INVESTORS
LIFE INSURANCE COMPANY
OF NORTH AMERICA
(Herein called Investors Life)
SEPARATE ACCOUNT I
FINANCIAL STATEMENTS
December 31, 1996
(Audited)
This report is submitted for the general information of owners of
Investors Life Insurance Company of North America Separate
Account I variable annuity contracts. This report is not
authorized for distribution to prospective purchasers of such
contracts unless it is accompanied by a current prospectus.
Investors Life Insurance
Company of North America
Administrative Offices: Austin, TX
Report of Independent Accountants
To the Contract Owners of Investors Life Insurance Company of
North America Separate Account I and the Board of Directors of
Investors Life Insurance Company of North America
In our opinion, the accompanying combined balance sheet and the
related individual statements of operations and of changes in
total assets present fairly, in all material respects, the
combined financial position of the subdivisions comprising the
Investors Life Insurance Company of North America Separate
Account I (the Separate Account) at December 31, 1996, the
results of each of their operations for the year then ended and
the changes in each of their total assets for the two years in
the period then ended, in conformity with generally accepted
accounting principles. These financial statements are the
responsibility of the Separate Account's management; our
responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted
auditing standards which 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, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the
opinion expressed above.
Price Waterhouse LLP
Dallas, Texas
February 19, 1997
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT I
COMBINED BALANCE SHEET
December 31, 1996
ASSETS
Investments at Market Value (Notes 1 and 2):
Portfolios of Putnam Capital Manager Trust:
Money Market Division
1,750,778 qualified shares (cost $1,750,778) $ 1,750,778
2,643,807 non-qualified shares (cost $2,643,807) 2,643,807
Income Division
315,446 qualified shares (cost $4,073,850) 4,167,043
568,203 non-qualified shares (cost $7,318,387) 7,505,962
Growth and Income II Division (formerly the Equity Division)
763,644 qualified shares (cost $15,198,687) 18,755,085
64,567 shares owned by Investors Life (cost $ 1,285,077) 1,585,777
369,096 non-qualified shares (cost $ 7,383,396) 9,065,002
64,623 shares owned by Investors Life (cost $ 1,292,709) 1,587,128
Voyager Division (formerly known as the Aggressive Equity Division)
19,290 qualified shares (cost $ 478,157) 627,489
38,329 shares owned by Investors Life (cost $ 950,110) 1,246,837
10,239 non-qualified shares (cost $ 246,639) 333,078
38,263 shares owned by Investors Life (cost $ 921,680) 1,244,696
Total Assets $ 50,512,682
========
CONTRACT OWNERS' EQUITY
Contract Owners' Equity (Notes 3 and 7):
Money Market Division
847,412 qualified accumulation units
outstanding ($2.0660297 per unit) $ 1,750,778
1,288,780 non-qualified accumulation
units outstanding ($2.0514024 per unit) 2,643,807
Income Division
1,313,122 qualified accumulation units
outstanding ($3.1733858 per unit) 4,167,043
2,394,183 non-qualified accumulation
units outstanding ($3.1350827 per unit) 7,505,962
Growth and Income II Division (formerly the Equity Division)
3,021,542 qualified accumulation units
outstanding ($6.2071238 per unit) 18,755,085
255,477 Investors Life equity ($6.2071238 per unit) 1,585,777
1,704,528 non-qualified accumulation
units outstanding ($5.3181887 per unit) 9,065,002
298,434 Investors Life equity ($5.3181887 per unit) 1,587,128
Voyager Division (formerly known as the Aggressive Equity Division)
251,632 qualified accumulation units
outstanding ($2.4936765 per unit) 627,489
