GREAT-WEST VARIABLE ANNUITY ACCOUNT A
Financial Statements for the Years Ended December 31,
1996 and 1995 and Independent Auditors' Report
INDEPENDENT AUDITORS' REPORT
To the Variable Annuity Account Committee
and the Participants of Great-West Variable Annuity Account A:
We have audited the accompanying statement of assets and
liabilities of the Great-West Variable Annuity Account A, including
the schedule of investments, as of December 31, 1996, the related
statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then
ended and the financial highlights for each of the five years in
the period ended December 31, 1996. These financial statements and
financial highlights are the responsibility of Variable Annuity
Account A's management. Our responsibility is to express an
opinion on these financial statements and financial highlights
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 and the financial highlights 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, 1996 by correspondence with the
custodian. 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, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
the Great-West Variable Annuity Account A at December 31, 1996, and
the results of its operations, the changes in its net assets and
the financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
January 31, 1997
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
Assets:
Investments, at value:
Common stock (cost - $5,551,383) $7,149,008
Short-term investment (cost - $497,866) 497,866
Investment income due and accrued 6,921
Cash 94,116
Total Assets 7,747,911
Liabilities:
Due to Great-West Life & Annuity Insurance Company 2,793
Contract benefits payable 5,257
Total Liabilities 8,050
Net Assets $7,739,861
Net Assets Represented By (Units at 8.7670)
Accumulation units - 819,044 $7,180,553
Reserves for annuities in course of payment - 2,850 units 559,308
Net Assets $7,739,861
See notes to financial statements.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
Investment Income:
Dividends $85,801
Interest 46,351
132,152
Expenses:
Administration 20,791
Mortality risks 27,814
Investment management and advisory services 33,525
Expense risks 4,944
87,074
Net Investment Income 45,078
Realized and Unrealized Gain on Investments:
Net realized gain on investments 754,021
Net change in unrealized appreciation on investments 289,358
Net Realized and Unrealized Gain on Investments 1,043,379
Net Increase in Net Assets Resulting from Operations
$1,088,457
See notes to financial statements.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
YEARS ENDED DECEMBER 31, 1996 AND 1995
From Operations: 1996 1995
Net investment income $45,078 $93,115
Net realized gains 754,021 855,627
Net change in unrealized appreciation 289,358 568,994
Increase in net assets resulting
from operations 1,088,457 1,517,736
From Unit Share Transactions:
Surrenders (199,158) (299,498)
Annuity payments (107,722) (107,786)
Death payments (41,699) (204,673)
Transfer in respect of mortality guarantees 9,843 7,418
Decrease in net assets derived from unit
share transactions (338,736) (604,539)
Net increase in net assets 749,721 913,197
Net Assets:
Beginning of period 6,990,140 6,076,943
End of period $7,739,861 $6,990,140
See notes to financial statements.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
FINANCIAL HIGHLIGHTS
Selected data for an accumulation unit for years ended December 31,
1996, 1995 1994, 1993, and 1992, were as follows:
Years Ended December 31,
1996
1995
1994
1993
1992
Unit Value, Beginning of Period
$7.501
$6.070
$6.245
$5.397
$5.175
Income From Investment Operations:
Net investment income
.053
.089
.073
.048
.052
Net gains (losses) on investments
(realized and unrealized)
1.213
1.342
(.248)
.800
.170
Total From Investment
Operations (Note A)
1.266
1.431
(.175)
.848
.222
Unit Value, End of Period
$8.767
$7.501
$6.070
$6.245
$5.397
Total Return
15.90%
23.56%
(2.80)%
15.71%
4.29%
Net Assets, End of Period
$7,739,861
$6,990,140
$6,076,943
$7,235,935
$6,825,451
Average broker commission paid
per share bought or sold
$0.0692
Ratio of Expenses to Average
Net Assets
1.25%
1.18%
1.24%
1.19%
1.21%
Ratio of Net Investment Income
to Average Net Assets
1.89%
2.49%
2.42%
2.02%
2.23%
Portfolio Turnover Rate
64.4%
62.2%
30.2%
23.4%
44.5%
Note A - Net investment income and realized and unrealized gains
(losses) are reflected in the value of the accumulation units.
