<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
(formerly Life of Virginia Separate Account III)
Financial Statements
Year ended December 31, 1999
(With Independent Auditors' Report Thereon)
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Table of Contents
December 31, 1999
<TABLE>
<CAPTION>
Page
----
<S> <C>
Independent Auditors' Report............................................... F-1
Financial Statements:
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-42
</TABLE>
<PAGE>
Independent Auditors' Report
Policyholders
GE Life & Annuity Separate Account III
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 III (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, Aggressive Growth/VA, Capital Appreciation/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 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 III 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 III
Statements of Assets and Liabilities
December 31, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
---------------------------------------------------------
S&P 500 Money Total Real Estate
Index Market Return International Securities
Fund Fund Fund Equity Fund Fund
---------- ---------- --------- ------------- -----------
<S> <C> <C> <C> <C> <C>
Assets
Investment in GE Invest-
ments Funds, Inc.,
at fair value (note 2):
S&P 500 Index Fund
(297,321 shares;
cost --
$7,178,322)........ $8,354,713 -- -- -- --
Money Market Fund
(15,979,159 shares;
cost --
$15,979,159)........ -- 15,979,159 -- -- --
Total Return Fund
(111,198 shares;
cost -- $1,589,705).. -- -- 1,763,598 -- --
International Equity
Fund (30,022 shares;
cost -- $387,380).... -- -- -- 434,424 --
Real Estate Securities
Fund (56,974 shares;
cost -- $826,644).... -- -- -- -- 619,311
Receivable from affili-
ate.................... -- -- 5 -- --
Receivable for units
sold................... 28,428 67,844 -- -- --
---------- ---------- --------- ------- -------
Total assets........... 8,383,141 16,047,003 1,763,603 434,424 619,311
---------- ---------- --------- ------- -------
Liabilities
Accrued expenses payable
to affiliate (note 3).. 9,094 616,281 884 24,598 4,824
Payable for units with-
drawn.................. -- -- -- -- --
---------- ---------- --------- ------- -------
Total liabilities...... 9,094 616,281 884 24,598 4,824
---------- ---------- --------- ------- -------
Net assets attributable
to variable life
policyholders.......... $8,374,047 15,430,722 1,762,719 409,826 614,487
========== ========== ========= ======= =======
Outstanding units....... 162,477 951,339 52,618 22,022 41,745
========== ========== ========= ======= =======
Net asset value per
unit................... $ 51.54 16.22 33.50 18.61 14.72
========== ========== ========= ======= =======
</TABLE>
F-2
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Assets and Liabilities
December 31, 1999
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
-----------------------------------------------
Global Value U.S. Premier
Income Equity Income Equity Growth Equity
Fund Fund Fund Fund Fund
------- ------- --------- ------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in GE Investments
Funds, Inc., at fair value
(note 2):
Global Income Fund (2,814
shares; cost -- $27,571).... 26,986 -- -- -- --
Value Equity Fund (47,931
shares;
cost -- $728,049)........... -- 756,828 -- -- --
Income Fund (115,186 shares;
cost of $1,402,038)......... -- -- 1,325,786 -- --
U.S. Equity Fund (3,436
shares; cost $126,687)...... -- -- -- 130,206 --
Premier Growth Equity Fund
(5,212 shares;
cost $407,296).............. -- -- -- -- 462,041
Receivable from affiliate...... 869 -- -- -- --
Receivable for units sold...... -- -- -- -- --
------- ------- --------- ------- -------
Total assets.................. 27,855 756,828 1,325,786 130,206 462,041
------- ------- --------- ------- -------
Liabilities
Accrued expenses payable to af-
filiate (note 3).............. 12 1,482 1,436 1,351 241
Payable for units withdrawn.... -- -- -- -- --
------- ------- --------- ------- -------
Total liabilities............. 12 1,482 1,436 1,351 241
------- ------- --------- ------- -------
Net assets attributable to
variable life policyholders... $27,843 755,346 1,324,350 128,855 461,800
======= ======= ========= ======= =======
Outstanding units.............. 2,659 47,150 127,587 10,235 39,302
======= ======= ========= ======= =======
Net asset value per unit....... $ 10.47 16.02 10.38 12.59 11.75
======= ======= ========= ======= =======
</TABLE>
F-3
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Assets and Liabilities, continued
December 31, 1999
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
-------------------------------------------------------
Aggressive Capital High Multiple
Bond Growth Appreciation Income Strategies
Fund/VA Fund/VA Fund/VA Fund/VA Fund/VA
---------- ---------- ------------ --------- ----------
<S> <C> <C> <C> <C> <C>
Assets
Investment in Oppen-
heimer Variable Ac-
count Funds,
at fair value (note
2):
Bond Fund/VA (139,174
shares;
cost --
$1,672,807)........ $1,609,507 -- -- -- --
Aggressive Growth
Fund/VA (111,088
shares;
cost --
$5,315,725)........ -- 9,143,625 -- -- --
Capital Appreciation
Fund/VA (98,939
shares;
cost --
$3,826,298)........ -- -- 4,931,122 -- --
High Income Fund/VA
(426,138 shares;
cost --
$4,620,113)........ -- -- -- 4,568,195 --
Multiple Strategies
Fund/VA (178,663
shares;
cost --
$2,919,310)........ -- -- -- -- 3,119,454
Receivable from affili-
ate................... -- -- -- 167 --
Receivable for units
sold.................. -- -- -- -- --
---------- --------- --------- --------- ---------
Total assets.......... 1,609,507 9,143,625 4,931,122 4,568,362 3,119,454
---------- --------- --------- --------- ---------
Liabilities
Accrued expenses pay-
able to affiliate
(note 3).............. 1,079 5,024 12,906 2,299 1,999
Payable for units with-
drawn................. -- -- -- 46,876 --
---------- --------- --------- --------- ---------
Total liabilities..... 1,079 5,024 12,906 49,175 1,999
---------- --------- --------- --------- ---------
Net assets attributable
to variable life
policyholders......... $1,608,428 9,138,601 4,918,216 4,519,187 3,117,455
========== ========= ========= ========= =========
Outstanding units...... 71,486 136,764 94,309 137,529 102,886
========== ========= ========= ========= =========
Net asset value per
unit.................. $ 22.50 66.82 52.15 32.86 30.30
========== ========= ========= ========= =========
</TABLE>
F-4
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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
----------- ---------- --------- --------- ---------- --------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Investment in
Variable
Insurance
Products Fund, at fair value
(note 2):
Equity-Income
Portfolio
(590,300
shares;
cost -
$13,280,532).. $15,716,608 -- -- -- -- -- --
Growth
Portfolio
(287,466 shares;
cost -
$12,414,051).. -- 15,790,513 -- -- -- -- --
Overseas
Portfolio
(173,848 shares;
cost -
$3,651,770).. -- -- 4,770,384 -- -- -- --
Investment in
Variable
Insurance
Products Fund II, at fair value
(note 2):
Asset Manager
Portfolio
(517,412
shares;
cost -
$7,973,391).. -- -- -- 9,660,076 -- -- --
Contrafund
Portfolio
(403,279 shares;
cost -
$8,857,815).. -- -- -- -- 11,755,590 -- --
Investment in
Variable
Insurance
Products Fund III, at fair value
(note 2):
Growth &
Income
Portfolio
(87,651
shares;
cost -
$1,461,635).. -- -- -- -- -- 1,516,368 --
Growth Opportunities
Portfolio
(39,247
shares;
cost -
$812,281)... -- -- -- -- -- -- 908,574
Receivable from
affiliate...... 230 -- -- -- 23,428 -- --
----------- ---------- --------- --------- ---------- --------- -------
Total assets... 15,716,838 15,790,513 4,770,384 9,660,076 11,779,018 1,516,368 908,574
----------- ---------- --------- --------- ---------- --------- -------
Liabilities
Accrued expenses
payable to
affiliate (note
3)............. 7,618 16,329 43,411 27,664 11,737 1,752 1,488
Payable for
units
withdrawn...... -- -- -- 105,090 -- -- --
----------- ---------- --------- --------- ---------- --------- -------
Total liabili-
ties.......... 7,618 16,329 43,411 132,754 11,737 1,752 1,488
----------- ---------- --------- --------- ---------- --------- -------
Net assets
attributable to
variable life
policyholders.. $15,169,220 15,774,184 4,726,973 9,527,322 11,767,281 1,514,616 907,086
=========== ========== ========= ========= ========== ========= =======
Outstanding
units.......... 400,455 251,944 161,000 315,788 366,925 88,834 58,334
=========== ========== ========= ========= ========== ========= =======
Net asset value
per unit....... $ 37.88 62.61 29.36 30.17 32.07 17.05 15.55
=========== ========== ========= ========= ========== ========= =======
</TABLE>
F-5
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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 Income Small Large Cap PBHG
Leaders Bond Utility Capitalization Growth Growth Growth II
Fund II Fund II Fund II Portfolio Portfolio Portfolio Portfolio
--------- ----------- ------- -------------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Investment in Federated
Insurance Series, at
fair value (note 2):
American Leaders Fund
II (44,516 shares;
cost -- $877,245)... $ 926,827 -- -- -- -- -- --
High Income Bond Fund
II (99,337 shares;
cost -- $1,022,125)
.................... -- 1,017,207 -- -- -- -- --
Utility Fund II
(28,888 shares; cost
-- $380,495)........ -- -- 414,542 -- -- -- --
Investment in Alger
American Fund, at fair
value (note 2):
Small Capitalization
Portfolio (51,163
shares;
cost --
$2,160,133)........ -- -- -- 2,821,633 -- -- --
Growth Portfolio
(85,848 shares;
cost --
$4,491,826)........ -- -- -- -- 5,526,879 -- --
Investment in PBHG
Insurance Series Fund,
Inc. at fair value
(note 2):
PBHG Large Cap Growth
Portfolio (12,373
shares;
cost -- $204,438)... -- -- -- -- -- 315,623 --
PBHG Growth II
Portfolio (14,378
shares;
cost -- $249,693)... -- -- -- -- -- -- 331,421
Receivable for units
sold.................. -- -- -- -- -- -- --
--------- --------- ------- --------- --------- ------- -------
Total assets.......... 926,827 1,017,207 414,542 2,821,633 5,526,879 315,623 331,421
--------- --------- ------- --------- --------- ------- -------
Liabilities
Accrued expenses
payable to affiliate
(note 3).............. 1,343 1,051 1,154 2,507 2,967 27,661 2,338
Payable for units
withdrawn............. -- -- -- -- -- -- --
--------- --------- ------- --------- --------- ------- -------
Total liabilities..... 1,343 1,051 1,154 2,507 2,967 27,661 2,338
--------- --------- ------- --------- --------- ------- -------
Net assets attributable
to variable life
policyholders......... $ 925,484 1,016,156 413,388 2,819,126 5,523,912 287,962 329,083
========= ========= ======= ========= ========= ======= =======
Outstanding units...... 52,435 65,984 21,792 164,765 214,105 11,687 14,784
========= ========= ======= ========= ========= ======= =======
Net asset value per
unit.................. $ 17.65 15.40 18.97 17.11 25.80 24.64 22.26
========= ========= ======= ========= ========= ======= =======
</TABLE>
F-6
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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
Portfolio (177,044
shares; cost --
$7,093,584).......... $10,567,769 -- -- -- -- -- --
Growth Portfolio
(294,219 shares;
cost -- $6,637,318).. -- 9,900,467 -- -- -- -- --
Worldwide Growth
Portfolio (385,152
shares; cost --
$10,897,432)......... -- -- 18,390,996 -- -- -- --
Balanced Portfolio
(244,779 shares;
cost -- $4,739,962).. -- -- -- 6,834,240 -- -- --
Flexible Income
Portfolio (31,715
shares; cost --
$373,704)........... -- -- -- -- 362,191 -- --
International Growth
Portfolio (98,788
shares; cost --
$2,310,335).......... -- -- -- -- -- 3,820,134 --
Capital Appreciation
Portfolio (110,129
shares; cost --
$2,759,243).......... -- -- -- -- -- -- 3,652,983
Receivable from
affiliate.............. -- 370 2,629 -- -- -- --
Receivable for units
sold................... -- -- -- 106,766 -- -- --
----------- --------- ---------- --------- ------- --------- ---------
Total assets........... 10,567,769 9,900,837 18,393,625 6,941,006 362,191 3,820,134 3,652,983
----------- --------- ---------- --------- ------- --------- ---------
Liabilities
Accrued expenses payable
to affiliate (note 3).. 17,644 4,920 9,277 3,435 773 3,004 5,459
Payable for units
withdrawn.............. -- -- -- -- -- -- --
----------- --------- ---------- --------- ------- --------- ---------
Total liabilities...... 17,644 4,920 9,277 3,435 773 3,004 5,459
----------- --------- ---------- --------- ------- --------- ---------
Net assets attributable
to variable life
policyholders.......... $10,550,125 9,895,917 18,384,348 6,937,571 361,418 3,817,130 3,647,524
=========== ========= ========== ========= ======= ========= =========
Outstanding units....... 211,129 293,473 476,525 284,911 26,831 134,264 113,207
=========== ========= ========== ========= ======= ========= =========
Net asset value per
unit................... $ 49.97 33.72 38.58 24.35 13.47 28.43 32.22
=========== ========= ========== ========= ======= ========= =========
</TABLE>
F-7
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Assets and Liabilities, Continued
December 31, 1999
<TABLE>
<CAPTION>
Goldman Sachs
Variable Salomon Brothers
Insurance Variable
Trust Series Fund Inc.
---------------- ----------------
Growth
and Mid Cap Strategic Total
Income Value Bond Return
Fund Fund Fund Fund
-------- ------- --------- ------
<S> <C> <C> <C> <C>
Assets
Investment in Goldman Sachs Variable
Insurance Trust, at fair value (note 2):
Growth and Income Fund (6,300 shares;
cost -- $71,397)......................... $ 68,606 -- -- --
Mid Cap Value Fund (28,992 shares; cost --
$271,024)............................... -- 244,112 -- --
Investment in Salomon Brothers Variable
Series Fund Inc., at fair value (note 2):
Strategic Bond Fund (10,611 shares;
cost -- $106,829)........................ -- -- 102,505 --
Total Return Fund (628 shares; cost --
$6,852)................................. -- 6,428
Receivable from affiliate................... -- -- -- --
Receivable for units sold................... -- -- -- --
-------- ------- ------- -----
Total assets............................... 68,606 244,112 102,505 6,428
-------- ------- ------- -----
Liabilities
Accrued expenses payable to affiliate (note
3)......................................... 37 210 57 3
Payable for units withdrawn................. -- -- -- --
-------- ------- ------- -----
Total liabilities.......................... 37 210 57 3
-------- ------- ------- -----
Net assets attributable to variable life
policyholders.............................. $ 68,569 243,902 102,448 6,425
======== ======= ======= =====
Outstanding units........................... 7,445 29,140 10,103 606
======== ======= ======= =====
Net asset value per unit.................... $ 9.21 8.37 10.14 10.61
======== ======= ======= =====
</TABLE>
See accompanying notes to financial statements.
