Dear Policyowner:
The U.S. stock and bond markets were exceptionally good to investors in 1995.
Major international markets had good years as well, although most of them lagged
the US market. Results in the subaccounts of the MEMBERS(R) Variable Universal
Life and the UltraVers-ALL LIFESM reflect these strong markets as shown below:
Percent increase
in Unit Value from
Subaccount 12/31/94 through 12/31/95
- -------------------------------------------------------------------------------
Capital Appreciation Stock 29.7%
Growth and Income Stock 30.6%
Balanced 21.2%
Bond 15.4%
Money Market 4.4%
Treasury 2000 19.9%
World Governments 13.9%
- -------------------------------------------------------------------------------
The International Stock subaccount was added to the product in 1995. The first
activity in that subaccount was on July 3, 1995. The Unit Value for this
subaccount increased 6.1% from 7/3/95 through 12/31/95.
This booklet is divided into several sections. Each section contains the
semiannual report for a component of variable universal life. The first section
contains the following reports for the Century Variable Account:
Statement of Assets and Liabilities....................................page 2
Statement of Operations................................................page 3
Statement of Changes in Net Assets.....................................page 5
Notes to the Financial Statements......................................page 7
Independent Auditors' Report.......................................... page 12
The Century Variable Account invests in mutual funds. The results shown reflect
the deduction of the separate account level charges. Returns at the subaccount
level shown above are slightly lower than at the mutual fund level as a result
of these charges.
The remaining sections of this booklet cover the mutual funds and include
discussions of the fund results and the managers' outlook. The second section
contains the report for the Ultra Series Fund which includes the Capital
Appreciation Stock Fund, Growth and Income Stock Fund, Balanced Fund, Bond Fund,
Money Market Fund, and the Treasury 2000 Fund. The third section is the report
for the T. Rowe Price International Stock Portfolio of the T. Rowe Price
International Series, Inc., and the last section has the financial information
and results for the MFS(R) World Government SeriesSM of the MFS(R) Variable
Insurance TrustSM.
Variable universal life provides you with valuable life insurance protection. It
also provides the investment alternatives you need for your long-term asset
accumulation needs. We appreciate your trust in Century Life of America and in
variable universal life. We value our relationship with you and we will be
working hard in 1996 to help you meet your financial objectives.
Sincerely,
/s/ Michael B. Kitchen
Michael B. Kitchen
President and Chief Executive Officer
Century Life of America
1
<PAGE>
CENTURY VARIABLE ACCOUNT
Statement of Assets and Liabilities
December 31, 1995
<TABLE>
<CAPTION>
Capital
Appreciation Growth and Money Treasury International World
Stock Income Stock Balanced Bond Market 2000 Stock Governments
Assets: Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount* Subaccount**
---------- ---------- ---------- ---------- ---------- ---------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments in Ultra Series
Fund: (note 2)
Capital Appreciation Stock
Fund, 718,245 shares at net
asset value of $12.51 per
share (cost $7,796,904) $8,986,425 $ -- $ -- $ -- $ -- $ -- $ -- $ --
Growth and Income Stock Fund,
1,899,704 shares at net asset
value of $18.20 per share
(cost $29,392,576) -- 34,580,400 -- -- -- -- -- --
Balanced Fund, 3,166,255 shares
at net asset value of $ 14.63
per share (cost $ 41,933,119) -- -- 46,320,994 -- -- -- -- --
