<PAGE>
PANORAMA SEPARATE ACCOUNT-Registered Trademark-
CONNECTICUT MUTUAL FINANCIAL SERVICES
SERIES FUND I, INC.
A N N U A L
R E P O R T S
DECEMBER 31, 1995
Money Market Portfolio
Income Portfolio
Total Return Portfolio
Growth Portfolio
[LOGO] Connecticut
Mutual
The Blue Chip Company-Registered Trademark-
<PAGE>
PANORAMA ANNUAL REPORT
---------------------------
1995 ANNUAL REPORT
DEAR PANORAMA CONTRACT HOLDER:
The stock and bond markets both turned in impressive performances last
year, making 1995 a banner year for investors. It was a year in which the Dow
Jones Industrial Average exceeded 5200 and the yield on the 30 year Treasury
bond dropped by almost 200 basis points.
What went right for the markets in 1995? Just about everything that
mattered.
We entered the year with a strong economy. The Central Bank, in a
tightening mode, had been increasing interest rates to head off inflation. The
November elections brought victory for the Republicans in Congress, signaling a
better political time for markets.
As expected, the increasing interest rates of 1994 and early 1995 put the
brakes on the economy, slowing it sufficiently to avoid higher inflation, but
not enough to cause a recession. The Fed began to ease its grip on interest
rates, the dollar gathered strength, and inflation remained low -- setting a
positive tone for both the bond and stock markets.
At the same time, corporate earnings grew vigorously and the federal
government continued moving toward greater fiscal responsibility -- contributing
to a superlative year for the stock market.
Because our portfolio managers were anticipating this type of environment,
Panorama investors were able to capitalize on market trends. All of the Panorama
Accounts were well up in the top half of their respective categories.
The Panorama Money Market Account, as with all money market funds,
responded to lower inflation and lower interest rates with modest returns. The
Panorama Money Market Account was up 4.79 percent for the twelve months ended
December 31, 1995, better than the category average of 4.34 percent, according
to Morningstar.
The Panorama Income Account was up 17.68 percent, compared with the
category average increase of 16.44 percent, for the twelve months ended December
31, 1995, according to Morningstar. The account was well-positioned for the
decreasing interest rate environment and held maturities that were a little
longer than the average bond fund.
According to Morningstar, the Panorama Total Return Account, with a mix of
stocks, bonds and cash, ended the twelve months with a 23.64 percent increase.
The Account's strict asset allocation discipline, along with its good stock
selection, helped it outperform the category average of 22.17 percent.
The Panorama Growth Account boasted a 36.58 percent gain in the twelve
months ended December 31, 1995, according to Morningstar, compared to the
category average increase of 31.10 percent.
We are certainly pleased with Panorama's performance throughout 1995, and
we will continue to monitor economic and market conditions to help maintain
Panorama's position as a top-performing variable annuity.
You will likely find that the expertise of our investment professionals is
even more valuable as we grapple with the federal budget battle and anticipate
the Presidential elections in the months ahead.
ECONOMIC FORECAST: FIRST AND SECOND QUARTERS 1996
A look ahead at 1996 shows a continuation of 1995, with low inflation, a
slow economy and continued reductions in interest rates by the Fed. This
scenario -- combined with a strong dollar and decreasing rates overseas --
provides a favorable backdrop for the bond market, although most of the rally
seems to be behind us.
A strong bond market and low interest rates should fuel more growth in the
stock market. That growth could, however, be dampened by lackluster corporate
earnings, could introduce downward pressure on the market and create volatility.
Our investment managers also are keeping a close eye on Washington.
Although the current battle over the federal budget appears to represent another
step in the march toward fiscal responsibility, it could also create short-term
volatility in the markets. The presidential election in November bears watching,
as well.
Overall, the fundamentals remain positive: a slowing (but still growing)
economy, little inflation, improving prospects of a balanced federal budget and
falling short-term interest rates. Unless these dynamics change, we look forward
to another strong year in the financial markets.
SUMMARY
For most investors, the current bull market is a dream come true. But,
anyone who has watched the market over time knows that circumstances can change
quickly and double-digit returns can easily dwindle.
Successful investors expect those ups and downs and ride them out --
because they know that, in the long run, the stock market has provided financial
rewards. That's why we, too, stick to a tried and true investment discipline
designed to work in good times and in bad, over time.
