LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
COMBINED BALANCE SHEET
As Of June 30, 2000
(Unaudited)
This report is submitted for the general information of owners of Life Insurance
Company of North America Seperate Account A contracts. The Separate Accoutn does
not issue new contracts; accordingly, this report is not authorized for
distribution to prospective purchasers of variable annuity contracts.
Life Insurance Company of North America
Philadelphia, PA
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
COMBINED BALANCE SHEET
As Of June 30, 2000
(Unaudited)
ASSETS
Investments at Market Value (Notes 1 and 2):
Seligman Growth Fund, Inc.
1,573,587 qualified shares (Cost $10,260,099) $ 15,040,429
228,541 non-qualified shares (Cost $ 1,890,765) $ 2,185,098
Oppenheimer Multiple Strategies Fund
(formerly Oppenheimer)
72,380 qualified shares (Cost $ 800,839) $ 1,031,423
11,802 non-qualified shares (Cost $ 144,146) $ 168,184
Delaware Group Decatur Fund, Inc.
632,275 qualified shares (Cost $ 7,364,311) $ 9,774,969
198,044 non-qualified shares (Cost $ 2,291,966) $ 3,061,260
Windsor Fund
451,222 qualified shares (Cost $5,095,754) $ 6,723,208
91,378 non-qualified shares (Cost $1,256,560) $ 1,361,532
Dreyfus Third Century Fund
921,075 qualified shares (Cost $4,454,559) $ 13,631,907
28,120 non-qualified shares (Cost $173,012) $ 416,185
Windsor Fund B
205,158 qualified shares (Cost $3,453,598) $ 3,093,620
65,734 non-qualified shares (Cost $1,089,532) $ 979,444
CIGNA High Yield Fund, Inc.
43,793 qualified shares (Cost $ 466,667) $ 310,927
127,094 non-qualified shares (Cost $1,183,101) $ 902,373
__________
Total Assets $ 58,680,559
==========
<PAGE>
CONTRACT OWNERS' EQUITY
Contract Owners' Equity (Notes 3 and 7):
Seligman Growth Fund, Inc.
560,730 qualified accumulation
units outstanding ($26.8229440 per unit) $ 15,040,429
100,990 non-qualified accumulation
units outstanding ($21.6367710 per unit) 2,185,098
Oppenheimer Multiple Strategies Fund
(formerly Oppenheimer Fund)
102,040 qualified accumulation
units outstanding ($10.1080230 per unit) 1,031,423
17,030 non-qualified accumulation
units outstanding ($ 9.8757350 per unit) 168,184
Delaware Group Decatur Fund, Inc.
391,549 qualified accumulation
units outstanding ($24.9648690 per unit) 9,774,969
126,163 non-qualified accumulation
units outstanding ($24.2643280 per unit) 3,061,260
Windsor Fund
321,465 qualified accumulation
units outstanding ($ 20.9142760 per unit) 6,723,208
73,680 non-qualified accumulation
units outstand ($ 18.4789860 per unit) 1,361,532
Dreyfus Third Century Fund
349,849 qualified accumulation
units outstanding ($38.9651160 per unit) 13,631,907
12,142 non-qualified accumulation
units outstand (n34.2764610 per unit) 416,185
Windsor Fund B
127,261 qualified accumulation
units outstanding ($24.3092510 per unit) 3,093,620
40,291 non-qualified accumulation
units outstand ($24.3092510 per unit) 979,444
CIGNA High Yield Fund, Inc.
49,231 qualified accumulation
units outstanding ($ 6.3156780 per unit) 310,927
140,540 non-qualified accumulation
units outstand ($ 6.4207560 per unit) 902,373
________
Contract Owners' Equity $ 58,680,559
============
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF OPERATIONS
Period Ended June 30, 2000
(Unaudited)
Seligman Seligman
Growth Fund Growth Fund
Inc. Inc.
