GE LIFE & ANNUITY Separate Account II
Financial Statements
For the six months ended June 30, 1999
(Unaudited)
<PAGE>
GE LIFE & ANNUITY Separate Account II
Table of Contents
For the six months ended June 30, 1999
- ------------------------------------------------------------------------------
Page
Financial Statements:
(Unaudited)
Statements of Assets and Liabilities..................................1
Statements of Operations..............................................6
Statements of Changes in Net Assets..................................11
Notes to Financial Statements............................................16
(Unaudited)
- ------------------------------------------------------------------------------
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================================
GE Investments Funds, Inc.
----------------------------------------------------------------------------
S&P 500 Money Total International Real Estate Global
Index Market Return Equity Securities Income
Assets Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc.,
at fair value (note 2):
S&P 500 Index Fund (269,481 shares;
cost - $5,785,752) $ 7,160,104 - - - - -
Money Market Fund (4,710,634 shares;
cost - $4,710,634) - 4,710,634 - - - -
Total Return Portolio (271,326 shares;
cost - $4,105,370) - - 4,246,246 - - -
International Equity Fund (13,861 shares;
cost - $164,650) - - - 174,644 - -
Real Estate Securities Fund (33,853 shares;
cost - $447,254) - - - - 426,883 -
Global Income Fund (3,997 shares;
cost - $40,912) - - - - - 39,050
Value Equity Fund (15,781 shares;
cost - $219,342) - - - - - -
Income Fund (35,574 shares; cost $434,098) - - - - - -
U.S. Equity Fund (3,516 shares; cost $121,418) - - - - - -
Premier Equity Growth Fund (3 shares; cost $229) - - - - - -
Receivable from affiliate (note 3) 90 1,078 - 5 - -
Receivable for units sold 5,195 198,247 830 2 43 11
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 7,165,389 4,909,959 4,247,076 174,651 426,926 39,061
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 4,561 21,919 18,365 1,209 1,252 960
Payable for units withdrawn - 16,309 - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,561 38,228 18,365 1,209 1,252 960
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 7,160,828 4,871,731 4,228,711 173,442 425,674 38,101
====================================================================================================================================
Outstanding units: Type I (note 2) 88,829 128,361 106,753 7,300 17,973 2,885
====================================================================================================================================
Net asset value per unit: Type I 58.77 17.35 37.81 15.63 16.56 10.71
====================================================================================================================================
Outstanding units: Type II (note 2) 33,016 152,430 5,089 3,797 7,732 672
====================================================================================================================================
Net asset value per unit: Type II 58.77 17.35 37.81 15.63 16.56 10.71
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=============================================================================================================
GE Investments Funds, Inc.
-----------------------------------------------------
Value U.S. Premier
Equity Income Equity Growth Equity
Assets Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc.,
at fair value (note 2):
S&P 500 Index Fund (269,481 shares;
cost - $5,785,752) - - - -
Money Market Fund (4,710,634 shares;
cost - $4,710,634) - - - -
Total Return Portolio (271,326 shares;
cost - $4,105,370) - - - -
International Equity Fund (13,861 shares;
cost - $164,650) - - - -
Real Estate Securities Fund (33,853 shares;
cost - $447,254) - - - -
Global Income Fund (3,997 shares;
cost - $40,912) - - - -
Value Equity Fund (15,781 shares;
cost - $219,342) 263,390 - - -
Income Fund (35,574 shares; cost $434,098) - 430,797 - -
U.S. Equity Fund (3,516 shares; cost $121,418) - - 134,431 -
Premier Equity Growth Fund (3 shares; cost $229) - - - 238
Receivable from affiliate (note 3) - - 9 -
Receivable for units sold 4,055 4 75 -
- -------------------------------------------------------------------------------------------------------------
Total assets 267,445 430,801 134,515 238
=============================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,456 3,927 53 -
Payable for units withdrawn 15 - - -
- -------------------------------------------------------------------------------------------------------------
Total liabilities 1,471 3,927 53 -
- -------------------------------------------------------------------------------------------------------------
Net assets 265,974 426,874 134,462 238
=============================================================================================================
Outstanding units: Type I (note 2) 7,493 40,364 48 -
=============================================================================================================
Net asset value per unit: Type I 17.13 10.50 12.18 10.44
=============================================================================================================
Outstanding units: Type II (note 2) 8,034 290 10,992 23
=============================================================================================================
Net asset value per unit: Type II 17.13 10.50 12.18 10.44
=============================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
1
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
================================================================================================================
Oppenheimer Variable Account Funds
-----------------------------------------------------------
Aggressive Capital High Multiple
Bond Growth Appreciation Income Strategies
Assets Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable
Account Funds, at fair value (note 2):
Bond Fund/VA (42,300 shares; cost - $499,$87) $486,450 - - - -
Aggressive Growth Fund/VA
(81,734 shares; cost - $3,178,148) - 4,434,091 - - -
Capital Appreciation Fund/VA (96,863 shares;
cost - $2,903,237) - - 3,947,159 - -
High Income Fund/VA (187,779 shares;
cost - $2,076,557) - - - 2,003,602 -
Multiple Strategies Fund/VA (56,007 shares;
cost - $877,024) - - - - 948,767
Investment in Goldman Sachs Variable Insurance
Trust Funds, at fair value (note 2):
Growth and Income Fund (1,320 shares;
cost - $13,822) - - - - -
Mid Cap Equity Fund (5,936 shares;
cost - $50,707) - - - - -
Investment in Salomon Brothers Variable
Series Funds, at fair value (note 2):
Strategic Bond Fund (206 shares;
cost - $2,064) - - - - -
Investors Fund (192 shares;
cost - $2,145) - - - - -
Total Return Fund (1 share;
cost - $9) - - - - -
Receivable from affiliate (note 3) - -
Receivable for units sold - 369 1,874 2,358 244
- ----------------------------------------------------------------------------------------------------------------
Total assets $486,450 4,434,460 3,949,033 2,005,960 949,011
================================================================================================================
Liabilities
- ----------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,427 3,361 2,416 1,652 1,430
- ----------------------------------------------------------------------------------------------------------------
Total liabilities 1,427 3,361 2,416 1,652 1,430
- ----------------------------------------------------------------------------------------------------------------
Net assets $485,023 4,431,099 3,946,617 2,004,308 947,581
================================================================================================================
Outstanding units: Type I (note 2) 17,942 77,441 59,886 52,509 24,867
================================================================================================================
Net asset value per unit: Type I 23.30 54.77 59.91 35.40 33.81
================================================================================================================
Outstanding units: Type II (note 2) 2,875 3,463 5,989 4,110 3,160
================================================================================================================
Net asset value per unit: Type II 23.30 54.77 59.91 35.40 33.81
================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=========================================================================================================================
Goldman Sachs Variable
Trust Salomon Brothers Variable Series Fund, Inc.
