ICAP PLUS VARIABLE LIFE ACCOUNT ONE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1998
<PAGE>
<TABLE>
ICAP PLUS 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 1,080,460 $1,080,460 $1,080,460
Growth 131,625 2,978,898 4,280,527
Fixed Income 6,431 86,354 84,893
Government & Quality Bond 54,973 760,964 804,544
High Yield 50,265 394,823 341,662
Strategic Multi-Asset 137,515 1,490,445 1,439,053
Multi-Asset 273,671 3,239,129 3,691,616
Capital Appreciation 96,576 2,551,201 3,437,517
Growth & Income 61,659 837,777 1,301,398
Foreign Securities 50,806 557,709 542,902
Natural Resources 15,180 222,755 175,895
Target '98 0 0 0
--------------------------------------------
Net Assets $14,200,515 $17,180,467
============================================
NET ASSETS APPLICABLE TO UNIT
OUTSTANDING UNITS OF CAPITAL UNITS VALUE VALUE
------------------------------------------------------------
Account:
Money Market 54,828.4926 $19.706179 $1,080,460
Growth 58,835.3196 72.754346 4,280,527
Fixed Income 2,718.4739 31.228319 84,893
Government & Quality Bond 24,208.3629 33.234115 804,544
High Yield 13,482.0187 25.342042 341,662
Strategic Multi-Asset 51,081.6246 28.171637 1,439,053
Multi-Asset 105,085.2942 35.129704 3,691,616
Capital Appreciation 61,698.3532 55.714869 3,437,517
Growth & Income 33,251.4097 39.138132 1,301,398
Foreign Securities 33,348.5473 16.279016 542,902
Natural Resources 11,556.0969 15.220970 175,895
Target '98 0.0000 0.000000 0
---------------------
Net assets applicable to outstanding
units of capital $17,180,467
=====================
</TABLE>
See accompanying notes to financial statements
1
<PAGE>
<TABLE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1998
<S> <C>
NET INVESTMENT INCOME
Dividend income $315,421
Mortality and expense risk charges and administrative expense (73,471)
--------------
Net investment income 241,950
--------------
REALIZED AND UNREALIZED GAIN
Realized gain from investment transactions:
Proceeds from sales 5,168,413
Cost of investments sold (4,660,779)
--------------
Net realized gain 507,634
Capital gain distribution 1,331,570
--------------
Net realized gain from investments 1,839,204
--------------
Change in unrealized appreciation on investments:
Unrealized appreciation at end of year 2,979,952
Unrealized appreciation at beginning of year 2,092,771
--------------
Net change in unrealized appreciation 887,181
--------------
Realized and unrealized gain 2,726,385
--------------
INCREASE IN NET ASSETS FROM OPERATIONS $2,968,335
==============
</TABLE>
See accompanying notes to financial statements
2
<PAGE>
<TABLE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDING DECEMBER 31, 1998 AND 1997
<CAPTION>
1998 1997
--------------------------------------------------
<S> <C> <C>
OPERATIONS
Net investment income $241,950 $320,069
Net realized gain from investments 1,839,204 1,929,616
Net change in unrealized appreciation 887,181 364,379
--------------------------------------------------
Increase in net assets from operations 2,968,335 2,614,064
--------------------------------------------------
POLICYHOLDER TRANSACTIONS
Purchase payments received 75,715 82,539
Withdrawals and surrenders (2,249,804) (1,736,569)
Exchange purchases 2,928,566 504,223
Exchange surrenders (2,713,774) (314,346)
--------------------------------------------------
Decrease in net assets from policyholder
transactions (1,959,297) (1,464,153)
--------------------------------------------------
INCREASE IN NET ASSETS 1,009,038 1,149,911
NET ASSETS, BEGINNING OF YEAR 16,171,429 15,021,518
--------------------------------------------------
NET ASSETS, END OF YEAR $17,180,467 $16,171,429
==================================================
</TABLE>
See accompanying notes to financial statements
3
<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, 1998, the general account includes
$2,336,232 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>
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 and 0.25% thereafter.
