<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
(formerly Life of Virginia Separate Account II)
Financial Statements
Year ended December 31, 1999
(With Independent Auditors' Report Thereon)
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Table of Contents
December 31, 1999
<TABLE>
<CAPTION>
Page
----
<S> <C>
Independent Auditors' Report............................................... F-1
Statements of Assets and Liabilities....................................... F-2
Statements of Operations................................................... F-9
Statements of Changes in Net Assets........................................ F-20
Notes to Financial Statements.............................................. F-33
</TABLE>
<PAGE>
Independent Auditors' Report
Policyholders
GE Life & Annuity Separate Account II
and
The Board of Directors
GE Life and Annuity Assurance Company:
We have audited the accompanying statements of assets and liabilities of GE
Life & Annuity Separate Account II (the Account) (comprising the GE
Investments Funds, Inc.--S&P 500 Index, Money Market, Total Return,
International Equity, Real Estate Securities, Global Income, Value Equity,
Income, U.S. Equity and Premier Growth Equity Funds; the Oppenheimer Variable
Account Funds--Bond/VA, Capital Appreciation/VA, Aggressive Growth/VA, High
Income/VA and Multiple Strategies/VA Funds; the Variable Insurance Products
Fund--Equity-Income, Growth and Overseas Portfolios; the Variable Insurance
Products Fund II--Asset Manager and Contrafund Portfolios; the Variable
Insurance Products Fund III--Growth & Income and Growth Opportunities
Portfolios; the Federated Insurance Series--American Leaders, High Income Bond
and Utility Funds II; the Alger American Fund--Small Capitalization and Growth
Portfolios; the PBHG Insurance Series Fund, Inc.--PBHG Large Cap Growth and
PBHG Growth II Portfolios; the Janus Aspen Series--Aggressive Growth, Growth,
Worldwide Growth, Balanced, Flexible Income, International Growth and Capital
Appreciation Portfolios; the Goldman Sachs Variable Insurance Trust--Growth
and Income and Mid Cap Value Funds; and the Salomon Brothers Variable Series
Fund Inc.--Strategic Bond, Investors, and Total Return Funds) as of December
31, 1999 and the related statements of operations and changes in net assets
for the aforementioned funds and the GE Investments Funds, Inc.--Government
Securities Fund; the Oppenheimer Variable Account Funds--Money Fund; the
Variable Insurance Products Fund--Money Market and High Income Portfolios; and
the Neuberger & Berman Advisers Management Trust--Balanced, Bond and Growth
Portfolios, for each of the years or lesser periods in the three-year period
then ended. These financial statements are the responsibility of the Account's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1999,
by correspondence with the underlying mutual funds or their transfer agent. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of each of the respective
portfolios constituting GE Life & Annuity Separate Account II as of
December 31, 1999 and the results of their operations and changes in their net
assets for each of the years or lesser periods in the three-year period then
ended in conformity with generally accepted accounting principles.
KPMG LLP
Richmond, Virginia
February 11, 2000
F-1
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities
December 31, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
--------------------------------------------------------
Money Total International Real Estate
S&P 500 Market Return Equity Securities
Index Fund Fund Fund Fund
Assets ---------- --------- --------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Investment in GE
Investments Funds,
Inc.,
at fair value (note 2):
S&P 500 Index Fund
(310,476 shares;
cost -- $6,828,780)... $8,471,462 -- -- -- --
Money Market Fund
(5,406,429 shares;
cost -- $5,406,429)... -- 5,406,429 -- -- --
Total Return Fund
(273,213 shares;
cost -- $4,144,197)... -- -- 4,333,155 -- --
International Equity
Fund (18,342 shares;
cost -- $228,636)..... -- -- -- 265,409 --
Real Estate Securities
Fund (38,812 shares;
cost -- $496,495)..... -- -- -- -- 421,890
Receivable from affili-
ate.................... 39 3,435 -- 4 --
Receivable for units
sold................... 2,304 -- 4,808 -- --
---------- --------- --------- ------- -------
Total assets........... 8,473,805 5,409,864 4,337,963 265,413 421,890
========== ========= ========= ======= =======
Liabilities
Accrued expenses payable
to affiliate (note 3).. 4,515 20,599 19,009 1,476 1,120
Payable for units with-
drawn.................. -- 22,363 -- -- --
---------- --------- --------- ------- -------
Total liabilities...... 4,515 42,962 19,009 1,476 1,120
---------- --------- --------- ------- -------
Net assets attributable
to variable life poli-
cyholders.............. $8,469,290 5,366,902 4,318,954 263,937 420,770
========== ========= ========= ======= =======
Outstanding units: Type
I (note 2)............. 85,301 130,474 102,066 5,973 18,975
========== ========= ========= ======= =======
Net asset value per
unit: Type I........... $ 63.03 17.74 39.97 19.15 15.14
========== ========= ========= ======= =======
Outstanding units: Type
II (note 2)............ 49,069 172,057 5,989 7,809 8,817
========== ========= ========= ======= =======
Net asset value per
unit: Type II.......... $ 63.03 17.74 39.97 19.15 15.14
========== ========= ========= ======= =======
</TABLE>
F-2
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
December 31, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
--------------------------------------
Premier
Global Value U.S. Growth
Income Equity Income Equity Equity
Fund Fund Fund Fund Fund
Assets ------ ------- ------- ------- -------
<S> <C> <C> <C> <C> <C>
Investment in GE Investments Funds,
Inc.,
at fair value (note 2):
Global Income Fund (9,097 shares;
cost -- $90,968)..................... 87,238 -- -- -- --
Value Equity Fund (34,520 shares;
cost -- $511,771).................... -- 545,075 -- -- --
Income Fund (35,663 shares;
cost -- $433,590).................... -- -- 410,485 -- --
U.S. Equity Fund (5,739 shares;
cost -- $207,529).................... -- -- -- 217,499 --
Premier Growth Equity Fund (1,537
shares;
cost -- $122,937).................... -- -- -- -- 136,222
Receivable from affiliate.............. -- -- -- 5 --
Receivable for units sold.............. -- 7,715 -- 2,417 1,491
------ ------- ------- ------- -------
Total assets.......................... 87,238 552,790 410,485 219,921 137,713
------ ------- ------- ------- -------
Liabilities
Accrued expenses payable to affiliate
(note 3).............................. 969 1,447 3,897 58 38
Payable for units withdrawn............ -- -- -- -- --
------ ------- ------- ------- -------
Total liabilities..................... 969 1,447 3,897 58 38
------ ------- ------- ------- -------
Net assets attributable to variable
life policyholders.................... 86,269 551,343 406,588 219,863 137,675
====== ======= ======= ======= =======
Outstanding units: Type I (note 2)..... 3,856 9,075 36,722 1,934 5,433
====== ======= ======= ======= =======
Net asset value per unit: Type I....... 10.64 16.28 10.51 12.72 11.80
====== ======= ======= ======= =======
Outstanding units: Type II (note 2).... 4,252 24,791 1,964 15,350 6,234
====== ======= ======= ======= =======
Net asset value per unit: Type II...... 10.64 16.28 10.51 12.72 11.80
====== ======= ======= ======= =======
</TABLE>
F-3
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
December 31, 1999
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
-----------------------------------------------------
Capital Aggressive High Multiple
Bond Appreciation Growth Income Strategies
Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
Assets -------- ------------ ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
Investment in Oppenheimer
Variable Account Funds,
at fair value (note 2):
Bond Fund/VA (55,499
shares; cost --
$649,645).............. $639,345 -- -- -- --
Capital Appreciation
Fund/VA (99,736 shares;
cost --$3,135,504) .... -- 4,970,851 -- -- --
Aggressive Growth
Fund/VA (80,773 shares;
cost -- $3,362,953).... -- -- 6,648,456 -- --
High Income Fund/VA
(196,976 shares; cost
-- $2,165,842)......... -- -- -- 2,111,584 --
Multiple Strategies
Fund/VA (56,173 shares;
cost -- $886,784)...... -- -- -- -- 980,781
Receivable for units
sold.................... 107 2,689 397 2,229 31
-------- --------- --------- --------- -------
Total assets............ 639,452 4,973,540 6,648,853 2,113,813 980,812
======== ========= ========= ========= =======
Liabilities
Accrued expenses payable
to affiliate (note 3)... 1,428 2,533 4,363 1,497 1,382
Payable for units with-
drawn................... -- -- -- -- --
-------- --------- --------- --------- -------
Total liabilities....... 1,428 2,533 4,363 1,497 1,382
-------- --------- --------- --------- -------
Net assets attributable
to variable life
policyholders........... $638,024 4,971,007 6,644,490 2,112,316 979,430
======== ========= ========= ========= =======
Outstanding units: Type I
(note 2)................ 19,007 59,418 75,801 52,113 23,951
======== ========= ========= ========= =======
Net asset value per unit:
Type I.................. $ 23.26 73.02 82.81 35.44 34.73
======== ========= ========= ========= =======
Outstanding units: Type
II (note 2)............. 8,423 8,659 4,437 7,489 4,250
======== ========= ========= ========= =======
Net asset value per unit:
Type II................. $ 23.26 73.02 82.81 35.44 34.73
======== ========= ========= ========= =======
</TABLE>
F-4
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
December 31, 1999
<TABLE>
<CAPTION>
Variable Insurance Variable Insurance
Variable Insurance Products Fund Products Fund II Products Fund III
---------------------------------- -------------------- -----------------------
Equity- Asset Growth & Growth
Income Growth Overseas Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
Assets ----------- ----------- ---------- --------- ---------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment in Variable
Insurance Products
Fund, at fair value
(note 2):
Equity-Income Portfolio
(268,605 shares; cost
-- $6,047,295)........ $ 6,905,846 -- -- -- -- -- --
Growth Portfolio
(188,985 shares;
cost -- $7,350,078)... -- 10,380,964 -- -- -- -- --
Overseas Portfolio
(105,202 shares; cost
-- $2,041,700)........ -- -- 2,886,747 -- -- -- --
Investment in Variable
Insurance Products Fund
II, at fair value (note
2):
Asset Manager Portfolio
(266,306 shares; cost
-- $4,258,773)........ -- -- -- 4,971,925 -- -- --
Contrafund Portfolio
(171,186 shares;
cost-- $3,897,646).... -- -- -- -- 4,990,060 -- --
Investment in Variable
Insurance Product Fund
III, at fair value
(note 2): -- -- -- -- -- -- --
Growth & Income
Portfolio (48,408
shares; cost --
$757,158)............. -- -- -- -- -- 837,454 --
Growth Opportunities
Portfolio (19,469
shares; cost --
$413,198)............. -- -- -- -- -- -- 450,697
Receivable for units
sold................... 4,961 2,466 632 845 738 97 49
----------- ----------- ---------- --------- --------- ------- -------
Total assets........... 6,910,807 10,383,430 2,887,379 4,972,770 4,990,798 837,551 450,746
=========== =========== ========== ========= ========= ======= =======
Liabilities
Accrued expenses payable
to affiliate (note 3).. 5,002 4,772 2,072 2,570 4,079 1,502 1,297
Payable for units with-
drawn.................. -- -- -- -- -- -- --
----------- ----------- ---------- --------- --------- ------- -------
Total liabilities...... 5,002 4,772 2,072 2,570 4,079 1,502 1,297
----------- ----------- ---------- --------- --------- ------- -------
Net assets attributable
to variable life
policyholders.......... $ 6,905,805 10,378,658 2,885,307 4,970,200 4,986,719 836,049 449,449
=========== =========== ========== ========= ========= ======= =======
Outstanding units: Type
I (note 2)............. 134,499 115,121 71,868 151,835 109,523 15,603 15,681
=========== =========== ========== ========= ========= ======= =======
Net asset value per
unit: Type I........... $ 47.09 81.17 38.13 32.09 33.05 17.33 15.80
=========== =========== ========== ========= ========= ======= =======
Outstanding units: Type
II (note 2)............ 12,153 12,742 3,803 3,048 41,361 32,640 12,765
=========== =========== ========== ========= ========= ======= =======
Net asset value per
unit: Type II.......... $ 47.09 81.17 38.13 32.09 33.05 17.33 15.80
=========== =========== ========== ========= ========= ======= =======
</TABLE>
F-5
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
December 31, 1999
<TABLE>
<CAPTION>
PBHG Insurance
Federated Insurance Series Alger American Fund Series Fund, Inc.
---------------------------- ------------------------ -------------------
PBHG
American High Small Large Cap PBHG
Leaders Income Bond Utility Capitalization Growth Growth Growth II
Fund II Fund II Fund II Portfolio Portfolio Portfolio Portfolio
Assets -------- ----------- ------- -------------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Investments in Federated
Insurance Series, at
fair value (note 2):
American Leaders Fund
II
(28,878 shares; cost
-- $593,008).......... $601,248 -- -- -- -- -- --
High Income Bond Fund
II
(31,144 shares; cost
-- $326,009).......... -- 318,914 -- -- -- -- --
Utility Fund II
(26,481 shares; cost
-- $354,673).......... -- -- 380,008 -- -- -- --
Investment in Alger
American, at fair value
(note 2):
Small Capitalization
Portfolio
(41,921 shares; cost
-- $1,831,455)........ -- -- -- 2,311,918 -- -- --
Growth Portfolio
(50,009 shares; cost
-- $2,728,747)........ -- -- -- -- 3,219,551 -- --
Investment in PBHG
Insurance Series Fund,
Inc., at fair value
(note 2):
PBHG Large Cap Growth
Portfolio
(7,767 shares; cost--
$112,571)............. -- -- -- -- -- 198,139 --
PBHG Growth II Portfo-
lio
(12,303 shares; cost
-- $193,670).......... -- -- -- -- -- -- 283,587
Receivable from affili-
ate.................... -- -- 1 -- -- -- 11
Receivable for units
sold................... -- -- 24 15,660 9,223 -- 570
-------- ------- ------- --------- --------- ------- -------
Total assets........... 601,248 318,914 380,033 2,327,578 3,228,774 198,139 284,168
======== ======= ======= ========= ========= ======= =======
Liabilities
Accrued expenses payable
to affiliate
(note 3)............... 1,335 1,180 642 3,005 2,319 2,163 2,329
Payable for units with-
drawn.................. -- -- -- -- -- -- --
-------- ------- ------- --------- --------- ------- -------
Total liabilities...... 1,335 1,180 642 3,005 2,319 2,163 2,329
-------- ------- ------- --------- --------- ------- -------
Net assets attributable
to variable life
policyholders.......... $599,913 317,734 379,391 2,324,573 3,226,455 195,976 281,839
======== ======= ======= ========= ========= ======= =======
Outstanding units: Type
I (note 2)............. 16,635 11,900 12,001 113,855 79,133 5,461 4,820
======== ======= ======= ========= ========= ======= =======
Net asset value per
unit: Type I........... $ 18.05 15.87 19.55 17.56 26.47 25.04 22.62
======== ======= ======= ========= ========= ======= =======
Outstanding units: Type
II (note 2)............ 16,602 8,121 7,406 18,524 42,758 2,366 7,640
======== ======= ======= ========= ========= ======= =======
Net asset value per
unit: Type II.......... $ 18.05 15.87 19.55 17.56 26.47 25.04 22.62
======== ======= ======= ========= ========= ======= =======
</TABLE>
F-6
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
December 31, 1999
<TABLE>
<CAPTION>
Janus Aspen Series
-----------------------------------------------------------------------------
Aggressive Worldwide Flexible International Capital
Growth Growth Growth Balanced Income Growth Appreciation
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
---------- --------- --------- --------- --------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Investment in Janus
Aspen Series, at fair
value (note 2):
Aggressive Growth Port-
folio
(143,167 shares;
cost -- $4,864,207)... $8,545,625 -- -- -- -- -- --
Growth Portfolio
(206,232 shares;
cost -- $4,779,113)... -- 6,939,716 -- -- -- -- --
Worldwide Growth Port-
folio
(201,797 shares;
cost -- $5,372,653)... -- -- 9,635,806 -- -- -- --
Balanced Portfolio
(84,084 shares;
cost -- $1,751,502)... -- -- -- 2,347,630 -- -- --
Flexible Income Portfo-
lio
(17,825 shares; cost
-- $211,588).......... -- -- -- -- 203,559 -- --
International Growth
Portfolio
(59,726 shares;
cost -- $1,352,720)... -- -- -- -- -- 2,309,613 --
Capital Appreciation
Portfolio
(66,811 shares;
cost -- $1,656,707)... -- -- -- -- -- -- 2,216,124
Receivable from affili-
ate.................... -- -- 27 -- -- 10 --
Receivable for units
sold................... 3,499 17,184 1,809 1,674 -- 56 8,813
---------- --------- --------- --------- ------- --------- ---------
Total assets........... 8,549,124 6,956,900 9,637,642 2,349,304 203,559 2,309,679 2,224,937
========== ========= ========= ========= ======= ========= =========
Liabilities
Accrued expenses payable
to affiliate
(note 3)............... 11,162 3,056 4,354 1,959 1,198 2,489 9,403
Payable for units with-
drawn.................. -- -- -- -- -- -- --
---------- --------- --------- --------- ------- --------- ---------
Total liabilities...... 11,162 3,056 4,354 1,959 1,198 2,489 9,403
---------- --------- --------- --------- ------- --------- ---------
Net assets attributable
to variable life
policyholders.......... $8,537,962 6,953,844 9,633,288 2,347,345 202,361 2,307,190 2,215,534
========== ========= ========= ========= ======= ========= =========
Outstanding units: Type
I (note 2)............. 119,651 150,399 192,606 63,165 5,993 34,317 22,233
========== ========= ========= ========= ======= ========= =========
Net asset value per
unit: Type I........... $ 51.75 34.92 39.95 24.98 13.82 29.06 32.74
========== ========= ========= ========= ======= ========= =========
Outstanding units: Type
II (note 2)............ 45,333 48,738 48,527 30,804 8,649 45,077 45,437
========== ========= ========= ========= ======= ========= =========
Net asset value per
unit: Type II.......... $ 51.75 34.92 39.95 24.98 13.82 29.06 32.74
========== ========= ========= ========= ======= ========= =========
</TABLE>
F-7
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Assets and Liabilities, Continued
December 31, 1999
<TABLE>
<CAPTION>
Goldman Sachs
Variable Insurance Salomon Brothers
Trust Variable Series Fund Inc.