----------------------- -------------------------------------------
Growth and Mid Cap Strategic Total
Income Value Bond Investors Return
Assets Fund Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable
Account Funds, at fair value (note 2):
Bond Fund/VA (42,300 shares; cost - $499,$87) - - - - -
Aggressive Growth Fund/VA
(81,734 shares; cost - $3,178,148) - - - - -
Capital Appreciation Fund/VA (96,863 shares;
cost - $2,903,237) - - - - -
High Income Fund/VA (187,779 shares;
cost - $2,076,557) - - - - -
Multiple Strategies Fund/VA (56,007 shares;
cost - $877,024) - - - - -
Investment in Goldman Sachs Variable Insurance
Trust Funds, at fair value (note 2):
Growth and Income Fund (1,320 shares;
cost - $13,822) 15,231 - - - -
Mid Cap Equity Fund (5,936 shares;
cost - $50,707) - 59,356 - - -
Investment in Salomon Brothers Variable
Series Funds, at fair value (note 2):
Strategic Bond Fund (206 shares;
cost - $2,064) - - 2,071 - -
Investors Fund (192 shares;
cost - $2,145) - - - 2,441 -
Total Return Fund (1 share;
cost - $9) - - - - 6
Receivable from affiliate (note 3) 2 16 - - -
Receivable for units sold - - - - -
- -------------------------------------------------------------------------------------------------------------------------
Total assets 15,233 59,372 2,071 2,441 6
=========================================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 6 23 1 1 -
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 6 23 1 1 -
- -------------------------------------------------------------------------------------------------------------------------
Net assets 15,227 59,349 2,070 2,440 6
=========================================================================================================================
Outstanding units: Type I (note 2) - 657 - 119 -
=========================================================================================================================
Net asset value per unit: Type I 9.78 9.99 10.14 13.97 11.16
=========================================================================================================================
Outstanding units: Type II (note 2) 1,557 5,284 204 56 1
=========================================================================================================================
Net asset value per unit: Type II 9.78 9.99 10.14 13.97 11.16
=========================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
2
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
==========================================================================================================================
Variable Insurance Products Fund Variable Insurance Products Fund II
----------------------------------- -------------------------------------
Equity Asset
Income Growth Overseas Manager Contrafund
Assets Portfolio Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products
Fund, at fair value (note 2):
Equity-Income Portfolio (269,489 shares;
cost - $5,956,825) $ 7,343,577 - - - -
Growth Portfolio (184,244 shares;
cost - $6,949,798) - 8,425,471 - - -
Overseas Portfolio (118,626 shares;
cost - $2,239,335) - - 2,467,419 - -
Investment in Variable Insurance Products
Fund II, at fair value (note 2):
Asset Manager Portfolio (272,556 shares;
cost - $4,330,845) - - - 4,821,509 -
Contrafund Portfolio (170,611 shares;
cost - $3,735,562) - - - - 4,452,956
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (41,138 shares;
cost - $616,987) - - - - -
Growth Opportunities Portfolio
17,004 shares; cost - $350,232) - - - - -
Receivable from affiliate (note 3) - - - -
Receivable for units sold 451 2,378 94 106 2,942
- --------------------------------------------------------------------------------------------------------------------------
Total assets $ 7,344,028 8,427,849 2,467,513 4,821,615 4,455,898
==========================================================================================================================
Liabilities
- --------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 5,985 4,759 1,863 2,927 4,085
- --------------------------------------------------------------------------------------------------------------------------
Total liabilities 5,985 4,759 1,863 2,927 4,085
- --------------------------------------------------------------------------------------------------------------------------
Net assets $ 7,338,043 8,423,090 2,465,650 4,818,688 4,451,813
==========================================================================================================================
Outstanding units: Type I (note 2) 138,024 118,571 82,166 155,911 120,741
==========================================================================================================================
Net asset value per unit: Type I 50.08 67.82 29.01 30.52 29.70
==========================================================================================================================
Outstanding units: Type II (note 2) 8,503 5,626 2,827 1,975 29,152
==========================================================================================================================
Net asset value per unit: Type II 50.08 67.82 29.01 30.52 29.70
==========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
====================================================================================
Variable Insurance Product Fund III
-----------------------------------
Growth & Growth
Income Opportunities
Assets Portfolio Portfolio
- ------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products
Fund, at fair value (note 2):
Equity-Income Portfolio (269,489 shares;
cost - $5,956,825) - -
Growth Portfolio (184,244 shares;
cost - $6,949,798) - -
Overseas Portfolio (118,626 shares;
cost - $2,239,335) - -
Investment in Variable Insurance Products
Fund II, at fair value (note 2):
Asset Manager Portfolio (272,556 shares;
cost - $4,330,845) - -
Contrafund Portfolio (170,611 shares;
cost - $3,735,562) - -
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (41,138 shares;
cost - $616,987) 703,456 -
Growth Opportunities Portfolio
17,004 shares; cost - $350,232) - 401,985
Receivable from affiliate (note 3) - -
Receivable for units sold 329 15
- ------------------------------------------------------------------------------------
Total assets 703,785 402,000
====================================================================================
Liabilities
- ------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,513 1,343
- ------------------------------------------------------------------------------------
Total liabilities 1,513 1,343
- ------------------------------------------------------------------------------------
Net assets 702,272 400,657
====================================================================================
Outstanding units: Type I (note 2) 19,047 17,510
====================================================================================
Net asset value per unit: Type I 17.19 16.20
====================================================================================
Outstanding units: Type II (note 2) 21,807 7,222
====================================================================================
Net asset value per unit: Type II 17.19 16.20
====================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
3
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
=========================================================================================================================
Federated Insurance Series Alger American Fund
--------------------------------------- ------------------------
American High Small
Leaders Income Bond Utility Capitalization Growth
Assets Fund II Fund II Fund II Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors
Insurance Series, at fair value (note 2):
American Leaders Fund II (21,170 shares;
cost - $437,380) $ 464,479 - - - -
High Income Bond Fund II (23,473 shares;
cost - $250,374) - 241,070 - - -
Utility Fund II (21,138 shares; cost - $276,248) - - 307,131 - -
Investment in Alger American, at fair value (note 2):
Small Capitalization Portfolio (37,292 shares;
cost - $1,564,694) - - - 1,625,186 -
Growth Portfolio (44,330 shares;
cost - $2,390,582) - - - - 2,475,399
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Large Cap Portfolio (7,282 shares;
cost - $101,393) - - - - -
PBHG Growth II Portfolio (7,205 shares;
cost - $77,870) - - - - -
Receivable from affiliate (note 3) - - 4 -
Receivable for units sold - 30 - 50 360
- -------------------------------------------------------------------------------------------------------------------------
Total assets $ 464,479 241,100 307,135 1,625,236 2,475,759
=========================================================================================================================
Liabilities
- -------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,402 1,185 659 2,492 2,155
Payable for units withdrawn - - - 158 622
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,402 1,185 659 2,650 2,777
=========================================================================================================================
Net assets $ 463,077 239,915 306,476 1,622,586 2,472,982
=========================================================================================================================
Outstanding units: Type I (note 2) 12,838 10,191 11,894 106,682 77,296
=========================================================================================================================
Net asset value per unit: Type I 19.08 15.98 19.86 13.92 23.04
=========================================================================================================================
Outstanding units: Type II (note 2) 11,432 4,822 3,538 9,883 30,038
=========================================================================================================================
Net asset value per unit: Type II 19.08 15.98 19.86 13.92 23.04
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
PBHG Insurance Series Fund, Inc.
