<PAGE> 1
=====================================
ANNUAL REPORT
TO CONTRACT OWNERS
DECEMBER 31, 1995
=====================================
Separate
Account A
------------------
America's Retirement Plan Specialist
[LOGO VALIC]
------------------------------------
* An American General Company
<PAGE> 2
================================================================================
CHAIRMAN'S LETTER SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
TO OUR PARTICIPANTS:
We are pleased to present the December 31, 1995 Annual Report to Contract
Owners for Separate Account A of the Variable Annuity Life Insurance Company. A
summary of the change in unit value for each fund and each product series
(Portfolio Director, Independence Plus, Group Unit Purchase and Impact) appears
on page two.
The economic climate in 1995 was positive for investors. Economic growth was
steady and inflation was well controlled. Gross Domestic Product increased
modestly in each of the three quarters that were reported and the same should
hold true for the fourth quarter. The full year GDP gain is estimated at 2.1%.
Monthly Consumer Price Index changes varied between 0.4% and zero. For the year
the CPI change is 2.5%.
In that environment the Federal Reserve Board was accommodative. From the 6%
level in February, Federal Funds were reduced by one quarter point in July and
a like amount in December. That was followed by another quarter point cut in
January. Those actions resulted in an interest rate decline of nearly 2% on the
U.S. Treasury long bond.
VALIC's domestic indexed funds provided returns ranging from 26% to 36%.
Managed domestic equity funds returned 23% to 60%. International funds earned
between 10% and 21%. Market and economic conditions were not as favorable
outside the U.S. as they were domestically.
The three bond funds gained 16% to 20%, benefitting from the decline in
interest rates.
In the Lipper Analytical rankings, all but three of VALIC's funds were in the
top half of the funds with similar objectives. Of the thirteen funds in the top
half, seven were in the top quartile.
In the Morningstar rankings, ten of VALIC's funds were in the top half and of
those six were in the top quartile.
If you have any questions about your contract or this report, we would be happy
to hear from you.
Respectfully,
/s/ STEPHEN D. BICKEL
Stephen D. Bickel, Chairman and CEO
The Variable Annuity Life Insurance Company
January 26, 1996
This report is not authorized for distribution as advertising or sales
literature. This report is published exclusively for the information of the
variable annuity contract owners of the Company in accordance with section 30
(d) of the Investment Company Act of 1940.
1
<PAGE> 3
================================================================================
CHAIRMAN'S LETTER - CONTINUED SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
UNIT VALUE RETURNS
(Unaudited)
<TABLE>
<CAPTION>
ONE YEAR TOTAL RETURNS FOR THE
PORTFOLIO INDEPENDENCE GROUP UNIT YEAR ENDING DECEMBER 31,
DIRECTOR PLUS IMPACT PURCHASE ------------------------------
DIVISION DIVISION DIVISION DIVISION 1995 1994
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INDEXED FUNDS
Stock Index Fund . . . . . . . . . . 10C 10C 10D 10A, 10B 35.95% (0.30) %
MidCap Index Fund . . . . . . . . . . 4 4 4 N/A 29.24 (4.70)
Small Cap Index Fund . . . . . . . . . 14 14 N/A N/A 26.39 (4.30)
International Equities Fund . . . . . 11 11 N/A N/A 9.67 6.90
MANAGED FUNDS
Growth Fund . . . . . . . . . . . . . 15 N/A N/A N/A 46.40 0.18 (1)
Growth & Income Fund . . . . . . . . . 16 N/A N/A N/A 30.55 (0.68)(1)
Science & Technology Fund . . . . . . 17 N/A N/A N/A 60.07 24.77 (1)
Social Awareness Fund . . . . . . . . 12 12 N/A N/A 37.57 (2.42)
Timed Opportunity Fund . . . . . . . . 5 5 5 N/A 23.55 (2.29)
Capital Conservation Fund . . . . . . 7 7 1 N/A 19.58 (7.04)
Government Securities Fund . . . . . . 8 8 N/A N/A 16.31 (5.44)
International Government Bond Fund . . 13 13 N/A N/A 17.63 3.42
Money Market Fund . . . . . . . . . . 6 6 2 N/A 4.51 2.77
Dreyfus Small Cap Fund . . . . . . . . 18 N/A N/A N/A 27.78 6.33
Templeton Asset Allocation Fund . . . 19 N/A N/A N/A 21.02 (4.24)
Templeton International Fund . . . . . 20 N/A N/A N/A 14.34 (3.49)
</TABLE>
(1) Since April 29, 1994, inception of the Fund.
VARIABLE ACCOUNT PERFORMANCE
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
LIPPER ANALYTICAL
SERVICES, INC. MORNINGSTAR, INC.
-------------------------------- ----------------------------
UNIT RANKING RANKING
VALUE --------------------- AVERAGE ------------------- AVERAGE
RETURN POSITION PERCENTILE RETURN POSITION PERCENTILE RETURN
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Stock Index Fund . . . . . . . . . . . . 35.95% 6/48 88% 35.31 18/267 93% 31.77
MidCap Index Fund . . . . . . . . . . . . 29.24 17/31 45 32.67 272/409 33 31.10
Small Cap Index Fund . . . . . . . . . . 26.39 34/55 38 28.20 123/155 21 30.74
International Equities Fund . . . . . . . 9.67 64/133 52 9.60 126/248 49 10.38
Growth Fund . . . . . . . . . . . . . . . 46.40 3/226 99 30.51 4/409 99 31.10
Growth & Income Fund . . . . . . . . . . 30.55 68/139 51 31.16 177/267 34 31.77
Science & Technology Fund . . . . . . . . 60.07 1/17 100 31.04 1/63 100 20.68
Social Awareness Fund . . . . . . . . . . 37.57 3/17 82 31.04 5/267 98 31.77
Timed Opportunity Fund . . . . . . . . . 23.55 65/184 65 21.58 116/322 64 22.17
Capital Conservation Fund . . . . . . . . 19.58 7/82 91 17.37 33/239 86 16.44
Government Securities Fund . . . . . . . 16.31 27/60 55 15.47 43/113 62 15.83
International Government Bond Fund . . . 17.63 7/46 85 12.87 17/62 73 14.15
Money Market Fund . . . . . . . . . . . . 4.51 65/227 71 4.35 63/219 71 4.34
Dreyfus Small Cap Fund . . . . . . . . . 27.78 29/55 47 28.20 111/155 28 30.74
Templeton Asset Allocation Fund . . . . . 21.02 7/14 50 18.62 193/322 40 22.17
Templeton International Fund . . . . . . 14.34 13/133 90 9.60 48/248 81 10.38
</TABLE>
Sources: Morningstar Variable Annuity/Life Performance Report, January
1996 Lipper Variable Insurance Products Performance Analysis
Service, December 1995
The Portfolio Director rankings shown in this publication indicate the total
return rankings of Separate Account A's divisions compared to Morningstar and
Lipper categories for the twelve month period ending 12/31/95. The total
returns and rankings displayed show value after all management, administration
fees and fund expenses and do not include potential sales charges or
maintenance fees, if applicable. For total return information over a longer
period, see the Portfolio Director prospectus. The performance shown represents
past performance. The principal value of an investment will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Past performance does not guarantee future returns.