Bond Fund, 355,954 shares
at net asset value of $10.63
per share (cost $3,637,193) -- -- -- 3,783,375 -- -- -- --
Money Market Fund, 2,133,863
shares at net asset value of
$1.00 per share(cost $2,133,863) -- -- -- -- 2,133,863 -- -- --
Treasury 2000 Fund, 182,546
shares at net asset value of
$8.47 per share(cost $1,273,177) -- -- -- -- -- 1,545,327 -- --
Investments in T. Rowe Price
International Fund, Inc.,:
International Stock Portfolio,
66,808 shares at net asset value
of $11.26 per share(cost $730,182) -- -- -- -- -- -- 752,261 --
Investments in MFS(R) Variable
Insurance TrustSM:
World Governments Series, 21,527
shares at net asset value of
$10.17 per share (cost $226,610) -- -- -- -- -- -- -- 218,931
Dividends receivable -- -- -- -- -- -- -- --
---------- ----------- ----------- ---------- ---------- ---------- --------- ---------
Total assets 8,986,425 34,580,400 46,320,994 3,783,375 2,133,863 1,545,327 752,261 218,931
---------- ----------- ----------- ---------- ---------- ---------- --------- ---------
Liabilities:
Accrued adverse mortality and
expense charges 660 2,547 3,419 279 155 1,087 55 16
---------- ----------- ----------- ---------- ---------- ---------- --------- ---------
Total liabilities 660 2,547 3,419 279 155 1,087 55 16
---------- ----------- ----------- ---------- ---------- ---------- --------- ---------
Net assets $8,985,765 $34,577,853 $46,317,575 $3,783,096 $2,133,708 $1,544,240 $752,206 $218,915
========== =========== =========== ========== ========== ========== ========= =========
Units outstanding (note 5) 663,269 907,821 1,522,893 155,381 125,112 194,133 70,876 19,219
========== =========== =========== ========== ========== ========== ========= =========
Net asset value per unit $13.55 $38.09 $30.41 $24.35 $17.05 $7.95 $10.61 $11.39
========== =========== =========== ========== ========== ========== ========= =========
See accompanying notes to financial statements.
<FN>
*The data is for the period beginning July 3, 1995 (date of initial activity).
**The data is for the period beginning January 3, 1995 (date of initial
activity).
</FN>
</TABLE>
2
<PAGE>
CENTURY VARIABLE ACCOUNT
Statement of Operations
Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK SUBACCOUNT GROWTH AND INCOME STOCK SUBACCOUNT
Investment income (loss): 1995 1994 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Dividend income $349,394 $316,311 $2,783,538 $920,420 $2,174,889
Adverse mortality and expense charges
(note 3) (67,332) (37,923) (253,958) (178,836) (152,862)
---------- -------- ---------- ---------- ----------
Net investment income (loss) 282,062 278,388 2,529,580 741,584 2,022,027
---------- -------- ---------- ---------- ----------
Realized and unrealized gain (loss)
on investments:
Realized gain (loss) on security
transactions:
Proceeds from sale of securities 2,737,741 128,916 1,138,163 1,347,896 4,185,735
Cost of securities sold (2,416,409) (126,278) (985,297) (1,257,775) (3,566,061)
---------- -------- ---------- ---------- ----------
Net realized gain (loss) on security
transactions 321,332 2,638 152,866 90,121 619,674
Net change in unrealized appreciation
or depreciation on investments 1,332,754 (143,233) 4,764,093 (762,308) (560,550)
---------- -------- ---------- ---------- ----------
Net gain (loss) on investments 1,654,086 (140,595) 4,916,959 (672,187) 59,124
---------- -------- ---------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations $1,936,148 $137,793 $7,446,539 $69,397 $2,081,151
========== ======== ========== ========== ==========
<CAPTION>
BALANCED SUBACCOUNT BOND SUBACCOUNT
Investment income (loss): 1995 1994 1993 1995 1994 1993
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Dividend income $3,308,296 $1,934,706 $2,825,506 $218,461 $198,871 $217,548
