As filed with the Securities and Exchange Registration No. 33-76004*
Commission on July 14, 1997 Registration No. 811-4536
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
- --------------------------------------------------------------------------------
FORM S-6
POST-EFFECTIVE AMENDMENT NO. 8 TO
REGISTRATION STATEMENT
FOR REGISTRATION UNDER THE SECURITIES ACT OF 1933
OF SECURITIES OF UNIT INVESTMENT TRUSTS
REGISTERED ON FORM N-8B-2
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Variable Life Account B of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06l56
(Complete Address of Depositor's Principal Executive Offices)
- --------------------------------------------------------------------------------
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06l56
(Name and Complete Address of Agent for Service)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
It is proposed that this filing will become effective:
X immediately upon filing pursuant to paragraph (b) of Rule 485
--------
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant has
registered an indefinite number of securities under the Securities Act of 1933.
Registrant filed a Rule 24f-2 Notice for the fiscal year ended December 31, 1996
on February 28, 1997.
*Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in a prospectus relating
to the securities covered by Registration Statement No. 33-02339.
<PAGE>
VARIABLE LIFE ACCOUNT B
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Post-Effective Amendment No. 8 to
Registration Statement on Form S-6
Cross Reference Sheet
<TABLE>
<CAPTION>
Form N-8B-2
Item No. Part I (Prospectus dated May 1, 1997, and as Amended by Supplement dated July 14, 1997)
-------- -----------------------------------------------------------------------------------------
<S> <C>
1 Cover Page; Description of the Company and the Separate Account
2 Cover Page; Description of the Company and the Separate Account
3 Not Applicable
4 Cover Page; Description of the Company; Distribution of the Policies
5 Description of the Company and the Separate Account
6 Description of the Company and the Separate Account
7 Not Applicable
8 Financial Statements
9 Legal Matters
10 "What Choices Do You Make When You Buy a Policy?"; "What Charges or Deductions Are Made
Under the Policy?" and as amended; "Right to Instruct
Voting of Fund Shares"; "How Might Your Policy Lapse?";
"If a Policy Has Lapsed, Can You Reinstate the Policy";
"How is the Value of Your Policy Computed?"; "What is an
Accumulation Unit, and How is it Calculated?" and as
amended; "What is the Cash Surrender Value of Your
Policy"; "What is the Maturity Value of Your Policy?";
"Can You Borrow on Your Policy?"; "What is the
"Free-Look Period"?"; "How will the Death Benefit be
Paid?"; "Settlement Options"; "Additional Information";
"Miscellaneous Contract Provisions"
11 Cover Page; "Premium Allocation"; Description of the Company and
the Separate Account
12 Not Applicable
13 Summary of Charges and Fees For AetnaVest (and as amended); and AetnaVest II " What Charges
or Deductions Are Made Under the Policy?"; "When Does the Surrender Charge Apply?"
14 "What Happens When Your Premium Payment is Made"; "How is the Value of Your Policy
Computed?"; "What is An Accumulation Unit, and How is it Calculated?" and as amended
15 "What Choices Do You Make When You Buy a Policy?"; "What Happens When Your Premium Payment
is Made?"; "How is the Value of Your Policy Computed?"; "What is An Accumulation Unit, and
How is it Calculated?" and as amended
<PAGE>
Form N-8B-2
Item No. Part I (Prospectus dated May 1, 1997, and as Amended by Supplement dated July 14, 1997)
-------- -----------------------------------------------------------------------------------------
16 "How is the Value of Your Policy Computed?"; "What Choices Do You Make When You Buy a
Policy?"; "What Happens When Your Premium Payment is Made"
17 "What is the Cash Surrender Value of Your Policy?"; "When Does the Surrender Charge Apply?"
"Can You Borrow on Your Policy?"
18 Tax Matters
19 Reports to Policy Owners; Right to Instruct Voting of Fund Shares; Records and Accounts
20 Not Applicable
21 "Can You Borrow on Your Policy?"
22 Not Applicable
23 Directors and Officers of the Company and as amended
24 Miscellaneous Contract Provisions
25 The Company
26 Not Applicable
27 The Company
28 The Company; Directors and Officers of the Company and as amended
29 The Company
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Additional Information
36 Not Applicable
37 Not Applicable
38 Additional Information
39 The Company
40 Not Applicable
41 The Company
42 Not Applicable
43 Not Applicable
44 "How is the Value of Your Policy Computed?"; "What is an Accumulation Unit, and How is it
Calculated?" and as amended
45 Not Applicable
46 Illustrations of Death Benefits, Total Account Values and Cash Surrender Values for
AetnaVest Policies and as amended; Illustrations of Death Benefits, Total Account Values
and Cash Surrender Values for AetnaVest II Policies
47 "What Choices Do You Make When You Buy a Policy?"; "How is the Value of Your Policy
Computed?"
<PAGE>
Form N-8B-2
Item No. Part I (Prospectus dated May 1, 1997, and as Amended by Supplement dated July 14, 1997)
-------- -----------------------------------------------------------------------------------------
48 Not Applicable
49 Not Applicable
50 Not Applicable
51 Not Applicable
52 The Separate Account
53 Tax Matters
54 Not Applicable
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Financial Statements and as supplemented
</TABLE>
<PAGE>
Part I
The Prospectus is incorporated into Part I of this Post-Effective Amendment
No. 8 by reference to Post-Effective Amendment No. 6 to the Registration
Statement on Form S-6 (File No. 33-76004), as filed electronically on April 22,
1997.
A supplement to the Prospectus is included herein.
<PAGE>
Supplement Dated July 14, 1997 to Prospectus dated May 1, 1997
The following changes are made to the Prospectus dated May 1, 1997:
1. With respect to AetnaVest only, the references to the current charge for
mortality and expense risks of 0.70% of the average daily net assets of the
Separate Account are deleted from the following sections:
[bullet] SUMMARY OF CHARGES AND FEES FOR AETNAVEST AND AETNAVEST II-Charges and
fees associated with the Separate Account" (p. 5) ;
[bullet] WHAT IS AN ACCUMULATION UNIT AND HOW IS IT CALCULATED (p.10);
[bullet] WHAT CHARGES OR DEDUCTIONS ARE MADE UNDER THE POLICY-Insurance and
Administrative Charges (p.12); and
[bullet] Appendix A, AetnaVest Policies (p.33).
These references are replaced with the following current charges for mortality
and expense risks shown as a percentage of the average daily net assets of the
Separate Account attributable to the Funds:
Fund Name Mortality and Expense Risk Charge
- --------- ---------------------------------
Aetna Variable Fund 0.65%
Aetna Investment Advisers Fund 0.65%
Aetna Ascent Variable Portfolio 0.55%
Aetna Crossroads Variable Portfolio 0.55%
Aetna Legacy Variable Portfolio 0.55%
For all other Funds available under the AetnaVest Policies, the current charge
for mortality and expense risks is 0.70% of the average daily net assets of the
Separate Account attributable to those Funds.
2. The information regarding the Directors and Officers of the Company on page
24 of the Prospectus is revised by deleting the name and biographical
information of Laura R. Estes.
3. Table I and Table III on pages 34 and 36, respectively are deleted and
replaced with the following.
<TABLE>
<CAPTION>
AetnaVest Policy
Table I
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 25
$408.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $100,000
DEATH BENEFIT OPTION 1
PREMIUMS
ACCUMULATED
AT DEATH BENEFIT TOTAL ACCOUNT VALUE CASH SURRENDER VALUE
5% INTEREST
YEAR PER YEAR GROSS 0.0% GROSS 6.0% GROSS 12.0% GROSS 0.0% GROSS 6.0% GROSS 12.0% GROSS 0.0% GROSS 6.0% GROSS 12.0%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 428 100000 100000 100000 182 199 216 0 0 0
2 878 100000 100000 100000 366 412 460 18 64 112
3 1351 100000 100000 100000 549 636 731 201 288 383
4 1846 100000 100000 100000 731 872 1034 383 524 686
5 2367 100000 100000 100000 910 1119 1368 562 771 1020
6 2914 100000 100000 100000 1099 1390 1750 815 1106 1465
7 3488 100000 100000 100000 1282 1670 2169 1068 1456 1954
8 4091 100000 100000 100000 1460 1960 2629 1315 1815 2484
9 4724 100000 100000 100000 1630 2258 3133 1554 2183 3058
10 5388 100000 100000 100000 1792 2563 3684 1786 2558 3678
15 9244 100000 100000 100000 2452 4189 7311 2452 4189 7311
20 14165 100000 100000 100000 2771 5894 12962 2771 5894 12962
25 20446 100000 100000 100000 2552 7466 21768 2552 7466 21768
30 28462 100000 100000 100000 1507 8553 35692 1507 8553 35692
40 51751 0 100000 116131 0 5041 95190 0 5041 95190
(AGE 65)
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those illustrated.