F-8
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
-------------------------------------------
S&P 500 Government
Index Securities
Fund Fund
------------------------------ ------------
Year ended December 31, Period ended
------------------------------ December 11,
1999 1998 1997 1997
---------- --------- ------- ------------
<S> <C> <C> <C> <C>
Investment income:
Income -- Ordinary Dividends..... $ 57,860 50,925 38,392 --
Expenses -- Mortality and expense
risk charges and administrative
expenses (note 3)............... 97,457 62,371 30,270 9,821
---------- --------- ------- -------
Net investment income (expense).... (39,597) (11,446) 8,122 (9,821)
---------- --------- ------- -------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss)......... 547,538 398,018 125,533 2,596
Unrealized appreciation
(depreciation).................. 714,039 497,472 337,547 46,607
Capital gain distributions....... 79,903 180,554 45,068 --
---------- --------- ------- -------
Net realized and unrealized gain
(loss) on investments............. 1,341,480 1,076,044 508,148 49,203
---------- --------- ------- -------
Increase (decrease) in net assets
from operations................... $1,301,883 1,064,598 516,270 39,382
========== ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
---------------------------------------------------
Money Market Total Return
Fund 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............... $666,017 667,640 524,091 36,096 91,033 43,451
Expenses -- Mortality and
expense risk charges and
administrative expenses
(note 3)................ 173,939 165,220 134,484 24,550 22,215 20,274
-------- ------- -------- ------- ------- -------
Net investment income
(expense)................. 492,078 502,420 389,607 11,546 68,818 23,177
-------- ------- -------- ------- ------- -------
Net realized and unrealized
gain (loss) on
investments:
Net realized gain
(loss).................. -- (2,104) (256,503) 34,289 4,509 1,710
Unrealized appreciation
(depreciation).......... -- 2,104 287,655 110,595 183,805 26,729
Capital gain distribu-
tions................... -- -- -- 42,374 -- 185,237
-------- ------- -------- ------- ------- -------
Net realized and unrealized
gain (loss) on
investments............... -- -- 31,152 187,258 188,314 213,676
-------- ------- -------- ------- ------- -------
Increase (decrease) in net
assets from operations.... $492,078 502,420 420,759 198,804 257,132 236,853
======== ======= ======== ======= ======= =======
</TABLE>
F-9
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
------------------------------------------------------
International Real Estate
Equity 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............ $ 1,099 16,301 6,900 34,118 28,292 38,975
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 4,573 4,237 11,206 9,016 11,845 10,398
-------- ------- -------- ------- -------- -------
Net investment income
(expense).............. (3,474) 12,064 (4,306) 25,102 16,447 28,577
-------- ------- -------- ------- -------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 166 1,173 146,386 (51,641) (76,333) 142,744
Unrealized
appreciation
(depreciation)....... 72,780 5,854 (6,150) 15,871 (155,043) (97,672)
Capital gain distribu-
tions................ 26,382 -- 79,345 1,796 26,116 72,382
-------- ------- -------- ------- -------- -------
Net realized and
unrealized gain (loss)
on investments......... 99,328 7,027 219,581 (33,974) (205,260) 117,454
-------- ------- -------- ------- -------- -------
Increase (decrease) in
net assets from
operations............. $95,854 19,091 215,275 (8,872) (188,813) 146,031
======== ======= ======== ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
(continued)
---------------------------------
Global
Income Fund
---------------------------------
Period from
Year ended September 15,
December 31, 1997 to
------------------- December 31,
1999 1998 1997
--------- -------- -------------
<S> <C> <C> <C>
Investment income:
Income -- Ordinary Dividends............... $ 376 1,547 629
Expenses -- Mortality and expense risk
charges and administrative expenses (note
3)........................................ 10,893 292 19
--------- ------- -----
Net investment income (expense).............. (10,517) 1,255 610
--------- ------- -----
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss)................... (174,205) 11
Unrealized appreciation (depreciation)..... (1,207) 1,291 (669)
Capital gain distributions................. 28 64 55
--------- ------- -----
Net realized and unrealized gain (loss) on
investments................................. (175,384) 1,366 (614)
--------- ------- -----
Increase (decrease) in net assets from
operations.................................. $(185,901) 2,621 (4)
========= ======= =====
</TABLE>
F-10
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, 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>
Investment income:
Income -- Ordinary
Dividends............ $ 6,020 2,603 368 69,103 69,756 3,329
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 9,700 7,471 710 18,770 18,068 733
------- ------ ----- ------- ------ ------
Net investment income
(expense).............. (3,680) (4,868) (342) 50,333 51,688 2,596
------- ------ ----- ------- ------ ------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 68,899 1,355 208 (784) 9,720 (2,508)
Unrealized
appreciation
(depreciation)....... 24,230 2,571 1,977 (90,951) 13,245 1,454
Capital gain distribu-
tions................ -- 12,708 2,263 2,137 12,310 --
------- ------ ----- ------- ------ ------
Net realized and
unrealized gain (loss)
on investments......... 93,129 16,634 4,448 (89,598) 35,275 (1,054)
------- ------ ----- ------- ------ ------
Increase (decrease) in
net assets from
operations............. $89,449 11,766 4,106 (39,265) 86,963 1,542
======= ====== ===== ======= ====== ======
</TABLE>
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
---------------------------------------
Premier
Growth Equity
U.S. Equity Fund Fund
------------------------- -------------
Period from Period from
May 5, 1998 June 11, 1999
Year ended to to
December 31, December 31, December 31,
1999 1998 1999
------------ ------------ -------------
<S> <C>
Investment income:
Income -- Ordinary Dividends... $ 687 90 425
Expenses -- Mortality and
expense risk charges and
administrative expenses
(note 3)...................... 702 39 1,970
------ ---- ------
Net investment income (expense).. (15) 51 (1,545)
------ ---- ------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss)....... 520 89 139
Unrealized appreciation
(depreciation)................ 3,276 243 54,745
Capital gain distributions..... 6,179 199 13,746
------ ---- ------
Net realized and unrealized gain
(loss) on investments........... 9,975 531 68,630
------ ---- ------
Increase (decrease) in net assets
from operations................. $9,960 582 67,085
====== ==== ======
</TABLE>
F-11
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, Continued
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
-----------------------------------------------------------------
Money
Fund Bond Fund/VA Aggressive Growth Fund/VA
-------- -------------------------- -----------------------------
Period
ended
December
11, Year Ended December 31, Year ended December 31,
-------- -------------------------- -----------------------------
1997 1999 1998 1997 1999 1998 1997
-------- -------- ------- ------- --------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
Dividends............ $ 7,779 96,549 30,639 123,712 -- 16,972 13,590
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 1,958 30,625 44,412 21,914 89,368 92,177 80,784
------- -------- ------- ------- --------- --------- -------
Net investment income
(expense)............ 5,821 65,924 13,773 101,798 (89,368) (75,205) (67,194)
------- -------- ------- ------- --------- --------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss) .............. -- (61,516) 140,916 11,410 1,178,701 1,139,675 362,326
Unrealized
appreciation
(depreciation)....... -- (84,560) (22,639) 14,947 3,216,453 (392,601) 69,894
Capital gain distribu-
tions................ -- 9,549 28,282 4,923 -- 171,601 258,219
------- -------- ------- ------- --------- --------- -------
Net realized and
unrealized gain
(loss) on
investments.......... -- (136,527) 146,559 31,280 4,395,154 918,675 690,439
------- -------- ------- ------- --------- --------- -------
Increase (decrease) in
net assets from
operations........... $ 5,821 (70,603) 132,786 133,078 4,305,786 843,470 623,245
======= ======== ======= ======= ========= ========= =======
</TABLE>
<TABLE>
<CAPTION>
Oppenheimer Variable Account Funds
------------------------------------------------------------------------------------
Capital Appreciation Multiple Strategies
Fund/VA High Income Fund/VA Fund/VA
----------------------------- --------------------------- -------------------------
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.... $ 15,085 30,546 137,266 348,986 120,682 392,523 109,789 29,411 108,613
Expenses -- Mortality and
expense risk charges and
administrative expenses
(note 3)....................... 62,566 56,132 39,859 71,383 83,415 56,210 42,535 42,195 36,789
---------- -------- ------- -------- -------- ------- ------- -------- -------
Net investment income
expense)....................... (47,481) (25,586) 97,407 277,603 37,267 336,313 67,254 (12,784) 71,824
---------- -------- ------- -------- -------- ------- ------- -------- -------
Net realized and unrealized gain
(loss) on investments:
Net realized gain (loss) ....... 900,975 779,763 211,799 (31,032) (157,587) 180,406 20,609 353,554 34,009
Unrealized appreciation
(depreciation)................. 646,214 (197,508) 311,259 (77,143) 402 (53,341) 68,454 (372,624) 206,122
Capital gain distributions...... 173,473 351,282 -- -- 147,500 2,806 157,988 166,660 95,618
---------- -------- ------- -------- -------- ------- ------- -------- -------
Net realized and unrealized gain
(loss) on investments.......... 1,720,662 933,537 523,058 (108,175) (9,685) 129,871 247,051 147,590 335,749
---------- -------- ------- -------- -------- ------- ------- -------- -------
Increase (decrease) in net as-
sets from operations........... $1,673,181 907,951 620,465 169,428 27,582 466,184 314,305 134,806 407,573
========== ======== ======= ======== ======== ======= ======= ======== =======
</TABLE>
F-12
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, Continued
<TABLE>
<CAPTION>
Variable Insurance Products Fund
--------------------------------------------------------
Money Market High Income Equity-Income
Portfolio Portfolio 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............ $ 91,625 94,018 241,170 221,548 218,168
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 10,228 15,435 220,388 217,902 186,346
-------- ------- -------- --------- ---------
Net investment income
(expense).............. 81,397 78,583 20,782 3,646 31,822
-------- ------- -------- --------- ---------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... -- 185,532 949,231 1,283,354 1,197,816
Unrealized
appreciation
(depreciation)....... -- (92,552) (762,258) (494,927) 1,016,128
Capital gain distribu-
tions................ -- 11,620 536,798 785,489 1,065,171
-------- ------- -------- --------- ---------
Net realized and
unrealized gain (loss)
on investments......... -- 104,600 723,771 1,573,916 3,279,115
-------- ------- -------- --------- ---------
Increase (decrease) in
net assets from
operations............. $ 81,397 183,183 744,553 1,577,562 3,310,937
======== ======= ======== ========= =========
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance Products Fund (continued)
--------------------------------------------------------------
Growth Overseas
Portfolio 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............ $ 30,736 56,532 56,737 59,843 87,981 101,260
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 187,151 156,899 121,040 58,174 62,196 73,250
---------- --------- --------- --------- -------- --------
Net investment income
(expense).............. (156,415) (100,367) (64,303) 1,669 25,785 28,010
---------- --------- --------- --------- -------- --------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 1,288,523 1,619,202 1,766,746 694,024 (178,639) 801,884
Unrealized
appreciation
(depreciation)....... 1,712,349 667,154 (282,336) 859,657 349,052 (489,713)
Capital gain distribu-
tions................ 1,506,084 1,356,757 258,471 97,639 263,943 405,040
---------- --------- --------- --------- -------- --------
Net realized and
unrealized gain (loss)
on investments......... 4,506,956 3,643,113 1,742,881 1,651,320 434,356 717,211
---------- --------- --------- --------- -------- --------
Increase (decrease) in
net assets from
operations............. $4,350,541 3,542,746 1,678,578 1,652,989 460,141 745,221
========== ========= ========= ========= ======== ========
</TABLE>
F-13
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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............ $338,815 304,810 291,804 49,344 54,962 40,502
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 133,280 131,037 120,291 137,209 110,295 81,691
-------- --------- --------- --------- --------- ---------
Net investment income
(expense).............. 205,535 173,773 171,513 (87,865) (55,333) (41,189)
-------- --------- --------- --------- --------- ---------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 259,916 252,067 187,349 971,552 1,254,204 268,831
Unrealized
appreciation
(depreciation)....... (9,876) (67,659) 534,401 885,621 648,485 823,917
Capital gain distribu-
tions................ 431,219 914,428 714,417 361,853 403,057 109,504
-------- --------- --------- --------- --------- ---------
Net realized and
unrealized gain (loss)
on investments......... 681,259 1,098,836 1,436,167 2,219,026 2,305,746 1,202,252
-------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. $886,794 1,272,609 1,607,680 2,131,161 2,250,413 1,161,063
======== ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Variable Insurance Product Fund III
--------------------------------------------------------------
Growth Opportunities
Growth & Income Portfolio Portfolio
------------------------------- ------------------------------
Period from Period from
Year ended May 16, Year ended May 16,
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............ $ 6,549 -- -- 6,596 4,014 --
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 22,680 10,395 1,712 9,994 5,891 1,910
-------- ------- ------ ------- ------- ------
Net investment income
(expense).............. (16,131) (10,395) (1,712) (3,398) (1,877) (1,910)
-------- ------- ------ ------- ------- ------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 160,560 100,071 6,219 32,368 15,522 876
Unrealized
appreciation
(depreciation)....... (48,360) 91,779 11,314 (18,063) 75,120 39,235
Capital gain distribu-
tions................ 13,296 1,681 -- 12,249 14,232 --
-------- ------- ------ ------- ------- ------
Net realized and
unrealized gain (loss)
on investments......... 125,496 193,531 17,533 26,554 104,874 40,111
-------- ------- ------ ------- ------- ------
Increase (decrease) in
net assets from
operations............. $109,365 183,136 15,821 23,156 102,997 38,201
======== ======= ====== ======= ======= ======
</TABLE>
F-14
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, Continued
<TABLE>
<CAPTION>
Federated Insurance Series
--------------------------------------------------
American Leaders High Income Bond Fund
Fund II II
------------------------ ------------------------
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................ $ 9,786 2,959 909 84,197 48,396 42,534
Expenses -- Mortality and
expense risk charges and
administrative expenses
(note 3)................. 14,056 11,035 3,437 17,569 17,967 10,943
-------- ------ ------ ------- ------- ------
Net investment income
(expense).................. (4,270) (8,076) (2,528) 66,628 30,429 31,591
-------- ------ ------ ------- ------- ------
Net realized and unrealized
gain on investments:
Net realized gain (loss).. 19,046 (4,077) 11,788 (82,162) 85,989 5,827
Unrealized appreciation
(depreciation)........... (65,306) 58,884 53,148 543 (90,012) 55,167
Capital gain distribu-
tions.................... 98,945 39,312 571 7,321 13,650 2,683
-------- ------ ------ ------- ------- ------
Net realized and unrealized
gain (loss) on
investments................ 52,685 94,119 65,507 (74,298) 9,627 63,677
-------- ------ ------ ------- ------- ------
Increase (decrease) in net
assets from operations..... $ 48,415 86,043 62,979 (7,670) 40,056 95,268
======== ====== ====== ======= ======= ======
</TABLE>
<TABLE>
<CAPTION>
Federated Insurance
Series (continued)
------------------------
Utility Fund II
------------------------
Year ended
December 31,
------------------------
1999 1998 1997
-------- ------ ------
<S> <C> <C> <C>
Investment income:
Income -- Ordinary Dividends........................ $ 13,222 4,053 6,464
Expenses -- Mortality and expense risk charges and
administrative expenses (note 3)................... 6,330 6,146 3,837
-------- ------ ------
Net investment income (expense)....................... 6,892 (2,093) 2,627
-------- ------ ------
Net realized and unrealized gain on investments:
Net realized gain (loss)............................ 10,756 25,956 11,484
Unrealized appreciation (depreciation).............. (42,270) 8,478 50,092
Capital gain distributions.......................... 25,666 24,895 5,733
-------- ------ ------
Net realized and unrealized gain (loss) on
investments.......................................... (5,848) 59,329 67,309
-------- ------ ------
Increase (decrease) in net assets from operations..... $ 1,044 57,236 69,936
======== ====== ======
</TABLE>
F-15
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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............ $ -- -- -- 4,197 7,214 5,656
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 28,322 21,533 18,711 57,600 31,716 21,426
-------- -------- ------- --------- --------- -------
Net investment income
(expense).............. (28,322) (21,533) (18,711) (53,403) (24,502) (15,770)
-------- -------- ------- --------- --------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 263,133 (361,335) 155,266 367,836 342,335 121,886
Unrealized
appreciation
(depreciation)....... 286,111 411,856 (23,084) 477,546 332,102 195,886
Capital gain distribu-
tions................ 250,852 207,517 42,941 415,458 353,476 10,056
-------- -------- ------- --------- --------- -------
Net realized and
unrealized gain (loss)
on investments......... 800,096 258,038 175,123 1,260,840 1,027,913 327,828
-------- -------- ------- --------- --------- -------
Increase (decrease) in
net assets from
operations............. $771,774 236,505 156,412 1,207,437 1,003,411 312,058
======== ======== ======= ========= ========= =======
</TABLE>
<TABLE>
<CAPTION>
PBHG Insurance Series Fund, Inc.