Adverse mortality and expense charges
(note 3) (375,225) (311,308) (281,719) (33,879) (30,732) (32,701)
---------- ---------- ---------- -------- --------- --------
Net investment income (loss) 2,933,071 1,623,398 2,543,787 184,582 168,139 184,847
---------- ---------- ---------- -------- --------- --------
Realized and unrealized gain (loss)
on investments:
Realized gain (loss) on security
transactions:
Proceeds from sale of securities 2,989,211 2,663,000 4,430,663 885,596 498,842 600,884
Cost of securities sold (2,732,488) (2,563,542) (3,952,743) (865,874) (495,991) (563,872)
---------- ---------- ---------- -------- --------- --------
Net realized gain (loss) on security
transactions 256,723 99,458 477,920 19,722 2,851 37,012
Net change in unrealized appreciation
or depreciation on investments 4,759,298 (2,193,746) (159,112) 326,701 (308,510) 57,244
---------- ---------- ---------- -------- --------- --------
Net gain (loss) on investments 5,016,021 (2,094,288) 318,808 346,423 (305,659) 94,256
---------- ---------- ---------- -------- --------- --------
Net increase (decrease) in net assets
resulting from operations $7,949,092 ($470,890) $2,862,595 $531,005 ($137,520) $279,103
========== ========== ========== ======== ========= ========
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
CENTURY VARIABLE ACCOUNT
Statement of Operations
Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
MONEY MARKET SUBACCOUNT TREASURY 2000 SUBACCOUNT
Investment income (loss): 1995 1994 1993 1995 1994 1993
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Dividend income $116,648 $75,538 $79,218 $105,588 $96,836 $87,706
Adverse mortality and expense
charges (note 3) (20,105) (19,253) (29,219) (12,710) (11,586) (11,689)
-------- -------- -------- -------- --------- --------
Net investment income (loss) 96,543 56,285 49,999 92,878 85,250 76,017
-------- -------- -------- -------- --------- --------
Realized and unrealized gain (loss)
on investments:
Realized gain (loss) on security
transactions:
Proceeds from sale of securities 2,670,224 1,549,906 2,291,822 -- -- --
Cost of securities sold (2,670,224) (1,549,906) (2,291,822) -- -- --
-------- -------- -------- -------- --------- --------
Net realized gain (loss) on
security transactions -- -- -- -- -- --
Net change in unrealized
appreciation or depreciation
on investments -- -- -- 161,453 (193,888) 93,753
-------- -------- -------- -------- --------- --------
Net gain (loss) on investments -- -- -- 161,453 (193,888) 93,753
-------- -------- -------- -------- --------- --------
Net increase (decrease) in net
assets resulting from operations $96,543 $56,285 $49,999 $254,331 ($108,638) $169,770
======== ======== ======== ======== ========= ========
<CAPTION>
INTERNATIONAL STOCK SUBACCOUNT* WORLD GOVERNMENTS SUBACCOUNT**
Investment income (loss): 1995 1995
---- ----
<S> <C> <C>
Dividend income $0 $19,972
Adverse mortality and expense
charges (note 3) (1,492) (1,176)
-------- -------
Net investment income (loss) (1,492) 18,796
-------- -------
Realized and unrealized gain (loss)
on investments:
Realized gain (loss) on security
transactions:
Proceeds from sale of securities 17,033 19,161
Cost of securities sold (17,004) (18,440)
-------- --------
Net realized gain (loss) on
security transactions 29 721
Net change in unrealized
appreciation or depreciation
on investments 22,078 (7,679)
-------- --------
Net gain (loss) on investments 22,107 (6,958)
-------- --------
Net increase (decrease) in net
assets resulting from operations $20,615 $11,838
======== ========
See accompanying notes to financial statements.
<FN>
*The data is for the period beginning July 3, 1995 (date of initial activity).
**The data is for the period beginning January 3, 1995 (date of initial
activity).
