RSVP VARIABLE LIFE ACCOUNT ONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1995
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
NET ASSETS SHARES COST VALUE
Investments in mutual fund portfolio:
Money Market 82,548 $82,548 $82,548
Growth 2,486 48,438 48,421
Fixed Income 88 1,251 1,241
Government and Quality Bond 839 11,548 11,926
High Yield 1,110 10,105 9,248
Strategic Multi-Asset 9,191 109,200 108,252
Multi-Asset 4,102 49,831 53,498
Capital Appreciation 7,324 148,294 170,074
Convertible Securities 685 8,597 8,213
Foreign Securities 3,135 33,466 37,040
Natural Resources 1,329 17,674 20,101
Target '98 347 4,373 4,381
------------------------------------
Net Assets $525,325 $554,943
====================================
UNIT
UNITS VALUE VALUE
NET ASSETS APPLICABLE TO
OUTSTANDING UNITS OF CAPITAL
Account:
Money Market 5,824.154 $14.173465 $82,548
Growth 2,053.494 23.579667 48,421
Fixed Income 68.947 17.999228 1,241
Government and Quality Bond 625.426 19.068522 11,926
High Yield 532.392 17.370956 9,248
Strategic Multi-Asset 5,379.665 20.122448 108,252
Multi-Asset 2,528.003 21.162333 53,498
Capital Appreciation 5,335.578 31.875450 170,074
Convertible Securities 396.508 20.713463 8,213
Foreign Securities 2,544.163 14.558725 37,040
Natural Resources 1,169.412 17.188761 20,101
Target '98 237.588 18.440731 4,381
------------------------------------
Net assets applicable to
outstanding units of capital $554,943
====================================
See accompanying notes to financial statements.
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
NET INVESTMENT INCOME
Dividend income $12,640
Mortality and expense risk charges and administrative expense (3,131)
-------
Net investment income 9,509
-------
REALIZED AND UNREALIZED GAIN (LOSS)
Realized gain from investment transactions:
Proceeds from sales 184,455
Cost of investments sold (183,428)
-------
Net realized gain 1,027
Capital gains distribution 27,080
-------
Net realized gain from investments 28,107
-------
Change in unrealized appreciation (depreciation)
on investments:
Unrealized appreciation at end of period 29,618
Unrealized depreciation at beginning of period (24,046)
-------
Net change in unrealized appreciation 53,664
-------
Realized and unrealized gain 81,771
-------
INCREASE IN NET ASSETS FROM OPERATIONS $91,280
=======
See accompanying notes to financial statements.
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
Statement of Changes in Net Assets
Year Year
Ended Ended
December 31, 1995 December 31, 1994
OPERATIONS
Net investment income $9,509 $13,065
Net realized gain from investments 28,107 25,456
Net change in unrealized appreciation
(depreciation) 53,664 (60,992)
------------------------
Increase (decrease) in net assets
from operations 91,280 (22,471)
------------------------
POLICYHOLDER TRANSACTIONS
Purchase payments received 39,152 52,253
Withdrawals and surrenders (53,831) (28,131)
Exchange purchases 130,357 561,029
Exchange surrenders (130,394) (551,238)
------------------------
Increase (decrease) in net assets from
policyholder transactions (14,716) 33,913
------------------------
INCREASE IN NET ASSETS 76,564 11,442
NET ASSETS, beginning of period 478,379 466,937
------------------------
NET ASSETS, end of period $554,943 $478,379
=======================
See accompanying notes to financial statements.
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - ORGANIZATION AND OPERATION
RSVP Variable Life Account One (the "Account") is a separate account of Phoenix
Home Life Mutual Insurance Company ("Phoenix Home Life"). The Account is
organized as a unit investment trust registered under the Investment Company Act
of 1940, as amended. In an assumption reinsurance transaction effected February
16, 1991, the Account, and the assets therein, were transferred from Anchor
National Life Insurance Company to Phoenix Home Life which assumed all of the
liabilities, obligations and guarantees of the Account as of that date.
These financial statements include balances allocated by each policyholder to
the variable divisions of the Account and do not include policyholder balances
allocated to the general account of Phoenix Home Life. At December 31, 1995, the
general account includes $38,822 of policyholder funds.
The Account has twelve divisions which invest solely in shares of the twelve
portfolios of the Anchor Series Trust (the "Trust"), an open-end diversified
management investment company.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
a) Investment Valuation, Transactions and Related Income Recognition
Investments in shares of the Trust are valued using the net asset value
per share of the respective Portfolios of the Trust determined on a
daily basis (each business day of the New York Stock Exchange).
Investment transactions are accounted for on the trade date (date the
order to buy or sell is executed) and dividend income or capital gains
distribution from the Trust is recorded on the ex-dividend date. In
determining the net gain or loss on securities sold, the cost of the
securities is determined on the first-in-first out basis.
Exchanges between divisions requested by policyholders are recorded in
the new division upon receipt of redemption proceeds.
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)
b) Federal Income Taxes
Phoenix Home Life qualifies for federal income tax treatment granted to
life insurance companies under Subchapter L of the Internal Revenue
Code. The operations of the Account are part of the total operations of
Phoenix Home Life and are not taxed separately. The Account is not
treated as a Regulated Investment Company under the Code.
c) Expenses
Phoenix Home Life absorbs certain operating expenses of the Account
including registration fees required for distribution of its policies
under the federal securities laws and state insurance laws.