2
<PAGE> 4
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FINANCIAL STATEMENTS SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
December 31, 1995
<TABLE>
<CAPTION>
ASSETS: ALL DIVISIONS
-----------------
<S> <C>
Total investment in shares of mutual funds, at market (cost $3,569,502,230) . . $ 4,265,526,052
Balance due from VALIC general account . . . . . . . . . . . . . . . . . . . . 5,104,219
-----------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,270,630,271
=================
CONTRACT OWNER RESERVES:
Reserves for redeemable annuity contracts
(Net of applicable contract loans - partial withdrawals
with right of reinvestment) . . . . . . . . . . . . . . . . . . . . . . . . $ 4,258,190,663
Reserves for annuity contracts on benefit . . . . . . . . . . . . . . . . . . . 12,439,608
-----------------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,270,630,271
-----------------
STATEMENT OF OPERATIONS
For the year ended December 31, 1995
<CAPTION>
INVESTMENT INCOME: ALL DIVISIONS
-----------------
<S> <C>
Dividends from mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,067,158
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,346,212
Expense risk charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,529,006
-----------------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,875,218
-----------------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,191,940
-----------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . 54,777,042
Capital gains distributions from mutual funds . . . . . . . . . . . . . . . . . 110,007,833
Net unrealized appreciation of investments during the year . . . . . . . . . . 640,017,922
-----------------
Net realized and unrealized gain on investments . . . . . . . . . . . . . . . 804,802,797
-----------------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . . . . . . . . . . . . . . . $ 838,994,737
-----------------
</TABLE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS ALL DIVISIONS
For the year ended December 31: -----------------------------------
1995 1994
-----------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 34,191,940 $ 32,581,603
Net realized gain on investments . . . . . . . . . . . . . . . . . . . . . . . 54,777,042 14,131,361
Capital gains distributions from mutual funds . . . . . . . . . . . . . . . . . 110,007,833 25,307,836
Net unrealized appreciation (depreciation) of investments during the year . . . 640,017,922 (95,069,796)
-----------------------------------
Increase (decrease) in net assets resulting from operations . . . . . . . . . 838,994,737 (23,048,996)
-----------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 820,355,349 581,037,348
Surrenders of accumulation units by terminations, withdrawals,
and maintenance fees . . . . . . . . . . . . . . . . . . . . . . . . . . . (114,759,722) (96,084,797)
Annuity benefit payments . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,588,610) (1,371,515)
Amounts transferred from VALIC general account . . . . . . . . . . . . . . . . 220,818,448 155,830,645
-----------------------------------
Increase in net assets resulting from principal transactions . . . . . . . . . 924,825,465 639,411,681
-----------------------------------
TOTAL INCREASE IN NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 1,763,820,202 616,362,685
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,506,810,069 1,890,447,384
-----------------------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,270,630,271 2,506,810,069
-----------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE> 5
================================================================================
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF NET ASSETS
December 31, 1995
<TABLE>
<CAPTION>
STOCK INDEX FUND
--------------------------------------------------------
DIVISION 10A DIVISION 10B DIVISION 10C DIVISION 10D
------------ ------------ --------------- ------------
<S> <C> <C> <C> <C>
Assets:
Investment in shares of mutual funds, at market . . . . . . . $341,205,299 $28,301,222 $1,066,560,864 $41,200,277
Balance due (to) from VALIC general account . . . . . . . . . (36,122) (7,529) 822,847 4,929
------------ ------------ --------------- ------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . $341,169,177 $28,293,693 $1,067,383,711 $41,205,206
------------ ------------ --------------- ------------
Contract Owner Reserves:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with
right of reinvestment) . . . . . . . . . . . . . . . . . $331,057,207 $26,875,071 $1,067,072,765 $41,076,367
Reserves for annuity contracts on benefit . . . . . . . . . . 10,111,970 1,418,622 310,946 128,839
------------ ------------ --------------- ------------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . . $341,169,177 $28,293,693 $1,067,383,711 $41,205,206
------------ ------------ --------------- ------------
</TABLE>
STATEMENTS OF NET ASSETS
December 31, 1995
<TABLE>
<CAPTION>
SOCIAL TIMED
AWARENESS OPPORTUNITY CAPITAL CONSERVATION FUND
FUND FUND --------------------------
DIVISION 12 DIVISION 5 DIVISION 1 DIVISION 7
----------- ------------ ----------- ------------
<S> <C> <C> <C> <C>
Assets:
Investment in shares of mutual funds, at market . . . . . . . $59,966,151 $182,869,410 $ 7,770,858 $53,368,978
Balance due (to) from VALIC general account . . . . . . . . . 133,659 84,295 12,591 219,088
----------- ------------ ----------- ------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . $60,099,810 $182,953,705 $ 7,783,449 $53,588,066
----------- ------------ ----------- ------------
Contract Owner Reserves:
Reserves for redeemable annuity contracts (Net of applicable
contract loans - partial withdrawals with
right of reinvestment) . . . . . . . . . . . . . . . . . $60,099,810 $182,879,468 $ 7,778,840 $ 53,588,066
Reserves for annuity contracts on benefit . . . . . . . . . -- 74,237 4,609 --
----------- ------------ ----------- ------------
TOTAL CONTRACT OWNER RESERVES . . . . . . . . . . . . . . . $60,099,810 $182,953,705 $ 7,783,449 $ 53,588,066
----------- ------------ ----------- ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE> 6
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MIDCAP SMALL CAP INTERNATIONAL GROWTH & SCIENCE &
INDEX INDEX EQUITIES GROWTH INCOME TECHNOLOGY
FUND FUND FUND FUND FUND FUND
DIVISION 4 DIVISION 14 DIVISION 11 DIVISION 15 DIVISION 16 DIVISION 17
------------ ------------ ------------- ------------ ----------- ------------
<S> <C> <C> <C> <C> <C>
$480,090,535 $152,407,245 $199,139,104 $240,566,401 $66,881,957 $374,148,985
316,741 (416,173) 548,336 577,364 253,619 1,064,371
------------ ------------ ------------ ------------ ----------- ------------
$480,407,276 $151,991,072 $199,687,440 $241,143,765 $67,135,576 $375,213,356
------------ ------------ ------------ ------------ ----------- ------------
$480,328,146 $151,918,885 $199,562,349 $241,143,765 $67,135,576 $375,193,754
79,130 72,187 125,091 -- -- 19,602
------------ ------------ ------------ ------------ ----------- ------------
$480,407,276 $151,991,072 $199,687,440 $241,143,765 $67,135,576 $375,213,356
------------ ------------ ------------ ------------ ----------- ------------
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT INTERNATIONAL DREYFUS TEMPLETON TEMPLETON
