Life of Virginia Separate Account III
STATEMENTS OF ASSETS
& LIABILITIES
(Unaudited)
June 30, 1997
A GE Capital Services Company
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Table of Contents
For the six months ended June 30, 1997
- ------------------------------------------------------
Page
Financial Statements:
Statement of Assets and Liabilities...........1
Statement of Operations.......................7
Statement of Changes in Net Assets...........13
Notes to Financial Statements......................19
- ------------------------------------------------------
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Assets and Liabilities
As of June 30, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
---------------------------------------------------------------------
S&P 500 Government Money Total International
Index Securities Market Return Equity
Assets Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc.,
at fair value (note 2):
S&P 500 Index Fund (118,061
shares; cost - $2,062,878) $2,110,929 -- -- -- --
Government Securities Fund (89,790
shares; cost - $901,140) -- 868,272 -- -- --
Money Market Fund (10,319,493 shares;
cost - $16,500,046) -- -- 10,319,493 -- --
Total Return Portolio (111,027 shares;
cost - $1,552,931) -- -- -- 1,559,928 --
International Equity Fund (90,620 shares;
cost - $1,028,588) -- -- -- 1,153,588
Real Estate Securities Fund
(45,097 shares; cost - $628,608) -- -- -- -- --
Value Equity Fund (1,538 shares; cost - $17,822) -- -- -- -- --
Receivable from affiliate (note 3) 2,596 -- -- 3,075 5,515
Receivable for units sold -- -- 108,612 112 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $2,113,525 868,272 10,428,105 1,563,115 1,159,103
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 955 3,482 504,028 668 497
Payable for units withdrawn 189 31 -- -- 25
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,144 3,513 504,028 668 522
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $2,112,381 864,759 9,924,077 1,562,447 1,158,581
====================================================================================================================================
Outstanding units 67,713 48,365 671,999 63,988 86,429
====================================================================================================================================
Net asset value per unit $ 31.20 17.88 14.77 24.42 13.41
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------
Real Estate Value
Securities Equity
Assets Fund Fund
- ----------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc.,
at fair value (note 2):
S&P 500 Index Fund (118,061
shares; cost - $2,062,878) -- --
Government Securities Fund (89,790
shares; cost - $901,140) -- --
Money Market Fund (10,319,493 shares;
cost - $16,500,046) -- --
Total Return Portolio (111,027 shares;
cost - $1,552,931) -- --
International Equity Fund (90,620 shares;
cost - $1,028,588) -- --
Real Estate Securities Fund
(45,097 shares; cost - $628,608) 690,891 --
Value Equity Fund (1,538 shares; cost - $17,822) -- 17,606
Receivable from affiliate (note 3) -- --
Receivable for units sold -- --
- ------------------------------------------------------------------------------------------
Total assets 690,891 17,606
==========================================================================================
Liabilities
- ------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 650 7
Payable for units withdrawn 46 --
- ------------------------------------------------------------------------------------------
Total liabilities 696 7
==========================================================================================
Net assets 690,195 17,599
==========================================================================================
Outstanding units 41,034 1,540
==========================================================================================
Net asset value per unit 16.82 11.43
==========================================================================================
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
------------------------------------------------------------------------
Capital High Multiple
Money Bond Appreciation Growth Income Strategies
Assets Fund Fund Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable Account Funds,
at fair value (note 2):
Money Fund (160,073 shares; cost - $ 160,073) $ 160,073 -- -- -- -- --
Bond Fund (131,925 shares; cost - $1,507,997) -- 1,523,738 -- -- -- --
Capital Appreciation Fund
(165,697 shares; cost - $5,460,092) -- -- 6,468,818 -- -- --
Growth Fund (106,749 shares; cost - $2,664,522) -- -- -- 3,138,413 -- --
High Income Fund (400,515 shares;
cost - $4,419,549) -- -- -- -- 4,461,741 --
Multiple Strategies Fund (175,527 shares;
cost - $2,459,194) -- -- -- -- -- 2,831,247
Receivable from affiliate (note 3) -- 1,989 19,094 6,829 12,512 3,801
Receivable for units sold -- 26 -- -- 4,682 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 160,073 1,525,753 6,487,912 3,145,242 4,478,935 2,835,048
====================================================================================================================================
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,719 653 2,778 1,344 1,917 1,213
Payable for units withdrawn -- -- 821 456 -- 120
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,719 653 3,599 1,800 1,917 1,333
====================================================================================================================================
Net assets $ 158,354 1,525,100 6,484,313 3,143,442 4,477,018 2,833,715
====================================================================================================================================
Outstanding units 10,332 73,259 203,308 113,073 147,825 115,898
====================================================================================================================================