------------------ --------------------------
Growth and Mid Cap Strategic Total
Income Value Bond Investors Return
Fund Fund Fund Fund Fund
---------- ------- --------- --------- ------
<S> <C> <C> <C> <C> <C>
Assets
Investment in Goldman Sachs Vari-
able Insurance Trust
at fair value (note 2):
Growth and Income Fund (1,957
shares; cost -- $21,040)....... $21,313 -- -- -- --
Mid Cap Value Fund (52,976
shares; cost -- $446,381)...... -- 446,055 -- -- --
Investment in Salomon Brothers
Variable Series Fund Inc.
at fair value (note 2):
Strategic Bond Fund (5,753
shares; cost -- $57,478)....... -- -- 55,570 -- --
Investors Fund (809 shares; cost
-- $9,604)..................... -- -- -- 9,889 --
Total Return Fund (110 shares;
cost -- $1,159)................ -- -- -- -- 1,122
Receivable from affiliate........ 1 12 -- -- --
Receivable for units sold........ -- 15,263 -- -- --
------- ------- ------ ----- -----
Total assets.................... 21,314 461,330 55,570 9,889 1,122
======= ======= ====== ===== =====
Liabilities
Accrued expenses payable to af-
filiate (note 3)................ 6 118 16 1 --
Payable for units withdrawn...... -- -- -- -- --
------- ------- ------ ----- -----
Total liabilities............... 6 118 16 1 --
------- ------- ------ ----- -----
Net assets attributable to vari-
able life policyholders......... $21,308 461,212 55,554 9,888 1,122
======= ======= ====== ===== =====
Outstanding units: Type I (note
2).............................. -- 47,242 -- 111 103
======= ======= ====== ===== =====
Net asset value per unit: Type
I............................... $ 9.30 8.45 10.22 13.48 10.69
======= ======= ====== ===== =====
Outstanding units: Type II (note
2).............................. 2,291 7,339 5,436 623 2
======= ======= ====== ===== =====
Net asset value per unit: Type
II.............................. $ 9.30 8.45 10.22 13.48 10.69
======= ======= ====== ===== =====
</TABLE>
See accompanying notes to financial statements.
F-8
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
--------------------------------------------
Government
S&P 500 Index Fund Securities Fund
---------------------------- ---------------
Year ended December 31, Period ended
---------------------------- December 11,
1999 1998 1997 1997
---------- --------- ------- ---------------
<S> <C> <C> <C> <C>
Investment income:
Income -- Ordinary dividends.... $ 60,042 43,701 40,894 --
Expenses -- Mortality and
expense risk charges --
Type I (note 3)................ 35,117 26,008 17,405 2,085
Expenses -- Mortality and
expense risk charges --
Type II (note 3)............... 13,313 1,383 -- --
---------- --------- ------- ------
Net investment income (expense).. 11,612 16,310 23,489 (2,085)
---------- --------- ------- ------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss)........ 367,307 200,588 18,179 1,254
Unrealized appreciation (depre-
ciation) on investments........ 797,281 637,587 504,771 18,064
Capital gain distributions...... 82,915 154,941 48,005 --
---------- --------- ------- ------
Net realized and unrealized gain
(loss) on investments........... 1,247,503 993,116 570,955 19,318
---------- --------- ------- ------
Increase (decrease) in net assets
from operations................. $1,259,115 1,009,426 594,444 17,233
========== ========= ======= ======
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
----------------------------------------------------
Money Market Fund Total Return Fund
-------------------------- ------------------------
Year ended December 31, Year ended December 31,
-------------------------- ------------------------
1999 1998 1997 1999 1998 1997
------- ------- -------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary div-
idends................ 261,216 161,959 107,705 87,229 207,758 86,792
Expenses -- Mortality
and expense risk
charges --
Type I (note 3)....... 20,306 18,144 13,717 28,286 26,094 24,218
Expenses -- Mortality
and expense risk
charges --
Type II (note 3)...... 17,608 2,862 -- 1,377 212 --
------- ------- -------- ------- ------- -------
Net investment income
(expense).............. 223,302 140,953 93,988 57,566 181,452 62,574
------- ------- -------- ------- ------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)................ 3 517 298,840 10,066 (62,109) (54,073)
Unrealized appreciation
(depreciation) on in-
vestments............. (3) (517) (300,439) 319,427 423,954 123,159
Capital gain distribu-
tions................. -- -- -- 102,400 -- 370,006
------- ------- -------- ------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... -- -- (1,599) 431,893 361,845 439,092
------- ------- -------- ------- ------- -------
Increase (decrease) in
net assets from opera-
tions.................. 223,302 140,953 92,389 489,459 543,297 501,666
======= ======= ======== ======= ======= =======
</TABLE>
F-9
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
------------------------------------------------------
International Equity Real Estate
Fund Securities Fund
------------------------- ---------------------------
Year ended December 31, Year ended December 31,
------------------------- ---------------------------
1999 1998 1997 1999 1998 1997
-------- ------- ------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. $ 669 5,942 685 23,112 13,488 7,238
Expenses -- Mortality
and expense risk
charges --
Type I (note 3)....... 792 638 399 2,004 1,772 814
Expenses -- Mortality
and expense risk
charges --
Type II (note 3)...... 531 10 -- 839 117 --
-------- ------- ------- -------- -------- -------
Net investment income
(expense).............. (654) 5,294 286 20,269 11,599 6,424
-------- ------- ------- -------- -------- -------
Net realized and
unrealized (loss) gain
on investments:
Net realized gain
(loss)................ 5,881 93 654 (14,908) (13,410) 2,800
Unrealized appreciation
(depreciation) on
investments........... 34,706 8,003 (5,290) (10,218) (64,135) (2,725)
Capital gain distribu-
tions................. 16,048 -- 7,881 1,216 12,450 13,442
-------- ------- ------- -------- -------- -------
Net realized and
unrealized (loss) gain
on investments......... 56,635 8,096 3,245 (23,910) (65,095) 13,517
-------- ------- ------- -------- -------- -------
Increase (decrease) in
net assets from
operations............. $ 55,981 13,390 3,531 (3,641) (53,496) 19,941
======== ======= ======= ======== ======== =======
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
-----------------------------------------------------
Global Income Fund Value Equity Fund
-------------------------- --------------------------
Period from Period from
Year ended June 18, Year ended June 17,
December 31, 1997 to December 31, 1997 to
------------- December 31, ------------- December 31
1999 1998 1997 1999 1998 1997
------ ----- ------------ ------ ------ -----------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. 1,257 2,016 424 4,044 1,033 16
Expenses -- Mortality
and expense risk
charges --
Type I (note 3)....... 258 352 30 824 270 17
Expenses -- Mortality
and expense risk
charges --
Type II (note 3)...... 141 2 -- 1,482 256 --
------ ----- ---- ------ ------ ---
Net investment income
(expense).............. 858 1,662 394 1,738 507 (1)
------ ----- ---- ------ ------ ---
Net realized and
unrealized (loss) gain
on investments:
Net realized gain
(loss)................ (128) 3,656 35 14,236 (305) (9)
Unrealized appreciation
(depreciation) on
investments........... (4,715) 1,314 (329) 22,084 11,219 1
Capital gain distribu-
tions................. 95 84 37 -- 5,046 99
------ ----- ---- ------ ------ ---
Net realized and
unrealized (loss) gain
on investments......... (4,748) 5,054 (257) 36,320 15,960 (91)
------ ----- ---- ------ ------ ---
Increase (decrease) in
net assets from
operations............. (3,890) 6,716 137 38,058 16,467 90
====== ===== ==== ====== ====== ===
</TABLE>
F-10
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
----------------------------------------------------------------------
Premier Growth
Income Fund U.S. Equity Fund Equity Fund
----------------------------- ------------------------- --------------
Period from Period from Period from
Year ended December 12, Year June 10, June 9,
December 31, 1997 to Ended 1998 to 1999 to
---------------- December 31, December 31, December 31, December 31,
1999 1998 1997 1999 1998 1999
-------- ------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. $ 21,400 20,775 992 1,122 269 124
Expenses -- Mortality
and expense risk
charges -- Type I
(note 3).............. 2,983 2,899 116 74 -- 103
Expenses -- Mortality
and expense risk
charges -- Type II
(note 3).............. 47 3 -- 825 47 116
-------- ------ ---- ------ ----- ------
Net investment income
(expense).............. 18,370 17,873 876 223 222 (95)
======== ====== ==== ====== ===== ======
Net realized and
unrealized (loss) gain
on investments:
Net realized gain
(loss)................ (78) 3,321 (838) 2,835 144 344
Unrealized appreciation
(depreciation) on
investments........... (28,051) 4,423 523 6,670 3,300 13,285
Capital gain
distributions......... 662 3,666 -- 10,093 600 4,011
-------- ------ ---- ------ ----- ------
Net realized and
unrealized (loss) gain
on investments......... (27,467) 11,410 (315) 19,598 4,044 17,640
-------- ------ ---- ------ ----- ------
Increase (decrease) in
net assets from
operations............. $ (9,097) 29,283 561 19,821 4,266 17,545
======== ====== ==== ====== ===== ======
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
--------------------------------------
Money Fund Bond Fund/VA
------------ -------------------------
Period ended Year ended December 31,
December 11, -------------------------
1997 1999 1998 1997
------------ -------- ------- -------
<S> <C> <C> <C> <C>
Investment income:
Income -- Ordinary dividends.......... $27 21,896 5,253 16,714
Expenses -- Mortality and expense risk
charges --
Type I (note 3)...................... 4 3,043 2,541 1,872
Expenses -- Mortality and expense risk
charges --
Type II (note 3)..................... -- 683 56 --
--- -------- ------- -------
Net investment income (expense)........ 23 18,170 2,656 14,842
=== ======== ======= =======
Net realized and unrealized gain on
investments:
Net realized gain (loss).............. -- (1,863) 2,899 276
Unrealized appreciation (depreciation)
on investments....................... -- (29,542) 11,167 5,965
Capital gain distributions............ -- 2,165 4,848 872
--- -------- ------- -------
Net realized and unrealized gain (loss)
on investments........................ -- (29,240) 18,914 7,113
--- -------- ------- -------
Increase (decrease) in net assets from
operations............................ $23 (11,070) 21,570 21,955
=== ======== ======= =======
</TABLE>
F-11
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds (continued)
----------------------------------------------------------
Capital Appreciation Fund/VA Aggessive Growth Fund/VA
----------------------------------------------------------
Year ended December 31, Year ended December 31,
----------------------------------------------------------
1999 1998 1997 1999 1998 1997
---------- --------- ------------------ ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. 11,323 18,421 94,465 -- 8,230 5,972
Expenses -- Mortality
and expense risk
charges -- Type I
(note 3).............. 24,680 18,337 13,535 30,929 23,326 19,370
Expenses -- Mortality
and expense risk
charges -- Type II
(note 3).............. 2,409 315 -- 1,422 306 --
---------- -------- -------- --------- ------- -------
Net investment income
(expense).............. (15,766) (231) 80,930 (32,351) (15,402) (13,398)
========== ======== ======== ========= ======= =======
Net realized and
unrealized gain on
investments:
Net realized gain
(loss)................ 205,534 89,327 112,639 393,176 93,644 264,595
Unrealized appreciation
(depreciation) on
investments........... 1,083,816 270,706 226,521 2,690,916 277,402 (89,502)
Capital gain
distributions......... 130,214 211,836 -- -- 83,215 113,459
---------- -------- -------- --------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... 1,419,564 571,869 339,160 3,084,092 454,261 288,552
---------- -------- -------- --------- ------- -------
Increase (decrease) in
net assets from
operations............. 1,403,798 571,638 420,090 3,051,741 438,859 275,154
========== ======== ======== ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds (continued)
---------------------------------------------------------
High Income Fund/VA Multiple Strategies Fund/VA
-------------------------- ------------------------------
Year ended December 31, Year ended December 31,
-------------------------- ------------------------------
1999 1998 1997 1999 1998 1997
-------- ------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. $129,252 37,269 104,862 30,217 6,701 23,583
Expenses -- Mortality
and expense risk
charges --
Type I (note 3)....... 13,177 12,467 8,770 5,751 5,131 4,459
Expenses -- Mortality
and expense risk
charges --
Type II (note 3)...... 1,187 111 -- 766 150 --
-------- ------- ------- --------- --------- ---------
Net investment income
(expense).............. 114,888 24,691 96,092 23,700 1,420 19,124
======== ======= ======= ========= ========= =========
Net realized and
unrealized gain on
investments:
Net realized gain
(loss)................ (9,827) 3,380 11,476 12,030 10,586 26,553
Unrealized appreciation
(depreciation) on
investments........... (37,389) (81,675) 28,520 16,700 (5,312) 27,703
Capital gain
distributions......... -- 45,551 763 43,483 37,972 21,730
-------- ------- ------- --------- --------- ---------
Net realized and
unrealized gain (loss)
on investments......... (47,216) (32,744) 40,759 72,213 43,246 75,986
-------- ------- ------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. $ 67,672 (8,053) 136,851 95,913 44,666 95,110
======== ======= ======= ========= ========= =========
</TABLE>
F-12
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Variable Insurance Products Fund
---------------------------------------------------
Money Market High Income
Portfolio Portfolio Equity-Income Portfolio
------------ ------------ -------------------------
Period ended Period ended Year ended December 31,
December 11, December 11, -------------------------
1997 1997 1999 1998 1997
------------ ------------ -------- ------- -------
<S> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............... $31,897 14,963 100,754 77,691 57,767
Expenses -- Mortality and
expense risk charges --
Type I (note 3)......... 1,948 1,461 46,384 41,459 30,384
Expenses -- Mortality and
expense risk charges --
Type II (note 3)........ -- -- 2,894 544 --
------- ------- -------- ------- -------
Net investment income
(expense)................ 29,949 13,502 51,476 35,688 27,383
======= ======= ======== ======= =======
Net realized and
unrealized gain on
investments:
Net realized gain
(loss).................. -- 41,295 273,786 235,107 125,398
Unrealized appreciation
(depreciation) on
investments............. -- (23,320) (193,819) 97,581 539,549
Capital gain
distributions........... -- 1,849 224,259 275,448 282,036
------- ------- -------- ------- -------
Net realized and
unrealized gain (loss) on
investments.............. -- 19,824 304,226 608,136 946,983
------- ------- -------- ------- -------
Increase (decrease) in net
assets from operations... $29,949 33,326 355,702 643,824 974,366
======= ======= ======== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance Products Fund (continued)
-------------------------------------------------------
Growth Portfolio Overseas Portfolio
----------------------------- ------------------------
Year ended December 31, Year ended December 31,
----------------------------- ------------------------
1999 1998 1997 1999 1998 1997
--------- --------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. 17,646 28,150 24,386 32,601 34,556 31,159
Expenses -- Mortality
and expense risk
charges --Type I (note
3).................... 56,960 42,146 30,276 16,186 13,985 12,638
Expenses -- Mortality
and expense risk
charges --Type II
(note 3).............. 3,167 138 -- 579 19 --
--------- --------- ------- ------- ------- -------
Net investment income
(expense).............. (42,481) (14,134) (5,890) 15,836 20,552 18,521
========= ========= ======= ======= ======= =======
Net realized and
unrealized gain on
investments:
Net realized gain
(loss)................ 453,879 728,950 193,439 112,501 98,578 95,087
Unrealized appreciation
(depreciation) on
investments........... 1,452,235 630,736 566,792 685,935 (8,287) (45,710)
Capital gain
distributions......... 864,641 675,592 111,094 53,190 103,670 124,634
--------- --------- ------- ------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... 2,770,755 2,035,278 871,325 851,626 193,961 174,011
--------- --------- ------- ------- ------- -------
Increase (decrease) in
net assets from
operations............. 2,728,274 2,021,144 865,435 867,462 214,513 192,532
========= ========= ======= ======= ======= =======
</TABLE>