On the whole, we are pleased with the results of Panorama for 1995 and we
hope you share our enthusiasm and optimism for the coming year. If you want to
know more about Panorama and the options available to you, talk to your
registered representative or call 1-800-234-5606, and press 1, to find out more.
David E. Sams, Jr.
PRESIDENT AND CHIEF EXECUTIVE OFFICER
THE PANORAMA INVESTMENT OPTIONS
MONEY MARKET
This Portfolio is designed to achieve as high a level of current income as is
consistent with preservation of capital and maintenance of liquidity by
investing in money market instruments.
INCOME
This Portfolio's objective is to obtain a maximum level of income consistent
with prudent investment risk and preservation of capital by investing primarily
in fixed-income debt securities anticipated to have an average maturity of
eight to twelve years from the date of purchase.
TOTAL RETURN
This Portfolio seeks to maximize over time the return achieved from capital
appreciation and income by varying the allocation of the assets of the
Portfolio among stocks, corporate bonds, securities issued by the U.S.
Government and its instrumentalities, and money market instruments of the type
acquired respectively by the Growth Portfolio, the Income Portfolio, and the
Money Market Portfolio.
<PAGE>
GROWTH
This objective of this Portfolio is to achieve long-term growth of capital by
investing primarily in common stocks with low price-earnings ratios and better
than anticipated earnings.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE PERFORMANCE.
ONLY FOUR OF THE PORTFOLIOS OF CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES FUND
I, INC. (THE MONEY MARKET PORTFOLIO, THE INCOME PORTFOLIO, THE TOTAL RETURN
PORTFOLIO AND THE GROWTH PORTFOLIO) ARE AVAILABLE UNDER THE PANORAMA VARIABLE
ANNUITY CONTRACT.
THIS MATERIAL IS INTENDED FOR USE ONLY WHEN ACCOMPANIED OR PRECEDED BY A
PROSPECTUS.
THE PERFORMANCE EVALUATED BY MORNINGSTAR, INC., WHICH TRACKS MORE THAN 190
ANNUITY CONTRACTS, IS ACTUAL PORTFOLIO PERFORMANCE (NON-STANDARD) AND INCLUDES
REINVESTED DIVIDENDS AND CAPITAL GAINS, AND REFLECTS ALL ON-GOING INVESTMENT,
MORTALITY, AND EXPENSE CHARGES.
<PAGE>
<TABLE>
<S> <C>
PERFORMANCE -- TOTAL RETURN1
</TABLE>
<TABLE>
<CAPTION>
STANDARD2 AVERAGE ANNUAL
TOTAL RETURN AS OF 12/31/95
DECEMBER
31, 1995 SINCE
SUB-ACCOUNTS UNIT VALUE ONE YEAR FIVE YEAR TEN YEAR INCEPTION4
<S> <C> <C> <C> <C> <C>
MONEY MARKET5
Tax-Qualified Plan
Contracts 2.287780 -0.05% 2.58% 4.86% 5.94%
Non Tax-Qualified Plan
Contracts 2.287780 -0.05% 2.58% 4.86% 5.94%
SEVEN DAY YIELD: (12/24/95 --
12/31/95)
Annualized 4.56%
Effective 4.66%
INCOME
Tax-Qualified Plan
Contracts 4.078803 12.20% 8.36% 8.36% 10.43%
Non Tax-Qualified Plan
Contracts 3.825614 12.20% 8.36% 8.36% 9.93%
TOTAL RETURN
Tax-Qualified Plan
Contracts 5.171950 17.86% 13.31% 11.61% 13.02%
Non Tax-Qualified Plan
Contracts 4.932613 17.86% 13.31% 11.61% 12.61%
GROWTH
Tax-Qualified Plan
Contracts 8.706503 30.15% 18.86% 14.18% 16.61%
Non Tax-Qualified Plan
Contracts 7.812045 30.15% 18.86% 14.18% 15.71%
<CAPTION>
NON-STANDARD3
AVERAGE
ANNUAL
TOTAL RETURN
AS OF
12/31/95
SINCE
SUB-ACCOUNTS ONE YEAR FIVE YEAR TEN YEAR INCEPTION4
<S> <C> <C> <C> <C>
MONEY MARKET5
Tax-Qualified Plan
Contracts 4.69% 3.34% 4.86% 5.94%
Non Tax-Qualified Plan
Contracts 4.69% 3.34% 4.86% 5.94%
SEVEN DAY YIELD: (12/24/95 --
12/31/95)
Annualized 4.56%
Effective 4.66%
INCOME
Tax-Qualified Plan
Contracts 17.58% 9.17% 8.36% 10.43%
Non Tax-Qualified Plan
Contracts 17.58% 9.17% 8.36% 9.93%
TOTAL RETURN
Tax-Qualified Plan
Contracts 23.53% 14.17% 11.61% 13.02%
Non Tax-Qualified Plan
Contracts 23.53% 14.17% 11.61% 12.61%
GROWTH
Tax-Qualified Plan
Contracts 36.48% 19.76% 14.18% 16.61%
Non Tax-Qualified Plan
Contracts 36.48% 19.76% 14.18% 15.71%
</TABLE>
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION OF
FUTURE RETURNS.
THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE SO
THAT AN INVESTOR'S SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THE ORIGINAL INVESTMENT.
1. All returns take into consideration all ongoing investment, mortality and
expense charges pertaining to Panorama Separate Account contracts as well as
the annual maintenance charge paid from each contract. Total return figures
include reinvestment of all dividends and capital gains.
2. The "standard" returns assume the contract is surrendered at the end of the
calculation period and incurs a 5%, 4% or 0% surrender charge, depending on
the length of time invested. For the 10 year calculation, the surrender
charge is 0%.
3. The "non-standard" returns assume the contract is still in force and
therefore do not take into consideration the surrender charge.
4. Inception was January 21, 1982 except for the Total Return Sub-Account,
which began on September 30, 1982.
5. Amounts allocated to the Money Market Sub-Account are invested in the Money
Market Portfolio of Series Fund I. AN INVESTMENT IN THE MONEY MARKET
PORTFOLIO IS NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE
CAN BE NO ASSURANCE THAT THE MONEY MARKET PORTFOLIO WILL BE ABLE TO MAINTAIN
A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
<TABLE>
<S> <C>
UNIT VALUES, PERCENT CHANGES PANORAMA SEPARATE ACCOUNT OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, DECEMBER 31,
1994 1995
S U B - A C C O U N T S UNIT VALUE* UNIT VALUE* PERCENT CHANGE
<S> <C> <C> <C>
MONEY MARKET 2.183169 2.287780 +4.79%
INCOME
Tax-Qualified Plan Contracts 3.465955 4.078803 +17.68%
Non Tax-Qualified Plan Contracts 3.250807 3.825614 +17.68%
TOTAL RETURN
Tax-Qualified Plan Contracts 4.183148 5.171950 +23.64%
Non Tax-Qualified Plan Contracts 3.989561 4.932613 +23.64%
GROWTH
Tax-Qualified Plan Contracts 6.374619 8.706503 +36.58%
Non Tax-Qualified Plan Contracts 5.719724 7.812045 +36.58%
<CAPTION>
PERCENT CHANGE
SINCE
S U B - A C C O U N T S INCEPTION**
<S> <C>
MONEY MARKET +128.78%
INCOME
Tax-Qualified Plan Contracts +307.88%
Non Tax-Qualified Plan Contracts +282.56%
TOTAL RETURN
Tax-Qualified Plan Contracts +417.20%
Non Tax-Qualified Plan Contracts +393.26%
GROWTH
Tax-Qualified Plan Contracts +770.65%
Non Tax-Qualified Plan Contracts +681.20%
</TABLE>
* These unit values do not reflect the
annual $40 contract maintenance fee or
surrender charges.
**January 21, 1982 for all sub-accounts,
except for Total Return which began
operations on September 30, 1982. All
unit values were $1.00 at inception.
1
<PAGE>
<TABLE>
<S> <C>
STATEMENT OF NET ASSETS PANORAMA SEPARATE ACCOUNT OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
<TABLE>
<S> <C>
ASSETS
Investments, at market:
Connecticut Mutual Financial Services Series Fund I, Inc.