--------------------------------
PBHG Large PBHG
Cap Growth Growth II
Assets Portfolio Portfolio
- ---------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors
Insurance Series, at fair value (note 2):
American Leaders Fund II (21,170 shares;
cost - $437,380) - -
High Income Bond Fund II (23,473 shares;
cost - $250,374) - -
Utility Fund II (21,138 shares; cost - $276,248) - -
Investment in Alger American, at fair value (note 2):
Small Capitalization Portfolio (37,292 shares;
cost - $1,564,694) - -
Growth Portfolio (44,330 shares;
cost - $2,390,582) - -
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Large Cap Portfolio (7,282 shares;
cost - $101,393) 120,445 -
PBHG Growth II Portfolio (7,205 shares;
cost - $77,870) - 104,833
Receivable from affiliate (note 3) - 8
Receivable for units sold 1 -
- ---------------------------------------------------------------------------------------
Total assets 120,446 104,841
=======================================================================================
Liabilities
- ---------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,412 1,469
Payable for units withdrawn - -
- ---------------------------------------------------------------------------------------
Total liabilities 1,412 1,469
=======================================================================================
Net assets 119,034 103,372
=======================================================================================
Outstanding units: Type I (note 2) 5,225 3,483
=======================================================================================
Net asset value per unit: Type I 16.29 14.33
=======================================================================================
Outstanding units: Type II (note 2) 2,082 3,731
=======================================================================================
Net asset value per unit: Type II 16.29 14.33
=======================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
4
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
===================================================================================================================
Janus Aspen Series
-----------------------------------------------------------------
Aggressive Worldwide Flexible
Growth Growth Growth Balanced Income
Portfolio Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series,
at fair value (note 2):
Aggressive Growth Portfolio (131,366 shares;
cost - $3,750,750) $ 4,547,880 - - - -
Growth Portfolio (157,065 shares;
cost - $3,129,683) - 4,286,309 - - -
Worldwide Growth Portfolio (190,886 shares;
cost - $4,721,231) - - 6,249,622 - -
Balanced Portfolio (72,923 shares;
cost - $1,433,058) - - - 1,819,432 -
Flexible Income Portfolio (15,420 shares;
cost - $185,940) - - - - 178,251
International Growth Portfolio (30,312 shares;
cost - $992,741) - - - - -
Capital Appreciation Portfolio (46,905 shares;
cost - $1,122,814) - - - - -
Receivable from affiliate (note 3) - - 28 - -
Receivable for units sold 994 - 2,953 870 -
- --------------------------------------------------------------------------------------------------------------------
Total assets $ 4,548,874 4,286,309 6,252,603 1,820,302 178,251
====================================================================================================================
Liabilities
- --------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 6,765 2,538 3,560 1,843 1,180
Payable for units withdrawn - 126 1,860 -
- -------------------------------------------------------- -----------------------------------------------------------
Total liabilities 6,765 2,664 5,420 1,843 1,180
====================================================================================================================
Net assets $ 4,542,109 4,283,645 6,247,183 1,818,459 177,071
====================================================================================================================
Outstanding units: Type I (note 2) 123,652 122,416 193,460 60,601 7,497
====================================================================================================================
Net asset value per unit: Type I 30.12 28.39 27.49 22.16 13.57
====================================================================================================================
Outstanding units: Type II (note 2) 27,148 28,470 33,793 21,460 5,552
====================================================================================================================
Net asset value per unit: Type II 30.12 28.39 27.49 22.16 13.57
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
============================================================================
-------------------------
International Capital
Growth Appreciation
Portfolio Portfolio
- ----------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series,
at fair value (note 2):
Aggressive Growth Portfolio (131,366 shares;
cost - $3,750,750) - -
Growth Portfolio (157,065 shares;
cost - $3,129,683) - -
Worldwide Growth Portfolio (190,886 shares;
cost - $4,721,231) - -
Balanced Portfolio (72,923 shares;
cost - $1,433,058) - -
Flexible Income Portfolio (15,420 shares;
cost - $185,940) - -
International Growth Portfolio (30,312 shares;
cost - $992,741) 1,099,482 -
Capital Appreciation Portfolio (46,905 shares;
cost - $1,122,814) - 1,173,085
Receivable from affiliate (note 3) 8 -
Receivable for units sold 432 22,900
- ----------------------------------------------------------------------------
Total assets 1,099,922 1,195,985
============================================================================
Liabilities
- ----------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,549 7,036
Payable for units withdrawn 2,669 -
- ----------------------------------------------------------------------------
Total liabilities 4,218 7,036
============================================================================
Net assets 1,095,704 1,188,949
============================================================================
Outstanding units: Type I (note 2) 30,889 26,135
============================================================================
Net asset value per unit: Type I 17.61 24.73
============================================================================
Outstanding units: Type II (note 2) 31,331 21,942
============================================================================
Net asset value per unit: Type II 17.61 24.73
============================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
5
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
========================================================================================================================
GE Investments Funds, Inc.
-------------------------------------------------------------------------
S&P 500 Money Total International Real Estate
Index Market Return Equity Securities
Fund Fund Fund Fund Fund
-------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - 104,913 - - -
Expenses - Mortality and expense
risk charges (note 3) 22,342 16,525 15,110 574 1,417
- -------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (22,342) 88,388 (15,110) (574) (1,417)
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) 176,225 2 1,390 1,002 (9,416)
Unrealized appreciation (depreciation)
on investments 528,951 (2) 271,344 7,927 44,016
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 705,176 - 272,734 8,929 34,600
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations $ 682,834 88,388 257,624 8,355 33,183
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
======================================================================================================================
GE Investments Funds, Inc.
--------------------------------------------------------------------------
Global Value U.S. Premier
Income Equity Income Equity Growth Equity
Fund Fund Fund Fund Fund
--------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Period from
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 6/09-6/30/99
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends - - - - -
Expenses - Mortality and expense
risk charges (note 3) 135 829 1,569 309 -
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (135) (829) (1,569) (309) -
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) (31) 12,062 90 1,532 -
Unrealized appreciation (depreciation)
on investments (2,847) 32,829 (8,247) 9,712 9
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (2,878) 44,891 (8,157) 11,244 9
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations (3,013) 44,062 (9,726) 10,935 9
======================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
6
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
====================================================================================================================
Oppenheimer Variable Account Funds
---------------------------------------------------------------------------
Aggressive Capital High Multiple
Bond Growth Appreciation Income Strategies
Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
---------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 24,061 - 141,537 129,252 73,700
Expenses - Mortality and expense
risk charges (note 3) 1,748 14,767 12,795 7,093 3,249
- --------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 22,313 (14,767) 128,742 122,159 70,451
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) (13) 127,652 90,864 (1,917) 5,233
Unrealized appreciation
(depreciation) on investments (32,379) 661,355 292,390 (56,086) (5,554)
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (32,392) 789,007 383,254 (58,003) (321)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations $ (10,079) 774,240 511,996 64,156 70,130
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
==============================================================================================================
Goldman Sachs Variable Salomon Brothers Variable
Insurance Trust Series Fund, Inc.
---------------------------- ----------------------------------------
Growth and Mid Cap Strategic Total
Income Value Bond Investors Return
Fund Fund Fund Fund Fund
-----------------------------------------------------------------------
Six Months Six Months Period from Six Months Period from
Ended 6/30/99 Ended 6/30/99 3/02-6/30/99 Ended 6/30/99 6/16-6/30/99
- --------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends - - - - -
Expenses - Mortality and expense
risk charges (note 3) 46 268 2 7 -
- --------------------------------------------------------------------------------------------------------------
Net investment income (expense) (46) (268) (2) (7) -
- --------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss) 411 87 (5) 2 3
Unrealized appreciation
(depreciation) on investments 914 6,328 7 244 (3)
- --------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 1,325 6,415 2 246 -
- --------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations 1,279 6,147 - 239 -
==============================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
7
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
==================================================================================================================================
Variable Insurance Products Variable Insurance Products Variable Insurance
Fund Fund II Product Fund III
------------------------------------ -------------------------- -----------------------
Equity Asset Growth & Growth
Income Growth Overseas Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months Six Months Six Months
Ended Ended Ended Ended Ended Ended Ended
6/30/99 6/30/99 6/30/99 6/30/99 6/30/99 6/30/99 6/30/99
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 325,013 882,287 85,791 348,731 153,638 8,496 8,712
Expenses - Mortality and expense
risk charges (note 3) 24,860 28,940 7,909 17,095 14,597 2,009 1,239
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income 300,153 853,347 77,882 331,636 139,041 6,487 7,473
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments:
Net realized gain 155,932 278,841 13,924 26,599 216,813 7,683 3,134
Unrealized appreciation
(depreciation) on
investments 334,382 (102,978) 68,972 (132,567) 50,760 28,103 13,012
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 490,314 175,863 82,896 (105,968) 267,573 35,786 16,146
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
operations $ 790,467 1,029,210 160,778 225,668 406,614 42,273 23,619
==================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
8
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
=================================================================================================================================
Federated Insurance Series Alger American PBHG Insurance Series
Fund, Inc.