F-13
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Variable Insurance Products Fund II
--------------------------------------------------------------
Asset Manager Portfolio Contrafund Portfolio
------------------------------- ------------------------------
Year ended December 31 Year ended December 31
------------------------------- ------------------------------
1999 1998 1997 1999 1998 1997
-------- ------- ------------ ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. $153,442 131,901 121,212 18,437 14,737 9,110
Expenses -- Mortality
and expense risk
charges-- Type I (note
3).................... 33,559 30,607 26,984 23,952 17,652 11,153
Expenses -- Mortality
and expense risk
charges-- Type II
(note 3).............. 439 77 -- 6,221 668 --
-------- ------- ------- ------- ------- -------
Net investment income
(expense).............. 119,444 101,217 94,228 (11,736) (3,583) (2,043)
======== ======= ======= ======= ======= =======
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)................ 64,747 58,132 68,861 354,876 228,313 198,947
Unrealized appreciation
(depreciation) on
investments........... 89,931 32,734 222,652 425,779 398,426 135,687
Capital gain
distributions......... 195,289 395,701 296,760 135,201 108,073 24,629
-------- ------- ------- ------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... 349,967 486,567 588,273 915,856 734,812 359,263
-------- ------- ------- ------- ------- -------
Increase (decrease) in
net assets from
operations............. $469,411 587,784 682,501 904,120 731,229 357,220
======== ======= ======= ======= ======= =======
<CAPTION>
Variable Insurance Products Fund III
--------------------------------------------------------------
Growth Opportunities
Growth & Income Portfolio Portfolio
------------------------------- ------------------------------
Period from Period from
Year ended May 30, Year ended May 30,
December 31, 1997 to December 31, 1997 to
----------------- December 31, ---------------- December 31,
1999 1998 1997 1999 1998 1997
-------- ------- ------------ ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. 2,804 -- -- 3,049 808 --
Expenses -- Mortality
and expense risk
charges-- Type I (note
3).................... 2,165 1,159 45 1,866 1,170 148
Expenses -- Mortality
and expense risk
charges-- Type II
(note 3).............. 2,516 244 -- 866 53 --
-------- ------- ------- ------- ------- -------
Net investment income
(expense).............. (1,877) (1,403) (45) 317 (415) (148)
======== ======= ======= ======= ======= =======
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)................ 28,022 2,566 1,642 10,345 3,612 472
Unrealized appreciation
(depreciation) on
investments........... 21,930 59,468 (1,102) (1,242) 35,308 3,433
Capital gain
distributions......... 5,692 337 -- 5,663 2,865 --
-------- ------- ------- ------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... 55,644 62,371 540 14,766 41,785 3,905
-------- ------- ------- ------- ------- -------
Increase (decrease) in
net assets from
operations............. 53,767 60,968 495 15,083 41,370 3,757
======== ======= ======= ======= ======= =======
</TABLE>
F-14
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Neuberger & Berman
Advisers Management Trust
-----------------------------
Balanced Bond Growth
Portfolio Portfolio Portfolio
--------- --------- ---------
Period ended December 11,
-----------------------------
1997 1997 1997
--------- --------- ---------
<S> <C> <C> <C>
Investment income:
Income -- Ordinary dividends.................... $ 4,567 4,664 --
Expenses -- Mortality and expense risk charges
-- Type I (note 3)............................. 1,723 462 982
Expenses -- Mortality and expense risk charges
-- Type II (note 3)............................ -- -- --
------- ----- -------
Net investment income (expense).................. 2,844 4,202 (982)
======= ===== =======
Net realized and unrealized gain (loss) on in-
vestments:
Net realized gain (loss)........................ 36,568 (162) 37,624
Unrealized appreciation (depreciation) on in-
vestments...................................... (14,898) (48) (18,849)
Capital gain distributions...................... 11,743 -- 11,458
------- ----- -------
Net realized and unrealized gain (loss) on in-
vestments....................................... 33,413 (210) 30,233
------- ----- -------
Increase (decrease) in net assets from opera-
tions........................................... $36,257 3,992 29,251
======= ===== =======
</TABLE>
<TABLE>
<CAPTION>
Federated Insurance Series
------------------------------------------------------------------------------
American Leaders Fund High Income Bond Fund
II II Utility Fund II
-------------------------- ---------------------------------------------------
Year ended December 31, Year ended December 31, Year ended December 31,
-------------------------- ---------------------------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
-------- ------- ------- -------- ------- --------------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. $ 3,192 626 44 15,467 3,125 3,460 6,452 1,649 2,661
Expenses -- Mortality
and expense risk
charges -- Type I
(note 3).............. 1,774 1,082 113 1,149 938 656 1,634 1,345 860
Expenses -- Mortality
and expense risk
charges -- Type II
(note 3).............. 1,482 198 -- 583 41 -- 602 36 --
-------- ------- ------ -------- ------- ------ -------- ------- -------
Net investment income
(expense).............. (64) (654) (69) 13,735 2,146 2,804 4,216 268 1,801
======== ======= ====== ======== ======= ====== ======== ======= =======
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)................ 8,624 (245) 598 (2,384) 1,890 836 3,277 5,077 1,782
Unrealized appreciation
(depreciation) on
investments........... (17,252) 22,437 3,025 (10,198) (3,246) 5,274 (16,132) 11,499 25,287
Capital gain
distributions......... 32,275 8,313 104 1,345 882 159 12,525 10,132 2,268
-------- ------- ------ -------- ------- ------ -------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... 23,647 30,505 3,727 (11,237) (474) 6,269 (330) 26,708 29,337
-------- ------- ------ -------- ------- ------ -------- ------- -------
Increase (decrease) in
net assets from
operations............. $ 23,583 29,851 3,658 2,498 1,672 9,073 3,886 26,976 31,138
======== ======= ====== ======== ======= ====== ======== ======= =======
</TABLE>
F-15
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Alger American Fund
-----------------------------------------------------------
Small Capitalization Portfolio Growth Portfolio
--------------------------------- -------------------------
Year ended December 31, Year ended December 31,
--------------------------------- -------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. $ -- -- -- 2,264 3,185 3,606
Expenses -- Mortality
and expense risk
charges --
Type I (note 3)....... 9,129 6,602 5,518 13,062 8,011 7,350
Expenses -- Mortality
and expense risk
charges --
Type II (note 3)...... 1,012 105 -- 4,272 105 --
---------- --------- --------- ------- ------- -------
Net investment income
(expense).............. (10,141) (6,707) (5,518) (15,070) (4,931) (3,744)
========== ========= ========= ======= ======= =======
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)................ (6,385) (65,245) 109,665 390,753 60,482 103,893
Unrealized appreciation
(depreciation) on
investments........... 405,230 102,269 (21,855) 99,476 293,124 100,012
Capital gain
distributions......... 183,620 119,910 23,157 224,152 156,070 6,410
---------- --------- --------- ------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... 582,465 156,934 110,967 714,381 509,676 210,315
---------- --------- --------- ------- ------- -------
Increase (decrease) in
net assets from
operations............. $ 572,324 150,227 105,449 699,311 504,745 206,571
========== ========= ========= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
PBHG Insurance Series Fund, Inc.
---------------------------------------------------------
PBHG Large Cap Growth
Portfolio PBGH Growth II Portfolio
---------------------------- ----------------------------
Period from Period from
Year ended May 30, Year ended May 30,
December 31, 1997 to December 31, 1997 to
-------------- December 31, -------------- December 31,
1999 1998 1997 1999 1998 1997
------ ------ ------------ ------- ----- ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. -- -- -- -- -- --
Expenses -- Mortality
and expense risk
charges --
Type I (note 3)....... 606 310 63 569 177 43
Expenses -- Mortality
and expense risk
charges --
Type II (note 3)...... 209 17 -- 410 62 --
------ ------ --- ------- ----- ----
Net investment income
(expense).............. (815) (327) (63) (979) (239) (43)
====== ====== === ======= ===== ====
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)................ 5,563 3,310 584 34,202 (197) 34
Unrealized appreciation
(depreciation) on
investments........... 71,826 13,650 92 81,393 8,666 (142)
Capital gain
distributions......... -- -- -- -- -- --
------ ------ --- ------- ----- ----
Net realized and
unrealized gain (loss)
on investments......... 77,389 16,960 676 115,595 8,469 (108)
------ ------ --- ------- ----- ----
Increase (decrease) in
net assets from
operations............. 76,574 16,633 613 114,616 8,230 (151)
====== ====== === ======= ===== ====
</TABLE>
F-16
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Janus Aspen Series
----------------------------------------------------------------------------------
Aggressive Growth Worldwide Growth
Portfolio Growth Portfolio Portfolio
--------------------------- -------------------------- --------------------------
Year ended December 31, Year ended December 31, Year ended December 31,
--------------------------- -------------------------- --------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
---------- ------- ------- --------- ------- ------- --------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............. $ 65,274 -- -- 10,964 81,252 24,526 11,433 109,248 24,679
Expenses -- Mortality
and expense risk
charges -- Type I
(note 3).............. 24,955 13,231 10,376 25,172 16,385 11,319 38,848 27,847 16,118
Expenses -- Mortality
and expense risk
charges -- Type II
(note 3).............. 6,757 391 -- 5,821 257 -- 6,863 646 --
---------- ------- ------- --------- ------- ------- --------- ------- -------
Net investment income
(expense).............. 33,562 (13,622) (10,376) (20,029) 64,610 13,207 (34,278) 80,755 8,561
---------- ------- ------- --------- ------- ------- --------- ------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)................ 861,331 171,826 202,593 379,537 115,203 94,811 404,104 233,014 89,852
Unrealized appreciation
(depreciation) on
investments........... 3,141,869 488,613 (21,456) 1,328,882 576,941 155,268 3,266,899 623,292 251,916
Capital gain
distributions......... 111,141 -- -- 21,779 65,314 22,729 -- 43,815 11,139
---------- ------- ------- --------- ------- ------- --------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... 4,114,341 660,439 181,137 1,730,198 757,458 272,808 3,671,003 900,121 352,907
---------- ------- ------- --------- ------- ------- --------- ------- -------
Increase (decrease) in
net assets
from operations........ $4,147,903 646,817 170,761 1,710,169 822,068 286,015 3,636,725 980,876 361,468
========== ======= ======= ========= ======= ======= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
--------------------------------------------
Flexible Income
Balanced Portfolio Portfolio
----------------------- --------------------
Year ended
Year ended December 31, December 31,
----------------------- --------------------
1999 1998 1997 1999 1998 1997
-------- ------- ------ ------ ----- -----
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary dividends..... $ 43,936 36,704 11,688 12,568 4,328 3,475
Expenses -- Mortality and expense
risk charges -- Type I
(note 3)........................ 9,328 5,806 2,145 715 449 240
Expenses -- Mortality and expense
risk charges -- Type II (note
3).............................. 3,366 484 -- 511 10 --
-------- ------- ------ ------ ----- -----
Net investment income (expense)... 31,242 30,414 9,543 11,342 3,869 3,235
-------- ------- ------ ------ ----- -----
Net realized and unrealized gain
on investments:
Net realized gain (loss)......... 79,219 24,529 8,229 (1,786) 1,687 305
Unrealized appreciation (depreci-
ation) on investments........... 321,542 216,533 41,009 (8,109) (74) 72
Capital gain distributions....... -- 5,970 404 566 167 17
-------- ------- ------ ------ ----- -----
Net realized and unrealized gain
(loss) on investments............ 400,761 247,032 49,642 (9,329) 1,780 394
-------- ------- ------ ------ ----- -----
Increase (decrease) in net assets
from operations.................. $432,003 277,446 59,185 2,013 5,649 3,629
======== ======= ====== ====== ===== =====
</TABLE>
F-17
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
--------------------------------------------------------
International Growth Capital Appreciation
Portfolio Portfolio
------------------------- -----------------------------
Period from
Year ended May 21, 1997
Year ended December 31, December 31, to
------------------------- --------------- December 31,
1999 1998 1997 1999 1998 1997
-------- ------- ------- ------- ------ ------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary div-
idends................ 2,819 10,815 1,441 509 132 27
Expenses -- Mortality
and expense risk
charges --
Type I (note 3)....... 4,231 3,098 1,442 3,352 1,260 34
Expenses -- Mortality
and expense risk
charges --
Type II (note 3)...... 4,585 580 -- 4,381 91 --
-------- ------- ------- ------- ------ ---
Net investment income
(expense).............. (5,997) 7,137 (1) (7,224) (1,219) (7)
-------- ------- ------- ------- ------ ---
Net realized and
unrealized gain on in-
vestments:
Net realized gain
(loss)................ 54,154 40,482 5,037 82,791 28,363 106
Unrealized appreciation
(depreciation) on in-
vestments............. 923,354 16,463 16,037 513,292 45,429 697
Capital gain distribu-
tions................. -- 1,528 275 5,853 -- --
-------- ------- ------- ------- ------ ---
Net realized and
unrealized gain (loss)
on investments......... 977,508 58,473 21,349 601,936 73,792 803
-------- ------- ------- ------- ------ ---
Increase (decrease) in
net assets from opera-
tions.................. 971,511 65,610 21,348 594,712 72,573 796
======== ======= ======= ======= ====== ===
</TABLE>
<TABLE>
<CAPTION>
Goldman Sachs Variable Insurance Trust
---------------------------------------------------
Growth and Income Fund Mid Cap Value Fund
------------------------- -------------------------
Period from Period from
October 1, August 28,
Year ended 1998 to Year ended 1998 to
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............... $242 95 3,355 408
Expenses -- Mortality and
expense risk charges --
Type I (note 3)......... 3 2 293 --
Expenses -- Mortality and
expense risk charges --
Type II (note 3)........ 112 17 448 117
---- --- ------ -----
Net investment income
(expense)............. 127 76 2,614 291
---- --- ------ -----
Net realized and unrealized
gain (loss) on
investments:
Net realized gain
(loss).................. 585 120 87 3,047
Unrealized appreciation
(depreciation) on
investments............. (222) 496 (2,647) 2,320
Capital gain
distributions........... -- -- -- --
---- --- ------ -----
Net realized and
unrealized gain (loss)
on investments........ 363 616 (2,560) 5,367
---- --- ------ -----
Increase (decrease) in
net assets from opera-
tions................. $490 692 54 5,658
==== === ====== =====
</TABLE>
F-18
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Operations, Continued
<TABLE>
<CAPTION>
Salomon Brothers Variable Series Fund Inc.
---------------------------------------------------
Strategic Total
Bond Fund Investors Fund Return Fund
------------ ------------------------- ------------
Period from
December 8,
Year ended Year ended 1998 to Year ended
December 31, December 31, December 31, December 31,
1999 1999 1998 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
dividends............... $2,773 44 6 27
Expenses -- Mortality and
expense risk charges --
Type I (note 3)......... -- 14 1 4
Expenses -- Mortality and
expense risk charges --
Type II (note 3)........ 163 6 -- --
------ --- --- ---
Net investment income
(expense)............. 2,610 24 5 23
------ --- --- ---
Net realized and unrealized
gain (loss) on investments:
Net realized gain
(loss).................. 3 22 -- (1)
Unrealized appreciation
(depreciation) on
investments............. (1,908) 232 53 (37)
Capital gain distribu-
tions................... -- -- -- --
------ --- --- ---
Net realized and
unrealized gain (loss)
on investments........ (1,905) 254 53 (38)
------ --- --- ---
Increase (decrease) in
net assets from opera-
tions................. $ 705 278 58 (15)
====== === === ===
</TABLE>
See accompanying notes to financial statements.
