American International
Life Assurance Company of New York
--------------------------------------------
VARIABLE ACCOUNT A
ANNUAL REPORT
--------------------------------------------
DECEMBER 31, 1995
<PAGE>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1995
<S> <C> <C> <C>
Assets:
Investments at Market Value:
Delaware Group Premium Fund: Shares Cost
------ ----
Equity/Income Series ........................... 508,535.580 ........ $ 5,697,712 ........ $ 7,541,583
High Yield Series .............................. 124,288.281 ........ 1,141,713 ........ 1,111,129
Capital Reserves Series ........................ 159,540.064 ........ 1,621,226 ........ 1,584,233
Multiple Strategy Series ....................... 176,069.360 ........ 2,257,649 ........ 2,729,087
Money Market Series ............................ 112,776.700 ........ 1,127,767 ........ 1,127,767
Growth Series .................................. 360,358.790 ........ 3,962,139 ........ 5,452,228
----------- -----------
Total Investments ....................................................... $15,808,206 ........ 19,546,027
Dividends Receivable 21,221
Receivable from American International Life
Assurance Company of New York 947
-----------
Total Assets $19,568,195
===========
Equity:
Contract Owners' Equity $19,568,195
-----------
Total Liabilities and Equity $19,568,195
===========
</TABLE>
See Notes to Financial Statements
1
<PAGE>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
------------------------------------------------------------------------------------
Equity/ High Capital Multiple Money
Income Yield Reserves Strategy Market Growth
Total Series Series Series Series Series Series
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment Income (Loss):
Dividends ................................. $ 759,187 $ 344,590 $ 118,730 $ 104,011 $ 97,814 $ 65,417 $ 28,625
Expenses:
Mortality & Expense Risk Fees ............. 231,386 86,321 15,104 19,606 32,626 15,306 62,423
Daily Administrative Charges .............. 177 62 11 3 23 78 --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Investment Income (Loss) ............ 527,624 258,207 103,615 84,402 65,165 50,033 (33,798)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Realized and Unrealized Gain (Loss)
on Investments:
Realized Gain (Loss) on Investment
Activity ................................ 515,241 253,287 (40,279) (13,121) 84,233 -- 231,121
Change in Unrealized
Appreciation (Depreciation) ............. 3,247,905 1,526,229 98,104 116,101 479,219 -- 1,028,252
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Gain (Loss) on Investments .......... 3,763,146 1,779,516 57,825 102,980 563,452 -- 1,259,373
---------- ---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting From Operations ................. $4,290,770 $2,037,723 $ 161,440 $ 187,382 $ 628,617 $ 50,033 $1,225,575
========== ========== ========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements
2
<PAGE>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended December 31, 1995 and December 31, 1994
1995
------------------------------------------------------------------------------------
Equity/ High Capital Multiple Money
Income Yield Reserves Strategy Market Growth
Total Series Series Series Series Series Series
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income (Loss) .............. $ 527,624 $ 258,207 $ 103,615 $ 84,402 $ 65,165 $ 50,033 $ (33,798)
Realized Gain (Loss) on Investment
Activity ................................ 515,241 253,287 (40,279) (13,121) 84,233 -- 231,121
Change in Unrealized Appreciation
(Depreciation) of Investments ........... 3,247,905 1,526,229 98,104 116,101 479,219 -- 1,028,252
---------- ---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting from Operations ................. 4,290,770 2,037,723 161,440 187,382 628,617 50,033 1,225,575
---------- ---------- ---------- ---------- ---------- ---------- ----------
Capital Transactions:
Contract Deposits ......................... 163,921 53,191 -- -- 17,730 93,000 --
Administrative Charges .................... (14,116) (4,892) (760) (883) (1,737) (1,814) (4,030)
Transfers Between Funds ................... -- (74,347) (160,792) (42,244) (125,997) 304,075 99,305
Transfers to AI Life ...................... (100,756) -- -- -- (100,756) -- --
Contract Withdrawals ...................... (2,082,709) (872,383) (69,734) (113,495) (289,737) (189,212) (548,148)
Deferred Sales Charges .................... (30,960) (8,942) (721) (1,303) (2,843) (3,828) (13,323)
Death Benefits ............................ (374,361) (64,239) -- -- (60,501) (113,488) (136,133)
Capital Redemptions by AI Life ............ (193,533) -- -- -- (193,533) -- --
---------- ---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... (2,632,514) (971,612) (232,007) (157,925) (757,374) 88,733 (602,329)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Increase (Decrease) in Net Assets ..... 1,658,256 1,066,111 (70,567) 29,457 (128,757) 138,766 623,246
Net Assets, at Beginning of Year ............ 17,909,939 6,475,782 1,190,285 1,563,085 2,857,753 993,850 4,829,184
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Assets, at End of Year .................. $19,568,195 $7,541,893 $1,119,718 $1,592,542 $2,728,996 $1,132,616 $5,452,430
========== ========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
1994
------------------------------------------------------------------------------------
Equity/ High Capital Multiple Money
Income Yield Reserves Strategy Market Growth
Total Series Series Series Series Series Series
