INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
(Herein called Investors Life)
Separate Account I
Financial Statements
June 30, 1997
(Unaudited)
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
SEPARATE ACCOUNT I
COMBINED BALANCE SHEET
JUNE 30, 1997
ASSETS
Investments at Market Value
(Notes 1 and 2):
Portfolios of Putnam Variable Trust:
Money Market Division
1,609,226 qualified shares (cost $1,609,226) $1,609,226
2,411,712 non-qualified shares (cost $2,411,712) 2,411,712
Income Division
307,498 qualified shares (cost $3,981,770) 3,905,229
561,568 non-qualified shares (cost $7,254,841) 7,131,914
Growth and Income II Division
765,816 qualified shares (cost $15,674,359) 20,225,198
69,140 shares owned by (cost $1,415,119) 1,825,980
Investors Life
362,129 non-qualified shares (cost $7,366,236) 9,563,839
69,189 shares owned by (cost $1,407,406) 1,827,282
Investors Life
Voyager Division (formerly known as the Aggressive Equity Division)
22,409 qualified shares (cost $566,858) 772,230
40,178 shares owned by (cost $1,016,319) 1,384,529
Investors Life
13,558 non-qualified shares (cost $338,349) 467,210
40,107 shares owned by (cost $1,000,895) 1,382,091
Investors Life
Total Assets $52,506,440
CONTRACT OWNERS' EQUITY
Contract Owners' Equity (Notes 3 and 7):
Money Market Division
764,223 qualified accumulation ($2.1057024 per unit $1,609,226
units outstanding
1,153,491 non-qualified accumulation ($2.0907933 per unit 2,411,712
units outstanding
Income Division
1,204,071 qualified accumulation ($3.2433546 per unit 3,905,229
units outstanding
2,225,823 non-qualified accumulation ($3.2041693 per unit 7,131,914
units outstanding
Growth and Income II Division
2,829,753 qualified accumulation ($7.1473368 per unit 20,225,198
units outstanding
255,477 Investors Life equity ($7.1473368 per unit 1,825,980
1,561,978 non-qualified accumulation ($6.1229023 per unit 9,563,839
units outstanding
298,434 Investors Life equity ($6.1229023 per unit 1,827,282
Voyager Division (formerly known as the Aggressive Equity Division)
278,878 qualified accumulation ($2.7690586 per unit 772,230
units outstanding
500,000 Investors Life equity ($2.7690586 per unit 1,384,529
169,023 non-qualified accumulation ($2.7641827 per unit 467,210
units outstanding
500,000 Investors Life equity ($2.7641827 per unit 1,382,091
Contract Owners' Equity $52,506,440
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
SIX MONTHS ENDED JUNE 30, 1997
Money Money
Market Market
Qualified Non-Qualified
Investment Income:
Dividends $41,364 $63,799
Expenses:
Mortality risk and expense 9,821 15,149
fees guarantees (Notes 1 and 3)
Investment income-net 31,543 48,650
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 211,809 329,999
Cost of shares sold 211,809 329,999
Net realized gain (loss) on investments 0 0
Net unrealized gain (loss) on investment 0 0
Net realized and unrealized gain (loss) 0 0
on investments
Net Increase (Decrease) in Net Assets $31,543 $48,650
from Investment Operations
The accompanying notes are an integral part of these financial statements.
*Includes shares owned by Investors Life.
Income Income
Qualified Non-Qualified
Investment Income:
Dividends $259,201 $475,537
Expenses:
Mortality risk and expense 23,960 44,954
fees guarantees (Notes 1 and 3)
Investment income-net 235,241 430,583
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 383,954 683,134
Cost of shares sold 363,250 642,067
Net realized gain (loss) on investments 20,704 41,067
Net unrealized gain (loss) on investment (169,734) (310,503)
Net realized and unrealized gain (loss) (149,030) (269,436)
on investments
Net Increase (Decrease) in Net Assets $86,211 $161,147
from Investment Operations
The accompanying notes are an integral part of these financial statements.