Net asset value per unit $ 15.33 20.82 31.89 27.80 30.29 24.45
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
--------------------------------------------------------------------------
Money High Equity
Market Income Income Growth Overseas
Assets Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products Fund,
at fair value (note 2):
Money Market Portfolio (825,132 shares;
cost - $825,132) $ 825,132 -- -- -- --
High Income Portfolio (99,068 shares;
cost - $1,154,810) -- 1,231,411 -- -- --
Equity-Income Portfolio (671,965 shares;
cost - $12,285,751) -- -- 14,823,555 -- --
Growth Portfolio (262,649 shares;
cost - $7,239,006) -- -- -- 8,982,609 --
Overseas Portfolio (332,808 shares;
cost - $5,918,931) -- -- -- -- 6,669,482
Accrued investment income 3,923 -- -- -- --
Receivable from affiliate (note 3) -- -- 133,867 11,516 --
Receivable for units sold -- -- 4,183 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $ 829,055 1,231,411 14,961,605 8,994,125 6,669,482
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,885 1,293 6,428 3,860 14,950
Payable for units withdrawn 73 144 -- 891 606
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,958 1,437 6,428 4,751 15,556
====================================================================================================================================
Net assets $ 827,097 1,229,974 14,955,177 8,989,374 6,653,926
- ------------------------------------------------------------------------------------------------------------------------------------
Outstanding units 53,607 46,746 499,238 288,982 337,934
====================================================================================================================================
Net asset value per unit $ 15.43 26.31 29.96 31.11 19.69
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Variable Insurance Advisers Management
Products Fund II Product Fund III Trust
------------------------- ----------------------- -----------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities Balanced Bond Growth
Assets Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products
Fund II, at fair value (note 2):
Asset Manager Portfolio (574,183 shares;
cost - $8,411,953) $9,531,434 -- -- -- -- -- --
Contrafund Portfolio (329,844 shares;
cost - $5,065,902) -- 5,914,097 -- -- -- -- --
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (8,262 shares;
cost - $88,566) -- -- 94,927 -- -- -- --
Growth Opportunities Portfolio
(11,482 shares; cost - $186,314) -- -- -- 196,575 -- -- --
Investment in Advisers Management Trust,
at fair value (note 2):
Balanced Portfolio (121,741 shares;
cost - $1,793,378) -- -- -- -- 2,018,466 -- --
Bond Portfolio (35,152 shares;
cost - $491,270) -- -- -- -- -- 478,774 --
Growth Portfolio (27,950 shares;
cost - $671,363) -- -- -- -- -- -- 775,342
Receivable from affiliate (note 3) -- 72,664 -- -- 11,466 10,021 --
Receivable for units sold 2,176 4,419 -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total assets $9,533,610 5,991,180 94,927 196,575 2,029,932 488,795 775,342
==================================================================================================================================
Liabilities
- ----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 12,748 2,561 41 84 871 210 4,712
Payable for units withdrawn -- -- 80 152 51 300 16
- ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 12,748 2,561 121 236 922 510 4,728
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets $9,520,862 5,988,619 94,806 196,339 2,029,010 488,285 770,614
==================================================================================================================================
Outstanding units 423,488 324,586 8,533 17,872 112,050 39,258 43,461
==================================================================================================================================
Net asset value per unit $ 22.48 18.45 11.11 10.99 18.11 12.44 17.73
==================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Investors PBHG Insurance
Insurance Series Alger American Fund Series Fund
------------------------------------ --------------------- ---------------
American High Small PBHG
Leaders Income Bond Utility Cap Growth Growth II
Assets Fund II Fund II Fund II Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors Insurance Series,
at fair value (note 2):
American Leaders Fund II (16,662 shares;
cost - $271,927) $ 291,592 -- -- -- -- --
High Income Bond Fund II (69,812 shares;
cost - $686,882) -- 722,553 -- -- -- --
Utility Fund II (23,672 shares; cost - $270,865) -- -- 292,819 -- -- --
Investment in Alger American, at fair value (note 2):
Small Cap Portfolio (29,310 shares;
cost - $1,178,861) -- -- -- 1,158,626 -- --
Growth Portfolio (44,312 shares;
cost - $1,558,557) -- -- -- -- 1,751,652 --
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Growth II Portfolio
(4,558 shares; cost - $45,940) -- -- -- -- -- 47,635
Receivable from affiliate (note 3) 612 199 1,999 -- 9,083 3
Receivable for units sold 107 -- -- -- 5,002 32
- --------------------------------------------------------------------------------------------------------------------------------
Total assets $ 292,311 722,752 294,818 1,158,626 1,765,737 47,670
================================================================================================================================
Liabilities
- --------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 125 310 127 718 755 20
Payable for units withdrawn -- 177 17 163 -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total liabilities 125 487 144 881 755 20
================================================================================================================================
Net assets $ 292,186 722,265 294,674 1,157,745 1,764,982 47,650
================================================================================================================================