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 and 0.20% thereafter.
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. 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.
5
<PAGE>
ICAP 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
eight policy years, a surrender charge is 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 deducts any portion of the premium
tax and policy issue costs not recovered through the
administrative charge, determined as follows:
6
<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,
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>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
MONEY MARKET:
Net Unit Value:
- ----------------------------------------
Beginning of year $18.831487 $17.988143 $17.208028 $16.381520 $15.957504
End of year 19.706179 18.831487 17.988143 17.208028 16.381520
--------------------------------------------------------------------------------
Net increase in net unit
value from operations $0.874692 $0.843344 $0.780115 $0.826508 $0.424016
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 54,828.493 58,777.015 81,684.910 92,859.771 151,272.799
================================================================================
GROWTH:
Net Unit Value:
- ----------------------------------------
Beginning of year $56.675924 $43.659022 $35.061829 $27.905315 $29.626760
End of year 72.754346 56.675924 43.659022 35.061829 27.905315
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $16.078422 $13.016902 $8.597193 $7.156514 ($1.721445)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 58,835.320 62,446.167 61,214.436 77,102.759 99,798.217
================================================================================
FIXED INCOME:
Net Unit Value:
- ----------------------------------------
Beginning of year $29.045170 $26.670598 $26.143156 $22.057448 $23.059146
End of year 31.228319 29.045170 26.670598 26.143156 22.057448
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $2.183149 $2.374572 $0.527442 $4.085708 ($1.001698)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 2,718.474 2,392.696 7,756.393 9,817.121 13,812.583
================================================================================
GOVERNMENT & QUALITY BOND:
Net Unit Value:
- ----------------------------------------
Beginning of year $30.596101 $28.054940 $27.363761 $23.062807 $24.061836
End of year 33.234115 30.596101 28.054940 27.363761 23.062807
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $2.638014 $2.541161 $0.691179 $4.300954 ($0.999029)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 24,208.363 30,515.086 36,030.560 41,823.525 53,791.870
================================================================================
</TABLE>
8
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
HIGH YIELD:
Net Unit Value:
- ----------------------------------------
Beginning of year $26.650906 $24.056628 $21.631502 $18.311593 $19.390068
End of year 25.342042 26.650906 24.056628 21.631502 18.311593
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations ($1.308864) $2.594278 $2.425126 $3.319909 ($1.078475)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 13,482.019 19,533.019 18,471.920 23,297.233 22,225.400
================================================================================
STRATEGIC MULTI-ASSET:
Net Unit Value:
- ----------------------------------------
Beginning of year $24.555006 $21.573438 $18.871464 $15.452177 $16.046587
End of year 28.171637 24.555006 21.573438 18.871464 15.452177
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $3.616631 $2.981568 $2.701974 $3.419287 ($0.594410)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 51,081.625 55,003.962 63,059.798 71,910.358 92,407.508
================================================================================
MULTI-ASSET:
Net Unit Value:
- ----------------------------------------
Beginning of year $28.356493 $23.515858 $20.745427 $16.687065 $17.171904
End of year 35.129704 28.356493 23.515858 20.745427 16.687065
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $6.773211 $4.840635 $2.770431 $4.058362 ($0.484839)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 105,085.294 120,639.843 130,879.258 150,648.340 159,072.494
================================================================================
CAPITAL APPRECIATION:
Net Unit Value:
- ----------------------------------------
Beginning of year $45.798361 $36.670047 $29.438162 $21.997082 $23.130496
End of year 55.714869 45.798361 36.670047 29.438162 21.997082