NOTE 3 - CONTRACT CHARGES
a) A mortality and expense risk charge is paid by the Account to Phoenix
Home Life. This charge is based upon the value of each division of the
Account and is currently charged daily at an annual rate of 0.60% .
b) To cover administrative expenses, Phoenix Home Life deducts $5.00 from
the cash value of a policy on each monthly processing date. This
charge, $3,575 for the year ended December 31, 1995, is designed to
cover actual administrative expenses incurred by Phoenix Home Life.
c) Phoenix Home Life deducts a charge for the monthly cost of insurance
from the policy's cash value, which provides death benefit protection
for the following policy month.
The monthly cost of insurance is:
i. The cost of insurance rate, multiplied by
ii. The net amount at risk for a policy month.
The cost of insurance varies by sex, attained age and rate class. The
net amount at risk can be simply defined as the death benefit less the
cash value.
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3 - CONTRACT CHARGES (Continued)
d) In the event that the policy is surrendered during the first ten policy
years, a surrender charge will be deducted to compensate Phoenix Home
Life for expenses incurred in connection with the promotion, sale and
distribution of the policy. The surrender charge is assessed in full in
the event of a complete surrender and proportionately in the event of a
partial surrender.
During the first two policy years, the surrender charge is subject to
certain sales load limitations imposed by the Securities and Exchange
Commission and, rather than the surrender charge for policy years 3-5,
as set forth below, will be limited to the sum of (i) 30% of all
premium payments made during the first two policy years up to one
Guideline Annual Premium (as defined under Rule 6e-3(T)(c)(8) of the
Investment Company Act of 1940), plus (ii) 10% of all premium payments
in the first two policy years in excess of one Guideline Annual
Premium, but not more than two Guideline Annual premiums plus, (iii) 9%
of all premium payments in the first two policy years in excess of two
Guideline Annual Premiums less any surrender charge previously
deducted. Thereafter, the surrender charge is the lesser of (i) 50% of
the cumulative premiums paid, or (ii) the amount specified in each
policy's table of surrender charges.
The amounts shown in each policy's table of surrender charges are
calculated at the beginning of each policy year using the following
percentages of the Target Premium (the annual premium which is required
to endow the policy at age 95 using mortality and expense assumptions
and an annual gross investment return of 8%, and excluding any
temporary flat extras). Beginning policy year six and thereafter,
percentages at interim months are determined by interpolation.
BEGINNING OF
POLICY YEAR PERCENTAGE
------------ ----------
3-6 125%
7 100
8 75
9 50
10 25
11+ 0
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3 - CONTRACT CHARGES (Continued)
An increase in the initial death benefit (the "Specified Amount") under
a policy is subject to an additional surrender charge upon a surrender
of the policy during the first ten policy years following the increase.
A decrease in the Specified Amount is also subject to a pro-rata share
of the surrender charge.
In addition, Phoenix Home Life imposes a fee on each partial surrender
in an amount equal to the lesser of $25 or 2% of the amount withdrawn
to reimburse Phoenix Home Life for administrative expenses incurred in
processing those surrenders. This fee is deducted from the amount
withdrawn and the balance is paid to the policyholder.
e) Under certain circumstances, upon surrender of a policy, Phoenix Home
Life will deduct a charge to recover certain policy issue costs in an
amount equal to $5 per $1,000 of surrendered Specified Amount not to
exceed $750. This charge is designed primarily to reimburse Phoenix
Home Life for expenses it incurs in processing policy applications,
including conducting medical examinations and determining insurability.
f) Various states and subdivisions impose a tax on premiums received by
insurance companies. These charges vary from state to state. Phoenix
Home Life deducts 2.50% of each premium payment to cover state premium
taxes.
NOTE 4 - DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code (the
"Code"), a variable life contract, other than a contract issued in connection
with certain types of employee benefit plans, will not be treated as a life
contract for federal tax purposes for any period for which the investments of
the segregated asset account on which the contract is based are not adequately
diversified. The Code provides that the "adequately diversified" requirement may
be met if the underlying investments satisfy either a statutory safe harbor test
or diversification requirements set forth in regulations issued by the Secretary
of Treasury.
The Internal Revenue Service has issued regulations under Section 817(h) of the
Code. Phoenix Home Life believes that the Account satisfies the current
requirements of the regulations and it intends that the Account will continue to
meet such requirements.