Oustanding units 22,549 51,174 20,248 120,061 141,823 4,569
================================================================================================================================
Net asset value per unit $ 12.96 14.11 14.55 9.64 12.45 10.43
================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Janus Aspen Series
------------------------------------------------------------
Aggressive Worldwide Flexible
Growth Growth Growth Balanced Income
Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series, at fair
value (note 2):
Aggressive Growth Portfolio
(107,824 shares; cost - $1,884,391) $2,018,460 -- -- -- --
Growth Portfolio (220,274 shares;
shares; cost - $3,166,055) -- 3,766,694 -- -- --
Worldwide Growth Portfolio
(327,261 shares; cost - $5,959,949) -- -- 7,468,086 -- --
Balanced Portfolio (65,824 shares;
cost - $951,706) -- -- -- 1,067,003 --
Flexible Income Portfolio
(17,647 shares; cost - $198,351) -- -- -- -- 199,056
International Growth Portfolio
(88,780 shares; cost - $1,473,719) -- -- -- -- --
Capital Appreciation Portfolio
(320 shares; cost - $3,582) -- -- -- -- --
Receivable from affiliate (note 3) 79,894 5,430 6,088 -- --
Receivable for units sold -- -- 7,153 302 --
- ----------------------------------------------------------------------------------------------------------------
Total assets $2,098,354 3,772,124 7,481,327 1,067,305 199,056
================================================================================================================
Liabilities
- ----------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 898 1,586 3,162 1,200 270
Payable for units withdrawn 282 419 -- -- 5
- ----------------------------------------------------------------------------------------------------------------
Total liabilities 1,180 2,005 3,162 1,200 275
================================================================================================================
Net assets $2,097,174 3,770,119 7,478,165 1,066,105 198,781
================================================================================================================
Outstanding units 134,945 229,061 408,621 78,413 16,954
================================================================================================================
Net asset value per unit $ 15.54 16.46 #18.30 13.60 11.73
================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
Janus Aspen Series
---------------------------
International Capital
Growth Appreciation
Portfolio Portfolio
- -------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series, at fair
value (note 2):
Aggressive Growth Portfolio
(107,824 shares; cost - $1,884,391) -- --
Growth Portfolio (220,274 shares;
shares; cost - $3,166,055) -- --
Worldwide Growth Portfolio
(327,261 shares; cost - $5,959,949) -- --
Balanced Portfolio (65,824 shares;
cost - $951,706) -- --
Flexible Income Portfolio
(17,647 shares; cost - $198,351) -- --
International Growth Portfolio
(88,780 shares; cost - $1,473,719) 1,639,772 --
Capital Appreciation Portfolio
(320 shares; cost - $3,582) -- 3,761
Receivable from affiliate (note 3) 5,789 13
Receivable for units sold -- --
- ------------------------------------------------------------------------
Total assets 1,645,561 3,774
========================================================================
Liabilities
- ------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 693 1
Payable for units withdrawn 21,076 --
- ------------------------------------------------------------------------
Total liabilities 21,769 1
========================================================================
Net assets 1,623,792 3,773
========================================================================
Outstanding units 118,326 322
========================================================================
Net asset value per unit 13.72 11.73
========================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Operations
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
------------------------------------------------------------
S&P 500 Government Money Total
Index Securities Market Return
Fund Fund Fund Fund
------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ -- -- 9,493,770 --
Expenses - Mortality and expense risk charges (note 3) 12,432 5,174 66,524 9,578
- -------------------------------------------------------------------------------------------------------------------------
Net investment income (12,432) (5,174) 9,427,246 (9,578)
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) (93,088) (4,041) (3,327,438) (5,565)
Unrealized appreciation (depreciation) on investments 420,719 13,739 (5,341,949) 154,232
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 327,631 9,698 (8,669,387) 148,667
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 315,199 4,524 757,859 139,089
=========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
----------------------------------------------
International Real Estate Value
Equity Securities Equity
Fund Fund Fund
-------------------------------------------
Six Months Six Months Period from
Ended 6/30/97 Ended 6/30/97 6/17-6/30/97
- --------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends -- -- --
Expenses - Mortality and expense risk charges (note 3) 6,994 2,745 8
- ---------------------------------------------------------------------------------------------------
Net investment income (6,994) (2,745) (8)
- ---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 34,387 6,975 --
Unrealized appreciation (depreciation) on investments 150,442 32,773 (215)
- ---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 184,829 39,748 (215)
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 177,835 37,003 (223)
===================================================================================================
</TABLE>
See accompanying notes to financial statements.