SECURITIES GOVERNMENT MONEY MARKET FUND SMALL CAP ASSET INTERNATIONAL
FUND BOND FUND --------------------------- FUND ALLOCATION FUND FUND
DIVISION 8 DIVISION 13 DIVISION 2 DIVISION 6 DIVISION 18 DIVISION 19 DIVISION 20
------------ ------------ ---------- ------------ ------------ --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
$71,615,518 $112,179,184 $6,379,563 $80,556,398 $356,075,243 $94,348,477 $249,894,383
88,257 132,996 11,459 (299,003) 828,651 276,875 486,968
------------ ------------ ---------- ----------- ------------ ----------- ------------
$71,703,775 $112,312,180 $6,391,022 $80,257,395 $356,903,894 $94,625,352 $250,381,351
------------ ------------ ---------- ----------- ------------ ----------- ------------
$71,703,775 $112,312,180 $6,391,022 $80,239,114 $356,865,344 $94,600,086 $250,369,073
-- -- -- 18,281 38,550 25,266 12,278
------------ ------------ ---------- ----------- ------------ ----------- ------------
$71,703,775 $112,312,180 $6,391,022 $80,257,395 $356,903,894 $94,625,352 $250,381,351
------------ ------------ ---------- ----------- ------------ ----------- ------------
</TABLE>
5
<PAGE> 7
================================================================================
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
For the year ended December 31, 1995
<TABLE>
<CAPTION>
STOCK INDEX FUND
--------------------------------------------------------------
DIVISION 10A DIVISION 10B DIVISION 10C DIVISION 10D
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends from mutual funds . . . . . . . . . . . . $6,876,645 $578,463 $19,463,430 $868,192
----------- ---------- ------------ -----------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 2,492,730 74,835 7,012,079 367,749
Expense risk charge . . . . . . . . . . . . . . . . 623,182 10,205 1,753,020 27,680
----------- ---------- ------------ -----------
Total expenses . . . . . . . . . . . . . . . . 3,115,912 85,040 8,765,099 395,429
----------- ---------- ------------ -----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . 3,760,733 493,423 10,698,331 472,763
----------- ---------- ------------ -----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . 5,349,737 631,222 10,775,457 1,335,894
Capital gains distributions from mutual funds . . . 6,875,040 570,166 21,483,819 831,333
Net unrealized appreciation (depreciation)
of investments during the period . . . . . . . 78,996,842 6,528,773 221,238,425 9,456,579
----------- ---------- ------------ -----------
Net realized and unrealized gain on investments . . 91,221,619 7,730,161 253,497,701 11,623,806
----------- ---------- ------------ -----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . $94,982,352 $8,223,584 $264,196,032 $12,096,569
----------- ---------- ------------ -----------
</TABLE>
STATEMENTS OF OPERATIONS
For the year ended December 31, 1995
<TABLE>
<CAPTION>
SOCIAL TIMED
AWARENESS OPPORTUNITY CAPITAL CONSERVATION FUND
FUND FUND --------------------------
DIVISION 12 DIVISION 5 DIVISION 1 DIVISION 7
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends from mutual funds . . . . . . . . . . . . $1,076,551 $7,221,681 $528,894 $3,067,082
----------- ----------- --------- ----------
EXPENSES:
Mortality risk charge . . . . . . . . . . . . . . . 381,303 1,438,653 74,198 367,628
Expense risk charge . . . . . . . . . . . . . . . . 95,326 330,908 5,585 91,907
----------- ----------- --------- ----------
Total expenses . . . . . . . . . . . . . . . . 476,629 1,769,561 79,783 459,535
----------- ----------- --------- ----------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . 599,922 5,452,120 449,111 2,607,547
----------- ----------- --------- ----------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments . . . . . . 371,169 2,006,917 65,122 (138,616)
Capital gains distributions from mutual funds . . . 3,609,468 3,186,462 -- --
Net unrealized appreciation of investments
during the period . . . . . . . . . . . . . . . 10,227,915 26,710,438 906,759 5,643,853
----------- ----------- --------- ----------
Net realized and unrealized gain on investments . . 14,208,552 31,903,817 971,881 5,505,237
----------- ----------- --------- ----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS . $14,808,474 $37,355,937 $1,420,992 $8,112,784
----------- ----------- --------- ----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE> 8
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MIDCAP SMALL CAP INTERNATIONAL GROWTH & SCIENCE &
INDEX INDEX EQUITIES GROWTH INCOME TECHNOLOGY
FUND FUND FUND FUND FUND FUND
DIVISION 4 DIVISION 14 DIVISION 11 DIVISION 15 DIVISION 16 DIVISION 17
------------ ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
$ 6,653,173 $ 1,907,029 $ 3,271,083 $ 309,137 $ 301,811 $ 608,070
------------ ----------- ----------- ----------- ---------- -----------
3,436,876 1,074,988 1,572,989 942,972 301,789 1,632,154
824,595 268,747 393,247 235,743 75,447 408,038
------------ ----------- ----------- ----------- ---------- -----------
4,261,471 1,343,735 1,966,236 1,178,715 377,236 2,040,192
------------ ----------- ----------- ----------- ---------- -----------
2,391,702 563,294 1,304,847 (869,578) (75,425) (1,432,122)
------------ ----------- ----------- ----------- ---------- -----------
10,603,188 2,963,270 13,215,875 8,587 19,953 6,545,968
17,377,938 2,945,819 4,363,325 3,650,399 472,785 37,380,606
76,322,743 24,766,420 (725,229) 39,103,633 8,794,032 41,310,631
------------ ----------- ----------- ----------- ---------- -----------
104,303,869 30,675,509 16,853,971 42,762,619 9,286,770 85,237,205
------------ ----------- ----------- ----------- ---------- -----------
$106,695,571 $31,238,803 $18,158,818 $41,893,041 $9,211,345 $83,805,083
------------ ----------- ----------- ----------- ---------- -----------
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT INTERNATIONAL DREYFUS TEMPLETON TEMPLETON
SECURITIES GOVERNMENT MONEY MARKET FUND SMALL CAP ASSET INTERNATIONAL
FUND BOND FUND -------------------------- FUND ALLOCATION FUND FUND
DIVISION 8 DIVISION 13 DIVISION 2 DIVISION 6 DIVISION 18 DIVISION 19 DIVISION 20
---------- ------------- ---------- ---------- ----------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
$3,526,257 $4,148,671 $376,138 $4,020,847 $ 1,283,472 $ 1,162,767 $ 817,765
---------- ---------- -------- ---------- ----------- ----------- -----------
435,010 551,505 64,741 594,817 1,743,882 513,382 1,271,932
108,752 137,876 4,873 148,704 980,933 288,777 715,461
---------- ---------- -------- ---------- ----------- ----------- -----------
543,762 689,381 69,614 743,521 2,724,815 802,159 1,987,393
---------- ---------- -------- ---------- ----------- ----------- -----------
2,982,495 3,459,290 306,524 3,277,326 (1,441,343) 360,608 (1,169,628)
---------- ---------- -------- ---------- ----------- ----------- -----------
(28,711) 911,852 -- -- 26,776 87,754 25,628
-- 114,019 -- -- 6,796,184 -- 350,470
5,103,399 3,111,995 -- -- 47,179,100 11,935,576 23,406,038
---------- ---------- -------- ---------- ----------- ----------- -----------
5,074,688 4,137,866 -- -- 54,002,060 12,023,330 23,782,136
---------- ---------- -------- ---------- ----------- ----------- -----------
$8,057,183 $7,597,156 $306,524 $3,277,326 $52,560,717 $12,383,938 $22,612,508
