RSVP VARIABLE LIFE ACCOUNT ONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1998
<PAGE>
<TABLE>
RSVP VARIABLE LIFE ACCOUNT ONE
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
<CAPTION>
NET ASSETS SHARES COST VALUE
--------------------------------------------------------------
<S> <C> <C> <C>
Investment in mutual fund portfolio:
Money Market 31,525 $31,525 $31,525
Growth 3,825 85,671 124,380
Fixed Income 29 411 388
Government & Quality Bond 362 4,987 5,295
High Yield 1,100 8,740 7,475
Strategic Multi-Asset 11,368 127,180 118,965
Multi-Asset 6,625 82,180 89,361
Capital Appreciation 3,868 103,854 137,666
Growth & Income 569 7,573 12,001
Foreign Securities 2,891 31,794 30,898
Natural Resources 1,805 28,133 20,920
Target '98 0 0 0
--------------------------------------------
Net Assets $512,048 $578,874
============================================
NET ASSETS APPLICABLE TO UNIT
OUTSTANDING UNITS OF CAPITAL UNITS VALUE VALUE
--------------------------------------------------------------
Account:
Money Market 1,951.0521 $16.157939 $31,525
Growth 2,553.3827 48.711591 124,380
Fixed Income 18.1916 21.303789 388
Government & Quality Bond 229.6426 23.059485 5,295
High Yield 370.1350 20.196631 7,475
Strategic Multi-Asset 3,978.0084 29.905761 118,965
Multi-Asset 2,505.2309 35.669698 89,361
Capital Appreciation 2,292.4623 60.051245 137,666
Growth & Income 292.6405 41.010762 12,001
Foreign Securities 1,770.5721 17.450738 30,898
Natural Resources 1,437.3283 14.554559 20,920
Target '98 0.0000 0.000000 0
-----------------------
Net assets applicable to outstanding
units of capital $578,874
=======================
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
<TABLE>
RSVP VARIABLE LIFE ACCOUNT ONE
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
<S> <C>
NET INVESTMENT INCOME
Dividend income $9,145
Mortality and expense risk charges and administrative expense (3,382)
--------------
Net investment income 5,763
--------------
REALIZED AND UNREALIZED GAIN
Realized gain from investment transactions:
Proceeds from sales 106,654
Cost of investments sold (94,055)
--------------
Net realized gain 12,599
Capital gain distribution 52,864
--------------
Net realized gain from investments 65,463
--------------
Change in unrealized appreciation on investments:
Unrealized appreciation at end of year 66,825
Unrealized appreciation at beginning of year 46,358
--------------
Net change in unrealized appreciation 20,467
--------------
Realized and unrealized gain 85,930
--------------
INCREASE IN NET ASSETS FROM OPERATIONS $91,693
==============
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
<TABLE>
RSVP VARIABLE LIFE ACCOUNT ONE
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1998 AND 1997
<CAPTION>
1998 1997
---------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $5,763 $7,076
Net realized gain from investments 65,463 75,473
Net change in unrealized appreciation 20,467 8,835
---------------------------------------------------
Net increase in net assets from operations 91,693 91,384
---------------------------------------------------
POLICYHOLDER TRANSACTIONS
Purchase payments received 26,231 33,157
Withdrawals and surrenders (88,251) (147,843)
Exchange purchases 19,120 21,108
Exchange surrenders (19,110) (3,135)
---------------------------------------------------
Decrease in net assets from policyholder
transactions (62,010) (96,713)
---------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS 29,683 (5,329)
NET ASSETS, BEGINNING OF YEAR 549,191 554,520
---------------------------------------------------
NET ASSETS, END OF YEAR $578,874 $549,191
===================================================
</TABLE>
See accompanying notes to financial statements
3
<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, 1998, the general account includes
$22,118 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 distributions 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.
4
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 2 SIGNIFICANT ACCOUNTING POILICIES (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 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.
5
<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 is deducted to compensate
Phoenix Home Life for expenses incurred in connection with the
promotion, sales 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 three to five, 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 (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
6
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 3 CONTRACT CHARGES (CONTINUED)
An increase on the initial death benefit (the "Specified
Amount") under the 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,
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.