These investment results are illustrative only and should not be considered
a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be different
from those shown if the actual investment rates of return averaged 0%, 6%, and
12% over a period of years, but fluctuated above or below those averages for
individual Policy Years. No representations can be made that these rates of
return will definitely be achieved for any one year or sustained over a period
of time.
</TABLE>
<TABLE>
<CAPTION>
AetnaVest Policy
Table III
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICY(1)
MALE ISSUE AGE 40
$744.00 ANNUAL BASIC PREMIUM
NONSMOKER RISK
FACE AMOUNT $100,000
DEATH BENEFIT OPTION 1
ACCUMULATED
AT DEATH BENEFIT TOTAL ACCOUNT VALUE CASH SURRENDER VALUE
5% INTEREST
YEAR PER YEAR GROSS 0.0% GROSS 6.0% GROSS 12.0% GROSS 0.0% GROSS 6.0% GROSS 12.0% GROSS 0.0% GROSS 6.0% GROSS 12.0%
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 781 100000 100000 100000 455 490 526 0 0 0
2 1601 100000 100000 100000 889 987 1091 216 315 418
3 2463 100000 100000 100000 1299 1490 1698 627 818 1026
4 3367 100000 100000 100000 1688 2000 2353 1016 1327 1681
5 4317 100000 100000 100000 2054 2514 3059 1381 1842 2387
6 5314 100000 100000 100000 2396 3034 3822 1847 2485 3272
7 6361 100000 100000 100000 2709 3553 4640 2294 3138 4225
8 7460 100000 100000 100000 2990 4068 5517 2710 3788 5237
9 8614 100000 100000 100000 3240 4580 6461 3094 4434 6315
10 9826 100000 100000 100000 3456 5086 7476 3445 5074 7465
15 16857 100000 100000 100000 3954 7419 13855 3954 7419 13855
20 25831 100000 100000 100000 2783 8598 22774 2783 8598 22774
25 37284 0 100000 100000 0 7597 35808 0 7597 35808
30 51902 0 100000 100000 0 2520 56263 0 2520 56263
25 37284 0 100000 100000 0 7597 35808 0 7597 35808
(AGE 65)
(1) Assumes no Policy loan has been made. Current cost of insurance rates
assumed. Current mortality and expense risk charges, administrative
charges, and premium load assumed.
If premiums are paid more frequently than annually, the Death Benefits, Total
Account Values, and Cash Surrender Values would be less than those illustrated.
These investment results are illustrative only and should not be considered
a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors including the Policy Owner's allocations, and the Fund's rates of
return. The Total Account Value and Cash Value for a Policy would be different
from those shown if the actual investment rates of return averaged 0%, 6%, and
12% over a period of years, but fluctuated above or below those averages for
individual Policy Years. No representations can be made that these rates of
return will definitely be achieved for any one year or sustained over a period
of time.
</TABLE>
4. The financial statements of the Company and Variable Life Account B are
supplemented by unaudited financial statements of the Company and Variable Life
Account B as of March 31, 1997 included herein.
<PAGE>
VARIABLE LIFE ACCOUNT B
FINANCIAL STATEMENTS
Index
<TABLE>
<S> <C>
Statement of Assets and Liabilities as of March 31, 1997 (unaudited) ............... S-2
Statements of Operations and Changes in Net Assets for the three months
ended March 31, 1997 and March 31, 1996 (unaudited) ................................. S-4
Condensed Financial Information for the three months ended March 31, 1997 (unaudited) S-5
Notes to Financial Statements (unaudited) -- March 31, 1997 .......................... S-8
</TABLE>
S-1
<PAGE>
Variable Life Account B
Statement of Assets and Liabilities--March 31, 1997 (Unaudited)
<TABLE>
<S> <C>
ASSETS:
Investments, at net asset value: (Note 1)
Aetna Variable Fund; 2,960,415 shares (cost $89,278,680) ........................ $ 97,909,299
Aetna Income Shares; 1,045,713 shares (cost $13,363,458) ........................ 13,165,731
Aetna Variable Encore Fund; 1,227,381 shares (cost $15,807,543) .................. 15,746,491
Aetna Investment Advisers Fund, Inc.; 1,091,726 shares (cost $15,188,940) ......... 16,429,385
Aetna Ascent Variable Portfolio; 68,622 shares (cost $854,021) .................. 863,923
Aetna Crossroads Variable Portfolio; 16,359 shares (cost $197,046) ............... 196,092
Aetna Legacy Variable Portfolio; 4,996 shares (cost $56,579) ..................... 56,152
Alger American Small Capitalization Portfolio; 345,556 shares (cost $14,099,553) 12,460,754
American Century VP Capital Appreciation Fund; 652,426 shares (cost $6,893,822) ... 5,558,671
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio; 818,103 shares (cost $15,998,533) ..................... 15,683,029
Growth Portfolio; 187,282 shares (cost $5,537,815) .............................. 5,489,224
Overseas Portfolio; 32,503 shares (cost $569,345) .............................. 577,577
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio; 97,944 shares (cost $1,506,123) ........................ 1,461,329
Contrafund Portfolio; 527,095 shares (cost $8,030,087) ........................... 8,328,106
Janus Aspen Series:
Aggressive Growth Portfolio; 595,943 shares (cost $10,670,058) .................. 9,541,046
Balanced Portfolio; 287,055 shares (cost $4,047,436) ........................... 4,320,181
Growth Portfolio; 530,993 shares (cost $7,746,679) .............................. 8,278,181
Short-Term Bond Portfolio; 390,958 shares (cost $3,872,649) ..................... 3,944,763
Worldwide Growth Portfolio; 656,748 shares (cost $12,087,431) .................. 13,561,854
Scudder Variable Life Investment Fund--
International Portfolio; 847,331 shares (cost $10,042,514) ..................... 11,193,242
-------------
NET ASSETS (cost $235,848,312) ................................................... $244,765,030
=============
Net assets represented by:
Policyholders' account values: (Notes 1 and 5)
Aetna Variable Fund:
Policyholders' account values ................................................... $ 97,909,299
Aetna Income Shares:
Policyholders' account values ................................................... 13,165,731
Aetna Variable Encore Fund:
Policyholders' account values ................................................... 15,746,491
Aetna Investment Advisers Fund, Inc.:
Policyholders' account values ................................................... 16,429,385
Aetna Ascent Variable Portfolio:
Policyholders' account values ................................................... 863,923
Aetna Crossroads Variable Portfolio:
Policyholders' account values ................................................... 196,092
</TABLE>
S-2
<PAGE>
Variable Life Account B
Statement of Assets and Liabilities--March 31, 1997 (unaudited & continued):
<TABLE>
<S> <C>
Aetna Legacy Variable Portfolio:
Policyholders' account values .............................. $ 56,152
Alger American Small Capitalization Portfolio:
Policyholders' account values .............................. 12,460,754
American Century VP Capital Appreciation Fund:
Policyholders' account values .............................. 5,558,671
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
Policyholders' account values .............................. 15,683,029
Growth Portfolio:
Policyholders' account values .............................. 5,489,224
Overseas Portfolio:
Policyholders' account values .............................. 577,577
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
Policyholders' account values .............................. 1,461,329
Contrafund Portfolio:
Policyholders' account values .............................. 8,328,106
Janus Aspen Series:
Aggressive Growth Portfolio:
Policyholders' account values .............................. 9,541,046
Balanced Portfolio:
Policyholders' account values .............................. 4,320,181
Growth Portfolio:
Policyholders' account values .............................. 8,278,181
Short-Term Bond Portfolio:
Policyholders' account values .............................. 3,944,763
Worldwide Growth Portfolio:
Policyholders' account values .............................. 13,561,854
Scudder Variable Life Investment Fund--International Portfolio:
Policyholders' account values .............................. 11,193,242
-------------
$244,765,030
=============
</TABLE>
See Notes to Financial Statements
S-3
<PAGE>
Variable Life Account B
Statements of Operations and Changes in Net Assets
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
March 31, 1997 March 31, 1996
(Unaudited) (Unaudited)
-------------------- -------------------
INVESTMENT INCOME:
<S> <C> <C>
Income: (Notes 1, 3 and 5)
Dividends ...................................................... $ 2,905,983 $ 359,401
Expenses: (Notes 2 and 5)
Valuation Period Deductions .................................... (335,872) (216,034)
------------ ------------
Net investment income .......................................... 2,570,111 143,367
------------ ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on sales of investments: (Notes 1, 4 and 5)
Proceeds from sales ............................................. 15,319,304 3,428,998
Cost of investments sold ....................................... 14,300,603 3,005,963
------------ ------------
Net realized gain ............................................. 1,018,701 423,035
Net unrealized gain (loss) on investments: (Note 5)
