THE ALLIANCE GALLERY
Annual Report to Contract Owners
American International Life Assurance Company of New York
Variable Account A
Alliance Variable Products Series Fund, Inc.
December 31, 1995
<PAGE>
<TABLE>
<CAPTION>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
STATEMENT OF ASSETS AND LIABILITIES
Assets:
<S> <C> <C> <C>
Investments at Market Value:
Alliance Variable Products Series Fund, Inc.: Shares Cost
-------------- -------------
Money Market Portfolio ................................... 5,913,989.000 $ 5,913,989 $ 5,913,989
Premier Growth Portfolio ................................. 391,023.860 6,336,648 6,960,224
Growth & Income Portfolio ................................ 523,555.400 7,251,710 8,266,939
International Portfolio .................................. 213,085.910 2,818,862 2,998,118
Short-Term Multi-Market Portfolio ........................ 77,816.920 806,355 823,302
Global Bond Portfolio .................................... 80,131.190 863,593 973,594
U.S Government/High Grade Securities Portfolio ........... 385,825.483 4,148,111 4,498,725
Global Dollar Government Portfolio ....................... 15,985.410 162,959 191,025
North American Government Portfolio ...................... 95,687.440 913,275 1,002,798
Utility Income Portfolio ................................. 104,741.390 1,162,178 1,257,944
Conservative Investors Portfolio ......................... 161,986.420 1,811,171 1,904,960
Growth Investors Portfolio ............................... 61,846.600 693,410 734,120
Growth Portfolio ......................................... 766,068.790 9,766,208 10,901,160
Total Return Portfolio ................................... 112,596.170 1,341,148 1,441,231
Worldwide Privatization Portfolio ........................ 61,844.200 665,270 690,801
----------- -----------
Total Investments ........................................ $44,654,887 48,558,930
Dividends Receivable ....................................... 21,941
-----------
Total Assets ......................................... $48,580,871
===========
Liabilities:
Payable to American International Life
Assurance Company of New York ............................ $ 26,735
Equity:
Contract Owners' Equity .................................... 48,554,136
-----------
Total Liabilities and Equity ......................... $48,580,871
===========
</TABLE>
See Notes to Financial Statements
1
<PAGE>
<TABLE>
<CAPTION>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
STATEMENT OF OPERATIONS
For the Year Ended December 31, 1995
Money Premier Growth & Inter-
Market Growth Income national
Total Portfolio Portfolio Portfolio Portfolio
----- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Investment Income (Loss):
Dividends ........................ $ 382,857 $ 196,937 $ 14,734 $ 84,710 $ 11,131
Expenses:
Mortality & Expense Risk Fees .. 316,207 51,459 39,595 56,534 26,650
Daily Administrative Charges ... 14,350 1,985 1,908 2,327 937
----------- ----------- ----------- ----------- -----------
Net Investment Income (Loss) . 52,300 143,493 (26,769) 25,849 (16,456)
----------- ----------- ----------- ----------- -----------
Realized and Unrealized Gain (Loss)
on Investments:
Realized Gain (Loss) on Investment
Activity ....................... 438,752 -- 206,646 179,555 26,266
Change in Unrealized Appreciation
(Depreciation) ................. 4,059,714 -- 631,962 1,035,975 194,742
----------- ----------- ----------- ----------- -----------
Net Gain (Loss) on Investments . 4,498,466 -- 838,608 1,215,530 221,008
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting From Operations ........ $ 4,550,766 $ 143,493 $ 811,839 $ 1,241,379 $ 204,552
=========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Short-Term Global U.S. Gov't Global N.Amer.