Money Market Portfolio
52,049,014 shares (Cost $52,049,014) $ 52,049,014
Income Portfolio
63,164,897 shares (Cost $79,716,897) 77,819,596
Total Return Portfolio
403,865,451 shares (Cost $652,639,672) 708,268,193
Growth Portfolio
97,867,741 shares (Cost $208,745,216) 247,161,652
----------------------
1,085,298,455
Cash 205,980
----------------------
Total Assets 1,085,504,435
----------------------
LIABILITIES
Due to Affiliates 876,710
----------------------
Total Liabilities 876,710
----------------------
NET ASSETS (VARIABLE ANNUITY CONTRACT LIABILITIES) $1,084,627,725
----------------------
----------------------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY CONTRACT LIABILITIES
At December 31, 1995, the variable annuity contract liabilities of UNITS OWNED BY
the Account consisted of the following: PARTICIPANTS UNIT VALUES
<S> <C> <C>
MONEY MARKET SUB-ACCOUNT
Tax-Qualified Plan Contracts 16,334,145 2.287780
Non Tax-Qualified Plan Contracts 6,227,229 2.287780
Annuity Reserve Tax-Qualified Plan Contracts 160,104 2.287780
Annuity Reserve Non Tax-Qualified Plan Contracts 17,966 2.287780
INCOME SUB-ACCOUNT
Tax-Qualified Plan Contracts 12,557,687 4.078803
Non Tax-Qualified Plan Contracts 6,881,942 3.825614
Annuity Reserve Tax-Qualified Plan Contracts 43,774 4.078803
Annuity Reserve Non Tax-Qualified Plan Contracts 12,724 3.825614
TOTAL RETURN SUB-ACCOUNT
Tax-Qualified Plan Contracts 96,555,427 5.171950
Non Tax-Qualified Plan Contracts 41,857,538 4.932613
Annuity Reserve Tax-Qualified Plan Contracts 231,793 5.171950
Annuity Reserve Non Tax-Qualified Plan Contracts 156,805 4.932613
GROWTH SUB-ACCOUNT
Tax-Qualified Plan Contracts 19,024,051 8.706503
Non Tax-Qualified Plan Contracts 10,364,426 7.812045
Annuity Reserve Tax-Qualified Plan Contracts 38,701 8.706503
Annuity Reserve Non Tax-Qualified Plan Contracts 9,376 7.812045
<CAPTION>
VARIABLE ANNUITY CONTRACT LIABILITIES
At December 31, 1995, the variable annuity contract liabilities of VARIABLE ANNUITY
the Account consisted of the following: CONTRACT LIABILITIES
<S> <C>
MONEY MARKET SUB-ACCOUNT
Tax-Qualified Plan Contracts $ 37,368,930
Non Tax-Qualified Plan Contracts 14,246,530
Annuity Reserve Tax-Qualified Plan Contracts 366,283
Annuity Reserve Non Tax-Qualified Plan Contracts 41,102
INCOME SUB-ACCOUNT
Tax-Qualified Plan Contracts 51,220,331
Non Tax-Qualified Plan Contracts 26,327,654
Annuity Reserve Tax-Qualified Plan Contracts 178,546
Annuity Reserve Non Tax-Qualified Plan Contracts 48,677
TOTAL RETURN SUB-ACCOUNT
Tax-Qualified Plan Contracts 499,379,841
Non Tax-Qualified Plan Contracts 206,467,036
Annuity Reserve Tax-Qualified Plan Contracts 1,198,822
Annuity Reserve Non Tax-Qualified Plan Contracts 773,458
GROWTH SUB-ACCOUNT
Tax-Qualified Plan Contracts 165,632,957
Non Tax-Qualified Plan Contracts 80,967,362
Annuity Reserve Tax-Qualified Plan Contracts 336,950
Annuity Reserve Non Tax-Qualified Plan Contracts 73,246
---------------------
$1,084,627,725
---------------------
---------------------
</TABLE>
2 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<S> <C>
STATEMENT OF OPERATIONS PANORAMA SEPARATE ACCOUNT OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
For the year ended December 31, 1995
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
TOTAL
MONEY MARKET INCOME RETURN GROWTH
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Income:
Dividends $2,786,577 $4,838,633 $ 49,668,494 $17,053,046
Expenses:
Mortality and Expense Risk Fees 374,781 555,694 4,700,248 1,352,532
-------------- -------------- -------------- --------------
NET INVESTMENT INCOME 2,411,796 4,282,939 44,968,246 15,700,514
-------------- -------------- -------------- --------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net Realized (Loss) Gain from Fund Share Transactions -- (590,495) 11,298,218 5,973,183
Unrealized Appreciation -- 8,423,527 78,085,533 39,833,658
-------------- -------------- -------------- --------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS -- 7,833,032 89,383,751 45,806,841