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Operations, Continued
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
-----------------------------------------------------------------------------
Capital High Multiple
Money Bond Appreciation Growth Income Strategies
Fund Fund Fund Fund Fund Fund
-----------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months Six Months
Ended Ended Ended Ended Ended Ended
6/30/97 6/30/97 6/30/97 6/30/97 6/30/97 6/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 4,097 52,352 271,809 137,266 191,758 146,887
Expenses - Mortality and expense risk charges (note 3) 1,018 10,045 35,549 15,571 25,302 16,709
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income 3,079 42,307 236,260 121,695 166,456 130,178
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized (loss) gain on investments:
Net realized gain -- 3,942 47,813 76,401 30,776 11,778
Unrealized appreciation (depreciation) on investments -- (13,211) 74,570 129,031 (35,971) 73,859
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized (loss) gain on investments -- (9,269) 122,383 205,432 (5,195) 85,637
- -------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $ 3,079 33,038 358,643 327,127 161,261 215,815
===============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Operations, Continued
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
-----------------------------------------------------------------------
Money High Equity
Market Income Income Growth Overseas
Portfolio Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 24,432 105,638 1,283,339 315,208 506,300
Expenses - Mortality and expense risk
charges (note 3) 6,067 8,254 86,042 56,066 36,680
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 18,365 97,384 1,197,297 259,142 469,620
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) -- 5,217 376,087 328,497 66,511
Unrealized appreciation (depreciation) on
investments -- (15,952) 400,671 464,308 350,932
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments -- (10,735) 776,758 792,805 417,443
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 18,365 86,649 1,974,055 1,051,947 887,063
=================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Operations, Continued
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Variable Insurance Variable Insurance
Products Fund II Product Fund III
--------------------- ------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/97 Ended 6/30/97 5/16-6/30/97 5/16-6/30/97
- ----------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 1,006,221 150,006 -- --
Expenses - Mortality and expense risk charges (note 3) 55,682 34,042 149 299
- ----------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 950,539 115,964 (149) (299)
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 37,423 110,002 9 18
Unrealized appreciation (depreciation) on investments (110,339) 308,444 6,361 10,261
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (72,916) 418,446 6,370 10,279
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 877,623 534,410 6,221 9,980
======================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Advisers Management Trust
-----------------------------------------
Balanced Bond Growth
Portfolio Portfolio Portfolio
------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 123,193 36,455 64,488
Expenses - Mortality and expense risk charges (note 3) 12,541 3,544 4,975
- -------------------------------------------------------------------------------------------------------
Net investment income (expense) 110,652 32,911 59,513
- -------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 5,864 (6,909) 8,991
Unrealized appreciation (depreciation) on investments 78,261 (14,125) 48,668
- -------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 84,125 (21,034) 57,659
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 194,777 11,877 117,172
=======================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Operations, Continued
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
Federated Investors
Insurance Series Alger American Fund
------------------------- -------------------------
American High Small
Leaders Income Bond Utility Cap
Fund II Fund II Fund II Portfolio
----------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 1,480 33,882 10,429 42,941
Expenses - Mortality and expense risk charges
(note 3) 631 4,534 1,731 7,050
- --------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 849 29,348 8,698 35,891
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) 2,243 2,124 9,345 (22,699)
Unrealized appreciation (depreciation)
on investments 16,810 6,286 4,206 (6,850)
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 19,053 8,410 13,551 (29,549)
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $19,902 37,758 22,249 6,342
====================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
Alger PBHG Insurance
American Fund Series Fund
-------------------------------------
PBHG
Growth Growth II
Portfolio Portfolio
-------------------------------------
Six Months Period from
nded 6/30/97 5/22-6/30/97
- ------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 15,712 --
Expenses - Mortality and expense risk charges
(note 3) 10,601 20
- ------------------------------------------------------------------------------------------------
Net investment income (expense) 5,111 (20)
- ------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) 38,513 1
Unrealized appreciation (depreciation) on
investments 163,577 1,695
- ------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 202,090 1,696
- ------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 207,201 1,676
================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Operations, Continued
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
-------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - 100,560 96,710 24,440
Expenses - Mortality and expense risk charges (note 3) 11,623 21,323 38,103 5,409
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (11,623) 79,237 58,607 19,031
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) (45,361) 44,758 153,173 3,167
Unrealized appreciation (depreciation) on investments 123,637 274,770 808,173 75,304
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 78,276 319,528 961,346 78,471
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 66,653 398,765 1,019,953 97,502
============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Janus Aspen Series
------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
------------------------------------------
Six Months Six Months Period from
Ended 6/30/97 Ended 6/30/97 5/22-6/30/97
