COVA VARIABLE ANNUITY ACCOUNT ONE
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996 (Unaudited)
(In thousands of dollars)
ASSETS
INVESTMENTS:
<TABLE>
<CAPTION>
<S> <C>
COVA SERIES TRUST:
Quality Income Portfolio - 5,205,738 shares at a net asset value of $10.39 per share (cost $54,633) $ 54,110
High Yield Portfolio - 2,965,491 shares at a net asset value of $10.32 per share (cost $31,260) 30,606
Growth and Income Portfolio - 1,942,662 shares at a net asset value of $13.27 per share (cost $22,930) 25,780
Money Market Portfolio - 36,859,968 shares at a net asset value of $1.00 per share (cost $35,860) 35,860
Stock Index Portfolio - 5,428,714 shares at a net asset value of $15.07 per share (cost $66,309) 81,816
Bond Debenture Portfolio - 184,590 shares at a net asset value of $10.22 per share (cost $1,874) $ 1,887
Quality Bond Portfolio - 553,900 shares at a net asset value of $9.87 per share (cost $5,533) 5,469
Small Cap Stock Portfolio - 520,520 shares at a net asset value of $10.46 per share (cost 5,324) 5,447
Large Cap Stock Portfolio - 1,505,477shares at a net asset value of $10.19 per share (cost $15,058) 15,334
Select Equity Portfolio - 542,165 shares at a net asset value of $9.89 per share (cost $5,444) 5,364
International Equity Portfolio - 669,434 shares at a net asset value of $10.33 per share (cost $6,751) 6,914
LORD ABBETT SERIES FUND, INC:
Growth and Income Portfolio - 14,642,484 shares at a net asset value of $16.31 per share (cost $202,395) 238,821
Global Equity Portfolio - 210,450 shares at a net asset value of $12.32 per share (cost $2,267) 2,594
GENERAL AMERICAN CAPITAL COMPANY
Money Market Portfolio - 2,810 shares at a net asset value of $16.78 per share (cost $47) 47
------------
TOTAL ASSETS $ 510,049
============
LIABILITIES AND CONTRACT OWNERS' EQUITY
FEES PAYABLE TO COVA FINANCIAL SERVICES LIFE INSURANCE COMPANY $ 59
CONTRACT OWNERS' EQUITY:
Trust Quality Income - 3,610,602 accumulation units at $14.984782 per unit 54,104
Trust High Yield - 1,524,550 accumulation units at $20.073353 per unit 30,603
Trust Growth and Income - 1,661,762 accumulation units at $15.511762 per unit 25,777
Trust Money Market - 3,078,614 accumulation units at $11.6466764 per unit 35,856
Trust Stock Index - 4,750,550 accumulation units at $17.220446 per unit 81,807
Trust Bond Debenture Portfolio - 183,490 accumulation units at $10.279480 per unit 1,886
Trust Quality Bond Portfolio -548,016 accumulation units at $9.978378 per unit 5,468
Trust Small Cap Stock Portfolio - 520,327 accumulation units at $10.467047 per unit 5,446
Trust Large Cap Stock Portfolio - 1,501,012 accumulation units at $10.214745 per unit 15,332
Trust Select Equity Portfolio - 541,014 accumulation units at $9.913792 per unit 5,364
Trust International Equity Portfolio - 667,291 accumulation units at $10.360307 per unit 6,913
Fund Growth and Income - 10,554,642 accumulation units at $22.645982 per unit 238,794
Fund Global Equity - 167,244 accumulation units at $15.505202 per unit 2,593
GACC Money Market Portfolio - 4,700 accumulation units at $10.029473 per unit 47
------------
TOTAL CONTRACT OWNERS' EQUITY 509,990
------------
TOTAL LIABILITIES AND CONTRACT OWNERS' EQUITY $ 510,049
============
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 1996 (Unaudited)
(In thousands of dollars)
COVA
LORD ABBETT
SERIES TRUST
SERIES FUND, INC. GACC
<TABLE>
<CAPTION>
QUALITY HIGH GROWTH & MONEY STOCK BOND QUALITY INTL SMALL
INCOME YIELD INCOME MARKET INDEX DEBENTURE BOND EQUITY CAP STOCK STOCK
--------- ------- --------- ------- ------ ---------- --------- ------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividends $ 1,370 $1,667 $ 208 $ 849 $ 796 $ 15 $ 68 $ 36 $ 14