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA
<TABLE>
<CAPTION>
From Inception
For Year Ended December 31, February 16 to
1995 1994 1993 1992 December 31, 1991
------------ ------------ ------------ ------------- ----------
<S> <C> <C> <C> <C> <C>
MONEY MARKET:
Net Unit Value:
Beginning of period $13.502832 $13.081135 $12.814296 $12.469961 $11.971305
End of period 14.173465 13.502832 13.081135 12.814296 12.469961
------------ ------------ ------------ ------------- ----------
Net increase in net unit
value from operations $0.670633 $0.421697 $0.266839 $0.344335 $0.498656
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 5,824.154 2,839.094 2,672.627 2,911.451 1,679.877
============ ============ ============ ============= ==========
GROWTH:
Net Unit Value:
Beginning of period $18.784956 $19.837747 $18.510815 $17.677136 $14.167687
End of period 23.579667 18.784956 19.837747 18.510815 17.677136
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $4.794711 ($1.052791) $1.326932 $0.833679 $3.509449
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 2,053.494 5,066.451 1,872.979 5,521.195 7,629.861
============ ============ ============ ============= ==========
FIXED INCOME:
Net Unit Value:
Beginning of period $15.182949 $15.787620 $14.703844 $13.887392 $12.378460
End of period 17.999228 15.182949 15.787620 14.703844 13.887392
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $2.816279 ($0.604671) $1.083776 $0.816452 $1.508932
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 68.947 81.681 106.743 155.242 138.760
============ ============ ============ ============= ==========
GOVERNMENT AND QUALITY BOND:
Net Unit Value:
Beginning of period $16.083095 $16.688251 $15.505170 $14.597133 $12.922007
End of period 19.068522 16.083095 16.688251 15.505170 14.597133
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $2.985427 ($0.605156) $1.183081 $0.908037 $1.675126
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 625.426 770.430 934.686 1,962.602 2,206.335
============ ============ ============ ============= ==========
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
From Inception
For Year Ended December 31, February 16 to
1995 1994 1993 1992 December 31, 1991
------------ ------------ ------------ ------------- ----------
HIGH YIELD:
Net Unit Value:
Beginning of period $14.717391 $15.440855 $12.996758 $11.473227 $9.067881
End of period 17.370956 14.717391 15.440855 12.996758 11.473227
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $2.653565 ($0.723464) $2.444097 $1.523531 $2.405346
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 532.392 602.324 639.342 814.352 937.293
======= ======= ======= ======= =======
STRATEGIC MULTI-ASSET:
Net Unit Value:
Beginning of period $16.489482 $17.029956 $14.858722 $14.383597 $12.922142
End of period 20.122448 16.489482 17.029956 14.858722 14.383597
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $3.632966 ($0.540474) $2.171234 $0.475125 $1.461455
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 5,379.665 5,131.355 4,911.695 4,884.753 4,967.379
========= ========= ========= ========= =========
MULTI-ASSET:
Net Unit Value:
Beginning of period $17.035823 $17.434654 $16.343102 $15.200785 $12.990057
End of period 21.162333 17.035823 17.434654 16.343102 15.200785
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $4.126510 ($0.398831) $1.091552 $1.142317 $2.210728
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 2,528.003 2,321.993 2,149.708 2,180.269 3,313.298
========= ========= ========= ========= =========
CAPITAL APPRECIATION:
Net Unit Value:
Beginning of period $23.835567 $24.928405 $20.719304 $16.542880 $12.564504
End of period 31.875450 23.835567 24.928405 20.719304 16.542880
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $8.039883 ($1.092838) $4.209101 $4.176424 $3.978376
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 5,335.578 4,074.140 7,054.306 7,245.161 6,099.306
========= ========= ========= ========= =========
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
From Inception
For Year Ended December 31, February 16 to
1995 1994 1993 1992 December 31, 1991
------------ ------------ ------------ ------------- ----------
CONVERTIBLE SECURITIES:
Net Unit Value:
Beginning of period $17.904485 $19.933212 $16.442354 $13.766646 $11.657378
End of period 20.713463 17.904485 19.933212 16.442354 13.766646
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $2.808978 ($2.028727) $3.490858 $2.675708 $2.109268
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 396.508 566.021 442.653 840.486 736.755
======= ======= ======= ======= =======
FOREIGN SECURITIES:
Net Unit Value:
Beginning of period $13.009004 $13.498582 $10.419874 $12.109358 $13.529977
End of period 14.558725 13.009004 13.498582 10.419874 12.109358
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $1.549721 ($0.489578) $3.078708 ($1.689484) ($1.420619)
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 2,544.163 5,767.871 3,397.264 738.372 759.611
========= ========= ========= ======= =======
NATURAL RESOURCES:
Net Unit Value:
Beginning of period $14.721818 $14.640952 $10.829847 $10.635249 $10.817492
End of period 17.188761 14.721818 14.640952 10.829847 10.635249
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $2.466943 $0.080866 $3.811105 $0.194598 ($0.182243)
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 1,169.412 789.773 753.350 701.666 833.997
========= ======= ======= ======= =======
TARGET '98:
Net Unit Value:
Beginning of period $16.184859 $16.981960 $15.352606 $14.410503 $12.544636
End of period 18.440731 16.184859 16.981960 15.352606 14.410503
------------ ------------ ------------ ------------- ----------
Net increase (decrease) in net unit
value from operations $2.255872 ($0.797101) $1.629354 $0.942103 $1.865867
============ ============ ============ ============= ==========
Accumulation units outstanding:
End of period 237.588 265.694 292.976 1,410.431 1,085.015
======= ======= ======= ========= =========
</TABLE>
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 6 - POLICYHOLDER TRANSACTIONS
The increase (decrease) in net assets from changes in the number of outstanding
