<PAGE>
As filed with the Securities and Exchange Commission on April 24, 1998
File No. 2-77283
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------------
FORM N-4
REGISTRATION STATEMENT UNDER SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No.___ /_/
Post-Effective Amendment No. 24 /X/
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT of 1940 /X/
Amendment No. 20 /X/
--------------------------
Penn Mutual Variable Annuity Account III
(Exact Name of Registrant)
--------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY
(Name of Depositor)
--------------------------
600 Dresher Road
Horsham, Pennsylvania 19044
(Address of Principal Executive Offices of Depositor)
Depositor's Telephone Number: 215-956-8000
--------------------------
Richard F. Plush
Vice President, Products and Programs
The Penn Mutual Life Insurance Company
600 Dresher Road
Horsham, Pennsylvania 19044
(Name and Address of Agent for Service)
Copy to:
Richard W. Grant
C. Ronald Rubley
Morgan, Lewis & Bockius LLP
2000 One Logan Square
Philadelphia, PA 19103-6993
--------------------------
It is proposed that this filing will become effective (check appropriate box)
immediately upon filing pursuant to paragraph (b) of Rule 485
---
X on May 1, 1998 pursuant to paragraph (b) of Rule 485
---
60 days after filing pursuant to paragraph (a) of Rule 485
---
on (date) pursuant to paragraph (a) of Rule 485
---
================================================================================
<PAGE>
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Location in Statement of
Form N-4 Item Number Location in Prospectuses Additional Information
- -------------------- ------------------------ ----------------------
<S> <C> <C>
Item 1. Cover Page Cover Page N/A
Item 2. Definitions Special Terms N/A
Item 3. Synopsis Cover Page; Expenses N/A
or Highlights
Item 4. Condensed Condensed Financial N/A
Financial Information
Information
Item 5. General The Penn Mutual Life N/A
Description Insurance Company;
of Registrant, The Separate Account
Depositor and
Portfolio
Companies
Item 6. Deductions The Contract - Deductions N/A
and Expenses and Expenses
Item 7. General The Contract N/A
Description
of Variable
Annuity
Contracts
Item 8. Annuity Period The Contract - Annuity N/A
Options
Item 9. Death Benefit The Contract - Payment N/A
On Death
Item 10. Purchases and The Contract - Purchases; N/A
Contract The Contract - Accumulation
Value Unit Value
Item 11. Redemptions The Contract - Withdrawals N/A
Item 12. Taxes Federal Income Tax N/A
Considerations
Item 13. Legal N/A N/A
Proceedings
</TABLE>
<PAGE>
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Location in Statement of
Form N-4 Item Number Location in Prospectuses Additional Information
- -------------------------- ------------------------- ----------------------
<S> <C> <C>
Item 14. Table of Table of Contents of N/A
Contents of Statement of Additional
Statement of Information
Additional
Information
Item 15. Cover Page N/A Cover Page
Item 16. Table of N/A Cover Page
Contents
Item 17. General N/A N/A
Information
and History
Item 18. Services N/A Administrative and
Recordkeeping
Services; Custodian;
Auditors
Item 19. Purchase of The Contract - Purchases; Distribution of
Securities The Contract - Transfers; Contracts and
Being Offered The Contract - Deductions Certificates
and Expenses
Item 20. Underwriters N/A Distribution of
Contracts and
Certificates
Item 21. Calculation of N/A Performance Data
Performance
Data
Item 22. Annuity N/A Variable Annuity
Payments Payments
Item 23. Financial N/A Financial Statements
Statements
</TABLE>
<PAGE>
PART A
------
Information Required in a Prospectus
------------------------------------
<PAGE>
[LOGO OF PENN MUTUAL APPEARS HERE]
The Penn Mutual Life Insurance Company
Philadelphia, PA 19172
- --------------------------------------------------------------------------------
May 1, 1998
Diversifier II
- --------------------------------------------------------------------------------
Profile Of Penn Mutual Variable Annuity Account III
---------------------------------------------------------------------
This profile is a summary of some of the more important points that you
should consider and know before purchasing the Contracts. The Contracts are
more fully described in the prospectus which accompanies this Profile.
Please read the prospectus carefully.
---------------------------------------------------------------------
1. The Annuity Contracts
- --------------------------------------------------------------------------------
The Contracts offered in this prospectus are a combination variable and
fixed annuity contract ("Variable/Fixed Contract") and a variable annuity
contract ("Variable Contract") between you, the owner, and The Penn Mutual Life
Insurance Company. The Contracts provide a means for you to invest in one or
more of the available investment funds listed in Section 4, or (for the
"Variable/Fixed Contract" only) one or more of the fixed interest accounts
guaranteed and funded by The Penn Mutual Life Insurance Company through its
general account.
You determine (1) the amount and frequency of purchase payments, (2) the
investment funds, (3) transfers between the investment funds, (4) the type of
annuity to be paid after the accumulation period, (5) the beneficiary to whom
death benefits are to be paid, and (6) the amount and frequency of withdrawals.
Purchase payments and investment gains allocated to the variable accounts
vary up and down with the investment experience of the underlying investment
funds. The investment risk is high or low, depending on the variable account
selected. Refer to section 8 to see calendar year performance of the investment
funds which will show you the range of historical returns.
2. Annuity Payments
- --------------------------------------------------------------------------------
You may choose (1) an annuity for a specified number of years, (2) a life
annuity, (3) a life annuity with payments guaranteed for 10 or 20 years, (4) a
joint and survivor life annuity or (5) another form of an annuity that we may
agree upon.
3. Purchase
- --------------------------------------------------------------------------------
The Contracts may be purchased by individuals, corporations and other
business associations. They may be purchased under retirement plans that qualify
for special tax treatment under the Internal Revenue Code (Qualified Plan), or
as a Non-Qualified Plan.
Variable/Fixed Contract Variable Contract
Minimum Minimum Minimum Minimum
Initial Subsequent Initial Subsequent
Payment Payment Payment Payment
-----------------------------------------------------------
Qualified Plan $250 $50 $250 $40
Non-Qualified Plan $2,500 $300 $1,500 $300
4. Investment Options
- --------------------------------------------------------------------------------
Independence Capital Fidelity Investments
Management, Inc. VIP Equity Income Portfolio
Growth Equity Fund VIP Growth Portfolio
Quality Bond Fund VIP II Asset Manager Portfolio
Money Market Fund VIP II Index 500 Portfolio
Neuberger & Berman Management OpCap Advisors
Incorporated Value Equity Fund
AMT Limited Maturity Bond Portfolio Small Capitalization Fund
AMT Balanced Portfolio
AMT Partners Portfolio
American Century Investment T. Rowe Price Associates, Inc.
Management, Inc. Flexibly Managed Fund
VP Capital Appreciation Portfolio High Yield Bond Fund
Morgan Stanley Asset Management Inc. Vontobel USA Inc.
Emerging Markets Equity (Int'l) Portfolio International Equity Fund
Robertson Stephens
Emerging Growth Fund
<PAGE>
5. Expenses
- --------------------------------------------------------------------------------
Each year Penn Mutual deducts a contract administration charge of the lesser
of $30 or 2% of the variable account value. We deduct a daily expense risk
charge equal to an annual rate of 0.5% of the daily net asset value of the
variable account and a daily mortality risk charge equal to an annual rate of
0.75% of the daily net asset value of the variable account. The investment funds
underlying the variable accounts also incur expenses, which range from 0.28% to
1.75% of the fund's average daily value.
A contingent deferred sales charge may be deducted if you make a full or
partial withdrawal. For the Variable/Fixed Contract, the deferred sales charge
will equal:
- -------------------------------------------------
No Purchase Payments After 1st Contract Year
- -------------------------------------------------
Deferred Sales Charge
Withdrawal During as a Percentage of
Contract Year Amount Withdrawn
- -------------------------------------------------
1 7.0%
2 6.0%
3 5.0%
4 4.0%
5 3.0%
6 2.0%
7 1.0%
8 and later No Charge
- -------------------------------------------------
- -------------------------------------------------
Purchase Payments After 1st Contract Year
- -------------------------------------------------
Deferred Sales Charge
Withdrawal During as a Percentage of
Contract Year Amount Withdrawn
- -------------------------------------------------
1 7.0%
2 6.0%
3 5.0%
4 4.0%
5 3.5%
6 3.0%
7 2.5%
8 2.0%
9 1.5%
10 1.0%
11 and later No Charge
- -------------------------------------------------
No deferred sales charge will be made on the portion of the first withdrawal
that does not exceed 10% of the contract value.
For the Variable Contract, the contingent deferred sales charge will be the
lesser of (a) 5% of the purchase payments made for the past seven years or (b)
5% of the amount withdrawn. Under no circumstances will the charge ever exceed
5% of the total purchase payments. No deferred sales charge will be made on the
portion of the first withdrawal that does not exceed purchase payments made one
or more years prior to the withdrawal. Further, no charge will be made under the
Variable Contract on that portion of the first withdrawal in the eighth, ninth
and tenth contract years that does not exceed the following percentages of your
contract value:
Contract Year Percentage
Eighth 25%
Ninth 50%
Tenth 75%
The following table is designed to help you understand the charges in your
Contract. The column "Total Annual Charges" shows the annual percentage charge
for contract administration (which is represented as .05%), insurance charges
and investment charges. The next columns show you two examples of the charges,
in dollars, you would pay under your Contract. The examples assume that you
invested $1,000 in a Contract which earns 5% annually and that you withdraw your
money at the end of the applicable period. The premium tax is assumed to be 0%
in both examples.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Examples:
Total Annual
Expenses at the End of:
Total Total (Variable
Annual Annual Total /Fixed (Variable
Insurance Portfolio Annual Contract) Contract)
Fund Charges Charges Charges 1 Year 1 Year 10 Years
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Growth Equity 1.30% 0.77% 2.07% $86 $68 $242
Value Equity 1.30 0.76 2.06 86 68 241
Flexibly Managed 1.30 0.76 2.06 86 68 241
Small Capitalization 1.30 0.85 2.15 87 68 251
Emerging Growth 1.30 1.15 2.45 90 71 281
International Equity 1.30 1.13 2.43 89 71 279
Quality Bond 1.30 0.75 2.05 86 68 241
High Yield Bond 1.30 0.81 2.11 86 68 247
Money Market 1.30 0.70 2.00 85 67 235
VP Capital Appreciation 1.30 1.00 2.30 88 70 266
AMT Limited Maturity Bond 1.30 0.77 2.07 86 68 242
AMT Balanced 1.30 1.04 2.34 89 70 270
AMT Partners 1.30 0.86 2.16 87 69 252
VIP Equity Income 1.30 0.57 1.87 84 66 221
VIP Growth 1.30 0.67 1.97 85 67 232
VIP II Asset Manager 1.30 0.64 1.94 85 66 229
VIP II Index 500 1.30 0.28 1.58 81 63 190
Emerging Markets
Equity (Int'l) 1.30 1.75 3.05 95 77 339
- --------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
6. Taxes
- --------------------------------------------------------------------------------
Your gains under the Contracts are not taxed until you take them out. If you
take money out, earnings come out first and are taxed as income. If you are
younger than 59 1/2 when you take money out, you may be charged a 10% federal
tax penalty on the earnings. Payments during the income phase are considered
partly a return of your original investment. That part of each payment is not
taxable as income.
7. Withdrawals
- --------------------------------------------------------------------------------
You may withdraw all or part of your money at any time during the accumulation
phase. Once in each contract year on or after the last day of the first contract
year you may withdraw up to 10% of the Contract Value (determined as of the date
of withdrawal) free of the contingent deferred sales charge. A premature
withdrawal charge may be deducted from the money earned on the fixed interest
accounts if you take the money prior to maturity of your fixed interest account.
8. Performance
- --------------------------------------------------------------------------------
The value of the Contract will fluctuate depending upon the investment
performance of the fund(s) you choose. The following chart shows total returns
for each fund for the time periods shown. These numbers reflect the insurance
company charges and the investment charges of the fund, but do not reflect any
withdrawal charges, which would reduce the performance if they were applied.
Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Calendar Year
Fund 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Independence Capital
Growth Equity 25.13% 18.22% 24.83% -9.32% 10.96% 4.55% 33.02% -12.30% 29.60% 11.21%
Quality Bond 6.67 2.82 18.64 -6.49 10.25 5.22 14.15 6.62 11.28 6.13
OpCap Advisors
Value Equity 23.83 23.58 35.73 1.61 5.69 13.38 26.08 -9.30 11.44 27.87
Small Capitalization 21.49 18.25 n/a n/a n/a n/a n/a n/a n/a n/a
T. Rowe Price
Flexibly Managed 14.15 14.85 20.70 2.77 14.28 8.12 20.08 -2.16 19.50 17.29
High Yield Bond 14.33 12.43 14.95 -8.51 18.26 14.33 35.17 -10.03 -1.92 16.35
ICMI/Robertson Stephens
Emerging Growth n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Vontobel
International Equity 9.00 15.37 12.36 -7.51 36.40 n/a n/a n/a n/a n/a
American Century
VP Capital Appreciation -4.48 -5.54 29.46 -2.41 8.94 -2.58 40.09 -2.53 27.19 -3.54
Neuberger & Berman
AMT Limited Maturity Bond 5.41 3.00 9.56 -1.40 5.30 3.86 9.96 6.98 9.39 5.83
AMT Balanced 17.96 5.54 22.22 -4.57 5.13 6.70 21.14 0.67 n/a n/a
AMT Partners 29.77 28.45 35.30 n/a n/a n/a n/a n/a n/a n/a
Fidelity Investments
VIP Equity Income 26.51 12.84 32.56 5.14 16.80 15.41 29.80 -16.35 15.88 21.17
VIP Growth 21.93 13.26 33.68 -1.26 17.87 7.94 43.69 -12.85 29.87 14.13
VIP II Asset Manager 19.15 13.17 15.49 -7.26 19.71 10.30 21.03 5.39 n/a n/a
VIP II Index 500 31.32 21.65 36.01 0.17 8.79 n/a n/a n/a n/a n/a
Morgan Stanley
Emerging Markets Equity (Int'l) -0.95 n/a n/a n/a n/a n/a n/a n/a n/a n/a
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
9. Death Benefit
- --------------------------------------------------------------------------------
If you die prior to the Annuity Date we will pay the beneficiary the
greatest of (1) the sum of all purchase payments, adjusted for withdrawals and
contract transfers, (2) the Contract Value for the period that proof of death is
received or (3) the sum of the Fixed Account Value (if any) on the date of death
and the Variable Account Value as of the contract date or, if later, the most
recent seven-year contract anniversary occurring prior to the Contract Owner's
81st birthday, adjusted for subsequent purchase payments and adjusted for
withdrawals and contract transfers.
If you die after the Annuity Date, the beneficiary may elect to have the
payments continue for the specified or guaranteed period or to receive in lump
sum the present value of the remaining payments.
10. Other Information
- --------------------------------------------------------------------------------
Free Look. If you cancel your Contract within 10 days after receiving it
---------
(or whatever period is required in your state), we will send your money
back without assessing a withdrawal charge. You will receive whatever
your Contract is worth on the day we receive your request. This may be
more or less than your original payment.
No Probate. In most cases, when you die, the person you choose as your
----------
beneficiary will receive the death benefit without going through probate.
Systematic Withdrawals. You can arrange to have up to 10% of your
----------------------
contract value automatically sent to you on a modal basis while your
Contract is still in the accumulation phase. Of course, you'll have to
pay taxes on money you receive.
Disability. Under certain circumstances, you will have the ability to
----------
withdraw your money free from the contingent deferred sales charge if
you become disabled.
Dollar Cost Averaging. You can arrange to have a regular amount of money
---------------------
automatically invested in the investment funds monthly or quarterly.
Automatic Asset Rebalancing. You can elect to have your investments
---------------------------
automatically rebalanced on a quarterly basis to maintain a specified
percentage allocation among your selected investment funds, which will
not include the fixed interest account.
11. Inquiries
- --------------------------------------------------------------------------------
If you need more information, please contact us at:
The Penn Mutual Life Insurance Company
Customer Service Group
Philadelphia, PA 19172
1-800-523-0650
<PAGE>
PROSPECTUS -- MAY 1, 1998
INDIVIDUAL ANNUITY CONTRACTS WITH VARIABLE BENEFIT PROVISIONS--FLEXIBLE
PURCHASE PAYMENTS
- --------------------------------------------------------------------------------
DIVERSIFIER II
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
THE PENN MUTUAL LIFE INSURANCE COMPANY
PHILADELPHIA, PA 19172 . TELEPHONE (215) 956-8000
- --------------------------------------------------------------------------------
This prospectus describes two forms of annuity contracts -- a combination
variable and fixed annuity contract and a variable annuity contract. The
contracts provide for accumulation of values and for the payment of annuities.
Through Penn Mutual Variable Annuity Account III (referred to in this
prospectus as the "Separate Account"), purchase payments and annuity payment
reserves may be invested under the contracts in one or more of the Funds set
forth below.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PENN SERIES FUNDS, INC. MANAGER
<C> <S>
Growth Equity Fund Independence Capital Management,
Inc.
(a wholly owned subsidiary of The
Penn Mutual Life Insurance
Company)
Value Equity Fund OpCap Advisors
Small Capitalization Fund OpCap Advisors
Emerging Growth Fund RS Investment Management, Inc.
Flexibly Managed Fund T. Rowe Price Associates, Inc.
International Equity Fund Vontobel USA Inc.
Independence Capital Management,
Quality Bond Fund Inc.
High Yield Bond Fund T. Rowe Price Associates, Inc.
Independence Capital Management,
Money Market Fund Inc.
- -------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. MANAGER
American Century Investment
Capital Appreciation Portfolio Management, Inc.
- -------------------------------------------------------------------------------
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST MANAGER
Neuberger & Berman Management
Limited Maturity Bond Portfolio Incorporated
Neuberger & Berman Management
Balanced Portfolio Incorporated
Neuberger & Berman Management
Partners Portfolio Incorporated
- -------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE
INSURANCE PRODUCTS FUND MANAGER
Fidelity Management and Research
Growth Portfolio Company
Fidelity Management and Research
Equity Income Portfolio Company
- -------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE
PRODUCTS FUND II MANAGER
Fidelity Management and Research
Asset Manager Portfolio Company
Fidelity Management and Research
Index 500 Portfolio Company
- -------------------------------------------------------------------------------
MORGAN STANLEY UNIVERSAL FUNDS, INC. MANAGER
Emerging Markets Equity (International) Morgan Stanley Asset Management
Portfolio Inc.
</TABLE>
- --------------------------------------------------------------------------------
Contract values and annuity payments based upon investment in one or more of
the investment funds vary in accordance with the investment experience of the
selected Funds.
Under the combination variable and fixed annuity contract, purchasers may
also allocate their contract value to fixed interest accounts funded through
and backed by Penn Mutual's general account.
The variable annuity contract is offered only to owners of a companion fixed
annuity issued by Penn Mutual in prior years.
Under some circumstances, early withdrawals from the combination variable and
fixed annuity contract may be subject to a contingent deferred sales charge
ranging from 7% on withdrawals made in the first contract year down to 1% on
withdrawals made in the tenth contract year and early withdrawals from the
variable annuity contract may be subject to a 5% contingent deferred sales
charge. In addition, early withdrawals from both contracts may be subject to a
10% additional income tax.
The combination variable and fixed annuity contract may be returned within
ten days of receipt for a full refund of the variable account value and a full
refund of purchase payments credited to the fixed interest accounts. The
variable annuity contract may be returned within ten days of receipt for a full
refund of the contract value. Longer free look periods and full refund of
purchase payments are required for contracts sold in some states.
This prospectus sets forth concisely the information a prospective investor
should know before investing. It should be retained for future reference.
A statement of additional information dated the same as this prospectus has
been filed with the Securities and Exchange Commission and is incorporated
herein by reference. It is available, at no charge, by writing The Penn Mutual
Life Insurance Company, Customer Service Group, Philadelphia, PA 19172. Or, you
can call, toll free, 1-800-523-0650. The table of contents of the statement of
additional information is at the end of this prospectus.
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY OR PRECEDED BY A CURRENT
PROSPECTUS FOR EACH APPLICABLE FUND.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
- --------------------------------------------------------------------------------
PROSPECTUS CONTENTS
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
SPECIAL TERMS............................................................... 3
- --------------------------------------------------------------------------------
EXPENSES.................................................................... 4
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION............................................. 8
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY...................................... 14
The Separate Account...................................................... 14
Penn Series Funds, Inc.................................................... 14
American Century Variable Portfolios, Inc................................. 15
Neuberger & Berman Advisers Management Trust.............................. 15
Fidelity Investments' Variable Insurance Products Fund.................... 16
Fidelity Investments' Variable Insurance Products Fund II................. 16
Morgan Stanley Universal Funds, Inc....................................... 16
- --------------------------------------------------------------------------------
THE CONTRACTS............................................................... 16
Purchases................................................................. 17
Accumulation Units........................................................ 17
Annuity Payments.......................................................... 18
Payment on Death.......................................................... 18
Transfers................................................................. 19
Withdrawals............................................................... 19
Deferment of Payments and Transfers....................................... 20
Deductions and Expenses................................................... 20
- --------------------------------------------------------------------------------
THE FIXED INTEREST OPTIONS.................................................. 22
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX CONSIDERATIONS........................................... 23
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION CONTENTS................................ 25
- --------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
- --------------------------------------------------------------------------------
SPECIAL TERMS
As used in this prospectus, the following terms have the indicated meaning:
ACCUMULATION UNIT: With respect to the Variable/Fixed Contract, a unit of
measure used to compute the Variable Account Value prior to the Annuity
Date; with respect to the Variable Contract, a unit of measure used to
compute the Contract Value prior to the Annuity Date.
ANNUITANT: The person during whose life annuity payments are made.
ANNUITY DATE: The date on which annuity payments start.
CONTRACT: The combination variable and fixed annuity contract or the
variable annuity contract described in this prospectus.
CONTRACT OWNER: The person specified in the Contract as the contract owner.
CONTRACT VALUE: With respect to the Variable/Fixed Contract, the sum of the
Variable Account Value and the Fixed Account Value; with respect to the
Variable Contract, the value of amounts held under the Contract in all
subaccounts of the Separate Account.
FIXED ACCOUNT VALUE: The value of amounts held under the Variable/Fixed
Contract in all fixed interest options.
SEPARATE ACCOUNT: Penn Mutual Variable Annuity Account III, a separate
account of The Penn Mutual Life Insurance Company that is registered as a
unit investment trust under the Investment Company Act of 1940.
VARIABLE ACCOUNT VALUE: The value of amounts held under the Variable/Fixed
Contract in all subaccounts of the Separate Account.
VARIABLE CONTRACT: The variable annuity contract described in this
prospectus.
VARIABLE/FIXED CONTRACT: The combination variable and fixed annuity
contract described in this prospectus.
WE: A reference to "we" or "us" denotes The Penn Mutual Life Insurance
Company.
3
<PAGE>
- -------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
CONTRACT OWNER TRANSACTION EXPENSES
Sales Load Imposed on Purchase Payments............................... None
Maximum Contingent Deferred Sales Load
Variable/Fixed Contract.............................................. 7%*
Variable Contract.................................................... 5%**
Exchange Fee.......................................................... None
MAXIMUM ANNUAL CONTRACT ADMINISTRATION CHARGE......................... $30
SEPARATE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF VARIABLE ACCOUNT
VALUE)
Mortality and Expense Risk Charge..................................... 1.25%
Account Fees and Expenses............................................. None
-----
Total Separate Account Annual Expenses................................ 1.25%
</TABLE>
- -----------------------
* As a percentage of the amount withdrawn, provided the charge will never be
more than 8 1/2% of the total of all purchase payments credited to the
Separate Account. After the first contract year, the charge will not be
made on the first withdrawal in a contract year to the extent the
withdrawal does not exceed 10% of the contract value. See "Deductions and
Expenses" in this prospectus for information on the decline in the
percentage charge over time and other limitations on the charge.
** As a percentage of the sum of all purchase payments made within seven years
of withdrawal or as a percentage of the amount withdrawn, whichever is
less. The charge will not be made on that portion of the first withdrawal
in a contract year that does not exceed 10% of purchase payments made one
year or more prior to the withdrawal. See "Deductions and Expenses" in this
prospectus for information on the decline in the percentage charge over
time and other limitations on the charge.
- -------------------------------------------------------------------------------
PENN SERIES FUNDS, INC.**
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT ADMINISTRATIVE TOTAL
FEES (AFTER AND CORPORATE ACCOUNTING OTHER FUND
WAIVER) SERVICES FEES FEES EXPENSES EXPENSES
----------- -------------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Growth Equity........... 0.50% 0.15% 0.07% 0.05% 0.77%
Value Equity............ 0.50% 0.15% 0.06% 0.05% 0.76%
Small Capitalization.... 0.50% 0.15% 0.10% 0.10% 0.85%
Emerging Growth......... 0.80% 0.15% 0.08% 0.12% 1.15%
Flexibly Managed........ 0.50% 0.15% 0.05% 0.06% 0.76%
International Equity.... 0.75% 0.15% 0.08% 0.15% 1.13%
Quality Bond............ 0.45% 0.15% 0.08% 0.07% 0.75%
High Yield Bond......... 0.50% 0.15% 0.08% 0.08% 0.81%
Money Market............ 0.40% 0.15% 0.08% 0.07% 0.70%
</TABLE>
- -----------------------
** The expenses presented are for the last fiscal year. In the absence of
voluntary fee waivers by the investment adviser and administrator of the
Fund, the total expenses of the Emerging Growth Fund would have been 1.41%.
4
<PAGE>
- -------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES 12B-1 FEES EXPENSES EXPENSES
---------- ---------- -------- ----------
<S> <C> <C> <C> <C>
Capital Appreciation.................. 1.00% None None 1.00%
</TABLE>
- -------------------------------------------------------------------------------
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST***
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT,
ADVISORY AND
ADMINISTRATION OTHER TOTAL FUND
FEES EXPENSES EXPENSES
-------------- -------- ----------
<S> <C> <C> <C>
Limited Maturity Bond........................ 0.65% 0.12% 0.77%
Balanced..................................... 0.85% 0.19% 1.04%
Partners Fund................................ 0.80% 0.06% 0.86%
</TABLE>
- -----------------------
*** Neuberger & Berman Advisers Management Trust (the "Trust") is divided into
portfolios ("Portfolios"), each of which invests all of its net investable
assets in a corresponding series ("Series") of Advisers Managers Trust.
Expenses in the table reflect expenses of the Portfolios and include each
Portfolio's pro rata portion of the operating expenses of each Portfolio's
corresponding Series. The Portfolios pay Neuberger & Berman Management
Inc. ("NBMI") an administration fee based on the Portfolio's net asset
value. Each Portfolio's corresponding Series pays NBMI a management fee
based on the Series' average daily net assets. Accordingly, this table
combines management fees at the Series level and administration fees at
the Portfolio level in a unified fee rate. Total Annual Expenses for each
portfolio have been restated based upon current administration fees for
the Portfolio and management fees for its corresponding Series. See
"Expenses" in the Trust's Prospectus.
- -------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND++
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES EXPENSES EXPENSES
---------- -------- ----------
<S> <C> <C> <C>
Equity-Income.................................... 0.50% 0.07% 0.57%
Growth........................................... 0.60% 0.07% 0.67%
</TABLE>
- -----------------------
++ The expenses presented are for the last fiscal year. A portion of the
brokerage commissions the Fund paid was used to reduce its expenses.
Without this reduction, total expenses would have been 0.58% for the Equity
Income Portfolio and 0.69% for the Growth Portfolio.
- -------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND II
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES EXPENSES EXPENSES
---------- --------- ----------
<S> <C> <C> <C>
++Asset Manager................................. 0.55% 0.09% 0.64%
+++Index 500.................................... 0.24% 0.04% 0.28%
</TABLE>
- -----------------------
++ The expenses presented are for the last fiscal year. A portion of the
brokerage commissions the Fund paid was used to reduce its expenses. Without
this reduction, total expenses would have been 0.65% for the Asset Manager
Portfolio.
+++ The expenses presented are for the last fiscal year. In the absence of
voluntary fee waivers by the investment adviser, total expenses would have
been 0.40% for the Index 500 Portfolio.
- -------------------------------------------------------------------------------
MORGAN STANLEY UNIVERSAL FUNDS, INC.
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL FUND
FEES EXPENSES EXPENSES
---------- -------- ----------
<S> <C> <C> <C>
Emerging Markets Equity (International) 1.25% 0.50% 1.75%
Portfolio......................................
</TABLE>
- -----------------------
The purpose of this foregoing table is to assist Contract Owners in
understanding the various costs and expenses that a Contract Owner will bear
directly and indirectly. The table shows Contract expenses and underlying Fund
expenses. See the
5
<PAGE>
accompanying prospectuses of Penn Series Funds, Inc., American Century Variable
Portfolios, Inc., Neuberger & Berman Advisers Management Trust, Fidelity
Investments' Variable Insurance Products Fund, Fidelity Investments' Variable
Insurance Products Fund II and Morgan Stanley Universal Funds, Inc. for
information on expenses.
Premium taxes may be applicable. See Deductions and Expenses in this
prospectus.
- --------------------------------------------------------------------------------
EXAMPLE
If you own a Variable/Fixed Contract, make purchase payments only during the
first year and surrender your contract at the end of the applicable period, you
would pay the following expenses on each $1,000 invested, assuming 5% annual
return on assets:
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund.......................... $86 $115 $144 $242
Penn Series Value Equity Fund........................... $86 $114 $143 $241
Penn Series Small Capitalization Fund................... $87 $117 $148 $251
Penn Series Emerging Growth Fund........................ $90 $126 $162 $281
Penn Series Flexibly Managed Fund....................... $86 $114 $143 $241
Penn Series International Equity Fund................... $89 $125 $161 $279
Penn Series Quality Bond Fund........................... $86 $114 $143 $241
Penn Series High Yield Bond Fund........................ $86 $116 $146 $247
Penn Series Money Market Fund........................... $85 $113 $140 $235
American Century Capital Appreciation Portfolio......... $88 $121 $155 $266
Neuberger & Berman Limited Maturity Bond Portfolio...... $86 $115 $144 $242
Neuberger & Berman Balanced Portfolio................... $89 $122 $157 $270
Neuberger & Berman Partners Portfolio................... $87 $117 $148 $252
Fidelity's Growth Portfolio............................. $85 $112 $139 $232
Fidelity's Equity Income Portfolio...................... $84 $109 $134 $221
Fidelity's Asset Manager Portfolio...................... $85 $111 $137 $229
Fidelity's Index 500 Portfolio.......................... $81 $100 $119 $190
Morgan Stanley Emerging Markets Equity (International)
Portfolio.............................................. $95 $143 $191 $339
</TABLE>
- --------------------------------------------------------------------------------
EXAMPLE
If you own a Variable/Fixed Contract, make purchase payments in any contract
year after the first and surrender your contract at the end of the applicable
period, you would pay the following expenses on each $1,000 invested on the
date the Contract was purchased, assuming 5% annual return on assets:
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund.......................... $86 $115 $149 $254
Penn Series Value Equity Fund........................... $86 $114 $148 $253
Penn Series Small Capitalization Fund................... $87 $117 $153 $263
Penn Series Emerging Growth Fund........................ $90 $126 $167 $293
Penn Series Flexibly Managed Fund....................... $86 $114 $148 $253
Penn Series International Equity Fund................... $89 $125 $166 $291
Penn Series Quality Bond Fund........................... $86 $114 $148 $253
Penn Series High Yield Bond Fund........................ $86 $116 $151 $259
Penn Series Money Market Fund........................... $85 $113 $145 $247
American Century Capital Appreciation Portfolio......... $88 $121 $160 $278
Neuberger & Berman Limited Maturity Bond Portfolio...... $86 $115 $149 $254
Neuberger & Berman Balanced Portfolio................... $89 $122 $162 $282
Neuberger & Berman Partners Portfolio................... $87 $117 $153 $264
Fidelity's Growth Portfolio............................. $85 $112 $144 $244
Fidelity's Equity Income Portfolio...................... $84 $109 $139 $234
Fidelity's Asset Manager Portfolio...................... $85 $111 $142 $241
Fidelity's Index 500 Portfolio.......................... $81 $100 $124 $202
Morgan Stanley Emerging Markets Equity (International)
Portfolio.............................................. $95 $143 $196 $350
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
EXAMPLE
If you own a Variable Contract and surrender your contract at the end of the
applicable period, you would pay the following expenses on each $1,000
invested, assuming 5% annual return on assets:
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund.......................... $68 $115 $162 $242
Penn Series Value Equity Fund........................... $68 $115 $162 $241
Penn Series Small Capitalization Fund................... $68 $117 $167 $251
Penn Series Emerging Growth Fund........................ $71 $126 $182 $281
Penn Series Flexibly Managed Fund....................... $68 $115 $162 $241
Penn Series International Equity Fund................... $71 $125 $181 $279
Penn Series Quality Bond Fund........................... $68 $115 $162 $241
Penn Series High Yield Bond Fund........................ $68 $116 $165 $247
Penn Series Money Market Fund........................... $67 $113 $159 $235
American Century Capital Appreciation Portfolio......... $70 $122 $174 $266
Neuberger & Berman Limited Maturity Bond Portfolio...... $68 $115 $162 $242
Neuberger & Berman Balanced Portfolio................... $70 $123 $176 $270
Neuberger & Berman Partners Portfolio................... $69 $118 $167 $252
Fidelity's Growth Portfolio............................. $67 $112 $157 $232
Fidelity's Equity Income Portfolio...................... $66 $109 $152 $221
Fidelity's Asset Manager Portfolio...................... $66 $111 $156 $229
Fidelity's Index 500 Portfolio.......................... $63 $100 $137 $190
Morgan Stanley Emerging Markets Equity (International)
Portfolio.............................................. $77 $143 $211 $339
</TABLE>
- --------------------------------------------------------------------------------
EXAMPLE
If you own either a Variable/Fixed Contract or a Variable Contract and do not
surrender your contract, or you elect an annuity option at the end of the
applicable time period, you would pay the following expenses on each $1,000
invested, assuming 5% annual return on assets:
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund.......................... $21 $66 $112 $242
Penn Series Value Equity Fund........................... $21 $65 $112 $241
Penn Series Small Capitalization Fund................... $22 $68 $117 $251
Penn Series Emerging Growth Fund........................ $25 $77 $132 $281
Penn Series Flexibly Managed Fund....................... $21 $65 $112 $241
Penn Series International Equity Fund................... $25 $76 $131 $279
Penn Series Quality Bond Fund........................... $21 $65 $112 $241
Penn Series High Yield Bond Fund........................ $22 $67 $115 $247
Penn Series Money Market Fund........................... $21 $63 $109 $235
American Century Capital Appreciation Portfolio......... $24 $72 $124 $266
Neuberger & Berman Limited Maturity Bond Portfolio...... $21 $66 $112 $242
Neuberger & Berman Balanced Portfolio................... $24 $74 $126 $270
Neuberger & Berman Partners Portfolio................... $22 $68 $117 $252
Fidelity's Growth Portfolio............................. $20 $62 $107 $232
Fidelity's Equity Income Portfolio...................... $19 $59 $102 $221
Fidelity's Asset Manager Portfolio...................... $20 $62 $106 $229
Fidelity's Index 500 Portfolio.......................... $16 $50 $87 $190
Morgan Stanley Emerging Markets Equity (International)
Portfolio.............................................. $31 $95 $161 $339
</TABLE>
The examples are based upon data for the fiscal year ended December 31, 1997
and assume an average Variable Account Value or Contract Value of approximately
$9,161. THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES UNDER YOUR CONTRACT; ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN
THOSE SHOWN.
7
<PAGE>
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
The following tables show Accumulation Unit values and the number of
Accumulation Units outstanding for each of the subaccounts of the Separate
Account for the specified periods. The financial data included in the tables
should be read in conjunction with the financial statements and the related
notes included in the Statement of Additional Information.
- --------------------------------------------------------------------------------
PENN SERIES GROWTH EQUITY FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period for Qualified
and Nonqualified Retirement Plans
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993
- ---------------------------------------------------------------------------------------------------------------------
NON- NON- NON- NON- NON-
QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation
Unit Value,
beginning of
period......... $ 38.550 $ 38.235 $ 32.596 $ 32.327 $ 26.102 $ 25.887 $ 28.766 $ 28.528 $ 25.906 $ 25.692
Accumulation
Unit Value, end
of period...... $ 48.256 $ 47.859 $ 38.550 $ 38.235 $ 32.596 $ 32.327 $ 26.102 $ 25.887 $ 28.766 $ 28.528
Number of
Accumulation
Units
outstanding,
end of period.. 1,794,481 617,717 1,830,081 620,903 1,991,646 674,290 2,119,836 717,328 2,042,023 685,110
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
1992
- ---------------------------------------------------------------------------------------------------------------------
NON-
QUAL QUAL
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Accumulation
Unit Value,
beginning of
period......... $ 24.756 $ 24.552
Accumulation
Unit Value, end
of period...... $ 25.906 $ 25.692
Number of
Accumulation
Units
outstanding,
end of period.. 2,004,015 669,679
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------
1991 1990 1989 1988
- ---------------------------------------------------------------------------------------------------------
NON- NON- NON- NON-
QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period.... $ 18.605 $ 18.451 $ 21.204 $ 21.029 $ 16.356 $ 16.221 $ 14.702 $ 14.581
Accumulation Unit Value,
end of period.......... $ 24.756 $ 24.552 $ 18.605 $ 18.451 $ 21.204 $ 21.029 $ 16.356 $ 16.221
Number of Accumulation
Units outstanding, end
of period.............. 1,680,322 518,717 1,470,210 439,287 1,284,583 333,486 1,309,408 360,185
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(a)Growth Stock Fund Subaccount prior to November 1, 1992.
8
<PAGE>
- --------------------------------------------------------------------------------
PENN SERIES VALUE EQUITY FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit
Value, beginning of
period............. $ 30.819 $ 24.928 $ 18.361 $ 18.062 $ 17.080 $ 15.058 $ 11.939 $ 13.157 $ 11.802 $ 9.226
Accumulation Unit
Value, end of
period............. $ 38.038 $ 30.819 $ 24.928 $ 18.361 $ 18.062 $ 17.080 $ 15.058 $ 11.939 $ 13.157 $11.802
Number of
Accumulation Units
outstanding, end of
period............. 5,409,879 4,907,784 4,235,839 3,886,404 3,693,652 2,865,294 2,207,661 1,883,581 1,802,897 918,020
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(a)Equity Income Fund Subaccount prior to November 1, 1992.
- --------------------------------------------------------------------------------
PENN SERIES SMALL CAPITALIZATION FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(A)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period...... $ 13.211 $ 11.171 $ 10.000
Accumulation Unit Value, end of period............ $ 16.051 $ 13.211 $ 11.171
Number of Accumulation Units outstanding, end of
period........................................... 1,104,032 587,385 137,653
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
PENN SERIES EMERGING GROWTH FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997(A)
- -------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period........... $ 10.000
Accumulation Unit Value, end of period................. $ 13.806
Number of Accumulation Units outstanding, end of
period................................................ 308,169
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
9
<PAGE>
- --------------------------------------------------------------------------------
PENN SERIES FLEXIBLY MANAGED FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit
Value, beginning of
period............. $ 49.262 $ 42.865 $ 35.496 $ 34.514 $ 30.179 $ 27.893 $ 23.215 $ 23.712 $ 19.832 $16.898
Accumulation Unit
Value, end of
period............. $ 56.265 $ 49.262 $ 42.865 $ 35.496 $ 34.514 $ 30.179 $ 27.893 $ 23.215 $ 23.712 $19.832
Number of
Accumulation Units
outstanding, end of
period............. 5,974,993 5,711,843 4,946,240 4,198,305 3,143,601 2,327,829 1,664,751 1,237,347 1,129,858 853,647
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(a)Capital Appreciation Fund Subaccount prior to November 1, 1992.
- --------------------------------------------------------------------------------
PENN SERIES INTERNATIONAL EQUITY FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992(A)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period.... $ 16.659 $ 14.434 $ 12.843 $ 13.880 $ 10.175 $10.000
Accumulation Unit Value,
end of period.......... $ 18.164 $ 16.659 $ 14.434 $ 12.843 $ 13.880 $10.175
Number of Accumulation
Units outstanding, end
of period.............. 4,155,960 4,012,762 3,388,479 3,556,098 1,847,892 92,386
- ----------------------------------------------------------------------------------------
</TABLE>
(a)For the period November 2, 1992 (date subaccount was established) through
December 31, 1992.
- --------------------------------------------------------------------------------
PENN SERIES QUALITY BOND FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit
Value, beginning of
period............... $ 18.990 $ 18.465 $ 15.562 $ 16.639 $ 15.088 $ 14.336 $ 12.558 $ 11.776 $10.580 $ 9.968
Accumulation Unit
Value, end of period. $ 20.260 $ 18.990 $ 18.465 $ 15.562 $ 16.639 $ 15.088 $ 14.336 $ 12.558 $11.776 $10.580
Number of Accumulation
Units outstanding,
end of period........ 1,497,635 1,664,378 1,869,975 1,890,869 1,953,188 1,337,087 1,229,163 1,075,187 769,467 274,657
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(a)Fixed Income Fund Subaccount prior to November 1, 1992.
10
<PAGE>
- --------------------------------------------------------------------------------
PENN SERIES HIGH YIELD BOND FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period.... $ 29.276 $ 26.033 $ 22.644 $ 24.742 $ 20.918 $18.291 $13.534 $15.035 $15.325 $13.193
Accumulation Unit Value,
end of period.......... $ 33.476 $ 29.276 $ 26.033 $ 22.644 $ 24.742 $20.918 $18.291 $13.534 $15.035 $15.325
Number of Accumulation
Units outstanding,
end of period.......... 1,261,904 1,185,318 1,194,944 1,264,890 1,257,271 705,414 594,530 613,408 817,147 708,838
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
PENN SERIES MONEY MARKET FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period.... $ 18.817 $ 18.148 $ 17.416 $17.003 $16.791 $16.491 $15.732 $14.893 $13.844 $13.089
Accumulation Unit Value,
end of period.......... $ 19.541 $ 18.817 $ 18.148 $17.416 $17.003 $16.791 $16.491 $15.732 $14.893 $13.844
Number of Accumulation
Units outstanding,
end of period.......... 1,120,603 1,192,388 1,062,385 825,274 658,620 698,584 769,958 965,117 753,052 319,671
</TABLE>
- --------------------------------------------------------------------------------
AMERICAN CENTURY CAPITAL APPRECIATION PORTFOLIO SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- --------------------------------------------------------------------------------
1997 1996 1995 1994 1993 (B)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period...... $ 13.282 $ 14.057 $ 10.857 $ 11.124 $ 10.000
Accumulation Unit Value,
end of period............ $ 12.690 $ 13.282 $ 14.057 $ 10.857 $ 11.124
Number of Accumulation
Units outstanding, end of
period................... 1,567,237 2,183,381 2,157,888 1,791,799 716,404
- --------------------------------------------------------------------------------
</TABLE>
(a)TCI Growth Portfolio Subaccount prior to May 1, 1997.
(b)For the period May 1, 1993 (date subaccount was established) through
December 31, 1993.
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN LIMITED MATURITY BOND PORTFOLIO SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- --------------------------------------------------------------------------------
1997 1996 1995 1994 1993 (A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value, beginning
of period........................ $ 11.330 $ 10.999 $ 10.039 $ 10.181 $ 10.000
Accumulation Unit Value, end of
period........................... $ 11.943 $ 11.330 $ 10.999 $ 10.039 $ 10.181
Number of Accumulation Units
outstanding, end of period....... 465,682 459,223 444,986 448,825 311,665
- --------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1993 (date subaccount was established) through
December 31, 1993.
11
<PAGE>
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN BALANCED PORTFOLIO SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- --------------------------------------------------------------------------------
1997 1996 1995 1994 1993 (A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period...... $ 13.182 $ 12.488 $ 10.218 $ 10.706 $ 10.000
Accumulation Unit Value,
end of period............ $ 15.551 $ 13.182 $ 12.488 $ 10.218 $ 10.706
Number of Accumulation
Units outstanding, end of
period................... 1,466,154 1,535,496 1,468,254 1,223,496 621,326
- --------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1993 (date subaccount was established) through
December 31, 1993.
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN PARTNER'S PORTFOLIO SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997(A)
- -------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period........... $ 10.000
Accumulation Unit Value, end of period................. $ 12.411
Number of Accumulation Units outstanding, end of
period................................................ 665,382
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' EQUITY INCOME FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- --------------------------------------------------------------------------------
1997 1996 1995(A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period.... $ 13.453 $ 11.920 $ 10.000
Accumulation Unit Value, end of period.......... $ 17.021 $ 13.453 $ 11.920
Number of Accumulation Units outstanding, end of
period......................................... 3,352,648 2,498,343 581,691
- --------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' GROWTH FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- --------------------------------------------------------------------------------
1997 1996 1995(A)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period.... $ 14.000 $ 12.359 $ 10.000
Accumulation Unit Value, end of period.......... $ 17.073 $ 14.000 $ 12.359
Number of Accumulation Units outstanding, end of
period......................................... 3,157,234 2,620,543 690,602
- --------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1995 (date subaccount was established) through
December 31, 1995.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' ASSET MANAGER FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997 1996 1995(A)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Accumulation Unit Value, beginning of period........... $12.623 $11.153 $10.000
Accumulation Unit Value, end of period................. $15.040 $12.623 $11.153
Number of Accumulation Units outstanding, end of
period................................................ 577,711 383,267 117,290
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1995 (date subaccount was established) through
December 31, 1995.
12
<PAGE>
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' INDEX 500 FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997(A)
- -------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period........... $ 10.000
Accumulation Unit Value, end of period................. $ 12.162
Number of Accumulation Units outstanding, end of
period................................................ 703,585
- -------------------------------------------------------------------------------
</TABLE>
(a)For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
- --------------------------------------------------------------------------------
MORGAN STANLEY EMERGING MARKETS EQUITY (INTERNATIONAL) FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------
1997(A)
- -------------------------------------------------------------------------------
<S> <C>
Accumulation Unit Value, beginning of period........... $ 10.000
Accumulation Unit Value, end of period................. $ 8.975
Number of Accumulation Units outstanding, end of
period................................................ 248,001
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</TABLE>
(a)For the period May 1, 1997 (date subaccount was established) through
December 31, 1997.
The financial statements of the Separate Account for the year ended December
31, 1997 are included in the statement of additional information referred to on
the cover page of this prospectus.
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In advertisements of the Contracts, Penn Mutual may provide information on
total return performance and on annual changes in accumulation unit values. We
may also provide information on "yields" and "effective yields" on investments
in the Money Market Fund subaccount.
Information on total return performance will include average annual rates of
total return for one, five and ten year periods, or lesser periods depending on
how long the subaccount has been in existence. Average annual total return
figures will show the average annual rates of increase or decrease in
investments in the subaccounts, assuming a $1,000 investment at the beginning
of the period, withdrawal of the investment at the end of the period, and the
deduction of all applicable charges. We may also show average annual rates of
total return, assuming other amounts invested at the beginning of the period
and no withdrawal at the end of the period. Average annual total return figures
which assume no withdrawal at the end of the period will reflect all recurring
charges, but will not reflect the contingent deferred sales charge (if
applicable, the contingent deferred sales charge would reduce the amount that
may be withdrawn under the Contracts).
The "yield" on an investment in the Money Market Fund subaccount refers to
the income generated by the investment over a 7-day period. This income is then
annualized. That is, the amount of income generated by the investment during
that week is assumed to be generated each week over a 52-week period and is
shown as a percentage of the investment. The "effective yield" is calculated
similarly but, when annualized, the income earned by an investment in the
subaccount is assumed to be reinvested. The effective yield will be slightly
higher than the yield because of the compounding effect of this assumed
reinvestment.
13
<PAGE>
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THE PENN MUTUAL LIFE INSURANCE COMPANY
The Penn Mutual Life Insurance Company ("Penn Mutual") is a Pennsylvania mutual
life insurance company. We were chartered in 1847 and have been continuously
engaged in the life insurance business since that date. Our home office is
located at 600 Dresher Road, Horsham, PA 19044 and our mailing address is The
Penn Mutual Life Insurance Company, Philadelphia, PA 19172.
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THE SEPARATE ACCOUNT
Penn Mutual Variable Annuity Account III was established as a separate account
of Penn Mutual on April 13, 1982. The Separate Account is registered with the
Securities and Exchange Commission as a unit investment trust under the
Investment Company Act of 1940 and qualifies as a "separate account" within the
meaning of the federal securities laws.
The Separate Account is divided into subaccounts for investments in
investment portfolios of Penn Series Funds, Inc., American Century Variable
Portfolios, Inc., Neuberger & Berman Advisers Management Trust, Fidelity
Investments' Variable Insurance Products Fund, Variable Insurance Products Fund
II and Morgan Stanley Universal Funds, Inc. In addition, there are two
subaccounts for investment in shares of the Growth Equity Fund of Penn Series
Funds, Inc.--one for Contracts which were issued in connection with tax
qualified retirement plans and one for Contracts which were not issued in
connection with such plans. Income, gains and losses, realized or unrealized,
of a subaccount are credited to or charged against the subaccount without
regard to any other income, gains or losses of Penn Mutual. Assets equal to the
reserves and other contract liabilities with respect to each subaccount are not
chargeable with liabilities arising out of any other business of Penn Mutual.
Penn Mutual is obligated to pay all benefits and make all payments provided
under the Contracts.
Assets held in the Separate Account under the Contracts described in this
prospectus are invested, at the direction of the Contract Owner, in one or more
Funds of Penn Series Funds, Inc., American Century Variable Portfolios, Inc.,
Neuberger & Berman Advisers Management Trust, Fidelity Investments' Variable
Insurance Products Fund, Fidelity Instruments' Variable Insurance Products Fund
II and Morgan Stanley Universal Funds, Inc.
Under the Investment Company Act of 1940, as currently interpreted, Contract
Owners and persons receiving annuity payments have the right to instruct Penn
Mutual as to the voting of the various Fund shares held in the Separate Account
pursuant to the Contracts. The number of shares of a Fund for which voting
instructions may be given by a Contract Owner is determined by dividing the
Contract Owner's interest in the applicable subaccount of the Separate Account
by the net asset value per share of the Fund. The number of shares of a Fund
for which voting instructions may be given by a person receiving annuity
payments is determined by dividing the reserve allocated to the applicable
subaccount by the net asset value per share of the Fund. Should the applicable
law, or interpretations thereof, change so as to permit us to vote shares of
the mutual funds in our own right, we may elect to do so. Further, we reserve
the right to modify the manner in which we calculate the weight to be given to
pass through voting instructions where such a change is necessary to comply
with federal law or interpretations thereof.
Shares of Penn Series are sold not only to the Separate Account, but also to
other separate accounts of Penn Mutual and its subsidiary, The Penn Insurance
and Annuity Company, that fund benefits under variable annuity and variable
life insurance contracts. Shares of American Century Variable Portfolios, Inc.,
Neuberger & Berman Advisers Management Trust, Fidelity Investments' Variable
Insurance Products Fund, Variable Insurance Products Fund II and Morgan Stanley
Universal Funds, Inc. are offered not only to variable annuity and variable
life separate accounts of Penn Mutual, but also to such accounts of other
insurance companies unaffiliated with Penn Mutual and, in the case of Neuberger
& Berman Advisers Management Trust, directly to qualified pension and
retirement plans. For a discussion of possible conflicts involved in the
Separate Account investing in Funds that are so offered, see the accompanying
Fund prospectuses.
Like other business organizations and individuals around the world, the
Separate Account could be adversely affected if the computer systems do not
properly process and calculate date-related information from and after January
1, 2000. This is commonly known as the "Year 2000 Problem." Penn Mutual is
taking steps that it believes are reasonably designed to address the Year 2000
Problem with respect to the computer systems that it uses and to obtain
satisfactory assurances that comparable steps are being taken by the Separate
Account's major service providers. At this time, however, there can be no
assurance that these steps will be sufficient to avoid any adverse impact on
the Separate Account.
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PENN SERIES FUNDS, INC.:
GROWTH EQUITY FUND - seeks long term growth of capital and increase of future
income by investing primarily in common stocks of well established growth
companies;
14
<PAGE>
VALUE EQUITY FUND - seeks to maximize total return (capital appreciation and
income) primarily by investing in equity securities of companies believed to be
undervalued considering such factors as assets, earnings, growth potential and
cash flows;
SMALL CAPITALIZATION FUND - seeks capital appreciation through investment in
a diversified portfolio of securities consisting primarily of equity securities
of companies with market capitalizations under $1 billion.
EMERGING GROWTH FUND - seeks capital appreciation by investing primarily in
common stocks of emerging growth companies with above-average growth prospects;
FLEXIBLY MANAGED FUND - seeks to maximize total return (capital appreciation
and income) by investing in common stocks, other equity securities, corporate
debt securities, and/or short term reserves, in proportions considered
appropriate in light of the availability of attractively valued individual
securities and current and expected economic and market conditions;
INTERNATIONAL EQUITY FUND - seeks to maximize capital appreciation by
investing in a carefully selected diversified portfolio consisting primarily of
equity securities. The investments will consist principally of equity
securities of European and Pacific Basin countries;
QUALITY BOND FUND - seeks the highest income over the long term consistent
with the preservation of principal through investment primarily in marketable
investment grade debt securities;
HIGH YIELD BOND FUND - seeks high current income by investing primarily in a
diversified portfolio of long term high-yield/high-risk fixed income securities
in the medium to lower quality ranges; capital appreciation is a secondary
objective; such securities, which are commonly referred to as "junk" bonds,
generally involve greater risks of loss of income and principal than higher
rated securities (see accompanying Penn Series prospectus);
MONEY MARKET FUND - seeks to preserve capital, maintain liquidity and achieve
the highest possible level of current income consistent therewith, by investing
in high quality money market instruments; an investment in the Fund is neither
insured nor guaranteed by the U.S. Government and there can be no assurance
that the Fund will be able to maintain a stable net asset value of $1.00 per
share;
Independence Capital Management, Inc., Horsham, Pennsylvania, is investment
adviser to each of the Funds. OpCap Advisors, New York, New York, is investment
sub-adviser to the Value Equity and Small Capitalization Funds. T. Rowe Price
Associates, Baltimore, Maryland, is investment sub-adviser to the Flexibly
Managed and High Yield Bond Funds. Vontobel USA Inc., New York, New York, is
investment sub-adviser to the International Equity Fund. RS Investment
Management, Inc., San Francisco, California is investment sub-adviser to the
Emerging Growth Fund.
- --------------------------------------------------------------------------------
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC.:
CAPITAL APPRECIATION PORTFOLIO - seeks capital growth by investing primarily
in common stocks believed to have better-than-average prospects for
appreciation. American Century Investment Management, Inc., Kansas City,
Missouri, is investment adviser to the Capital Appreciation Portfolio.
- --------------------------------------------------------------------------------
NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST:
LIMITED MATURITY BOND PORTFOLIO - seeks highest current income consistent
with low risk to principal and liquidity, primarily by investing in a
diversified portfolio of limited maturity debt securities. A secondary
objective is capital appreciation. The portfolio invests all of its assets in a
series of Advisers Managers Trust (a diversified open-end management investment
company) with identical investment objectives, policies and limitations.
BALANCED PORTFOLIO - seeks long-term capital growth and reasonable current
income without undue risk to principal through investment in common stock and
debt securities. The portfolio invests all of its assets in a series of
Advisers Managers Trust (a diversified open-end management investment company)
with identical investment objectives, policies and limitations.
PARTNERS PORTFOLIO - seeks capital growth by investing primarily in common
stocks of established companies, using the value oriented investment approach.
Neuberger & Berman reserves the right to make changes in the investment
objective, but will notify shareholders thirty days in advance of any proposed
material change.
Neuberger & Berman Management Incorporated, New York, New York, is investment
adviser to each series of Advisers Managers Trust underlying the Limited
Maturity Bond Portfolio and the Balanced Portfolio.
15
<PAGE>
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND:
EQUITY-INCOME PORTFOLIO - seeks reasonable income by investing primarily in
income-producing equity securities. In choosing these securities, the fund will
also consider the potential for capital appreciation. The fund's goal is to
achieve a yield which exceeds the composite yield on the securities comprising
the Standard & Poor's 500 Composite Stock Price Index.
GROWTH PORTFOLIO - seeks to achieve capital appreciation. The fund normally
purchases common stocks, although its investments are not restricted to any one
type of security. Capital appreciation may also be found in other types of
securities, including bonds and preferred stocks.
Fidelity Management & Research Company, Boston, Massachusetts, is investment
adviser to the Equity-Income Portfolio and the Growth Portfolio.
- --------------------------------------------------------------------------------
FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND II:
ASSET MANAGER PORTFOLIO - seeks high total return with reduced risk over the
long-term by allocating its assets among domestic and foreign stocks, bonds and
short-term fixed income investments.
INDEX 500 PORTFOLIO - seeks to match the total return of the S&P 500 while
keeping expenses low. The S&P 500 is an index of 500 common stocks, most of
which trade on the New York Stock Exchange.
Fidelity Management & Research Company, Boston, Massachusetts, is investment
adviser to the Asset Manager Portfolio.
- --------------------------------------------------------------------------------
MORGAN STANLEY UNIVERSAL FUNDS, INC.:
MORGAN STANLEY EMERGING MARKETS EQUITY (INTERNATIONAL) PORTFOLIO - seeks long
term capital appreciation by investing primarily in equity securities of
emerging market country issuers. The Portfolio will focus on economies which
are developing strongly and in which the markets are becoming more
sophisticated.
Morgan Stanley Asset Management, Inc. is investment adviser to the Emerging
Markets Equity (International) Portfolio.
- --------------------------------------------------------------------------------
FOR MORE INFORMATION ON THE FUNDS AND PORTFOLIOS IN WHICH THE SUBACCOUNTS
INVEST, SEE THE ACCOMPANYING PROSPECTUSES FOR PENN SERIES FUNDS, INC., AMERICAN
CENTURY VARIABLE PORTFOLIOS, INC., NEUBERGER & BERMAN ADVISERS MANAGEMENT
TRUST, AND FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND, FIDELITY
INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND II AND MORGAN STANLEY UNIVERSAL
FUNDS, INC. INVESTORS SHOULD READ THE PROSPECTUSES FOR THE FUNDS IN WHICH THEY
ARE INTERESTED BEFORE INVESTING.
- --------------------------------------------------------------------------------
THE CONTRACTS
The Contracts offered in this prospectus are a combination variable and fixed
annuity contract ("Variable/Fixed Contract") and a variable annuity contract
("Variable Contract").
The Variable/Fixed Contract provides for investment, through the Separate
Account, in one or more of the available Funds of Penn Series Funds, Inc.,
American Century Variable Portfolios, Inc., Neuberger & Berman Advisers
Management Trust, and Fidelity Investments' Variable Insurance Products Fund,
Variable Insurance Products Fund II and Morgan Stanley Universal Funds, Inc. It
also provides for investment in one or more fixed interest accounts. The fixed
interest accounts are guaranteed and funded by Penn Mutual through its general
account. See FIXED INTEREST OPTIONS in this prospectus. Currently, over the
life of the Variable/Fixed Contract, you may invest in one or more of 18 Funds
and fixed interest accounts.
The Variable Contract provides exclusively for investment, through the
Separate Account, in one or more of the available Funds of Penn Series Funds,
Inc., American Century Variable Portfolios, Inc., Neuberger & Berman Advisers
Management Trust, and Fidelity Investments' Variable Insurance Products Fund,
Variable Insurance Products Fund II and Morgan Stanley Universal Funds, Inc.
Owners of Variable Contracts who wish to invest in a fixed annuity contract may
transfer amounts or allocate purchase payment to a companion fixed annuity
contract offered by Penn Mutual. The Variable Contract is offered only to
owners of a companion fixed annuity contract issued by Penn Mutual. Unless
otherwise indicated, the term "Contracts," as used in this prospectus, refers
to both the Variable/Fixed Contract and the Variable Contract.
The Contract Owner determines (1) the amount and frequency of the purchase
payments to be made to Penn Mutual, (2) the accounts to which the purchase
payments are to be allocated, (3) transfers among investment accounts, (4) the
form of annuity to be paid after the accumulation period, (5) the beneficiary
to whom death benefits are to be paid, and (6) the amount and frequency of
withdrawals from the Contract Value.
16
<PAGE>
During the annuity period, the person entitled to the annuity may transfer
Annuity Unit values among subaccounts of the Separate Account. Further, if the
annuity is for a specified number of years (under Option 1 in the Contract),
the person entitled to the annuity may withdraw the present value of annuity
payments remaining to be paid.
Upon death of the Annuitant prior to the Annuity Date, the beneficiary may
elect to receive a death benefit in a lump sum or in the form of an annuity.
The Contracts may be amended at any time to conform to applicable laws or
governmental regulations. If, in our judgment, investment in any of the
underlying funds becomes inappropriate to the purposes of the Contracts, we
may, with approval of the Securities and Exchange Commission and the governing
state insurance department, substitute another fund for existing and future
investments.
Contract Owner inquiries may be made by writing The Penn Mutual Life
Insurance Company, Customer Service Group, Philadelphia, PA 19172. Or, you can
call, toll free, 1-800-523-0650.
- --------------------------------------------------------------------------------
PURCHASES
A completed application, together with a check for the first purchase
payment, is forwarded to our service office. Normally, a completed application
form received at our service office will be accepted within two business days.
If an incomplete application is not completed and acted upon within five
business days, the purchase payment will be returned unless the Contract Owner
requests that we retain it while he or she completes the application. All
subsequent purchase payments are sent directly to our service office.
For Variable/Fixed Contracts issued in connection with qualified retirement
plans, the minimum first purchase payment is $250 and the minimum for each
subsequent purchase payment is $50. The minimum first purchase payment for
Variable/Fixed Contracts which are not issued in connection with qualified
retirement plans is $2,500 and the minimum for each subsequent purchase payment
is $300. Total purchase payments credited to a Variable/Fixed Contract may not
exceed $1,000,000 in any calendar year without the consent of Penn Mutual.
For Variable Contracts issued in connection with retirement plans qualifying
for special tax treatment under the Internal Revenue Code, the minimum first
purchase payment is $250 and the minimum for each subsequent purchase payment
is $40. The minimum first purchase payment for Variable Contracts which are not
issued in connection with qualified retirement plans is $1,500 and the minimum
for each subsequent purchase payment is $300.
We may, at our discretion, reduce the minimum requirements for initial and
subsequent purchase payments under the Contracts.
Purchase payments allocated to the Separate Account are credited in the form
of Accumulation Units of the subaccount selected. The number of Accumulation
Units credited is determined by dividing the purchase payment allocated to the
Separate Account by the value of the Accumulation Unit at the end of the
valuation period in which the purchase payment is received at our service
office or, in a case of the first purchase payment, is accepted by us.
The principal underwriter of the Contracts (under federal securities laws) is
Hornor, Townsend & Kent, Inc., 600 Dresher Road, Horsham, PA 19044, a wholly
owned subsidiary of Penn Mutual.
- --------------------------------------------------------------------------------
ACCUMULATION UNITS
For each subaccount of the Separate Account, the value of an Accumulation
Unit was set at $10 when the subaccount was established. The value of an
Accumulation Unit may increase or decrease from one valuation period to the
next.
A valuation period is the period from one valuation to the next. Valuation is
performed on each day the New York Stock Exchange is open for trading.
The value of an Accumulation Unit for a valuation period is determined by
multiplying the value of an Accumulation Unit for the prior valuation period by
the net investment factor for the subaccount for the current valuation period.
The net investment factor is a measure of (1) investment performance of Fund
shares held in the subaccount, (2) any taxes on income or gains from
investments held in the subaccount and (3) the mortality and expense risk
charges assessed against the subaccount. Under current law, no taxes are levied
against income or gain from investments held in a subaccount.
17
<PAGE>
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ANNUITY PAYMENTS
Contract Owners may choose (1) an annuity for a specified number of years
(not less than 5 or more than 25 for a Variable/Fixed Contract and not less
than 5 or more than 30 for the Variable Contract), (2) a life annuity, (3) a
life annuity with payments guaranteed for 10 or 20 years, (4) a joint and
survivor life annuity or (5) such other form of annuity as we may agree upon.
Annuity payments do not start until an annuity option is chosen by the Contract
Owner.
The level of the variable annuity payments is determined by various factors,
including the form of annuity chosen, the expected duration of the annuity
period, the performance of the applicable investment accounts, and the annuity
purchase rates and charges specified in the Contract.
The mortality and expense risk charges specified in the Contracts are
assessed during both the accumulation and annuity pay-out phases of the
Contract. We continue to assess the charges during payment of a variable
annuity not involving a life contingency although we no longer bear any
mortality risk on such payment obligation.
The variable annuity purchase rates assume an annual net investment return of
4%. If the annual net investment return is greater than 4%, the level of the
annuity payments increases. If the annual net investment return is less than
4%, the level of the annuity payments decreases.
The level of fixed annuity payments under a Variable/Fixed Contract is
determined by various factors, including the form of annuity chosen, the
expected duration of the annuity period and the amount accumulated and applied
under the contract to the fixed annuity.
Unless the Contract Owner specifies otherwise, the Annuity Date will be the
first day of the next month after the Annuitant's 85th birthday for Contracts
which are not issued under qualified retirement plans and the first day of
April in the calendar year following the year in which the Annuitant attains
the age of 70 1/2 for Contracts which are issued under qualified retirement
plans. The Contract Owner or the Contract Owner's surviving beneficiary may
change the Annuity Date or annuity option by giving written notice at our
service office at least 30 days prior to the current Annuity Date. The Annuity
Date under the Variable/ Fixed Contract may not be earlier than the first
contract anniversary.
If the Contract Value of a Variable/Fixed Contract is less than $5,000, or if
the Contract Value of a Variable Contract is less than $2,000, we may elect to
pay such amount in lump sum in place of an annuity. Annuity payments generally
are made on the first day of each month starting with the Annuity Date.
However, if any payment would be less than $50, we may change the frequency of
annuity payments so that payments are at least $50 each.
- --------------------------------------------------------------------------------
PAYMENT ON DEATH
Variable/Fixed Contracts sold in most states provide that if the Annuitant
(or Contract Owner in some cases, if different) dies prior to the Annuity Date,
we will pay the beneficiary the greatest of (1) the sum of all purchase
payments, adjusted for withdrawals and contract transfers, (2) the Contract
Value for the valuation period in which proof of death and any other required
information needed to make payment is received at our service office or (3) the
sum of the Fixed Account Value (if any) on the date of death and the Variable
Account Value as of the contract date or, if later, the most recent seven-year
contract anniversary occurring prior to the Contract Owner's 81st birthday,
adjusted for subsequent purchase payments and adjusted for withdrawals and
contract transfers. Similarly, Variable Contracts sold in most states provide
that if the Annuitant (or Contract Owner in some cases, if different) dies
prior to the Annuity Date, we will pay the beneficiary the greatest of (1) the
sum of all purchase payments, adjusted for withdrawals and contract transfers,
(2) the Contract Value for the valuation period in which proof of death and any
other required information needed to make payment is received at our service
office or (3) the Contract Value as of the contract date or, if later, the most
recent seven year contract anniversary occurring prior to the Contract Owner's
81st birthday, adjusted for subsequent purchase payments and adjusted for
withdrawals and contract transfers. With respect to Contracts sold in Texas, if
the Annuitant (or the Contract Owner in some cases, if different) dies prior to
the Annuity Date, Penn Mutual will pay the greater of (1) the sum of all
purchase payments, adjusted for withdrawals and contract transfers or (2) the
Contract Value for the valuation period in which proof of death and any other
required information needed to make payment is received at Penn Mutual's
service office. "Proof of death" in the foregoing means a death certificate or
other official document establishing death.
Payment generally will be in a lump sum and must be paid within five years of
the date of death. If the beneficiary is not the decedent's spouse, the
beneficiary may elect an annuity option for death payments in lieu of receiving
a lump sum payment. If an annuity option is selected, payments must commence
within one year of the decedent's death and must be made over a period not
longer than the beneficiary's life or over a period not longer than the
beneficiary's life expectancy. If the beneficiary is the spouse of the
decedent, the beneficiary may elect an annuity option that was available to the
decedent. Further, a spousal beneficiary may apply to become the owner of the
Contract.
18
<PAGE>
If the Annuitant dies on or after the Annuity Date and the annuity is for a
specified number of years or for life with payments guaranteed for 10 or 20
years, the beneficiary may elect to have the payments continue for the
specified or guaranteed period or to receive in lump sum the present value of
the remaining payments.
Contract Owners may designate a beneficiary in their purchase applications.
Owners of Variable/Fixed Contracts may change the beneficiary at any time
before the death of the Contract Owner or Annuitant, whichever occurs first.
Owners of Variable Contracts may change the beneficiary while the Annuitant is
alive.
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TRANSFERS
Owners of Variable/Fixed Contracts may transfer Accumulation and Annuity Unit
Values from one subaccount of the Separate Account to another subaccount of the
Separate Account. Transfers will be based on values at the end of the valuation
period in which the transfer request is received at our service office. The
minimum amount that may be transferred is $250 or, if less, the amount held in
the account. Contract Owners may make no more than two transfers in any
calendar month and no more than twelve transfers in any calendar year. We
reserve the right to charge a fee for transfers in excess of six per calendar
year. Within certain additional limitations stated in the Contract, owners of
Variable/Fixed Contracts also may transfer Accumulation Unit Values to the
Fixed Account and transfer amounts from the Fixed Account to the Variable
Account or to another fixed interest option within the Fixed Account.
Owners of Variable/Fixed Contracts may transfer all or part of the Contract
Value to another annuity contract issued by Penn Mutual if both contracts are
owned under the same qualified plan by the trustee under the plan.
Owners of Variable Contracts may transfer Accumulation and Annuity Unit
values from one subaccount of the Separate Account to another, subject to a
limit of six transfers during a calendar year.
Owners of a Variable Contract may transfer all or part of the Contract Value
to another contract issued by us containing a reciprocal transfer provision,
subject to the following conditions. The owner, annuitant and beneficiary must
be the same under both contracts. No more than six such transfers may be made
in a calendar year and no transfer may be made after the thirtieth day before
the Annuity Date.
Subject to such lesser amounts we may establish, the minimum for transfers to
contracts which are not issued in connection with qualified retirement plans is
$1,000 and the minimum for all other transfers is $250. For partial transfers,
the remaining Contract Value must be at least $250.
Transfers may be made to a Contract from other contracts we have issued to
the extent provided in such contracts. Withdrawals from the Contract,
attributable to amounts transferred from other contracts with front end sales
charges, will not be subject to a deferred sales charge.
A request for transfer must be received at our service office and all other
administrative requirements for transfer must be met to make the transfer. The
Separate Account and Penn Mutual will not be liable for following instructions
communicated by telephone that we reasonably believe to be genuine. We require
certain personal identifying information before we process a request for
transfer made over the telephone.
DOLLAR COST AVERAGING: If you have a Contract Value of at least $10,000, you
may elect to have flat dollar amounts ($100 minimum) transferred monthly or
quarterly from one source account to other accounts ($50 minimum per account).
These transfers may be made only from one of the following accounts: Money
Market Subaccount, Limited Maturity Bond Subaccount, Quality Bond Subaccount,
or Fixed Holding Account. The dollar cost averaging term may run from 12 to 60
months, or until you give notice of a change in allocation or cancellation of
the feature.
AUTOMATIC REBALANCING: You may elect to have your investments in subaccounts
of the Separate Account automatically rebalanced. We will transfer funds under
your Contract on a quarterly (calendar) basis among the subaccounts to maintain
a specified percentage allocation among your selected variable investment
options. Dollar cost averaging and automatic rebalancing may not be in effect
at the same time.
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WITHDRAWALS
Prior to the earlier of the death of the Annuitant (or the Contract Owner) or
the Annuity Date, the Contract Owner may withdraw all or part of the Contract
Value. After the Annuity Date, a Contract Owner who has chosen an annuity for a
specified number of years under Option 1 of the Contract (or other person
receiving such annuity), may withdraw the present value of the annuity.
Withdrawals will be based on values at the end of the valuation period in which
the written request for withdrawal (and the Contract, in case of full
withdrawal) are received at our service office. Payment will normally be made
19
<PAGE>
within seven days of receipt of the written request and the Contract, if
required. A partial withdrawal must be at least $250 and the remaining Contract
Value must be at least $250.
With respect to Contracts qualifying under Section 403(b) of the Internal
Revenue Code, there are certain restrictions on withdrawals. Withdrawals
attributable to purchase payments made after December 31, 1988 pursuant to a
salary reduction agreement may be made only if the Contract Owner is over the
age of 59 1/2, leaves the employment of the employer, dies or becomes disabled
as defined in the Code. Withdrawals (other than withdrawals attributable to
income earned on purchase payments) may also be possible in the case of
hardship as defined in the Code. The restrictions do not apply to transfers
among subaccounts and may also not apply to transfers to other investments
qualifying under Section 403(b). The restrictions on withdrawals under Section
403(b) Contracts are imposed in reliance upon a no-action letter issued by the
Chief of the Office of Insurance Products and Legal Compliance of the
Securities and Exchange Commission to the American Council of Life Insurance
dated November 28, 1988. Penn Mutual will comply with the conditions set forth
in that letter.
- --------------------------------------------------------------------------------
DEFERMENT OF PAYMENTS AND TRANSFERS
We reserve the right to defer a withdrawal, a transfer of values or annuity
payments funded by the Separate Account if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings); (b) trading on the
Exchange is restricted; (c) an emergency exists such that it is not reasonably
practical to dispose of securities held in the Separate Account or to determine
the value of its assets; or (d) the Securities and Exchange Commission by order
so permits for the protection of investors. Conditions described in (b) and (c)
will be decided by, or in accordance with rules of, the Commission.
- --------------------------------------------------------------------------------
DEDUCTIONS AND EXPENSES
Each year on the date specified in the Contract (and on the date the Variable
Account Value or Contract Value is withdrawn in full if other than the date
specified), we deduct a contract administration charge of $30 or 2% of the
current value of the variable accounts, whichever is less, from the amount held
under the Contract in the Separate Account. This charge is made solely to
reimburse us for expenses we incur in administering the Contracts and the
Separate Account. The charge is made by canceling Accumulation Units credited
to the Contract.
We deduct a daily expense risk charge equal to an annual rate of 0.5% of the
daily net asset value of the Separate Account. This charge is made to
compensate us for the risk of guaranteeing not to increase the annual contract
administration charge to more than $30 regardless of actual administrative
costs.
We deduct a daily mortality risk charge equal to an annual rate of 0.75% of
the daily net asset value of the Separate Account (prior to September 1, 1990
the charge was 0.80%). This charge is to compensate us for the mortality-
related guarantees (e.g. guarantees that the annuity factors will never be
decreased even if mortality experience is substantially different than
originally assumed) we make under the Contract.