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets
Operations:
Net Investment Income (Loss) .............. $1,142,259 $ 777,470 $ 122,451 $ 100,943 $ 145,897 $ 33,642 $ (38,144)
Realized Gain (Loss) on
Investment Activity ..................... 919,334 771,022 (1,493) (16,321) 47,073 -- 119,053
Change in Unrealized Appreciation
(Depreciation) of Investments ........... (2,609,027) (1,669,706) (170,374) (152,347) (231,064) -- (385,536)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting from Operations ................. (547,434) (121,214) (49,416) (67,725) (38,094) 33,642 (304,627)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Capital Transactions:
Contract Deposits ......................... 9,534 -- -- -- -- -- 9,534
Administrative Charges .................... (14,700) (5,865) (923) (928) (1,885) (673) (4,426)
Transfers Between Funds ................... -- 117,575 (242,379) (286,413) 42,016 458,855 (89,654)
Transfers From (To) AI Life ............... (14,171) -- (14,171) -- -- -- --
Contract Withdrawals ...................... (8,292,153) (4,720,418) (149,709) (93,015) (1,046,583) (696,815) (1,585,613)
Deferred Sales Charges .................... (173,943) (93,835) (2,240) (2,131) (26,890) (9,482) (39,365)
Death Benefits ............................ (525,183) (294,450) -- (71,272) (53,979) (79,950) (25,532)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... (9,010,616) (4,996,993) (409,422) (453,759) (1,087,321) (328,065) (1,735,056)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Increase (Decrease) in Net Assets ..... (9,558,050) (5,118,207) (458,838) (521,484) (1,125,415) (294,423) (2,039,683)
Net Assets, at Beginning of Year ............ 27,467,989 11,593,989 1,649,123 2,084,569 3,983,168 1,288,273 6,868,867
---------- ---------- ---------- ---------- ---------- ---------- ----------
Net Assets, at End of Year .................. $17,909,939 $6,475,782 $1,190,285 $1,563,085 $2,857,753 $ 993,850 $4,829,184
========== ========== ========== ========== ========== ========== ==========
</TABLE>
See Notes to Financial Statements
3
<PAGE>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
1. History
Variable Account A (the "Account") is a separate investment account established
in June 1987 under the provisions of New York Insurance Law by American
International Life Assurance Company of New York (the "Company"), a wholly-owned
subsidiary of American International Group, Inc. The Account operates as a unit
investment trust registered under the Investment Company Act of 1940, as
amended, and supports the operations of the Company's individual single purchase
payment deferred variable annuity contracts (the "contracts"). The Account
invests in shares of Delaware Group Premium Fund, Inc. (the "Fund"). The Fund
consists of a series of portfolios, six in which the contracts may invest:
Equity/Income Series; High Yield Series; Capital Reserves Series; Multiple
Strategy Series; Money Market Series; and Growth Series. The Account invests in
shares of other funds which are not available to these contracts.
The account had no assets or operations until September 17, 1987 when the
Company transferred $105,000 from its general funds to provide initial capital.
In July 1988, the Company transferred an additional $4,000,000 to purchase
shares in the High Yield Series, Capital Reserves Series and Multiple Strategy
Series. As of December 31, 1995, the Company has redeemed all of its capital
shares.
The assets of the Account are the property of the Company. The portion of the
Account's assets applicable to the contracts are not chargeable with liabilities
arising out of any other business conducted by the Company.
In addition to the Account, a contract owner may also allocate funds to the
Guaranteed Account, which is part of the Company's general account. Amounts
allocated to the Guaranteed Account are credited with a guaranteed rate for one
year. Because of exemptive and exclusionary provisions, interests in the
Guaranteed Account have not been registered under the Securities Act of 1933 and
the Guaranteed Account has not been registered as an investment company under
the Investment Company Act of 1940.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Account in preparation of the financial statements in conformity with generally
accepted accounting principles.
A. Investment Valuation - The investments in the Funds are stated at market
value which is the net asset value of each of the respective series as
determined at the close of business on the last working day of the period
by the Fund.
B. Accounting for Investments - Investment transactions are accounted for on
the date the investments are purchased or sold. Dividend income is recorded
on the ex-dividend date.
C. Federal Income Taxes - The Company is taxed under federal law as a life
insurance company. The Account is part of the Company's total operations
and is not taxed separately. Under existing federal law, no taxes are
payable on investment income and realized capital gains of the Account.
D. The preparation of the accompanying financial statements required
management to make estimates and assumptions that affect the reported
values of assets and liabilities as of December 31, 1995 and the reported
amounts from operations and policy transactions during 1995 and 1994.
Actual results could differ from those estimates.
3. Contract Charges
Daily charges for mortality and expense risks assumed by the Company are
assessed through the daily unit value calculation on all contracts and are
equivalent on an annual basis to 1.25% of the value of the contracts.