F-19
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
----------------------------------------------
Government
Securities
S&P 500 Index Fund Fund
-------------------------------- ------------
Year ended December 31, Period ended
-------------------------------- December 11,
1999 1998 1997 1997
---------- --------- --------- ------------
<S> <C> <C> <C> <C>
Increase (decrease) in net as-
sets
From operations:
Net investment income
(expense).................... $ 11,612 16,310 23,489 (2,085)
Net realized gain (loss)...... 367,307 200,588 18,179 1,254
Unrealized appreciation
(depreciation) on
investments.................. 797,281 637,587 504,771 18,064
Capital gain distributions.... 82,915 154,941 48,005 --
---------- --------- --------- --------
Increase (decrease) in net
assets from operations...... 1,259,115 1,009,426 594,444 17,233
---------- --------- --------- --------
From capital transactions:
Net premiums.................. 2,348,331 1,553,985 496,133 36,517
Loan interest................. (199) (667) (2,663) 290
Transfers (to) from the
general account of GE Life
and Annuity:
Death benefits................ (10,568) -- (146,232) --
Surrenders.................... (226,385) 2,166 (28,437) (15,385)
Loans......................... (147,819) (28,223) (12,720) (4,137)
Cost of insurance and
administrative expense
(note 3)..................... (761,285) (453,919) (235,713) (23,090)
Transfer gain (loss) and
transfer fees................ (1,620) (111,502) (793) (675)
Interfund transfers........... 702,040 (71,575) 954,081 (322,397)
---------- --------- --------- --------
Increase (decrease) in net
assets from capital
transactions................ 1,902,495 890,265 1,023,656 (328,877)
---------- --------- --------- --------
Increase (decrease) in net
assets........................ 3,161,610 1,899,691 1,618,100 (311,644)
Net assets at beginning of
year.......................... 5,307,680 3,407,989 1,789,889 311,644
---------- --------- --------- --------
Net assets at end of year...... $8,469,290 5,307,680 3,407,989 --
========== ========= ========= ========
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
--------------------------------------------------------------------
Money Market Fund Total Return Fund
----------------------------------- -------------------------------
Year ended December 31, Year ended December 31,
----------------------------------- -------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............. $ 223,302 140,953 93,988 57,566 181,452 62,574
Net realized gain
(loss)................ 3 517 298,840 10,066 (62,109) (54,073)
Unrealized appreciation
(depreciation) on
investments........... (3) (517) (300,439) 319,427 423,954 123,159
Capital gain
distributions......... -- -- -- 102,400 -- 370,006
----------- ---------- ---------- --------- --------- ---------
Increase (decrease) in
net assets from
operations........... 223,302 140,953 92,389 489,459 543,297 501,666
----------- ---------- ---------- --------- --------- ---------
From capital
transactions:
Net premiums........... 7,117,726 5,316,844 3,634,434 251,092 252,081 169,809
Loan interest.......... 132 2,567 (3,118) (279) (327) (299)
Transfers (to) from the
general account of GE
Life and Annuity
Death benefits........ -- (1,231) (15,944) (16,660) (21,333) (7,452)
Surrenders............. (143,091) (127,487) (10,646) (23,097) (16,053) (14,564)
Loans.................. (382,888) (92,788) (5,231) (24,984) (8,458) (3,824)
Cost of insurance and
administrative expense
(note 3).............. (488,436) (379,891) (284,457) (406,244) (385,697) (357,384)
Transfer gain (loss)
and transfer fees..... (7,217) (24,254) (233,325) (706) 26,522 39,224
Interfund transfers.... (5,024,217) (3,025,038) (3,317,791) (27,330) 84,003 (2,809)
----------- ---------- ---------- --------- --------- ---------
Increase (decrease) in
net assets from
capital
transactions......... 1,072,009 1,668,722 (236,078) (248,208) (69,262) (177,299)
----------- ---------- ---------- --------- --------- ---------
Increase (decrease) in
net assets............. 1,295,311 1,809,675 (143,689) 241,251 474,035 324,367
Net assets at beginning
of year................ 4,071,591 2,261,916 2,405,605 4,077,703 3,603,668 3,279,301
----------- ---------- ---------- --------- --------- ---------
Net assets at end of
year................... $ 5,366,902 4,071,591 2,261,916 4,318,954 4,077,703 3,603,668
=========== ========== ========== ========= ========= =========
</TABLE>
F-20
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
----------------------------------------------------------------------------------
International Equity Real Estate Securities
Fund Fund Global Income Fund
------------------------- ------------------------- ----------------------------
Period from
Year ended June 18,
Year ended December 31, Year ended December 31, December 31, 1997 to
------------------------- ------------------------- -------------- December 31,
1999 1998 1997 1999 1998 1997 1999 1998 1997
-------- ------- ------ ------- ------- ------- ------ ------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............. $ (654) 5,294 286 20,269 11,599 6,424 858 1,662 394
Net realized gain
(loss)................ 5,881 93 654 (14,908) (13,410) 2,800 (128) 3,656 35
Unrealized appreciation
(depreciation) on
investments........... 34,706 8,003 (5,290) (10,218) (64,135) (2,725) (4,715) 1,314 (329)
Capital gain
distributions......... 16,048 -- 7,881 1,216 12,450 13,442 95 84 37
-------- ------- ------ ------- ------- ------- ------ ------ -----
Increase (decrease) in
net assets from
operations........... 55,981 13,390 3,531 (3,641) (53,496) 19,941 (3,890) 6,716 137
From capital
transactions:
Net premiums........... 152,398 27,099 23,197 121,762 210,779 79,557 23,325 15,696 1,293
Loan interest.......... 14 1 4 47 (6) 2 -- -- --
Transfers (to) from the
general account of
GE Life and Annuity:
Death benefits........ (7,573) -- -- (11,787) -- -- -- -- --
Surrenders............ (86) (497) (904) (1,244) (3,842) (692) (1,142) -- --
Loans................. (24,626) (733) (289) (51,101) (660) (874) -- -- (243)
Cost of insurance and
administrative
expense (note 3)..... (40) (10,088) (5,480) (90) (49,575) (17,806) (5,884) (4,405) (373)
Transfer gain (loss)
and transfer fees.... -- 303 (1,837) -- (872) 300 66 128 (9)
Interfund transfers.... (27,880) 10,770 22,059 22,778 41,309 89,769 37,663 8,773 8,418
-------- ------- ------ ------- ------- ------- ------ ------ -----
Increase (decrease) in
assets from capital
transactions......... 92,207 26,855 36,750 80,365 197,133 150,256 54,028 20,192 9,086
-------- ------- ------ ------- ------- ------- ------ ------ -----
Increase (decrease) in
net assets............. 148,188 40,245 40,281 76,724 143,637 170,197 50,138 26,908 9,223
Net assets at beginning
of period.............. 115,749 75,504 35,223 344,046 200,409 30,212 36,131 9,223 --
-------- ------- ------ ------- ------- ------- ------ ------ -----
Net assets at end of
period................. $263,937 115,749 75,504 420,770 344,046 200,409 86,269 36,131 9,223
======== ======= ====== ======= ======= ======= ====== ====== =====
</TABLE>
F-21
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
--------------------------------------------------------------
Value Equity Fund Income Fund
------------------------------- ------------------------------
Period from Period from
Year ended June 17, Year ended December 12,
December 31, 1997 to December 31, 1997 to
----------------- December 31, ---------------- December 31,
1999 1998 1997 1999 1998 1997
-------- ------- ------------ ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............. $ 1,738 507 (1) 18,370 17,873 876
Net realized gain
(loss)................ 14,236 (305) (9) (78) 3,321 (838)
Unrealized appreciation
(depreciation) on
investments........... 22,084 11,219 1 (28,051) 4,423 523
Capital gain
distributions......... -- 5,046 99 662 3,666 --
-------- ------- ------ ------- ------- -------
Increase (decrease) in
net assets from
operations........... 38,058 16,467 90 (9,097) 29,283 561
From capital
transactions:
Net premiums........... 219,094 108,124 5,797 68,061 59,967 735
Loan interest.......... (57) 34 2 11 (75) 12
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... (10,051) -- -- -- -- --
Surrenders............. (4,932) (2,851) -- (3,866) (29,103) --
Loans.................. (20,880) (1,112) -- (2,087) (665) --
Cost of insurance and
administrative expense
(note 3).............. (40,864) (13,611) (1,002) (34,405) (32,512) (1,655)
Transfer gain (loss)
and transfer fees..... (8,769) (3,719) 35 (166) (444) (30)
Interfund transfers.... 167,398 95,455 8,637 (45,407) 29,042 378,428
-------- ------- ------ ------- ------- -------
Increase (decrease) in
net assets from
capital
transactions......... 300,939 182,320 13,469 (17,859) 26,210 377,490
-------- ------- ------ ------- ------- -------
Increase (decrease) in
net assets............. 338,997 198,787 13,559 (26,956) 55,493 378,051
Net assets at beginning
of period.............. 212,346 13,559 -- 433,544 378,051 --
-------- ------- ------ ------- ------- -------
Net assets at end of
period................. $551,343 212,346 13,559 406,588 433,544 378,051
======== ======= ====== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
---------------------------------------
Premier
Growth Equity
U.S. Equity Fund Fund
------------------------- -------------
Period from Period from
June 10, June 9, 1999
Year ended 1998 to to
December 31, December 31, December 31,
1999 1998 1999
------------ ------------ -------------
<S> <C> <C> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense)...... 223 222 (95)
Net realized gain (loss)............. 2,835 144 344
Unrealized appreciation
(depreciation) on investments....... 6,670 3,300 13,285
Capital gain distributions........... 10,093 600 4,011
------- ------ -------
Increase (decrease) in net assets
from operations.................... 19,821 4,266 17,545
From capital transactions:
Net premiums......................... 137,612 30,322 35,871
Loan interest........................ -- -- --
Transfers (to) from the general
account of GE Life and Annuity:
Death benefits....................... -- -- --
Surrenders........................... (462) (80) --
Loans................................ -- -- --
Cost of insurance and administrative
expense (note 3).................... (26,579) (2,198) (5,472)
Transfer gain (loss) and transfer
fees................................ (459) 172 1,248
Interfund transfers.................. 38,985 18,463 88,483
------- ------ -------
Increase (decrease) in net assets
from capital transactions.......... 149,097 46,679 120,130
------- ------ -------
Increase (decrease) in net assets..... 168,918 50,945 137,675
Net assets at beginning of period..... 50,945 -- --
------- ------ -------
Net assets at end of period........... 219,863 50,945 137,675
======= ====== =======
</TABLE>
F-22
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
--------------------------------------
Money Fund Bond Fund/VA
------------ -------------------------
Period ended Year ended December 31,
December 11, -------------------------
1997 1999 1998 1997
------------ ------- ------- -------
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
From operations:
Net investment income (expense)...... $ 23 18,170 2,656 14,842
Net realized gain (loss)............. -- (1,863) 2,899 276
Unrealized appreciation
(depreciation) on investments....... -- (29,542) 11,167 5,965
Capital gain distributions........... -- 2,165 4,848 872
----- ------- ------- -------
Increase (decrease) in net assets
from operations.................... 23 (11,070) 21,570 21,955
From capital transactions:
Net premiums......................... 111 148,327 164,138 56,837
Loan interest........................ -- 18 (39) (13)
Transfers (to) from the general
account of GE Life and Annuity:
Death benefits....................... -- -- -- --
Surrenders........................... -- (13,864) (17,769) (17,569)
Loans................................ -- (838) (1,348) (2,018)
Cost of insurance and administrative
expense (note 3).................... (205) (63,471) (40,698) (23,294)
Transfer gain (loss) and transfer
fees................................ 15 211 188 (1,279)
Transfers (to) from the Guarantee
Account.............................. -- -- -- --
Interfund transfers................... (651) 108,262 51,994 (12,046)
----- ------- ------- -------
Increase (decrease) in net assets
from capital transactions.......... (730) 178,645 156,466 618
----- ------- ------- -------
Increase (decrease) in net assets..... (707) 167,575 178,036 22,573
Net assets at beginning of year....... 707 470,449 292,413 269,840
----- ------- ------- -------
Net assets at end of year............. $ -- 638,024 470,449 292,413
===== ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds (continued)
----------------------------------------------------------------
Aggressive Growth Fund/VA Capital Appreciation Fund/VA
------------------------------- -------------------------------
Year ended December 31, Year ended December 31,
------------------------------- -------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
From operations:
Net investment income
(expense)............. (32,351) (15,402) (13,398) (15,766) (231) 80,930
Net realized gain
(loss)................ 393,176 93,644 264,595 205,534 89,327 112,639
Unrealized appreciation
(depreciation) on
investments........... 2,690,916 277,402 (89,502) 1,083,816 270,706 226,521
Capital gain
distributions......... -- 83,215 113,459 130,214 211,836 --
--------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations........... 3,051,741 438,859 275,154 1,403,798 571,638 420,090
From capital
transactions:
Net premiums........... 706,892 826,696 794,773 823,296 687,713 460,957
Loan interest.......... (459) 171 305 (802) (398) (541)
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... (2,341) -- (313) (3,528) -- --
Surrenders............. (160,601) (139,804) (41,954) (104,939) (137,732) (69,141)
Loans.................. (187,114) (62,192) (38,517) (44,498) (10,897) (12,664)
Cost of insurance and
administrative expense
(note 3).............. (345,495) (336,566) (307,499) (302,052) (260,178) (176,831)
Transfer gain (loss)
and transfer fees..... (9,130) 2,879 13,531 (383) (93) (4,635)
Transfers (to) from the
Guarantee Account...... -- (257) -- -- -- --
Interfund transfers..... (235,950) (1,915) 61,532 (28,758) 100,907 180,805
--------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
capital
transactions......... (234,198) 289,012 481,858 338,336 379,322 377,950
--------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets............. 2,817,543 727,871 757,012 1,742,134 950,960 798,040
Net assets at beginning
of year................ 3,826,947 3,099,076 2,342,064 3,228,873 2,277,913 1,479,873
--------- --------- --------- --------- --------- ---------
Net assets at end of
year................... 6,644,490 3,826,947 3,099,076 4,971,007 3,228,873 2,277,913
========= ========= ========= ========= ========= =========
</TABLE>
F-23
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes In Net Assets, Continued
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds (continued)
-----------------------------------------------------------
Multiple Strategies
High Income Fund Fund
-------------------------------- -------------------------
Year ended December 31, Year ended December 31,
-------------------------------- -------------------------
1999 1998 1997 1999 1998 1997
---------- --------- --------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
From operations:
Net investment income
(expense)............. $ 114,888 24,691 96,092 23,700 1,420 19,124
Net realized gain
(loss)................ (9,827) 3,380 11,476 12,030 10,586 26,553
Unrealized appreciation
(depreciation) on
investments........... (37,389) (81,675) 28,520 16,700 (5,312) 27,703
Capital gain
distributions......... -- 45,551 763 43,483 37,972 21,730
---------- --------- --------- ------- ------- -------
Increase (decrease) in
net assets from
operations........... 67,672 (8,053) 136,851 95,913 44,666 95,110
---------- --------- --------- ------- ------- -------
From capital
transactions:
Net premiums........... 445,041 464,843 359,877 193,685 235,155 132,071
Loan interest.......... 890 (313) (10) (5) (157) (129)
Transfers (to) from the
general account of
GE Life and Annuity:
Death benefits....... (215) (3,028) -- (253) -- --
Surrenders........... (82,275) (91,485) (19,540) (26,225) (8,552) (51,445)
Loans................ (44,238) (16,569) (25,149) (8,254) (9,879) (4,961)
Cost of insurance and
administrative
expense (note 3)... (170,939) (190,705) (162,386) (68,019) (68,755) (65,223)
Transfer gain (loss)
and transfer fees.... (1,499) 2,861 944 (182) (109) (84)
Transfers (to) from the
Guarantee Account..... (4) -- -- -- -- --
Interfund transfers.... 43,275 46,306 367,417 (53,287) (12,778) (13,534)
---------- --------- --------- ------- ------- -------
Increase (decrease) in
net assets from
capital
transactions......... 190,036 211,910 521,153 37,460 134,925 (3,305)
---------- --------- --------- ------- ------- -------
Increase (decrease) in
net assets............. 257,708 203,857 658,004 133,373 179,591 91,805
Net assets at beginning
of year................ 1,854,608 1,650,751 992,747 846,057 666,466 574,661
---------- --------- --------- ------- ------- -------
Net assets at end of
year................... $2,112,316 1,854,608 1,650,751 979,430 846,057 666,466
========== ========= ========= ======= ======= =======
</TABLE>
F-24
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Variable Insurance Products Fund
---------------------------------------------------------
Money High
Market Income
Portfolio Portfolio Equity-Income Portfolio
------------ ------------ -------------------------------
Period ended Period ended Year ended December 31,
December 11, December 11, -------------------------------
1997 1997 1999 1998 1997
------------ ------------ --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
From operations:
Net investment income
(expense)............. $ 29,949 13,502 51,476 35,688 27,383
Net realized gain
(loss)................ -- 41,295 273,786 235,107 125,398
Unrealized appreciation
(depreciation) on
investments........... -- (23,320) (193,819) 97,581 539,549
Capital gain
distributions......... -- 1,849 224,259 275,448 282,036
--------- -------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 29,949 33,326 355,702 643,824 974,366
--------- -------- --------- --------- ---------
From capital
transactions:
Net premiums........... -- 208 1,437,479 1,528,326 1,111,418
Loan interest.......... (34) (41) 956 (659) 623
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... -- -- (26,021) (4,313) (276)
Surrenders............. (2) (2,471) (195,718) (292,782) (74,706)
Loans.................. (1,093) (1,664) (150,364) (48,745) (43,806)
Cost of insurance and
administrative expense
(note 3).............. (18,137) (16,918) (579,765) (625,045) (475,456)
Transfer gain (loss)
and transfer fees..... (15,912) 1,294 (4,942) 3,459 21,702
Interfund transfers.... (310,424) (226,946) (644,610) 111,431 662,909
--------- -------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... (345,602) (246,538) (162,985) 671,672 1,202,408
--------- -------- --------- --------- ---------
Increase (decrease) in
net assets............. (315,653) (213,212) 192,717 1,315,496 2,176,774
Net assets at beginning
of year................ 315,653 213,212 6,713,088 5,397,592 3,220,818
--------- -------- --------- --------- ---------
Net assets at end of
year................... $ -- -- 6,905,805 6,713,088 5,397,592
========= ======== ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance Products Fund (continued)
------------------------------------------------------------------
Growth Portfolio Overseas Portfolio
--------------------------------- -------------------------------
Year ended December 31, Year ended December 31,
--------------------------------- -------------------------------
1999 1998 1997 1999 1998 1997
----------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income
(expense)............. $ (42,481) (14,134) (5,890) 15,836 20,552 18,521
Net realized gain
(loss)................ 453,879 728,950 193,439 112,501 98,578 95,087
Unrealized appreciation
(depreciation) on
investments........... 1,452,235 630,736 566,792 685,935 (8,287) (45,710)
Capital gain
distributions......... 864,641 675,592 111,094 53,190 103,670 124,634
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 2,728,274 2,021,144 865,435 867,462 214,513 192,532
----------- --------- --------- --------- --------- ---------
From capital
transactions:
Net premiums........... 1,388,701 1,067,020 1,063,353 364,398 357,948 366,213
Loan interest.......... (4,205) (3,767) (786) (189) (1,149) (656)
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... (14,970) (2,159) (12,511) (3,758) -- (264)
Surrenders............. (438,334) (303,094) (119,903) (92,920) (94,164) (78,977)
Loans.................. (133,503) (67,251) (102,452) (37,514) (10,363) (29,580)
Cost of insurance and
administrative expense
(note 3).............. (614,236) (550,302) (468,850) (164,565) (172,299) (181,619)
Transfer gain (loss)
and transfer fees..... (14,687) (32,108) (321) (2,197) 3,188 2,923
Interfund transfers.... (344,635) 735,023 127,136 (89,327) 7,063 (292,022)
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... (175,869) 843,362 485,666 (26,072) 90,224 (213,982)
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets............. 2,552,405 2,864,506 1,351,101 841,390 304,737 (21,450)
Net assets at beginning
of year................ 7,826,253 4,961,747 3,610,646 2,043,917 1,739,180 1,760,630
----------- --------- --------- --------- --------- ---------
Net assets at end of
year................... $10,378,658 7,826,253 4,961,747 2,885,307 2,043,917 1,739,180
=========== ========= ========= ========= ========= =========
</TABLE>
F-25
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Variable Insurance Products Fund II
-----------------------------------------------------------------
Asset Manager Portfolio Contrafund Portfolio
-------------------------------- -------------------------------
Year ended December 31, Year ended December 31,
-------------------------------- -------------------------------
1999 1998 1997 1999 1998 1997
---------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
From operations:
Net investment income
(expense)............. $ 119,444 101,217 94,228 (11,736) (3,583) (2,043)
Net realized gain
(loss)................ 64,747 58,132 68,861 354,876 228,313 198,947
Unrealized appreciation