A contingent deferred sales charge may be deducted in the event of full or
partial withdrawal of the Contract Value or withdrawal of the present value of
remaining annuity payments. This charge is made to cover sales expenses that we
have incurred. Sales expenses which are not covered by the deferred sales
charge are paid from the surplus of Penn Mutual, which may include proceeds
from the expense and mortality risk charges.
With respect to the Variable/Fixed Contract, if the contingent deferred sales
charge applies, it will be calculated in accordance with the following
schedules. First, if no purchase payments have been made after the first
contract year, the deferred sales charge will equal:
<TABLE>
<CAPTION>
WITHDRAWAL DURING DEFERRED SALES CHARGE AS A
CONTRACT YEAR PERCENTAGE OF AMOUNT WITHDRAWN
----------------------------------------------------------------------------
<S> <C>
1 7.0%
----------------------------------------------------------------------------
2 6.0%
----------------------------------------------------------------------------
3 5.0%
----------------------------------------------------------------------------
4 4.0%
----------------------------------------------------------------------------
5 3.0%
----------------------------------------------------------------------------
6 2.0%
----------------------------------------------------------------------------
7 1.0%
----------------------------------------------------------------------------
8 and later No Charge
----------------------------------------------------------------------------
</TABLE>
20
<PAGE>
Second, if purchase payments have been made in any contract year after the
first, the deferred sales charge will equal:
<TABLE>
<CAPTION>
WITHDRAWAL DURING DEFERRED SALES CHARGE AS A
CONTRACT YEAR PERCENTAGE OF AMOUNT WITHDRAWN
----------------------------------------------------------------------------
<S> <C>
1 7.0%
----------------------------------------------------------------------------
2 6.0%
----------------------------------------------------------------------------
3 5.0%
----------------------------------------------------------------------------
4 4.0%
----------------------------------------------------------------------------
5 3.5%
----------------------------------------------------------------------------
6 3.0%
----------------------------------------------------------------------------
7 2.5%
----------------------------------------------------------------------------
8 2.0%
----------------------------------------------------------------------------
9 1.5%
----------------------------------------------------------------------------
10 1.0%
----------------------------------------------------------------------------
11 and later No Charge
----------------------------------------------------------------------------
</TABLE>
Once in each contract year on or after the last day of the first contract
year the Owner of a Variable/Fixed Contract may withdraw 10% of the Contract
Value (determined as of the date of withdrawal) free of the contingent deferred
sales charge. The 10% free withdrawal may be taken either in one sum or,
subject to meeting certain minimum amounts, in a series of scheduled amounts
during the contract year. The total sum of the contingent deferred sales
charges deducted from amounts withdrawn from the Separate Account will never
exceed 8 1/2% of the total of all purchase payments credited to the Separate
Account.
With respect to the Variable Contract, if the contingent deferred sales
charge applies, it will equal the lesser of (a) 5% of the sum of purchase
payments made within seven years prior to the date of withdrawal or (b) 5% of
the amount withdrawn. Under no circumstances will the charge ever exceed 5% of
total purchase payments. No charge will be made on that portion of the first
withdrawal in a contract year that does not exceed 10% of total purchase
payments made one year or more prior to the withdrawal. The 10% free withdrawal
referred to in the preceding sentence may be taken in either one sum or,
subject to certain minimum amounts, in a series of scheduled amounts during the
contract year. Further, no charge will be made under the Variable Contract on
that portion of the first withdrawal in the eighth, ninth and tenth contract
years that does not exceed the following percentages of the Contract Value:
<TABLE>
<CAPTION>
CONTRACT YEAR PERCENTAGE
----------------------------------------------------------------------------
<S> <C>
Eighth 25%
----------------------------------------------------------------------------
Ninth 50%
----------------------------------------------------------------------------
Tenth 75%
----------------------------------------------------------------------------
</TABLE>
No charge will be made on the first withdrawal in any contract year after the
tenth contract year.
The Contract Owner may at any time withdraw all or any part of the Contract
Value free from the contingent deferred sales charge if (i) the Contract Owner
(or Annuitant under a qualified retirement plan) is disabled as defined in
Section 72 (m) (7) of the Internal Revenue Code and as applied under the Social
Security Act, (ii) the disability began after the Contract Date and (iii) the
disability has continued without interruption for four months.
The contingent deferred sales charge may be reduced on Contracts sold to a
trustee, employer or similar party pursuant to a retirement plan or to a group
of individuals, if such sales are expected to involve reduced sales expenses.
The amount of reduction will depend upon such factors as the size of the group,
any prior or existing relationship with the purchaser or group, the total
amount of purchase payments and other relevant factors that might tend to
reduce expenses incurred in connection with such sales. The reduction will not
be unfairly discriminatory to any Contract Owners.
Some states and municipalities impose premium taxes on purchase payments
received by insurance companies. Any premium taxes payable will be deducted
upon annuitization. Currently, they range from 0% to 3.5%.
21
<PAGE>
- --------------------------------------------------------------------------------
THE FIXED INTEREST OPTIONS
BECAUSE OF EXEMPTIVE AND EXCLUSIONARY PROVISIONS, INTERESTS IN PENN MUTUAL'S
GENERAL ACCOUNT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
THE GENERAL ACCOUNT HAS NOT BEEN REGISTERED AS AN INVESTMENT COMPANY UNDER THE
INVESTMENT COMPANY ACT OF 1940. THE GENERAL ACCOUNT AND ANY INTERESTS HELD IN
THE GENERAL ACCOUNT ARE THEREFORE NOT SUBJECT TO THE PROVISIONS OF THESE ACTS.
PENN MUTUAL HAS BEEN ADVISED THAT THE STAFF OF THE SECURITIES AND EXCHANGE
COMMISSION HAS NOT REVIEWED THE DISCLOSURE IN THIS PROSPECTUS RELATING TO THE
FIXED ACCOUNT. DISCLOSURE REGARDING THE FIXED ACCOUNT, HOWEVER, MAY BE SUBJECT
TO GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS RELATING TO
THE ACCURACY AND COMPLETENESS OF STATEMENTS MADE IN THIS PROSPECTUS.
Owners of Variable/Fixed Contracts may allocate or transfer all or part of
the amount credited to their Contracts to one or more of the following fixed
interest options in the Fixed Account: (1) the Fixed Holding Account; (2) the
One Year Guaranteed Account; (3) the Three Year Guaranteed Account; (4) the
Five Year Guaranteed Account; and (5) the Seven Year Guaranteed Account. The
minimum amount for an allocation to the Fixed Holding Account is $50; the
minimum amount for an allocation to the One Year Guaranteed Account or the
Three Year Guaranteed Account is $250; and the minimum amount for an allocation
to the Five Year Guaranteed Account or the Seven Year Guaranteed Account is
$5,000. We periodically declare an effective annual interest rate applicable to
allocations to the various fixed interest options. For each amount allocated to
the Fixed Holding Account, interest will be credited at an effective annual
interest rate declared by us on the first day of each calendar year. The
declared rate of interest will apply through the end of the calendar year in
which an allocation is made to the Fixed Holding Account at which time a new
rate will be declared by Penn Mutual. For each amount allocated to the One Year
Guaranteed Account, the Three Year Guaranteed Account, the Five Year Guaranteed
Account or the Seven Year Guaranteed Account, interest will be credited at an
annual effective interest rate declared by us each month. The declared rate of
interest will apply through the end of the twelve month, thirty-six month,
sixty month or eighty-four month period, as applicable, which begins on the
first day of the calendar month in which the allocation is made. We guarantee
an effective annual rate of interest on allocations to all fixed interest
options of not less than 4%. In addition, rates declared during the first seven
contract years for the One Year Guaranteed Account will not be less than the 52
week Treasury Bill discount rate obtained from the most recent regularly
scheduled auction.
Owners of Variable/Fixed Contracts may transfer Fixed Account funds to the
Separate Account or to another fixed interest option within the Fixed Account,
subject to the conditions and limitations in the fixed account provisions of
the Contract. A premature withdrawal charge may be deducted from the interest
earned on any amount that is withdrawn from the Three Year Guaranteed Account,
the Five Year Guaranteed Account or the Seven Year Guaranteed Account during
the period for which an interest rate is guaranteed. In no event will the
premature withdrawal charge invade the Contract Owner's principal investment in
the applicable fixed interest option. In accordance with state law, we may
defer a withdrawal or transfer from the Fixed Account for up to six months if
we reasonably determine that investment conditions are such that an orderly
sale of assets in Penn Mutual's general account is not feasible.
Owners of Variable/Fixed Contracts qualifying under Section 403(b) of the
Code may be able to borrow against a portion of the amount credited under their
Contract, provided the loan privilege has been approved in the applicable
state. The loan will be made from the general account of Penn Mutual. Because
this prospectus generally is limited to describing the variable portion of the
Contract, you should review the Contract loan endorsement or consult your Penn
Mutual representative for a complete description of the terms of the loan
privilege, including minimum and maximum loan amounts, repayment terms, and
restrictions on prepayments. The following paragraphs describe how exercise of
the loan privilege may relate to the Variable Account Value.
First, at the time a contract loan is made and in accordance with the
Contract Owner's direction, an amount equal to the initial loan amount will be
transferred from the Contract's investment options to an account in Penn
Mutual's general account called the "Restricted Account." Amounts transferred
from investment options to the Restricted Account will not participate in the
investment experience of those investment options. Amounts transferred to the
Restricted Account will generally earn interest at a rate 2 1/2 percentage
points less than the rate of interest charged on the loan.
Second, on a Contract anniversary, the accrued interest in the Restricted
Account will be transferred to the Contract Owner's investment options in
accordance with the Contract Owner's current payment allocation instructions.
Third, loan repayments, which are due quarterly, will result in the transfer
of an amount equal to the principal portion of the repayment from the
Restricted Account to the Fixed Holding Account. Contract Owners may then
transfer amounts from the Fixed Holding Account to the other investment options
offered under the Contract.
Fourth, if a payment or the entire loan is in default as defined in the
Contract, Penn Mutual will report the amount of the default to the Internal
Revenue Service as a taxable distribution and, if the Owner is under age 59
1/2, as a premature distribution. Subject to restrictions in Section 403(b) of
the Code, the amount of any missed payment, plus interest, or the entire
22
<PAGE>
loan balance, plus interest, if the entire loan is in default, plus any
applicable contingent deferred sales charge, will be withdrawn by Penn Mutual
from the Contract's investment options in accordance with the Contract Owner's
direction in the Loan Request and Agreement. The net proceeds from the
withdrawal will be used to repay the loan. If a withdrawal is restricted under
the Code, the outstanding loan balance will continue to accrue interest and the
amount due will be withdrawn when a withdrawal becomes permissible. Thus, when
an event takes place which makes withdrawal from the Contract permissible under
the Code, such as attainment of age 59 1/2, disability or death, the Contract
will be checked to determine if there is an outstanding loan balance for which
one or more payments have been missed. If so, funds necessary to pay the
overdue amount, plus any applicable contingent deferred sales charge, will be
withdrawn from the Contract's investment options in the order set forth in the
preceding paragraph. While a loan balance is outstanding, any withdrawal or
death benefit proceeds must first be used to pay the loan.
Loans are subject to the terms of the Contract, the Code and the Employee
Retirement Income Security Act of 1974, all of which may impose restrictions.
Penn Mutual reserves the right to suspend, modify or terminate the availability
of loans. Where there is a plan fiduciary, it is the responsibility of the
fiduciary to ensure that any Contract loans comply with plan qualification
requirements, including ERISA.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX CONSIDERATIONS
The following brief discussion of federal income tax considerations is based
on the law as in effect on the date of this prospectus. The Government
Accounting Office and the Treasury Department have submitted congressionally
mandated studies of the tax treatment of life insurance and annuities. Whether
these studies will result in any subsequent legislative changes in the tax
treatment of annuity contracts is uncertain. It is anticipated, however, that
any legislative changes will be prospective in nature.
Under current law, no federal income taxes are imposed on increases in the
value of a Contract until distribution occurs, either in the form of a
withdrawal or death benefit or as annuity payments under an annuity option.
For a withdrawal or death benefit, the taxable portion is generally the
amount in excess of the cost basis of the Contract. Amounts withdrawn by the
Contract Owner or received as a death benefit by the designated beneficiary are
treated first as taxable income to the extent of the excess of the Contract
Value over the purchase payments made under the Contract. Such taxable portion
is taxed at ordinary income tax rates. Designation of a beneficiary who is
either 37 1/2 years younger than the Contract Owner or a grandchild of the
Contract Owner may have Generation Skipping Transfer Tax consequences under
Section 2601 of the Internal Revenue Code.
For annuity payments, the taxable portion is generally determined by a
formula that establishes the ratio of the cost basis of the Contract (as
adjusted for any refund feature) to the expected return under the Contract. The
taxable portion, which is the amount of the annuity payment in excess of the
cost basis, is taxed at ordinary income tax rates.
An additional income tax of 10% may be imposed on the taxable portion of an
early withdrawal or distribution unless one of several exceptions apply. There
will be no additional income tax on early withdrawals which are part of a
series of substantially equal periodic payments (not less frequently than
annually) made for life (or life expectancy) of the taxpayer or the joint lives
(or joint life expectancies) of the taxpayer and a beneficiary, or on
withdrawals made on or after age 59 1/2. There also will be no additional tax
on distributions made after death or on withdrawals attributable to total and
permanent disability (as defined in the Code). Further, there will be no
additional tax on distributions within certain other exceptions to the general
rule.
The transfer of a Contract may result in the transferor incurring tax. If the
transfer is for less than adequate consideration, the taxable portion would be
the Contract Value at the time of transfer over the investment in the Contract
at such time. This rule does not apply to transfers between spouses or to
transfers incident to a divorce.
Subject to certain exceptions, a Contract must be held by or on behalf of a
natural person in order to be treated as an annuity contract under federal
income tax law and to be accorded the tax treatment described in the preceding
paragraphs. If a Contract is not treated as an annuity contract for federal
income tax purposes, the income on the Contract is treated as ordinary income
received or accrued by the Contract Owner during the taxable year.
Section 817(h) of the Code provides that the investments of a separate
account underlying a variable annuity contract which is not purchased under a
qualified retirement plan or certain other types of plans (or the investments
of a mutual fund, the shares of which are owned by the variable annuity
separate account) must be "adequately diversified" in order for the contract to
be treated as an annuity contract for tax purposes. The Treasury Department has
issued regulations prescribing such diversification requirements. The Separate
Account, through each of the available Funds of Penn Series, American Century
Variable Portfolios, Inc., Neuberger & Berman Advisers Management Trust and
Fidelity Investments' Variable Insurance
23
<PAGE>
Products Fund, Variable Insurance Products Fund II and Morgan Stanley Universal
Funds, Inc., intends to comply with those requirements. The requirements are
briefly discussed in the accompanying prospectuses for the underlying Funds.
The Treasury Department has indicated that in regulations or revenue rulings
under Section 817(d) (relating to the definition of a variable contract), it
will provide guidance on the extent to which contract owners may direct their
investments to particular subaccounts without being treated as owners of the
underlying shares. It is possible that when such regulations or rulings are
issued, certain of the Contracts may need to be modified to comply with them.
The Contracts may be used in connection with retirement plans that qualify
for special tax treatment under the Code. The plans include individual
retirement annuities qualified under Section 408(b) of the Code (referred to as
IRAs), simplified employee pension plans qualified under Section 408(k) of the
Code, tax deferred annuities qualified under Section 403(b) of the Code, state
and local government deferred compensation plans qualified under Section 457 of
the Code, pension or profit sharing plans for self-employed individuals
qualified under Section 401 of the Code (referred to as H.R. 10 or Keogh plans)
and corporate pension or profit sharing plans qualified under Section 401 of
the Code or annuity plans qualified under Section 403(a) of the Code. Special
provisions are required in some Contracts for qualification under the Code.
For some types of qualified retirement plans, there may be no cost basis in
the Contract. In this case, the total payments received may be taxable. Before
purchasing a Contract under a qualified retirement plan, the tax law provisions
applicable to the particular plan should be considered.
Generally, under a nonqualified annuity or individual retirement annuity
qualified under Section 408(b), unless the Contract Owner elects to the
contrary, any amounts that are received under the Contract that Penn Mutual
believes are includable in gross income for tax purposes will be subject to
withholding to meet federal income tax obligations. The same treatment will
apply to distributions from a qualified plan or Section 403(b) annuity that are
payable as an annuity for the life or life expectancy of one or more
individuals, or for a period of at least 10 years, or are required minimum
distributions. Other distributions from a qualified plan or a Section 403(b)
annuity are subject to federal income tax withholding, unless an election is
made to make a direct transfer to another eligible retirement plan.
Distributions from a Section 457 deferred compensation plan are wages subject
to general income tax withholding requirements.
It should be understood that the foregoing description of federal income
taxes is not exhaustive and that special rules and considerations may be
applicable. For further information, a prospective purchaser should consult
qualified tax counsel.
24
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION CONTENTS
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
VARIABLE ANNUITY PAYMENTS..................................................
First Variable Annuity Payments.......................................... B-2
Subsequent Variable Annuity Payments..................................... B-2
Annuity Units............................................................ B-2
Value of Annuity Units................................................... B-2
Net Investment Factor.................................................... B-2
Assumed Interest Rate.................................................... B-3
Valuation Period......................................................... B-3
- --------------------------------------------------------------------------------
PERFORMANCE DATA........................................................... B-4
Average Annual Total Return.............................................. B-4
Annual Changes in Accumulation Unit Values............................... B-12
Yields (Money Market Fund)............................................... B-13
- --------------------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS AND CERTIFICATES................................. B-13
- --------------------------------------------------------------------------------
CUSTODIAN.................................................................. B-14
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS....................................................... B-14
- --------------------------------------------------------------------------------
LEGAL MATTERS.............................................................. B-14
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS....................................................... B-14
- --------------------------------------------------------------------------------
</TABLE>
25
<PAGE>
PROSPECTUS -- MAY 1, 1998
CERTIFICATES ISSUED UNDER GROUP VARIABLE AND FIXED ANNUITY CONTRACTS--FLEXIBLE
PURCHASE PAYMENTS
- --------------------------------------------------------------------------------
OPTIMIZER
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
THE PENN MUTUAL LIFE INSURANCE COMPANY
PHILADELPHIA, PA 19172 TELEPHONE (215) 956-8000
- --------------------------------------------------------------------------------
The variable account provisions of the group variable and fixed annuity
contracts described in this prospectus provide for accumulation of values and
for the payment of annuities. Through Penn Mutual Variable Annuity Account III
(referred to herein as the "Separate Account"), accumulation values and annuity
payment reserves are invested, at the direction of the account owner, in one or
more of the following funds of Penn Series Funds, Inc. (individually, a "Fund"
and together, the "Funds").
<TABLE>
<CAPTION>
PENN SERIES FUNDS, INC. MANAGERS
<C> <S>
Growth Equity Fund Independence Capital
Management, Inc. (a wholly
owned subsidiary of The Penn
Mutual Life Insurance Company)
Value Equity Fund OpCap Advisors
Flexibly Managed Fund T. Rowe Price Associates, Inc.
International Equity Fund Vontobel USA Inc.
Independence Capital
Quality Bond Fund Management, Inc.
High Yield Bond Fund T. Rowe Price Associates, Inc.
Independence Capital
Money Market Fund Management, Inc.
</TABLE>
- --------------------------------------------------------------------------------
The accumulation value and annuity payments vary in accordance with the
investment experience of the Funds.
Under some circumstances, early withdrawals from a Contract may be subject to
a 5% contingent deferred sales charge and/or a 10% additional income tax.
A certificate issued under a contract may be returned within ten days of
receipt for a full refund of the account value. Longer free look periods and
full refund of purchase payments are required in some states.
This prospectus sets forth concisely the information a prospective investor
should know before investing. It should be retained for future reference.
A statement of additional information dated the same as this prospectus has
been filed with the Securities and Exchange Commission and is incorporated
herein by reference. It is available, at no charge, by writing The Penn Mutual
Life Insurance Company, Customer Service Group, Philadelphia, PA 19172. Or, you
can call, toll free, 1-800-523-0650. The table of contents of the statement of
additional information is at the end of this prospectus.
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY THE CURRENT PROSPECTUS OF
PENN SERIES FUNDS, INC.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
- --------------------------------------------------------------------------------
PROSPECTUS CONTENTS
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
SPECIAL TERMS............................................................... 3
- --------------------------------------------------------------------------------
EXPENSES.................................................................... 4
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION............................................. 6
Penn Series Growth Equity Fund............................................ 6
Penn Series Value Equity Fund............................................. 6
Penn Series Flexibly Managed Fund......................................... 7
Penn Series International Equity Fund..................................... 7
Penn Series Quality Bond Fund............................................. 7
Penn Series High Yield Bond Fund.......................................... 8
Penn Series Money Market Fund............................................. 8
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY...................................... 9
- --------------------------------------------------------------------------------
THE SEPARATE ACCOUNT........................................................ 9
- --------------------------------------------------------------------------------
THE CONTRACT................................................................ 10
Purchases................................................................. 10
Accumulation Units........................................................ 11
Annuity Payments.......................................................... 11
Payment on Death.......................................................... 11
Transfers................................................................. 11
Withdrawals............................................................... 12
Deferment of Payments and Transfers....................................... 12
Deductions and Expenses................................................... 12
- --------------------------------------------------------------------------------
THE FIXED INTEREST OPTIONS.................................................. 13
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX CONSIDERATIONS........................................... 14
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION CONTENTS................................ 16
- --------------------------------------------------------------------------------
</TABLE>
2
<PAGE>
- -------------------------------------------------------------------------------
SPECIAL TERMS
As used in this prospectus, the following terms have the indicated meaning:
CERTIFICATE: A certificate issued under the Contract which sets forth
provisions of the Contract.
CONTRACT: The group variable and fixed annuity contract described in this
prospectus.
ACCUMULATION UNIT: A unit of measure used to compute a Participant's
Variable Account Value prior to the Annuity Date.
ANNUITY DATE: The date on which annuity payments start.
OWNER: The Participant or other person specified in the Certificate.
PARTICIPANT: A person on whose behalf purchase payments are made under the
Contract.
PARTICIPANT'S VARIABLE ACCOUNT: An account established and maintained for a
Participant.
PARTICIPANT'S VARIABLE ACCOUNT VALUE: The value of all Accumulation Units
credited to the Participant's Variable Account.
3
<PAGE>
- -------------------------------------------------------------------------------
EXPENSES
- -------------------------------------------------------------------------------
CONTRACT OWNER TRANSACTION EXPENSES
<TABLE>
<S> <C>
Sales Load Imposed on Purchase Payments.................................. None
Deferred Sales Load, as percentage of the amount withdrawn............... 5%*
Exchange Fee............................................................. None
- -----------------------
* The deferred sales charge will not be made on that portion of the first
withdrawal in an enrollment year that does not exceed specified percentages
of the sum of the Participant's Variable Account Value and the Participant's
fixed account value. See "Deductions and Expenses" in this prospectus.
ANNUAL CONTRACT ADMINISTRATION CHARGE.................................... $30
</TABLE>
SEPARATE ACCOUNT ANNUAL EXPENSES (AS A PERCENTAGE OF AVERAGE VARIABLE ACCOUNT
VALUE)
<TABLE>
<S> <C>
Mortality and Expense Risk Charge......................................... 1.25%
Account Fees and Expenses................................................. None
-----
Total Separate Account Annual Expenses.................................... 1.25%
</TABLE>
- -------------------------------------------------------------------------------
PENN SERIES FUNDS, INC.**
UNDERLYING FUND ANNUAL EXPENSES (AS A % OF PORTFOLIO AVG. NET ASSETS)
<TABLE>
<CAPTION>
ADMINISTRATIVE
MANAGEMENT AND CORPORATE TOTAL
FEES (AFTER SERVICES FEES ACCOUNTING OTHER FUND
WAIVER) (AFTER WAIVER) FEES EXPENSES EXPENSES
----------- -------------- ---------- -------- --------
<S> <C> <C> <C> <C> <C>
Growth Equity........... 0.50% 0.15% 0.07% 0.05% 0.77%
Value Equity............ 0.50% 0.15% 0.06% 0.05% 0.76%
Flexibly Managed........ 0.50% 0.15% 0.05% 0.06% 0.76%
International Equity.... 0.75% 0.15% 0.08% 0.15% 1.13%
Quality Bond............ 0.45% 0.15% 0.08% 0.07% 0.75%
High Yield Bond......... 0.50% 0.15% 0.08% 0.08% 0.81%
Money Market............ 0.40% 0.15% 0.08% 0.07% 0.70%
</TABLE>
- -----------------------
** The expenses presented are for the last fiscal year, except accounting fees
have been restated to reflect current fees based on a revised accounting
fee agreement.
- -------------------------------------------------------------------------------
The purpose of this foregoing table is to assist Contract Owners in
understanding the various costs and expenses that a Contract Owner will bear
directly and indirectly. The table shows Contract expenses and underlying Fund
expenses. See the accompanying prospectus of Penn Series Funds, Inc. for
information on expenses.
Premium taxes may be applicable. See Deductions and Expenses in this
prospectus.
4
<PAGE>
- --------------------------------------------------------------------------------
EXAMPLE
If you own certificates and surrender your certificates at the end of the
applicable period, you would pay the following expenses on each $1,000
invested, assuming 5% annual return on assets:
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund........................... $68 $115 $164 $259
Penn Series Value Equity Fund............................ $67 $114 $164 $258
Penn Series Flexibly Managed Fund........................ $67 $114 $164 $258
Penn Series International Equity Fund.................... $71 $125 $182 $295
Penn Series Quality Bond Fund............................ $67 $114 $164 $257
Penn Series High Yield Bond Fund......................... $68 $116 $166 $263
Penn Series Money Market Fund............................ $67 $113 $161 $252
</TABLE>
- --------------------------------------------------------------------------------
EXAMPLE
If you own certificates and do not surrender your certificates, or you elect
an annuity option at the end of the applicable time period, you would pay the
following expense on each $1,000 invested, assuming 5% annual return on assets:
<TABLE>
<CAPTION>
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
Penn Series Growth Equity Fund........................... $21 $66 $112 $242
Penn Series Value Equity Fund............................ $21 $65 $112 $241
Penn Series Flexibly Managed Fund........................ $21 $65 $112 $241
Penn Series International Equity Fund.................... $25 $76 $131 $279
Penn Series Quality Bond Fund............................ $21 $65 $112 $241
Penn Series High Yield Bond Fund......................... $22 $67 $115 $247
Penn Series Money Market Fund............................ $21 $63 $109 $235
</TABLE>
The example is based upon data for the fiscal year ended December 31, 1997
and assumes an average Participant's Variable Account Value of approximately
$9,161. The example should not be considered a representation of past or future
expenses under the contract; actual expenses may be greater or lesser than
those shown.
5
<PAGE>
- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
The following tables show Accumulation Unit values and the number of
Accumulation Units outstanding for each of the subaccounts of the Separate
Account for the specified periods. The financial data included in these tables
should be read in conjunction with the financial statements and the related
notes included in the Statement of Additional Information.
- --------------------------------------------------------------------------------
PENN SERIES GROWTH EQUITY FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period for Qualified
and Nonqualified Retirement Plans
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992
- -----------------------------------------------------------------------------------------------------------------------------
NOM- NON- NON- NON- NON- NON-
QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation
Unit Value,
beginning of
period......... $ 38.550 $38.235 $ 32.596 $32.327 $ 26.102 $25.887 $ 28.766 $28.528 $ 25.906 $25.692 $ 24.756 $24.552
Accumulation
Unit Value, end
of period...... $ 48.256 $47.859 $ 38.550 $38.235 $ 32.596 $32.327 $ 26.102 $25.887 $ 28.766 $28.528 $ 25.906 $25.692
Number of
Accumulation
Units
outstanding,
end of period.. 1,794,481 617,717 1,830,081 620,903 1,991,646 674,290 2,119,836 717,328 2,042,023 685,110 2,004,015 669,679
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------
1991 1990 1989 1988
- ---------------------------------------------------------------------------------------------------------
NON- NON- NON- NON-
QUAL QUAL QUAL QUAL QUAL QUAL QUAL QUAL
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period.... $ 18.605 $ 18.451 $ 21.204 $ 21.029 $ 16.356 $ 16.221 $ 14.702 $ 14.581
Accumulation Unit Value,
end of period.......... $ 24.756 $ 24.552 $ 18.605 $ 18.451 $ 21.204 $ 21.029 $ 16.356 $ 16.221
Number of Accumulation
Units
outstanding, end of
period................. 1,680,322 518,717 1,470,210 439,287 1,284,583 333,486 1,309,408 360,185
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(a) Growth Stock Fund Subaccount prior to November 1, 1992.
- --------------------------------------------------------------------------------
PENN SERIES VALUE EQUITY FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout The Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit
Value,
beginning of
period............. $ 30.819 $ 24.928 $ 18.361 $ 18.062 $ 17.080 $ 15.058 $ 11.939 $ 13.157 $ 11.802 $ 9.226
Accumulation Unit
Value,
end of period...... $ 38.038 $ 30.819 $ 24.928 $ 18.361 $ 18.062 $ 17.080 $ 15.058 $ 11.939 $ 13.157 $11.802
Number of
Accumulation Units
outstanding, end of
period............. 5,409,879 4,907,784 4,235,839 3,886,404 3,693,652 2,865,294 2,207,661 1,883,581 1,802,897 918,020
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Equity Income Fund Subaccount prior to November 1, 1992.
6
<PAGE>
- --------------------------------------------------------------------------------
PENN SERIES FLEXIBLY MANAGED FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit
Value,
beginning of
period............. $ 49.262 $ 42.865 $ 35.496 $ 34.514 $ 30.179 $ 27.893 $ 23.215 $ 23.712 $ 19.832 $16.898
Accumulation Unit
Value,
end of period...... $ 56.265 $ 49.262 $ 42.865 $ 35.496 $ 34.514 $ 30.179 $ 27.893 $ 23.215 $ 23.712 $19.832
Number of
Accumulation
Units outstanding,
end of period...... 5,974,993 5,711,843 4,946,240 4,198,305 3,143,601 2,327,829 1,664,751 1,237,347 1,129,858 853,647
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Capital Appreciation Fund Subaccount prior to November 1, 1992.
- --------------------------------------------------------------------------------
PENN SERIES INTERNATIONAL EQUITY FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992(A)
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value, $ 16.659 $ 14.434 $ 12.843 $ 13.880 $ 10.175 $10.000
beginning of period....
Accumulation Unit Value, $ 18.164 $ 16.659 $ 14.434 $ 12.843 $ 13.880 $10.175
end of period..........
Number of Accumulation 4,155,960 4,012,762 3,388,479 3,556,098 1,847,892 92,386
Units outstanding, end
of period..............
- ----------------------------------------------------------------------------------------
</TABLE>
(a) For the period November 2, 1992 (date subaccount was established) through
December 31, 1992.
- --------------------------------------------------------------------------------
PENN SERIES QUALITY BOND FUND SUBACCOUNT (A)
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit
Value, beginning of
period............... $ 18.990 $ 18.465 $ 15.562 $ 16.639 $ 15.088 $ 14.336 $ 12.558 $ 11.776 $10.580 $ 9.968
Accumulation Unit
Value, end of period. $ 20.260 $ 18.990 $ 18.465 $ 15.562 $ 16.639 $ 15.088 $ 14.336 $ 12.558 $11.776 $10.580
Number of Accumulation
Units outstanding,
end of period........ 1,497,635 1,664,378 1,869,975 1,890,869 1,953,188 1,357,087 1,229,163 1,075,187 769,467 274,657
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(a) Fixed Income Fund Subaccount prior to November 1, 1992.
7
<PAGE>
- --------------------------------------------------------------------------------
PENN SERIES HIGH YIELD BOND FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- -------------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period.... $ 29.276 $ 26.033 $ 22.644 $ 24.742 $ 20.918 $18.291 $13.534 $15.035 $15.325 $13.193
Accumulation Unit Value,
end of period.......... $ 33.476 $ 29.276 $ 26.033 $ 22.644 $ 24.742 $20.918 $18.291 $13.534 $15.035 $15.325
Number of Accumulation
Units outstanding,
end of period.......... 1,261,904 1,185,318 1,194,944 1,264,890 1,257,271 705,414 594,530 613,408 817,147 708,838
</TABLE>
- --------------------------------------------------------------------------------
PENN SERIES MONEY MARKET FUND SUBACCOUNT
Values of an Accumulation Unit Outstanding Throughout Each Period
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------------
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Accumulation Unit Value,
beginning of period.... $ 18.817 $ 18.148 $ 17.416 $17.003 $16.791 $16.491 $15.732 $14.893 $13.844 $13.089
Accumulation Unit Value,
end of period.......... $ 19.541 $ 18.817 $ 18.148 $17.416 $17.003 $16.791 $16.491 $15.732 $14.893 $13.844
Number of Accumulation
Units outstanding,
end of period......... 1,120,603 1,192,388 1,062,385 825,274 658,620 698,584 769,958 965,117 753,052 319,671
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
The financial statements of the Separate Account for the year ended December
31, 1997 are included in the statement of additional information referred to on
the cover page of this prospectus.
- --------------------------------------------------------------------------------
In advertisements of the Contracts and Certificates thereunder, Penn Mutual
may provide information on total return performance and on annual changes in
accumulation unit values. We may also provide information on "yields" and
"effective yields" on investments in the Money Market Fund subaccount.
Information on total return performance will include average annual rates of
total return for one, five and ten year periods, or lesser periods depending on
how long the subaccount has been in existence. Average annual total return
figures will show the average annual rates of increase or decrease in
investments in the subaccounts, assuming a $1,000 investment at the beginning
of the period, withdrawal of the investment at the end of the period, and the
deduction of all applicable charges. We may also show average annual rates of
total return, assuming other amounts invested at the beginning of the period
and no withdrawal at the end of the period. Average annual total return figures
which assume no withdrawal at the end of the period will reflect all recurring
charges, but will not reflect the contingent deferred sales charge (if
applicable, the contingent deferred sales charge would reduce the amount that
may be withdrawn under the Contracts.)
The "yield" on an investment in the Money Market Fund subaccount refers to
the income generated by the investment over a 7-day period. This income is then
annualized. That is, the amount of income generated by the investment during
that week is assumed to be generated each week over a 52-week period and is
shown as a percentage of the investment. The "effective yield" is calculated
similarly but, when annualized, the income earned by an investment in the
subaccount is assumed to be reinvested. The effective yield will be slightly
higher than the yield because of the compounding effect of this assumed
reinvestment.
8
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY
The Penn Mutual Life Insurance Company ("Penn Mutual") is a Pennsylvania mutual
life insurance company. We were chartered in 1847 and have been continuously
engaged in the life insurance business since that date. Our home office is
located at The Penn Mutual Life Insurance Company, Philadelphia, PA 19172.
- --------------------------------------------------------------------------------
THE SEPARATE ACCOUNT
Penn Mutual Variable Annuity Account III was established as a separate account
of Penn Mutual on April 13, 1982. The Separate Account is registered with the
Securities and Exchange Commission as a unit investment trust under the
Investment Company Act of 1940 and qualifies as a "separate account" within the
meaning of the federal securities laws.
The Separate Account is divided into subaccounts for investment in shares of
different Funds of Penn Series Funds, Inc. In addition, there are two
subaccounts for investment in shares of the Growth Equity Fund of Penn Series
Funds, Inc. one for Contracts which were issued in connection with tax
qualified retirement plans and one for Contracts which were not issued in
connection with such plans. Income, gains and losses, realized or unrealized,
of a subaccount are credited to or charged against the subaccount without
regard to any other income, gains or losses of Penn Mutual. Assets equal to the
reserves and other contract liabilities with respect to each subaccount are not
chargeable with liabilities arising out of any other business of Penn Mutual.
Penn Mutual is obligated to pay all benefits and make all payments provided
under the Contracts.
Assets held in the Separate Account under a Contract are invested, at the
direction of the Owner, in one or more of the following Funds of Penn Series
Funds, Inc.:
GROWTH EQUITY FUND - seeks long-term growth of capital and increase of future
income by investing primarily in common stocks of well established growth
companies;
VALUE EQUITY FUND - seeks to maximize total return (capital appreciation and
income) primarily by investing in equity securities of companies believed to be
undervalued considering such factors as assets, earnings, growth potential and
cash flows;
FLEXIBLY MANAGED FUND - seeks to maximize total return (capital appreciation
and income) by investing in common stocks, other equity securities, corporate
debt securities, and/or short term reserves, in proportions considered
appropriate in light of the availability of attractively valued individual
securities and current and expected economic and market conditions;
INTERNATIONAL EQUITY FUND - seeks to maximize capital appreciation by
investing in a carefully selected diversified portfolio consisting primarily of
equity securities. The investments will consist principally of equity
securities of European and Pacific Basin Countries;
QUALITY BOND FUND - seeks the highest income over the long term consistent
with the preservation of principal by investing primarily in marketable
investment grade debt securities;
HIGH YIELD BOND FUND - seeks high current income by investing primarily in a
diversified portfolio of long term high-yield fixed income securities in the
medium to lower quality ranges; capital appreciation is a secondary objective;
such securities, which are commonly referred to as "junk" bonds, generally
involve greater risk of loss of income and principal than higher rated
securities (see accompanying Penn Series prospectus);
MONEY MARKET FUND - seeks to preserve capital, maintain liquidity and achieve
the highest possible level of current income consistent therewith, by investing
in high quality money market instruments; an investment in the Fund is neither
insured nor guaranteed by the U.S. Government and there can be no assurance
that the Fund will be able to maintain a stable net asset value of $1.00 per
share.
Independence Capital Management, Inc., Horsham, Pennsylvania, is investment
adviser to each of the Funds. OpCap Advisors, New York, New York, is investment
sub-adviser to the Value Equity Fund. T. Rowe Price Associates, Inc.,
Baltimore, Maryland, is investment sub-adviser to the Flexibly Managed and High
Yield Bond Funds. Vontobel USA Inc., New York, New York, is investment sub-
adviser to the International Equity Fund.
FOR MORE INFORMATION ON PENN SERIES FUNDS, INC., SEE THE ATTACHED PENN SERIES
PROSPECTUS. INVESTORS SHOULD READ THE PENN SERIES PROSPECTUS CAREFULLY BEFORE
INVESTING.
Under the Investment Company Act of 1940, as currently interpreted, Owners
and persons receiving annuity payments have the right to instruct Penn Mutual
as to the voting of shares of Penn Series Funds, Inc. held in the Separate
Account pursuant to the Contracts. The number of shares of a Fund for which
voting instructions may be given by an Owner is determined by dividing the
Owner's interest in the applicable subaccount of the Separate Account by the
net asset value per share of the Fund. The number of shares of a Fund for which
voting instructions may be given by a person receiving annuity
9
<PAGE>
payments is determined by dividing the reserve allocated to the applicable
subaccount by the net asset value per share of the Fund. Should the applicable
law, or interpretations thereof, change so as to permit us to vote shares of
the mutual funds in our own right, we may elect to do so. Further, we reserve
the right to modify the manner in which we calculate the weight to be given to
pass-through voting instructions where such a change is necessary to comply
with federal law or interpretations thereof.
Shares of Penn Series are sold not only to the Separate Account, but also to
other separate accounts of Penn Mutual and its subsidiary, The Penn Insurance
and Annuity Company that fund benefits under variable annuity and variable life
insurance contracts. See "General Information" in the Penn Series prospectus
for a discussion of possible risks associated with the sale of shares to other
separate accounts.
Like other business organizations and individuals around the world, the
Separate Account could be adversely affected if the computer systems do not
properly process and calculate date-related information from and after January
1, 2000. This is commonly known as the "Year 2000 Problem." Penn Mutual is
taking steps that it believes are reasonably designed to address the Year 2000
Problem with respect to the computer systems that it uses and to obtain
satisfactory assurances that comparable steps are being taken by the Separate
Account's major service providers. At this time, however, there can be no
assurance that these steps will be sufficient to avoid any adverse impact on
the Separate Account.
- --------------------------------------------------------------------------------
THE CONTRACT
The Owner determines (1) the amount and frequency of the purchase payments to
be made to Penn Mutual, (2) the Funds of Penn Series Funds, Inc. in which the
purchase payments are invested, (3) transfers among subaccounts of the Separate
Account and to the fixed account provided under the Contract, (4) the form of
annuity to be paid after the accumulation period, (5) the beneficiary to whom
death benefits are to be paid, and (6) the amount and frequency of withdrawals
from the Participant's Variable Account Value.
During the annuity period, the person entitled to the annuity may transfer
annuity values among subaccounts of the Separate Account. Further, if the
annuity is for a specified number of years (under Option 1 in the Contract),
the person entitled to the annuity may withdraw the present value of annuity
payments remaining to be paid.
Upon death of the Participant prior to the Annuity Date, the beneficiary will
receive the death benefit in a lump sum (or in the form of an annuity under
some circumstances).
The Contracts may be amended at any time to conform to applicable laws or
governmental regulations. If, in our judgment, investment in any of the Penn
Series Funds becomes inappropriate to the purposes of the Contracts, we may,
with approval of the Securities and Exchange Commission and the governing state
insurance department, substitute another Fund for existing and future
investments.
Owner inquiries may be made by writing The Penn Mutual Life Insurance
Company, Customer Service Group, Philadelphia, PA 19172. Or, you can call, toll
free, 1-800-523-0650.
- --------------------------------------------------------------------------------
PURCHASES
A completed application for participation in a Contract, together with a
check for the first purchase payment, is forwarded to our service office.
Normally, a completed application form received at our service office will be
accepted within two business days. If an incomplete application is not
completed and acted upon within five business days, the purchase payment will
be returned unless the Owner requests that we retain it while he or she
completes the application. All subsequent purchase payments are sent directly
to our service office.
The minimum purchase for a Participant is $25 (or such lesser amounts we may
establish). Total purchase payments in a calendar year for a Participant may
not exceed $1,000,000 without our consent.
Purchase payments are credited to a Participant's Variable Account in the
form of Accumulation Units of the subaccount selected. The number of
Accumulation Units credited is determined by dividing the purchase payment by
the value of the Accumulation Unit at the end of the valuation period in which
the purchase payment is received at our service office or, in a case of the
first purchase payment, is accepted by us.
The principal underwriter of the Contracts and Certificates (under federal
securities laws) is Hornor, Townsend & Kent, Inc., 600 Dresher Road, Horsham,
PA 19044 and CBL Equities, Inc., Twenty-Sixth Century Boulevard, Nashville, TN
37214. Hornor, Townsend & Kent, Inc. is a wholly owned subsidiary of Penn
Mutual. CBL Equities, Inc. is a wholly owned subsidiary of Willis Corroon
Corporation.
10
<PAGE>
- --------------------------------------------------------------------------------
ACCUMULATION UNITS
For each subaccount of the Separate Account the value of an Accumulation Unit
was set at $10 when the subaccount was established. The value of an
Accumulation Unit may increase or decrease from one valuation period to the
next.
A valuation period is the period from one valuation to the next. Valuation is
performed each day the New York Stock Exchange is open for trading.
The value of an Accumulation Unit for a valuation period is determined by
multiplying the value of an Accumulation Unit for the prior valuation period by
the net investment factor for the subaccount for the valuation period.
The net investment factor is a measure of (1) investment performance of Fund
shares held in the subaccount, (2) any taxes on income or gains from
investments held in the subaccount and (3) the mortality and expense risk
charges assessed against the subaccount. Under current law, no taxes are levied
against income or gain from investments held in a subaccount.
- --------------------------------------------------------------------------------
ANNUITY PAYMENTS
The Owner may choose (1) an annuity for a specified number of years (not less
than 5 or more than 30), (2) a life annuity, (3) a life annuity with payments
guaranteed for 10 or 20 years, (4) a joint and survivor annuity or (5) such
other form of annuity as we may agree upon. Annuity Payments do not start until
an annuity option is chosen by the Owner.
The level of the annuity payments are determined by various factors,
including the form of annuity chosen, the age and expected duration of the
annuity period, the performance of the applicable investment accounts, and the
annuity purchase rates and charges specified in the Contract.
The mortality and expense risk charges specified in the Contracts are
assessed during both the accumulation and annuity pay-out phases of the
Contract. We continue to assess the charges during payment of a variable
annuity not involving a life contingency although we no longer bear any
mortality risk on such payment obligation.
The annuity purchase rates assume an investment return of 4%. If the
investment return on a share of the applicable Penn Series Fund is greater than
4%, the level of the annuity payments increases. If the investment return is
less than 4%, the level of the annuity payments decreases.
The Annuity Date selected by the Owner may not be later than the first day of
the next month after the Annuitant's 85th birthday. Annuity payments will be
made on the first day of each month starting with the Annuity Date. The Owner
may change the annuity option or Annuity Date by giving written notice at our
service office at least 30 days prior to the Annuity Date.
If the Participant's Variable Account Value is less than $2,000, we may elect
to pay such amount in lump sum in place of an annuity. Annuity payments
generally are made monthly; however, if any payment would be less than $50, we
may change the frequency so that payments are at least $50 each.
- --------------------------------------------------------------------------------
PAYMENT ON DEATH
If the Participant dies prior to the Annuity Date, we will pay the
beneficiary the greater of the sum of all purchase payments, adjusted for
withdrawals and Contract transfers, or the Participant's Variable Account Value
for the valuation period in which proof of death and any other required
information needed to make payment is received at our service office. Payment
will be in a lump sum. In lieu of receiving a lump sum payment, the beneficiary
may elect an annuity option, provided that payment is made within five years or
payment commences within one year of death and is made over the beneficiary's
life or over a period not longer than the beneficiary's life expectancy. If the
beneficiary is the Participant's spouse, the beneficiary may elect an annuity
option that was available to the deceased Participant. "Proof of death" in the
foregoing means a death certificate or other official document establishing
death.
If the Participant dies on or after the Annuity Date and the annuity is for a
specified number of years or for life with payments guaranteed for 10 or 20
years, the beneficiary may elect to have the payments continue for the
specified or guaranteed period or to receive in lump sum the present value of
the remaining payments.
- --------------------------------------------------------------------------------
TRANSFERS
The Owner or person entitled to the annuity may transfer Accumulation and
Annuity Unit values from one subaccount of the Separate Account to another, and
may transfer all or part of the Participant's Variable Account Value to the
Fixed account, subject to a limit of four transfers during a calendar year.
11
<PAGE>
Transfers will be based on values at the end of the valuation period in which
the transfer request is received at our service office.
A request must be received at our service office, and all applicable
requirements for transfer must be met, prior to death of the Participant. No
transfer may be made after the thirtieth day before the Annuity Date. The
minimum transfer amount is $250 and for a partial transfer the remaining
balance in the Participant's Variable Account must be $250. The Separate
Account and Penn Mutual will not be liable for following instructions
communicated by telephone that we reasonably believe to be genuine. We require
certain personal identifying information to process a telephone transfer.
The Owner may transfer amounts from the fixed account to the Participant's
Variable Account to the extent provided in the fixed account provisions of the
Contract.
- --------------------------------------------------------------------------------
WITHDRAWALS
Prior to the earlier of the death of the Participant or the Annuity Date, the
Owner may withdraw all or part of the Participant's Variable Account Value.
After the Annuity Date, an Owner who has chosen an annuity for a specified
number of years under Option 1 of the Contract (or other person receiving such
annuity), may withdraw the present value of the annuity. Withdrawals will be
based on values at the end of the valuation period in which the written request
for withdrawal (and the Certificate, in case of full withdrawal) are received
at our service office. Payment will normally be made within seven days of
receipt of the written request and the Certificate, if required. A partial
withdrawal must be at least $250 and the remaining Participant's Variable
Account Value must be at least $250.
With respect to Contracts qualifying under Section 403(b) of the Internal
Revenue Code, there are certain restrictions on withdrawals. Withdrawals
attributable to purchase payments made after December 31, 1988 pursuant to a
salary reduction agreement may be made only if the Owner is over the age of 59
1/2, leaves the employment of the employer, dies or becomes disabled as defined
in the Code. Withdrawals (other than withdrawals attributable to income earned
on purchase payments) may also be possible in the case of hardship as defined
in the Code. The restrictions do not apply to transfers among subaccounts and
may also not apply to transfers to other investments qualifying under Section
403(b). The restrictions on withdrawals under Section 403(b) Contracts are
imposed in reliance upon a no-action letter issued by the Chief of the Office
of Insurance Products and Legal Compliance of the Securities and Exchange
Commission to the American Council of Life Insurance dated November 28, 1988.
Penn Mutual will comply with the conditions set forth in that letter.
- --------------------------------------------------------------------------------
DEFERMENT OF PAYMENTS AND TRANSFERS
We reserve the right to defer a withdrawal, a transfer of values or annuity
payments if (a) the New York Stock Exchange is closed (other than customary
weekend and holiday closings); (b) trading on the Exchange is restricted; (c)
an emergency exists such that it is not reasonably practical to dispose of
securities held in the Separate Account or to determine the value of its
assets; or (d) the Securities and Exchange Commission by order so permits for
the protection of investors. Conditions described in (b) and (c) will be
decided by, or in accordance with rules of, the Commission.
- --------------------------------------------------------------------------------
DEDUCTIONS AND EXPENSES
Each year on the date specified in the Certificate (and on the date the
Participant's Variable Account Value is withdrawn in full if other than the
date specified), we deduct a variable account administration charge of $30 from
the Participant's Variable Account Value. This charge is made to reimburse us
for expenses relating to administration of the Contracts and is made by
canceling Accumulation Units credited to the Participant's Variable Account.
We deduct a daily expense risk charge equal to an annual rate of 0.5% of the
daily net asset value of the Separate Account. This charge is made to
compensate us for the risk of guaranteeing not to increase the contract
administration charge regardless of actual administrative costs.
We deduct a daily mortality risk charge equal to an annual rate of 0.75% of
the daily net asset value of the Separate Account. This charge is to compensate
us for the mortality guarantees (e.g. guarantees that the annuity factors will
never be decreased even if mortality experience is substantially different than
originally assumed) we make under the Contract.
A contingent deferred sales charge may be deducted in the event of full or
partial withdrawal of the Participant's Variable Account Value or withdrawal of
the present value of remaining annuity payments. This charge is made to cover
sales expenses that we have incurred. Sales expenses which are not covered by
the deferred sales charge are paid from the surplus of Penn Mutual, which may
include proceeds from the expense and mortality risk charges.
12
<PAGE>
If the contingent deferred sales charge applies, it will be 5% of the amount
withdrawn and will be made by canceling Accumulation Units credited to the
Participant's Variable Account. No charge will be made on a withdrawal if the
Participant has provided due proof of disability. Further, no charge will be
made on that portion of the first withdrawal made during an enrollment year
that does not exceed the following percentages of the sum of the Participant's
Variable Account Value and the Participant's fixed account value under the
Contract:
<TABLE>
<CAPTION>
PARTICIPANT'S ENROLLMENT YEAR PERCENTAGE
--------------------------------------------------
<S> <C>
Second through Seventh 10%
--------------------------------------------------
Eighth 25%
--------------------------------------------------
Ninth 50%
--------------------------------------------------
Tenth 75%
--------------------------------------------------
</TABLE>
No charge will be made on any withdrawal after the Participant has been
enrolled for ten years.
Some states and municipalities impose premium taxes on purchase payments
received by insurance companies. Any premium taxes payable will be deducted at
the Annuity Date. Currently, they range from 0% to 3.5%.
- --------------------------------------------------------------------------------
THE FIXED INTEREST OPTIONS
BECAUSE OF EXEMPTIVE AND EXCLUSIONARY PROVISIONS, INTERESTS IN PENN MUTUAL'S
GENERAL ACCOUNT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND
THE GENERAL ACCOUNT HAS NOT BEEN REGISTERED AS AN INVESTMENT COMPANY UNDER THE
INVESTMENT COMPANY ACT OF 1940. THE GENERAL ACCOUNT AND ANY INTERESTS HELD IN
THE GENERAL ACCOUNT ARE THEREFORE NOT SUBJECT TO THE PROVISIONS OF THESE ACTS.
PENN MUTUAL HAS BEEN ADVISED THAT THE STAFF OF THE SECURITIES AND EXCHANGE
COMMISSION HAS NOT REVIEWED THE DISCLOSURE IN THIS PROSPECTUS RELATING TO THE
FIXED ACCOUNT. DISCLOSURE REGARDING THE FIXED ACCOUNT, HOWEVER, MAY BE SUBJECT
TO GENERALLY APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS RELATING TO
THE ACCURACY AND COMPLETENESS OF STATEMENTS MADE IN THIS PROSPECTUS.
Owners of Contracts may allocate or transfer all or part of the Participants'
Variable Account to one or more of the following fixed interest options in the
Fixed Account: (1) the Fixed Holding Account; (2) the One Year Guaranteed
Account; and (3) the Three Year Guaranteed Account. The minimum amount for an
allocation to the Fixed Holding Account is $50; the minimum amount for an
allocation to the One Year Guaranteed Account or the Three Year Guaranteed
Account is $250. We periodically declare an effective annual interest rate
applicable to allocations to the various fixed interest options. For each
amount allocated to the Fixed Holding Account, interest will be credited at an
effective annual interest rate declared by us on the first day of each calendar
year. The declared rate of interest will apply through the end of the calendar
year in which an allocation is made to the Fixed Holding Account at which time
a new rate will be declared by Penn Mutual. For each amount allocated to the
One Year Guaranteed Account and the Three Year Guaranteed Account, interest
will be credited at an annual effective interest rate declared by us each
month. The declared rate of interest will apply through the end of the twelve
month and thirty-six month periods, as applicable, which begin on the first day
of the calendar month in which the allocation is made. We guarantee an
effective annual rate of interest on allocations to all fixed interest options
of not less than 4%. In addition, rates declared during the first seven
contract years for the One Year Guaranteed Account will not be less than the 52
week Treasury Bill discount rate obtained from the most recent regularly
scheduled auction.
Owners may transfer Fixed Account funds to the Separate Account or to another
fixed interest option within the Fixed Account, subject to the conditions and
limitations in the fixed account provisions of the Contract. A premature
withdrawal charge may be deducted from the interest earned on any amount that
is withdrawn from the Three Year Guaranteed Account during the period for which
an interest rate is guaranteed. In no event will the premature withdrawal
charge invade the Participant's principal investment in the applicable fixed
interest option. In accordance with state law, we may defer a withdrawal or
transfer from the Fixed Account for up to six months if we reasonably determine
that investment conditions are such that an orderly sale of assets in Penn
Mutual's general account is not feasible.
Participants under Contracts qualifying under Section 403(b) of the Internal
Revenue Code may be able to borrow against a portion of the amount credited to
them under the Contract, provided the loan privilege has been approved in the
applicable state. The loan will be made from the general account of Penn
Mutual. Because the prospectus generally is limited to describing the variable
portion of the Contract, you should review the Contract loan endorsement or
consult your Penn Mutual representative for a complete description of the terms
of the loan privilege, including minimum and maximum loan amounts, repayment
terms, and restrictions on prepayments. The following paragraphs describe how
exercise of the loan privilege may relate to the Participant's Variable Account
Value.
13
<PAGE>
First, at the time a contract loan is made and in accordance with the
Participant's direction, an amount equal to the initial loan amount will be
transferred from the Contract's investment options to an account in Penn
Mutual's general account called the "Restricted Account." Amounts transferred
from investment options to the Restricted Account will not participate in the
investment experience of those investment options. Amounts transferred to the
Restricted Account will generally earn interest at a rate 3 percentage points
less than the rate of interest charged on the loan.
Second, on the anniversary of the Participant's participation in the
Contract, the accrued interest in the Restricted Account will be transferred to
the Participant's investment options in accordance with the Participant's
current payment allocation instructions.
Third, loan repayments, which are due quarterly, will result in the transfer
of an amount equal to the principal portion of the repayment from the
Restricted Account to the Fixed Holding Account. Participant may then transfer
amounts from the Fixed Holding Account to the other investment options offered
under the Contract.
Fourth, if a payment or the entire loan is in default as defined in the
Contract, Penn Mutual will report the amount of the default to the Internal
Revenue Service as a taxable distribution and, if the Participant is under age
59 1/2, as a premature distribution. Subject to restrictions in Section 403(b)
of the Code, the amount of any missed payment, plus interest, or the entire
loan balance, plus interest, if the entire loan is in default, plus any
applicable contingent deferred sales charge, will be withdrawn by Penn Mutual
from the Contract's investment options in the following order: (a) Fixed
Holding Account; (b) One Year Guaranteed Account; (c) pro rata from the
Subaccounts of the Variable Account; and (d) Three Year Guaranteed Account. The
net proceeds from the withdrawal will be used to repay the loan. If a
withdrawal is restricted under the Code, the outstanding loan balance will
continue to accrue interest and the amount due will be withdrawn when a
withdrawal becomes permissible. Thus, when an event takes place which makes
withdrawal from the Contract permissible under the Code, such as attainment of
age 59 1/2, disability or death, the Contract will be checked to determine if
there is an outstanding loan balance for which one or more payments have been
missed. If so, funds necessary to pay the overdue amount, plus any applicable
contingent deferred sales charge, will be withdrawn from the Contract's
investment options in the order set forth in the preceding paragraph. While a
loan balance is outstanding, any withdrawal or death benefit proceeds must
first be used to pay the loan.
Loans are subject to the terms of the Contract, the Code and the Employee
Retirement Income Security Act of 1974, all of which may impose restrictions.
Penn Mutual reserves the right to suspend, modify or terminate the availability
of loans. Where there is a plan fiduciary, it is the responsibility of the
fiduciary to ensure that any Contract loans comply with plan qualification
requirements, including ERISA.
- --------------------------------------------------------------------------------
FEDERAL INCOME TAX CONSIDERATIONS
The following brief discussion of federal income tax considerations is based
on the law in effect on the date of this prospectus. The Government Accounting
Office and the Treasury Department have submitted congressionally mandated
studies of the tax treatment of life insurance and annuities. Whether these
studies will result in any subsequent legislative changes in the tax treatment
of annuity contracts is uncertain. It is anticipated, however, that any
legislative changes will be prospective in nature.
Under current law, no federal income taxes are imposed on increases in the
value of a Participant's Variable Account until distribution occurs, either in
the form of a withdrawal or death benefit or as annuity payments under an
annuity option.
For a withdrawal or death benefit, the taxable portion is generally the
amount in excess of the cost basis of the Participant's Variable Account.
Amounts withdrawn by the Owner or received as a death benefit by the designated
beneficiary are treated first as taxable income to the extent of the excess of
the Participant's Variable Account Value over the purchase payments made by or
on behalf of the Participant. Such taxable portion is taxed at ordinary income
tax rates. Designation of a beneficiary who is either 37 1/2 years younger than
the Owner or a grandchild of the Owner may have Generation Skipping Transfer
Tax consequences under Section 2601 of the Internal Revenue Code.
For annuity payments, the taxable portion is generally determined by a
formula that establishes the ratio of the cost basis of the Participant's
Variable Account (as adjusted for any refund feature) to the expected return
under the Contract. The taxable portion, which is the amount of the annuity
payment in excess of the cost basis, is taxed at ordinary income tax rates.
An additional income tax of 10% may be imposed on the taxable portion of an
early withdrawal or distribution unless one of several exceptions apply. There
will be no additional income tax on early withdrawals which are part of a
series of substantially equal periodic payments (not less frequently than
annually) made for life (or life expectancy) of the taxpayer or the joint lives
(or joint life expectancies) of the taxpayer and a beneficiary, or on
withdrawals made on or after age 59 1/2. There also will be no additional tax
on distributions made after death or on withdrawals attributable to disability.
Further, there will be no additional tax on distributions within certain other
exceptions to the general rule.
14
<PAGE>
The transfer of a Participant's Variable Account for less than adequate
consideration may result in the transferor incurring tax. The taxable portion
would be the Participant's Variable Account Value at the time of transfer over
the investment in the Account at such time. This rule does not apply to
transfers between spouses or to transfers incident to a divorce.
Subject to certain exceptions, a Contract must be held by or on behalf of a
natural person in order to be treated as an annuity contract under federal
income tax law and to be accorded the tax treatment described in the preceding
paragraphs. If a Contract is not treated as an annuity contract for federal
income tax purposes, the income on the Contract is treated as ordinary income
received or accrued by the Contract Owner during the taxable year.
Section 817(h) of the Internal Revenue Code provides that the investments of
a separate account underlying a variable annuity contract which is not
purchased under a qualified retirement plan (or the investments of a mutual
fund, the shares of which are owned by the variable annuity separate account)
must be "adequately diversified" in order for the contract to be treated as an
annuity contract for tax purposes. The Treasury Department has issued
regulations prescribing such diversification requirements. The Separate
Account, through each of the Funds of Penn Series, intends to comply with those
requirements. The requirements are briefly discussed in the accompanying
prospectus for Penn Series.
The Treasury Department has indicated that in regulations or revenue rulings
under Section 817(d) (relating to the definition of a variable contract), it
will provide guidance on the extent to which contract owners may direct their
investments to particular subaccounts without being treated as owners of the
underlying shares. It is possible that when such regulations or rulings are
issued certain of the Contracts may need to be modified to comply with them.
The Contracts may be used in connection with retirement plans that qualify
for special tax treatment under the Code. The plans include individual
retirement annuities qualified under Section 408(b) of the Code (referred to as
IRAs), simplified employee pension plans qualified under Section 408(k) of the
Code, tax deferred annuities qualified under Section 403(b) of the Code, state
and local government deferred compensation plans qualified under Section 457 of
the Code, pension or profit sharing plans for self-employed individuals
qualified under Section 401 of the Code (referred to as H.R. 10 or Keogh plans)
and corporate pension or profit sharing plans qualified under Section 401 of
the Code, or annuity plans qualified under Section 403(a) of the Code. Special
provisions are required in some Contracts for qualification under the Code.
For some types of qualified retirement plans, there may be no cost basis in
the Contract. In this case, the total payments received may be taxable. Before
participating in a Contract under a qualified retirement plan, the tax law
provisions applicable to the particular plan should be considered.
Generally, under a nonqualified annuity or individual retirement annuity
qualified under Section 408(b), unless the Participant elects to the contrary,
any amounts that are received under the Contract that Penn Mutual believes are
includable in gross income for tax purposes will be subject to withholding to
meet federal income tax obligations. The same treatment will apply to
distributions from a qualified plan or Section 403(b) annuity that are payable
as an annuity for the life or life expectancy of one or more individuals, or
for a period of at least 10 years, or are required minimum distributions. Other
distributions from a qualified plan or a Section 403(b) annuity are subject to
federal income tax withholding, unless an election is made to make a direct
transfer to another eligible retirement plan. (Depending upon applicable State
law, however, mandatory withholding may not apply to distributions from a
Section 403(b) annuity plan maintained by a State or local government until
1994.) Distributions from a Section 457 deferred compensation plan are wages
subject to general income tax withholding requirements.
It should be understood that the foregoing description of federal income
taxes is not exhaustive and that special rules and considerations may be
applicable. For further information, a prospective purchaser should consult
qualified tax counsel.
15
<PAGE>
- --------------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION CONTENTS
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
VARIABLE ANNUITY PAYMENTS..................................................
First Variable Annuity Payments.......................................... B-2
Subsequent Variable Annuity Payments..................................... B-2
Annuity Units............................................................ B-2
Value of Annuity Units................................................... B-2
Net Investment Factor.................................................... B-2
Assumed Interest Rate.................................................... B-3
Valuation Period......................................................... B-3
- --------------------------------------------------------------------------------
PERFORMANCE DATA........................................................... B-4
Average Annual Total Return.............................................. B-4
Annual Changes in Accumulation Unit Values............................... B-12
Yields (Money Market Fund)............................................... B-13
- --------------------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS AND CERTIFICATES................................. B-13
- --------------------------------------------------------------------------------
CUSTODIAN.................................................................. B-14
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS....................................................... B-14
- --------------------------------------------------------------------------------
LEGAL MATTERS.............................................................. B-14
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS....................................................... B-14
- --------------------------------------------------------------------------------
</TABLE>
16
<PAGE>
PART B
------
Information Required in a Statement
-----------------------------------
of Additional Information
-------------------------
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION -- MAY 1, 1998
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
THE PENN MUTUAL LIFE INSURANCE COMPANY
PHILADELPHIA, PA 19172 . TELEPHONE (215) 956-8000
- --------------------------------------------------------------------------------
This statement of additional information is not a prospectus. It should be read
in conjunction with the current prospectus for Penn Mutual Diversifier II
Variable/Fixed Contracts and Penn Mutual Diversifier II Variable Contracts or
the current prospectus for Penn Mutual Optimizer Group Variable and Fixed
Annuity Contracts, both dated May 1, 1998. The Contracts are funded through
Penn Mutual Variable Annuity Account III (referred to herein as the "Separate
Account"). To obtain a prospectus you may write to The Penn Mutual Life
Insurance Company, Customer Service Group, Philadelphia, PA 19172. Or, you may
call, toll free, 1-800-523-0650.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
VARIABLE ANNUITY PAYMENTS.................................................. B-2
First Variable Annuity Payment........................................... B-2
Subsequent Variable Annuity Payments..................................... B-2
Annuity Units............................................................ B-2
Value of Annuity Units................................................... B-2
Net Investment Factor.................................................... B-2
Assumed Interest Rate.................................................... B-3
Valuation Period......................................................... B-3
- --------------------------------------------------------------------------------
PERFORMANCE DATA........................................................... B-4
Average Annual Total Return.............................................. B-4
Annual Changes in Accumulation Unit Values............................... B-12
Yields (Money Market Fund)............................................... B-13
- --------------------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS AND CERTIFICATES................................. B-13
- --------------------------------------------------------------------------------
CUSTODIAN.................................................................. B-14
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS....................................................... B-14
- --------------------------------------------------------------------------------
LEGAL MATTERS.............................................................. B-14
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS....................................................... B-14
- --------------------------------------------------------------------------------
</TABLE>
B-1
<PAGE>
- --------------------------------------------------------------------------------
VARIABLE ANNUITY PAYMENTS
- --------------------------------------------------------------------------------
FIRST VARIABLE ANNUITY PAYMENT
The dollar amount of the first monthly annuity payment will be determined by
applying the net contract or variable account value to the annuity table set
forth in the contract for the annuity option chosen. The annuity tables show
the amount of the first monthly income payment under each annuity option for
each $1,000 of value applied. The annuity tables for the Diversifier II
Variable/Fixed Contracts are based on the 1983 Individual Annuity Mortality
Tables and the annuity tables for the Diversifier II Variable Contracts and the
Penn Mutual Optimizer Group Variable and Fixed Annuity Contracts are based on
the 1971 Individual Annuity Mortality Tables. The tables assume a rate of
interest of 4%. The amount of the first monthly income for each $1,000 of value
is shown at various ages.
The United States Supreme Court has ruled that life annuity payments under an
employer's retirement plan may not be based upon sex-distinct mortality tables.
Where this decision applies or where otherwise required by law, Penn Mutual
will provide annuity payments based upon unisex tables.
- --------------------------------------------------------------------------------
SUBSEQUENT VARIABLE ANNUITY PAYMENTS
The dollar amount of subsequent variable annuity payments will vary in
accordance with the investment experience of the subaccount(s) of the Separate
Account applicable to the annuity. Each subsequent variable annuity payment
will equal the number of annuity units credited, multiplied by the value of the
annuity unit for the valuation period. Penn Mutual guarantees that the amount
of each subsequent annuity payment will not be affected by variations in
expense or mortality experience.
- --------------------------------------------------------------------------------
ANNUITY UNITS
For each subaccount selected, the number of annuity units is the amount of
the first annuity payment allocated to the subaccount divided by the value of
an annuity unit for the subaccount on the annuity date. The number will not
change as a result of investment experience.
- --------------------------------------------------------------------------------
VALUE OF ANNUITY UNITS
For each subaccount selected, the value of an annuity unit was arbitrarily
set at $10 when the subaccount was established. The value may increase or
decrease from one valuation period to the next. For a valuation period, the
value of an annuity unit for a subaccount is the value of an annuity unit for
the subaccount for the last prior valuation period multiplied by the net
investment factor for the subaccount for the valuation period. The result is
then multiplied by a factor to neutralize the assumed interest rate of 4%
included in the annuity tables.
- --------------------------------------------------------------------------------
NET INVESTMENT FACTOR
For any subaccount the net investment factor for a valuation period is
determined by dividing (a) by (b) and subtracting (c):
WHERE (A) IS:
The net asset value per share of the Fund held in the subaccount, as of the
end of the valuation period
plus
----
The per share amount of any dividend or capital gain distributions by the
Fund if the "ex-dividend" date occurs in the valuation period
plus or minus
-------------
A per share charge or credit, as we may determine as of the end of the
valuation period, for provision for taxes (if applicable).
B-2
<PAGE>
WHERE (B) IS:
The net asset value per share of the Fund held in the subaccount as of the
end of the last prior valuation period
plus or minus
-------------
The per share charge or credit for provision for taxes as of the end of the
last prior valuation period (if applicable).
WHERE (C) IS:
The sum of the daily expense risk charge and the daily mortality risk
charge. On an annual basis, the sum of such charges equals 1.25% of the
daily net asset value of the Separate Account.
- --------------------------------------------------------------------------------
ASSUMED INTEREST RATE
A 4% assumed annual interest rate is included in the annuity tables in the
contracts. A higher assumption would mean a higher first annuity payment but
more slowly rising and more rapidly falling subsequent payments. A lower
assumption would have the opposite effect. If the actual net investment rate is
4% on an annual basis, annuity payments will be level.
- --------------------------------------------------------------------------------
VALUATION PERIOD
Valuation period is the period from one valuation to the next. Valuation is
performed each day the New York Stock Exchange is open for trading.
B-3
<PAGE>
- --------------------------------------------------------------------------------
PERFORMANCE DATA
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN
The returns calculated below reflect a hypothetical return as if the Separate
Account had invested in the underlying funds for the indicated periods (not all
Funds were offered to the Separate Account in all of the periods indicated).
Tables 1A, 1B, 1C and 1D show the average annual rates of total return on
hypothetical investments of $1,000, through the Separate Account, in Funds of
Penn Series Funds, Inc., American Century Variable Portfolios, Inc., Neuberger
and Berman Advisers Management Trust, Fidelity Investments' Variable Insurance
Products Fund, Fidelity Investments' Variable Insurance Products Fund II and
Morgan Stanley Universal Funds, Inc., for periods ended December 31, 1997, and
assume withdrawal of the investments at the end of the period.
TABLE 1A -- DIVERSIFIER II VARIABLE/FIXED ANNUITY CONTRACT
(ASSUMING NO PURCHASE PAYMENTS MADE AFTER FIRST CONTRACT YEAR)
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- --------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 08/11/83 16.88% 12.26% 12.34% 11.31%
Nonqualified Plans (a). 06/01/83 16.88% 12.26% 12.34% 11.09%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 15.21% 16.35% 14.93% 12.72%
(OpCap Advisors)
Small Capitalization 03/01/95 13.80% N/A NA 16.16%
(a)....................
(OpCap Advisors)
Emerging Growth (a) (g). 05/01/97 29.20% N/A N/A 29.20%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 6.34% 12.08% 12.34% 13.39%
(T. Rowe Price
Associates)
International Equity 11/01/92 1.81% 11.40% N/A 11.54%
(a)....................
(Vontobel USA)
Quality Bond (a)........ 03/17/87 -.19% 5.34% 7.23% 6.62%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 6.94% 9.08% 9.63% 9.30%
(T. Rowe Price
Associates)
Capital Appreciation 11/20/87 -10.69% 3.51% 7.10% 7.73%
Portfolio (b)..........
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 10.43% 8.14% N/A 9.74%
(Neuberger & Berman)
Limited Maturity Bond 09/10/84 -1.25% 3.72% 5.71% 6.82%
(c)....................
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 21.44% N/A N/A 21.69%
(Neuberger & Berman)
Equity Income (d)....... 10/09/86 18.44% 17.78% 15.12% 13.10%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 14.12% 15.78% 15.63% 14.04%
(Fidelity Investments)
Asset Manager (e)....... 09/06/89 11.62% 10.94% N/A 11.32%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 22.89% 18.02% N/A 18.23%
(Fidelity Investments)
Emerging Markets Equity
(International) (f).... 10/01/96 -7.35% N/A N/A -7.08%
(Morgan Stanley)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
(b)American Century Variable Portfolios, Inc.
(c)Neuberger and Berman Advisers Management Trust
(d)Fidelity Investments' Variable Insurance Products Fund
(e)Fidelity Investments' Variable Insurance Products Fund II
(f)Morgan Stanley Universal Funds, Inc.
(g)Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-4
<PAGE>
- --------------------------------------------------------------------------------
TABLE 1B -- DIVERSIFIER II VARIABLE/FIXED ANNUITY CONTRACT
(ASSUMING PURCHASE PAYMENTS MADE AFTER FIRST CONTRACT YEAR)
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 08/11/83 16.88% 12.16% 12.24% 11.31%
Nonqualified Plans (a). 06/01/83 16.88% 12.16% 12.24% 11.09%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 15.21% 16.24% 14.83% 12.72%
(OpCap Advisors)
Small Capitalization
(a).................... 03/01/95 13.80% N/A N/A 16.16%
(OpCap Advisors)
Emerging Growth (a) (g). 05/01/97 46.70% N/A N/A 46.70%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 6.34% 11.98% 12.24% 13.39%
(T. Rowe Price
Associates)
International Equity
(a).................... 11/01/92 1.81% 11.29% N/A 11.34%
(Vontobel USA)
Quality Bond (a)........ 03/17/87 -.19% 5.25% 7.13% 6.62%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 6.94% 8.98% 9.53% 9.30%
(T. Rowe Price
Associates)
Capital Appreciation
Portfolio (b).......... 11/20/87 -10.69% 3.42% 7.00% 7.73%
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 10.43% 8.04% N/A 9.58%
(Neuberger & Berman)
Limited Maturity Bond
(c).................... 09/10/84 -1.25% 3.62% 5.62% 6.82%
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 21.44% N/A N/A 21.69%
(Neuberger & Berman)
Equity Income (d)....... 10/09/86 18.44% 17.67% 15.01% 13.10%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 14.12% 15.67% 15.53% 14.04%
(Fidelity Investments)
Asset Manager (e)....... 09/06/89 11.62% 10.84% N/A 11.13%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 22.89% 17.91% N/A 18.03%
(Fidelity Investments)
Emerging Markets Equity
(International)(f)..... 10/01/96 -7.35% N/A N/A -7.08%
(Morgan Stanley)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
(b)American Century Variable Portfolios, Inc.
(c)Neuberger and Berman Advisers Management Trust
(d)Fidelity Investments' Variable Insurance Products Fund
(e)Fidelity Investments' Variable Insurance Products Fund II
(f)Morgan Stanley Universal Funds, Inc.
