LIFE OF VIRGINIA SEPARATE ACCOUNT I
STATEMENTS OF ASSETS
& LIABILITIES
(Unaudited)
June 30, 1997
A GE Capital Services Company
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LIFE OF VIRGINIA SEPARATE ACCOUNT I
Table of Contents
For the six months ended June 30, 1997
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Page
Financial Statements:
Statement of Assets and Liabilities...................................1
Statement of Operations...............................................2
Statement of Changes in Net Assets....................................3
Notes to Financial Statements...............................................4
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LIFE OF VIRGINIA SEPARATE ACCOUNT I
Statement of Assets and Liabilities
As of June 30, 1997
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GE Investments Funds, Inc.
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S&P 500 Government Money Total
Index Securities Market Return
Assets Fund Fund Fund Fund
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Investment in GE Investments Funds, Inc., at
fair value (note 2):
S&P 500 Index Fund (146,912
shares; cost - $2,277,959) $2,626,779 -- -- --
Government Securities Fund (112,390
shares; cost - $1,126,747) -- 1,086,808 -- --
Money Market Fund (1,900,166 shares;
cost - $3,567,318) -- -- 1,900,166 --
Total Return Portolio (34,518 shares;
cost - $432,117) -- -- -- 484,984
Receivable from affiliate (note 3) 10,290 -- -- --
Receivable for units sold -- -- -- 117
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Total assets $2,637,069 1,086,808 1,900,166 485,101
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Liabilities
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Accrued expenses payable to affiliate (note 3) 434 4,993 107 252
Payable for units withdrawn 442 8 1 --
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Total liabilities 876 5,001 108 252
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Net assets $2,636,193 1,081,807 1,900,058 484,849
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Analysis of Net Assets
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For flexible premium variable life insurance policies $2,636,193 55,974 89,160 484,849
Attributable to The Life Insurance Company of Virginia -- 1,025,833 1,810,898 --
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Net assets $2,636,193 1,081,807 1,900,058 484,849
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Outstanding units 39,768 46,549 106,805 12,742
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Net asset value per unit $ 66.29 23.24 17.79 38.05
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See accompanying notes to financial statements.
1
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LIFE OF VIRGINIA SEPARATE ACCOUNT I
Statement of Operations
For the Six Months Ended June 30, 1997
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GE Investments Funds, Inc.
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S&P 500 Government Money Total
Index Securities Market Return
Fund Fund Fund Fund
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Investment income:
Income - Dividends from GE Investments
Fund, Inc. $ -- -- 1,749,138 --
Expenses - Mortality and expense risk
charges (note 3) 5,988 145 188 1,148
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Net investment income (5,988) (145) 1,748,950 (1,148)
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Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) 4,097 (457) (1,296) 2,256
Unrealized appreciation (depreciation)
on investments 400,970 12,764 (1,699,518) 44,217
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Net realized and unrealized gain (loss)
on investments 405,067 12,307 (1,700,814) 46,473
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Increase (decrease) in net assets
from operations $ 399,079 12,162 48,136 45,325
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See accompanying notes to financial statements.
2
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LIFE OF VIRGINIA SEPARATE ACCOUNT I
Statement of Changes in Net Assets
As of June 30, 1997
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<CAPTION>
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GE Investments Funds, Inc.
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S&P 500 Government Money Total
Index Securities Market Return
Fund Fund Fund Fund
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Increase (decrease) in net assets
From operations:
Net investment income $ (5,988) (145) 1,748,950 (1,148)
Net realized gain (loss) 4,097 (457) (1,296) 2,256
Unrealized appreciation
(depreciation) on investments 400,970 12,764 (1,699,518) 44,217
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Increase (decrease) in net assets from
operations 399,079 12,162 48,136 45,325
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From capital transactions:
Net premiums 67,498 2,977 2,375 17,145
Loan interest (2,608) (88) (75) (697)
Transfers (to) from the general
account of Life of Virginia:
Death benefits -- -- -- --
Surrenders (8,478) (137) -- (12,936)
Loans 309 (198) (75) (2,430)
Cost of insurance (note 3) (61,367) (2,156) (5,103) (17,251)
Transfer gain (loss) and
transfer fees (note 3) 239 (87) 1,657 (70)
Capital contribution
(withdrawal) -- -- -- --
Interfund transfers (28,586) (5,078) 30,084 3,580
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Increase (decrease) in net assets from
capital transactions (32,993) (4,768) 28,863 (12,659)
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Increase (decrease) in net assets 366,086 7,395 76,999 32,666
Net assets at beginning of year 2,270,107 1,074,412 1,823,059 452,183
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Net assets at end of year $ 2,636,193 1,081,807 1,900,058 484,849
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</TABLE>
See accompanying notes to financial statements.