</FN>
</TABLE>
4
<PAGE>
CENTURY VARIABLE ACCOUNT
Statement of Changes in Net Assets
Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK SUBACCOUNT GROWTH AND INCOME STOCK SUBACCOUNT
Operations: 1995 1994 1995 1994 1993
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Net investment income (loss) $282,062 $278,388 $2,529,580 $741,584 $2,022,027
Net realized gain (loss) on
security transactions 321,332 2,638 152,866 90,121 619,674
Net change in unrealized
appreciation or depreciation
on investments 1,332,754 (143,233) 4,764,093 (762,308) (560,550)
---------- ---------- ----------- ----------- -----------
Change in net assets from
operations 1,936,148 137,793 7,446,539 69,397 2,081,151
---------- ---------- ----------- ----------- -----------
Capital unit transactions (note 5):
Proceeds from sale of units 5,340,463 7,013,416 10,831,868 11,317,875 8,717,680
Cost of units repurchased (4,440,885) (1,001,170) (6,090,704) (6,776,401) (8,167,903)
---------- ---------- ----------- ----------- -----------
Change in net assets from
capital unit transactions 899,578 6,012,246 4,741,164 4,541,474 549,777
---------- ---------- ----------- ----------- -----------
Increase (decrease) in net assets 2,835,726 6,150,039 12,187,703 4,610,871 2,630,928
Net assets:
Beginning of period 6,150,039 -- 22,390,150 17,779,279 15,148,351
---------- ---------- ----------- ----------- -----------
End of period $8,985,765 $6,150,039 $34,577,853 $22,390,150 $17,779,279
========== ========== =========== =========== ===========
<CAPTION>
BALANCED SUBACCOUNT BOND SUBACCOUNT
Operations: 1995 1994 1993 1995 1994 1993
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $2,933,071 $1,623,398 $2,543,787 $184,582 $168,139 $184,847
Net realized gain (loss) on
security transactions 256,723 99,458 477,920 19,722 2,851 37,012
Net change in unrealized
appreciation or depreciation
on investments 4,759,298 (2,193,746) (159,112) 326,701 (308,510) 57,244
----------- ----------- ----------- ---------- ---------- ----------
Change in net assets from
operations 7,949,092 (470,890) 2,862,595 531,005 (137,520) 279,103
----------- ----------- ----------- ---------- ---------- ----------
Capital unit transactions (note 5):
Proceeds from sale of units 11,658,626 12,682,886 14,128,187 1,036,840 746,339 751,070
Cost of units repurchased (9,247,633) (9,582,319) (11,224,830) (1,180,288) (831,337) (897,970)
----------- ----------- ----------- ---------- ---------- ----------
Change in net assets from
capital unit transactions 2,410,993 3,100,567 2,903,357 (143,446) (84,998) (146,900)
----------- ----------- ----------- ---------- ---------- ----------
Increase (decrease) in net assets 10,360,085 2,629,677 5,765,952 387,559 (222,518) 132,203
Net assets:
Beginning of period 35,957,490 33,327,813 27,561,861 3,395,537 3,618,055 3,485,852
----------- ----------- ----------- ---------- ---------- ----------
End of period $46,317,575 $35,957,490 $33,327,813 $3,783,096 $3,395,537 $3,618,055
=========== =========== =========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
CENTURY VARIABLE ACCOUNT
Statement of Changes in Net Assets
Years Ended December 31, 1995, 1994 and 1993
<TABLE>
<CAPTION>
MONEY MARKET SUBACCOUNT TREASURY 2000 SUBACCOUNT
Operations: 1995 1994 1993 1995 1994 1993
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $96,543 $56,285 $49,999 $92,878 $85,250 $76,017
Net realized gain (loss) on
security transactions -- -- -- -- -- --
Net change in unrealized
appreciation or depreciation
on investments -- -- -- 161,453 (193,888) 93,753
--------- --------- --------- --------- ---------- ----------
Change in net assets from
operations 96,543 56,285 49,999 254,331 (108,638) 169,770
--------- --------- --------- --------- ---------- ----------
Capital unit transactions (note 5):
Proceeds from sale of units 2,156,885 2,460,112 1,896,151 550,180 558,031 638,901
Cost of units repurchased (3,049,819) (1,959,931) (2,724,281) (531,450) (540,474) (621,546)
--------- --------- --------- --------- ---------- ----------
Change in net assets from
capital unit transactions (892,934) 500,181 (828,130) 18,730 17,557 17,355
--------- --------- --------- --------- ---------- ----------
Increase (decrease) in net assets (796,391) 556,466 (778,131) 273,061 (91,081) 187,125
Net assets:
Beginning of period 2,930,099 2,373,633 3,151,764 1,271,179 1,362,260 1,175,135
--------- --------- --------- --------- ---------- ----------
End of period $2,133,708 $2,930,099 $2,373,633 $1,544,240 $1,271,179 $1,362,260
========= ========= ========= ========= ========== ==========
<CAPTION>
INTERNATIONAL STOCK SUBACCOUNT* WORLD GOVERNMENTS SUBACCOUNT**
Operations: 1995 1995
---- ----
<S> <C> <C>
Net investment income (loss) $(1,492) $18,796
Net realized gain (loss) on
security transactions 29 721
Net change in unrealized
appreciation or depreciation
on investments 22,078 (7,679)
-------- --------
Change in net assets from
operations 20,615 11,838
-------- --------
Capital unit transactions (note 5):
Proceeds from sale of units 825,895 244,058
Cost of units repurchased (94,304) (36,981)
-------- --------
Change in net assets from capital
unit transactions 731,591 207,077
-------- --------
Increase (decrease) in net assets 752,206 218,915
Net assets:
Beginning of period -- --
-------- --------
End of period $752,206 $218,915
======== ========
See accompanying notes to financial statements.