Total Income 1,370 1,667 208 849 796 15 68 36 14
EXPENSES:
Mortality and Expense
Risk Fee 289 232 142 202 551 2 9 12 12
Administrative Fee 35 28 17 24 66 -- 1 2 2
Total Expenses 324 260 159 226 617 2 10 14 14
Net Investment Income 1,046 1,407 49 623 179 13 58 22 --
NET REALIZED GAIN/(LOSS)
ON INVESTMENTS (13) (201) 53 -- 2,916 5 -- 30 50
NET CHANGE IN UNREALIZED
GAIN/(LOSS) ON INVESTMENTS (1,992) (193) 1,214 -- 4,531 13 (64) 163 123
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS (2,005) (394) 1,267 -- 7,447 18 (64) 193 173
NET INCREASE/(DECREASE) IN
CONTRACT OWNERS' EQUITY
RESULTING FROM OPERATIONS ($959) $1,013 $ 1,316 $ 623 $7,626 $ 31 $ (6) $ 215 $ 173
LARGE SELECT GROWTH & GLOBAL Money
CAP STOCK STOCK EQUITY INCOME EQUITY Market Total
---------------- -------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Dividends $ 69 $ 23 -- -- -- $ 5,115
Total Income 69 23 -- -- -- 5,115
EXPENSES:
Mortality and Expense
Risk Fee 23 12 1,345 16 -- 2,847
Administrative Fee 3 1 162 2 -- 343
Total Expenses 26 13 1,507 18 -- 3,190
Net Investment Income 43 10 (1,507) (18) -- 1,925
NET REALIZED GAIN/(LOSS)
ON INVESTMENTS 1 (14) 75 11 -- 2,913
NET CHANGE IN UNREALIZED
GAIN/(LOSS) ON INVESTMENTS 276 (80) 13,957 175 -- 18,123
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS 277 (94) 14,032 186 -- 21,036
NET INCREASE/(DECREASE) IN
CONTRACT OWNERS' EQUITY
RESULTING FROM OPERATIONS $ 320 ($84) $ 12,525 $ 168 -- $22,961
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT ONE
STATEMENT OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Six Months Ended June 30, 1996 (Unaudited)
(In thousands of dollars)
COVA
LORD ABBETT
SERIES TRUST
SERIES FUND, INC. GACC
__________
<TABLE>
<CAPTION>
QUALITY HIGH GROWTH & MONEY STOCK BOND QUALITY INTL
INCOME YIELD INCOME MARKET INDEX DEBENTURE BOND EQUITY
--------- -------- ---------- --------- --------- ----------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income $ 1,046 $ 1,407 $ 49 $ 623 $ 179 $ 13 $ 58 $ 22
Net Realized Gain/(Loss)
on Investments (13) (201) 53 -- 2,916 5 -- 30
Net Unrealized Gain/(Loss)
on Investments (1,992) (193) 1,214 -- 4,531 13 (64) 163
NET INCREASE/(DECREASE) IN
Contract Owners' Equity
Resulting from Operations (959) 1,013 1,316 623 7,626 31 (6) 215
From Account Unit Transactions:
Contributions by Cova Life -- -- -- -- -- 500 5,000 5,000
Redemptions by Cova Life -- -- -- -- -- (508) -- (1,500)
Proceeds from Units of
the Account Sold 1,237 1,300 1,651 21,822 2,107 1,254 217 1,516
Payments for Units of the
Account Redeemed (1,560) (1,256) (402) (1,237) (2,063) (5) (1) --
Account Transfers 14,133 (6,966) 3,595 (19,480) (11,625) 614 258 1,682
Net Increase/(Decrease) in
Contract Owners' Equity
From Account Unit
Transactions 13,810 (6,922) 4,844 1,105 (11,581) 1,855 5,474 6,698
Net Increase/(Decrease) in
Contract Owners' Equity 12,851 (5,909) 6,160 1,728 (3,955) 1,886 5,468 6,913
Contract Owners' Equity:
Beginning of Period 41,253 36,512 19,617 34,128 85,762 -- -- --
End of Period $ 54,104 $30,603 $ 25,777 $ 35,856 $ 81,807 $ 1,886 $ 5,468 $ 6,913
======== ========== ========= ========= =========== ========= ========
SMALL LARGE SELECT GROWTH & GLOBAL Money
CAP STOCK CAP STOCK EQUITY INCOME EQUITY MARKET TOTAL
----------- ----------- ---------- -------- ------- --------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS:
Net Investment Income $ 0 $ 43 $ 10 ($1,507) ($18) -- $ 1,925
Net Realized Gain/(Loss)
on Investments 50 1 (14) 75 11 -- 2,913
Net Unrealized Gain/(Loss)
on Investments 123 276 (80) 13,957 175 -- 18,123
NET INCREASE/(DECREASE) IN