(g)Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-5
<PAGE>
TABLE 1C -- DIVERSIFIED II VARIABLE CONTRACT
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 08/11/83 19.77% 12.26% 12.17% 11.31%
Nonqualified Plans (a). 06/01/83 19.77% 12.26% 12.17% 11.09%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 17.99% 16.45% 14.79% 12.72%
(OpCap Advisors)
Small Capitalization
(a).................... 03/01/95 16.45% N/A N/A 16.75%
(OpCap Advisors)
Emerging Growth (a) (g). 05/01/97 53.03% N/A N/A 53.03%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 8.53% 12.07% 12.17% 13.39%
(T. Rowe Price
Associates)
International Equity
(a).................... 11/01/92 3.73% 11.37% N/A 11.33%
(Vontobel USA)
Quality Bond (a)........ 03/17/87 1.69% 5.12% 6.96% 6.62%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 9.15% 8.98% 9.41% 9.30%
(T. Rowe Price
Associates)
Capital Appreciation
Portfolio (b).......... 11/20/87 -8.94% 3.22% 6.82% 7.73%
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 12.87% 8.01% N/A 9.47%
(Neuberger & Berman)
Limited Maturity Bond
(c).................... 09/10/84 .62% 3.43% 5.41% 6.82%
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 24.62% N/A N/A 22.12%
(Neuberger & Berman)
Equity Income (d)....... 10/09/86 21.41% 17.91% 14.98% 13.10%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 16.80% 15.87% 15.50% 14.04%
(Fidelity Investments)
Asset Manager (e)....... 09/06/89 14.13% 10.90% N/A 11.04%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 26.17% 18.16% N/A 18.19%
(Fidelity Investments)
Emerging Markets Equity
(International) (f).... 10/01/96 -5.56% N/A N/A -6.36%
(Morgan Stanley)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
(b)American Century Variable Portfolios, Inc.
(c)Neuberger and Berman Advisers Management Trust
(d)Fidelity Investments' Variable Insurance Products Fund
(e)Fidelity Investments' Variable Insurance Products Fund II
(f)Morgan Stanley Universal Funds, Inc.
(g)Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-6
<PAGE>
- --------------------------------------------------------------------------------
TABLE 1D -- PENN MUTUAL OPTIMIZER GROUP VARIABLE ANNUITY CONTRACT
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Quality Plans (a)...... 08/11/83 19.13% 11.84% 12.20% 11.31%
Nonqualified Plans (a). 06/01/83 19.13% 11.84% 12.20% 11.09%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 17.43% 15.92% 14.79% 12.72%
(OpCap Advisors)
Flexibly Managed (a).... 07/31/84 8.39% 11.66% 12.20% 13.39%
(T. Rowe Price
Associates)
Quality Bond (a)........ 03/17/87 1.73% 4.95% 7.09% 6.62%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 9.00% 8.68% 9.49% 9.30%
(T. Rowe Price
Associates)
International Equity
(a).................... 11/01/92 3.77% 10.98% N/A 10.94%
(Vontobel USA)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
The average annual rates of total return shown in Tables lA, 1B, 1C and 1D
are computed by finding the average annual compounded rates of return over the
periods shown that would equate the initial amount invested to the withdrawal
value, in accordance with the following formula: P(1 + T)n = ERV. In the
formula, P is a hypothetical investment payment of $1,000; T is the average
annual total return; n is the number of years; and ERV is the withdrawal value
at the end of the periods shown. The contract or account administration charge
is prorated among the investment options available under the contract according
to the average number of contracts and accounts that have money allocated to
the investment option and the sum of the average number of contracts and
accounts that have money allocated to each of the investment options, except in
the case of the new Fidelity Investments' investment options offered under the
Diversifier II contracts. Since the Fidelity Investments' investment options
were not made available until May 1, 1995, the contract administrative charge
was pro-rated to those investment options by assuming that money and contracts
were allocated equally among all of the investment options.
B-7
<PAGE>
- --------------------------------------------------------------------------------
Tables 2A and 2B show the average annual rates of total return on
hypothetical investments of $1,000, through the Separate Account, in Funds of
the Penn Series Funds, Inc., American Century Variable Portfolios, Inc.,
Neuberger and Berman Advisers Management Trust, Fidelity Investments' Variable
Insurance Products Fund, Fidelity Investments' Variable Insurance Products Fund
II and Morgan Stanley Universal Funds, Inc., for periods ended December 31,
1997, and assumes the investments are not withdrawn at the end of the period.
TABLE 2A -- DIVERSIFIER II VARIABLE/FIXED CONTRACT AND
DIVERSIFIER II VARIABLE CONTRACT
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 08/11/83 24.77% 12.88% 12.34% 11.31%
Nonqualified Plans (a). 06/01/83 24.77% 12.88% 12.34% 11.09%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 22.99% 16.99% 14.93% 12.72%
(OpCap Advisors)
Small Capitalization
(a).................... 03/01/95 29.62% N/A N/A 18.06%
(OpCap Advisors)
Emerging Growth (a) (g). 05/01/97 61.72% N/A N/A 61.72%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 13.53% 12.70% 12.34% 13.39%
(T. Rowe Price
Associates)
International Equity
(a).................... 11/01/92 8.68% 12.01% NA 11.94%
(Vontobel USA)
Quality Bond (a)........ 03/17/87 6.53% 5.92% 7.23% 6.62%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 14.15% 9.68% 9.63% 9.30%
(T. Rowe Price
Associates)
Capital Appreciation
Portfolio (b).......... 11/20/87 -4.67% 4.08% 7.10% 7.73%
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 17.87% 8.74% N/A 9.74%
(Neuberger & Berman)
Limited Maturity Bond
(c).................... 09/10/84 5.39% 4.29% 5.71% 6.82%
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 29.62% N/A N/A 22.88%
(Neuberger & Berman)
Equity Income (d)....... 10/09/86 26.41% 18.42% 15.12% 13.10%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 14.04% 15.63% 16.42% 21.80%
(Fidelity Investments)
Asset Manager (e)....... 09/06/89 19.13% 11.55% N/A 11.32%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 31.17% 18.67% N/A 18.64%
(Fidelity Investments)
Emerging Markets Equity
(International) (f).... 10/01/96 -1.11% N/A N/A -2.85%
(Morgan Stanley)
</TABLE>
- -----------------------
*Represents the date the underlying Fund was established.
(a)Penn Series Funds, Inc.
(b)American Century Variable Portfolios, Inc.
(c)Neuberger and Berman Advisers Management Trust.
(d)Fidelity Investments' Variable Insurance Products Fund.
(e)Fidelity Investments' Variable Insurance Products Fund II.
(f)Morgan Stanley Universal Funds, Inc.
(g)Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-8
<PAGE>
TABLE 2B -- PENN MUTUAL OPTIMIZER GROUP VARIABLE AND FIXED ANNUITY CONTRACT
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 08/11/83 24.77% 12.88% 12.34% 11.31%
Nonqualified Plans (a). 06/01/83 24.77% 12.88% 12.34% 11.09%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 22.99% 16.99% 14.93% 12.72%
(OpCap Advisors)
Flexibly Managed (a).... 07/31/84 13.53% 12.70% 12.34% 13.39%
(T. Rowe Price
Associates)
International Equity
(a).................... 11/01/92 8.68% 12.01% N/A 11.94%
(Vontobel USA)
Quality Bond (a)........ 03/17/87 6.53% 5.92% 7.23% 6.62%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 14.15% 9.68% 9.63% 9.30%
(T. Rowe Price
Associates)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
B-9
<PAGE>
- --------------------------------------------------------------------------------
Tables 3A and 3B show the average annual rates of total return on
hypothetical investments of $10,000, through the Separate Account, in Funds of
the Penn Series Funds, Inc., American Century Variable Portfolios, Inc.,
Neuberger and Berman Advisers Management Trust and Fidelity Investments'
Variable Insurance Products Fund, Variable Insurance Products Fund II and
Morgan Stanley Universal Funds, Inc., for period ended December 31, 1997, and
assumes the investments are not withdrawn at the end of the period.
TABLE 3A -- DIVERSIFIER II VARIABLE/FIXED CONTRACT AND
DIVERSIFIER II VARIABLE CONTRACT
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 08/11/83 25.13% 13.20% 12.58% 11.53%
Nonqualified Plans (a). 06/01/83 25.13% 13.20% 12.58% 11.30%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 23.38% 17.32% 15.18% 13.00%
(OpCap Advisors)
Small Capitalization
(a).................... 03/01/95 21.49% N/A N/A 18.09%
(OpCap Advisors)
Emerging Growth (a) (g). 05/01/97 38.05% N/A N/A 38.05%
(RS Investment
Management)
Flexibly Managed (a).... 07/31/84 14.15% 13.20% 12.73% 13.70%
(T. Rowe Price
Associates)
International Equity
(a).................... 11/01/92 9.00% 12.25% N/A 12.21%
(Vontobel USA)
Quality Bond (a)........ 03/17/87 6.67% 6.05% 7.33% 6.73%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 14.33% 9.84% 9.76% 9.42%
(T. Rowe Price
Associates)
Capital Appreciation
Portfolio (b).......... 11/20/87 -4.48% 4.25% 7.23% 7.87%
(American Century
Investment Management)
Balanced Portfolio (c).. 02/28/89 17.96% 8.82% N/A 9.81%
(Neuberger & Berman)
Limited Maturity Bond
(c).................... 09/10/84 5.41% 4.31% 5.73% 6.84%
(Neuberger & Berman)
Partners Portfolio (c).. 03/22/94 29.77% N/A N/A 23.01%
(Neuberger & Berman)
Equity Income (d)....... 10/09/86 26.51% 18.50% 15.18% 13.16%
(Fidelity Investments)
Growth Portfolio (d).... 10/09/86 21.93% 16.52% 15.71% 14.12%
(Fidelity Investments)
Asset Manager (e)....... 09/06/89 19.15% 11.57% N/A 11.33%
(Fidelity Investments)
Index 500 (e)........... 08/27/92 31.32% 18.79% N/A 18.76%
(Fidelity Investments)
Emerging Markets Equity
(International) (f).... 10/01/96 -.95% N/A N/A -2.63%
(Morgan Stanley)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
(b)American Century Variable Portfolios, Inc.
(c)Neuberger and Berman Advisers Management Trust.
(d)Fidelity Investments' Variable Insurance Products Fund.
(e)Fidelity Investments' Variable Insurance Products Fund II.
(f)Morgan Stanley Universal Funds, Inc.
(g)Average Annual Total Return for period May 1, 1997 to December 31, 1997
B-10
<PAGE>
- --------------------------------------------------------------------------------
TABLE 3B -- PENN MUTUAL OPTIMIZER GROUP VARIABLE AND FIXED ANNUITY CONTRACT
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
---------------------------------------------------------------------
FROM INCEPTION
INCEPTION ONE YEAR FIVE YEARS TEN YEARS DATE THROUGH
FUND (MANAGER) DATE* ENDED 12/31/97 ENDED 12/31/97 ENDED 12/31/97 12/31/97
- -------------- --------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 08/11/83 25.13% 13.20% 12.58% 11.53%
Nonqualified Plans (a). 06/01/83 25.13% 13.20% 12.58% 11.30%
(Independence Capital
Management)
Value Equity (a)........ 03/17/87 23.38% 17.32% 15.18% 13.00%
(OpCap Advisors)
Flexibly Managed (a).... 07/31/84 14.15% 13.20% 12.73% 13.70%
(T. Rowe Price
Associates)
International Equity
(a).................... 11/01/92 9.00% 12.25% N/A 12.21%
(Vontobel USA)
Quality Bond (a)........ 03/17/87 6.67% 6.05% 7.33% 6.73%
(Independence Capital
Management)
High Yield Bond (a)..... 08/06/84 14.33% 9.84% 9.76% 9.42%
(T. Rowe Price
Associates)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
The average annual rates of total return shown in Tables 2A, 2B, 3A and 3B
are computed by finding the average annual compounded rates of return over the
periods shown that would equate the initial amount invested to the Contract
account value at the end of the periods shown, in accordance with the following
formula: P(1 + T) n = FV. In the formula, P is a hypothetical investment of
$1,000 in Tables 2A and 2B and $10,000 in Tables 3A and 3B; T is the average
annual total return; n is the number of years; and FV is the Contract account
value at the end of the periods shown. The contract or account administration
charge is prorated among the investment options available under the contract
according to the average number of contracts and accounts that have money
allocated to the investment option and the sum of the average number of
contracts and accounts that have money allocated to each of the investment
options, except in the case of the new Fidelity Investments' investment options
offered under the Diversifier II contracts. Since the Fidelity Investments'
investment options were not made available until May 1, 1995, the contract
administrative charge was pro-rated to those investment options by assuming
that money and contracts were allocated equally among all of the investment
options. The average annual rates of total returns reflect all recurring
charges, but do not reflect the contingent deferred sales charge ranging from
7% to 1% in the case of the Diversifier II Variable/Fixed Contracts or the
contingent deferred sales charge of 5% in the case of the Diversifier II
Variable Contracts and the Penn Mutual Optimizer Group Variable and Fixed
Annuity Contracts which, if applicable, would reduce the amount that may be
withdrawn under the Contract.
B-11
<PAGE>
- --------------------------------------------------------------------------------
ANNUAL CHANGES IN ACCUMULATION UNIT VALUES
Tables 4A and 4B show the changes in values of accumulation units issued for
each of the Funds of the Penn Series Funds, Inc., American Century Variable
Portfolios, Inc., Neuberger and Berman Advisers Management Trust and Fidelity
Investment's Variable Insurance Product Fund and Fund II for each of the
calendar years 1987 through 1997 for which the investment option was offered.
Accumulation unit values do not reflect the $30 annual contract or account
administration charge or the contingent deferred sales charge that may be
applicable to a withdrawal from the Contract.
TABLE 4A -- DIVERSIFIER II VARIABLE/FIXED CONTRACT AND
DIVERSIFIER II VARIABLE CONTRACT
<TABLE>
<CAPTION>
ANNUAL RATE OF CHANGE IN ACCUMULATION UNIT VALUES
--------------------------------------------------------------------------
FUND (MANAGER) 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -------------- ------ ----- ----- ----- ------ ----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 25.17% 18.27% 24.88% 9.26% -11.00% 4.60% -33.10% 12.30% 29.60% 11.30%
Nonqualified Plans (a). 25.17% 18.27% 24.88% 9.26% -11.00% 4.60% -33.10% 12.30% 29.60% 11.30%
(Independence Capital
Management)
Value Equity (a)........ 23.42% 23.63% 35.77% 1.65% 5.70% 13.40% 26.10% 9.30% -11.50% 27.90%
(OpCap Advisors)
Small Capitalization
(a).................... 21.50% 18.26% 11.71% N/A N/A N/A N/A N/A N/A N/A
(OpCap Advisors)
Emerging Growth Fund
(a).................... 38.06% N/A N/A N/A N/A N/A N/A N/A N/A N/A
(RS Investment
Management)
Flexibly Managed (a).... 14.22% 14.92% 20.76% 2.85% 14.40% 8.20% 20.10% 2.10% -19.60% 17.40%
(T. Rowe Price
Associates)
International Equity
(a).................... 9.03% 15.41% 13.39% 7.47% -36.40% N/A N/A N/A N/A N/A
(Vontobel USA)
Quality Bond (a)........ 6.69% 2.84% 18.65% 6.47% -10.30% 5.20% 14.20% 6.60% 11.30% 6.10%
(Independence Capital
Management)
High Yield Bond (a)..... 14.35% 12.46% 14.97% 8.48% -18.30% 14.40% 35.20% -10.00% 1.90% -16.20%
(T. Rowe Price
Associates)
Money Market (a)........ 3.85% 3.69% 4.21% 2.43% 1.30% 1.80% 4.60% 5.60% 7.60% 5.80%
(Independence Capital
Management)
Capital Appreciation
Portfolio (b).......... -4.46% 5.51% 29.47% -2.40% N/A N/A N/A N/A N/A N/A
(American Century
Investment Management)
Balanced Portfolio (c).. 17.97% 5.56% 22.22% -4.56% N/A N/A N/A N/A N/A N/A
(Neuberger & Berman)
Limited Maturity Bond
(c).................... 5.41% 3.01% 9.56% -1.39% N/A N/A N/A N/A N/A N/A
(Neuberger & Berman)
Partners Portfolio (c).. 24.11% N/A N/A N/A N/A N/A N/A N/A N/A N/A
(Neuberger & Berman)
Equity Income (d)....... 26.52% 12.86% 19.20% N/A N/A N/A N/A N/A N/A N/A
(Fidelity Investors
Research)
Growth (d).............. 21.95% 13.28% 23.59% N/A N/A N/A N/A N/A N/A N/A
(Fidelity Investors
Research)
Asset Manager (e)....... 19.15% 13.18% 11.53% N/A N/A N/A N/A N/A N/A N/A
(Fidelity Investors
Research)
Index 500 (e)........... 21.62% N/A N/A N/A N/A N/A N/A N/A N/A N/A
(Fidelity Investors
Research)
Emerging Markets Equity
(International) (f).... -10.25% N/A N/A N/A N/A N/A N/A N/A N/A N/A
(Morgan Stanley)
</TABLE>
- -----------------------
(a)Penn Series Funds, Inc.
(b)American Century Variable Portfolios, Inc.
(c)Neuberger and Berman Advisers Management Trust.
(d)Fidelity Investments' Variable Insurance Products Fund.
(e)Fidelity Investments' Variable Insurance Products Fund II.
(f)Morgan Stanley Universal Funds, Inc.
B-12
<PAGE>
- --------------------------------------------------------------------------------
TABLE 4B -- PENN MUTUAL OPTIMIZER GROUP VARIABLE AND FIXED ANNUITY CONTRACT
<TABLE>
<CAPTION>
ANNUAL RATE OF CHANGE IN ACCUMULATION UNIT VALUES
-----------------------------------------------------------------------------
FUND (MANAGER) 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
- -------------- ----- ----- ----- ---- ------ ----- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Growth Equity
Qualified Plans (a).... 25.17% 18.27% 24.88% 9.26% -11.00% 4.60% -33.10% 12.30% 29.60% 11.30%
Nonqualified Plans (a). 25.17% 18.27% 24.88% 9.26% -11.00% 4.60% -33.10% 12.30% 29.60% 11.30%
Independence Capital
Management)
Value Equity (a)........ 23.42% 23.63% 35.77% 1.65% 5.70% 13.40% 26.10% 9.30% -11.50% 27.90%
(OpCap Advisors)
International Equity
(a).................... 9.03% 15.41% 13.39% 7.47% -36.40% N/A N/A N/A N/A N/A
(Vontobel USA)
Quality Bond (a)........ 6.69% 2.84% 18.65% 6.47% -10.30% 5.20% 14.20% 6.60% 11.30% 6.10%
(Independence Capital
Management)
High Yield Bond (a)..... 14.35% 12.46% 14.97% 8.48% -18.30% 14.40% 35.20% -10.00% 1.90% -16.20%
(T. Rowe Price
Associates)
Money Market (a)........ 3.85% 3.69% 4.21% 2.43% 1.30% 1.80% 4.60% 5.60% 7.60% 5.80%
(Independence Capital
Management)
(Fidelity Investors
Research)
</TABLE>
- -----------------------
*Represents the date the underlying fund was established.
(a)Penn Series Funds, Inc.
- --------------------------------------------------------------------------------
YIELDS (MONEY MARKET FUND)
The "yield" and "effective yield" of the Money Market Fund subaccount for the
seven days ended December 31, 1997 were 3.40% and 3.46%, respectively.
The yield is computed by determining the net change, exclusive of capital
changes, in the value of a hypothetical preexisting account having a balance of
one accumulation unit of the subaccount at the beginning of the period,
subtracting a hypothetical charge reflecting deductions from Contract Owner
accounts, and dividing the difference by the value of the account at the
beginning of the base period to obtain the base period return, and then
multiplying the base period return by (365/7) with the resulting figure carried
to at least the nearest hundredth of 1%. The hypothetical charge reflects
deductions from Contract Owners' accounts in proportion to the length of the
base period. The contract or variable account administration charge is prorated
among investment options available under the contract. It is prorated according
to the average number of contracts or accounts that have money allocated to the
investment option in proportion to the sum of the average number of contracts
or accounts that have money allocated to each of the investment options
available under the same kind of contract.
The effective yield is obtained by taking the base period return as computed
above, and then compounding the base period return by adding 1, raising the sum
to a power equal to 365 divided by 7, and subtracting 1 from the result,
according to the following formula: Effective Yield = [(base period return + 1)
/3//6//5///7/] -1.
The yields do not reflect the contingent deferred sales charge ranging from
7% to 1% in the case of the Diversifier II Variable/Fixed Contracts or 5% in
the case of the Diversifier II Variable Contracts and the Penn Mutual Optimizer
Group Variable and Fixed Annuity Contracts. The deferred sales charge may or
may not be applicable to a withdrawal from a Contract, depending on when the
withdrawal is made.
THE YIELDS ON AMOUNTS HELD IN THE MONEY MARKET SUBACCOUNT NORMALLY WILL
FLUCTUATE ON A DAILY BASIS. THEREFORE, THE STATED YIELDS FOR ANY GIVEN PERIOD
ARE NOT AN INDICATION OR REPRESENTATION OF FUTURE YIELDS.
---------------------------------
THE PERFORMANCE INFORMATION SET FORTH ABOVE IS FOR PAST PERFORMANCE AND IS
NOT AN INDICATION OR REPRESENTATION OF FUTURE PERFORMANCE.
- --------------------------------------------------------------------------------
DISTRIBUTION OF CONTRACTS AND CERTIFICATES
Hornor, Townsend & Kent, Inc., a wholly owned subsidiary of Penn Mutual, serves
as principal underwriter of the combination variable and fixed annuity
contracts and the variable annuity contracts. The address of Hornor, Townsend &
Kent, Inc. is 600 Dresher Road, Horsham, PA 19044. For 1997, 1996 and 1995,
Penn Mutual paid Hornor, Townsend & Kent, Inc. underwriting commissions of
$436,619.45 , $403,603.91 and $357,316, respectively.
B-13
<PAGE>
Hornor, Townsend & Kent, Inc. serves as principal underwriter of certificates
issued under the group variable and fixed annuity contracts. For 1995, Penn
Mutual paid underwriting commissions of approximately $19,896. For 1997 and
1996, Penn Mutual paid no underwriting commissions to Horner, Townsend & Kent,
Inc. in relation to the group variable and fixed annuity contracts.
Applications for combination variable and fixed annuity contracts and the
variable annuity contracts and for certificates issued under group variable and
fixed annuity contracts are solicited on a continuous basis by life insurance
agents of Penn Mutual. The life insurance agents are broker-dealers or
associated with broker-dealers under federal securities laws. Agents are paid
commissions. Other allowances and overrides may also be paid. Total commissions
paid on purchase payments made under the contracts will not exceed 6%.
- --------------------------------------------------------------------------------
CUSTODIAN
Penn Mutual is custodian of the assets held in the Separate Account.
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS
Ernst & Young LLP serve as independent auditors of The Penn Mutual Life
Insurance Company and Penn Mutual Variable Annuity Account III. Their offices
are located at 2001 Market Street, Suite 4000, Philadelphia, PA 19103.
- --------------------------------------------------------------------------------
LEGAL MATTERS
Morgan, Lewis & Bockius LLP of Philadelphia, Pennsylvania, has provided advice
on certain matters relating to the federal securities laws and the offering of
the Contracts and Certificates.
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
The financial statements of the Separate Account and Penn Mutual are set forth
on the following pages. The financial statements of Penn Mutual should be
distinguished from the financial statements of the Separate Account and should
be considered only as bearing upon Penn Mutual's ability to meet its
obligations under the Contracts.
B-14
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
THE PENN MUTUAL LIFE INSURANCE COMPANY AND CONTRACT OWNERS
OF PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
We have audited the accompanying statement of assets and liabilities of Penn
Mutual Variable Annuity Account III (comprising, respectively, Money Market
Fund, Quality Bond Fund, High Yield Bond Fund, Growth Equity Fund-Qualified,
Growth Equity Fund-Non-Qualified, Value Equity Fund, Flexibly Managed Fund,
Small Capitalization Fund, International Equity Fund, Emerging Growth Fund,
Balanced Portfolio, Limited Maturity Bond Portfolio, Partners Portfolio,
Capital Appreciation Portfolio, Equity Income Portfolio, Growth Portfolio,
Asset Manager Portfolio, Index 500 Portfolio, and Emerging Markets Equity
Portfolio) as of December 31, 1997, and the related statements of operations
and changes in net assets for the year or period then ended. These financial
statements are the responsibility of the management of Penn Mutual Variable
Annuity Account III. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of Penn
Mutual Variable Annuity Account III for the year ended December 31, 1996, were
audited by other auditors whose report dated April 7, 1997, expressed an
unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1997 financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
portfolios constituting the Penn Mutual Variable Annuity Account III at
December 31, 1997, the results of their operations and changes in their net
assets for the year or period then ended, in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
---------------------
Philadelphia, Pennsylvania
March 30, 1998
B-15
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
TO THE PENN MUTUAL LIFE INSURANCE COMPANY AND CONTRACT OWNERS
OF PENN MUTUAL VARIABLE ANNUITY ACCOUNT III:
We have audited the accompanying statement of changes in net assets of the Penn
Mutual Variable Annuity Account III (comprising, respectively, Money Market
Fund, Quality Bond Fund, High Yield Bond Fund, Growth Equity Fund-Qualified,
Growth Equity Fund-Non-Qualified, Value Equity Fund, Flexibly Managed Fund,
Small Capitalization Fund, International Equity Fund, Balanced Portfolio,
Limited Maturity Bond Portfolio, Capital Appreciation Portfolio (formerly TCI
Growth Portfolio) Equity Income Portfolio, Growth Portfolio, and Asset Manager
Portfolio for the year ended December 31, 1996. This financial statement is the
responsibility of the management of Penn Mutual Variable Annuity Account III.
Our responsibility is to express an opinion on this financial statement based
on our audit.
We conducted our audit 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, 1996 by
correspondence with the transfer agents. 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 audit provides a reasonable basis for our opinion.
In our opinion, the financial statement referred to above presents fairly, in
all material respects, the changes in net assets of Penn Mutual Variable
Annuity Account III for the year ended December 31, 1996, in conformity with
generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P
Coopers & Lybrand L.L.P
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 7, 1997
B-16
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1997
<TABLE>
<CAPTION>
GROWTH EQUITY
MONEY MARKET QUALITY BOND HIGH YIELD FUND
TOTAL FUND+ FUND+ BOND FUND+ QUALIFIED+
-------------- ------------ ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT IN COMMON
STOCK
Number of shares....... -- 21,838,522 2,975,968 4,439,138 3,554,577
Identified cost........ $ 842,735,525 $21,838,522 $30,412,330 $42,392,449 $68,870,068
ASSETS:
Investments at value... $1,037,365,689 $21,838,522 $30,354,878 $42,260,592 $86,625,034
Dividends receivable... 106,513 106,513 0 0 0
LIABILITIES:
Due to The Penn Mutual
Life Insurance
Company............... 450,319 48,758 12,300 17,448 29,703
-------------- ----------- ----------- ----------- -----------
NET ASSETS.............. $1,037,021,883 $21,896,277 $30,342,578 $42,243,144 $86,595,331
============== =========== =========== =========== ===========
Variable annuity
accumulation units..... -- 1,120,603 1,497,635 1,261,904 1,794,481
Accumulation unit
values................. -- $ 19.54 $ 20.26 $ 33.48 $ 48.26
- ---------------------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997
<CAPTION>
GROWTH EQUITY
MONEY MARKET QUALITY BOND HIGH YIELD FUND
TOTAL FUND+ FUND+ BOND FUND+ QUALIFIED+
-------------- ------------ ------------ ----------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 22,553,682 $ 1,158,849 $ 1,682,979 $ 3,262,755 $ 307,220
EXPENSE:
Mortality and expense
risk charges.......... 11,880,359 289,998 377,718 486,542 1,012,501
-------------- ----------- ----------- ----------- -----------
Net investment income
(loss)................ 10,673,323 868,851 1,305,261 2,776,213 (705,281)
-------------- ----------- ----------- ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS:
Realized gains (losses)
from redemption of
fund shares........... 344,665 0 (75,348) 57,619 410,155
Capital gains
distributions......... 52,089,700 0 12,365 0 8,718,669
-------------- ----------- ----------- ----------- -----------
Net realized gains
(losses) from
investment
transactions.......... 52,434,365 0 (62,983) 57,619 9,128,824
Net change in
unrealized
appreciation
(depreciation) of
investments........... 80,424,769 0 690,652 2,285,110 9,242,987
-------------- ----------- ----------- ----------- -----------
Net realized and
unrealized gains
(losses) on
investments........... 132,859,134 0 627,669 2,342,729 18,371,811
-------------- ----------- ----------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 143,532,457 $ 868,851 $ 1,932,930 $ 5,118,942 $17,666,530
============== =========== =========== =========== ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of May
1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date Fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-17
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GROWTH EQUITY FLEXIBLY SMALL INTERNATIONAL EMERGING
FUND VALUE EQUITY MANAGED CAPITALIZATION EQUITY GROWTH BALANCED
NON-QUALIFIED+ FUND+ FUND+ FUND+ FUND+ FUND+ PORTFOLIO++
- -------------- ------------ ------------ -------------- ------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
1,213,512 9,129,159 16,960,679 1,228,572 4,681,948 331,229 1,281,381
$24,103,753 $133,687,807 $276,113,918 $15,759,608 $63,929,345 $4,596,371 $19,753,962
$29,573,297 $205,862,532 $336,330,260 $17,728,301 $75,519,818 $4,256,287 $22,808,576
0 0 0 0 0 0 0
10,094 80,234 142,388 7,241 30,830 1,600 8,996
----------- ------------ ------------ ----------- ----------- ---------- -----------
$29,563,203 $205,782,298 $336,187,872 $17,721,060 $75,488,988 $4,254,687 $22,799,580
=========== ============ ============ =========== =========== ========== ===========
617,717 5,409,879 5,974,993 1,104,032 4,155,960 308,169 1,466,154
$ 47.86 $ 38.04 $ 56.27 $ 16.05 $ 18.16 $ 13.81 $ 15.55
- ----------------------------------------------------------------------------------------------
<CAPTION>
GROWTH EQUITY FLEXIBLY SMALL INTERNATIONAL EMERGING
FUND VALUE EQUITY MANAGED CAPITALIZATION EQUITY GROWTH BALANCED
NON-QUALIFIED+ FUND+ FUND+ FUND+ FUND+ FUND+(A) PORTFOLIO++
- -------------- ------------ ------------ -------------- ------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
$ 104,688 $ 2,490,533 $ 9,412,265 $ 83,013 $ 2,323,614 $ 0 $ 370,140
346,107 2,319,055 3,986,659 167,451 937,516 15,096 269,719
----------- ------------ ------------ ----------- ----------- ---------- -----------
(241,419) 171,478 5,425,606 (84,438) 1,386,098 (15,096) 100,421
----------- ------------ ------------ ----------- ----------- ---------- -----------
152,345 42,646 395,576 3,339 (14,857) (2,154) 89,410
2,970,955 11,136,244 19,215,461 1,046,224 2,510,614 324,153 950,026
----------- ------------ ------------ ----------- ----------- ---------- -----------
3,123,300 11,178,890 19,611,037 1,049,563 2,495,757 321,999 1,039,436
3,158,895 26,725,711 16,726,884 1,463,910 2,281,822 (340,083) 2,360,126
----------- ------------ ------------ ----------- ----------- ---------- -----------
6,282,195 37,904,601 36,337,921 2,513,473 4,777,579 (18,084) 3,399,562
----------- ------------ ------------ ----------- ----------- ---------- -----------
$ 6,040,776 $ 38,076,079 $ 41,763,527 $ 2,429,035 $ 6,163,677 $ (33,180) $ 3,499,983
=========== ============ ============ =========== =========== ========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
B-18
<PAGE>
- -------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1997 (CONT'D.)
<TABLE>
<CAPTION>
LIMITED CAPITAL
MATURITY BOND PARTNERS APPRECIATION EQUITY INCOME
PORTFOLIO++ PORTFOLIO++ PORTFOLIO+++ PORTFOLIO++++
------------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT IN COMMON
STOCK
Number of shares....... 394,051 401,035 2,055,354 2,351,167
Identified cost........ $5,680,952 $7,999,159 $19,014,169 $46,563,852
ASSETS:
Investments at value... $5,563,995 $8,261,315 $19,895,825 $57,086,338
Dividends receivable... 0 0 0 0
LIABILITIES:
Due to The Penn Mutual
Life Insurance
Company............... 2,294 3,166 7,785 21,398
---------- ---------- ----------- -----------
NET ASSETS.............. $5,561,701 $8,258,149 $19,888,040 $57,064,940
========== ========== =========== ===========
Variable annuity
accumulation units..... 465,682 665,382 1,567,237 3,352,648
Accumulation unit
values................. $ 11.94 $ 12.41 $ 12.69 $ 17.02
- ----------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENT OF OPERATIONS - FOR THE YEAR ENDED DECEMBER 31, 1997 (CONT'D.)
<CAPTION>
LIMITED CAPITAL
MATURITY BOND PARTNERS APPRECIATION EQUITY INCOME
PORTFOLIO++ PORTFOLIO++(A) PORTFOLIO+++ PORTFOLIO++++
------------- -------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends.............. $ 303,056 $ 0 $ 0 $ 598,028
EXPENSE:
Mortality and expense
risk charges.......... 65,864 28,275 281,031 581,526
---------- ---------- ----------- -----------
Net investment income
(loss)................ 237,192 (28,275) (281,031) 16,502
---------- ---------- ----------- -----------
REALIZED AND UNREALIZED
GAINS (LOSSES) ON
INVESTMENTS:
Realized gains (losses)
from redemption of
fund shares........... 10,303 1,377 (760,913) (14,804)
Capital gains
distributions......... 0 0 518,846 3,006,750
---------- ---------- ----------- -----------
Net realized gains
(losses) from
investment
transactions.......... 10,303 1,377 (242,067) 2,991,946
Net change in
unrealized
appreciation
(depreciation) of
investments........... 26,677 262,156 (562,269) 7,434,103
---------- ---------- ----------- -----------
Net realized and
unrealized gains
(losses) on
investments........... 36,980 263,533 (804,336) 10,426,049
---------- ---------- ----------- -----------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $ 274,172 $ 235,258 $(1,085,367) $10,442,551
========== ========== =========== ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of
May 1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-19
<PAGE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EMERGING
GROWTH ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO++++
- ------------- ------------- ---------------- -----------------
<S> <C> <C> <C>
1,453,406 482,629 74,836 236,073
$43,522,487 $7,635,938 $8,095,009 $2,765,826
$53,921,344 $8,692,146 $8,560,460 $2,226,169
0 0 0 0
19,110 3,342 3,165 467
----------- ---------- ---------- ----------
$53,902,234 $8,688,804 $8,557,295 $2,225,702
=========== ========== ========== ==========
3,157,234 577,711 703,585 248,001
$ 17.07 $ 15.04 $ 12.16 $ 8.97
- -----------------------------------------------------------------------------------
<CAPTION>
EMERGING
GROWTH ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO++++(A) PORTFOLIO+++++(A)
- ------------- ------------- ---------------- -----------------
<S> <C> <C> <C>
$ 257,238 $ 184,690 $ 0 $ 14,614
583,460 87,217 34,323 10,301
----------- ---------- ---------- ----------
(326,222) 97,473 (34,323) 4,313
----------- ---------- ---------- ----------
51,266 (3,335) 1,410 630
1,151,446 463,291 0 64,656
----------- ---------- ---------- ----------
1,202,712 459,956 1,410 65,286
8,116,417 625,879 465,450 (539,658)
----------- ---------- ---------- ----------
9,319,129 1,085,835 466,860 (474,372)
----------- ---------- ---------- ----------
$ 8,992,907 $1,183,308 $ 432,537 $ (470,059)
=========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these financial statements.
B-20
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE YEARS ENDED DECEMBER 31, 1997 AND
1996
<TABLE>
<CAPTION>
MONEY MARKET QUALITY BOND
TOTAL FUND+ FUND+
---------------------------- ------------------------ ------------------------
1997 1996 1997 1996 1997 1996
-------------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 10,673,323 $ 11,532,067 $ 868,851 $ 759,315 $ 1,305,261 $ 1,544,879
Net realized gains
(losses) from
investment
transactions.......... 52,434,365 37,969,912 0 0 (62,983) 150,371
Net change in
unrealized
appreciation
(depreciation) of
investments........... 80,424,769 46,904,331 0 0 690,652 (824,626)
-------------- ------------ ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 143,532,457 96,406,310 868,851 759,315 1,932,930 870,624
-------------- ------------ ----------- ----------- ----------- -----------
VARIABLE ANNUITY
ACTIVITIES:
Purchase payments under
variable annuity
contracts............. 267,822,906 251,158,386 34,757,734 27,162,076 5,555,275 6,765,457
Surrender benefits..... (77,835,445) (50,680,346) (9,401,752) (4,072,749) (3,121,924) (3,808,199)
Net transfers.......... (104,394,903) (80,968,012) (26,472,847) (20,416,508) (4,767,816) (6,221,731)
Death benefits......... (5,546,379) (2,139,229) (79,929) (142,708) (447,151) (115,236)
Contract administration
charges............... (867,185) (743,327) (16,669) (17,054) (24,971) (29,245)
Deferred sales charges. (941,155) (771,701) (66,903) (41,242) (26,092) (62,768)
Annuity benefits....... (4,608,091) (2,442,928) (128,331) (75,424) (364,470) (320,805)
-------------- ------------ ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from variable annuity
activities............. 73,629,748 113,412,843 (1,408,697) 2,396,391 (3,197,149) (3,792,527)
-------------- ------------ ----------- ----------- ----------- -----------
Total increase
(decrease) in net
assets................. 217,162,205 209,819,153 (539,846) 3,155,706 (1,264,219) (2,921,903)
NET ASSETS:
Beginning of year...... 819,859,678 610,040,525 22,436,123 19,280,417 31,606,797 34,528,700
-------------- ------------ ----------- ----------- ----------- -----------
END OF YEAR............ $1,037,021,883 $819,859,678 $21,896,277 $22,436,123 $30,342,578 $31,606,797
============== ============ =========== =========== =========== ===========
<CAPTION>
HIGH YIELD GROWTH EQUITY FUND+ GROWTH EQUITY FUND+
BOND FUND+ QUALIFIED NON-QUALIFIED
---------------------------- ------------------------ ------------------------
1997 1996 1997 1996 1997 1996
-------------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 2,776,213 $ 2,119,641 $ (705,281) $ (542,869) $ (241,419) $ (183,089)
Net realized gains
(losses) from
investment
transactions.......... 57,619 118,824 9,128,824 7,424,716 3,123,300 2,529,437
Net change in
unrealized
appreciation
(depreciation) of
investments........... 2,285,110 1,586,645 9,242,987 4,297,206 3,158,895 1,444,325
-------------- ------------ ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 5,118,942 3,825,110 17,666,530 11,179,053 6,040,776 3,790,673
-------------- ------------ ----------- ----------- ----------- -----------
VARIABLE ANNUITY
ACTIVITIES:
Purchase payments under
variable annuity
contracts............. 10,878,709 7,610,868 11,581,131 7,716,325 3,190,214 2,314,525
Surrender benefits..... (3,014,970) (2,415,269) (8,136,075) (6,856,237) (1,856,204) (1,678,052)
Net transfers.......... (4,748,376) (5,087,882) (4,534,426) (5,990,576) (1,209,158) (2,254,703)
Death benefits......... (353,295) (135,215) (195,766) (105,136) (236,434) (153,472)
Contract administration
charges............... (32,949) (33,369) (99,478) (104,241) (17,250) (17,455)
Deferred sales charges. (41,927) (34,353) (85,776) (118,248) (10,756) (21,783)
Annuity benefits....... (263,827) (137,094) (154,666) (86,906) (77,974) (37,834)
-------------- ------------ ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from variable annuity
activities............. 2,423,365 (232,314) (1,625,056) (5,545,019) (217,562) (1,848,774)
-------------- ------------ ----------- ----------- ----------- -----------
Total increase
(decrease) in net
assets................. 7,542,307 3,592,796 16,041,474 5,634,034 5,823,214 1,941,899
NET ASSETS:
Beginning of year...... 34,700,837 31,108,041 70,553,857 64,919,823 23,739,989 21,798,090
-------------- ------------ ----------- ----------- ----------- -----------
END OF YEAR............ $ 42,243,144 $ 34,700,837 $86,595,331 $70,553,857 $29,563,203 $23,739,989
============== ============ =========== =========== =========== ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of May
1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-21
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE YEARS ENDED DECEMBER 31, 1997 AND
1996 (CONT'D.)
<TABLE>
<CAPTION>
VALUE EQUITY FLEXIBLY MANAGED SMALL CAPITALIZATION
FUND+ FUND+ FUND+
-------------------------- -------------------------- -----------------------
1997 1996 1997 1996 1997 1996
------------ ------------ ------------ ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 171,478 $ 37,335 $ 5,425,606 $ 5,954,124 $ (84,438) $ (16,097)
Net realized gains
(losses) from
investment
transactions.......... 11,178,890 6,215,984 19,611,037 11,881,295 1,049,563 291,765
Net change in
unrealized
appreciation
(depreciation) of
investments........... 26,725,711 20,554,315 16,726,884 16,655,730 1,463,910 511,160
------------ ------------ ------------ ------------ ----------- ----------
Net increase (decrease)
in net assets resulting
from operations........ 38,076,079 26,807,634 41,763,527 34,491,149 2,429,035 786,828
------------ ------------ ------------ ------------ ----------- ----------
VARIABLE ANNUITY
ACTIVITIES:
Purchase payments under
variable annuity
contracts............. 39,960,196 35,030,873 58,888,377 64,098,837 9,987,455 6,357,984
Surrender benefits..... (13,261,992) (8,798,687) (21,762,080) (15,678,381) (929,941) (209,690)
Net transfers.......... (8,211,820) (6,534,934) (19,473,960) (11,363,445) (1,369,531) (698,991)
Death benefits......... (1,000,702) (294,674) (2,171,468) (802,242) (106,697) 0
Contract administration
charges............... (142,233) (116,868) (287,496) (259,447) (11,878) (3,494)
Deferred sales charges. (141,327) (104,693) (275,949) (230,482) (9,920) (2,503)
Annuity benefits....... (750,028) (327,102) (1,873,395) (899,490) (27,558) (7,754)
------------ ------------ ------------ ------------ ----------- ----------
Net increase (decrease)
in net assets resulting
from variable annuity
activities............. 16,452,094 18,853,915 13,044,029 34,865,350 7,531,930 5,435,552
------------ ------------ ------------ ------------ ----------- ----------
Total increase
(decrease) in net
assets................. 54,528,173 45,661,549 54,807,556 69,356,499 9,960,965 6,222,380
NET ASSETS:
Beginning of year...... 151,254,125 105,592,576 281,380,316 212,023,817 7,760,095 1,537,715
------------ ------------ ------------ ------------ ----------- ----------
END OF YEAR............ $205,782,298 $151,254,125 $336,187,872 $281,380,316 $17,721,060 $7,760,095
============ ============ ============ ============ =========== ==========
<CAPTION>
INTERNATIONAL EMERGING BALANCED
EQUITY FUND+ GROWTH FUND+ PORTFOLIO++
-------------------------- ------------ -------------------------
1997 1996 1997(A) 1997 1996
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 1,386,098 $ 2,196,202 $ (15,096) $ 100,421 $ 192,678
Net realized gains
(losses) from
investment
transactions.......... 2,495,757 2,208,497 321,999 1,039,436 2,481,947
Net change in
unrealized
appreciation
(depreciation) of
investments........... 2,281,822 4,008,191 (340,083) 2,360,126 (1,619,401)
------------ ------------ ------------ ------------ -----------
Net increase (decrease)
in net assets resulting
from operations........ 6,163,677 8,412,890 (33,180) 3,499,983 1,055,224
------------ ------------ ------------ ------------ -----------
VARIABLE ANNUITY
ACTIVITIES:
Purchase payments under
variable annuity
contracts............. 15,267,035 16,887,411 4,773,188 3,659,563 5,405,171
Surrender benefits..... (5,349,569) (2,870,226) (62,413) (1,445,846) (1,105,007)
Net transfers.......... (6,781,095) (4,015,394) (414,030) (2,735,929) (3,239,725)
Death benefits......... (237,872) (173,872) 0 (234,335) (67,321)
Contract administration
charges............... (73,305) (65,435) (624) (20,492) (20,861)
Deferred sales charges. (72,607) (59,387) (787) (31,195) (21,260)
Annuity benefits....... (274,746) (178,697) (7,467) (132,766) (101,428)
------------ ------------ ------------ ------------ -----------
Net increase (decrease)
in net assets resulting
from variable annuity
activities............. 2,477,841 9,524,400 4,287,867 (941,000) 849,569
------------ ------------ ------------ ------------ -----------
Total increase
(decrease) in net
assets................. 8,641,518 17,937,290 4,254,687 2,558,983 1,904,793
NET ASSETS:
Beginning of year...... 66,847,470 48,910,180 0 20,240,597 18,335,804
------------ ------------ ------------ ------------ -----------
END OF YEAR............ $ 75,488,988 $ 66,847,470 $ 4,254,687 $ 22,799,580 $20,240,597
============ ============ ============ ============ ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger&Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of May
1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-22
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE YEARS ENDED DECEMBER 31, 1997 AND
1996 (CONT'D.)
<TABLE>
<CAPTION>
LIMITED MATURITY PARTNERS CAPITAL APPRECIATION
BOND PORTFOLIO++ PORTFOLIO++ PORTFOLIO+++
------------------------ ----------- ------------------------
1997 1996 1997(A) 1997 1996
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 237,192 $ 380,829 $ (28,275) $ (281,031) $ (387,639)
Net realized gains
(losses) from
investment
transactions.......... 10,303 12,163 1,377 (242,067) 3,392,106
Net change in
unrealized
appreciation
(depreciation) of
investments........... 26,677 (235,270) 262,156 (562,269) (4,797,632)
----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 274,172 157,722 235,258 (1,085,367) (1,793,165)
----------- ----------- ----------- ----------- -----------
VARIABLE ANNUITY
ACTIVITIES:
Purchase payments under
variable annuity
contracts............. 1,780,086 1,719,265 8,417,570 4,600,249 9,581,789
Surrender benefits..... (685,437) (188,216) (127,161) (2,129,250) (1,543,486)
Net transfers.......... (891,379) (1,309,181) (244,197) (10,307,667) (7,344,134)
Death benefits......... (73,242) (26,031) 0 (42,762) (98,132)
Contract administration
charges............... (4,089) (3,677) (950) (29,637) (35,108)
Deferred sales charges. (4,872) (3,176) (1,745) (45,296) (35,717)
Annuity benefits....... (36,318) (38,247) (20,626) (72,368) (65,668)
----------- ----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from variable annuity
activities............. 84,749 150,737 8,022,891 (8,026,731) 459,544
----------- ----------- ----------- ----------- -----------
Total increase
(decrease) in net
assets................. 358,921 308,459 8,258,149 (9,112,098) (1,333,621)
NET ASSETS:
Beginning of year...... 5,202,780 4,894,321 0 29,000,138 30,333,759
----------- ----------- ----------- ----------- -----------
END OF YEAR............ $ 5,561,701 $ 5,202,780 $ 8,258,149 $19,888,040 $29,000,138
=========== =========== =========== =========== ===========
<CAPTION>
EQUITY INCOME GROWTH
PORTFOLIO++++ PORTFOLIO++++
------------------------ ------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss)................ $ 16,502 $ (264,392) $ (326,222) $ (284,183)
Net realized gains
(losses) from
investment
transactions.......... 2,991,946 440,936 1,202,712 764,927
Net change in
unrealized
appreciation
(depreciation) of
investments........... 7,434,103 2,674,214 8,116,417 2,293,958
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from operations........ 10,442,551 2,850,758 8,992,907 2,774,702
----------- ----------- ----------- -----------
VARIABLE ANNUITY
ACTIVITIES:
Purchase payments under
variable annuity
contracts............. 20,275,870 26,675,848 18,702,331 30,085,364
Surrender benefits..... (2,822,385) (499,331) (3,085,102) (859,014)
Net transfers.......... (3,908,648) (2,196,161) (6,992,841) (3,748,070)
Death benefits......... (200,039) (24,282) (147,166) (908)
Contract administration
charges............... (40,423) (14,190) (55,184) (20,135)
Deferred sales charges. (39,449) (11,243) (74,954) (22,973)
Annuity benefits....... (253,800) (104,124) (125,244) (56,653)
----------- ----------- ----------- -----------
Net increase (decrease)
in net assets resulting
from variable annuity
activities............. 13,011,126 23,826,517 8,221,840 25,377,611
----------- ----------- ----------- -----------
Total increase
(decrease) in net
assets................. 23,453,677 26,677,275 17,214,747 28,152,313
NET ASSETS:
Beginning of year...... 33,611,263 6,933,988 36,687,487 8,535,174
----------- ----------- ----------- -----------
END OF YEAR............ $57,064,940 $33,611,263 $53,902,234 $36,687,487
=========== =========== =========== ===========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of May
1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-23
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
STATEMENTS OF CHANGES IN NET ASSETS - FOR THE YEARS ENDED DECEMBER 31, 1997 AND
1996 (CONT'D.)
<TABLE>
<CAPTION>
EMERGING
ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO+++++
---------------------- ------------- --------------
1997 1996 1997(A) 1997(A)
---------- ---------- ------------- --------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income
(loss).................. $ 97,473 $ 25,333 $ (34,323) $ 4,313
Net realized gains
(losses) from investment
transactions............ 459,956 56,944 1,410 65,286
Net change in unrealized
appreciation
(depreciation) of
investments............. 625,879 355,516 465,450 (539,658)
---------- ---------- ---------- ----------
Net increase (decrease) in
net assets resulting from
operations............... 1,183,308 437,793 432,537 (470,059)
---------- ---------- ---------- ----------
VARIABLE ANNUITY
ACTIVITIES:
Purchase payments under
variable annuity
contracts............... 3,737,528 3,746,593 8,905,076 2,905,319
Surrender benefits....... (467,149) (97,802) (159,993) (16,202)
Net transfers............ (528,705) (546,577) (611,399) (191,079)
Death benefits........... (19,521) 0 0 0
Contract administration
charges................. (7,431) (2,748) (1,585) (541)
Deferred sales charges... (10,039) (1,873) (1,208) (353)
Annuity benefits......... (36,991) (5,702) (6,133) (1,383)
---------- ---------- ---------- ----------
Net increase (decrease) in
net assets resulting from
variable annuity
activities............... 2,667,692 3,091,891 8,124,758 2,695,761
---------- ---------- ---------- ----------
Total increase (decrease)
in net assets............ 3,851,000 3,529,684 8,557,295 2,225,702
NET ASSETS:
Beginning of year........ 4,837,804 1,308,120 0 0
---------- ---------- ---------- ----------
END OF YEAR.............. $8,688,804 $4,837,804 $8,557,295 $2,225,702
========== ========== ========== ==========
</TABLE>
- -----------------------
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of May
1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period from May 1, 1997 (date fund became available for investment
to contract owners) to December 31, 1997.
The accompanying notes are an integral part of these financial statements.
B-24
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1997
- --------------------------------------------------------------------------------
NOTE 1.
The significant accounting policies of Penn Mutual Variable Annuity Account
III (Account III) are as follows:
GENERAL - Account III was established by The Penn Mutual Life Insurance
Company (Penn Mutual) under the provisions of the Pennsylvania Insurance
Law. Account III is registered under the Investment Company Act of 1940, as
amended, as a unit investment trust. Account III offers units to variable
annuity contract owners to provide for the accumulation of value and for
the payment of annuities. The preparation of the accompanying financial
statements requires management to make estimates and assumptions that
affect the reported values of assets and liabilities as of December 31,
1997 and the reported amounts from operations and contract transactions
during 1997 and 1996. Actual results could differ from those estimates.
INVESTMENTS - Assets of Account III are invested in shares of Penn Series
Funds, Inc. (Penn Series): Money Market, Quality Bond, High Yield Bond,
Growth Equity, Value Equity, Flexibly Managed, International Equity, Small
Capitalization and Emerging Growth Funds;
- --------------------------------------------------------------------------------
NOTE 2.
For the years ended December 31, 1997 and 1996, transactions in shares of
the respective funds or portfolios were as follows:
<TABLE>
<CAPTION>
MONEY MARKET QUALITY BOND HIGH YIELD GROWTH EQUITY
FUND+ FUND+ BOND FUND+ FUND+
-------------------------- ---------------------- ------------------------ ------------------------
1997 1996 1997 1996 1997 1996 1997 1996
------------ ------------ ---------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased...... 20,568,549 17,593,852 251,577 330,924 772,667 484,617 284,391 169,060
Shares received from
reinvestment of:
Net investment
income.............. 1,158,849 1,023,642 164,998 197,030 342,726 284,084 16,903 19,719
Capital gains
distribution........ 0 0 1,212 0 0 0 479,673 437,770
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Total shares acquired. 21,727,398 18,617,494 417,787 527,954 1,115,393 768,701 780,967 626,549
Shares redeemed....... (22,227,865) (15,436,953) (603,493) (738,839) (572,049) (559,349) (408,204) (567,813)
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Net increase
(decrease) in shares
owned................ (500,467) 3,180,541 (185,706) (210,885) 543,344 209,352 372,763 58,736
Shares owned,
beginning of year.... 22,338,989 19,158,448 3,161,674 3,372,559 3,895,794 3,686,442 4,395,326 4,336,590
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Shares owned, end of
year................. 21,838,522 22,338,989 2,975,968 3,161,674 4,439,138 3,895,794 4,768,089 4,395,326
============ ============ ========== ========== =========== ========== =========== ===========
Cost of shares
acquired............. $ 21,727,398 $ 18,617,494 $4,320,467 $5,361,098 $10,641,144 $6,874,436 $19,086,604 $13,550,324
Proceeds from shares
redeemed............. $ 22,227,865 $ 15,436,953 $6,197,636 $7,605,105 $ 5,435,036 $4,982,181 $10,176,674 $12,259,901
<CAPTION>
EMERGING BALANCED LIMITED MATURITY PARTNERS CAPITAL APPRECIATION
GROWTH FUND+ PORTFOLIO++ BOND PORTFOLIO++ PORTFOLIO++ PORTFOLIO+++
------------ ------------------------ ----------------------- ----------- ------------------------
1997(A) 1997 1996 1997 1996 1997(A) 1997 1996
------------ ------------ ---------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares purchased...... 320,166 111,436 215,796 105,105 96,495 418,360 60,865 412,781
Shares received from
reinvestment of:
Net investment
income.............. 0 23,651 29,112 22,684 33,269 0 0 0
Capital gains
distribution........ 25,226 60,705 161,893 0 0 0 58,627 326,246
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Total shares acquired. 345,392 195,792 406,801 127,789 129,764 418,360 119,492 739,027
Shares redeemed....... (14,163) (186,196) (181,758) (104,158) (92,124) (17,325) (897,871) (420,995)
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Net increase
(decrease) in shares
owned................ 331,229 9,596 225,043 23,631 37,640 401,035 (778,379) 318,032
Shares owned,
beginning of year.... 0 1,271,785 1,046,742 370,420 332,780 0 2,833,733 2,515,701
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Shares owned, end of
year................. 331,229 1,281,381 1,271,785 394,051 370,420 401,035 2,055,354 2,833,733
============ ============ ========== ========== =========== ========== =========== ===========
Cost of shares
acquired............. $ 4,795,749 $ 3,196,421 $6,351,229 $1,760,765 $ 1,802,687 $8,332,538 $ 1,139,068 $ 8,096,102
Proceeds from shares
redeemed............. $ 197,224 $ 3,084,192 $2,835,387 $1,438,121 $ 1,270,338 $ 334,756 $ 8,937,593 $ 4,525,040
</TABLE>
- -----------------------
The cost of net redemptions is determined on a last-in, first-out basis.
+ Investment in Penn Series Funds, Inc.
++ Investment in Neuberger & Berman Advisers Management Trust
+++ Investment in American Century Variable Portfolios, Inc. (TCI Portfolios,
Inc.'s name changed to American Century Variable Portfolios, Inc. as of May
1, 1997)
++++ Investment in Fidelity Investments' Variable Insurance Products Funds I
and II
+++++ Investment in Morgan Stanley Universal Funds, Inc.
(a) For the period May 1, 1997 (date funds became available for investment to
contractholders) to December 31, 1997.
B-25
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1997 (CONT'D)
- --------------------------------------------------------------------------------
NOTE 1. (CONT'D.)
Neuberger & Berman Advisers Management Trust (AMT): Limited Maturity Bond,
Balanced and Partners Portfolios; American Century Variable Portfolios,
Inc. (ACI): Capital Appreciation Portfolio; Fidelity Investments' Variable
Insurance Products (Fidelity): Equity Income, Growth, Asset Manager and
Index 500 Portfolios; and Morgan Stanley Universal Funds, Inc. (MS):
Emerging Markets Equity Portfolio. Penn Series, AMT, ACI, Fidelity and MS
are open-end diversified management investment companies. The investment in
shares of these funds or portfolios are carried at market value as
determined by the underlying net asset value of the respective funds or
portfolios. Dividend income is recorded on the ex-dividend date. Investment
transactions are accounted for on a trade date basis.
FEDERAL INCOME TAXES - Penn Mutual is taxed under federal law as a life
insurance company. Account III is part of the Penn Mutual's total
operations and is not taxed separately. Under existing federal law, no
taxes are payable on investment income and realized gains of Account III.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
VALUE EQUITY FLEXIBLY MANAGED SMALL CAPITALIZATION INTERNATIONAL
FUND+ FUND+ FUND+ EQUITY FUND+
- ------------------------ ------------------------ ---------------------- ----------------------------
1997 1996 1997 1996 1997 1996 1997 1996
- ----------- ----------- ----------- ----------- ---------- ---------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1,060,202 1,164,470 1,357,559 2,076,707 589,715 485,158 437,267 715,483
110,445 86,079 474,647 485,607 5,753 3,365 144,055 141,191
493,847 321,429 969,010 633,475 72,503 23,236 155,649 188,087
- ----------- ----------- ----------- ----------- ---------- ---------- ----------- -----------
1,664,494 1,571,978 2,801,216 3,195,789 667,971 511,759 736,971 1,044,761
(366,624) (227,840) (860,219) (363,469) (58,913) (32,572) (338,680) (141,812)
- ----------- ----------- ----------- ----------- ---------- ---------- ----------- -----------
1,297,870 1,344,138 1,940,997 2,832,320 609,058 479,187 398,291 902,949
7,831,289 6,487,151 15,019,682 12,187,362 619,514 140,327 4,283,657 3,380,708
- ----------- ----------- ----------- ----------- ---------- ---------- ----------- -----------
9,129,159 7,831,289 16,960,679 15,019,682 1,228,572 619,514 4,681,948 4,283,657
=========== =========== =========== =========== ========== ========== =========== ===========
$35,956,431 $29,281,270 $55,402,925 $59,505,713 $9,365,034 $6,110,211 $12,059,639 $16,162,996
$ 8,162,539 $ 4,151,661 $17,664,016 $ 6,762,719 $ 866,491 $ 397,931 $ 5,674,673 $ 2,226,649
<CAPTION>
EMERGING
EQUITY INCOME GROWTH ASSET MANAGER INDEX 500 MARKETS EQUITY
PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO++++ PORTFOLIO+++++
- ------------------------ ------------------------ ---------------------- ------------- --------------
1997 1996 1997 1996 1997 1996 1997(A) 1997(A)
- ----------- ----------- ----------- ----------- ---------- ---------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
662,593 1,248,554 347,674 879,192 194,059 220,911 77,453 240,410
30,203 819 8,151 1,098 11,970 4,421 0 1,611
151,856 23,487 36,484 27,718 30,025 3,646 0 7,128
- ----------- ----------- ----------- ----------- ---------- ---------- ----------- -----------
844,652 1,272,860 392,309 908,008 236,054 228,978 77,453 249,149
(92,232) (34,010) (117,397) (21,860) (39,267) (25,995) (2,617) (13,076)
- ----------- ----------- ----------- ----------- ---------- ---------- ----------- -----------
752,420 1,238,850 274,912 886,148 196,787 202,983 74,836 236,073
1,598,747 359,897 1,178,494 292,346 285,842 82,859 0 0
- ----------- ----------- ----------- ----------- ---------- ---------- ----------- -----------
2,351,167 1,598,747 1,453,406 1,178,494 482,629 285,842 74,836 236,073
=========== =========== =========== =========== ========== ========== =========== ===========
$18,049,343 $24,711,104 $12,995,985 $26,546,059 $3,892,784 $3,580,092 $ 8,376,969 $ 2,910,163
$ 2,003,956 $ 696,843 $ 3,940,633 $ 673,136 $ 662,480 $ 406,541 $ 283,370 $ 144,967
</TABLE>
B-26
<PAGE>
- --------------------------------------------------------------------------------
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
NOTES TO FINANCIAL STATEMENTS - DECEMBER 31, 1997 (CONT'D)
- --------------------------------------------------------------------------------
NOTE 3.
Operations are charged for mortality and expense risks assumed by Penn
Mutual as determined daily at an annual rate of 1.25% of the average value
of Account III. As reimbursement for expenses incurred in administering the
contract, Penn Mutual receives $30 per year from each annuity contract
prior to the contract's date of maturity. The $30 charge is waived on
certain contracts.
If a policy is surrendered within the first 11 years, a contingent deferred
sales charge may be assessed. This charge will be deducted before any
surrender proceeds are paid. See original contract documents for special
charges assessed.
B-27
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
THE BOARD OF TRUSTEES
THE PENN MUTUAL LIFE INSURANCE COMPANY
PHILADELPHIA, PENNSYLVANIA
We have audited the accompanying consolidated balance sheet of The Penn Mutual
Life Insurance Company and subsidiaries as of December 31, 1997 and the related
consolidated income statement, statement of changes in equity and statement of
cash flows for the year then ended. These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit. The
financial statements of the Company as of December 31, 1996 and for each of the
two years in the period ended December 31, 1996 were audited by other auditors
whose report dated January 31, 1997 expressed an unqualified opinion on those
statements and included an explanatory paragraph that disclosed the Company's
adoption of several accounting principles which were not previously required to
be adopted. These changes are described in Note 1 to the financial statements.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1997 consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position
of The Penn Mutual Life Insurance Company and subsidiaries as of December 31,
1997, and the results of their operations and their cash flows for the year
then ended, in conformity with generally accepted accounting principles.
Ernst & Young LLP
Philadelphia, Pennsylvania
January 30, 1998
B-28
<PAGE>
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
THE BOARD OF TRUSTEES OF
THE PENN MUTUAL LIFE INSURANCE COMPANY
PHILADELPHIA, PENNSYLVANIA
We have audited the accompanying consolidated balance sheet of The Penn Mutual
Life Insurance Company as of December 31, 1996 and the related consolidated
income statements, changes in equity and statement of cash flows for the two
years in the period ended December 31, 1996. These consolidated financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial condition of The
Penn Mutual Life Insurance Company as of December 31, 1996, and the results of
their operations and their cash flows for the two years in the period ended
December 31, 1996, in conformity with generally accepted accounting principles.
As discussed in Note 1 to the consolidated financial statements in 1996, the
Company adopted Financial Accounting Standards Board Interpretation No. 40 (FIN
40) and Statement of Financial Accounting Standards No. 120 (SFAS 120), which
required implementation of several accounting pronouncements not previously
adopted. The effects of adopting FIN 40 and SFAS 120 were retroactively applied
to the Company's previously issued financial statements, consistent with the
implementation guidance of those standards.
/s/ Coopers & Lybrand L.L.P.,
Coopers & Lybrand L.L.P.,
2400 Eleven Penn Center
Philadelphia, Pennsylvania
January 31, 1997
B-29
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1997 1996
- --------------------------------------------------------------------------------
<S> <C> <C>
(in thousands)
ASSETS
Debt securities, at fair value........................... $5,427,652 $5,214,788
Equity securities, at fair value......................... 12,502 16,745
Mortgage loans on real estate............................ 52,996 124,914
Real estate, net of accumulated depreciation............. 22,358 97,805
Policy loans............................................. 642,989 656,073
Short-term investments................................... 43,470 37,515
Other invested assets.................................... 88,928 94,369
---------- ----------
TOTAL INVESTMENTS....................................... 6,290,895 6,242,209
Cash and cash equivalents................................ 37,064 37,314
Investment income due and accrued........................ 103,072 103,132
Deferred acquisition costs............................... 384,542 412,595
Amounts recoverable from reinsurers...................... 63,211 58,882
Broker/dealer receivables................................ 526,797 449,150
Other assets............................................. 92,203 85,382
Separate account assets.................................. 1,869,094 1,368,384
---------- ----------
TOTAL ASSETS............................................ $9,366,878 $8,757,048
========== ==========
LIABILITIES
Reserves for payment of future policy benefits........... $2,770,015 $2,782,621
Other policyholder funds................................. 2,973,434 3,053,412
Policyholders' dividends payable......................... 35,273 35,395
Broker/dealer payables................................... 333,104 303,089
Accrued income tax payable:
Current................................................. 17,476 25,487
Deferred................................................ 75,096 35,783
Other liabilities........................................ 283,666 282,501
Separate account liabilities............................. 1,869,094 1,368,384
---------- ----------
TOTAL LIABILITIES....................................... 8,357,158 7,886,672
---------- ----------
EQUITY
Unrealized gains/(losses) on investment securities, net
of taxes and amortization of deferred acquisition costs. 152,009 85,730
Retained earnings........................................ 857,711 784,646
---------- ----------
TOTAL EQUITY............................................ 1,009,720 870,376
---------- ----------
TOTAL LIABILITIES AND EQUITY........................... $9,366,878 $8,757,048
========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
B-30
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31, 1997 1996 1995
- --------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C>
REVENUES
Premium and annuity considerations.......... $ 195,220 $ 199,821 $ 187,907
Policy fee income........................... 102,398 89,349 80,652
Net investment income....................... 460,206 475,315 489,773
Net realized capital gains/(losses)......... 9,655 (10,078) 14,112
Broker/dealer fees and commissions.......... 290,005 241,068 200,223
Other income................................ 11,851 11,544 31,646
---------- ---------- ----------
TOTAL REVENUE.............................. 1,069,335 1,007,019 1,004,313
---------- ---------- ----------
BENEFITS AND EXPENSES
Benefits paid to policyholders and benefi-
ciaries.................................... 480,234 462,412 486,559
Policyholder dividends...................... 67,412 67,596 69,807
Increase/(decrease) in liability for future
policy benefits............................ (11,972) 42,652 38,038
General expenses............................ 202,731 178,554 186,204
Broker/dealer sales expense................. 160,730 132,724 109,492
Amortization of deferred acquisition costs.. 43,223 46,137 36,794
---------- ---------- ----------
TOTAL BENEFITS AND EXPENSES................ 942,358 930,075 926,894
---------- ---------- ----------
INCOME BEFORE INCOME TAXES................. 126,977 76,944 77,419
---------- ---------- ----------
Income taxes:
Current.................................... 50,061 37,944 11,740
Deferred................................... 3,851 (9,919) (33,179)
---------- ---------- ----------
NET INCOME................................. $ 73,065 $ 48,919 $ 98,858
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
B-31
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
<TABLE>
<CAPTION>
UNREALIZED
APPRECIATION
(DEPRECIATION)
OF INVESTMENT RETAINED TOTAL
FOR THE YEARS ENDED DECEMBER 31, SECURITIES EARNINGS EQUITY
- --------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C>
BALANCE AT JANUARY 1, 1995.................. $(57,212) $636,869 $ 579,657
Net income for 1995........................ -- 98,858 98,858
Unrealized appreciation of securities...... 216,153 -- 216,153
-------- -------- ----------
BALANCE AT DECEMBER 31, 1995................ 158,941 735,727 894,668
Net income for 1996........................ -- 48,919 48,919
Unrealized depreciation of securities...... (73,211) -- (73,211)
-------- -------- ----------
BALANCE AT DECEMBER 31, 1996................ 85,730 784,646 870,376
Net income for 1997........................ -- 73,065 73,065
Unrealized appreciation of securities...... 66,279 -- 66,279
-------- -------- ----------
BALANCE AT DECEMBER 31, 1997................ $152,009 $857,711 $1,009,720
======== ======== ==========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
B-32
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31, 1997 1996 1995
- ----------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income................................ $ 73,065 $ 48,919 $ 98,858
Adjustments to reconcile net income to net
cash provided by operations:
Capitalization of policy acquisition
costs................................... (64,427) (60,234) (52,147)
Amortization of deferred acquisition
costs................................... 43,223 46,137 36,794
Policy fees on universal life and invest-
ment contracts.......................... (104,342) (89,349) (80,652)
Interest credited on universal life and
investment contracts.................... 160,417 171,051 186,549
Depreciation and amortization............ 18,682 11,613 13,260
Premiums due and other receivables....... (7,291) (105) (2,219)
Realized capital (gains)/losses.......... (9,655) 10,078 (14,112)
(Increase)/decrease in accrued investment
income.................................. 60 6,474 7,880
(Increase)/decrease in amounts due from
reinsurers.............................. (4,329) (14,200) 9,994
(Increase)/decrease in net broker dealer
receivables............................. (47,632) 296 (37,142)
Increase/(decrease) in future policy ben-
efit reserves........................... (13,358) 58,697 9,276
Increase/(decrease) in claims payable.... -- -- (16,322)
Increase/(decrease) in income tax pay-
able.................................... (4,526) 7,798 (59,512)
Other, net............................... (6,693) 39,625 (5,232)
----------- ----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVI-
TIES................................... 33,194 236,800 95,273
----------- ----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Sale of investments:
Debt securities available for sale....... 1,235,274 927,905 1,201,541
Equity securities........................ 20,374 25,413 153,985
Real estate.............................. 87,875 40,209 20,461
Other.................................... 14,355 15,284 10,834
Maturity and other principal repayments:
Debt securities available for sale....... 472,474 278,290 276,806
Equity securities........................ -- -- 1,992
Mortgage loans........................... 61,813 156,643 138,396
Cost of investments acquired:
Debt securities available for sale....... (1,772,007) (1,427,048) (1,448,184)
Equity securities........................ (15,268) (11,752) (80,999)
Mortgage loans........................... 0 (36,155) (115,047)
Real estate.............................. (15,600) (8,542) (15,428)
Other.................................... (15,503) (8,789) (8,420)
Change in policy loans, net............... 13,084 1,234 (18,708)
(Increase)/decrease in short-term invest-
ments, net............................... (5,955) 51,290 (80,740)
Purchases of furniture and equipment, net. (4,116) (6,449) (5,369)
----------- ----------- -----------
NET CASH (USED)/PROVIDED BY INVESTING
ACTIVITIES............................. 76,800 (2,467) 31,120
----------- ----------- -----------
</TABLE>
- CONTINUED -
The accompanying notes are an integral part of the consolidated financial
statements.
B-33
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS, CONTINUED
<TABLE>
<CAPTION>
FOR THE YEARS ENDED DECEMBER 31, 1997 1996 1995
- ----------------------------------------------------------------------------------
(in thousands)
<S> <C> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES
Deposits for universal life and investment con-
tracts......................................... $ 653,233 $ 625,816 $ 602,956
Withdrawals from universal life and investment
contracts...................................... (552,311) (567,697) (608,416)
Transfers to separate accounts.................. (236,008) (269,735) (114,332)
Issuance/(repayment) of debt.................... 24,842 (18,424) 1,354
--------- --------- ---------
NET CASH USED BY FINANCING ACTIVITIES......... (110,244) (230,040) (118,438)
--------- --------- ---------
NET DECREASE IN CASH AND CASH EQUIVALENTS..... (250) 4,293 7,955
CASH AND CASH EQUIVALENTS
Beginning of the year.......................... 37,314 33,021 25,066
--------- --------- ---------
End of the year................................ $ 37,064 $ 37,314 $ 33,021
========= ========= =========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Income Taxes................................... $ 54,507 $ 20,228 $ 46,286
Interest Paid.................................. 1,384 939 5,239
</TABLE>
See Note 2 for information on unrealized gains and losses and a 1996 non-cash
transaction related to mortgage loans.
The accompanying notes are an integral part of the consolidated financial
statements.
B-34
<PAGE>
- -------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 1997, 1996 AND 1995
(IN THOUSANDS OF DOLLARS)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION AND BASIS OF PRESENTATION
The Penn Mutual Life Insurance Company (the "Company") was founded and
commenced business in 1847 as a mutual life insurance company. The Company
concentrates primarily on the sale of individual life insurance and annuity
products. The primary products that the Company currently markets are
traditional whole life, term life, universal life, variable life, immediate
annuities and deferred annuities, both fixed and variable. The Company markets
its products through a network of career agents, independent agents, and
independent marketing organizations. The Company is also involved in the
broker-dealer business which offers a variety of investment products and
services and is conducted through the Company's non-insurance subsidiaries.
The Company sells its products in all fifty states and the District of
Columbia.
The accompanying consolidated financial statements have been prepared in
conformity with generally accepted accounting principles and include the
accounts of The Penn Mutual Life Insurance Company, its wholly owned life
insurance subsidiary, The Penn Insurance and Annuity Company ("PIA"), and non-
insurance subsidiaries (principally broker/dealer, investment advisory and
real estate subsidiaries) (the "Company"). All significant intercompany
accounts and transactions have been eliminated in consolidation. The
preparation of financial statements requires management to make estimates and
assumptions that affect the amounts reported in the consolidated financial
statements and notes to the consolidated financial statements.
ACCOUNTING CHANGES
As of January 1, 1996, the Company adopted Financial Accounting Standards
Board Interpretation No. 40 (FIN 40), "Applicability of Generally Accepted
Accounting Principles to Mutual Life Insurance and Other Enterprises", as
amended by Statement of Financial Accounting Standards (SFAS) No. 120,
"Accounting and Reporting by Mutual Life Insurance Enterprises for Certain
Long-Duration Participating Contracts". The initial effect of applying these
pronouncements has been reported retroactively, as of January 1, 1993. SFAS
No. 120 requires financial statements referred to as prepared in accordance
with generally accepted accounting principles (GAAP) to apply all applicable
authoritative GAAP pronouncements. Prior to the adoption of SFAS No. 120,
statutory financial statements were permitted to be referred to as being
prepared in accordance with GAAP. The significant GAAP authoritative
pronouncements requiring initial application were as follows:
. SFAS No. 60, "Accounting and Reporting by Insurance Enterprises",
. SFAS No. 87, "Employers' Accounting for Pensions",
. SFAS No. 94, "Consolidation of All Majority-Owned Subsidiaries",
. SFAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain
Long Duration Contracts and for Realized Gains and Losses from the Sale of
Investments",
. SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than
Pensions" ,
. SFAS No. 109, "Accounting for Income Taxes",
. SFAS No. 113, "Accounting and Reporting for Reinsurance of Short-Duration
and Long-Duration Contracts",
. Statement of Position (SOP) 95-1, "Accounting for Certain Insurance
Activities of Mutual Life Insurance Enterprises".