500,000 Investors Life equity ($2.4936765 per unit) 1,246,837
133,799 non-qualified accumulation
units outstanding ($2.4893923 per unit) 333,078
500,000 Investors Life equity ($2.4893923 per unit) 1,244,696
________
Contract Owners' Equity $50,512,682
========
The accompanying notes are an integral part of these financial statements
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT I
INDIVIDUAL STATEMENTS OF OPERATIONS
Year Ended December 31, 1996
Money Money
Market Market
Qualified Non-Qualified
Investment Income:
Dividends $ 95,781 $ 134,754
Expenses:
Mortality risk and expense fees guarantees
(Notes 1 and 3) 23,138 32,542
_________ _________
Investment income-net 72,643 102,212
_________ _________
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 671,713 477,960
Cost of shares sold 671,713 477,960
_________ _________
Net realized gain on investments 0 0
_________ _________
Net unrealized gain (loss) on investments 0 0
_________ _________
Net realized and unrealized gain (loss)
on investments 0 0
_________ _________
Net Increase in Net Assets
from Investment Operations $ 72,643 $ 102,212
========= =========
Income Income
Qualified Non-Qualified
Investment Income:
Dividends $ 284,913 $ 485,044
Expenses:
Mortality risk and expense fees guarantees
(Notes 1 and 3) 55,011 94,181
_________ _________
Investment income-net 229,902 390,863
_________ _________
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized capital gain distributions 0 0
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 902,248 1,016,364
Cost of shares sold 837,645 952,796
_________ _________
Net realized gain on investments 64,603 63,568
_________ _________
Net unrealized gain (loss) on investments (250,811) (378,320)
_________ _________
Net realized and unrealized gain (loss) on
investments (186,208) (314,752)
_________ _________
Net Increase in Net Assets
from Investment Operations $ 43,694 $ 76,111
========= =========
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly (formerly
Equity Equity
Division) Division)
Investment Income:
Dividends $ 836,513 $ 404,385
Expenses:
Mortality risk and expense fees guarantees
(Notes 1 and 3) 235,401 117,828
_________ _________
Investment income-net 601,112 286,557
_________ _________
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized capital gain distributions 379,168 183,293
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 3,066,579 961,162
Cost of shares sold 2,370,623 746,297
_________ _________
Net realized gain on investments 695,956 214,865
_________ _________
Net unrealized gain (loss) on investments 1,997,565 1,148,474
_________ _________
Net realized and unrealized gain (loss) on
investments 3,072,689 1,546,632
_________ _________
Net Increase in Net Assets
from Investment Operations $ 3,673,801 $ 1,833,189
========= =========
Voyager Voyager
Qualified* Non-Qualified*
Investment Income:
Dividends $ 34,167 $ 28,945
Expenses:
Mortality risk and expense fees guarantees
(Notes 1 and 3) 22,322 18,587
_________ _________
Investment income-net 11,845 10,358
_________ _________
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized capital gain distributions 66,446 56,289
_________ _________
Net realized gain (loss) on investments:
Proceeds from sale of shares 148,690 48,247
Cost of shares sold 108,949 34,705
_________ _________
Net realized gain on investments 39,741 13,542
_________ _________
Net unrealized gain (loss) on investments 81,373 87,666
_________ _________
Net realized and unrealized gain (loss) on
investments 187,560 157,497
_________ _________
Net Increase in Net Assets
from Investment Operations $ 199,405 $ 167,855
========= =========
The accompanying notes are an integral part of these financial statements.