<FN>
*The data is for the period beginning July 3, 1995 (date of initial activity).
**The data is for the period beginning January 3, 1995 (date of initial
activity).
</FN>
</TABLE>
6
<PAGE>
CENTURY VARIABLE ACCOUNT
Notes to Financial Statements
(1) Organization
The Century Variable Account (the Account) is a unit investment trust
registered under the Investment Company Act of 1940 with the Securities and
Exchange Commission. The Account was established as a separate investment
account within Century Life of America to receive and invest net premiums
paid under flexible premium variable life insurance policies.
Although the assets of the Account are the property of Century Life of
America, those assets attributable to the policies are not chargeable with
liabilities arising out of any other business which Century Life of America
may conduct.
The net assets maintained in the Account attributable to the policies
provide the base for the periodic determination of the increased or
decreased benefits under the policies. The net assets may not be less than
the amount required under state insurance law to provide certain death
benefits and other policy benefits. Additional assets are held in Century
Life of America's general account to cover death benefits in excess of the
accumulated value.
(2) Significant Accounting Policies
Investments
The Account currently is divided into eight subaccounts but may, in the
future, include additional subaccounts. Each subaccount invests exclusively
in shares of a single underlying fund. (The term fund is used to mean an
investment portfolio sometimes called a series, i.e., Ultra Series Fund, T.
Rowe Price International Fund, Inc., MFS(R) Variable Insurance TrustTM, or
any other open-end management investment company or unit investment trust
in which a subaccount invests.) The income, gains and losses, realized or
unrealized, from the assets allocated to each subaccount are credited to or
charged against that subaccount without regard to income, gains or losses
from any other subaccount.
The Account invests in shares of Ultra Series Fund, T. Rowe Price
International Fund, Inc., and MFS(R) Variable Insurance TrustTM. Each is a
management investment company of the series type with one or more funds.
Each is registered with the SEC as an open-end, management investment
company. Such registration does not involve supervision of the management
or investment practices or policies of the companies or their funds by the
SEC.
Ultra Series Fund currently has six funds available as investment options
under the policies while T. Rowe Price International Fund, Inc., and MFS(R)
Variable Insurance TrustTM each have one fund available as an investment
option. MFS(R) Variable Insurance TrustTM also has other funds that are not
available under the policies. These fund companies may, in the future,
create additional funds that may or may not be available as investment
options under the policies. Each fund has its own investment objectives and
the income, gains, and losses for each fund are determined separately for
that fund.
Century Investment Management Co. (CIMCO) serves as the investment advisor
to the Ultra Series Fund and manages its assets in accordance with general
policies and guidelines established by the board of trustees of the Ultra
Series Fund. The Company owns one half of CIMCO's outstanding stock and one
half is owned indirectly by CUNA Mutual Insurance Society.