The cumulative effect of applying SFAS No. 120 and FIN 40 primarily consists
of the initial deferral of acquisition costs, the establishment of deferred
taxes, the change in methodology for insurance reserves, and the elimination
of the statutory asset valuation reserve and interest maintenance reserve and
the establishment of investment valuation allowances. In connection with the
adoption of FIN 40, the Company also adopted SFAS No. 115, "Accounting for
Certain Debt and Equity Securities" as of January 1, 1994.
B-35
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
As a result of the change in accounting principles, net income as previously
reported, has been restated as follows:
<TABLE>
<CAPTION>
1995
---------
<S> <C>
Net income, as previously reported.............................. $ 729
Add adjustments for the cumulative effect on prior years
Deferred acquisition costs..................................... 15,353
Policy reserves................................................ (12,079)
Deferred taxes................................................. 32,341
Investment reserves............................................ 46,640
Other, net..................................................... 15,874
Total.......................................................... 98,129
---------
Net income, as adjusted......................................... $ 98,858
=========
As a result of the change in accounting principles, equity, as previously
reported has been restated as follows:
<CAPTION>
1995
---------
<S> <C>
Balance at beginning of year, as previously reported............ $ 315,321
---------
Add adjustments for the cumulative effect on prior years of ap-
plying retroactively the new basis of accounting
Deferred acquisition costs..................................... 466,446
Policy reserves................................................ (67,526)
Deferred taxes................................................. (527)
Investment reserves............................................ 13,651
Unrealized gains/(losses)...................................... (145,759)
Other, net..................................................... (1,949)
---------
Total.......................................................... 264,336
---------
Balance at beginning of year, as adjusted....................... 579,657
---------
Net income...................................................... 98,858
Net change in unrealized gains/(losses) on investment securi-
ties........................................................... 216,153
---------
315,011
---------
Balance at end of year.......................................... $ 894,668
=========
</TABLE>
INVESTMENTS
Debt securities (bonds, notes, redeemable preferred stocks and mortgage-backed
securities) which might be sold prior to maturity are classified as available
for sale. These securities are carried at fair value, with the change in
unrealized gains and losses reported through a separate component of equity.
Interest on debt securities is credited to income as it is earned.
Equity securities are classified as available for sale and carried at fair
value. Dividends on equity securities are credited to income on their ex-
dividend dates.
The Company regularly evaluates the carrying value of debt and equity
securities based on current economic conditions, past credit loss experience
and other circumstances of the investee. A decline in a security's fair value
that is deemed to be other than temporary is treated as a realized loss and a
reduction in the cost basis of the security.
Mortgage loans on real estate are stated at unpaid principal balances, net of
unamortized discounts and valuation allowances. Valuation allowances on
impaired loans are based on the present value of expected future cash flows
discounted at the loan's original effective interest rate or the collateral
value if the loan is collateral dependent. However, if foreclosure is or
becomes probable, the measurement method used is collateral value.
Investment real estate, which the Company has the intent to hold, is carried at
cost less accumulated depreciation and valuation reserves. The Company
establishes valuation reserves for investment real estate when declines in
value are deemed to be permanent based on an analysis of discounted future cash
flows. Properties held for sale are carried at the lower of
B-36
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
depreciated cost or fair value less selling costs. Valuation reserves are
established for properties held for sale when the fair value less estimated
selling costs is below depreciated cost. Real estate acquired through
foreclosure is recorded at the lower of cost or fair value less estimated
selling costs at the time of foreclosure. Depreciation is calculated using the
straight-line method over the estimated useful lives of the real estate.
Policy loans are carried at the unpaid principal balances.
Short-term investments include securities purchased with a maturity date of 90
days to less than one year. Short-term investments are valued at cost.
Other invested assets primarily include joint venture real estate partnerships,
which are valued on the equity basis, and venture capital limited partnerships,
which are carried at fair value.
Realized gains and losses are determined by specific identification and are
included in income on the trade date. Unrealized gains and losses, net of
appropriate taxes and amortization of deferred acquisition costs, are accounted
for as a separate component of equity.
The Company utilizes various financial instruments, such as interest rate swaps
and financial futures, to hedge against interest rate fluctuation. These
instruments are recorded using a valuation method consistent with the valuation
method of the assets hedged. Gains and losses on these instruments are deferred
and recognized in the Consolidated Income Statements over the remaining life of
the hedged security. Changes in the fair value of these instruments are
reported as unrealized gains or losses. Realized gains or losses are recognized
when the hedged securities are sold.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, money market instruments and
other debt securities with a maturity of 90 days or less when purchased.
OTHER ASSETS
Property and equipment and leasehold improvements are stated at cost, less
accumulated depreciation and amortization. Depreciation is calculated using the
straight-line method over the estimated useful lives of the related assets.
Amortization of leasehold improvements is calculated using the straight-line
method over the lesser of the term of the leases or the estimated useful life
of the improvements. Accumulated depreciation and amortization on property and
equipment and leasehold improvements was $44,329 and $40,671 at December 31,
1997 and 1996, respectively. Related depreciation and amortization expense was
$8,183, $7,510 and $6,914 for the years ended December 31, 1997, 1996 and 1995,
respectively.
Goodwill represents the excess of the cost of the businesses acquired over the
fair value of their net assets. These costs are amortized on a straight-line
basis over not more than 40 years and are included in other assets in the
Consolidated Balance Sheets. Unamortized goodwill amounted to $16,932 and
$17,740 at December 31, 1997 and 1996 respectively. Goodwill amortization was
$808, $909 and $907 for 1997, 1996 and 1995, respectively.
DEFERRED ACQUISITION COSTS
Costs of acquiring new insurance and annuity contracts, which vary with and are
primarily related to the production of new business, have been deferred to the
extent that such costs are deemed recoverable from future gross profits. Such
costs include commissions, certain costs of policy issuance and underwriting,
and certain variable agency expenses.
Deferred acquisition costs related to participating traditional and universal
life insurance policies and annuity products without mortality risk, that
include significant surrender charges, are being amortized over the lesser of
the estimated or actual contract life in proportion to estimated gross profits
arising principally from interest, mortality, expense margins and surrender
charges. The effects on amortization of deferred acquisition costs of revisions
to estimated gross profits are reflected in earnings in the period such
estimated gross profits are revised. Deferred acquisition costs are reviewed to
determine that the unamortized portion of such costs is recoverable from future
estimated gross profits. Certain costs and expenses reported in the
Consolidated Income Statements are net of amounts deferred.
B-37
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
SEPARATE ACCOUNTS
Separate Account assets and liabilities represent segregated funds administered
and invested by the Company primarily for the benefit of variable life
insurance policyholders and annuity and pension contractholders, including
certain of the Company's benefit plans. The value of the assets in the Separate
Accounts reflects the actual investment performance of the respective accounts
and is not guaranteed by the Company. The carrying value for Separate Account
assets and liabilities approximates the estimated fair value of the underlying
assets.
INSURANCE LIABILITIES AND REVENUE RECOGNITION
Participating Traditional Life and Life Contingent Annuity Products
Future policy benefits include reserves for participating traditional life
insurance and life contingent annuity products and are established in amounts
adequate to meet the estimated future obligations of the policies in force.
Liabilities for participating traditional life products are computed using the
net level premium method, using assumptions for investment yields, mortality,
morbidity and withdrawals, which are consistent with the dividend fund interest
rate and mortality rates used in calculating cash surrender values. Interest
rate assumptions used in the calculation of the liabilities for participating
traditional life products ranged from 2.25% to 4.5%. Premiums are recognized as
income when due. Death and surrender benefits are reported in expense as
incurred.
Liabilities for life contingent annuity products are computed by estimating
future benefits and expenses. Assumptions are based on Company experience
projected at the time of policy issue, with provision for adverse deviations.
Interest rate assumptions range from 2.25% to 13.25%. Premiums are recognized
as income as they are received. Death and surrender benefits are reported in
expense as incurred.
Universal Life Products and Other Annuity Products
Other policyholder funds represent liabilities for universal life and
investment-type annuity products. The liabilities for these products are based
on the contract account value which consists of deposits received from
customers and investment earnings on the account value, less administrative and
expense charges. The liability for universal life products is also reduced by
mortality charges. Liabilities for the non-life contingent annuity products are
computed by estimating future benefits and expenses. Assumptions are based on
Company experience projected at the time of policy issue. Interest rate
assumptions range from 2.0% to 11.25%.
Contract charges assessed against account value for universal life and
investment-type annuities are reflected as policy fee income in revenue.
Interest credited to account values and universal life benefit claims in excess
of fund values are reflected as benefit expense.
Policyholders' Dividends
The majority of the Company's insurance products have been issued on a
participating basis. As of December 31, 1997, participating insurance expressed
as a percentage of insurance in force is 91%, and as a percentage of premium
income is 80%. The amount of policyholders' dividends to be paid is approved
annually by the Board of Trustees. The aggregate amount of policyholders'
dividends is calculated based on actual interest, mortality, morbidity and
expense experience for the year and on management's judgment as to the
appropriate level of equity to be retained by the Company. The carrying value
of this liability approximates the earned amount and fair value at December 31,
1997.
BROKER/DEALER REVENUE RECOGNITION
Broker-dealer transactions in securities and listed options, including related
commission revenue and expense, are recorded on a settlement-date basis.
FEDERAL INCOME TAXES
The Company files a consolidated federal income tax return with its life and
non-life insurance subsidiaries. Federal income taxes are charged or credited
to operations based upon amounts estimated to be payable or recoverable as a
result of taxable operations for the current year. Deferred income tax assets
and liabilities are established to reflect the impact of temporary differences
between the amount of assets and liabilities recognized for financial reporting
purposes and such amounts recognized for tax purposes. These deferred tax
assets or liabilities are measured by using the enacted tax rates expected to
apply to taxable income in the period in which the deferred tax liabilities or
assets are expected to be settled or realized.
B-38
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
REINSURANCE
In the normal course of business, the Company seeks to limit its exposure to
loss on any single insured and to recover a portion of benefits paid by ceding
reinsurance to other insurance enterprises or reinsurers under excess coverage
and coinsurance contracts. The Company has set its retention limit for
acceptance of risk on life insurance policies at various levels up to $1,250.
Insurance liabilities are reported before the effects of reinsurance.
Reinsurance receivables (including amounts related to insurance liabilities)
are reported as assets. Estimated reinsurance receivables are recognized in a
manner consistent with the liabilities related to the underlying reinsured
contracts.
RECLASSIFICATIONS
Certain 1996 and 1995 amounts have been reclassified to conform with 1997
presentation.
NOTE 2 - INVESTMENTS:
DEBT SECURITIES
The following tables summarize the Company's investment in debt securities,
including redeemable preferred stocks. All debt securities are classified as
available for sale and are carried at estimated fair value. Amortized cost is
net of cumulative writedowns for other than temporary declines in value of
$1,208 and $1,390 as of December 31, 1997 and 1996, respectively.
<TABLE>
<CAPTION>
DECEMBER 31, 1997
-------------------------------------------
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
U.S. Treasury securities and U.S.
Government and agency securities.. $ 107,539 $ 6,302 $ -- $ 113,841
States and political subdivisions.. 12,085 569 -- 12,654
Foreign governments................ 20,397 3,049 -- 23,446
Corporate securities............... 2,854,234 218,145 6,748 3,065,631
Mortgage and other asset-backed se-
curities.......................... 2,133,758 76,160 757 2,209,161
---------- -------- ------ ----------
Total bonds........................ 5,128,013 304,225 7,505 5,424,733
Redeemable preferred stocks........ 3,085 -- 166 2,919
---------- -------- ------ ----------
TOTAL............................. $5,131,098 $304,225 $7,671 $5,427,652
========== ======== ====== ==========
</TABLE>
<TABLE>
<CAPTION>
DECEMBER 31, 1996
-------------------------------------------
GROSS GROSS ESTIMATED
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
U.S. Treasury securities and U.S.
Government and agency securities.. $ 42,928 $ 653 $ -- $ 43,581
States and political subdivisions.. 477 21 -- 498
Foreign governments................ 20,333 2,038 -- 22,371
Corporate securities............... 2,819,418 134,505 11,911 2,942,012
Mortgage and other asset-backed se-
curities.......................... 2,192,353 27,135 16,471 2,203,017
---------- -------- ------- ----------
Total bonds........................ 5,075,509 164,352 28,382 5,211,479
Redeemable preferred stocks........ 3,575 -- 266 3,309
---------- -------- ------- ----------
TOTAL............................. $5,079,084 $164,352 $28,648 $5,214,788
========== ======== ======= ==========
</TABLE>
B-39
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The following tables summarize the amortized cost and estimated fair value of
debt securities, including redeemable preferred stocks, by contractual
maturity.
<TABLE>
<CAPTION>
DECEMBER 31, 1997
---------------------
AMORTIZED ESTIMATED
COST FAIR VALUE
---------- ----------
<S> <C> <C>
Maturity:
Within one year.......................................... $ 241,759 $ 240,871
After one year through five years........................ 606,900 620,792
After five years through ten years....................... 613,951 644,749
After ten years through twenty years..................... 428,492 495,854
After twenty years....................................... 1,103,153 1,213,305
Mortgage and other asset-backed securities............... 2,133,758 2,209,162
---------- ----------
Total bonds............................................. 5,128,013 5,424,733
Redeemable preferred stocks.............................. 3,085 2,919
---------- ----------
TOTAL.................................................. $5,131,098 $5,427,652
========== ==========
</TABLE>
Expected maturities may differ from contractual maturities because certain
borrowers have the right to call or prepay obligations with or without call or
prepayment penalties. Mortgage and other asset-backed securities are presented
separately in the maturity schedule due to the potential for prepayment. The
weighted average life of these securities is 7.8 years.
At December 31, 1997, the Company held $2,209,162 in mortgage and other asset-
backed securities. The structured securities portfolio consists of commercial
and residential mortgage pass-through holdings totaling $1,961,662 and
securities backed by credit card receivables, auto loans, home equity and
manufactured housing loans totaling $247,500. These securities follow a
structured principal repayment schedule and are of high credit quality.
Securities totaling $1,810,481 are rated AAA and include $27,854 of interest
only tranches that were retained from the securitization of the Company's
mortgage loan portfolio.
At December 31, 1997, the largest industry concentration of the Company's
portfolio was investments in the finance industry of $734,428, representing 14%
of the total debt portfolio.
Effective November 30, 1995, the Company adopted the implementation guidance
contained in the Financial Accounting Series Special Report, "A Guide to
Implementation of Statement 115 on Accounting for Certain Investments in Debt
and Equity Securities." As a result of adopting this guidance, the Company
reclassified all of its held-to-maturity securities to available-for-sale based
upon a reassessment of the appropriateness of the classifications of all
securities held at that time. The amortized cost and net unrealized gain of the
securities reclassified were $546,834 and $47,348 respectively, at November 30,
1995.
Proceeds during 1997, 1996 and 1995 from sales of available for sale securities
were $1,235,274, $927,905 and $1,201,541, respectively. Gross gains and gross
losses realized on those sales were $21,799 and $8,990, respectively during
1997, $15,932 and $6,899, respectively during 1996 and $62,216 and $10,201,
respectively during 1995. The change in net unrealized gains and losses on debt
securities classified as available for sale included as a separate component of
equity was $160,850, $(149,259) and $438,883 for 1997, 1996 and 1995,
respectively.
The Company's investment portfolio of debt securities is predominantly
comprised of investment grade securities. At December 31, 1997 and 1996, debt
securities with amortized cost totaling $198,943 and $184,719, respectively,
were less than investment grade. At December 31, 1997 and 1996, the Company did
not hold any securities which are either in default as to principal and/or
interest payments, are to be restructured pursuant to commenced negotiations or
are in situations where the borrowers went into bankruptcy subsequent to
acquisition (collectively, "problem debt securities"). The Company did not hold
any debt securities which were non-income producing for the preceding twelve
months as of December 31, 1997 and 1996.
EQUITY SECURITIES
During 1997, 1996 and 1995, the proceeds from sales of equity securities
amounted to $20,374, $25,413 and $153,985, respectively. The gross gains and
gross losses realized on those sales were $975 and $558, $1,369 and $247, and
$9,604 and $3,753, for 1997, 1996 and 1995, respectively.
B-40
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
MORTGAGE LOANS
On August 29, 1996, the Company securitized the majority of its mortgage loan
portfolio by transferring the loans to a trust which qualifies as a REMIC (Real
Estate Mortgage Investment Conduit) under the Internal Revenue Code. Prior to
transferring the loans with a principal value of $781,564 and a book value of
$780,942, the loans were written down to a fair market value of $755,559, and
the related reserve of $25,285 was released. The trust issued sixteen classes
of Commercial Mortgage Pass-Through Certificates with a total par value of
$781,564. The certificates evidence the entire beneficial ownership interest in
the trust. The cash flow from the mortgages will be used to repay the
certificates over an average life of 4.28 years. The actual date on which the
principal amount of the notes may be paid in full could be substantially
earlier or later based on performance of the mortgages. The cash flows of the
assets of the trust will be the sole source of payments on the notes. The
Company has not guaranteed these certificates or the mortgage loans held by the
trust. As a result of this transaction, the Company recognized a loss of $98
upon the transfer of the mortgages to the trust, representing the difference
between the fair market value of the certificates and the book value of the
mortgage loans transferred to the trust.
The Company retained the highest quality classes of certificates with a par
value of $715,126 and a fair market value of $734,326 at the time of the
securitization. As of December 31, 1997, the par value and fair value of these
securities was $570,130 and $597,248, respectively. The Company sold the lowest
rated classes of certificates with a par value of $66,438 and a fair market
value of $24,838.
The mortgage loans which were not included in the securitization and were
retained by the Company had a book value of $171,555 with a related reserve of
$21,907 and an estimated fair value of $153,405 on the date of the
securitization. Loans which the Company intended to dispose of within a period
of 6 to 24 months were written down to their estimated net realizable value.
These loans had a book value of $99,817 and an estimated net realizable value
of $81,310 at the time of the securitization. The writedown of $18,507 was
fully offset by a release in mortgage loss reserve. As of December 31, 1997,
the Company held $12,368 of these loans. The Company intended to hold mortgage
loans with a book value of $71,738 on the date of the securitization, through
their remaining terms. As of December 31, 1997, the Company continued to hold
$44,428 of these mortgages. The Company discontinued the origination of
commercial mortgage loans in 1996.
The following tables summarize the carrying value of mortgage loans, by
property type and geographic concentration, at December 31.
<TABLE>
<CAPTION>
1997 1996
------- --------
<S> <C> <C>
Property Type
Office buildings............................................. $20,012 $ 51,510
Retail....................................................... 7,862 39,090
Dwellings.................................................... 25,237 33,540
Other........................................................ 3,685 4,174
Valuation allowance.......................................... (3,800) (3,400)
------- --------
TOTAL....................................................... $52,996 $124,914
======= ========
</TABLE>
<TABLE>
<CAPTION>
1997 1996
------- --------
<S> <C> <C>
Geographic Concentration
Northeast.................................................... $23,313 $ 49,438
Midwest...................................................... 5,922 22,920
South........................................................ 12,502 20,717
West......................................................... 15,059 35,239
Valuation allowance.......................................... (3,800) (3,400)
------- --------
TOTAL....................................................... $52,996 $124,914
======= ========
</TABLE>
B-41
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The following table presents changes in the mortgage loan valuation allowance
for the years presented:
<TABLE>
<CAPTION>
1997 1996
------ -------
<S> <C> <C>
Balance at January 1............................................ $3,400 $47,192
Provision....................................................... 400 --
Charge offs..................................................... -- (43,792)
------ -------
BALANCE AT DECEMBER 31......................................... $3,800 $ 3,400
====== =======
</TABLE>
As of December 31, 1997 and 1996, the Company's mortgage loan portfolio
contained $0 and $15,726, respectively, of loans delinquent over 60 days or in
foreclosure. As of December 31, 1997 and 1996, there were no non-income
producing mortgage loans for the preceding twelve months.
During 1997, the Company did not restructure the terms of any outstanding
mortgages. During 1996, the Company restructured the terms of outstanding
mortgages with a carrying value of $4,000. As of December 31, 1997 and 1996,
the mortgage loan portfolio included $2,834 and $7,110, respectively, of
restructured mortgage loans. Restructured mortgage loans include commercial
loans for which the basic terms, such as interest rate, maturity date,
collateral or guaranty have been changed as a result of actual or anticipated
delinquency. Restructures do not include mortgages refinanced upon maturity at
or above current market rates. Gross interest income on restructured mortgage
loans on real estate that would have been recorded in accordance with the
original terms of such loans amounted to $298 and $893 in 1997 and 1996,
respectively. Gross interest income from these loans included in net investment
income totaled $262 and $674 in 1997 and 1996, respectively.
At December 31, 1997, the recorded investment in loans that are considered to
be impaired was $12,368 that, as a result of write-downs, do not have a
valuation allowance. The average recorded investment in impaired loans during
the year ended December 31, 1997 was approximately $38,096. During 1997, $1,454
was received on these impaired loans which was applied to the outstanding
principal balance or will be applied to principal at the date of foreclosure.
REAL ESTATE
The following table summarizes the carrying value of the Company's real estate
holdings at December 31.
<TABLE>
<CAPTION>
1997 1996
------- -------
<S> <C> <C>
Investment.................................................... $19,999 $33,386
Properties held for sale...................................... 7,828 73,260
Less: valuation allowance (5,469) (8,841)
------- -------
TOTAL........................................................ $22,358 $97,805
======= =======
</TABLE>
At December 31, 1997 and 1996, accumulated depreciation on real estate amounted
to $6,498 and $38,781, respectively. Depreciation expense on real estate
totaled $5,709, $6,488 and $10,091 for the years ended December 31, 1997, 1996
and 1995, respectively. During 1997, the Company sold its largest real estate
investment for $65,007 cash to an unrelated buyer. At the date of the sale,
this property had a carrying value of $61,914, net of related reserves,
resulting in a gain of $3,093. During 1996, the Company wrote down the
statement value of this property by $16,000 to its estimated fair value, based
on changes in future valuation assumptions.
OTHER
Investments on deposit with regulatory authorities as required by law were
$7,106 and $7,085 at December 31, 1997 and 1996, respectively.
As of December 31, 1997 and 1996, the Company's investments included $597,248
and $725,806, respectively, of the tranches retained from the 1996
securitization of the Company's commercial mortgage loan portfolio. These
investments represented 59% and 86% of equity at December 31, 1997 and 1996,
respectively.
B-42
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
NOTE 3 - INVESTMENT INCOME AND CAPITAL GAINS:
The following table summarizes the sources of investment income, excluding
investment gains/(losses), for the year ended December 31.
<TABLE>
<CAPTION>
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Debt securities..................................... $390,852 $356,669 $331,644
Equity securities................................... 1,371 1,313 2,602
Mortgages........................................... 12,098 62,454 99,109
Real estate......................................... 17,519 24,143 31,661
Policy loans........................................ 40,921 40,580 41,762
Short-term investments.............................. 2,426 6,052 3,934
Other invested assets............................... 21,268 14,665 18,016
Cash and cash equivalents........................... 2 44 34
-------- -------- --------
Gross investment income............................. 486,457 505,920 528,762
Less: Investment expenses.......................... 26,251 30,605 38,989
-------- -------- --------
Investment income, net.............................. $460,206 $475,315 $489,773
======== ======== ========
</TABLE>
The following table summarizes net realized capital gains/(losses) on
investments for the year ended December 31. Net realized capital gains/(losses)
include decreases in valuation allowances of $3,154, $44,164 and $2,463 in
1997, 1996 and 1995, respectively.
<TABLE>
<CAPTION>
1997 1996 1995
------- -------- -------
<S> <C> <C> <C>
Debt securities..................................... $12,991 $ 10,412 $51,873
Equity securities................................... 417 1,122 6,652
Mortgage loans...................................... 280 (2,821) (2,799)
Real estate......................................... (684) (22,356) (41,617)
Other............................................... (811) 3,565 3
Amortization of deferred acquisition costs.......... (2,538) -- --
------- -------- -------
Realized gains/(losses)............................. $ 9,655 $(10,078) $14,112
======= ======== =======
</TABLE>
The following table summarizes the change in unrealized gains and losses for
investments carried at fair value for the year ended December 31.
<TABLE>
<CAPTION>
1997 1996 1995
-------- --------- --------
<S> <C> <C> <C>
Unrealized Gains/(Losses):
Debt securities.................................. $160,850 $(149,259) $438,883
Equity securities................................ 408 (582) 2,340
Other............................................ (14,581) (1,545) 11,190
-------- --------- --------
146,677 (151,386) 452,413
-------- --------- --------
Less:
Deferred policy acquisition costs................ (45,043) 38,324 (116,992)
Deferred income taxes............................ (35,355) 39,851 (119,268)
-------- --------- --------
Net change in unrealized gains/(losses).......... $ 66,279 $ (73,211) $216,153
======== ========= ========
</TABLE>
B-43
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
NOTE 4 - FAIR VALUE INFORMATION:
The following table summarizes the carrying value and estimated fair value of
the Company's financial instruments as of December 31, 1997 and 1996.
<TABLE>
<CAPTION>
1997 1996
------------------------- -------------------------
CARRYING VALUE FAIR VALUE CARRYING VALUE FAIR VALUE
-------------- ---------- -------------- ----------
<S> <C> <C> <C> <C>
FINANCIAL ASSETS:
Debt securities
Available for sale........ $5,427,652 $5,427,652 $5,214,788 $5,214,788
Equity securities
Common stock.............. 3,051 3,051 660 660
Non-redeemable preferred
stocks................... 9,451 9,451 16,085 16,085
Mortgage loans............. 52,996 57,224 124,914 131,577
Policy loans............... 642,989 606,681 656,073 634,291
Cash & cash equivalents.... 37,064 37,064 37,314 37,314
Short-term investments..... 43,470 43,470 37,515 37,515
Separate account assets.... 1,869,094 1,869,094 1,368,384 1,368,384
Other invested assets...... 88,928 88,928 94,369 94,369
FINANCIAL LIABILITIES:
Investment-type contracts
Individual annuities...... $1,225,192 $1,260,639 $1,281,965 $1,317,257
Guaranteed investment con-
tracts................... 59,809 61,456 111,224 112,247
Other group annuities..... 147,061 148,257 161,889 163,524
Other policyholder funds.. 1,541,372 1,541,372 1,498,334 1,498,334
---------- ---------- ---------- ----------
Total policyholder funds. 2,973,434 3,011,724 3,053,412 3,091,362
Policyholders' dividends
payable................... 35,273 35,273 35,395 35,395
Separate account liabili-
ties...................... 1,869,094 1,869,094 1,368,384 1,368,384
</TABLE>
The estimated fair values for the Company's investments in debt and equity
securities are based on quoted market prices, where available. In situations
where market prices are not readily available, primarily private placements,
fair values are estimated using a formula pricing method based on fair values
of securities with similar characteristics. The estimated fair value of
currently performing mortgage loans is estimated by discounting the cash flows
associated with the investment, using an interest rate currently offered for
similar loans to borrowers with similar credit ratings. Loans with similar
credit quality, characteristics and time to maturity are aggregated for
purposes of discounted cash flow analysis. Assumptions regarding credit risk,
cash flows and discount rates are determined using the available market and
borrower-specific information. The estimated fair value for non-performing
loans is based on the estimated fair value of the underlying real estate, which
is based on recent appraisals or other estimation techniques. The estimated
fair value of policy loans is calculated by discounting estimated future cash
flows using interest rates currently being offered for similar loans. Loans
with similar characteristics are aggregated for purposes of the calculations.
The carrying values of cash, cash equivalents, short-term investments and
separate account assets approximate their fair values. The estimated fair value
for the venture capital limited partnerships are based on values determined by
the partnerships' managing general partners. The resulting estimated fair
values may not be indicative of the value negotiated in an actual sale.
The fair values of the Company's liabilities for individual annuities,
guaranteed investment contracts and certain group annuities are estimated by
discounting the cash flows associated with the contracts, using an interest
rate currently offered for similar contracts with maturities similar to those
remaining for the contracts being valued. The statement value for certain of
the other group annuities approximates their fair value due to the nature of
the contracts. The statement values of other policyholder funds, policyholders'
dividends payable and separate account liabilities approximate their fair
values.
Currently, disclosure of estimated fair values is not required for all the
Company's assets and liabilities. Therefore, presentation of the estimated fair
value of a significant portion of assets without a corresponding valuation of
liabilities associated with
B-44
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
insurance contracts can be misinterpreted. The estimated fair values of
liabilities under all of the Company's contracts are considered in the overall
management of interest rate risk. The continuing management of the relationship
between the maturities of the Company's investments and the amounts due under
insurance contracts reduces the Company's exposure to changing interest rates.
The Company is exposed to interest rate risk on its interest sensitive
products. The Company's investment strategy is designed to minimize interest
risk by managing the durations and anticipated cash flows of the Company's
assets and liabilities.
To minimize exposure and reduce risk from exchange and interest rate
fluctuations in the normal course of business, the Company enters into interest
rate swap programs for purposes other than trading. As of December 31, 1997 and
1996, the Company had interest rate swaps with aggregate notional amounts equal
to $105,000 and $115,000, respectively, with average unexpired terms of 19 and
29 months, respectively. Interest rate swap agreements involve the exchange of
fixed and floating rate interest payment obligations without an exchange of the
underlying notional principal amounts. During the term of the swap, the net
settlement amount is accrued as an adjustment to interest income. Gross
unrealized gains and losses, which represent fair value based on dealer-quoted
prices, were $5,164 and $0, respectively at December 31, 1997 and $7,605 and
$0, respectively, at December 31, 1996. These fair values represent the amount
at risk if the counterparties default and the amount that the Company would
receive to terminate the contracts, taking into account current interest rates
and, where appropriate, the current credit worthiness of the counterparties.
In the normal course of business, the Company loans securities under
arrangements in which collateral is obtained in amounts greater than the
current market value of loaned securities. This collateral is held in the form
of cash, cash equivalents or securities issued or guaranteed by the United
States Government. The Company is at risk to the extent the value of loaned
securities exceeds the value of the collateral obtained. The Company controls
this risk by requiring collateral of the highest quality and requiring that
additional collateral be deposited when the market value of loaned securities
increases in relation to the collateral held or the value of the collateral
held decreases in relation to the value of the loaned securities. The Company
had loaned securities outstanding of $155,356 and $0 as of December 31, 1997
and 1996, respectively.
NOTE 5 - INCOME TAXES:
The Company follows the asset and liability method of accounting for income
taxes whereby current and deferred tax assets and liabilities are recognized
utilizing currently enacted tax laws and rates. Deferred taxes are adjusted to
reflect tax rates at which future tax liabilities or assets are expected to be
settled or realized.
Deferred income taxes reflect the impact for financial statement reporting
purposes of temporary differences between the financial statement carrying
amounts and tax bases of assets and liabilities. The significant temporary
differences that give rise to the deferred tax assets and liabilities at
December 31 relate to the following:
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
DEFERRED TAX ASSETS
Future policy benefits...................................... $ 88,172 $ 83,327
Dividend award.............................................. 11,970 12,005
Allowances for investment losses............................ 3,667 8,411
Employee benefit liabilities................................ 27,979 27,113
Other....................................................... 23,467 27,530
-------- --------
Total deferred tax asset................................... 155,255 158,386
-------- --------
DEFERRED TAX LIABILITIES
Deferred acquisition costs.................................. 127,495 124,660
Real estate................................................. (1,261) 299
Unrealized gains............................................ 81,553 48,233
Other....................................................... 22,564 20,977
-------- --------
Total deferred tax liability............................... 230,351 194,169
-------- --------
Net deferred tax liability.................................. $ 75,096 $ 35,783
======== ========
</TABLE>
B-45
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The federal income taxes attributable to consolidated net income are different
from the amounts determined by multiplying consolidated net income before
federal income taxes by the expected federal income tax rate. The difference
between the amount of tax at the U.S. federal income tax rate of 35% and the
consolidated tax provision is summarized as follows:
<TABLE>
<CAPTION>
1997 1996 1995
------- ------- --------
<S> <C> <C> <C>
Tax expense at 35%................................ $44,442 $26,930 $ 27,096
Increase/(decrease) in income taxes resulting
from:
Differential earnings amount..................... 6,942 500 3,878
Resolution of tax issues......................... -- -- (57,000)
Other............................................ 2,528 595 4,587
------- ------- --------
Federal income tax expense/(benefit).............. $53,912 $28,025 $(21,439)
======= ======= ========
As a mutual life insurance company, the Company is subject to Internal Revenue
Code provisions which require mutual, but not stock, life insurance companies
to include the Differential Earnings Amount (DEA) in each year's taxable
income. This amount is computed by multiplying the Company's average taxable
equity base by a prescribed rate, which is intended to reflect the difference
between stock and mutual companies' earnings rates.
In 1995, the Company settled various tax issues with the IRS, including an
issue surrounding the tax treatment of certain traditional life insurance
policy updates. As a result of these settlements, the 1995 federal income tax
expense was decreased in the Income Statement by approximately $57,000, which
included $22,300 of interest, net of tax.
The Internal Revenue Service has examined the Company's income tax returns
through the year 1990 and is currently examining years 1991 through 1994.
Management believes that an adequate provision has been made for potential
assessments.
NOTE 6 - BENEFIT PLANS:
The Company maintains qualified and non-qualified defined benefit pension plans
covering substantially all of its employees. The plans are non-contributory and
provide pension benefits based on years of service and average annual
compensation (measured over 60 consecutive months of highest earnings in a 120-
month period). Contributions are determined by using the Projected Unit Credit
Method. The total pension expense related to these plans amounted to $5,917,
$5,963 and $5,054 in 1997, 1996 and 1995, respectively.
The Company's funding policy for its qualified defined benefit plans is to
contribute an amount between the minimum required contribution and the maximum
deductible amount in accordance with the Internal Revenue Code. The following
table summarizes the components of net periodic pension cost for the Company's
qualified defined benefit plans:
<CAPTION>
1997 1996 1995
------- ------- --------
<S> <C> <C> <C>
Service cost...................................... $ 2,161 $ 2,506 $ 1,827
Interest cost on projected benefit obligation..... 4,050 3,540 2,909
Actual return on assets........................... (4,925) (3,095) (5,515)
Net amortization and deferrals.................... 2,367 919 3,736
------- ------- --------
Net periodic pension cost......................... $ 3,653 $ 3,870 $ 2,957
======= ======= ========
</TABLE>
B-46
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The following table summarizes the funded status of the Company's qualified
defined benefit plans:
<TABLE>
<CAPTION>
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Actuarial present value of benefit obligation:
Vested.......................................... $ 44,964 $ 32,572 $ 29,744
Non-vested...................................... 924 935 763
-------- -------- --------
Accumulated benefit obligation................... 45,888 33,507 30,507
Provision for future salary increases............ 16,769 15,162 17,147
-------- -------- --------
Projected benefit obligation..................... 62,657 48,669 47,654
Plan assets at fair value........................ (42,783) (37,938) (34,067)
-------- -------- --------
Projected benefit obligation in excess of plan
assets.......................................... 19,874 10,731 13,587
Unrecognized prior service cost.................. (178) (203) (228)
Unrecognized net (gain) loss from past experi-
ence............................................ (9,605) (2,430) (6,859)
Unrecognized net asset obligation at transition.. (1,288) (1,609) (1,931)
-------- -------- --------
Accrued pension cost at December 31.............. $ 8,803 $ 6,489 $ 4,569
======== ======== ========
The assumptions used to measure the actuarial present value of the projected
benefit obligation were:
<CAPTION>
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Discount rate.................................... 7.00% 7.50% 7.00%
Expected long-term rate of return on plan assets. 8.00% 8.00% 8.00%
Salary scale..................................... 5.50% 5.50% 5.50%
</TABLE>
The qualified defined benefit pension plan's assets are held in trust and
administered under a participatory group annuity contract issued by the Company
with assets invested in various separate accounts of the Company. A non-
participatory annuity contract issued by the Company funds benefits accrued
prior to 1986.
The Company maintains four defined contribution pension plans for substantially
all of its employees and full-time agents. For two plans, designated
contributions of up to 6% or 8% of annual compensation are eligible to be
matched by the Company. Contributions for the third plan are based on tiered
earnings of full time agents. The last plan, which covers employees of a
subsidiary, are determined on a discretionary basis by the Board of Directors
of that subsidiary. At December 31, 1997, 1996 and 1995, the expense recognized
for these plans was $8,345, $6,092 and $5,083, respectively. The estimated fair
value of the defined contribution plans' assets were $229,378, $201,679 and
$176,832, respectively.
The Company also provides certain medical, life insurance and other welfare
benefits (postretirement benefits) for retired employees and full-time agents.
Substantially all employees and full-time agents become eligible for these
benefits if they reach retirement age while working for the Company and have at
least 10 years of service. Employees retiring after January 1, 1993 receive a
defined dollar benefit under the medical plan. The Company continues to fund
postretirement benefit costs on a pay-as-you-go basis.
B-47
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
The following table sets forth the postretirement benefits plan's status,
reconciled to amounts recognized in the Company's Consolidated Balance Sheet
and Income Statements at December 31.
<TABLE>
<CAPTION>
1997 1996 1995
------- ------- -------
<S> <C> <C> <C>
Actuarial present value of accumulated
postretirement benefit obligation:
Retirees.......................................... $22,638 $21,301 $32,473
Fully eligible active plan participants........... 2,707 2,547 2,826
Other active plan participants.................... 6,068 5,710 5,672
------- ------- -------
Total............................................ 31,413 29,558 40,971
Plan assets at fair value.......................... -- -- --
------- ------- -------
Accumulated postretirement benefits obligation in
excess of plan assets............................. 31,413 29,558 40,971
Unrecognized prior service cost.................... -- -- --
Unrecognized net gain from past experience......... 13,730 16,261 5,129
------- ------- -------
Accrued postretirement benefits cost............... $45,143 $45,819 $46,100
======= ======= =======
Net periodic postretirement benefits cost includes
the following components:
Service cost...................................... 393 434 355
Interest cost on accumulated postretirement bene-
fits obligation.................................. 2,182 2,206 2,910
Actual return on assets........................... -- -- --
Net amortization and deferral..................... (1,060) (815) (573)
------- ------- -------
Net periodic postretirement benefits cost.......... $ 1,515 $ 1,825 $ 2,692
======= ======= =======
</TABLE>
At December 31, 1997, the assumed health care cost trend rate used in measuring
the accumulated postretirement benefit obligation was 8.5% in 1998, grading to
5.0% in the year 2004. The weighted-average discount rate used in determining
the accumulated postretirement benefit obligation was 7.00% at December 31,
1997. At December 31, 1996, the assumed health care cost trend rate used in
measuring the accumulated postretirement benefit obligation was 8.5% in 1997,
grading to 5.0% in the year 2004. The weighted-average discount rate used in
determining the accumulated postretirement benefit obligation was 7.5% at
December 31, 1996. At December 31, 1995, the assumed health care cost trend
rate used in measuring the accumulated postretirement benefit obligation was
9.0% in 1996, grading to 5.0% in the year 2004. The weighted-average discount
rate used in determining the accumulated postretirement benefit obligation was
7.0% at December 31, 1995.
If the health care cost trend rate was increased by one percentage point for
each future year, the accumulated postretirement benefit obligation as of
December 31, 1997 would increase by $1,948. The effect of this change on the
sum of the service cost and interest cost, before taxes, would be an increase
of $136.
B-48
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
NOTE 7 - REINSURANCE:
The Company has assumed and ceded reinsurance on certain life and annuity
contracts under various agreements. Reinsurance permits recovery of a portion
of losses from reinsurers, although the Company remains primarily liable as the
direct insurer on all risks reinsured. The Company evaluates the financial
strength of potential reinsurers and continually monitors the financial
condition of present reinsurers to ensure that amounts due from reinsurers are
collectable. The table below highlights the amounts shown in the accompanying
financial statements.
<TABLE>
<CAPTION>
ASSUMED CEDED TO
GROSS FROM OTHER OTHER NET
AMOUNT COMPANIES COMPANIES AMOUNT
----------- ---------- ---------- -----------
<S> <C> <C> <C> <C>
DECEMBER 31, 1997:
Life Insurance in Force.......... $31,027,764 $5,217,856 $4,620,599 $31,625,021
Premiums......................... 190,754 11,189 6,723 195,220
Benefits......................... 330,432 14,293 26,916 317,809
Reserves......................... 5,741,456 1,993 59,322 5,684,127
DECEMBER 31, 1996:
Life Insurance in Force.......... $30,057,996 $5,420,951 $3,186,567 $32,292,380
Premiums......................... 196,897 12,745 9,821 199,821
Benefits......................... 293,270 16,466 16,808 292,928
Reserves......................... 5,833,970 2,063 56,632 5,779,401
</TABLE>
During 1995, the Company had gross premiums of $184,362, assumed premiums of
$13,453 and ceded premiums of $9,908 and gross benefits of $303,911, assumed
benefits of $13,265 and ceded benefits of $14,700.
Reinsurance receivables with a carrying value of $50,617 and $50,522 were
associated with a single reinsurer at December 31, 1997 and 1996, respectively.
During 1995, the Company recaptured the portion of its disability income
business that was previously reinsured under a quota share and excess
reinsurance agreement with the Monarch Life Insurance Company ("Monarch"). As a
result of this recapture, approximately $21,200 of cash and policyholder
reserves were transferred to the Company from Monarch.
NOTE 8 - COMMITMENTS AND CONTINGENCIES:
The Company and its subsidiaries are respondents in a number of proceedings,
some of which involve extra-contractual damage in addition to other damages. In
addition, insurance companies are subject to assessments, up to statutory
limits, by state guaranty funds for losses of policyholders of insolvent
insurance companies. In the opinion of management, the outcome of the
proceedings and assessments are not likely to have a material adverse effect on
the financial position of the Company.
The Company, in the ordinary course of business, extends commitments relating
to its investment activities. As of December 31, 1997, the Company had
outstanding commitments totaling $38,326 relating to these investment
activities. The fair value of these commitments approximates the face amount.
NOTE 9 - STATUTORY INFORMATION:
State insurance regulatory authorities prescribe or permit statutory accounting
practices for calculating net income and capital and surplus which differ in
certain respects from generally accepted accounting principles (GAAP). The
significant differences relate to deferred acquisition costs, which are charged
to expenses as incurred; federal income taxes, which reflect amounts that are
currently taxable; and benefit reserves, which are determined using prescribed
mortality, morbidity and interest assumptions, and which, when considered in
light of the assets supporting these reserves, adequately provide for
obligations under policies and contracts. In addition, the recording of
impairments in the value of investments generally lags recognition under GAAP.
The combined insurance companies' statutory capital and surplus at December 31,
1997 and 1996 was $435,861 and $379,774, respectively. The combined insurance
companies' net income, determined in accordance with statutory accounting
practices, for the years ended December 31, 1997, 1996 and 1995, was $63,615,
$25,905 and $729, respectively.
B-49
<PAGE>
- --------------------------------------------------------------------------------
THE PENN MUTUAL LIFE INSURANCE COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED
(IN THOUSANDS OF DOLLARS)
NOTE 10 - BUSINESS SEGMENT INFORMATION:
The operations of the Company are conducted principally through two business
units: Insurance and Broker-Dealer. The insurance operations offer a diverse
portfolio of life insurance products and both individual and group annuity
products. The Broker-Dealer operations provide broad financial and investment
services.
Assets are held directly by each business unit in amounts necessary to both
fund liabilities and to provide a margin to cover business risks.
The table below summarizes the information concerning the business units:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
--------------------------------
1997 1996 1995
---------- ---------- ----------
<S> <C> <C> <C>
REVENUES
Insurance...................................... $ 778,179 $ 765,210 $ 803,276
Broker-Dealer.................................. 291,156 241,809 201,037
---------- ---------- ----------
TOTAL......................................... $1,069,335 $1,007,019 $1,004,313
========== ========== ==========
PRETAX INCOME
Insurance...................................... $ 84,722 $ 43,765 $ 53,337
Broker-Dealer.................................. 42,255 33,178 24,082
---------- ---------- ----------
TOTAL......................................... $ 126,977 $ 76,943 $ 77,419
========== ========== ==========
<CAPTION>
DECEMBER 31,
---------------------
1997 1996
---------- ----------
<S> <C> <C>
IDENTIFIABLE ASSETS
Insurance...................................... $8,784,570 $8,259,309
Broker-Dealer.................................. 582,308 497,739
---------- ----------
TOTAL......................................... $9,366,878 $8,757,048
========== ==========
</TABLE>
B-50
<PAGE>
PART C
------
Other Information
-----------------
<PAGE>
Item 24. Financial Statements and Exhibits
---------------------------------
(a) Financial Statements included in Part B:
Financial Statements of Penn Mutual Variable Annuity Account
III:
Report of Independent Accountants
Statement of Assets and Liabilities - December 31, 1997
Statement of Operations - For the years ended
December 31, 1997 and 1996
Statements of Changes in Net Assets - For the years ended
December 31, 1997 and 1996
Notes to Financial Statements
Financial Statements of The Penn Mutual Life Insurance Company:
Report of Independent Accountants
Statements of Financial Condition at December 31, 1997 and 1996
Statements of Operations and Surplus for the years
ended December 31, 1997, 1996 and 1995
Statements of Cash Flows for the years ended December 31, 1997
1996 and 1995
Notes to Financial Statements
(b) Exhibits
1. (a) Resolution of Executive Committee of Board of Trustees
of The Penn Mutual Life Insurance Company authorizing
the establishment of the Registrant. Incorporated
herein by reference to Exhibit 1A(1) to this
Registration Statement on Form S-6 filed on April 30,
1982.
(b) Resolution of Executive Committee of Board of Trustees
of The Penn Mutual Life Insurance Company authorizing
Registrant to invest in shares of Penn Series Funds,
Inc., Neuberger & Berman Advisers Management Trust, TCI
Portfolios, Inc. and Fidelity Investments' Variable
Insurance Products Fund and Variable Insurance Products
Fund II. Incorporated herein by reference to Exhibit
1(b) to Post-Effective Amendment No. 20 to this
Registration Statement on Form N-4 filed on April 27,
1995.
2. Not applicable.
3. (a) Sales Support Agreement between The Penn Mutual Life
Insurance Company and Horner, Townsend & Kent, Inc., a
wholly-owned subsidiary of Penn Mutual. Incorporated
herein by reference to Exhibit 3 to Post-Effective
Amendment No. 9 to
C-1
<PAGE>
this Registration Statement on Form N-4 filed on
February 26, 1987.
(b) Form of Distribution Agreement between The Penn Mutual
Life Insurance Company and Horner, Townsend & Kent,
Inc., a wholly-owned subsidiary of Penn Mutual).
Incorporated herein by reference to Exhibit 3 to Post-
Effective Amendment No. 6 to this Registration
Statement on Form N-4 filed in February 1986.
(c) Form of Broker's Contract between The Penn Mutual Life
Insurance Company and CBL Equities, Inc. Incorporated
herein by reference to Exhibit A(3)(a) to Post-
Effective Amendment No. 3 to this Registration
Statement on Form S-6 filed on July 12, 1984.
(d) Form of Agent's Agreement relating to broker-dealer
supervision. Incorporated herein by reference to
Exhibit 3(h) to Post-Effective Amendment No. 11 to this
Registration Statement filed on April 27, 1989.
(e) Form of Broker-Dealer Selling Agreement (for broker-
dealers licensed to sell variable annuity contracts
and/or variable life insurance contracts under state
insurance laws). Incorporated herein by reference to
Exhibit 3(g) to Post-Effective Amendment No. 15 to this
Registration Statement on Form N-4 filed in April 1992.
(f) Form of Broker-Dealer Selling Agreement (for broker-
dealers with affiliated corporations licensed to sell
variable annuity contracts and/or variable life
insurance contracts under state insurance laws.
Incorporated herein by reference to Exhibit 3(h) to
Post-Effective Amendment No. 15 to this Registration
Statement on Form N-4 filed in April 1992.
(g) Form of Broker-Dealer Selling Agreement (for broker-
dealers with affiliated individual licensed to sell
variable annuity contracts and/or variable life
insurance contracts under state insurance laws).
Incorporated herein by reference to Exhibit 3(i) to
Post-Effective Amendment No. 15 to this Registration
Statement on Form N-4 filed in April 1992.
4. (a) Endorsement No. 1373-86 to Individual Variable Annuity
Contract. Incorporated herein by reference to Exhibit
(4)(a) to Post-Effective Amendment No. 6 to this
Registration Statement on Form N-4 filed on February
28, 1986.
C-2
<PAGE>
(b) Endorsement No. 1447-803 to Individual Variable Annuity
Contract. Incorporated herein by reference to Exhibit
(4)(b) to Post-Effective Amendment No. 6 to this
Registration Statement on Form N-4 filed on February
28, 1986.
(c) Individual Variable Annuity Contract (Form DI-783-V).
Incorporated herein by reference to Exhibit (4)(c) to
Post-Effective Amendment No. 6 to this Registration
Statement on Form N-4 filed on February 28, 1986.
(d) Group Variable and Fixed Annuity Contract (primarily
for Section 403(b) retirement plans) (Form GDI-385) and
Certificate issued under the Contract (Form EB 1611).
Incorporated herein by reference to Exhibit (4)(d) to
Post-Effective Amendment No. 6 to this Registration
Statement on Form N-4 filed on February 28, 1986.
(e) Group Variable and Fixed Annuity Contract (primarily
for Sections 401 and 457 retirement plans) (Form GDI-
1085) and Certificate issued under the Contract (Form
EB 1650). Incorporated herein by reference to Exhibit
(4)(e) to Post-Effective Amendment No. 6 to this
Registration Statement on Form N-4 filed on February
28, 1986.
(f) Endorsement No. 1457-80 to Individual Variable Annuity
Contract. Incorporated herein by reference to Exhibit
4(f) to Post-Effective Amendment No. 10 to this
Registration Statement on Form N-4 filed in April 1988.
(g) Individual Variable Annuity Contract (Form DI-1182-V).
Incorporated herein by reference to Exhibit 4(g) to
Post-Effective Amendment No. 11 to this Registration
Statement filed on April 27, 1989.
(h) Group Variable and Fixed Annuity Contract (for Section
403(b) retirement plans) (Form GDI-784) and Certificate
issued under the Contract (Form EB 1555). Incorporated
herein by reference to Exhibit A(5) to Post-Effective
Amendment No. 2 to this Registration Statement on Form
S-6 filed on May 15, 1984.
(i) Endorsement No. 1309-82 to Individual Variable Annuity
Contract. Incorporated herein by reference to Exhibit
4(i) to Post-Effective Amendment No. 11 to this
Registration Statement filed on April 27, 1989.
(j) Individual Variable and Fixed Annuity Contract -
Flexible Purchase Payments (Form DV-790). Incorporated
herein by
C-3
<PAGE>
reference to Exhibit 4(j) to Post-Effective Amendment
No. 13 to this Registration Statement filed June 29,
1990.
(k) Endorsement No. 1499-91 to Individual Variable Annuity
Contract. Incorporated herein by reference to Exhibit
4(k) to Post-Effective Amendment No. 13 to this
Registration Statement filed June 29, 1990.
(l) Endorsement No. 1510-92 to Individual Variable and
Fixed Annuity Contract. Incorporated herein by
reference to Exhibit 4(l) to Post-Effective Amendment
No. 15 to this Registration Statement filed April 1992.
(m) Endorsement No. 1534-90 to Individual Variable and
Fixed Annuity Contract. Incorporated herein by
reference to Exhibit 4(m) to Post-Effective Amendment
No. 19 to this Registration Statement filed on April
20, 1994.
(n) Endorsement No. 1536-90 to Individual Variable and
Annuity Contract. Incorporated herein by reference to
Exhibit 4(n) to Post-Effective Amendment No. 19 to this
Registration Statement filed on April 20, 1994.
5. (a) Application (Form EB 1510) for Individual Variable
Annuity Contract. Incorporated herein by reference to
Exhibit 5(a) to Post-Effective Amendment No. 11 to this
Registration Statement filed on April 27, 1989.
(b) Application (Form EB 1610) for participation in Group
Variable and Fixed Annuity Contract. Incorporated
herein by reference to Exhibit 5(b) to Post-Effective
Amendment No. 11 to this Registration Statement filed
on April 27, 1989.
(c) Application (Form EB 1554) for participation in Group
Variable and Fixed Annuity Contract. Incorporated
herein by reference to Exhibit 5(c) to Post-Effective
Amendment No. 11 to this Registration Statement filed
on April 27, 1989.
(d) Application (Form EB 1652) for participation in Group
Variable and Fixed Annuity Contract. Incorporated
herein by reference to Exhibit 5(d) to Post-Effective
Amendment No. 11 to this Registration Statement filed
on April 27, 1989.
(e) Application (Form EB 1866 3/90) for Individual Variable
and Fixed Annuity Contract. Incorporated herein by
reference to Exhibit 5(e) to Post-Effective Amendment
No. 18 to this Registration Statement filed on April
26, 1993.
C-4
<PAGE>
(f) Application (Form EB 1891 5/90) for Individual
Variable and Fixed Annuity Contract. Incorporated
herein by reference to Post-Effective Amendment No.
17 to this Registration Statement filed August 27,
1992.
(g) Application (Form PM3502 11/94) for Individual
Variable and Fixed Annuity Contract. Incorporated
herein by reference to Exhibit 5(g) to Post-Effective
Amendment No. 20 to this Registration Statement filed
on April 27, 1995.
6. (a) Charter of The Penn Mutual Life Insurance Company
(May 1983). Incorporated herein by reference to
Exhibit 6(a) to Post-Effective Amendment No. 10 to
this Registration Statement on Form N-4 filed in
April 1988.
(b) By-laws of The Penn Mutual Life Insurance Company, as
amended through December 8, 1989. Incorporated herein
by reference to Exhibit 6(b) to Post-Effective
Amendment No. 12 to this Registration Statement filed
on April 30, 1990.
7. None.
8. (a) Fund Participation Agreement among The Penn Mutual
Life Insurance Company, TCI Portfolios, Inc.(renamed
American Century Variable Portfolios, Inc., effective
May 1, 1997) and Investors Research Corporation
(renamed American Century Investment Management,
Inc., effective May 1, 1997). Incorporated herein by
reference to Exhibit 8(a) to Post-Effective Amendment
No. 18 to this Registration Statement filed on April
26, 1993.
(b)(1) Sales Agreement between The Penn Insurance and
Annuity Company and Neuberger & Berman Advisers
Management Trust. Incorporated herein by reference to
Exhibit 1.A.(8)(b) to Pre-Effective Amendment No. 1
to the Registration Statement of Penn Mutual Variable
Annuity Account I (33-54662) filed on March 22, 1993.
(b)(2) Amendment to Sales Agreement between The Penn Mutual
Life Insurance Company and Neuberger & Berman
Advisers Management Trust. Incorporated herein by
reference to Exhibit 1.A(8)(b)(3) to Post-Effective
Amendment No. 5 to the Registration Statement of Penn
Mutual Variable Life Account I (File No. 33-54662)
filed on April 30, 1997.
(c) Sales Agreement between The Penn Mutual Life
Insurance Company and Penn Series Funds, Inc.
Incorporated herein by reference to Exhibit 1.A(8)(a)
to Pre-Effective Amendment No. 1
C-5
<PAGE>
to the Registration Statement of Penn Mutual Variable
Life Account I (File No. 33-87276) filed on April 13,
1995.
(d) Participation Agreement between The Penn Mutual Life
Insurance Company and Fidelity Investments' Variable
Insurance Products Fund. Incorporated herein by
reference to Exhibit 1.A(8)(d) to Pre-Effective
Amendment No. 1 to the Registration Statement of Penn
Mutual Variable Life Account I (File No. 33-87276)
filed on April 13, 1995.
(e) Participation Agreement between The Penn Mutual Life
Insurance Company and Fidelity Investments' Variable
Insurance Products Fund II. Incorporated herein by
reference to Exhibit 1.A(8)(e) to Pre-Effective
Amendment No. 1 to the Registration Statement of Penn
Mutual Variable Life Account I (File No. 33-87276)
filed on April 13, 1995.
(f) Participation Agreement between The Penn Mutual Life
Insurance Company and Morgan Stanley Universal Funds,
Inc. Filed herewith. Incorporated herein by reference
to Exhibit 8(f) to Post-Effective Amendment No. 2 to
the Registration Statement of PIA Variable Annuity
Account I (33-83120) filed on April 30, 1997.
(g) Assignment and Modification Agreement between
Neuberger & Berman Advisers Management Trust,
Neuberger & Berman Management Incorporated, Neuberger
& Berman Advisers Managers Trust, Advisers Managers
Trust and The Penn Mutual Life Insurance Company.
Incorporated herein by reference to Exhibit
1.A(8)(b)(2) to Post-Effective Amendment No. 4 to the
Registration Statement of Penn Mutual Variable Life
Account I (File No. 33-54662) filed on April 29,
1996.
9. Opinion of C. Ronald Rubley, Associate General Counsel of
The Penn Mutual Life Insurance Company. Incorporated herein
by reference to Exhibit 9 to Post-Effective Amendment No. 13
to this Registration Statement filed June 29, 1990.
10. (a) Consent of Ernst & Young LLP, Independent Auditors.
Filed herewith.
(b) Consent of Coopers & Lybrand LLP, Independent
Certified Public Accountants. Filed herewith.
(c) Consent of Morgan, Lewis & Bockius LLP. Filed
herewith.
11. None.
C-6
<PAGE>
12. None.
13. Schedule for Computation of Performance Quotations.
Filed herewith.
14. (a) Powers of Attorney of Trustees (except Ms. Bloch and
Messrs. Notebaert and Rock). Incorporated herein by
reference to Exhibit 14 to Post-Effective Amendment
No. 22 to this Registration Statement filed on April
29, 1997.
(b) Powers of Attorney of Edmond F. Notebaert and Robert
H. Rock. Filed herewith.
Item 25. Directors and Officers of the Depositor
---------------------------------------
The following table sets forth the names of the officers and trustees
of the Depositor who are engaged directly or indirectly in activities
relating to the Registrant or the variable annuity contracts offered by
the Registrant and the executive officers of the Depositor.
Robert E. Chappell Nancy S. Brodie
Chairman of the Board and Chief Executive Vice President and
Executive Officer and Member of Chief Financial Officer
the Board of Trustees
Daniel J. Toran Peter M. Sherman
President and Chief Operating Senior Vice President and
Officer and Member of the Board of Chief Investment Officer
Trustees
Larry L. Mast Ann M. Strootman
Executive Vice President, Sales and Vice President and Controller
Marketing
Harold E. Maude, Jr. Steven M. Herzberg
Senior Vice President, Assistant Vice President
Independence Financial Network and Treasurer
Richard F. Plush James McElwain
Vice President and Senior Actuary Assistant Vice President,
Retirement and Investment Sales
Operations
John M. Albanese
Senior Vice President, Customer
Service and Information Systems
Robert P. Davis
Vice President and Chief Actuary
Frederick M. Rockovan
Vice President, Insurance Service
C-7
<PAGE>
The business address of the director and officers is The Penn Mutual
Life Insurance Company, Philadelphia, PA 19172.
Item 26. Persons Controlled By or Under Common Control with the Depositor or
-------------------------------------------------------------------
Registrant
----------
Penn Mutual Wholly-Owned Subsidiaries
-------------------------------------
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
The Penn Insurance and Life Insurance and Annuities Delaware
Annuity Company
Independence Capital Investment Adviser Pennsylvania
Management, Inc.
Penn Janney Fund, Inc. Investments Pennsylvania
Independence Square Holding Company Pennsylvania
Properties, Inc.
The Pennsylvania Trust Trust Company Pennsylvania
Company
Independence Square Properties, Inc.
Wholly-Owned Subsidiaries
-------------------------
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
Penn Glenside Corporation Real Estate Investment Pennsylvania
Penn Wayne Corporation Real Estate Investment Pennsylvania
St. James Realty Real Estate Investment Pennsylvania
Corporation
Investors' Mortgage Real Estate Investment Pennsylvania
Corporation
Christie Street Real Estate Investment Pennsylvania
Properties, Inc.
Indepro Corporation Real Estate Investment Delaware
Economic Resources Real Estate Investment Delaware
Associates, Inc.
C-8
<PAGE>
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
WPI Investment Company Real Estate Investment Delaware
Hornor, Townsend & Kent, Registered Broker-Dealer Pennsylvania
Inc. and Investment Adviser
Penn Tallahassee Real Estate Investment Florida
Corporation
Janney Montgomery Scott Registered Broker-Dealer Delaware
Inc. and Investment Adviser
Indepro Corporation
Wholly-Owned Subsidiaries
-------------------------
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
Indepro Property Fund I Real Estate Investment Delaware
Corporation
Indepro Property Fund II Real Estate Investment Delaware
Corporation
Commons One Corporation Real Estate Investment Delaware
West Hazleton, Inc. Real Estate Investment Delaware
Janney Montgomery Scott, Inc.
Wholly-Owned Subsidiaries
-------------------------
Corporation Principal Business State of Incorporation
- ----------- ------------------ ----------------------
Addison Capital Investment Adviser Pennsylvania
Management, Inc.
JMS Resources, Inc. Oil and Gas Development Pennsylvania
JMS Investor Services, Inc. Insurance Sales Delaware
Item 27. Number of Contract Owners
-------------------------
As of March 1, 1998, there were:
27,327 owners of qualified individual variable annuity contracts;
C-9
<PAGE>
29 owners of qualified group variable annuity contracts;
470 owners of certificates issued under qualified group variable
annuity contracts; and
7,397 owners of nonqualified individual variable annuity contracts.
Item 28. Indemnification
---------------
Section 6.2 of the By-laws of The Penn Mutual Life Insurance Company
provides that, in accordance with the provisions of the Section, the
Company shall indemnify trustees and officers against expenses
(including attorneys' fees), judgments, fines, excise taxes and
amounts paid in settlement actually and reasonably incurred in
connection with actions, suits and proceedings, to the extent such
indemnification is not prohibited by law, and may provide other
indemnification to the extent not prohibited by law. The By-laws are
filed as Exhibit 6(b) to Post-Effective Amendment No. 12 to this
Registration Statement and are incorporated in this Post-Effective
Amendment by reference.
Pennsylvania law (15 Pa. C.S.A. (S)(S) 1741-1750) authorizes
Pennsylvania corporations to provide indemnification to directors,
officers and other persons.
Penn Mutual owns a directors and officers liability insurance policy
covering liabilities directors and officers of Penn Mutual and its
subsidiaries may incur in acting as directors and officers.
Selling Agreements entered into by The Penn Mutual Life Insurance
Company ("Penn Mutual") and its subsidiary, Hornor, Townsend & Kent,
Inc. ("HTK") with securities brokers and insurance agents generally
provide for indemnification of Penn Mutual and HTK and their directors
and officers in the event of liability resulting from unauthorized
acts of the brokers and insurance agents.
Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions, or
otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses
incurred or paid by a director, officer or controlling person of the
registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
registrant will, unless in the opinion of its counsel the matter has
been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and will be
governed by the final adjudication of such issue.
C-10
<PAGE>
Item 29. Principal Underwriters
----------------------
Hornor Townsend & Kent, Inc. serves as principal underwriters of the
securities of the Registrant.
Hornor Townsend & Kent, Inc. serves as principal underwriter for
Addison Capital Shares, Inc., a registered investment company.
Hornor, Townsend & Kent, Inc. - Directors and Officers
------------------------------------------------------
John J. Gray, Director and Chairman of the Board
Harold E. Maude, Jr., Director
Nina M. Mulrooney, Director
Norman T. Wilde, Jr., Director
Daniel J. Toran, Director
Ronald C. Zimmerman, President and Chief Executive Officer
Michael D. Sweeney, Assistant Vice President, Director of Compliance
and Secretary
Edward G. Pecelli - Assistant Vice President, Director of Sales and
Marketing
Laura M. Ritzko, Assistant Secretary
Henry S. Buck, Assistant Vice President and Assistant Treasurer
Barbara S. Wood, Senior Vice President, Finance and Treasurer
Bruce Ohrenich, Vice President, Sales
Joseph R. Englert, Assistant Vice President, Director of Operations
William H. Pentz, Counsel
Constance Flaville, Assistant Secretary
The principal business address of Messrs. Gray and Wilde is Janney,
Montgomery, Scott Inc., 1801 Market Street, Philadelphia,
Pennsylvania. The principal business address of Mses. Mulrooney and
Ritzko and Messrs. Maude, Toran and Pentz is The Penn Mutual Life
Insurance Company, Philadelphia, Pennsylvania, 19172. The principal
business address of the other directors and officers is Hornor,
Townsend & Kent, Inc., 600 Dresher Road, Horsham, Pennsylvania.
Commissions and Other Compensation Received By Each Principal
-------------------------------------------------------------
Underwriter During Last Fiscal Year
-----------------------------------
Net
Underwriting
Name of Principal Discounts and Compensation Brokerage Other
Underwriter Commissions on Redemption Commissions Compensation
- ------------------------------------------------------------------------------
Hornor, Townsend $436,619 0 0 0
& Kent, Inc.
C-11
<PAGE>
Item 30. Location of Accounts and Records
--------------------------------
The name and address of the person who maintains physical possession
of each account, book or other documents required by Section 31(a) of
the Investment Company Act of 1940 is as follows:
The Penn Mutual Life Insurance Company
600 Dresher Road
Horsham, Pennsylvania 19044
Item 31. Management Services
-------------------
See "Administrative and Recordkeeping Services" in Part B of this
Registration Statement.
Item 32. Undertakings
------------
The Penn Mutual Life Insurance Company hereby undertakes:
(a) to file a post-effective amendment to this registration statement
as frequently as is necessary to ensure that the audited financial
statements in the registration statement are never more than 16
months old for so long as payments under the variable annuity
contracts may be accepted;
(b) to include either (1) as part of any application to purchase a
contract or account offered by the prospectus, a space that an
applicant can check to request a statement of additional
information, or (2) a post card or similar written communication
affixed to or included in the prospectus that the applicant can
remove to send for a statement of additional information;
(c) to deliver any statement of additional information and any
financial statements required to be made available under Form N-4
promptly upon written or oral request.
Restrictions on withdrawals under Section 403(b) Contracts are imposed
in reliance upon, and in compliance with, a no-action letter issued by
the Chief of the Office of Insurance Products and Legal Compliance of
the Securities and Exchange Commission to the American Council of Life
Insurance on November 28, 1988.
The Penn Insurance and Annuity Company represents that the fees and
charges deducted under the Individual Combination Variable and Fixed
Annuity Contract and the Variable Annuity Contract, in the aggregate,
are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the Registrant.
C-12
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act
of 1940, the Registrant certifies that it meets the requirements of Securities
Act Rule 485(b) for effectiveness of this Post-Effective Amendment No. 24 of
this Registration Statement and has caused this Post-Effective Amendment No. 24
to be signed on its behalf, in the Township of Horsham and Commonwealth of
Pennsylvania on this 17th day of April, 1998.
PENN MUTUAL VARIABLE ANNUITY ACCOUNT III
(Registrant)
By: THE PENN MUTUAL LIFE INSURANCE COMPANY
(Depositor)
By: /s/ ROBERT E. CHAPPELL
-----------------------------------------------
Robert E. Chappell
Chairman of the Board of Trustees
and Chief Executive Officer
As required by the Securities Act of 1933, this Registration Statement
has been signed by the following persons, in the capacities indicated, on the
17th day of April, 1998.
Signature Title
- --------- -----
/s/ ROBERT E. CHAPPELL Chairman of the Board of Trustees
- ---------------------- and Chief Executive Officer
Robert E. Chappell
/s/ NANCY S. BRODIE Executive Vice President and
- -------------------- Chief Financial Officer
Nancy S. Brodie
JULIA CHANG BLOCH Trustee
*JAMES A. HAGEN Trustee
*PHILLIP E. LIPPINCOTT Trustee
*JOHN F. MCCAUGHAN Trustee
*ALAN B. MILLER Trustee
*EDMOND F. NOTEBAERT Trustee
*ROBERT H. ROCK Trustee
*DANIEL J. TORAN Trustee
*NORMAN T. WILDE, JR. Trustee
*WESLEY S. WILLIAMS, JR. Trustee
*By:/s/ ROBERT E. CHAPPELL
-----------------------------------------
Robert E. Chappell, attorney-in-fact
<PAGE>
EXHIBIT INDEX
EX-99.B 10(a) Consent of Ernst & Young LLP
EX-99.B 10(b) Consent of Coopers & Lybrand LLP
EX-99.B 10(c) Consent of Morgan, Lewis & Bockius LLP
EX-99.B 13 Schedule for Computation of Performance Quotations
EX-99.B 14(b) Powers of Attorney of Edmond F. Notebaert and Robert H. Rock
<PAGE>
Exhibit 10(a)
Consent of Ernst & Young LLP, Independent Auditors
We consent to the reference to our firm under the caption "Independent Auditors"
in the Statement of Additional Information, and to the use of our report dated
January 30, 1998 accompanying the financial statements of The Penn Mutual Life
Insurance Company for the year ended December 31, 1997, and to the use of our
report dated March 30, 1998 accompanying the financial statements of Penn Mutual
Variable Annuity Account III for the year ended December 31, 1997 in the Post-
Effective Amendment Number 24 to Registration Statement Number 2-77283 on Form
N-4 and the related Statement of Additional Information of Penn Mutual Variable
Annuity Account III.
/s/ Ernst & Young LLP
Philadelphia, Pennsylvania
April 20, 1998
<PAGE>
Exhibit 10(b)
Consent of Independent Accountants
We hereby consent to the following with respect to Post-Effective Amemdment No.
24 and Amendment No. 20 to the Registration Statement on Form N-4 (File No.
2-77283), filed on behalf of The Penn Mutual Life Insurance Company and Penn
Mutual Variable Annuity Account III under the Securities Act of 1933 and the
Investment Company Act of 1940:
1. The inclusion in the Statement of Additional Information of our
report dated January 31, 1997 on our audits of the consolidated
financial statements of The Penn Mutual Life Insurance Company as
of December 31, 1996 and for the two years in the period ended
December 31, 1996.
2. The inclusion in the Statement of Additional Information of our
report dated April 7, 1997, on our audit of the financial statement
of Penn Mutual Variable Annuity Account III for the year ended
December 31, 1996.
3. The reference to our firm under the heading of "Experts" in the
Registration Statement.
/s/ Coopers & Lybrand L.L.P.
Coopers & Lybrand L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
April 20, 1998
<PAGE>
Exhibit 10(c)
2000 One Logan Square Morgan, Lewis
Philadelphia, PA 19103-6993 & Bockius LLP
215-963-5000 Counselors At Law
Fax: 215-963-5299
April 20, 1998
Board of Trustees
The Penn Mutual Life Insurance Company
Philadelphia, PA 19172
Re: Penn Mutual Variable Annuity Account III
----------------------------------------
SEC Registration No. 2-77283
----------------------------
Dear Ladies and Gentlemen:
We hereby consent to the reference of our name under the caption "Legal Matters"
in the Statement of Additional Information filed as part of this Post-Effective
Amendment No. 24. In giving this consent, we do not admit that we are in the
category of persons whose consent is required under Section 7 of the Securities
Act of 1933.