Beginning of period ............................................. 14,132,669 4,391,574
End of period ................................................... 8,916,718 9,478,418
------------ ------------
Net change in unrealized gain (loss) ........................... (5,215,951) 5,086,844
------------ ------------
Net realized and unrealized gain (loss) on investments ......... (4,197,250) 5,509,879
------------ ------------
Net (decrease) increase in net assets resulting from operations (1,627,139) 5,653,246
------------ ------------
FROM UNIT TRANSACTIONS:
Variable life premium payments ................................. 32,286,413 21,128,211
Sales and administrative charges deducted by the Company ......... (1,105,628) (632,971)
Premiums allocated to the fixed account ........................ (706,230) (1,644,459)
------------ ------------
Net premiums allocated to the variable account .................. 30,474,555 18,850,781
Transfers to the Company for monthly deductions .................. (4,828,049) (3,306,575)
Redemptions by contract holders ................................. (2,187,917) (1,152,122)
Transfers on account of policy loans ........................... (187,877) (422,131)
Other ............................................................ (52,426) 43,265
------------ ------------
Net increase in net assets from unit transactions (Note 5) ...... 23,218,286 14,013,218
------------ ------------
Change in net assets ............................................. 21,591,147 19,666,464
NET ASSETS:
Beginning of period ............................................. 223,173,883 126,515,779
------------ ------------
End of period ................................................... $244,765,030 $146,182,243
============ ============
</TABLE>
See Notes to Financial Statements
S-4
<PAGE>
Variable Life Account B
Condensed Financial Information--Three Months Ended March 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
Value Increase
Per Unit (Decrease)
in Value of Reserves
Beginning End of Accumulation at End
of Period Period Unit of Period
----------- --------- -------------------- ------------
<S> <C> <C> <C> <C>
Aetna Variable Fund:
Aetna Vest ........................ $34.932 $35.579 1.85% $52,790,404
Aetna Vest II ..................... 19.507 19.868 1.85% 15,918,571
Aetna Vest Plus .................. 16.389 16.692 1.85% 24,193,440
Aetna Vest Estate Protector ...... 11.675 11.896 1.89% 343,196
Corporate Specialty Market ...... 14.805 15.080 1.85% 4,663,688
Aetna Income Shares:
Aetna Vest ........................ $21.850 $21.739 (0.51%) $ 5,779,308
Aetna Vest II ..................... 14.691 14.616 (0.51%) 964,510
Aetna Vest Plus .................. 11.764 11.704 (0.51%) 1,573,435
Aetna Vest Estate Protector ...... 10.452 10.403 (0.47%) 110,600
Corporate Specialty Market ...... 11.354 11.297 (0.51%) 4,737,878
Aetna Variable Encore Fund:
Aetna Vest ........................ $16.577 $16.743 1.00% $ 2,617,424
Aetna Vest II ..................... 12.117 12.238 1.00% 162,807
Aetna Vest Plus .................. 11.388 11.502 1.00% 5,475,885
Aetna Vest Estate Protector ...... 10.333 10.441 1.04% 391,865
Corporate Specialty Market ...... 10.895 11.004 1.00% 7,098,510
Aetna Investment Advisers Fund, Inc.:
Aetna Vest ........................ $17.547 $17.424 (0.70%) $ 1,901,583
Aetna Vest II ..................... 17.742 17.618 (0.70%) 4,157,201
Aetna Vest Plus .................. 14.880 14.775 (0.70%) 6,002,453
Aetna Vest Estate Protector ...... 11.340 11.086 (2.24%) (1) 2,571
Corporate Specialty Market ...... 12.954 12.863 (0.70%) 4,365,577
Aetna Ascent Variable Portfolio:
Aetna Vest ........................ $11.828 $11.771 (0.48%) $ 135,740
Aetna Vest II ..................... 11.828 11.771 (0.48%) 99,315
Aetna Vest Plus .................. 11.828 11.771 (0.48%) 626,288
Aetna Vest Estate Protector ...... 11.886 11.789 (0.82%) (2) 2,580
Aetna Crossroads Variable
Portfolio:
Aetna Vest ........................ $11.474 $11.453 (0.18%) $ 28,023
Aetna Vest II ..................... 11.544 11.453 (0.79%) (1) 1,917
Aetna Vest Plus .................. 11.474 11.453 (0.18%) 165,657
Aetna Vest Estate Protector ...... 11.487 11.470 (0.14%) 495
Aetna Legacy Variable Portfolio:
Aetna Vest II ..................... $11.263 $11.076 (1.66%) (2) $ 9,557
Aetna Vest Plus .................. 11.118 11.076 (0.38%) 46,595
</TABLE>
S-5
<PAGE>
Variable Life Account B
Condensed Financial Information--Three Months Ended March 31, 1997 (unaudited &
continued)
<TABLE>
<CAPTION>
Increase
Value Per Unit (Decrease)
in Value of Reserves
Beginning End of Accumulation at End
of Period Period Unit of Period
----------- --------- -------------- ------------
<S> <C> <C> <C> <C>
Alger American Small
Capitalization Portfolio:
Aetna Vest ........................ $16.051 $14.113 (12.07%) $ 1,043,585
Aetna Vest II ..................... 16.052 14.114 (12.07%) 635,959
Aetna Vest Plus .................. 16.043 14.106 (12.07%) 5,680,005
Aetna Vest Estate Protector ...... 9.982 8.780 (12.04%) 253,395
Corporate Specialty Market ...... 13.201 11.607 (12.07%) 4,847,810
American Century VP Capital
Appreciation Fund:
Aetna Vest ........................ $12.534 $10.646 (15.06%) $ 840,154
Aetna Vest II ..................... 12.590 10.694 (15.06%) 310,402
Aetna Vest Plus .................. 12.419 10.548 (15.06%) 3,515,587
Aetna Vest Estate Protector ...... 9.511 8.082 (15.03%) 2,691
Corporate Specialty Market ...... 11.358 9.647 (15.06%) 889,837
Fidelity Investments Variable
Insurance Products Fund:
Equity-Income Portfolio:
Aetna Vest ........................ $10.871 $10.968 0.90% $ 87,359
Aetna Vest II ..................... 10.871 10.968 0.90% 48,971
Aetna Vest Plus .................. 10.871 10.968 0.90% 2,014,106
Aetna Vest Estate Protector ...... 10.883 10.985 0.93% 252,126
Corporate Specialty Market ...... 12.512 12.624 0.90% 13,280,467
Growth Portfolio:
Corporate Specialty Market ...... $11.255 $10.952 (2.69%) $ 5,489,224
Overseas Portfolio:
Corporate Specialty Market ...... $11.241 $11.578 2.99% $ 577,577
Fidelity Investments Variable
Insurance Products Fund II:
Asset Manager Portfolio:
Corporate Specialty Market ...... $12.022 $11.987 (0.30%) $ 1,461,329
Contrafund Portfolio:
Aetna Vest ........................ $11.525 $11.309 (1.88%) $ 305,794
Aetna Vest II ..................... 11.525 11.309 (1.88%) 94,053
Aetna Vest Plus .................. 11.525 11.309 (1.88%) 1,620,391
Aetna Vest Estate Protector ...... 11.538 11.326 (1.84%) 158,332
Corporate Specialty Market ...... 12.396 12.164 (1.88%) 6,149,536
Janus Aspen Series:
Aggressive Growth Portfolio:
Aetna Vest ........................ $16.153 $14.143 (12.44%) $ 737,026
Aetna Vest II ..................... 16.153 14.143 (12.44%) 458,338
</TABLE>
S-6
<PAGE>
Variable Life Account B
Condensed Financial Information--Three Months Ended March 31, 1997 (unaudited &
continued):
<TABLE>
<CAPTION>
Increase
Value Per Unit (Decrease)
in Value of Reserves
Beginning End of Accumulation at End
of Period Period Unit of Period
----------- --------- ----------------- -----------
<S> <C> <C> <C> <C>
Aetna Vest Plus .................. $16.153 $14.143 (12.44%) $3,517,794
Aetna Vest Estate Protector ...... 9.797 8.581 (12.41%) 311,336
Corporate Specialty Market ...... 12.120 10.611 (12.44%) 4,516,552
Balanced Portfolio:
Aetna Vest ........................ $13.966 $14.196 1.64% $ 97,246
Aetna Vest II ..................... 14.075 14.306 1.64% 84,618
Aetna Vest Plus .................. 13.960 14.189 1.64% 2,082,733
Aetna Vest Estate Protector ...... 11.101 11.288 1.68% 35,062
Corporate Specialty Market ...... 12.242 12.443 1.64% 2,020,522
Growth Portfolio:
Aetna Vest ........................ $14.898 $14.938 0.27% $ 541,273
Aetna Vest II ..................... 14.884 14.924 0.27% 1,002,167
Aetna Vest Plus .................. 14.863 14.903 0.27% 4,160,826
Aetna Vest Estate Protector ...... 10.857 10.890 0.31% 146,512
Corporate Specialty Market ...... 12.232 12.265 0.27% 2,427,403
Short-Term Bond Portfolio:
Aetna Vest ........................ $11.289 $11.397 0.95% $ 6,924
Aetna Vest II ..................... 11.277 11.385 0.95% 1,372
Aetna Vest Plus .................. 11.247 11.354 0.95% 273,539
Aetna Vest Estate Protector ...... 10.389 10.465 0.73% (1) 1,539
Corporate Specialty Market ...... 10.468 10.568 0.95% 3,661,389
Worldwide Growth Portfolio:
Aetna Vest ........................ $16.364 $17.339 5.96% $1,547,127
Aetna Vest II ..................... 16.368 17.344 5.96% 940,957
Aetna Vest Plus .................. 16.348 17.322 5.96% 6,185,375
Aetna Vest Estate Protector ...... 11.811 12.519 6.00% 310,828
Corporate Specialty Market ...... 13.459 14.262 5.96% 4,577,567
Scudder Variable Life Investment
Fund--International Portfolio:
Aetna Vest ........................ $14.543 $14.813 1.86% $2,402,152
Aetna Vest II ..................... 14.453 14.722 1.86% 675,216
Aetna Vest Plus .................. 14.373 14.640 1.86% 5,406,958
Aetna Vest Estate Protector ...... 10.898 11.105 1.90% 99,911
Corporate Specialty Market ...... 12.043 12.267 1.86% 2,609,005
</TABLE>
Notes to Condensed Financial Information:
(1)--Reflects less than a full year of performance activity. Funds were
first received in this option during January 1997.