*Includes shares owned by Investors Life.
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly Equity (formerly Equit
Division) Division)
Investment Income:
Dividends $615,207 $324,584
Expenses:
Mortality risk and expense 124,501 65,479
fees guarantees (Notes 1 and 3)
Investment income-net 490,706 259,105
Net Realized and Unrealized
Gain (Loss) on Investments:
Net realized capital gain distributions 820,977 433,146
Net realized gain (loss) on investments:
Proceeds from sale of shares 1,782,753 922,501
Cost of shares sold 1,211,369 619,452
Net realized gain (loss) on investments 571,384 303,049
Net unrealized gain (loss) on investment 1,104,602 578,687
Net realized and unrealized gain (loss) 2,496,963 1,314,882
on investments
Net Increase (Decrease) in Net Assets $2,987,669 $1,573,987
from Investment Operations
The accompanying notes are an integral part of these financial statements.
*Includes shares owned by Investors Life.
Voyager Voyager
Qualified * Non-Qualified
Investment Income:
Dividends $6,515 $5,350
Expenses:
Mortality risk and expense 11,608 9,575
fees guarantees (Notes 1 and 3)
Investment income-net (5,093) (4,225)
Net Realized and Unrealized
Gain (Loss) on Investments:
Net realized capital gain distributions 87,856 71,570
Net realized gain (loss) on investments:
Proceeds from sale of shares 4,659 18,910
Cost of shares sold 3,396 13,609
Net realized gain (loss) on investments 1,263 5,301
Net unrealized gain (loss) on investment 127,523 100,601
Net realized and unrealized gain (loss) 216,642 177,472
on investments
Net Increase (Decrease) in Net Assets $211,549 $173,247
from Investment Operations
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
Six Months Ended June 30, 1997
Money Money
Market Market
Qualified Non-Qualified
Investment Operations:
Investment income-net $31,543 $48,650
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 0 0
Net unrealized gain (loss) on investment 0 0
Net increase (decrease) in net 31,543 48,650
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer 31,062 34,677
in (Note 3)
Net contract surrenders and transfers (201,686) (297,545)
out (Note 3)
Benefit payments to annuitants (2,471) (17,877)
Net Increase (Decrease) from accumulatio (173,095) (280,745)
unit transactions
Net Increase (Decrease) in Net Assets (141,552) (232,095)
Net Assets:
Net assets at December 31, 1996 1,750,778 2,643,807
Net assets at June 30, 1997 $1,609,226 $2,411,712
*Includes shares owned by Investors Life.
Income Income
Qualified Non-Qualified
Investment Operations:
Investment income-net $235,241 $430,583
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 20,704 41,067
Net unrealized gain (loss) on investment (169,734) (310,503)
Net increase (decrease) in net 86,211 161,147
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer 17,897 104,981
in (Note 3)
Net contract surrenders and transfers (358,289) (603,007)
out (Note 3)
Benefit payments to annuitants (7,633) (37,169)
Net Increase (Decrease) from accumulatio (348,025) (535,195)
unit transactions
Net Increase (Decrease) in Net Assets (261,814) (374,048)
Net Assets:
Net assets at December 31, 1996 4,167,043 7,505,962
Net assets at June 30, 1997 $3,905,229 $7,131,914
*Includes shares owned by Investors Life.
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly Equity (formerly Equit
Division) Division)
Investment Operations:
Investment income-net $490,706 $259,105
Realized capital gain distributions 820,977 433,146
Net realized gain (loss) on investments 571,384 303,049
Net unrealized gain (loss) on investment 1,104,602 578,687
Net increase (decrease) in net 2,987,669 1,573,987
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer 386,359 128,953
in (Note 3)
Net contract surrenders and transfers (1,628,325) (906,462)
out (Note 3)
Benefit payments to annuitants (35,387) (57,487)
Net Increase (Decrease) from accumulatio (1,277,353) (834,996)
unit transactions
Net Increase (Decrease) in Net Assets 1,710,316 738,991
Net Assets:
Net assets at December 31, 1996 20,340,862 10,652,130
Net assets at June 30, 1997 $22,051,178 $11,391,121
*Includes shares owned by Investors Life.
