<PAGE>
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, 2000
<TABLE>
<CAPTION>
Page
----
<S> <C>
Financial Statements (Unaudited):
Statements of Assets and Liabilities..................................... F-1
Statements of Operations................................................. F-2
Statements of Changes in Net Assets...................................... F-3
Notes to Financial Statements (Unaudited).................................. F-4
</TABLE>
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Statements of Assets and Liabilities
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
-----------------------------------
Money Total
S&P 500 Market Return Income
Index Fund Fund Fund Fund
Assets ---------- ------ ------- ---------
<S> <C> <C> <C> <C>
Investment in GE Investments Funds, Inc.,
at fair value (note 2):
S&P 500 Index Fund (127,112 shares;
cost -- $2,195,982)..................... $3,550,242 -- -- --
Money Market Fund (75,541 shares; cost --
$75,131)............................... -- 75,541 -- --
Total Return Fund (36,307 shares; cost --
$486,995).............................. -- -- 593,988 --
Income Fund (102,949 shares; cost --
$1,245,743)............................ -- -- -- 1,225,095
---------- ------ ------- ---------
Total assets............................. 3,550,242 75,541 593,988 1,225,095
========== ====== ======= =========
Liabilities
Accrued expenses payable to affiliate
(note 3)................................. 2,469 5,287 1,739 5,779
Payable for Units Withdrawn............... 33,588 -- -- --
---------- ------ ------- ---------
Total liabilities........................ 36,057 5,287 1,739 5,779
---------- ------ ------- ---------
Net assets............................... $3,514,185 70,254 592,249 1,219,316
========== ====== ======= =========
Analysis of Net Assets
Attributable to:
Flexible premium variable life insurance
policyholders........................... $3,514,185 64,818 592,249 31,462
GE Life and Annuity Assurance Company.... -- 5,436 -- 1,187,854
---------- ------ ------- ---------
Net assets............................... $3,514,185 70,254 592,249 1,219,316
========== ====== ======= =========
Outstanding units attributable to
policyholders........................... 31,719 3,166 10,805 2,892
========== ====== ======= =========
Net asset value per unit................. $ 110.79 20.47 54.81 10.88
========== ====== ======= =========
</TABLE>
See accompanying notes to unaudited financial statements.
F-1
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Statements of Operations
Six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
--------------------------------
S&P 500 Money Total
Index Market Return Income
Fund Fund Fund Fund
-------- ------ ------ ------
<S> <C> <C> <C> <C>
Investment income:
Income-Ordinary dividends.................... $ -- 2,188 -- --
Expenses -- Mortality and expense risk
charges (note 3)............................ 9,284 165 1,520 88
-------- ----- ------ ------
Net investment income (expense)............... (9,284) 2,023 (1,520) (88)
-------- ----- ------ ------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss)..................... 141,340 213 8,316 (465)
Unrealized appreciation (depreciation) on
investments................................. (175,466) (213) 10,050 40,756
Capital gain distribution.................... -- -- -- --
-------- ----- ------ ------
Net realized and unrealized gain (loss) on
investments.................................. (34,126) -- 18,366 40,291
-------- ----- ------ ------
Increase (decrease) in net assets from
operations................................... $(43,410) 2,023 16,846 40,203
======== ===== ====== ======
</TABLE>
See accompanying notes to unaudited financial statements.
F-2
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Statements of Changes in Net Assets
Six months ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
---------------------------------------
S&P 500 Money Total
Index Market Return Income
Fund Fund Fund Fund
---------- ------- ------- ---------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense)...... $ (9,284) 2,023 (1,520) (88)
Net realized gain (loss)............. 141,340 213 8,316 (465)
Unrealized appreciation
(depreciation) on investments....... (175,466) (213) 10,050 40,756
---------- ------- ------- ---------
Increase (decrease) in net assets from
operations........................... (43,410) 2,023 16,846 40,203
---------- ------- ------- ---------
From capital transactions:
Net premiums......................... 67,510 5,548 15,358 2,059
Loan interest........................ (1,482) (170) (1,313) (170)
Transfers (to) from the general
account of GE Life and Annuity:
Death benefits...................... -- -- -- --
Surrenders.......................... (196,053) (32,161) (22,555) --
Loans............................... (100,955) -- 22 (1,573)
Cost of insurance (note 3).......... (76,871) (2,564) (21,811) (1,761)
Transfer gain (loss) and transfer
fees............................... (296) (303) 80 (188)
Interfund transfers................... 8,317 -- -- (8,317)
---------- ------- ------- ---------
Increase (decrease) in net assets
from capital transactions.......... (299,830) (29,650) (30,219) (9,950)
---------- ------- ------- ---------
Increase (decrease) in net assets..... (343,240) (27,627) (13,373) 30,253
Net assets at beginning of year....... 3,857,425 97,881 605,622 1,189,063
---------- ------- ------- ---------
Net assets at end of period........... $3,514,185 70,254 592,249 1,219,316
========== ======= ======= =========
</TABLE>
See accompanying notes to unaudited financial statements.
F-3
<PAGE>
GE LIFE & ANNUITY SE PARATE ACCOUNT I
Notes to Financial Statements
June 30, 2000
(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. General Electric Capital Assurance Company
and its parent, 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.
(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, 2000 were:
<TABLE>
<CAPTION>
Proceeds
Cost of From
Shares Shares
Fund Acquired Sold
---- -------- --------
<S> <C> <C>
GE Investments Funds, Inc.:
S&P 500 Index Fund........................................... $107,871 383,974
Money Market Fund............................................ 8,090 35,555
Total Return Fund............................................ 19,885 51,656
Income Fund.................................................. 2,599 12,452
</TABLE>
F-4
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Notes to Financial Statements -- Continued
June 30, 2000
(Unaudited)
(2) Summary of Significant Accounting Policies -- Continued
(b) Capital Transactions
The increase (decrease) in outstanding units from capital transactions for
the six months ended June 30, 2000 is as follows:
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
------------------------------
S&P
500 Money Total
Index Market Return Income
Fund Fund Fund Fund
------ ------ ------ ------
<S> <C> <C> <C> <C>
Units outstanding at December 31, 1999.......... 34,521 4,644 11,369 3,805
------ ------ ------ -----
Net premiums................................... 631 280 286 193
Loan interest.................................. (14) (9) (24) (16)
Tranfers (to) from the general account of GE
Life & Annuity:
Death benefits................................ -- -- -- --
Surrenders.................................... (1,834) (1,620) (420) --
Loans......................................... (944) -- -- (147)
Cost of insurance............................. (719) (129) (406) (165)
Interfund transfers............................. 78 -- -- (778)
------ ------ ------ -----
Net increase (decrease) in units from capital
transactions................................... (2,802) (1,478) (564) (913)
------ ------ ------ -----
Units outstanding at June 30, 2000.............. 31,719 3,166 10,805 2,892
====== ====== ====== =====
</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.
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.
F-5
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT I
Notes to Financial Statements -- Continued
June 30, 2000
(Unaudited)
(3) Related Party Transactions -- Continued
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, and .50% for
the Money Market, 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.
F-6