Qualified Non-Qualified
Investment Income:
Dividends $ 0 $ 0
Expenses:
Mortality risk and expense
fees guarantees (Notes 3) 65,010 9,569
_________ _________
Investment income - net (65,010) (9,569)
_________ _________
Net Realized and Unrealized Gain on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 2,786,884 296,461
Cost of shares sold 2,431,246 261,890
_________ _________
Net realized gain (loss) on investments 355,638 34,571
_________ _________
Net unrealized gain (loss) on investments 1,120,452 184,794
_________ _________
Net realized and unrealized
gain (Loss) on investments 1,476,090 219,365
_________ _________
Net Increase (Decrease) in Net Assets
from Investment Operations $ 1,411,080 $ 209,796
=========== ===========
Oppenheimer Oppenheimer
Multiple Multiple
Strategies Fund Strategies Fund
(formerly (formerly
Oppenheimer) Oppenheimer)
Qualified Qualified
Investment Income:
Dividends $ 18,590 $ 2,795
Expenses:
Mortality risk and expense
fees guarantees (Notes 3) 5,020 724
_________ _________
Investment income - net 13,570 2,071
_________ _________
Net Realized and Unrealized Gain on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 222,166 6,166
Cost of shares sold 181,732 6,000
_________ _________
Net realized gain (loss) on investments 40,434 166
_________ _________
Net unrealized gain (loss) on investments 7,667 7,152
_________ _________
Net realized and unrealized gain
(Loss) on investments 48,101 7,318
_________ _________
Net Increase (Decrease) in Net Assets
from Investment Operations $ 61,671 $ 9,389
=========== ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF OPERATIONS
Period Ended June 30, 2000
(Unaudited)
Delaware Delaware
Group Group
Decatur Decatur
Fund, Inc. Fund, Inc.
Qualified Non-Qualified
Investment Income:
Dividends $ 152,207 $ 41,922
Expenses:
Mortality risk and expense fees guarantees (Notes 3) 51,749 14,447
_________ _________
Investment income - net 100,458 27,475
_________ _________
Net Realized and Unrealized Gain on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 3,291,703 312,557
Cost of shares sold 3,863,677 340,227
_________ _________
Net realized gain (loss) on investments (571,974) (27,670)
_________ _________
Net unrealized gain (loss) on investments (402,895) (196,364)
_________ _________
Net realized and unrealized gain
(Loss) on investments (974,869) (224,034)
_________ _________
Net Increase (Decrease) in Net Assets
from Investment Operations $ (874,411) $ (196,559)
=========== ===========
Windsor Windsor
Fund Fund
Qualified Non-Qualified
Investment Income:
Dividends $ 58,846 $ 11,780
Expenses:
Mortality risk and expense fees guarantees (Notes 3) 32,356 7,717
_________ _________
Investment income - net 26,490 4,063
_________ _________
Net Realized and Unrealized Gain on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 1,544,065 436,061
Cost of shares sold 1,426,622 430,639
_________ _________
Net realized gain (loss) on investments 117,443 5,422
_________ _________
Net unrealized gain (loss) on investments (293,035) (18,471)
_________ _________
Net realized and unrealized gain
(Loss) on investments (175,592) (13,049)
_________ _________
Net Increase (Decrease) in Net Assets
from Investment Operations $(149,102) $ (8,986)
=========== ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF OPERATIONS
Period Ended June 30, 2000
(Unaudited)
Dreyfus Dreyfus
Third Century Third Century
Qualified Non-Qualified
Investment Income:
Dividends $ 0 $ 0
Expenses:
Mortality risk and expense fees guarantees (Notes 3) 59,927 1,846
_________ _________
Investment income - net (59,927) (1,846)
_________ _________
Net Realized and Unrealized Gain on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 1,408,018 25,960
Cost of shares sold 1,403,566 23,880
_________ _________
Net realized gain (loss) on investments 4,452 2,080
_________ _________
Net unrealized gain (loss) on investments 191,548 5,881
_________ _________
Net realized and unrealized gain
(Loss) on investments 196,000 7,961
_________ _________
Net Increase (Decrease) in Net Assets
from Investment Operations $ 136,073 $ 6,115
=========== ===========
Windsor Windsor
Fund B Fund B
Qualified Non-Qualified
Investment Income:
Dividends $ 26,315 $ 8,474
Expenses:
Mortality risk and expense fees guarantees (Notes 3) 15,121 6,611
_________ _________
Investment income - net 11,194 1,863
_________ _________
Net Realized and Unrealized Gain on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 942,979 577,906
Cost of shares sold 963,779 544,131
_________ _________
Net realized gain (loss) on investments (20,800) 33,775
_________ _________
Net unrealized gain (loss) on investments (18,599) (38,336)
_________ _________
Net realized and unrealized gain (Loss) on investments (39,399) (4,561)
_________ _________
Net Increase (Decrease) in Net Assets
from Investment Operations $ (28,205) $ (2,698)
=========== ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF OPERATIONS
Period Ended June 30, 2000
(Unaudited)
CIGNA High CIGNA High
Yield Fund, Yield Fund,
Inc. Inc.
