GE Life & annuity Separate Account I
Financial Statements
For the six months ended June 30, 1999
(Unaudited)
<PAGE>
GE LIFE & ANNUITY Separate Account I
Table of Contents
For the six months ended June 30, 1999
- ------------------------------------------------------------------------------
Page
Financial Statements:
(Unaudited)
Statements of Assets and Liabilities..................................1
Statements of Operations..............................................2
Statements of Changes in Net Assets...................................3
Notes to Financial Statements.............................................4
(Unaudited)
- ------------------------------------------------------------------------------
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Statements of Assets and Liabilities
As of June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
==============================================================================================================================
GE Investments Funds, Inc.
------------------------------------------------------------
S&P 500 Money Total
Index Market Return Income
Assets Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc., at fair value (note 2):
S&P 500 Index Fund (145,698 shares;
cost - $2,419,271) $ 3,871,204 - - -
Money Market Fund (114,406 shares;
cost - $113,383) - 114,406 - -
Total Return Fund (37,443 shares;
cost - $492,519) - - 585,985 -
Income Fund (98,213 shares;
cost - $1,191,888) - - - 1,189,361
Receivable for units sold 69 - - -
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets $ 3,871,273 114,406 585,985 1,189,361
=================================================================================================================================
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 3,152 5,064 1,712 5,574
- ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 3,152 5,064 1,712 5,574
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets $ 3,868,121 109,342 584,273 1,183,787
=================================================================================================================================
Analysis of Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
For flexible premium variable life insurance policies $ 3,868,121 104,193 584,273 39,970
Attributable to GE Life and Annuity Assurance Company - 5,149 - 1,143,817
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets $ 3,868,121 109,342 584,273 1,183,787
=================================================================================================================================
Outstanding units 37,165 5,351 11,607 3,796
=================================================================================================================================
Net asset value per unit $ 104.08 19.47 50.34 10.53
=================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
1
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Statements of Operations
For the six months ended June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
===============================================================================================================================
GE Investments Funds, Inc.
-----------------------------------------------------------------
S&P 500 Money Total
Index Market Return Income
Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends from GE Investments
Funds, Inc. $ - 2,634 - -
Expenses - Mortality and expense risk
charges (note 3) 9,539 270 1,501 106
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (9,539) 2,364 (1,501) (106)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain 58,173 37 4,862 28
Unrealized appreciation (depreciation)
on investments 361,982 (37) 32,854 (22,625)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 420,155 - 37,716 (22,597)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 410,616 2,364 36,215 (22,703)
================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
2
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Statements of Changes in Net Assets
As of June 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
================================================================================================================================
GE Investments Funds, Inc.
---------------------------------------------------------------------
S&P 500 Money Total
Index Market Return Income
Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (9,539) 2,364 (1,501) (106)
Net realized gain 58,173 37 4,862 28
Unrealized appreciation (depreciation)
on investments 361,982 (37) 32,854 (22,625)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 410,616 2,364 36,215 (22,703)
- --------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 66,820 976 16,852 2,248
Loan interest (3,027) (156) (1,476) (199)
Transfers (to) from the general
account of GE Life & Annuity:
Surrenders (67,217) - (4,047) -
Loans (14,285) 78 (7,276) -
Cost of insurance (note 3) (71,942) (3,573) (19,131) (1,801)
Transfer gain (loss) and
transfer fees (note 3) 1,173 (162) (213) 110
Interfund transfers 504 - 336 (840)
- --------------------------------------------------------------------------------------------------------------------------------
(Decrease) in net assets from
capital transactions (87,974) (2,837) (14,955) (482)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 322,642 (473) 21,260 (23,185)
Net assets at beginning of year 3,545,479 109,815 563,013 1,206,972
- --------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 3,868,121 109,342 584,273 1,183,787
================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
3
<PAGE>
GE Life & Annuity Separate Account I
Notes to Financial Statements
June 30, 1999
(Unaudited)
- --------------------------------------------------------------------------------
(1) Description of Entity
GE Life & Annuity Separate Account I (the Account) is a separate
investment account established in 1984 by GE Life and Annuity Assurance
Company (GE Life & Annuity) 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
GE Life & Annuity prior to December 31, 1988. GE Life and Annuity
Assurance Company is a stock life insurance company operating under a
charter granted by the Commonwealth of Virginia on March 21, 1871. A
majority of the capital stock of GE Life & Annuity is owned by General
Electric Capital Assurance Company. The remaining portion is owned by GE
Financial Assurance Holdings, Inc. General Electric Capital Assurance
Company and GE Financial Assurance Holdings, Inc. are indirect,
wholly-owned subsidiaries of General Electric Capital Corporation ("GE
Capital"). GE Capital, a diversified financial services company, is a
wholly-owned subsidiary of General Electric Company (GE), a New York
corporation. Prior to April 1, 1996, GE Life & Annuity was an indirect
wholly-owned subsidiary of Aon Corporation.