Very truly yours,
/s/ Morgan, Lewis & Bockius LLP
- -------------------------------
Morgan, Lewis & Bockius LLP
<PAGE>
Exhibit 13
DIV 2 TABLE 1A
Table 1A
Diversifier II
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
Q=Qualified inception default Ended Ended Ended Through
fund N=Nonqualified date amount 12/31/97 12/31/97 12/31/97 12/31/97
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALFND Q 2/28/89 $1,000.00 10.44% 8.15% 0.00% 9.75%
- ---------------------------------------------------------------------------------------------------------------------------
CAPAPP Q 11/20/87 $1,000.00 -10.67% 3.53% 7.10% 7.74%
- ---------------------------------------------------------------------------------------------------------------------------
EMGGRO Q 5/1/97 $1,000.00 0.00% 0.00% 0.00% 46.97%
- ---------------------------------------------------------------------------------------------------------------------------
EMGMKT Q 10/1/96 $1,000.00 -7.19% 0.00% 0.00% -6.85%
- ---------------------------------------------------------------------------------------------------------------------------
FIDASM Q 9/6/89 $1,000.00 11.61% 10.94% 0.00% 11.31%
- ---------------------------------------------------------------------------------------------------------------------------
FIDEQI Q 10/9/86 $1,000.00 18.39% 17.74% 15.09% 13.07%
- ---------------------------------------------------------------------------------------------------------------------------
FIDGRO Q 10/9/86 $1,000.00 14.06% 15.74% 15.60% 14.01%
- ---------------------------------------------------------------------------------------------------------------------------
FIDIND Q 8/27/92 $1,000.00 23.05% 18.15% 0.00% 18.36%
- ---------------------------------------------------------------------------------------------------------------------------
FLEXMN Q 7/31/84 $1,000.00 6.38% 12.12% 12.37% 13.42%
- ---------------------------------------------------------------------------------------------------------------------------
GROWEQ N 6/1/83 $1,000.00 16.94% 12.31% 12.38% 11.13%
- ---------------------------------------------------------------------------------------------------------------------------
GROWEQ Q 8/11/83 $1,000.00 16.94% 12.31% 12.38% 11.35%
- ---------------------------------------------------------------------------------------------------------------------------
HIBOND Q 8/6/84 $1,000.00 6.96% 9.10% 9.64% 9.31%
- ---------------------------------------------------------------------------------------------------------------------------
INTLEQ Q 11/1/92 $1,000.00 1.83% 11.41% 0.00% 11.56%
- ---------------------------------------------------------------------------------------------------------------------------
LIMMAT Q 9/10/84 $1,000.00 -1.25% 3.72% 5.72% 6.82%
- ---------------------------------------------------------------------------------------------------------------------------
PARTNR Q 3/24/94 $1,000.00 21.60% 0.00% 0.00% 21.82%
- ---------------------------------------------------------------------------------------------------------------------------
QUALBD Q 3/17/87 $1,000.00 -0.17% 5.36% 7.24% 6.63%
- ---------------------------------------------------------------------------------------------------------------------------
SMLCAP Q 3/1/95 $1,000.00 13.77% 0.00% 0.00% 16.13%
- ---------------------------------------------------------------------------------------------------------------------------
VALUEQ Q 3/17/87 $1,000.00 15.21% 16.35% 14.94% 12.73%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DIV 2 TABLE 1B
Table 1B
Diversifier II
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
Q=Qualified inception default Ended Ended Ended Through
fund N=Nonqualified date amount 12/31/97 12/31/97 12/31/97 12/31/97
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALFND Q 2/28/89 $1,000.00 10.44% 8.05% 0.00% 9.58%
- ------------------------------------------------------------------------------------------------------------------------
CAPAPP Q 11/20/87 $1,000.00 -10.67% 3.43% 7.01% 7.74%
- ------------------------------------------------------------------------------------------------------------------------
EMGGRO Q 5/1/97 $1,000.00 0.00% 0.00% 0.00% 46.97%
- ------------------------------------------------------------------------------------------------------------------------
EMGMKT Q 10/1/96 $1,000.00 -7.19% 0.00% 0.00% -6.85%
- ------------------------------------------------------------------------------------------------------------------------
FIDASM Q 9/6/89 $1,000.00 11.61% 10.83% 0.00% 11.13%
- ------------------------------------------------------------------------------------------------------------------------
FIDEQI Q 10/9/86 $1,000.00 18.39% 17.63% 14.98% 13.07%
- ------------------------------------------------------------------------------------------------------------------------
FIDGRO Q 10/9/86 $1,000.00 14.06% 15.63% 15.49% 14.01%
- ------------------------------------------------------------------------------------------------------------------------
FIDIND Q 8/27/92 $1,000.00 23.05% 18.04% 0.00% 18.16%
- ------------------------------------------------------------------------------------------------------------------------
FLEXMN Q 7/31/84 $1,000.00 6.38% 12.01% 12.27% 13.42%
- ------------------------------------------------------------------------------------------------------------------------
GROWEQ N 6/1/83 $1,000.00 16.94% 12.21% 12.28% 11.13%
- ------------------------------------------------------------------------------------------------------------------------
GROWEQ Q 8/11/83 $1,000.00 16.94% 12.21% 12.28% 11.35%
- ------------------------------------------------------------------------------------------------------------------------
HIBOND Q 8/6/84 $1,000.00 6.96% 9.00% 9.54% 9.31%
- ------------------------------------------------------------------------------------------------------------------------
INTLEQ Q 11/1/92 $1,000.00 1.83% 11.30% 0.00% 11.36%
- ------------------------------------------------------------------------------------------------------------------------
LIMMAT Q 9/10/84 $1,000.00 -1.25% 3.62% 5.62% 6.82%
- ------------------------------------------------------------------------------------------------------------------------
PARTNR Q 3/24/94 $1,000.00 21.60% 0.00% 0.00% 21.82%
- ------------------------------------------------------------------------------------------------------------------------
QUALBD Q 3/17/87 $1,000.00 -0.17% 5.27% 7.14% 6.63%
- ------------------------------------------------------------------------------------------------------------------------
SMLCAP Q 3/1/95 $1,000.00 13.77% 0.00% 0.00% 16.13%
- ------------------------------------------------------------------------------------------------------------------------
VALUEQ Q 3/17/87 $1,000.00 15.21% 16.24% 14.83% 12.73%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DIV 2 TABLE 1C
Table 1C
Diversifier II
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
Q=Qualified inception default Ended Ended Ended Through
fund N=Nonqualified date amount 12/31/97 12/31/97 12/31/97 12/31/97
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALFND Q 2/28/89 $1,000.00 12.87% 8.02% 0.00% 9.47%
- -----------------------------------------------------------------------------------------------------------------------
CAPAPP Q 11/20/87 $1,000.00 -8.93% 3.23% 6.83% 7.74%
- -----------------------------------------------------------------------------------------------------------------------
EMGGRO Q 5/1/97 $1,000.00 0.00% 0.00% 0.00% 53.30%
- -----------------------------------------------------------------------------------------------------------------------
EMGMKT Q 10/1/96 $1,000.00 -5.40% 0.00% 0.00% -6.13%
- -----------------------------------------------------------------------------------------------------------------------
FIDASM Q 9/6/89 $1,000.00 14.12% 10.89% 0.00% 11.03%
- -----------------------------------------------------------------------------------------------------------------------
FIDEQI Q 10/9/86 $1,000.00 21.36% 17.87% 14.94% 13.07%
- -----------------------------------------------------------------------------------------------------------------------
FIDGRO Q 10/9/86 $1,000.00 16.75% 15.82% 15.46% 14.01%
- -----------------------------------------------------------------------------------------------------------------------
FIDIND Q 8/27/92 $1,000.00 26.32% 18.29% 0.00% 18.32%
- -----------------------------------------------------------------------------------------------------------------------
FLEXMN Q 7/31/84 $1,000.00 8.58% 12.11% 12.19% 13.42%
- -----------------------------------------------------------------------------------------------------------------------
GROWEQ N 6/1/83 $1,000.00 19.82% 12.31% 12.21% 11.13%
- -----------------------------------------------------------------------------------------------------------------------
GROWEQ Q 8/11/83 $1,000.00 19.82% 12.31% 12.21% 11.35%
- -----------------------------------------------------------------------------------------------------------------------
HIBOND Q 8/6/84 $1,000.00 9.17% 9.00% 9.42% 9.31%
- -----------------------------------------------------------------------------------------------------------------------
INTLEQ Q 11/1/92 $1,000.00 3.75% 11.38% 0.00% 11.34%
- -----------------------------------------------------------------------------------------------------------------------
LIMMAT Q 9/10/84 $1,000.00 0.62% 3.43% 5.41% 6.82%
- -----------------------------------------------------------------------------------------------------------------------
PARTNR Q 3/24/94 $1,000.00 24.77% 0.00% 0.00% 22.26%
- -----------------------------------------------------------------------------------------------------------------------
QUALBD Q 3/17/87 $1,000.00 1.71% 5.14% 6.97% 6.63%
- -----------------------------------------------------------------------------------------------------------------------
SMLCAP Q 3/1/95 $1,000.00 16.43% 0.00% 0.00% 16.72%
- -----------------------------------------------------------------------------------------------------------------------
VALUEQ Q 3/17/87 $1,000.00 17.99% 16.45% 14.79% 12.73%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DIV 2 TABLE 1D
Table 1D
Diversifier II
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
Q=Qualified inception default Ended Ended Ended Through
fund N=Nonqualified date amount 12/31/97 12/31/97 12/31/97 12/31/97
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
GROWEQ N 6/1/83 $1,000.00 19.19% 11.89% 12.24% 11.13%
- -----------------------------------------------------------------------------------------------------------------------------
GROWEQ Q 8/11/83 $1,000.00 19.19% 11.89% 12.24% 11.35%
- -----------------------------------------------------------------------------------------------------------------------------
FLEXMN Q 7/31/84 $1,000.00 8.44% 11.70% 12.23% 13.42%
- -----------------------------------------------------------------------------------------------------------------------------
HIBOND Q 8/6/84 $1,000.00 9.02% 8.69% 9.50% 9.31%
- -----------------------------------------------------------------------------------------------------------------------------
INTLEQ Q 11/1/92 $1,000.00 3.79% 10.99% 0.00% 10.96%
- -----------------------------------------------------------------------------------------------------------------------------
QUALBD Q 3/17/87 $1,000.00 1.75% 4.97% 7.11% 6.63%
- -----------------------------------------------------------------------------------------------------------------------------
VALUEQ Q 3/17/87 $1,000.00 17.44% 15.92% 14.79% 12.73%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DIV 2 TABLE 2
Table 2
Diversifier II
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
Q=Qualified inception default Ended Ended Ended Through
fund N=Nonqualified date amount 12/31/97 12/31/97 12/31/97 12/31/97
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALFND Q 2/28/89 $1,000.00 17.87% 8.74% 0.00% 9.75%
- -----------------------------------------------------------------------------------------------------------------------
CAPAPP Q 11/20/87 $1,000.00 -4.65% 4.09% 7.10% 7.10%
- -----------------------------------------------------------------------------------------------------------------------
EMGGRO Q 5/1/97 $1,000.00 0.00% 0.00% 0.00% 62.00%
- -----------------------------------------------------------------------------------------------------------------------
EMGMKT Q 10/1/96 $1,000.00 -0.95% 0.00% 0.00% -2.62%
- -----------------------------------------------------------------------------------------------------------------------
FIDASM Q 9/6/89 $1,000.00 19.12% 11.55% 0.00% 11.31%
- -----------------------------------------------------------------------------------------------------------------------
FIDEQI Q 10/9/86 $1,000.00 26.36% 18.38% 15.09% 13.07%
- -----------------------------------------------------------------------------------------------------------------------
FIDGRO Q 10/9/86 $1,000.00 21.75% 16.37% 15.60% 14.01%
- -----------------------------------------------------------------------------------------------------------------------
FIDIND Q 8/27/92 $1,000.00 31.32% 18.80% 0.00% 18.77%
- -----------------------------------------------------------------------------------------------------------------------
FLEXMN Q 7/31/84 $1,000.00 13.58% 12.74% 12.37% 13.42%
- -----------------------------------------------------------------------------------------------------------------------
GROWEQ N 6/1/83 $1,000.00 24.82% 12.93% 12.38% 11.13%
- -----------------------------------------------------------------------------------------------------------------------
GROWEQ Q 8/11/83 $1,000.00 24.82% 12.93% 12.38% 11.35%
- -----------------------------------------------------------------------------------------------------------------------
HIBOND Q 8/6/84 $1,000.00 14.17% 9.70% 9.64% 9.31%
- -----------------------------------------------------------------------------------------------------------------------
INTLEQ Q 11/1/92 $1,000.00 8.70% 12.02% 0.00% 11.95%
- -----------------------------------------------------------------------------------------------------------------------
LIMMAT Q 9/10/84 $1,000.00 5.39% 4.29% 5.72% 6.82%
- -----------------------------------------------------------------------------------------------------------------------
PARTNR Q 3/24/94 $1,000.00 29.77% 0.00% 0.00% 23.01%
- -----------------------------------------------------------------------------------------------------------------------
QUALBD Q 3/17/87 $1,000.00 6.55% 5.94% 7.24% 6.63%
- -----------------------------------------------------------------------------------------------------------------------
SMLCAP Q 3/1/95 $1,000.00 21.43% 0.00% 0.00% 18.03%
- -----------------------------------------------------------------------------------------------------------------------
VALUEQ Q 3/17/87 $1,000.00 22.99% 16.99% 14.94% 12.73%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
DIV 2 TABLE 3
Table 3
Diversifier II
<TABLE>
<CAPTION>
Five Ten From
One Year Years Years Inception
Q=Qualified inception default Ended Ended Ended Through
fund N=Nonqualified date amount 12/31/97 12/31/97 12/31/97 12/31/97
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALFND Q 2/28/89 $10,000.00 17.96% 8.82% 0.00% 9.81%
- ----------------------------------------------------------------------------------------------------------------------------
CAPAPP Q 11/20/87 $10,000.00 -4.48% 4.25% 7.23% 7.87%
- ----------------------------------------------------------------------------------------------------------------------------
EMGGRO Q 5/1/97 $10,000.00 0.00% 0.00% 0.00% 62.01%
- ----------------------------------------------------------------------------------------------------------------------------
EMGMKT Q 10/1/96 $10,000.00 -0.94% 0.00% 0.00% -2.61%
- ----------------------------------------------------------------------------------------------------------------------------
FIDASM Q 9/6/89 $10,000.00 19.15% 11.57% 0.00% 11.33%
- ----------------------------------------------------------------------------------------------------------------------------
FIDEQI Q 10/9/86 $10,000.00 26.50% 18.49% 15.18% 13.16%
- ----------------------------------------------------------------------------------------------------------------------------
FIDGRO Q 10/9/86 $10,000.00 21.93% 16.51% 15.70% 14.11%
- ----------------------------------------------------------------------------------------------------------------------------
FIDIND Q 8/27/92 $10,000.00 31.33% 18.81% 0.00% 18.78%
- ----------------------------------------------------------------------------------------------------------------------------
FLEXMN Q 7/31/84 $10,000.00 14.15% 13.21% 12.73% 13.70%
- ----------------------------------------------------------------------------------------------------------------------------
GROWEQ N 6/1/83 $10,000.00 25.14% 13.21% 12.59% 11.30%
- ----------------------------------------------------------------------------------------------------------------------------
GROWEQ Q 8/11/83 $10,000.00 25.14% 13.21% 12.59% 11.53%
- ----------------------------------------------------------------------------------------------------------------------------
HIBOND Q 8/6/84 $10,000.00 14.33% 9.84% 9.76% 9.42%
- ----------------------------------------------------------------------------------------------------------------------------
INTLEQ Q 11/1/92 $10,000.00 9.00% 12.25% 0.00% 12.22%
- ----------------------------------------------------------------------------------------------------------------------------
LIMMAT Q 9/10/84 $10,000.00 5.41% 4.31% 5.73% 6.84%
- ----------------------------------------------------------------------------------------------------------------------------
PARTNR Q 3/24/94 $10,000.00 29.78% 0.00% 0.00% 23.02%
- ----------------------------------------------------------------------------------------------------------------------------
QUALBD Q 3/17/87 $10,000.00 6.67% 6.06% 7.33% 6.73%
- ----------------------------------------------------------------------------------------------------------------------------
SMLCAP Q 3/1/95 $10,000.00 21.49% 0.00% 0.00% 18.09%
- ----------------------------------------------------------------------------------------------------------------------------
VALUEQ Q 3/17/87 $10,000.00 23.38% 17.32% 15.18% 13.00%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Table 1A - Diversifier II Variable/Fixed Annuity Contracts
(assuming no purchase payments made after first contract year)
Diversifier II - 1 YR - Tbl 1a
<TABLE>
<CAPTION>
Q=qualified
N=Nonqualified Beginning # of unis
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 BALFND Q 12/31/96 13.181800 1000.000000 75.862174
- --------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/97 15.550604 1179.702620 75.862174
- --------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/96 13.282214 1000.000000 75.288653
- --------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/97 12.689870 955.403218 75.288653
- --------------------------------------------------------------------------------------------------------
1a DIV3 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- --------------------------------------------------------------------------------------------------------
1a DIV4 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/96 12.622550 1000.000000 79.223295
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/97 15.040064 1191.523424 79.223295
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/96 13.453420 1000.000000 74.330542
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/97 17.020857 1265.169526 74.330542
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/96 13.999957 1000.000000 71.428791
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/97 17.072612 1219.476031 71.428791
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/96 9.260696 1000.000000 107.983244
- --------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/97 12.162415 1313.337032 107.983244
- --------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/96 49.261868 1000.000000 20.299677
- --------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/97 56.265009 1142.161499 20.299677
- --------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/96 38.234636 1000.000000 26.154296
- --------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/97 47.858840 1251.714283 26.154296
- --------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/96 38.552321 1000.000000 25.938776
- --------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/97 48.256483 1251.714080 25.938776
- --------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/96 29.275542 1000.000000 34.158206
- --------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/97 33.475732 1143.470956 34.158206
- --------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/96 16.658717 1000.000000 60.028632
- --------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/97 18.164033 1090.362061 60.028632
- --------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/96 11.329532 1000.000000 88.264899
- --------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/97 11.943129 1054.159077 88.264899
- --------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/96 9.562838 1000.000000 104.571467
- --------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/97 12.411136 1297.850701 104.571467
- --------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/96 18.990158 1000.000000 52.658856
- --------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/97 20.260333 1066.885963 52.658856
- --------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/96 13.211266 1000.000000 75.692973
- --------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/97 16.051216 1214.964259 75.692973
- --------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/96 30.819233 1000.000000 32.447271
- --------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/97 38.038246 1234.237270 32.447271
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=Nonqualified fee & deferred at end of Ending return for
- ----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 BALFND Q 12/31/96 0.000000 75.862174 1000.000000 10.44%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/97 4.842337 71.019837 1104.401355 10.44%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/96 0.000000 75.288653 1000.000000 -10.67%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/97 4.896851 70.391802 893.262815 -10.67%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV3 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 -7.19%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV4 EMGMKT Q 12/31/97 6.961771 103.418720 928.138849 -7.19%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/96 0.000000 79.223295 1000.000000 11.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/97 5.013674 74.209621 1116.117449 11.61%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/96 0.000000 74.330542 1000.000000 18.39%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/97 4.776239 69.554303 1183.873846 18.39%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/96 0.000000 71.428791 1000.000000 14.06%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/97 4.617746 66.811045 1140.639041 14.06%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/96 0.000000 107.983244 1000.000000 23.05%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/97 6.813633 101.169611 1230.466799 23.05%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/96 0.000000 20.299677 1000.000000 6.38%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/97 1.392805 18.906872 1063.795325 6.38%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/96 0.000000 26.154296 1000.000000 16.94%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/97 1.720643 24.433653 1169.366284 16.94%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/96 0.000000 25.938776 1000.000000 16.94%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/97 1.706465 24.232311 1169.366093 16.94%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/96 0.000000 34.158206 1000.000000 6.96%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/97 2.205737 31.952469 1069.632286 6.96%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/96 0.000000 60.028632 1000.000000 1.83%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/97 3.968436 56.060196 1018.279251 1.83%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/96 0.000000 88.264899 1000.000000 -1.25%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/97 5.582458 82.682441 987.487055 -1.25%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/96 0.000000 104.571467 1000.000000 21.60%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/97 6.598477 97.972990 1215.956107 21.60%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/96 0.000000 52.658856 1000.000000 -0.17%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/97 3.387596 49.271261 998.252147 -0.17%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/96 0.000000 75.692973 1000.000000 13.77%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/97 4.812268 70.880705 1137.721510 13.77%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/96 0.000000 32.447271 1000.000000 15.21%
- ----------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/97 2.158274 30.288997 1152.140322 15.21%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - 1 YR - Tbl 1b
<TABLE>
<CAPTION>
Q=qualified
N=Nonqualified Beginning # of unis
- --------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 BALFND Q 12/31/96 13.181800 1000.000000 75.862174
- --------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 15.550604 1179.702620 75.862174
- --------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/96 13.282214 1000.000000 75.288653
- --------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 12.689870 955.403218 75.288653
- --------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- --------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/96 12.622550 1000.000000 79.223295
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 15.040064 1191.523424 79.223295
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/96 13.453420 1000.000000 74.330542
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 17.020857 1265.169526 74.330542
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/96 13.999957 1000.000000 71.428791
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/97 17.072612 1219.476031 71.428791
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/96 9.260696 1000.000000 107.983244
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/97 12.162415 1313.337032 107.983244
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/96 49.261868 1000.000000 20.299677
- --------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 56.265009 1142.161499 20.299677
- --------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/96 38.234636 1000.000000 26.154296
- --------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 47.858840 1251.714283 26.154296
- --------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/96 38.552321 1000.000000 25.938776
- --------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 48.256483 1251.714080 25.938776
- --------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/96 29.275542 1000.000000 34.158206
- --------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 33.475732 1143.470956 34.158206
- --------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/96 16.658717 1000.000000 60.028632
- --------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 18.164033 1090.362061 60.028632
- --------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/96 11.329532 1000.000000 88.264899
- --------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 11.943129 1054.159077 88.264899
- --------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/96 9.562838 1000.000000 104.571467
- --------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/97 12.411136 1297.850701 104.571467
- --------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/96 18.990158 1000.000000 52.658856
- --------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 20.260333 1066.885963 52.658856
- --------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 13.211266 1000.000000 75.692973
- --------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/97 16.051216 1214.964259 75.692973
- --------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/96 30.819233 1000.000000 32.447271
- --------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 38.038246 1234.237270 32.447271
- --------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=Nonqualified fee & deferred at end of Ending return for
- -------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 BALFND Q 12/31/96 0.000000 75.862174 1000.000000 10.44%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 4.842337 71.019837 1104.401355 10.44%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/96 0.000000 75.288653 1000.000000 -10.67%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 4.896851 70.391802 893.262815 -10.67%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 -7.19%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/97 6.961771 103.418720 928.138849 -7.19%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/96 0.000000 79.223295 1000.000000 11.61%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 5.013674 74.209621 1116.117449 11.61%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/96 0.000000 74.330542 1000.000000 18.39%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 4.776239 69.554303 1183.873846 18.39%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/96 0.000000 71.428791 1000.000000 14.06%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/97 4.617746 66.811045 1140.639041 14.06%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/96 0.000000 107.983244 1000.000000 23.05%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/97 6.813633 101.169611 1230.466799 23.05%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/96 0.000000 20.299677 1000.000000 6.38%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 1.392805 18.906872 1063.795325 6.38%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/96 0.000000 26.154296 1000.000000 16.94%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 1.720643 24.433653 1169.366284 16.94%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/96 0.000000 25.938776 1000.000000 16.94%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 1.706465 24.232311 1169.366093 16.94%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/96 0.000000 34.158206 1000.000000 6.96%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 2.205737 31.952469 1069.632286 6.96%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/96 0.000000 60.028632 1000.000000 1.83%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 3.968436 56.060196 1018.279251 1.83%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/96 0.000000 88.264899 1000.000000 -1.25%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 5.582458 82.682441 987.487055 -1.25%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/96 0.000000 104.571467 1000.000000 21.60%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/97 6.598477 97.972990 1215.956107 21.60%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/96 0.000000 52.658856 1000.000000 -0.17%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 3.387596 49.271261 998.252147 -0.17%
- ------------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 0.000000 75.692973 1000.000000 13.77%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/97 4.812268 70.880705 1137.721510 13.77%
- -------------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/96 0.000000 32.447271 1000.000000 15.21%
- ------------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 2.158274 30.288997 1152.140322 15.21%
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Diversifier II - 1 YR - Tbl 1c
Table 1C - Diversifier II Variable Contracts
<TABLE>
<CAPTION>
Q=qualified
N=Nonqualified Beginning # of units
- ----------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 BALFND Q 12/31/96 13.181800 1000.000000 75.862174
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 15.550604 1179.702620 75.862174
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/96 13.282214 1000.000000 75.288653
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 12.689870 955.403218 75.288653
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/96 12.622550 1000.000000 79.223295
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 15.040064 1191.523424 79.223295
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/96 13.453420 1000.000000 74.330542
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 17.020857 1265.169526 74.330542
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/96 13.999957 1000.000000 71.428791
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/97 17.072612 1219.476031 71.428791
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/96 9.260696 1000.000000 107.983244
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 12.162415 1313.337032 107.983244
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/96 49.261868 1000.000000 20.299677
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 56.265009 1142.161499 20.299677
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/96 38.234636 1000.000000 26.154296
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 47.858840 1251.714283 26.154296
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/96 38.552321 1000.000000 25.938776
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 48.256483 1251.714080 25.938776
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/96 29.275542 1000.000000 34.158206
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 33.475732 1143.470956 34.158206
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/96 16.658717 1000.000000 60.028632
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 18.164033 1090.362061 60.028632
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/96 11.329532 1000.000000 88.264899
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 11.943129 1054.159077 88.264899
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/96 9.562838 1000.000000 104.571467
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 12.411136 1297.850701 104.571467
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/96 18.990158 1000.000000 52.658856
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 20.260333 1066.885963 52.658856
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/96 13.211266 1000.000000 75.692973
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 16.051216 1214.964259 75.692973
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/95 30.819233 1000.000000 32.447271
- ----------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/96 38.038246 1234.237270 32.447271
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=Nonqualified fee & deferred at end of Ending return for
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 BALFND Q 12/31/96 0.000000 75.862174 1000.000000 12.87%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 3.278329 72.583844 1128.722620 12.87%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/96 0.000000 75.288653 1000.000000 -8.93%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 3.524083 71.764569 910.683057 -8.93%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 -5.40%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 4.969695 105.410796 946.016880 -5.40%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/96 0.000000 79.223295 1000.000000 14.12%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 3.347060 75.876235 1141.183424 14.12%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/96 0.000000 74.330542 1000.000000 21.36%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 3.030987 71.299555 1213.579526 21.36%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/96 0.000000 71.428791 1000.000000 16.75%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/97 3.046400 68.382391 1167.466031 16.75%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/96 0.000000 107.983244 1000.000000 26.32%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 4.121714 103.861530 1263.207032 26.32%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/96 0.000000 20.299677 1000.000000 8.58%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 1.002577 19.297100 1085.751499 8.58%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/96 0.000000 26.154296 1000.000000 19.82%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 1.117662 25.036634 1198.224283 19.82%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/96 0.000000 25.938776 1000.000000 19.82%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 1.108452 24.830323 1198.224080 19.82%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/96 0.000000 34.158206 1000.000000 9.17%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 1.547390 32.610817 1091.670956 9.17%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/96 0.000000 60.028632 1000.000000 3.75%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 2.912795 57.115838 1037.453958 3.75%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/96 0.000000 88.264899 1000.000000 0.62%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 4.016364 84.248535 1006.191123 0.62%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/96 0.000000 104.571467 1000.000000 24.77%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 4.039115 100.532353 1247.720701 24.77%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/96 0.000000 52.658856 1000.000000 1.71%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 2.456243 50.202613 1017.121665 1.71%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/96 0.000000 75.692973 1000.000000 16.43%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 3.158639 72.534334 1164.264259 16.43%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/95 0.000000 32.447271 1000.000000 17.99%
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/96 1.428562 31.018709 1179.897270 17.99%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Diversifier II - 1 YR - TBL 10
Table 1D -Penn Mutual Optimizer Group Variable Annuity Contract
<TABLE>
<CAPTION>
Q=qualified
N=Nonqualified Beginning # of unis
- ------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1d DIV2 FLEXMN Q 12/31/96 49.261868 1000.000000 20.299677
- ------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 56.265009 1142.161499 20.299677
- ------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/96 38.234636 1000.000000 26.154296
- ------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 47.858840 1251.714283 26.154296
- ------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/96 38.552321 1000.000000 25.938776
- ------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 48.256483 1251.714080 25.938776
- ------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/96 29.275542 1000.000000 34.158206
- ------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 33.475732 1143.470956 34.158206
- ------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/96 16.658717 1000.000000 60.028632
- ------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 18.164033 1090.362061 60.028632
- ------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/96 18.990158 1000.000000 52.658856
- ------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 20.260333 1066.885963 52.658856
- ------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/96 30.819233 1000.000000 32.447271
- ------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 38.038246 1234.237270 32.447271
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=Nonqualified fee & deferred at end of Ending return for
- -------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1d DIV2 FLEXMN Q 12/31/96 0.000000 20.299677 1000.000000 8.44%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 1.027411 19.272266 1084.354232 8.44%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/96 0.000000 26.154296 1000.000000 19.19%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 1.249866 24.904430 1191.897141 19.19%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/96 0.000000 25.938776 1000.000000 19.19%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 1.239567 24.699209 1191.896946 19.19%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/96 0.000000 34.158206 1000.000000 9.02%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 1.590890 32.567317 1090.214763 9.02%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/96 0.000000 60.028632 1000.000000 3.79%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 2.887921 57.140711 1037.905768 3.79%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/96 0.000000 52.658856 1000.000000 1.75%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 2.439736 50.219120 1017.456094 1.75%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/96 0.000000 32.447271 1000.000000 17.44%
- -------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 1.574223 30.873048 1174.356593 17.44%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - 1 YR - Tbl 2
<TABLE>
<CAPTION>
Q=qualified
N=Nonqualified Beginning # of units
- -------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 BALFND Q 12/31/96 13.181800 1000.000000 75.862174
- -------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 15.550604 1179.702620 75.862174
- -------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/96 13.282214 1000.000000 75.288653
- -------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 12.689870 955.403218 75.288653
- -------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- -------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/96 12.622550 1000.000000 79.223295
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 15.040064 1191.523424 79.223295
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/96 13.453420 1000.000000 74.330542
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 17.020857 1265.169526 74.330542
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/96 13.999957 1000.000000 71.428791
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/97 17.072612 1219.476031 71.428791
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/96 9.260696 1000.000000 107.983244
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/97 12.162415 1313.337032 107.983244
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/96 49.261868 1000.000000 20.299677
- -------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 56.265009 1142.161499 20.299677
- -------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/96 38.234636 1000.000000 26.154296
- -------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 47.858840 1251.714283 26.154296
- -------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/96 38.552321 1000.000000 25.938776
- -------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 48.256483 1251.714080 25.938776
- -------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/96 29.275542 1000.000000 34.158206
- -------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 33.475732 1143.470956 34.158206
- -------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/96 16.658717 1000.000000 60.028632
- -------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/97 18.164033 1090.362061 60.028632
- -------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/96 11.329532 1000.000000 88.264899
- -------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 11.943129 1054.159077 88.264899
- -------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/96 9.562838 1000.000000 104.571467
- -------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/97 12.411136 1297.850701 104.571467
- -------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/96 18.990158 1000.000000 52.658856
- -------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 20.260333 1066.885963 52.658856
- -------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/96 13.211266 1000.000000 75.692973
- -------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/97 16.051216 1214.964259 75.692973
- -------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/96 30.819233 1000.000000 32.447271
- -------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 38.038246 1234.237270 32.447271
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=Nonqualified fee & deferred at end of Ending return for
- -------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 BALFND Q 12/31/96 0.000000 75.862174 1000.000000 17.87%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 0.063020 75.799154 1178.722620 17.87%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/96 0.000000 75.288653 1000.000000 -4.65%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 0.153666 75.134987 953.453218 -4.65%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 -0.95%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 0.007800 110.372691 990.547769 -0.95%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/96 0.000000 79.223295 1000.000000 19.12%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 0.022606 79.200689 1191.183424 19.12%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/96 0.000000 74.330542 1000.000000 26.36%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 0.093415 74.237127 1263.579526 26.36%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/96 0.000000 71.428791 1000.000000 21.75%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/97 0.117732 71.311058 1217.466031 21.75%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/96 0.000000 107.983244 1000.000000 31.32%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/97 0.010689 107.972556 1313.207032 31.32%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/96 0.000000 20.299677 1000.000000 13.58%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 0.113925 20.185752 1135.751499 13.58%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/96 0.000000 26.154296 1000.000000 24.82%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 0.072923 26.081374 1248.224283 24.82%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/96 0.000000 25.938776 1000.000000 24.82%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 0.072322 25.866454 1248.224080 24.82%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/96 0.000000 34.158206 1000.000000 14.17%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 0.053770 34.104436 1141.670956 14.17%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/96 0.000000 60.028632 1000.000000 8.70%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/97 0.186633 59.842000 1086.972061 8.70%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/96 0.000000 88.264899 1000.000000 5.39%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 0.021770 88.243129 1053.899077 5.39%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/96 0.000000 104.571467 1000.000000 29.77%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/97 0.010474 104.560993 1297.720701 29.77%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/96 0.000000 52.658856 1000.000000 6.55%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 0.070088 52.588769 1065.465963 6.55%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/96 0.000000 75.692973 1000.000000 21.43%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/97 0.043610 75.649363 1214.264259 21.43%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/96 0.000000 32.447271 1000.000000 22.99%
- -------------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 0.114096 32.333175 1229.897270 22.99%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Table 3 - Diversifier II Variable/ Diversifier II - 1 YR - Tbl 3
Fixed Annuity Contracts
<TABLE>
<CAPTION>
Q=qualified
N=Nonqualified Beginning # of units
- ----------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 BALFND Q 12/31/96 13.181800 10000.000000 758.621736
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 15.550604 11797.026203 758.621736
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/96 13.282214 10000.000000 752.886529
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 12.689870 9554.032182 752.886529
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/96 9.059572 10000.000000 1103.804904
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 8.974573 9906.177687 1103.804904
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/96 12.622550 10000.000000 792.232948
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 15.040064 11915.234243 792.232948
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/96 13.453420 10000.000000 743.305420
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 17.020857 12651.695257 743.305420
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/96 13.999957 10000.000000 714.287908
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/97 17.072612 12194.760312 714.287908
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/96 9.260696 10000.000000 1079.832445
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/97 12.162415 13133.370321 1079.832445
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/96 49.261868 10000.000000 202.996768
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/97 56.265009 11421.614990 202.996768
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/96 38.234636 10000.000000 261.542963
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 47.858840 12517.142834 261.542963
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/96 38.552321 10000.000000 259.387755
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 48.256483 12517.140797 259.387755
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/96 29.275542 10000.000000 341.582062
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 33.475732 11434.709561 341.582062
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/96 16.658717 10000.000000 600.286325
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 18.164033 10903.620609 600.286325
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/96 11.329532 10000.000000 882.648992
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 11.943129 10541.590774 882.648992
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/96 9.562838 10000.000000 1045.714672
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 12.411136 12978.507008 1045.714672
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/96 18.990158 10000.000000 526.588562
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 20.260333 10668.859627 526.588562
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/96 13.211266 10000.000000 756.929730
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 16.051216 12149.642585 756.929730
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 30.819233 10000.000000 324.472708
- ----------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/97 38.038246 12342.372700 324.472708
- ----------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=Nonqualified fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 1yr
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 BALFND Q 12/31/96 0.000000 758.621736 10000.000000 17.96%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 0.063020 758.558716 11796.046203 17.96%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/96 0.000000 752.886529 10000.000000 -4.48%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 0.153666 752.732863 9552.082182 -4.48%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/96 0.000000 1103.804904 10000.000000 -0.94%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 0.007800 1103.797104 9906.107687 -0.94%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/96 0.000000 792.232948 10000.000000 19.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 0.022606 792.210342 11914.894243 19.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/96 0.000000 743.305420 10000.000000 26.50%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 0.093415 743.212005 12650.105257 26.50%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/96 0.000000 714.287908 10000.000000 21.93%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/97 0.117732 714.170176 12192.750312 21.93%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/96 0.000000 1079.832445 10000.000000 31.33%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/97 0.010689 1079.821756 13133.240321 31.33%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/96 0.000000 202.996768 10000.000000 14.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/97 0.113925 202.882843 11415.204990 14.15%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/96 0.000000 261.542963 10000.000000 25.14%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 0.072923 261.470041 12513.652834 25.14%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/96 0.000000 259.387755 10000.000000 25.14%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 0.072322 259.315433 12513.650797 25.14%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/96 0.000000 341.582062 10000.000000 14.33%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 0.053770 341.528292 11432.909561 14.33%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/96 0.000000 600.286325 10000.000000 9.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 0.186633 600.099692 10900.230609 9.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/96 0.000000 882.648992 10000.000000 5.41%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 0.021770 882.627222 10541.330774 5.41%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/96 0.000000 1045.714672 10000.000000 29.78%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 0.010474 1045.704197 12978.377008 29.78%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/96 0.000000 526.588562 10000.000000 6.67%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 0.070088 526.518475 10667.439627 6.67%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/96 0.000000 756.929730 10000.000000 21.49%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 0.043610 756.886119 12148.942585 21.49%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 0.000000 324.472708 10000.000000 23.38%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/97 0.114096 324.358613 12338.032700 23.38%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 6
<PAGE>
Diversifier II - 5YR . Tbl 1A
Table 1A - Diversifier II Variable/Fixed Annuity Contracts
(assuming no purchase payments made after first contract year)
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ----------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a div2 BALFND Q 12/31/92 10.183039 1000.000000 98.202511
- ----------------------------------------------------------------------------------------------------------------
1a div2 BALFND Q 12/31/93 10.705679 1051.324560 98.202511
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/94 10.217587 1002.457380 98.110971
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/95 12.489026 1224.112605 98.015058
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/96 13.181800 1290.980528 97.936589
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/97 15.550604 1521.817003 97.862244
- ----------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP Q 12/31/92 10.296825 1000.000000 97.117315
- ----------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP Q 12/31/93 11.124183 1080.350788 97.117315
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/94 10.857486 1052.546641 96.942022
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/95 14.058113 1360.297062 96.762422
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/96 13.282214 1283.376820 96.623712
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/97 12.689870 1224.279308 96.476899
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/92 8.695786 1000.000000 114.998230
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/93 10.411214 1197.271184 114.998230
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/94 9.655628 1110.064806 114.965573
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/95 11.153657 1281.893819 114.930360
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/96 12.622550 1450.329445 114.899877
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/97 15.040064 1727.696388 114.872941
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/92 7.279096 1000.000000 137.379697
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/93 8.503809 1168.250700 137.379697
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/94 8.991578 1233.579057 137.192722
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/95 11.921222 1633.396835 137.015889
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/96 13.453420 1841.537949 136.882514
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/97 17.020857 2327.846074 136.764328
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/92 7.941793 1000.000000 125.916150
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/93 9.362411 1178.878749 125.916150
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/94 9.244314 1162.023784 125.701462
- ----------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/95 12.359885 1550.968192 125.484031
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/96 13.999957 1754.494324 125.321408
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/97 17.072612 2137.112628 125.177836
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/92 30.179495 1000.000000 33.135081
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/93 34.512855 1143.586233 33.135081
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/94 35.495155 1169.542382 32.949353
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/95 42.867835 1404.725998 32.768765
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/96 49.261868 1606.884465 32.619235
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/97 56.265009 1828.000315 32.489114
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/92 25.692327 1000.000000 38.922126
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/93 28.528477 1110.388989 38.922126
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/94 25.886803 1004.402586 38.799793
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/95 32.329694 1250.026804 38.664975
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/96 38.234636 1474.213797 38.557025
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/97 47.858840 1840.925984 38.465746
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/92 25.905809 1000.000000 38.601381
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/93 28.765516 1110.388639 38.601381
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/94 26.101888 1004.402087 38.480055
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/95 32.598304 1250.025917 38.346348
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/96 38.552321 1474.213285 38.239287
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/97 48.256483 1840.925043 38.148761
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/92 20.917682 1000.000000 47.806444
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/93 24.742238 1182.838423 47.806444
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/94 22.643778 1080.871175 47.733694
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/95 26.034837 1240.669387 47.654202
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/96 29.275542 1393.078542 47.585064
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/97 33.475732 1590.886604 47.523579
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- ----------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- ----------------------------------------------------------------------------------------------------------------
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a div2 BALFND Q 12/31/92 0.000000 98.202511 1000.000000 8.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 BALFND Q 12/31/93 0.091540 98.110971 1050.344560 8.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/94 0.095913 98.015058 1001.477380 8.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/95 0.078469 97.936589 1223.132605 8.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/96 0.074345 97.862244 1290.000528 8.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/97 2.705301 95.156943 1479.747944 8.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP Q 12/31/92 0.000000 97.117315 1000.000000 3.53%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP Q 12/31/93 0.175294 96.942022 1078.400788 3.53%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/94 0.179600 96.762422 1050.596641 3.53%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/95 0.138710 96.623712 1358.347062 3.53%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/96 0.146813 96.476899 1281.426820 3.53%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/97 2.758542 93.718357 1189.273766 3.53%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/97 2.988073 107.392417 963.801089 0.00%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/92 0.000000 114.998230 1000.000000 10.94%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/93 0.032657 114.965573 1196.931184 10.94%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/94 0.035213 114.930360 1109.724806 10.94%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/95 0.030483 114.899877 1281.553819 10.94%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/96 0.026936 114.872941 1449.989445 10.94%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/97 3.124176 111.748766 1680.708586 10.94%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/92 0.000000 137.379697 1000.000000 17.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/93 0.186975 137.192722 1166.660700 17.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/94 0.176832 137.015889 1231.989057 17.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/95 0.133376 136.882514 1631.806835 17.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/96 0.118186 136.764328 1839.947949 17.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/97 3.786052 132.978277 2263.404230 17.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/92 0.000000 125.916150 1000.000000 15.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/93 0.214688 125.701462 1176.868749 15.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/94 0.217431 125.484031 1160.013784 15.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/95 0.162623 125.321408 1548.958192 15.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/96 0.143572 125.177836 1752.484324 15.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/97 3.497534 121.680302 2077.400587 15.74%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/92 0.000000 194.714665 1000.000000 18.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/93 0.023267 194.691398 1087.800222 18.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/94 0.023227 194.668171 1089.543737 18.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/95 0.017077 194.651094 1481.786903 18.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/96 0.014038 194.637056 1802.474607 18.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/97 5.265889 189.371167 2303.210722 18.15%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/92 0.000000 33.135081 1000.000000 12.12%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/93 0.185728 32.949353 1137.176233 12.12%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/94 0.180588 32.768765 1163.132382 12.12%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/95 0.149529 32.619235 1398.315998 12.12%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/96 0.130121 32.489114 1600.474465 12.12%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/97 0.991131 31.497983 1772.234306 12.12%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/92 0.000000 38.922126 1000.000000 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/93 0.122334 38.799793 1106.898989 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/94 0.134818 38.664975 1000.912586 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/95 0.107950 38.557025 1246.536804 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/96 0.091278 38.465746 1470.723797 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/97 1.111498 37.354248 1787.730982 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/92 0.000000 38.601381 1000.000000 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/93 0.121326 38.480055 1106.898639 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/94 0.133707 38.346348 1000.912087 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/95 0.107061 38.239287 1246.535917 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/96 0.090526 38.148761 1470.723285 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/97 1.102338 37.046423 1787.730067 12.31%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/92 0.000000 47.806444 1000.000000 9.10%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/93 0.072750 47.733694 1181.038423 9.10%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/94 0.079492 47.654202 1079.071175 9.10%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/95 0.069138 47.585064 1238.869387 9.10%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/96 0.061485 47.523579 1391.278542 9.10%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/97 1.336907 46.186672 1546.132666 9.10%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 11.41%
- ---------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 11.41%
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Diversifier II - 5 YR - Tbl 1A
Table 1A - Diversifier II Variable/Fixed Annuity Contracts
(assuming no purchase payments made after first contract year)
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- -------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- -------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- -------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- -------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- -------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/92 9.668718 1000.000000 103.426328
- -------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/93 10.181385 1053.023265 103.426328
- -------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/94 10.039372 1038.079009 103.400791
- -------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/95 10.999577 1137.080098 103.374893
- -------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/96 11.329532 1170.921362 103.351256
- -------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/97 11.943129 1234.063301 103.328307
- -------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311
- -------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311
- -------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849
- -------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254
- -------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/92 15.087944 1000.000000 66.278083
- -------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/93 16.638507 1102.768343 66.278083
- -------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/94 15.562412 1030.118668 66.192738
- -------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/95 18.466059 1220.634070 66.101493
- -------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/96 18.990158 1253.817494 66.024595
- -------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/97 20.260333 1336.165306 65.949820
- -------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820
- -------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820
- -------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834
- -------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/92 17.080465 1000.000000 58.546415
- -------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/93 18.062234 1057.479056 58.546415
- -------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/94 18.360853 1070.550376 58.306135
- -------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/95 24.930081 1447.683886 58.069763
- -------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/96 30.819233 1784.300321 57.895676
- -------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/97 38.038246 2196.893367 57.754855
- --------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 11.41%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 11.41%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 11.41%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/97 2.814530 94.514992 1716.773425 11.41%
- -----------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/92 0.000000 103.426328 1000.000000 3.72%
- -----------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/93 0.025537 103.400791 1052.763265 3.72%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/94 0.025898 103.374893 1037.819009 3.72%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/95 0.023637 103.351256 1136.820098 3.72%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/96 0.022949 103.328307 1170.661362 3.72%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/97 2.811634 100.516673 1200.483592 3.72%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/94 0.000000 181.735311 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/95 0.017462 181.717849 1352.861763 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/96 0.013594 181.704254 1737.608350 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/97 4.916489 176.787765 2194.136996 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/92 0.000000 66.278083 1000.000000 5.36%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/93 0.085344 66.192738 1101.348343 5.36%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/94 0.091245 66.101493 1028.698668 5.36%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/95 0.076898 66.024595 1219.214070 5.36%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/96 0.074776 65.949820 1252.397494 5.36%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/97 1.850733 64.099087 1298.668843 5.36%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/95 0.000000 89.511820 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/96 0.052985 89.458834 1181.864458 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/97 2.458999 86.999836 1396.453152 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/92 0.000000 58.546415 1000.000000 16.35%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/93 0.240280 58.306135 1053.139056 16.35%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/94 0.236372 58.069763 1066.210376 16.35%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/95 0.174087 57.895676 1443.343886 16.35%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/96 0.140821 57.754855 1779.960321 16.35%
- -----------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/97 1.673477 56.081378 2133.237246 16.35%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1b - Diversifier II Variable/Fixed Annuity Contracts (assuming purchase
payments made after first contract year)
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b div2 BALFND q 12/31/92 10.183039 1000.000000 98.202511
- -----------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/93 10.705679 1051.324560 98.202511
- -----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/94 10.217587 1002.457380 98.110971
- -----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/95 12.489026 1224.112605 98.015058
- -----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/96 13.181800 1290.980528 97.936589
- -----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 15.550604 1521.817003 97.862244
- -----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/92 10.296825 1000.000000 97.117315
- -----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/93 11.124183 1080.350788 97.117315
- -----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/94 10.857486 1052.546641 96.942022
- -----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/95 14.058113 1360.297062 96.762422
- -----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/96 13.282214 1283.376820 96.623712
- -----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 12.689870 1224.279308 96.476899
- -----------------------------------------------------------------------------------------------------
1b DIV3 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- -----------------------------------------------------------------------------------------------------
1b DIV4 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- -----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/92 8.695786 1000.000000 114.998230
- -----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/93 10.411214 1197.271184 114.998230
- -----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/94 9.655628 1110.064806 114.965573
- -----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/95 11.153657 1281.893819 114.930360
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/96 12.622550 1450.329445 114.899877
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 15.040064 1727.696388 114.872941
- -----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/92 7.279096 1000.000000 137.379697
- -----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/93 8.503809 1168.250700 137.379697
- -----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/94 8.991578 1233.579057 137.192722
- -----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/95 11.921222 1633.396835 137.015889
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/96 13.453420 1841.537949 136.882514
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 17.020857 2327.846074 136.764328
- -----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/92 7.941793 1000.000000 125.916150
- -----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/93 9.362411 1178.878749 125.916150
- -----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/94 9.244314 1162.023784 125.701462
- -----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/95 12.359885 1550.968192 125.484031
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/96 13.999957 1754.494324 125.321408
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/97 17.072612 2137.112628 125.177836
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171
- -----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094
- -----------------------------------------------------------------------------------------------------
1b DIV3 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056
- -----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/92 30.179495 1000.000000 33.135081
- -----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/93 34.512855 1143.586233 33.135081
- -----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/94 35.495155 1169.542382 32.949353
- -----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/95 42.867835 1404.725998 32.768765
- -----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/96 49.261868 1606.884465 32.619235
- -----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 56.265009 1828.000315 32.489114
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/92 25.692327 1000.000000 38.922126
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/93 28.528477 1110.388989 38.922126
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/94 25.886803 1004.402586 38.799793
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/95 32.329694 1250.026804 38.664975
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/96 38.234636 1474.213797 38.557025
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 47.858840 1840.925984 38.465746
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/92 25.905809 1000.000000 38.601381
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/93 28.765516 1110.388639 38.601381
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b div2 BALFND q 12/31/92 0.000000 98.202511 1000.000000 8.05%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/93 0.091540 98.110971 1050.344560 8.05%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/94 0.095913 98.015058 1001.477380 8.05%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/95 0.078469 97.936589 1223.132605 8.05%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/96 0.074345 97.862244 1290.000528 8.05%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 3.145681 94.716563 1472.899767 8.05%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/92 0.000000 97.117315 1000.000000 3.43%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/93 0.175294 96.942022 1078.400788 3.43%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/94 0.179600 96.762422 1050.596641 3.43%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/95 0.138710 96.623712 1358.347062 3.43%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/96 0.146813 96.476899 1281.426820 3.43%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 3.192688 93.284211 1183.764510 3.43%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV3 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV4 EMGMKT Q 12/31/97 3.484785 106.895705 959.343309 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/92 0.000000 114.998230 1000.000000 10.83%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/93 0.032657 114.965573 1196.931184 10.83%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/94 0.035213 114.930360 1109.724806 10.83%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/95 0.030483 114.899877 1281.553819 10.83%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/96 0.026936 114.872941 1449.989445 10.83%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 3.641104 111.231837 1672.933952 10.83%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/92 0.000000 137.379697 1000.000000 17.63%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/93 0.186975 137.192722 1166.660700 17.63%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/94 0.176832 137.015889 1231.989057 17.63%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/95 0.133376 136.882514 1631.806835 17.63%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/96 0.118186 136.764328 1839.947949 17.63%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 4.401491 132.362837 2252.928923 17.63%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/92 0.000000 125.916150 1000.000000 15.63%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/93 0.214688 125.701462 1176.868749 15.63%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/94 0.217431 125.484031 1160.013784 15.63%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/95 0.162623 125.321408 1548.958192 15.63%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/96 0.143572 125.177836 1752.484324 15.63%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/97 4.060834 121.117002 2067.783580 15.63%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/92 0.000000 194.714665 1000.000000 18.04%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/93 0.023267 194.691398 1087.800222 18.04%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/94 0.023227 194.668171 1089.543737 18.04%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/95 0.017077 194.651094 1481.786903 18.04%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/96 0.014038 194.637056 1802.474607 18.04%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV3 FIDIND Q 12/31/97 6.141756 188.495300 2292.558067 18.04%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/92 0.000000 33.135081 1000.000000 12.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/93 0.185728 32.949353 1137.176233 12.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/94 0.180588 32.768765 1163.132382 12.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/95 0.149529 32.619235 1398.315998 12.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/96 0.130121 32.489114 1600.474465 12.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 1.137332 31.351782 1764.008305 12.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/92 0.000000 38.922126 1000.000000 12.21%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/93 0.122334 38.799793 1106.898989 12.21%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/94 0.134818 38.664975 1000.912586 12.21%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/95 0.107950 38.557025 1246.536804 12.21%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/96 0.091278 38.465746 1470.723797 12.21%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 1.284594 37.181152 1779.446816 12.21%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/92 0.000000 38.601381 1000.000000 12.21%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/93 0.121326 38.480055 1106.898639 12.21%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Table 1b - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - 5 YR - Tbl 1B
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 GROWEQ Q 12/31/94 26.101888 1004.402087 38.480055
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/95 32.598304 1250.025917 38.346348
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/96 38.552321 1474.213285 38.239287
- -----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 48.256483 1840.925043 38.148761
- -----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/92 20.917682 1000.000000 47.806444
- -----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/93 24.742238 1182.838423 47.806444
- -----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/94 22.643778 1080.871175 47.733694
- -----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/95 26.034837 1240.669387 47.654202
- -----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/96 29.275542 1393.078542 47.585064
- -----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 33.475732 1590.886604 47.523579
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/92 9.668718 1000.000000 103.426328
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/93 10.181385 1053.023265 103.426328
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/94 10.039372 1038.079009 103.400791
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/95 10.999577 1137.080098 103.374893
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/96 11.329532 1170.921362 103.351256
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 11.943129 1234.063301 103.328307
- -----------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311
- -----------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311
- -----------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849
- -----------------------------------------------------------------------------------------------------
1b DIV3 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/92 15.087944 1000.000000 66.278083
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/93 16.638507 1102.768343 66.278083
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/94 15.562412 1030.118668 66.192738
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/95 18.466059 1220.634070 66.101493
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/96 18.990158 1253.817494 66.024595
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 20.260333 1336.165306 65.949820
- -----------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820
- -----------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820
- -----------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/92 17.080465 1000.000000 58.546415
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/93 18.062234 1057.479056 58.546415
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/94 18.360853 1070.550376 58.306135
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/95 24.930081 1447.683886 58.069763
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/96 30.819233 1784.300321 57.895676
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 38.038246 2196.893367 57.754855
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 GROWEQ Q 12/31/94 0.133707 38.346348 1000.912087 12.21%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/95 0.107061 38.239287 1246.535917 12.21%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/96 0.090526 38.148761 1470.723285 12.21%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 1.274008 36.874753 1779.445904 12.21%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/92 0.000000 47.806444 1000.000000 9.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/93 0.072750 47.733694 1181.038423 9.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/94 0.079492 47.654202 1079.071175 9.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/95 0.069138 47.585064 1238.869387 9.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/96 0.061485 47.523579 1391.278542 9.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 1.550763 45.972816 1538.973676 9.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 11.30%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 11.30%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 11.30%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 11.30%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 11.30%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 3.252512 94.077009 1708.817891 11.30%
- --------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/92 0.000000 103.426328 1000.000000 3.62%
- --------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/93 0.025537 103.400791 1052.763265 3.62%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/94 0.025898 103.374893 1037.819009 3.62%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/95 0.023637 103.351256 1136.820098 3.62%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/96 0.022949 103.328307 1170.661362 3.62%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 3.276612 100.051696 1194.930307 3.62%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/94 0.000000 181.735311 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/95 0.017462 181.717849 1352.861763 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/96 0.013594 181.704254 1737.608350 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV3 PARTNR Q 12/31/97 5.734158 175.970096 2183.988793 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/92 0.000000 66.278083 1000.000000 5.27%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/93 0.085344 66.192738 1101.348343 5.27%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/94 0.091245 66.101493 1028.698668 5.27%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/95 0.076898 66.024595 1219.214070 5.27%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/96 0.074776 65.949820 1252.397494 5.27%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 2.147507 63.802313 1292.656099 5.27%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/95 0.000000 89.511820 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 0.052985 89.458834 1181.864458 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/97 2.861564 86.597271 1389.991498 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/92 0.000000 58.546415 1000.000000 16.24%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/93 0.240280 58.306135 1053.139056 16.24%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/94 0.236372 58.069763 1066.210376 16.24%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/95 0.174087 57.895676 1443.343886 16.24%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/96 0.140821 57.754855 1779.960321 16.24%
- --------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 1.933374 55.821481 2123.351226 16.24%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - 5 YR - Tbl 1C
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c div2 BALFND q 12/31/92 10.183039 1000.000000 98.202511
- ------------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/93 10.705679 1051.324560 98.202511
- ------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/94 10.217587 1002.457380 98.110971
- ------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/95 12.489026 1224.112605 98.015058
- ------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/96 13.181800 1290.980528 97.936589
- ------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 15.550604 1521.817003 97.862244
- ------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/92 10.296825 1000.000000 97.117315
- ------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/93 11.124183 1080.350788 97.117315
- ------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/94 10.857486 1052.546641 96.942022
- ------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/95 14.058113 1360.297062 96.762422
- ------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/96 13.282214 1283.376820 96.623712
- ------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 12.689870 1224.279308 96.476899
- ------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- ------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- ------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/92 8.695786 1000.000000 114.998230
- ------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/93 10.411214 1197.271184 114.998230
- ------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/94 9.655628 1110.064806 114.965573
- ------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/95 11.153657 1281.893819 114.930360
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/96 12.622550 1450.329445 114.899877
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 15.040064 1727.696388 114.872941
- ------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/92 7.279096 1000.000000 137.379697
- ------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/93 8.503809 1168.250700 137.379697
- ------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/94 8.991578 1233.579057 137.192722
- ------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/95 11.921222 1633.396835 137.015889
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/96 13.453420 1841.537949 136.882514
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 17.020857 2327.846074 136.764328
- ------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/92 7.941793 1000.000000 125.916150
- ------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/93 9.362411 1178.878749 125.916150
- ------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/94 9.244314 1162.023784 125.701462
- ------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/95 12.359885 1550.968192 125.484031
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/96 13.999957 1754.494324 125.321408
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/97 17.072612 2137.112628 125.177836
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/92 30.179495 1000.000000 33.135081
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/93 34.512855 1143.586233 33.135081
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/94 35.495155 1169.542382 32.949353
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/95 42.867835 1404.725998 32.768765
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/96 49.261868 1606.884465 32.619235
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 56.265009 1828.000315 32.489114
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/92 25.692327 1000.000000 38.922126
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/93 28.528477 1110.388989 38.922126
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/94 25.886803 1004.402586 38.799793
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/95 32.329694 1250.026804 38.664975
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/96 38.234636 1474.213797 38.557025
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 47.858840 1840.925984 38.465746
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/92 25.905809 1000.000000 38.601381
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/93 28.765516 1110.388639 38.601381
- ------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c div2 BALFND q 12/31/92 0.000000 98.202511 1000.000000 8.02%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/93 0.091540 98.110971 1050.344560 8.02%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/94 0.095913 98.015058 1001.477380 8.02%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/95 0.078469 97.936589 1223.132605 8.02%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/96 0.074345 97.862244 1290.000528 8.02%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 3.278329 94.583915 1470.837003 8.02%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/92 0.000000 97.117315 1000.000000 3.23%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/93 0.175294 96.942022 1078.400788 3.23%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/94 0.179600 96.762422 1050.596641 3.23%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/95 0.138710 96.623712 1358.347062 3.23%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/96 0.146813 96.476899 1281.426820 3.23%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 4.093817 92.383083 1172.329308 3.23%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 4.969695 105.410796 946.016880 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/92 0.000000 114.998230 1000.000000 10.89%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/93 0.032657 114.965573 1196.931184 10.89%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/94 0.035213 114.930360 1109.724806 10.89%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/95 0.030483 114.899877 1281.553819 10.89%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/96 0.026936 114.872941 1449.989445 10.89%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 3.347060 111.525881 1677.356388 10.89%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/92 0.000000 137.379697 1000.000000 17.87%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/93 0.186975 137.192722 1166.660700 17.87%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/94 0.176832 137.015889 1231.989057 17.87%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/95 0.133376 136.882514 1631.806835 17.87%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/96 0.118186 136.764328 1839.947949 17.87%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 3.030987 133.733341 2276.256074 17.87%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/92 0.000000 125.916150 1000.000000 15.82%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/93 0.214688 125.701462 1176.868749 15.82%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/94 0.217431 125.484031 1160.013784 15.82%
- -------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/95 0.162623 125.321408 1548.958192 15.82%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/96 0.143572 125.177836 1752.484324 15.82%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/97 3.046400 122.131436 2085.102628 15.82%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/92 0.000000 194.714665 1000.000000 18.29%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/93 0.023267 194.691398 1087.800222 18.29%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/94 0.023227 194.668171 1089.543737 18.29%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/95 0.017077 194.651094 1481.786903 18.29%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/96 0.014038 194.637056 1802.474607 18.29%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 4.121714 190.515342 2317.126651 18.29%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/92 0.000000 33.135081 1000.000000 12.11%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/93 0.185728 32.949353 1137.176233 12.11%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/94 0.180588 32.768765 1163.132382 12.11%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/95 0.149529 32.619235 1398.315998 12.11%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/96 0.130121 32.489114 1600.474465 12.11%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 1.002577 31.486537 1771.590315 12.11%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/92 0.000000 38.922126 1000.000000 12.31%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/93 0.122334 38.799793 1106.898989 12.31%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/94 0.134818 38.664975 1000.912586 12.31%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/95 0.107950 38.557025 1246.536804 12.31%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/96 0.091278 38.465746 1470.723797 12.31%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 1.117662 37.348084 1787.435984 12.31%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/92 0.000000 38.601381 1000.000000 12.31%
- -------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/93 0.121326 38.480055 1106.898639 12.31%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - 5 YR - Tbl 1C
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 GROWEQ Q 12/31/94 26.101888 1004.402087 38.480055
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/95 32.598304 1250.025917 38.346348
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/96 38.552321 1474.213285 38.239287
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 48.256483 1840.925043 38.148761
- -----------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/92 20.917682 1000.000000 47.806444
- -----------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/93 24.742238 1182.838423 47.806444
- -----------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/94 22.643778 1080.871175 47.733694
- -----------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/95 26.034837 1240.669387 47.654202
- -----------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/96 29.275542 1393.078542 47.585064
- -----------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 33.475732 1590.886604 47.523579
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/92 9.668718 1000.000000 103.426328
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/93 10.181385 1053.023265 103.426328
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/94 10.039372 1038.079009 103.400791
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/95 10.999577 1137.080098 103.374893
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/96 11.329532 1170.921362 103.351256
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 11.943129 1234.063301 103.328307
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/92 15.087944 1000.000000 66.278083
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/93 16.638507 1102.768343 66.278083
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/94 15.562412 1030.118668 66.192738
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/95 18.466059 1220.634070 66.101493
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/96 18.990158 1253.817494 66.024595
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 20.260333 1336.165306 65.949820
- -----------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820
- -----------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820
- -----------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/92 17.080465 1000.000000 58.546415
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/93 18.062234 1057.479056 58.546415
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/94 18.360853 1070.550376 58.306135
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/95 24.930081 1447.683886 58.069763
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/96 30.819233 1784.300321 57.895676
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/97 38.038246 2196.893367 57.754855
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 GROWEQ Q 12/31/94 0.133707 38.346348 1000.912087 12.31%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/95 0.107061 38.239287 1246.535917 12.31%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/96 0.090526 38.148761 1470.723285 12.31%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 1.108452 37.040309 1787.435043 12.31%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/92 0.000000 47.806444 1000.000000 9.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/93 0.072750 47.733694 1181.038423 9.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/94 0.079492 47.654202 1079.071175 9.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/95 0.069138 47.585064 1238.869387 9.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/96 0.061485 47.523579 1391.278542 9.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 1.547390 45.976190 1539.086604 9.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 11.38%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 11.38%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 11.38%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 11.38%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 11.38%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 2.939325 94.390196 1714.506635 11.38%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/92 0.000000 103.426328 1000.000000 3.43%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/93 0.025537 103.400791 1052.763265 3.43%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/94 0.025898 103.374893 1037.819009 3.43%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/95 0.023637 103.351256 1136.820098 3.43%
- ------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/96 0.022949 103.328307 1170.661362 3.43%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 4.208277 99.120030 1183.803301 3.43%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/94 0.000000 181.735311 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/95 0.017462 181.717849 1352.861763 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/96 0.013594 181.704254 1737.608350 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 4.039115 177.665140 2205.026214 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/92 0.000000 66.278083 1000.000000 5.14%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/93 0.085344 66.192738 1101.348343 5.14%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/94 0.091245 66.101493 1028.698668 5.14%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/95 0.076898 66.024595 1219.214070 5.14%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/96 0.074776 65.949820 1252.397494 5.14%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 2.537964 63.411855 1284.745306 5.14%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/95 0.000000 89.511820 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/96 0.052985 89.458834 1181.864458 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 3.158639 86.300195 1385.223075 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/92 0.000000 58.546415 1000.000000 16.45%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/93 0.240280 58.306135 1053.139056 16.45%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/94 0.236372 58.069763 1066.210376 16.45%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/95 0.174087 57.895676 1443.343886 16.45%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/96 0.140821 57.754855 1779.960321 16.45%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/97 1.428562 56.326292 2142.553367 16.45%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1D - Penn Mutual Optimizer Group Variable Annuity Contract
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- --------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1d DIV2 FLEXMN Q 12/31/92 30.179495 1000.000000 33.135081
- --------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/93 34.512855 1143.586233 33.135081
- --------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/94 35.495155 1169.542382 32.949353
- --------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/95 42.867835 1404.725998 32.768765
- --------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/96 49.261868 1606.884465 32.619235
- --------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 56.265009 1828.000315 32.489114
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/92 25.692327 1000.000000 38.922126
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/93 28.528477 1110.388989 38.922126
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/94 25.886803 1004.402586 38.799793
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/95 32.329694 1250.026804 38.664975
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/96 38.234636 1474.213797 38.557025
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 47.858840 1840.925984 38.465746
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/92 25.905809 1000.000000 38.601381
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/93 28.765516 1110.388639 38.601381
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/94 26.101888 1004.402087 38.480055
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/95 32.598304 1250.025917 38.346348
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/96 38.552321 1474.213285 38.239287
- --------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 48.256483 1840.925043 38.148761
- --------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/92 20.917682 1000.000000 47.806444
- --------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/93 24.742238 1182.838423 47.806444
- --------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/94 22.643778 1080.871175 47.733694
- --------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/95 26.034837 1240.669387 47.654202
- --------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/96 29.275542 1393.078542 47.585064
- --------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 33.475732 1590.886604 47.523579
- --------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- --------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- --------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- --------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- --------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- --------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- --------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/92 15.087944 1000.000000 66.278083
- --------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/93 16.638507 1102.768343 66.278083
- --------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/94 15.562412 1030.118668 66.192738
- --------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/95 18.466059 1220.634070 66.101493
- --------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/96 18.990158 1253.817494 66.024595
- --------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 20.260333 1336.165306 65.949820
- --------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/92 17.080465 1000.000000 58.546415
- --------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/93 18.062234 1057.479056 58.546415
- --------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/94 18.360853 1070.550376 58.306135
- --------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/95 24.930081 1447.683886 58.069763
- --------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/96 30.819233 1784.300321 57.895676
- --------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 38.038246 2196.893367 57.754855
- --------------------------------------------------------------------------------------------------
Table 1D - Penn Mutual Optimizer Group Variable Annuity Contract
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1d DIV2 FLEXMN Q 12/31/92 0.000000 33.135081 1000.000000 11.70%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/93 0.185728 32.949353 1137.176233 11.70%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/94 0.180588 32.768765 1163.132382 11.70%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/95 0.149529 32.619235 1398.315998 11.70%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/96 0.130121 32.489114 1600.474465 11.70%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 1.575935 30.913179 1739.330300 11.70%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/92 0.000000 38.922126 1000.000000 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/93 0.122334 38.799793 1106.898989 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/94 0.134818 38.664975 1000.912586 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/95 0.107950 38.557025 1246.536804 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/96 0.091278 38.465746 1470.723797 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 1.803881 36.661865 1754.594315 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/92 0.000000 38.601381 1000.000000 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/93 0.121326 38.480055 1106.898639 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/94 0.133707 38.346348 1000.912087 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/95 0.107061 38.239287 1246.535917 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/96 0.090526 38.148761 1470.723285 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 1.789016 36.359745 1754.593416 11.89%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/92 0.000000 47.806444 1000.000000 8.69%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/93 0.072750 47.733694 1181.038423 8.69%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/94 0.079492 47.654202 1079.071175 8.69%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/95 0.069138 47.585064 1238.869387 8.69%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/96 0.061485 47.523579 1391.278542 8.69%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 2.192331 45.331248 1517.496707 8.69%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 10.99%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 10.99%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 10.99%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 10.99%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 10.99%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 4.566461 92.763060 1684.951286 10.99%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/92 0.000000 66.278083 1000.000000 4.97%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/93 0.085344 66.192738 1101.348343 4.97%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/94 0.091245 66.101493 1028.698668 4.97%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/95 0.076898 66.024595 1219.214070 4.97%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/96 0.074776 65.949820 1252.397494 4.97%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 3.037830 62.911990 1274.617867 4.97%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/92 0.000000 58.546415 1000.000000 15.92%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/93 0.240280 58.306135 1053.139056 15.92%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/94 0.236372 58.069763 1066.210376 15.92%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/95 0.174087 57.895676 1443.343886 15.92%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/96 0.140821 57.754855 1779.960321 15.92%
- -----------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 2.713064 55.041790 2093.693166 15.92%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - 5 YR - Tbl 2
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 div2 BALFND q 12/31/92 10.183039 1000.000000 98.202511 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/93 10.705679 1051.324560 98.202511 0.091540
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/94 10.217587 1002.457380 98.110971 0.095913
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/95 12.489026 1224.112605 98.015058 0.078469
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/96 13.181800 1290.980528 97.936589 0.074345
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 15.550604 1521.817003 97.862244 0.063020
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP Q 12/31/92 10.296825 1000.000000 97.117315 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP Q 12/31/93 11.124183 1080.350788 97.117315 0.175294
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/94 10.857486 1052.546641 96.942022 0.179600
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/95 14.058113 1360.297062 96.762422 0.138710
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/96 13.282214 1283.376820 96.623712 0.146813
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 12.689870 1224.279308 96.476899 0.153666
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490 0.007800
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/92 8.695786 1000.000000 114.998230 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/93 10.411214 1197.271184 114.998230 0.032657
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/94 9.655628 1110.064806 114.965573 0.035213
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/95 11.153657 1281.893819 114.930360 0.030483
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/96 12.622550 1450.329445 114.899877 0.026936
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 15.040064 1727.696388 114.872941 0.022606
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/92 7.279096 1000.000000 137.379697 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/93 8.503809 1168.250700 137.379697 0.186975
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/94 8.991578 1233.579057 137.192722 0.176832
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/95 11.921222 1633.396835 137.015889 0.133376
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/96 13.453420 1841.537949 136.882514 0.118186
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 17.020857 2327.846074 136.764328 0.093415
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/92 7.941793 1000.000000 125.916150 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/93 9.362411 1178.878749 125.916150 0.214688
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/94 9.244314 1162.023784 125.701462 0.217431
- ---------------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/95 12.359885 1550.968192 125.484031 0.162623
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/96 13.999957 1754.494324 125.321408 0.143572
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/97 17.072612 2137.112628 125.177836 0.117732
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665 0.023267
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398 0.023227
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171 0.017077
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094 0.014038
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV3 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056 0.010689
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/92 30.179495 1000.000000 33.135081 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/93 34.512855 1143.586233 33.135081 0.185728
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/94 35.495155 1169.542382 32.949353 0.180588
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/95 42.867835 1404.725998 32.768765 0.149529
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/96 49.261868 1606.884465 32.619235 0.130121
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 56.265009 1828.000315 32.489114 0.113925
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/92 25.692327 1000.000000 38.922126 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/93 28.528477 1110.388989 38.922126 0.122334
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/94 25.886803 1004.402586 38.799793 0.134818
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/95 32.329694 1250.026804 38.664975 0.107950
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/96 38.234636 1474.213797 38.557025 0.091278
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 47.858840 1840.925984 38.465746 0.072923
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/92 25.905809 1000.000000 38.601381 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/93 28.765516 1110.388639 38.601381 0.121326
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return for
- ------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value 5yr
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 div2 BALFND q 12/31/92 98.202511 1000.000000 8.74%
- ------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/93 98.110971 1050.344560 8.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/94 98.015058 1001.477380 8.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/95 97.936589 1223.132605 8.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/96 97.862244 1290.000528 8.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 97.799224 1520.837003 8.74%
- ------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP Q 12/31/92 97.117315 1000.000000 4.09%
- ------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP Q 12/31/93 96.942022 1078.400788 4.09%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/94 96.762422 1050.596641 4.09%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/95 96.623712 1358.347062 4.09%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/96 96.476899 1281.426820 4.09%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 96.323233 1222.329308 4.09%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/96 110.380490 1000.000000 0.00%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 110.372691 990.547769 0.00%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/92 114.998230 1000.000000 11.55%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/93 114.965573 1196.931184 11.55%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/94 114.930360 1109.724806 11.55%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/95 114.899877 1281.553819 11.55%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/96 114.872941 1449.989445 11.55%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 114.850335 1727.356388 11.55%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/92 137.379697 1000.000000 18.38%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/93 137.192722 1166.660700 18.38%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/94 137.015889 1231.989057 18.38%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/95 136.882514 1631.806835 18.38%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/96 136.764328 1839.947949 18.38%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 136.670913 2326.256074 18.38%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/92 125.916150 1000.000000 16.37%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/93 125.701462 1176.868749 16.37%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/94 125.484031 1160.013784 16.37%
- ------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/95 125.321408 1548.958192 16.37%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/96 125.177836 1752.484324 16.37%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/97 125.060104 2135.102628 16.37%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/92 194.714665 1000.000000 18.80%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/93 194.691398 1087.800222 18.80%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/94 194.668171 1089.543737 18.80%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/95 194.651094 1481.786903 18.80%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/96 194.637056 1802.474607 18.80%
- ------------------------------------------------------------------------------------------------------------
3 DIV3 FIDIND Q 12/31/97 194.626367 2367.126651 18.80%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/92 33.135081 1000.000000 12.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/93 32.949353 1137.176233 12.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/94 32.768765 1163.132382 12.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/95 32.619235 1398.315998 12.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/96 32.489114 1600.474465 12.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 32.375189 1821.590315 12.74%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/92 38.922126 1000.000000 12.93%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/93 38.799793 1106.898989 12.93%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/94 38.664975 1000.912586 12.93%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/95 38.557025 1246.536804 12.93%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/96 38.465746 1470.723797 12.93%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 38.392823 1837.435984 12.93%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/92 38.601381 1000.000000 12.93%
- ------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/93 38.480055 1106.898639 12.93%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - 5 YR - Tbl 2
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ---------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 GROWEQ Q 12/31/94 26.101888 1004.402087 38.480055
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/95 32.598304 1250.025917 38.346348
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/96 38.552321 1474.213285 38.239287
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 48.256483 1840.925043 38.148761
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/92 20.917682 1000.000000 47.806444
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/93 24.742238 1182.838423 47.806444
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/94 22.643778 1080.871175 47.733694
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/95 26.034837 1240.669387 47.654202
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/96 29.275542 1393.078542 47.585064
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 33.475732 1590.886604 47.523579
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- ---------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/92 9.668718 1000.000000 103.426328
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/93 10.181385 1053.023265 103.426328
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/94 10.039372 1038.079009 103.400791
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/95 10.999577 1137.080098 103.374893
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/96 11.329532 1170.921362 103.351256
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 11.943129 1234.063301 103.328307
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849
- ---------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/92 15.087944 1000.000000 66.278083
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/93 16.638507 1102.768343 66.278083
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/94 15.562412 1030.118668 66.192738
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/95 18.466059 1220.634070 66.101493
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/96 18.990158 1253.817494 66.024595
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 20.260333 1336.165306 65.949820
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820
- ---------------------------------------------------------------------------------------------------------------
3 DIV3 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/92 17.080465 1000.000000 58.546415
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/93 18.062234 1057.479056 58.546415
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/94 18.360853 1070.550376 58.306135
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/95 24.930081 1447.683886 58.069763
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/96 30.819233 1784.300321 57.895676
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 38.038246 2196.893367 57.754855
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 GROWEQ Q 12/31/94 0.133707 38.346348 1000.912087 12.93%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/95 0.107061 38.239287 1246.535917 12.93%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/96 0.090526 38.148761 1470.723285 12.93%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 0.072322 38.076439 1837.435043 12.93%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/92 0.000000 47.806444 1000.000000 9.70%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/93 0.072750 47.733694 1181.038423 9.70%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/94 0.079492 47.654202 1079.071175 9.70%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/95 0.069138 47.585064 1238.869387 9.70%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/96 0.061485 47.523579 1391.278542 9.70%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 0.053770 47.469809 1589.086604 9.70%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 12.02%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 12.02%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 12.02%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 12.02%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 12.02%