(depreciation) on
investments........... 89,931 32,734 222,652 425,779 398,426 135,687
Capital gain
distributions......... 195,289 395,701 296,760 135,201 108,073 24,629
---------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 469,411 587,784 682,501 904,120 731,229 357,220
---------- --------- --------- --------- --------- ---------
From capital
transactions:
Net premiums........... 477,913 513,149 644,004 1,028,819 947,585 617,546
Loan interest.......... (525) (263) (381) (1,317) (583) (140)
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... (2,250) (4,354) -- -- (3,241) (5,439)
Surrenders............. (104,369) (197,464) (122,367) (127,334) (118,374) (90,538)
Loans.................. (33,108) (31,787) (29,206) (45,515) (45,386) (13,250)
Cost of insurance and
administrative expense
(note 3).............. (282,330) (311,542) (329,030) (391,276) (322,452) (207,378)
Transfer gain (loss)
and transfer fees..... (1,929) 689 12,971 (12,817) 26,399 17,537
Transfers (to) from the
Guarantee Account..... -- -- -- -- (102) --
Interfund transfers.... (188,976) (89,254) 430,161 179 403,462 292,298
---------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... (135,574) (120,826) 606,152 450,739 887,308 610,636
---------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets............. 333,837 466,958 1,288,653 1,354,859 1,618,537 967,856
Net assets at beginning
of period.............. 4,636,363 4,169,405 2,880,752 3,631,860 2,013,323 1,045,467
---------- --------- --------- --------- --------- ---------
Net assets at end of
period................. $4,970,200 4,636,363 4,169,405 4,986,719 3,631,860 2,013,323
========== ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance Products Fund III
---------------------------------------------------------------
Growth Opportunities
Growth & Income Portfolio Portfolio
-------------------------------- ------------------------------
Period from Period from
Year ended May 30, 1997 Year ended May 30, 1997
December 31, to December 31, to
------------------ December 31, ---------------- December 31,
1999 1998 1997 1999 1998 1997
--------- ------- ------------ ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
From operations:
Net investment income
(expense)............. $ (1,877) (1,403) (45) 317 (415) (148)
Net realized gain
(loss)................ 28,022 2,566 1,642 10,345 3,612 472
Unrealized appreciation
(depreciation) on
investments........... 21,930 59,468 (1,102) (1,242) 35,308 3,433
Capital gain
distributions......... 5,692 337 -- 5,663 2,865 --
--------- ------- ------ ------- ------- ------
Increase (decrease) in
net assets from
operations............. 53,767 60,968 495 15,083 41,370 3,757
--------- ------- ------ ------- ------- ------
From capital
transactions:
Net premiums........... 444,542 202,919 5,448 160,164 71,954 6,899
Loan interest.......... 11 -- -- (114) (31) --
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... -- -- -- -- -- --
Surrenders............. (12,518) (2,976) -- (1,860) (448) --
Loans.................. (1,076) 2,468 -- (479) (6,446) --
Cost of insurance and
administrative expense
(note 3).............. (107,292) (31,238) (1,504) (54,942) (24,940) (1,447)
Transfer gain (loss)
and transfer fees..... (9,848) 4,369 1,159 14 976 860
Interfund transfers.... 59,059 125,535 41,761 45,257 132,314 61,508
--------- ------- ------ ------- ------- ------
Increase (decrease) in
net assets from capital
transactions........... 372,878 301,077 46,864 148,040 173,379 67,820
--------- ------- ------ ------- ------- ------
Increase (decrease) in
net assets............. 426,645 362,045 47,359 163,123 214,749 71,577
Net assets at beginning
of period.............. 409,404 47,359 -- 286,326 71,577 --
--------- ------- ------ ------- ------- ------
Net assets at end of
period................. $ 836,049 409,404 47,359 449,449 286,326 71,577
========= ======= ====== ======= ======= ======
</TABLE>
F-26
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Neuberger & Berman Advisers Management Trust
---------------------------------------------------
Balanced Bond Growth
Portfolio Portfolio Portfolio
--------------- -------------- --------------
Period ended Period ended Period ended
December 11, December 11, December 11,
1997 1997 1997
--------------- -------------- --------------
<S> <C> <C> <C>
Increase (decrease) in
net assets:
From operations:
Net investment income
(expense)........... $ 2,844 4,202 (982)
Net realized gain
(loss).............. 36,568 (162) 37,624
Unrealized apprecia-
tion (depreciation)
on investments...... (14,898) (48) (18,849)
Capital gain distri-
butions............. 11,743 -- 11,458
--------------- ------------- --------------
Increase (de-
crease) in net
assets from op-
erations........ 36,257 3,992 29,251
--------------- ------------- --------------
From capital transac-
tions:
Net premiums......... 321 -- 578
Loan interest........ (32) -- (111)
Transfers (to) from
the general account
of GE Life and Annu-
ity:
Death benefits..... -- -- --
Surrenders......... (12,775) (61) (3,450)
Loans.............. (1,513) -- (1,168)
Cost of insurance
and administrative
expense (note 3).. (11,724) (1,655) (6,896)
Transfer gain
(loss) and trans-
fer fees.......... (153) (1,438) 2,241
Interfund transfers.. (254,395) (80,382) (154,994)
--------------- ------------- --------------
Increase (de-
crease) in net
assets from cap-
ital transac-
tions........... (280,271) (83,536) (163,800)
--------------- ------------- --------------
Increase (decrease) in
net assets............ (244,014) (79,544) (134,549)
Net assets at beginning
of year............... 244,014 79,544 134,549
--------------- ------------- --------------
Net assets at end of
year.................. $ -- -- --
=============== ============= ==============
</TABLE>
F-27
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Federated Insurance Series
---------------------------------------------------------------------------------
American Leaders Fund
II High Income Bond Fund II Utility Fund II
------------------------- --------------------------- -------------------------
Year ended December 31, Year ended December 31, Year ended December 31,
------------------------- --------------------------- -------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
-------- ------- ------ -------- -------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............. $ (64) (654) (69) 13,735 2,146 2,804 4,216 268 1,801
Net realized gain
(loss)................ 8,624 (245) 598 (2,384) 1,890 836 3,277 5,077 1,782
Unrealized appreciation
(depreciation) on
investments........... (17,252) 22,437 3,025 (10,198) (3,246) 5,274 (16,132) 11,499 25,287
Capital gain
distributions......... 32,275 8,313 104 1,345 882 159 12,525 10,132 2,268
-------- ------- ------ -------- -------- ------- ------- ------- -------
Increase (decrease) in
net assets from opera-
tions.................. 23,583 29,851 3,658 2,498 1,672 9,073 3,886 26,976 31,138
-------- ------- ------ -------- -------- ------- ------- ------- -------
From capital
transactions:
Net premiums........... 253,145 161,541 26,104 127,454 76,550 41,464 89,180 81,174 43,641
Loan interest.......... 113 25 -- (48) 60 -- (68) 7 --
Transfers (to) from the
general account of
GE Life and Annuity:
Death benefits........ -- -- -- -- -- -- -- -- --
Surrenders............ (10,302) (6,132) -- (4,636) (3,973) -- (2,117) (2,124) --
Loans................. 37 (1,072) -- (105) (3,721) (3,068) (11,083) (315) --
Cost of insurance
(note 3)............. (60,062) (31,404) (3,533) (26,844) (21,339) (9,342) (27,107) (19,854) (10,455)
Transfer gain (loss)
and transfer fees.... (4,143) (1,069) 46 660 (94) 332 (1,353) (312) (196)
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- -- -- -- --
Interfund transfers.... 79,528 120,045 17,684 58,046 16,748 20,749 80,135 (910) 11,808
-------- ------- ------ -------- -------- ------- ------- ------- -------
Increase (decrease) in
net assets from capital
transactions........... 258,316 241,934 40,301 154,527 64,231 50,135 127,587 57,666 44,798
-------- ------- ------ -------- -------- ------- ------- ------- -------
Increase (decrease) in
net assets............. 281,899 271,785 43,959 157,025 65,903 59,208 131,473 84,642 75,936
Net assets at beginning
of period.............. 318,014 46,229 2,270 160,709 94,806 35,598 247,918 163,276 87,340
-------- ------- ------ -------- -------- ------- ------- ------- -------
Net assets at end of
period................. $599,913 318,014 46,229 317,734 160,709 94,806 379,391 247,918 163,276
======== ======= ====== ======== ======== ======= ======= ======= =======
</TABLE>
F-28
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Alger American Fund
---------------------------------------------------------------
Small Capitalization
Portfolio Growth Portfolio
------------------------------ -------------------------------
Year ended December 31, Year ended December 31,
------------------------------ -------------------------------
1999 1998 1997 1999 1998 1997
---------- --------- ------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............. $ (10,141) (6,707) (5,518) (15,070) (4,931) (3,744)
Net realized gain
(loss)................ (6,385) (65,245) 109,665 390,753 60,482 103,893
Unrealized appreciation
(depreciation) on
investments........... 405,230 102,269 (21,855) 99,476 293,124 100,012
Capital gain
distributions......... 183,620 119,910 23,157 224,152 156,070 6,410
---------- --------- ------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 572,324 150,227 105,449 699,311 504,745 206,571
---------- --------- ------- --------- --------- ---------
From capital
transactions:
Net premiums........... 370,003 367,472 293,677 885,773 322,362 338,476
Loan interest.......... 92 94 1,571 49 79 578
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... -- (743) -- -- (828) --
Surrenders............. (45,840) (24,987) (3,177) (29,769) (132,389) (17,220)
Loans.................. (19,152) (29,830) (3,833) (10,722) 10,255 (5,609)
Cost of insurance (note
3).................... (124,312) (108,923) (88,074) (238,219) (130,212) (109,328)
Transfer gain (loss)
and transfer fees..... 1,435 8,000 22,932 (2,742) 6,290 (92,300)
Transfers (to) from the
Guarantee Account..... (4) -- -- (4) -- --
Interfund transfers.... 400,632 (11,610) 69,375 96,272 381,092 (862,640)
---------- --------- ------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... 582,854 199,473 292,471 700,638 456,649 (748,043)
---------- --------- ------- --------- --------- ---------
Increase (decrease) in
net assets............. 1,155,178 349,700 397,920 1,399,949 961,394 (541,472)
Net assets at beginning
of period.............. 1,169,395 819,695 421,775 1,826,506 865,112 1,406,584
---------- --------- ------- --------- --------- ---------
Net assets at end of
period................. $2,324,573 1,169,395 819,695 3,226,455 1,826,506 865,112
========== ========= ======= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
PBHG Insurance Series Fund, Inc.
------------------------------------------------------------
PBHG Large Cap
Growth Portfolio PBGH Growth II Portfolio
------------------------------ -----------------------------
Period from Period from
Year ended May 30, Year ended May 30,
December 31, 1997 to December 31, 1997 to
---------------- December 31, --------------- December 31,
1999 1998 1997 1999 1998 1997
-------- ------ ------------ ------- ------ ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............. $ (815) (327) (63) (979) (239) (43)
Net realized gain
(loss)................ 5,563 3,310 584 34,202 (197) 34
Unrealized appreciation
(depreciation) on
investments........... 71,826 13,650 92 81,393 8,666 (142)
Capital gain
distributions......... -- -- -- -- -- --
-------- ------ ------ ------- ------ ------
Increase (decrease) in
net assets from
operations............. 76,574 16,633 613 114,616 8,230 (151)
-------- ------ ------ ------- ------ ------
From capital
transactions:
Net premiums........... 50,946 38,098 4,425 57,283 19,247 10,354
Loan interest.......... (132) 15 -- -- -- --
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits......... -- -- -- -- -- --
Surrenders............. (2,203) (949) (181) (6,046) (286) --
Loans.................. (336) (6,899) -- -- -- --
Cost of insurance (note
3).................... (20,936) (9,007) (1,384) (13,614) (8,107) (1,598)
Transfer gain (loss)
and transfer fees..... (882) (239) 401 (29) (1,497) (24)
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- --
Interfund transfers.... 14,590 14,195 22,634 60,751 30,191 12,519
-------- ------ ------ ------- ------ ------
Increase (decrease) in
net assets from capital
transactions........... 41,047 35,214 25,895 98,345 39,548 21,251
-------- ------ ------ ------- ------ ------
Increase (decrease) in
net assets............. 117,621 51,847 26,508 212,961 47,778 21,100
Net assets at beginning
of period.............. 78,355 26,508 -- 68,878 21,100 --
-------- ------ ------ ------- ------ ------
Net assets at end of
period................. $195,976 78,355 26,508 281,839 68,878 21,100
======== ====== ====== ======= ====== ======
</TABLE>
F-29
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Janus Aspen Series
--------------------------------------------------------------------------------------------------
Aggressive Growth Portfolio Growth Portfolio Worldwide Growth Portfolio
-------------------------------- ------------------------------- -------------------------------
Year ended December 31, Year ended December 31, Year ended December 31,
-------------------------------- ------------------------------- -------------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
---------- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets:
From operations:
Net investment income
(expense)............. $ 33,562 (13,622) (10,376) (20,029) 64,610 13,207 (34,278) 80,755 8,561
Net realized gain
(loss)................ 861,331 171,826 202,593 379,537 115,203 94,811 404,104 233,014 89,852
Unrealized appreciation
(depreciation) on
investments........... 3,141,869 488,613 (21,456) 1,328,882 576,941 155,268 3,266,899 623,292 251,916
Capital gain
distributions......... 111,141 -- -- 21,779 65,314 22,729 -- 43,815 11,139
---------- --------- --------- --------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 4,147,903 646,817 170,761 1,710,169 822,068 286,015 3,636,725 980,876 361,468
---------- --------- --------- --------- --------- --------- --------- --------- ---------
From capital
transactions:
Net premiums........... 1,082,138 624,199 525,446 1,295,975 731,597 531,252 1,535,217 1,375,973 822,511
Loan interest.......... (1,654) 113 (1,809) (37) 114 514 (1,750) (462) 740
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits........ (6,162) (826) -- (5,481) (857) -- (24,630) (1,493) --
Surrenders............ (129,518) (129,710) (39,796) (115,738) (112,392) (19,282) (104,073) (169,492) (35,503)
Loans................. (154,373) (41,049) (7,351) (48,269) (5,077) (17,285) (77,866) (55,021) (11,414)
Cost of insurance and
administrative ex-
pense (note 3)....... (385,151) (220,183) (186,650) (383,988) (247,297) (173,865) (598,888) (464,790) (279,525)
Transfer gain (loss)
and transfer fees.... 24,215 18,812 45,321 8,881 537 8,623 4,454 552 3,261
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- -- -- (100) --
Interfund transfers.... 1,428,558 (391,359) 436,211 1,134,259 208,382 231,416 163,874 355,363 795,994
---------- --------- --------- --------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... 1,858,053 (140,003) 771,372 1,885,602 575,007 561,373 896,338 1,040,530 1,296,064
---------- --------- --------- --------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets............. 6,005,956 506,814 942,133 3,595,771 1,397,075 847,388 4,533,063 2,021,406 1,657,532
Net assets at beginning
of period.............. 2,532,006 2,025,192 1,083,059 3,358,073 1,960,998 1,113,610 5,100,225 3,078,819 1,421,287
---------- --------- --------- --------- --------- --------- --------- --------- ---------
Net assets at end of
period................. $8,537,962 2,532,006 2,025,192 6,953,844 3,358,073 1,960,998 9,633,288 5,100,225 3,078,819
========== ========= ========= ========= ========= ========= ========= ========= =========
</TABLE>
F-30
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
-------------------------------------------------------------------
Balanced Portfolio Flexible Income Portfolio
------------------------------ -----------------------------------
Year end December 31, Year end December 31,
------------------------------ -----------------------------------
1999 1998 1997 1999 1998 1997
---------- --------- ------- --------- ------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income
(expense)............. $ 31,242 30,414 9,543 11,342 3,869 3,235
Net realized gain
(loss)................ 79,219 24,529 8,229 (1,786) 1,687 305
Unrealized appreciation
(depreciation) on
investments........... 321,542 216,533 41,009 (8,109) (74) 72
Capital gain
distributions......... -- 5,970 404 566 167 17
---------- --------- ------- --------- ------- -------
Increase (decrease) in
net assets from
operations............. 432,003 277,446 59,185 2,013 5,649 3,629
---------- --------- ------- --------- ------- -------
From capital
transactions:
Net premiums........... 542,890 389,374 73,161 47,950 44,607 40,176
Loan interest.......... (227) (51) 6 -- -- --
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits........ -- -- -- -- (1,195) --
Surrenders............. (27,562) (8,613) (6,904) (4,556) (908) --
Loans.................. (6,685) (17,190) (577) -- -- --
Cost of insurance (note
3).................... (186,241) (100,651) (31,146) (21,676) (16,727) (10,448)
Transfer gain (loss)
and transfer fees..... (275) 3,680 305 134 (213) 271
Interfund transfers.... 274,258 143,125 369,258 79,252 (2,619) 28,139
---------- --------- ------- --------- ------- -------
Increase (decrease) in
net assets from capital
transactions........... 596,158 409,674 404,103 101,104 22,945 58,138
---------- --------- ------- --------- ------- -------
Increase (decrease) in
net assets............. 1,028,161 687,120 463,288 103,117 28,594 61,767
Net assets at beginning
of period.............. 1,319,184 632,064 168,776 99,244 70,650 8,883
---------- --------- ------- --------- ------- -------
Net assets at end of
period................. $2,347,345 1,319,184 632,064 202,361 99,244 70,650
========== ========= ======= ========= ======= =======
<CAPTION>
Janus Aspen Series (continued)
-------------------------------------------------------------------
International Growth
Portfolio Capital Appreciation Portfolio
------------------------------ -----------------------------------
Year ended Period from
Year end December 31, December 31, May 21, 1997
------------------------------ ------------------ to December 31,
1999 1998 1997 1999 1998 1997
---------- --------- ------- --------- ------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income
(expense)............. (5,997) 7,137 (1) (7,224) (1,219) (7)
Net realized gain
(loss)................ 54,154 40,482 5,037 82,791 28,363 106
Unrealized appreciation
(depreciation) on
investments........... 923,354 16,463 16,037 513,292 45,429 697
Capital gain
distributions......... -- 1,528 275 5,853 -- --
---------- --------- ------- --------- ------- -------
Increase (decrease) in
net assets from
operations............. 971,511 65,610 21,348 594,712 72,573 796
---------- --------- ------- --------- ------- -------
From capital
transactions:
Net premiums........... 299,992 375,304 137,587 717,055 106,588 1,504
Loan interest.......... (36) 8 7 196 300 --
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits........ -- (645) -- -- -- --
Surrenders............. (17,243) (19,180) (3,539) (7,847) (374) --
Loans.................. (24,736) (432) (462) (4,636) -- --
Cost of insurance (note
3).................... (113,927) (76,148) (30,132) (144,381) (25,927) (1,135)
Transfer gain (loss)
and transfer fees..... (177) 2,743 1,187 (9,482) (8,962) 4
Interfund transfers.... 354,820 168,918 140,874 837,693 79,406 7,451
---------- --------- ------- --------- ------- -------
Increase (decrease) in
net assets from capital
transactions........... 498,693 450,568 245,522 1,388,598 151,031 7,824
---------- --------- ------- --------- ------- -------
Increase (decrease) in
net assets............. 1,470,204 516,178 266,870 1,983,310 223,604 8,620
Net assets at beginning
of period.............. 836,986 320,808 53,938 232,224 8,620 --
---------- --------- ------- --------- ------- -------
Net assets at end of
period................. 2,307,190 836,986 320,808 2,215,534 232,224 8,620
========== ========= ======= ========= ======= =======
</TABLE>
F-31
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Goldman Sachs Variable Insurance Trust
-------------------------------------------------
Growth and Income Fund Mid Cap Value Fund
------------------------ ------------------------
Period from Period from
October 1, August 28,
Year Ended 1998 to Year Ended 1998 to
December 31, December 31 December 31, December 31
1999 1998 1999 1998
------------ ----------- ------------ -----------
<S> <C> <C> <C> <C>
Increase (decrease) in net
assets from operations:
Net investment income (ex-
pense)................... $ 127 76 2,614 291
Net realized gain (loss).. 585 120 87 3,047
Unrealized appreciation
(depreciation) on invest-
ments.................... (222) 496 (2,647) 2,320
Capital gain distribu-
tions.................... -- -- -- --
------- ------ ------- ------
Increase (decrease) in
net assets from opera-
tions.................. 490 692 54 5,658
------- ------ ------- ------
From capital transactions:
Net premiums.............. 14,501 9,253 43,005 6,190
Loan interest............. -- -- -- --
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits........... -- -- -- --
Surrenders............... (171) -- -- --
Loans.................... -- -- -- --
Cost of insurance (note
3)...................... (3,588) (294) (5,287) (1,091)
Transfer gain (loss) and
transfer fees........... (7) (2) 14 (3,036)
Interfund transfers....... (350) 784 330,218 85,487
------- ------ ------- ------
Increase (decrease) in
net assets from capital
transactions........... 10,385 9,741 367,950 87,550
------- ------ ------- ------
Increase (decrease) in net
assets.................... 10,875 10,433 368,004 93,208
Net assets at beginning of
period.................... 10,433 -- 93,208 --
------- ------ ------- ------
Net assets at end of peri-
od........................ $21,308 10,433 461,212 93,208
======= ====== ======= ======
</TABLE>
<TABLE>
<CAPTION>
Salomon Brothers Variable Series Fund Inc.