------------------------------------------------------------
PBHG Large Cap Growth
Portfolio PBHG Growth II Portfolio
------------------------------ -----------------------------
Period from Period from
Year ended July 22, Year ended May 22, 1997
December 31, 1997 to December 31, 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 and
administrative
expenses (note 3).... 1,948 1,340 205 3,631 1,328 540
-------- ------ ----- ------- ------ -----
Net investment income
(expense).............. (1,948) (1,340) (205) (3,631) (1,328) (540)
-------- ------ ----- ------- ------ -----
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 29,261 12,396 (1) 127,082 36,908 1,296
Unrealized
appreciation
(depreciation)....... 99,164 11,365 656 66,595 15,978 (846)
Capital gain distribu-
tions................ -- -- -- -- -- --
-------- ------ ----- ------- ------ -----
Net realized and
unrealized gain (loss)
on investments......... 128,425 23,761 655 193,677 52,886 450
-------- ------ ----- ------- ------ -----
Increase (decrease) in
net assets from
operations............. $126,477 22,421 450 190,046 51,558 (90)
======== ====== ===== ======= ====== =====
</TABLE>
F-16
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, 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>
Investment income:
Income -- Ordinary Dividends.......... $ 34,494 36,455 --
Expenses -- Mortality and expense risk
charges and administrative expenses
(note 3)............................. 24,999 6,443 9,747
--------- ------- -------
Net investment income (expense)......... 9,495 30,012 (9,747)
--------- ------- -------
Net realized and unrealized gain (loss)
on investments:
Net realized gain (loss).............. 315,380 (3,318) 150,610
Unrealized appreciation
(depreciation)....................... (146,827) (1,629) (55,310)
Capital gain distributions............ 88,699 -- 64,488
--------- ------- -------
Net realized and unrealized gain (loss)
on investments......................... 257,252 (4,947) 159,788
--------- ------- -------
Increase (decrease) in net assets from
operations............................. $ 266,747 25,065 150,041
========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Series
----------------------------------------------------------
Aggressive Growth
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............ $ 41,689 -- -- 17,258 186,177 58,424
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 66,736 31,583 28,915 99,371 67,687 49,779
---------- ------- ------- --------- --------- -------
Net investment income
(expense).............. (25,047) (31,583) (28,915) (82,113) 118,490 8,645
---------- ------- ------- --------- --------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 1,877,887 678,326 192,226 732,403 870,857 243,734
Unrealized
appreciation
(depreciation)....... 3,056,764 307,545 99,444 2,126,069 434,354 376,858
Capital gain
distributions........ 70,984 -- -- 38,444 150,149 54,303
---------- ------- ------- --------- --------- -------
Net realized and
unrealized gain (loss)
on investments......... 5,005,635 985,871 291,670 2,896,916 1,455,360 674,895
---------- ------- ------- --------- --------- -------
Increase (decrease) in
net assets from
operations............. $4,980,588 954,288 262,755 2,814,803 1,573,850 683,540
========== ======= ======= ========= ========= =======
</TABLE>
F-17
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, Continued
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
------------------------------------------------------------
Worldwide Growth Portfolio Balanced 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............ $ 22,883 283,470 77,270 134,118 156,510 52,809
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 173,236 132,642 91,422 77,430 53,807 15,089
---------- --------- --------- --------- --------- -------
Net investment income
(expense).............. (150,353) 150,828 (14,152) 56,688 102,703 37,720
---------- --------- --------- --------- --------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 1,684,622 1,535,984 457,649 397,981 75,042 16,368
Unrealized
appreciation
(depreciation)....... 5,709,994 417,036 666,571 859,559 1,021,865 172,861
Capital gain distribu-
tions................ -- 114,875 36,750 -- 26,713 1,466
---------- --------- --------- --------- --------- -------
Net realized and
unrealized gain (loss)
on investments......... 7,394,616 2,067,895 1,160,970 1,257,540 1,123,620 190,695
---------- --------- --------- --------- --------- -------
Increase (decrease) in
net assets from
operations............. $7,244,263 2,218,723 1,146,818 1,314,228 1,226,323 228,415
========== ========= ========= ========= ========= =======
</TABLE>
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
-----------------------------------------------------
International Growth
Flexible Income Portfolio 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............ $ 23,898 22,361 11,966 5,822 54,292 11,016
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 5,169 4,450 2,246 34,028 31,407 19,234
--------- ------- ------- --------- ------- -------
Net investment income
(expense).............. 18,729 17,911 9,720 (28,206) 22,885 (8,218)
--------- ------- ------- --------- ------- -------
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 2,310 2,524 3,107 452,801 171,620 145,208
Unrealized
appreciation
(depreciation)....... (20,012) 3,399 4,489 1,288,333 158,124 45,943
Capital gain distribu-
tions................ 1,152 1,021 76 -- 7,791 2,276
--------- ------- ------- --------- ------- -------
Net realized and
unrealized gain (loss)
on investments......... (16,550) 6,944 7,672 1,741,134 337,535 193,427
--------- ------- ------- --------- ------- -------
Increase (decrease) in
net assets from
operations............. $ 2,179 24,855 17,392 1,712,928 360,420 185,209
========= ======= ======= ========= ======= =======
</TABLE>
F-18
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Operations, Continued
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
---------------------------------
Capital Appreciation Portfolio
---------------------------------
Period from
Year ended May 22,
December 31, 1997 to
------------------- December 31,
1999 1998 1997
---------- ------- ------------
<S> <C> <C> <C>
Investment income:
Income -- Ordinary Dividends............... $ 935 555 37
Expenses -- Mortality and expense risk
charges and administrative expenses (note
3)........................................ 32,166 6,271 112
---------- ------- -------
Net investment income (expense).............. (31,231) (5,716) (75)
---------- ------- -------
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss)................... 435,959 225,641 (7,519)
Unrealized appreciation (depreciation)..... 837,570 56,754 (582)
Capital gain distributions................. 10,754 -- --
---------- ------- -------
Net realized and unrealized gain (loss) on
investments................................. 1,284,283 282,395 (8,101)
---------- ------- -------
Increase (decrease) in net assets from
operations.................................. $1,253,052 276,679 (8,176)
========== ======= =======
</TABLE>
<TABLE>
<CAPTION>
Goldman Sachs Salomon Brothers
Variable Insurance Trust Variable Series Funds Inc.
--------------------------------------------------- -------------------------------
Growth and Income Mid Cap Value Strategic Bond Total Return
Fund Fund Fund Fund
------------------------- ------------------------- --------------- ---------------
Period from Period from
October 6, June 25, Period from Period from
Year ended 1998 to Year ended 1998 to March 19, 1999 July 14, 1999
December 31, December 31, December 31, December 31, to December 31, to December 31,
1999 1998 1999 1998 1999 1999
------------ ------------ ------------ ------------ --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Income -- Ordinary
Dividends............ $ 766 48 1,901 662 5,114 154
Expenses -- Mortality
and expense risk
charges and
administrative
expenses (note 3).... 648 11 4,901 237 6,264 39
------- ---- ------- ---- ------- -----
Net investment income
(expense).............. 118 37 (3,000) 425 (1,150) 115
------- ---- ------- ---- ------- -----
Net realized and
unrealized gain (loss)
on investments:
Net realized gain
(loss)............... 573 58 84,871 (16) (14,814) (8)
Unrealized
appreciation
(depreciation)....... (2,840) 49 (27,108) 196 (4,324) (424)
Capital gain distribu-
tions................ -- -- -- -- -- --
------- ---- ------- ---- ------- -----
Net realized and
unrealized gain (loss)
on investments......... (2,267) 107 57,763 180 (19,138) (432)
------- ---- ------- ---- ------- -----
Increase (decrease) in
net assets from
operations............. $(2,149) 144 54,763 605 (20,288) (317)
======= ==== ======= ==== ======= =====
</TABLE>
See accompanying notes to financial statements.
F-19
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
GE Investments Funds, Inc.