- ---------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 7,637 11,383 -
Expenses - Mortality and expense risk charges (note 3) 1,160 6,281 5
- ----------------------------------------------------------------------------------------------------------
Net investment income (expense) 6,477 5,102 (5)
- ----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 272 14,113 -
Unrealized appreciation (depreciation) on investments 93 148,654 180
- ----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 365 162,767 180
- ----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 6,842 167,869 175
==========================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
---------------------------------------------------------------------
S&P 500 Government Money Total International
Index Securities Market Return Equity
Fund Fund Fund Fund Fund
----------- ----------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income $ (12,432) (5,174) 9,427,246 (9,578) (6,994)
Net realized gain (loss) (93,088) (4,041) (3,327,438) (5,565) 34,387
Unrealized appreciation (depreciation) on investments 420,719 13,739 (5,341,949) 154,232 150,442
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 315,199 4,524 757,859 139,089 177,835
- ----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 559 -- 7,512,379 32,953 --
Loan interest -- 5 25,986 61 --
Transfers (to) from the general account of
Life of Virginia:
Death benefits (1,802) -- -- -- --
Surrenders (10,631) (16,227) (11,738) (9,555) --
Loans (651) (6,352) (219,091) (51,264) 3,000
Cost of insurance and administrative expense
(note 3) (10,395) (4,375) (63,600) (7,885) (6,008)
Transfer gain (loss) and transfer fees (note 3) 14,363 (207) (629,202) 26,977 4,465
Fixed Transfers 13,558 288 (8,587) 27,620 --
Interfund transfers 247,137 112,136 (7,340,023) 33,596 186,545
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 238,580 84,980 (725,289) 24,883 188,002
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 553,779 89,504 32,570 163,982 365,837
Net assets at beginning of year 1,558,602 775,255 9,891,507 1,398,465 792,744
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $2,112,381 864,759 9,924,077 1,562,447 1,158,581
==================================================================================================================================
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-----------------------------
Real Estate Value
Securities Equity
Fund Fund
-----------------------------
Six Months Period from
Ended 6/30/97 6/17-6/30/97
- ------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (2,745) (8)
Net realized gain (loss) 6,975 --
Unrealized appreciation (depreciation) on investments 32,773 (215)
- ------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 37,003 (223)
- -----------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 45,573 --
Loan interest -- --
Transfers (to) from the general account of
Life of Virginia:
Death benefits -- --
Surrenders -- --
Loans (4,874) --
Cost of insurance and administrative expense
(note 3) (2,640) --
Transfer gain (loss) and transfer fees (note 3) (3,230) --
Fixed Transfers -- --
Interfund transfers 390,329 17,822
- -----------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 425,158 17,822
- -----------------------------------------------------------------------------------------
Increase (decrease) in net assets 462,161 17,599
Net assets at beginning of year 228,034 --
- -----------------------------------------------------------------------------------------
Net assets at end of year 690,195 17,599
=========================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
-----------------------------------------------------
Capital
Money Bond Appreciation
Fund Fund Fund
-----------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase in net assets From operations:
Net investment income $ 3,079 42,307 236,260
Net realized gain - 3,942 47,813
Unrealized appreciation (depreciation) on investments - (13,211) 74,570
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 3,079 33,038 358,643
- ---------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums - - 138,631
Loan interest - 245 (183)
Transfers (to) from the general account of Life of Virginia:
Death benefits - - -
Surrenders - - -
Loans - (10,801) (22,322)
Cost of insurance and administrative expense (note 3) (826) (8,229) (31,602)
Transfer gain (loss) and transfer fees (note 3) (126) (354) 1,060
Fixed Transfers - 3,864 40,053
Interfund transfers - (148,379) 649,395
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions (952) (163,654) 775,032
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets 2,127 (130,616) 1,133,675
Net assets at beginning of period 156,227 1,655,716 5,350,638
- ---------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 158,354 1,525,100 6,484,313
=====================================================================================================================
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
------------------------------------------------------------
High Multiple
Growth Income Strategies
Fund Fund Fund
------------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase in net assets From operations:
Net investment income 121,695 166,456 130,178
Net realized gain 76,401 30,776 11,778
Unrealized appreciation (depreciation) on investments 129,031 (35,971) 73,859
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 327,127 161,261 215,815
- ----------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 117,237 48,815 7,953
Loan interest (255) 72 (964)
Transfers (to) from the general account of Life of Virginia:
Death benefits - - (2,000)
Surrenders - (9,092) -
Loans (168) (7,436) (9,726)
Cost of insurance and administrative expense (note 3) (13,303) (20,912) (13,921)
Transfer gain (loss) and transfer fees (note 3) 1,776 (4,765) (555)
Fixed Transfers 31,658 - 8,500
Interfund transfers 764,600 365,601 285,175
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 901,545 372,283 274,462
- ----------------------------------------------------------------------------------------------------------------------------
Increase in net assets 1,228,672 533,544 490,277
Net assets at beginning of period 1,914,770 3,943,474 2,343,436
- ----------------------------------------------------------------------------------------------------------------------------
Net assets at end of period 3,143,442 4,477,018 2,833,713
============================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA III
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
----------------------------------------------------------
Money High Equity
Market Income Income