------------------------------------ ----------------------- -------------------------
American High Small PBHG Large PBHG
Leaders Income Bond Utility Capitalization Growth Cap Growth Growth II
Fund II Fund II Fund II Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months Six Months Six Months
Ended Ended Ended Ended Ended Ended Ended
6/30/99 6/30/99 6/30/99 6/30/99 6/30/99 6/30/99 6/30/99
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 35,467 16,812 18,977 183,620 226,416 - -
Expenses - Mortality and expense
risk charges (note 3) 1,410 751 970 4,679 8,017 334 320
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 34,057 16,061 18,007 178,941 218,399 (334) (320)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss) 8,964 (195) 2,083 8,916 374,659 1,923 1,537
Unrealized appreciation
(depreciation) on
investments 1,608 (12,406) (10,583) (14,740) (306,511) 5,310 18,440
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments 10,572 (12,601) (8,500) (5,824) 68,148 7,233 19,977
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $ 44,629 3,460 9,507 173,117 286,547 6,899 19,657
=================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
9
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
===================================================================================================================================
Janus Aspen Series
------------------------------------------------------------------------------------------
Aggressive Worldwide Flexible International Capital
Growth Growth Growth Balanced Income Growth Appreciation
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months Six Months Six Months
Ended Ended Ended Ended Ended Ended Ended
6/30/99 6/30/99 6/30/99 6/30/99 6/30/99 6/30/99 6/30/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 176,415 26,560 11,433 18,960 6,287 2,819 2,365
Expenses - Mortality and expense
risk charges (note 3) 12,369 13,487 20,580 5,783 509 3,621 2,425
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 164,046 13,073 (9,147) 13,177 5,778 (802) (60)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments:
Net realized gain 437,217 218,037 136,620 43,866 84 18,523 57,385
Unrealized appreciation
(depreciation) on investments 257,581 324,905 532,137 111,789 (7,769) 73,202 4,146
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 694,798 542,942 668,757 155,655 (7,685) 91,725 61,531
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations $ 858,844 556,015 659,610 168,832 (1,907) 90,923 61,471
===================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
10
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
==============================================================================================================================
GE Investments Funds, Inc.
--------------------------------------------------------------------------------
S&P 500 Money Total International Real Estate Global
Index Market Return Equity Securities Income
Fund Fund Fund Fund Fund Fund
--------------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months Six Months
Ended Ended Ended Ended Ended Ended
6/30/99 6/30/99 6/30/99 6/30/99 6/30/99 6/30/99
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (22,342) 88,388 (15,110) (574) (1,417) (135)
Net realized gain (loss) 176,225 2 1,390 1,002 (9,416) (31)
Unrealized appreciation (depreciation)
on investments 528,951 (2) 271,344 7,927 44,016 (2,847)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations 682,834 88,388 257,624 8,355 33,183 (3,013)
- -----------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 1,139,949 3,152,872 127,620 69,319 57,526 5,725
Loan interest (220) (2,873) (236) 14 25 -
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits (10,152) - (1,626) - - -
Surrenders (64,998) (10,526) (13,983) (613) (5,036) (1,142)
Loans (69,555) (132,482) (9,471) (87) (414) -
Cost of insurance and administrative
expense (note 3) (336,165) (220,160) (203,631) (12,489) (26,608) (2,656)
Transfer gain (loss) and transfer fees 3,837 (1,354) (357) 132 (194) 80
Interfund transfers 507,618 (2,073,725) (4,932) (6,938) 23,146 2,976
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital transactions 1,170,314 711,752 (106,616) 49,338 48,445 4,983
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 1,853,148 800,140 151,008 57,693 81,628 1,970
Net assets at beginning of year 5,307,680 4,071,591 4,077,703 115,749 344,046 36,131
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 7,160,828 4,871,731 4,228,711 173,442 425,674 38,101
=============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===============================================================================================
GE Investments Funds, Inc.
---------------------------------------------------
Value U.S. Premier
Equity Income Equity Growth Equity
Fund Fund Fund Fund
---------------------------------------------------
Six Months Six Months Six Months
Ended Ended Ended Period from
6/30/99 6/30/99 6/30/99 6/09 - 6/30/99
- -----------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) (829) (1,569) (309) -
Net realized gain (loss) 12,062 90 1,532 -
Unrealized appreciation (depreciation)
on investments 32,829 (8,247) 9,712 9
- -----------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
operations 44,062 (9,726) 10,935 9
- -----------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 37,800 31,555 76,874 15
Loan interest 46 (2) - -
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits - - - -
Surrenders (3,934) (3,376) (8) -
Loans (18,939) (2,305) - -
Cost of insurance and administrative
expense (note 3) (16,559) (16,477) (9,696) (21)
Transfer gain (loss) and transfer fees (841) (142) (512) (1)
Interfund transfers 11,993 (6,197) 5,924 236
- -----------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital transactions 9,566 3,056 72,582 229
- -----------------------------------------------------------------------------------------------
Increase (decrease) in net assets 53,628 (6,670) 83,517 238
Net assets at beginning of year 212,346 433,544 50,945 -
- -----------------------------------------------------------------------------------------------
Net assets at end of year 265,974 426,874 134,462 238
===============================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
11
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
=================================================================================================================================
Oppenheimer Variable Account Funds
-------------------------------------------------------------
Aggressive Capital High
Bond Growth Appreciation Income
Fund/VA Funds/VA Funds/VA Fund/VA
-------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 nded 6/30/99
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ 22,313 (14,767) 128,742 122,159
Net realized gain (loss) (13) 127,652 90,864 (1,917)
Unrealized appreciation (depreciation) on investments (32,379) 661,355 292,390 (56,086)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (10,079) 774,240 511,996 64,156
- ---------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 56,764 360,018 456,221 229,862
Loan interest 105 1,046 911 112
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - (1,395) - -
Surrenders (10,866) (69,094) (61,054) (35,430)
Loans (92) (164,809) (25,957) (32,446)
Cost of insurance and administrative expense (note 3) (32,109) (164,146) (146,672) (88,771)
Transfer gain (loss) and transfer fees 221 (1,107) 709 24
Transfers (to) from the Guarantee Account (note 1) - - - (4)
Interfund transfers 10,630 (130,601) (18,410) 12,197
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 24,653 (170,088) 205,748 85,544
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 14,574 604,152 717,744 149,700
Net assets at beginning of period 470,449 3,826,947 3,228,873 1,854,608
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 485,023 4,431,099 3,946,617 2,004,308
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Variable Goldman Sachs
=======================================================================================================================
Account Funds Variable Insurance Trust
---------------------------------------------------
Multiple Growth and Mid Cap
Strategies Income Value
Fund/VA Fund Fund
---------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- -----------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) 70,451 (46) (268)
Net realized gain (loss) 5,233 411 87
Unrealized appreciation (depreciation) on investments (5,554) 914 6,328
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 70,130 1,279 6,147
- -----------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 97,444 5,339 894
Loan interest 387 - -
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - - -
Surrenders (7,402) - -
Loans (8,051) - -
Cost of insurance and administrative expense (note 3) (34,057) (1,495) (1,951)
Transfer gain (loss) and transfer fees (31) 21 38
Transfers (to) from the Guarantee Account (note 1) - - -
Interfund transfers (16,896) (350) (38,987)
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 31,394 3,515 (40,006)
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 101,524 4,794 (33,859)
Net assets at beginning of period 846,057 10,433 93,208
- -----------------------------------------------------------------------------------------------------------------------
Net assets at end of period 947,581 15,227 59,349
=======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
=================================================================================================================
Salomon Brothers Variable Series Fund, Inc.