Rowe Price-Fleming International, Inc. (RPFI) serves as the Investment
Advisor to the International Stock Portfolio and manages its assets in
accordance with general policies and guidelines established by the board of
directors of T. Rowe Price International Fund, Inc. RPFI was founded in
1979 as a joint venture between T. Rowe Price Associates, Inc. and Robert
Fleming Holdings Limited.
Massachusetts Financial Services Company (MFS) serves as the Investment
Advisor to the MFS World Governments Series and manages its assets in
accordance with general policies and guidelines established by the board of
7
<PAGE>
trustees of MFS(R) Variable Insurance TrustTM. MFS is a subsidiary of Sun
Life Assurance Company of Canada (U.S.) which, in turn, is a subsidiary of
Sun Life Assurance Company of Canada.
The assets of each fund are held separate from the assets of the other
funds, and each fund is offered at a price equal to its respective net
asset value per share, without sales charge. Dividends and capital gain
distributions from each fund are reinvested in that fund. Investments in
shares of the Funds are stated at market value which is the net asset value
per share as determined by the Funds. Realized gains and losses from
security transactions are reported on an average cost basis.
Dividend income is recorded on the ex-dividend date.
Federal Income Taxes
The operations of the Account form a part of the operations of Century Life
of America and are not taxed separately. Century Life of America does not
initially expect to incur any income tax upon the earnings or the realized
capital gains attributable to the Account. Accordingly, no charge for
income tax is currently being made to the Account. If such taxes are
incurred by Century Life of America in the future, a charge to the Account
may be assessed.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increase and decrease in
net assets from operations during the period. Actual results could differ
from those estimates.
(3) Fees and Charges
Organization Costs
Century Life of America absorbed all organization expenses of the Account.
Policy Charges
In addition to charges for state taxes, which reduce premiums prior to the
allocation of net premiums to the subaccounts of the Account, the following
charges may be deducted by Century Life of America by redeeming an
appropriate number of units for each policy.
Administrative Fee: Century Life of America will have primary
responsibility for the administration of the Account and the policies
issued. As reimbursement for these expenses, Century Life of America may
assess each policy a monthly administrative fee. For additional detail, see
schedule of expenses and charges in the prospectus.
Deferred Contingent Sales and Administrative Charges: The sales and
administrative expenses incurred when a Policy is issued are deferred
(Deferred Charges) until the Policy is surrendered. Such charges are not
collected at all if the Policy is held for nine years, or if the Insured
dies during that period. In no instance will the charge exceed 30 percent
of the lesser of premiums paid or the Guideline Annual Premium (as defined
under the Investment Company Act of 1940) of the policy. The Deferred
Charges are normally built up in twelve equal increments during the first
policy year. Beginning on the second Policy Anniversary, incremental
amounts are released by allocations back to the subaccounts on each
anniversary until the tenth Policy Anniversary when all remaining Deferred
Charges are released. All amounts in the Deferred Charges Account are held
and interest credited to the Policy at a minimum rate of 4 percent with the
Company crediting additional amounts at its discretion.
Policy Fee: Century Life of America will incur first-year expenses upon
issue of a policy, and will assess each policy a monthly policy fee to
recover these expenses.
Cost of Insurance and Additional Benefits Provided: Century Life of America
will assume the responsibility for providing the insurance benefits
provided in the policy. The cost of insurance will be determined each month
based upon the applicable cost of insurance rates and the net amount at
8
<PAGE>
risk. The cost of insurance can vary from month to month since the
determination of both the insurance rate and the net amount at risk depends
upon a number of variables as described in the Account's prospectus.
Variable Account Charges
Mortality and Expense Risk Charge: Century Life of America will deduct
daily a mortality and expense risk charge from the account at an annual
rate of .90 percent of the average daily net asset value of the Account.
These charges will be deducted by Century Life of America in return for its
assumption of risks associated with adverse mortality experience or excess
administrative expenses in connection with policies issued.