Portfolio Portfolio Portfolio
----------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) $ 18,365 97,384 1,197,297
Net realized gain (loss) - 5,217 376,087
Unrealized appreciation (depreciation) on investments - (15,952) 400,671
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 18,365 86,649 1,974,055
- --------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums - - 156,698
Loan interest (3,559) 6 (6,062)
Transfers (to) from the general account of Life of Virginia:
Death benefits - - (18,249)
Surrenders (11,508) (48,362) (18,859)
Loans (17,907) (3,759) (54,419)
Cost of insurance and administrative expense (note 3) (4,909) (6,529) (72,000)
Transfer gain (loss) and transfer fees (note 3) 113 (1,001) 11,342
Fixed Transfers - - 61,529
Interfund transfers (263,954) (120,450) 531,883
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (301,724) (180,095) 591,863
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets (283,359) (93,446) 2,565,918
Net assets at beginning of year 1,110,456 1,323,420 12,389,259
- --------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 827,097 1,229,974 14,955,177
==========================================================================================================================
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
-----------------------------------
Growth Overseas
Portfolio Portfolio
-------------------------------------
Six Months Six Months
Ended 6/30/97 Ended 6/30/97
- -----------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) 259,142 469,620
Net realized gain (loss) 328,497 66,511
Unrealized appreciation (depreciation) on investments 464,308 350,932
- -----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 1,051,947 887,063
- -----------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 57,078 6,405
Loan interest (2,966) (3,931)
Transfers (to) from the general account of Life of Virginia:
Death benefits (1,634) -
Surrenders (7,950) (6,777)
Loans (42,766) (67,318)
Cost of insurance and administrative expense (note 3) (46,989) (30,666)
Transfer gain (loss) and transfer fees (note 3) (8,611) (5,045)
Fixed Transfers 30,624 49,518
Interfund transfers (845,370) 448,133
- -----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (868,584) 390,319
- -----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 183,363 1,277,382
Net assets at beginning of year 8,806,011 5,376,544
- -----------------------------------------------------------------------------------------------------
Net assets at end of year 8,989,374 6,653,926
=====================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Variable Insurance
Variable Insurance Products Fund II Product Fund III
----------------------------------------- -------------------
Asset Growth &
Manager Contrafund Income
Portfolio Portfolio Portfolio
--------------------------------------------------------------
Six Months Six Months Period from
Ended 6/30/97 Ended 6/30/97 5/30-6/30/97
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income $ 950,539 115,964 (149)
Net realized gain (loss) 37,423 110,002 9
Unrealized appreciation (depreciation) on investments (110,339) 308,444 6,361
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 877,623 534,410 6,221
- ------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 91,687 112,792 -
Loan interest (5,232) (32) -
Transfers (to) from the general account of Life of Virginia:
Death benefits (58,519) (1,797) -
Surrenders - - -
Loans (31,014) (20,116) -
Cost of insurance and administrative expense (note 3) (47,180) (30,560) (158)
Transfer gain (loss) and transfer fees (note 3) 2,191 9,816 (4)
Fixed Transfers 7,700 94,450 -
Interfund transfers 429,942 578,522 88,747
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 389,575 743,075 88,585
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets 1,267,198 1,277,485 94,806
Net assets at beginning of year 8,253,664 4,711,134 -
- ------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 9,520,862 5,988,619 94,806
========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Variable Insurance
Product Fund III Advisers Management Trust
------------------- -------------------------------------------
Growth
Opportunities Balanced Bond Growth
Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------
Period from Six Months Six Months Six Months
5/30-6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (299) 110,652 32,911 59,513
Net realized gain (loss) 18 5,864 (6,909) 8,991
Unrealized appreciation (depreciation) on investments 10,261 78,261 (14,125) 48,668
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 9,980 194,777 11,877 117,172
- --------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums - - - -
Loan interest - (1,050) (55) (900)
Transfers (to) from the general account of Life of Virginia:
Death benefits - - - -
Surrenders - - - -
Loans - (1,092) (3,717) (7,618)
Cost of insurance and administrative expense (note 3) (317) (9,993) (2,803) (4,079)
Transfer gain (loss) and transfer fees (note 3) (7) 380 210 (1,055)
Fixed Transfers - - - -
Interfund transfers 186,683 (26,574) (154,661) (82,282)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 186,359 (38,329) (161,026) (95,934)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 196,339 156,448 (149,149) 21,238
Net assets at beginning of year - 1,872,562 637,434 749,376
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year 196,339 2,029,010 488,285 770,614
=================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Federated Investors Insurance Series
-----------------------------------------------------------
American High
Leaders Income Bond Utility
Fund II Fund II Fund II
----------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- --------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ 849 29,348 8,698
Net realized gain (loss) 2,243 2,124 9,345
Unrealized appreciation (depreciation) on investments 16,810 6,286 4,206
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 19,902 37,758 22,249
- --------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 80,943 39,252 -
Loan interest - 1,160 (1)
Transfers (to) from the general account of Life of Virginia:
Death benefits - - -
Surrenders - - -
Loans - (6,178) (19,772)
Cost of insurance and administrative expense (note 3) (564) (3,920) (1,594)
Transfer gain (loss) and transfer fees (note 3) 599 (2,425) 2,115
Fixed Transfers 300 2,788 6,000
Interfund transfers 173,243 (24,769) 43,965
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 254,521 5,908 30,713
- --------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 274,423 43,666 52,962
Net assets at beginning of year 17,763 678,599 241,712