7
<PAGE>
<TABLE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA
<CAPTION>
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MONEY MARKET:
Net Unit Value:
- ----------------------------------------
Beginning of year $15.464186 $14.793740 $14.173465 $13.502832 $13.081135
End of year 16.157939 15.464186 14.793740 14.173465 13.502832
------------------------------------------------------------------------------------
Net increase in net unit
value from operations $0.693753 $0.670446 $0.620275 $0.670633 $0.421697
====================================================================================
Accumulation units outstanding:
End of year 1,951.052 2,033.076 2,765.451 5,824.154 2,839.094
====================================================================================
GROWTH:
Net Unit Value:
- ----------------------------------------
Beginning of year $38.003405 $29.319060 $23.579667 $18.784956 $19.837747
End of year 48.711591 38.003405 29.319060 23.579667 18.784956
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $10.708186 $8.684345 $5.739393 $4.794711 ($1.052791)
====================================================================================
Accumulation units outstanding:
End of year 2,553.383 2,791.174 3,253.726 2,053.494 5,066.451
====================================================================================
FIXED INCOME:
Net Unit Value:
- ----------------------------------------
Beginning of year $19.909607 $18.334574 $17.999228 $15.182949 $15.787620
End of year 21.303789 19.909607 18.334574 17.999228 15.182949
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $1.394182 $1.575033 $0.335346 $2.816279 ($0.604671)
====================================================================================
Accumulation units outstanding:
End of year 18.192 20.289 38.814 68.947 81.681
====================================================================================
GOVERNMENT & QUALITY BOND:
Net Unit Value:
- ----------------------------------------
Beginning of year $21.258404 $19.520774 $19.068522 $16.083095 $16.688251
End of year 23.059485 21.258404 19.520774 19.068522 16.083095
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $1.801081 $1.737630 $0.452252 $2.985427 ($0.605156)
====================================================================================
Accumulation units outstanding:
End of year 229.643 358.176 573.645 625.426 770.430
====================================================================================
</TABLE>
8
<PAGE>
<TABLE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (Continued)
<CAPTION>
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
HIGH YIELD:
Net Unit Value:
- ----------------------------------------
Beginning of year $21.271062 $19.227616 $17.370956 $14.717391 $15.440855
End of year 20.196631 21.271062 19.227616 17.370956 14.717391
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations ($1.074431) $2.043446 $1.856660 $2.653565 ($0.723464)
====================================================================================
Accumulation units outstanding:
End of year 370.135 380.889 499.086 532.392 602.324
====================================================================================
STRATEGIC MULTI-ASSET:
Net Unit Value:
- ----------------------------------------
Beginning of year $26.105035 $22.969725 $20.122448 $16.489482 $17.029956
End of year 29.905761 26.105035 22.969725 20.122448 16.489482
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $3.800726 $3.135310 $2.847277 $3.632966 ($0.540474)
====================================================================================
Accumulation units outstanding:
End of year 3,978.008 4,333.970 5,120.181 5,379.665 5,131.355
====================================================================================
MULTI-ASSET:
Net Unit Value:
- ----------------------------------------
Beginning of year $28.835143 $23.952220 $21.162333 $17.035823 $17.434654
End of year 35.669698 28.835143 23.952220 21.162333 17.035823
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $6.834555 $4.882923 $2.789887 $4.126510 ($0.398831)
====================================================================================
Accumulation units outstanding:
End of year 2,505.231 2,516.316 2,481.475 2,528.003 2,321.993
====================================================================================
CAPITAL APPRECIATION:
Net Unit Value:
- ----------------------------------------
Beginning of year $49.436071 $39.643903 $31.875450 $23.835567 $24.928405
End of year 60.051245 49.436071 39.643903 31.875450 23.835567
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $10.615174 $9.792168 $7.768453 $8.039883 ($1.092838)
====================================================================================
Accumulation units outstanding:
End of year 2,292.462 2,832.788 3,513.203 5,335.578 4,074.140