(2)--Reflects less than a full year of performance activity. Funds were
first received in this option during February 1997.
S-7
<PAGE>
Variable Life Account B
Notes to Financial Statements--March 31, 1997 (Unaudited):
1. Summary of Significant Accounting Policies
Variable Life Account B ("Account") is a separate account established by
Aetna Life Insurance and Annuity Company and is registered under the
Investment Company Act of 1940 as a unit investment trust. The Account is
sold exclusively for use with variable life insurance product contracts as
defined under the Internal Revenue Code of 1986, as amended.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect amounts reported therein. Although actual results
could differ from these estimates, any such differences are expected to be
immaterial to the net assets of the Account.
a. Valuation of Investments
Investments in the following Funds are stated at the closing net asset
value per share as determined by each fund on March 31, 1997:
Aetna Variable Fund Janus Aspen Series:
Aetna Income Shares [bullet] Aggressive Growth
Portfolio
Aetna Variable Encore Fund [bullet] Balanced Portfolio
Aetna Investment Advisers Fund, Inc. [bullet] Growth Portfolio
Aetna Ascent Variable Portfolio [bullet] Short-Term Bond
Portfolio
Aetna Crossroads Variable Portfolio [bullet] Worldwide Growth
Portfolio
Aetna Legacy Variable Portfolio Scudder Variable Life Investment Fund--
International Portfolio
Alger American Small Capitalization Portfolio
American Century VP Capital Appreciation Fund
Fidelity Investments Variable Insurance Products Fund:
[bullet] Equity-Income Portfolio
[bullet] Growth Portfolio
[bullet] Overseas Portfolio
Fidelity Investments Variable Insurance Products Fund II:
[bullet] Asset Manager Portfolio
[bullet] Contrafund Portfolio
b. Other
Other Investment transactions are accounted for on a trade date basis and
dividend income is recorded on the ex-dividend date. The cost of
investments sold is determined by specific identification.
c. Federal Income Taxes
The operations of the Account form a part of, and are taxed with, the total
operations of Aetna Life Insurance and Annuity Company ("Company") which is
taxed as a life insurance company under the Internal Revenue Code of 1986,
as amended.
2. Valuation Period Deductions
Deductions by the Account for mortality and expense risk charges are made
in accordance with the terms of the policies and are paid to the Company.
S-8
<PAGE>
Variable Life Account B
Notes to Financial Statements--March 31, 1997 (unaudited & continued):
3. Dividend Income
On an annual basis the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions paid
to the Account are automatically reinvested in shares of the Funds. The
Account's proportionate share of each Fund's undistributed net investment
income (distributions in excess of net investment income) and accumulated
net realized gain (loss) on investments is included in net unrealized gain
(loss) on investments in the Statements of Operations and Changes in Net
Assets.
4. Purchases and Sales of Investments
The cost of purchases and proceeds from sales of investments other than
short-term investments for the three months ended March 31, 1997 and 1996
aggregated $41,107,702 and $15,319,304 and $17,583,396 and $3,428,998,
respectively.
S-9
<PAGE>
Variable Life Account B
Notes to Financial Statements--March 31, 1997 (unaudited & continued):
5. Supplemental Information to Statements of Operations and Changes in Net
Assets--Three-Months Ended March 31, 1997
<TABLE>
<CAPTION>
Valuation Proceeds Cost of Net
Period from Invesments Realized
Dividends Deductions Sales Sold Gain (Loss)
------------ --------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Aetna Variable Fund:
PolicyHolder's account values ............... $ 0 ($ 138,689) $ 2,085,493 $ 1,533,994 $ 551,499
Aetna Income Shares:
PolicyHolders' account values ............... 0 (19,010) 862,682 883,816 (21,134)
Aetna Variable Encore Fund:
PolicyHolder's account values ............... 372,968 (15,420) 5,214,143 5,282,921 (68,778)
Aetna Investment Advisers Fund, Inc.:
PolicyHolder's account values ............... 0 (23,413) 326,908 270,907 56,001
Aetna Ascent Variable Portfolio:
PolicyHolder's account values ............... 0 (1,012) 719,965 718,546 1,419
Aetna Crossroads Variable Portfolio:
PolicyHolder's account values ............... 0 (219) 151,692 151,595 97
Aetna Legacy Variable Portfolio:
PolicyHolder's account values ............... 0 (45) 31,294 31,283 11
Alger American Small Capitalization Portfolio:
PolicyHolder's account values ............... 0 (18,952) 1,610,023 1,464,966 145,057
American Century VP Capital Appreciation Fund:
PolicyHolder's account values ............... 132,455 (9,411) 628,578 573,692 54,886
Fidelity Investments Variable Insurance Products Fund:
Equity-Income Portfolio:
PolicyHolder's account values ............... 1,485,715 (20,823) 95,203 90,944 4,259
Growth Portfolio:
PolicyHolder's account values ............... 192,233 (7,619) 105,973 100,096 5,877
Overseas Portfolio:
PolicyHolder's account values ............... 46,706 (768) 6,580 5,914 666
Fidelity Investments Variable Insurance Products Fund II:
Asset Manager Portfolio:
PolicyHolder's account values ............... 175,953 (2,076) 36,869 35,726 1,143
Contrafund Portfolio:
PolicyHolder's account values ............... 235,708 (10,954) 181,301 150,422 30,879
Janus Aspen Series:
Aggressive Growth Portfolio:
PolicyHolder's account values ............... 0 (13,717) 2,488,643 2,394,608 94,035
Balanced Portfolio:
PolicyHolder's account values ............... 0 (5,499) 141,829 115,577 26,252
Growth Portfolio:
PolicyHolder's account values ............... 0 (11,143) 130,246 96,623 33,623
Short-Term Bond Portfolio:
PolicyHolder's account values ............... 0 (5,429) 30,221 29,518 703
Worldwide Growth Portfolio:
PolicyHolder's account values ............... 0 (16,324) 128,784 88,357 40,427
Scudder Variable Life Investment Fund -
International Portfolio:
PolicyHolder's account values ............... 264,245 (15,349) 342,877 281,098 61,779
----------- ----------- ------------ ------------ ----------
Total Variable Life Account B ............... $2,905,983 ($ 335,872) $15,319,304 $14,300,603 $1,018,701
=========== =========== ============ ============ ==========
</TABLE>
S-10
<PAGE>
<TABLE>
<CAPTION>
Net Increase
Net Unrealized Net (Decrease) In
Gain (Loss) Change in Net Assets Net Assets
Beginning End Unrealized from Unit Beginning End
of Period of Period Gain (Loss) Transactions of Period of Period
- --------------- --------------- ---------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
$ 7,294,643 $ 8,630,619 $ 1,335,976 $ 3,288,887 $ 92,871,626 $ 97,909,299
(190,180) (197,727) (7,547) $ 33,635 13,179,787 13,165,731
106,394 (61,052) (167,446) $ 6,532,982 9,092,185 15,746,491
1,383,931 1,240,445 (143,486) $ 748,742 15,791,541 16,429,385
15,645 9,902 (5,743) $ 323,881 545,378 863,923
(191) (954) (763) $ 73,285 123,692 196,092
20 (427) (447) $ 42,670 13,963 56,152
172,057 (1,638,799) (1,810,856) $ 1,059,422 13,086,083 12,460,754
(146,911) (1,335,151) (1,188,240) $ 86,456 6,482,525 5,558,671
1,096,283 (315,504) (1,411,787) $ 2,315,452 13,310,213 15,683,029
294,867 (48,591) (343,458) $ 589,662 5,052,529 5,489,224
37,941 8,232 (29,709) $ 28,355 532,327 577,577
134,978 (44,794) (179,772) $ 55,895 1,410,186 1,461,329
730,883 298,019 (432,864) $ 1,593,647 6,911,690 8,328,106
249,074 (1,129,012) (1,378,086) $ 1,175,887 9,662,927 9,541,046
243,163 272,745 29,582 $ 695,501 3,574,345 4,320,181
566,478 531,502 (34,976) $ 1,116,030 7,174,647 8,278,181
26,773 72,114 45,341 $ 76,300 3,827,848 3,944,763
