-Annuity IV Contracts.
7
<PAGE>
Notes To Financial Statements (Continued)
5. DISTRIBUTION AGREEMENT
MML Investors Services, Inc. ("MMLISI"), a wholly-owned subsidiary of
MassMutual, serves as the principal underwriter of the contracts. MMLISI is
registered as a broker-dealer under the Securities Exchange Act of 1934 and
is a member of the National Association of Securities Dealers, Inc. The
Contracts are no longer offered for sale to the public. Contract owners may
continue, however, to make purchase payments under existing contracts.
Pursuant to the underwriting and servicing agreements, commissions or other
fees due to registered representatives for selling and servicing the
contracts are paid by MassMutual on behalf of MMLISI. MMLISI also receives
compensation for its activities as underwriter of the contracts.
6. CHARGES/DEDUCTIONS FOR ADMINISTRATIVE CHARGES, CONTINGENT DEFERRED
SALES CHARGES AND PREMIUM TAXES
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
For The Six Months Ended Equity Market Bond Blend
June 30, 1998 Division Division Division Division
- ------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Gross contract payments $1,817,051 $ 86,677 $ 125,710 $3,380,547
Less deductions for administrative and sales expenses and
premium taxes under Variable Annuity Fund 4 Contracts 1,561 1,234 1,028 3,687
Less deductions for premium taxes under Flex-Annuity IV Contracts 2,013 80 126 3,733
---------- ---------- ---------- ----------
Net contract payments $1,813,477 $ 85,363 $ 124,556 $3,373,127
========== ========== ========== ==========
Administrative and contingent deferred sales
charges under Flex-Annuity IV Contracts $ 107,712 $ 9,342 $ 11,902 $ 251,541
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
For The Six Months Ended Equity Market Bond Blend
June 30, 1997 Division Division Division Division
- ------------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Gross contract payments $1,966,904 $ 316,089 $ 185,979 $4,165,042
Less deductions for administrative and sales expenses and
premium taxes under Variable Annuity Fund 4 Contracts 6,519 1,054 801 3,872
Less deductions for premium taxes under Flex-Annuity IV Contracts 902 145 84 1,996
---------- ---------- ---------- ----------
Net contract payments $1,959,483 $ 314,890 $ 185,094 $4,159,174
========== ========== ========== ==========
Administrative and contingent deferred sales
charges under Flex-Annuity IV Contracts $ 114,964 $ 11,240 $ 13,941 $ 293,637
========== ========== ========== ==========
</TABLE>
7. PURCHASES AND SALES OF INVESTMENTS
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
For The Six Months Ended Equity Market Bond Blend
June 30, 1998 Division Division Division Division
- ------------- -------------- ------------- ------------- --------------
<S> <C> <C> <C> <C>
Cost of purchases $ 13,563,776 $ 1,722,502 $ 1,359,399 $ 20,427,750
Proceeds from sales 10,447,335 2,272,986 1,561,558 19,520,336
</TABLE>
8
<PAGE>
Notes To Financial Statements (Continued)
8. NET INCREASE (DECREASE) IN ACCUMULATION UNITS
Variable Annuity Fund 4 Contracts
<TABLE>
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
For the Six Months Ended June 30, 1998 Division Division Division Division
- -------------------------------------- --------- -------- -------- ---------
<S> <C> <C> <C> <C>
Units purchased 1,530 5,398 2,660 7,327
Units withdrawn (74,478) (83,510) (49,975) (333,888)
Units transferred between divisions 1,178 19,722 680 (10,995)
------------ ----------- ----------- ------------
Net decrease (71,770) (58,390) (46,635) (337,556)
Units, at beginning of the year 1,273,191 973,364 432,147 2,585,687
------------ ----------- ----------- ------------
Units, at end of the period 1,201,421 914,974 385,512 2,248,131
============ =========== =========== ============
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
For the Six Months Ended June 30, 1997 Division Division Division Division
- -------------------------------------- --------- -------- -------- ---------
<S> <C> <C> <C> <C>
Units purchased 12,108 7,130 3,415 14,059