----------------------------------------------
S&P 500 Government
Index Securities
Fund Fund
-------------------------------- ------------
Year ended December 31, Period ended
-------------------------------- December 11,
1999 1998 1997 1997
---------- --------- --------- ------------
<S> <C> <C> <C> <C>
Increase (decrease) in net
assets
From operations:
Net investment income
(expense).................... $ (39,597) (11,446) 8,122 (9,821)
Net realized gain (loss)...... 547,538 398,018 125,533 2,596
Unrealized appreciation
(depreciation) on
investments.................. 714,039 497,472 337,547 46,607
Capital gain distributions.... 79,903 180,554 45,068 --
---------- --------- --------- --------
Increase (decrease) in net
assets from operations......... 1,301,883 1,064,598 516,270 39,382
---------- --------- --------- --------
From capital transactions:
Net premiums.................. 209,250 364,101 29,621 13,143
Loan interest................. (3,621) (1,758) (472) (455)
Transfers (to) from the
general account of GE Life &
Annuity:
Death benefits.............. -- (26,898) (1,802) --
Surrenders.................. (571,204) (122,586) (50,594) (262,974)
Loans....................... (14,382) (8,955) (10,019) (23,924)
Cost of insurance and
administrative expense
(note 3)................... (76,602) (54,690) (24,852) (8,334)
Transfer gain (loss) and
transfer fees.............. (2,154) 190,048 (2,909) (3,207)
Transfers (to) from the
Guarantee Account (note 1)... 1,200 156,285 33,241 288
Interfund transfers........... 1,450,154 1,318,239 1,154,053 (529,174)
---------- --------- --------- --------
Increase (decrease) in net
assets from capital
transactions................... 992,641 1,813,786 1,126,267 (814,637)
---------- --------- --------- --------
Increase (decrease) in net
assets....................... 2,294,524 2,878,384 1,642,537 (775,255)
Net assets at beginning of
year........................... 6,079,523 3,201,139 1,558,602 775,255
---------- --------- --------- --------
Net assets at end of year....... $8,374,047 6,079,523 3,201,139 --
========== ========= ========= ========
</TABLE>
F-20
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
---------------------------------------------------------------------
Money Market Total Return
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)............ $ 492,078 502,420 389,607 11,546 68,818 23,177
Net realized gain
(loss)............... -- (2,104) (256,503) 34,289 4,509 1,710
Unrealized
appreciation
(depreciation) on
investments.......... -- 2,104 287,655 110,595 183,805 26,729
Capital gain
distributions........ -- -- -- 42,374 -- 185,237
----------- ---------- ----------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 492,078 502,420 420,759 198,804 257,132 236,853
----------- ---------- ----------- --------- --------- ---------
From capital
transactions:
Net premiums.......... 7,275,148 10,323,239 14,800,378 9,104 13,446 37,415
Loan interest......... 33,105 15,680 25,356 (740) (107) 77
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- (9,663) -- -- -- (122,969)
Surrenders.......... (4,064,746) (492,391) (81,503) (134,715) (163,264) (9,555)
Loans............... (733,748) (1,044,167) (259,694) (5,353) (33,631) (31,550)
Cost of insurance
and administrative
expense (note 3)... (151,555) (149,692) (124,687) (18,760) (17,774) (16,232)
Transfer gain (loss)
and transfer fees.... (55,274) 3,729 (135,353) 1,266 643 (3,467)
Transfers (to) from
the Guarantee Account
(note 1)............. -- (57,398) (32,069) 500 10,426 45,496
Interfund transfers... 1,796,890 (9,507,257) (13,250,370) (74,939) 52,057 134,091
----------- ---------- ----------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... 4,099,820 (917,920) 942,058 (223,637) (138,204) 33,306
----------- ---------- ----------- --------- --------- ---------
Increase (decrease) in
net assets........... 4,591,898 (415,500) 1,362,817 (24,833) 118,928 270,159
Net assets at beginning
of year................ 10,838,824 11,254,324 9,891,507 1,787,552 1,668,624 1,398,465
----------- ---------- ----------- --------- --------- ---------
Net assets at end of
year................... $15,430,722 10,838,824 11,254,324 1,762,719 1,787,552 1,668,624
=========== ========== =========== ========= ========= =========
</TABLE>
F-21
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
-----------------------------------------------------------
International Real Estate
Equity Fund Securities 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)............ $ (3,474) 12,064 (4,306) 25,102 16,447 28,577
Net realized gain
(loss)............... 166 1,173 146,386 (51,641) (76,333) 142,744
Unrealized
appreciation
(depreciation) on
investments.......... 72,780 5,854 (6,150) 15,871 (155,043) (97,672)
Capital gain
distributions........ 26,382 -- 79,345 1,796 26,116 72,382
--------- ------- -------- ------- --------- ---------
Increase (decrease) in
net assets from
operations............. 95,854 19,091 215,275 (8,872) (188,813) 146,031
--------- ------- -------- ------- --------- ---------
From capital
transactions:
Net premiums.......... -- 1,056 1,056 9,200 41,531 62,904
Loan interest......... (6) (50) (12) (1,009) (188) --
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- -- -- --
Surrenders.......... -- -- -- (35,918) (2,915) --
Loans............... -- 3,954 1,860 (4,066) (15,423) (16,740)
Cost of insurance
and administrative
expense (note 3)... (3,710) (3,955) (9,446) (8,475) (11,347) (9,178)
Transfer gain (loss)
and transfer fees.. (5,641) 26,258 (16,723) 2,893 1,201 (5,456)
Transfers (to) from
the Guarantee Account
(note 1)............. -- 25,276 -- 7 35,000 3,269
Interfund transfers... 23,090 (28,632) (727,513) (46,114) (222,532) 661,463
--------- ------- -------- ------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... 13,733 23,907 (750,778) (83,482) (174,673) 696,262
--------- ------- -------- ------- --------- ---------
Increase (decrease) in
net assets........... 109,587 42,998 (535,503) (92,354) (363,486) 842,293
Net assets at beginning
of year................ 300,239 257,241 792,744 706,841 1,070,327 228,034
--------- ------- -------- ------- --------- ---------
Net assets at end of
year................... $ 409,826 300,239 257,241 614,487 706,841 1,070,327
========= ======= ======== ======= ========= =========
</TABLE>
F-22
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
---------------------------------------------------------------
Global Income Value Equity
Fund Fund
-------------------------------- ------------------------------
Period from Period from
Year ended September 15, 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>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............ $ (10,517) 1,255 610 (3,680) (4,868) (342)
Net realized gain
(loss)............... (174,205) 11 -- 68,899 1,355 208
Unrealized
appreciation
(depreciation) on
investments.......... (1,207) 1,291 (669) 24,230 2,571 1,977
Capital gain
distributions........ 28 64 55 -- 12,708 2,263
--------- ------ ------ ------- ------- -------
Increase (decrease) in
net assets from
operations............. (185,901) 2,621 (4) 89,449 11,766 4,106
--------- ------ ------ ------- ------- -------
From capital
transactions:
Net premiums.......... 3,403 -- -- 3,802 19,404 4,596
Loan interest......... 227 -- -- (1,028) (1,009) --
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- -- -- --
Surrenders.......... -- -- -- -- -- --
Loans............... 15,465 -- -- (6,939) (1,441) --
Cost of insurance
and administrative
expense (note 3)... (4,487) (264) (18) (8,194) (5,910) (615)
Transfer gain (loss)
and transfer fees.. 329 (3) -- (1,865) (39,597) 360
Transfers (to) from
the Guarantee Account
(note 1)............. -- -- -- 29,405 -- --
Interfund transfers... 170,322 12,432 13,721 118,008 297,789 243,259
--------- ------ ------ ------- ------- -------
Increase (decrease) in
net assets from capital
transactions........... 185,259 12,165 13,703 133,189 269,236 247,600
--------- ------ ------ ------- ------- -------
Increase (decrease) in
net assets........... (642) 14,786 13,699 222,638 281,002 251,706
Net assets at beginning
of year................ 28,485 13,699 -- 532,708 251,706 --
--------- ------ ------ ------- ------- -------
Net assets at end of
year................... $ 27,843 28,485 13,699 755,346 532,708 251,706
========= ====== ====== ======= ======= =======
</TABLE>
F-23
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
--------------------------------------------------------------------------------
Premier
Growth Equity
Income Fund U.S. Equity Fund Fund
----------------------------------- ---------------------------- ---------------
Period from
Year ended December 12, Period from Period from
December 31, 1997 to Year ended May 5, 1998 June 11, 1999
--------------------- December 31, December 31, to December 31, to December 31,
1999 1998 1997 1999 1998 1999
---------- --------- ------------ ------------ --------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............ $ 50,333 51,688 2,596 (15) 51 (1,545)
Net realized gain
(loss)............... (784) 9,720 (2,508) 520 89 139
Unrealized
appreciation
(depreciation) on
investments.......... (90,951) 13,245 1,454 3,276 243 54,745
Capital gain
distributions........ 2,137 12,310 -- 6,179 199 13,746
---------- --------- --------- ------- ------ -------
Increase (decrease) in
net assets from
operations............. (39,265) 86,963 1,542 9,960 582 67,085
---------- --------- --------- ------- ------ -------
From capital
transactions:
Net premiums.......... 16,162 -- -- -- -- --
Loan interest......... (4,763) (3,764) -- -- -- --
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- -- -- --
Surrenders.......... (87,362) (2,594) -- -- -- --
Loans............... (4,459) (21,862) (2,396) -- -- (300)
Cost of insurance
and administrative
expense (note 3)... (15,183) (15,101) (742) (540) (30) (2,033)
Transfer gain (loss)
and
transfer fees...... (139) (703) (202) (188) (108) 3,988
Transfers (to) from
the Guarantee Account
(note 1)............. 20,109 7,872 -- -- -- --
Interfund transfers... (27,799) 196,041 1,221,995 109,461 9,718 393,060
---------- --------- --------- ------- ------ -------
Increase (decrease) in
net assets from capital
transactions........... (103,434) 159,889 1,218,655 108,733 9,580 394,715
---------- --------- --------- ------- ------ -------
Increase (decrease) in
net assets........... (142,699) 246,852 1,220,197 118,693 10,162 461,800
Net assets at beginning
of year................ 1,467,049 1,220,197 -- 10,162 -- --
---------- --------- --------- ------- ------ -------
Net assets at end of
year................... $1,324,350 1,467,049 1,220,197 128,855 10,162 461,800
========== ========= ========= ======= ====== =======
</TABLE>
F-24
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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).................... $ 5,821 65,924 (13,773) 101,798
Net realized gain (loss)...... -- (61,516) 140,916 11,410
Unrealized appreciation
(depreciation) on
investments.................. -- (84,560) (22,639) 14,947
Capital gain distributions.... -- 9,549 28,282 4,923
--------- --------- ---------- ---------
Increase (decrease) in net
assets from operations......... 5,821 (70,603) 132,786 133,078
--------- --------- ---------- ---------
From capital transactions:
Net premiums.................. -- 21,642 63,953 12,401
Loan interest................. -- 3,160 1,867 224
Transfers (to) from the
general account of GE Life &
Annuity:
Death benefits.............. -- -- -- --
Surrenders.................. -- (35,960) (80,793) --
Loans....................... -- (30,925) (717) (20,518)
Cost of insurance and
administrative expense
(note 3)................... (1,618) (21,619) (29,054) (17,321)
Transfer gain (loss) and
transfer fees.............. 26 23,758 (48,553) 4,175
Transfers (to) from the
Guarantee Account (note 1)... -- 6,580 8,443 10,164
Interfund transfers........... (160,456) (761,210) (1,102,223) 1,749,977
--------- --------- ---------- ---------
Increase (decrease) in net
assets from capital
transactions................... (162,048) (794,574) (1,187,077) 1,739,102
--------- --------- ---------- ---------
Increase (decrease) in net
assets....................... (156,227) (865,177) (1,054,291) 1,872,180
Net assets at beginning of
year........................... 156,227 2,473,605 3,527,896 1,655,716
--------- --------- ---------- ---------
Net assets at end of year....... $ -- 1,608,428 2,473,605 3,527,896
========= ========= ========== =========
</TABLE>
F-25
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<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> <C> <C> <C> <C>
Increase (decrease) in net
assets
From operations:
Net investment income
(expense)................ $ (89,368) (75,205) (67,194) (47,481) (25,586) 97,407
Net realized gain (loss).. 1,178,701 1,139,675 362,326 900,975 779,763 211,799
Unrealized appreciation
(depreciation) on
investments.............. 3,216,453 (392,601) 69,894 646,214 (197,508) 311,259
Capital gain
distributions............ -- 171,601 258,219 173,473 351,282 --
----------- ---------- --------- ---------- --------- ---------
Increase (decrease) in net
assets from operations..... 4,305,786 843,470 623,245 1,673,181 907,951 620,465
----------- ---------- --------- ---------- --------- ---------
From capital transactions:
Net premiums.............. 54,210 106,960 160,331 34,750 130,707 136,857
Loan interest............. (5,149) 7,156 (478) (2,980) (2,818) (1,570)
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits.......... (22,618) -- -- -- -- --
Surrenders.............. (421,155) (235,363) (5,632) (638,691) (143,689) --
Loans................... (124,739) (644,066) (76,259) (159,747) (119,579) (52,908)
Cost of insurance and
administrative expense
(note 3)............... (68,853) (81,387) (69,581) (44,705) (46,695) (33,074)
Transfer gain (loss) and
transfer fees.......... (53,960) (865,659) (10,950) (247,728) 130,682 5,703
Transfers from the
Guarantee Account (note
1)....................... 8,140 7,563 86,490 7 58,430 67,111
Interfund transfers....... (1,031,745) 515,285 786,921 (2,684,688) 2,177,306 1,239,168
----------- ---------- --------- ---------- --------- ---------
Increase (decrease) in net
assets from capital
transactions............... (1,665,869) (1,189,511) 870,842 (3,743,782) 2,184,344 1,361,287
----------- ---------- --------- ---------- --------- ---------
Increase (decrease) in net
assets................... 2,639,917 (346,041) 1,494,087 (2,070,601) 3,092,295 1,981,752
Net assets at beginning of
year....................... 6,498,684 6,844,725 5,350,638 6,988,817 3,896,522 1,914,770
----------- ---------- --------- ---------- --------- ---------
Net assets at end of year... $ 9,138,601 6,498,684 6,844,725 4,918,216 6,988,817 3,896,522
=========== ========== ========= ========== ========= =========
</TABLE>
F-26
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<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>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............ $ 277,603 37,267 336,313 67,254 (12,784) 71,824
Net realized gain
(loss)............... (31,032) (157,587) 180,406 20,609 353,554 34,009
Unrealized
appreciation
(depreciation) on
investments.......... (77,143) 402 (53,341) 68,454 (372,624) 206,122
Capital gain
distributions........ -- 147,500 2,806 157,988 166,660 95,618
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 169,428 27,582 466,184 314,305 134,806 407,573
----------- --------- --------- --------- --------- ---------
From capital
transactions:
Net premiums.......... 6,954 11,471 94,743 37,781 1,000 12,358
Loan interest......... (2,114) (1,733) (628) (208) (877) (722)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- (45,936) -- -- (18,545) (2,000)
Surrenders.......... (96,824) (576,832) (9,092) (189,005) (140,865) --
Loans............... (118,625) (34,516) (29,617) (10,720) (50,344) 8,746
Cost of insurance
and administrative