---------- ---------- -------- ---------- ----------- ----------- -----------
</TABLE>
7
<PAGE> 9
================================================================================
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31:
<TABLE>
<CAPTION>
STOCK INDEX FUND
------------------------------------------------------------------
DIVISION 10A DIVISION 10B
------------------------------ -----------------------------
1995 1994 1995 1994
------------------------------ -----------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . $ 3,760,733 $ 4,490,176 $ 493,423 $ 541,395
Net realized gain (loss) on investments . . . . . . 5,349,737 (266,345) 631,222 (16,715)
Capital gains distributions from mutual funds . . . 6,875,040 638,819 570,166 54,939
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . 78,996,842 (5,896,939) 6,528,773 (495,564)
------------------------------ -----------------------------
Increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . 94,982,352 (1,034,289) 8,223,584 84,055
------------------------------ -----------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . 5,033,111 5,464,415 574,384 720,902
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . (16,541,542) (20,019,026) (1,698,590) (1,706,119)
Annuity benefit payments . . . . . . . . . . . . . (1,296,973) (1,114,443) (218,489) (205,698)
Amounts transferred (to) from VALIC general account (23,599,151) (6,986,742) (2,885,564) (256,628)
------------------------------ -----------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . (36,404,555) (22,655,796) (4,228,259) (1,447,543)
------------------------------ -----------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . 58,577,797 (23,690,085) 3,995,325 (1,363,488)
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . 282,591,380 306,281,465 24,298,368 25,661,856
------------------------------ -----------------------------
End of year . . . . . . . . . . . . . . . . . . . . $341,169,177 $282,591,380 $28,293,693 $24,298,368
------------------------------ -----------------------------
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of year . . . . . . . 33,814,520 36,512,399 1,836,094 1,937,835
Purchase payments . . . . . . . . . . . . . . . . . 497,922 678,364 39,513 57,856
Surrenders . . . . . . . . . . . . . . . . . . . . (1,718,657) (2,487,947) (110,735) (138,745)
Transfers - interdivision and (to) from VALIC
general account . . . . . . . . . . . . . . . . (2,598,422) (888,296) (204,347) (20,852)
------------------------------ -----------------------------
Accumulation units end of year . . . . . . . . . . 29,995,363 33,814,520 1,560,525 1,836,094
------------------------------ -----------------------------
DECEMBER 31: DECEMBER 31:
------------------------------ -----------------------------
1995 1994 1995 1994
------------------------------ -----------------------------
Accumulation unit value . . . . . . . . . . . . . . $ 11.036946 $ 8.116786 $ 17.221812 $ 12.582568
------------------------------ -----------------------------
Annuity unit value assuming a 3.5% discount factor $ 3.298369 $ 2.510493 $ 4.376632 $ 3.309445
------------------------------ -----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE> 10
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STOCK INDEX FUND MIDCAP INDEX FUND SMALL CAP INDEX FUND
- ------------------------------------------------------------- ---------------------------- ---------------------------
DIVISION 10C DIVISION 10D DIVISION 4 DIVISION 14
- ------------------------------ --------------------------- ---------------------------- ---------------------------
1995 1994 1995 1994 1995 1994 1995 1994
- ------------------------------ --------------------------- ---------------------------- ---------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ 10,698,331 $ 10,610,432 $ 472,763 $ 605,767 $ 2,391,702 $ 2,515,091 $ 563,294 $ 341,917
10,775,457 4,405,234 1,335,894 49,938 10,603,188 2,119,902 2,963,270 1,086,972
21,483,819 1,624,189 831,333 84,388 17,377,938 11,552,151 2,945,819 -
221,238,425 (17,763,623) 9,456,579 (896,531) 76,322,743 (32,449,763) 24,766,420 (5,860,073)
- ------------------------------ --------------------------- ---------------------------- ---------------------------
264,196,032 (1,123,768) 12,096,569 (156,438) 106,695,571 (16,262,619) 31,238,803 (4,431,184)
- ------------------------------ --------------------------- ---------------------------- ---------------------------
155,833,642 173,237,158 1,280,197 1,678,616 87,946,264 124,009,106 40,608,391 60,678,232
(30,060,583) (26,626,162) (2,417,823) (2,632,793) (15,264,152) (14,276,915) (4,632,557) (3,630,894)
(29,665) (23,752) (5,520) (3,736) (16,844) (14,576) (3,022) -
(42,300,802) (65,001,259) (7,115,532) (4,630,624) (69,269,652) (27,422,005) (38,506,364) (1,057,342)
- ------------------------------ --------------------------- ---------------------------- ---------------------------
83,442,592 81,585,985 (8,258,678) (5,588,537) 3,395,616 82,295,610 (2,533,552) 55,989,996
- ------------------------------ --------------------------- ---------------------------- ---------------------------
347,638,624 80,462,217 3,837,891 (5,744,975) 110,091,187 66,032,991 28,705,251 51,558,812
719,745,087 639,282,870 37,367,315 43,112,290 370,316,089 304,283,098 123,285,821 71,727,009
- ------------------------------ --------------------------- ---------------------------- ---------------------------
$1,067,383,711 $719,745,087 $41,205,206 $37,367,315 $480,407,276 $370,316,089 $151,991,072 $123,285,821
- ------------------------------ --------------------------- ---------------------------- ---------------------------
416,234,288 369,550,060 12,207,684 14,043,516 171,442,018 134,621,879 100,383,839 56,159,647
76,950,994 99,449,095 341,405 551,269 35,874,09 455,929,821 30,141,511 48,518,804
(14,254,441) (14,897,712) (663,263) (863,807) (5,995,776) (6,365,496) (3,356,851) (2,868,199)
(23,675,598) (37,867,155) (1,999,953) (1,523,294) (28,706,646) (12,744,186) (28,832,504) (1,426,413)
- ------------------------------ --------------------------- ---------------------------- ---------------------------
455,255,243 416,234,288 9,885,873 12,207,684 172,613,690 171,442,018 98,335,995 100,383,839
- ------------------------------ --------------------------- ---------------------------- ---------------------------
DECEMBER 31: DECEMBER 31: DECEMBER 31: DECEMBER 31:
- ------------------------------ --------------------------- ---------------------------- ---------------------------
1995 1994 1995 1994 1995 1994 1995 1994
- ------------------------------ --------------------------- ---------------------------- ---------------------------
$ 2.343900 $ 1.724134 $ 4.155057 $ 3.056808 $ 2.782677 $ 2.153183 $ 1.544896 $ 1.222329
- ------------------------------ --------------------------- ---------------------------- ---------------------------
$ 1.776053 $ 1.352112 $ 2.582770 $ 1.966534 $ 1.799452 $ 1.441063 $ 1.361960 $ 1.115264
- ------------------------------ --------------------------- ---------------------------- ---------------------------
</TABLE>
9
<PAGE> 11
================================================================================
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31:
<TABLE>
<CAPTION>
INTERNATIONAL EQUITIES
FUND GROWTH FUND