* Includes shares owned by Investors Life
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT I
INDIVIDUAL STATEMENTS OF CHANGES IN TOTAL ASSETS
Year Ended December 31, 1996
Money Money
Market Market
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 72,643 $ 102,212
Realized capital gain distributions 0 0
Net realized gain on investments 0 0
Net unrealized gain (loss) on investments 0 0
_________ _________
Net increase in net assets from
investment operations 72,643 102,212
--------- ---------
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 193,701 369,107
Net contract surrenders and transfers out (Note 3) (689,435) (418,286)
Benefit payments to annuitants (6,946) (45,762)
_________ _________
Net decrease from accumulation unit transactions (502,680) (94,941)
_________ _________
Net Increase (Decrease) in Net Assets (430,037) 7,271
Net Assets:
Net assets at December 31, 1995 2,180,815 2,636,535
_________ _________
Net assets at December 31, 1996 $ 1,750,778 $ 2,643,806
========= =========
Income Income
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 229,902 $ 390,863
Realized capital gain distributions 0 0
Net realized gain on investments 64,603 63,568
Net unrealized gain (loss) on investments (250,811) (378,320)
_________ _________
Net increase (decrease) in net assets from 43,694 76,111
investment operations _________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 31,739 45,238
Net contract surrenders and transfers out (Note 3) (847,678) (814,955)
Benefit payments to annuitants (17,397) (98,073)
_________ _________
Net decrease from accumulation unit transactions (833,336) (867,790)
_________ _________
Net Increase (Decrease) in Net Assets (789,642) (791,679)
Net Assets:
Net assets at December 31, 1995 4,956,685 8,297,641
_________ _________
Net assets at December 31, 1996 $ 4,167,043 $ 7,505,962
========= =========
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly (formerly
Equity Equity
Division) Division
Investment Operations:
Investment income-net $ 601,112 $ 286,557
Realized capital gain distributions 379,168 183,293
Net realized gain on investments 695,956 214,865
Net unrealized gain (loss) on investments 1,997,565 1,148,474
_________ _________
Net increase in net assets from 3,673,801 1,833,189
investment operations _________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 505,790 312,619
Net contract surrenders and transfers out (Note 3)(2,843,516) (662,722)
Benefit payments to annuitants (58,423) (122,302)
_________ _________
Net decrease from accumulation unit transactions 2,396,149 (472,405)
_________ _________
Net Increase (Decrease) in Net Assets 1,277,652 1,360,784
Net Assets:
Net assets at December 31, 1995 19,063,210 9,291,346
_________ _________
Net assets at December 31, 1996 $ 20,340,862 $ 10,652,130
========= =========
Voyager Voyager
Qualified* Non-Qualified*
Investment Operations:
Investment income-net $ 11,845 $ 10,358
Realized capital gain distributions 66,446 56,289
Net realized gain on investments 39,741 13,542
Net unrealized gain (loss) on investments 81,373 87,666
_________ _________
Net increase in net assets from 199,405 167,855
investment operations _________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 41,561 540
Net contract surrenders and transfers out (Note 3) (112,563) (30,200)
Benefit payments to annuitants 0 0
_________ _________
Net decrease from accumulation unit transactions (71,002) (29,660)
_________ _________
Net Increase (Decrease) in Net Assets 128,403 138,195
Net Assets:
Net assets at December 31, 1995 1,745,924 1,439,579
_________ _________
Net assets at December 31, 1996 $1,874,327 $1,577,774
========= =========
Year Ended December 31, 1995
Money Money
Market Market
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 109,230 $ 119,671
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 0 0
Net unrealized gain on investments 0 0
_________ _________
Net increase in net assets from 109,230 119,671
investment operations _________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 194,606 44,620
Net contract surrenders and transfers out (Note 3) (951,236) (629,306)
Benefit payments to annuitants (11,036) (43,271)
_________ _________
Net increase (decrease)
from accumulation unit transactions (767,666) (627,957)
_________ _________
Net increase (decrease) in Net Assets (658,436) (508,286)
Net Assets:
Net assets at December 31, 1994 2,839,250 3,144,821
_________ _________
Net assets at December 31, 1995 $ 2,180,815 $ 2,636,535
========= =========
Income Income
Qualified Non-Qualified
Investment Operations:
Investment income-net $ 43,067 $ 61,442
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 36,986 6,755
Net unrealized gain on investments 773,455 1,283,698
_________ _________
Net increase in net assets from
investment operations 853,508 1,351,895
_________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 85,031 13,876
Net contract surrenders and transfers out (Note 3)(1,289,036) (906,494)