====================================================================================
</TABLE>
9
<PAGE>
<TABLE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (CONTINUED)
<CAPTION>
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROWTH & INCOME:
Net Unit Value:
- ----------------------------------------
Beginning of year $31.698373 $24.766119 $20.713463 $17.904485 $19.933212
End of year 41.010762 31.698373 24.766119 20.713463 17.904485
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $9.312389 $6.932254 $4.052656 $2.808978 ($2.028727)
====================================================================================
Accumulation units outstanding:
End of year 292.641 308.032 362.620 396.508 566.021
====================================================================================
FOREIGN SECURITIES:
Net Unit Value:
- ----------------------------------------
Beginning of year $15.866878 $16.124989 $14.558725 $13.009004 $13.498582
End of year 17.450738 15.866878 16.124989 14.558725 13.009004
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations $1.583860 ($0.258111) $1.566264 $1.549721 ($0.489578)
====================================================================================
Accumulation units outstanding:
End of year 1,770.572 1,765.280 2,332.263 2,544.163 5,767.871
====================================================================================
NATURAL RESOURCES:
Net Unit Value:
- ----------------------------------------
Beginning of year $17.717463 $19.494075 $17.188761 $14.721818 $14.640952
End of year 14.554559 17.717463 19.494075 17.188761 14.721818
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations ($3.162904) ($1.776612) $2.305314 $2.466943 $0.080866
====================================================================================
Accumulation units outstanding:
End of year 1,437.328 1,603.345 1,528.981 1,169.412 789.773
====================================================================================
TARGET '98:
Net Unit Value:
- ----------------------------------------
Beginning of year $19.878868 $19.007934 $18.440731 $16.184859 $16.981960
End of year 0.000000 19.878868 19.007934 18.440731 16.184859
------------------------------------------------------------------------------------
Net increase (decrease) in net
unit value from operations ($19.878868) $0.870934 $0.567203 $2.255872 ($0.797101)
====================================================================================
Accumulation units outstanding:
End of year 0.000 182.958 209.843 237.588 265.694
====================================================================================
</TABLE>
10
<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, 1998:
<TABLE>
<CAPTION>
PURCHASE PAYMENTS NET EXCHANGE PURCHASES WITHDRAWALS AND INCREASE (DECREASE)
AND TRANSFERS AND EXCHANGE SURRENDERS IN NET ASSETS FROM
RECEIVED SURRENDERS POLICYHOLDER TRANSACTIONS
---------------------------------------------------------------------------------------------------------
ACCOUNT UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS UNITS DOLLARS
- ------- ----- ------- ----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Money Market 33 $526 406 $6,417 (521) ($8,219) (82) ($1,276)
Growth 45 1,921 - - (283) (12,267) (238) (10,346)
Fixed Income - - - - (2) (43) (2) (43)
Government & Quality Bond 21 429 - - (150) (3,238) (129) (2,809)
High Yield 21 439 - - (32) (667) (11) (228)
Strategic Multi-Asset 323 9,086 (365) (9,481) (314) (8,765) (356) (9,160)
Multi-Asset 107 3,529 - - (118) (3,776) (11) (247)
Capital Appreciation 89 4,631 260 12,703 (889) (47,839) (540) (30,505)
Growth & Income 13 429 - - (28) (969) (15) (540)
Foreign Securities 196 3,312 (133) (2,101) (58) (917) 5 294
Natural Resources 119 1,929 (227) (4,430) (58) (938) (166) (3,439)
Target '98 - - (153) (3,098) (30) (613) (183) (3,711)
========================================================================================================
967 $26,231 (212) $10 (2,483) ($88,251) (1,728) ($62,010)
========================================================================================================
</TABLE>
11
<PAGE>
RSVP VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 7 - DETAILED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1998
A statement of operations by investment division follows for the year ended
December 31, 1998:
<TABLE>
<CAPTION>
MONEY FIXED GOVT. & HIGH
MARKET GROWTH INCOME QUALITY BOND YIELD
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Dividend income $1,548 $500 $32 $201 $1,092
Mortality & expense risk charges
and administrative expense (186) (676) (3) (38) (48)
-------------------------------------------------------------
Net investment income (loss) 1,362 (176) 29 163 1,044
-------------------------------------------------------------
REALIZED & UNREALIZED GAIN (LOSS)