------------------------------ ------------------------------
DIVISION 11 DIVISION 15
------------------------------ ------------------------------
1995 1994 1995 1994*
------------ ----------- ------------- ---------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . $ 1,304,847 $ 586,461 $ (869,578) $ (3,344)
Net realized gain (loss) on investments . . . . . . 13,215,875 4,189,593 8,587 2
Capital gains distributions from mutual funds . . . 4,363,325 1,224,134 3,650,399 -
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . (725,229) 1,953,569 39,103,633 330,403
------------ ----------- ------------- ---------
Increase (decrease) in net assets resulting from
operations . . . . . . . . . . . . . . . . 18,158,818 7,953,757 41,893,041 327,061
------------ ----------- ------------- ---------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . 52,726,233 70,132,976 58,223,803 4,547,841
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . (6,722,321) (6,159,144) (1,776,523) (39,858)
Annuity benefit payments . . . . . . . . . . . . . (5,870) (2,449) -- --
Amounts transferred (to) from VALIC general account (63,364,477) 11,350,355 109,893,422 28,074,978
------------ ----------- ------------- ---------
Increase (decrease) in net assets
resulting from principal transactions . . . (17,366,435) 75,321,738 166,340,702 32,582,961
------------ ----------- ------------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . 792,383 83,275,495 208,233,743 32,910,022
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . 198,895,057 115,619,562 32,910,022 -
------------ ----------- ------------- ---------
End of year . . . . . . . . . . . . . . . . . . . . $199,687,440 $198,895,057 $241,143,765 $32,910,022
------------ ----------- ------------- ---------
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of year . . . . . . . 187,749,916 117,215,227 32,633,370 -
Purchase payments . . . . . . . . . . . . . . . . . 49,402,081 65,406,765 45,984,606 4,373,529
Surrenders . . . . . . . . . . . . . . . . . . . . (6,214,230) (5,718,100) (1,266,891) (40,064)
Transfers - interdivision and (to) from VALIC
general account . . . . . . . . . . . . . . . . . (58,373,749) 10,846,024 87,066,763 28,299,905
------------ ----------- ------------- ---------
Accumulation units end of year . . . . . . . . . . 172,564,018 187,749,916 164,417,848 32,633,370
------------ ----------- ------------- ---------
DECEMBER 31: DECEMBER 31:
1995 1994 1995 1994
------------ ----------- ------------- ---------
Accumulation unit value . . . . . . . . . . . . . . $ 1.156454 $ 1.054460 $ 1.466652 $1.001834
------------ ----------- ------------- ---------
Annuity unit value assuming a 3.5% discount factor $ 0.933003 $ 0.880460 $ 1.384532 $0.978806
------------ ----------- ------------- ---------
</TABLE>
* For the period from July 11, 1994 to December 31, 1994.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE> 12
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH & INCOME FUND SCIENCE & TECHNOLOGY FUND SOCIAL AWARENESS FUND
------------------------- -------------------------- --------------------------
DIVISION 16 DIVISION 17 DIVISION 12
------------------------- -------------------------- --------------------------
1995 1994* 1995 1994* 1995 1994
------------------------- -------------------------- --------------------------
<S> <C> <C> <C> <C> <C>
$ (75,425) $ 4,055 $ (1,432,122) $ (54,071) $ 599,922 $ 484,291
19,953 160 6,545,968 250,313 371,169 632,326
472,785 - 37,380,606 549,747 3,609,468 2,328,955
8,794,032 85,633 41,310,631 2,692,873 10,227,915 (4,358,741)
------------------------- -------------------------- --------------------------
9,211,345 89,848 83,805,083 3,438,862 14,808,474 (913,169)
------------------------- -------------------------- --------------------------
17,507,504 1,630,675 93,027,877 6,652,744 10,849,944 13,160,211
(641,935) (5,453) (3,055,711) (37,889) (1,516,923) (1,413,415)
-- -- (824) - -- --
28,680,150 10,663,442 147,758,969 43,624,245 (2,864,774) (7,867,172)
------------------------- -------------------------- --------------------------
45,545,719 12,288,664 237,730,311 50,239,100 6,468,247 3,879,624
-------------------------- -------------------------- --------------------------
54,757,064 12,378,512 321,535,394 53,677,962 21,276,721 2,966,455
12,378,512 - 53,677,962 - 38,823,089 35,856,634
-------------------------- -------------------------- --------------------------
$67,135,576 $12,378,512 $375,213,356 $53,677,962 $60,099,810 $38,823,089
-------------------------- -------------------------- --------------------------
12,386,602 - 42,726,137 - 29,015,764 26,230,566
14,980,745 1,583,044 54,428,033 5,315,122 6,860,477 9,604,919
(455,265) (5,487) (1,584,330) (32,041) (929,671) (983,733)
24,867,007 10,809,045 92,292,392 37,443,056 (2,196,450) (5,835,988)
-------------------------- -------------------------- --------------------------
51,779,089 12,386,602 187,862,232 42,726,137 32,750,120 29,015,764
-------------------------- -------------------------- --------------------------
DECEMBER 31: DECEMBER 31: DECEMBER 31:
------------------------ ------------------------ ------------------------
1995 1994 1995 1994 1995 1994
------------------------ ------------------------ ------------------------
$1.296577 $0.993168 $1.997175 $1.247713 $1.835102 $1.333899
------------------------ ------------------------ ------------------------
$1.223980 $0.970339 $1.885352 $1.219034 $1.480522 $1.113787
------------------------ ------------------------ ------------------------
</TABLE>
11
<PAGE> 13
================================================================================
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31:
<TABLE>
<CAPTION>
TIMED OPPORTUNITY CAPITAL CONSERVATION
FUND FUND
---------------------------- ----------------------------
DIVISION 5 DIVISION 1
---------------------------- ----------------------------
1995 1994 1995 1994*
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . $5,452,120 $4,810,838 $449,111 $517,106
Net realized gain (loss) on investments . . . . . . 2,006,917 735,641 65,122 32,250
Capital gains distributions from mutual funds . . . 3,186,462 6,863,526 -- --
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . 26,710,438 (16,833,221) 906,759 (1,254,436)
---------------------------- ----------------------------
Increase (decrease) in net assets resulting from
operations . . . . . . . . . . . . . . . . 37,355,937 (4,423,216) 1,420,992 (705,080)
---------------------------- ----------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . 20,940,181 36,297,892 286,600 494,060
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . (7,824,702) (8,285,289) (623,792) (1,098,891)
Annuity benefit payments . . . . . . . . . . . . . (6,591) (4,816) (499) (478)
Amounts transferred (to) from VALIC general account (42,300,580) (36,353,014) (1,306,120) (1,152,049)
---------------------------- ----------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . (29,191,692) (8,345,227) (1,643,811) (1,757,358)
---------------------------- ----------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . 8,164,245 (12,768,443) (222,819) (2,462,438)
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . 174,789,460 187,557,903 8,006,268 10,468,706
---------------------------- ----------------------------