Voyager Voyager
Qualified * Non-Qualified *
Investment Operations:
Investment income-net ($5,093) ($4,225)
Realized capital gain distributions 87,856 71,570
Net realized gain (loss) on investments 1,263 5,301
Net unrealized gain (loss) on investment 127,523 100,601
Net increase (decrease) in net 211,549 173,247
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer 70,260 105,578
in (Note 3)
Net contract surrenders and transfers 623 (7,298)
out (Note 3)
Benefit payments to annuitants 0 0
Net Increase (Decrease) from accumulatio 70,883 98,280
unit transactions
Net Increase (Decrease) in Net Assets 282,432 271,527
Net Assets:
Net assets at December 31, 1996 1,874,327 1,577,774
Net assets at June 30, 1997 $2,156,759 $1,849,301
*Includes shares owned by Investors Life.
Six Months Ended June 30, 1996
Money Money
Market Market
Qualified Non-Qualified
Investment Operations:
Investment income-net $38,353 $49,530
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 0 0
Net unrealized gain (loss) on investment 0 0
Net increase (decrease) in net 38,353 49,530
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer 111,446 244,635
in (Note 3)
Net contract surrenders and transfers (486,515) (127,246)
out (Note 3)
Benefit payments to annuitants (4,435) (17,284)
Net decrease from accumulation (379,504) 100,105
unit transactions
Net Increase (Decrease) in Net Assets (341,151) 149,635
Net Assets:
Net assets at December 31, 1995 2,091,929 2,494,171
Net assets at June 30, 1996 $1,750,778 $2,643,806
*Includes shares owned by Investors Life.
Income Income
Qualified Non-Qualified
Investment Operations:
Investment income-net $256,922 $438,091
Realized capital gain distributions 0 0
Net realized gain (loss) on investments 19,837 21,235
Net unrealized gain (loss) on investment ($809,673) ($894,977)
Net increase (decrease) in net (532,914) (435,651)
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer $21,789 $44,319
in (Note 3)
Net contract surrenders and transfers (270,069) (356,386)
out (Note 3)
Benefit payments to annuitants (8,448) (43,961)
Net decrease from accumulation ($256,728) ($356,028)
unit transactions
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 June 30, 1996 $4,167,043 $7,505,962
*Includes shares owned by Investors Life.
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly Equity (formerly Equit
Division) Division)
Investment Operations:
Investment income-net $720,313 $347,280
Realized capital gain distributions 379,168 183,293
Net realized gain (loss) on investments 365,289 94,557
Net unrealized gain (loss) on investment 1,142,239 968,483
Net increase (decrease) in net 2,607,009 1,593,613
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer 379,225 201,318
in (Note 3)
Net contract surrenders and transfers (1,679,809) (381,103)
out (Note 3)
Benefit payments to annuitants (28,773) (53,044)
Net decrease from accumulation (1,329,357) (232,829)
unit transactions
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 June 30, 1996 $20,340,862 $10,652,130
*Includes shares owned by Investors Life.
Voyager Voyager
Qualified * Non-Qualified *
Investment Operations:
Investment income-net $23,309 $19,847
Realized capital gain distributions 66,446 56,289
Net realized gain (loss) on investments 21,391 10,997
Net unrealized gain (loss) on investment 43,726 80,816
Net increase (decrease) in net 154,872 167,949
assets from investment operations
Accumulation Unit Transactions:
Net contract considerations and transfer 30,595 310
in (Note 3)
Net contract surrenders and transfers (57,065) (30,064)
out (Note 3)
Benefit payments to annuitants 0 0
Net decrease from accumulation (26,470) (29,754)
unit transactions
Net Increase (Decrease) in Net Assets 128,402 138,195
Net Assets:
Net assets at December 31, 1995 1,745,924 1,439,579
Net assets at June 30, 1996 1,874,326 1,577,774
*Includes shares owned by Investors Life.