(4) Investment Transactions
The cost of shares purchased, including reinvestment of dividend
distributions, during the year ended December 31, 1995, was as follows:
Growth and Income Stock Fund............................. $8,486,455
Capital Appreciation Stock Fund.......................... 4,006,242
Balanced Fund............................................ 8,352,915
Bond Fund................................................ 931,006
Money Market Fund........................................ 1,873,765
Treasury 2000 Fund....................................... 6,177
International Stock Portfolio*........................... 747,186
World Governments Series**............................... 245,050
----------
$24,648,796
==========
(5) Unit Activity from Contract Transactions
Transactions in units of each subaccount of the Account for the years ended
December 31, 1995, 1994, and 1993 were as follows:
<TABLE>
<CAPTION>
Capital
Appreciation Growth and Money Treasury International World
Stock Income Stock Balanced Bond Market 2000 Stock Governments
Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount Subaccount* Subaccount**
---------- ---------- ---------- ---------- ---------- ---------- ------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at
December 31, 1992 -- 588,841 1,186,398 171,276 201,170 186,690 -- --
Units sold -- 321,862 580,946 34,868 120,058 93,201 -- --
Units repurchased -- (297,884) (457,177) (41,411) (172,047) (90,784) -- --
-------- -------- --------- -------- -------- ------- ------ ------
Units outstanding at
December 31, 1993 -- 612,819 1,310,167 164,733 149,181 189,107 -- --
Units sold 684,909 385,948 502,048 34,868 152,172 82,063 -- --
Units repurchased (96,408) (230,900) (379,178) (38,726) (121,966) (79,423) -- --
-------- -------- --------- -------- -------- ------- ------ ------
Units outstanding at
December 31, 1994 588,501 767,867 1,433,037 160,875 179,387 191,747 -- --
-------- -------- --------- ------- -------- ------- ------ ------
Units sold 437,510 320,880 420,975 45,571 129,950 74,132 80,023 22,558
Units repurchased (362,742) (180,926) (331,119) (51,065) (184,225) (71,746) (9,147) (3,339)
-------- -------- --------- ------- -------- ------- ------ ------
Units outstanding at
December 31, 1995 663,269 907,821 1,522,893 155,381 125,112 194,133 70,876 19,219
======== ======== ========= ======= ======== ======= ====== ======
<FN>
*The data is for the period beginning July 3, 1995 (date of initial activity).
**The data is for the period beginning January 3, 1995 (date of initial
activity).
</FN>
</TABLE>
9
<PAGE>
(6) Condensed Financial Information
The table below gives per unit information about the financial history of
each subaccount for each period.
<TABLE>
<CAPTION>
CAPITAL APPRECIATION STOCK SUBACCOUNT GROWTH AND INCOME STOCK SUBACCOUNT
1995 1994 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period $10.45 $10.00 $29.16 $29.01 $25.73 $24.11 $19.36
End of period 13.55 10.45 38.09 29.16 29.01 25.73 24.11
Percentage increase
in unit value
during period* 29.7% 4.5% 30.6% 0.5% 12.8% 6.7% 24.5%
Number of units
outstanding at
end of period 663,269 588,501 907,821 767,867 612,819 588,841 431,969
<CAPTION>
BALANCED SUBACCOUNT BOND SUBACCOUNT
1995 1994 1993 1992 1991 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period$25.09 $25.44 $23.23 $21.94 $18.73 $21.11 $21.96 $20.35 $19.29 $16.95
End of period 30.41 25.09 25.44 23.23 21.94 24.35 21.11 21.96 20.35 19.29
Percentage increase
in unit value
during period* 21.2% -1.4% 9.5% 5.9% 17.1% 15.4% -3.9% 7.9% 5.5% 13.8%
Number of units
outstanding at
end of period 1,522,893 1,433,037 1,310,167 1,186,398 912,075 155,381 160,875 164,733 171,276 159,858
<FN>
* The amount of premium invested in Century Variable Account is the amount
remaining after the policy charges described in footnote 3 have been
deducted. The policy charges have not been taken into account in this
calculation. Inclusion of the policy charges would reduce the percentage
increase in unit value during the period.