Benefit payments to annuitants (6,214) (97,764)
_________ _________
Net increase (decrease) from accumulation
unit transactions (1,210,219) (990,382)
_________ _________
Net increase (decrease) in Net Assets (356,711) 361,513
Net Assets:
Net assets at December 31, 1994 5,313,396 7,936,128
_________ _________
Net assets at December 31, 1995 $ 4,956,685 $ 8,297,641
========= =========
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly (formerly
Equity Equity
Division) (1) Division) (1)
Investment Operations:
Investment income-net $ (56,510) $ (31,704)
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (301,051) (162,853)
Net unrealized gain on investments 5,614,225 2,596,107
_________ _________
Net increase (decrease) in net assets from 5,256,664 2,401,550
investment operations _________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 3,629,931 2,506,850
Net contract surrenders and transfers out (Note 3)(3,868,301) (1,281,644)
Benefit payments to annuitants (49,704) (32,262)
_________ _________
Net increase (decrease) from accumulation
unit transactions (288,074) 1,192,945
_________ _________
Net increase (decrease) in Net Assets 4,968,589 3,594,495
Net Assets:
Net assets at December 31, 1994 14,094,620 5,696,852
_________ _________
Net assets at December 31, 1995 $ 19,063,210 $ 9,291,346
========= =========
Voyager Voyager
Qualified* Non-Qualified *
Investment Operations:
Investment income-net $ (9,495) $ (7,566)
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 13,825 7,520
Net unrealized gain on investments 485,685 393,641
_________ _________
Net increase in net assets from 490,015 393,595
investment operations _________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 66,421 54,096
Net contract surrenders and transfers out (Note 3) (109,354) (62,157)
Benefit payments to annuitants 0 0
_________ _________
Net increase (decrease) from accumulation
unit transactions (42,933) (8,061)
_________ _________
Net increase (decrease) in Net Assets 447,082 385,534
Net Assets:
Net assets at December 31, 1994 1,298,842 1,054,045
_________ _________
Net assets at December 31, 1995 $ 1,745,924 $ 1,439,579
========= =========
Growth and Growth and
Income Income
Qualified* Non-Qualified *
Investment Operations:
Investment income-net $ 16,096 $ 11,935
Realized capital gain distributions 0 0
Net realized gain (loss) on investments (15,532) (3,466)
Net unrealized gain on investments 0 0
_________ _________
Net increase in net assets from 564 8,469
investment operations _________ _________
Accumulation Unit Transactions:
Net contract considerations and transfers in
(Note 3) 30,302 43,844
Net contract surrenders and transfers out (Note 3)(3,115,506) (2,255,410)
Benefit payments to annuitants (3,932) (19,434)
_________ _________
Net increase (decrease) from accumulation
unit transactions (3,089,136) (2,231,000)
_________ _________
Net increase (decrease) in Net Assets (3,088,572) (2,222,531)
Net Assets:
Net assets at December 31, 1994 3,088,572 2,222,531
_________ _________
Net assets at December 31, 1995 $ 0 $ 0
========= =========
The accompanying notes are an integral part of these financial statements.
* Includes shares owned by Investors Life
(1) Includes activity due to the merger of the Growth and Income Division
with Equity Division as of April 18, 1995.
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS
December 31, 1996
Note 1. Organization
Investors Life Insurance Company of North America ("Investors
Life") established Investors Life Insurance Company of North
America - Separate Account I (the "Separate Account") as a unit
investment trust registered under the Investment Company Act of
1940, as amended. Operations of the Separate Account commenced
on September 15, 1982. The Separate Account currently has four
Divisions each corresponding to a portfolio of PCM Trust. Prior
to the substitution of shares of PCM Trust for shares of CIGNA
Annuity Funds Group as the underlying funding vehicle for the
Separate Account, the Separate Account contained five divisions.
In connection with the substitution, the Equity Division was
merged with the Growth and Income Division; thereafter, the
Equity Division was renamed the Growth and Income Division II.
See Note 6 for a description of the substitution. Each Division
contains two subdivisions, one for the allocation of tax
qualified and one for the allocation of non-tax qualified net
payments made under variable annuity contracts.
Net purchase payments to the Separate Account may be allocated to
one or more of the following classes of shares of the PCM Trust:
PCM Money Market Fund, PCM Income Fund, PCM Growth and Income
Fund or PCM Voyager Fund. The contract owners' equity of each
subdivision of the Separate Account is affected by the investment
results of the appropriate portfolio(s) of shares of PCM Trust
designated for the subdivision and the mortality risk and expense
fees guarantees assessed on the Separate Account assets (See Note
3), and the administrative charge deductions.