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $9.916508 $9.128314 $7.231885 $7.441080 ($1.133414)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 61,698.353 64,891.833 67,921.672 74,106.731 60,646.794
================================================================================
</TABLE>
9
<PAGE>
ICAP PLUS VARIABLE LIFE ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
NOTE 5 - SCHEDULE OF SELECTED PER-UNIT DATA (CONTINUED)
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1998 1997 1996 1995 1994
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROWTH & INCOME:
Net Unit Value:
- ----------------------------------------
Beginning of year $30.206823 $23.563662 $19.673868 $16.991875 $19.021372
End of year 39.138132 30.206823 23.563662 19.673868 16.991875
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $8.931309 $6.643161 $3.889794 $2.681993 ($2.029497)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 33,251.410 36,554.673 36,254.602 41,324.596 41,919.783
================================================================================
FOREIGN SECURITIES:
Net Unit Value:
- ----------------------------------------
Beginning of year $14.780596 $15.000130 $13.520833 $12.071981 $12.611983
End of year 16.279016 14.780596 15.000130 13.520833 12.071981
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations $1.498420 ($0.219534) $1.479297 $1.448852 ($0.540002)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 33,348.547 58,324.972 69,214.480 78,097.323 93,950.950
================================================================================
NATURAL RESOURCES:
Net Unit Value:
- ----------------------------------------
Beginning of year $18.501355 $20.325312 $17.900007 $15.321133 $15.336863
End of year 15.220970 18.501355 20.325312 17.900007 15.321133
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations ($3.280385) ($1.823957) $2.425305 $2.578874 ($0.015730)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 11,556.097 12,806.557 16,096.149 25,100.529 30,011.911
================================================================================
TARGET '98:
Net Unit Value:
- ----------------------------------------
Beginning of year $20.767692 $19.831280 $19.207550 $16.846404 $17.773276
End of year 0.000000 20.767692 19.831280 19.207550 16.846404
--------------------------------------------------------------------------------
Net increase (decrease) in net unit
value from operations ($20.767692) $0.936412 $0.623730 $2.361146 ($0.926872)
================================================================================
Accumulation units outstanding:
- ----------------------------------------
End of year 0.000 2,646.523 3,479.259 3,515.671 3,840.433
================================================================================
</TABLE>
10
<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, 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 205 $3,973 16,761 $357,026 (20,915) ($442,679) (3,949) ($81,680)
Growth 322 20,683 1,612 102,084 (5,545) (342,722) (3,611) (219,955)
Fixed Income - - 540 16,633 (214) (6,335) 326 10,298
Government & Quality Bond 644 20,089 52 175 (7,002) (232,049) (6,306) (211,785)
High Yield 242 6,688 (4,096) (87,475) (2,197) (81,009) (6,051) (161,796)
Strategic Multi-Asset 152 3,950 475 13,008 (4,549) (119,309) (3,922) (102,351)
Multi-Asset - - (1,668) (51,284) (13,886) (424,698) (15,554) (475,982)
Capital Appreciation - - 1,933 92,185 (5,126) (260,260) (3,193) (168,075)
Growth & Income 595 20,321 865 34,702 (4,764) (162,750) (3,304) (107,727)
Foreign Securities - - (17,640) (233,763) (7,337) (124,795) (24,977) (358,558)
Natural Resources - - 651 16,194 (1,901) (41,528) (1,250) (25,334)
Target "98" - 11 (2,086) (44,693) (561) (11,670) (2,647) (56,352)
----------------------------------------------------------------------------------------------------
2,160 $75,715 (2,601) $214,792 (73,997) ($2,249,804) (74,438) ($1,959,297)
====================================================================================================
</TABLE>
11
<PAGE>
ICAP PLUS 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 $60,759 $16,375 $5,322 $43,076 $42,628
Mortality & expense risk charges
and administrative expense (5,477) (16,898) (308) (4,250) (2,032)
---------------------------------------------------------------------
Net investment income (loss) 55,282 (523) 5,014 38,826 40,596
---------------------------------------------------------------------
REALIZED & UNREALIZED GAIN (LOSS)
Realized gain (loss) from investment
transactions:
