PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
Financial Statements for the Six Months Ended
June 30, 1996, 1995 and 1994
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996
[Unaudited]
ASSETS:
Shares
Cost
Value
Investments in affiliated mutual funds:
Maxim Series Fund, Inc.-Money Market
632,167
$632,202
$632,595
Maxim Series Fund, Inc.-Bond
482,587
577,651
575,982
Maxim Series Fund, Inc.-Stock Index
667,476
996,552
1,437,841
Maxim Series Fund, Inc.-U.S. Government Securities
1,036,379
1,110,703
1,099,943
Maxim Series Fund, Inc.-Total Return
305,000
379,630
408,699
Total investments
$3,696,738
4,155,060
Other assets and liabilities:
Due to Great-West Life & Annuity Insurance Company
(7,644)
NET ASSETS APPLICABLE TO OUTSTANDING UNITS OF CAPITAL (Note 5)
$4,147,416
See notes to financial statements.
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1996
[Unaudited]
Money Market Investment Division
Bond Investment Division
Stock Index Investment Division
U.S. Government Securities Investment Division
Total Return Investment Division
Total Pinnacle
INVESTMENT INCOME
$14,106
$17,453
$11,229
$37,180
$5,735
$85,703
EXPENSES - mortality and expense
risks (Note 3)
1,448
1,460
3,546
3,342
1,031
10,827
NET INVESTMENT INCOME
12,658
15,993
7,683
33,838
4,704
74,876
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments
(578)
42,336
20,013
16,887
78,658
Net change in unrealized appreciation
(depreciation) on investments
(17,121)
77,867
(69,198)
(5,011)
(13,463)
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
0
(17,699)
120,203
(49,185)
11,876
65,195
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS
$12,658
(1,706)
127,886
$(15,347)
$16,580
$140,071
See notes to financial statements.
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1995
[Unaudited]
Money Market Investment Division
Bond Investment Division
Stock Index Investment Division
U.S. Government Securities Investment Division
Zero-Coupon 1995 Treasury Investment Division
Total Return Investment Division
Total Pinnacle
INVESTMENT INCOME
$13,941
$16,501
$11,115
$48,961
$
$6,259
$96,777
EXPENSES - mortality and expense
risks (Note 3)
1,235
1,361
2,713
3,782
923
860
10,874
NET INVESTMENT INCOME (LOSS)
12,706
15,140
8,402
45,179
(923)
5,399
85,903
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments
(2,677)
7,397
(62,314)
18,255
(4,365)
(43,704)
Net change in unrealized appreciation
(depreciation) on investments
(1)
39,425
174,664
156,305
(4,553)
40,700
406,540
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
(1)
36,748
182,061
93,991
13,702
36,335
362,836
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS
$12,705
$51,888
$190,463
$139,170
$12,779
$41,734
$448,739
See notes to financial statements.
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30, 1994
[Unaudited]
Money Market Investment Division
Bond Investment Division
Stock Index Investment Division
U.S. Government Securities Investment Division
Zero-Coupon 1995 Treasury Investment Division
Total Return Investment Division
Total Pinnacle
INVESTMENT INCOME
$11,777
$14,831
$10,150
$33,113
$
$5,517
$75,388
EXPENSES - mortality and expense
risks (Note 3)
1,894
1,372
2,422
3,897
1,109
926
11,620
NET INVESTMENT INCOME (LOSS)
9,883
13,459
7,728
29,216
(1,109)
4,591
63,768
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on investments
(2,202)
1,944
(34,108)
20,699
1,389
(12,278)
Net change in unrealized
(depreciation) on investments
(29,204)
(54,072)
(59,789)
(22,612)
(21,158)
(186,835)
NET REALIZED AND UNREALIZED
(LOSS) ON INVESTMENTS
(31,406)
(52,128)
(93,897)
(1,913)
(19,769)
(199,113)
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS
$9,883
$(17,947)
$(44,400)
$(64,681)
$(3,022)
$(15,178)
$(135,345)
See notes to financial statements.