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 0.186633 97.142889 1764.506635 12.02%
- --------------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/92 0.000000 103.426328 1000.000000 4.29%
- --------------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/93 0.025537 103.400791 1052.763265 4.29%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/94 0.025898 103.374893 1037.819009 4.29%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/95 0.023637 103.351256 1136.820098 4.29%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/96 0.022949 103.328307 1170.661362 4.29%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 0.021770 103.306537 1233.803301 4.29%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/94 0.000000 181.735311 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/95 0.017462 181.717849 1352.861763 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/96 0.013594 181.704254 1737.608350 0.00%
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 0.010474 181.693780 2255.026214 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/92 0.000000 66.278083 1000.000000 5.94%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/93 0.085344 66.192738 1101.348343 5.94%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/94 0.091245 66.101493 1028.698668 5.94%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/95 0.076898 66.024595 1219.214070 5.94%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/96 0.074776 65.949820 1252.397494 5.94%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 0.070088 65.879732 1334.745306 5.94%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/95 0.000000 89.511820 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/96 0.052985 89.458834 1181.864458 0.00%
- --------------------------------------------------------------------------------------------------------------------------
3 DIV3 SMLCAP Q 12/31/97 0.043610 89.415224 1435.223075 0.00%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/92 0.000000 58.546415 1000.000000 16.99%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/93 0.240280 58.306135 1053.139056 16.99%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/94 0.236372 58.069763 1066.210376 16.99%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/95 0.174087 57.895676 1443.343886 16.99%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/96 0.140821 57.754855 1779.960321 16.99%
- --------------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 0.114096 57.640759 2192.553367 16.99%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - 5 YR - Tbl 3
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 div2 BALFND q 12/31/92 10.183039 10000.000000 982.025111
- ------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/93 10.705679 10513.245604 982.025111
- ------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/94 10.217587 10032.991684 981.933570
- ------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/95 12.489026 12262.196030 981.837657
- ------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/96 13.181800 12941.353270 981.759188
- ------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 15.550604 15265.792254 981.684844
- ------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/92 10.296825 10000.000000 971.173153
- ------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/93 11.124183 10803.507877 971.173153
- ------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/94 10.857486 10542.595661 970.997859
- ------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/95 14.058113 13647.872795 970.818260
- ------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/96 13.282214 12892.773503 970.679550
- ------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 12.689870 12315.934260 970.532737
- ------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/96 9.059572 10000.000000 1103.804904
- ------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 8.974573 9906.177687 1103.804904
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/92 8.695786 10000.000000 1149.982302
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/93 10.411214 11972.711840 1149.982302
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/94 9.655628 11103.485988 1149.949645
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/95 11.153657 12825.751154 1149.914432
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/96 12.622550 14514.467638 1149.883949
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 15.040064 17293.923064 1149.857013
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/92 7.279096 10000.000000 1373.796966
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/93 8.503809 11682.507004 1373.796966
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/94 8.991578 12350.921375 1373.609991
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/95 11.921222 16373.001588 1373.433159
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/96 13.453420 18475.578770 1373.299783
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 17.020857 23372.727609 1373.181598
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/92 7.941793 10000.000000 1259.161502
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/93 9.362411 11788.787494 1259.161502
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/94 9.244314 11638.099652 1258.946813
- ------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/95 12.359885 15557.750413 1258.729382
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/96 13.999957 17619.880516 1258.566760
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/97 17.072612 21484.570816 1258.423188
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/92 5.135720 10000.000000 1947.146651
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/93 5.587305 10879.302221 1947.146651
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/94 5.596928 10897.909389 1947.123384
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/95 7.612528 14822.354466 1947.100157
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/96 9.260696 18031.344492 1947.083080
- ------------------------------------------------------------------------------------------------------------
4 DIV3 FIDIND Q 12/31/97 12.162415 23681.061726 1947.069042
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/92 30.179495 10000.000000 331.350806
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/93 34.512855 11435.862330 331.350806
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/94 35.495155 11754.755786 331.165078
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/95 42.867835 14188.588518 330.984490
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/96 49.261868 16297.548176 330.834961
- ------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/97 56.265009 18607.110800 330.704840
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/92 25.692327 10000.000000 389.221264
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/93 28.528477 11103.889889 389.221264
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/94 25.886803 10072.527361 389.098930
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/95 32.329694 12575.090742 388.964113
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/96 38.234636 14867.773828 388.856162
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 47.858840 18605.836379 388.764884
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/92 25.905809 10000.000000 386.013809
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/93 28.765516 11103.886391 386.013809
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/94 26.101888 10072.522368 385.892483
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/95 32.598304 12575.081854 385.758776
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/96 38.552321 14867.768723 385.651715
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 48.256483 18605.826961 385.561189
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 div2 BALFND q 12/31/92 0.000000 982.025111 10000.000000 8.82%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/93 0.091540 981.933570 10512.265604 8.82%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/94 0.095913 981.837657 10032.011684 8.82%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/95 0.078469 981.759188 12261.216030 8.82%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/96 0.074345 981.684844 12940.373270 8.82%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 0.063020 981.621823 15264.812254 8.82%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/92 0.000000 971.173153 10000.000000 4.25%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/93 0.175294 970.997859 10801.557877 4.25%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/94 0.179600 970.818260 10540.645661 4.25%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/95 0.138710 970.679550 13645.922795 4.25%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/96 0.146813 970.532737 12890.823503 4.25%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 0.153666 970.379071 12313.984260 4.25%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/96 0.000000 1103.804904 10000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 0.007800 1103.797104 9906.107687 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/92 0.000000 1149.982302 10000.000000 11.57%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/93 0.032657 1149.949645 11972.371840 11.57%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/94 0.035213 1149.914432 11103.145988 11.57%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/95 0.030483 1149.883949 12825.411154 11.57%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/96 0.026936 1149.857013 14514.127638 11.57%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 0.022606 1149.834407 17293.583064 11.57%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/92 0.000000 1373.796966 10000.000000 18.49%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/93 0.186975 1373.609991 11680.917004 18.49%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/94 0.176832 1373.433159 12349.331375 18.49%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/95 0.133376 1373.299783 16371.411588 18.49%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/96 0.118186 1373.181598 18473.988770 18.49%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 0.093415 1373.088183 23371.137609 18.49%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/92 0.000000 1259.161502 10000.000000 16.51%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/93 0.214688 1258.946813 11786.777494 16.51%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/94 0.217431 1258.729382 11636.089652 16.51%
- ---------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/95 0.162623 1258.566760 15555.740413 16.51%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/96 0.143572 1258.423188 17617.870516 16.51%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/97 0.117732 1258.305455 21482.560816 16.51%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/92 0.000000 1947.146651 10000.000000 18.81%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/93 0.023267 1947.123384 10879.172221 18.81%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/94 0.023227 1947.100157 10897.779389 18.81%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/95 0.017077 1947.083080 14822.224466 18.81%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/96 0.014038 1947.069042 18031.214492 18.81%
- ---------------------------------------------------------------------------------------------------------------------------
4 DIV3 FIDIND Q 12/31/97 0.010689 1947.058354 23680.931726 18.81%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/92 0.000000 331.350806 10000.000000 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/93 0.185728 331.165078 11429.452330 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/94 0.180588 330.984490 11748.345786 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/95 0.149529 330.834961 14182.178518 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/96 0.130121 330.704840 16291.138176 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/97 0.113925 330.590915 18600.700800 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/92 0.000000 389.221264 10000.000000 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/93 0.122334 389.098930 11100.399889 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/94 0.134818 388.964113 10069.037361 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/95 0.107950 388.856162 12571.600742 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/96 0.091278 388.764884 14864.283828 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 0.072923 388.691961 18602.346379 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/92 0.000000 386.013809 10000.000000 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/93 0.121326 385.892483 11100.396391 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/94 0.133707 385.758776 10069.032368 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/95 0.107061 385.651715 12571.591854 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/96 0.090526 385.561189 14864.278723 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 0.072322 385.488867 18602.336961 13.21%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - 5 YR - Tbl 3
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 HIBOND Q 12/31/92 20.917682 10000.000000 478.064443
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/93 24.742238 11828.384235 478.064443
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/94 22.643778 10823.537786 477.991693
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/95 26.034837 12442.366257 477.912201
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/96 29.275542 13989.114661 477.843063
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 33.475732 15994.088068 477.781578
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/92 10.175420 10000.000000 982.760417
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/93 13.880468 13641.174517 982.760417
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/94 12.843173 12618.625387 982.516189
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/95 14.435244 14179.050685 982.252235
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/96 16.658717 16359.149845 982.017393
- ------------------------------------------------------------------------------------------------------------
4 DIV2 INTLEQ Q 12/31/97 18.164033 17833.700012 981.813896
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/92 9.668718 10000.000000 1034.263281
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/93 10.181385 10530.232653 1034.263281
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/94 10.039372 10383.097449 1034.237744
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/95 10.999577 11375.892834 1034.211846
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/96 11.329532 11716.868405 1034.188209
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 11.943129 12351.169106 1034.165260
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/94 5.502508 10000.000000 1817.353105
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/95 7.444848 13529.917630 1817.353105
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/96 9.562838 17378.886350 1817.335643
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 12.411136 22555.031108 1817.322049
- ------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/92 15.087944 10000.000000 662.780827
- ------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/93 16.638507 11027.683427 662.780827
- ------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/94 15.562412 10313.140132 662.695483
- ------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/95 18.466059 12235.688937 662.604237
- ------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/96 18.990158 12581.498853 662.527339
- ------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 20.260333 13421.509538 662.452564
- ------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/95 11.171709 10000.000000 895.118195
- ------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/96 13.211266 11825.644581 895.118195
- ------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 16.051216 14366.885025 895.065210
- ------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/92 17.080465 10000.000000 585.464155
- ------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/93 18.062234 10574.790558 585.464155
- ------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/94 18.360853 10745.209526 585.223874
- ------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/95 24.930081 14583.785801 584.987502
- ------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 30.819233 18023.500893 584.813415
- ------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/97 38.038246 22239.919947 584.672594
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 5yr
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 HIBOND Q 12/31/92 0.000000 478.064443 10000.000000 9.84%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/93 0.072750 477.991693 11826.584235 9.84%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/94 0.079492 477.912201 10821.737786 9.84%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/95 0.069138 477.843063 12440.566257 9.84%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/96 0.061485 477.781578 13987.314661 9.84%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 0.053770 477.727808 15992.288068 9.84%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/92 0.000000 982.760417 10000.000000 12.25%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/93 0.244228 982.516189 13637.784517 12.25%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/94 0.263953 982.252235 12615.235387 12.25%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/95 0.234842 982.017393 14175.660685 12.25%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/96 0.203497 981.813896 16355.759845 12.25%
- -----------------------------------------------------------------------------------------------------------------------------
4 DIV2 INTLEQ Q 12/31/97 0.186633 981.627264 17830.310012 112.25%
- -----------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/92 0.000000 1034.263281 10000.000000 4.31%
- -----------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/93 0.025537 1034.237744 10529.972653 4.31%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/94 0.025898 1034.211846 10382.837449 4.31%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/95 0.023637 1034.188209 11375.632834 4.31%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/96 0.022949 1034.165260 11716.608405 4.31%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 0.021770 1034.143490 12350.909106 4.31%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/94 0.000000 1817.353105 10000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/95 0.017462 1817.335643 13529.787630 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/96 0.013594 1817.322049 17378.756350 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 0.010474 1817.311575 22554.901108 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/92 0.000000 662.780827 10000.000000 6.06%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/93 0.085344 662.695483 11026.263427 6.06%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/94 0.091245 662.604237 10311.720132 6.06%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/95 0.076898 662.527339 12234.268937 6.06%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/96 0.074776 662.452564 12580.078853 6.06%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 0.070088 662.382476 13420.089538 6.06%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/95 0.000000 895.118195 10000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/96 0.052985 895.065210 11824.944581 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 0.043610 895.021600 14366.185025 0.00%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/92 0.000000 585.464155 10000.000000 17.32%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/93 0.240280 585.223874 10570.450558 17.32%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/94 0.236372 584.987502 10740.869526 17.32%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/95 0.174087 584.813415 14579.445801 17.32%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 0.140821 584.672594 18019.160893 17.32%
- -----------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/97 0.114096 584.558498 22235.579947 17.32%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1A - Diversifier II Variable/Fixed Annuity Contracts
(assuming no purchase payments made after first contract year)
Diversifier II - 10 YR - Tbl 1A
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a div2 BALFND q 12/31/89 7.823012 1000.000000 127.828003
- ----------------------------------------------------------------------------------------------------
1a div2 BALFND q 12/31/90 7.876448 1006.830617 127.828003
- ----------------------------------------------------------------------------------------------------
1a div2 BALFND q 12/31/91 9.542707 1218.637859 127.703581
- ----------------------------------------------------------------------------------------------------
1a div2 BALFND q 12/31/92 10.183039 1299.364789 127.600885
- ----------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/93 10.705679 1365.023817 127.504647
- ----------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/94 10.217587 1301.854499 127.413106
- ----------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/95 12.489026 1590.067737 127.317193
- ----------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/96 13.181800 1677.235418 127.238724
- ----------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/97 15.550604 1977.482908 127.164379
- ----------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/87 6.304108 1000.000000 158.626724
- ----------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/88 6.081994 964.766784 158.626724
- ----------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/89 7.736741 1224.773337 158.306106
- ----------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/90 7.542668 1192.149311 158.054061
- ----------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/91 10.568393 1667.645198 157.795532
- ----------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/92 10.296825 1622.893088 157.611020
- ----------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/93 11.124183 1751.187142 157.421641
- ----------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/94 10.857486 1707.300013 157.246347
- ----------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/95 14.058113 2208.062087 157.066748
- ----------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/96 13.282214 2084.351779 156.928038
- ----------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/97 12.689870 1989.533361 156.781225
- ----------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- ----------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- ----------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/89 6.178927 1000.000000 161.840397
- ----------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/90 6.512261 1053.946907 161.840397
- ----------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/91 7.882231 1275.251871 161.788188
- ----------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/92 8.695786 1406.500367 161.745053
- ----------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/93 10.411214 1683.555288 161.705954
- ----------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/94 9.655628 1561.057209 161.673297
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/95 11.153657 1802.855746 161.638084
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/96 12.622550 2039.900019 161.607601
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/97 15.040064 2430.183538 161.580665
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/87 4.134969 1000.000000 241.839782
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/88 5.010861 1211.825530 241.839782
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/89 5.806942 1402.506980 241.522471
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/90 4.857970 1171.978756 241.248661
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/91 6.305979 1519.245059 240.921363
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/92 7.279096 1751.854370 240.669222
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/93 8.503809 2044.747576 240.450788
- ----------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/94 8.991578 2160.350816 240.263813
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/95 11.921222 2862.130199 240.086981
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/96 13.453420 3228.196633 239.953605
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/97 17.020857 4082.204383 239.835420
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/87 3.961179 1000.000000 252.450091
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/88 4.521386 1141.424308 252.450091
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/89 5.872409 1479.879585 252.005537
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/90 5.118909 1288.241320 251.663259
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/91 7.356310 1848.424405 251.270597
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/92 7.941793 1993.369093 250.997362
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/93 9.362411 2347.570917 250.744271
- ----------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/94 9.244314 2315.974125 250.529582
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/95 12.359885 3093.829405 250.312151
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/96 13.999957 3502.082643 250.149529
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/97 17.072612 4268.254695 250.005957
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094
- ----------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056
- ----------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 12/31/87 16.897963 1000.000000 59.178731
- ----------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 12/31/88 19.831828 1173.622406 59.178731
- ----------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 12/31/89 23.711872 1395.574386 58.855513
- ----------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/90 23.215292 1360.072155 58.585184
- ----------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/91 27.891899 1626.350774 58.309073
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a div2 BALFND q 12/31/89 0.000000 127.828003 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 12/31/90 0.124422 127.703581 1005.850617 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 12/31/91 0.102696 127.600885 1217.657859 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 12/31/92 0.096238 127.504647 1298.384789 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/93 0.091540 127.413106 1364.043817 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/94 0.095913 127.317193 1300.874499 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/95 0.078469 127.238724 1589.087737 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/96 0.074345 127.164379 1676.255418 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/97 0.063020 127.101359 1976.502908 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/87 0.000000 158.626724 1000.000000 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/88 0.320619 158.306106 962.816784 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/89 0.252044 158.054061 1222.823337 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/90 0.258529 157.795532 1190.199311 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/91 0.184512 157.611020 1665.695198 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 12/31/92 0.189379 157.421641 1620.943088 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/93 0.175294 157.246347 1749.237142 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/94 0.179600 157.066748 1705.350013 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/95 0.138710 156.928038 2206.112087 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/96 0.146813 156.781225 2082.401779 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/97 0.153666 156.627559 1987.583361 7.10%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/97 0.007800 110.372691 990.547769 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/89 0.000000 161.840397 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/90 0.052209 161.788188 1053.606907 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/91 0.043135 161.745053 1274.911871 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/92 0.039099 161.705954 1406.160367 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/93 0.032657 161.673297 1683.215288 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 12/31/94 0.035213 161.638084 1560.717209 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/95 0.030483 161.607601 1802.515746 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/96 0.026936 161.580665 2039.560019 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/97 0.022606 161.558058 2429.843538 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/87 0.000000 241.839782 1000.000000 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/88 0.317311 241.522471 1210.235530 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/89 0.273810 241.248661 1400.916980 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/90 0.327297 240.921363 1170.388756 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/91 0.252142 240.669222 1517.655059 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/92 0.218434 240.450788 1750.264370 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/93 0.186975 240.263813 2043.157576 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 12/31/94 0.176832 240.086981 2158.760816 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/95 0.133376 239.953605 2860.540199 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/96 0.118186 239.835420 3226.606633 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/97 0.093415 239.742005 4080.614383 15.09%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/87 0.000000 252.450091 1000.000000 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/88 0.444554 252.005537 1139.414308 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/89 0.342279 251.663259 1477.869585 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/90 0.392662 251.270597 1286.231320 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/91 0.273235 250.997362 1846.414405 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/92 0.253091 250.744271 1991.359093 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/93 0.214688 250.529582 2345.560917 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 12/31/94 0.217431 250.312151 2313.964125 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/95 0.162623 250.149529 3091.819405 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/96 0.143572 250.005957 3500.072643 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/97 0.117732 249.888224 4266.244695 15.60%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/92 0.000000 194.714665 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/93 0.023267 194.691398 1087.800222 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/94 0.023227 194.668171 1089.543737 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/95 0.017077 194.651094 1481.786903 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/96 0.014038 194.637056 1802.474607 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/97 0.010689 194.626367 2367.126651 0.00%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 12/31/87 0.000000 59.178731 1000.000000 12.37%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 12/31/88 0.323218 58.855513 1167.212406 12.37%
- ---------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 12/31/89 0.270329 58.585184 1389.164386 12.37%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/90 0.276111 58.309073 1353.662155 12.37%
- ---------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/91 0.229816 58.079257 1619.940774 12.37%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1A - Diversifier II Variable/Fixed Annuity Contracts
(assuming no purchase payments made after first contract year)
Diversifier II - 10 YR - Tbl 1A
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 FLEXMN Q 12/31/92 30.179495 1752.802650 58.079257
- ----------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/93 34.512855 1997.150592 57.866861
- ----------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/94 35.495155 2047.400769 57.681133
- ----------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/95 42.867835 2464.923890 57.500545
- ----------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/96 49.261868 2825.218179 57.351016
- ----------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/97 56.265009 3219.534175 57.220895
- ----------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/87 14.580816 1000.000000 68.583267
- ----------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/88 16.220777 1112.473883 68.583267
- ----------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/89 21.029096 1437.719571 68.368111
- ----------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/90 18.451506 1258.432390 68.202151
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/91 24.552354 1669.879402 68.013006
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/92 25.692327 1743.760351 67.870861
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/93 28.528477 1932.377035 67.735023
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/94 25.886803 1750.276353 67.612689
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/95 32.329694 2181.538921 67.477871
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/96 38.234636 2575.864395 67.369921
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/97 47.858840 3219.877773 67.278642
- ----------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/87 14.701955 1000.000000 68.018165
- ----------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/88 16.355551 1112.474565 68.018165
- ----------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/89 21.203830 1437.721065 67.804782
- ----------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/90 18.604812 1258.432997 67.640189
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/91 24.756361 1669.880989 67.452603
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/92 25.905809 1743.762206 67.311629
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/93 28.765516 1932.378487 67.176910
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/94 26.101888 1750.277354 67.055584
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/95 32.598304 2181.539711 66.921878
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/96 38.552321 2575.866266 66.814817
- ----------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/97 48.256483 3219.879590 66.724291
- ----------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/87 13.169271 1000.000000 75.934347
- ----------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/88 15.325368 1163.721819 75.934347
- ----------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/89 15.034710 1139.885032 75.816895
- ----------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/90 13.529719 1024.161469 75.697172
- ----------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/91 18.291494 1382.180862 75.564132
- ----------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/92 20.917682 1578.568044 75.465725
- ----------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/93 24.742238 1865.061828 75.379674
- ----------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/94 22.643778 1705.233261 75.306924
- ----------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/95 26.034837 1958.533920 75.227432
- ----------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/96 29.275542 2200.299777 75.158293
- ----------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/97 33.475732 2513.920642 75.096809
- ----------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- ----------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- ----------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- ----------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- ----------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- ----------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- ----------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/87 6.834911 1000.000000 146.307684
- ----------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/88 7.233508 1058.317804 146.307684
- ----------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/89 7.913260 1157.486312 146.271740
- ----------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/90 8.465525 1237.988929 146.238884
- ----------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/91 9.308744 1361.014437 146.208171
- ----------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/92 9.668718 1413.375523 146.180241
- ----------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/93 10.181385 1488.043523 146.153350
- ----------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/94 10.039372 1467.031474 146.127813
- ----------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/95 10.999577 1607.059263 146.101915
- ----------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/96 11.329532 1654.998521 146.078278
- ----------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/97 11.943129 1744.357632 146.055329
- ----------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311
- ----------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311
- ----------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849
- ----------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254
- ----------------------------------------------------------------------------------------------------
1a div2 QUALBD q 12/31/87 9.967727 1000.000000 100.323775
- ----------------------------------------------------------------------------------------------------
1a div2 QUALBD q 12/31/88 10.580357 1061.461354 100.323775
- ----------------------------------------------------------------------------------------------------
1a div2 QUALBD q 12/31/89 11.776055 1179.837815 100.189564
- ----------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/90 12.557920 1256.658249 100.068980
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 FLEXMN Q 12/31/92 0.212396 57.866861 1746.392650 12.37%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/93 0.185728 57.681133 1990.740592 12.37%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/94 0.180588 57.500545 2040.990769 12.37%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/95 0.149529 57.351016 2458.513890 12.37%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/96 0.130121 57.220895 2818.808179 12.37%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/97 0.113925 57.106970 3213.124175 12.37%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/87 0.000000 68.583267 1000.000000 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/88 0.215156 68.368111 1108.983883 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/89 0.165961 68.202151 1434.229571 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 12/31/90 0.189144 68.013006 1254.942390 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/91 0.142145 67.870861 1666.389402 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/92 0.135838 67.735023 1740.270351 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/93 0.122334 67.612689 1928.887035 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/94 0.134818 67.477871 1746.786353 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/95 0.107950 67.369921 2178.048921 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/96 0.091278 67.278642 2572.374395 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/97 0.072923 67.205719 3216.387773 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/87 0.000000 68.018165 1000.000000 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/88 0.213383 67.804782 1108.984565 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/89 0.164593 67.640189 1434.231065 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 12/31/90 0.187586 67.452603 1254.942997 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/91 0.140974 67.311629 1666.390989 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/92 0.134719 67.176910 1740.272206 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/93 0.121326 67.055584 1928.888487 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/94 0.133707 66.921878 1746.787354 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/95 0.107061 66.814817 2178.049711 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/96 0.090526 66.724291 2572.376266 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/97 0.072322 66.651969 3216.389590 12.38%
- -------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/87 0.000000 75.934347 1000.000000 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/88 0.117452 75.816895 1161.921819 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/89 0.119723 75.697172 1138.085032 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 12/31/90 0.133040 75.564132 1022.361469 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/91 0.098406 75.465725 1380.380862 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/92 0.086052 75.379674 1576.768044 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/93 0.072750 75.306924 1863.261828 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/94 0.079492 75.227432 1703.433261 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/95 0.069138 75.158293 1956.733920 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/96 0.061485 75.096809 2198.499777 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/97 0.053770 75.043038 2512.120642 9.64%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/97 0.186633 97.142889 1764.506635 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/87 0.000000 146.307684 1000.000000 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/88 0.035944 146.271740 1058.057804 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/89 0.032856 146.238884 1157.226312 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/90 0.030713 146.208171 1237.728929 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/91 0.027931 146.180241 1360.754437 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/92 0.026891 146.153350 1413.115523 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 12/31/93 0.025537 146.127813 1487.783523 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/94 0.025898 146.101915 1466.771474 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/95 0.023637 146.078278 1606.799263 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/96 0.022949 146.055329 1654.738521 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/97 0.021770 146.033559 1744.097632 5.72%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/94 0.000000 181.735311 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/95 0.017462 181.717849 1352.861763 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/96 0.013594 181.704254 1737.608350 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/97 0.010474 181.693780 2255.026214 0.00%
- -------------------------------------------------------------------------------------------------------------------
1a div2 QUALBD q 12/31/87 0.000000 100.323775 1000.000000 7.24%
- -------------------------------------------------------------------------------------------------------------------
1a div2 QUALBD q 12/31/88 0.134211 100.189564 1060.041354 7.24%
- -------------------------------------------------------------------------------------------------------------------
1a div2 QUALBD q 12/31/89 0.120584 100.068980 1178.417815 7.24%
- -------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/90 0.113076 99.955904 1255.238249 7.24%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1A - Diversifier II Variable/Fixed Annuity Contracts
(assuming no purchase payments made after first contract year)
Diversifier II - 10 YR - Tbl 1A
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- ----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 QUALBD Q 12/31/91 14.336464 1433.014222 99.955904
- ----------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/92 15.087944 1506.634653 99.856856
- ----------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/93 16.638507 1659.903068 99.762741
- ----------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/94 15.562412 1551.220719 99.677397
- ----------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/95 18.466059 1838.963749 99.586152
- ----------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/96 18.990158 1889.696450 99.509254
- ----------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/97 20.260333 2014.575638 99.434478
- ----------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820
- ----------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820
- ----------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834
- ----------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 12/31/87 9.225971 1000.000000 108.389675
- ----------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 12/31/88 11.801629 1279.174734 108.389675
- ----------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 12/31/89 13.157143 1421.259972 108.021929
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/90 11.939049 1285.740907 107.692071
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/91 15.057650 1616.115853 107.328557
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/92 17.080465 1828.298642 107.040332
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/93 18.062234 1928.798063 106.786240
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/94 18.360853 1956.274711 106.545960
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/95 24.930081 2650.306630 106.309588
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/96 30.819233 3271.014727 106.135501
- ----------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/97 38.038246 4031.851697 105.994680
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- ------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1a DIV2 QUALBD Q 12/31/91 0.099048 99.856856 1431.594222 7.24%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/92 0.094115 99.762741 1505.214653 7.24%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/93 0.085344 99.677397 1658.483068 7.24%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/94 0.091245 99.586152 1549.800719 7.24%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/95 0.076898 99.509254 1837.543749 7.24%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/96 0.074776 99.434478 1888.276450 7.24%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/97 0.070088 99.364390 2013.155638 7.24%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/95 0.000000 89.511820 1000.000000 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/96 0.052985 89.458834 1181.864458 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/97 0.043610 89.415224 1435.223075 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 12/31/87 0.000000 108.389675 1000.000000 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 12/31/88 0.367746 108.021929 1274.834734 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 12/31/89 0.329859 107.692071 1416.919972 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/90 0.363513 107.328557 1281.400907 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/91 0.288226 107.040332 1611.775853 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/92 0.254091 106.786240 1823.958642 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/93 0.240280 106.545960 1924.458063 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/94 0.236372 106.309588 1951.934711 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/95 0.174087 106.135501 2645.966630 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/96 0.140821 105.994680 3266.674727 14.94%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/97 0.114096 105.880584 4027.511697 14.94%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - 10 YR - Tbl 1b
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- ----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b div2 BALFND q 12/31/89 7.823012 1000.000000 127.828003
- ----------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/90 7.876448 1006.830617 127.828003
- ----------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/91 9.542707 1218.637859 127.703581
- ----------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/92 10.183039 1299.364789 127.600885
- ----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/93 10.705679 1365.023817 127.504647
- ----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/94 10.217587 1301.854499 127.413106
- ----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/95 12.489026 1590.067737 127.317193
- ----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/96 13.181800 1677.235418 127.238724
- ----------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 15.550604 1977.482908 127.164379
- ----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/87 6.304108 1000.000000 158.626724
- ----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/88 6.081994 964.766784 158.626724
- ----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/89 7.736741 1224.773337 158.306106
- ----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/90 7.542668 1192.149311 158.054061
- ----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/91 10.568393 1667.645198 157.795532
- ----------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/92 10.296825 1622.893088 157.611020
- ----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/93 11.124183 1751.187142 157.421641
- ----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/94 10.857486 1707.300013 157.246347
- ----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/95 14.058113 2208.062087 157.066748
- ----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/96 13.282214 2084.351779 156.928038
- ----------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 12.689870 1989.533361 156.781225
- ----------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- ----------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- ----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/89 6.178927 1000.000000 161.840397
- ----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/90 6.512261 1053.946907 161.840397
- ----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/91 7.882231 1275.251871 161.788188
- ----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/92 8.695786 1406.500367 161.745053
- ----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/93 10.411214 1683.555288 161.705954
- ----------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/94 9.655628 1561.057209 161.673297
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/95 11.153657 1802.855746 161.638084
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/96 12.622550 2039.900019 161.607601
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 15.040064 2430.183538 161.580665
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/87 4.134969 1000.000000 241.839782
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/88 5.010861 1211.825530 241.839782
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/89 5.806942 1402.506980 241.522471
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/90 4.857970 1171.978756 241.248661
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/91 6.305979 1519.245059 240.921363
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/92 7.279096 1751.854370 240.669222
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/93 8.503809 2044.747576 240.450788
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/94 8.991578 2160.350816 240.263813
- ----------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/95 11.921222 2862.130199 240.086981
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/96 13.453420 3228.196633 239.953605
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 17.020857 4082.204383 239.835420
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/87 3.961179 1000.000000 252.450091
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/88 4.521386 1141.424308 252.450091
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/89 5.872409 1479.879585 252.005537
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/90 5.118909 1288.241320 251.663259
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/91 7.356310 1848.424405 251.270597
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/92 7.941793 1993.369093 250.997362
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/93 9.362411 2347.570917 250.744271
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/94 9.244314 2315.974125 250.529582
- ----------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/95 12.359885 3093.829405 250.312151
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/96 13.999957 3502.082643 250.149529
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b div2 BALFND q 12/31/89 0.000000 127.828003 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/90 0.124422 127.703581 1005.850617 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/91 0.102696 127.600885 1217.657859 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 12/31/92 0.096238 127.504647 1298.384789 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/93 0.091540 127.413106 1364.043817 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/94 0.095913 127.317193 1300.874499 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/95 0.078469 127.238724 1589.087737 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/96 0.074345 127.164379 1676.255418 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 1.207499 125.956880 1958.705562 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/87 0.000000 158.626724 1000.000000 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/88 0.320619 158.306106 962.816784 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/89 0.252044 158.054061 1222.823337 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/90 0.258529 157.795532 1190.199311 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/91 0.184512 157.611020 1665.695198 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP Q 12/31/92 0.189379 157.421641 1620.943088 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/93 0.175294 157.246347 1749.237142 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/94 0.179600 157.066748 1705.350013 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/95 0.138710 156.928038 2206.112087 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/96 0.146813 156.781225 2082.401779 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 1.564697 155.216528 1969.677561 7.01%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/97 1.001224 109.379266 981.632209 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/89 0.000000 161.840397 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/90 0.052209 161.788188 1053.606907 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/91 0.043135 161.745053 1274.911871 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/92 0.039099 161.705954 1406.160367 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/93 0.032657 161.673297 1683.215288 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 12/31/94 0.035213 161.638084 1560.717209 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/95 0.030483 161.607601 1802.515746 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/96 0.026936 161.580665 2039.560019 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 1.476832 160.103832 2407.971886 0.00%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/87 0.000000 241.839782 1000.000000 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/88 0.317311 241.522471 1210.235530 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/89 0.273810 241.248661 1400.916980 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/90 0.327297 240.921363 1170.388756 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/91 0.252142 240.669222 1517.655059 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/92 0.218434 240.450788 1750.264370 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/93 0.186975 240.263813 2043.157576 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/94 0.176832 240.086981 2158.760816 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 12/31/95 0.133376 239.953605 2860.540199 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/96 0.118186 239.835420 3226.606633 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 2.251934 237.583486 4043.874544 14.98%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/87 0.000000 252.450091 1000.000000 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/88 0.444554 252.005537 1139.414308 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/89 0.342279 251.663259 1477.869585 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/90 0.392662 251.270597 1286.231320 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/91 0.273235 250.997362 1846.414405 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/92 0.253091 250.744271 1991.359093 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/93 0.214688 250.529582 2345.560917 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/94 0.217431 250.312151 2313.964125 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 12/31/95 0.162623 250.149529 3091.819405 15.49%
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/96 0.143572 250.005957 3500.072643 15.49%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - 10 YR - Tbl 1b
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- ----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 FIDGRO Q 12/31/97 17.072612 4268.254695 250.005957
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094
- ----------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056
- ----------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/87 16.897963 1000.000000 59.178731
- ----------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/88 19.831828 1173.622406 59.178731
- ----------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/89 23.711872 1395.574386 58.855513
- ----------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/90 23.215292 1360.072155 58.585184
- ----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/91 27.891899 1626.350774 58.309073
- ----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/92 30.179495 1752.802650 58.079257
- ----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/93 34.512855 1997.150592 57.866861
- ----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/94 35.495155 2047.400769 57.681133
- ----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/95 42.867835 2464.923890 57.500545
- ----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/96 49.261868 2825.218179 57.351016
- ----------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 56.265009 3219.534175 57.220895
- ----------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/87 14.580816 1000.000000 68.583267
- ----------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/88 16.220777 1112.473883 68.583267
- ----------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/89 21.029096 1437.719571 68.368111
- ----------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/90 18.451506 1258.432390 68.202151
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/91 24.552354 1669.879402 68.013006
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/92 25.692327 1743.760351 67.870861
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/93 28.528477 1932.377035 67.735023
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/94 25.886803 1750.276353 67.612689
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/95 32.329694 2181.538921 67.477871
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/96 38.234636 2575.864395 67.369921
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 47.858840 3219.877773 67.278642
- ----------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/87 14.701955 1000.000000 68.018165
- ----------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/88 16.355551 1112.474565 68.018165
- ----------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/89 21.203830 1437.721065 67.804782
- ----------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/90 18.604812 1258.432997 67.640189
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/91 24.756361 1669.880989 67.452603
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/92 25.905809 1743.762206 67.311629
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/93 28.765516 1932.378487 67.176910
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/94 26.101888 1750.277354 67.055584
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/95 32.598304 2181.539711 66.921878
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/96 38.552321 2575.866266 66.814817
- ----------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 48.256483 3219.879590 66.724291
- ----------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/87 13.169271 1000.000000 75.934347
- ----------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/88 15.325368 1163.721819 75.934347
- ----------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/89 15.034710 1139.885032 75.816895
- ----------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/90 13.529719 1024.161469 75.697172
- ----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/91 18.291494 1382.180862 75.564132
- ----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/92 20.917682 1578.568044 75.465725
- ----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/93 24.742238 1865.061828 75.379674
- ----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/94 22.643778 1705.233261 75.306924
- ----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/95 26.034837 1958.533920 75.227432
- ----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/96 29.275542 2200.299777 75.158293
- ----------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 33.475732 2513.920642 75.096809
- ----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- ------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 FIDGRO Q 12/31/97 2.367786 247.638171 4227.830403 15.49%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/92 0.000000 194.714665 1000.000000 0.00%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/93 0.023267 194.691398 1087.800222 0.00%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/94 0.023227 194.668171 1089.543737 0.00%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/95 0.017077 194.651094 1481.786903 0.00%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/96 0.014038 194.637056 1802.474607 0.00%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/97 1.762422 192.874634 2345.821341 0.00%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/87 0.000000 59.178731 1000.000000 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/88 0.323218 58.855513 1167.212406 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/89 0.270329 58.585184 1389.164386 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 12/31/90 0.276111 58.309073 1353.662155 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/91 0.229816 58.079257 1619.940774 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/92 0.212396 57.866861 1746.392650 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/93 0.185728 57.681133 1990.740592 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/94 0.180588 57.500545 2040.990769 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/95 0.149529 57.351016 2458.513890 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/96 0.130121 57.220895 2818.808179 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 0.628913 56.591982 3184.148367 12.27%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/87 0.000000 68.583267 1000.000000 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/88 0.215156 68.368111 1108.983883 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/89 0.165961 68.202151 1434.229571 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 12/31/90 0.189144 68.013006 1254.942390 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/91 0.142145 67.870861 1666.389402 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/92 0.135838 67.735023 1740.270351 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/93 0.122334 67.612689 1928.887035 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/94 0.134818 67.477871 1746.786353 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/95 0.107950 67.369921 2178.048921 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/96 0.091278 67.278642 2572.374395 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 0.678431 66.600212 3187.408873 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/87 0.000000 68.018165 1000.000000 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/88 0.213383 67.804782 1108.984565 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/89 0.164593 67.640189 1434.231065 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 12/31/90 0.187586 67.452603 1254.942997 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/91 0.140974 67.311629 1666.390989 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/92 0.134719 67.176910 1740.272206 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/93 0.121326 67.055584 1928.888487 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/94 0.133707 66.921878 1746.787354 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/95 0.107061 66.814817 2178.049711 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/96 0.090526 66.724291 2572.376266 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 0.672841 66.051450 3187.410674 12.28%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/87 0.000000 75.934347 1000.000000 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/88 0.117452 75.816895 1161.921819 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/89 0.119723 75.697172 1138.085032 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 12/31/90 0.133040 75.564132 1022.361469 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/91 0.098406 75.465725 1380.380862 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/92 0.086052 75.379674 1576.768044 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/93 0.072750 75.306924 1863.261828 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/94 0.079492 75.227432 1703.433261 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/95 0.069138 75.158293 1956.733920 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/96 0.061485 75.096809 2198.499777 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 0.729642 74.367167 2489.495357 9.54%
- ------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 0.00%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - 10 YR - Tbl 1b
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- -----------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/87 6.834911 1000.000000 146.307684
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/88 7.233508 1058.317804 146.307684
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/89 7.913260 1157.486312 146.271740
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/90 8.465525 1237.988929 146.238884
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/91 9.308744 1361.014437 146.208171
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/92 9.668718 1413.375523 146.180241
- -----------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/93 10.181385 1488.043523 146.153350
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/94 10.039372 1467.031474 146.127813
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/95 10.999577 1607.059263 146.101915
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/96 11.329532 1654.998521 146.078278
- -----------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 11.943129 1744.357632 146.055329
- -----------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311
- -----------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311
- -----------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849
- -----------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254
- -----------------------------------------------------------------------------------------------------
1b div2 QUALBD q 12/31/87 9.967727 1000.000000 100.323775
- -----------------------------------------------------------------------------------------------------
1b div2 QUALBD q 12/31/88 10.580357 1061.461354 100.323775
- -----------------------------------------------------------------------------------------------------
1b div2 QUALBD q 12/31/89 11.776055 1179.837815 100.189564
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/90 12.557920 1256.658249 100.068980
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/91 14.336464 1433.014222 99.955904
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/92 15.087944 1506.634653 99.856856
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/93 16.638507 1659.903068 99.762741
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/94 15.562412 1551.220719 99.677397
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/95 18.466059 1838.963749 99.586152
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/96 18.990158 1889.696450 99.509254
- -----------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 20.260333 2014.575638 99.434478
- -----------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820
- -----------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820
- -----------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834
- -----------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 12/31/87 9.225971 1000.000000 108.389675
- -----------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 12/31/88 11.801629 1279.174734 108.389675
- -----------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 12/31/89 13.157143 1421.259972 108.021929
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/90 11.939049 1285.740907 107.692071
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/91 15.057650 1616.115853 107.328557
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/92 17.080465 1828.298642 107.040332
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/93 18.062234 1928.798063 106.786240
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/94 18.360853 1956.274711 106.545960
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/95 24.930081 2650.306630 106.309588
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/96 30.819233 3271.014727 106.135501
- -----------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 38.038246 4031.851697 105.994680
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 1.062598 96.266923 1748.595565 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/87 0.000000 146.307684 1000.000000 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/88 0.035944 146.271740 1058.057804 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/89 0.032856 146.238884 1157.226312 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/90 0.030713 146.208171 1237.728929 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/91 0.027931 146.180241 1360.754437 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/92 0.026891 146.153350 1413.115523 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 12/31/93 0.025537 146.127813 1487.783523 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/94 0.025898 146.101915 1466.771474 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/95 0.023637 146.078278 1606.799263 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/96 0.022949 146.055329 1654.738521 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 1.336268 144.719061 1728.398414 5.62%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/94 0.000000 181.735311 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/95 0.017462 181.717849 1352.861763 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/96 0.013594 181.704254 1737.608350 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/97 1.645813 180.058442 2234.729808 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 12/31/87 0.000000 100.323775 1000.000000 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 12/31/88 0.134211 100.189564 1060.041354 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 12/31/89 0.120584 100.068980 1178.417815 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/90 0.113076 99.955904 1255.238249 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/91 0.099048 99.856856 1431.594222 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/92 0.094115 99.762741 1505.214653 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/93 0.085344 99.677397 1658.483068 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/94 0.091245 99.586152 1549.800719 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/95 0.076898 99.509254 1837.543749 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/96 0.074776 99.434478 1888.276450 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 0.964998 98.469480 1995.024457 7.14%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/95 0.000000 89.511820 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 0.052985 89.458834 1181.864458 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/97 0.848740 88.610095 1422.299767 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 12/31/87 0.000000 108.389675 1000.000000 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 12/31/88 0.367746 108.021929 1274.834734 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 12/31/89 0.329859 107.692071 1416.919972 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/90 0.363513 107.328557 1281.400907 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/91 0.288226 107.040332 1611.775853 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/92 0.254091 106.786240 1823.958642 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/93 0.240280 106.545960 1924.458063 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/94 0.236372 106.309588 1951.934711 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/95 0.174087 106.135501 2645.966630 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/96 0.140821 105.994680 3266.674727 14.83%
- -----------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 1.068048 104.926632 3991.225031 14.83%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - 10 YR - Tbl 1C
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c div2 BALFND q 12/31/89 7.823012 1000.000000 127.828003
- -----------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/90 7.876448 1006.830617 127.828003
- -----------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/91 9.542707 1218.637859 127.703581
- -----------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/92 10.183039 1299.364789 127.600885
- -----------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/93 10.705679 1365.023817 127.504647
- -----------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/94 10.217587 1301.854499 127.413106
- -----------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/95 12.489026 1590.067737 127.317193
- -----------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/96 13.181800 1677.235418 127.238724
- -----------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 15.550604 1977.482908 127.164379
- -----------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/87 6.304108 1000.000000 158.626724
- -----------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/88 6.081994 964.766784 158.626724
- -----------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/89 7.736741 1224.773337 158.306106
- -----------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/90 7.542668 1192.149311 158.054061
- -----------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/91 10.568393 1667.645198 157.795532
- -----------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/92 10.296825 1622.893088 157.611020
- -----------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/93 11.124183 1751.187142 157.421641
- -----------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/94 10.857486 1707.300013 157.246347
- -----------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/95 14.058113 2208.062087 157.066748
- -----------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/96 13.282214 2084.351779 156.928038
- -----------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 12.689870 1989.533361 156.781225
- -----------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490
- -----------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490
- -----------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/89 6.178927 1000.000000 161.840397
- -----------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/90 6.512261 1053.946907 161.840397
- -----------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/91 7.882231 1275.251871 161.788188
- -----------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/92 8.695786 1406.500367 161.745053
- -----------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/93 10.411214 1683.555288 161.705954
- -----------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/94 9.655628 1561.057209 161.673297
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/95 11.153657 1802.855746 161.638084
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/96 12.622550 2039.900019 161.607601
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 15.040064 2430.183538 161.580665
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/87 4.134969 1000.000000 241.839782
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/88 5.010861 1211.825530 241.839782
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/89 5.806942 1402.506980 241.522471
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/90 4.857970 1171.978756 241.248661
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/91 6.305979 1519.245059 240.921363
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/92 7.279096 1751.854370 240.669222
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/93 8.503809 2044.747576 240.450788
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/94 8.991578 2160.350816 240.263813
- -----------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/95 11.921222 2862.130199 240.086981
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/96 13.453420 3228.196633 239.953605
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 17.020857 4082.204383 239.835420
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/87 3.961179 1000.000000 252.450091
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/88 4.521386 1141.424308 252.450091
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/89 5.872409 1479.879585 252.005537
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/90 5.118909 1288.241320 251.663259
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/91 7.356310 1848.424405 251.270597
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/92 7.941793 1993.369093 250.997362
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/93 9.362411 2347.570917 250.744271
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/94 9.244314 2315.974125 250.529582
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/95 12.359885 3093.829405 250.312151
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/96 13.999957 3502.082643 250.149529
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- --------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c div2 BALFND q 12/31/89 0.000000 127.828003 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/90 0.124422 127.703581 1005.850617 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/91 0.102696 127.600885 1217.657859 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 12/31/92 0.096238 127.504647 1298.384789 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/93 0.091540 127.413106 1364.043817 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/94 0.095913 127.317193 1300.874499 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/95 0.078469 127.238724 1589.087737 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/96 0.074345 127.164379 1676.255418 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 3.278329 123.886050 1926.502908 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/87 0.000000 158.626724 1000.000000 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/88 0.320619 158.306106 962.816784 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/89 0.252044 158.054061 1222.823337 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/90 0.258529 157.795532 1190.199311 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/91 0.184512 157.611020 1665.695198 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 12/31/92 0.189379 157.421641 1620.943088 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/93 0.175294 157.246347 1749.237142 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/94 0.179600 157.066748 1705.350013 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/95 0.138710 156.928038 2206.112087 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/96 0.146813 156.781225 2082.401779 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 4.093817 152.687408 1937.583361 6.83%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/96 0.000000 110.380490 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 4.969695 105.410796 946.016880 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/89 0.000000 161.840397 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/90 0.052209 161.788188 1053.606907 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/91 0.043135 161.745053 1274.911871 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/92 0.039099 161.705954 1406.160367 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/93 0.032657 161.673297 1683.215288 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 12/31/94 0.035213 161.638084 1560.717209 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/95 0.030483 161.607601 1802.515746 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/96 0.026936 161.580665 2039.560019 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 3.347060 158.233604 2379.843538 0.00%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/87 0.000000 241.839782 1000.000000 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/88 0.317311 241.522471 1210.235530 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/89 0.273810 241.248661 1400.916980 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/90 0.327297 240.921363 1170.388756 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/91 0.252142 240.669222 1517.655059 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/92 0.218434 240.450788 1750.264370 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/93 0.186975 240.263813 2043.157576 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/94 0.176832 240.086981 2158.760816 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 12/31/95 0.133376 239.953605 2860.540199 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/96 0.118186 239.835420 3226.606633 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 3.030987 236.804433 4030.614383 14.94%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/87 0.000000 252.450091 1000.000000 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/88 0.444554 252.005537 1139.414308 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/89 0.342279 251.663259 1477.869585 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/90 0.392662 251.270597 1286.231320 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/91 0.273235 250.997362 1846.414405 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/92 0.253091 250.744271 1991.359093 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/93 0.214688 250.529582 2345.560917 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/94 0.217431 250.312151 2313.964125 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 12/31/95 0.162623 250.149529 3091.819405 15.46%
- --------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/96 0.143572 250.005957 3500.072643 15.46%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - 10 YR - Tbl 1C
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- ------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 FIDGRO Q 12/31/97 17.072612 4268.254695 250.005957
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094
- ------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056
- ------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/87 16.897963 1000.000000 59.178731
- ------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/88 19.831828 1173.622406 59.178731
- ------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/89 23.711872 1395.574386 58.855513
- ------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/90 23.215292 1360.072155 58.585184
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/91 27.891899 1626.350774 58.309073
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/92 30.179495 1752.802650 58.079257
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/93 34.512855 1997.150592 57.866861
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/94 35.495155 2047.400769 57.681133
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/95 42.867835 2464.923890 57.500545
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/96 49.261868 2825.218179 57.351016
- ------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 56.265009 3219.534175 57.220895
- ------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/87 14.580816 1000.000000 68.583267
- ------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/88 16.220777 1112.473883 68.583267
- ------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/89 21.029096 1437.719571 68.368111
- ------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/90 18.451506 1258.432390 68.202151
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/91 24.552354 1669.879402 68.013006
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/92 25.692327 1743.760351 67.870861
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/93 28.528477 1932.377035 67.735023
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/94 25.886803 1750.276353 67.612689
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/95 32.329694 2181.538921 67.477871
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/96 38.234636 2575.864395 67.369921
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 47.858840 3219.877773 67.278642
- ------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/87 14.701955 1000.000000 68.018165
- ------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/88 16.355551 1112.474565 68.018165
- ------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/89 21.203830 1437.721065 67.804782
- ------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/90 18.604812 1258.432997 67.640189
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/91 24.756361 1669.880989 67.452603
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/92 25.905809 1743.762206 67.311629
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/93 28.765516 1932.378487 67.176910
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/94 26.101888 1750.277354 67.055584
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/95 32.598304 2181.539711 66.921878
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/96 38.552321 2575.866266 66.814817
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 48.256483 3219.879590 66.724291
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/87 13.169271 1000.000000 75.934347
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/88 15.325368 1163.721819 75.934347
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/89 15.034710 1139.885032 75.816895
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/90 13.529719 1024.161469 75.697172
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/91 18.291494 1382.180862 75.564132
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/92 20.917682 1578.568044 75.465725
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/93 24.742238 1865.061828 75.379674
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/94 22.643778 1705.233261 75.306924
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/95 26.034837 1958.533920 75.227432
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/96 29.275542 2200.299777 75.158293
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 33.475732 2513.920642 75.096809
- ------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- ------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- -----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 FIDGRO Q 12/31/97 3.046400 246.959557 4216.244695 15.46%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/92 0.000000 194.714665 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/93 0.023267 194.691398 1087.800222 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/94 0.023227 194.668171 1089.543737 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/95 0.017077 194.651094 1481.786903 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/96 0.014038 194.637056 1802.474607 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 4.121714 190.515342 2317.126651 0.00%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/87 0.000000 59.178731 1000.000000 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/88 0.323218 58.855513 1167.212406 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/89 0.270329 58.585184 1389.164386 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 12/31/90 0.276111 58.309073 1353.662155 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/91 0.229816 58.079257 1619.940774 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/92 0.212396 57.866861 1746.392650 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/93 0.185728 57.681133 1990.740592 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/94 0.180588 57.500545 2040.990769 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/95 0.149529 57.351016 2458.513890 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/96 0.130121 57.220895 2818.808179 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 1.002577 56.218318 3163.124175 12.19%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/87 0.000000 68.583267 1000.000000 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/88 0.215156 68.368111 1108.983883 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/89 0.165961 68.202151 1434.229571 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 12/31/90 0.189144 68.013006 1254.942390 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/91 0.142145 67.870861 1666.389402 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/92 0.135838 67.735023 1740.270351 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/93 0.122334 67.612689 1928.887035 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/94 0.134818 67.477871 1746.786353 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/95 0.107950 67.369921 2178.048921 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/96 0.091278 67.278642 2572.374395 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 1.117662 66.160980 3166.387773 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/87 0.000000 68.018165 1000.000000 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/88 0.213383 67.804782 1108.984565 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/89 0.164593 67.640189 1434.231065 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 12/31/90 0.187586 67.452603 1254.942997 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/91 0.140974 67.311629 1666.390989 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/92 0.134719 67.176910 1740.272206 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/93 0.121326 67.055584 1928.888487 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/94 0.133707 66.921878 1746.787354 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/95 0.107061 66.814817 2178.049711 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/96 0.090526 66.724291 2572.376266 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 1.108452 65.615838 3166.389590 12.21%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/87 0.000000 75.934347 1000.000000 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/88 0.117452 75.816895 1161.921819 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/89 0.119723 75.697172 1138.085032 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 12/31/90 0.133040 75.564132 1022.361469 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/91 0.098406 75.465725 1380.380862 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/92 0.086052 75.379674 1576.768044 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/93 0.072750 75.306924 1863.261828 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/94 0.079492 75.227432 1703.433261 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/95 0.069138 75.158293 1956.733920 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/96 0.061485 75.096809 2198.499777 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 1.547390 73.549419 2462.120642 9.42%
- -----------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - 10 YR - Tbl 1C
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of unis
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- -----------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/87 6.834911 1000.000000 146.307684
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/88 7.233508 1058.317804 146.307684
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/89 7.913260 1157.486312 146.271740
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/90 8.465525 1237.988929 146.238884
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/91 9.308744 1361.014437 146.208171
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/92 9.668718 1413.375523 146.180241
- -----------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/93 10.181385 1488.043523 146.153350
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/94 10.039372 1467.031474 146.127813
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/95 10.999577 1607.059263 146.101915
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/96 11.329532 1654.998521 146.078278
- -----------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 11.943129 1744.357632 146.055329
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849
- -----------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254
- -----------------------------------------------------------------------------------------------------
1c div2 QUALBD q 12/31/87 9.967727 1000.000000 100.323775
- -----------------------------------------------------------------------------------------------------
1c div2 QUALBD q 12/31/88 10.580357 1061.461354 100.323775
- -----------------------------------------------------------------------------------------------------
1c div2 QUALBD q 12/31/89 11.776055 1179.837815 100.189564
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/90 12.557920 1256.658249 100.068980
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/91 14.336464 1433.014222 99.955904
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/92 15.087944 1506.634653 99.856856
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/93 16.638507 1659.903068 99.762741
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/94 15.562412 1551.220719 99.677397
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/95 18.466059 1838.963749 99.586152
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/96 18.990158 1889.696450 99.509254
- -----------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 20.260333 2014.575638 99.434478
- -----------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820
- -----------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820
- -----------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834
- -----------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 12/31/87 9.225971 1000.000000 108.389675
- -----------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 12/31/88 11.801629 1279.174734 108.389675
- -----------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 12/31/89 13.157143 1421.259972 108.021929
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/90 11.939049 1285.740907 107.692071
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/91 15.057650 1616.115853 107.328557
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/92 17.080465 1828.298642 107.040332
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/93 18.062234 1928.798063 106.786240
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/94 18.360853 1956.274711 106.545960
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/95 24.930081 2650.306630 106.309588
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/96 30.819233 3271.014727 106.135501
- -----------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/97 38.038246 4031.851697 105.994680
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10 yr
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 2.939325 94.390196 1714.506635 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/87 0.000000 146.307684 1000.000000 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/88 0.035944 146.271740 1058.057804 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/89 0.032856 146.238884 1157.226312 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/90 0.030713 146.208171 1237.728929 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/91 0.027931 146.180241 1360.754437 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/92 0.026891 146.153350 1413.115523 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 12/31/93 0.025537 146.127813 1487.783523 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/94 0.025898 146.101915 1466.771474 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/95 0.023637 146.078278 1606.799263 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/96 0.022949 146.055329 1654.738521 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 4.208277 141.847051 1694.097632 5.41%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/94 0.000000 181.735311 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/95 0.017462 181.717849 1352.861763 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/96 0.013594 181.704254 1737.608350 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 4.039115 177.665140 2205.026214 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 12/31/87 0.000000 100.323775 1000.000000 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 12/31/88 0.134211 100.189564 1060.041354 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 12/31/89 0.120584 100.068980 1178.417815 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/90 0.113076 99.955904 1255.238249 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/91 0.099048 99.856856 1431.594222 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/92 0.094115 99.762741 1505.214653 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/93 0.085344 99.677397 1658.483068 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/94 0.091245 99.586152 1549.800719 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/95 0.076898 99.509254 1837.543749 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/96 0.074776 99.434478 1888.276450 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 2.537964 96.896514 1963.155638 6.97%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/95 0.000000 89.511820 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/96 0.052985 89.458834 1181.864458 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 3.158639 86.300195 1385.223075 0.00%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 12/31/87 0.000000 108.389675 1000.000000 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 12/31/88 0.367746 108.021929 1274.834734 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 12/31/89 0.329859 107.692071 1416.919972 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/90 0.363513 107.328557 1281.400907 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/91 0.288226 107.040332 1611.775853 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/92 0.254091 106.786240 1823.958642 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/93 0.240280 106.545960 1924.458063 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/94 0.236372 106.309588 1951.934711 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/95 0.174087 106.135501 2645.966630 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/96 0.140821 105.994680 3266.674727 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/97 1.428562 104.566117 3977.511697 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 1D -Penn Mutual Optimizer Group Variable Annuity Contract
Diversifier II - 10 YR - Tbl 1D
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1d div2 FLEXMN q 12/31/87 16.897963 1000.000000 59.178731
- -----------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 12/31/88 19.831828 1173.622406 59.178731
- -----------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 12/31/89 23.711872 1395.574386 58.855513
- -----------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 12/31/90 23.215292 1360.072155 58.585184
- -----------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/91 27.891899 1626.350774 58.309073
- -----------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/92 30.179495 1752.802650 58.079257
- -----------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/93 34.512855 1997.150592 57.866861
- -----------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/94 35.495155 2047.400769 57.681133
- -----------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/95 42.867835 2464.923890 57.500545
- -----------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/96 49.261868 2825.218179 57.351016
- -----------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 56.265009 3219.534175 57.220895
- -----------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/87 14.580816 1000.000000 68.583267
- -----------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/88 16.220777 1112.473883 68.583267
- -----------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/89 21.029096 1437.719571 68.368111
- -----------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/90 18.451506 1258.432390 68.202151
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/91 24.552354 1669.879402 68.013006
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/92 25.692327 1743.760351 67.870861
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/93 28.528477 1932.377035 67.735023
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/94 25.886803 1750.276353 67.612689
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/95 32.329694 2181.538921 67.477871
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/96 38.234636 2575.864395 67.369921
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 47.858840 3219.877773 67.278642
- -----------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/87 14.701955 1000.000000 68.018165
- -----------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/88 16.355551 1112.474565 68.018165
- -----------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/89 21.203830 1437.721065 67.804782
- -----------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/90 18.604812 1258.432997 67.640189
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/91 24.756361 1669.880989 67.452603
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/92 25.905809 1743.762206 67.311629
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/93 28.765516 1932.378487 67.176910
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/94 26.101888 1750.277354 67.055584
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/95 32.598304 2181.539711 66.921878
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/96 38.552321 2575.866266 66.814817
- -----------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 48.256483 3219.879590 66.724291
- -----------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/87 13.169271 1000.000000 75.934347
- -----------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/88 15.325368 1163.721819 75.934347
- -----------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/89 15.034710 1139.885032 75.816895
- -----------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/90 13.529719 1024.161469 75.697172
- -----------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/91 18.291494 1382.180862 75.564132
- -----------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/92 20.917682 1578.568044 75.465725
- -----------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/93 24.742238 1865.061828 75.379674
- -----------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/94 22.643778 1705.233261 75.306924
- -----------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/95 26.034837 1958.533920 75.227432
- -----------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/96 29.275542 2200.299777 75.158293
- -----------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 33.475732 2513.920642 75.096809
- -----------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042
- -----------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042
- -----------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814
- -----------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860
- -----------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018
- -----------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521
- -----------------------------------------------------------------------------------------------------
1d div2 QUALBD q 12/31/87 9.967727 1000.000000 100.323775
- -----------------------------------------------------------------------------------------------------
1d div2 QUALBD q 12/31/88 10.580357 1061.461354 100.323775
- -----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1d div2 FLEXMN q 12/31/87 0.000000 59.178731 1000.000000 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 12/31/88 0.323218 58.855513 1167.212406 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 12/31/89 0.270329 58.585184 1389.164386 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 12/31/90 0.276111 58.309073 1353.662155 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/91 0.229816 58.079257 1619.940774 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/92 0.212396 57.866861 1746.392650 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/93 0.185728 57.681133 1990.740592 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/94 0.180588 57.500545 2040.990769 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/95 0.149529 57.351016 2458.513890 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/96 0.130121 57.220895 2818.808179 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 0.829186 56.391709 3172.879998 12.23%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/87 0.000000 68.583267 1000.000000 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/88 0.215156 68.368111 1108.983883 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/89 0.165961 68.202151 1434.229571 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 12/31/90 0.189144 68.013006 1254.942390 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/91 0.142145 67.870861 1666.389402 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/92 0.135838 67.735023 1740.270351 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/93 0.122334 67.612689 1928.887035 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/94 0.134818 67.477871 1746.786353 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/95 0.107950 67.369921 2178.048921 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/96 0.091278 67.278642 2572.374395 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 0.913906 66.364736 3176.139300 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/87 0.000000 68.018165 1000.000000 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/88 0.213383 67.804782 1108.984565 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/89 0.164593 67.640189 1434.231065 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 12/31/90 0.187586 67.452603 1254.942997 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/91 0.140974 67.311629 1666.390989 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/92 0.134719 67.176910 1740.272206 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/93 0.121326 67.055584 1928.888487 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/94 0.133707 66.921878 1746.787354 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/95 0.107061 66.814817 2178.049711 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/96 0.090526 66.724291 2572.376266 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 0.906376 65.817915 3176.141096 12.24%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/87 0.000000 75.934347 1000.000000 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/88 0.117452 75.816895 1161.921819 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/89 0.119723 75.697172 1138.085032 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 12/31/90 0.133040 75.564132 1022.361469 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/91 0.098406 75.465725 1380.380862 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/92 0.086052 75.379674 1576.768044 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/93 0.072750 75.306924 1863.261828 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/94 0.079492 75.227432 1703.433261 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/95 0.069138 75.158293 1956.733920 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/96 0.061485 75.096809 2198.499777 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 0.992480 74.104328 2480.696634 9.50%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/92 0.000000 98.276042 1000.000000 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/93 0.244228 98.031814 1360.727452 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/94 0.263953 97.767860 1255.649542 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/95 0.234842 97.533018 1407.912916 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/96 0.203497 97.329521 1621.384949 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 4.566461 92.763060 1684.951286 0.00%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 QUALBD q 12/31/87 0.000000 100.323775 1000.000000 7.11%
- --------------------------------------------------------------------------------------------------------------------------
1d div2 QUALBD q 12/31/88 0.134211 100.189564 1060.041354 7.11%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1D - Penn Mutual Optimizer Group Variable Annuity Contract
Diversifier II - 10 YR - Tbl 1D
<TABLE>
<CAPTION>
Q=qualified
N=nonqualified Beginning # of units
- ----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1d div2 QUALBD q 12/31/89 11.776055 1179.837815 100.189564
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/90 12.557920 1256.658249 100.068980
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/91 14.336464 1433.014222 99.955904
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/92 15.087944 1506.634653 99.856856
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/93 16.638507 1659.903068 99.762741
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/94 15.562412 1551.220719 99.677397
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/95 18.466059 1838.963749 99.586152
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/96 18.990158 1889.696450 99.509254
- ----------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 20.260333 2014.575638 99.434478
- ----------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 12/31/87 9.225971 1000.000000 108.389675
- ----------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 12/31/88 11.801629 1279.174734 108.389675
- ----------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 12/31/89 13.157143 1421.259972 108.021929
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/90 11.939049 1285.740907 107.692071
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/91 15.057650 1616.115853 107.328557
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/92 17.080465 1828.298642 107.040332
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/93 18.062234 1928.798063 106.786240
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/94 18.360853 1956.274711 106.545960
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/95 24.930081 2650.306630 106.309588
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/96 30.819233 3271.014727 106.135501
- ----------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 38.038246 4031.851697 105.994680
- ----------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified fee & deferred at end of Ending return for
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate sales load period Value 10yr
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1d div2 QUALBD q 12/31/89 0.120584 100.068980 1178.417815 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/90 0.113076 99.955904 1255.238249 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/91 0.099048 99.856856 1431.594222 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/92 0.094115 99.762741 1505.214653 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/93 0.085344 99.677397 1658.483068 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/94 0.091245 99.586152 1549.800719 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/95 0.076898 99.509254 1837.543749 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/96 0.074776 99.434478 1888.276450 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 1.313019 98.121459 1987.973443 7.11%
- ---------------------------------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 12/31/87 0.000000 108.389675 1000.000000 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 12/31/88 0.367746 108.021929 1274.834734 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 12/31/89 0.329859 107.692071 1416.919972 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/90 0.363513 107.328557 1281.400907 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/91 0.288226 107.040332 1611.775853 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/92 0.254091 106.786240 1823.958642 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/93 0.240280 106.545960 1924.458063 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/94 0.236372 106.309588 1951.934711 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/95 0.174087 106.135501 2645.966630 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/96 0.140821 105.994680 3266.674727 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 1.439029 104.555650 3977.113550 14.79%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Diversifier II - 10 YR - Tbl 2
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- -----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 div2 BALFND q 12/31/89 7.823012 1000.000000 127.828003 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/90 7.876448 1006.830617 127.828003 0.124422
- -----------------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/91 9.542707 1218.637859 127.703581 0.102696
- -----------------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/92 10.183039 1299.364789 127.600885 0.096238
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/93 10.705679 1365.023817 127.504647 0.091540
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/94 10.217587 1301.854499 127.413106 0.095913
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/95 12.489026 1590.067737 127.317193 0.078469
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/96 13.181800 1677.235418 127.238724 0.074345
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 15.550604 1977.482908 127.164379 0.063020
- -----------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/87 6.304108 1000.000000 158.626724 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/88 6.081994 964.766784 158.626724 0.320619
- -----------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/89 7.736741 1224.773337 158.306106 0.252044
- -----------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/90 7.542668 1192.149311 158.054061 0.258529
- -----------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/91 10.568393 1667.645198 157.795532 0.184512
- -----------------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/92 10.296825 1622.893088 157.611020 0.189379
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/93 11.124183 1751.187142 157.421641 0.175294
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/94 10.857486 1707.300013 157.246347 0.179600
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/95 14.058113 2208.062087 157.066748 0.138710
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/96 13.282214 2084.351779 156.928038 0.146813
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 12.689870 1989.533361 156.781225 0.153666
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/96 9.059572 1000.000000 110.380490 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 8.974573 990.617769 110.380490 0.007800
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/89 6.178927 1000.000000 161.840397 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/90 6.512261 1053.946907 161.840397 0.052209
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/91 7.882231 1275.251871 161.788188 0.043135
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/92 8.695786 1406.500367 161.745053 0.039099
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/93 10.411214 1683.555288 161.705954 0.032657
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/94 9.655628 1561.057209 161.673297 0.035213
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/95 11.153657 1802.855746 161.638084 0.030483
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/96 12.622550 2039.900019 161.607601 0.026936
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 15.040064 2430.183538 161.580665 0.022606
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/87 4.134969 1000.000000 241.839782 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/88 5.010861 1211.825530 241.839782 0.317311
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/89 5.806942 1402.506980 241.522471 0.273810
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/90 4.857970 1171.978756 241.248661 0.327297
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/91 6.305979 1519.245059 240.921363 0.252142
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/92 7.279096 1751.854370 240.669222 0.218434
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/93 8.503809 2044.747576 240.450788 0.186975
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/94 8.991578 2160.350816 240.263813 0.176832
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/95 11.921222 2862.130199 240.086981 0.133376
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/96 13.453420 3228.196633 239.953605 0.118186
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 17.020857 4082.204383 239.835420 0.093415
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/87 3.961179 1000.000000 252.450091 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/88 4.521386 1141.424308 252.450091 0.444554
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/89 5.872409 1479.879585 252.005537 0.342279
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/90 5.118909 1288.241320 251.663259 0.392662
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/91 7.356310 1848.424405 251.270597 0.273235
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/92 7.941793 1993.369093 250.997362 0.253091
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/93 9.362411 2347.570917 250.744271 0.214688
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/94 9.244314 2315.974125 250.529582 0.217431
- -----------------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/95 12.359885 3093.829405 250.312151 0.162623
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/96 13.999957 3502.082643 250.149529 0.143572
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return for
- ---------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value 10yr
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 div2 BALFND q 12/31/89 127.828003 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/90 127.703581 1005.850617 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/91 127.600885 1217.657859 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 BALFND q 12/31/92 127.504647 1298.384789 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/93 127.413106 1364.043817 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/94 127.317193 1300.874499 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/95 127.238724 1589.087737 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/96 127.164379 1676.255418 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 127.101359 1976.502908 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/87 158.626724 1000.000000 7.10%
- ---------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/88 158.306106 962.816784 7.10%
- ---------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/89 158.054061 1222.823337 7.10%
- ---------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/90 157.795532 1190.199311 7.10%
- ---------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/91 157.611020 1665.695198 7.10%
- ---------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 12/31/92 157.421641 1620.943088 7.10%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/93 157.246347 1749.237142 7.10%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/94 157.066748 1705.350013 7.10%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/95 156.928038 2206.112087 7.10%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/96 156.781225 2082.401779 7.10%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 156.627559 1987.583361 7.10%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/96 110.380490 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 110.372691 990.547769 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/89 161.840397 1000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/90 161.788188 1053.606907 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/91 161.745053 1274.911871 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/92 161.705954 1406.160367 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/93 161.673297 1683.215288 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 12/31/94 161.638084 1560.717209 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/95 161.607601 1802.515746 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/96 161.580665 2039.560019 0.00%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 161.558058 2429.843538 0.00%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/87 241.839782 1000.000000 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/88 241.522471 1210.235530 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/89 241.248661 1400.916980 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/90 240.921363 1170.388756 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/91 240.669222 1517.655059 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/92 240.450788 1750.264370 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/93 240.263813 2043.157576 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/94 240.086981 2158.760816 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 12/31/95 239.953605 2860.540199 15.09%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/96 239.835420 3226.606633 15.09%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 239.742005 4080.614383 15.09%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/87 252.450091 1000.000000 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/88 252.005537 1139.414308 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/89 251.663259 1477.869585 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/90 251.270597 1286.231320 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/91 250.997362 1846.414405 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/92 250.744271 1991.359093 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/93 250.529582 2345.560917 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/94 250.312151 2313.964125 15.60%