Multi-Market Bond High Grd Dollar Gov't Gov't
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Investment Income (Loss):
Dividends ........................ $ -- $ 4,268 $ 36,715 $ 1,684 $ 22,560
Expenses:
Mortality & Expense Risk Fees .. 4,021 6,976 30,640 1,592 10,584
Daily Administrative Charges ... 194 288 1,365 56 323
----------- ----------- ----------- ----------- -----------
Net Investment Income (Loss) . (4,215) (2,996) 4,710 36 11,653
----------- ----------- ----------- ----------- -----------
Realized and Unrealized Gain (Loss)
on Investments:
Realized Gain (Loss) on Investment
Activity ....................... (3,483) (247) 18,645 1,659 (33,120)
Change in Unrealized Appreciation
(Depreciation) ................. 30,769 114,189 362,005 28,993 183,345
----------- ----------- ----------- ----------- -----------
Net Gain (Loss) on Investments . 27,286 113,942 380,650 30,652 150,225
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting From Operations ........ $ 23,071 $ 110,946 $ 385,360 $ 30,688 $ 161,878
=========== =========== =========== =========== ===========
<CAPTION>
Utility Conservative Growth Total Worldwide
Income Investors Investors Growth Return Privatization
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment Income (Loss):
Dividends ........................ $ 4,260 $ 509 $ 101 $ 2,452 $ 2,111 $ 685
Expenses:
Mortality & Expense Risk Fees .. 7,310 7,610 3,205 59,093 6,691 4,247
Daily Administrative Charges ... 350 531 206 3,250 415 215
----------- ----------- ----------- ----------- ----------- -----------
Net Investment Income (Loss) . (3,400) (7,632) (3,310) (59,891) (4,995) (3,777)
----------- ----------- ----------- ----------- ----------- -----------
Realized and Unrealized Gain (Loss)
on Investments:
Realized Gain (Loss) on Investment
Activity ....................... 8,865 7,540 3,354 19,182 1,861 2,029
Change in Unrealized Appreciation
(Depreciation) ................. 97,317 93,187 40,929 1,120,763 100,209 25,329
----------- ----------- ----------- ----------- ----------- -----------
Net Gain (Loss) on Investments . 106,182 100,727 44,283 1,139,945 102,070 27,358
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting From Operations ........ $ 102,782 $ 93,095 $ 40,973 $ 1,080,054 $ 97,075 $ 23,581
=========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
2-3
<PAGE>
<TABLE>
<CAPTION>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended December 31, 1995 and December 31, 1994
1995
Money Premier Growth & Inter-
Market Growth Income national
Total Portfolio Portfolio Portfolio Portfolio
----- --------- --------- --------- ---------
Increase (Decrease) in Net Assets
<S> <C> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) .............. $ 52,300 $ 143,493 $ (26,769) $ 25,849 $ (16,456)
Realized Gain (Loss) on Investment Activity 438,752 -- 206,646 179,555 26,266
Change in Unrealized Appreciation
(Depreciation) of Investments ........... 4,059,714 -- 631,962 1,035,975 194,742
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Net Assets
Resulting from Operations ................. 4,550,766 143,493 811,839 1,241,379 204,552
------------ ------------ ------------ ------------ ------------
Capital Transactions:
Contract Deposits ......................... 37,156,227 15,453,447 3,643,200 3,834,979 1,225,656
Transfers Between Funds ................... -- (9,732,102) 1,447,409 1,285,496 304,156
Transfers From (To) AI Life ............... (1,437,541) -- -- -- --
Administrative Charges .................... (9,296) (1,236) (977) (1,208) (1,683)
Contract Withdrawals ...................... (1,174,004) (602,457) (49,333) (128,790) (112,438)
Deferred Sales Charges .................... (39,979) (23,450) (1,553) (2,412) (3,737)
Death Benefits ............................ (145,741) (336) (42,673) (37,226) --
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... 34,349,666 3,648,920 4,996,073 4,950,839 1,411,954
------------ ------------ ------------ ------------ ------------
Total Increase (Decrease) in Net Assets ..... 38,900,432 3,792,413 5,807,912 6,192,218 1,616,506
Net Assets, at Beginning of Year ............ 9,653,704 2,115,416 1,152,825 2,074,756 1,381,633
------------ ------------ ------------ ------------ ------------
Net Assets, at End of Year .................. $ 48,554,136 $ 5,907,829 $ 6,960,737 $ 8,266,974 $ 2,998,139
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
1995
Short-Term Global U.S. Gov't Global N.Amer.