units was as follows for the year ended December 31, 1995:
<TABLE>
<CAPTION>
PURCHASE PAYMENTS EXCHANGE PURCHASES INCREASE (DECREASE)
AND TRANSFERS AND EXCHANGE WITHDRAWALS AND IN NET ASSETS FROM
RECEIVED SURRENDERS SURRENDERS POLICYHOLDER TRANSACTIONS
------------------------------------------------------------------------------------------------
ACCOUNT UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS
------- ----- ------- ----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 199 $2,734 4,199 $57,090 (1,413) ($19,603) 2,985 $40,221
Growth 189 3,962 (2,830) (54,897) (372) (7,708) (3,013) (58,643)
Fixed Income - - - - (13) (211) (13) (211)
Government and Quality Bond 61 1,082 - - (206) (3,635) (145) (2,553)
High Yield 27 439 (37) (561) (60) (963) (70) (1,085)
Strategic Multi-Asset 601 10,772 - - (352) (6,425) 249 4,347
Multi-Asset 75 1,404 212 3,725 (81) (1,550) 206 3,579
Capital Appreciation 367 9,906 1,127 39,233 (232) (6,722) 1,262 42,417
Convertible Securities 156 2,969 (260) (5,175) (65) (1,277) (169) (3,483)
Foreign Securities 341 4,509 (3,388) (46,329) (177) (2,342) (3,224) (44,162)
Natural Resources 75 1,199 465 6,877 (161) (2,729) 379 5,347
Target '98 10 176 - - (38) (666) (28) (490)
------------------------------------------------------------------------------------------------
2,101 $39,152 (512) ($37) (3,170) ($53,831) (1,581) ($14,716)
================================================================================================
</TABLE>
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 7 - DETAILED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995
A statement of operations by investment division follows for the year ended
December 31, 1995:
<TABLE>
<CAPTION>
Money Fixed Govt.& Quality Strategic
Market Growth Income Bond High Yield Multi-Asset Multi-Asset
------ ------ ------ -------------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $4,485 $96 $98 $912 $991 $1,805 $1,809
Mortality and expense risk charges
and administrative expense (494) (331) (7) (73) (54) (582) (291)
---------------------------------------------------------------------------------------
Net investment income (loss) 3,991 (235) 91 839 937 1,223 1,518
---------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from investment
transactions:
Proceeds from sales 24,139 62,743 218 3,613 1,495 6,220 1,769
Cost of investments sold (24,139) (64,870) (227) (3,594) (1,689) (6,227) (1,676)
---------------------------------------------------------------------------------------
Net realized gain (loss) - (2,127) (9) 19 (194) (7) 93
Capital gains distribution - 7,241 - - - 13,770 3,842
---------------------------------------------------------------------------------------
Net realized gain (loss)
from investments - 5,114 (9) 19 (194) 13,763 3,935
---------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period - (17) (10) 378 (857) (948) 3,667
Unrealized appreciation (depreciation)
at beginning of period - (7,030) (140) (852) (1,582) (5,254) (1,242)
---------------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) - 7,013 130 1,230 725 4,306 4,909
---------------------------------------------------------------------------------------
Realized and unrealized gain - 12,127 121 1,249 531 18,069 8,844
---------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $3,991 $11,892 $212 $2,088 $1,468 $19,292 $10,362
=======================================================================================
</TABLE>
<TABLE>
<CAPTION>
Capital Convertible Foreign Natural
Appreciation Securities Securities Resources Target '98 Total
------------ ----------- ---------- --------- ----------- -----
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $1,073 $514 $170 $269 $418 $12,640
Mortality and expense risk charges
and administrative expense (746) (61) (356) (110) (26) (3,131)
-----------------------------------------------------------------------
Net investment income (loss) 327 453 (186) 159 392 9,509
-----------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from investment
transactions:
Proceeds from sales 20,864 6,441 53,539 2,727 687 184,455
Cost of investments sold (20,756) (6,363) (50,862) (2,348) (677) (183,428)
-----------------------------------------------------------------------
Net realized gain (loss) 108 78 2,677 379 10 1,027
Capital gains distribution 1,481 371 - 375 - 27,080
-----------------------------------------------------------------------
Net realized gain (loss)
from investments 1,589 449 2,677 754 10 28,107
-----------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period 21,780 (384) 3,574 2,427 8 29,618
Unrealized appreciation (depreciation)
at beginning of period (6,852) (1,045) (102) 213 (160) (24,046)
-----------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) 28,632 661 3,676 2,214 168 53,664
-----------------------------------------------------------------------
Realized and unrealized gain 30,221 1,110 6,353 2,968 178 81,771
-----------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $30,548 $1,563 $6,167 $3,127 $570 $91,280
========================================================================
</TABLE>
<PAGE>
Northeast Insurance Services Telephone 860 240 2000
One Financial Plaza Facsimile 860 240 2282
Hartford, CT 06103
Price Waterhouse LLP [Price Waterhouse logo]
Report of Independent Accountants
February 26, 1996
To the Policyholders of RSVP Variable Life Account One
and the Board of Directos of
Phoenix Home Life Mutual Insurance Company
In our opionion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets present fairly, in all
material respects, the financial position of RSVP Variable Life Account One
- - Separate Account of Phoenix Home Life Mutual Insurance Company (the "Account")
at December 31, 1995, the results of its operations for the year then ended and
the changes in its net assets for the two years then ended, in conformity with
generally accepted accounting principles. These financial statements arethe
responsibility of the Account's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of investments at December 31, 1995 by
correspondence with the Funds, provide a reasonable basis for the opinion
expressed above.