--------------------------------------------------
Strategic Total
Bond Fund Investors Fund Return Fund
------------ ------------------------ ------------
Period from
December 8,
Year Ended Year Ended 1998 to Year Ended
December 31, December 31, December 31 December 31,
1999 1999 1998 1999
------------ ------------ ----------- ------------
<S> <C> <C> <C> <C>
Increase (decrease) in net
assets from operations:
Net investment income (ex-
pense)................... 2,610 24 5 23
Net realized gain (loss).. 3 22 -- (1)
Unrealized appreciation
(depreciation) on invest-
ments.................... (1,908) 232 53 (37)
Capital gain distribu-
tions.................... -- -- -- --
------ ----- ----- -----
Increase (decrease) in
net assets from opera-
tions.................. 705 278 58 (15)
------ ----- ----- -----
From capital transactions:
Net premiums.............. 56,140 7,246 -- 344
Loan interest............. -- -- -- --
Transfers (to) from the
general account of GE
Life and Annuity:
Death benefits........... -- -- -- --
Surrenders............... -- -- -- --
Loans.................... -- -- -- --
Cost of insurance (note
3)...................... (2,890) (897) -- (216)
Transfer gain (loss) and
transfer fees........... (156) 36 -- 1
Interfund transfers....... 1,755 1,695 1,472 1,008
------ ----- ----- -----
Increase (decrease) in
net assets from capital
transactions........... 54,849 8,080 1,472 1,137
------ ----- ----- -----
Increase (decrease) in net
assets.................... 55,554 8,358 1,530 1,122
Net assets at beginning of
period.................... -- 1,530 -- --
------ ----- ----- -----
Net assets at end of peri-
od........................ 55,554 9,888 1,530 1,122
====== ===== ===== =====
</TABLE>
See accompanying notes to financial statements.
F-32
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements
December 31, 1999
(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), formerly The Life Insurance Company of Virginia, 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. General
Electric Capital Assurance Company and its parent, 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.
In June, 1999, a new investment subdivision, Premier Growth Equity Fund, 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. Between 1997 and
1999, the Oppenheimer Variable Account Capital Appreciation Fund changed its
name to the Oppenheimer Variable Account Aggressive Growth Fund/VA and the
Oppenheimer Variable Account Growth Fund changed its name to the Oppenheimer
Variable Account Capital Appreciation Fund/VA.
In October 1998, three new investment subdivisions were added to the Account
for both Type I and Type II policies. The Investors Fund, Strategic Bond Fund,
and the Total Return Fund each invest solely in a designated portfolio of the
Salomon Brothers Variable Series Fund Inc. All designated portfolios described
above are series type mutual funds.
In May 1998, three new investment subdivisions were added to the Account,
for both Type I and Type II policies. The U.S. Equity Fund invests solely in a
designated portfolio of the GE Investments Funds, Inc. The Mid Cap Equity and
Growth and Income Funds each invest solely in a designated portfolio of the
Goldman Sachs Variable Insurance Trust. All designated portfolios described
above are series type mutual funds.
On December 12, 1997, the Account added the GE Investments Funds, Inc.--
Income Fund as a new investment subdivision and made the following
substitutions of shares held by the investment subdivisions:
<TABLE>
<CAPTION>
Before the Substitution After the Substitution
----------------------- ----------------------
<S> <C>
Shares of Money Market Portfolio-- Shares of Money Market Fund--
Variable Insurance Products Fund GE Investments Funds, Inc.
Shares of Money Fund-- Shares of Money Market Fund--
Oppenheimer Variable Account Funds GE Investments Funds, Inc.
Shares of Government Securities Fund-- Shares of Income Fund--
GE Investments Funds, Inc. GE Investments Funds, Inc.
Shares of Bond Portfolio-- Shares of Income Fund--
Neuberger & Berman Advisers GE Investments Funds, Inc.
Management Trust
Shares of High Income Portfolio-- Shares of High Income Fund--
Variable Insurance Products Fund Oppenheimer Variable Account Funds
Shares of Growth Portfolio-- Shares of Growth Portfolio Fund--
Neuberger & Berman Advisers Variable Insurance Products Fund
Management Trust
Shares of Balanced Portfolio-- Shares of Balanced Portfolio--
Neuberger & Berman Advisers Janus Aspen Series
Management Trust
</TABLE>
The foregoing substitutions were carried out pursuant to an order of the
Securities and Exchange Commission (Commission) issued on December 11, 1997,
with the approval of any necessary department of insurance. The effect of such
a share substitution was to replace certain portfolios of Variable Insurance
Products Fund, Oppenheimer Variable Account Funds, GE Investments Funds, Inc.,
and Neuberger & Berman Advisers Management Trust with those of GE Investments
Funds, Inc., Oppenheimer Variable Account Funds, Variable Insurance Products
Fund, and Janus Aspen Series.
F-33
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(1) Description of Entity -- Continued
In May 1997, seven new investment subdivisions were added to the Account.
The Growth & Income Portfolio and Growth Opportunities Portfolio each invest
solely in a designated portfolio of the Variable Insurance Products Fund III.
The Global Income Fund and the Value Equity Fund each invest solely in a
designated portfolio of the GE Investments Funds, Inc. The Capital
Appreciation Portfolio invests solely in a designated portfolio of the Janus
Aspen Series. The Growth II Portfolio and the Large Cap Growth Portfolio each
invest solely in a designated portfolio of the PBHG Insurance Series Fund,
Inc. All designated portfolios described above are series type mutual funds.
(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 forms P1096 and P1251. Type II units are sold under policy forms
P1250 and P1250CR. 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 year or period ended December 31, 1999, were:
<TABLE>
<CAPTION>
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- -------------- ----------- -----------
<S> <C> <C>
GE Investments Funds, Inc.:
S&P 500 Index Fund..................................... $ 4,504,973 2,494,953
Money Market Fund...................................... 19,300,686 17,973,359
Total Return Fund...................................... 523,100 615,821
International Equity Fund.............................. 180,310 72,033
Real Estate Securities Fund............................ 233,133 131,421
Global Income Fund..................................... 62,526 7,622
Value Equity Fund...................................... 472,016 176,880
Income Fund............................................ 93,657 92,634
U.S. Equity Fund....................................... 199,953 42,925
Premier Growth Equity Fund............................. 132,370 9,777
Oppenheimer Variable Account Funds:
Bond Fund/VA........................................... 349,782 135,527
Aggressive Growth Fund/VA.............................. 1,154,536 1,423,060
Capital Appreciation Fund/VA........................... 1,305,704 853,999
High Income Fund/VA.................................... 732,517 430,839
Multiple Strategies Fund/VA............................ 291,073 187,313
Variable Insurance Products Fund:
Equity-Income Portfolio................................ 2,239,159 2,132,558
Growth Portfolio....................................... 3,929,095 3,280,460
Overseas Portfolio..................................... 1,033,140 990,130
</TABLE>
F-34
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- -------------- ---------- -----------
<S> <C> <C>
Variable Insurance Products Fund II:
Asset Manager Portfolio................................. $ 898,985 719,244
Contrafund Portfolio.................................... 3,135,642 2,552,430
Variable Insurance Products Fund III:
Growth & Income Portfolio............................... 795,911 407,761
Growth Opportunities Portfolio.......................... 290,906 136,963
Federated Insurance Series:
Utility Fund II......................................... 233,059 81,786
High Income Bond Fund II................................ 256,863 87,275
American Leaders Fund II................................ 489,923 199,306
The Alger American Fund:
Small Capitalization Portfolio.......................... 1,397,424 655,869
Growth Portfolio........................................ 4,123,473 3,220,895
PBHG Insurance Series Fund, Inc.:
PBHG Large Cap Growth Portfolio......................... 76,815 35,807
PBHG Growth II Portfolio................................ 424,714 326,296
Janus Aspen Series:
Aggressive Growth Portfolio............................. 6,035,690 4,030,878
Growth Portfolio........................................ 3,402,613 1,522,923
Worldwide Growth Portfolio.............................. 2,420,154 1,561,606
Balanced Portfolio...................................... 1,087,912 437,464
Flexible Income Portfolio............................... 258,190 144,205
International Growth Portfolio.......................... 997,760 502,820
Capital Appreciation Portfolio.......................... 4,260,893 2,877,168
Goldman Sachs Variable Insurance Trust:
Growth and Income Fund.................................. 19,505 8,996
Mid Cap Value Fund...................................... 407,729 52,361
Salomon Brothers Variable Series Fund Inc.:
Strategic Bond Fund..................................... 60,675 3,200
Investors Fund.......................................... 9,062 952
Total Return Fund....................................... 1,379 219
</TABLE>
F-35
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
(c) Capital Transactions
The increase (decrease) in outstanding units from capital transactions for
the years or periods ended December 31, 1999, 1998 and 1997 are as follows:
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
----------------------------------------------------------------
S&P 500 Government Money Total International Real Estate
Index Securities Market Return Equity Securities
Fund Fund Fund Fund Fund Fund
------- ---------- -------- ------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Type I Units:
Units outstanding at
December 31, 1996...... 56,039 16,683 154,701 125,692 3,036 1,918
------ ------- -------- ------- ------ ------
Net premiums........... 12,804 1,856 229,013 6,095 1,752 4,672
Loan interest.......... (69) 15 (196) (11) -- --
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... (3,774) -- (1,005) (267) -- --
Surrenders........... (734) (782) (671) (523) (68) (41)
Loans................ (328) (210) (330) (137) (22) (51)
Cost of insurance and
administrative ex-
penses.............. (6,083) (1,174) (17,924) (12,827) (414) (1,046)
Interfund transfers.... 24,623 (16,388) (224,564) (101) 1,666 5,271
------ ------- -------- ------- ------ ------
Net increase (decrease)
in units from capital
transactions........... 26,439 (16,683) (15,677) (7,771) 2,914 8,805
------ ------- -------- ------- ------ ------
Units outstanding at
December 31, 1997...... 82,478 -- 139,024 117,921 5,950 10,723
------ ------- -------- ------- ------ ------
Net premiums........... 9,623 -- 112,037 5,873 1,468 8,323
Loan interest.......... (7) -- 153 (10) -- --
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- (73) (662) -- --
Surrenders........... 23 -- (7,598) (498) (35) (201)
Loans................ (301) -- (5,530) (263) (51) (37)
Cost of insurance and
administrative ex-
penses.............. (4,258) -- (16,515) (11,632) (660) (2,557)
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- --
Interfund transfers.... (1,774) -- (103,800) (210) 740 1,263
------ ------- -------- ------- ------ ------
Net increase (decrease)
in units from capital
transactions........... 3,306 -- (21,326) (7,402) 1,462 6,791
------ ------- -------- ------- ------ ------
Units outstanding at
December 31, 1998...... 85,784 -- 117,698 110,519 7,412 17,514
------ ------- -------- ------- ------ ------
Net premiums........... 15,661 -- 37,026 4,245 1,433 5,331
Loan interest.......... (1) -- 9 (8) 1 3
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... (222) -- -- (44) -- --
Surrenders........... (4,503) -- (9,425) (622) (449) (488)
Loans................ (2,322) -- (9,247) (673) (5) (81)
Cost of insurance and
administrative ex-
penses.............. (8,750) -- (12,766) (9,984) (510) (2,392)
Transfers (to) from the
Guarantee Account..... -- -- -- -- --
Interfund transfers.... (346) -- 7,179 (1,367) (1,909) (912)
------ ------- -------- ------- ------ ------
Net increase (decrease)
in units from capital
transactions........... (483) -- 12,776 (8,453) (1,439) 1,461
------ ------- -------- ------- ------ ------
Units outstanding at
December 31, 1999...... 85,301 -- 130,474 102,066 5,973 18,975
====== ======= ======== ======= ====== ======
</TABLE>
F-36
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
-------------------------------------------------
Global Value Premier
Income Equity Income U.S. Equity Growth Equity
Fund Fund Fund Fund Fund
------ ------ ------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Type I Units:
Units outstanding at December
31, 1996...................... -- -- -- -- --
----- ----- ------ ----- -----
Net premiums.................. 128 444 74 -- --
Loan interest................. -- -- 1 -- --
Transfers (to) from the
general account of GE Life &
Annuity:
Death benefits............... -- -- -- -- --
Surrenders................... -- -- -- -- --
Loans........................ (24) -- -- -- --
Cost of insurance and
administrative expenses..... (37) (77) (166) -- --
Interfund transfers........... 829 661 37,858 -- --
----- ----- ------ ----- -----
Net increase (decrease) in
units from capital
transactions.................. 896 1,028 37,767 -- --
----- ----- ------ ----- -----
Units outstanding at December
31, 1997...................... 896 1,028 37,767 -- --
----- ----- ------ ----- -----
Net premiums.................. 1,593 2,656 5,943 30 --
Loan interest................. -- 3 (7) -- --
Transfers (to) from the
general account of GE Life &
Annuity:
Death benefits............... -- -- -- -- --
Surrenders................... -- (211) (2,891) -- --
Loans........................ -- (84) (66) -- --
Cost of insurance and
administrative expenses..... (464) (648) (3,205) (22) --
Transfers (to) from the
Guarantee Account............ -- -- -- -- --
Interfund transfers........... 985 2,342 2,659 10 --
----- ----- ------ ----- -----
Net increase (decrease) in
units from capital
transactions.................. 2,114 4,058 2,433 18 --
----- ----- ------ ----- -----
Units outstanding at December
31, 1998...................... 3,010 5,086 40,200 18 --
----- ----- ------ ----- -----
Net premiums.................. 1,215 1,407 4,423 302 275
Loan interest................. -- 4 1 -- --
Transfers (to) from the
general account of GE Life &
Annuity:
Death benefits............... -- -- -- -- --
Surrenders................... (107) (301) (373) -- --
Loans........................ -- (18) (201) -- --
Cost of insurance and
administrative expenses..... (259) (775) (2,961) (113) (69)
Transfers (to) from the
Guarantee Account............ -- -- -- -- --
Interfund transfers........... (3) 3,672 (4,367) 1,727 5,227
----- ----- ------ ----- -----
Net increase (decrease) in
units from capital
transactions.................. 846 3,989 (3,478) 1,916 5,433
----- ----- ------ ----- -----
Units outstanding at December
31, 1999...................... 3,856 9,075 36,722 1,934 5,433
===== ===== ====== ===== =====
</TABLE>
F-37
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
----------------------------------------------------------
Aggressive Capital High Multiple
Money Bond Growth Appreciation Income Strategies
Fund Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
----- ------- ---------- ------------ ------- ----------
<S> <C> <C> <C> <C> <C> <C>
Type I Units:
Units outstanding at
December 31, 1996...... 45 13,055 63,799 44,162 32,190 22,651
--- ------ ------- ------ ------ ------
Net premiums........... 6 (539) 20,919 11,890 10,966 3,690
Loan interest.......... -- -- 8 (14) -- (4)
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- (8) -- -- --
Surrenders........... -- 167 (1,104) (1,783) (595) (1,437)
Loans................ -- 19 (1,014) (327) (766) (139)
Cost of insurance and
administrative ex-
penses.............. (12) 221 (8,094) (4,561) (4,949) (1,822)