3
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LIFE OF VIRGINIA SEPARATE ACCOUNT I
Notes to Financial Statements
June 30, 1997
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(1) Description of Entity
Life of Virginia Separate Account I (the Account) is a separate
investment account established in 1984 by The Life Insurance Company of
Virginia (Life of Virginia) under the laws of the Commonwealth of
Virginia. The Account operates as a unit investment trust under the
Investment Company Act of 1940. The Account is used to fund certain
benefits for flexible premium variable life insurance policies issued
by Life of Virginia prior to December 31, 1988. The Life Insurance
Company of Virginia is a stock life insurance company operating under a
charter granted by the Commonwealth of Virginia on March 21, 1871.
Eighty percent of the capital stock of Life of Virginia is owned by
General Electric Capital Assurance Corporation. The remaining 20% is
owned by GE Life Insurance Group, Inc. General Electric Capital
Assurance Corporation and GE Life Insurance Group, Inc. are indirectly,
wholly-owned subsidiaries of General Electric Capital Corporation ("GE
Capital"). GE Capital, a New York corporation, is a diversified
financial services company.
(2) Summary of Significant Accounting Policies
Investments
Investments are stated at fair value which is based on the underlying
net asset value per share of the respective portfolios or funds.
Purchases and sales of investments are recorded on the trade date.
Realized gains and losses on investments are determined on the average
cost basis. The units and unit values are disclosed as of the last
business day in the applicable year or period.
The aggregate cost of investments acquired and the aggregate proceeds
of investments sold, for the six months June 30, 1997 was:
Cost of Shares Proceeds From
Fund/Portfolio Acquired Shares Sold
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S&P 500 Index $ 1,022,318 $ 111,142
Government Securities 110,902 7,982
Money Market 1,871,886 5,377
Total Return 148,635 37,012
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4
(Continued)
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LIFE OF VIRGINIA SEPARATE ACCOUNT I
Notes to Financial Statements
June 30, 1997
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(2) Continued
Federal Income Taxes
The Account is not taxed separately because the operations of the
Account are part of the total operations of Life of Virginia. Life of
Virginia is taxed as a life insurance company under the Internal
Revenue Code (the Code). Life of Virginia is included in the General
Electric Capital Assurance Company consolidated federal income tax
return. The Account will not be taxed as a regulated investment company
under subchapter M of the Code. Under existing federal income tax law,
no taxes are payable on the investment income or on the capital gains
of the Account.
Use of Estimates
Financial statements prepared in conformity with generally accepted
accounting principles require management to make estimates and
assumptions that affect amounts reported therein. Actual results could
differ from those estimates.
(3) Related Party Transactions
Net premiums transferred from Life of Virginia to the Account represent
gross premiums recorded by Life of Virginia on its flexible premium
variable life insurance policies, less deductions retained as
compensation for certain distribution expenses and premium taxes. A
charge equal to the lesser of $25 or 2% of the amount paid on a partial
surrender will be made to compensate Life of Virginia for the costs
incurred in connection with accomplishing the surrender.
A charge based on the policy specified amount of insurance, death
benefit option, cash values, duration, the insured's sex, issue age and
risk class is deducted from the policy cash values each month to
compensate Life of Virginia for the cost of insurance and any benefits
added by rider. In addition, Life of Virginia charges the Account for
the mortality and expense risk that Life of Virginia assumes. This
charge is deducted daily at an effective annual rate of .50% of the net
assets of the Account.
Gains or losses resulting from the processing time between the receipt
of an initial net premium and the investment of that premium are
charged to Life of Virginia. In addition, any such gain or loss
resulting from the processing time between a request for policy
surrender and the sale of underlying shares is also charged to Life of
Virginia.
GE Investment Funds, Inc. (the Fund) is an open-end diversified
management investment company whose shares are sold to Life of
Virginia's Separate Accounts.
5
(Continued)
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LIFE OF VIRGINIA SEPARATE ACCOUNT I
Notes to Financial Statements
June 30, 1997
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(3) Continued
Forth Financial Securities Corporation (FFSC), an affiliate of Life of
Virginia, acts as principal underwriter (as defined in The Investment
Company Act of 1940) of the Account's policies pursuant to an agreement
with Life of Virginia. GE Investment Management Incorporated currently
serves as investment adviser to GE Investment Funds, Inc. (formerly
Life of Virginia Series Fund, Inc.). Prior to May 1, 1997, Aon
Advisors, Inc. served as investment advisor to the Fund and had agreed
to reimburse the Fund for certain expenses of each of the Fund's
portfolios.
As compensation for its services, the Investment Advisor is paid an
investment advisory fee by the Fund based on the average daily net
assets at an effective annual rate of .35% for the S&P 500 Index Fund,
.10% for the Government Securities Fund, .50% for the Money Market and
Total Return Funds, 1.00% for the International Equity Fund and .85%
for the Real Estate Securities Fund.
Certain officers and directors of Life of Virginia are also officers
and directors of FFSC and the Fund.
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