---------------------------------------------
Strategic Total
Bond Investors Return
Fund Fund Fund
---------------------------------------------
Period from Six Months Period from
3/02-6/30/99 Ended 6/30/99 6/16-6/30/99
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) (2) (7) -
Net realized gain (loss) (5) 2 3
Unrealized appreciation (depreciation) on investments 7 244 (3)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations - 239 -
- -----------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 2,144 102 18
Loan interest - - -
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - - -
Surrenders - - -
Loans - - -
Cost of insurance and administrative expense (note 3) (253) (171) (12)
Transfer gain (loss) and transfer fees 1 15 -
Transfers (to) from the Guarantee Account (note 1) - - -
Interfund transfers 178 725 -
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 2,070 671 6
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 2,070 910 6
Net assets at beginning of period - 1,530 -
- -----------------------------------------------------------------------------------------------------------------
Net assets at end of period 2,070 2,440 6
=================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
12
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
========================================================================================================================
Variable Insurance
Products Fund
----------------------------------------------------
Equity
Income Growth Overseas
Portfolio Portfolio Portfolio
----------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income $ 300,153 853,347 77,882
Net realized gain 155,932 278,841 13,924
Unrealized appreciation (depreciation) on investments 334,382 (102,978) 68,972
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 790,467 1,029,210 160,778
- ------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 835,151 665,508 227,168
Loan interest (348) (732) 485
Transfers (to) from the general account of GE Life & Annuity:
Death benefits (3,378) (3,783) (1,410)
Surrenders (82,543) (159,249) (17,651)
Loans (76,342) (89,792) (28,033)
Cost of insurance and administrative expense (note 3) (307,961) (297,687) (82,502)
Transfer gain (loss) and transfer fees (694) (4,289) (736)
Interfund transfers (529,397) (542,349) 163,634
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (165,512) (432,373) 260,955
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets 624,955 596,837 421,733
Net assets at beginning of year 6,713,088 7,826,253 2,043,917
- ------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 7,338,043 8,423,090 2,465,650
========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===================================================================================================================================
Variable Insurance Variable Insurance
Products Fund II Product Fund III
--------------------------------- -----------------------------
Asset Growth & Growth
Manager Contrafund Income pportunities
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 nded 6/30/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income 331,636 139,041 6,487 7,473
Net realized gain 26,599 216,813 7,683 3,134
Unrealized appreciation (depreciation) on investments (132,567) 50,760 28,103 13,012
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 225,668 406,614 42,273 23,619
- -----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 232,605 548,682 174,727 69,139
Loan interest 661 (819) (1) 145
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - - - -
Surrenders (20,576) (59,463) (1,010) (391)
Loans (26,132) (37,431) (590) -
Cost of insurance and administrative expense (note 3) (145,228) (196,301) (40,723) (25,342)
Transfer gain (loss) and transfer fees 448 (12,733) (11,307) (213)
Interfund transfers (85,121) 171,404 129,499 47,374
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (43,343) 413,339 250,595 90,712
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 182,325 819,953 292,868 114,331
Net assets at beginning of year 4,636,363 3,631,860 409,404 286,326
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year 4,818,688 4,451,813 702,272 400,657
===================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
13
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
==============================================================================================================================
Federated Insurance Series
--------------------------------------------------
American High
Leaders Income Bond Utility
Fund II Fund II Fund II
--------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ 34,057 16,061 18,007
Net realized gain (loss) 8,964 (195) 2,083
Unrealized appreciation (depreciation) on investments 1,608 (12,406) (10,583)
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 44,629 3,460 9,507
- ------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 168,924 58,537 60,918
Loan interest 53 (149) (12)
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - - -
Surrenders (9,572) (2,492) (1,117)
Loans 22 (105) (11,098)
Cost of insurance and administrative expense (note 3) (26,956) (13,665) (12,849)
Transfer gain (loss) and transfer fees (note 3) (869) 104 (1,432)
Transfers (to) from the Guarantee Account (note 1) - - -
Interfund transfers (31,168) 33,516 14,641
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 100,434 75,746 49,051
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 145,063 79,206 58,558
Net assets at beginning of year 318,014 160,709 247,918
- ------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 463,077 239,915 306,476
==============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===================================================================================================================================
Alger American PBHG Insurance Series Fund, Inc.
------------------------------ -------------------------------
Small PBHG Large PBHG
Capitalization Growth Cap Growth Growth II
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) 178,941 218,399 (334) (320)
Net realized gain (loss) 8,916 374,659 1,923 1,537
Unrealized appreciation (depreciation) on investments (14,740) (306,511) 5,310 18,440
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 173,117 286,547 6,899 19,657
- ------------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 121,768 488,668 26,531 19,285
Loan interest 24 51 141 -
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - - - -
Surrenders (15,864) (14,794) (513) (2,400)
Loans (21,689) (7,387) (33) -
Cost of insurance and administrative expense (note 3) (59,022) (100,505) (9,086) (5,655)
Transfer gain (loss) and transfer fees (note 3) (637) (1,453) (119) (213)
Transfers (to) from the Guarantee Account (note 1) (4) (4) - -
Interfund transfers 255,498 (4,647) 16,859 3,820
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 280,074 359,929 33,780 14,837
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 453,191 646,476 40,679 34,494
Net assets at beginning of year 1,169,395 1,826,506 78,355 68,878
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year 1,622,586 2,472,982 119,034 103,372
===================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
14
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
======================================================================================================================
Janus Aspen Series
-----------------------------------------------
Aggressive Worldwide
Growth Growth Growth
Portfolio Portfolio Portfolio
-----------------------------------------------
Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ 164,046 13,073 (9,147)
Net realized gain 437,217 218,037 136,620
Unrealized appreciation (depreciation) on investments 257,581 324,905 532,137
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 858,844 556,015 659,610
- ----------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 469,026 659,526 813,903
Loan interest 698 (594) (1,179)
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - (1,667) -
Surrenders (33,164) (37,553) (55,508)
Loans (140,210) (42,186) (59,174)
Cost of insurance and administrative expense (note 3) (155,804) (177,548) (284,020)
Transfer gain (loss) and transfer fees 7,649 2,758 1,399
Interfund transfers 1,003,064 (33,179) 71,927
- ----------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 1,151,259 369,557 487,348
- ----------------------------------------------------------------------------------------------------------------------
Increase in net assets 2,010,103 925,572 1,146,958
Net assets at beginning of period 2,532,006 3,358,073 5,100,225
- ----------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 4,542,109 4,283,645 6,247,183
======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
===================================================================================================================================
Janus Aspen Series
---------------------------------------------------------------
Flexible International Capital
Balanced Income Growth Appreciation
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/99 Ended 6/30/99 Ended 6/30/99 Ended 6/30/99
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) 13,177 5,778 (802) (60)
Net realized gain 43,866 84 18,523 57,385
Unrealized appreciation (depreciation) on investments 111,789 (7,769) 73,202 4,146
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 168,832 (1,907) 90,923 61,471
- -----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 226,819 44,574 140,622 271,036
Loan interest (96) - 49 (4)
Transfers (to) from the general account of GE Life & Annuity:
Death benefits - - - -
Surrenders (11,408) (4,556) (8,148) (303)
Loans (3,751) - (28,129) (2,592)
Cost of insurance and administrative expense (note 3) (85,471) (11,367) (52,141) (39,278)
Transfer gain (loss) and transfer fees (251) 13 2,597 (1,027)
Interfund transfers 204,601 51,070 112,945 667,422
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 330,443 79,734 167,795 895,254
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 499,275 77,827 258,718 956,725
Net assets at beginning of period 1,319,184 99,244 836,986 232,224
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period 1,818,459 177,071 1,095,704 1,188,949
===================================================================================================================================
</TABLE>
See accompanying notes to unaudited financial statements.