Interfund transfers.... (39) 114 1,620 4,663 11,197 (378)
--- ------ ------- ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... (45) (18) 12,327 9,868 15,853 (90)
--- ------ ------- ------ ------ ------
Units outstanding at
December 31, 1997...... -- 13,037 76,126 54,030 48,043 22,561
--- ------ ------- ------ ------ ------
Net premiums........... -- 4,915 23,331 12,058 11,931 5,523
Loan interest.......... -- (2) 5 (8) (9) (5)
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- -- -- (88) --
Surrenders........... -- (776) (4,257) (2,931) (2,666) (277)
Loans................ -- (59) (1,894) (232) (483) (320)
Cost of insurance and
administrative ex-
penses.............. -- (1,448) (10,077) (5,205) (5,457) (2,167)
Transfers (to) from the
Guarantee Account..... -- -- (8) -- -- --
Interfund transfers.... -- 1,572 (2,098) 1,707 1,100 (457)
--- ------ ------- ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... -- 4,202 5,002 5,389 4,328 2,297
--- ------ ------- ------ ------ ------
Units outstanding at
December 31, 1998...... -- 17,239 81,128 59,419 52,371 24,858
--- ------ ------- ------ ------ ------
Net premiums........... -- 3,765 10,658 940 8,672 3,427
Loan interest.......... -- 1 (8) (2) 25 --
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- (41) (7) (6) (8)
Surrenders........... -- (592) (2,676) (202) (2,276) (788)
Loans................ -- (36) (3,253) (79) (1,224) (248)
Cost of insurance and
administrative ex-
penses.............. -- (1,479) (5,482) (453) (4,185) (1,754)
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- --
Interfund transfers.... -- 109 (4,525) (198) (1,264) (1,536)
--- ------ ------- ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... -- 1,768 (5,327) (1) (258) (907)
--- ------ ------- ------ ------ ------
Units outstanding at
December 31, 1999...... -- 19,007 75,801 59,418 52,113 23,951
=== ====== ======= ====== ====== ======
</TABLE>
F-38
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Variable Insurance Products Fund
-------------------------------------------------
Money High Equity-
Market Income Income Growth Overseas
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Type I Units:
Units outstanding at December
31, 1996.................... 20,234 8,361 101,828 103,102 81,098
------- ------ ------- ------- -------
Net premiums................ -- 6 30,443 27,236 14,830
Loan interest............... (2) (1) 17 (20) (27)
Transfers (to) from the
general account of GE Life
& Annuity:
Death benefits............. -- -- (8) (320) (11)
Surrenders................. -- (83) (2,046) (3,071) (3,198)
Loans...................... (67) (56) (1,200) (2,624) (1,198)
Cost of insurance and
administrative expenses... (1,113) (571) (13,023) (12,010) (7,354)
Interfund transfers......... (19,052) (7,656) 18,157 3,258 (11,825)
------- ------ ------- ------- -------
Net increase (decrease) in
units from capital
transactions................ (20,234) (8,361) 32,340 12,449 (8,783)
------- ------ ------- ------- -------
Units outstanding at December
31, 1997.................... -- -- 134,168 115,551 72,315
------- ------ ------- ------- -------
Net premiums................ -- -- 33,122 17,733 14,458
Loan interest............... -- -- (16) (69) (49)
Transfers (to) from the
general account of GE Life
& Annuity:
Death benefits............. -- -- (107) (39) --
Surrenders................. -- -- (7,257) (5,525) (3,976)
Loans...................... -- -- (1,208) (1,226) (438)
Cost of insurance and
administrative expenses... -- -- (15,042) (9,854) (7,205)
Transfers (to) from the
Guarantee Account.......... -- -- -- -- --
Interfund transfers......... -- -- 477 13,237 250
------- ------ ------- ------- -------
Net increase (decrease) in
units from capital
transactions................ -- -- 9,969 14,257 3,040
------- ------ ------- ------- -------
Units outstanding at December
31, 1998.................... -- -- 144,137 129,808 75,355
------- ------ ------- ------- -------
Net premiums................ -- -- 25,811 13,506 8,226
Loan interest............... -- -- 22 (68) (6)
Transfers (to) from the
general account of GE Life
& Annuity:
Death benefits............. -- -- (157) (243) (112)
Surrenders................. -- -- (4,410) (7,080) (2,762)
Loans...................... -- -- (3,312) (2,060) (1,115)
Cost of insurance and
administrative expenses... -- -- (11,683) (8,374) (4,317)
Transfers (to) from the
Guarantee Account.......... -- -- -- -- --
Interfund transfers......... -- -- (15,909) (10,368) (3,401)
------- ------ ------- ------- -------
Net increase (decrease) in
units from capital
transactions................ -- -- (9,638) (14,687) (3,487)
------- ------ ------- ------- -------
Units outstanding at December
31, 1999.................... -- -- 134,499 115,121 71,868
======= ====== ======= ======= =======
</TABLE>
F-39
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Variable Insurance Variable Insurance
Products Fund II Products Fund III
-------------------- -----------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
--------- ---------- --------- -------------
<S> <C> <C> <C> <C>
Type I Units:
Units outstanding at December 31,
1996............................. 135,501 62,082 -- --
------- ------- ------ ------
Net premiums..................... 30,613 36,387 454 598
Loan interest.................... (18) (8) -- --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits.................. -- (320) -- --
Surrenders...................... (5,817) (5,335) -- --
Loans........................... (1,388) (781) -- --
Cost of insurance and
administrative expenses........ (15,641) (12,219) (125) (125)
Interfund transfers.............. 20,449 17,222 3,484 5,332
------- ------- ------ ------
Net increase (decrease) in units
from capital transactions........ 28,198 34,946 3,813 5,805
------- ------- ------ ------
Units outstanding at December 31,
1997............................. 163,699 97,028 3,813 5,805
------- ------- ------ ------
Net premiums..................... 16,997 30,522 8,879 2,947
Loan interest.................... (9) (26) -- (2)
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits.................. (155) (144) -- --
Surrenders...................... (7,043) (5,242) (219) (3)
Loans........................... (1,134) (1,902) (19) (483)
Cost of insurance and
administrative expenses........ (11,046) (13,480) (1,697) (1,664)
Transfers (to) from the Guarantee
Account......................... -- (5) -- --
Interfund transfers.............. (3,207) 13,189 6,067 9,681
------- ------- ------ ------
Net increase (decrease) in units
from capital transactions........ (5,597) 22,912 13,011 10,476
------- ------- ------ ------
Units outstanding at December 31,
1998............................. 158,102 119,940 16,824 16,281
------- ------- ------ ------
Net premiums..................... 14,013 20,627 3,421 2,186
Loan interest.................... (17) (46) 1 (6)
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits.................. (75) -- -- --
Surrenders...................... (3,495) (4,709) (652) (100)
Loans........................... (1,110) (1,173) (32) --
Cost of insurance and
administrative expenses........ (9,169) (10,938) (1,730) (1,384)
Transfers (to) from the Guarantee
Account......................... -- -- -- --
Interfund transfers.............. (6,414) (14,178) (2,229) (1,296)
------- ------- ------ ------
Net increase (decrease) in units
from capital transactions........ (6,267) (10,417) (1,221) (600)
------- ------- ------ ------
Units outstanding at December 31,
1999............................. 151,835 109,523 15,603 15,681
======= ======= ====== ======
</TABLE>
F-40
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Neuberger & Berman
Advisers Management Trust Federated Insurance Series
----------------------------- ----------------------------
American
Balanced Bond Growth Leaders High Income Utility
Portfolio Portfolio Portfolio Fund II Fund II Fund II
--------- --------- --------- -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
Type I Units:
Units outstanding at
December 31, 1996...... 14,270 6,358 8,592 205 2,627 6,422
------- ------ ------ ------ ------ ------
Net premiums........... 17 -- 30 1,922 2,964 3,027
Loan interest.......... (2) -- (6) -- -- --
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- -- -- -- --
Surrenders........... (651) (5) (179) -- -- --
Loans................ (77) -- (60) -- (219) --
Cost of insurance and
administrative ex-
penses.............. (597) (128) (357) (260) (668) (725)
Interfund transfers.... (12,960) (6,225) (8,020) 1,302 1,484 819
------- ------ ------ ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... (14,270) (6,358) (8,592) 2,964 3,561 3,121
------- ------ ------ ------ ------ ------
Units outstanding at
December 31, 1997...... -- -- -- 3,169 6,188 9,543
------- ------ ------ ------ ------ ------
Net premiums........... -- -- -- 6,297 3,841 3,173
Loan interest.......... -- -- -- 2 4 --
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- -- -- -- --
Surrenders........... -- -- -- (394) (254) (121)
Loans................ -- -- -- (69) (238) (18)
Cost of insurance and
administrative ex-
penses.............. -- -- -- (1,728) (1,274) (1,035)
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- --
Interfund transfers.... -- -- -- 6,131 985 (87)
------- ------ ------ ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... -- -- -- 10,239 3,064 1,912
------- ------ ------ ------ ------ ------
Units outstanding at
December 31, 1998...... -- -- -- 13,408 9,252 11,455
------- ------ ------ ------ ------ ------
Net premiums........... -- -- -- 5,066 2,703 1,671
Loan interest.......... -- -- -- 7 (3) (1)
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- -- -- -- --
Surrenders........... -- -- -- (637) (296) (111)
Loans................ -- -- -- 3 (7) --
Cost of insurance and
administrative ex-
penses.............. -- -- -- (1,849) (891) (930)
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- --
Interfund transfers.... -- -- -- 637 1,142 (83)
------- ------ ------ ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... -- -- -- 3,227 2,648 546
------- ------ ------ ------ ------ ------
Units outstanding at
December 31, 1999...... -- -- -- 16,635 11,900 12,001
======= ====== ====== ====== ====== ======
</TABLE>
F-41
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
PBHG Insurance
Alger American Fund Series Fund, Inc.
------------------------ -------------------
Small Large Cap
Capitalization Growth Growth Growth II
Portfolio Portfolio Portfolio Portfolio
-------------- --------- --------- ---------
<S> <C> <C> <C> <C>
Type I Units:
Units outstanding at December 31,
1996............................. 43,392 129,520 -- --
------- ------- ----- ------
Net premiums..................... 35,801 33,924 391 960
Loan interest.................... 192 58 -- --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits................. -- -- -- --
Surrenders..................... (387) (1,726) (16) --
Loans.......................... (467) (562) -- --
Cost of insurance and
administrative expenses....... (10,737) (10,957) (122) (148)
Interfund transfers.............. 8,457 (86,458) 2,001 1,160
------- ------- ----- ------
Net increase (decrease) in units
from capital transactions........ 32,859 (65,721) 2,254 1,972
------- ------- ----- ------
Units outstanding at December 31,
1997............................. 76,251 63,799 2,254 1,972
------- ------- ----- ------
Net premiums..................... 32,605 17,385 2,279 1,203
Loan interest.................... 9 5 1 --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits................. (72) (53) -- --
Surrenders..................... (2,415) (8,436) (57) (16)
Loans.......................... (2,883) 653 (569) --
Cost of insurance and
administrative expenses....... (10,216) (7,880) (608) (565)
Transfers (to) from the Guarantee
Account......................... -- -- -- --
Interfund transfers.............. (4,182) 20,083 1,170 185
------- ------- ----- ------
Net increase (decrease) in units
from capital transactions........ 12,846 21,757 2,216 807
------- ------- ----- ------
Units outstanding at December 31,
1998............................. 89,097 85,556 4,470 2,779
------- ------- ----- ------
Net premiums..................... 14,158 18,292 1,496 4,760
Loan interest.................... 6 3 (9) --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits................. -- -- -- --
Surrenders..................... (2,787) (1,514) (133) (1,121)
Loans.......................... (1,178) (537) (21) --
Cost of insurance and
administrative expenses....... (6,036) (7,299) (563) (1,461)
Transfers (to) from the Guarantee
Account......................... -- -- -- --
Interfund transfers.............. 20,595 (15,368) 221 (137)
------- ------- ----- ------
Net increase (decrease) in units
from capital transactions........ 24,758 (6,423) 991 2,041
------- ------- ----- ------
Units outstanding at December 31,
1999............................. 113,855 79,133 5,461 4,820
======= ======= ===== ======
</TABLE>
F-42
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Janus Aspen Series
------------------------------------------------------------------------------
Aggressive Flexible International Capital
Growth Growth World Wide Balanced Income Growth Appreciation
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
---------- --------- ---------- --------- --------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Type I Units:
Units outstanding at
December 31, 1996...... 69,875 74,890 90,240 13,755 780 4,602 --
------- ------- ------- ------ ------ ------ ------
Net premiums........... 33,956 31,979 45,089 5,204 3,339 10,507 131
Loan interest.......... (117) 31 41 -- -- 1 --
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... -- -- -- -- -- -- --
Surrenders........... (2,572) (1,161) (1,946) (491) -- (270) --
Loans................ (475) (1,040) (626) (41) -- (35) --
Cost of insurance and
administrative
expenses............ (12,062) (10,466) (15,323) (2,215) (868) (2,301) (99)
Interfund transfers.... 28,188 13,930 43,635 26,265 2,338 10,760 652
------- ------- ------- ------ ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... 46,918 33,273 70,870 28,722 4,809 18,662 684
------- ------- ------- ------ ------ ------ ------
Units outstanding at
December 31, 1997...... 116,793 108,163 161,110 42,477 5,589 23,264 684
------- ------- ------- ------ ------ ------ ------
Net premiums........... 24,642 27,838 47,797 12,861 2,801 8,858 4,038
Loan interest.......... 6 6 (21) (3) -- -- 22
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... (43) (45) (68) -- (84) (39) --
Surrenders........... (6,780) (5,890) (7,737) (520) (64) (1,149) (27)
Loans................ (2,146) (267) (2,519) (1,038) -- (26) --
Cost of insurance and
administrative
expenses............ (10,966) (12,198) (20,085) (5,313) (1,139) (3,657) (1,554)
Transfers (to) from the
Guarantee Account..... -- -- (5) -- -- -- --
Interfund transfers.... (23,977) 9,558 11,118 5,127 (291) 3,504 5,052
------- ------- ------- ------ ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... (19,264) 19,002 28,480 11,114 1,223 7,491 7,531
------- ------- ------- ------ ------ ------ ------
Units outstanding at
December 31, 1998...... 97,529 127,165 189,590 53,591 6,812 30,755 8,215
------- ------- ------- ------ ------ ------ ------
Net premiums........... 12,369 16,689 38,292 6,407 251 6,335 2,077
Loan interest.......... (46) (1) (76) (10) -- 5 7
Transfers (to) from the
general account of
GE Life & Annuity:
Death benefits....... (171) (161) (222) -- -- -- --
Surrenders........... (3,586) (3,363) (5,000) (955) (326) (867) (284)
Loans................ (4,215) (1,314) (2,004) (105) -- (31) (98)
Cost of insurance and
administrative
expenses............ (7,317) (7,290) (21,189) (4,660) (952) (3,152) (1,822)
Transfers (to) from the
Guarantee Account..... -- -- -- -- -- -- --
Interfund transfers.... 25,088 18,674 (6,785) 8,897 208 1,272 14,138
------- ------- ------- ------ ------ ------ ------
Net increase (decrease)
in units from capital
transactions........... 22,122 23,234 3,016 9,574 (819) 3,562 14,018
------- ------- ------- ------ ------ ------ ------
Units outstanding at
December 31, 1999...... 119,651 150,399 192,606 63,165 5,993 34,317 22,233
======= ======= ======= ====== ====== ====== ======
</TABLE>
F-43
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies - Continued
<TABLE>
<CAPTION>
Goldman Sachs Variable Salomon Brothers
Insurance Trust Variable Series Fund Inc.