Multi-Market Bond High Grd Dollar Gov't Gov't
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- ---------
Increase (Decrease) in Net Assets
Operations:
Net Investment Income (Loss) .............. $ (4,215) $ (2,996) $ 4,710 $ 36 $ 11,653
Realized Gain (Loss) on Investment Activity (3,483) (247) 18,645 1,659 (33,120)
Change in Unrealized Appreciation
(Depreciation) of Investments ........... 30,769 114,189 362,005 28,993 183,345
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Net Assets
Resulting from Operations ................. 23,071 110,946 385,360 30,688 161,878
------------ ------------ ------------ ------------ ------------
Capital Transactions:
Contract Deposits ......................... 784,239 290,274 2,199,892 114,973 498,520
Transfers Between Funds ................... (135,351) 326,218 1,240,474 (7,100) (353,701)
Transfers From (To) AI Life ............... -- -- -- -- --
Administrative Charges .................... (63) (162) (484) (29) (1,048)
Contract Withdrawals ...................... -- (29,399) (25,751) (5,466) (45,276)
Deferred Sales Charges .................... -- (692) (63) -- (1,770)
Death Benefits ............................ -- -- (33,092) -- (32,414)
------------ ------------ ------------ ------------ ------------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... 648,825 586,239 3,380,976 102,378 64,311
------------ ------------ ------------ ------------ ------------
Total Increase (Decrease) in Net Assets ..... 671,896 697,185 3,766,336 133,066 226,189
Net Assets, at Beginning of Year ............ 151,407 276,373 733,222 57,960 776,586
------------ ------------ ------------ ------------ ------------
Net Assets, at End of Year .................. $ 823,303 $ 973,558 $ 4,499,558 $ 191,026 $ 1,002,775
============ ============ ============ ============ ============
<CAPTION>
1995
Utility onservative Growth Total Worldwide
Income Investors Investors Growth Return Privatization
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- ---------
Increase (Decrease) in Net Assets
<S> <C> <C> <C> <C> <C> <C>
Operations:
Net Investment Income (Loss) .............. $ (3,400) $ (7,632) $ (3,310) $ (59,891) $ (4,995) $ (3,777)
Realized Gain (Loss) on Investment Activity 8,865 7,540 3,354 19,182 1,861 2,029
Change in Unrealized Appreciation
(Depreciation) of Investments ........... 97,317 93,187 40,929 1,120,763 100,209 25,329
---------- ---------- ---------- ----------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting from Operations ................. 102,782 93,095 40,973 1,080,054 97,075 23,581
---------- ---------- ---------- ----------- ---------- ----------
Capital Transactions:
Contract Deposits ......................... 735,782 1,295,707 268,883 5,741,124 793,257 276,294
Transfers Between Funds ................... 298,196 464,257 397,035 3,625,601 509,809 329,603
Transfers From (To) AI Life ............... -- 7,405 -- -- --
Administrative Charges .................... (117) (102) (40) (1,999) (68) (80)
Contract Withdrawals ...................... (11,410) (17,859) (11,434) (125,673) (6,235) (2,483)
Deferred Sales Charges .................... (232) (119) (22) (5,814) (84) (31)
Death Benefits ............................ -- -- -- -- -- --
---------- ---------- ---------- ----------- ---------- ----------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... 1,022,219 1,741,884 661,827 9,233,239 1,296,679 603,303
---------- ---------- ---------- ----------- ---------- ----------
Total Increase (Decrease) in Net Assets ..... 1,125,001 1,834,979 702,800 10,313,293 1,393,754 626,884
Net Assets, at Beginning of Year ............ 132,905 69,994 31,321 587,905 47,480 63,921
---------- ---------- ---------- ----------- ---------- ----------
Net Assets, at End of Year .................. $1,257,906 $1,904,973 $ 734,121 $10,901,198 $1,441,234 $ 690,805