expense (note 3)... (52,357) (62,108) (45,518) (31,574) (31,968) (29,942)
Transfer gain (loss)
and transfer fees.. 9,892 (53,899) 32,059 1,885 6,332 356
Transfers from the
Guarantee Account
(note 1)............. 443 28,238 -- 943 29,334 23,966
Interfund transfers... (1,558,865) 191,267 2,226,116 (254,274) 108,424 447,254
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... (1,811,496) (544,048) 2,268,063 (445,172) (97,509) 460,016
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets........... (1,642,068) (516,466) 2,734,247 (130,867) 37,297 867,589
Net assets at beginning
of year................ 6,161,255 6,677,721 3,943,474 3,248,322 3,211,025 2,343,436
----------- --------- --------- --------- --------- ---------
Net assets at end of
year................... $ 4,519,187 6,161,255 6,677,721 3,117,455 3,248,322 3,211,025
=========== ========= ========= ========= ========= =========
</TABLE>
F-27
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, 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>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............ $ 81,397 78,583 20,782 3,646 31,822
Net realized gain
(loss)............... -- 185,532 949,231 1,283,354 1,197,816
Unrealized
appreciation
(depreciation) on
investments.......... -- (92,552) (762,258) (494,927) 1,016,128
Capital gain
distributions........ -- 11,620 536,798 785,489 1,065,171
----------- ---------- ---------- ---------- ----------
Increase (decrease) in
net assets from
operations............. 81,397 183,183 744,553 1,577,562 3,310,937
----------- ---------- ---------- ---------- ----------
From capital
transactions:
Net premiums.......... -- -- 30,709 146,903 215,369
Loan interest......... (8,013) 6 (12,986) (10,898) (5,772)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- (61,020) (18,249)
Surrenders.......... (11,729) (163,901) (531,791) (222,133) (71,914)
Loans............... (17,933) (6,459) (229,126) (402,392) (121,271)
Cost of insurance
and administrative
expense............ (8,075) (11,738) (153,739) (167,638) (151,529)
Transfer gain (loss)
and transfer fees.. (66,375) (44,309) 7,118 15,304 58,911
Transfers from the
Guarantee Account
(note 1)............. -- -- (128,390) 122,727 112,723
Interfund transfers... (1,079,728) (1,280,202) (1,383,061) (202,161) 311,215
----------- ---------- ---------- ---------- ----------
Increase (decrease) in
net assets from capital
transactions........... (1,191,853) (1,506,603) (2,401,266) (781,308) 329,483
----------- ---------- ---------- ---------- ----------
Increase (decrease) in
net assets........... (1,110,456) (1,323,420) (1,656,713) 796,254 3,640,420
Net assets at beginning
of year................ 1,110,456 1,323,420 16,825,933 16,029,679 12,389,259
----------- ---------- ---------- ---------- ----------
Net assets at end of
year................... $ -- -- 15,169,220 16,825,933 16,029,679
=========== ========== ========== ========== ==========
</TABLE>
F-28
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<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)............ $ (156,415) (100,367) (64,303) 1,669 25,785 28,010
Net realized gain
(loss)............... 1,288,523 1,619,202 1,766,746 694,024 (178,639) 801,884
Unrealized
appreciation
(depreciation) on
investments.......... 1,712,349 667,154 (282,336) 859,657 349,052 (489,713)
Capital gain
distributions........ 1,506,084 1,356,757 258,471 97,639 263,943 405,040
----------- ---------- ---------- ---------- --------- ----------
Increase (decrease) in
net assets from
operations............. 4,350,541 3,542,746 1,678,578 1,652,989 460,141 745,221
----------- ---------- ---------- ---------- --------- ----------
From capital
transactions:
Net premiums.......... 161,347 50,433 78,875 18,135 19,010 12,810
Loan interest......... (16,324) (17,111) (3,060) (2,376) (1,529) (2,436)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- (24,255) (1,634) (21,324) (30,475) --
Surrenders.......... (1,385,411) (572,105) (28,946) (191,090) (214,745) (26,126)
Loans............... (164,276) (532,091) (153,343) (107,707) (93,248) (140,934)
Cost of insurance
and administrative
expense............ (133,989) (123,718) (99,653) (40,060) (47,188) (59,162)
Transfer gain (loss)
and transfer fees.. (48,212) 177,115 26,694 (29,352) 66,028 (12,801)
Transfers from the
Guarantee Account
(note 1)............. 5,600 100,312 44,630 443 (8,627) 61,472
Interfund transfers... (452,607) 463,637 44,400 (1,559,209) 294,585 (1,392,016)
----------- ---------- ---------- ---------- --------- ----------
Increase (decrease) in
net assets from capital
transactions........... (2,033,872) (477,783) (92,037) (1,932,540) (16,189) (1,559,193)
----------- ---------- ---------- ---------- --------- ----------
Increase (decrease) in
net assets........... 2,316,669 3,064,963 1,586,541 (279,551) 443,952 (813,972)
Net assets at beginning
of year................ 13,457,515 10,392,552 8,806,011 5,006,524 4,562,572 5,376,544
----------- ---------- ---------- ---------- --------- ----------
Net assets at end of
year................... $15,774,184 13,457,515 10,392,552 4,726,973 5,006,524 4,562,572
=========== ========== ========== ========== ========= ==========
</TABLE>
F-29
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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)............ $ 205,535 173,773 171,513 (87,865) (55,333) (41,189)
Net realized gain
(loss)............... 259,916 252,067 187,349 971,552 1,254,204 268,831
Unrealized
appreciation
(depreciation) on
investments.......... (9,876) (67,659) 534,401 885,621 648,485 823,917
Capital gain
distributions........ 431,219 914,428 714,417 361,853 403,057 109,504
----------- ---------- --------- ---------- ---------- ---------
Increase (decrease) in
net assets from
operations............. 886,794 1,272,609 1,607,680 2,131,161 2,250,413 1,161,063
----------- ---------- --------- ---------- ---------- ---------
From capital
transactions:
Net premiums.......... 2,300 2,300 98,687 71,587 177,753 171,916
Loan interest......... (8,302) (7,000) (4,946) (8,628) (6,910) (3,288)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- (41,112) (149,074) (23,810) (24,991) (1,797)
Surrenders.......... (786,658) (325,417) (8,956) (549,804) (22,516) (9,456)
Loans............... (58,273) (241,371) (97,092) (153,985) (85,784) (118,554)
Cost of insurance
and administrative
expense (note 3)... (98,577) (101,341) (98,131) (102,249) (94,295) (72,675)
Transfer gain (loss)
and transfer fees.. (47,936) (13,045) 397 (21,586) 59,824 34,177
Transfers (to) from
Guarantee Account
(note 1)............. 38,441 69,851 33,707 6,587 84,180 150,028
Interfund transfers... (748,397) 156,323 (59,803) (759,216) 989,747 1,827,255
----------- ---------- --------- ---------- ---------- ---------
Increase (decrease) in
net assets from capital
transactions........... (1,707,402) (500,812) (285,211) (1,541,104) 1,077,008 1,977,606
----------- ---------- --------- ---------- ---------- ---------
Increase (decrease) in
net assets........... (820,608) 771,797 1,322,469 590,057 3,327,421 3,138,669
Net assets at beginning
of year................ 10,347,930 9,576,133 8,253,664 11,177,224 7,849,803 4,711,134
----------- ---------- --------- ---------- ---------- ---------
Net assets at end of
year................... $ 9,527,322 10,347,930 9,576,133 11,767,281 11,177,224 7,849,803
=========== ========== ========= ========== ========== =========
</TABLE>
F-30
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Variable Insurance Products Fund III
------------------------------------------------------------------
Growth Opportunities
Growth & Income Portfolio Portfolio
----------------------------------- ------------------------------
Period from Period from
Year ended May 16, 1997 Year ended May 16, 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)............ $ (16,131) (10,395) (1,712) (3,398) (1,877) (1,910)
Net realized gain
(loss)............... 160,560 100,071 6,219 32,368 15,522 876
Unrealized
appreciation
(depreciation) on
investments.......... (48,360) 91,779 11,314 (18,063) 75,120 39,235
Capital gain
distributions........ 13,296 1,681 -- 12,249 14,232 --
---------- --------- ------- ------- ------- -------
Increase (decrease) in
net assets from
operations............. 109,365 183,136 15,821 23,156 102,997 38,201
---------- --------- ------- ------- ------- -------
From capital
transactions:
Net premiums.......... 11,807 23,295 12,486 589 39,535 18,354
Loan interest......... (19) (393) -- (95) (134) --
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- -- -- --
Surrenders.......... (33,425) -- -- (17,405) -- --
Loans............... (9,320) (3,183) -- (979) -- --
Cost of insurance
and administrative
expense (note 3)... (15,670) (7,686) (1,616) (8,389) (5,140) (1,627)
Transfer gain (loss)
and transfer fees.. 43,657 28,249 10,283 (7) 1,640 (20)
Transfers (to) from
Guarantee Account
(note 1)............. 10,278 13,857 -- -- 8,711 2,963
Interfund transfers... 392,746 357,477 373,471 265,913 145,247 293,576
---------- --------- ------- ------- ------- -------
Increase (decrease) in
net assets from capital
transactions........... 400,054 411,616 394,624 239,627 189,859 313,246
---------- --------- ------- ------- ------- -------
Increase (decrease) in
net assets........... 509,419 594,752 410,445 262,783 292,856 351,447
Net assets at beginning
of year................ 1,005,197 410,445 -- 644,303 351,447 --
---------- --------- ------- ------- ------- -------
Net assets at end of
year................... $1,514,616 1,005,197 410,445 907,086 644,303 351,447
========== ========= ======= ======= ======= =======
</TABLE>
F-31
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Federated Insurance Series
----------------------------------------------------------------
American High Income
Leaders Fund II Bond Fund II
------------------------------ --------------------------------
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)............ $ (4,270) (8,076) (2,528) 66,628 30,429 31,591
Net realized gain
(loss)............... 19,046 (4,077) 11,788 (82,162) 85,989 5,827
Unrealized
appreciation
(depreciation) on
investments.......... (65,306) 58,884 53,148 543 (90,012) 55,167
Capital gain
distributions........ 98,945 39,312 571 7,321 13,650 2,683
---------- --------- ------- --------- ---------- ---------
Increase (decrease) in
net assets from
operations............. 48,415 86,043 62,979 (7,670) 40,056 95,268
---------- --------- ------- --------- ---------- ---------
From capital
transactions:
Net premiums.......... 57,574 96,517 92,480 17,397 28,358 43,594
Loan interest......... (79) (225) (3) (244) (409) (1,353)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- -- -- --
Surrenders.......... -- -- -- (28,048) -- --
Loans............... (6,155) (12,883) 205 (73,906) (14,686) (11,473)
Cost of insurance
and administrative
expense (note 3)... (12,640) (11,161) (3,145) (13,418) (14,411) (8,961)
Transfer gain (loss)
and transfer fees.. 1,294 2,778 1,084 (13,811) 706 (359)
Transfers (to) from
the Guarantee Account
(note 1)............. 9,174 16,071 5,323 -- 6,031 5,441
Interfund transfers... (210,684) 343,685 341,074 6,333 (1,149,736) 1,432,858
---------- --------- ------- --------- ---------- ---------
Increase (decrease) in
net assets from capital
transactions........... (161,516) 434,782 437,018 (105,697) (1,144,147) 1,459,747
---------- --------- ------- --------- ---------- ---------
Increase (decrease) in
net assets........... (113,101) 520,825 499,997 (113,367) (1,104,091) 1,555,015
Net assets at beginning
of year................ 1,038,585 517,760 17,763 1,129,523 2,233,614 678,599
---------- --------- ------- --------- ---------- ---------
Net assets at end of
year................... $ 925,484 1,038,585 517,760 1,016,156 1,129,523 2,233,614
========== ========= ======= ========= ========== =========
</TABLE>
F-32
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Federated
Insurance Series
(continued)
---------------------------
Utility Fund II
---------------------------
Year ended December 31,
---------------------------
1999 1998 1997
--------- ------- -------
<S> <C> <C> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense)................. $ 6,892 (2,093) 2,627
Net realized gain (loss)........................ 10,756 25,956 11,484
Unrealized appreciation (depreciation) on
investments.................................... (42,270) 8,478 50,092
Capital gain distributions...................... 25,666 24,895 5,733
--------- ------- -------
Increase (decrease) in net assets from
operations....................................... 1,044 57,236 69,936
--------- ------- -------
From capital transactions:
Net premiums.................................... -- 21,133 --
Loan interest................................... (581) (807) (55)
Transfers (to) from the general account of GE
Life & Annuity:
Death benefits................................ -- -- --
Surrenders.................................... (14,150) -- --
Loans......................................... (27,345) (18,860) (34,631)
Cost of insurance and administrative expense
(note 3)..................................... (5,113) (5,595) (3,486)
Transfer gain (loss) and transfer fees........ 76 690 2,314
Transfers (to) from the Guarantee Account
(note 1)....................................... -- -- 10,521
Interfund transfers............................. (67,113) 79,433 107,029
--------- ------- -------
Increase (decrease) in net assets from capital
transactions..................................... (114,226) 75,994 81,692
--------- ------- -------
Increase (decrease) in net assets............... (113,182) 133,230 151,628
Net assets at beginning of year................... 526,570 393,340 241,712
--------- ------- -------
Net assets at end of year......................... $ 413,388 526,570 393,340
========= ======= =======
</TABLE>
F-33
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Alger American Fund
------------------------------------------------------------------
Growth
Small Capitalization Portfolio 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)............ $ (28,322) (21,533) (18,711) (53,403) (24,502) (15,770)
Net realized gain
(loss)............... 263,133 (361,335) 155,266 367,836 342,335 121,886
Unrealized
appreciation
(depreciation) on
investments.......... 286,111 411,856 (23,084) 477,546 332,102 195,886
Capital gain
distributions........ 250,852 207,517 42,941 415,458 353,476 10,056
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 771,774 236,505 156,412 1,207,437 1,003,411 312,058
----------- --------- --------- --------- --------- ---------
From capital
transactions:
Net premiums.......... 47,061 53,010 88,579 61,208 49,615 23,449
Loan interest......... (4,390) (394) 2 (2,317) (929) (449)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- (13,545) -- (26,523) (19,533) --
Surrenders.......... -- (70,773) (1,243) (286,712) (43,795) (4,963)
Loans............... 3,449 22,480 (51,090) (87,064) (69,736) (60,475)
Cost of insurance
and administrative
expense (note 3)... (25,363) (19,635) (17,890) (46,522) (27,911) (20,884)
Transfer gain (loss)
and transfer fees.. 46,137 68,756 (6,935) (7,321) 30,431 (16,706)
Transfers (to) from
the Guarantee Account
(note 1)............. 11,769 23,461 72,126 500 35,331 25,127
Interfund transfers... (1,053,597) 1,262,264 148,081 1,365,674 631,892 147,496
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... (974,934) 1,325,624 231,630 970,923 585,365 92,595
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets........... (203,160) 1,562,129 388,042 2,178,360 1,588,776 404,653
Net assets at beginning
of year................ 3,022,286 1,460,157 1,072,115 3,345,552 1,756,776 1,352,123
----------- --------- --------- --------- --------- ---------
Net assets at end of
year................... $ 2,819,126 3,022,286 1,460,157 5,523,912 3,345,552 1,756,776
=========== ========= ========= ========= ========= =========
</TABLE>
F-34
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
PBHG Insurance Series Fund, Inc.