/s/ Price Waterhouse LLP
Offices in Boston, Burlington, Hartford, New York, Providence
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1995
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
STATEMENT OF NET ASSETS
DECEMBER 31, 1995
NET ASSETS SHARES COST VALUE
------ ---- -----
Investments in mutual fund portfolio:
Money Market 1,597,934 $1,597,934 $1,597,934
Growth 138,788 2,708,268 2,703,364
Fixed Income 18,131 248,544 256,651
Government and Quality Bond 80,495 1,086,585 1,144,449
High Yield 60,478 505,927 503,954
Strategic Multi-Asset 115,217 1,290,369 1,357,054
Multi-Asset 239,657 2,740,203 3,125,264
Capital Appreciation 93,950 1,868,817 2,181,566
Convertible Securities 67,793 817,232 813,015
Foreign Securities 89,378 945,023 1,055,941
Natural Resources 29,714 412,489 449,300
Target '98 5,341 68,048 67,527
------------------------------
Net Assets $14,289,439 $15,256,019
==============================
UNIT
UNITS VALUE VALUE
----- ----- -----
NET ASSETS APPLICABLE TO
OUTSTANDING UNITS OF CAPITAL
Account:
Money Market 92,859.771 $17.208028 $1,597,934
Growth 77,102.759 $35.061829 2,703,364
Fixed Income 9,817.121 $26.143156 256,651
Government and Quality Bond 41,823.525 $27.363761 1,144,449
High Yield 23,297.233 $21.631502 503,954
Strategic Multi-Asset 71,910.358 $18.871464 1,357,054
Multi-Asset 150,648.340 $20.745427 3,125,264
Capital Appreciation 74,106.731 $29.438162 2,181,566
Convertible Securities 41,324.596 $19.673868 813,015
Foreign Securities 78,097.323 $13.520833 1,055,941
Natural Resources 25,100.529 $17.900007 449,300
Target '98 3,515.671 $19.207550 67,527
---------------
Net assets applicable to
outstanding units of capital $15,256,019
===============
See accompanying notes to financial statements.
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C>
NET INVESTMENT INCOME
Dividend income $483,573
Mortality and expense risk charges and administrative expense (79,156)
----------
Net investment income 404,417
----------
REALIZED AND UNREALIZED GAIN (LOSS)
Realized gain from investment transactions:
Proceeds from sales 7,910,114
Cost of investments sold (7,680,523)
----------
Net realized gain 229,591
Capital gains distribution 917,776
----------
Net realized gain from investments 1,147,367
----------
Change in unrealized appreciation on investments:
Unrealized appreciation at end of period 966,580
Unrealized depreciation at beginning of period (196,615)
----------
Net change in unrealized appreciation 1,163,195
----------
Realized and unrealized gain 2,310,562
----------
INCREASE IN NET ASSETS FROM OPERATIONS $2,714,979
==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Year
Ended Ended
December 31, 1995 December 31, 1994
----------------- -----------------
<S> <C> <C>
OPERATIONS
Net investment income $404,417 $228,568
Net realized gain from investments 1,147,367 1,555,512
Net change in unrealized appreciation (depreciation) 1,163,195 (2,456,372)
---------------------------------
Increase (decrease) in net assets
from operations 2,714,979 (672,292)
---------------------------------
POLICYHOLDER TRANSACTIONS
Purchase payments received 130,842 133,847
Withdrawals and surrenders (2,128,168) (1,575,522)
Exchange purchases 5,216,227 7,353,197
Exchange surrenders (5,680,470) (7,057,060)
---------------------------------
Decrease in net assets from
policyholder transactions (2,461,569) (1,145,538)
---------------------------------
INCREASE (DECREASE) IN NET ASSETS 253,410 (1,817,830)
NET ASSETS, beginning of period 15,002,609 16,820,439
---------------------------------
NET ASSETS, end of period $15,256,019 $15,002,609
=================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 1- ORGANIZATION AND OPERATION
ICAP Plus Variable Life Account One (the "Account") is a separate account of
Phoenix Home Life Mutual Insurance Company ("Phoenix Home Life"). The Account is
organized as a unit investment trust registered under the Investment Company Act
of 1940, as amended. In an assumption reinsurance transaction effected February
16, 1991, the Account, and the assets therein, were transferred from Anchor
National Life Insurance Company to Phoenix Home Life which assumed all of the
liabilities, obligations and guarantees of the Account as of that date.
These financial statements include balances allocated by each policyholder to
the variable divisions of the Account and do not include policyholder balances
allocated to the general account of Phoenix Home Life. At December 31, 1995, the
general account includes $2,899,156 of policyholder funds.
The Account has twelve divisions which invest solely in shares of the twelve
portfolios of the Anchor Series Trust (the "Trust"), an open-end diversified
management investment company.
NOTE 2- SIGNIFICANT ACCOUNTING POLICIES
a) Investment Valuation, Transactions and Related Income Recognition
Investments in shares of the Trust are valued using the net asset value
per share of the respective Portfolios of the Trust determined on a
daily basis (each business day of the New York Stock Exchange).
Investment transactions are accounted for on the trade date (date the
order to buy or sell is executed) and dividend income or capital gains
distribution from the Trust is recorded on the ex-dividend date. In
determining the net gain or loss on securities sold, the cost of the
securities is determined on the first-in-first-out basis.
Exchanges between divisions requested by policyholders are recorded in
the new division upon receipt of redemption proceeds.
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 2- SIGNIFICANT ACCOUNTING POLICIES (Continued)
b) Federal Income Taxes
Phoenix Home Life qualifies for federal income tax treatment granted to
life insurance companies under Subchapter L of the Internal Revenue
Code. The operations of the Account are part of the total operations of
Phoenix Home Life and are not taxed separately. The Account is not
treated as a Regulated Investment Company under the Code.
c) Expenses
Phoenix Home Life absorbs certain operating expenses of the Account
including registration fees required for distribution of its policies
under the federal securities laws and state insurance laws.