-------------- -------------- -------------- --------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $2,411,796 $12,115,971 $134,351,997 $61,507,355
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 3
<PAGE>
<TABLE>
<S> <C>
STATEMENTS OF CHANGES IN NET ASSETS PANORAMA SEPARATE ACCOUNT OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
For the years ended December 31, 1995 and 1994
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
MONEY MARKET INCOME
<S> <C> <C> <C> <C>
1995 1994 1995 1994
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net Investment Income $2,411,796 $1,533,558 $4,282,939 $4,836,914
Realized (Loss) Gain from Fund Share Transactions -- -- (590,495) 163,882
Unrealized Appreciation (Depreciation) -- -- 8,423,527 (8,784,178)
-------------- -------------- -------------- --------------
Net Increase (Decrease) in Net Assets Resulting from
Operations 2,411,796 1,533,558 12,115,971 (3,783,382)
-------------- -------------- -------------- --------------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 11,715,687 11,335,950 6,056,240 11,032,967
Withdrawals by Contract Holders (9,341,918) (10,870,603) (8,264,229) (7,437,529)
Net Transfers (to) from other Panorama Sub-Accounts (4,509,818) 469,904 (4,517,166) (9,413,832)
-------------- -------------- -------------- --------------
Net (Decrease) Increase in Net Assets from Unit
Transactions (2,136,049) 935,251 (6,725,155) (5,818,394)
-------------- -------------- -------------- --------------
INCREASE (DECREASE) IN NET ASSETS 275,747 2,468,809 5,390,816 (9,601,776)
-------------- -------------- -------------- --------------
NET ASSETS
Beginning of Period 51,747,098 49,278,289 72,384,392 81,986,168
-------------- -------------- -------------- --------------
End of Period $52,022,845 $51,747,098 $77,775,208 $72,384,392
-------------- -------------- -------------- --------------
-------------- -------------- -------------- --------------
</TABLE>
4 The accompanying notes are an integral part of these financial statements.
<PAGE>
<TABLE>
<S> <C>
STATEMENTS OF CHANGES IN NET ASSETS PANORAMA SEPARATE ACCOUNT OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
For the years ended December 31, 1995 and 1994
</TABLE>
<TABLE>
<CAPTION>
S U B - A C C O U N T S
TOTAL RETURN GROWTH
1995 1994 1995 1994
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS:
Net Investment Income $ 44,968,246 $ 34,140,704 $ 15,700,514 $ 6,477,544
Realized (Loss) Gain from Fund Share Transactions 11,298,218 9,912,323 5,973,183 2,779,921
Unrealized Appreciation (Depreciation) 78,085,533 (55,823,983) 39,833,658 (10,850,931)
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net Assets Resulting from
Operations 134,351,997 (11,770,956) 61,507,355 (1,593,466)
------------- ------------- ------------- -------------
FROM UNIT TRANSACTIONS:
Purchases by Contract Holders 51,284,320 86,647,735 28,930,479 30,687,768
Withdrawals by Contract Holders (43,461,737) (33,741,199) (10,352,991) (7,758,931)
Net Transfers (to) from other Panorama Sub-Accounts (1,460,267) 2,578,456 10,486,432 6,363,573
------------- ------------- ------------- -------------
Net (Decrease) Increase in Net Assets from Unit
Transactions 6,362,316 55,484,992 29,063,920 29,292,410
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS 140,714,313 43,714,036 90,571,275 27,698,944
------------- ------------- ------------- -------------
NET ASSETS
Beginning of Period 567,104,844 523,390,808 156,439,240 128,740,296
------------- ------------- ------------- -------------
End of Period $707,819,157 $567,104,844 $247,010,515 $156,439,240
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
The accompanying notes are an integral part of these financial statements. 5
<PAGE>
<TABLE>
<S> <C>
NOTES TO FINANCIAL STATEMENTS PANORAMA SEPARATE ACCOUNT OF
CONNECTICUT MUTUAL LIFE INSURANCE COMPANY
December 31, 1995
</TABLE>
1. ORGANIZATION
The Panorama Separate Account (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. Each
purchase payment is allocated to one or more sub-accounts of the Account.