- ---------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 12/31/95 250.149529 3091.819405 15.60%
- ---------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/96 250.005957 3500.072643 15.60%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Diversifier II - 10 YR - Tbl 2
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 FIDGRO Q 12/31/97 17.072612 4268.254695 250.005957 0.117732
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/92 5.135720 1000.000000 194.714665 0.000000
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/93 5.587305 1087.930222 194.714665 0.023267
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/94 5.596928 1089.673737 194.691398 0.023227
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/95 7.612528 1481.916903 194.668171 0.017077
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/96 9.260696 1802.604607 194.651094 0.014038
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/97 12.162415 2367.256651 194.637056 0.010689
- ------------------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/87 16.897963 1000.000000 59.178731 0.000000
- ------------------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/88 19.831828 1173.622406 59.178731 0.323218
- ------------------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/89 23.711872 1395.574386 58.855513 0.270329
- ------------------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/90 23.215292 1360.072155 58.585184 0.276111
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/91 27.891899 1626.350774 58.309073 0.229816
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/92 30.179495 1752.802650 58.079257 0.212396
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/93 34.512855 1997.150592 57.866861 0.185728
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/94 35.495155 2047.400769 57.681133 0.180588
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/95 42.867835 2464.923890 57.500545 0.149529
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/96 49.261868 2825.218179 57.351016 0.130121
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 56.265009 3219.534175 57.220895 0.113925
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/87 14.580816 1000.000000 68.583267 0.000000
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/88 16.220777 1112.473883 68.583267 0.215156
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/89 21.029096 1437.719571 68.368111 0.165961
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/90 18.451506 1258.432390 68.202151 0.189144
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/91 24.552354 1669.879402 68.013006 0.142145
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/92 25.692327 1743.760351 67.870861 0.135838
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/93 28.528477 1932.377035 67.735023 0.122334
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/94 25.886803 1750.276353 67.612689 0.134818
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/95 32.329694 2181.538921 67.477871 0.107950
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/96 38.234636 2575.864395 67.369921 0.091278
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 47.858840 3219.877773 67.278642 0.072923
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/87 14.701955 1000.000000 68.018165 0.000000
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/88 16.355551 1112.474565 68.018165 0.213383
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/89 21.203830 1437.721065 67.804782 0.164593
- ------------------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/90 18.604812 1258.432997 67.640189 0.187586
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/91 24.756361 1669.880989 67.452603 0.140974
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/92 25.905809 1743.762206 67.311629 0.134719
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/93 28.765516 1932.378487 67.176910 0.121326
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/94 26.101888 1750.277354 67.055584 0.133707
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/95 32.598304 2181.539711 66.921878 0.107061
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/96 38.552321 2575.866266 66.814817 0.090526
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 48.256483 3219.879590 66.724291 0.072322
- ------------------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/87 13.169271 1000.000000 75.934347 0.000000
- ------------------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/88 15.325368 1163.721819 75.934347 0.117452
- ------------------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/89 15.034710 1139.885032 75.816895 0.119723
- ------------------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/90 13.529719 1024.161469 75.697172 0.133040
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/91 18.291494 1382.180862 75.564132 0.098406
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/92 20.917682 1578.568044 75.465725 0.086052
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/93 24.742238 1865.061828 75.379674 0.072750
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/94 22.643778 1705.233261 75.306924 0.079492
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/95 26.034837 1958.533920 75.227432 0.069138
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/96 29.275542 2200.299777 75.158293 0.061485
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 33.475732 2513.920642 75.096809 0.053770
- ------------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/92 10.175420 1000.000000 98.276042 0.000000
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return for
- -----------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value 10yr
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 FIDGRO Q 12/31/97 249.888224 4266.244695 15.60%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/92 194.714665 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/93 194.691398 1087.800222 0.00%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/94 194.668171 1089.543737 0.00%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/95 194.651094 1481.786903 0.00%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/96 194.637056 1802.474607 0.00%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/97 194.626367 2367.126651 0.00%
- -----------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/87 59.178731 1000.000000 12.37%
- -----------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/88 58.855513 1167.212406 12.37%
- -----------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/89 58.585184 1389.164386 12.37%
- -----------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 12/31/90 58.309073 1353.662155 12.37%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/91 58.079257 1619.940774 12.37%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/92 57.866861 1746.392650 12.37%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/93 57.681133 1990.740592 12.37%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/94 57.500545 2040.990769 12.37%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/95 57.351016 2458.513890 12.37%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/96 57.220895 2818.808179 12.37%
- -----------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 57.106970 3213.124175 12.37%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/87 68.583267 1000.000000 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/88 68.368111 1108.983883 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/89 68.202151 1434.229571 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWeq n 12/31/90 68.013006 1254.942390 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/91 67.870861 1666.389402 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/92 67.735023 1740.270351 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/93 67.612689 1928.887035 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/94 67.477871 1746.786353 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/95 67.369921 2178.048921 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/96 67.278642 2572.374395 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 67.205719 3216.387773 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/87 68.018165 1000.000000 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/88 67.804782 1108.984565 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/89 67.640189 1434.231065 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 12/31/90 67.452603 1254.942997 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/91 67.311629 1666.390989 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/92 67.176910 1740.272206 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/93 67.055584 1928.888487 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/94 66.921878 1746.787354 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/95 66.814817 2178.049711 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/96 66.724291 2572.376266 12.38%
- -----------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 66.651969 3216.389590 12.38%
- -----------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/87 75.934347 1000.000000 9.64%
- -----------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/88 75.816895 1161.921819 9.64%
- -----------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/89 75.697172 1138.085032 9.64%
- -----------------------------------------------------------------------------------------------------
2 div2 HIBOND q 12/31/90 75.564132 1022.361469 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/91 75.465725 1380.380862 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/92 75.379674 1576.768044 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/93 75.306924 1863.261828 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/94 75.227432 1703.433261 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/95 75.158293 1956.733920 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/96 75.096809 2198.499777 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 75.043038 2512.120642 9.64%
- -----------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/92 98.276042 1000.000000 0.00%
- -----------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - 10 YR - Tbl 2
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of unis fee & deferred
- -----------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 INTLEQ Q 12/31/93 13.880468 1364.117452 98.276042 0.244228
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/94 12.843173 1259.039542 98.031814 0.263953
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/95 14.435244 1411.302916 97.767860 0.234842
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/96 16.658717 1624.774949 97.533018 0.203497
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/97 18.164033 1767.896635 97.329521 0.186633
- -----------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/87 6.834911 1000.000000 146.307684 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/88 7.233508 1058.317804 146.307684 0.035944
- -----------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/89 7.913260 1157.486312 146.271740 0.032856
- -----------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/90 8.465525 1237.988929 146.238884 0.030713
- -----------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/91 9.308744 1361.014437 146.208171 0.027931
- -----------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/92 9.668718 1413.375523 146.180241 0.026891
- -----------------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/93 10.181385 1488.043523 146.153350 0.025537
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/94 10.039372 1467.031474 146.127813 0.025898
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/95 10.999577 1607.059263 146.101915 0.023637
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/96 11.329532 1654.998521 146.078278 0.022949
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 11.943129 1744.357632 146.055329 0.021770
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/94 5.502508 1000.000000 181.735311 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/95 7.444848 1352.991763 181.735311 0.017462
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/96 9.562838 1737.738350 181.717849 0.013594
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/97 12.411136 2255.156214 181.704254 0.010474
- -----------------------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 12/31/87 9.967727 1000.000000 100.323775 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 12/31/88 10.580357 1061.461354 100.323775 0.134211
- -----------------------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 12/31/89 11.776055 1179.837815 100.189564 0.120584
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/90 12.557920 1256.658249 100.068980 0.113076
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/91 14.336464 1433.014222 99.955904 0.099048
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/92 15.087944 1506.634653 99.856856 0.094115
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/93 16.638507 1659.903068 99.762741 0.085344
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/94 15.562412 1551.220719 99.677397 0.091245
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/95 18.466059 1838.963749 99.586152 0.076898
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/96 18.990158 1889.696450 99.509254 0.074776
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 20.260333 2014.575638 99.434478 0.070088
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/95 11.171709 1000.000000 89.511820 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/96 13.211266 1182.564458 89.511820 0.052985
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/97 16.051216 1435.923075 89.458834 0.043610
- -----------------------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 12/31/87 9.225971 1000.000000 108.389675 0.000000
- -----------------------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 12/31/88 11.801629 1279.174734 108.389675 0.367746
- -----------------------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 12/31/89 13.157143 1421.259972 108.021929 0.329859
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/90 11.939049 1285.740907 107.692071 0.363513
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/91 15.057650 1616.115853 107.328557 0.288226
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/92 17.080465 1828.298642 107.040332 0.254091
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/93 18.062234 1928.798063 106.786240 0.240280
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/94 18.360853 1956.274711 106.545960 0.236372
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/95 24.930081 2650.306630 106.309588 0.174087
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/96 30.819233 3271.014727 106.135501 0.140821
- -----------------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 38.038246 4031.851697 105.994680 0.114096
- -----------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return for
- -------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value 10yr
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 INTLEQ Q 12/31/93 98.031814 1360.727452 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/94 97.767860 1255.649542 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/95 97.533018 1407.912916 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/96 97.329521 1621.384949 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/97 97.142889 1764.506635 0.00%
- -------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/87 146.307684 1000.000000 5.72%
- -------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/88 146.271740 1058.057804 5.72%
- -------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/89 146.238884 1157.226312 5.72%
- -------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/90 146.208171 1237.728929 5.72%
- -------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/91 146.180241 1360.754437 5.72%
- -------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/92 146.153350 1413.115523 5.72%
- -------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 12/31/93 146.127813 1487.783523 5.72%
- -------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/94 146.101915 1466.771474 5.72%
- -------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/95 146.078278 1606.799263 5.72%
- -------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/96 146.055329 1654.738521 5.72%
- -------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 146.033559 1744.097632 5.72%
- -------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/94 181.735311 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/95 181.717849 1352.861763 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/96 181.704254 1737.608350 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/97 181.693780 2255.026214 0.00%
- -------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 12/31/87 100.323775 1000.000000 7.24%
- -------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 12/31/88 100.189564 1060.041354 7.24%
- -------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 12/31/89 100.068980 1178.417815 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/90 99.955904 1255.238249 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/91 99.856856 1431.594222 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/92 99.762741 1505.214653 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/93 99.677397 1658.483068 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/94 99.586152 1549.800719 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/95 99.509254 1837.543749 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/96 99.434478 1888.276450 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 99.364390 2013.155638 7.24%
- -------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/95 89.511820 1000.000000 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/96 89.458834 1181.864458 0.00%
- -------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/97 89.415224 1435.223075 0.00%
- -------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 12/31/87 108.389675 1000.000000 14.94%
- -------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 12/31/88 108.021929 1274.834734 14.94%
- -------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 12/31/89 107.692071 1416.919972 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/90 107.328557 1281.400907 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/91 107.040332 1611.775853 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/92 106.786240 1823.958642 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/93 106.545960 1924.458063 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/94 106.309588 1951.934711 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/95 106.135501 2645.966630 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/96 105.994680 3266.674727 14.94%
- -------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 105.880584 4027.511697 14.94%
- -------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - 10 YR - Tbl 3
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of unis fee & deferred
- ------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 div2 BALFND q 12/31/89 7.823012 10000.000000 1278.280028 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/90 7.876448 10068.306172 1278.280028 0.124422
- ------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/91 9.542707 12197.064455 1278.155607 0.102696
- ------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/92 10.183039 13014.462631 1278.052910 0.096238
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/93 10.705679 13681.393906 1277.956672 0.091540
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/94 10.217587 13056.698158 1277.865132 0.095913
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/95 12.489026 15958.092994 1277.769219 0.078469
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/96 13.181800 16842.263926 1277.690750 0.074345
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 15.550604 19867.706776 1277.616405 0.063020
- ------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/87 6.304108 10000.000000 1586.267240 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/88 6.081994 9647.667838 1586.267240 0.320619
- ------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/89 7.736741 12270.058253 1585.946622 0.252044
- ------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/90 7.542668 11960.367749 1585.694578 0.258529
- ------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/91 10.568393 16755.511237 1585.436048 0.184512
- ------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/92 10.296825 16323.057648 1585.251536 0.189379
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/93 11.124183 17632.521504 1585.062157 0.175294
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/94 10.857486 17207.886932 1584.886864 0.179600
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/95 14.058113 22277.993788 1584.707264 0.138710
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/96 13.282214 21046.578632 1584.568554 0.146813
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 12.689870 20106.105920 1584.421741 0.153666
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/96 9.059572 10000.000000 1103.804904 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 8.974573 9906.177687 1103.804904 0.007800
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/89 6.178927 10000.000000 1618.403972 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/90 6.512261 10539.469070 1618.403972 0.052209
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/91 7.882231 12756.222434 1618.351763 0.043135
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/92 8.695786 14072.465510 1618.308628 0.039099
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/93 10.411214 16848.150371 1618.269528 0.032657
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/94 9.655628 15625.093246 1618.236871 0.035213
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/95 11.153657 18048.866259 1618.201659 0.030483
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/96 12.622550 20425.446571 1618.171175 0.026936
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 15.040064 24336.992924 1618.144240 0.022606
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/87 4.134969 10000.000000 2418.397816 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/88 5.010861 12118.255300 2418.397816 0.317311
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/89 5.806942 14041.653247 2418.080506 0.273810
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/90 4.857970 11745.632392 2417.806695 0.327297
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/91 6.305979 15244.574318 2417.479398 0.252142
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/92 7.279096 17595.229254 2417.227256 0.218434
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/93 8.503809 20553.781380 2417.008823 0.186975
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/94 8.991578 21731.042156 2416.821848 0.176832
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/95 11.921222 28809.361726 2416.645016 0.133376
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/96 13.453420 32510.346028 2416.511640 0.118186
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 17.020857 41129.087444 2416.393454 0.093415
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/87 3.961179 10000.000000 2524.500912 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/88 4.521386 11414.243083 2524.500912 0.444554
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/89 5.872409 14822.291276 2524.056359 0.342279
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/90 5.118909 12918.662717 2523.714080 0.392662
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/91 7.356310 18562.334581 2523.321418 0.273235
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/92 7.941793 20037.526401 2523.048183 0.253091
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/93 9.362411 23619.444519 2522.795092 0.214688
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/94 9.244314 23319.525341 2522.580404 0.217431
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/95 12.359885 31176.116270 2522.362973 0.162623
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/96 13.999957 35310.696442 2522.200350 0.143572
- ------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return for
- -----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value 10yr
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 div2 BALFND q 12/31/89 1278.280028 10000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/90 1278.155607 10067.326172 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/91 1278.052910 12196.084455 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 BALFND q 12/31/92 1277.956672 13013.482631 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/93 1277.865132 13680.413906 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/94 1277.769219 13055.718158 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/95 1277.690750 15957.112994 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/96 1277.616405 16841.283926 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 1277.553385 19866.726776 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/87 1586.267240 10000.000000 7.23%
- -----------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/88 1585.946622 9645.717838 7.23%
- -----------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/89 1585.694578 12268.108253 7.23%
- -----------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/90 1585.436048 11958.417749 7.23%
- -----------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/91 1585.251536 16753.561237 7.23%
- -----------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 12/31/92 1585.062157 16321.107648 7.23%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/93 1584.886864 17630.571504 7.23%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/94 1584.707264 17205.936932 7.23%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/95 1584.568554 22276.043788 7.23%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/96 1584.421741 21044.628632 7.23%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 1584.268075 20104.155920 7.23%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/96 1103.804904 10000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 1103.797104 9906.107687 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/89 1618.403972 10000.000000 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/90 1618.351763 10539.129070 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/91 1618.308628 12755.882434 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/92 1618.269528 14072.125510 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/93 1618.236871 16847.810371 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 12/31/94 1618.201659 15624.753246 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/95 1618.171175 18048.526259 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/96 1618.144240 20425.106571 0.00%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 1618.121633 24336.652924 0.00%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/87 2418.397816 10000.000000 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/88 2418.080506 12116.665300 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/89 2417.806695 14040.063247 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/90 2417.479398 11744.042392 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/91 2417.227256 15242.984318 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/92 2417.008823 17593.639254 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/93 2416.821848 20552.191380 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/94 2416.645016 21729.452156 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 12/31/95 2416.511640 28807.771726 15.18%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/96 2416.393454 32508.756028 15.18%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 2416.300040 41127.497444 15.18%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/87 2524.500912 10000.000000 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/88 2524.056359 11412.233083 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/89 2523.714080 14820.281276 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/90 2523.321418 12916.652717 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/91 2523.048183 18560.324581 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/92 2522.795092 20035.516401 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/93 2522.580404 23617.434519 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/94 2522.362973 23317.515341 15.70%
- -----------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 12/31/95 2522.200350 31174.106270 15.70%
- -----------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/96 2522.056778 35308.686442 15.70%
- -----------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
<TABLE>
<CAPTION>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts Diversifier II - 10 YR - Tbl 3
Q=qualified $30 contract
N=nonqualified Beginning # of unis fee & deferred
- ------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 FIDGRO Q 12/31/97 17.072612 43058.096810 2522.056778 0.117732
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/92 5.135720 10000.000000 1947.146651 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/93 5.587305 10879.302221 1947.146651 0.023267
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/94 5.596928 10897.909389 1947.123384 0.023227
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/95 7.612528 14822.354466 1947.100157 0.017077
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/96 9.260696 18031.344492 1947.083080 0.014038
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/97 12.162415 23681.061726 1947.069042 0.010689
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 12/31/87 16.897963 10000.000000 591.787306 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 12/31/88 19.831828 11736.224064 591.787306 0.323218
- ------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 12/31/89 23.711872 14024.720751 591.464088 0.270329
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/90 23.215292 13724.735754 591.193759 0.276111
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/91 27.891899 16481.815364 590.917648 0.229816
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/92 30.179495 17826.660487 590.687832 0.212396
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/93 34.512855 20378.993125 590.475437 0.185728
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/94 35.495155 20952.424706 590.289709 0.180588
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/95 42.867835 25296.700418 590.109121 0.149529
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/96 49.261868 29062.511514 589.959591 0.130121
- ------------------------------------------------------------------------------------------------------------------------
3 DIV3 FLEXMN Q 12/31/97 56.265009 33186.760461 589.829470 0.113925
- ------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 12/31/87 14.580816 10000.000000 685.832672 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 12/31/88 16.220777 11124.738835 685.832672 0.215156
- ------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 12/31/89 21.029096 14417.916564 685.617516 0.165961
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/90 18.451506 12647.613489 685.451556 0.189144
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/91 24.552354 16824.805299 685.262411 0.142145
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/92 25.692327 17602.333904 685.120266 0.135838
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/93 28.528477 19541.562488 684.984428 0.122334
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/94 25.886803 17728.890102 684.862094 0.134818
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/95 32.329694 22137.023305 684.727276 0.107950
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/96 38.234636 26176.170716 684.619326 0.091278
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 47.858840 32760.718285 684.528047 0.072923
- ------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 12/31/87 14.701955 10000.000000 680.181649 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 12/31/88 16.355551 11124.745655 680.181649 0.213383
- ------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 12/31/89 21.203830 14417.931520 679.968266 0.164593
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/90 18.604812 12647.619537 679.803673 0.187586
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/91 24.756361 16824.821199 679.616087 0.140974
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/92 25.905809 17602.352509 679.475113 0.134719
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/93 28.765516 19541.576991 679.340395 0.121326
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/94 26.101888 17728.900061 679.219069 0.133707
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/95 32.598304 22137.031072 679.085362 0.107061
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/96 38.552321 26176.189420 678.978301 0.090526
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 48.256483 32760.736368 678.887775 0.072322
- ------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 12/31/87 13.169271 10000.000000 759.343475 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 12/31/88 15.325368 11637.218188 759.343475 0.117452
- ------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 12/31/89 15.034710 11414.743070 759.226022 0.119723
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/90 13.529719 10270.494922 759.106299 0.133040
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/91 18.291494 13882.754812 758.973259 0.098406
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/92 20.917682 15873.902843 758.874853 0.086052
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/93 24.742238 18774.133105 758.788801 0.072750
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/94 22.643778 17180.197820 758.716051 0.079492
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/95 26.034837 19750.979151 758.636559 0.069138
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/96 29.275542 22207.472384 758.567421 0.061485
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 33.475732 25391.541431 758.505936 0.053770
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/92 10.175420 10000.000000 982.760417 0.000000
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return for
- ---------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value 10yr
- ---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 FIDGRO Q 12/31/97 2521.939045 43056.086810 15.70%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/92 1947.146651 10000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/93 1947.123384 10879.172221 0.00%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/94 1947.100157 10897.779389 0.00%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/95 1947.083080 14822.224466 0.00%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/96 1947.069042 18031.214492 0.00%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/97 1947.058354 23680.931726 0.00%
- ---------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 12/31/87 591.787306 10000.000000 12.73%
- ---------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 12/31/88 591.464088 11729.814064 12.73%
- ---------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 12/31/89 591.193759 14018.310751 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/90 590.917648 13718.325754 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/91 590.687832 16475.405364 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/92 590.475437 17820.250487 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/93 590.289709 20372.583125 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/94 590.109121 20946.014706 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/95 589.959591 25290.290418 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/96 589.829470 29056.101514 12.73%
- ---------------------------------------------------------------------------------------------------------
3 DIV3 FLEXMN Q 12/31/97 589.715545 33180.350461 12.73%
- ---------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 12/31/87 685.832672 10000.000000 12.59%
- ---------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 12/31/88 685.617516 11121.248835 12.59%
- ---------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 12/31/89 685.451556 14414.426564 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/90 685.262411 12644.123489 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/91 685.120266 16821.315299 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/92 684.984428 17598.843904 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/93 684.862094 19538.072488 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/94 684.727276 17725.400102 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/95 684.619326 22133.533305 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/96 684.528047 26172.680716 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 684.455124 32757.228285 12.59%
- ---------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 12/31/87 680.181649 10000.000000 12.59%
- ---------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 12/31/88 679.968266 11121.255655 12.59%
- ---------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 12/31/89 679.803673 14414.441520 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/90 679.616087 12644.129537 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/91 679.475113 16821.331199 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/92 679.340395 17598.862509 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/93 679.219069 19538.086991 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/94 679.085362 17725.410061 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/95 678.978301 22133.541072 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/96 678.887775 26172.699420 12.59%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 678.815453 32757.246368 12.59%
- ---------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 12/31/87 759.343475 10000.000000 9.76%
- ---------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 12/31/88 759.226022 11635.418188 9.76%
- ---------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 12/31/89 759.106299 11412.943070 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/90 758.973259 10268.694922 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/91 758.874853 13880.954812 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/92 758.788801 15872.102843 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/93 758.716051 18772.333105 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/94 758.636559 17178.397820 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/95 758.567421 19749.179151 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/96 758.505936 22205.672384 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 758.452166 25389.741431 9.76%
- ---------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/92 982.760417 10000.000000 0.00%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 INTLEQ Q 12/31/93 13.880468 13641.174517 982.760417 0.244228
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/94 12.843173 12618.625387 982.516189 0.263953
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/95 14.435244 14179.050685 982.252235 0.234842
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/96 16.658717 16359.149845 982.017393 0.203497
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 18.164033 17833.700012 981.813896 0.186633
- ------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/87 6.834911 10000.000000 1463.076842 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/88 7.233508 10583.178040 1463.076842 0.035944
- ------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/89 7.913260 11577.423016 1463.040898 0.032856
- ------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/90 8.465525 12385.131153 1463.008042 0.030713
- ------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/91 9.308744 13618.481433 1462.977329 0.027931
- ------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/92 9.668718 14144.845180 1462.949398 0.026891
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/93 10.181385 14894.577273 1462.922507 0.025537
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/94 10.039372 14686.566885 1462.896971 0.025898
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/95 10.999577 16090.963003 1462.871073 0.023637
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/96 11.329532 16573.376829 1462.847435 0.022949
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 11.943129 17470.701545 1462.824486 0.021770
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/94 5.502508 10000.000000 1817.353105 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/95 7.444848 13529.917630 1817.353105 0.017462
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/96 9.562838 17378.886350 1817.335643 0.013594
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 12.411136 22555.031108 1817.322049 0.010474
- ------------------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 12/31/87 9.967727 10000.000000 1003.237749 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 12/31/88 10.580357 10614.613542 1003.237749 0.134211
- ------------------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 12/31/89 11.776055 11812.602437 1003.103538 0.120584
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/90 12.557920 12595.379704 1002.982955 0.113076
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/91 14.336464 14377.607910 1002.869878 0.099048
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/92 15.087944 15129.750133 1002.770830 0.094115
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/93 16.638507 16683.043549 1002.676715 0.085344
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/94 15.562412 15602.739988 1002.591371 0.091245
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/95 18.466059 18512.226470 1002.500126 0.076898
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/96 18.990158 19036.175482 1002.423228 0.074776
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 20.260333 20307.913427 1002.348452 0.070088
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/95 11.171709 10000.000000 895.118195 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/96 13.211266 11825.644581 895.118195 0.052985
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 16.051216 14366.885025 895.065210 0.043610
- ------------------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 12/31/87 9.225971 10000.000000 1083.896752 0.000000
- ------------------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 12/31/88 11.801629 12791.747340 1083.896752 0.367746
- ------------------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 12/31/89 13.157143 14256.146077 1083.529006 0.329859
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/90 11.939049 12932.367695 1083.199147 0.363513
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/91 15.057650 16304.959987 1082.835634 0.288226
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/92 17.080465 18490.413123 1082.547409 0.254091
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/93 18.062234 19548.635151 1082.293317 0.240280
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/94 18.360853 19867.416747 1082.053037 0.236372
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/95 24.930081 26969.777069 1081.816664 0.174087
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 30.819233 33335.394617 1081.642577 0.140821
- ------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/97 38.038246 41138.429855 1081.501756 0.114096
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Diversifier II - 10 YR - Tbl 3
<TABLE>
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return for
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value 10yr
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 DIV2 INTLEQ Q 12/31/93 982.516189 13637.784517 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/94 982.252235 12615.235387 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/95 982.017393 14175.660685 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/96 981.813896 16355.759845 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 981.627264 17830.310012 0.00%
- --------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/87 1463.076842 10000.000000 5.73%
- --------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/88 1463.040898 10582.918040 5.73%
- --------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/89 1463.008042 11577.163016 5.73%
- --------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/90 1462.977329 12384.871153 5.73%
- --------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/91 1462.949398 13618.221433 5.73%
- --------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 12/31/92 1462.922507 14144.585180 5.73%
- --------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/93 1462.896971 14894.317273 5.73%
- --------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/94 1462.871073 14686.306885 5.73%
- --------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/95 1462.847435 16090.703003 5.73%
- --------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/96 1462.824486 16573.116829 5.73%
- --------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 1462.802717 17470.441545 5.73%
- --------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/94 1817.353105 10000.000000 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/95 1817.335643 13529.787630 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/96 1817.322049 17378.756350 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 1817.311575 22554.901108 0.00%
- --------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 12/31/87 1003.237749 10000.000000 7.33%
- --------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 12/31/88 1003.103538 10613.193542 7.33%
- --------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 12/31/89 1002.982955 11811.182437 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/90 1002.869878 12593.959704 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/91 1002.770830 14376.187910 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/92 1002.676715 15128.330133 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/93 1002.591371 16681.623549 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/94 1002.500126 15601.319988 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/95 1002.423228 18510.806470 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/96 1002.348452 19034.755482 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 1002.278365 20306.493427 7.33%
- --------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/95 895.118195 10000.000000 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/96 895.065210 11824.944581 0.00%
- --------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 895.021600 14366.185025 0.00%
- --------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 12/31/87 1083.896752 10000.000000 15.18%
- --------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 12/31/88 1083.529006 12787.407340 15.18%
- --------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 12/31/89 1083.199147 14251.806077 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/90 1082.835634 12928.027695 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/91 1082.547409 16300.619987 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/92 1082.293317 18486.073123 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/93 1082.053037 19544.295151 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/94 1081.816664 19863.076747 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/95 1081.642577 26965.437069 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 1081.501756 33331.054617 15.18%
- --------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/97 1081.387661 41134.089855 15.18%
- --------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
Table 1A - Diversifier II Variable/ Diversifier II - Inception - 1A
Fixed Annuity Contracts
(assuming no purchase payments made
after first contract year)
<TABLE>
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified Beginning # of unis fee & deferred at end of Ending return from
- ------------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load period Value inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 2/28/89 6.791578 1000.000000 147.241186 0.000000 147.241186 1000.000000 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 2/28/90 7.572278 1114.951194 147.241186 0.129419 147.111767 1113.971194 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 2/28/91 8.499080 1250.314673 147.111767 0.115307 146.996460 1249.334673 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 2/28/92 9.751932 1433.499482 146.996460 0.100493 146.895967 1432.519482 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 BALFND q 2/28/93 10.022615 1472.281724 146.895967 0.097779 146.798188 1471.301724 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 2/28/94 10.787779 1583.626412 146.798188 0.090844 146.707345 1582.646412 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 2/28/95 10.674849 1566.078752 146.707345 0.091805 146.615540 1565.098752 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 2/28/96 12.804422 1877.327248 146.615540 0.076536 146.539004 1876.347248 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 2/28/97 13.816279 2024.623765 146.539004 0.070931 146.468073 2023.643765 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 12/31/97 15.550604 2277.667006 146.468073 0.063020 146.405053 2276.687006 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 BALFND Q 2/28/98 16.173137 2367.828983 146.405053 0.060594 146.344459 2366.848983 9.75%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 11/20/87 5.888807 1000.000000 169.813682 0.000000 169.813682 1000.000000 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 11/20/88 5.810044 986.624965 169.813682 0.335626 169.478056 984.674965 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 11/20/89 7.698169 1304.670720 169.478056 0.253307 169.224749 1302.720720 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 11/20/90 6.964679 1178.596059 169.224749 0.279984 168.944765 1176.646059 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 11/20/91 9.346041 1578.964703 168.944765 0.208644 168.736121 1577.014703 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 CAPAPP q 11/20/92 10.053957 1696.465703 168.736121 0.193953 168.542167 1694.515703 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 11/20/93 10.849833 1828.654368 168.542167 0.179726 168.362441 1826.704368 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 11/20/94 10.931772 1840.499819 168.362441 0.178379 168.184062 1838.549819 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 11/20/95 13.831774 2326.283934 168.184062 0.140980 168.043082 2324.333934 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 11/20/96 13.573655 2280.958822 168.043082 0.143661 167.899421 2279.008822 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 11/20/97 13.272217 2228.397556 167.899421 0.146923 167.752498 2226.447556 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 CAPAPP Q 12/31/97 12.689870 2128.757392 167.752498 0.153666 167.598832 2126.807392 7.74%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 11/20/96 9.276035 1000.000000 107.804682 0.000000 107.804682 1000.000000 -6.85%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 11/20/97 11.085709 1195.091329 107.804682 0.006314 107.798367 1195.021329 -6.85%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 EMGMKT Q 12/31/97 8.974573 967.444316 107.798367 5.828912 101.969456 915.132323 -6.85%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 9/6/89 6.153672 1000.000000 162.504599 0.000000 162.504599 1000.000000 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 9/6/90 6.151043 999.572775 162.504599 0.055275 162.449324 999.232775 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 9/6/91 7.592009 1233.316728 162.449324 0.044784 162.404540 1232.976728 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 9/6/92 8.409222 1365.695829 162.404540 0.040432 162.364108 1365.355829 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 9/6/93 9.747655 1582.669309 162.364108 0.034880 162.329228 1582.329309 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDASM q 9/6/94 10.087746 1637.536018 162.329228 0.033704 162.295524 1637.196018 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 9/6/95 10.750516 1744.760622 162.295524 0.031626 162.263897 1744.420622 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 9/6/96 11.579895 1878.998891 162.263897 0.029361 162.234536 1878.658891 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 9/6/97 14.622017 2372.196142 162.234536 0.023253 162.211283 2371.856142 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDASM Q 12/31/97 15.040064 2439.668082 162.211283 0.022606 162.188677 2439.328082 11.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/86 4.238521 1000.000000 235.931354 0.000000 235.931354 1000.000000 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/87 5.019478 1184.252243 235.931354 0.316766 235.614588 1182.662243 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/88 5.047448 1189.252383 235.614588 0.315011 235.299578 1187.662383 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/89 6.178431 1453.782205 235.299578 0.257347 235.042231 1452.192205 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/90 4.543676 1067.955743 235.042231 0.349937 234.692294 1066.365743 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/91 5.881881 1380.432144 234.692294 0.270322 234.421972 1378.842144 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/92 6.591041 1545.084830 234.421972 0.241237 234.180736 1543.494830 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDEQI q 10/9/93 8.467128 1982.838264 234.180736 0.187785 233.992951 1981.248264 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 10/9/95 11.145047 2607.862432 233.992951 0.142664 233.850286 2606.272432 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 10/9/96 12.785988 2990.006955 233.850286 0.124355 233.725931 2988.416955 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 10/9/97 16.956827 3963.250185 233.725931 0.093768 233.632164 3961.660185 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDEQI Q 12/31/97 17.020857 3976.619652 233.632164 0.093415 233.538749 3975.029652 13.07%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/86 3.868619 1000.000000 258.490174 0.000000 258.490174 1000.000000 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/87 4.875669 1260.312530 258.490174 0.412251 258.077923 1258.302530 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/88 4.588422 1184.170421 258.077923 0.438059 257.639864 1182.160421 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/89 6.036553 1555.256695 257.639864 0.332971 257.306893 1553.246695 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1A - Diversifier II Variable/ Diversifier II - Inception - 1A
Fixed Annuity Contracts
(assuming no purchase payments made
after first contract year)
<TABLE>
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified Beginning # of unis fee & deferred at end of Ending return from
- ------------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load period Value inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/90 4.755716 1223.678507 257.306893 0.422649 256.884243 1221.668507 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/91 6.488444 1666.779028 256.884243 0.309782 256.574462 1664.769028 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/92 6.847898 1756.995744 256.574462 0.293521 256.280941 1754.985744 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/93 9.336172 2392.682947 256.280941 0.215292 256.065650 2390.672947 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FIDGRO q 10/9/95 12.054638 3086.778709 256.065650 0.166741 255.898909 3084.768709 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 10/9/96 13.936113 3566.236108 255.898909 0.144230 255.754679 3564.226108 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 10/9/97 17.656557 4515.747070 255.754679 0.113839 255.640840 4513.737070 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDGRO Q 12/31/97 17.072612 4364.456879 255.640840 0.117732 255.523108 4362.446879 14.01%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 8/27/92 4.845444 1000.000000 206.379436 0.000000 206.379436 1000.000000 18.36%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 8/27/93 5.486802 1132.363102 206.379436 0.023693 206.355743 1132.233102 18.36%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 8/27/94 5.737449 1183.955550 206.355743 0.022658 206.333085 1183.825550 18.36%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 8/27/95 6.880634 1419.702438 206.333085 0.018894 206.314191 1419.572438 18.36%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 8/27/96 8.306792 1713.809072 206.314191 0.015650 206.298541 1713.679072 18.36%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 8/27/97 11.449351 2361.984409 206.298541 0.011354 206.287187 2361.854409 18.36%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FIDIND Q 12/31/97 12.162415 2508.950376 206.287187 3.723858 202.563329 2463.659269 18.36%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 7/31/84 10.000000 1000.000000 100.000000 0.000000 100.000000 1000.000000 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 7/31/85 11.456214 1145.621400 100.000000 0.559522 99.440478 1139.211400 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 7/31/86 13.905894 1382.808751 99.440478 0.460956 98.979523 1376.398751 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 7/31/87 17.320528 1714.377594 98.979523 0.370081 98.609442 1707.967594 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 FLEXMN q 7/31/88 19.010671 1874.631652 98.609442 0.337179 98.272263 1868.221652 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/89 23.634078 2322.574319 98.272263 0.271219 98.001044 2316.164319 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/90 23.917918 2343.980935 98.001044 0.268000 97.733044 2337.570935 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/91 26.982387 2637.070819 97.733044 0.237562 97.495482 2630.660819 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/92 29.524429 2878.498428 97.495482 0.217108 97.278373 2872.088428 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/93 32.307338 3142.805289 97.278373 0.198407 97.079966 3136.395289 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/94 34.745700 3373.111390 97.079966 0.184483 96.895483 3366.701390 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/95 40.713405 3944.945050 96.895483 0.157442 96.738041 3938.535050 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/96 44.656630 4319.994912 96.738041 0.143540 96.594501 4313.584912 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 7/31/97 54.568718 5271.038111 96.594501 0.117467 96.477035 5264.628111 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 FLEXMN Q 12/31/97 56.265009 5428.281237 96.477035 0.113925 96.363110 5421.871237 13.42%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 6/1/83 10.000000 1000.000000 100.000000 0.000000 100.000000 1000.000000 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 6/1/84 9.197711 919.771100 100.000000 0.379442 99.620558 916.281100 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 6/1/85 11.236685 1119.404827 99.620558 0.310590 99.309968 1115.914827 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 6/1/86 14.477963 1437.806041 99.309968 0.241056 99.068912 1434.316041 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 6/1/87 16.408210 1625.543511 99.068912 0.212698 98.856214 1622.053511 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWeq n 6/1/88 15.804408 1562.363932 98.856214 0.220824 98.635389 1558.873932 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/89 19.056625 1879.657621 98.635389 0.183138 98.452251 1876.167621 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/90 21.657087 2132.188958 98.452251 0.161148 98.291102 2128.698958 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/91 22.173661 2179.473586 98.291102 0.157394 98.133709 2175.983586 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/92 24.003105 2355.513710 98.133709 0.145398 97.988311 2352.023710 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/93 26.278724 2575.007772 97.988311 0.132807 97.855504 2571.517772 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/94 25.928673 2537.263355 97.855504 0.134600 97.720904 2533.773355 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/95 28.144778 2750.333138 97.720904 0.124002 97.596902 2746.843138 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 6/1/96 35.760410 3490.105227 97.596902 0.097594 97.499308 3486.615227 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ N 12/31/97 47.858840 4666.203779 97.499308 0.072923 97.426385 4662.713779 11.13%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 8/11/83 10.000000 1000.000000 100.000000 0.000000 100.000000 1000.000000 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 8/11/84 10.206904 1020.690400 100.000000 0.341925 99.658075 1017.200400 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 8/11/85 11.434085 1139.498896 99.658075 0.305228 99.352847 1136.008896 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 8/11/86 14.161105 1406.946096 99.352847 0.246450 99.106397 1403.456096 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 8/11/87 18.762647 1859.498345 99.106397 0.186008 98.920389 1856.008345 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 8/11/88 15.404132 1523.782734 98.920389 0.226563 98.693827 1520.292734 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/89 20.657475 2038.765257 98.693827 0.168946 98.524881 2035.275257 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1A - Diversifier II Variable/Fixed Annuity Contracts
(assuming no purchase payments made after first contract year)
Diversifier II - Inception - 1A
<TABLE>
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified Beginning # of units fee & deferred at end of Ending return from
- ------------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load period Value inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 GROWEQ q 8/11/90 19.674516 1938.429339 98.524881 0.177387 98.347494 1934.939339 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/91 22.338239 2196.909820 98.347494 0.156234 98.191259 2193.419820 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/92 24.075117 2363.966058 98.191259 0.144963 98.046296 2360.476058 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/93 27.266028 2673.333064 98.046296 0.127998 97.918298 2669.843064 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/94 25.356130 2482.829102 97.918298 0.137639 97.780659 2479.339102 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/95 30.687797 3000.673015 97.780659 0.113726 97.666933 2997.183015 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/96 34.821598 3400.918681 97.666933 0.100225 97.566708 3397.428681 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 8/11/97 47.458620 4630.381315 97.566708 0.073538 97.493170 4626.891315 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 GROWEQ Q 12/31/97 48.256483 4704.677508 97.493170 0.072322 97.420848 4701.187508 11.35%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 8/6/84 10.000000 1000.000000 100.000000 0.000000 100.000000 1000.000000 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 8/6/85 11.589649 1158.964900 100.000000 0.155311 99.844689 1157.164900 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 8/6/86 12.927177 1290.709967 99.844689 0.139242 99.705447 1288.909967 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 8/6/87 13.657141 1361.691354 99.705447 0.131799 99.573648 1359.891354 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 8/6/88 14.725803 1466.301929 99.573648 0.122234 99.451414 1464.501929 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 HIBOND q 8/6/89 16.193955 1610.511721 99.451414 0.111153 99.340261 1608.711721 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/90 15.419268 1531.754112 99.340261 0.116737 99.223524 1529.954112 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/91 16.997000 1686.502241 99.223524 0.105901 99.117623 1684.702241 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/92 20.228463 2004.997173 99.117623 0.088984 99.028640 2003.197173 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/93 23.456695 2322.884596 99.028640 0.076737 98.951902 2321.084596 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/94 23.555269 2330.838681 98.951902 0.076416 98.875486 2329.038681 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/95 25.023029 2474.164165 98.875486 0.071934 98.803553 2472.364165 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/96 27.461148 2713.258984 98.803553 0.065547 98.738006 2711.458984 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 8/6/97 32.058240 3165.366680 98.738006 0.056148 98.681858 3163.566680 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 HIBOND Q 12/31/97 33.475732 3303.447424 98.681858 0.053770 98.628087 3301.647424 9.31%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 INTLEQ q 11/1/92 10.000000 1000.000000 100.000000 0.000000 100.000000 1000.000000 11.56%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 11/1/93 13.025039 1302.503900 100.000000 0.260268 99.739732 1299.113900 11.56%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 11/1/94 13.785501 1374.962176 99.739732 0.245911 99.493822 1371.572176 11.56%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 11/1/95 13.667136 1359.795590 99.493822 0.248040 99.245781 1356.405590 11.56%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 11/1/96 15.823754 1570.440828 99.245781 0.214235 99.031546 1567.050828 11.56%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 11/1/97 17.837462 1766.471445 99.031546 0.190049 98.841497 1763.081445 11.56%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 INTLEQ Q 12/31/97 18.164033 1795.360212 98.841497 1.965780 96.875717 1759.653728 11.56%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/84 4.949210 1000.000000 202.052449 0.000000 202.052449 1000.000000 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/85 5.745058 1160.803037 202.052449 0.045256 202.007192 1160.543037 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/86 6.613416 1335.957599 202.007192 0.039314 201.967878 1335.697599 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/87 6.829992 1379.438994 201.967878 0.038067 201.929811 1379.178994 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/88 7.166669 1447.164117 201.929811 0.036279 201.893532 1446.904117 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/89 7.714368 1557.481003 201.893532 0.033703 201.859829 1557.221003 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/90 8.217273 1658.737320 201.859829 0.031641 201.828188 1658.477320 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/91 8.900763 1796.424868 201.828188 0.029211 201.798977 1796.164868 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 LIMMAT q 9/10/92 9.705874 1958.635444 201.798977 0.026788 201.772189 1958.375444 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 9/10/93 10.206569 2059.401771 201.772189 0.025474 201.746715 2059.141771 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 9/10/94 10.070420 2031.674157 201.746715 0.025818 201.720897 2031.414157 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 9/10/95 10.696546 2157.716855 201.720897 0.024307 201.696590 2157.456855 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 9/10/96 11.024991 2223.703092 201.696590 0.023583 201.673007 2223.443092 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 9/10/97 11.759772 2371.628586 201.673007 0.022109 201.650898 2371.368586 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 LIMMAT Q 12/31/97 11.943129 2408.342690 201.650898 0.021770 201.629128 2408.082690 6.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 3/22/94 5.669991 1000.000000 176.367123 0.000000 176.367123 1000.000000 21.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 3/22/95 5.869042 1035.106052 176.367123 0.022150 176.344973 1034.976052 21.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 3/22/96 8.067450 1422.654251 176.344973 0.016114 176.328859 1422.524251 21.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 3/22/97 9.924453 1749.967471 176.328859 0.013099 176.315760 1749.837471 21.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 12/31/97 12.411136 2188.278873 176.315760 6.357842 169.957918 2109.370834 21.82%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 PARTNR Q 3/22/98 13.769819 2340.289768 169.957918 0.009441 169.948477 2340.159768 21.82%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 1A - Diversifier II Variable/ Diversifier II - Inception - 1A
Fixed Annuity Contracts
(assuming no purchase payments made
after first contract year)
<TABLE>
<CAPTION>
Average
Q=qualified $30 contract # of units Annual Total
N=nonqualified Beginning # of unis fee & deferred at end of Ending return from
- ------------------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load period Value inception
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 QUALBD q 3/17/87 10.014650 1000.000000 99.853714 0.000000 99.853714 1000.000000 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 QUALBD q 3/17/88 10.319857 1030.476053 99.853714 0.137599 99.716116 1029.056053 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/89 10.562833 1053.284675 99.716116 0.134434 99.581682 1051.864675 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 QUALBD q 3/17/90 11.634482 1158.581285 99.581682 0.122051 99.459631 1157.161285 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 QUALBD q 3/17/91 12.757872 1268.893240 99.459631 0.111304 99.348327 1267.473240 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/92 13.917758 1382.705974 99.348327 0.102028 99.246299 1381.285974 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/93 15.783929 1566.496539 99.246299 0.089965 99.156334 1565.076539 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/94 16.204383 1606.767216 99.156334 0.087631 99.068704 1605.347216 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/95 16.500701 1634.703056 99.068704 0.086057 98.982647 1633.283056 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/96 18.128405 1794.397506 98.982647 0.078330 98.904317 1792.977506 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/97 18.883970 1867.706146 98.904317 0.075196 98.829120 1866.286146 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 12/31/97 20.260333 2002.310891 98.829120 0.070088 98.759033 2000.890891 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a DIV2 QUALBD Q 3/17/98 20.702975 2044.605787 98.759033 0.068589 98.690444 2043.185787 6.63%
- ------------------------------------------------------------------------------------------------------------------------------------
1a div2 SMLCAP q 3/1/95 10.010905 1000.000000 99.891069 0.000000 99.891069 1000.000000 16.13%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 3/1/96 11.585005 1157.238531 99.891069 0.060423 99.830646 1156.538531 16.13%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 3/1/97 13.363027 1334.039616 99.830646 0.052383 99.778263 1333.339616 16.13%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 12/31/97 16.051216 1601.562444 99.778263 4.533632 95.244630 1528.792134 16.13%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 SMLCAP Q 3/1/98 16.909748 1610.562697 95.244630 0.041396 95.203234 1609.862697 16.13%
- ------------------------------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 3/17/87 10.134586 1000.000000 98.672013 0.000000 98.672013 1000.000000 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 3/17/88 10.617116 1047.612206 98.672013 0.408774 98.263239 1043.272206 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/89 12.355591 1214.100391 98.263239 0.351258 97.911981 1209.760391 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 3/17/90 12.933143 1266.309651 97.911981 0.335572 97.576409 1261.969651 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a div2 VALUEQ q 3/17/91 13.643553 1331.288908 97.576409 0.318099 97.258310 1326.948908 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/92 15.775871 1534.334553 97.258310 0.275104 96.983206 1529.994553 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/93 17.218502 1669.905533 96.983206 0.252054 96.731152 1665.565533 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/94 18.356274 1775.623529 96.731152 0.236431 96.494721 1771.283529 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/95 19.989840 1928.914024 96.494721 0.217110 96.277610 1924.574024 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/96 26.451059 2546.644748 96.277610 0.164077 96.113534 2542.304748 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/97 31.932448 3069.140414 96.113534 0.135912 95.977622 3064.800414 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 12/31/97 38.038246 3650.820385 95.977622 0.114096 95.863526 3646.480385 12.73%
- ------------------------------------------------------------------------------------------------------------------------
1a DIV2 VALUEQ Q 3/17/98 42.061529 4032.166479 95.863526 0.103182 95.760344 4027.826479 12.73%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - Inception - 1B
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- -------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b div2 BALFND q 2/28/89 7.572278 1114.951194 147.241186 0.129419
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/90 8.499080 1250.314673 147.111767 0.115307
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/91 9.751932 1433.499482 146.996460 0.100493
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/92 10.022615 1472.281724 146.895967 0.097779
- -------------------------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/93 10.787779 1583.626412 146.798188 0.090844
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/94 10.674849 1566.078752 146.707345 0.091805
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/95 12.804422 1877.327248 146.615540 0.076536
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/96 13.816279 2024.623765 146.539004 0.070931
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/97 15.550604 2277.667006 146.468073 2.040339
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 16.173137 2335.849532 144.427734 0.060594
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/98 5.888807 1000.000000 169.813682 0.000000
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/87 5.810044 986.624965 169.813682 0.335626
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/88 7.698169 1304.670720 169.478056 0.253307
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/89 6.964679 1178.596059 169.224749 0.279984
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/90 9.346041 1578.964703 168.944765 0.208644
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/91 10.053957 1696.465703 168.736121 0.193953
- -------------------------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/92 10.849833 1828.654368 168.542167 0.179726
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/93 10.931772 1840.499819 168.362441 0.178379
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/94 13.831774 2326.283934 168.184062 0.140980
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/95 13.573655 2280.958822 168.043082 0.143661
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/96 13.272217 2228.397556 167.899421 0.146923
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/97 12.689870 2128.757392 167.752498 0.153666
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 10.000000 1000.000000 100.000000 0.000000
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 10/1/96 13.806364 1380.636400 100.000000 6.306519
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 10/1/97 9.276035 1000.000000 107.804682 0.000000
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/97 11.085709 1195.091329 107.804682 0.006314
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/89 8.974573 967.444316 107.798367 5.828912
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/90 6.153672 1000.000000 162.504599 0.000000
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/91 6.151043 999.572775 162.504599 0.055275
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/92 7.592009 1233.316728 162.449324 0.044784
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/93 8.409222 1365.695829 162.404540 0.040432
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/94 9.747655 1582.669309 162.364108 0.034880
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 9/6/95 10.087746 1637.536018 162.329228 0.033704
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 9/6/96 10.750516 1744.760622 162.295524 0.031626
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 9/6/97 11.579895 1878.998891 162.263897 0.029361
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 14.622017 2372.196142 162.234536 0.023253
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/86 15.040064 2439.668082 162.211283 2.212459
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/87 4.238521 1000.000000 235.931354 0.000000
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/88 5.019478 1184.252243 235.931354 0.316766
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/89 5.047448 1189.252383 235.614588 0.315011
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/90 6.178431 1453.782205 235.299578 0.257347
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/91 4.543676 1067.955743 235.042231 0.349937
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/92 5.881881 1380.432144 234.692294 0.270322
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/93 6.591041 1545.084830 234.421972 0.241237
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 10/9/95 8.467128 1982.838264 234.180736 0.187785
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 10/9/96 11.145047 2607.862432 233.992951 0.142664
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 10/9/97 12.785988 2990.006955 233.850286 0.124355
- -------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 16.956827 3963.250185 233.725931 0.093768
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/86 17.020857 3976.619652 233.632164 0.093415
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/87 3.868619 1000.000000 258.490174 0.000000
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/88 4.875669 1260.312530 258.490174 0.412251
- -------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/89 4.588422 1184.170421 258.077923 0.438059
- -------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b div2 BALFND q 2/28/89 147.111767 1113.971194 9.58%
- --------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/90 146.996460 1249.334673 9.58%
- --------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/91 146.895967 1432.519482 9.58%
- --------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/92 146.798188 1471.301724 9.58%
- --------------------------------------------------------------------------------------------------------
1b div2 BALFND q 2/28/93 146.707345 1582.646412 9.58%
- --------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/94 146.615540 1565.098752 9.58%
- --------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/95 146.539004 1876.347248 9.58%
- --------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/96 146.468073 2023.643765 9.58%
- --------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/97 144.427734 2245.938501 9.58%
- --------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 12/31/97 144.367140 2334.869532 9.58%
- --------------------------------------------------------------------------------------------------------
1b DIV2 BALFND Q 2/28/98 169.813682 1000.000000 9.58%
- --------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/87 169.478056 984.674965 7.74%
- --------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/88 169.224749 1302.720720 7.74%
- --------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/89 168.944765 1176.646059 7.74%
- --------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/90 168.736121 1577.014703 7.74%
- --------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/91 168.542167 1694.515703 7.74%
- --------------------------------------------------------------------------------------------------------
1b div2 CAPAPP q 11/20/92 168.362441 1826.704368 7.74%
- --------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/93 168.184062 1838.549819 7.74%
- --------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/94 168.043082 2324.333934 7.74%
- --------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/95 167.899421 2279.008822 7.74%
- --------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/96 167.752498 2226.447556 7.74%
- --------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 11/20/97 167.598832 2126.807392 7.74%
- --------------------------------------------------------------------------------------------------------
1b DIV2 CAPAPP Q 12/31/97 100.000000 1000.000000 7.74%
- --------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 10/1/96 93.693481 1293.566307 -6.85%
- --------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 10/1/97 107.804682 1000.000000 -6.85%
- --------------------------------------------------------------------------------------------------------
1b DIV2 EMGMKT Q 12/31/97 107.798367 1195.021329 -6.85%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/89 101.969456 915.132323 11.13%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/90 162.504599 1000.000000 11.13%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/91 162.449324 999.232775 11.13%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/92 162.404540 1232.976728 11.13%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/93 162.364108 1365.355829 11.13%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDASM q 9/6/94 162.329228 1582.329309 11.13%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 9/6/95 162.295524 1637.196018 11.13%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 9/6/96 162.263897 1744.420622 11.13%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 9/6/97 162.234536 1878.658891 11.13%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDASM Q 12/31/97 162.211283 2371.856142 11.13%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/86 159.998825 2406.392563 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/87 235.931354 1000.000000 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/88 235.614588 1182.662243 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/89 235.299578 1187.662383 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/90 235.042231 1452.192205 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/91 234.692294 1066.365743 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/92 234.421972 1378.842144 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDEQI q 10/9/93 234.180736 1543.494830 13.07%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 10/9/95 233.992951 1981.248264 13.07%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 10/9/96 233.850286 2606.272432 13.07%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 10/9/97 233.725931 2988.416955 13.07%
- --------------------------------------------------------------------------------------------------------
1b DIV2 FIDEQI Q 12/31/97 233.632164 3961.660185 13.07%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/86 233.538749 3975.029652 14.01%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/87 258.490174 1000.000000 14.01%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/88 258.077923 1258.302530 14.01%
- --------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/89 257.639864 1182.160421 14.01%
- --------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - Inception - 1B
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of unis fee & deferred
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b div2 FIDGRO q 10/9/90 6.036553 1555.256695 257.639864 0.332971
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/91 4.755716 1223.678507 257.306893 0.422649
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/92 6.488444 1666.779028 256.884243 0.309782
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/93 6.847898 1756.995744 256.574462 0.293521
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 10/9/95 9.336172 2392.682947 256.280941 0.215292
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 10/9/96 12.054638 3086.778709 256.065650 0.166741
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 10/9/97 13.936113 3566.236108 255.898909 0.144230
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/97 17.656557 4515.747070 255.754679 0.113839
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/92 17.072612 4364.456879 255.640840 0.117732
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/93 4.845444 1000.000000 206.379436 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/94 5.486802 1132.363102 206.379436 0.023693
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/95 5.737449 1183.955550 206.355743 0.022658
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/96 6.880634 1419.702438 206.333085 0.018894
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/97 8.306792 1713.809072 206.314191 0.015650
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/97 11.449351 2361.984409 206.298541 0.011354
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/84 12.162415 2508.950376 206.287187 5.580443
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/85 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/86 11.456214 1145.621400 100.000000 0.559522
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/87 13.905894 1382.808751 99.440478 0.460956
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/88 17.320528 1714.377594 98.979523 0.370081
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/89 19.010671 1874.631652 98.609442 0.337179
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/90 23.634078 2322.574319 98.272263 0.271219
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/91 23.917918 2343.980935 98.001044 0.268000
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/92 26.982387 2637.070819 97.733044 0.237562
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/93 29.524429 2878.498428 97.495482 0.217108
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/94 32.307338 3142.805289 97.278373 0.198407
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/95 34.745700 3373.111390 97.079966 0.184483
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/96 40.713405 3944.945050 96.895483 0.157442
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/97 44.656630 4319.994912 96.738041 0.143540
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 54.568718 5271.038111 96.594501 0.117467
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/83 56.265009 5428.281237 96.477035 0.113925
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/84 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/85 9.197711 919.771100 100.000000 0.379442
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/86 11.236685 1119.404827 99.620558 0.310590
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/87 14.477963 1437.806041 99.309968 0.241056
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/88 16.408210 1625.543511 99.068912 0.212698
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/89 15.804408 1562.363932 98.856214 0.220824
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/90 19.056625 1879.657621 98.635389 0.183138
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/91 21.657087 2132.188958 98.452251 0.161148
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/92 22.173661 2179.473586 98.291102 0.157394
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/93 24.003105 2355.513710 98.133709 0.145398
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/94 26.278724 2575.007772 97.988311 0.132807
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/95 25.928673 2537.263355 97.855504 0.134600
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/96 28.144778 2750.333138 97.720904 0.124002
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/97 35.760410 3490.105227 97.596902 0.097594
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 47.858840 4666.203779 97.499308 0.072923
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/83 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/84 10.206904 1020.690400 100.000000 0.341925
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/85 11.434085 1139.498896 99.658075 0.305228
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/86 14.161105 1406.946096 99.352847 0.246450
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/87 18.762647 1859.498345 99.106397 0.186008
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/88 15.404132 1523.782734 98.920389 0.226563
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Diversifier II - inception - 1B
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- -------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b div2 FIDGRO q 10/9/90 257.306893 1553.246695 14.01%
- -------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/91 256.884243 1221.668507 14.01%
- -------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/92 256.574462 1664.769028 14.01%
- -------------------------------------------------------------------------------------------------------
1b div2 FIDGRO q 10/9/93 256.280941 1754.985744 14.01%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 10/9/95 256.065650 2390.672947 14.01%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 10/9/96 255.898909 3084.768709 14.01%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 10/9/97 255.754679 3564.226108 14.01%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDGRO Q 12/31/97 255.640840 4513.737070 14.01%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/92 255.523108 4362.446879 18.16%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/93 206.379436 1000.000000 18.16%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/94 206.355743 1132.233102 18.16%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/95 206.333085 1183.825550 18.16%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/96 206.314191 1419.572438 18.16%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 8/27/97 206.298541 1713.679072 18.16%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FIDIND Q 12/31/97 206.287187 2361.854409 18.16%
- -------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/84 200.706744 2441.078715 13.42%
- -------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/85 100.000000 1000.000000 13.42%
- -------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/86 99.440478 1139.211400 13.42%
- -------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/87 98.979523 1376.398751 13.42%
- -------------------------------------------------------------------------------------------------------
1b div2 FLEXMN q 7/31/88 98.609442 1707.967594 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/89 98.272263 1868.221652 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/90 98.001044 2316.164319 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/91 97.733044 2337.570935 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/92 97.495482 2630.660819 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/93 97.278373 2872.088428 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/94 97.079966 3136.395289 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/95 96.895483 3366.701390 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/96 96.738041 3938.535050 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 7/31/97 96.594501 4313.584912 13.42%
- -------------------------------------------------------------------------------------------------------
1b DIV2 FLEXMN Q 12/31/97 96.477035 5264.628111 13.42%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/83 96.363110 5421.871237 11.13%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/84 100.000000 1000.000000 11.13%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/85 99.620558 916.281100 11.13%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/86 99.309968 1115.914827 11.13%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/87 99.068912 1434.316041 11.13%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWeq n 6/1/88 98.856214 1622.053511 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/89 98.635389 1558.873932 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/90 98.452251 1876.167621 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/91 98.291102 2128.698958 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/92 98.133709 2175.983586 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/93 97.988311 2352.023710 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/94 97.855504 2571.517772 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/95 97.720904 2533.773355 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/96 97.596902 2746.843138 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 6/1/97 97.499308 3486.615227 11.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ N 12/31/97 97.426385 4662.713779 11.13%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/83 100.000000 1000.000000 11.35%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/84 99.658075 1017.200400 11.35%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/85 99.352847 1136.008896 11.35%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/86 99.106397 1403.456096 11.35%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/87 98.920389 1856.008345 11.35%
- -------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/88 98.693827 1520.292734 11.35%
- -------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - Inception - 1B
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 GROWEQ Q 8/11/89 20.657475 2038.765257 98.693827 0.168946
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/90 19.674516 1938.429339 98.524881 0.177387
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/91 22.338239 2196.909820 98.347494 0.156234
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/92 24.075117 2363.966058 98.191259 0.144963
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/93 27.266028 2673.333064 98.046296 0.127998
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/94 25.356130 2482.829102 97.918298 0.137639
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/95 30.687797 3000.673015 97.780659 0.113726
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/96 34.821598 3400.918681 97.666933 0.100225
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/97 47.458620 4630.381315 97.566708 0.073538
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 48.256483 4704.677508 97.493170 0.072322
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/84 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/85 11.589649 1158.964900 100.000000 0.155311
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/86 12.927177 1290.709967 99.844689 0.139242
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/87 13.657141 1361.691354 99.705447 0.131799
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/88 14.725803 1466.301929 99.573648 0.122234
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/89 16.193955 1610.511721 99.451414 0.111153
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/90 15.419268 1531.754112 99.340261 0.116737
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/91 16.997000 1686.502241 99.223524 0.105901
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/92 20.228463 2004.997173 99.117623 0.088984
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/93 23.456695 2322.884596 99.028640 0.076737
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/94 23.555269 2330.838681 98.951902 0.076416
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/95 25.023029 2474.164165 98.875486 0.071934
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/96 27.461148 2713.258984 98.803553 0.065547
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/97 32.058240 3165.366680 98.738006 0.056148
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 33.475732 3303.447424 98.681858 0.053770
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 INTLEQ q 11/1/92 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/93 13.025039 1302.503900 100.000000 0.260268
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/94 13.785501 1374.962176 99.739732 0.245911
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/95 13.667136 1359.795590 99.493822 0.248040
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/96 15.823754 1570.440828 99.245781 0.214235
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/97 17.837462 1766.471445 99.031546 0.190049
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 18.164033 1795.360212 98.841497 2.855353
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/84 4.949210 1000.000000 202.052449 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/85 5.745058 1160.803037 202.052449 0.045256
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/86 6.613416 1335.957599 202.007192 0.039314
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/87 6.829992 1379.438994 201.967878 0.038067
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/88 7.166669 1447.164117 201.929811 0.036279
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/89 7.714368 1557.481003 201.893532 0.033703
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/90 8.217273 1658.737320 201.859829 0.031641
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/91 8.900763 1796.424868 201.828188 0.029211
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/92 9.705874 1958.635444 201.798977 0.026788
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/93 10.206569 2059.401771 201.772189 0.025474
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/94 10.070420 2031.674157 201.746715 0.025818
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/95 10.696546 2157.716855 201.720897 0.024307
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/96 11.024991 2223.703092 201.696590 0.023583
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/97 11.759772 2371.628586 201.673007 0.022109
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 11.943129 2408.342690 201.650898 0.021770
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/94 5.669991 1000.000000 176.367123 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/95 5.869042 1035.106052 176.367123 0.022150
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/96 8.067450 1422.654251 176.344973 0.016114
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/97 9.924453 1749.967471 176.328859 0.013099
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/97 12.411136 2188.278873 176.315760 6.357842
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Diversifier II - inception - 1B
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- --------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 GROWEQ Q 8/11/89 98.524881 2035.275257 11.35%
- --------------------------------------------------------------------------------------------------------
1b div2 GROWEQ q 8/11/90 98.347494 1934.939339 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/91 98.191259 2193.419820 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/92 98.046296 2360.476058 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/93 97.918298 2669.843064 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/94 97.780659 2479.339102 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/95 97.666933 2997.183015 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/96 97.566708 3397.428681 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 8/11/97 97.493170 4626.891315 11.35%
- --------------------------------------------------------------------------------------------------------
1b DIV2 GROWEQ Q 12/31/97 97.420848 4701.187508 11.35%
- --------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/84 100.000000 1000.000000 9.31%
- --------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/85 99.844689 1157.164900 9.31%
- --------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/86 99.705447 1288.909967 9.31%
- --------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/87 99.573648 1359.891354 9.31%
- --------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/88 99.451414 1464.501929 9.31%
- --------------------------------------------------------------------------------------------------------
1b div2 HIBOND q 8/6/89 99.340261 1608.711721 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/90 99.223524 1529.954112 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/91 99.117623 1684.702241 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/92 99.028640 2003.197173 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/93 98.951902 2321.084596 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/94 98.875486 2329.038681 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/95 98.803553 2472.364165 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/96 98.738006 2711.458984 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 8/6/97 98.681858 3163.566680 9.31%
- --------------------------------------------------------------------------------------------------------
1b DIV2 HIBOND Q 12/31/97 98.628087 3301.647424 9.31%
- --------------------------------------------------------------------------------------------------------
1b div2 INTLEQ q 11/1/92 100.000000 1000.000000 11.36%
- --------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/93 99.739732 1299.113900 11.36%
- --------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/94 99.493822 1371.572176 11.36%
- --------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/95 99.245781 1356.405590 11.36%
- --------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/96 99.031546 1567.050828 11.36%
- --------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 11/1/97 98.841497 1763.081445 11.36%
- --------------------------------------------------------------------------------------------------------
1b DIV2 INTLEQ Q 12/31/97 95.986144 1743.495486 11.36%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/84 202.052449 1000.000000 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/85 202.007192 1160.543037 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/86 201.967878 1335.697599 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/87 201.929811 1379.178994 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/88 201.893532 1446.904117 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/89 201.859829 1557.221003 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/90 201.828188 1658.477320 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/91 201.798977 1796.164868 6.82%
- --------------------------------------------------------------------------------------------------------
1b div2 LIMMAT q 9/10/92 201.772189 1958.375444 6.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/93 201.746715 2059.141771 6.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/94 201.720897 2031.414157 6.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/95 201.696590 2157.456855 6.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/96 201.673007 2223.443092 6.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 9/10/97 201.650898 2371.368586 6.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 LIMMAT Q 12/31/97 201.629128 2408.082690 6.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/94 176.367123 1000.000000 21.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/95 176.344973 1034.976052 21.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/96 176.328859 1422.524251 21.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 3/22/97 176.315760 1749.837471 21.82%
- --------------------------------------------------------------------------------------------------------
1b DIV2 PARTNR Q 12/31/97 169.957918 2109.370834 21.82%
- --------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 1B - Diversifier II Variable/Fixed Annuity Contracts
(assuming purchase payments made after first contract year)
Diversifier II - Inception - 1B
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ---------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 PARTNR Q 3/22/98 13.769819 2340.289768 169.957918 0.009441
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/87 10.014650 1000.000000 99.853714 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/88 10.319857 1030.476053 99.853714 0.137599
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/89 10.562833 1053.284675 99.716116 0.134434
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/90 11.634482 1158.581285 99.581682 0.122051
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/91 12.757872 1268.893240 99.459631 0.111304
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/92 13.917758 1382.705974 99.348327 0.102028
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/93 15.783929 1566.496539 99.246299 0.089965
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/94 16.204383 1606.767216 99.156334 0.087631
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/95 16.500701 1634.703056 99.068704 0.086057
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/96 18.128405 1794.397506 98.982647 0.078330
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/97 18.883970 1867.706146 98.904317 0.075196
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 20.260333 2002.310891 98.829120 0.070088
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/98 20.702975 2044.605787 98.759033 0.068589
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 SMLCAP q 3/1/95 10.010905 1000.000000 99.891069 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 3/1/96 11.585005 1157.238531 99.891069 0.060423
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 3/1/97 13.363027 1334.039616 99.830646 0.052383
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 16.051216 1601.562444 99.778263 4.533632
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 3/1/98 16.909748 1610.562697 95.244630 0.041396
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/87 10.134586 1000.000000 98.672013 0.000000
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/88 10.617116 1047.612206 98.672013 0.408774
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/89 12.355591 1214.100391 98.263239 0.351258
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/90 12.933143 1266.309651 97.911981 0.335572
- ---------------------------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/91 13.643553 1331.288908 97.576409 0.318099
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/92 15.775871 1534.334553 97.258310 0.275104
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/93 17.218502 1669.905533 96.983206 0.252054
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/94 18.356274 1775.623529 96.731152 0.236431
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/95 19.989840 1928.914024 96.494721 0.217110
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/96 26.451059 2546.644748 96.277610 0.164077
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/97 31.932448 3069.140414 96.113534 0.135912
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 38.038246 3650.820385 95.977622 0.114096
- ---------------------------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/98 42.061529 4032.166479 95.863526 0.103182
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- -------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1b DIV2 PARTNR Q 3/22/98 169.948477 2340.159768 21.82%
- -------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/87 99.853714 1000.000000 6.63%
- -------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/88 99.716116 1029.056053 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/89 99.581682 1051.864675 6.63%
- -------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/90 99.459631 1157.161285 6.63%
- -------------------------------------------------------------------------------------------------------
1b div2 QUALBD q 3/17/91 99.348327 1267.473240 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/92 99.246299 1381.285974 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/93 99.156334 1565.076539 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/94 99.068704 1605.347216 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/95 98.982647 1633.283056 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/96 98.904317 1792.977506 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/97 98.829120 1866.286146 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 12/31/97 98.759033 2000.890891 6.63%
- -------------------------------------------------------------------------------------------------------
1b DIV2 QUALBD Q 3/17/98 98.690444 2043.185787 6.63%
- -------------------------------------------------------------------------------------------------------
1b div2 SMLCAP q 3/1/95 99.891069 1000.000000 16.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 3/1/96 99.830646 1156.538531 16.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 3/1/97 99.778263 1333.339616 16.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 12/31/96 95.244630 1528.792134 16.13%
- -------------------------------------------------------------------------------------------------------
1b DIV2 SMLCAP Q 3/1/98 95.203234 1609.862697 16.13%
- -------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/87 98.672013 1000.000000 12.73%
- -------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/88 98.263239 1043.272206 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/89 97.911981 1209.760391 12.73%
- -------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/90 97.576409 1261.969651 12.73%
- -------------------------------------------------------------------------------------------------------
1b div2 VALUEQ q 3/17/91 97.258310 1326.948908 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/92 96.983206 1529.994553 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/93 96.731152 1665.565533 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/94 96.494721 1771.283529 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/95 96.277610 1924.574024 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/96 96.113534 2542.304748 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/97 95.977622 3064.800414 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 12/31/97 95.863526 3646.480385 12.73%
- -------------------------------------------------------------------------------------------------------
1b DIV2 VALUEQ Q 3/17/98 95.760344 4027.826479 12.73%
- -------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - Inception - 1C
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of unis fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c div2 BALFND q 2/28/89 6.791578 1000.000000 147.241186 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/90 7.572278 1114.951194 147.241186 0.129419
- --------------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/91 8.499080 1250.314673 147.111767 0.115307
- --------------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/92 9.751932 1433.499482 146.996460 0.100493
- --------------------------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/93 10.022615 1472.281724 146.895967 0.097779
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/94 10.787779 1583.626412 146.798188 0.090844
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/95 10.674849 1566.078752 146.707345 0.091805
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/96 12.804422 1877.327248 146.615540 0.076536
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/97 13.816279 2024.623765 146.539004 0.070931
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 15.550604 2277.667006 146.468073 3.278329
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/98 16.173137 2315.827347 143.189744 0.060594
- --------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/87 5.888807 1000.000000 169.813682 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/88 5.810044 986.624965 169.813682 0.335626
- --------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/89 7.698169 1304.670720 169.478056 0.253307
- --------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/90 6.964679 1178.596059 169.224749 0.279984
- --------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/91 9.346041 1578.964703 168.944765 0.208644
- --------------------------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/92 10.053957 1696.465703 168.736121 0.193953
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/93 10.849833 1828.654368 168.542167 0.179726
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/94 10.931772 1840.499819 168.362441 0.178379
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/95 13.831774 2326.283934 168.184062 0.140980
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/96 13.573655 2280.958822 168.043082 0.143661
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/97 13.272217 2228.397556 167.899421 0.146923
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 12.689870 2128.757392 167.752498 0.153666
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 10/1/96 9.276035 1000.000000 107.804682 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 10/1/97 11.085709 1195.091329 107.804682 0.006314
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 8.974573 967.444316 107.798367 4.840589
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/89 6.153672 1000.000000 162.504599 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/90 6.151043 999.572775 162.504599 0.055275
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/91 7.592009 1233.316728 162.449324 0.044784
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/92 8.409222 1365.695829 162.404540 0.040432
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/93 9.747655 1582.669309 162.364108 0.034880
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/94 10.087746 1637.536018 162.329228 0.033704
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 9/6/95 10.750516 1744.760622 162.295524 0.031626
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 9/6/96 11.579895 1878.998891 162.263897 0.029361
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 9/7/97 14.622017 2372.196142 162.234536 0.023253
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 15.040064 2439.668082 162.211283 3.347060
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/86 4.238521 1000.000000 235.931354 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/87 5.019478 1184.252243 235.931354 0.316766
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/88 5.047448 1189.252383 235.614588 0.315011
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/89 6.178431 1453.782205 235.299578 0.257347
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/90 4.543676 1067.955743 235.042231 0.349937
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/91 5.881881 1380.432144 234.692294 0.270322
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/92 6.591041 1545.084830 234.421972 0.241237
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/93 8.467128 1982.838264 234.180736 0.187785
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 10/9/95 11.145047 2607.862432 233.992951 0.142664
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 10/9/96 12.785988 2990.006955 233.850286 0.124355
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 10/9/97 16.956827 3963.250185 233.725931 0.093768
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 17.020857 3976.619652 233.632164 0.093415
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/86 3.868619 1000.000000 258.490174 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/87 4.875669 1260.312530 258.490174 0.412251
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/88 4.588422 1184.170421 258.077923 0.438059
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/89 6.036553 1555.256695 257.639864 0.332971
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- -------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c div2 BALFND q 2/28/89 147.241186 1000.000000 9.47%
- -------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/90 147.111767 1113.971194 9.47%
- -------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/91 146.996460 1249.334673 9.47%
- -------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/92 146.895967 1432.519482 9.47%
- -------------------------------------------------------------------------------------------------------
1c div2 BALFND q 2/28/93 146.798188 1471.301724 9.47%
- -------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/94 146.707345 1582.646412 9.47%
- -------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/95 146.615540 1565.098752 9.47%
- -------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/96 146.539004 1876.347248 9.47%
- -------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/97 146.468073 2023.643765 9.47%
- -------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 12/31/97 143.189744 2226.687006 9.47%
- -------------------------------------------------------------------------------------------------------
1c DIV2 BALFND Q 2/28/98 143.129150 2314.847347 9.47%
- -------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/87 169.813682 1000.000000 7.74%
- -------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/88 169.478056 984.674965 7.74%
- -------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/89 169.224749 1302.720720 7.74%
- -------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/90 168.944765 1176.646059 7.74%
- -------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/91 168.736121 1577.014703 7.74%
- -------------------------------------------------------------------------------------------------------
1c div2 CAPAPP q 11/20/92 168.542167 1694.515703 7.74%
- -------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/93 168.362441 1826.704368 7.74%
- -------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/94 168.184062 1838.549819 7.74%
- -------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/95 168.043082 2324.333934 7.74%
- -------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/96 167.899421 2279.008822 7.74%
- -------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 11/20/97 167.752498 2226.447556 7.74%
- -------------------------------------------------------------------------------------------------------
1c DIV2 CAPAPP Q 12/31/97 167.598832 2126.807392 7.74%
- -------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 10/1/96 107.804682 1000.000000 -6.13%
- -------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 10/1/97 107.798367 1195.021329 -6.13%
- -------------------------------------------------------------------------------------------------------
1c DIV2 EMGMKT Q 12/31/97 102.957779 924.002100 -6.13%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/89 162.504599 1000.000000 11.03%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/90 162.449324 999.232775 11.03%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/91 162.404540 1232.976728 11.03%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/92 162.364108 1365.355829 11.03%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/93 162.329228 1582.329309 11.03%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDASM q 9/6/94 162.295524 1637.196018 11.03%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 9/6/95 162.263897 1744.420622 11.03%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 9/6/96 162.234536 1878.658891 11.03%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 9/7/97 162.211283 2371.856142 11.03%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDASM Q 12/31/97 158.864223 2389.328082 11.03%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/86 235.931354 1000.000000 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/87 235.614588 1182.662243 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/88 235.299578 1187.662383 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/89 235.042231 1452.192205 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/90 234.692294 1066.365743 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/91 234.421972 1378.842144 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/92 234.180736 1543.494830 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDEQI q 10/9/93 233.992951 1981.248264 13.07%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 10/9/95 233.850286 2606.272432 13.07%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 10/9/96 233.725931 2988.416955 13.07%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 10/9/97 233.632164 3961.660185 13.07%
- -------------------------------------------------------------------------------------------------------
1c DIV2 FIDEQI Q 12/31/97 233.538749 3975.029652 13.07%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/86 258.490174 1000.000000 14.01%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/87 258.077923 1258.302530 14.01%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/88 257.639864 1182.160421 14.01%
- -------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/89 257.306893 1553.246695 14.01%
- -------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - Inception - 1C
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of unis fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c div2 FIDGRO q 10/9/90 4.755716 1223.678507 257.306893 0.422649
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/91 6.488444 1666.779028 256.884243 0.309782
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/92 6.847898 1756.995744 256.574462 0.293521
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/93 9.336172 2392.682947 256.280941 0.215292
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 10/9/95 12.054638 3086.778709 256.065650 0.166741
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 10/9/96 13.936113 3566.236108 255.898909 0.144230
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 10/9/97 17.656557 4515.747070 255.754679 0.113839
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/97 17.072612 4364.456879 255.640840 0.117732
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/92 4.845444 1000.000000 206.379436 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/93 5.486802 1132.363102 206.379436 0.023693
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/94 5.737449 1183.955550 206.355743 0.022658
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/95 6.880634 1419.702438 206.333085 0.018894
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/96 8.306792 1713.809072 206.314191 0.015650
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/97 11.449351 2361.984409 206.298541 0.011354
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 12.162415 2508.950376 206.287187 4.121714
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/84 10.000000 1000.000000 100.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/85 11.456214 1145.621400 100.000000 0.559522