NOTE 3- CONTRACT CHARGES
a) A mortality and expense risk charge is paid by the Account to Phoenix
Home Life. This charge is based upon the value of each division of the
Account and was charged daily at an annual rate of 0.60% through
February 8, 1995. As of February 9, 1995 an annual rate of 0.25% is
currently charged.
b) An administrative expense charge is paid by the Account to Phoenix Home
Life. This charge is based upon the value of each division of the
Account and was charged daily at an annual rate of 0.55% through
February 8, 1995. As of February 9, 1995 an annual rate of 0.20% is
currently charged.
A portion of the administrative charge is attributable to premium taxes
imposed by certain state and local governments with respect to the
initial premium. When an additional premium is paid, Phoenix Home Life
deducts a charge for premium taxes equal to 2.50% of the premium.
c) Phoenix Home Life deducts a charge for the monthly cost of insurance
from the policy's cash value, which provides death benefit protection
for the following policy month.
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3- CONTRACT CHARGES (Continued)
The monthly cost of insurance is the cost of insurance rate, multiplied
by the net amount at risk for a policy month. The cost of insurance
varies by sex, attained age and rate class. The net amount at risk may
be simply defined as the death benefit less the cash value.
d) In the event that the policy is surrendered during the first eight
policy years, a surrender charge will be deducted. The surrender charge
reimburses Phoenix Home Life for expenses incurred in connection with
the promotion, sale and distribution of the policy. The surrender charge
will be assessed as follows:
PERCENTAGE OF
POLICY YEAR INITIAL PREMIUM
----------- ---------------
1 8%
2 8
3 7
4 7
5 6
6 5
7 4
8 3
9+ 0
No surrender charge will be imposed on death benefits or on additional
premium payments, unless the additional premium increases the death
benefit, in which event it may be subject to the surrender charge.
e) If a policy is surrendered within the first eight policy years, Phoenix
Home Life will deduct any portion of the premium tax and policy issue
costs that it did not recover through the administration charge. The
amounts assessed will be as follows:
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3- CONTRACT CHARGES (Continued)
PERCENTAGE OF
POLICY YEAR INITIAL PREMIUM
----------- ---------------
1 2.82%
2 2.46
3 2.08
4 1.69
5 1.29
6 0.88
7 0.47
8 0.04
NOTE 4- DIVERSIFICATION REQUIREMENTS
Under the provisions of Section 817(h) of the Internal Revenue Code (the
"Code"), a variable life contract, other than a contract issued in connection
with certain types of employee benefit plans, will not be treated as a life
contract for federal tax purposes for any period for which the investments of
the segregated asset account on which the contract is based are not adequately
diversified. The Code provides that the "adequately diversified" requirement may
be met if the underlying investments satisfy either a statutory safe harbor test
or diversification requirements set forth in regulations issued by the Secretary
of Treasury.
The Internal Revenue Service has issued regulations under Section 817(h) of the
Code. Phoenix Home Life believes that the Account satisfies the current
requirements of the regulations and it intends that the Account will continue to
meet such requirements.
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA
<TABLE>
<CAPTION>
From Inception
For Year Ended December 31, February 16 to
1995 1994 1993 1992 December 31, 1991
---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C>
MONEY MARKET:
Net Unit Value:
- ---------------
Beginning of period $16.381520 $15.957504 $15.718318 $15.380231 $14.834110
End of period 17.208028 16.381520 15.957504 15.718318 15.380231
---------- ----------- ---------- ----------- -----------
Net increase in net unit
value from operations $0.826508 $0.424016 $0.239186 $0.338087 $0.546121
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 92,859.771 151,272.799 91,265.448 116,425.676 140,063.518
========== =========== ========== =========== ===========
GROWTH:
Net Unit Value:
- ---------------
Beginning of period $27.905315 $29.626760 $27.808195 $26.688873 $21.511855
End of period 35.061829 27.905315 29.626760 27.808195 26.688873
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $7.156514 ($1.721445) $1.818565 $1.119322 $5.177018
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 77,102.759 99,798.217 122,322.954 145,429.653 167,606.892
========== =========== ========== =========== ===========
FIXED INCOME:
Net Unit Value:
- ---------------
Beginning of period $22.057448 $23.059146 $21.608890 $20.519426 $18.379158
End of period 26.143156 22.057448 23.059146 21.608890 20.519426
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $4.085708 ($1.001698) $1.450256 $1.089464 $2.140268
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 9,817.121 13,812.583 20,594.972 23,763.598 23,170.104
========== =========== ========== =========== ===========
GOVERNMENT AND QUALITY BOND:
Net Unit Value:
- ---------------
Beginning of period $23.062807 $24.061836 $22.471310 $21.271297 $18.379158
End of period 27.363761 23.062807 24.061836 22.471310 21.271297
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $4.300954 ($0.999029) $1.590526 $1.200013 $2.892139
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 41,823.525 53,791.870 52,798.823 68,049.628 78,028.439
========== =========== ========== =========== ===========
</TABLE>
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
<TABLE>
<CAPTION>
From Inception
For Year Ended December 31, February 16 to