---------------------- -------------------------------
Growth and Mid Cap Strategic Investors Total
Income Fund Value Fund Bond Fund Fund Return Fund
----------- ---------- --------- --------- -----------
<S> <C> <C> <C> <C> <C>
Type I Units:
Units outstanding at De-
cember 31, 1996........ -- -- -- -- --
--- ------ --- --- ---
Net premiums........... -- -- -- -- --
Loan interest.......... -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits........ -- -- -- -- --
Surrenders............ -- -- -- -- --
Loans................. -- -- -- -- --
Cost of insurance and
administrative ex-
penses............... -- -- -- -- --
Interfund transfers.... -- -- -- -- --
--- ------ --- --- ---
Net increase
(decrease) in units
from capital
transactions........ -- -- -- -- --
--- ------ --- --- ---
Units outstanding at De-
cember 31, 1997........ -- -- -- -- --
--- ------ --- --- ---
Net premiums........... -- -- -- -- --
Loan interest.......... -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits........ -- -- -- -- --
Surrenders............ -- -- -- -- --
Loans................. -- -- -- -- --
Cost of insurance and
administrative ex-
penses............... (13) -- -- -- --
Transfers (to) from the
Guarantee Account..... -- -- -- -- --
Interfund transfers.... 94 -- -- 126 --
--- ------ --- --- ---
Net increase
(decrease) in units
from capital
transactions........ 81 -- -- 126 --
--- ------ --- --- ---
Units outstanding at De-
cember 31, 1998........ 81 -- -- 126 --
--- ------ --- --- ---
Net premiums........... -- 2,906 -- -- 25
Loan interest.......... -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits........ -- -- -- -- --
Surrenders............ -- -- -- -- --
Loans................. -- -- -- -- --
Cost of insurance and
administrative ex-
penses............... (8) (160) -- (15) (16)
Transfers (to) from the
Guarantee Account..... -- -- -- -- --
Interfund transfers.... (73) 44,496 -- -- 94
--- ------ --- --- ---
Net increase
(decrease) in units
from capital
transactions........ (81) 47,242 -- (15) 103
--- ------ --- --- ---
Units outstanding at De-
cember 31, 1999........ -- 47,242 -- 111 103
=== ====== === === ===
</TABLE>
F-44
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies - Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
---------------------------------------------------------------
S&P 500 Government Money Total International Real Estate
Index Securities Market Return Equity Securities
Fund Fund Fund Fund Fund Fund
------- ---------- -------- ------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Type II Units:
Units outstanding at
December 31, 1997...... -- -- -- -- -- --
------ --- -------- ----- ------ -----
Net premiums........... 14,211 -- 203,673 1,858 444 4,046
Loan interest.......... -- -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits......... -- -- -- -- -- --
Surrenders............. -- -- -- -- -- (16)
Loans.................. -- -- -- -- -- --
Cost of insurance and
administrative
expenses.............. (1,193) -- (6,092) (323) (44) (252)
Interfund transfers.... 2,066 -- (76,055) 2,682 9 1,224
------ --- -------- ----- ------ -----
Net increase in units
from capital
transactions........... 15,084 -- 121,526 4,217 409 5,002
------ --- -------- ----- ------ -----
Units outstanding at
December 31, 1998...... 15,084 -- 121,526 4,217 409 5,002
------ --- -------- ----- ------ -----
Net premiums........... 28,289 -- 373,827 2,488 8,139 2,648
Loan interest.......... (3) -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits......... -- -- -- (400) -- --
Surrenders............. (219) -- (61) -- -- (285)
Loans.................. (661) -- (13,879) -- -- --
Cost of insurance and
administrative
expenses.............. (6,092) -- (16,872) (941) (1,016) (956)
Interfund transfers.... 12,671 -- (292,484) 625 277 2,408
------ --- -------- ----- ------ -----
Net increase in units
from capital
transactions........... 33,985 -- 50,531 1,772 7,400 3,815
------ --- -------- ----- ------ -----
Units outstanding at
December 31, 1999...... 49,069 -- 172,057 5,989 7,809 8,817
====== === ======== ===== ====== =====
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
-------------------------------------------------
Global Value Premier
Income Equity Income U.S. Equity Growth Equity
Fund Fund Fund Fund Fund
------ ------ ------ ----------- -------------
<S> <C> <C> <C> <C> <C>
Type II Units:
Units outstanding at December
31, 1997...................... -- -- -- -- --
----- ------ ----- ------ -----
Net premiums.................. 134 5,572 14 3,071 --
Loan interest................. -- -- -- -- --
Transfers (to) from the
general account of GE Life &
Annuity:
Death benefits................ -- -- -- -- --
Surrenders.................... -- (6) -- (8) --
Loans......................... -- -- -- -- --
Cost of insurance and
administrative expenses...... (24) (386) (24) (203) --
Interfund transfers........... -- 4,923 214 1,879 --
----- ------ ----- ------ -----
Net increase in units from
capital transactions.......... 110 10,103 204 4,739 --
----- ------ ----- ------ -----
Units outstanding at December
31, 1998...................... 110 10,103 204 4,739 --
----- ------ ----- ------ -----
Net premiums.................. 953 11,785 2,123 11,266 3,298
Loan interest................. -- (8) -- -- --
Transfers (to) from the
general account of GE Life &
Annuity:
Death benefits................ -- (604) -- -- --
Surrenders.................... -- -- -- (39) --
Loans......................... -- (1,237) -- -- --
Cost of insurance and
administrative expenses...... (287) (1,693) (353) (2,119) (475)
Interfund transfers........... 3,476 6,445 (10) 1,503 3,411
----- ------ ----- ------ -----
Net increase in units from
capital transactions.......... 4,142 14,688 1,760 10,611 6,234
----- ------ ----- ------ -----
Units outstanding at December
31, 1999...................... 4,252 24,791 1,964 15,350 6,234
===== ====== ===== ====== =====
</TABLE>
F-45
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies - Continued
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
------------------------------------------------------
Aggressive Capital High Multiple
Bond Growth Appreciation Income Strategies
Fund Fund Fund Fund Fund
--------- ---------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C>
Type II Units:
Units outstanding at
December 31, 1997...... -- -- -- -- --
------ ----- ------ ------ -----
Net premiums........... 2,180 1,554 2,669 1,658 2,207
Loan interest.......... -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits......... -- -- -- -- --
Surrenders............. -- -- -- -- --
Loans.................. -- -- -- -- --
Cost of insurance and
administrative
expenses.............. (319) (145) (343) (103) (63)
Interfund transfers.... 675 1,719 456 255 46
------ ----- ------ ------ -----
Net increase in units
from capital
transactions........ 2,536 3,128 2,782 1,810 2,190
------ ----- ------ ------ -----
Units outstanding at
December 31, 1998...... 2,536 3,128 2,782 1,810 2,190
------ ----- ------ ------ -----
Net premiums........... 2,591 1,518 5,822 3,721 2,421
Loan interest.......... -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits......... -- -- -- -- --
Surrenders............. (1) (109) (3) -- --
Loans.................. -- (2) (61) -- --
Cost of insurance and
administrative
expenses.............. (1,241) (489) (1,163) (557) (294)
Interfund transfers.... 4,538 391 1,282 2,515 (67)
------ ----- ------ ------ -----
Net increase in units
from capital
transactions........ 5,887 1,309 5,877 5,679 2,060
------ ----- ------ ------ -----
Units outstanding at
December 31, 1999...... 8,423 4,437 8,659 7,489 4,250
====== ===== ====== ====== =====
<CAPTION>
Variable Insurance Products Fund
------------------------------------------------------
Money High Equity-
Market Income Income Growth Overseas
Portfolio Portfolio Portfolio Portfolio Portfolio
--------- ---------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C>
Type II Units:
Units outstanding at
December 31, 1997...... -- -- -- -- --
------ ----- ------ ------ -----
Net premiums........... 4,605 1,787 590
Loan interest.......... -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits......... -- -- -- -- --
Surrenders............. -- -- -- (2) --
Loans.................. -- -- -- -- --
Cost of insurance and
administrative
expenses.............. -- -- (436) (186) (63)
Interfund transfers.... -- -- 2,211 171 44
------ ----- ------ ------ -----
Net increase in units
from capital
transactions........ -- -- 6,380 1,770 571
------ ----- ------ ------ -----
Units outstanding at
December 31, 1998...... -- -- 6,380 1,770 571
------ ----- ------ ------ -----
Net premiums........... -- -- 6,469 8,198 3,033
Loan interest.......... -- -- -- -- --
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits......... -- -- (413) -- --
Surrenders............. -- -- (27) (28) --
Loans.................. -- -- (93) (96) --
Cost of insurance and
administrative
expenses.............. -- -- (1,395) (1,444) (669)
Interfund transfers.... -- -- 1,232 4,342 868
------ ----- ------ ------ -----
Net increase in units
from capital
transactions........ -- -- 5,773 10,972 3,232
------ ----- ------ ------ -----
Units outstanding at
December 31, 1999...... -- -- 12,153 12,742 3,803
====== ===== ====== ====== =====
</TABLE>
F-46
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Variable Insurance Variable Insurance
Products Fund II Products Fund III
-------------------- -----------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
--------- ---------- --------- -------------
<S> <C> <C> <C> <C>
Type II Units:
Units outstanding at December 31,
1997.............................. -- -- -- --
----- ------ ------ ------
Net premiums...................... 1,321 11,842 6,034 2,476
Loan interest..................... -- -- -- --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits.................... -- -- -- --
Surrenders........................ -- (35) -- (31)
Loans............................. -- (123) 201 --
Cost of insurance and
administrative expenses.......... (67) (904) (599) (208)
Interfund transfers............... 24 4,847 3,160 245
----- ------ ------ ------
Net increase in units from
capital transactions........... 1,278 15,627 8,796 2,482
----- ------ ------ ------
Units outstanding at December 31,
1998.............................. 1,278 15,627 8,796 2,482
----- ------ ------ ------
Net premiums...................... 1,964 16,460 22,463 7,729
Loan interest..................... -- (3) -- --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits.................... -- -- -- --
Surrenders........................ -- (33) (32) --
Loans............................. 1 (487) (29) (31)
Cost of insurance and
administrative expenses.......... (280) (3,385) (4,444) (1,892)
Interfund transfers............... 85 13,182 5,886 4,477
----- ------ ------ ------
Net increase in units from
capital transactions........... 1,770 25,734 23,844 10,283
----- ------ ------ ------
Units outstanding at December 31,
1999.............................. 3,048 41,361 32,640 12,765
===== ====== ====== ======
</TABLE>
<TABLE>
<CAPTION>
Federated Insurance
Series Alger American Fund
------------------------ -------------------------
American High Small
Leaders Income Utility Capitalization Growth
Fund II Fund II Fund II Portfolio Portfolio
-------- ------- ------- --------------- ---------
<S> <C> <C> <C> <C> <C>
Type II Units:
Units outstanding at December
31, 1997.................... -- -- -- -- --
------ ----- ----- ------ ------
Net premiums................ 3,993 1,042 1,404 2,957 2,770
Loan interest............... -- -- -- -- --
Transfers (to) from the
general account of GE Life
& Annuity:
Death benefits.............. -- -- -- -- --
Surrenders.................. -- -- -- -- --
Loans....................... -- -- -- -- --
Cost of insurance and
administrative expenses.... (282) (90) (89) (317) (366)
Interfund transfers......... 1,544 85 35 3,104 3,686
------ ----- ----- ------ ------
Net increase in units from
capital transactions..... 5,255 1,037 1,350 5,744 6,090
------ ----- ----- ------ ------
Units outstanding at December
31, 1998.................... 5,255 1,037 1,350 5,744 6,090
------ ----- ----- ------ ------
Net premiums................ 9,243 5,365 2,927 9,990 24,310
Loan interest............... -- -- (3) -- --
Transfers (to) from the
general account of GE Life
& Annuity:
Death benefits.............. -- -- -- -- --
Surrenders.................. (1) -- -- (36) (72)
Loans....................... (1) -- (566) -- (32)
Cost of insurance and
administrative expenses.... (1,629) (812) (478) (1,870) (4,566)
Interfund transfers......... 3,735 2,531 4,176 4,696 17,028
------ ----- ----- ------ ------
Net increase in units from
capital transactions..... 11,347 7,084 6,056 12,780 36,668
------ ----- ----- ------ ------
Units outstanding at December
31, 1999.................... 16,602 8,121 7,406 18,524 42,758
====== ===== ===== ====== ======
</TABLE>
F-47
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
PBHG Insurance
Janus Aspen Series Series Fund, Inc.
------------------------------------------------------------------------------ --------------------
Aggressive Flexible International Capital PBHG Large PBHG
Growth Growth World Wide Balanced Income Growth Appreciation Cap Growth Growth II
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
---------- --------- ---------- --------- --------- ------------- ------------ ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Type II Units:
Units outstanding at
December 31, 1997.. -- -- -- -- -- -- -- -- --
------ ------ ------ ------ ----- ------ ------ ----- -----
Net premiums....... 8,732 9,826 15,030 10,226 365 15,053 3,233 812 367
Loan interest...... -- -- -- -- -- -- -- -- --
Transfers (to) from
the general
account of GE Life
& Annuity:
Death benefits.... -- -- -- -- -- -- -- -- --
Surrenders........ -- (23) (22) -- -- -- -- (20) (8)
Loans............. -- -- -- -- -- -- -- -- --
Cost of insurance
and
administrative
expenses......... (594) (753) (1,180) (735) (44) (999) (279) (127) (74)
Interfund
transfers......... 3,849 1,299 5,095 3,376 111 7,307 595 -- 2,930
------ ------ ------ ------ ----- ------ ------ ----- -----
Net increase in
units from capital
transactions....... 11,987 10,349 18,923 12,867 432 21,361 3,549 665 3,215
------ ------ ------ ------ ----- ------ ------ ----- -----
Units outstanding at
December 31, 1998.. 11,987 10,349 18,923 12,867 432 21,361 3,549 665 3,215
------ ------ ------ ------ ----- ------ ------ ----- -----
Net premiums....... 20,475 25,736 27,011 18,588 3,248 9,638 27,320 1,792 1,601
Loan interest...... -- -- (8) (1) -- (7) -- -- --
Transfers (to) from
the general
account of GE Life
& Annuity:
Death benefits.... -- -- (717) -- -- -- -- -- --
Surrenders........ -- (48) (92) (326) -- -- (1) (13) --
Loans............. (70) (127) (1,325) (203) -- (1,336) (80) (1) --
Cost of insurance
and
administrative
expenses......... (3,896) (4,807) (6,014) (3,963) (612) (2,838) (3,898) (786) (290)
Interfund
transfers......... 16,837 17,635 10,749 3,842 5,581 18,259 18,547 709 3,114
------ ------ ------ ------ ----- ------ ------ ----- -----
Net increase in
units from capital
transactions....... 33,346 38,389 29,604 17,937 8,217 23,716 41,888 1,701 4,425
------ ------ ------ ------ ----- ------ ------ ----- -----
Units outstanding at
December 31, 1999.. 45,333 48,738 48,527 30,804 8,649 45,077 45,437 2,366 7,640
====== ====== ====== ====== ===== ====== ====== ===== =====
</TABLE>
F-48
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Goldman Sachs
Variable Insurance Salomon Brothers Variable
Trust Series Fund, Inc.
------------------ --------------------------
Growth Mid Cap Strategic Total
and Income Value Bond Investors Return
Fund Fund Fund Fund Fund
---------- ------- --------- --------- ------
<S> <C> <C> <C> <C> <C>
Type II Units:
Units outstanding at December 31,
1997............................ -- -- -- -- --
----- ------ ----- --- ---
Net premiums.................... 1,115 742 -- -- --
Loan interest................... -- -- -- -- --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits................. -- -- -- -- --
Surrenders..................... -- -- -- -- --
Loans.......................... -- -- -- -- --
Cost of insurance and adminis-
trative expenses.............. (23) (131) -- -- --
Interfund transfers............. -- 10,240 -- -- --
----- ------ ----- --- ---
Net increase (decrease) in units
from capital transactions....... 1,092 10,851 -- -- --
----- ------ ----- --- ---
Units outstanding at December 31,
1998............................ 1,092 10,851 -- -- --
----- ------ ----- --- ---
Net premiums.................... 1,560 2,252 5,549 548 6
Loan interest................... -- -- -- -- --
Transfers (to) from the general
account of GE Life & Annuity:
Death benefits................. -- -- -- -- --
Surrenders..................... (18) -- -- -- --
Loans.......................... -- -- -- -- --
Cost of insurance and adminis-
trative expenses.............. (378) (478) (286) (53) (4)
Interfund transfers............. 35 (5,286) 173 128 --
----- ------ ----- --- ---
Net increase (decrease) in units
from capital transactions....... 1,199 (3,512) 5,436 623 2
----- ------ ----- --- ---
Units outstanding at December 31,
1999............................ 2,291 7,339 5,436 623 2
===== ====== ===== === ===
</TABLE>
F-49
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT II
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
(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.
If a policy is surrendered or lapses during the first nine years for Type I
policies or 15 years for Type II policies, 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 openend diversified management
investment company.
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, .65% for the Value Equity and Premier Growth Equity Funds, and
.55% for the U.S. Equity Fund. 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.
F-50