Dividends are not declared from income and capital gains are not
distributed.
GREAT-WEST VARIABLE ANNUITY ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1996 AND 1995
NOTE 1 - HISTORY
Great-West Variable Annuity Account A (Variable Annuity Account A)
is a separate and distinct investment fund established by The
Great-West Life Assurance Company (Great-West Life). On December
31, 1991, Variable Annuity Account A was transferred to and the
variable annuity contracts were reinsured by Great-West Life &
Annuity Insurance Company (GWL&A), a wholly-owned subsidiary of
Great-West Life. Variable Annuity Account A is registered as an
open-end diversified management investment company under the
Investment Company Act of 1940, and the registration under the
Securities Act of 1933 of the group variable annuity contracts
funded by Variable Annuity Account A became effective on November
27, 1968. Purchase payments were first placed in Variable Annuity
Account A on January 3, 1969.
Effective April 16, 1984, Great-West Life ceased issuing new
variable annuity contracts. Effective May 1, 1987, Great-West Life
has not allowed new participants to be enrolled under existing
variable annuity contracts and, effective May 1, 1989, no
additional contributions under existing variable annuity contracts
are being accepted.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
The cost of securities sold is determined on the basis of specific
identification.
Securities traded on national exchanges are valued daily at the
closing price of the securities on these exchanges, and securities
traded on over-the-counter markets are valued daily at the average
between bid and asked prices. Short-term securities are valued at
amortized cost which approximates market value. Security
transactions are recorded at the earlier of trade date or the date
a commitment is made to buy or sell the related investment.
Dividend income is accrued as of the ex-dividend date and interest
income is recorded daily.
NOTE 3 - CHARGES UNDER THE CONTRACTS
GWL&A provides administrative, investment management, and advisory
services to Variable Annuity Account A and has assumed mortality
and expense risks of the contracts. A daily deduction of .003285%
(an effective annual rate of 1.2064%) is made from the gross
investment income of Variable Annuity Account A. This deduction,
expressed on an annual basis, is broken down as follows: .2857%
for administrative expenses, .3863% for mortality risks, .0688% for
expense risks, and .4656% for investment management and advisory
services. Effective November 1, 1996 a wholly-owned subsidiary of
Great-West Life & Annuity Insurance Company, GW Capital Management,
Inc., serves as investment advisor.
NOTES TO FINANCIAL STATEMENTS - Continued
NOTE 4 - INVESTMENTS
The aggregate purchases of investments and the aggregate proceeds
from sales of investments were (excluding short-term securities) as
follows:
1996 1995
Common Stock
Purchases $4,215,625 $4,018,419
Proceeds from sales 4,398,958 4,643,628
NOTE 5 - FEDERAL INCOME TAXES
The Variable Annuity Account A investment income is applied to
increase accumulation unit values. Under existing federal income
tax law, Variable Annuity Account A investment income is not taxed
to the extent that it is applied to increase accumulation unit
values. GWL&A reserves the right to charge the Variable Annuity
Account A if such taxes are imposed in the future.
NOTE 6 - ACCUMULATION UNITS
A summary of the transactions in accumulation units follows:
1996 1995
Outstanding - January 1 848,519 904,823
Redeemed during the year
Surrender (24,386) (24,716)
Death (5,089) (31,588)
(29,475) (56,304)
Outstanding - December 31 819,044 848,519
Net investment income and realized and unrealized gains are
reflected in the value of the accumulation units. Dividends are
not declared from income and gains are not distributed.