Note 2. Significant Accounting Policies
Following is a summary of the significant accounting policies of
the Separate Account:
(a) the market value of the investments is based on closing bid
prices (net asset value) at December 31, 1996; (b) investment
transactions are accounted for on the trade date and income is
recorded on the ex-dividend date; (c) the cost of investments
sold is determined on the specific identification method. See
Notes 4 and 5 with respect to income taxes.
Note 3. Contract Owner Transactions
Net contract considerations represent gross contributions under
variable annuity contracts less deductions by Investors Life for
any applicable premium taxes. Net contract considerations for
the year ended December 31, 1996, were $509,041 after deductions
for premium taxes of $4. Contract owners have limited rights to
transfer their contract values between Separate Account
Divisions. For the year ended December 31, 1996, the total of all
transfers was $991,249. Contract surrender benefits amounted to
$5,428,105. Annuity benefits amounted to $348,903. Investors
Life charges a fee to each Separate Account subdivision for
assuming the mortality risk and expense fees guarantees. The
daily equivalent of the annual charge of 1.2% is made against the
average net value of the Separate Account.
Note 4. Income Taxes
Investors Life is taxed as a life insurance company under the
Internal Revenue Code. The Separate Account is taxed as a part
of Investors Life. Under the current provisions of the Code, no
federal income taxes are payable by Investors Life with respect
to the operations of the Separate Account when such operations
are used to determine the contract values of the Separate
Account. Investors Life retains the right to make adjustments
for taxes to Separate Account assets should future changes in the
Internal Revenue Code so warrant.
Note 5. Diversification Requirements
Under the provisions of Section 817(h) of the Internal Revenue
Code, (the "Code"), a variable annuity contract, other than a
contract issued in connection with certain types of employee
benefit plans, will not be treated as an annuity contract for
federal tax purposes for any period for which the investments of
the segregated asset account on which the contract is based are
not adequately diversified. The Code provides that the
"adequately diversified" requirement may be met if the underlying
investments satisfy either a statutory safe harbor test or
diversification requirements set forth in regulations issued by
the Secretary of Treasury.
The Internal Revenue Service has issued regulations under section
817(h) of the Code. Investors Life believes that the Separate
Account satisfies the current requirements of the regulations.
Note 6. Substitution of Fund Shares
Prior to November 29, 1993, CIGNA Investments, Inc. ("CII")
served as the investment adviser to each of the portfolios of the
CIGNA Fund, pursuant to an investment advisory agreement between
CII and the CIGNA Funds. In connection with its decision to
withdraw from the active management of equity-based portfolios,
CII indicated to the Board of Trustees of the CIGNA Funds and
Investors Life that CII would be unwilling to continue to serve
as investment adviser with respect to any of the portfolios of
the CIGNA Fund on a long-term basis.
CII indicated that an orderly withdrawal of CII's investment
advisory services involved the selection of an investment adviser
to provide equity advisory services during a transition period,
as well as the capability to serve as the substitute underlying
investment vehicle for the variable annuity contracts (the
"Contracts") issued by Investors Life. Putnam Investment
Management, Inc. ("Putnam Management"), the investment adviser to
Putnam Capital Manager Trust ("PCM") indicated its willingness to
service as investment adviser to the CIGNA Annuity Equity Fund,
the CIGNA Annuity Growth and Income Fund and the CIGNA Annuity
Aggressive Equity Fund (the "CIGNA Equity Funds") during the
transition period. PCM has also indicated to Investors Life that
its willingness to serve as the substitute underlying investment
vehicle for the Contracts (the "Substitution").
On the basis of the foregoing, the Trustees of the CIGNA Funds
terminated the appointment of CII as the investment adviser to
the CIGNA Equity Funds, effective November 29, 1993, and
appointed Putnam Management as the new investment adviser of the
CIGNA Equity Funds. CII continued to serve as the investment
adviser of the CIGNA Annuity Money Market Fund and the CIGNA
Annuity Income Fund and to provide certain administrative
services to the CIGNA Funds until the completion of the
Substitution.