15
GE Life & Annuity Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
===============================================================================
(1) Description of Entity
GE Life & Annuity Separate Account II (the Account) is a separate
investment account established in 1986 by GE Life and Annuity Assurance
Company (GE Life & Annuity) under the laws of the Commonwealth of Virginia.
The Account operates as a unit investment trust under the Investment
Company Act of 1940. The Account is used to fund certain benefits for
flexible premium variable life insurance policies issued by GE Life &
Annuity. GE Life and Annuity Assurance Company is a stock life insurance
company operating under a charter granted by the Commonwealth of Virginia
on March 21, 1871. A majority of the capital stock of GE Life & Annuity is
owned by General Electric Capital Assurance Company. The remaining portion
is owned by GE Financial Assurance Holdings, Inc. General Electric Capital
Assurance Company and GE Financial Assurance Holdings, Inc. are indirect,
wholly-owned subsidiaries of General Electric Capital Company ("GE
Capital"). GE Capital, a diversified financial services company, is a
wholly-owned subsidiary of General Electric Company (GE), a New York
corporation. Prior to April 1, 1996, GE Life & Annuity was an indirect
wholly-owned subsidiary of Aon Corporation (Aon).
During first quarter of 1999, a new subdivision was added to the Account,
for both Type I and Type II policies (see note 2). The Premier Growth
Equity Fund invests solely in a designated portfolio of the GE Investments
Funds, Inc and is a series type mutual fund.
(2) Summary of Significant Accounting Policies
(a) Unit Class
There are two unit classes included in the Account. Type I units are
sold under policy form P1096. Type II units are sold under policy form
P1250. Type II unit sales began in the first half of 1998.
(b) Investments
Investments are stated at fair value which is based on the underlying
net asset value per share of the respective portfolios or funds.
Purchases and sales of investments are recorded on the trade date and
income distributions are recorded on the ex-dividend date. Realized
gains and losses on investments are determined on the average cost
basis. The units and unit values are disclosed as of the last business
day in the applicable year or period.
The aggregate cost of the investments acquired and the aggregate
proceeds of investments sold, for the six months or lesser period ended
June 30, 1999, were:
16 (Continued)
<PAGE>
GE Life & Annuity Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
==================================================================
GE Investment Funds, Inc.:
S&P 500 Index $ 2,310,138 $ 1,152,064
Money Market 8,191,449 7,559,918
Total Return 153,717 276,589
International Equity 74,833 25,663
Real Estate Securities 132,063 85,084
Global Income 8,706 3,954
Value Equity 117,916 113,036
Income 34,554 33,191
U.S. Equity 91,492 19,272
Premier Growth Equity 251 21
Oppenheimer Variable Account Funds:
Bond 119,213 56,866
Aggressive Growth 415,558 603,363
Capital Appreciation 730,005 395,897
High Income 410,263 205,780
Multiple Strategies 176,994 76,198
Variable Insurance Products Fund:
Equity-Income 1,357,794 1,223,810
Growth 2,619,100 2,195,707
Overseas 560,145 220,924
Variable Insurance Products Fund II:
Asset Manager 606,417 316,447
Contrafund 2,089,937 1,530,747
Variable Insurance Products Fund III:
Growth & Income 346,322 78,004
Growth Opportunties 136,058 37,870
Goldman Sachs Variable Insurance Trust
Growth and Income 8,288 4,823
Mid Cap Value 8,227 48,533
17 (Continued)
<PAGE>
GE Life & Annuity Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
=================================================================
Janus Aspen Series:
Aggressive Growth 3,138,628 1,823,158
Growth 1,250,413 858,654
Worldwide Growth 1,131,974 657,363
Balanced 582,361 215,005
Flexible Income 110,351 23,884
International Growth 499,595 329,004
Capital Appreciation 2,927,006 2,051,769
Federated Insurance Series:
Utility Fund II 132,820 58,779
High Income Bond Fund II 115,654 23,890
American Leaders Fund II 250,900 116,252
The Alger American Fund
Small Capitalization 666,835 207,343
Growth 3,331,952 2,751,445
PBHG Insurance Series Fund, Inc.
PBHG Large Cap Growth 49,567 16,096
PBHG Growth II 30,340 15,057
Salomon Brothers Variable Series Funds, Inc.
Strategic Bond 2,322 253
Investors 890 218
Total Return 18 12
(c) Capital Transactions
The increase (decrease) in outstanding units from capital transactions
for the six months or lesser period ended June 30, 1999 is as follows:
18 (Continued)
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
-------------------------------------------------------------------
S&P 500 Money Total International Real Estate
Index Market Return Equity Securities
Type I Units Fund Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 85,784 117,698 110,519 7,412 17,514
From capital transactions:
Net premiums 6,936 17,021 2,221 622 2,793
Loan Interest (4) (178) (6) 1 2
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits (176) - (44) - -
Surrenders (1,080) (587) (381) (37) (332)
Loans (753) (2,917) (258) (5) (27)
Cost of insurance (3,751) (6,079) (5,086) (274) (1,268)
Interfund transfers 1,873 3,403 (212) (419) (709)
------ ------- -------- ------ -------
Net increase (decrease) in units resulting
from capital transactions 3,045 10,663 (3,766) (112) 459
------ ------- -------- ------ -------
Units outstanding at June 30, 1999 88,829 128,361 106,753 7,300 17,973
==========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
--------------------------------------------
Global Value U.S.
Income Equity Income Equity
Type I Units Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 3,010 5,086 40,200 18
From capital transactions:
Net premiums 111 709 2,115 64
Loan Interest - 3 - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - -
Surrenders (101) (245) (242) -
Loans - (6) (165) -
Cost of insurance (135) (385) (1,107) (42)
Interfund transfers - 2,331 (437) 8
------- ------ ------- -----
Net increase (decrease) in units resulting
from capital transactions (125) 2,407 164 30
------- ------ ------- -----
Units outstanding at June 30, 1999 2,885 7,493 40,364 48
=============================================================================================
</TABLE>
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
--------------------------------------------------------------------
Aggressive Capital High Multiple
Bond Growth Appreciation Income Strategies
Type I Units Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 17,239 81,128 59,419 52,371 24,858
From capital transactions:
Net premiums 1,949 6,693 4,813 4,876 1,378
Loan Interest 4 21 16 3 8
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - (28) - - -
Surrenders (461) (1,376) (1,057) (1,019) (158)
Loans (4) (3,283) (449) (933) (172)
Cost of insurance (761) (3,086) (2,070) (2,301) (642)
Interfund transfers (24) (2,628) (786) (488) (405)
------ ------- ------ ------- -------
Net increase (decrease) in units resulting
from capital transactions 703 (3,687) 467 138 9
------ ------- ------ ------- -------
Units outstanding at June 30, 1999 17,942 77,441 59,886 52,509 24,867
================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Salomon Brothers
Goldman Sachs Variable Variable Series
Insurance Trust Fund, Inc.