</FN>
</TABLE>
10
<PAGE>
(6) Condensed Financial Information
The table below gives per unit information about the financial history of
each subaccount for each period.
<TABLE>
<CAPTION>
MONEY MARKET SUBACCOUNT TREASURY 2000 SUBACCOUNT
1995 1994 1993 1992 1991 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value:
Beginning of period $16.33 $15.91 $15.67 $15.33 $14.66 $6.63 $7.20 $6.29 $5.88 $4.92
End of period 17.05 16.33 15.91 15.67 15.33 7.95 6.63 7.20 6.29 5.88
Percentage increase
in unit value
during period* 4.4% 2.6% 1.5% 2.2% 4.6% 19.9% -7.9% 14.5% 7.0% 19.5%
Number of units
outstanding at
end of period 125,112 179,387 149,181 201,170 191,382 194,133 191,747 189,107 186,690 184,302
<CAPTION>
INTERNATIONAL STOCK SUBACCOUNT** WORLD GOVERNMENTS SUBACCOUNT***
1995 1995
---- ----
<S> <C> <C>
Net asset value:
Beginning of period $10.00 $10.00
End of period 10.61 11.39
Percentage increase
in unit value
during period* 6.1% 13.9%
Number of units
outstanding at
end of period 70,876 19,219
For the Money Market Subaccount, the "seven-day average yield" for the
seven days ended December 31, 1995, was 4.06% and the "effective yield" for
that period was 4.18%.
<FN>
*The amount of premium invested in Century Variable Account is the amount
remaining after the policy charges described in footnote 3 have been
deducted. The policy charges have not been taken into account in this
calculation. Inclusion of the policy charges would reduce the percentage
increase in unit value during the period.
**The data is for the period beginning July 3, 1995 (date of initial
activity).
***The data is for the period beginning January 3, 1995 (date of initial
activity).
</FN>
</TABLE>
11
<PAGE>
CENTURY VARIABLE ACCOUNT
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Century Life of America and Contract Owners of Century Variable Account:
We have audited the statements of assets and liabilities of the Capital
Appreciation Stock Subaccount, Growth and Income Stock Subaccount, Balanced
Subaccount, Bond Subaccount, Money Market Subaccount, Treasury 2000 Subaccount,
International Stock Subaccount, and the World Governments Subaccount of the
Century Variable Account as of December 31, 1995, the related statements of
operations and changes in net assets for each of the years in the three-year
(two years for Capital Appreciation Stock Subaccount and one year for
International Stock and World Governments Subaccounts) period then ended, and
the condensed financial information for each of the years in the five-year (two
years for Capital Appreciation Stock Subaccount and one year for International
Stock and World Governments Subaccounts) period then ended. These financial
statements and condensed financial information are the responsibility of the
Account's management. Our responsibility is to express an opinion on these
financial statements and condensed financial information 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 and condensed
financial information are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Investments owned at December 31, 1995 were verified
by audit of the statements of assets and liabilities of the underlying funds of
Ultra Series Fund and confirmation with MFS Variable Insurance Trust and T. Rowe
Price. 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 financial statements and condensed financial information
referred to above present fairly, in all material respects, the financial
position of the Capital Appreciation Stock Subaccount, Growth and Income Stock
Subaccount, Balanced Subaccount, Bond Subaccount, Money Market Subaccount,
Treasury 2000 Subaccount, International Stock Subaccount and the World
Governments Subaccount of Century Variable Account as of December 31, 1995; the
results of their operations and the changes in their net assets for each of the
years in the three-year (two years for Capital Appreciation Stock Subaccount and
one year for International Stock and World Governments Subaccounts) period then
ended; and the condensed financial information for each of the years in the
five-year (two years for Capital Appreciation Stock Subaccount and one year for
International Stock and World Governments Subaccounts) period then ended, in
conformity with generally accepted accounting principles.
KPMG PEAT MARWICK LLP
Des Moines, Iowa
February 16, 1996
12
<PAGE>