Qualified Non-Qualified
Investment Income:
Dividends $ 20,208 $ 54,482
Expenses:
Mortality risk and expense fees guarantees (Notes 3) 1,574 4,159
_________ _________
Investment income - net 18,634 50,323
_________ _________
Net Realized and Unrealized Gain on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 52,800 5,394
Cost of shares sold 63,755 5,472
_________ _________
Net realized gain (loss) on investments (10,955) (78)
_________ _________
Net unrealized gain (loss) on investments (32,379) (116,249)
_________ _________
Net realized and unrealized gain (Loss) on investments (43,334) (116,327)
_________ _________
Net Increase (Decrease) in Net Assets
from Investment Operations $ (24,700) $ (66,004)
=========== ===========
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Period Ended June 30, 2000
(Unaudited)
Seligman Seligman
Growth Fund Growth Fund
Inc. Inc.
Qualified Non-Qualified
Investment Operations:
Investment income-net ($65,010) ($9,569)
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 355,638 34,571
Net unrealized gain (loss) on investments 1,120,452 184,794
____________ _____________
Net Increase (Decrease) in net assets
from investmement operations 1,411,080 209,796
____________ _____________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 4,717 180
Net contract surrenders
and transfers out (Note 3) (1,577,544) (77,123)
Benefit payments to annuitants (45,666) (155,606)
____________ _____________
Net Increase (Decrease) from accumulation
unit transactions (1,618,493) (232,549)
____________ _____________
($207,413) ($22,753)
Net Assets:
Net assets at December 31, 1999 $15,247,842 $2,207,851
____________ _____________
Net assets at June 30, 2000 $15,040,429 $2,185,098
===========================
Seligman Seligman
Growth Fund Growth Fund
Inc. Inc.
Qualified Non-Qualified
Investment Operations:
Investment income-net ($116,434) ($16,771)
Realized capital gain distributions 1,518,869 219,807
Net realized gain (loss) on investments 121,641 15,814
Net unrealized gain (loss) on investments 1,959,390 283,458
__________________________
Net Increase (Decrease) in net assets
from investmement operations 3,483,466 502,308
____________ _____________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 9,349 0
Net contract surrenders
and transfers out (Note 3) (732,376) (99,567)
Benefit payments to annuitants (110,685) (24,502)
____________ _____________
Net Increase (Decrease)
from accumulation unit transactions (833,712) (124,069)
____________ _____________
$2,649,754 $378,239
Net Assets:
Net assets at December 31, 1998 12,598,088 1,829,612
____________ _____________
Net assets at December 31, 1999 $ $15,247,842 $2,207,851
=============================
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Period Ended June 30, 2000
(Unaudited)
Multiple Multiple
Strategies Strategies
Fund Fund
(formerly (formerly
Oppenheimer) Oppenheimer)
Investment Operations:
Investment income-net 13,570 2,071
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 40,434 166
Net unrealized gain (loss) on investments 7,667 7,152
____________ ____________
Net Increase (Decrease)
in net assets from investment operations 61,671 9,389
____________ ____________
Accumulation Unit Transactions
Net contract considerations
and transfers in (Note 3) 291 0
Net contract surrenders
and transfers out (Note 3) (187,557) (395)
Benefit payments to annuitants (3,249) (602)
____________ ____________
Net Increase (Decrease) from
accumulation unit transactions (190,515) (997)
____________ ____________
(128,844) 8,392
Net Assets:
Net assets at December 31, 1999 1,160,267 159,792
____________ ____________
Net assets at June 30, 2000 $ 1,031,423 $ 168,184
=============================
Multiple Multiple
Strategies Strategies
Fund Fund
(formerly (formerly
Oppenheimer ) Oppenheimer )
Investment Operations:
Investment income-net $ 39,709 4 6,640
Realized capital gain distributions 78,520 10,699
Net realized gain (loss) on investments 86,681 26,468
Net unrealized gain (loss) on investments (90,965) (24,470)
____________ ____________
Net Increase (Decrease) in net
assets from investment operations 113,945 19,337
____________ ____________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 1,226 0
Net contract surrenders
and transfers out (Note 3) (339,015) (55,464)
Benefit payments to annuitants (16,907) (79,036)
____________ ____________
Net Increase (Decrease)
from accumulation unit transations (354,696) (134,500)
____________ ____________
(240,751) (115,163)
Net Assets:
Net assets at December 31, 1998 1,401,018 274,955
____________ ____________
Net assets at December 31, 1999 $ 1,160,267 159,792
=============================
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Period Ended June 30, 2000
(Unaudited)
Delaware Delaware
Group Group
Decatur Decatur
Fund, Inc. Fund, Inc.