-------------------------------- ----------------
Growth and Mid Cap
Income Value Investors
Type I Units Fund Fund Fund
- -----------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 81 - 126
From capital transactions:
Net premiums - - -
Loan Interest - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - -
Surrenders - - -
Loans - - -
Cost of insurance (8) (3) (7)
Interfund transfers (73) 660 -
---- ---- ---
Net increase (decrease) in units resulting
from capital transactions (81) 657 (7)
---- ---- ---
Units outstanding at June 30, 1999 - 657 119
=============================================================================================
</TABLE>
20
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Variable Insurance
Variable Insurance Products Fund Products Fund II
----------------------------------- -------------------------------
Equity Asset
Income Growth Overseas Manager Contrafund
Type I Units Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 144,137 129,808 75,355 158,102 119,940
From capital transactions:
Net premiums 16,671 7,250 5,638 7,113 5,947
Loan Interest (8) (12) 16 22 (16)
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits (79) (63) (48) - -
Surrenders (1,903) (2,630) (600) (699) (1,182)
Loans (1,787) (1,453) (954) (888) (483)
Cost of insurance (6,518) (4,480) (2,478) (4,829) (3,178)
Interfund transfers (12,489) (9,849) 5,237 (2,910) (287)
-------- -------- ------- ------- -------
Net increase (decrease) in units resulting
from capital transactions (6,113) (11,237) 6,811 (2,191) 801
------- -------- ------ ------- -------
Units outstanding at June 30, 1999 138,024 118,571 82,166 155,911 120,741
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance
Products Fund III
-----------------------------
Growth & Growth
Income Opportunities
Type I Units Portfolio Portfolio
- --------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 16,824 16,281
From capital transactions:
Net premiums 2,152 1,603
Loan Interest - 10
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - -
Surrenders (61) (26)
Loans (36) -
Cost of insurance (1,062) (953)
Interfund transfers 1,230 595
------ ------
Net increase (decrease) in units resulting
from capital transactions 2,223 1,229
------ ------
Units outstanding at June 30, 1999 19,047 17,510
================================================================================
</TABLE>
21
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Federated Insurance Series Alger American Fund
--------------------------------------------- ------------------------------------
American High Small
Leaders Income Bond Utility Capitalization Growth
Type I Units Fund II Fund II Fund II Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 13,408 9,252 11,455 89,097 85,556
From capital transactions:
Net premiums 1,530 1,522 1,037 7,011 10,036
Loan Interest 2 (9) (1) 2 3
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - - -
Surrenders (431) (155) (59) (1,223) (707)
Loans 2 (7) - (1,672) (372)
Cost of insurance (691) (549) (495) (3,788) (3,477)
Interfund transfers (982) 137 (43) 17,255 (13,743)
------- ------ ------- ------- --------
Net increase (decrease) in units resulting
from capital transactions (570) 939 439 17,585 (8,260)
------- ------ ------- ------- --------
Units outstanding at June 30, 1999 12,838 10,191 11,894 106,682 77,296
================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
PBHG Insurance Series Fund, Inc.
--------------------------------
PBHG Large PBHG
Cap Growth Growth II
Type I Units Portfolio Portfolio
- ------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 4,470 2,779
From capital transactions:
Net premiums 674 1,212
Loan Interest 9 -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - -
Surrenders (33) (192)
Loans - -
Cost of insurance (274) (291)
Interfund transfers 379 (25)
----- ------
Net increase (decrease) in units resulting
from capital transactions 755 704
----- ------
Units outstanding at June 30, 1999 5,225 3,483
===================================================================================
</TABLE>
22
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Janus Aspen Series
-------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Type I Units Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 97,529 127,165 189,590 53,591
From capital transactions:
Net premiums 7,294 14,333 16,264 3,668
Loan Interest 24 (26) (46) (5)
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - (72) - -
Surrenders (1,140) (1,560) (2,101) (476)
Loans (4,823) (1,781) (1,035) (56)
Cost of insurance (3,956) (5,462) (8,427) (2,520)
Interfund transfers 28,724 (10,181) (785) 6,399
------- ------- ------- ------
Net increase (decrease) in units resulting
from capital transactions 26,123 (4,749) 3,870 7,010
------- ------- ------- ------
Units outstanding at June 30, 1999 123,652 122,416 193,460 60,601
==========================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Series
----------------------------------------------
Flexible International Capital
Income Growth Appreciation
Type I Units Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 6,812 30,755 8,215
From capital transactions:
Net premiums 1,051 4,799 1,119
Loan Interest - 4 -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - -
Surrenders (333) (616) (12)
Loans - (303) (102)
Cost of insurance (612) (2,327) (556)
Interfund transfers 579 (1,423) 17,471
----- ------- -------
Net increase (decrease) in units resulting
from capital transactions 685 134 17,920
----- ------ -------
Units outstanding at June 30, 1999 7,497 30,889 26,135
============================================================================================
</TABLE>
23
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
-------------------------------------------------------------------
S&P 500 Money Total International Real Estate
Index Market Return Equity Securities
Type II Units Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 15,084 121,526 4,217 409 5,002
From capital transactions:
Net premiums 13,399 164,355 1,263 3,916 993
Loan Interest - - - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - - -
Surrenders (51) (61) - - -
Loans (474) (4,880) - - -
Cost of insurance (2,175) (6,977) (469) (528) (483)
Interfund transfers 7,233 (121,533) 78 - 2,220
------- -------- ----- ------ ------
Net increase (decrease) in units resulting
from capital transactions 17,932 30,904 872 3,388 2,730
------- -------- ----- ------ ------
Units outstanding at June 30, 1999 33,016 152,430 5,089 3,797 7,732
===============================================================================================================
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
------------------------------------------------------
Global Value U.S. Premier
Income Equity Income Equity Growth Equity
Type II Units Fund Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 110 10,103 204 4,739 -
From capital transactions:
Net premiums 397 1,939 193 6,546 1
Loan Interest - - - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - - -
Surrenders - - - (1) -
Loans - (1,383) - - -
Cost of insurance (100) (762) (97) (793) (2)
Interfund transfers 265 (1,863) (10) 501 24
---- ------- ---- ------ ---
Net increase (decrease) in units resulting
from capital transactions 562 (2,069) 86 6,253 23
---- ------- ---- ------ ---
Units outstanding at June 30, 1999 672 8,034 290 10,992 23
====================================================================================================
</TABLE>
24
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
-------------------------------------------------------------------------------
Aggressive Capital High Multiple
Bond Growth Appreciation Income Strategies
Type II Units Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 2,536 3,128 2,782 1,810 2,190
From capital transactions:
Net premiums 468 498 3,212 1,718 1,034
Loan Interest - - - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - - -
Surrenders - - - - -
Loans - - (1) - -
Cost of insurance (612) (191) (489) (249) (127)
Interfund transfers 483 28 485 831 63
----- ----- ------ ------ -----
Net increase (decrease) in units resulting
from capital transactions 339 335 3,207 2,300 970
----- ----- ------ ------ -----
Units outstanding at June 30, 1999 2,875 3,463 5,989 4,110 3,160
==========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Goldman Sachs Variable Insurance Trust Salomon Brothers Variable Series Fund, Inc.