872,277 1,474,423 602,146 $ 3,020,469 9,915,136 13,561,854
1,244,544 1,150,728 (93,816) $ 361,128 10,615,255 11,193,242
----------- ------------ ------------ ------------ ------------- -------------
$14,132,669 $ 8,916,718 ($ 5,215,951) $23,218,286 $223,173,883 $244,765,030
=========== ============ ============ ============ ============= =============
</TABLE>
S-11
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Consolidated Financial Statements
<TABLE>
<CAPTION>
Page
<S> <C>
Consolidated Statements of Income for the three months ended March 31, 1997 and 1996
(unaudited) ............................................................................ F-2
Consolidated Balance Sheets as of March 31, 1997 (unaudited) and December 31, 1996 ...... F-3
Consolidated Statements of Changes in Shareholder's Equity for the three months ended
March 31, 1997 and 1996 (unaudited) .................................................. F-4
Consolidated Statements of Cash Flows for the three months ended March 31, 1997 and 1996
(unaudited) ........................................................................... F-5
Condensed Notes to Consolidated Financial Statements as of March 31, 1997 (unaudited) ... F-7
</TABLE>
F-1
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Statements of Income
(millions)
<TABLE>
<CAPTION>
(unaudited)
3 Months Ended
March 31,
---------------------
1997 1996
-------- ----------
<S> <C> <C>
Revenue:
Premiums $ 52.3 $34.0
Charges assessed against policyholders 109.7 92.0
Net investment income 267.8 257.6
Net realized capital gains 5.0 14.9
Other income 9.7 12.2
------- -------
Total revenue 444.5 410.7
Benefits and expenses:
Current and future benefits 272.0 236.9
Operating expenses 78.2 87.2
Amortization of deferred policy acquisition costs 19.9 17.5
------- -------
Total benefits and expenses 370.1 341.6
Income before income taxes 74.4 69.1
Income taxes 24.0 20.6
------- -------
Net income $ 50.4 $48.5
======= =======
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-2
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Balance Sheets
(millions, except share data)
<TABLE>
<CAPTION>
(unaudited)
-----------
March 31, December 31,
Assets 1997 1996
- ------ ------------ -------------
<S> <C> <C>
Investments:
Debt securities, available for sale, at fair value
(amortized cost: $12,378.5 and $12,539.1) $12,428.6 $12,905.5
Equity securities, available for sale:
Non-redeemable preferred stock (cost: $141.3 and $107.6) 152.1 119.0
Investment in affiliated mutual funds (cost: $64.2 and $77.3) 67.9 81.1
Common stock (cost: $0.0 and $0.0) 0.1 0.3
Short-term investments 45.5 34.8
Mortgage loans 12.9 13.0
Policy loans 408.4 399.3
---------- ----------
Total investments 13,115.5 13,553.0
Cash and cash equivalents 758.9 459.1
Accrued investment income 185.3 159.0
Premiums due and other receivables 32.6 26.6
Deferred policy acquisition costs 1,560.1 1,515.3
Reinsurance loan to affiliate 593.7 628.3
Other assets 32.6 33.7
Separate Accounts assets 16,460.1 15,318.3
---------- ----------
Total assets $32,738.8 $31,693.3
========== ==========
Liabilities and Shareholder's Equity
- -------------------------------------
Liabilities:
Future policy benefits $ 3,613.3 $ 3,617.0
Unpaid claims and claim expenses 37.4 28.9
Policyholders' funds left with the Company 10,529.2 10,663.7
---------- ----------
Total insurance reserve liabilities 14,179.9 14,309.6
Other liabilities 392.8 354.7
Income taxes:
Current 29.1 20.7
Deferred 62.1 80.5
Separate Accounts liabilities 16,460.1 15,318.3
---------- ----------
Total liabilities 31,124.0 30,083.8
---------- ----------
Shareholder's equity:
Common stock, par value $50 (100,000 shares authorized; 55,000
shares issued and outstanding) 2.8 2.8
Paid-in capital 418.0 418.0
Net unrealized capital gains 13.6 60.5
Retained earnings 1,180.4 1,128.2
---------- ----------
Total shareholder's equity 1,614.8 1,609.5
---------- ----------
Total liabilities and shareholder's equity $32,738.8 $31,693.3
========== ==========
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-3
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Statements of Changes in Shareholder's Equity
(millions)
<TABLE>
<CAPTION>
(unaudited)
-----------
3 Months Ended March 31,
-----------------------------
1997 1996
------------- -------------
<S> <C> <C>
Shareholder's equity, beginning of year $ 1,609.5 $1,583.0
Net change in unrealized capital gains (46.9) (75.9)
Net income 50.4 48.5
Other changes 1.8 -
--------- --------
Shareholder's equity, end of period $ 1,614.8 $1,555.6
========= ========
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-4
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Statements of Cash Flows
(millions)
<TABLE>
<CAPTION>
(unaudited)
-----------
3 Months Ended March 31,
------------------------------
1997 1996
------------ ---------------
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $ 50.4 $ 48.5
Adjustments to reconcile net income to net cash
provided by (used for) operating activities:
Increase in accrued investment income (26.3) (10.9)
(Increase) decrease in premiums due and other receivables (3.2) 0.5
Increase in policy loans (9.1) (6.0)
Increase in deferred policy acquisition costs (44.8) (34.3)
Decrease in reinsurance loan to affiliate 34.6 9.5
Net increase in universal life account balances 63.6 53.0
Decrease in other insurance reserve liabilities (22.0) (52.4)
Net decrease in other liabilities and other assets (4.9) (85.3)
Increase in income taxes 18.4 11.8
Net accretion of discount on investments (16.9) (16.9)
Net realized capital gains (5.0) (14.9)
---------- ---------
Net cash provided by (used for) operating activities 34.8 (97.4)
---------- ---------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale 1,380.4 1,634.8
Equity securities 14.8 48.7
Mortgage loans 0.1 --
Investment maturities and collections of:
Debt securities available for sale 227.4 255.4
Short-term investments 10.4 10.0
Cost of investment purchases in:
Debt securities available for sale (1,376.5) 1,918.0)
Equity securities (33.8) (26.1)
Short-term investments (21.1) (19.5)
---------- ---------
Net cash provided by (used for) investing activities 201.7 (14.7)
---------- ---------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-5
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Consolidated Statements of Cash Flows (Continued)
(millions)
<TABLE>
<CAPTION>
(unaudited)
-----------
3 Months Ended March 31,
------------------------------
1997 1996
------------ ---------------
<S> <C> <C>
Cash Flows from Financing Activities:
Deposits and interest credited for investment contracts 390.2 429.9
Withdrawals of investment contracts (326.9) (332.0)
------- -------
Net cash provided by financing activities 63.3 97.9
------- -------
Net increase (decrease) in cash and cash equivalents 299.8 (14.2)
Cash and cash equivalents, beginning of period 459.1 568.8
------- -------
Cash and cash equivalents, end of period $ 758.9 $ 554.6
======= =======
Supplemental cash flow information:
Income taxes paid, net $ 9.4 $ 12.0
======= =======
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-6
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Condensed Notes to Consolidated Financial Statements
(unaudited)
1. Basis of Presentation
The consolidated financial statements include Aetna Life Insurance and Annuity
Company and its wholly owned subsidiaries, Aetna Insurance Company of America
and Aetna Private Capital, Inc. (collectively, the "Company"). Aetna Life
Insurance and Annuity Company is a wholly owned subsidiary of Aetna Retirement
Holdings, Inc. ("HOLDCO"). HOLDCO is a wholly owned subsidiary of Aetna
Retirement Services, Inc., whose ultimate parent is Aetna Inc. ("Aetna").