Investors Life filed an application with the U.S. Securities and
Exchange Commission, requesting the issuance of an order
approving the plan of Substitution. Such order was issued on
December 21, 1994. The effectiveness of the Substitution was
subject to prior approval by the vote of a majority of the votes
to be cast by persons having their contract values determined by
each affected portfolio of the CIGNA Funds, which approval was
obtained.
As of April 18, 1995, shares of the PCM Trust were substituted
for shares of the applicable CIGNA Fund as the underlying
investment vehicle. The substitution of PCM Funds as the
underlying investment vehicle for the variable annuity contracts
was effected by Investors Life's exchange of shares of each of
the portfolios of the CIGNA Funds for shares of the corresponding
portfolio of PCM Funds.
Note 7. Accumulation Unit Transactions
The changes in the number of accumulation units (the measure of ownership
in the Separate Account) during 1996, and units outstanding at December
31, 1996 were as follows:
Money Money
Market Market
Qualified Non-Qualified
Units outstanding at December 31, 1995 1,096,192 1,334,785
Units purchased and transfers in 93,940 124,034
Benefits, surrenders and transfers out (342,720) (170,039)
_________ _________
Units outstanding at December 31, 1996 847,412 1,288,780
========= =========
Income Income
Qualified Non-Qualified
Units outstanding at December 31, 199 1,580,611 2,678,698
Units purchased and transfers in 11,076 10,322
Benefits, surrenders and transfers out (278,565) (294,837)
_________ _________
Units outstanding at December 31, 1996 1,313,122 2,394,183
========= =========
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly (formerly
Equity Equity
Division) Division)
Units outstanding at December 31, 1995 3,699,687 2,104,990
Units purchased and transfers in 122,251 56,438
Benefits, surrenders and transfers out (544,919) (158,466)
_________ _________
Units outstanding at December 31, 1996 3,277,019 2,002,962
========= =========
Voyager Voyager
Qualified* Non-Qualified*
Units outstanding at December 31, 1995 781,624 645,524
Units purchased and transfers in 27,062 213
Benefits, surrenders and transfers out (57,054) (11,938)
_________ _________
Units outstanding at December 31, 1996 751,632 633,799
========= =========
* Includes shares owned by Investors Life.
The accumulation units for six of the subdivisions include units applicable
to contract owners who are "on benefit annuitants." At December 31, 1996,
the number of accumulation units, the aggregate value of the subdivisions'
equity and the number of monthly annuity units and value per unit of "on
benefit annuitants" are as follows:
Accumulation Aggregate
Units Value
Money Market, Qualified 25,442 $ 52,564
Money Market, Non-Qualified 184,304 $378,082
Growth and Income II, Qualified 95,179 $590,788
Growth and Income II, Non-Qualified 126,800 $674,346
Income Fund, Qualified 56,463 $179,179
Income Fund, Non-Qualified 223,649 $701,158
Monthly Annuity
Annuity Units Unit Value
Money Market, Qualified 531 $0.8481980
Money Market, Non-Qualified 3,958 $0.8486709
Growth and Income II, Qualified 3,657 $1.5733164
Growth and Income II, Non-Qualified 5,706 $1.6859335
Income Fund, Qualified 1,091 $1.3932109
Income Fund, Non-Qualified 5,231 $1.3900698
Note 8. Subsequent Events
Effective January 1, 1997 PCM Trust changed its name to Putnam Variable Trust
("Putnam VT"). Accordingly, the names of the underlying funds have changed
as follows: PCM Money Market Fund has become Putnam VT Money Market, PCM U.S.
Government and High Quality Bond Fund has become Putnam VT Government and
High Quality Bond Fund, PCM Growth and Income Fund has become Putnam VT
Growth and Income Fund and PCM Voyager Fund has become Putnam VT Yoyager
Fund.