--------------------------------------------------------------
PBHG
Large Cap Growth PBHG
Portfolio Growth II Portfolio
------------------------------- ------------------------------
Period from Period from
Year ended July 22, Year ended May 22,
December 31, 1997 to December 31, 1997 to
----------------- December 31, ---------------- December 31,
1999 1998 1997 1999 1997 1997
-------- ------- ------------ ------- ------- ------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets
From operations:
Net investment income
(expense)............ $ (1,948) (1,340) (205) (3,631) (1,328) (540)
Net realized gain
(loss)............... 29,261 12,396 (1) 127,082 36,908 1,296
Unrealized
appreciation
(depreciation) on
investments.......... 99,164 11,365 656 66,595 15,978 (846)
Capital gain
distributions........ -- -- -- -- -- --
-------- ------- ------ ------- ------- ------
Increase (decrease) in
net assets from
operations............. 126,477 22,421 450 190,046 51,558 (90)
-------- ------- ------ ------- ------- ------
From capital
transactions:
Net premiums.......... 6,138 -- -- 2,000 3,717 4,615
Loan interest......... 26 -- -- (191) (58) --
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- -- -- --
Surrenders.......... -- (3,629) -- -- -- --
Loans............... (678) (817) -- (10,000) -- --
Cost of insurance
and administrative
expense (note 3)... (1,747) (2,407) (134) (4,856) (1,168) (460)
Transfer gain (loss)
and transfer fees.. (6,275) (2,844) 53 (19,026) (36,339) 1,309
Transfers (to) from
the Guarantee Account
(note 1)............. -- -- 3,269 -- 25,929 2,518
Interfund transfers... 128,326 (8,883) 28,216 33,117 2,248 84,214
-------- ------- ------ ------- ------- ------
Increase (decrease) in
net assets from capital
transactions........... 125,790 (18,580) 31,404 1,044 (5,671) 92,196
-------- ------- ------ ------- ------- ------
Increase (decrease) in
net assets........... 252,267 3,841 31,854 191,090 45,887 92,106
Net assets at beginning
of year................ 35,695 31,854 -- 137,993 92,106 --
-------- ------- ------ ------- ------- ------
Net assets at end of
year................... $287,962 35,695 31,854 329,083 137,993 92,106
======== ======= ====== ======= ======= ======
</TABLE>
F-35
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Janus Aspen Series
------------------------------------------------------------------
Aggressive Growth 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)............ $ (25,047) (31,583) (28,915) (82,113) 118,490 8,645
Net realized gain
(loss)............... 1,877,887 678,326 192,226 732,403 870,857 243,734
Unrealized
appreciation
(depreciation) on
investments.......... 3,056,764 307,545 99,444 2,126,069 434,354 376,858
Capital gain
distributions........ 70,984 -- -- 38,444 150,149 54,303
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 4,980,588 954,288 262,755 2,814,803 1,573,850 683,540
----------- --------- --------- --------- --------- ---------
From capital
transactions:
Net premiums.......... 29,506 42,148 60,192 83,311 64,698 100,831
Loan interest......... (3,772) (1,997) (77) (8,033) (5,496) (600)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- (23,434) -- --
Surrenders.......... (147,936) (9,219) (318) (332,087) (103,135) (11,331)
Loans............... (100,897) (24,856) (68,184) (113,712) (159,214) (101,750)
Cost of insurance
and administrative
expense (note 3)... (51,847) (25,282) (24,702) (72,587) (55,256) (43,347)
Transfer gain (loss)
and transfer fees.. 78,299 (164,381) 43,699 9,023 16,223 594
Transfers (to) from
the Guarantee Account
(note 1)............. -- 8,345 34,546 3,568 18,355 84,063
Interfund transfers... 2,991,895 (793,229) 503,885 1,275,017 305,817 1,105,318
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... 2,795,248 (968,471) 549,041 821,066 81,992 1,133,778
----------- --------- --------- --------- --------- ---------
Increase (decrease) in
net assets........... 7,775,836 (14,183) 811,796 3,635,869 1,655,842 1,817,318
Net assets at beginning
of year................ 2,774,289 2,788,472 1,976,676 6,260,048 4,604,206 2,786,888
----------- --------- --------- --------- --------- ---------
Net assets at end of
year................... $10,550,125 2,774,289 2,788,472 9,895,917 6,260,048 4,604,206
=========== ========= ========= ========= ========= =========
</TABLE>
F-36
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
-------------------------------------------------------------------
Worldwide Growth Portfolio Balanced 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)............ $ (150,353) 150,828 (14,152) 56,688 102,703 37,720
Net realized gain
(loss)............... 1,684,622 1,535,984 457,649 397,981 75,042 16,368
Unrealized
appreciation
(depreciation) on
investments.......... 5,709,994 417,036 666,571 859,559 1,021,865 172,861
Capital gain
distributions........ -- 114,875 36,750 -- 26,713 1,466
----------- ---------- --------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 7,244,263 2,218,723 1,146,818 1,314,228 1,226,323 228,415
----------- ---------- --------- --------- --------- ---------
From capital
transactions:
Net premiums.......... 181,280 276,172 334,686 39,986 20,390 32,001
Loan interest......... (5,533) (3,134) (933) (7,355) (4,091) (48)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... (23,423) (68,985) (1,737) (24,021) (18,660) --
Surrenders.......... (306,760) (104,833) (5,393) (382,801) (5,329) (2,416)
Loans............... (86,961) (97,145) (74,934) (339,651) (78,415) 26,990
Cost of insurance
and administrative
expense (note 3)... (127,864) (110,038) (79,593) (55,893) (43,371) (13,436)
Transfer gain (loss)
and transfer fees.. 3,589 12,636 14,879 (6,027) 989 606
Transfers (to) from
the Guarantee Account
(note 1)............. 35,983 (12,929) 109,443 14,501 46,495 41,217
Interfund transfers... 269,462 863,455 1,831,317 1,299,658 395,097 2,601,676
----------- ---------- --------- --------- --------- ---------
Increase (decrease) in
net assets from capital
transactions........... (60,227) 755,199 2,127,735 538,397 313,105 2,686,590
----------- ---------- --------- --------- --------- ---------
Increase (decrease) in
net assets........... 7,184,036 2,973,922 3,274,553 1,852,625 1,539,428 2,915,005
Net assets at beginning
of year................ 11,200,312 8,226,390 4,951,837 5,084,946 3,545,518 630,513
----------- ---------- --------- --------- --------- ---------
Net assets at end of
year................... $18,384,348 11,200,312 8,226,390 6,937,571 5,084,946 3,545,518
=========== ========== ========= ========= ========= =========
</TABLE>
F-37
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
------------------------------------------------------------
Flexible International
Income Growth
Portfolio 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)............ $ 18,729 17,911 9,720 (28,206) 22,885 (8,218)
Net realized gain
(loss)............... 2,310 2,524 3,107 452,801 171,620 145,208
Unrealized
appreciation
(depreciation) on
investments.......... (20,012) 3,399 4,489 1,288,333 158,124 45,943
Capital gain distribu-
tions................ 1,152 1,021 76 -- 7,791 2,276
--------- ------- ------- --------- --------- ---------
Increase (decrease) in
net assets from
operations............. 2,179 24,855 17,392 1,712,928 360,420 185,209
--------- ------- ------- --------- --------- ---------
From capital transac-
tions:
Net premiums.......... 9,934 5,245 21,946 18,930 36,145 60,001
Loan interest......... (42) (324) (28) 1,974 (617) (1,662)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- -- (11,677) --
Surrenders.......... -- (52,087) -- (13,011) (60,448) --
Loans............... 2,596 21,183 (30,720) (7,155) 4,516 (10,000)
Cost of insurance
and administrative
expense (note 3)... (4,230) (3,675) (1,977) (25,425) (24,306) (16,021)
Transfer gain (loss)
and transfer fees.. 225 (208) (429) (1,336) 59,856 12,507
Transfers (to) from
the Guarantee Account
(note 1)............. -- 85 3,243 -- 77,727 122,804
Interfund transfers... (85,330) 269,008 3,106 (913,181) 813,972 1,044,932
--------- ------- ------- --------- --------- ---------
Increase (decrease) in
net assets from
capital transactions... (76,847) 239,227 (4,859) (939,204) 895,168 1,212,561
--------- ------- ------- --------- --------- ---------
Increase (decrease) in
net assets........... (74,668) 264,082 12,533 773,724 1,255,588 1,397,770
Net assets at beginning
of year................ 436,086 172,004 159,471 3,043,406 1,787,818 390,048
--------- ------- ------- --------- --------- ---------
Net assets at end of
year................... $ 361,418 436,086 172,004 3,817,130 3,043,406 1,787,818
========= ======= ======= ========= ========= =========
</TABLE>
F-38
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Janus Aspen Series (continued)
---------------------------------------
Capital
Appreciation
Portfolio
---------------------------------------
Period from
Year ended December 31, May 22,
-------------------------- December 31,
1999 1998 1997
------------- ----------- ------------
<S> <C> <C> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense)...... $ (31,231) (5,716) (75)
Net realized gain (loss)............. 435,959 225,641 (7,519)
Unrealized appreciation (deprecia-
tion) on investments................ 837,570 56,754 (582)
Capital gain distributions........... 10,754 -- --
------------- ---------- ------
Increase (decrease) in net assets from
operations............................ 1,253,052 276,679 (8,176)
------------- ---------- ------
From capital transactions:
Net premiums......................... 73,275 12,000 --
Loan interest........................ (1,142) -- --
Transfers (to) from the general ac-
count of GE Life & Annuity:
Death benefits..................... -- -- --
Surrenders......................... (41,706) -- --
Loans.............................. (7,970) (37,337) --
Cost of insurance and administra-
tive expense (note 3)............. (28,392) (8,261) (181)
Transfer gain (loss) and transfer
fees.............................. 119,454 (4,436) (24)
Transfers (to) from the Guarantee Ac-
count (note 1)...................... -- -- --
Interfund transfers.................. 1,353,094 677,289 20,306
------------- ---------- ------
Increase (decrease) in net assets from
capital transactions.................. 1,466,613 639,255 20,101
------------- ---------- ------
Increase (decrease) in net assets.... 2,719,665 915,934 11,925
Net assets at beginning of year........ 927,859 11,925 --
------------- ---------- ------
Net assets at end of year.............. $ 3,647,524 927,859 11,925
============= ========== ======
</TABLE>
F-39
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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)............... $ 9,495 30,012 (9,747)
Net realized gain
(loss).................. 315,380 (3,318) 150,610
Unrealized appreciation
(depreciation) on in-
vestments............... (146,827) (1,629) (55,310)
Capital gain distribu-
tions................... 88,699 -- 64,488
---------------- ------------- -------------
Increase (decrease) in net
assets from operations.... 266,747 25,065 150,041
---------------- ------------- -------------
From capital transactions:
Net premiums.............. -- -- --
Loan interest............. (669) (2,301) (894)
Transfers (to) from the
general account of GE
Life & Annuity:
Death benefits........... -- -- --
Surrenders............... (19,398) -- --
Loans.................... (4,103) 53,065 (7,618)
Cost of insurance and ad-
ministrative expense
(note 3)................ (19,558) (5,054) (7,810)
Transfer gain (loss) and
transfer fees........... 669 (38,185) (1,185)
Interfund transfers....... (2,096,250) (670,024) (881,910)
---------------- ------------- -------------
Increase (decrease) in net
assets from capital trans-
actions................... (2,139,309) (662,499) (899,417)
---------------- ------------- -------------
Increase (decrease) in net
assets.................... (1,872,562) (637,434) (749,376)
Net assets at beginning of
year...................... 1,872,562 637,434 749,376
---------------- ------------- -------------
Net assets at end of year.. $ -- -- --
================ ============= =============
</TABLE>
F-40
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Statements of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
Salomon Brothers
Goldman Sachs Variable Insurance Trust Variable Series Funds Inc.
--------------------------------------------------- ---------------------------------
Strategic Bond Total Return
Growth and Income Fund Mid Cap Value Fund Fund Fund
------------------------- ------------------------- ---------------- ----------------
Period from Period from
October 6, June 25, Period from Period from
Year ended 1998 to Year ended 1998 to March 19, 1999 July 14, 1999
December 31, December 31, December 31, December 31, to December 31, to December 31,
1999 1998 1999 1998 1999 1999
------------ ------------ ------------ ------------ ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense).... $ 118 37 (3,000) 425 (1,150) 115
Net realized gain (loss)........... 573 58 84,871 (16) (14,814) (8)
Unrealized appreciation
(depreciation) on investments..... (2,840) 49 (27,108) 196 (4,324) (424)
Capital gain distributions......... -- -- -- -- -- --
------- ----- ------- ------ ------- -----
Increase (decrease) in net assets
from operations..................... (2,149) 144 54,763 605 (20,288) (317)
------- ----- ------- ------ ------- -----
From capital transactions:
Net premiums....................... 1,250 -- 7,450 -- -- --
Loan interest...................... (86) -- 945 -- 227 --
Transfers (to) from the general
account of
GE Life & Annuity:
Death benefits
Surrenders....................... -- -- -- -- -- --
Loans............................ -- -- -- -- -- --
Cost of insurance and
administrative expense.......... -- -- -- -- 11,465 (134)
(note 3)....................... (497) (10) (2,968) (279) (2,472) (65)
Transfer gain (loss) and transfer
fees............................ (19) 63 35,817 116 (471) 1
Transfers (to) from the Guarantee
Account (note 1).................. -- -- 23,524 -- -- --
Interfund transfers................ 64,781 5,092 44,102 79,827 113,987 6,940
------- ----- ------- ------ ------- -----
Increase (decrease) in net assets
from capital transactions........... 65,429 5,145 108,870 79,664 122,736 6,742
------- ----- ------- ------ ------- -----
Increase (decrease) in net assets.. 63,280 5,289 163,633 80,269 102,448 6,425
Net assets at beginning of year...... 5,289 -- 80,269 -- -- --
------- ----- ------- ------ ------- -----
Net assets at end of year............ $68,569 5,289 243,902 80,269 102,448 6,425
======= ===== ======= ====== ======= =====
</TABLE>
F-41
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements
December 31, 1999
(1)Description of Entity
GE Life & Annuity Separate Account III, formerly Life of Virginia Separate
Account III, (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 variable
life insurance policies issued by GE Life & Annuity. GE Life & Annuity 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 Corporation (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 was added to the Account. The
Premier Growth Equity Fund, which invests solely in a designated portfolio of
the GE Investment Funds, Inc., was added to the Account. The fund 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. 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. All designated portfolios described above are series type mutual
funds. There were no amounts issued in the Investors Fund during 1998 or 1999.
In May 1998, three new investment subdivisions were added to the Account.
The U.S. Equity Fund invests solely in a designated portfolio of the GE
Investments Funds, Inc. The Growth and Income, and Mid Cap Value (formerly Mid
Cap Equity) Funds each invest solely in a designated portfolio of the Goldman
Sachs Variable Insurance Trust Fund. 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 Management GE Investments Funds, Inc.
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--
Neuberger & Berman Advisers Management Variable Insurance Products Fund
Trust
Shares of Balanced Portfolio-- Shares of Balanced Portfolio--
Neuberger & Berman Advisers Management Janus Aspen Series
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-42
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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.