The Account is invested exclusively in portfolios of Connecticut Mutual
Financial Services Series Fund I, Inc. (the Fund). Separate sub-accounts
have been established for tax-qualified and non tax-qualified assets for
each portfolio. Net purchase payments and transfers between sub-accounts are
applied to purchase Fund shares in the appropriate portfolio at the net
asset value determined as of the end of the valuation period during which
the payments were received or the transfers made.
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 INVESTMENT SECURITIES - The investments in shares of the Fund
are valued at their closing net asset value per share as determined for the
appropriate portfolio of the Fund on December 31, 1995. Valuation of
securities by the Fund is discussed in Note 1 of the Fund's Notes to
Financial Statements which are included elsewhere in this report.
(c)FEDERAL INCOME TAXES - The operations of the Account form a part of the
total operations of Connecticut Mutual 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.
3. CONTRACT CHARGES
For assuming mortality and expense risks, Connecticut Mutual makes a daily
charge equal to .002% (.73% on an annual basis) of the value of the Account's
assets. A deduction of $40 per contract is made annually to cover the expense
of administering the Account.
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.
6
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To Panorama Separate Account of Connecticut Mutual
Life Insurance Company and to the Owners of Units
of Interest Therein:
We have audited the accompanying statement of net assets of Panorama
Separate Account of Connecticut Mutual Life Insurance Company 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 Panorama Separate
Account of Connecticut Mutual Life Insurance Company 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
7
<PAGE>
CONNECTICUT MUTUAL
LIFE INSURANCE COMPANY
--------------------------------------
BOARD OF DIRECTORS AND OFFICERS
JAMES R. BIRLE, Director
President
Resolute Partners, Incorporated
ANDREW F. BRIMMER, PH.D., Director
President
Brimmer & Company, Inc.
FRANK C. CARLUCCI, III, Director
Chairman
The Carlyle Group
GENE CHAO, PH.D., Director
Chairman and Chief Executive Officer
Computer Projections, Inc.
PATRICIA D. DENNIS, Director
Senior Vice President and Assistant
General Counsel
SBC Communications Inc.
WILLIAM B. ELLIS, PH.D., Director
Retired Chairman
Northeast Utilities
ROBERT M. FUREK, Director
President and Chief Executive Officer
Heublein, Inc.
HOWARD GOLDFEDER, Director
Retired Chairman and Chief Executive
Officer
Federated Department Stores, Inc.
GEORGE B. HARVEY, Director
Chairman, President and Chief Executive
Officer
Pitney Bowes, Inc.
JOHN F. MAYPOLE, Director
Managing Partner
Peach State Real Estate Holding Company
DAVID E. SAMS, JR., Director
President and Chief Executive Officer
Connecticut Mutual Life Insurance Company
ANNE MELISSA DOWLING
Chief Product and Investment Officer
JOHN D. LOEWENBERG
Executive Vice President
ANN F. LOMELI
Corporate Secretary and Counsel
J. BRINKE MARCUCCILLI
Senior Vice President and
Chief Financial Officer
SCOTT C. PETERS
Vice President and Treasurer
KATHERINE MCG. SULLIVAN
Senior Vice President and
General Counsel
This report is prepared for the general information of contract owners and is
not an offer of contracts of Panorama Separate 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.
<PAGE>
CONNECTICUT MUTUAL FINANCIAL SERVICES
SERIES FUND I, INC.
A N N U A L
R E P O R T
DECEMBER 31, 1995
Money Market Portfolio
Government Securities Portfolio
Income Portfolio
Total Return Portfolio
Growth Portfolio
International Equity Portfolio
ONLY FOUR OF THE PORTFOLIOS OF CONNECTICUT MUTUAL FINANCIAL SERVICES SERIES
FUND I, INC. (THE MONEY MARKET PORTFOLIO, THE INCOME PORTFOLIO, THE TOTAL
RETURN PORTFOLIO, AND THE GROWTH PORTFOLIO) ARE AVAILABLE UNDER THE PANORAMA
VARIABLE ANNUITY CONTRACT.
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MONEY MARKET INCOME PORTFOLIO
PORTFOLIO
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The Panorama Money Market Portfolio posted a 4.79 The Panorama Income Portfolio outperformed the
percent 12-month total return for the period ended competition in 1995 -- posting a 17.68 percent
December 31, 1995, as reported by Morningstar, return compared with the Morningstar category
Inc. The Portfolio performed better than the average of 16.44 percent.