End of year . . . . . . . . . . . . . . . . . . . . $182,953,705 $174,789,460 $7,783,449 $8,006,268
---------------------------- ----------------------------
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of year . . . . . . . 89,377,860 93,899,802 2,953,861 3,590,916
Purchase payments . . . . . . . . . . . . . . . . . 9,806,864 18,196,642 96,297 145,757
Surrenders . . . . . . . . . . . . . . . . . . . . (3,569,040) (4,118,862) (207,008) (362,666)
Transfers - interdivision and (to) from VALIC
general account . . . . . . . . . . . . . . . . . (19,764,253) (18,599,722) (441,065) (420,146)
---------------------------- ----------------------------
Accumulation units end of year . . . . . . . . . . 75,851,431 89,377,860 2,402,085 2,953,861
---------------------------- ----------------------------
DECEMBER 31: DECEMBER 31:
--------------------------- ---------------------------
1995 1994 1995 1994
--------------------------- ---------------------------
Accumulation unit value . . . . . . . . . . . . . . $2.411022 $1.951533 $3.238370 $2.709029
---------------------------- ----------------------------
Annuity unit value assuming a 3.5% discount factor $1.581407 $1.324778 $1.843690 $1.596246
---------------------------- ----------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE> 14
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL CONSERVATION GOVERNMENT SECURITIES INTERNATIONAL GOVERNMENT
FUND FUND BOND FUND
-------------------------- ------------------------- ----------------------------
DIVISION 7 DIVISION 8 DIVISION 13
-------------------------- ------------------------- ----------------------------
1995 1994 1995 1994 1995 1994
-------------------------- ------------------------- ----------------------------
<S> <C> <C> <C> <C> <C>
$2,607,547 $ 2,360,212 $2,982,495 $2,030,237 $3,459,290 $1,361,407
(138,616) 350,094 (28,711) 316,682 911,852 245,193
-- -- -- -- 114,019 -
5,643,853 (5,791,380) 5,103,399 (4,822,548) 3,111,995 (642,360)
-------------------------- ------------------------- ----------------------------
8,112,784 (3,081,074) 8,057,183 (2,475,629) 7,597,156 964,240
-------------------------- ------------------------- ----------------------------
10,464,260 14,414,782 15,047,915 13,894,906 31,073,737 12,960,014
(1,972,220) (2,021,727) (1,987,445) (1,878,777) (1,946,252) (981,285)
-- -- -- -- -- --
(3,821,311) (8,653,752) 9,219,172 (11,636,951) 42,026,449 (2,227,507)
-------------------------- ------------------------- ----------------------------
4,670,729 3,739,303 22,279,642 379,178 71,153,934 9,751,222
-------------------------- ------------------------- ----------------------------
12,783,513 658,229 30,336,825 (2,096,451) 78,751,090 10,715,462
40,804,553 40,146,324 41,366,950 43,463,401 33,561,090 22,845,628
-------------------------- ------------------------- ----------------------------
$53,588,066 $ 40,804,553 $71,703,775 $41,366,950 $112,312,180 $33,561,090
-------------------------- ------------------------- ----------------------------
26,859,219 24,628,606 26,667,073 26,563,166 25,691,713 18,155,381
6,253,935 9,129,477 9,058,310 8,675,976 21,413,110 10,044,637
(1,058,493) (1,241,827) (1,149,951) (1,181,704) (1,286,336) (763,521)
(2,480,853) (5,657,037) 5,271,621 (7,390,365) 27,550,763 (1,744,784)
-------------------------- ------------------------- ----------------------------
29,573,808 26,859,219 39,847,053 26,667,073 73,369,250 25,691,713
-------------------------- ------------------------- ----------------------------
DECEMBER 31: DECEMBER 31: DECEMBER 31:
-------------------------- ------------------------- ----------------------------
1995 1994 1995 1994 1995 1994
-------------------------- ------------------------- ----------------------------
$1.812011 $1.515278 $1.799475 $1.547150 $1.530780 $1.301357
-------------------------- ------------------------- ----------------------------
$1.289558 $1.116084 $1.280634 $1.139558 $1.323493 $1.164474
-------------------------- ------------------------- ----------------------------
</TABLE>
13
<PAGE> 15
================================================================================
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31:
<TABLE>
<CAPTION>
MONEY MARKET FUND
--------------------------------------------------------------------
DIVISION 2 DIVISION 6
-------------------------------- ------------------------------
1995 1994 1995 1994
-------------------------------- ------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . $ 306,524 $ 211,175 $ 3,277,326 $ 1,241,669
Net realized gain (loss) on investments . . . . . . -- -- -- --
Capital gains distributions from mutual funds . . . -- -- -- --
Net unrealized appreciation (depreciation)
of investments during the year . . . . . . . . . -- -- -- --
-------------------------------- ------------------------------
Increase (decrease) in net assets resulting from
operations . . . . . . . . . . . . . . . . 306,524 211,175 3,277,326 1,241,669
-------------------------------- ------------------------------
PRINCIPAL TRANSACTIONS:
Purchase payments . . . . . . . . . . . . . . . . . 355,756 221,092 26,840,702 13,855,791
Surrenders of accumulation units by terminations,
withdrawals, and maintenance fees . . . . . . . (681,366) (663,266) (7,793,169) (4,406,881)
Annuity benefit payments . . . . . . . . . . . . . -- -- (1,574) (1,567)
Amounts transferred (to) from VALIC general account (806,250) (978,344) (54,484,648) 66,014,809
-------------------------------- ------------------------------
Increase (decrease) in net assets
resulting from principal transactions . . . (1,131,860) (1,420,518) (35,438,689) 75,462,152
-------------------------------- ------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS . . . . . . (825,336) (1,209,343) (32,161,363) 76,703,821
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . 7,216,358 8,425,701 112,418,758 35,714,937
-------------------------------- ------------------------------
End of year . . . . . . . . . . . . . . . . . . . . $6,391,022 $7,216,358 $80,257,395 $112,418,758
-------------------------------- ------------------------------
CHANGE IN UNITS OUTSTANDING:
Accumulation units beginning of year . . . . . . . 3,442,237 4,129,981 75,765,781 24,799,810
Purchase payments . . . . . . . . . . . . . . . . . 165,743 107,142 18,072,687 9,439,315
Surrenders . . . . . . . . . . . . . . . . . . . . (316,475) (314,181) (5,090,822) (3,026,130)
Transfers - interdivision and (to) from VALIC
general account . . . . . . . . . . . . . . . . . (374,144) (480,705) (36,839,889) 44,552,786
-------------------------------- ------------------------------
Accumulation units end of year . . . . . . . . . . 2,917,361 3,442,237 51,907,757 75,765,781
-------------------------------- ------------------------------
DECEMBER 31: DECEMBER 31:
--------------------------- ---------------------------
1995 1994 1995 1994
--------------------------- ---------------------------
Accumulation unit value . . . . . . . . . . . . . . $2.190686 $2.096416 $1.545802 $1.479129
--------------------------- ---------------------------
Annuity unit value assuming a 3.5% discount factor $1.392992 $1.379656 $1.088077 $1.077548
--------------------------- ---------------------------
</TABLE>
* For the period from July 11, 1994 to December 31, 1994.