NOTES TO FINANCIAL STATEMENTS - Continued
NOTE 7 - ACCUMULATION UNIT VALUES - (Unaudited)
ACCUMULATION ACCUMULATION
VALUATION DATE UNIT VALUE VALUATION DATE UNIT VALUE
January 3, 1969 $1.00000000 September 30, 1980
$1.24125856
March 28, 1969 $1.07468400 December 31, 1980
$1.34937658
June 27, 1969 $1.07583259 March 31, 1981
$1.34420316
September 30, 1969 $1.04319336 June 30, 1981
$1.31151501
December 31, 1969 $1.05956294 September 30, 1981
$1.21957549
March 31, 1970 $1.05322327 December 31, 1981
$1.34034823
June 30, 1970 $.86337212 March 31, 1982
$1.22060069
September 30, 1970 $.98057690 June 30, 1982
$1.21747890
December 31, 1970 $1.08416020 September 30, 1982
$1.32107048
March 31, 1971 $1.28783953 December 31, 1982
$1.54829628
June 30, 1971 $1.31417688 March 31, 1983
$1.72492408
September 30, 1971 $1.34600160 June 30, 1983
$1.88999803
December 31, 1971 $1.40624309 September 30, 1983
$1.85391985
March 31, 1972 $1.50937876 December 31, 1983
$1.86959830
June 30, 1972 $1.46441659 March 31, 1984
$1.77987261
September 29, 1972 $1.41141921 June 30, 1984
$1.74123169
December 31, 1972 $1.43641768 September 30, 1984
$1.89436321
March 30, 1973 $1.14518173 December 31, 1984
$1.94021457
June 29, 1973 $.94975920 March 31, 1985
$2.11639231
September 28, 1973 $1.12752636 June 30, 1985
$2.31593116
December 31, 1973 $.98798465 September 30, 1985
$2.17502453
March 29, 1974 $.92504974 December 31, 1985
$2.50415588
June 28, 1974 $.84636772 March 31, 1986
$2.92575544
September 30, 1974 $.69582357 June 30, 1986
$3.12894373
December 31, 1974 $.76438983 September 30, 1986
$2.79849885
March 31, 1975 $.85484991 December 31, 1986
$2.92996949
June 30, 1975 $.94523691 March 31, 1987
$3.45357315
September 30, 1975 $.86720026 June 30, 1987
$3.47692861
December 31, 1975 $.89703274 September 30, 1987
$3.58107036
March 31, 1976 $1.02654318 December 31, 1987
$2.90927633
June 30, 1976 $1.04254066 March 31, 1988
$3.03211290
September 30, 1976 $1.02175714 June 30, 1988
$3.14170371
December 31, 1976 $1.06312535 September 30, 1988
$3.19555027
March 31, 1977 $.96668709 December 31, 1988
$3.24632490
June 30, 1977 $.97779837 March 31, 1989
$3.40048089
September 30, 1977 $.91543186 June 30, 1989
$3.66057985
December 31, 1977 $.91330430 September 30, 1989
$4.03595925
March 31, 1978 $.88025820 December 31, 1989
$4.16667314
June 30, 1978 $.94981303 March 31, 1990
$4.10420565
September 30, 1978 $1.02175412 June 30, 1990
$4.40575331
December 31, 1978 $.94566769 September 30, 1990
$3.95067300
March 31, 1979 $1.03700469 December 31, 1990
$4.09586804
June 30, 1979 $1.03384794 March 31, 1991
$4.67731834
September 30, 1979 $1.07966980 June 30, 1991
$4.46997251
December 31, 1979 $1.09861144 September 30, 1991
$4.70629835
March 31, 1980 $1.02778990 December 31, 1991
$5.17489662
June 30, 1980 $1.15888482
ACCUMULATION UNIT VALUES - (Unaudited) - Concluded
ACCUMULATION
VALUATION DATE UNIT VALUE
March 31, 1992 $5.00089395
June 30, 1992 $4.90045709
September 30, 1992 $4.94334533
December 31, 1992 $5.39680799
March 31, 1993 $5.70268053
June 30, 1993 $5.91443136
September 30, 1993 $6.20352631
December 31, 1993 $6.24551098
March 31, 1994 $6.07099873
June 30, 1994 $5.98373289
September 30, 1994 $6.21184797
December 31, 1994 $6.07070336
March 31, 1995 $6.43386353
June 30, 1995 $6.93539739
September 30, 1995 $7.34349110
December 31, 1995 $7.50058268
March 31, 1996 $7.97167430
June 30, 1996 $8.16277408
September 30, 1996 $8.36088935
December 31, 1996 $8.76699327