Morningstar category average of 4.34 percent. This general bond fund was well-positioned for the
Returns on money market funds are modest because declining interest rate environment that took hold
of low interest rates and stagnant inflation. during 1995. Our maturities were a little longer
Money market returns are expected to remain low as than the average general bond fund and we
long as interest rates stay down. continued to invest conservatively, looking for
ANNUAL TOTAL RETURNS RELATE TO SERIES FUND I ONLY value in corporate mortgage and Treasury
AND DO NOT TAKE INTO CONSIDERATION THE EFFECT OF securities.
PANORAMA CONTRACT LEVEL CHARGES. With interest rates expected to remain low in
STANDARD RETURNS TAKE INTO CONSIDERATION ALL 1996, we look for the Panorama Income Portfolio to
ONGOING MORTALITY AND EXPENSE CHARGES, ANNUAL continue to provide favorable returns. Over the
CONTRACT CHARGES AND ASSUME THE CONTRACT IS SUR- past five years ended December 31, 1995, the
RENDERED AT THE END OF THE CALCULATION PERIOD AND Panorama Income Portfolio has returned 55.92
INCURS A 5% SURRENDER CHARGE. percent to investors, compared with the category
PERFORMANCE RATINGS BY MORNINGSTAR, INC., A average of 48.57 percent, according to
LEADING INDEPENDENT INVESTMENT ANALYSIS COMPANY. Morningstar.
FUNDS IN EXISTENCE LESS THAN THREE YEARS WERE
EXCLUDED. ONLY FUNDS WITH THREE SUB-ACCOUNTS WERE FISCAL
INCLUDED IN THIS ANALYSIS. THESE RANKINGS ARE PERIOD INCOME CPI ML
BASED ON THE FUND'S TOTAL RETURNS WHICH ARE BASED ------ ----------- ----------- ----------
ON THE PERCENTAGE OF CHANGE IN THE ACCUMULATION 12/31/85 $10,000 $10,000 $10,000
UNIT VALUES AND DO NOT TAKE INTO CONSIDERATION THE 12/31/86 11,379 10,119 11,563
EFFECT OF ANY SALES CHARGES, SURRENDER CHARGES OR 12/31/87 11,579 10,566 11,806
ANNUAL CONTRACT FEES ASSOCIATED WITH THE CONTRACT. 12/31/88 12,492 11,032 12,717
HAD THESE CHARGES AND FEES BEEN INCLUDED IN THE 12/31/89 14,229 11,543 14,514
CALCULATION OF PERFORMANCE, THESE RANKINGS MAY 12/31/90 15,070 12,265 15,747
HAVE BEEN LESS FAVORABLE. 12/31/91 17,830 12,630 18,249
12/31/92 19,101 13,005 19,651
12/31/93 21,458 13,361 21,824
FISCAL MONEY 12/31/94 20,582 13,708 21,111
PERIOD MARKET CPI 12/31/95 24,325 14,064 25,135
- ------ ----------- ----------- Comparative performance of $10,000 invested in the
12/31/85 $10,000 $10,000 Series Fund Income Portfolio, the Merrill Lynch
12/31/86 10,640 10,119 Government Corporate Master Index and the Consumer
12/31/87 11,313 10,566 Price Index. The Merrill Lynch Government
12/31/88 12,130 11,032 Corporate Master Index represents an unmanaged
12/31/89 13,216 11,543 group of bonds not adjusted for operating ex-
12/31/90 14,270 12,265 penses. If portfolio operating expenses had been
12/31/91 15,087 12,630 applied to the index, its ending value would have
12/31/92 15,592 13,005 been lower. The Consumer Price Index is an
12/31/93 16,010 13,361 unmanaged index and represents price changes in a
12/31/94 16,616 13,708 broad market basket of consumer goods and is
12/31/95 17,538 14,064 indicative of the rate of inflation.
Past performance is not indicative of future
Comparative performance of $10,000 invested in the performance.
Series Fund Money Market Portfolio and the For each Portfolio, the investment return and
Consumer Price Index. The Consumer Price Index is principal value of an investment will fluctuate so
an unmanaged index and represents price changes in that an investor's shares, when redeemed, may be
a broad market basket of consumer goods and is worth more or less than the original investment.
indicative of the rate of inflation. An investment
in the Money Market Portfolio is neither insured
nor guaranteed by the U.S. Government and there is
no assurance that the Money Market instruments
will be able to maintain a stable net asset value.