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, 1996, 1995, and 1994
[Unaudited]
Money Market Investment Division
1996
1995
1994
Bond Investment Division
1996
1995
1994
FROM OPERATIONS:
Net investment income
$12,658
$12,706
$9,883
$15,993
$15,140
$13,459
Net realized (loss) on investments
(578)
(2,677)
(2,202)
Net change in unrealized appreciation
(depreciation) on investments
(1)
(17,121)
39,425
(29,204)
Increase (decrease) in net assets
resulting from operations
12,658
12,705
9,883
(1,706)
51,888
(17,947)
FROM UNIT TRANSACTIONS:
Variable annuity contract
redemptions
(166,820)
(20,179)
(10,522)
(15,296)
(16,177)
(8,014)
Net transfers from (to) other
investment divisions
273,391
149,583
(107,726)
(11,268)
12,437
324,127
Increase (decrease) in net assets
resulting from unit transactions
106,571
129,404
(118,248)
(26,564)
(3,740)
316,113
INCREASE (DECREASE) IN NET ASSETS
119,229
142,109
(108,365)
(28,270)
48,148
298,166
NET ASSETS:
Beginning of period
511,975
476,206
755,406
603,447
515,765
486,561
End of period
$631,204
$618,315
$647,041
$575,177
$563,913
$784,727
See notes to financial statements.
(Continued)
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, 1996, 1995, and 1994
[Unaudited]
Stock Index Investment Division
1996
1995
1994
U.S. Government Securities Investment Division
1996
1995
1994
FROM OPERATIONS:
Net investment income
$7,683
$8,402
$7,728
$33,838
$45,179
$29,216
Net realized gain (loss) on investments
42,336
7,397
1,944
20,013
(62,314)
(34,108)
Net change in unrealized appreciation
(depreciation) on investments
77,867
174,664
(54,072)
(69,198)
156,305
(59,789)
Increase (decrease) in net assets
resulting from operations
127,886
190,463
(44,400)
(15,347)
139,170
(64,681)
FROM UNIT TRANSACTIONS:
Variable annuity contract
redemptions
(132,866)
(24,059)
(9,549)
(54,115)
(253,546)
(69,214)
Net transfers from (to) other
investment divisions
46,997
62,913
266
(270,487)
(200,618)
(233,143)
Increase (decrease) in net assets
resulting from unit transactions
(85,869)
38,854
(9,283)
(324,602)
(454,164)
(302,357)
INCREASE (DECREASE) IN NET ASSETS
42,017
229,317
(53,683)
(339,949)
(314,994)
(367,038)
NET ASSETS:
Beginning of period
1,393,671
978,803
989,766
1,437,409
1,510,962
1,751,251
End of period
$1,435,688
$1,208,120
$936,083
$1,097,460
$1,195,968
$1,384,213
See notes to financial statements.
(Continued)
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, 1996, 1995, and 1994
[Unaudited]
Zero-Coupon 1995 Investment Division
1995
1994
Total Return Investment Division
1996
1995
1994
Total Pinnacle
1996
1995
1994
FROM OPERATIONS:
Net investment income (loss)
$(923)
$(1,109)
$4,704
$5,399
$4,591
$74,876
$85,903
$63,768
Net realized gain (loss) on investments
18,255
20,699
16,887
(4,365)
1,389
78,658
(43,704)
(12,278)
Net change in unrealized appreciation
(depreciation) on investments
(4,553)
(22,612)
(5,011)
40,700
(21,158)
(13,463)
406,540
(186,835)
Increase (decrease) in net assets
resulting from operations
12,779
(3,022)
16,580
41,734
(15,178)
140,071
448,739
(135,345)
FROM UNIT TRANSACTIONS:
Variable annuity contract
redemptions
(16,688)
(9,633)
(3,911)
(70,468)
(5,201)
(373,008)
(401,117)
(112,133)
Net transfers from (to) other
investment divisions
(52,352)
(38,636)
(24,315)
68,828
(3)
Increase (decrease) in net assets
resulting from unit transactions
(16,688)
(61,985)
(42,547)
(94,783)
63,627
(373,011)
(401,117)
(112,133)
INCREASE (DECREASE) IN NET ASSETS
(3,909)
(65,007)
(25,967)
(53,049)
48,449
(232,940)
47,622
(247,478)
NET ASSETS:
Beginning of period
368,307
488,353
433,854
375,763
328,846
4,380,356
4,225,806
4,800,183
End of period
$364,398
$423,346
$407,887
$322,714
$377,295
$4,147,416
$4,273,428
$4,552,705
See notes to financial statements.
(Concluded)
PINNACLE SERIES ACCOUNT OF
GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 1996, 1995, and 1994
[Unaudited]
1. HISTORY OF THE SERIES ACCOUNT
The Pinnacle Series Account of Great-West Life & Annuity
Insurance Company (the Series Account) is a variable life separate
account of Great-West Life & Annuity Insurance Company (the
Company) and was established under the laws of Kansas on January
31, 1985. In 1990 the Series Account was amended to conform to and
comply with Colorado law in connection with the Company's
redomestication to the State of Colorado. The Series Account is
registered with the Securities and Exchange Commission as a unit
investment trust under the provisions of the Investment Company Act
of 1940, as amended. The Series Account product, a single premium
variable life policy, is no longer being sold. The Series Account
is also closed to additional contributions from existing
policyholders.