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE> 16
================================================================================
SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TEMPLETON ASSET
DREYFUS SMALL CAP FUND ALLOCATIION FUND TEMPLETON INTERNATIONAL FUND
--------------------------- ------------------------ ---------------------------
DIVISION 18 DIVISION 19 DIVISION 20
--------------------------- ------------------------ ---------------------------
1995 1994* 1995 1994* 1995 1994*
--------------------------- ------------------------ ---------------------------
<S> <C> <C> <C> <C> <C>
$(1,441,343) $166,996 $ 360,608 $(75,725) $(1,169,628) $(164,482)
26,776 - 87,754 - 25,628 121
6,796,184 386,988 -- -- 350,470 -
47,179,100 (102,019) 11,935,576 (729,094) 23,406,038 (2,235,982)
--------------------------- ------------------------ ---------------------------
52,560,717 451,965 12,383,938 (804,819) 22,612,508 (2,400,343)
--------------------------- ------------------------ ---------------------------
96,201,687 12,217,697 26,412,918 4,656,678 69,120,243 10,111,560
(3,867,838) (111,066) (1,156,891) (47,985) (2,577,387) (41,962)
(915) - (1,361) - (463) -
122,606,635 76,845,012 24,133,475 29,049,399 89,125,401 64,431,794
--------------------------- ------------------------ ---------------------------
214,939,569 88,951,643 49,388,141 33,658,092 155,667,794 74,501,392
--------------------------- ------------------------ ---------------------------
267,500,286 89,403,608 61,772,079 32,853,273 178,280,302 72,101,049
89,403,608 - 32,853,273 - 72,101,049 -
--------------------------- ------------------------ ---------------------------
$356,903,894 $89,403,608 $94,625,352 $32,853,273 $250,381,351 $72,101,049
--------------------------- ------------------------ ---------------------------
85,169,871 - 32,807,602 - 71,716,511 -
80,950,706 11,303,726 24,212,805 4,421,687 65,697,216 9,484,235
(2,954,777) (107,113) (964,768) (48,133) (2,198,909) (41,499)
104,569,419 73,973,258 22,438,866 28,434,048 83,910,108 62,273,775
--------------------------- ------------------------ ---------------------------
267,735,219 85,169,871 78,494,505 32,807,602 219,124,926 71,716,511
--------------------------- ------------------------ ---------------------------
DECEMBER 31: DECEMBER 31: DECEMBER 31:
------------------------ ------------------------ ------------------------
1995 1994 1995 1994 1995 1994
------------------------ ------------------------ ------------------------
$1.332904 $1.043156 $1.205181 $0.995860 $1.142586 $0.999282
------------------------ ------------------------ ------------------------
$1.267071 $1.026303 $1.145656 $0.979771 $1.086152 $0.983138
------------------------ ------------------------ ------------------------
</TABLE>
15
<PAGE> 17
================================================================================
NOTES TO FINANCIAL STATEMENTS SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
NOTE A -- ORGANIZATION
Separate Account A (the "Separate Account"), established by The
Variable Annuity Life Insurance Company ("VALIC") on April 18, 1979, is
registered under the Investment Company Act of 1940 as a unit investment trust.
The Separate Account is comprised of twenty-one subaccounts or "divisions."
Each division, which represents a variable investment vehicle available only
through a VALIC annuity contract, invests in one of the following mutual funds:
AMERICAN GENERAL SERIES PORTFOLIO COMPANY ("AGSPC"):
Stock Index Fund (Divisions 10A, B, C, and D),
MidCap Index Fund (Division 4),
Small Cap Index Fund (Division 14),
International Equities Fund (Division 11),
Growth Fund (Division 15),
Growth & Income Fund (Division 16),
Science & Technology Fund (Division 17),
Social Awareness Fund (Division 12),
Timed Opportunity Fund (Division 5),
Capital Conservation Fund (Divisions 1 and 7),
Government Securities Fund (Division 8),
International Government Bond Fund (Division 13), and
Money Market Fund (Divisions 2 and 6).
DREYFUS VARIABLE INVESTMENT FUND:
Dreyfus Small Cap Portfolio (Division 18)
TEMPLETON VARIABLE PRODUCTS SERIES FUND:
Templeton Asset Allocation Fund (Division 19)
Templeton International Fund (Division 20)
Divisions 15, 16, 17, 18, 19, and 20 commenced operations on
July 11, 1994.
NOTE B -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The assets of the Separate Account are segregated from VALIC's other
assets. The operations of the Separate Account are part of VALIC. The following
is a summary of significant accounting policies consistently followed by the
Separate Account in the preparation of its financial statements.
INVESTMENT VALUATION. Investments in mutual funds (the "Funds") are
valued at the net asset (market) value per share at the close of each business
day.
INVESTMENT TRANSACTIONS. Investment transactions are accounted for on
the trade date. Realized gains and losses on investments are determined on the
basis of identified cost. Capital gain distributions from mutual funds are
recorded on the ex-dividend date and reinvested upon receipt.
INVESTMENT INCOME. Dividend income from mutual funds is recorded on
the ex-dividend date and reinvested upon receipt.
ANNUITY RESERVES. Net payments made by variable annuity contract
owners are accumulated based on the performance of the investments of the
Separate Account until the date the contract owners select to commence annuity
payments. Reserves for annuities on which benefits are currently payable are
provided for based upon estimated mortality and other assumptions, including
provisions for the risk of adverse deviation from assumptions, which were
appropriate at the time the contracts were issued. The 1949 Progressive Annuity
Table has been used in the computation of annuity reserves for currently
payable contracts. Participants are able to elect investment rates between 3.0%
and 6.0%, as regulated by the applicable state laws.
NOTE C -- TRANSACTIONS WITH AFFILIATES
VALIC acts as investment adviser and transfer agent to AGSPC.
The Separate Account is charged for mortality and expense risks
assumed by VALIC. The charge, based on the daily net assets of each division,
is assessed daily based on the following annual rates: for Division 10B, .85%
on the first $10,000,000, .425% on the next $90,000,000, and .21% on the excess
over $100,000,000; for Divisions 1, 2, 4, 5, 6, 7, 8, 10A, 10C, 10D, 11, 12,
13, 14, 15, 16, and 17, 1.00%; and for Divisions 18, 19, and 20, 1.25%.
Pursuant to the reorganization agreement entered into on April 17,
1987, which transferred VALIC Separate Accounts One and Two into the Separate
Account, expenses of Division 10A (formerly Separate Account One) are limited
to 1.4157% of average daily net assets, and expenses of Division 10B (formerly
Separate Account Two) are limited to the following rates based on average daily
net assets: 0.6966% on the first $25,434,267 and 0.5% on the next $74,565,733.
Accordingly, during the years ended December 31, 1995 and 1994, VALIC reduced
expenses of Division 10B by $69,586 and $67,955, respectively.
A portion of the annual contract maintenance charge is assessed each
contract (except those relating to Divisions 10A and 10B) by VALIC on the last
day of the calendar quarter in which VALIC receives the first purchase payment,
and in quarterly installments thereafter during the accumulation period.
Maintenance charges assessed totaled $2,494,903 and $1,857,628 for the years
ended December 31, 1995, and December 31, 1994, respectively.
VALIC received surrender charges of $1,299,069 and $1,233,026 for the
years ended December 31, 1995, and December 31, 1994, respectively. In
addition, VALIC received $100,290 and $18,404 for the year ended December 31,
1995, in sales load on variable annuity purchase payments for Divisions 10A and
10B, respectively. VALIC received $124,462 and $22,329 for the year ended
December 31, 1994, in sales load on variable annuity purchase payments for
Divisions 10A and 10B, respectively.