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 GE Life & Annuity. 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
(a) 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................................. $ 8,074,508 7,214,880
Money Market Fund.................................. 142,550,663 137,813,632
Total Return Fund.................................. 252,045 423,194
International Equity Fund.......................... 95,821 53,745
Real Estate Securities Fund........................ 129,373 186,650
Global Income Fund................................. 8,053,103 7,879,226
Value Equity Fund.................................. 2,236,005 2,105,030
Income Fund........................................ 217,788 270,438
U.S. Equity Fund................................... 125,476 10,321
Premier Growth Equity Fund......................... 411,273 4,116
Oppenheimer Variable Account Funds:
Bond Fund/VA....................................... 4,664,510 5,368,442
Aggressive Growth Fund/VA.......................... 10,318,765 12,079,719
Capital Appreciation Fund/VA....................... 13,344,120 14,752,551
High Income Fund/VA................................ 5,801,753 9,370,017
Multiple Strategies Fund/VA........................ 409,651 632,184
</TABLE>
F-43
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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:
Equity-Income Portfolio............................. $ 4,915,891 6,821,877
Growth Portfolio.................................... 22,585,871 23,276,357
Overseas Portfolio.................................. 7,307,789 9,133,870
Variable Insurance Products Fund II:
Asset Manager Portfolio............................. 1,254,832 2,225,955
Contrafund Portfolio................................ 4,543,326 5,813,319
Variable Insurance Products Fund III:
Growth & Income Portfolio........................... 5,056,011 4,659,241
Growth Opportunities Portfolio...................... 517,132 269,032
Federated Insurance Series:
American Leaders Fund II............................ 369,678 437,325
High Income Bond Fund II............................ 4,343,137 4,376,296
Utility Fund II..................................... 64,465 146,678
Alger American Fund:
Small Capitalization Portfolio...................... 6,407,968 7,157,866
Growth Portfolio.................................... 4,227,645 2,891,282
PBHG Insurance Series Fund, Inc.:
PBHG Large Cap Growth Portfolio..................... 285,430 150,633
PBHG Growth II Portfolio............................ 7,159,550 7,161,161
Janus Aspen Series:
Aggressive Growth Portfolio......................... 43,175,696 40,322,321
Growth Portfolio.................................... 4,678,348 3,905,156
Worldwide Growth Portfolio.......................... 7,097,136 7,336,085
Balanced Portfolio.................................. 2,045,928 1,567,384
Flexible Income Portfolio........................... 303,173 360,565
International Growth Portfolio...................... 5,200,086 6,170,402
Capital Appreciation Portfolio...................... 36,142,487 34,686,023
Goldman Sachs Variable Insurance Trust:
Growth and Income Fund.............................. 93,553 27,975
Mid Cap Value Fund.................................. 3,431,804 3,325,911
Salomon Brothers Variable Series Fund Inc.:
Strategic Bond Fund................................. 5,645,594 5,523,951
Total Return Fund................................... 7,094 234
</TABLE>
F-44
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
(b) Capital Transactions
The increase (decrease) of 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.
--------------------------------------------------------------
Real
S&P 500 Government Money Total International Estate
Index Securities Market Return Equity Securities
Fund Fund Fund Fund Fund Fund
------- ---------- -------- ------ ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Units outstanding at De-
cember 31, 1996........ 58,616 43,554 683,115 62,796 69,054 14,627
------- ------- -------- ------ ------- -------
From capital transac-
tions:
Net premiums.......... 918 705 888,521 1,582 69 3,906
Loan interest......... (15) (24) 1,522 3 (1) --
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... (56) -- -- (5,200) -- --
Surrenders.......... (1,568) (14,115) (4,893) (404) -- --
Loans............... (310) (1,284) (15,590) (1,334) 123 (1,039)
Cost of insurance
and administrative
expenses........... (770) (447) (7,485) (686) (623) (570)
Transfers (to) from
the Guarantee Ac-
count................ 1,030 15 (1,925) 1,924 -- 203
Interfund transfers... 35,756 (28,404) (795,469) 5,670 (48,010) 41,075
------- ------- -------- ------ ------- -------
Net increase (decrease)
in units from capital
transactions........... 34,985 (43,554) 64,681 1,555 (48,442) 43,575
------- ------- -------- ------ ------- -------
Units outstanding at De-
cember 31, 1997........ 93,601 -- 747,796 64,351 20,612 58,202
------- ------- -------- ------ ------- -------
From capital transac-
tions:
Net premiums.......... 10,503 -- 318,502 457 (63) 2,573
Loan interest......... (51) -- 939 (4) 3 (12)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... (776) -- (579) -- -- --
Surrenders.......... (3,536) -- (29,501) (5,534) -- (181)
Loans............... (258) -- (62,560) (1,140) (230) (955)
Cost of insurance
and administrative
expenses........... (1,578) -- (8,969) (602) 231 (703)
Transfers (to) from
the Guarantee Ac-
count................ 4,508 -- (3,439) 353 (1,473) 2,167
Interfund transfers... 38,024 -- (569,612) 1,764 1,669 (13,779)
------- ------- -------- ------ ------- -------
Net increase (decrease)
in units from capital
transactions........... 46,836 -- (55,219) (4,706) 137 (10,890)
------- ------- -------- ------ ------- -------
Units outstanding at De-
cember 31, 1998........ 140,437 -- 692,577 59,645 20,749 47,312
------- ------- -------- ------ ------- -------
From capital transac-
tions:
Net premiums.......... 4,635 -- 453,065 283 -- 593
Loan interest......... (80) -- 2,062 (23) -- (65)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- -- -- --
Surrenders.......... (12,655) -- (253,135) (4,209) -- (2,315)
Loans............... (319) -- (45,695) (167) -- (262)
Cost of insurance
and administrative
expenses........... (1,697) -- (9,438) (586) (244) (546)
Transfers (to) from
the Guarantee Ac-
count................ 27 -- -- 16 -- --
Interfund transfers... 32,129 -- 111,903 (2,341) 1,517 (2,972)
------- ------- -------- ------ ------- -------
Net increase (decrease)
in units from capital
transactions........... 22,040 -- 258,762 (7,027) 1,273 (5,567)
------- ------- -------- ------ ------- -------
Units outstanding at De-
cember 31, 1999........ 162,477 -- 951,339 52,618 22,022 41,745
======= ======= ======== ====== ======= =======
</TABLE>
F-45
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
GE Investments Funds, Inc. (continued)
----------------------------------------------
Global Value U.S. Premier
Income Equity Income Equity Growth Equity
Fund Fund Fund Fund Fund
------ ------ ------- ------ -------------
<S> <C> <C> <C> <C> <C>
Units outstanding at December
31, 1996...................... -- -- -- -- --
----- ------ ------- ------ ------
From capital transactions:
Net premiums................. -- 356 -- -- --
Loan interest................ -- -- -- -- --
Transfers (to) from the gen-
eral account of
GE Life & Annuity:
Death benefits............. -- -- -- -- --
Surrenders................. -- -- -- -- --
Loans...................... -- -- (240) -- --
Cost of insurance and ad-
ministrative expenses..... (2) (48) (74) -- --
Transfers (to) from the Guar-
antee Account............... -- -- -- -- --
Interfund transfers.......... 1,338 18,848 122,212 -- --
----- ------ ------- ------ ------
Net increase (decrease) in
units from capital transac-
tions......................... 1,336 19,156 121,898 -- --
----- ------ ------- ------ ------
Units outstanding at December
31, 1997...................... 1,336 19,156 121,898 -- --
----- ------ ------- ------ ------
From capital transactions:
Net premiums................. -- 1,214 1 -- --
Loan interest................ -- (63) (366) -- --
Transfers (to) from the gen-
eral account of
GE Life & Annuity:
Death benefits............. -- -- -- -- --
Surrenders................. -- -- (252) -- --
Loans...................... -- (90) (2,123) -- --
Cost of insurance and ad-
ministrative expenses..... (25) (370) (1,466) (3) --
Transfers (to) from the Guar-
antee Account............... -- -- 764 -- --
Interfund transfers.......... 1,172 18,643 19,037 955 --
----- ------ ------- ------ ------
Net increase (decrease) in
units from capital transac-
tions......................... 1,147 19,334 15,595 952 --
----- ------ ------- ------ ------
Units outstanding at December
31, 1998...................... 2,483 38,490 137,493 952 --
----- ------ ------- ------ ------
From capital transactions:
Net premiums................. 3 243 1,551 -- (1)
Loan interest................ -- (66) (457) -- --
Transfers (to) from the gen-
eral account of
GE Life & Annuity:
Death benefits............. -- -- -- -- --
Surrenders................. -- -- (8,378) -- --
Loans...................... 15 (445) (428) -- (30)
Cost of insurance and ad-
ministrative expenses..... (4) (525) (1,456) (46) (204)
Transfers (to) from the Guar-
antee Account............... -- 1,886 1,928 -- --
Interfund transfers.......... 162 7,567 (2,666) 9,329 39,537
----- ------ ------- ------ ------
Net increase (decrease) in
units from capital transac-
tions......................... 176 8,660 (9,906) 9,283 39,302
----- ------ ------- ------ ------
Units outstanding at December
31, 1999...................... 2,659 47,150 127,587 10,235 39,302
===== ====== ======= ====== ======
</TABLE>
F-46
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
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>
Units outstanding at De-
cember 31, 1996........ 10,387 81,322 177,408 78,571 135,468 103,922
------- ------- ------- ------- ------- -------
From capital transac-
tions:
Net premiums.......... -- 567 5,184 4,979 3,036 515
Loan interest......... -- 10 (15) (57) (20) (30)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- -- -- (83)
Surrenders.......... -- -- (182) -- (291) --
Loans............... -- (938) (2,466) (1,925) (949) 364
Cost of insurance
and administrative
expenses........... (104) (792) (2,250) (1,203) (1,459) (1,248)
Transfers (to) from
the Guarantee Ac-
count................ -- 465 2,796 2,441 -- 999
Interfund transfers... (10,283) 80,017 25,443 45,075 71,340 18,636
------- ------- ------- ------- ------- -------
Net increase (decrease)
in units from capital
transactions........... (10,387) 79,329 28,510 49,310 71,657 19,153
------- ------- ------- ------- ------- -------
Units outstanding at De-
cember 31, 1997........ -- 160,651 205,918 127,881 207,125 123,075
------- ------- ------- ------- ------- -------
From capital transac-
tions:
Net premiums.......... -- 3,023 9,796 3,787 331 45
Loan interest......... -- 88 655 (82) (50) (40)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- -- (1,322) (854)
Surrenders.......... -- (3,818) (21,555) (4,162) (16,597) (6,487)
Loans............... -- (34) (58,985) (3,464) (993) (2,318)
Cost of insurance
and administrative
expenses........... -- (1,373) (7,454) (1,353) (1,787) (1,472)
Transfers (to) from
the Guarantee Ac-
count................ -- 399 693 1,693 812 1,351
Interfund transfers... -- (52,085) 47,191 63,068 5,503 4,993
------- ------- ------- ------- ------- -------
Net increase (decrease)
in units from capital
transactions........... -- (53,800) (29,659) 59,487 (14,103) (4,782)
------- ------- ------- ------- ------- -------
Units outstanding at De-
cember 31, 1998........ -- 106,851 176,259 187,368 193,022 118,293
------- ------- ------- ------- ------- -------
From capital transac-
tions:
Net premiums.......... -- 934 1,328 925 212 1,302
Loan interest......... -- 137 (126) (79) (64) (7)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- (554) -- -- --
Surrenders.......... -- (1,554) (10,319) (17,001) (2,950) (6,514)
Loans............... -- (1,336) (3,056) (4,252) (3,614) (369)
Cost of insurance
and administrative
expenses........... -- (934) (1,687) (1,190) (1,595) (1,088)
Transfers (to) from
the Guarantee Ac-
count................ -- 284 199 -- 13 32
Interfund transfers... -- (32,896) (25,280) (71,462) (47,495) (8,763)
------- ------- ------- ------- ------- -------
Net increase (decrease)
in units from capital
transactions........... -- (35,365) (39,495) (93,059) (55,493) (15,407)
------- ------- ------- ------- ------- -------
Units outstanding at De-
cember 31, 1999........ -- 71,486 136,764 94,309 137,529 102,886
======= ======= ======= ======= ======= =======
</TABLE>
F-47
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Variable Insurance
Variable Insurance Products Fund Products Fund II
------------------------------------------------- --------------------
Money High Equity Asset
Market Income Income Growth Overseas Manager Contrafund
Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
--------- --------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at De-
cember 31, 1996........ 73,394 53,819 478,350 320,102 315,896 405,585 283,121
------- ------- ------- ------- ------- ------- -------
From capital transac-
tions:
Net premiums.......... -- -- 8,841 6,684 600 3,583 9,027
Loan interest......... (523) -- (237) (259) (114) (180) (173)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- (749) (139) -- (5,411) (94)
Surrenders.......... (765) (6,032) (2,952) (2,453) (1,224) (325) (497)
Loans............... (1,169) (238) (4,978) (12,995) (6,601) (3,524) (6,225)
Cost of insurance
and administrative
expenses........... (526) (432) (6,220) (8,445) (2,771) (3,562) (3,816)
Transfers (to) from
the Guarantee Ac-
count................ -- -- 4,627 3,782 2,879 1,223 7,878
Interfund transfers... (70,411) (47,117) 12,774 3,763 (65,198) (2,171) 95,951
------- ------- ------- ------- ------- ------- -------
Net increase (decrease)
in units from capital
transactions........... (73,394) (53,819) 11,106 (10,062) (72,429) (10,367) 102,051
------- ------- ------- ------- ------- ------- -------
Units outstanding at De-
cember 31, 1997........ -- -- 489,456 310,040 243,467 395,218 385,172
------- ------- ------- ------- ------- ------- -------
From capital transac-
tions:
Net premiums.......... -- -- 4,258 1,424 799 92 7,384
Loan interest......... -- -- (318) (483) (64) (276) (287)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- (1,780) (685) (1,283) (1,619) (1,038)
Surrenders.......... -- -- (6,479) (16,160) (9,040) (12,811) (935)
Loans............... -- -- (11,737) (15,030) (3,925) (9,503) (3,564)
Cost of insurance
and administrative
expenses........... -- -- (4,890) (3,495) (1,986) (3,990) (3,917)
Transfers (to) from
the Guarantee Ac-
count................ -- -- 3,580 2,834 (363) 2,750 3,497
Interfund transfers... -- -- (5,896) 13,096 12,401 6,154 41,115
------- ------- ------- ------- ------- ------- -------
Net increase (decrease)
in units from capital
transactions........... -- -- (23,235) (18,499) (3,461) (19,203) 42,255
------- ------- ------- ------- ------- ------- -------
Units outstanding at De-
cember 31, 1998........ -- -- 466,221 291,541 240,006 376,015 427,427
------- ------- ------- ------- ------- ------- -------
From capital transac-
tions:
Net premiums.......... -- -- 839 3,218 754 84 2,850
Loan interest......... -- -- (355) (326) (99) (301) (344)
Transfers (to) from
the general account
of
GE Life & Annuity:
Death benefits...... -- -- -- -- (885) -- (948)
Surrenders.......... -- -- (14,522) (27,627) (7,933) (28,550) (21,891)
Loans............... -- -- (6,257) (3,276) (4,471) (2,115) (6,131)
Cost of insurance
and administrative
expenses........... -- -- (4,198) (2,672) (1,663) (3,578) (4,071)
Transfers (to) from
the Guarantee Ac-
count................ -- -- (3,506) 112 18 1,395 262
Interfund transfers... -- -- (37,767) (9,026) (64,727) (27,162) (30,229)
------- ------- ------- ------- ------- ------- -------
Net increase (decrease)
in units from capital
transactions........... -- -- (65,766) (39,597) (79,006) (60,227) (60,502)
------- ------- ------- ------- ------- ------- -------
Units outstanding at De-
cember 31, 1999........ -- -- 400,455 251,944 161,000 315,788 366,925
======= ======= ======= ======= ======= ======= =======
</TABLE>
F-48
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Variable Insurance Products Neuberger & Berman
Fund III Advisers Management Trust
-------------------------------- ------------------------------
Growth & Growth
Income Opportunities Balanced Bond Growth
Portfolio Portfolio Portfolio Portfolio Portfolio
------------- --------------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Units outstanding at De-
cember 31, 1996........ -- -- 114,320 52,241 49,204
------------- ------------- -------- ------- -------
From capital transac-
tions:
Net premiums.......... 1,078 1,677 -- -- --
Loan interest......... -- -- (36) (192) (49)
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- -- --
Surrenders.......... -- -- (1,036) -- --
Loans............... -- -- (219) 4,440 (417)
Cost of insurance
and administrative
expenses........... (139) (149) (1,045) (423) (428)
Transfers (to) from
the Guarantee Ac-
count................ -- 271 -- -- --
Interfund transfers... 32,242 26,820 (111,984) (56,066) (48,310)
------------- ------------- -------- ------- -------
Net increase (decrease)
in units from capital
transactions........... 33,181 28,619 (114,320) (52,241) (49,204)
------------- ------------- -------- ------- -------
Units outstanding at De-
cember 31, 1997........ 33,181 28,619 -- -- --
------------- ------------- -------- ------- -------
From capital transac-
tions:
Net premiums.......... 1,845 2,945 -- -- --
Loan interest......... (31) (10) -- -- --
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- -- --
Surrenders.......... -- -- -- -- --
Loans............... (252) -- -- -- --
Cost of insurance
and administrative
expenses........... (609) (383) -- -- --
Transfers (to) from
the Guarantee Ac-
count................ 1,097 649 -- -- --
Interfund transfers... 28,309 10,821 -- -- --
------------- ------------- -------- ------- -------
Net increase (decrease)
in units from capital
transactions........... 30,359 14,022 -- -- --
------------- ------------- -------- ------- -------
Units outstanding at De-
cember 31, 1998........ 63,540 42,641 -- -- --
------------- ------------- -------- ------- -------
From capital transac-
tions:
Net premiums.......... 837 38 -- -- --
Loan interest......... (1) (6) -- -- --
Transfers (to) from
the general account
of GE Life & Annuity:
Death benefits...... -- -- -- -- --
Surrenders.......... (2,372) (1,140) -- -- --
Loans............... (661) (64) -- -- --
Cost of insurance
and administrative
expenses........... (1,112) (549) -- -- --
Transfers (to) from
the Guarantee Ac-
count................ 729 -- -- -- --
Interfund transfers... 27,874 17,414 -- -- --
------------- ------------- -------- ------- -------
Net increase (decrease)
in units from capital
transactions........... 25,294 15,693 -- -- --
------------- ------------- -------- ------- -------
Units outstanding at De-
cember 31, 1999........ 88,834 58,334 -- -- --
============= ============= ======== ======= =======
</TABLE>
F-49
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
PBHG Insurance
Federated Insurance Series Alger American Fund Series Fund, Inc.