Contract Owners' Equity
Resulting from Operations 173 320 (84) 12,525 168 -- 22,961
From Account Unit Transactions:
Contributions by Cova Life 5,000 15,000 5,000 -- -- -- 35,500
Redemptions by Cova Life (2,772) (366) (3,435) -- -- -- (8,581)
Proceeds from Units of
the Account Sold 1,475 147 2,185 16,436 77 15 51,439
Payments for Units of the
Account Redeemed (2) -- (2) (5,358) (134) -- (12,020)
Account Transfers 1,572 231 1,700 24,561 (18) 32 10,289
Net Increase/(Decrease) in
Contract Owners' Equity
From Account Unit
Transactions 5,273 15,012 5,448 35,639 (75) 47 76,627
Net Increase/(Decrease) in
Contract Owners' Equity 5,446 15,332 5,364 48,164 93 47 99,588
Contract Owners' Equity:
Beginning of Period -- -- -- 190,630 2,500 -- 410,402
End of Period $ 5,446 $ 15,332 $ 5,364 $ 238,794 $ 2,593 $ 47 $509,990
======== =========== =========== ========== ======== ======= =========
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT ONE
STATEMENT OF CHANGES IN CONTRACT OWNERS' EQUITY
For the Year Ended December 31, 1995
(In thousands of dollars)
VAN KAMPEN MERRITT
LORD ABBETT
SERIES TRUST
SERIES FUND, INC.
<TABLE>
<CAPTION>
QUALITY HIGH GROWTH & MONEY STOCK GROWTH & GLOBAL
INCOME YIELD INCOME MARKET INDEX INCOME EQUITY TOTAL
-------- -------- ---------- --------- ------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
From Operations:
Net Investment Income $ 1,948 $ 2,332 $ 1,371 $ 2,318 $ 2,875 $ 12,501 $ 149 $ 23,495
Net Realized Gain/(Loss)
on Investments 16 (117) 46 _ _ 2,589 383 63 2,980
Net Unrealized Gain
on Investments 3,600 1,786 2,248 110 11,838 22,184 5 41,771
Net Increase in Contract
Owners' Equity
Resulting from
Operations 5,564 4,001 3,665 2,428 17,302 35,069 217 68,246
From Account Unit Transactions:
Redemptions by Cova
Financial Services Life
Insurance Company _ _ _ _ _ _ _ _ _ _ _ _ (132) (132)
Proceeds from Units of
the Account Sold 2,609 3,648 2,179 27,608 2,384 29,458 686 68,572
Payments for Units of the
Account Redeemed 5,174 (2,111) (718) (4,508) 4,200 (18,059) (1,244) (36,014)
Account Transfers 4,321 11,321 3,550 67,278 33,469 29,746 (135) 14,994
Net Increase/(Decrease) in
Contract Owners' Equity
From Account Unit
Transactions 1,756 12,858 5,011 (44,178) 31,653 41,145 (825) 47,420
Net Increase/(Decrease) in
Contract Owners' Equity 7,320 16,859 8,676 (41,750) 48,955 76,214 (608) 115,666
Contract Owners' Equity:
Beginning of Period 33,933 19,653 10,941 75,878 36,807 114,416 3,108 294,736
End of Period $ 41,253 $36,512 $ 19,617 $ 34,128 $85,762 $ 190,630 $ 2,500 $410,402
======== ========== ========= ======= ========== ======== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - QUALITY INCOME PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
FOR THE SIX MONTHS FOR THE YEAR FOR THE YEAR
ENDED 6/30/96 ENDED ENDED
(UNAUDITED) 12/31/95 12/31/94
-------------------- -------------- --------------
<S> <C> <C> <C>
ACCUMULATION UNIT VALUE,
BEGINNING OF PERIOD $ 15.33 $ 13.17 $ 13.97
NET INVESTMENT INCOME .33 .72 .60
NET REALIZED AND UNREALIZED
GAIN/(LOSS) FROM SECURITY
TRANSACTIONS (.68) 1.44 (1.40)
TOTAL FROM INVESTMENT OPERATIONS OPERATIONS1.38(.80)1.22.73.140 O (.35) 2.16 (.80)
- -------------------------------------------------------------------
ACCUMULATION UNIT VALUE,
END OF PERIOD $ 14.98 $ 15.33 $ 13.17
==================== ============== ==============
TOTAL RETURN** (4.50)%* 16.41% 5.70%
CONTRACT OWNERS EQUITY ,
END OF PERIOD (IN THOUSANDS) $ 54,104 $ 41,253 $ 33,933
RATIO OF EXPENSES TO AVERAGE
CONTRACT OWNERS' EQUITY 1.40%* 1.40% 1.40%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE CONTRACT
OWNERS' EQUITY 4.51%* 4.99% 4.48%
NUMBER OF UNITS OUTSTANDING