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 100,458 $ 27,475
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (571,974) (27,670)
Net unrealized gain (loss) on investments (402,895) (196,364)
___________ _____________
Net Increase (Decrease) in net
assets from investment operations (874,411) (196,559)
___________ _____________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 15,583 0
Net contract surrenders
and transfers out (Note 3) (2,947,413) (278,440)
Benefit payments to annuitants (215,980) (21,096)
___________ _____________
Net Increase (Decrease) from
accumulation unit transactions (3,147,810) (299,536)
___________ _____________
(4,022,221) (496,095)
Net Assets:
Net assets at December 31, 1999 13,797,190 3,557,355
___________ _____________
Net assets at June 30, 2000 $ 9,774,969 $ 3,061,260
===========================
Delaware Delaware
Group Group
Decatur Decatur
Fund, Inc. Fund, Inc.
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 272,666 $ 70,818
Realized capital gain distributions 384,524 97,595
Net realized gain (loss) on investments 49,215 (71)
Net unrealized gain (loss) on investments (1,352,313) (340,298)
___________ _____________
Net Increase (Decrease) in net
assets from investment operations (645,908) (171,956)
___________ _____________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 651,974 0
Net contract surrenders
and transfers out (Note 3) (1,547,806) (300,479)
Benefit payments to annuitants (97,603) (284,687)
___________ _____________
Net Increase (Decrease) from
accumulation unit transactions (993,435) (585,166)
___________ _____________
(1,639,343) (757,122)
Net Assets:
Net assets at December 31, 1998 15,436,533 4,314,477
___________ _____________
Net assets at December 31, 1999 $ 13,797,190 $ 3,557,355
===============================
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Period Ended June 30, 2000
(Unaudited)
Windsor Windsor
Fund Fund
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 26,490 $ 4,063
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 117,443 5,422
Net unrealized gain (loss) on investments (293,035) (18,471)
___________ _____________
Net Increase (Decrease) in net assets
from investment operations (149,102) (8,986)
___________ _____________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 139,739 0
Net contract surrenders
and transfers out (Note 3) (1,266,097) (429,664)
Benefit payments to annuitants (44,905) 0
___________ _____________
Net Increase (Decrease) from
accumulation unit transactions (1,171,263) (429,664)
___________ _____________
(1,320,365) (438,650)
Net Assets:
Net assets at December 31, 1999 8,043,573 1,800,182
___________ _____________
Net assets at June 30, 2000 $ 6,723,208 $ 1,361,532
=============================
Windsor Windsor
Fund Fund
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 251,476 $ 55,023
Realized capital gain distributions 735,781 155,480
Net realized gain (loss) on investments 948,113 932
Net unrealized gain (loss) on investments (768,878) (43,602)
___________ _____________
Net Increase (Decrease) in net assets
from investment operations 1,166,492 167,833
___________ _____________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 34,907 50,000
Net contract surrenders
and transfers out (Note 3) (5,415,444) (1,553)
Benefit payments to annuitants (111,399) 0
___________ _____________
Net Increase (Decrease) from
accumulation unit transactions (5,491,936) 48,447
___________ _____________
(4,325,444) 216,280
Net Assets:
Net assets at December 31, 1998 12,369,017 1,583,902
___________ _____________
Net assets at December 31, 1999 $ 8,043,573 $ 1,800,182
===========================
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Period Ended June 30, 2000
(Unaudited)
Dreyfus Dreyfus
Third Century Third Century
Qualified Non-Qualified