The Series Account has various investment divisions which
invest solely in shares of Maxim Series Fund, Inc. (the Fund), an
open-end management investment company. The Series Account
investment divisions invest in the following Fund portfolios; the
Money Market Portfolio (Money Market Investment Division), the Bond
Portfolio (Bond Investment Division), the Stock Index Portfolio
(Stock Index Investment Division), the U.S. Government Securities
Portfolio (U.S. Government Securities Investment Division), the
Zero-Coupon 1995 Treasury Portfolio (Zero-Coupon 1995 Treasury
Investment Division), and the Total Return Portfolio (Total Return
Investment Division). On November 15, 1995 the Zero-Coupon 1995
Treasury Portfolio matured and funds were distributed to
shareholders; therefore net assets at December 31, 1995 are zero.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies
of the Series Account which are in accordance with the accounting
principles generally accepted in the investment company industry:
a. Security Transactions - Security transactions are
recorded on the trade date. Cost of investments sold is determined
on the basis of identified cost.
Dividend income is accrued as of the ex-dividend date and
expenses are accrued on a daily basis.
b. Security Valuation - The investments in shares of the
Fund are valued at the closing net asset value per share as
determined by each Fund portfolio at year end.
The cost of investments represents shares of the Fund
which were purchased by the Series Account. Purchases are made at
the net asset value from net purchase payments or through
reinvestment of all distributions from the Fund.
c. Federal Income Taxes - The Series Account income is
automatically applied to increase contract reserves. Under the
existing federal income tax law, this income is not taxed to the
extent that it is applied to increase reserves under the contract.
The Company reserves the right to charge the Series Account for
federal income taxes attributable to the Series Account if such
taxes are imposed in the future.
3. CHARGES UNDER THE POLICIES
a. Deductions for Sales Charge - The Company deducts a
sales charge equal to 8% of the single premium from a participant's
account in monthly installments over the first ten policy years.
The sales charge compensates the Company for its expense of selling
and administering the policy.
b. Deductions for Premium Taxes - The Company deducts a
premium tax charge equal to 2% of the single premium from a
participant's account in monthly installments over the first ten
policy years.
c. Deductions for Cost of Insurance - A monthly charge is
deducted from a participant's account for the insurance risk
assumed by the Company. The risk is equal to the death benefit
less the total account value. This charge is based on the attained
age, sex and premium class of the insured.
d. Deductions for Assumption of Mortality and Expense Risks
- - The Company deducts an amount, computed daily, from the net asset
value of the Series Account investments equal to an annual rate of
.50%. This charge is designed to compensate the Company for its
assumption of certain mortality and expense risks. The level of
this charge is guaranteed and will not change.
e. Transfer Charges - With the exception of the first six
transfers in each policy year, a transfer charge of $25 is deducted
from a participant's account for each transfer between investment
divisions.
4. RELATED-PARTY SERVICES
The Company's parent, The Great-West Life Assurance Company,
serves as investment advisor to Maxim Series Fund, Inc. Fees are
assessed against the average daily net asset value of the Fund to
compensate The Great-West Life Assurance Company for investment
advisory services.
5. COMPONENTS OF NET ASSETS APPLICABLE TO OUTSTANDING UNITS OF
CAPITAL
The following is a summary of the net assets applicable to
outstanding units of capital at June 30, 1996, for each investment
division.
Units
Unit Value
Total Variable Life Contract Liabilities
NET ASSETS APPLICABLE TO
OUTSTANDING UNITS OF CAPITAL:
Investment Division:
Money Market
35,684.5125
$17.688471
$631,204
Bond
25,187.5141
22.835790
575,177
Stock Index
39,640.6620
36.217555
1,435,688
U.S. Government Securities
46,982.5917
23.358873
1,097,460
Total Return
19,335.2118
21.095556
407,887
TOTAL
$4,147,416
6. CHANGE IN SHARES
The following is a summary of the net change in the total
investment shares held in each of the affiliated mutual funds:
For the six months ended June 30,
1996
1995
1994
Maxim Series Fund, Inc.
- - Money Market
119,432
142,302
(108,355)
Maxim Series Fund, Inc.
- - Bond
(8,594)
10,032
279,628
Maxim Series Fund, Inc.
- - Stock Index
(37,478)
28,956
(668)
Maxim Series Fund, Inc.
- - U.S. Government Securities
(272,826)
(381,510)
(251,153)
Maxim Series Fund, Inc.
- - Zero-Coupon 1995 Treasury
(7,816)
(29,004)
Maxim Series Fund, Inc.
- - Total Return
(30,060)
(76,798)
56,101