Daily charges for administrative expenses are assessed through the daily unit
value calculation on all contracts issued subsequent to August 9, 1993 (i.e.,
Variable Annuity II contracts) and are equivalent on an annual basis to 0.15% of
the value of the contracts. In addition, an annual administrative expense charge
of $30 is assessed against each contract on its anniversary date by surrendering
units.
The contracts provide that in the event that a contract owner withdraws all or a
portion of the contract value within six contract years there will be assessed a
deferred sales charge. The deferred sales charge is based on a table of charges,
of which the maximum charge is currently 6% of the contract value subject to a
maximum of 8.5% of purchase payments.
Certain states impose premium taxes upon contracts. The Company intends to
advance premium taxes due until the contract is surrendered or annuitized.
4
<PAGE>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (Continued)
4. Purchases of Investments
For the years ended December 31, 1995 and December 31, 1994, investment activity
in the Fund was as follows:
1995 1994
---------------------- -----------------------
Cost of Proceeds Cost of Proceeds
Shares of Purchases From Sales Purchases From Sales
- --------- ---------- ---------- ---------- ----------
Delaware Group Premium Fund:
Equity/Income Series ........ $ 596,351 $1,316,713 $1,253,381 $5,466,683
High Yield Series ........... 304,130 431,150 792,991 1,075,966
Capital Reserves Series ..... 159,962 234,384 285,585 634,302
Multiple Strategy Series .... 192,331 887,191 273,473 1,212,281
Money Market Series ......... 1,306,247 1,168,459 1,479,434 1,774,870
Growth Series ............... 586,757 1,227,851 404,016 2,172,675
5. Net Increase in Accumulation Units
For the year ended December 31, 1995, transactions in accumulation units of the
Account were as follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Equity/ High Capital Multiple Money
Income Yield Reserves Strategy Market Growth
Series Series Series Series Series Series
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
VARIABLE ANNUITY
Units Purchased ............................... -- -- -- -- -- --
Units Withdrawn ............................... (59,214.45) (4,034.47) (8,166.69) (18,928.87) (23,801.32) (54,527.62)
Units Transferred Between Funds ............... (6,451.32) (9,256.07) (3,342.39) (7,439.27) 26,266.13 5,578.91
Net Units Transferred From (To) AI Life ....... -- -- -- (5,640.00) -- --
----------- ---------- ----------- ----------- ---------- -----------
Net Increase (Decrease) ....................... (65,665.77) (13,290.54) (11,509.08) (32,008.14) 2,464.81 (48,948.71)
Units, at Beginning of the Year ............... 463,477.31 73,348.60 115,091.30 159,255.09 78,278.57 416,499.98
----------- ---------- ----------- ----------- ---------- -----------
Units, at End of the Year ..................... 397,811.54 60,058.06 103,582.22 127,246.95 80,743.38 367,551.27
=========== ========== =========== =========== ========== ===========
Unit Value at December 31, 1995 ............... $ 18.79 $ 18.42 $ 15.30 $ 21.23 $ 13.23 $ 14.83
=========== ========== =========== =========== ========== ===========
VARIABLE ANNUITY II
Units Purchased ............................... 5,159.41 -- -- 1,734.33 9,292.12 --
Units Withdrawn ............................... (312.32) (2.73) -- (105.93) -- --
Units Transferred Between Funds ............... 660.40 686.08 738.99 682.56 (2,995.64) --
----------- ---------- ----------- ----------- ---------- -----------
Net Increase (Decrease) ....................... 5,507.49 683.35 738.99 2,310.96 6,296.48 --
Units, at Beginning of the Year ............... -- 497.00 -- -- -- --
----------- ---------- ----------- ----------- ---------- -----------
Units, at End of the Year ..................... 5,507.49 1,180.35 738.99 2,310.96 6,296.48 --
=========== ========== =========== =========== ========== ===========
Unit Value at December 31, 1995 ............... $ 12.44 $ 11.39 $ 10.58 $ 11.96 $ 10.27 $ 10.00
=========== ========== =========== =========== ========== ===========
</TABLE>
5
<PAGE>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contract Owners of
American International Life Assurance Company
of New York
Variable Account A
We have audited the accompanying statements of assets and liabilities of
American International Life Assurance Company of New York Variable Account A
(the "Account") comprising the Equity/Income, High Yield, Capital Reserves,
Multiple Strategy, Money Market and Growth Subaccounts, as of December 31, 1995,
and the related statement of operations for the year then ended, and the
statement of changes in net assets for each of the two years in the period then
ended. These financial statements are the responsibility of the management of
the Variable Account A. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards 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. Our procedures included
confirmation of investments held at December 31, 1995 by correspondence with the
transfer agent. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of American International Life
Assurance Company of New York Variable Account A as of December 31, 1995, and
the results of its operations for the year then ended, and the changes in its
net assets for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
February 19, 1996