Investment Operations:
Investment income-net $ (59,927) $ (1,846)
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 4,452 2,080
Net unrealized gain (loss) on investments 191,548 5,881
______________________
Net Increase (Decrease) in net assets
from investment operations 136,073 6,115
______________________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 1,666 0
Net contract surrenders
and transfers out (Note 3) (616,710) (23,725)
Benefit payments to annuitants (88) (555)
__________________________
Net Increase (Decrease) from
accumulation unit transactions (615,132) (24,280)
__________________________
(479,059) (18,165)
Net Assets:
Net assets at December 31, 1999 14,110,966 434,350
__________________________
Net assets at June 30, 2000 $ 13,631,907 $ 416,185
===========================
Dreyfus Dreyfus
Third Century Third Century
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 94,754 $ 2,700
Realized capital gain distributions 985,840 30,330
Net realized gain (loss) on investments 122,844 6,920
Net unrealized gain (loss) on investments 2,043,692 55,172
__________________________
Net Increase (Decrease) in net
assets from investment operations 3,247,130 95,122
____________________________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 465,060 165,392
Net contract surrenders
and transfers out (Note 3) (1,294,227) (177,115)
Benefit payments to annuitants (25,445) (1,017)
____________________________
Net Increase (Decrease) from
accumulation unit transactions (854,612) (12,740)
____________________________
2,392,518 82,382
Net Assets:
Net assets at December 31, 1998 11,718,448 351,968
______________________________
Net assets at December 31, 1999 $ 14,110,966 $ 434,350
=============================
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Period Ended June 30, 2000
(Unaudited)
Windsor Windsor
Fund B Fund B
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 11,194 $ 1,863
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (20,800) 33,775
Net unrealized gain (loss) on investments (18,599) (38,336)
__________________________
Net Increase (Decrease) in net assets
from investment operations (28,205) (2,698)
__________________________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 21,060 0
Net contract surrenders
and transfers out (Note 3) (705,101) (570,845)
Benefit payments to annuitants (1,310) (1,071)
__________________________
Net Increase (Decrease) from
accumulation unit transactions (685,351) (571,916)
__________________________
(713,556) (574,614)
Net Assets:
Net assets at December 31, 1999 3,807,176 1,554,058
__________________________
Net assets at June 30, 2000 $ 3,093,620 $ 979,444
===========================
Windsor Windsor
Fund B Fund B
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 116,595 $ 47,291
Realized capital gain distributions 329,655 134,239
Net realized gain (loss) on investments 46,936 26,830
Net unrealized gain (loss) on investments (83,964) (28,929)
__________________________
Net Increase (Decrease) in net
assets from investment operations 409,222 179,431
__________________________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 114,977 0
Net contract surrenders
and transfers out (Note 3) (652,069) (324,781)
Benefit payments to annuitants (2,756) (2,296)
__________________________
Net Increase (Decrease) from
accumulation unit transactions (539,848) (327,077)
__________________________
(130,626) (147,646)
Net Assets:
Net assets at December 31, 1998 3,937,802 1,701,704
__________________________
Net assets at December 31, 1999 $ 3,807,176 $ 1,554,058
===========================
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
INDVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Period Ended June 30, 2000
(Unaudited)
CIGNA High CIGNA High
Yield Fund, Yield Fund, Inc.