----------------------------- ------------------------ --------------------
American High Small PBHG Large PBHG
Leaders Income Bond Utility Capitalization Growth Cap Growth Growth II
Fund II Fund II Fund II Portfolio Portfolio Portfolio Portfolio
-------- ----------- ------- -------------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Units outstanding at December 31, 1996....... 1,606 50,680 17,985 111,215 125,545 -- --
------- ------- ------ ------- ------- ------ ------
From capital transactions:
Loan interest.............................. -- (91) (4) -- (24) -- --
Transfers (to) from the general account of
GE Life & Annuity:
Death benefits........................... -- -- -- -- -- -- --
Surrenders............................... -- -- -- (138) (266) -- --
Loans.................................... 16 (768) (2,368) (5,683) (3,238) -- --
Cost of insurance and administrative
expenses................................ (247) (600) (238) (1,990) (1,118) (11) (44)
Transfers (to) from the Guarantee Account.. 418 364 719 8,023 1,345 283 239
Interfund transfers........................ 26,797 95,909 7,319 16,471 7,897 2,446 8,006
------- ------- ------ ------- ------- ------ ------
Net increase (decrease) in units from capital
transactions................................ 34,250 97,733 5,428 26,536 5,852 2,718 8,640
------- ------- ------ ------- ------- ------ ------
Units outstanding at December 31, 1997....... 35,856 148,413 23,413 137,751 131,397 2,718 8,640
------- ------- ------ ------- ------- ------ ------
From capital transactions:
Net premiums............................... 5,835 1,842 1,248 4,733 3,551 (1) 424
Loan interest.............................. (14) (27) (48) (35) (66) -- (7)
Transfers (to) from the general account of
GE Life & Annuity:
Death benefits........................... -- -- -- (1,209) (1,398) -- --
Surrenders............................... -- -- -- (6,320) (3,136) (82) --
Loans.................................... (779) (954) (1,114) 2,007 (4,993) (18) --
Cost of insurance and administrative
expenses................................ (675) (936) (330) (1,753) (1,998) (54) (133)
Transfers (to) from the Guarantee Account.. 971 392 -- 2,095 2,530 -- 2,947
Interfund transfers........................ 20,774 (74,663) 4,692 112,713 45,241 (201) 255
------- ------- ------ ------- ------- ------ ------
Net increase (decrease) in units from capital
transactions................................ 26,112 (74,346) 4,448 112,231 39,731 (356) 3,486
------- ------- ------ ------- ------- ------ ------
Units outstanding at December 31, 1998....... 61,968 74,067 27,861 249,982 171,128 2,362 12,126
------- ------- ------ ------- ------- ------ ------
From capital transactions:
Net premiums............................... 3,371 1,529 (1) 3,927 2,689 433 264
Loan interest.............................. (5) (21) (31) (366) (102) 2 (25)
Transfers (to) from the general account of
GE Life & Annuity:
Death benefits........................... -- -- -- -- (1,165) -- --
Surrenders............................... -- (2,467) (751) -- (12,596) -- --
Loans.................................... (360) (6,501) (1,452) 288 (3,825) (48) (1,324)
Cost of insurance and administrative
expenses................................ (740) (1,180) (271) (2,117) (2,044) (123) (643)
Transfers (to) from the Guarantee Account.. 537 -- -- 982 22 -- --
Interfund transfers........................ (12,336) 557 (3,563) (87,931) 59,998 9,061 4,386
------- ------- ------ ------- ------- ------ ------
Net increase (decrease) in units from capital
transactions................................ (9,533) (8,083) (6,069) (85,217) 42,977 9,325 2,658
------- ------- ------ ------- ------- ------ ------
Units outstanding at December 31, 1999....... 52,435 65,984 21,792 164,765 214,105 11,687 14,784
======= ======= ====== ======= ======= ====== ======
</TABLE>
F-50
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<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>
Units outstanding at December 31, 1996..... 129,703 190,622 319,680 51,766 14,100 33,423 --
------- ------- ------- ------- ------ ------- -------
From capital transactions:
Net premiums............................. 4,146 6,158 19,120 2,260 1,522 4,872 --
Loan interest............................ (5) (37) (53) (3) (2) (135) --
Transfers (to) from the general account
of GE Life & Annuity:
Death benefits......................... -- -- (99) -- -- -- --
Surrenders............................. (22) (692) (308) (171) -- -- --
Loans.................................. (4,697) (6,214) (4,281) 1,907 (2,130) (812) --
Cost of insurance and administrative
expenses.............................. (1,702) (2,647) (4,547) (949) (137) (1,301) (9)
Transfers (to) from the Guarantee Account.. 2,380 5,134 6,252 2,912 225 9,973 --
Interfund transfers...................... 34,709 67,507 104,621 183,798 215 84,860 959
------- ------- ------- ------- ------ ------- -------
Net increase (decrease) in units from
capital transactions...................... 34,809 69,209 120,705 189,754 (307) 97,457 950
------- ------- ------- ------- ------ ------- -------
Units outstanding at December 31, 1997..... 164,512 259,831 440,385 241,520 13,793 130,880 950
------- ------- ------- ------- ------ ------- -------
From capital transactions:
Net premiums............................. 2,149 3,907 11,534 1,293 409 2,672 867
Loan interest............................ (102) (332) (131) (259) (25) (46) --
Transfers (to) from the general account
of GE Life & Annuity:
Death benefits......................... -- -- (2,881) (1,183) -- (863) --
Surrenders............................. (470) (6,229) (4,378) (338) (4,063) (4,468) --
Loans.................................. (1,267) (9,616) (4,057) (4,970) 1,652 334 (2,698)
Cost of insurance and administrative
expenses.............................. (1,289) (3,337) (4,595) (2,749) (287) (1,797) (597)
Transfers (to) from the Guarantee Account.. 425 1,109 (540) 2,947 7 5,745 --
Interfund transfers...................... (40,437) 18,470 36,057 25,041 20,985 60,164 48,939
------- ------- ------- ------- ------ ------- -------
Net increase (decrease) in units from
capital transactions...................... (40,991) 3,972 31,009 19,782 18,678 61,741 46,511
------- ------- ------- ------- ------ ------- -------
Units outstanding at December 31, 1998..... 123,521 263,803 471,394 261,302 32,471 192,621 47,461
------- ------- ------- ------- ------ ------- -------
From capital transactions:
Net premiums............................. 951 3,045 (14,576) 1,734 727 1,178 3,576
Loan interest............................ (122) (294) 445 (319) (3) 123 (56)
Transfers (to) from the general account
of GE Life & Annuity:
Death benefits......................... -- (856) 1,883 (1,042) -- -- --
Surrenders............................. (4,770) (12,134) 24,665 (16,600) -- (810) (2,035)
Loans.................................. (3,253) (4,155) 6,992 (14,729) 190 (445) (389)
Cost of insurance and administrative
expenses.............................. (1,672) (2,652) 10,281 (2,424) (310) (1,582) (1,386)
Transfers (to) from the Guarantee Account.. -- 130 (2,893) 629 -- -- --
Interfund transfers...................... 96,474 46,586 (21,666) 56,360 (6,244) (56,821) 66,036
------- ------- ------- ------- ------ ------- -------
Net increase (decrease) in units from
capital transactions...................... 87,608 29,670 5,131 23,609 (5,640) (58,357) 65,746
------- ------- ------- ------- ------ ------- -------
Units outstanding at December 31, 1999..... 211,129 293,473 476,525 284,911 26,831 134,264 113,207
======= ======= ======= ======= ====== ======= =======
</TABLE>
F-51
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(2) Summary of Significant Accounting Policies -- Continued
<TABLE>
<CAPTION>
Goldman Sachs
Variable Salomon Brothers
Insurance Variable Series
Trust Fund Inc.
-------------- ----------------
Growth Mid
and Cap Total
Income Value Strategic Return
Fund Fund Bond Fund Fund
------ ------ --------- ------
<S> <C> <C> <C> <C>
Units outstanding at December 31, 1996......... -- -- -- --
----- ------ ------ ---
From capital transactions:
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.................................... -- -- -- --
Transfers (to) from the Guarantee Account.... -- -- -- --
Interfund transfers.......................... -- -- -- --
----- ------ ------ ---
Net increase (decrease) in units from capital
transactions.................................. -- -- -- --
----- ------ ------ ---
Units outstanding at December 31, 1997......... -- -- -- --
----- ------ ------ ---
From capital transactions:
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.................................... -- (33) -- --
Transfers (to) from the Guarantee Account.... -- -- -- --
Interfund transfers.......................... 598 9,410 -- --
----- ------ ------ ---
Net increase (decrease) in units from capital
transactions.................................. 598 9,377 -- --
----- ------ ------ ---
Units outstanding at December 31, 1998......... 598 9,377 -- --
----- ------ ------ ---
From capital transactions:
Net premiums................................. 131 2,015 -- --
Loan interest................................ (9) 256 19 --
Transfers (to) from the general account of GE
Life & Annuity:
Death benefits............................. -- -- -- --
Surrenders................................. -- -- -- --
Loans...................................... -- -- 940 (12)
Cost of insurance and administrative ex-
penses.................................... (52) (803) (203) (6)
Transfers (to) from the Guarantee Account.... -- 6,364 -- --
Interfund transfers.......................... 6,777 11,931 9,347 624
----- ------ ------ ---
Net increase (decrease) in units from capital
transactions.................................. 6,847 19,763 10,103 606
----- ------ ------ ---
Units outstanding at December 31, 1999......... 7,445 29,140 10,103 606
===== ====== ====== ===
</TABLE>
F-52
<PAGE>
GE LIFE & ANNUITY SEPARATE ACCOUNT III
Notes to Financial Statements -- Continued
December 31, 1999
(c) 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.
(d) 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
The premiums transferred from GE Life & Annuity to the Account represent
gross premiums recorded by GE Life & Annuity 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% of the premium payment
from the policy cash value to cover distribution expenses and premiums taxes.
If a policy is surrendered or lapses during the first nine years, a charge is
made by GE Life & Annuity to cover the expenses of issuing the policy. 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 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 GE Life & Annuity for the
cost of insurance. In addition, GE Life & Annuity charges the Account for the
mortality and expense (M&E) risk that GE Life & Annuity assumes. This M&E
charge is deducted daily and equals the effective annual rate of .90% of the
net assets of the Account. GE Life & Annuity also charges the Account for
certain administrative charges which are deducted daily at the effective
annual rate of .40% of the net assets of the Account.
GE Investments Funds, Inc. (the Fund) is an open-end 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 variable
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, and Total Return Funds, 1.00% for the International
Equity Fund, .85% for the Real Estate Securities Fund, .60% for the Global
Income Fund, .55% for the U.S. Equity Fund and .65% for the Value Equity and
Premier Growth Equity Funds. Prior to May 1, 1997, Aon Advisors, Inc. served
as investment advisor to the Fund and was subject to the same compensation
arrangement as GE Investment Management Incorporated.
Certain officers and directors of GE Life & Annuity are also officers and
directors of Capital Brokerage Corporation.
F-53