These consolidated financial statements have been prepared in accordance with
generally accepted accounting principles and are unaudited. Certain
reclassifications have been made to 1996 financial information to conform to
the 1997 presentation. These interim statements necessarily rely heavily on
estimates, including assumptions as to annualized tax rates. In the opinion of
management, all adjustments necessary for a fair statement of results for the
interim periods have been made. All such adjustments are of a normal, recurring
nature. The accompanying condensed consolidated financial statements should be
read in conjunction with the consolidated financial statements and related
notes as presented in the Company's 1996 Annual Report on Form 10-K. Certain
financial information that is normally included in annual financial statements
prepared in accordance with generally accepted accounting principles, but that
is not required for interim reporting purposes, has been condensed or omitted.
2. Future Application of Accounting Standards
Financial Accounting Standard ("FAS") No. 125, Accounting for Transfers and
Servicing of Financial Assets and Extinguishments of Liabilities, was issued in
June 1996 and provides accounting and reporting standards for transfers of
financial assets and extinguishments of liabilities.
FAS No. 125 is effective for 1997 financial statements; however, certain
provisions relating to accounting for repurchase agreements and securities
lending are not effective until January 1, 1998. Provisions effective in 1997
did not have a material effect on the Company's financial position or results
of operations. The Company does not expect adoption of this statement for
provisions effective in 1998 to have a material effect on its financial
position or results of operations.
3. Financial Instruments
The Company engages in hedging activities to manage interest rate and price
risks. Such hedging activities have principally consisted of using off-balance
sheet instruments such as futures and forward contracts and interest rate swap
agreements. There were no such contracts or agreements open as of March 31,
1997.
4. Severance and Facilities Charges
In the second quarter of 1996, the Company was allocated severance and
facilities reserves from Aetna to reflect actions taken or to be taken to
reduce the level of corporate expenses and other costs previously absorbed by
Aetna's property-casualty operations.
F-7
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Retirement Holdings, Inc.)
Condensed Notes to Consolidated Financial Statements (Continued)
(unaudited)
4. Severance and Facilities Charges (Continued)
In the third quarter of 1996, the Company established severance and facilities
reserves in the Financial Services and Individual Life Insurance segments to
reflect actions taken or to be taken in order to make its businesses more
competitive.
Activity for the three months ended March 31, 1997 within the severance and
facilities reserves (pretax, in millions) and positions eliminated related to
such actions were as follows:
<TABLE>
<CAPTION>
Reserve Positions
---------- ----------
<S> <C> <C>
Balance at December 31, 1996 ...... $ 47.9 524
Actions taken (1) .................. (10.9) (88)
-------- -----
Balance at March 31, 1997 ......... $ 37.0 436
======== =====
</TABLE>
(1) Includes $6.3 million of the Company's severance-related actions and $3.9
million of corporate allocation-
related actions.
The Company's severance actions are expected to be substantially completed by
March 31, 1998. The corporate allocation actions and vacating of certain leased
office space are expected to be substantially completed in 1997.
5. Related Party Transactions
Effective December 31, 1988, the Company entered into a reinsurance agreement
with Aetna Life Insurance Company ("Aetna Life") in which substantially all of
the non-participating individual life and annuity business written by Aetna
Life prior to 1981 was assumed by the Company. Effective January 1, 1997, this
agreement has been amended to transition (based on underlying investment
rollover in Aetna Life) from a modified coinsurance to a coinsurance
arrangement. As a result of this change, reserves will be ceded to the Company
from Aetna Life as investment rollover occurs and the loan previously
established will be reduced.
6. Litigation
The Company is involved in numerous lawsuits arising, for the most part, in the
ordinary course of its business operations. While the ultimate outcome of
litigation against the Company cannot be determined at this time, after
consideration of the defenses available to the Company and any related reserves
established, it is not expected to result in liability for amounts material to
the financial condition of the Company, although it may adversely affect
results of operations in future periods.
F-8
<PAGE>
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities Exchange
Act of 1934, the undersigned registrant hereby undertakes to file with the
Securities and Exchange Commission such supplementary and periodic information,
documents and reports as may be prescribed by any rule or regulation of the
Commission heretofore or hereafter duly adopted pursuant to authority conferred
in that section.
UNDERTAKING PURSUANT TO RULE 484
Insofar as indemnification for liability arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question of whether such indemnification by it is against
public policy as expressed in the Act and will be governed by the final
adjudication of such issue.
REPRESENTATIONS PURSUANT TO SECTION 26(e)(2)(A) OF
THE INVESTMENT COMPANY ACT OF 1940
REGISTRANT MAKES THE FOLLOWING REPRESENTATION:
Aetna Life Insurance and Annuity Company represents that the fees and charges
deducted under the policies covered by this registration statement, in the
aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by the insurance company.
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 8
TO REGISTRATION STATEMENT
This Post-Effective Amendment No. 8 to Registration Statement No. 33-76004
comprises the following papers and documents:
o The facing sheet.
<PAGE>
o One supplement to the AetnaVest and AetnaVest II Flexible Premium Variable
Life prospectus consisting of 2 pages
o The undertaking to file reports
o The undertaking pursuant to Rule 484
o Representations pursuant to Section 26(e)(2)(A) of the Investment Company
Act of 1940
o The signatures
o Written consents of the following persons:
A. Consent of Counsel (included as part of Exhibit 2 below)
B. Actuarial Consent (included as part of Exhibit 6 below)
C. Consent of Independent Auditors (included as Exhibit 7 below)
The following Exhibits:
1. Exhibits required by paragraph A of instructions to exhibits for
Form N-8B-2:
(1) Resolution establishing Variable Life Account B(1)
(2) Not Applicable
(3)(i) Master General Agent Agreement(1)
(3)(ii) Life Insurance General Agent Agreement(1)
(3)(iii) Broker Agreement(1)
(3)(iv) Life Insurance Broker-Dealer Agreement(1)
(4) Not Applicable
(5)(i) Form of AetnaVest I Policy (Policy No. 38899)(2)
(5)(ii) Form of AetnaVest II Policy, including Term Rider
(Policy No. 38899-90)(2)
(5)(iii) Amendment Rider (70194-94) to Form of Aetna Vest I Policy
(Policy No. 38899)(2)
(5)(iv) Amendment Rider (70195-94) to Form of Aetna Vest II Policy
(Policy No. 38899-90)(2)
(5)(v) Endorsement 70279-97 to Policy No. 38899
(6)(i) Certificate of Incorporation and By-laws of Aetna Life
Insurance and Annuity Company(3)
(6)(ii) Amendment of Certificate
of Incorporation of Aetna Life Insurance and Annuity
Company(4)
(7) Not Applicable
(8)(i) Fund Participation Agreement (Amended and Restated)
between Aetna Life Insurance and Annuity Company, Alger
American Fund and Fred Alger Management, Inc. dated as of
March 31, 1995(5)
(8)(ii) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May 1,
1995, January 1, 1996 and March 1, 1996(4)
(8)(iii) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Variable Insurance Products Fund II
and Fidelity Distributors
<PAGE>
Corporation dated February 1, 1994 and amended on December
15, 1994, February 1, 1995, May 1, 1995, January 1, 1996
and March 1,1996(4)
(8)(iv) Service Agreement between Aetna Life Insurance and
Annuity Company and Fidelity Investments Institutional
Operations Company dated as of November 1, 1995(6)
(8)(v) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company and Janus Aspen Series dated April 19,
1994 and amended March 1, 1996(5)
(8)(vi) Fund Participation Agreement between Aetna Life Insurance
and Annuity Company and Scudder Variable Life Investment
Fund dated April 27, 1992 and amended February 19, 1993
and August 13, 1993(5)
(8)(vii) Amendment dated as of February 20, 1996 to Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company and Scudder Variable Life Investment Fund
dated April 27, 1992 as amended February 19, 1993 and
August 13, 1993(6)
(8)(viii)Fund Participation Agreement between Aetna Life Insurance
and Annuity Company, Investors Research Corporation and
TCI Portfolios, Inc. dated July 29, 1992 and amended
December 22, 1992 and June 1, 1994(5)
(9) Not Applicable
(10)(i) Form of Application (70059)for AetnaVest I Policy(7)
(10)(ii) Form of Application (38900-A) for AetnaVest II Policy(8)
2. Opinion and Consent of Counsel
3. Not Applicable
4. Not Applicable
5. See item (27) below
6. Actuarial Opinion and Consent (9)
7. Consent of Independent Auditors
8. Copy of Power of Attorney(10)
(27) Financial Data Schedule
1. Incorporated by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form S-6 (File No. 33-76004), as filed electronically on
February 16, 1996.
2. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form S-6 (File No. 33-76004), as filed electronically on April
22, 1997.
3. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-1 (File No. 33-60477), as filed electronically on April
15, 1996.
4. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed
electronically on February 11, 1997.
5. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on April
12, 1996.
<PAGE>
6. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-88720), as filed electronically on June
28, 1996.
7. Incorporated by reference to Post-Effective Amendment No. 25 to
Registration Statement on Form S-6 (File No. 33-2339), as filed on April
25, 1995.
8. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-6 (File No. 33-76004), as filed on April 25, 1995.
9. Incorporated by reference to Post-Effective Amendment No. 7 to Registration
Statement on Form S-6 (File No. 33-76004), as filed electronically on May
15, 1997.
10. The Power of Attorney is attached as an exhibit to this filing. In
addition, a certified copy of the resolution adopted by the Depositor's
Board of Directors authorizing filings pursuant to a power of attorney as
required by Rule 478 under the Securities Act of 1933 is incorporated by
reference to Post-Effective Amendment No. 5 to Registration Statement on
Form N-4 (File No. 33-75986), as filed electronically on April 12, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 the Registrant,
Variable Life Account B of Aetna Life Insurance and Annuity Company, certifies
that it meets the requirements of Securities Act Rule 485(b) for effectiveness
of this Post-Effective Amendment No. 8 to its Registration Statement on Form S-6
(File No. 33-76004) and has duly caused this Post-Effective Amendment No. 8 to
its Registration Statement on Form S-6 (File No. 33-76004) to be signed on its
behalf by the undersigned, thereunto duly authorized, and the seal of the
Depositor to be hereunto affixed and attested, all in the City of Hartford, and
State of Connecticut, on this 14th day of July, 1997.
VARIABLE LIFE ACCOUNT B OF
AETNA LIFE INSURANCE AND
ANNUITY COMPANY
(Registrant)
(SEAL)
ATTEST: /s/ Kirk P. Wickman
-------------------
Kirk P. Wickman
Secretary
By: AETNA LIFE INSURANCE AND
ANNUITY COMPANY
(Depositor)
By: Daniel P. Kearney*
---------------------------
Daniel P. Kearney
Principal Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective
Amendment No. 8 to the Registration Statement No. 33-76004 has been signed below
by the following persons in the capacities indicated and on the dates indicated.
Signature Title Date
Daniel P. Kearney* Director and President )
- ---------------------
Daniel P. Kearney (Principal Executive Officer) )
)
Christopher J. Burns* Director ) July 14,
- ---------------------
Christopher J. Burns ) 1997
)
Timothy A. Holt* Director )
- ---------------------
Timothy A. Holt )
<PAGE>
John Y. Kim* Director )
- ---------------------
John Y. Kim )
)
Shaun P. Mathews* Director )
- ---------------------
Shaun P. Mathews )
)
Glen Salow* Director )
- ---------------------
Glen Salow )
)
Creed R. Terry* Director )
- ---------------------
Creed R. Terry )
)
Deborah Koltenuk* Vice President and Treasurer, )
- --------------------- Corporate Controller
Deborah Koltenuk )
By: /s/ Julie E. Rockmore
---------------------------
*Julie E. Rockmore
Attorney-in-Fact
<PAGE>
VARIABLE LIFE ACCOUNT B
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
- ----------- ------- ----
<S> <C> <C>
99-1.1 Resolution of the Board of Directors of Aetna Life Insurance and Annuity *
Company establishing Variable Life Account B
99-1.3(i) Master General Agent Agreement *
99-1.3(ii) Life Insurance General Agent Agreement *
99-1.3(iii) Broker-Dealer Agreement *
99-1.3(iv) Life Insurance Broker-Dealer Agreement *
99-1.5(i) Form of AetnaVest I Policy (Policy No. 38899) *
99-1.5(ii) Form of AetnaVest II Policy, including Term Rider (Policy No. 38899-90) *
99-1.5(iii) Amendment Rider (70194-94) to Form of AetnaVest I Policy *
(Policy No. 38899)
99-1.5(iv) Amendment Rider (70195-94) to Form of AetnaVest II Policy (Policy No. *
38899-90)
99-1.5(v) Endorsement 70279-97 to Policy No. 38899
------------------
99-1.6(i) Certificate of Incorporation and By-laws of Aetna Life Insurance and Annuity *
Company
99-1.6(ii) Amendment of Certificate of Incorporation of Aetna Life Insurance and Annuity *
Company
99-1.8(i) Fund Participation Agreement (Amended and Restated) between Aetna Life Insurance *
and Annuity Company, Alger American Fund and Fred Alger Management, Inc. dated as
of March 31, 1995
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
- ----------- ------- ----
99-1.8(ii) Fund Participation Agreement between Aetna Life Insurance *
and Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1, 1996
99-1.8(iii) Fund Participation Agreement between Aetna Life Insurance *
and Annuity Company, Variable Insurance Products Fund II
and Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May 1,
1995, January 1, 1996 and March 1,1996
99-1.8(iv) Service Agreement between Aetna Life Insurance and Annuity Company and *
Fidelity Investments Institutional Operations Company dated as of November 1,
1995
99-1.8(v) Fund Participation Agreement between Aetna Life Insurance and Annuity Company *
and Janus Aspen Series dated April 19, 1994 and amended March 1, 1996
99-1.8(vi) Fund Participation Agreement between Aetna Life Insurance and Annuity Company *
and Scudder Variable Life Investment Fund dated April 27, 1992 and amended
February 19, 1993 and August 13, 1993
99-1.8(vii) Amendment dated as of February 20, 1996 to Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company and Scudder Variable Life Investment Fund
dated April 27, 1992 as amended February 19, 1993 and August
13, 1993
99-1.8(viii) Fund Participation Agreement between Aetna Life Insurance and Annuity Company, *
Investors Research Corporation and TCI Portfolios, Inc. dated July 29, 1992
and amended December 22, 1992 and June 1, 1994
99-1.10(i) Form of Application for AetnaVest I Policy *
99-1.10(ii) Form of Application for AetnaVest II Policy *
99-2 Opinion and Consent of Counsel
------------------
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
- ----------- ------- ----
99-6 Actuarial Opinion and Consent *
99-7 Consent of Independent Auditors
------------------
99-8 Copy of Power of Attorney
------------------
27 Financial Data Schedule
------------------
*Incorporated by reference
</TABLE>
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This policy is amended as follows:
1. Aetna may, from time to time, make one or more additional mutual funds
("Funds") available as investment options under this policy, or stop making
available one or more Funds previously offered as investment options under
this policy. In the event that occurs, all references to "Fund(s)" in this
policy shall be read in such a way as to be consistent with such addition
or deletion of available Funds, unless specifically indicated otherwise.
2. Aetna will notify the Owner when it changes the Funds available under this
policy and will provide the Owner with information regarding each Fund it
adds.
3. Notwithstanding any other provision of this policy, any mutual fund which
is first made available under this policy on or after the effective date of
this endorsement, is made available subject to the following terms and
conditions:
As to any such Fund, the net return rate shall be determined as follows:
The net return rate is equal to:
(i) The value of the shares of the Fund held by the Separate Account at
the end of the Valuation Period; minus
(ii) The value of the shares of the Fund held by the Separate Account at
the start of the Valuation Period; plus or minus
(iii) Taxes (or reserves for taxes) on the Separate Account (if any);
divided by
(iv) The total value of the Fund Record Units at the start of the
Valuation Period; minus
(v) A daily charge at an annual rate not to exceed .90% for mortality and
expense risks and profit and a daily charge at an annual rate of .30%
for ongoing administrative expenses.
A net return rate may be more or less than 0%. The value of a share of the Fund
is equal to the net assets of the Fund divided by the number of outstanding
shares of the Fund.
Endorsed and made a part of this policy on the date, after any required state
approval, as of which it is issued by Aetna.
/s/ Dan Kearney
President
Aetna Life Insurance and Annuity Company
July 14, 1997 Julie E. Rockmore
Counsel
Law Division, RE4A
Investments & Financial Services
(860) 273-4686
Fax: (860) 273-8340
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Attention: Filing Desk
Re: Aetna Life Insurance and Annuity Company and its Variable Life Account B
Post-Effective Amendment No. 8 to Registration Statement on Form S-6
Prospectus Title: AetnaVest & AetnaVest II
File Nos.: 33-76004 and 811-4536
Dear Sir or Madam:
The undersigned has acted as counsel to Aetna Life Insurance and Annuity
Company, a Connecticut life insurance company (the "Company"), in connection
with the registration on Form S-6 of interests in Variable Life Account B of the
Company. It is my understanding that the Company, as depositor, has registered
an indefinite amount of securities (the "Securities") under the Securities Act
of 1933 (the "Securities Act") as provided in Rule 24f-2 under the Investment
Company Act of 1940 (the "Investment Company Act").