Proceeds from sales 1,309,426 707,409 6,635 536,935 321,967
Cost of investments sold (1,309,426) (529,476) (6,666) (509,159) (330,109)
---------------------------------------------------------------------
Net realized gain (loss) - 177,933 (31) 27,776 (8,142)
Capital gains distributions - 199,639 - 1,584 -
---------------------------------------------------------------------
Net realized gain (loss) from investments - 377,572 (31) 29,360 (8,142)
---------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period - 1,301,630 (1,461) 43,580 (53,161)
Unrealized appreciation (depreciation)
at beginning of period - 717,391 (1,573) 29,080 (3,592)
---------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) - 584,239 112 14,500 (49,569)
---------------------------------------------------------------------
Realized and unrealized gain (loss) - 961,811 81 43,860 (57,711)
---------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $55,282 $961,288 $5,095 $82,686 ($17,115)
=====================================================================
</TABLE>
<TABLE>
<CAPTION>
STRATEGIC MULTI- CAPITAL GROWTH &
MULTI-ASSET ASSET APPRECIATION INCOME
----------- ----- ------------ ------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Dividend income $29,730 $90,631 $1,616 $10,074
Mortality & expense risk charges
and administrative expense (6,294) (15,718) (13,680) (5,283)
--------------------------------------------------------
Net investment income (loss) 23,436 74,913 (12,064) 4,791
--------------------------------------------------------
REALIZED & UNREALIZED GAIN (LOSS)
Realized gain (loss) from investment
transactions:
Proceeds from sales 139,545 526,111 714,256 247,098
Cost of investments sold (140,023) (443,952) (543,781) (172,087)
--------------------------------------------------------
Net realized gain (loss) (478) 82,159 170,475 75,011
Capital gains distributions 218,724 560,310 240,681 46,090
--------------------------------------------------------
Net realized gain (loss) from investments 218,246 642,469 411,156 121,101
--------------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period (51,393) 452,487 886,316 463,621
Unrealized appreciation (depreciation)
at beginning of period (495) 423,194 651,756 284,589
--------------------------------------------------------
Net change in unrealized
appreciation (depreciation) (50,898) 29,293 234,560 179,032
--------------------------------------------------------
Realized and unrealized gain (loss) 167,348 671,762 645,716 300,133
--------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $190,784 $746,675 $633,652 $304,924
========================================================
</TABLE>
<TABLE>
<CAPTION>
FOREIGN NATURAL
SECURITIES RESOURCES TARGET '98 TOTAL
---------- --------- ---------- -----
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Dividend income $8,759 $2,625 $3,826 $315,421
Mortality & expense risk charges
and administrative expense (2,467) (903) (161) (73,471)
-----------------------------------------------------
Net investment income (loss) 6,292 1,722 3,665 241,950
-----------------------------------------------------
REALIZED & UNREALIZED GAIN (LOSS)
Realized gain (loss) from investment
transactions:
Proceeds from sales 526,296 76,218 56,517 5,168,413
Cost of investments sold (531,976) (78,629) (65,495) (4,660,779)
-----------------------------------------------------
Net realized gain (loss) (5,680) (2,411) (8,978) 507,634
Capital gains distributions 62,743 1,799 - 1,331,570
-----------------------------------------------------
Net realized gain (loss) from investments 57,063 (612) (8,978) 1,839,204
-----------------------------------------------------
Change in unrealized appreciation
(depreciation) on investments:
Unrealized appreciation (depreciation)
at end of period (14,807) (46,860) - 2,979,952
Unrealized appreciation (depreciation)
at beginning of period 9,166 (10,041) (6,704) 2,092,771
-----------------------------------------------------
Net change in unrealized
appreciation (depreciation) (23,973) (36,819) 6,704 887,181
-----------------------------------------------------
Realized and unrealized gain (loss) 33,090 (37,431) (2,274) 2,726,385
-----------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $39,382 ($35,709) $1,391 $2,968,335
=====================================================
</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 ICAP Plus 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 ICAP Plus 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>
I 2/99