AT END OF PERIOD 3,610,602 2,690,633 2,576,412
FOR THE YEAR FOR THE YEAR
ENDED ENDED
12/31/93 12/31/92
-------------- --------------
<S> <C> <C>
ACCUMULATION UNIT VALUE,
BEGINNING OF PERIOD $ 12.75 $ 12.02
NET INVESTMENT INCOME 1.00 .64
NET REALIZED AND UNREALIZED
GAIN/(LOSS) FROM SECURITY
TRANSACTIONS .22 .09
TOTAL FROM INVESTMENT OPERATIONS OPERATIONS1.38(.80)1.22.73.140 O 1.22 .73
- -------------------------------------------------------------------
ACCUMULATION UNIT VALUE,
END OF PERIOD $ 13.97 $ 12.75
============== ==============
TOTAL RETURN** 9.50% 6.10%
CONTRACT OWNERS EQUITY ,
END OF PERIOD (IN THOUSANDS) $ 51,111 $ 24,124
RATIO OF EXPENSES TO AVERAGE
CONTRACT OWNERS' EQUITY 1.40% 1.40%
RATIO OF NET INVESTMENT INCOME
TO AVERAGE CONTRACT
OWNERS' EQUITY 8.30% 5.45%
NUMBER OF UNITS OUTSTANDING
AT END OF PERIOD 3,659,656 1,891,499
<FN>
* ANNUALIZED
** INVESTMENT RETURNS DO NOT REFLECT ANY ANNUAL CONTRACT MAINTENANCE FEES
OR WITHDRAWAL CHARGES.
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - HIGH YIELD PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
For the Six Months For the Year For the Year For the Year For the Year
Ended 6/30/96 Ended Ended Ended Ended
(Unaudited) 12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 19.52 $ 16.98 $ 18.02 $ 14.99 $ 12.75
-------------------- -------------- -------------- -------------- --------------
Net Investment Income .79 1.44 1.38 1.80 2.26
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions (.24) 1.10 (2.42) 1.23 (.02)
Total from Investment Operations .55 2.54 (1.04) 3.03 2.24
Accumulation Unit Value,
End of Period $ 20.07 $ 19.52 $ 16.98 $ 18.02 $ 14.99
==================== ============== ============== ============== ==============
Total Return** 5.75%* 14.99% (5.79)% 20.21% 17.53%
Contract Owners Equity ,
End of Period (in thousands) $ 30,603 $ 36,512 $ 19,653 $ 18,846 $ 5,416
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40% 1.40% 1.40% 1.40%
Ratio of Net Investment Income
to Average Contract
Owners' Equity 7.59%* 7.98% 7.92% 13.05% 16.04%
Number of Units Outstanding
at End of Period 1,524,550 1,870,232 1,157,642 1,045,815 361,296
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance fees or
withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - GROWTH & INCOME PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
FOR THE SIX FOR THE PERIOD FROM
MONTHS ENDED FOR THE YEAR FOR THE YEAR FOR THE YEAR 5/1/92 (COMMENCEMENT
6/30/96 ENDED ENDED ENDED OF OPERATIONS)
(UNAUDITED) 12/31/95 12/31/94 12/31/93 THROUGH 12/31/92
<S> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE,
BEGINNING OF PERIOD $ 14.61 $ 11.20 $ 11.92 $ 10.47 $ 10.00
-------------- -------------- -------------- -------------- ----------------------
NET INVESTMENT INCOME .02 1.02 .19 .54 .19
NET REALIZED AND UNREALIZED
GAIN/(LOSS) FROM SECURITY
TRANSACTIONS .88 2.39 (.91) .91 .28
TOTAL FROM INVESTMENT OPERATIONS .90 3.41 (.72) 1.45 .47
ACCUMULATION UNIT VALUE,
END OF PERIOD $ 15.51 $ 14.61 $ 11.20 $ 11.92 $ 10.47
============== ============== ============== ============== ======================
TOTAL RETURN** 12.82%* 30.49% (6.07)% 13.84% 7.09%*
CONTRACT OWNERS EQUITY ,
END OF PERIOD (IN THOUSANDS) $ 25,777 $ 19,617 $ 10,941 $ 6,528 $ 2,627
RATIO OF EXPENSES TO AVERAGE
CONTRACT OWNERS' EQUITY 1.40%* 1.40% 1.40% 1.40% 1.40%*
RATIO OF NET INVESTMENT INCOME
TO AVERAGE CONTRACT
OWNERS' EQUITY .43%* 9.92% 2.05% 7.54% 3.82%*
NUMBER OF UNITS OUTSTANDING
AT END OF PERIOD 1,661,762 1,342,833 977,209 574,643 250,919
<FN>
* ANNUALIZED
** INVESTMENT RETURNS DO NOT REFLECT ANY ANNUAL CONTRACT MAINTENANCE FEES OR
WITHDRAWAL CHARGES.