Realized gain (loss) from investment
transactions
Proceeds from sales 7,929 11,618 46 3,247 630
Cost of investments sold (7,929) (8,399) (48) (3,098) (649)
-------------------------------------------------------------
Net realized gain (loss) - 3,219 (2) 149 (19)
Capital gains distributions - 6,091 - 7 -
-------------------------------------------------------------
Net realized gain (loss) from investments - 9,310 (2) 156 (19)
-------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period - 38,709 (23) 308 (1,265)
Unrealized appreciation (depreciation)
at beginning of period - 19,190 (24) 138 159
-------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) - 19,519 1 170 (1,424)
-------------------------------------------------------------
Realized and unrealized gain (loss) - 28,829 (1) 326 (1,443)
-------------------------------------------------------------
-------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $1,362 $28,653 $28 $489 ($399)
=============================================================
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC MULTI- CAPITAL GROWTH &
MULTI-ASSET ASSET APPRECIATION INCOME
----------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Dividend income $2,382 $2,147 $79 $95
Mortality & expense risk charges
and administrative expense (674) (482) (877) (65)
----------------------------------------------------
Net investment income (loss) 1,708 1,665 (798) 30
----------------------------------------------------
REALIZED & UNREALIZED GAIN (LOSS)
Realized gain (loss) from investment
transactions
Proceeds from sales 18,209 4,039 47,707 1,021
Cost of investments sold (18,882) (3,465) (37,935) (702)
----------------------------------------------------
Net realized gain (loss) (673) 574 9,772 319
Capital gains distributions 17,525 13,274 11,759 432
----------------------------------------------------
Net realized gain (loss) from investments 16,852 13,848 21,531 751
----------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period (8,215) 7,181 33,811 4,428
Unrealized appreciation (depreciation)
at beginning of period (4,642) 5,645 26,417 2,432
----------------------------------------------------
Net change in unrealized
appreciation (depreciation) (3,573) 1,536 7,394 1,996
----------------------------------------------------
Realized and unrealized gain (loss) 13,279 15,384 28,925 2,747
----------------------------------------------------
----------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $14,987 $17,049 $28,127 $2,777
====================================================
</TABLE>
<TABLE>
<CAPTION>
FOREIGN NATURAL
SECURITIES RESOURCES TARGET '98 TOTAL
-------------------------------------------------------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Dividend income $496 $323 $250 $9,145
Mortality & expense risk charges
and administrative expense (173) (148) (12) (3,382)
-------------------------------------------------------
Net investment income (loss) 323 175 238 5,763
-------------------------------------------------------
REALIZED & UNREALIZED GAIN (LOSS)
Realized gain (loss) from investment
transactions
Proceeds from sales 3,041 5,444 3,723 106,654
Cost of investments sold (3,001) (5,663) (4,284) (94,055)
-------------------------------------------------------
Net realized gain (loss) 40 (219) (561) 12,599
Capital gains distributions 3,555 221 - 52,864
-------------------------------------------------------
Net realized gain (loss) from investments 3,595 2 (561) 65,463
-------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period (896) (7,213) - 66,825
Unrealized appreciation (depreciation)
at beginning of period 427 (2,986) (398) 46,358
-------------------------------------------------------
Net change in unrealized
appreciation (depreciation) (1,323) (4,227) 398 20,467
-------------------------------------------------------
Realized and unrealized gain (loss) 2,272 (4,225) (163) 85,930
-------------------------------------------------------
-------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $2,595 ($4,050) $75 $91,693
=======================================================
</TABLE>
12
<PAGE>
[PricewaterhouseCoopers logo]
- --------------------------------------------------------------------------------
PRICEWATERHOUSECOOPERS LLP
One Financial Plaza
Hartford CT 06103
REPORT OF INDEPENDENT ACCOUNTANTS Telephone (860) 240 2000
To the Board of Directors of Phoenix Home Life Mutual Insurance Company
and the Policyholders of RSVP Variable Life Account One
In our opinion, 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, 1998, 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 assurances about whether the 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, 1998 by correspondence with the custodians, provide a reasonable
basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
February 24, 1999
<PAGE>
R 2/99