========== ========== ========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
1994
Money Growth & Inter-
Market Growth Income national
Total Portfolio Portfolio Portfolio Portfolio
----- --------- --------- --------- ---------
Increase (Decrease) in Net Assets
Operations:
<S> <C> <C> <C> <C> <C>
Net Investment Income (Loss) .............. $ 18,265 $ 14,414 $ (6,357) $ 9,350 $ (4,738)
Realized Gain (Loss) on Investment Activity 20,415 -- 5,524 10,503 8,741
Change in Unrealized Appreciation
(Depreciation) of Investments ........... (189,962) -- (18,043) (38,575) (20,545)
----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Operations ................. (151,282) 14,414 (18,876) (18,722) (16,542)
----------- ----------- -----------
Capital Transactions:
Contract Deposits ......................... 8,637,099 3,018,765 673,722 1,428,657 991,291
Transfers Between Funds ................... -- (898,617) 109,455 265,001 170,842
Administrative Charges .................... (954) (49) (201) (350) (114)
Contract Withdrawals ...................... (126,914) (35,111) (3,750) (41,074) (3,802)
Deferred Sales Charges .................... (1,915) -- -- (703) --
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... 8,507,316 2,084,988 779,226 1,651,531 1,158,217
----------- ----------- ----------- ----------- -----------
Total Increase (Decrease) in Net Assets ..... 8,356,034 2,099,402 760,350 1,632,809 1,141,675
Net Assets, at Beginning of Year ............ 1,297,670 16,014 392,475 441,947 239,958
----------- ----------- ----------- ----------- -----------
Net Assets, at End of Year .................. $ 9,653,704 $ 2,115,416 $ 1,152,825 $ 2,074,756 $ 1,381,633
=========== =========== =========== =========== ===========
<CAPTION>
1994
Short-Term Global U.S. Gov't Global N.Amer.
Multi-Market Bond High Grd Dollar Gov't Gov't
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- ---------
Increase (Decrease) in Net Assets
Operations:
Net Investment Income (Loss) .............. $ 1,978 $ 2,296 $ 5,673 $ (132) $ (2,182)
Realized Gain (Loss) on Investment Activity (430) (2,130) (1,938) -- 151
Change in Unrealized Appreciation
(Depreciation) of Investments ........... (14,865) (4,275) (11,904) (927) (93,816)
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Operations ................. (13,317) (4,118) (8,169) (1,059) (95,847)
----------- ----------- ----------- ----------- -----------
Capital Transactions:
Contract Deposits ......................... 94,714 212,264 637,687 59,220 847,370
Transfers Between Funds ................... (478) 20,738 58,085 -- 25,263
Administrative Charges .................... (33) (84) (123) -- --
Contract Withdrawals ...................... (60) (11,067) (31,101) (201) (200)
Deferred Sales Charges .................... -- (670) (542) -- --
----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... 94,143 221,181 664,006 59,019 872,433
----------- ----------- ----------- ----------- -----------
Total Increase (Decrease) in Net Assets ..... 80,826 217,063 655,837 57,960 776,586
Net Assets, at Beginning of Year ............ 70,581 59,310 77,385 -- --
Net Assets, at End of Year .................. $ 151,407 $ 276,373 $ 733,222 $ 57,960 $ 776,586
=========== =========== =========== =========== ===========
<CAPTION>
1994
Utility Conservative Growth Total Worldwide
Income Investors Investors Growth Return Privatization
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- ---------
Increase (Decrease) in Net Assets
Operations:
<S> <C> <C> <C> <C> <C> <C>
Net Investment Income (Loss) .............. $ (458) $ (152) $ (58) $ (1,232) $ (78) $ (59)
Realized Gain (Loss) on Investment Activity (1) -- (1) 6 (1) --
Change in Unrealized Appreciation
(Depreciation) of Investments ........... (1,551) 492 (219) 14,189 (125) 202