</TABLE>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - MONEY MARKET PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
For the Six Months For the Year For the Year For the Year For the Year
Ended 6/30/96 Ended Ended Ended Ended
(Unaudited) 12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 11.43 $ 10.90 $ 10.61 $ 10.46 $ 10.21
-------------------- -------------- -------------- -------------- --------------
Net Investment Income .22 .50 .30 .19 .25
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions -- .03 (.01) (.04) --
Total from Investment Operations .22 .53 .29 .15 .25
Accumulation Unit Value,
End of Period $ 11.65 $ 11.43 $ 10.90 $ 10.61 $ 10.46
==================== ============== ============== ============== ==============
Total Return** 3.94%* 4.85% 2.70% 1.45% 2.44%
Contract Owners Equity ,
End of Period (in thousands) $ 35,856 $ 34,128 $ 75,878 $ 6,552 $ 4,031
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40% 1.40% 1.40% 1.40%
Ratio of Net Investment Income
to Average Contract
Owners' Equity 3.85%* 4.48% 2.90% 1.78% 2.46%
Number of Units Outstanding
at End of Period 3,078,614 2,987,132 6,963,421 617,575 385,448
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - STOCK INDEX PORTFOLIO
(MANAGED BY VAN KAMPEN AMERICAN CAPITAL INVESTMENT ADVISORY CORP.)
For the Six Months For the Year For the Year For the Year For the Year
Ended 6/30/96 Ended Ended Ended Ended
(Unaudited) 12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 15.77 $ 11.68 $ 11.87 $ 11.05 $ 10.55
-------------------- -------------- -------------- -------------- --------------
Net Investment Income .05 .51 .37 .22 .52
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions 1.40 3.58 (.56) .60 (.02)
Total from Investment Operations 1.45 4.09 (.19) .82 .50
Accumulation Unit Value,
End of Period $ 17.22 $ 15.77 $ 11.68 $ 11.87 $ 11.05
==================== ============== ============== ============== ==============
Total Return** 19.30%* 35.06% (1.58)% 7.35% 4.75%
Contract Owners Equity ,
End of Period (in thousands) $ 81,807 $ 85,762 $ 36,807 $ 91,269 $ 34,979
Ratio of Expenses to Average
Contract Owners' Equity 1.40%* 1.40% 1.40% 1.40% 1.40%
Ratio of Net Investment Income
to Average Contract
Owners' Equity .40%* 4.85% 2.10% 2.99% 10.02%
Number of Units Outstanding
at End of Period 4,750,550 5,436,980 3,151,443 7,691,151 3,164,251
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - SELECT EQUITY PORTFOLIO (MANAGED BY J.P. MORGAN INVESTMENT
MANAGEMENT, INC.)
For the Period From 4/01/96
(Commencement of Operations)
Through 6/30/96 (Unaudited)
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.00
-----------------------------
Net Investment Income .02
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions (.11)
Total from Investment Operations (.09)
Accumulation Unit Value,
End of Period $ 9.91
=============================
Total Return** (3.41)%*
Contract Owners Equity ,
End of Period (in thousands) $ 5,364
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity .67%*
Number of Units Outstanding
at End of Period 541,014
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - LARGE CAP STOCK PORFOLIO (MANAGED BY J.P. MORGAN
INVESTMENT MANAGEMENT, INC.)