-------------------------------------- -------------------------------------------
Growth and Mid Cap Strategic Total
Income Value Bond Investors Return
Type II Units Fund Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 1,092 10,851 - - -
From capital transactions:
Net premiums 585 107 211 7 3
Loan Interest - - - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - - -
Surrenders - - - - -
Loans - - - - -
Cost of insurance (156) (231) (25) (6) (2)
Interfund transfers 36 (5,443) 18 55 -
----- ------- ---- --- ---
Net increase (decrease) in units resulting
from capital transactions 465 (5,567) 204 56 1
----- ------- ---- --- ---
Units outstanding at June 30, 1999 1,557 5,284 204 56 1
==================================================================================================================================
</TABLE>
25
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Variable Insurance Products Fund Variable Insurance Products Fund II
------------------------------------------------ -----------------------------------
Equity Asset
Income Growth Overseas Manager Contrafund
Type II Units Portfolio Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 6,380 1,770 571 1,278 15,627
From capital transactions:
Net premiums 2,711 3,600 2,256 788 8,863
Loan Interest - - - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - - -
Surrenders (27) (21) - - (25)
Loans - (40) - - (470)
Cost of insurance (651) (449) (355) (107) (1,344)
Interfund transfers 90 766 355 16 6,501
----- ------ ------ ----- ------
Net increase (decrease) in units resulting
from capital transactions 2,123 3,856 2,256 697 13,525
------ ------ ------ ----- ------
Units outstanding at June 30, 1999 8,503 5,626 2,827 1,975 29,152
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance Products Fund III
------------------------------------
Growth & Growth
Income Opportunities
Type II Units Portfolio Portfolio
- --------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 8,796 2,482
From capital transactions:
Net premiums 8,038 2,956
Loan Interest - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - -
Surrenders - -
Loans - -
Cost of insurance (1,335) (729)
Interfund transfers 6,308 2,513
------- ------
Net increase (decrease) in units resulting
from capital transactions 13,011 4,740
------- ------
Units outstanding at June 30, 1999 21,807 7,222
================================================================================
</TABLE>
26
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Federated Insurance Series Alger American Fund
-------------------------------------------------- ------------------------------------
American High Small
Leaders Income Bond Utility Capitalization Growth
Type II Units Fund II Fund II Fund II Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 5,255 1,037 1,350 5,744 6,090
From capital transactions:
Net premiums 7,317 2,130 2,146 2,424 13,175
Loan Interest - - - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - - -
Surrenders (1) - - - (34)
Loans (2) - (575) - -
Cost of insurance (629) (303) (184) (778) (1,430)
Interfund transfers (508) 1,958 801 2,493 12,237
------ ------ ------ ------ -------
Net increase (decrease) in units resulting
from capital transactions 6,177 3,785 2,188 4,139 23,948
------ ------ ------ ------ -------
Units outstanding at June 30, 1999 11,432 4,822 3,538 9,883 30,038
===================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
PBHG Insurance Series Fund, Inc.
-----------------------------------
PBHG Large PBHG
Cap Growth Growth II
Type II Units Portfolio Portfolio
- ---------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 665 3,215
From capital transactions:
Net premiums 1,027 341
Loan Interest - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - -
Surrenders - -
Loans (2) -
Cost of insurance (309) (167)
Interfund transfers 701 342
------ -----
Net increase (decrease) in units resulting
from capital transactions 1,417 516
------ -----
Units outstanding at June 30, 1999 2,082 3,731
======================================================================================
</TABLE>
27
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
June 30, 1999
<TABLE>
<CAPTION>
Janus Aspen Series
----------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Type II Units Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 11,987 10,349 18,923 12,867
From capital transactions:
Net premiums 10,141 12,413 15,210 7,032
Loan Interest - - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - - -
Surrenders - (51) (54) (63)
Loans - (32) (1,252) (121)
Cost of insurance (1,610) (1,927) (2,581) (1,514)
Interfund transfers 6,630 7,718 3,547 3,259
------- ------- ------- ------
Net increase (decrease) in units resulting
from capital transactions 15,161 18,121 14,870 8,593
------- ------- ------- ------
Units outstanding at June 30, 1999 27,148 28,470 33,793 21,460
==================================================================================================
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Series
-----------------------------------------
Flexible International Capital
Income Growth Appreciation
Type II Units Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------
<S> <C>
Units outstanding at December 31, 1998 432 21,361 3,549
From capital transactions:
Net premiums 2,197 4,704 10,082
Loan Interest - - -
Tranfers (to) from the
general acct. of GE Life & Annuity:
Death benefits - - -
Surrenders - - -
Loans - (1,471) -
Cost of insurance (218) (1,302) (1,047)
Interfund transfers 3,141 8,039 9,358
------ ------ ------
Net increase (decrease) in units resulting
from capital transactions 5,120 9,970 18,393
------ ------ -------
Units outstanding at June 30, 1999 5,552 31,331 21,942
========================================================================================
</TABLE>
28
<PAGE>
GE Life & Annuity Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
- ------------------------------------------------------------------------------
(d) Federal Income Taxes
The Account is not taxed separately because the operations of the
Account are part of the total operations of GE Life & Annuity. GE Life
& Annuity is taxed as a life insurance company under the Internal
Revenue Code (the Code). GE Life & Annuity is included in the General
Electric Capital Assurance Company consolidated federal income tax
return. Under existing federal income tax law, no taxes are payable on
the investment income or on the capital gains of the Account.
(e) Use of Estimates
Financial statements prepared in conformity with generally accepted
accounting principles require management to make estimates and
assumptions that affect amounts and disclosures reported therein.
Actual results could differ from those estimates.
(3) Related Party Transactions
Net premiums transferred from GE Life & Annuity to the Account represent
gross premiums recorded by GE Life & Annuity on its flexible premium
variable life insurance policies, less deductions of 7.5% retained as
compensation for certain distribution expenses and premium taxes. In
addition, there is a deferred sales charge of up to 45% of the first year's
premiums. This charge will be deducted from the policy's cash value in
equal installments at the beginning of each of the policy years two through
ten with any remaining installments deducted at policy lapse or surrender.
For Type I policies, if a policy is surrendered or lapses during the first
nine years, a charge is made by GE Life & Annuity to cover the expenses of
issuing the policy. The charge is a stated percentage of the insurance
amount and varies by the age of the policyholder when issued and period of
time that the policy has been in force. A charge equal to the lesser of $25
or 2% of the amount paid on a partial surrender will be made to compensate
GE Life & Annuity for the costs incurred in connection with the partial
surrender.
A charge based on the policy specified amount of insurance, death benefit
option, cash values, duration, the insured's sex, issue age and risk class
is deducted from the policy cash values each month to compensate GE Life &
Annuity for the cost of insurance and any benefits added by rider. In
addition, GE Life & Annuity charges the Account for the mortality and
expense risk that GE Life & Annuity assumes. This charge is deducted daily
at an effective annual rate of .70% of the net assets of the Account. For
policies issued on or after May 1, 1993, GE Life & Annuity will deduct a
monthly administrative charge of $6 from the policy cash value and for
policies issued prior to May 1, 1993, GE Life & Annuity will deduct a
monthly administrative charge of $5 from the policy cash value.
GE Investments Funds, Inc. (the Fund) is an open-end diversified
management investment company.
29 (Continued)
<PAGE>
GE Life & Annuity Separate Account II
Notes to Financial Statements
June 30, 1999
(Unaudited)
- ------------------------------------------------------------------------------
Capital Brokerage Corporation, an affiliate of GE Life & Annuity, is a
Washington Corporation registered with the Commission under the Securities
Exchange Act of 1934 as a broker-dealer and is a member of the National
Association of Securities Dealers, Inc. Capital Brokerage Corporation
serves as principal underwriter for variable life insurance policies and
annuities issued by GE Life & Annuity.
GE Investment Management Incorporated (Investment Advisor), a wholly-owned
subsidiary of GE, currently serves as investment advisor to GE Investments
Funds, Inc. As compensation for its services, the Investment Advisor is
paid an investment advisory fee by the Fund based on the average daily net
assets at an effective annual rate of .35% for the S&P 500 Index Fund, .50%
for the Money Market, Income Fund and Total Return Funds, 1.00% for the
International Equity Fund, .85% for the Real Estate Securities Fund, .60%
for the Global Income Fund, .55% for the U.S. Equity Fund, and .65% for the
Value Equity and Premier Growth Equity Funds. Prior to May 1, 1997, Aon
Advisors, Inc. served as investment advisor to the Fund and was subject to
the same compensation arrangement as GE Investment Management Incorporated.
Certain officers and directors of GE Life & Annuity are also officers and
directors of Capital Brokerage Corporation.
30