INVESTORS LIFE INSURANCE COMPANY OF NORTH AMERICA
SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
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 Putnam Variable
Trust (formerly known as Putnam Capital Manager Trust). Prior to
the substitution of shares of Putnam Variable Trust for shares of
CIGNA Annuity Funds Group as the underlying funding vehicle for the
Separate Account (the "Substitution"), the Separate Account
contained five divisions. The Substitution was effective as of
April 18, 1995, following approvals of the Substitution by the U.S.
Securities and Exchange Commission and the contractholders having
their contract values determined by the affected portfolios of the
CIGNA Annuity Funds Group. 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. 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 Putnam
Variable Trust: Putnam VT Money Market Fund, Putnam VT U.S.
Government and High quality Bond Fund, Putnam VT Growth and Income
Fund or Putnam VT 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
Putnam Variable 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 June 30, 1997; (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 June 30, 1997, were $96,739 after deductions for premium
taxes of $4.00. Contract owners have limited rights to transfer
their contract values between Separate Account Divisions. For the
six-month period ended June 30, 1997, the total of all transfers
was $1,713,334. Contract surrender benefits amounted to
$2,288,658. Annuity benefits amounted to $158,024. 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. Accumulation Unit Transactions
The changes in the number of accumulation units (the measure of
ownership in the Separate Account) during the six months of
1997 and units outstanding at June 30, 1997 were as follows:
Money Money
Market Market
Qualified Non-Qualified
Units outstanding at December 31, 1996 847,412 1,288,780
Units purchased and transfers in 14,896 16,702
Benefits, surrenders and transfers out (98,085) (151,991)
Units outstanding at June 30, 1997 764,223 1,153,491
*Includes shares owned by Investors Life.
Income Income
Qualified Non-Qualified
Units outstanding at December 31, 1996 1,313,122 2,394,183
Units purchased and transfers in 2,697 33,119
Benefits, surrenders and transfers out (111,748) (201,479)
Units outstanding at June 30, 1997 1,204,071 2,225,823
*Includes shares owned by Investors Life.
Growth and Growth and
Income II Income II
Qualified* Non-Qualified*
(formerly Equity (formerly Equit
Division) Division)
Units outstanding at December 31, 1996 3,277,019 $2,002,962
Units purchased and transfers in 75,350 21,805
Benefits, surrenders and transfers out (267,139) (164,355)
Units outstanding at June 30, 1997 3,085,230 $1,860,412
*Includes shares owned by Investors Life.
Voyager Voyager
Qualified * Non-Qualified
Units outstanding at December 31, 1996 $751,632 $633,799
Units purchased and transfers in 27,345 39,091
Benefits, surrenders and transfers out (99) (3,867)
Units outstanding at June 30, 1997 $778,878 $669,023
*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
June 30, 1997 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 24,258 $51,080
Money Market, Non-Qualified 175,669 $367,288
Growth and Income II, Qualified 97,619 $697,716
Growth and Income II, Non-Qualified 116,671 $714,365
Income Fund, Qualified 57,009 $184,900
Income Fund, Non-Qualified 211,825 $678,723
Monthly Annuity
Annuity Units Unit Value
Money Market, Qualified 531 $0.8398692
Money Market, Non-Qualified 3,958 $0.8403376
Growth and Income II, Qualified 3,879 $1.7600439
Growth and Income II, Non-Qualified 5,706 $1.8857653
Income Fund, Qualified 1,135 $1.3833814
Income Fund, Non-Qualified 5,231 $1.3802466