Past performance is not indicative of future
performance.
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TOTAL RETURN GROWTH PORTFOLIO
PORTFOLIO
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The Panorama Total Return Portfolio earned a The Panorama Growth Portfolio finished well above
healthy 23.64 percent for investors in 1995, its competition for the years ended December 31,
compared with a return of 22.17 percent for the 1995, earning 36.58 percent for investors. The
category average for similar balanced funds, as category average for the same period was 31.10
reported by Morningstar. percent according to Morningstar.
This Portfolio maintains a balance of stocks, This Portfolio benefited from our strict adher-
bonds and cash, and the weighting of each depends ence to an investment discipline that stresses
on market conditions. Our conservative approach value and focuses on stocks with low price-
and disciplined asset allocation kept this balance earnings ratios and positive earnings surprises.
on target in 1995 and contributed to the fund's Because of this disciplined approach, the Fund
impressive results. didn't flock to the popular technology stocks in
As reported by Morningstar, over time, the 1995 -- and didn't get hurt by their precipitous
Panorama Total Return Portfolio has turned in drop in the fourth quarter.
results as follows:
In 1996, we will continue to pursue our strategy
of finding stocks that are undervalued but
starting to show earnings momentum. As a result,
<CAPTION> we expect the Panorama Growth Portfolio to
3 YEARS 5 YEARS 10 YEARS continue to produce healthy returns for investors
------- ------- --------- over time.
<S> <C> <C> <C> The Growth Portfolio has performed admirably since
Panorama........... 39.37% 94.92% 204.54% its inception, turning in a 147.59 percent return
Avg. Bal. Fund..... 29.61% 69.49% 161.98% for the three years ended December 31, 1995 --
compared with a 110.03 percent return for the
category average, according to Morningstar.
FISCAL TOTAL
PERIOD RETURN CPI ML S&P
- ------ ------ ------- ------- ------- FISCAL
12/31/85 $10,000 $10,000 $10,000 $10,000 PERIOD GROWTH CPI S&P
12/31/86 11,258 10,119 11,563 11,847 ------ ------ ------- -------
12/31/87 11,738 10,566 11,806 12,467 12/31/85 $10,000 $10,000 $10,000
12/31/88 13,104 11,032 12,717 14,562 12/31/86 11,158 10,119 11,847
12/31/89 16,115 11,543 14,514 19,148 12/31/87 11,186 10,566 12,467
12/31/90 16,196 12,265 15,747 18,541 12/31/88 12,803 11,032 14,562
12/31/91 20,858 12,630 18,249 24,205 12/31/89 17,388 11,543 19,148
12/31/92 22,988 13,005 19,651 26,062 12/31/90 16,015 12,265 18,541
12/31/93 26,731 13,361 21,824 28,642 12/31/91 22,025 12,630 24,205
12/31/94 26,204 13,708 21,111 29,017 12/31/92 24,747 13,005 26,062
12/31/95 32,669 14,064 25,135 39,869 12/31/93 29,998 13,361 28,642
12/31/94 29,845 13,708 29,017
Comparative performance of $10,000 invested in the 12/31/95 41,205 14,064 39,869
Series Fund Total Return Portfolio, the Merrill
Lynch Government Corporate Master Index, the S&P
500 and the Consumer Price Index. The Merrill Comparative performance of $10,000 invested in the
Lynch Government Corporate Master Index represents Series Fund Growth Portfolio, the S&P 500 and the
an unmanaged group of bonds not adjusted for Consumer Price Index. The S&P 500 represents a
operating expenses. The S&P 500 represents a broad broad index of unmanaged securities not adjusted
index of unmanaged securities not adjusted for for expenses. If portfolio operating expenses had
expenses. If portfolio operating expenses had been been applied to the index, its ending value would
applied to these indices, their ending values have been lower. The Consumer Price Index is an
would have been lower. The Consumer Price Index is unmanaged index and represents price changes in a
an unmanaged index and represents price changes in broad market basket of consumer goods and is
a broad market basket of consumer goods and is indicative of the rate of inflation.
Past performance is not indicative of future
indicative of the rate of inflation. performance.
Past performance is not indicative of future
performance.
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The audited annual financial statements of Connecticut Mutual Financial
Services Series Fund I, Inc. are incorporated by reference to Form N-30D
(Accession Number 0000912057-96-006041) filed with the SEC on April 5, 1996.