(2) Summary of Significant Accounting Policies
(a) Investments
Investments are stated at fair value which is based on the
underlying net asset value per share of the respective funds.
Purchases and sales of investments are recorded on the trade date
and income distributions are recorded on the ex-dividend 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 ended June 30,
1999 were:
Cost of Shares Proceeds From
Fund Acquired Shares Sold
------------------------------------------------------------------
GE Investments Funds, Inc.:
S&P 500 Index $ 76,547 $ 174,812
Money Market 3,746 4,077
Total Return 18,848 35,321
Income 2,366 3,072
==================================================================
4
(Continued)
<PAGE>
GE Life & Annuity Separate Account I
Notes to Financial Statements
June 30, 1999
(Unaudited)
- --------------------------------------------------------------------------------
(b) Capital Transactions
The increase (decrease) in outstanding units from capital
transactions for the six months ended June 30, 1999 is as follows:
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
-------------------------------------------
S&P 500 Money Total
Index Market Return Income
Fund Fund Fund Fund
--------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 38,078 5,492 11,911 3,850
From capital transactions:
Net premiums 684 51 346 205
Loan Interest (31) (8) (30) (18)
Transfers (to) from the
general acct. of GE Life & Annuity:
Surrenders (688) - (83) -
Loans (146) 4 (150) -
Cost of insurance (737) (188) (394) (164)
Interfund transfers 5 - 7 (77)
--------------------------------------------------------------------------------------
Net increase (decrease) in units resulting
from capital transactions (913) (141) (304) (54)
--------------------------------------------------------------------------------------
Units outstanding at June 30, 1999 37,165 5,351 11,607 3,796
======================================================================================
</TABLE>
(c) Federal Income Taxes
The Account is not taxed separately because the operations of the
Account are part of the total operations of GE Life & Annuity. GE
Life & Annuity is taxed as a life insurance company under the
Internal Revenue Code (the Code). GE Life & Annuity is included in
the General Electric Capital Assurance Company consolidated
federal income tax return. Under existing federal income tax law,
no taxes are payable on the investment income or on the capital
gains of the Account.
(d) Use of Estimates
Financial statements prepared in conformity with generally
accepted accounting principles require management to make
estimates and assumptions that affect amounts and disclosures
reported therein. Actual results could differ from those
estimates.
(3) Related Party Transactions
Net premiums transferred from GE Life & Annuity to the Account represent
gross premiums recorded by GE Life & Annuity 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 is made to compensate GE Life & Annuity for the costs incurred
in connection with accomplishing the surrender.
5
(Continued)
<PAGE>
GE Life & Annuity Separate Account I
Notes to Financial Statements
June 30, 1999
(Unaudited)
- --------------------------------------------------------------------------------
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 GE
Life & Annuity for the cost of insurance and any benefits added by rider.
In addition, GE Life & Annuity charges the Account for the mortality
and expense (M&E) risk that GE Life & Annuity assumes. This M&E charge is
deducted daily at an effective annual rate of .50% of the net assets of
the Account.
GE Investments Funds, Inc. (the Fund) is an open-end diversified
management investment company.
Capital Brokerage Corporation, an affiliate of GE Life & Annuity, is a
Washington corporation registered with the Commission under the
Securities Exchange Act of 1934 as a broker-dealer and is a member of the
National Association of Securities Dealers, Inc. Capital Brokerage
Corporation serves as principal underwriter for variable life insurance
policies issued by GE Life & Annuity.
GE Investment Management Incorporated (Investment Advisor), a
wholly-owned subsidiary of GE, currently serves as investment advisor to
GE Investments Funds, Inc. 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 Money Market Fund and .50% for the
Total Return and Income Funds. Prior to May 1, 1997, Aon Advisors, Inc.
served as investment advisor to the Fund and was subject to the same
compensation arrangement as GE Investment Management Incorporated.
Certain officers and directors of GE Life & Annuity are also officers and
directors of Capital Brokerage Corporation.
6