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Operations ................. (2,010) 340 (278) 12,963 (204) 143
----------- ----------- ----------- ----------- ----------- -----------
Capital Transactions:
Contract Deposits ......................... 89,098 45,002 25,250 436,832 19,298 57,929
Transfers Between Funds ................... 46,365 24,652 6,349 138,110 28,386 5,849
Administrative Charges .................... -- -- -- -- -- --
Contract Withdrawals ...................... (548) -- -- -- -- --
Deferred Sales Charges .................... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Increase (Decrease) in Net Assets
Resulting from Capital Transactions ..... 134,915 69,654 31,599 574,942 47,684 63,778
----------- ----------- ----------- ----------- ----------- -----------
Total Increase (Decrease) in Net Assets ..... 132,905 69,994 31,321 587,905 47,480 63,921
Net Assets, at Beginning of Year ............ -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net Assets, at End of Year .................. $ 132,905 $ 69,994 $ 31,321 $ 587,905 $ 47,480 $ 63,921
=========== =========== =========== =========== =========== ===========
</TABLE>
See Notes to Financial Statements
4-5
<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 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 Alliance Variable Products Series Fund, Inc. (the "Fund"). The Fund
consists of fifteen series: Money Market Portfolio; Short-Term Multi-Market
Portfolio; Premier Growth Portfolio (formerly the Growth Portfolio); Growth and
Income Portfolio; International Portfolio; Global Bond Portfolio;
U.S.Government/High Grade Securities Portfolio; Global Dollar Government
Portfolio; North American Government Portfolio; Utility Income Portfolio;
Conservative Investors Portfolio; Growth Investors Portfolio; Growth Portfolio;
Total Return Portfolio and World Privatization Portfolio. The Account invests in
shares of other funds which are not available to these contracts.
On April 16, 1992, the initial investment was made in the Fund.
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 business 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.
6
<PAGE>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (continued)
3. Contract Charges
Daily charges for mortality and expense risks assumed by the Company are
assessed through the daily unit value calculation 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 April 1, 1994 (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 they will be assessed a
deferred sales charge. The deferred sales charge is based on a table of charges,
of which the maximum charge is 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.
7
<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 year ended December 31, 1995 investment activity in the Fund was as
follows:
Cost of Proceeds
Shares of Purchases From Sales
--------- --------- ----------
Alliance Variable Product Series Fund, Inc.:
Money Market Portfolio ........................... $12,870,122 $ 9,111,196
Premier Growth Portfolio ......................... 5,767,441 808,729
Growth & Income Portfolio ........................ 5,995,161 1,028,929
International Portfolio .......................... 1,917,772 532,939
Short-Term Multi-Market Portfolio ................ 883,446 239,035
Global Bond Portfolio ............................ 609,386 26,318
U.S. Government/High Grade Securities Portfolio .. 3,715,608 331,256
Global Dollar Government Portfolio ............... 144,679 42,307
North American Government Portfolio .............. 662,338 587,096
Utility Income Portfolio ......................... 1,085,769 67,034
Conservative Investors Portfolio ................. 1,902,672 168,602
Growth Investors Portfolio ....................... 681,600 23,110