1995 1994 1993 1992 December 31, 1991
---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C>
HIGH YIELD:
Net Unit Value:
- ---------------
Beginning of period $18.311593 $19.390068 $16.469796 $14.612125 $11.587813
End of period 21.631502 18.311593 19.390068 16.469796 14.612125
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $3.319909 ($1.078475) $2.920272 $1.857671 $3.024312
========== =========== ========== =========== ===========
Accumulation units outstanding:
End of period 23,297.233 22,225.400 28,857.994 32,499.713 21,531.061
========== =========== ========== =========== ===========
STRATEGIC MULTI-ASSET:
Net Unit Value:
- ---------------
Beginning of period $15.452177 $16.046587 $14.078211 $13.706445 $12.351452
End of period 18.871464 15.452177 16.046587 14.078211 13.706445
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $3.419287 ($0.594410) $1.968376 $0.371766 $1.354993
========== =========== ========== =========== ===========
Accumulation units outstanding:
End of period 71,910.358 92,407.508 100,541.984 109,367.325 123,583.559
========== =========== ========== =========== ===========
MULTI-ASSET:
Net Unit Value:
- ---------------
Beginning of period $16.687065 $17.171904 $16.184528 $15.136605 $12.864238
End of period 20.745427 16.687065 17.171904 16.184528 15.136605
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $4.058362 ($0.484839) $0.987376 $1.047923 $2.272367
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 150,648.340 159,072.494 173,040.307 200,966.933 260,094.975
========== =========== ========== =========== ===========
CAPITAL APPRECIATION:
Net Unit Value:
- ---------------
Beginning of period $21.997082 $23.130496 $19.326613 $15.516418 $11.838604
End of period 29.438162 21.997082 23.130496 19.326613 15.516418
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $7.441080 ($1.133414) $3.803883 $3.810195 $3.677814
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 74,106.731 60,646.794 90,692.591 95,104.928 72,838.909
========== =========== ========== =========== ===========
</TABLE>
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
<TABLE>
<CAPTION>
From Inception
For Year Ended December 31, February 16 to
1995 1994 1993 1992 December 31, 1991
---- ---- ---- ---- -----------------
<S> <C> <C> <C> <C> <C>
CONVERTIBLE SECURITIES:
Net Unit Value:
- ---------------
Beginning of period $16.991875 $19.021372 $15.771764 $13.277614 $11.327935
End of period 19.673868 16.991875 19.021372 15.771764 13.277614
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $2.681993 ($2.029497) $3.249608 $2.494150 $1.949679
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 41,324.596 41,919.783 47,948.619 40,275.157 39,847.070
========== =========== ========== =========== ===========
FOREIGN SECURITIES:
Net Unit Value:
- ---------------
Beginning of period $12.071981 $12.611983 $9.793832 $11.404702 $12.791320
End of period 13.520833 12.071981 12.611983 9.793832 11.404702
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $1.448852 ($0.540002) $2.818151 ($1.610870) ($1.386618)
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 78,097.323 93,950.950 114,527.042 41,344.157 47,681.458
========== =========== ========== =========== ===========
NATURAL RESOURCES:
Net Unit Value:
- ---------------
Beginning of period $15.321133 $15.336863 $11.393799 $11.250077 $11.482265
End of period 17.900007 15.321133 15.336863 11.393799 11.250077
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $2.578874 ($0.015730) $3.943064 $0.143722 ($0.232188)
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 25,100.529 30,011.911 21,702.780 11,099.048 20,261.387
========== =========== ========== =========== ===========
TARGET '98:
Net Unit Value:
- ---------------
Beginning of period $16.846404 $17.773276 $16.161730 $15.252884 $13.341108
End of period 19.207550 16.846404 17.773276 16.161730 15.252884
---------- ----------- ---------- ----------- -----------
Net increase (decrease) in net unit
value from operations $2.361146 ($0.926872) $1.611546 $0.908846 $1.911776
========== =========== ========== =========== ===========
Accumulation units outstanding:
- -------------------------------
End of period 3,515.671 3,840.433 3,559.732 3,542.659 3,985.692
========== =========== ========== =========== ===========
</TABLE>
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 6 - POLICYHOLDER TRANSACTIONS
The increase (decrease) in net assets from changes in the number of outstanding
units was as follows for the year ended December 31, 1995:
<TABLE>
<CAPTION>
PURCHASE PAYMENTS EXCHANGE PURCHASES INCREASE (DECREASE)
AND TRANSFERS AND EXCHANGE WITHDRAWALS AND IN NET ASSETS FROM
RECEIVED SURRENDERS SURRENDERS POLICYHOLDER TRANSACTIONS
--------------------------------------------------------------------------------------------------------
ACCOUNT UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS
------- ----- ------- ----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 3,194 $52,598 (29,517) ($495,776) (32,090) ($540,181) (58,413) ($983,359)
Growth 62 1,750 (7,433) (244,055) (15,324) (500,626) (22,695) (742,931)
Fixed Income - - - - (3,996) (89,799) (3,996) (89,799)
Government and Quality Bond 246 5,791 (8,191) (198,736) (4,023) (103,590) (11,968) (296,535)
High Yield - - 2,500 44,154 (1,428) (28,844) 1,072 15,310
Strategic Multi-Asset 1,078 18,288 (2,929) (51,429) (18,647) (332,849) (20,498) (365,990)
Multi-Asset 2,361 44,881 (3,056) (57,573) (7,729) (142,798) (8,424) (155,490)
Capital Appreciation - - 23,957 701,201 (10,497) (270,289) 13,460 430,912
Convertible Securities 104 1,750 670 15,077 (1,369) (24,882) (595) (8,055)
Foreign Securities 501 5,784 (12,041) (133,219) (4,314) (54,036) (15,854) (181,471)