In connection with such representation, I have reviewed the S-6 Registration
Statement, as amended to date, and this Post-Effective Amendment No. 8. I have
also examined originals or copies, certified or otherwise identified to my
satisfaction, of such documents, trust records and other instruments I have
deemed necessary or appropriate for the purpose of rendering this opinion. For
purposes of such examination, I have assumed the genuineness of all signatures
on original documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, and do not purport to be an expert
on the laws of any other state. My opinion herein as to any other law is based
upon a limited inquiry thereof which I have deemed appropriate under the
circumstances.
<PAGE>
Based upon the foregoing, I am of the opinion that the Securities have been
legally authorized and, assuming that the Securities have been issued and sold
in accordance with the provisions of the prospectus being registered, will be
legally issued.
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
Julie E. Rockmore
Consent of Independent Auditors
The Board of Directors of Aetna Life Insurance and Annuity Company
and Policyholders of Aetna Variable Life Account B:
We consent to the incorporation by reference in the registration statement
(No. 33-76004) on Form S-6 our reports dated February 4, 1997 and
February 14, 1997.
KPMG Peat Marwick LLP
Hartford, Connecticut
July 14, 1997
Power of Attorney
I, Daniel P. Kearney, Director and President (principal executive officer) of
Aetna Life Insurance and Annuity Company, do hereby constitute and appoint Kirk
P. Wickman and Julie E. Rockmore and each of them individually, my true and
lawful attorneys, with full power to them and each of them to sign for me, and
in my name and in the capacity indicated below, any and all post-effective
amendments to the Registration Statements listed below filed with the Securities
and Exchange Commission by Aetna Life Insurance and Annuity Company under the
Securities Act of 1933 and the Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Daniel P. Kearney
- -------------------------------------------------------
Daniel P. Kearney
Director and President (principal executive officer)
<PAGE>
Power of Attorney
I, Deborah Koltenuk, Vice President and Treasurer, Corporate Controller of Aetna
Life Insurance and Annuity Company, do hereby constitute and appoint Kirk P.
Wickman, and Julie E. Rockmore and each of them individually, my true and lawful
attorneys, with full power to them and each of them to sign for me, and in my
name and in the capacity indicated below, any and all amendments to the
Registration Statements listed below filed with the Securities and Exchange
Commission by Aetna Life Insurance and Annuity Company under the Securities Act
of 1933 and the Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Deborah Koltenuk
- ------------------------------------------------------
Deborah Koltenuk
Vice President and Treasurer, Corporate Controller
<PAGE>
POWER OF ATTORNEY
I, Timothy A. Holt, Director and Chief Financial Officer, Aetna Life Insurance
and Annuity Company, do hereby constitute and appoint Kirk P. Wickman and Julie
E. Rockmore and each of them individually, my true and lawful attorneys, with
full power to them and each of them to sign for me, and in my name and in the
capacity indicated below, any and all amendments to the Registration Statements
listed below filed with the Securities and Exchange Commission by Aetna Life
Insurance and Annuity Company under the Securities Act of 1933 and the
Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Timothy A. Holt
- -----------------------------------------
Timothy A. Holt
Director and Chief Financial Officer
<PAGE>
POWER OF ATTORNEY
I, Christopher J. Burns, Director, Aetna Life Insurance and Annuity Company, do
hereby constitute and appoint Kirk P. Wickman and Julie E. Rockmore and each of
them individually, my true and lawful attorneys, with full power to them and
each of them to sign for me, and in my name and in the capacity indicated below,
any and all amendments to the Registration Statements listed below filed with
the Securities and Exchange Commission by Aetna Life Insurance and Annuity
Company under the Securities Act of 1933 and the Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Christopher J. Burns
- -----------------------------------
Christopher J. Burns
Director
<PAGE>
POWER OF ATTORNEY
I, John Y. Kim, Director, Aetna Life Insurance and Annuity Company, do hereby
constitute and appoint Kirk P. Wickman and Julie E. Rockmore and each of them
individually, my true and lawful attorneys, with full power to them and each of
them to sign for me, and in my name and in the capacity indicated below, any and
all amendments to the Registration Statements listed below filed with the
Securities and Exchange Commission by Aetna Life Insurance and Annuity Company
under the Securities Act of 1933 and the Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ John Y. Kim
- -------------------------------
John Y. Kim
Director
<PAGE>
POWER OF ATTORNEY
I, Shaun P. Mathews, Director, Aetna Life Insurance and Annuity Company, do
hereby constitute and appoint Kirk P. Wickman and Julie E. Rockmore and each of
them individually, my true and lawful attorneys, with full power to them and
each of them to sign for me, and in my name and in the capacity indicated below,
any and all amendments to the Registration Statements listed below filed with
the Securities and Exchange Commission by Aetna Life Insurance and Annuity
Company under the Securities Act of 1933 and the Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Shaun P. Mathews
- ----------------------------------
Shaun P. Mathews
Director
<PAGE>
POWER OF ATTORNEY
I, Glen Salow, Director, Aetna Life Insurance and Annuity Company, do hereby
constitute and appoint Kirk P. Wickman and Julie E. Rockmore and each of them
individually, my true and lawful attorneys, with full power to them and each of
them to sign for me, and in my name and in the capacity indicated below, any and
all amendments to the Registration Statements listed below filed with the
Securities and Exchange Commission by Aetna Life Insurance and Annuity Company
under the Securities Act of 1933 and the Investment Company Act of 1940
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Glen Salow
- ---------------------------------
Glen Salow
Director
<PAGE>
POWER OF ATTORNEY
I, Creed R. Terry, Director, Aetna Life Insurance and Annuity Company, do hereby
constitute and appoint Kirk P. Wickman and Julie E. Rockmore and each of them
individually, my true and lawful attorneys, with full power to them and each of
them to sign for me, and in my name and in the capacity indicated below, any and
all amendments to the Registration Statements listed below filed with the
Securities and Exchange Commission by Aetna Life Insurance and Annuity Company
under the Securities Act of 1933 and the Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June, 1997 my signature as
it may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ Creed R. Terry
- -----------------------------
Creed R. Terry
Director
<PAGE>
Power of Attorney
I, J. Scott Fox, Director, Aetna Life Insurance and Annuity Company, do hereby
constitute and appoint Kirk P. Wickman and Julie E. Rockmore and each of them
individually, my true and lawful attorneys, with full power to them and each of
them to sign for me, and in my name and in the capacity indicated below, any and
all amendments to the Registration Statements listed below filed with the
Securities and Exchange Commission by Aetna Life Insurance and Annuity Company
under the Securities Act of 1933 and the Investment Company Act of 1940.
Registration Statements filed under the Securities Act of 1933:
2-52448 33-75960 33-75998
2-52449 33-75962 33-75996
33-02339 33-75964 33-76000
33-34370 33-75966 33-76002
33-34583 33-75968 33-76004
33-42555 33-75970 33-76018
33-60477 33-75972 33-76024
33-61897 33-75974 33-76026
33-62473 33-75976 33-79118
33-63657 33-75978 33-79122
333-01107 33-75980 33-81216
33-63611 33-75982 33-87642
33-64277 33-75984 33-87932
33-64331 33-75986 33-88720
33-75248 33-75988 33-88722
33-75954 33-75990 33-88724
33-75956 33-75992 33-89858
33-75958 33-75994 33-91846
333-15187 333-09515 333-27337
Registration Statements filed under the Investment Company Act of 1940:
811-2512 811-2513 811-4536 811-5906
hereby ratifying and confirming on this 13th day of June 1997 my signature as it
may be signed by my said attorneys to any such registration statements,
applications and any and all amendments thereto:
/s/ J. Scott Fox
- ------------------------------
J. Scott Fox
Director
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000785986
<NAME> Aetna Variable Life Account B
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<INVESTMENTS-AT-COST> 235,848,312
<INVESTMENTS-AT-VALUE> 244,765,030
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 244,765,030
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 244,765,030
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 244,765,030
<DIVIDEND-INCOME> 2,905,983
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> (335,872)
<NET-INVESTMENT-INCOME> 2,570,111
<REALIZED-GAINS-CURRENT> 1,018,701
<APPREC-INCREASE-CURRENT> (5,215,951)
<NET-CHANGE-FROM-OPS> (1,627,139)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000785986
<NAME> Aetna Variable Life Account B
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 209,041,214
<INVESTMENTS-AT-VALUE> 223,173,883
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 223,173,883
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 223,173,883
<DIVIDEND-INCOME> 13,813,478
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 1,905,137
<NET-INVESTMENT-INCOME> 11,908,341
<REALIZED-GAINS-CURRENT> 3,222,616
<APPREC-INCREASE-CURRENT> 9,741,095
<NET-CHANGE-FROM-OPS> 24,872,052
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