16
<PAGE> 18
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NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
NOTE D -- INVESTMENTS
The cost of fund shares is the same for financial reporting and
federal income tax purposes. The following is a summary of fund shares owned as
of December 31, 1995:
<TABLE>
<CAPTION>
MARKET UNREALIZED
UNDERLYING FUND DIVISION SHARES PRICE MARKET COST APPRECIATION
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Stock Index Fund . . . . . . . . . . 10A,B,C,D 77,628,358 $19.03 $1,477,267,662 $1,105,508,457 $371,759,205
MidCap Index Fund . . . . . . . . . . 4 27,734,866 17.31 480,090,535 397,011,660 83,078,875
Small Cap Index Fund . . . . . . . . 14 10,710,277 14.23 152,407,245 129,522,422 22,884,823
International Equities Fund . . . . . 11 18,628,541 10.69 199,139,104 187,888,444 11,250,660
Growth Fund . . . . . . . . . . . . . 15 16,488,444 14.59 240,566,401 201,132,365 39,434,036
Growth & Income Fund . . . . . . . . 16 5,184,648 12.90 66,881,957 58,002,292 8,879,665
Science & Technology Fund . . . . . . 17 20,809,176 17.98 374,148,985 330,145,481 44,003,504
Social Awareness Fund . . . . . . . . 12 4,237,891 14.15 59,966,151 52,197,124 7,769,027
Timed Opportunity Fund . . . . . . . 5 15,100,694 12.11 182,869,410 160,827,715 22,041,695
Capital Conservation Fund . . . . . . 1 & 7 6,169,509 9.91 61,139,836 59,432,080 1,707,756
Government Securities Fund . . . . . 8 7,014,252 10.21 71,615,518 70,467,996 1,147,522
International Government Bond Fund . 13 9,127,680 12.29 112,179,184 109,565,749 2,613,435
Money Market Fund . . . . . . . . . . 2 & 6 86,935,961 1.00 86,935,961 86,935,961 -
Dreyfus Small Cap Fund . . . . . . . 18 7,718,952 46.13 356,075,243 308,998,162 47,077,081
Templeton Asset Allocation Fund . . . 19 5,037,292 18.73 94,348,477 83,141,995 11,206,482
Templeton International Fund . . . . 20 16,516,483 15.13 249,894,383 228,724,327 21,170,056
--------------------------------------------
$4,265,526,052 $3,569,502,230 $696,023,822
============================================
</TABLE>
NOTE E -- FEDERAL INCOME TAXES
VALIC is taxed as a life insurance company under the Internal Revenue
Code and includes the operations of the Separate Account in determining its
federal income tax liability. Under current federal income tax law the
investment income and capital gains from sale of investments realized by the
Separate Account are not taxable. Therefore, no federal income tax provision
has been made.
NOTE F -- SECURITY PURCHASES AND SALES
For the year ended December 31, 1995, the aggregate cost of purchases
and proceeds from sales of investments were:
<TABLE>
<S> <C> <C>
Purchases Sales
Stock Index Fund: --------------------------------
Division 10A . . . . . . . . . . . . . . . . . . . . . . $ 17,829,646 $ 43,581,553
Division 10B . . . . . . . . . . . . . . . . . . . . . . 1,750,366 4,905,910
Division 10C . . . . . . . . . . . . . . . . . . . . . . 166,148,042 50,236,291
Division 10D . . . . . . . . . . . . . . . . . . . . . . 2,318,140 9,247,780
MidCap Index Fund Division 4 . . . . . . . . . . . . . . . 62,422,985 39,646,090
Small Cap Index Fund Division 14 . . . . . . . . . . . . . 24,793,667 23,245,115
International Equities Fund Division 11 . . . . . . . . . . 57,671,192 69,714,222
Growth Fund Division 15 . . . . . . . . . . . . . . . . . . 168,790,861 57,736
Growth & Income Fund Division 16 . . . . . . . . . . . . . 45,865,792 122,058
Science & Technology Fund Division 17 . . . . . . . . . . . 290,019,742 18,313,402
Social Awareness Fund Division 12 . . . . . . . . . . . . . 14,778,261 4,227,474
Timed Opportunity Fund Division 5 . . . . . . . . . . . . . 13,643,488 34,236,462
Capital Conservation Fund:
Division 1 . . . . . . . . . . . . . . . . . . . . . . . 766,423 1,960,586
Division 7 . . . . . . . . . . . . . . . . . . . . . . . 17,499,959 10,443,867
Government Securities Fund Division 8 . . . . . . . . . . . 30,092,359 4,775,625
International Government Bond Fund Division 13 . . . . . . 85,454,562 10,810,456
Money Market Fund:
Division 2 . . . . . . . . . . . . . . . . . . . . . . . 2,717,163 3,576,785
Division 6 . . . . . . . . . . . . . . . . . . . . . . . 127,237,936 152,993,878
Dreyfus Small Cap Fund Division 18 . . . . . . . . . . . . 219,949,004 128,645
Templeton Asset Allocation Fund Division 19 . . . . . . . . 50,326,793 783,734
Templeton International Fund Division 20 . . . . . . . . . 155,004,679 292,803
--------------------------------
Total . . . . . . . . . . . . . . . . . . . . . . . . $1,555,081,060 $483,300,472
================================
</TABLE>
17
<PAGE> 19
================================================================================
REPORT OF INDEPENDENT AUDITORS SEPARATE ACCOUNT A
- --------------------------------------------------------------------------------
To the Board of The Variable Annuity Life Insurance Company and Contract Owners
of The Variable Annuity Life Insurance Company Separate Account A
We have audited the accompanying statements of net assets of The Variable
Annuity Life Insurance Company Separate Account A ("Separate Account A") and
each of the divisions (1, 2, 4, 5, 6, 7, 8, 10A, 10B, 10C, 10D, 11, 12, 13, 14,
15, 16, 17, 18, 19, and 20) comprising Separate Account A as of December 31,
1995. We have also audited the related statements 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 of Separate Account A and each of its divisions
except for divisions 15, 16, 17, 18, 19, and 20 for which we audited the
statements of changes in net assets for the year ended December 31, 1995 and
for the period from July 11, 1994 (inception) to December 31, 1994. These
financial statements are the responsibility of Separate Account A'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. Our
procedures included confirmation of securities owned as of December 31, 1995,
by correspondence with the transfer agent. 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 Separate Account A and each of
the divisions comprising Separate Account A at December 31, 1995, and the
results of their operations and changes in their net assets for each of the
periods identified above, in conformity with generally accepted accounting
principles.
ERNST & YOUNG LLP
Houston, Texas
January 26, 1996
<PAGE> 20
<TABLE>
<S> <C>
THE VARIABLE ANNUITY LIFE INSURANCE COMPANY Bulk Rate
SEPARATE ACCOUNT A U.S. Postage
PAID
P.O. Box 3206 Permit No. 6748
Houston, Texas 77253-3206 Houston, Texas
</TABLE>