For the Period From 4/01/96
(Commencement of Operations)
Through 6/30/96 (Unaudited)
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.00
-----------------------------
Net Investment Income .03
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions .18
Total from Investment Operations .21
Accumulation Unit Value,
End of Period $ 10.21
=============================
Total Return** 8.90%*
Contract Owners Equity ,
End of Period (in thousands) $ 15,332
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 1.19%*
Number of Units Outstanding
at End of Period 1,501,012
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT ONEHIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - SMALL CAP STOCK PORTFOLIO (MANAGED BY J.P. MORGAN
INVESTMENT MANAGEMENT, INC.)
For the Period From 4/01/96
(Commencement of Operations)
Through 6/30/96 (Unaudited)
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.00
-----------------------------
Net Investment Income .00
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions .47
Total from Investment Operations .47
Accumulation Unit Value,
End of Period $ 10.47
=============================
Total Return** 20.09%*
Contract Owners Equity ,
End of Period (in thousands) $ 5,446
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity (.03)%*
Number of Units Outstanding
at End of Period 520,327
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - INTERNATIONAL EQUITY PORTFOLIO (MANAGED BY J.P. MORGAN
INVESTMENT MANAGEMENT, INC.)
For the Period From 4/01/96
(Commencement of Operations)
Through 6/30/96 (Unaudited)
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.00
-----------------------------
Net Investment Income .03
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions .33
Total from Investment Operations .36
Accumulation Unit Value,
End of Period $ 10.36
=============================
Total Return** 15.25%*
Contract Owners Equity ,
End of Period (in thousands) $ 6,913
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 1.61%*
Number of Units Outstanding
at End of Period 667,291
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - QUALITY BOND PORTFOLIO (MANAGED BY J.P. MORGAN INVESTMENT
MANAGEMENT, INC.)
For the Period From 4/01/96
(Commencement of Operations)
Through 6/30/96 (Unaudited)
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.00
-----------------------------
Net Investment Income .10
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions (.12)
Total from Investment Operations (.02)
Accumulation Unit Value,
End of Period $ 9.98
=============================
Total Return** (.86)%*
Contract Owners Equity ,
End of Period (in thousands) $ 5,468
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 4.73%*
Number of Units Outstanding
at End of Period 548,016
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
COVA SERIES TRUST - BOND DEBENTURE PORTFOLIO (MANAGED BY LORD, ABBETT & CO.)
For the Period From 4/01/96
(Commencement of Operations)
Through 6/30/96 (Unaudited)
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.00
-----------------------------
Net Investment Income .06
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions .22
Total from Investment Operations .28
Accumulation Unit Value,
End of Period $ 10.28
=============================
Total Return** 11.69%*
Contract Owners Equity ,
End of Period (in thousands) $ 1,886
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity 5.77%*
Number of Units Outstanding
at End of Period 183,490
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
GENERAL AMERICAN CAPITAL COMPANY - MONEY MARKET PORTFOLIO
For the Period From 6/03/96
(Commencement of Operations)
Through 6/30/96 (Unaudited)
<S> <C>
Accumulation Unit Value,
Beginning of Period $ 10.00
-----------------------------
Net Investment Income (.01)
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions .04
Total from Investment Operations .03
Accumulation Unit Value,
End of Period $ 10.03
=============================
Total Return** 3.65%*
Contract Owners Equity ,
End of Period (in thousands) $ 47
Ratio of Expenses to Average
Contract Owners' Equity 1.40%*
Ratio of Net Investment Income
to Average Contract
Owners' Equity (1.40)%*
Number of Units Outstanding
at End of Period 4,700
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
LORD ABBETT SERIES FUND, INC. - GROWTH AND INCOME PORTFOLIO
For the Six Months For theYear For the Year For the Year For the Year
Ended 6/30/96 Ended Ended Ended Ended
(Unaudited) 12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value,
Beginning of Period $ 21.31 $ 16.64 $ 16.42 $ 14.50 $ 12.73
-------------------- ------------- -------------- -------------- --------------
Net Investment Income (.15) 1.37 .76 .88 1.06
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions 1.49 3.30 (.54) 1.04 .71
Total from Investment Operations 1.34 4.67 .22 1.92 1.77
