<PAGE>
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DEAR SHAREHOLDERS:
We are pleased to provide this report for INA Investment Securities, Inc.,
covering the quarter ended September 30, 1995.
MARKET FINISHES UP DESPITE CORRECTION IN THIRD QUARTER
The bond market ended the quarter little changed, even though it experienced a
significant (30+ basis points) mid-term correction. The market reacted first
positively to an easing of monetary conditions by the Federal Reserve, then
negatively to signs of unexpectedly strong economic growth. It then rallied
through its beginning levels to close at 6.5% on the 30-year Treasury Bond,
based on good inflation news and mixed economic data.
FUND PERFORMANCE
The Fund returned 2.58% for the third quarter, and 14.08% over the first 9
months of 1995, after deduction of expenses and reinvestment of dividends,
based on net asset value of underlying fund assets. This performance, which
was aided by the strong showing of corporate holdings, exceeded the total re-
turn for the Lehman Government/Corporate Index of 1.91% by 67 basis points for
the quarter. Based on the per-share market value of the shares listed on the
New York Stock Exchange, the Fund returned 14.73% during the same period.
PORTFOLIO ACTIVITY
The portfolio remains fully invested. On September 30, 1995, corporate and
foreign bonds were approximately 65.6% of portfolio holdings, U.S.
government/agency securities 30.1%, and cash and other assets 4.3%. Per-share
net asset value was $18.99, up from $18.84 on June 30, 1995. A dividend of
$0.33 was declared during the third quarter.
OUTLOOK
Continued economic growth and low inflation auger well for the market in the
near term. While there is the potential for some disappointment if economic
growth over-accelerates, the current tone of the market is quite positive.
Sincerely,
/s/ R. Bruce Albro
R. Bruce Albro, Chairman
INA Investment Securities, Inc.
<PAGE>
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FINANCIAL SUMMARY
For the Nine Months Ended September 30 (Unaudited)
(In Thousands)
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<TABLE>
<CAPTION>
1995 1994
---- ----
<S> <C> <C>
Net investment income $ 4,766 $ 5,010
Net realized and unrealized gain (loss) 6,841 (8,093)
Per share:
Net investment income $ 0.99 $ 1.05
Dividends from net investment income $ 0.99 $ 0.99
Net asset value at end of period $ 18.99 $ 17.90
</TABLE>
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NET INVESTMENT INCOME PER SHARE
For the Nine Months Ended September 30 (Unaudited)
<TABLE>
- --------------------------------------------------------------------------------
<CAPTION>
1995 1994 1993 1992 1991
---- ---- ---- ---- ----
<S> <C> <C> <C> <C>
$0.99 $1.05 $1.06 $1.12 $1.17
</TABLE>
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STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(IN THOUSANDS)
--------------
<S> <C>
ASSETS:
Investments at market value
(Cost -- $86,792,428) $89,325
Interest receivable 1,940
Receivable for investments sold 538
Investment for deferred compensation (Cost -- $49,279) 52
Other 5
-------
Total assets 91,860
-------
LIABILITIES:
Payable for investments purchased 555
Deferred directors' fees payable 90
Accrued advisory fees payable 43
Other accrued expenses (including $45,716 due to affiliate) 178
-------
Total liabilities 866
-------
NET ASSETS $90,994
=======
NET ASSET VALUE PER SHARE
Applicable to 4,792,215 shares of $.10 par value capital stock
outstanding (12,000,000 shares authorized) $18.99
======
</TABLE>
<PAGE>
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STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS
For the Nine Months Ended September 30, 1995
(Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(IN THOUSANDS)
--------------
<S> <C> <C>
INVESTMENT INCOME:
Interest $ 5,423
EXPENSES:
Investment advisory fees $ 348
Administrative services 54
Transfer agent fees 52
Custodian fees 49
Shareholder reports 46
Auditing and legal fees 39
Directors' fees 29
State taxes 28
Other 12 657
----- --------
NET INVESTMENT INCOME 4,766
NET REALIZED GAIN ON INVESTMENTS 762
UNREALIZED APPRECIATION OF INVESTMENTS 6,079
--------
NET INCREASE IN NET ASSETS FROM OPERATIONS 11,607
DISTRIBUTIONS TO SHAREHOLDERS
FROM NET INVESTMENT INCOME (4,744)
--------
NET INCREASE IN NET ASSETS 6,863
NET ASSETS:
Beginning of period 84,131
--------
End of period (includes undistributed net investment income of
$625) $ 90,994
========
</TABLE>
<PAGE>
INA Investment Securities is a close-end, diversified management investment
company that invests primarily in debt securities. The investment adviser is
CIGNA Investments, Inc., Hartford, Connecticut 06152.
Shareholders may elect to have dividends automatically reinvested in additional
shares of INA Investment Securities by participating in the Automatic Dividend
Investment Plan. For a brochure describing this Plan or general inquiries about
your account, contact State Street Bond and Trust Company, Stock Transfer De-
partment, P.O. Box 8200, Boston, Massachusetts, 02266-8200, or call toll-free
1-800-426-5523.
<PAGE>
[LOGO OF CIGNA APPEARS HERE] ------------------
BULK RATE
INA Investment Securities, Inc. U.S. POSTAGE
P.O. Box 13856 PAID
Philadelphia, PA 19101 SO. HACKENSACK, NJ
PERMIT 750
------------------
Printed on recycled paper
[MAC ART APPEARS HERE]
[LOGO OF CIGNA APPEARS HERE]
INA Investment Securities, Inc.
Third Quarter Report
September 30, 1995