Units withdrawn (55,049) (161,416) (44,297) (327,029)
Units transferred between divisions 6,952 72,471 (21,712) (33,482)
------------ ----------- ----------- ------------
Net decrease (35,989) (81,815) (62,594) (346,452)
Units, at beginning of the year 1,373,330 1,157,488 553,694 3,071,677
------------ ----------- ----------- ------------
Units, at end of the period 1,337,341 1,075,673 491,100 2,725,225
============ =========== =========== ============
Flex-Annuity IV Contracts
<CAPTION>
MML MML
MML Money Managed MML
Equity Market Bond Blend
For the Six Months Ended June 30, 1998 Division Division Division Division
- -------------------------------------- --------- -------- -------- ---------
<S> <C> <C> <C> <C>
Units purchased 167,411 32,206 30,376 626,749
Units withdrawn (820,388) (443,357) (254,210) (3,008,479)
Units transferred between divisions 178,685 70,559 152,583 (507,691)
Units transferred to annuity reserves -- -- -- (12,124)
------------ ----------- ----------- ------------
Net decrease (474,292) (340,592) (71,251) (2,901,545)
Units, at beginning of the year 12,873,716 4,264,075 3,129,633 48,121,541
------------ ----------- ----------- ------------
Units, at end of the period 12,399,424 3,923,483 3,058,382 45,219,996
============ =========== =========== ============
MML MML
MML Money Managed MML
Equity Market Bond Blend
For the Six Months Ended June 30, 1997 Division Division Division Division
- -------------------------------------- --------- -------- -------- ---------
<S> <C> <C> <C> <C>
Units purchased 223,225 139,173 50,844 962,214
Units withdrawn (957,264) (1,019,118) (243,552) (3,841,033)
Units transferred between divisions 129,438 583,236 (107,085) (458,643)
Units transferred to annuity reserves -- -- -- (12,124)
------------ ----------- ----------- ------------
Net decrease (604,601) (296,709) (299,793) (3,349,586)
Units, at beginning of the year 14,317,232 4,615,046 3,717,153 54,207,831
------------ ----------- ----------- ------------
Units, at end of the period 13,712,631 4,318,337 3,417,360 50,858,245
============ =========== =========== ============
</TABLE>
9
<PAGE>
Notes To Financial Statements (Continued)
9. CONSOLIDATED MASSACHUSETTS MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT 1
As discussed in Note 1, the financial statements only represent activity of
the Variable Annuity Fund 4 and Flex-Annuity IV (Qualified) segment of the
Massachusetts Mutual Variable Annuity Separate Account 1. The combined net
assets as of June 30, 1998 for Massachusetts Mutual Variable Annuity
Separate Account 1, which includes the segments pertaining to the Variable
Annuity Fund 4, Flex-Annuity IV (Qualified) and Flex Extra (Qualified) are
as follows:
<TABLE>
<CAPTION>
MML MML *Oppenheimer *Oppenheimer *Oppenheimer
MML Money Managed MML Capital Global Strategic
Equity Market Bond Blend Appreciation Securities Bond
Division Division Division Division Division Division Division
-------------- ------------ ------------- -------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Total assets $1,873,403,632 $ 81,678,386 $ 135,105,276 $2,115,504,840 $ 386,975,742 $ 246,664,433 $ 77,848,585
Total liabilities 7,352,411 249,292 547,465 8,164,130 1,304,393 888,887 380,566
-------------- ------------ ------------- -------------- ------------- ------------- ------------
Net assets $1,866,051,221 $ 81,429,094 $ 134,557,811 $2,107,340,710 $ 385,671,349 $ 245,775,546 $ 77,468,019
============== ============ ============= ============== ============= ============= ============
Net assets consist of:
Accumulation units--Value $1,864,793,705 $ 81,340,459 $ 134,373,117 $2,105,004,141 $ 385,597,132 $ 245,753,834 $ 77,442,503
Annuity reserves 1,257,516 88,635 184,694 2,336,569 74,217 21,712 25,516
-------------- ------------ ------------- -------------- ------------- ------------- ------------
Net assets $1,866,051,221 $ 81,429,094 $ 134,557,811 $2,107,340,710 $ 385,671,349 $ 245,775,546 $ 77,468,019
============== ============ ============= ============== ============= ============= ============
</TABLE>
*Offered on the Flex Extra (Qualified) Contracts only.
10