- --------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 292,186 722,265 294,674
==========================================================================================================================
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
PBHG Insurance
Alger American Fund Series Fund
------------------------------------ -----------------
Small PBHG
Cap Growth Growth II
Portfolio Portfolio Portfolio
--------------------------------------------------------
Six Months Six Months Period from
Ended 6/30/97 Ended 6/30/97 5/21-6/30/97
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) 35,891 5,111 (20)
Net realized gain (loss) (22,699) 38,513 1
Unrealized appreciation (depreciation) on investments (6,850) 163,577 1,695
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 6,342 207,201 1,676
- ------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 53,695 7,254 -
Loan interest (1) (13) -
Transfers (to) from the general account of Life of Virginia
Death benefits - - -
Surrenders - - -
Loans (3,758) (29,174) -
Cost of insurance and administrative expense (note (7,370) (10,463) (10)
Transfer gain (loss) and transfer fees (note 3) (9,158) (20,871) (40)
Fixed Transfers 31,423 15,283 358
Interfund transfers 14,457 243,643 45,666
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 79,288 205,659 45,974
- -----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 85,630 412,860 47,650
Net assets at beginning of year 1,072,115 1,352,122 -
- -----------------------------------------------------------------------------------------------------------------------
Net assets at end of year 1,157,745 1,764,982 47,650
=======================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
-----------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth
Portfolio Portfolio Portfolio
-----------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (11,623) 79,237 58,607
Net realized gain (loss) (45,361) 44,758 153,173
Unrealized appreciation (depreciation) on investments 123,637 274,770 808,173
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 66,653 398,765 1,019,953
- ---------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 40,057 64,562 200,229
Loan interest (60) (64) (257)
Transfers (to) from the general account of Life of Virginia:
Death benefits - - (1,737)
Surrenders - - -
Loans (5,026) (77,058) (2,419)
Cost of insurance and administrative expense (note 3) (10,542) (19,346) (33,270)
Transfer gain (loss) and transfer fees (note 3) 703 937 (8,460)
Fixed Transfers 14,062 52,292 68,641
Interfund transfers 14,649 563,143 1,283,648
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 53,843 584,466 1,506,375
- ---------------------------------------------------------------------------------------------------------------------------
Increase in net assets 120,496 983,231 2,526,328
Net assets at beginning of period 1,976,678 2,786,888 4,951,837
- ---------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 2,097,174 3,770,119 7,478,165
===========================================================================================================================
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
-------------------------------------------------------------------
Flexible International Capital
Balanced Income Growth Appreciation
Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------
Six Months Six Months Six Months Period from
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 5/21-6/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) 19,031 6,477 5,102 (5)
Net realized gain (loss) 3,167 272 14,113 -
Unrealized appreciation (depreciation) on investments 75,304 93 148,654 180
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 97,502 6,842 167,869 175
- ------------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 25,001 - 48,427 -
Loan interest (1,328) (3) (1,622) -
Transfers (to) from the general account of Life of Virginia:
Death benefits - - - -
Surrenders - - - -
Loans 10,023 (2,048) (10,000) -
Cost of insurance and administrative expense (note 3) (10,025) (1,073) (5,541) -
Transfer gain (loss) and transfer fees (note 3) (3,928) (50) 5,383 6
Fixed Transfers 19,314 1,474 58,218 -
Interfund transfers 299,033 34,168 971,010 3,592
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 338,090 32,468 1,065,875 3,598
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 435,592 39,310 1,233,744 3,773
Net assets at beginning of period 630,513 159,471 390,048 -
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period 1,066,105 198,781 1,623,792 3,773
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT III
Notes to Financial Statements
June 30, 1997
- -----------------------------------------------------------------------------
(1) Description of Entity
Life of Virginia Separate Account III (the Account) is a separate
investment account established in 1986 by The Life Insurance Company of
Virginia (Life 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 variable life insurance policies issued by Life of
Virginia. The Life Insurance Company of Virginia is a stock life
insurance company operating under a charter granted by the Commonwealth
of Virginia on March 21, 1871. Eighty percent of the capital stock of
Life of Virginia is owned by General Electric Capital Assurance
Corporation. The remaining 20% is owned by GE Life Insurance Group,
Inc. General Electric Capital Assurance Corporation and GE Life
Insurance Group, Inc. are indirectly, wholly-owned subsidiaries of
General Electric Capital Corporation ("GE Capital"). GE Capital, a New
York corporation, is a diversified financial services company.
In May 1997, seven new investment subdivisions were added to the
Account, for both Type I and II policies. The Growth & Income Portfolio
and Growth Opportunities Portfolio each invests solely in a designated
portfolio of the Variable Insurance Products Fund III. The Global
Income Fund and the Value Equity Fund each invests 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 invests solely in a designated portfolio of the PBHG
Insurance Series Fund. All designated portfolios described above are
series type mutual funds.
For policies issued after May 1, 1995, some policyowners may transfer
cash values between the Account's portfolios and the Guarantee Account
that is part of the general account of Life of Virginia. Amounts
transferred to the Guarantee Account earn interest at the interest rate
effective at the time of such transfer and remain in effect for one
year, after which a new rate may be declared.
(2) Summary of Significant Accounting Policies
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.
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.