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 18,634 50,323
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (10,955) (78)
Net unrealized gain (loss) on investments (32,379) (116,249)
____________ ___________
Net Increase (Decrease) in
net assets from investment operations (24,700) (66,004)
____________ ___________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 1,451
Net contract surrenders
and transfers out (Note 3) (37,083) 0
Benefit payments to annuitants (13,871) 0
____________ ___________
Net Increase (Decrease) from
accumulation unit transactions (50,954) 1,451
____________ ___________
(75,654) (64,553)
Net Assets:
Net assets at December 31, 1999 386,581 966,926
____________ ___________
Net assets at June 30, 2000 $ 310,927 $ 902,373
============================
CIGNA High CIGNA High
Yield Fund, Yield Fund, Inc.
Non-Qualified Non-Qualified
Investment Operations:
Investment income-net $ 40,010 $ 99,277
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (4,869) (27,287)
Net unrealized gain (loss) on investments (29,032) (58,458)
____________ ___________
Net Increase (Decrease)
in net assets from investment operations 6,109 13,532
____________ ___________
Accumulation Unit Transactions:
Net contract considerations
and transfers in (Note 3) 0 0
Net contract surrenders
and transfers out (Note 3) (76,838) (236,703)
Benefit payments to annuitants 0 0
____________ ___________
Net Increase (Decrease) from
accumulation unit transactions (76,838) (236,703)
____________ ___________
(70,729) (223,171)
Net Assets:
Net assets at December 31, 1998 457,310 1,190,097
___________ ___________
Net assets at December 31, 1999 $ 386,581 $ 966,926
============================
The accompanying notes are an integral part of these financial statements.
<PAGE>
LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
Note 1. Organization
Life Insurance Company of North America - Separate Account A (the"Separate
Account"), a separate account of Life Insurance Company of North America
("LINA"), is registered under the Investment Company Act of 1940, as amended, as
a unit investment trust. The Separate Account consists of seven divisions,
corresponding to the specific mutual fund shares underlying the values of such
division. Variable annuity contract payments allocated to the Separate Account,
except as modified by Note 5, are invested by LINA in shares of a designated
mutual fund for allocation to the corresponding Separate Account division. The
current divisions of the Separate Account are designated as follows: Delaware
Group Decatur Fund, Inc., Seligman Growth Fund, Inc., Oppenheimer Multiple
Strategies Fund (formerly Oppenheimer Fund), Windsor Fund, Windsor Fund B,
Dreyfus Third Century Fund, and CIGNA High Yield Fund, Inc. (the "Funds").
Each of the seven mutual fund divisions contains two subdivisions, one for the
tax-qualified and one for the allocation of non-tax qualified variable annuity
contract values. The contract owners' equity is affected by the investment
results of the appropriate mutual fund designated for the subdivision and the
mortality risk and expense fees guarantees assessed on Separate Account assets
(See Note 3).
Under the current provisions of the Internal Revenue Code (the "Code"),
transfers of contract values from one division of the Separate Account to
another division of the Separate Account, or from the Separate Account to the
General Account, are not subject to current taxation. There can be no assurance
that future changes in the Code will not subject such transfers to current
taxation.
Note 2. Significant Accounting Policies
The accompanying financial statements include only the contract owners' payments
pertaining to the variable portion of their contracts, and exclude any payments
for fixed dollar benefits, the latter being included in the general account of
LINA.
Following is a summary of the significant accounting policies of the Separate
Account: (a) the market value investments is based on closing bid prices (net
asset value) at June 30, 2000; (b) investment transactions are accounted for on
the trade date and income is recorded on the ex-dividend date; (c) the cost of
the investments sold is determined on the specific identification method. See
Notes 4 through 6 with respect to income taxes.
<PAGE>
Note 3. Contract Owner Transactions
Net contract considerations represent gross contributions allocated to the
Separate Account by the contract owners less a deduction by LINA for sales and
administrative expenses, death benefits for group contracts and any applicable
premium taxes. These deductions, exclusive of premium taxes, are charged against
the gross contributions and vary as follows: group contracts from 1% to 6%;
individual contracts from 4% to 8.5%. Net contract considerations for the
six-month period ended June 30, 2000 were $59,945 after deductions for sales and
administrative expenses. Contract owners unaffected by Revenue Ruling 81-225
(See Note 5) have limited rights to transfer their investment between the
Separate Account subdivisions and to transfer from and to the General Account of
LINA. Contract owners affected by Revenue Ruling 81-225 have limited rights to
transfer certain contract values to the General Account of LINA to lessen the
impact of the Ruling (See Note 5). The amounts of all transfers for the
six-month period ended June 30, 2000 were as follows:
Transfers between Separate
Account A subdivisions $ 122,175
Transfers from the General
Account $ 1,116
Transfers to the General
Account $ 216,407
LINA charges a fee to each Separate Account subdivision for assuming the
mortality risk and expense fee guarantees. The daily equivalent of the annual
charge of 0.90% is made against the average net asset value of the Separate
Account.