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/86 13.905894 1382.808751 99.440478 0.460956
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/87 17.320528 1714.377594 98.979523 0.370081
- --------------------------------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/88 19.010671 1874.631652 98.609442 0.337179
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/89 23.634078 2322.574319 98.272263 0.271219
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/90 23.917918 2343.980935 98.001044 0.268000
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/91 26.982387 2637.070819 97.733044 0.237562
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/92 29.524429 2878.498428 97.495482 0.217108
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/93 32.307338 3142.805289 97.278373 0.198407
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/94 34.745700 3373.111390 97.079966 0.184483
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/95 40.713405 3944.945050 96.895483 0.157442
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/96 44.656630 4319.994912 96.738041 0.143540
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/97 54.568718 5271.038111 96.594501 0.117467
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 56.265009 5428.281237 96.477035 0.113925
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/83 10.000000 1000.000000 100.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/84 9.197711 919.771100 100.000000 0.379442
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/85 11.236685 1119.404827 99.620558 0.310590
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/86 14.477963 1437.806041 99.309968 0.241056
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/87 16.408210 1625.543511 99.068912 0.212698
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/88 15.804408 1562.363932 98.856214 0.220824
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/89 19.056625 1879.657621 98.635389 0.183138
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/90 21.657087 2132.188958 98.452251 0.161148
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/91 22.173661 2179.473586 98.291102 0.157394
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/92 24.003105 2355.513710 98.133709 0.145398
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/93 26.278724 2575.007772 97.988311 0.132807
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/94 25.928673 2537.263355 97.855504 0.134600
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/95 28.144778 2750.333138 97.720904 0.124002
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/96 35.760410 3490.105227 97.596902 0.097594
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 47.858840 4666.203779 97.499308 0.072923
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/83 10.000000 1000.000000 100.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/84 10.206904 1020.690400 100.000000 0.341925
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/85 11.434085 1139.498896 99.658075 0.305228
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/86 14.161105 1406.946096 99.352847 0.246450
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/87 18.762647 1859.498345 99.106397 0.186008
- --------------------------------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/88 15.404132 1523.782734 98.920389 0.226563
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/89 20.657475 2038.765257 98.693827 0.168946
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- ------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c div2 FIDGRO q 10/9/90 256.884243 1221.668507 14.01%
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/91 256.574462 1664.769028 14.01%
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/92 256.280941 1754.985744 14.01%
- -----------------------------------------------------------------------------------------------------
1c div2 FIDGRO q 10/9/93 256.065650 2390.672947 14.01%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 10/9/95 255.898909 3084.768709 14.01%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 10/9/96 255.754679 3564.226108 14.01%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 10/9/97 255.640840 4513.737070 14.01%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDGRO Q 12/31/97 255.523108 4362.446879 14.01%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/92 206.379436 1000.000000 18.32%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/93 206.355743 1132.233102 18.32%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/94 206.333085 1183.825550 18.32%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/95 206.314191 1419.572438 18.32%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/96 206.298541 1713.679072 18.32%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 8/27/97 206.287187 2361.854409 18.32%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FIDIND Q 12/31/97 202.165473 2458.820376 18.32%
- -----------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/84 100.000000 1000.000000 13.42%
- -----------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/85 99.440478 1139.211400 13.42%
- -----------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/86 98.979523 1376.398751 13.42%
- -----------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/87 98.609442 1707.967594 13.42%
- -----------------------------------------------------------------------------------------------------
1c div2 FLEXMN q 7/31/88 98.272263 1868.221652 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/89 98.001044 2316.164319 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/90 97.733044 2337.570935 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/91 97.495482 2630.660819 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/92 97.278373 2872.088428 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/93 97.079966 3136.395289 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/94 96.895483 3366.701390 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/95 96.738041 3938.535050 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/96 96.594501 4313.584912 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 7/31/97 96.477035 5264.628111 13.42%
- -----------------------------------------------------------------------------------------------------
1c DIV2 FLEXMN Q 12/31/97 96.363110 5421.871237 13.42%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/83 100.000000 1000.000000 11.13%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/84 99.620558 916.281100 11.13%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/85 99.309968 1115.914827 11.13%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/86 99.068912 1434.316041 11.13%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/87 98.856214 1622.053511 11.13%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWeq n 6/1/88 98.635389 1558.873932 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/89 98.452251 1876.167621 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/90 98.291102 2128.698958 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/91 98.133709 2175.983586 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/92 97.988311 2352.023710 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/93 97.855504 2571.517772 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/94 97.720904 2533.773355 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/95 97.596902 2746.843138 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 6/1/96 97.499308 3486.615227 11.13%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ N 12/31/97 97.426385 4662.713779 11.13%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/83 100.000000 1000.000000 11.35%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/84 99.658075 1017.200400 11.35%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/85 99.352847 1136.008896 11.35%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/86 99.106397 1403.456096 11.35%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/87 98.920389 1856.008345 11.35%
- -----------------------------------------------------------------------------------------------------
1c div2 GROWEQ q 8/11/88 98.693827 1520.292734 11.35%
- -----------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/89 98.524881 2035.275257 11.35%
- -----------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - Inception - 1C
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c div2 GROWEQ q 8/11/90 19.674516 1938.429339 98.524881 0.177387
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/91 22.338239 2196.909820 98.347494 0.156234
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/92 24.075117 2363.966058 98.191259 0.144963
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/93 27.266028 2673.333064 98.046296 0.127998
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/94 25.356130 2482.829102 97.918298 0.137639
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/95 30.687797 3000.673015 97.780659 0.113726
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/96 34.821598 3400.918681 97.666933 0.100225
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/97 47.458620 4630.381315 97.566708 0.073538
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 48.256483 4704.677508 97.493170 0.072322
- --------------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/84 10.000000 1000.000000 100.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/85 11.589649 1158.964900 100.000000 0.155311
- --------------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/86 12.927177 1290.709967 99.844689 0.139242
- --------------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/87 13.657141 1361.691354 99.705447 0.131799
- --------------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/88 14.725803 1466.301929 99.573648 0.122234
- --------------------------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/89 16.193955 1610.511721 99.451414 0.111153
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/90 15.419268 1531.754112 99.340261 0.116737
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/91 16.997000 1686.502241 99.223524 0.105901
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/92 20.228463 2004.997173 99.117623 0.088984
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/93 23.456695 2322.884596 99.028640 0.076737
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/94 23.555269 2330.838681 98.951902 0.076416
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/95 25.023029 2474.164165 98.875486 0.071934
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/96 27.461148 2713.258984 98.803553 0.065547
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/97 32.058240 3165.366680 98.738006 0.056148
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 33.475732 3303.447424 98.681858 0.053770
- --------------------------------------------------------------------------------------------------------------------------
1c div2 INTLEQ q 11/1/92 10.000000 1000.000000 100.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/93 13.025039 1302.503900 100.000000 0.260268
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/94 13.785501 1374.962176 99.739732 0.245911
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/95 13.667136 1359.795590 99.493822 0.248040
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/96 15.823754 1570.440828 99.245781 0.214235
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/97 17.837462 1766.471445 99.031546 0.190049
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 18.164033 1795.360212 98.841497 2.939325
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/84 4.949210 1000.000000 202.052449 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/85 5.745058 1160.803037 202.052449 0.045256
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/86 6.613416 1335.957599 202.007192 0.039314
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/87 6.829992 1379.438994 201.967878 0.038067
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/88 7.166669 1447.164117 201.929811 0.036279
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/89 7.714368 1557.481003 201.893532 0.033703
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/90 8.217273 1658.737320 201.859829 0.031641
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/91 8.900763 1796.424868 201.828188 0.029211
- --------------------------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/92 9.705874 1958.635444 201.798977 0.026788
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/93 10.206569 2059.401771 201.772189 0.025474
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/94 10.070420 2031.674157 201.746715 0.025818
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/95 10.696546 2157.716855 201.720897 0.024307
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/96 11.024991 2223.703092 201.696590 0.023583
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/97 11.759772 2371.628586 201.673007 0.022109
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 11.943129 2408.342690 201.650898 0.021770
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/94 5.669991 1000.000000 176.367123 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/95 5.869042 1035.106052 176.367123 0.022150
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/96 8.067450 1422.654251 176.344973 0.016114
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/97 9.924453 1749.967471 176.328859 0.013099
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 12.411136 2188.278873 176.315760 4.039115
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/98 13.769819 2372.218223 172.276645 0.009441
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- ------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c div2 GROWEQ q 8/11/90 98.347494 1934.939339 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/91 98.191259 2193.419820 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/92 98.046296 2360.476058 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/93 97.918298 2669.843064 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/94 97.780659 2479.339102 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/95 97.666933 2997.183015 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/96 97.566708 3397.428681 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 8/11/97 97.493170 4626.891315 11.35%
- ------------------------------------------------------------------------------------------------------
1c DIV2 GROWEQ Q 12/31/97 97.420848 4701.187508 11.35%
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/84 100.000000 1000.000000 9.31%
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/85 99.844689 1157.164900 9.31%
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/86 99.705447 1288.909967 9.31%
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/87 99.573648 1359.891354 9.31%
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/88 99.451414 1464.501929 9.31%
- ------------------------------------------------------------------------------------------------------
1c div2 HIBOND q 8/6/89 99.340261 1608.711721 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/90 99.223524 1529.954112 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/91 99.117623 1684.702241 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/92 99.028640 2003.197173 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/93 98.951902 2321.084596 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/94 98.875486 2329.038681 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/95 98.803553 2472.364165 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/96 98.738006 2711.458984 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 8/6/97 98.681858 3163.566680 9.31%
- ------------------------------------------------------------------------------------------------------
1c DIV2 HIBOND Q 12/31/97 98.628087 3301.647424 9.31%
- ------------------------------------------------------------------------------------------------------
1c div2 INTLEQ q 11/1/92 100.000000 1000.000000 11.34%
- ------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/93 99.739732 1299.113900 11.34%
- ------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/94 99.493822 1371.572176 11.34%
- ------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/95 99.245781 1356.405590 11.34%
- ------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/96 99.031546 1567.050828 11.34%
- ------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 11/1/97 98.841497 1763.081445 11.34%
- ------------------------------------------------------------------------------------------------------
1c DIV2 INTLEQ Q 12/31/97 95.902172 1741.970212 11.34%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/84 202.052449 1000.000000 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/85 202.007192 1160.543037 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/86 201.967878 1335.697599 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/87 201.929811 1379.178994 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/88 201.893532 1446.904117 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/89 201.859829 1557.221003 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/90 201.828188 1658.477320 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/91 201.798977 1796.164868 6.82%
- ------------------------------------------------------------------------------------------------------
1c div2 LIMMAT q 9/10/92 201.772189 1958.375444 6.82%
- ------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/93 201.746715 2059.141771 6.82%
- ------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/94 201.720897 2031.414157 6.82%
- ------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/95 201.696590 2157.456855 6.82%
- ------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/96 201.673007 2223.443092 6.82%
- ------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 9/10/97 201.650898 2371.368586 6.82%
- ------------------------------------------------------------------------------------------------------
1c DIV2 LIMMAT Q 12/31/97 201.629128 2408.082690 6.82%
- ------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/94 176.367123 1000.000000 22.26%
- ------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/95 176.344973 1034.976052 22.26%
- ------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/96 176.328859 1422.524251 22.26%
- ------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/97 176.315760 1749.837471 22.26%
- ------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 12/31/97 172.276645 2138.148873 22.26%
- ------------------------------------------------------------------------------------------------------
1c DIV2 PARTNR Q 3/22/98 172.267204 2372.088223 22.26%
- ------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 1C - Diversifier II Variable Contracts
Diversifier II - Inception - 1C
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1c div2 QUALBD q 3/17/87 10.014650 1000.000000 99.853714 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 3/17/88 10.319857 1030.476053 99.853714 0.137599
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/89 10.562833 1053.284675 99.716116 0.134434
- --------------------------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 3/17/90 11.634482 1158.581285 99.581682 0.122051
- --------------------------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 3/17/91 12.757872 1268.893240 99.459631 0.111304
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/92 13.917758 1382.705974 99.348327 0.102028
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/93 15.783929 1566.496539 99.246299 0.089965
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/94 16.204383 1606.767216 99.156334 0.087631
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/95 16.500701 1634.703056 99.068704 0.086057
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/96 18.128405 1794.397506 98.982647 0.078330
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/97 18.883970 1867.706146 98.904317 0.075196
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 20.260333 2002.310891 98.829120 0.070088
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/98 20.702975 2044.605787 98.759033 0.068589
- --------------------------------------------------------------------------------------------------------------------------
1c div2 SMLCAP q 3/1/95 10.010905 1000.000000 99.891069 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 3/1/96 11.585005 1157.238531 99.891069 0.060423
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 3/1/97 13.363027 1334.039616 99.830646 0.052383
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 16.051216 1601.562444 99.778263 3.158639
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 3/1/98 16.909748 1633.813482 96.619623 0.041396
- --------------------------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/87 10.134586 1000.000000 98.672013 0.000000
- --------------------------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/88 10.617116 1047.612206 98.672013 0.408774
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/89 12.355591 1214.100391 98.263239 0.351258
- --------------------------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/90 12.933143 1266.309651 97.911981 0.335572
- --------------------------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/91 13.643553 1331.288908 97.576409 0.318099
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/92 15.775871 1534.334553 97.258310 0.275104
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/93 17.218502 1669.905533 96.983206 0.252054
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/94 18.356274 1775.623529 96.731152 0.236431
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/95 19.989840 1928.914024 96.494721 0.217110
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/96 26.451059 2546.644748 96.277610 0.164077
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/97 31.932448 3069.140414 96.113534 0.135912
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/97 38.038246 3650.820385 95.977622 0.114096
- --------------------------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/98 42.061529 4032.166479 95.863526 0.103182
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- ------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1c div2 QUALBD q 3/17/87 99.853714 1000.000000 6.63%
- ------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 3/17/88 99.716116 1029.056053 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/89 99.581682 1051.864675 6.63%
- ------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 3/17/90 99.459631 1157.161285 6.63%
- ------------------------------------------------------------------------------------------------------
1c div2 QUALBD q 3/17/91 99.348327 1267.473240 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/92 99.246299 1381.285974 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/93 99.156334 1565.076539 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/94 99.068704 1605.347216 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/95 98.982647 1633.283056 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/96 98.904317 1792.977506 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/97 98.829120 1866.286146 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 12/31/97 98.759033 2000.890891 6.63%
- ------------------------------------------------------------------------------------------------------
1c DIV2 QUALBD Q 3/17/98 98.690444 2043.185787 6.63%
- ------------------------------------------------------------------------------------------------------
1c div2 SMLCAP q 3/1/95 99.891069 1000.000000 16.72%
- ------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 3/1/96 99.830646 1156.538531 16.72%
- ------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 3/1/97 99.778263 1333.339616 16.72%
- ------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 12/31/97 96.619623 1550.862444 16.72%
- ------------------------------------------------------------------------------------------------------
1c DIV2 SMLCAP Q 3/1/98 96.578227 1633.113482 16.72%
- ------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/87 98.672013 1000.000000 12.73%
- ------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/88 98.263239 1043.272206 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/89 97.911981 1209.760391 12.73%
- ------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/90 97.576409 1261.969651 12.73%
- ------------------------------------------------------------------------------------------------------
1c div2 VALUEQ q 3/17/91 97.258310 1326.948908 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/92 96.983206 1529.994553 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/93 96.731152 1665.565533 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/94 96.494721 1771.283529 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/95 96.277610 1924.574024 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/96 96.113534 2542.304748 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/97 95.977622 3064.800414 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 12/31/97 95.863526 3646.480385 12.73%
- ------------------------------------------------------------------------------------------------------
1c DIV2 VALUEQ Q 3/17/98 95.760344 4027.826479 12.73%
- ------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Diversifier II - Inception - 1D
Table 1D -Penn Mutual Optimizer Group Variable Annuity Contract
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- -----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1d div2 FLEXMN q 7/31/84 10.000000 1000.000000 100.000000 0.000000
- -----------------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/85 11.456214 1145.621400 100.000000 0.559522
- -----------------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/86 13.905894 1382.808751 99.440478 0.460956
- -----------------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/87 17.320528 1714.377594 98.979523 0.370081
- -----------------------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/88 19.010671 1874.631652 98.609442 0.337179
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/89 23.634078 2322.574319 98.272263 0.271219
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/90 23.917918 2343.980935 98.001044 0.268000
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/91 26.982387 2637.070819 97.733044 0.237562
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/92 29.524429 2878.498428 97.495482 0.217108
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/93 32.307338 3142.805289 97.278373 0.198407
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/94 34.745700 3373.111390 97.079966 0.184483
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/95 40.713405 3944.945050 96.895483 0.157442
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/96 44.656630 4319.994912 96.738041 0.143540
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/97 54.568718 5271.038111 96.594501 0.117467
- -----------------------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 56.265009 5428.281237 96.477035 0.113925
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/83 10.000000 1000.000000 100.000000 0.000000
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/84 9.197711 919.771100 100.000000 0.379442
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/85 11.236685 1119.404827 99.620558 0.310590
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/86 14.477963 1437.806041 99.309968 0.241056
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/87 16.408210 1625.543511 99.068912 0.212698
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/88 15.804408 1562.363932 98.856214 0.220824
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/89 19.056625 1879.657621 98.635389 0.183138
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/90 21.657087 2132.188958 98.452251 0.161148
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/91 22.173661 2179.473586 98.291102 0.157394
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/92 24.003105 2355.513710 98.133709 0.145398
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/93 26.278724 2575.007772 97.988311 0.132807
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/94 25.928673 2537.263355 97.855504 0.134600
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/95 28.144778 2750.333138 97.720904 0.124002
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/96 35.760410 3490.105227 97.596902 0.097594
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 47.858840 4666.203779 97.499308 0.072923
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/83 10.000000 1000.000000 100.000000 0.000000
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/84 10.206904 1020.690400 100.000000 0.341925
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/85 11.434085 1139.498896 99.658075 0.305228
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/86 14.161105 1406.946096 99.352847 0.246450
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/87 18.762647 1859.498345 99.106397 0.186008
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/88 15.404132 1523.782734 98.920389 0.226563
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/89 20.657475 2038.765257 98.693827 0.168946
- -----------------------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/90 19.674516 1938.429339 98.524881 0.177387
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/91 22.338239 2196.909820 98.347494 0.156234
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/92 24.075117 2363.966058 98.191259 0.144963
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/93 27.266028 2673.333064 98.046296 0.127998
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/94 25.356130 2482.829102 97.918298 0.137639
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/95 30.687797 3000.673015 97.780659 0.113726
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/96 34.821598 3400.918681 97.666933 0.100225
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/97 47.458620 4630.381315 97.566708 0.073538
- -----------------------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 48.256483 4704.677508 97.493170 0.072322
- -----------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/84 10.000000 1000.000000 100.000000 0.000000
- -----------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/85 11.589649 1158.964900 100.000000 0.155311
- -----------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/86 12.927177 1290.709967 99.844689 0.139242
- -----------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/87 13.657141 1361.691354 99.705447 0.131799
- -----------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/88 14.725803 1466.301929 99.573648 0.122234
- -----------------------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/89 16.193955 1610.511721 99.451414 0.111153
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- ------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1d div2 FLEXMN q 7/31/84 100.000000 1000.000000 13.42%
- ------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/85 99.440478 1139.211400 13.42%
- ------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/86 98.979523 1376.398751 13.42%
- ------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/87 98.609442 1707.967594 13.42%
- ------------------------------------------------------------------------------------------
1d div2 FLEXMN q 7/31/88 98.272263 1868.221652 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/89 98.001044 2316.164319 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/90 97.733044 2337.570935 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/91 97.495482 2630.660819 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/92 97.278373 2872.088428 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/93 97.079966 3136.395289 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/94 96.895483 3366.701390 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/95 96.738041 3938.535050 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/96 96.594501 4313.584912 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 7/31/97 96.477035 5264.628111 13.42%
- ------------------------------------------------------------------------------------------
1d DIV2 FLEXMN Q 12/31/97 96.363110 5421.871237 13.42%
- ------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/83 100.000000 1000.000000 11.13%
- ------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/84 99.620558 916.281100 11.13%
- ------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/85 99.309968 1115.914827 11.13%
- ------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/86 99.068912 1434.316041 11.13%
- ------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/87 98.856214 1622.053511 11.13%
- ------------------------------------------------------------------------------------------
1d div2 GROWeq n 6/1/88 98.635389 1558.873932 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/89 98.452251 1876.167621 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/90 98.291102 2128.698958 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/91 98.133709 2175.983586 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/92 97.988311 2352.023710 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/93 97.855504 2571.517772 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/94 97.720904 2533.773355 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/95 97.596902 2746.843138 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 6/1/96 97.499308 3486.615227 11.13%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ N 12/31/97 97.426385 4662.713779 11.13%
- ------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/83 100.000000 1000.000000 11.35%
- ------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/84 99.658075 1017.200400 11.35%
- ------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/85 99.352847 1136.008896 11.35%
- ------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/86 99.106397 1403.456096 11.35%
- ------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/87 98.920389 1856.008345 11.35%
- ------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/88 98.693827 1520.292734 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/89 98.524881 2035.275257 11.35%
- ------------------------------------------------------------------------------------------
1d div2 GROWEQ q 8/11/90 98.347494 1934.939339 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/91 98.191259 2193.419820 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/92 98.046296 2360.476058 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/93 97.918298 2669.843064 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/94 97.780659 2479.339102 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/95 97.666933 2997.183015 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/96 97.566708 3397.428681 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 8/11/97 97.493170 4626.891315 11.35%
- ------------------------------------------------------------------------------------------
1d DIV2 GROWEQ Q 12/31/97 97.420848 4701.187508 11.35%
- ------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/84 100.000000 1000.000000 9.31%
- ------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/85 99.844689 1157.164900 9.31%
- ------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/86 99.705447 1288.909967 9.31%
- ------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/87 99.573648 1359.891354 9.31%
- ------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/88 99.451414 1464.501929 9.31%
- ------------------------------------------------------------------------------------------
1d div2 HIBOND q 8/6/89 99.340261 1608.711721 9.31%
- ------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 1D -Penn Mutual Optimizer Group Variable Annuity Contract
Diversifer II - Inception - 1D
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- -----------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1d DIV2 HIBOND Q 8/6/90 15.419268 1531.754112 99.340261 0.116737
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/91 16.997000 1686.502241 99.223524 0.105901
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/92 20.228463 2004.997173 99.117623 0.088984
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/93 23.456695 2322.884596 99.028640 0.076737
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/94 23.555269 2330.838681 98.951902 0.076416
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/95 25.023029 2474.164165 98.875486 0.071934
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/96 27.461148 2713.258984 98.803553 0.065547
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/97 32.058240 3165.366680 98.738006 0.056148
- -----------------------------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 33.475732 3303.447424 98.681858 0.053770
- -----------------------------------------------------------------------------------------------------------
1d div2 INTLEQ q 11/1/92 10.000000 1000.000000 100.000000 0.000000
- -----------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/93 13.025039 1302.503900 100.000000 0.260268
- -----------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/94 13.785501 1374.962176 99.739732 0.245911
- -----------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/95 13.667136 1359.795590 99.493822 0.248040
- -----------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/96 15.823754 1570.440828 99.245781 0.214235
- -----------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/97 17.837462 1766.471445 99.031546 0.190049
- -----------------------------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 18.164033 1795.360212 98.841497 4.634500
- -----------------------------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/87 10.014650 1000.000000 99.853714 0.000000
- -----------------------------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/88 10.319857 1030.476053 99.853714 0.137599
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/89 10.562833 1053.284675 99.716116 0.134434
- -----------------------------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/90 11.634482 1158.581285 99.581682 0.122051
- -----------------------------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/91 12.757872 1268.893240 99.459631 0.111304
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/92 13.917758 1382.705974 99.348327 0.102028
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/93 15.783929 1566.496539 99.246299 0.089965
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/94 16.204383 1606.767216 99.156334 0.087631
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/95 16.500701 1634.703056 99.068704 0.086057
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/96 18.128405 1794.397506 98.982647 0.078330
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/97 18.883970 1867.706146 98.904317 0.075196
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 20.260333 2002.310891 98.829120 0.070088
- -----------------------------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/98 20.702975 2044.605787 98.759033 0.068589
- -----------------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/87 10.010905 1000.000000 99.891069 0.000000
- -----------------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/88 11.585005 1157.238531 99.891069 0.060423
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/89 13.363027 1334.039616 99.830646 0.052383
- -----------------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/90 16.051216 1601.562444 99.778263 4.533632
- -----------------------------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/91 16.909748 1610.562697 95.244630 0.041396
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/92 10.134586 1000.000000 98.672013 0.000000
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/93 10.617116 1047.612206 98.672013 0.408774
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/94 12.355591 1214.100391 98.263239 0.351258
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/95 12.933143 1266.309651 97.911981 0.335572
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/96 13.643553 1331.288908 97.576409 0.318099
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/97 15.775871 1534.334553 97.258310 0.275104
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 17.218502 1669.905533 96.983206 0.252054
- -----------------------------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/98 18.356274 1775.623529 96.731152 0.236431
- -----------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- -----------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
1d DIV2 HIBOND Q 8/6/90 99.223524 1529.954112 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/91 99.117623 1684.702241 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/92 99.028640 2003.197173 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/93 98.951902 2321.084596 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/94 98.875486 2329.038681 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/95 98.803553 2472.364165 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/96 98.738006 2711.458984 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 8/6/97 98.681858 3163.566680 9.31%
- -----------------------------------------------------------------------------------------
1d DIV2 HIBOND Q 12/31/97 98.628087 3301.647424 9.31%
- -----------------------------------------------------------------------------------------
1d div2 INTLEQ q 11/1/92 100.000000 1000.000000 10.96%
- -----------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/93 99.739732 1299.113900 10.96%
- -----------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/94 99.493822 1371.572176 10.96%
- -----------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/95 99.245781 1356.405590 10.96%
- -----------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/96 99.031546 1567.050828 10.96%
- -----------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 11/1/97 98.841497 1763.081445 10.96%
- -----------------------------------------------------------------------------------------
1d DIV2 INTLEQ Q 12/31/97 94.206997 1711.179002 10.96%
- -----------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/87 99.853714 1000.000000 6.63%
- -----------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/88 99.716116 1029.056053 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/89 99.581682 1051.864675 6.63%
- -----------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/90 99.459631 1157.161285 6.63%
- -----------------------------------------------------------------------------------------
1d div2 QUALBD q 3/17/91 99.348327 1267.473240 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/92 99.246299 1381.285974 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/93 99.156334 1565.076539 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/94 99.068704 1605.347216 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/95 98.982647 1633.283056 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/96 98.904317 1792.977506 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/97 98.829120 1866.286146 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 12/31/97 98.759033 2000.890891 6.63%
- -----------------------------------------------------------------------------------------
1d DIV2 QUALBD Q 3/17/98 98.690444 2043.185787 6.63%
- -----------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/87 99.891069 1000.000000 12.73%
- -----------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/88 99.830646 1156.538531 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/89 99.778263 1333.339616 12.73%
- -----------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/90 95.244630 1528.792134 12.73%
- -----------------------------------------------------------------------------------------
1d div2 VALUEQ q 3/17/91 95.203234 1609.862697 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/92 98.672013 1000.000000 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/93 98.263239 1043.272206 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/94 97.911981 1209.760391 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/95 97.576409 1261.969651 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/96 97.258310 1326.948908 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/97 96.983206 1529.994553 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 12/31/97 96.731152 1665.565533 12.73%
- -----------------------------------------------------------------------------------------
1d DIV2 VALUEQ Q 3/17/98 96.494721 1771.283529 12.73%
- -----------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifer II - Inception - 2
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ---------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 div2 BALFND q 2/28/89 6.791578 1000.000000 147.241186 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/90 7.572278 1114.951194 147.241186 0.129419
- ---------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/91 8.499080 1250.314673 147.111767 0.115307
- ---------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/92 9.751932 1433.499482 146.996460 0.100493
- ---------------------------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/93 10.022615 1472.281724 146.895967 0.097779
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/94 10.787779 1583.626412 146.798188 0.090844
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/95 10.674849 1566.078752 146.707345 0.091805
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/96 12.804422 1877.327248 146.615540 0.076536
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/97 13.816279 2024.623765 146.539004 0.070931
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 15.550604 2277.667006 146.468073 0.063020
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/98 16.173137 2367.828983 146.405053 0.060594
- ---------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/87 5.888807 1000.000000 169.813682 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/88 5.810044 986.624965 169.813682 0.335626
- ---------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/89 7.698169 1304.670720 169.478056 0.253307
- ---------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/90 6.964679 1178.596059 169.224749 0.279984
- ---------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/91 9.346041 1578.964703 168.944765 0.208644
- ---------------------------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/92 10.053957 1696.465703 168.736121 0.193953
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/93 10.849833 1828.654368 168.542167 0.179726
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/94 10.931772 1840.499819 168.362441 0.178379
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/95 13.831774 2326.283934 168.184062 0.140980
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/96 13.573655 2280.958822 168.043082 0.143661
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/97 13.272217 2228.397556 167.899421 0.146923
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 12.689870 2128.757392 167.752498 0.153666
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 10/1/96 9.276035 1000.000000 107.804682 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 10/1/97 11.085709 1195.091329 107.804682 0.006314
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 8.974573 967.444316 107.798367 0.007800
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/89 6.153672 1000.000000 162.504599 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/90 6.151043 999.572775 162.504599 0.055275
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/91 7.592009 1233.316728 162.449324 0.044784
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/92 8.409222 1365.695829 162.404540 0.040432
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/93 9.747655 1582.669309 162.364108 0.034880
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/94 10.087746 1637.536018 162.329228 0.033704
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 9/6/95 10.750516 1744.760622 162.295524 0.031626
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 9/6/96 11.579895 1878.998891 162.263897 0.029361
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 9/6/97 14.622017 2372.196142 162.234536 0.023253
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 15.040064 2439.668082 162.211283 0.022606
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/86 4.238521 1000.000000 235.931354 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/87 5.019478 1184.252243 235.931354 0.316766
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/88 5.047448 1189.252383 235.614588 0.315011
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/89 6.178431 1453.782205 235.299578 0.257347
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/90 4.543676 1067.955743 235.042231 0.349937
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/91 5.881881 1380.432144 234.692294 0.270322
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/92 6.591041 1545.084830 234.421972 0.241237
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/93 8.467128 1982.838264 234.180736 0.187785
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 10/9/95 11.145047 2607.862432 233.992951 0.142664
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 10/9/96 12.785988 2990.006955 233.850286 0.124355
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 10/9/97 16.956827 3963.250185 233.725931 0.093768
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 17.020857 3976.619652 233.632164 0.093415
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/86 3.868619 1000.000000 258.490174 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/87 4.875669 1260.312530 258.490174 0.412251
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/88 4.588422 1184.170421 258.077923 0.438059
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/89 6.036553 1555.256695 257.639864 0.332971
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/90 4.755716 1223.678507 257.306893 0.422649
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/91 6.488444 1666.779028 256.884243 0.309782
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/92 6.847898 1756.995744 256.574462 0.293521
- ---------------------------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/93 9.336172 2392.682947 256.280941 0.215292
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 10/9/95 12.054638 3086.778709 256.065650 0.166741
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 10/9/96 13.936113 3566.236108 255.898909 0.144230
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- -------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- -------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 div2 BALFND q 2/28/89 147.241186 1000.000000 9.75%
- -------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/90 147.111767 1113.971194 9.75%
- -------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/91 146.996460 1249.334673 9.75%
- -------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/92 146.895967 1432.519482 9.75%
- -------------------------------------------------------------------------------------------
2 div2 BALFND q 2/28/93 146.798188 1471.301724 9.75%
- -------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/94 146.707345 1582.646412 9.75%
- -------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/95 146.615540 1565.098752 9.75%
- -------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/96 146.539004 1876.347248 9.75%
- -------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/97 146.468073 2023.643765 9.75%
- -------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 12/31/97 146.405053 2276.687006 9.75%
- -------------------------------------------------------------------------------------------
2 DIV2 BALFND Q 2/28/98 146.344459 2366.848983 9.75%
- -------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/87 169.813682 1000.000000 7.10%
- -------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/88 169.478056 984.674965 7.10%
- -------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/89 169.224749 1302.720720 7.10%
- -------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/90 168.944765 1176.646059 7.10%
- -------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/91 168.736121 1577.014703 7.10%
- -------------------------------------------------------------------------------------------
2 div2 CAPAPP q 11/20/92 168.542167 1694.515703 7.10%
- -------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/93 168.362441 1826.704368 7.10%
- -------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/94 168.184062 1838.549819 7.10%
- -------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/95 168.043082 2324.333934 7.10%
- -------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/96 167.899421 2279.008822 7.10%
- -------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 11/20/97 167.752498 2226.447556 7.10%
- -------------------------------------------------------------------------------------------
2 DIV2 CAPAPP Q 12/31/97 167.598832 2126.807392 7.10%
- -------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 10/1/96 107.804682 1000.000000 -2.62%
- -------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 10/1/97 107.798367 1195.021329 -2.62%
- -------------------------------------------------------------------------------------------
2 DIV2 EMGMKT Q 12/31/97 107.790567 967.374316 -2.62%
- -------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/89 162.504599 1000.000000 11.31%
- -------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/90 162.449324 999.232775 11.31%
- -------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/91 162.404540 1232.976728 11.31%
- -------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/92 162.364108 1365.355829 11.31%
- -------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/93 162.329228 1582.329309 11.31%
- -------------------------------------------------------------------------------------------
2 div2 FIDASM q 9/6/94 162.295524 1637.196018 11.31%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 9/6/95 162.263897 1744.420622 11.31%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 9/6/96 162.234536 1878.658891 11.31%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 9/6/97 162.211283 2371.856142 11.31%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDASM Q 12/31/97 162.188677 2439.328082 11.31%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/86 235.931354 1000.000000 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/87 235.614588 1182.662243 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/88 235.299578 1187.662383 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/89 235.042231 1452.192205 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/90 234.692294 1066.365743 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/91 234.421972 1378.842144 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/92 234.180736 1543.494830 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDEQI q 10/9/93 233.992951 1981.248264 13.07%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 10/9/95 233.850286 2606.272432 13.07%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 10/9/96 233.725931 2988.416955 13.07%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 10/9/97 233.632164 3961.660185 13.07%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDEQI Q 12/31/97 233.538749 3975.029652 13.07%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/86 258.490174 1000.000000 14.01%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/87 258.077923 1258.302530 14.01%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/88 257.639864 1182.160421 14.01%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/89 257.306893 1553.246695 14.01%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/90 256.884243 1221.668507 14.01%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/91 256.574462 1664.769028 14.01%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/92 256.280941 1754.985744 14.01%
- -------------------------------------------------------------------------------------------
2 div2 FIDGRO q 10/9/93 256.065650 2390.672947 14.01%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 10/9/95 255.898909 3084.768709 14.01%
- -------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 10/9/96 255.754679 3564.226108 14.01%
- -------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - Inception - 2
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ---------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 FIDGRO Q 10/9/97 17.656557 4515.747070 255.754679 0.113839
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/97 17.072612 4364.456879 255.640840 0.117732
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/92 4.845444 1000.000000 206.379436 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/93 5.486802 1132.363102 206.379436 0.023693
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/94 5.737449 1183.955550 206.355743 0.022658
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/95 6.880634 1419.702438 206.333085 0.018894
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/96 8.306792 1713.809072 206.314191 0.015650
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/97 11.449351 2361.984409 206.298541 0.011354
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/97 12.162415 2508.950376 206.287187 0.010689
- ---------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/84 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/85 11.456214 1145.621400 100.000000 0.559522
- ---------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/86 13.905894 1382.808751 99.440478 0.460956
- ---------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/87 17.320528 1714.377594 98.979523 0.370081
- ---------------------------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/88 19.010671 1874.631652 98.609442 0.337179
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/89 23.634078 2322.574319 98.272263 0.271219
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/90 23.917918 2343.980935 98.001044 0.268000
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/91 26.982387 2637.070819 97.733044 0.237562
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/92 29.524429 2878.498428 97.495482 0.217108
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/93 32.307338 3142.805289 97.278373 0.198407
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/94 34.745700 3373.111390 97.079966 0.184483
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/95 40.713405 3944.945050 96.895483 0.157442
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/96 44.656630 4319.994912 96.738041 0.143540
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/97 54.568718 5271.038111 96.594501 0.117467
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 56.265009 5428.281237 96.477035 0.113925
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/83 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/84 9.197711 919.771100 100.000000 0.379442
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/85 11.236685 1119.404827 99.620558 0.310590
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/86 14.477963 1437.806041 99.309968 0.241056
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/87 16.408210 1625.543511 99.068912 0.212698
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/88 15.804408 1562.363932 98.856214 0.220824
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/89 19.056625 1879.657621 98.635389 0.183138
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/90 21.657087 2132.188958 98.452251 0.161148
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/91 22.173661 2179.473586 98.291102 0.157394
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/92 24.003105 2355.513710 98.133709 0.145398
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/93 26.278724 2575.007772 97.988311 0.132807
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/94 25.928673 2537.263355 97.855504 0.134600
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/95 28.144778 2750.333138 97.720904 0.124002
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/96 35.760410 3490.105227 97.596902 0.097594
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 47.858840 4666.203779 97.499308 0.072923
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/83 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/84 10.206904 1020.690400 100.000000 0.341925
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/85 11.434085 1139.498896 99.658075 0.305228
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/86 14.161105 1406.946096 99.352847 0.246450
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/87 18.762647 1859.498345 99.106397 0.186008
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/88 15.404132 1523.782734 98.920389 0.226563
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/89 20.657475 2038.765257 98.693827 0.168946
- ---------------------------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/90 19.674516 1938.429339 98.524881 0.177387
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/91 22.338239 2196.909820 98.347494 0.156234
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/92 24.075117 2363.966058 98.191259 0.144963
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/93 27.266028 2673.333064 98.046296 0.127998
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/94 25.356130 2482.829102 97.918298 0.137639
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/95 30.687797 3000.673015 97.780659 0.113726
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/96 34.821598 3400.918681 97.666933 0.100225
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/97 47.458620 4630.381315 97.566708 0.073538
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 48.256483 4704.677508 97.493170 0.072322
- ---------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/84 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/85 11.589649 1158.964900 100.000000 0.155311
- ---------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/86 12.927177 1290.709967 99.844689 0.139242
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Diversifer II - Inception - 2
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- --------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 DIV2 FIDGRO Q 10/9/97 255.640840 4513.737070 14.01%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDGRO Q 12/31/97 255.523108 4362.446879 14.01%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/92 206.379436 1000.000000 18.77%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/93 206.355743 1132.233102 18.77%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/94 206.333085 1183.825550 18.77%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/95 206.314191 1419.572438 18.77%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/96 206.298541 1713.679072 18.77%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 8/27/97 206.287187 2361.854409 18.77%
- --------------------------------------------------------------------------------------------
2 DIV2 FIDIND Q 12/31/97 206.276498 2508.820376 18.77%
- --------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/84 100.000000 1000.000000 13.42%
- --------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/85 99.440478 1139.211400 13.42%
- --------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/86 98.979523 1376.398751 13.42%
- --------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/87 98.609442 1707.967594 13.42%
- --------------------------------------------------------------------------------------------
2 div2 FLEXMN q 7/31/88 98.272263 1868.221652 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/89 98.001044 2316.164319 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/90 97.733044 2337.570935 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/91 97.495482 2630.660819 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/92 97.278373 2872.088428 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/93 97.079966 3136.395289 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/94 96.895483 3366.701390 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/95 96.738041 3938.535050 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/96 96.594501 4313.584912 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 7/31/97 96.477035 5264.628111 13.42%
- --------------------------------------------------------------------------------------------
2 DIV2 FLEXMN Q 12/31/97 96.363110 5421.871237 13.42%
- --------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/83 100.000000 1000.000000 11.13%
- --------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/84 99.620558 916.281100 11.13%
- --------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/85 99.309968 1115.914827 11.13%
- --------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/86 99.068912 1434.316041 11.13%
- --------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/87 98.856214 1622.053511 11.13%
- --------------------------------------------------------------------------------------------
2 div2 GROWeq n 6/1/88 98.635389 1558.873932 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/89 98.452251 1876.167621 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/90 98.291102 2128.698958 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/91 98.133709 2175.983586 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/92 97.988311 2352.023710 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/93 97.855504 2571.517772 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/94 97.720904 2533.773355 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/95 97.596902 2746.843138 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 6/1/96 97.499308 3486.615227 11.13%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ N 12/31/97 97.426385 4662.713779 11.13%
- --------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/83 100.000000 1000.000000 11.35%
- --------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/84 99.658075 1017.200400 11.35%
- --------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/85 99.352847 1136.008896 11.35%
- --------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/86 99.106397 1403.456096 11.35%
- --------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/87 98.920389 1856.008345 11.35%
- --------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/88 98.693827 1520.292734 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/89 98.524881 2035.275257 11.35%
- --------------------------------------------------------------------------------------------
2 div2 GROWEQ q 8/11/90 98.347494 1934.939339 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/91 98.191259 2193.419820 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/92 98.046296 2360.476058 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/93 97.918298 2669.843064 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/94 97.780659 2479.339102 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/95 97.666933 2997.183015 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/96 97.566708 3397.428681 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 8/11/97 97.493170 4626.891315 11.35%
- --------------------------------------------------------------------------------------------
2 DIV2 GROWEQ Q 12/31/97 97.420848 4701.187508 11.35%
- --------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/84 100.000000 1000.000000 9.31%
- --------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/85 99.844689 1157.164900 9.31%
- --------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/86 99.705447 1288.909967 9.31%
- --------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifer II - Inception - 2
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ---------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 div2 HIBOND q 8/6/87 13.657141 1361.691354 99.705447 0.131799
- ---------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/88 14.725803 1466.301929 99.573648 0.122234
- ---------------------------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/89 16.193955 1610.511721 99.451414 0.111153
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/90 15.419268 1531.754112 99.340261 0.116737
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/91 16.997000 1686.502241 99.223524 0.105901
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/92 20.228463 2004.997173 99.117623 0.088984
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/93 23.456695 2322.884596 99.028640 0.076737
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/94 23.555269 2330.838681 98.951902 0.076416
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/95 25.023029 2474.164165 98.875486 0.071934
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/96 27.461148 2713.258984 98.803553 0.065547
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/97 32.058240 3165.366680 98.738006 0.056148
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 33.475732 3303.447424 98.681858 0.053770
- ---------------------------------------------------------------------------------------------------------------
2 div2 INTLEQ q 11/1/92 10.000000 1000.000000 100.000000 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/93 13.025039 1302.503900 100.000000 0.260268
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/94 13.785501 1374.962176 99.739732 0.245911
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/95 13.667136 1359.795590 99.493822 0.248040
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/96 15.823754 1570.440828 99.245781 0.214235
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/97 17.837462 1766.471445 99.031546 0.190049
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/97 18.164033 1795.360212 98.841497 0.186633
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/84 4.949210 1000.000000 202.052449 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/85 5.745058 1160.803037 202.052449 0.045256
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/86 6.613416 1335.957599 202.007192 0.039314
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/87 6.829992 1379.438994 201.967878 0.038067
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/88 7.166669 1447.164117 201.929811 0.036279
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/89 7.714368 1557.481003 201.893532 0.033703
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/90 8.217273 1658.737320 201.859829 0.031641
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/91 8.900763 1796.424868 201.828188 0.029211
- ---------------------------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/92 9.705874 1958.635444 201.798977 0.026788
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/93 10.206569 2059.401771 201.772189 0.025474
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/94 10.070420 2031.674157 201.746715 0.025818
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/95 10.696546 2157.716855 201.720897 0.024307
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/96 11.024991 2223.703092 201.696590 0.023583
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/97 11.759772 2371.628586 201.673007 0.022109
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 11.943129 2408.342690 201.650898 0.021770
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/94 5.669991 1000.000000 176.367123 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/95 5.869042 1035.106052 176.367123 0.022150
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/96 8.067450 1422.654251 176.344973 0.016114
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/97 9.924453 1749.967471 176.328859 0.013099
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/97 12.411136 2188.278873 176.315760 0.010474
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/98 13.769819 2427.691867 176.305285 0.009441
- ---------------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/87 10.014650 1000.000000 99.853714 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/88 10.319857 1030.476053 99.853714 0.137599
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/89 10.562833 1053.284675 99.716116 0.134434
- ---------------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/90 11.634482 1158.581285 99.581682 0.122051
- ---------------------------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/91 12.757872 1268.893240 99.459631 0.111304
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/92 13.917758 1382.705974 99.348327 0.102028
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/93 15.783929 1566.496539 99.246299 0.089965
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/94 16.204383 1606.767216 99.156334 0.087631
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/95 16.500701 1634.703056 99.068704 0.086057
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/96 18.128405 1794.397506 98.982647 0.078330
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/97 18.883970 1867.706146 98.904317 0.075196
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 20.260333 2002.310891 98.829120 0.070088
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/98 20.702975 2044.605787 98.759033 0.068589
- ---------------------------------------------------------------------------------------------------------------
2 div2 SMLCAP q 3/1/95 10.010905 1000.000000 99.891069 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 3/1/96 11.585005 1157.238531 99.891069 0.060423
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 3/1/97 13.363027 1334.039616 99.830646 0.052383
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/97 16.051216 1601.562444 99.778263 0.043610
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 3/1/98 16.909748 1686.487834 99.734652 0.041396
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- --------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 div2 HIBOND q 8/6/87 99.573648 1359.891354 9.31%
- --------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/88 99.451414 1464.501929 9.31%
- --------------------------------------------------------------------------------------------
2 div2 HIBOND q 8/6/89 99.340261 1608.711721 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/90 99.223524 1529.954112 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/91 99.117623 1684.702241 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/92 99.028640 2003.197173 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/93 98.951902 2321.084596 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/94 98.875486 2329.038681 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/95 98.803553 2472.364165 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/96 98.738006 2711.458984 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 8/6/97 98.681858 3163.566680 9.31%
- --------------------------------------------------------------------------------------------
2 DIV2 HIBOND Q 12/31/97 98.628087 3301.647424 9.31%
- --------------------------------------------------------------------------------------------
2 div2 INTLEQ q 11/1/92 100.000000 1000.000000 11.95%
- --------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/93 99.739732 1299.113900 11.95%
- --------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/94 99.493822 1371.572176 11.95%
- --------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/95 99.245781 1356.405590 11.95%
- --------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/96 99.031546 1567.050828 11.95%
- --------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 11/1/97 98.841497 1763.081445 11.95%
- --------------------------------------------------------------------------------------------
2 DIV2 INTLEQ Q 12/31/97 98.654864 1791.970212 11.95%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/84 202.052449 1000.000000 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/85 202.007192 1160.543037 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/86 201.967878 1335.697599 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/87 201.929811 1379.178994 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/88 201.893532 1446.904117 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/89 201.859829 1557.221003 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/90 201.828188 1658.477320 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/91 201.798977 1796.164868 6.82%
- --------------------------------------------------------------------------------------------
2 div2 LIMMAT q 9/10/92 201.772189 1958.375444 6.82%
- --------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/93 201.746715 2059.141771 6.82%
- --------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/94 201.720897 2031.414157 6.82%
- --------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/95 201.696590 2157.456855 6.82%
- --------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/96 201.673007 2223.443092 6.82%
- --------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 9/10/97 201.650898 2371.368586 6.82%
- --------------------------------------------------------------------------------------------
2 DIV2 LIMMAT Q 12/31/97 201.629128 2408.082690 6.82%
- --------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/94 176.367123 1000.000000 23.01%
- --------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/95 176.344973 1034.976052 23.01%
- --------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/96 176.328859 1422.524251 23.01%
- --------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/97 176.315760 1749.837471 23.01%
- --------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 12/31/97 176.305285 2188.148873 23.01%
- --------------------------------------------------------------------------------------------
2 DIV2 PARTNR Q 3/22/98 176.295844 2427.561867 23.01%
- --------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/87 99.853714 1000.000000 6.63%
- --------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/88 99.716116 1029.056053 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/89 99.581682 1051.864675 6.63%
- --------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/90 99.459631 1157.161285 6.63%
- --------------------------------------------------------------------------------------------
2 div2 QUALBD q 3/17/91 99.348327 1267.473240 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/92 99.246299 1381.285974 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/93 99.156334 1565.076539 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/94 99.068704 1605.347216 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/95 98.982647 1633.283056 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/96 98.904317 1792.977506 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/97 98.829120 1866.286146 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 12/31/97 98.759033 2000.890891 6.63%
- --------------------------------------------------------------------------------------------
2 DIV2 QUALBD Q 3/17/98 98.690444 2043.185787 6.63%
- --------------------------------------------------------------------------------------------
2 div2 SMLCAP q 3/1/95 99.891069 1000.000000 18.03%
- --------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 3/1/96 99.830646 1156.538531 18.03%
- --------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 3/1/97 99.778263 1333.339616 18.03%
- --------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 12/31/97 99.734652 1600.862444 18.03%
- --------------------------------------------------------------------------------------------
2 DIV2 SMLCAP Q 3/1/98 99.693256 1685.787834 18.03%
- --------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 2 - Diversifier II Variable/Fixed Annuity Contracts
Diversifier II - Inception - 2
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- ---------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $1000 sales load
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2 div2 VALUEQ q 3/17/87 10.134586 1000.000000 98.672013 0.000000
- ---------------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 3/17/88 10.617116 1047.612206 98.672013 0.408774
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/89 12.355591 1214.100391 98.263239 0.351258
- ---------------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 3/17/90 12.933143 1266.309651 97.911981 0.335572
- ---------------------------------------------------------------------------------------------------------------
2 div2 VALUEQ q 3/17/91 13.643553 1331.288908 97.576409 0.318099
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/92 15.775871 1534.334553 97.258310 0.275104
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/93 17.218502 1669.905533 96.983206 0.252054
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/94 18.356274 1775.623529 96.731152 0.236431
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/95 19.989840 1928.914024 96.494721 0.217110
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/96 26.451059 2546.644748 96.277610 0.164077
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/97 31.932448 3069.140414 96.113534 0.135912
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 38.038246 3650.820385 95.977622 0.114096
- ---------------------------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/98 42.061529 4032.166479 95.863526 0.103182
- ---------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- --------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2 div2 VALUEQ q 3/17/87 98.672013 1000.000000 12.73%
- --------------------------------------------------------------------------------------------
2 div2 VALUEQ q 3/17/88 98.263239 1043.272206 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/89 97.911981 1209.760391 12.73%
- --------------------------------------------------------------------------------------------
2 div2 VALUEQ q 3/17/90 97.576409 1261.969651 12.73%
- --------------------------------------------------------------------------------------------
2 div2 VALUEQ q 3/17/91 97.258310 1326.948908 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/92 96.983206 1529.994553 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/93 96.731152 1665.565533 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/94 96.494721 1771.283529 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/95 96.277610 1924.574024 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/96 96.113534 2542.304748 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/97 95.977622 3064.800414 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 12/31/97 95.863526 3646.480385 12.73%
- --------------------------------------------------------------------------------------------
2 DIV2 VALUEQ Q 3/17/98 95.760344 4027.826479 12.73%
- --------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
Diversifer II - Inception - 3
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 div2 BALFND q 2/28/89 6.791578 10000.000000 1472.411861 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/90 7.572278 11149.511940 1472.411861 0.129419
- --------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/91 8.499080 12513.046251 1472.282441 0.115307
- --------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/92 9.751932 14356.473790 1472.167135 0.100493
- --------------------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/93 10.022615 14753.957205 1472.066642 0.097779
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/94 10.787779 15879.274788 1471.968863 0.090844
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/95 10.674849 15712.075603 1471.878019 0.091805
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/96 12.804422 18845.371787 1471.786215 0.076536
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/97 13.816279 20333.551528 1471.709679 0.070931
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 15.550604 22884.871399 1471.638748 0.063020
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/98 16.173137 23799.995852 1471.575728 0.060594
- --------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/87 5.888807 10000.000000 1698.136821 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/88 5.810044 9866.249650 1698.136821 0.335626
- --------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/89 7.698169 13069.960532 1697.801196 0.253307
- --------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/90 6.964679 11822.876131 1697.547889 0.279984
- --------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/91 9.346041 15862.735422 1697.267904 0.208644
- --------------------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/92 10.053957 17062.160826 1697.059260 0.193953
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/93 10.849833 18410.705198 1696.865306 0.179726
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/94 10.931772 18547.779918 1696.685580 0.178379
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/95 13.831774 23465.704194 1696.507201 0.140980
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/96 13.573655 23025.889841 1696.366221 0.143661
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/97 13.272217 22512.633905 1696.222561 0.146923
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 12.689870 21522.979346 1696.075637 0.153666
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 10/1/96 9.276035 10000.000000 1078.046816 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 10/1/97 11.085709 11950.913294 1078.046816 0.006314
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 8.974573 9674.953181 1078.040502 0.007800
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/89 6.153672 10000.000000 1625.045989 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/90 6.151043 9995.727754 1625.045989 0.055275
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/91 7.592009 12336.944123 1624.990714 0.044784
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/92 8.409222 13664.531061 1624.945930 0.040432
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/93 9.747655 15839.018201 1624.905498 0.034880
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/94 10.087746 16391.282074 1624.870618 0.033704
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 9/6/95 10.750516 17467.835235 1624.836913 0.031626
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 9/6/96 11.579895 18815.074620 1624.805287 0.029361
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 9/6/97 14.622017 23757.501209 1624.775926 0.023253
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 15.040064 24436.384189 1624.752673 0.022606
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/86 4.238521 10000.000000 2359.313544 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/87 5.019478 11842.522427 2359.313544 0.316766
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/88 5.047448 11906.913567 2358.996778 0.315011
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/89 6.178431 14572.952548 2358.681767 0.257347
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/90 4.543676 10715.916435 2358.424420 0.349937
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/91 5.881881 13869.913499 2358.074483 0.270322
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/92 6.591041 15540.383898 2357.804161 0.241237
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/93 8.467128 19961.787053 2357.562925 0.187785
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 10/9/95 11.145047 26273.056730 2357.375140 0.142664
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 10/9/96 12.785988 30139.546145 2357.232476 0.124355
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 10/9/97 16.956827 39969.074622 2357.108121 0.093768
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 17.020857 40118.404251 2357.014353 0.093415
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/86 3.868619 10000.000000 2584.901744 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/87 4.875669 12603.125301 2584.901744 0.412251
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/88 4.588422 11858.728448 2584.489493 0.438059
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/89 6.036553 15598.763435 2584.051434 0.332971
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- --------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 div2 BALFND q 2/28/89 1472.411861 10000.000000 9.81%
- --------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/90 1472.282441 11148.531940 9.81%
- --------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/91 1472.167135 12512.066251 9.81%
- --------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/92 1472.066642 14355.493790 9.81%
- --------------------------------------------------------------------------------------------------------------
3 div2 BALFND q 2/28/93 1471.968863 14752.977205 9.81%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/94 1471.878019 15878.294788 9.81%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/95 1471.786215 15711.095603 9.81%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/96 1471.709679 18844.391787 9.81%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/97 1471.638748 20332.571528 9.81%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 12/31/97 1471.575728 22883.891399 9.81%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 BALFND Q 2/28/98 1471.515134 23799.015852 9.81%
- --------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/87 1698.136821 10000.000000 7.87%
- --------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/88 1697.801196 9864.299650 7.87%
- --------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/89 1697.547889 13068.010532 7.87%
- --------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/90 1697.267904 11820.926131 7.87%
- --------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/91 1697.059260 15860.785422 7.87%
- --------------------------------------------------------------------------------------------------------------
3 div2 CAPAPP q 11/20/92 1696.865306 17060.210826 7.87%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/93 1696.685580 18408.755198 7.87%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/94 1696.507201 18545.829918 7.87%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/95 1696.366221 23463.754194 7.87%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/96 1696.222561 23023.939841 7.87%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 11/20/97 1696.075637 22510.683905 7.87%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 CAPAPP Q 12/31/97 1695.921971 21521.029346 7.87%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 10/1/96 1078.046816 10000.000000 -2.61%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 10/1/97 1078.040502 11950.843294 -2.61%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 EMGMKT Q 12/31/97 1078.032702 9674.883181 -2.61%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/89 1625.045989 10000.000000 11.33%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/90 1624.990714 9995.387754 11.33%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/91 1624.945930 12336.604123 11.33%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/92 1624.905498 13664.191061 11.33%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/93 1624.870618 15838.678201 11.33%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDASM q 9/6/94 1624.836913 16390.942074 11.33%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 9/6/95 1624.805287 17467.495235 11.33%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 9/6/96 1624.775926 18814.734620 11.33%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 9/6/97 1624.752673 23757.161209 11.33%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDASM Q 12/31/97 1624.730067 24436.044189 11.33%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/86 2359.313544 10000.000000 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/87 2358.996778 11840.932427 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/88 2358.681767 11905.323567 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/89 2358.424420 14571.362548 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/90 2358.074483 10714.326435 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/91 2357.804161 13868.323499 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/92 2357.562925 15538.793898 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDEQI q 10/9/93 2357.375140 19960.197053 13.16%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 10/9/95 2357.232476 26271.466730 13.16%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 10/9/96 2357.108121 30137.956145 13.16%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 10/9/97 2357.014353 39967.484622 13.16%
- --------------------------------------------------------------------------------------------------------------
3 DIV2 FIDEQI Q 12/31/97 2356.920938 40116.814251 13.16%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/86 2584.901744 10000.000000 14.11%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/87 2584.489493 12601.115301 14.11%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/88 2584.051434 11856.718448 14.11%
- --------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/89 2583.718462 15596.753435 14.11%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
Page 1
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
Diversifer II - Inception - 3
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 div2 FIDGRO q 10/9/90 4.755716 12287.431231 2583.718462 0.422649
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/91 6.488444 16761.570218 2583.295813 0.309782
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/92 6.847898 17688.024879 2582.986032 0.293521
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/93 9.336172 24112.461504 2582.692511 0.215292
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 10/9/95 12.054638 31130.828020 2582.477219 0.166741
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 10/9/96 13.936113 35987.370627 2582.310478 0.144230
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 10/9/97 17.656557 45592.165554 2582.166249 0.113839
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/97 17.072612 44082.378959 2582.052410 0.117732
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/92 4.845444 10000.000000 2063.794360 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/93 5.486802 11323.631023 2063.794360 0.023693
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/94 5.737449 11840.778950 2063.770667 0.022658
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/95 6.880634 14199.894717 2063.748009 0.018894
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/96 8.306792 17142.968505 2063.729115 0.015650
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/97 11.449351 23628.179829 2063.713465 0.011354
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/97 12.162415 25099.601511 2063.702111 0.010689
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/84 10.000000 10000.000000 1000.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/85 11.456214 11456.214000 1000.000000 0.559522
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/86 13.905894 13898.113351 999.440478 0.460956
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/87 17.320528 17302.852794 998.979523 0.370081
- --------------------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/88 19.010671 18984.235552 998.609442 0.337179
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/89 23.634078 23593.244519 998.272263 0.271219
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/90 23.917918 23870.107135 998.001044 0.268000
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/91 26.982387 26921.219119 997.733044 0.237562
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/92 29.524429 29450.484528 997.495482 0.217108
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/93 32.307338 32219.409489 997.278373 0.198407
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/94 34.745700 34644.241390 997.079966 0.184483
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/95 40.713405 40587.009550 996.895483 0.157442
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/96 44.656630 44510.961912 996.738041 0.143540
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/97 54.568718 54382.884311 996.594501 0.117467
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/97 56.265009 56066.789337 996.477035 0.113925
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/83 10.000000 10000.000000 1000.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/84 9.197711 9197.711000 1000.000000 0.379442
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/85 11.236685 11232.421327 999.620558 0.310590
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/86 14.477963 14467.972741 999.309968 0.241056
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/87 16.408210 16392.932511 999.068912 0.212698
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/88 15.804408 15786.331132 998.856214 0.220824
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/89 19.056625 19030.620121 998.635389 0.183138
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/90 21.657087 21623.567258 998.452251 0.161148
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/91 22.173661 22135.768486 998.291102 0.157394
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/92 24.003105 23958.308210 998.133709 0.145398
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/93 26.278724 26225.859372 997.988311 0.132807
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/94 25.928673 25873.069055 997.855504 0.134600
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/95 28.144778 28080.633338 997.720904 0.124002
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/96 35.760410 35674.474227 997.596902 0.097594
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 47.858840 47739.159779 997.499308 0.072923
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/83 10.000000 10000.000000 1000.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/84 10.206904 10206.904000 1000.000000 0.341925
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/85 11.434085 11430.175396 999.658075 0.305228
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/86 14.161105 14151.940596 999.352847 0.246450
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/87 18.762647 18745.880645 999.106397 0.186008
- --------------------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/88 15.404132 15387.501534 998.920389 0.226563
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/89 20.657475 20630.492757 998.693827 0.168946
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- -------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 div2 FIDGRO q 10/9/90 2583.295813 12285.421231 14.11%
- -------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/91 2582.986032 16759.560218 14.11%
- -------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/92 2582.692511 17686.014879 14.11%
- -------------------------------------------------------------------------------------------------------------
3 div2 FIDGRO q 10/9/93 2582.477219 24110.451504 14.11%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 10/9/95 2582.310478 31128.818020 14.11%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 10/9/96 2582.166249 35985.360627 14.11%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 10/9/97 2582.052410 45590.155554 14.11%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDGRO Q 12/31/97 2581.934678 44080.368959 14.11%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/92 2063.794360 10000.000000 18.78%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/93 2063.770667 11323.501023 18.78%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/94 2063.748009 11840.648950 18.78%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/95 2063.729115 14199.764717 18.78%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/96 2063.713465 17142.838505 18.78%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 8/27/97 2063.702111 23628.049829 18.78%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FIDIND Q 12/31/97 2063.691422 25099.471511 18.78%
- -------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/84 1000.000000 10000.000000 13.70%
- -------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/85 999.440478 11449.804000 13.70%
- -------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/86 998.979523 13891.703351 13.70%
- -------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/87 998.609442 17296.442794 13.70%
- -------------------------------------------------------------------------------------------------------------
3 div2 FLEXMN q 7/31/88 998.272263 18977.825552 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/89 998.001044 23586.834519 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/90 997.733044 23863.697135 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/91 997.495482 26914.809119 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/92 997.278373 29444.074528 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/93 997.079966 32212.999489 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/94 996.895483 34637.831390 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/95 996.738041 40580.599550 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/96 996.594501 44504.551912 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 7/31/97 996.477035 54376.474311 13.70%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 FLEXMN Q 12/31/97 996.363110 56060.379337 13.70%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/83 1000.000000 10000.000000 11.30%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/84 999.620558 9194.221000 11.30%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/85 999.309968 11228.931327 11.30%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/86 999.068912 14464.482741 11.30%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/87 998.856214 16389.442511 11.30%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWeq n 6/1/88 998.635389 15782.841132 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/89 998.452251 19027.130121 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/90 998.291102 21620.077258 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/91 998.133709 22132.278486 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/92 997.988311 23954.818210 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/93 997.855504 26222.369372 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/94 997.720904 25869.579055 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/95 997.596902 28077.143338 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 6/1/96 997.499308 35670.984227 11.30%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ N 12/31/97 997.426385 47735.669779 11.30%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/83 1000.000000 10000.000000 11.53%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/84 999.658075 10203.414000 11.53%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/85 999.352847 11426.685396 11.53%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/86 999.106397 14148.450596 11.53%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/87 998.920389 18742.390645 11.53%
- -------------------------------------------------------------------------------------------------------------
3 div2 GROWEQ q 8/11/88 998.693827 15384.011534 11.53%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/89 998.524881 20627.002757 11.53%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Page 2
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
Diversifer II - Inception - 3
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 div2 GROWEQ q 8/11/90 19.674516 19645.493739 998.524881 0.177387
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/91 22.338239 22301.324920 998.347494 0.156234
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/92 24.075117 24031.571358 998.191259 0.144963
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/93 27.266028 27212.758264 998.046296 0.127998
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/94 25.356130 25303.346102 997.918298 0.137639
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/95 30.687797 30619.690315 997.780659 0.113726
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/96 34.821598 34740.356881 997.666933 0.100225
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/97 47.458620 47343.139315 997.566708 0.073538
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 48.256483 48135.512208 997.493170 0.072322
- --------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/84 10.000000 10000.000000 1000.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/85 11.589649 11589.649000 1000.000000 0.155311
- --------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/86 12.927177 12925.169267 999.844689 0.139242
- --------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/87 13.657141 13653.118254 999.705447 0.131799
- --------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/88 14.725803 14719.524629 999.573648 0.122234
- --------------------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/89 16.193955 16185.071221 999.451414 0.111153
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/90 15.419268 15409.095312 999.340261 0.116737
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/91 16.997000 16983.802241 999.223524 0.105901
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/92 20.228463 20210.613873 999.117623 0.088984
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/93 23.456695 23433.910096 999.028640 0.076737
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/94 23.555269 23530.580781 998.951902 0.076416
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/95 25.023029 24994.890265 998.875486 0.071934
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/96 27.461148 27428.292184 998.803553 0.065547
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/97 32.058240 32017.782680 998.738006 0.056148
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 33.475732 33431.606224 998.681858 0.053770
- --------------------------------------------------------------------------------------------------------------------------
3 div2 INTLEQ q 11/1/92 10.000000 10000.000000 1000.000000 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/93 13.025039 13025.039000 1000.000000 0.260268
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/94 13.785501 13781.913076 999.739732 0.245911
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/95 13.667136 13660.217990 999.493822 0.248040
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/96 15.823754 15811.819428 999.245781 0.214235
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/97 17.837462 17820.187245 999.031546 0.190049
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 18.164033 18142.989912 998.841497 0.186633
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/84 4.949210 10000.000000 2020.524488 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/85 5.745058 11608.030373 2020.524488 0.045256
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/86 6.613416 13362.269677 2020.479231 0.039314
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/87 6.829992 13799.588473 2020.439917 0.038067
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/88 7.166669 14479.551306 2020.401850 0.036279
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/89 7.714368 15585.843509 2020.365571 0.033703
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/90 8.217273 16601.618507 2020.331868 0.031641
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/91 8.900763 17982.213509 2020.300227 0.029211
- --------------------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/92 9.705874 19608.495927 2020.271016 0.026788
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/93 10.206569 20619.762111 2020.244228 0.025474
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/94 10.070420 20344.451348 2020.218754 0.025818
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/95 10.696546 21609.086670 2020.192936 0.024307
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/96 11.024991 22272.340955 2020.168629 0.023583
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/97 11.759772 23756.445153 2020.145046 0.022109
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 11.943129 24126.588834 2020.122937 0.021770
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/94 5.669991 10000.000000 1763.671230 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/95 5.869042 10351.060522 1763.671230 0.022150
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/96 8.067450 14228.150768 1763.649080 0.016114
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/97 9.924453 17503.092476 1763.632966 0.013099
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 12.411136 21888.526017 1763.619867 0.010474
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/98 13.769819 24284.582116 1763.609392 0.009441
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- ------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 div2 GROWEQ q 8/11/90 998.347494 19642.003739 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/91 998.191259 22297.834920 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/92 998.046296 24028.081358 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/93 997.918298 27209.268264 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/94 997.780659 25299.856102 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/95 997.666933 30616.200315 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/96 997.566708 34736.866881 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 8/11/97 997.493170 47339.649315 11.53%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 GROWEQ Q 12/31/97 997.420848 48132.022208 9.42%
- ------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/84 1000.000000 10000.000000 9.42%
- ------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/85 999.844689 11587.849000 9.42%
- ------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/86 999.705447 12923.369267 9.42%
- ------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/87 999.573648 13651.318254 9.42%
- ------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/88 999.451414 14717.724629 9.42%
- ------------------------------------------------------------------------------------------------------------
3 div2 HIBOND q 8/6/89 999.340261 16183.271221 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/90 999.223524 15407.295312 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/91 999.117623 16982.002241 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/92 999.028640 20208.813873 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/93 998.951902 23432.110096 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/94 998.875486 23528.780781 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/95 998.803553 24993.090265 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/96 998.738006 27426.492184 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 8/6/97 998.681858 32015.982680 9.42%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 HIBOND Q 12/31/97 998.628087 33429.806224 9.42%
- ------------------------------------------------------------------------------------------------------------
3 div2 INTLEQ q 11/1/92 1000.000000 10000.000000 12.22%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/93 999.739732 13021.649000 12.22%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/94 999.493822 13778.523076 12.22%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/95 999.245781 13656.827990 12.22%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/96 999.031546 15808.429428 12.22%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 11/1/97 998.841497 17816.797245 12.22%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 INTLEQ Q 12/31/97 998.654864 18139.599912 12.22%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/84 2020.524488 10000.000000 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/85 2020.479231 11607.770373 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/86 2020.439917 13362.009677 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/87 2020.401850 13799.328473 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/88 2020.365571 14479.291306 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/89 2020.331868 15585.583509 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/90 2020.300227 16601.358507 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/91 2020.271016 17981.953509 6.84%
- ------------------------------------------------------------------------------------------------------------
3 div2 LIMMAT q 9/10/92 2020.244228 19608.235927 6.84%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/93 2020.218754 20619.502111 6.84%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/94 2020.192936 20344.191348 6.84%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/95 2020.168629 21608.826670 6.84%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/96 2020.145046 22272.080955 6.84%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 9/10/97 2020.122937 23756.185153 6.84%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 LIMMAT Q 12/31/97 2020.101167 24126.328834 6.84%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/94 1763.671230 10000.000000 23.02%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/95 1763.649080 10350.930522 23.02%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/96 1763.632966 14228.020768 23.02%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/97 1763.619867 17502.962476 23.02%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 12/31/97 1763.609392 21888.396017 23.02%
- ------------------------------------------------------------------------------------------------------------
3 DIV2 PARTNR Q 3/22/98 1763.599951 24284.452116 23.02%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
Page 3
<PAGE>
Table 3 - Diversifier II Variable/Fixed Annuity Contracts
Diversifer II - Inception - 3
<TABLE>
<CAPTION>
Q=qualified $30 contract
N=nonqualified Beginning # of units fee & deferred
- --------------------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate Unit values Value at $10000 sales load
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
3 div2 QUALBD q 3/17/87 10.014650 10000.000000 998.537143 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 3/17/88 10.319857 10304.760526 998.537143 0.137599
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/89 10.562833 10545.927654 998.399544 0.134434
- --------------------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 3/17/90 11.634482 11614.297461 998.265111 0.122051
- --------------------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 3/17/91 12.757872 12734.181393 998.143060 0.111304
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/92 13.917758 13890.364454 998.031756 0.102028
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/93 15.783929 15751.251972 997.929728 0.089965
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/94 16.204383 16169.377692 997.839763 0.087631
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/95 16.500701 16463.609608 997.752132 0.086057
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/96 18.128405 18086.094670 997.666075 0.078330
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/97 18.883970 18838.417055 997.587745 0.075196
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 20.260333 20209.936420 997.512549 0.070088
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/98 20.702975 20650.026346 997.442462 0.068589
- --------------------------------------------------------------------------------------------------------------------------
3 div2 SMLCAP q 3/1/95 10.010905 10000.000000 998.910688 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 3/1/96 11.585005 11572.385314 998.910688 0.060423
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 3/1/97 13.363027 13347.663060 998.850265 0.052383
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 16.051216 16031.920538 998.797882 0.043610
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 3/1/98 16.909748 16888.683040 998.754271 0.041396
- --------------------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/87 10.134586 10000.000000 986.720128 0.000000
- --------------------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/88 10.617116 10476.122064 986.720128 0.408774
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/89 12.355591 12186.459696 986.311355 0.351258
- --------------------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/90 12.933143 12751.562921 985.960097 0.335572
- --------------------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/91 13.643553 13447.420440 985.624525 0.318099
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/92 15.775871 15544.067067 985.306426 0.275104
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/93 17.218502 16960.763788 985.031322 0.252054
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/94 18.356274 18076.878065 984.779268 0.236431
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/95 19.989840 19680.853768 984.542836 0.217110
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/96 26.451059 26036.457850 984.325726 0.164077
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/97 31.932448 31426.690688 984.161649 0.135912
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 38.038246 37430.613067 984.025737 0.114096
- --------------------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/98 42.061529 41384.828048 983.911642 0.103182
- --------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Average
Q=qualified # of units Annual Total
N=nonqualified at end of Ending return from
- -------------------------------------------------------------------------------------------------------------
amethod system fund qnonq accdate period Value inception
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
3 div2 QUALBD q 3/17/87 998.537143 10000.000000 6.73%
- -------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 3/17/88 998.399544 10303.340526 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/89 998.265111 10544.507654 6.73%
- -------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 3/17/90 998.143060 11612.877461 6.73%
- -------------------------------------------------------------------------------------------------------------
3 div2 QUALBD q 3/17/91 998.031756 12732.761393 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/92 997.929728 13888.944454 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/93 997.839763 15749.831972 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/94 997.752132 16167.957692 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/95 997.666075 16462.189608 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/96 997.587745 18084.674670 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/97 997.512549 18836.997055 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 12/31/97 997.442462 20208.516420 6.73%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 QUALBD Q 3/17/98 997.373872 20648.606346 6.73%
- -------------------------------------------------------------------------------------------------------------
3 div2 SMLCAP q 3/1/95 998.910688 10000.000000 18.09%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 3/1/96 998.850265 11571.685314 18.09%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 3/1/97 998.797882 13346.963060 18.09%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 12/31/97 998.754271 16031.220538 18.09%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 SMLCAP Q 3/1/98 998.712875 16887.983040 18.09%
- -------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/87 986.720128 10000.000000 13.00%
- -------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/88 986.311355 10471.782064 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/89 985.960097 12182.119696 13.00%
- -------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/90 985.624525 12747.222921 13.00%
- -------------------------------------------------------------------------------------------------------------
3 div2 VALUEQ q 3/17/91 985.306426 13443.080440 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/92 985.031322 15539.727067 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/93 984.779268 16956.423788 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/94 984.542836 18072.538065 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/95 984.325726 19676.513768 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/96 984.161649 26032.117850 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/97 984.025737 31422.350688 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 12/31/96 983.911642 37426.273067 13.00%
- -------------------------------------------------------------------------------------------------------------
3 DIV2 VALUEQ Q 3/17/98 983.808459 41380.488048 13.00%
- -------------------------------------------------------------------------------------------------------------
</TABLE>
Page 4
<PAGE>
Exhibit 14(b)
The Penn Mutual Life Insurance Company
Power of Attorney
-----------------
Edmond F. Notebaert, whose signature appears below, does hereby constitute
and appoint Robert E. Chappell and Daniel J. Toran, and each of them severally,
his true and lawful attorneys and agents, with power of substitution and
resubstitution, to do any and all acts and things and to execute any and all
instruments which said attorney and agents, and each of them, may deem necessary
or advisable or which may be required to enable The Penn Mutual Life Insurance
Company (the "Company") to comply with the Investment Company Act of 1940 and
the Securities Act of 1933, as amended, and any rules, regulations or
requirements of the Securities and Exchange Commission in respect thereof, in
connection with the filing and effectiveness of the Company's Registration
Statement on Form N-4 (SEC Registration No. 2-77283) pursuant to such Acts,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a trustee and/or officer of the Company such Registration Statement and any and
all amendments and supplements to such Registration Statement filed with the
Securities and Exchange Commission under said Acts, and any other instruments or
documents related thereto, and the undersigned does hereby ratify and confirm
all that said attorneys and agents, and each of them, shall do or cause to be
done by virtue hereof.
Date: April 17, 1998 /s/ EDMOND F. NOTEBAERT
-------------------------
Edmond F. Notebaert
<PAGE>
The Penn Mutual Life Insurance Company
Power of Attorney
-----------------
Robert H. Rock, whose signature appears below, does hereby constitute and
appoint Robert E. Chappell and Daniel J. Toran, and each of them severally, his
true and lawful attorneys and agents, with power of substitution and
resubstitution, to do any and all acts and things and to execute any and all
instruments which said attorney and agents, and each of them, may deem necessary
or advisable or which may be required to enable The Penn Mutual Life Insurance
Company (the "Company") to comply with the Investment Company Act of 1940 and
the Securities Act of 1933, as amended, and any rules, regulations or
requirements of the Securities and Exchange Commission in respect thereof, in
connection with the filing and effectiveness of the Company's Registration
Statement on Form N-4 (SEC Registration No.2-77283) pursuant to such Acts,
including specifically, but without limiting the generality of the foregoing,
the power and authority to sign in the name and on behalf of the undersigned as
a trustee and/or officer of the Company such Registration Statement and any and
all amendments and supplements to such Registration Statement filed with the
Securities and Exchange Commission under said Acts, and any other instruments or
documents related thereto, and the undersigned does hereby ratify and confirm
all that said attorneys and agents, and each of them, shall do or cause to be
done by virtue hereof.
Date: April 17, 1998 /s/ ROBERT H. ROCK
------------------------
Robert H. Rock