Natural Resources - - (2,895) (43,887) (2,016) (34,291) (4,911) (78,178)
Target '98 - - - - (324) (5,983) (324) (5,983)
--------------------------------------------------------------------------------------------------------
7,546 $130,842 (38,935) ($464,243) (101,757) ($2,128,168) (133,146) ($2,461,569)
========================================================================================================
</TABLE>
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 7 - DETAILED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995
A statement of operations by investment division follows for the year ended
December 31, 1995:
<TABLE>
<CAPTION>
Money Fixed Govt.& Quality Strategic
Market Growth Income Bond High Yield Multi-Asset
------ ------ ------ ---- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $114,451 $5,704 $19,445 $74,879 $58,792 $26,818
Mortality and expense risk charges
and administrative expense (11,236) (14,818) (1,305) (6,080) (2,600) (7,703)
--------------------------------------------------------------------------
Net investment income (loss) 103,215 (9,114) 18,140 68,799 56,192 19,115
--------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from
investment transactions:
Proceeds from sales 2,432,635 1,430,006 98,387 567,666 540,941 430,392
Cost of investments sold (2,432,635) (1,394,504) (102,512) (546,658) (551,345) (406,552)
--------------------------------------------------------------------------
Net realized gain (loss) - 35,502 (4,125) 21,008 (10,404) 23,840
Capital gains distribution - 428,499 - - - 204,654
--------------------------------------------------------------------------
Net realized gain (loss)
from investments: - 464,001 (4,125) 21,008 (10,404) 228,494
--------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period - (4,904) 8,107 57,864 (1,973) 66,685
Unrealized appreciation (depreciation)
at beginning of period - (211,412) (19,657) (52,722) (37,846) 19,147
--------------------------------------------------------------------------
Net change in unrealized appreciation - 206,508 27,764 110,586 35,873 47,538
--------------------------------------------------------------------------
Realized and unrealized gain - 670,509 23,639 131,594 25,469 276,032
--------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $103,215 $661,395 $41,779 $200,393 $81,661 $295,147
==========================================================================
</TABLE>
<TABLE>
<CAPTION>
Capital Convertible Foreign Natural
Multi-Asset Appreciation Securities Securities Resources Target '98 Total
----------- ------------ ---------- ---------- --------- ---------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS):
Dividend income $105,365 $13,483 $46,197 $5,789 $6,354 $6,296 $483,573
Mortality and expense risk charges
and administrative expense (14,980) (8,510) (3,834) (5,330) (2,410) (350) (79,156)
-----------------------------------------------------------------------------------------
Net investment income (loss) 90,385 4,973 42,363 459 3,944 5,946 404,417
-----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS):
Realized gain (loss) from
investment transactions:
Proceeds from sales 401,157 877,505 202,320 534,271 388,502 6,332 7,910,114
Cost of investments sold (351,896) (794,557) (195,990) (525,044) (372,740) (6,090) (7,680,523)
-----------------------------------------------------------------------------------------
Net realized gain (loss) 49,261 82,948 6,330 9,227 15,762 242 229,591
Capital gains distribution 223,745 18,605 33,396 - 8,877 - 917,776
-----------------------------------------------------------------------------------------
Net realized gain (loss)
from investments: 273,006 101,553 39,726 9,227 24,639 242 1,147,367
-----------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period 385,061 312,749 (4,217) 110,918 36,811 (521) 966,580
Unrealized appreciation (depreciation)
at beginning of period 122,151 2,673 (30,902) 17,366 (2,268) (3,145) (196,615)
-----------------------------------------------------------------------------------------
Net change in unrealized appreciation 262,910 310,076 26,685 93,552 39,079 2,624 1,163,195
-----------------------------------------------------------------------------------------
Realized and unrealized gain 535,916 411,629 66,411 102,779 63,718 2,866 2,310,562
-----------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
FROM OPERATIONS $626,301 $416,602 $108,774 $103,238 $67,662 $8,812 $2,714,979
========================================================================================
</TABLE>
<PAGE>
Northeast Insurance Services Telephone 860 240 2000
One Financial Plaza Facsimile 860 240 2282
Hartford, CT 06103
Price Waterhouse LLP [Price Waterhouse logo]
Report of Independent Accountants
February 26, 1996
To the Policyholders of ICAP Plus Variable Life Account One
and the Board of Directos of
Phoenix Home Life Mutual Insurance Company
In our opionion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets present fairly, in all
material respects, the financial position of ICAP Plus Variable Life Account One
- - Separate Account of Phoenix Home Life Mutual Insurance Company (the "Account")
at December 31, 1995, the results of its operations for the year then ended and
the changes in its net assets for the two years then ended, in conformity with
generally accepted accounting principles. These financial statements are the
responsibility of the Account's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of investments at December 31, 1995 by
correspondence with the Funds, provide a reasonable basis for the opinion
expressed above.
/s/ Price Waterhouse LLP
Offices in Boston, Burlington, Hartford, New York, Providence