Note 4. Income Taxes
The Separate Account is taxed as part of LINA. For the year ended December 31,
1999, LINA was taxed as a casualty insurance company as part of the consolidated
group of CIGNA Corporation, its ultimate parent. LINA anticipates that, for
calendar year 2000, it will be taxed as a casualty insurance company as part of
CIGNA Corporation's consolidated group. Although LINA may be taxed as a casualty
insurance company, it treats the operations of the Separate Account as if it
were part of a life insurance company. Under the current provisions of the
Internal Revenue Code, no federal income taxes are payable by a company taxed as
a life insurance company with respect to investment income and capital gains of
the assets of a separate account when used to determine contract values. LINA
reserves the right to make adjustments for taxes to the assets of the Separate
Account should future changes in the Internal Revenue Code applicable to life
insurance companies so warrant.
Note 5. Effect of Revenue Ruling 81-225
Revenue Ruling 81-225 was issued by the Internal Revenue Service on September
25, 1981. The Ruling pertains to variable annuities, where the insurance
company, through a separate account, holds mutual funds shares which are also
sold to the public independent of the variable annuity contracts. The Ruling
also questioned the tax treatment of variable annuity contracts where the
underlying mutual funds are not managed by the issuing insurance company or an
affiliate, and where the policyholder may initially allocate and subsequently
reallocate his contract values among several underlying funds.
The Ruling adversely affected the tax status of the Separate Account variable
annuity contracts issued on a non-tax qualified basis after December 31, 1980,
and those issued after September 25, 1981 which were intended to qualify under
Internal Revenue Code Sections 403(a), 403(b) or 408(b).
In order to comply with the IRS opinions expressed in Revenue Ruling 81-225,
allocations to the Separate Account resulting from new purchases were terminated
except as noted below. In addition, LINA suspended new contract sales which
permitted allocations to the Separate Account in both the non-tax qualified and
tax qualified markets described above.
Payments on behalf of individuals who were participants under contracts before
September 25, 1981 may continue to be allocated to the Separate Account where
such contracts were issued to qualify pursuant to Code Sections 403(a), 403(b)
or 408(b), or where the contract owner is not subject to federal income tax.
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Note 6. Diversification Requirements
Under the provisions of Section 817(h) of the Internal Revenue Code, a variable
annuity contract, other than a contract issued in connection with certain types
of employee benefit plans, will not be treated as an annuity contract for
federal tax purposes for any period for which the investments of the segregated
asset account on which the contract is based are not adequately diversified. The
Code provides that the "adequately diversified" requirement may be met if the
underlying investments satisfy either a statutory safe harbor test or
diversification requirements set forth in regulations issued by the Secretary of
Treasury.
The Internal Revenue Service has issued regulations under section 817(h) of the
Code. LINA believes that the Separate Account satisfies the current requirements
of the regulations, and it intends that the Separate Account will continue to
meet such requirements.
Note 7. Accumulation unit transactions
Period Ended June 30, 2000
The changes in the number of accumulation units (the measure of ownership in the
Separate Account) during the six-month period ended June 30, 2000 and units
outstanding at June 30, 2000 were as follows:
Seligman Seligman
Growth Fund Growth Fund
Inc. Inc.