Growth Portfolio ................................. 9,261,087 88,309
Total Return Portfolio ........................... 1,309,428 17,782
Worldwide Privatization Portfolio ................ 623,657 24,175
For the year ended December 31, 1994 investment activity in the Fund was as
follows:
Cost of Proceeds
Shares of Purchases From Sales
--------- --------- ----------
Alliance Variable Product Series Fund, Inc.:
Money Market Portfolio ............................. $2,951,824 $ 844,456
Premier Growth Portfolio ........................... 839,549 56,911
Growth & Income Portfolio .......................... 1,774,507 102,841
International Portfolio ............................ 1,258,929 95,363
Short-Term Multi-Market Portfolio .................. 146,207 49,865
Global Bond Portfolio .............................. 247,971 24,290
U.S. Government/High Grade Securities Portfolio .... 717,751 47,573
Global Dollar Government Portfolio ................. 59,220 293
North American Government Portfolio ................ 885,222 14,219
Utility Income Portfolio ........................... 135,356 775
Conservative Investors Portfolio ................... 69,652 90
Growth Investors Portfolio ......................... 31,598 32
Growth Portfolio ................................... 574,622 382
Total Return Portfolio ............................. 47,684 43
Worldwide Privatization Portfolio .................. 63,778 19
8
<PAGE>
<TABLE>
<CAPTION>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (continued)
5. Net Increase (Decrease) in Accumulation Units
For the year ended December 31, 1995, transactions in accumulation units of the
account were as follows:
Money Premier Growth & Inter- Short-Term
Market Growth Income national Multi-Market
Series Series Series Series Series
-------- -------- -------- -------- --------
VARIABLE ANNUITY
<S> <C> <C> <C> <C> <C>
Units Purchased.......................... 1,474,507.45 255,335.90 275,156.25 106,146.66 80,290.48
Units Withdrawn.......................... (59,780.26) (6,829.75) (12,306.52) (10,060.65) (6.30)
Units Transferred Between Funds.......... (929,873.13) 64,045.33 60,572.38 9,551.85 (14,774.17)
Units Transferred From (To) AI Life...... (139,332.95) -- -- -- --
----------- ---------- ---------- ---------- ---------
Net Increase (Decrease).................. 345,521.11 312,551.48 323,422.11 105,637.86 65,510.01
Units, at Beginning of the Year.......... 206,034.73 108,111.20 179,245.69 122,616.95 15,915.04
----------- ---------- ---------- ---------- ---------
Units, at End of the Year................ 551,555.84 420,662.68 502,667.80 228,254.81 81,425.05
=========== ========== ========== ========== =========
Unit Value at December 31, 1995.......... $ 10.64 $ 15.25 $ 15.52 $ 12.22 $ 10.03
=========== ========== ========== ========== =========
<CAPTION>
Global U.S. Gov't Global N.Amer. Utility
Bond High Grd Dollar Gov't Gov't Income
Series Series Series Series Series
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Units Purchased.......................... 25,508.98 206,884.09 11,512.25 51,797.75 68,523.56
Units Withdrawn.......................... (2,036.29) (5,262.62) (343.45) (8,644.23) (1,062.80)
Units Transferred Between Funds.......... 25,325.29 112,980.43 (955.35) (37,286.74) 21,891.91
Units Transferred From (To) AI Life...... -- -- -- -- --
----------- ---------- ---------- ---------- ---------
Net Increase (Decrease).................. 48,797.98 314,601.90 10,213.45 5,866.78 89,352.67
Units, at Beginning of the Period........ 27,806.30 75,881.31 5,958.18 89,164.68 13,690.19
----------- ---------- ---------- ---------- ---------
Units, at Beginning of the Year.......... 76,604.28 390,483.21 16,171.63 95,031.46 103,042.86
=========== ========== ========== ========== =========
Units, at End of the Year................