19
(Continued)
<PAGE>
The aggregate cost of the investments acquired and the aggregate
proceeds of investments sold, for the six months ended June 30,
1997, were:
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- ------------------------------------------------------------------
GE Investment Funds, Inc.:
S&P 500 Index 1,904,614 $ 1,019,453
Government Securities 229,912 71,830
Money Market 28,250,723 18,330,770
Total Return 520,726 117,810
International Equity 2,006,004 1,783,115
Real Estate Securities 548,082 110,901
Global Income 0 0
Value Equity 17,822 1
Oppenheimer Variable Account Funds:
Money 4,097 1,822
Bond 213,377 333,941
Capital Appreciation 1,437,854 408,992
Growth 1,531,270 509,411
High Income 3,052,960 2,520,189
Multiple Strategies 504,316 98,747
Variable Insurance Products Fund:
Money Market 46,467 328,393
High Income 106,712 188,371
Equity-Income 4,778,803 2,999,851
Growth 1,782,513 2,392,850
Overseas 3,651,558 2,799,927
Variable Insurance Products Fund II:
Asset Manager 1,735,473 395,857
Contrafund 2,412,091 1,568,216
Variable Insurance Products Fund III:
Growth & Income 88,747 190
Growth Opportunties 186,683 387
(Continued)
20
<PAGE>
Advisers Management Trust:
Bond 38,390 167,729
Growth 64,588 100,086
Balanced 127,069 55,158
Janus Aspen Series:
Balanced 397,919 40,544
Aggressive Growth 1,226,984 1,186,197
Growth 952,882 298,660
Worldwide 2,488,126 904,634
Flexible Income 56,322 17,310
International Growth 1,322,607 235,669
Capital Appreciation 3,592 10
Federated Insurance Series:
American Leaders Fund II 354,907 100,007
Utility Fund II 185,791 148,483
High Income Bond Fund II 90,443 54,839
The Alger American Fund
Small Cap 510,180 373,708
Growth 2,718,334 2,508,067
PBHG Insurance Series Fund, Inc.
PBHG Large Cap Growth -- --
PBHG Growth II 46,023 85
Federal Income Taxes
The Account is not taxed separately because the operations of the
Account are part of the total operations of Life of Virginia. Life
of Virginia is taxed as a life insurance company under the Internal
Revenue Code (the Code). Life of Virginia is included in the General
Electric Capital Assurance Company consolidated federal income tax
return.
(Continued)
21
<PAGE>
The Account will not be taxed as a regulated investment company under
subchapter M of the Code. Under existing federal income tax law, no
taxes are payable on the investment income or on the capital gains of
the Account.
Use of Estimates
Financial statements prepared in conformity with generally accepted
accounting principles require management to make estimates and
assumptions that affect amounts reported therein. Actual results
could differ from those estimates.
(3) Related Party Transactions
Net premiums transferred from Life of Virginia to the Account represent
gross premiums recorded by Life of Virginia on its variable life
insurance policies. During the first ten years following a premium
payment, a charge is deducted monthly at an effective annual rate of
.50% from the policy cash value to cover distribution expenses and
premiums taxes. If a policy surrenders or lapses during the first
nine years, a charge is made by Life of Virginia to cover the
expenses of issuing the policy. Subject to certain limitations, the
charge generally equals 6% of the premium withdrawn in the first four
years, and this charge decreases 1% per year for every year
thereafter. A charge equal to the lesser of $25 or 2% of the amount
paid on a partial surrender will be made to compensate Life of
Virginia 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 Life of Virginia for the cost of insurance. In addition,
Life of Virginia charges the Account for the mortality and
expense risk that Life of Virginia assumes. This charge is deducted
daily at an effective annual rate of .90% of the net assets of
the Account. Life of Virginia also charges the Account for certain
administrative charges which are deducted daily and equal the
effective annual rate of .40% of the net assets of the Account.
Gains or losses resulting from the processing time between the
crediting of an initial net premium and the investment of that
premium are charged to Life of Virginia. In addition, any such
gain or loss resulting from the processing time between a request
for policy surrender and the sale of the underlying shares is also
charged to Life of Virginia.
GE Investment Funds, Inc. (the Fund) is an open-end diversified
management investment company whose shares are sold to Life of
Virginia's Separate Accounts.
(Continued)
22
<PAGE>
Forth Financial Securities Corporation (FFSC), an affiliate of
Life of Virginia, acts as principal underwriter (as defined in
The Investment Company Act of 1940) of the Account's policies
pursuant to an agreement with Life of Virginia.
GE Investment Management Incorporated currently serves as
investment adviser to GE Investment Funds, Inc. (formerly
Life of Virginia Series Fund, Inc.). Prior to May 1, 1997, Aon
Advisors, Inc. served as investment advisor to the Fund and had
agreed to reimburse the Fund for certain expenses of each of the
Fund's portfolios. 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, .10% for the Government Securities Fund, .50%
for the Money Market and Total Return Funds, 1.00% for the
International Equity Fund and .85% for the Real Estate Securities
Fund.
Certain officers and directors of Life of Virginia are also officers
and directors of FFSC and the Fund.
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