Qualified Non-Qualified
Units outstanding at December 31, 1999 27,027 112,479
Units purchased and transfers in 196 9
Benefits, surrenders and transfers out (66,493) (11,498)
_________ _________
Units outstanding at June 30, 2000 560,730 100,990
========= =========
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Oppenheimer Oppenheimer
Multiple Multiple
Strategie Strategies
Fund Fund
(formerly (formerly
Oppenheim Oppenheimer
Fund ) Fund )
Qualified Non-Qualified
Units outstanding at December 31, 1999 21,783 17,141
Units purchased and transfers in 30 0
Benefits, surrenders and transfers out (19,773) (111)
_________ _________
Units outstanding at June 30, 2000 102,040 17,030
========= =========
Delaware Delaware
Group Group
Decatur Decatur
Fund, Inc Fund, Inc.
Qualified Non-Qualified
Units outstanding at December 31, 1999 16,817 137,069
Units purchased and transfers in 619 0
Benefits, surrenders and transfers out (125,887) (10,906)
_________ _________
Units outstanding at June 30, 2000 391,549 126,163
========= =========
Windsor Windsor
Fund Fund
Qualified Non-Qualified
Units outstanding at December 31, 1999 79,625 96,078
Units purchased and transfers in 6,656 0
Benefits, surrenders and transfers out (64,816) (22,398)
_________ _________
Units outstanding at June 30, 2000 321,465 73,680
========= =========
Dreyfus Dreyfus
Third Century Third Century
Qualified Non-Qualified
Units outstanding at December 31, 1999 67,152 12,832
Units purchased and transfers in 42 0
Benefits, surrenders and transfers out (17,345) (690)
_________ _________
Units outstanding at June 30, 2000 349,849 12,142
========= =========
Windsor Windsor
Fund B Fund B
Qualified Non-Qualified
Units outstanding at December 31, 1999 56,228 63,049
Units purchased and transfers in 1,244 0
Benefits, surrenders and transfers out (30,211) (22,758)
_________ _________
Units outstanding at June 30, 2000 127,261 40,291
========= =========
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CIGNA High CIGNA High
Yield Fund Yield Fund,
Inc. Inc.
Qualified Non-Qualified
Units outstanding at December 31, 1999 56,999 140,410
Units purchased and transfers in 0 130
Benefits, surrenders and transfers out (7,768) 0
_________ _________
Units outstanding at June 30, 2000 49,231 140,540
========= =========
The accumulation units for thirteen of the subdivisions include units applicable
to contract owners who are "on benefit annuitants." At June 30, 2000 the number
of accumulation units, the aggregate value of the subdivisions' equity and the
number of monthly annuity units and value per unit of "on benefit annuitants"
are as follows:
Accumulation Aggregate
Units Value
Seligman Growth Fund, Inc. Qualified 32,698 $877,057
Seligman Growth Fund, Inc. Non-Qualified 7,620 $164,872
Oppenheimer Fund Qualified 2,537 $25,644
Oppenheimer Fund Non-Qualified 1,410 $13,925
Delaware Group Decatur Fund, Inc. Qualified 21,067 $525,935
Delaware Group Decatur Fund, Inc. Non-Qualified 21,711 $526,803
Windsor Fund Qualified 41,323 $864,241
Dreyfus Third Century Qualified 17,550 $683,838
Dreyfus Third Century Non-Qualified 387 $13,265
Windsor Fund B Qualified 10,151 $246,763
Windsor Fund B Non-Qualified 1,298 $31,553
AIM High Yield Qualified 3,728 $23,545
AIM High Yield Non-Qualified 13,282 $85,280
Monthly Annuity
Annuity Unit Unit Value
Seligman Growth Fund, Inc. Qualified 1,340 9.6695175
Seligman Growth Fund, Inc. Non-Qualified 1,008 7.8015449
Oppenheimer Fund Qualified 192 3.6604361
Oppenheimer Fund Non-Qualified 47 3.5774845
Delaware Group Decatur Fund, Inc. Qualified 907 9.1512309
Delaware Group Decatur Fund, Inc. Non-Qualified 544 8.7575823
Windsor Fund Qualified 1,300 7.5760841
Dreyfus Third Century Qualified 636 7.4401168
Dreyfus Third Century Non-Qualified 19 7.3414243
Windsor Fund B Qualified 199 3.0342496
Windsor Fund B Non-Qualified 103 1.9351078
AIM High Yield Qualified 83 3.3555973
AIM High Yield Non-Qualified 501 0.9763728