Unit Value at December 31, 1995.......... $ 12.24 $ 11.38 $ 11.81 $ 10.55 $ 11.64
=========== ========== ========== ========== =========
<CAPTION>
Conservative Growth Total Worldwide
Investors Investors Growth Return Privatization
Series Series Series Series Series
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Units Purchased.......................... 117,399.46 24,345.73 451,869.60 71,975.09 25,896.57
Units Withdrawn.......................... (1,679.57) (334.21) (12,157.07) (556.36) (262.73)
Units Transferred Between Funds.......... 41,703.20 35,565.66 280,735.13 44,804.97 30,777.77
Units Transferred From (To) AI Life...... -- -- 554.38 -- --
----------- ---------- ---------- ---------- ---------
Net Increase (Decrease).................. 157,423.09 59,577.18 721,002.04 116,223.70 56,411.61
Units, at Beginning of the Year.......... 6,977.55 3,185.25 56,106.84 4,871.12 6,357.69
----------- ---------- ---------- ---------- ---------
Units, at End of the Year................ 164,400.64 62,762.43 777,108.88 121,094.82 62,769.30
=========== ========== ========== ========== =========
Unit Value at December 31, 1995.......... $ 11.59 $ 11.70 $ 13.99 $ 11.90 $ 11.01
=========== ========== ========== ========== =========
</TABLE>
9
<PAGE>
<TABLE>
<CAPTION>
AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY
OF NEW YORK (AI LIFE)
VARIABLE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS (continued)
Money Premier Growth & Inter- Short-Term
Market Growth Income national Multi-Market
Series Series Series Series Series
-------- -------- -------- -------- --------
VARIABLE ANNUITY II
<S> <C> <C> <C> <C> <C>
Units Purchased.......................... -- -- -- -- --
Units Withdrawn.......................... -- (61.04) (57.17) (59.31) --
Units Transferred Between Funds.......... 3,518.68 35,795.31 30,186.10 17,119.79 679.80
Units Transferred From (To) AI Life...... -- -- -- -- --
-------- --------- --------- --------- -------
Net Increase (Decrease).................. 3,518.68 35,734.27 30,128.93 17,060.48 679.80
Units, at Beginning of the Year.......... -- -- -- -- --
-------- --------- --------- --------- -------
Units, at End of the Year................ 3,518.68 35,734.27 30,128.93 17,060.48 679.80
======== ========= ======== ======== ======
Unit Value at December 31, 1995.......... $10.65 $15.26 $15.52 $12.23 $10.03
======== ========= ========= ========= =======
<CAPTION>
Global U.S. Gov't Global N.Amer. Utility
Bond High Grd Dollar Gov't Gov't Income
Series Series Series Series Series
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Units Purchased.......................... -- -- -- -- --
Units Withdrawn.......................... (0.47) (58.92) -- -- (1.29)
Units Transferred Between Funds.......... 2,930.50 5,054.53 -- -- 5,017.70
Units Transferred From (To) AI Life...... -- -- -- -- --
-------- -------- -------- -------- -------
Net Increase (Decrease).................. 2,930.03 4,995.61 -- -- 5,016.41
Units, at Beginning of the Period........ -- -- -- -- --
-------- -------- -------- -------- -------
Units, at Beginning of the Year.......... 2,930.03 4,995.61 -- -- 5,016.41
======== ======== ======== ======== =======
Units, at End of the Year ...............
Unit Value at December 31, 1995.......... $12.25 $11.38 $11.13 $9.84 $11.64
======== ======== ======== ======== =======
<CAPTION>
Conservative Growth Total Worldwide
Investors Investors Growth Return Privatization
Series Series Series Series Series
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Units Purchased.......................... -- -- -- -- --
Units Withdrawn.......................... -- -- -- -- --
Units Transferred Between Funds.......... -- -- 2,064.78 -- --
Units Transferred From (To) AI Life...... -- -- -- -- --
------- -------- -------- -------- ------
Net Increase (Decrease).................. -- -- 2,064.78 -- --
Units, at Beginning of the Year.......... -- -- -- -- --
------- -------- -------- -------- ------
Units, at End of the Year................ -- -- 2,064.78 -- --
======= ======== ======== ======== ======
Unit Value at December 31, 1995.......... $11.19 $11.34 $14.00 $11.39 $11.01
======= ======== ======== ======== ======
</TABLE>
10
<PAGE>
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 Life Assurance Company of New York Variable Account A (the "Account")
comprising the Money Market, Premier Growth, Growth and Income, International,
Short-Term Multi-Market, Global Bond, U.S. Government/High Grade Securities,
Global Dollar Government, North American Government, Utility Income,
Conservative Investors, Growth Investors, Growth, Total Return, and Worldwide
Privatization Subaccounts, as of December 31, 1995, an 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 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
11
<PAGE>
American International Life Assurance
Company of New York
80 Pine Street
New York, NY 10005