-------------------- ------------- -------------- -------------- --------------
Accumulation Unit Value,
- ---------------------------------
End of Period $ 22.65 $ 21.31 $ 16.64 $ 16.42 $ 14.50
- --------------------------------- ==================== ============= ============== ============== ==============
Total Return** 13.05%* 28.03% 1.32% 13.24% 13.98%
- --------------------------------- -------------------- ------------- -------------- -------------- --------------
Contract Owners Equity ,
- ---------------------------------
End of Period (in thousands) $ 238,794 $ 190,630 $ 114,416 $ 82,033 $ 37,146
- --------------------------------- -------------------- ------------- -------------- -------------- --------------
Ratio of Expenses to Average
- ---------------------------------
Contract Owners' Equity 1.40%* 1.40% 1.40% 1.40% 1.40%
- --------------------------------- -------------------- ------------- -------------- -------------- --------------
Ratio of Net Investment Income
- ---------------------------------
to Average Contract
- ---------------------------------
Owners' Equity (1.40)%* 8.57% 5.40% 8.12% 10.59%
- --------------------------------- -------------------- ------------- -------------- -------------- --------------
Number of Units Outstanding
- ---------------------------------
at End of Period 10,544,642 8,947,108 6,875,139 4,994,582 2,560,999
- --------------------------------- -------------------- ------------- -------------- -------------- --------------
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
FINANCIAL HIGHLIGHTS
Financial Highlights for each accumulation unit outstanding throughout the
period
per sub-account are presented below:
<TABLE>
<CAPTION>
LORD ABBETT SERIES FUND, INC. - GLOBAL EQUITY PORTFOLIO
For the Six Months For the Year For the Year For the Year For the Year
-------------------- -------------- -------------- -------------- --------------
Ended 6/30/96 Ended Ended Ended Ended
-------------------- -------------- -------------- -------------- --------------
(Unaudited) 12/31/95 12/31/94 12/31/93 12/31/92
-------------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
Accumulation Unit Value,
- ---------------------------------
Beginning of Period $ 14.52 $ 13.33 $ 13.29 $ 10.64 $ 10.97
- --------------------------------- -------------------- -------------- -------------- -------------- --------------
Net Investment Income (0.11) .91 1.45 .24 .18
Net Realized and Unrealized
Gain/(Loss) from Security
Transactions 1.10 .28 (1.41) 2.41 (.51)
Total from Investment Operations .99 1.19 .04 2.65 (.33)
-------------------- -------------- -------------- -------------- --------------
Accumulation Unit Value,
- ---------------------------------
End of Period $ 15.51 $ 14.52 $ 13.33 $ 13.29 $ 10.64
- --------------------------------- ==================== ============== ============== ============== ==============
Total Return** 14.15%* 8.91% .27% 24.91% (2.98)%
- --------------------------------- -------------------- -------------- -------------- -------------- --------------
Contract Owners Equity ,
- ---------------------------------
End of Period (in thousands) $ 2,593 $ 2,500 $ 3,108 $ 3,635 $ 3,249
- --------------------------------- -------------------- -------------- -------------- -------------- --------------
Ratio of Expenses to Average
- ---------------------------------
Contract Owners' Equity 1.40%* 1.40% 1.40% 1.40% 1.40%
- --------------------------------- -------------------- -------------- -------------- -------------- --------------
Ratio of Net Investment Income
- ---------------------------------
to Average Contract
- ---------------------------------
Owners' Equity (1.40)%* 5.36% 9.78% 1.88% 1.38%
- --------------------------------- -------------------- -------------- -------------- -------------- --------------
Number of Units Outstanding
- ---------------------------------
at End of Period 167,244 172,206 233,186 273,399 305,314
- --------------------------------- -------------------- -------------- -------------- -------------- --------------
<FN>
* Annualized
** Investment returns do not reflect any annual contract maintenance
fees or withdrawal charges.
</TABLE>
See accompanying notes to financial statements.
COVA VARIABLE ANNUITY ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1996 (Unaudited)
and for the year ended December 31, 1995
1. Organization:
Cova Variable Annuity Account One, (the "Separate Account") is a separate
investment account established by a resolution of the Board of Directors of
Cova Financial Services Life Insurance Company ("Cova Life"). The Separate
Account operates as a Unit Investment Trust under the Investment Company Act
of 1940.
The Separate Account is divided into sub-accounts, with the assets of each
sub-account invested in the Cova Series Trust (formerly Van Kampen Merritt
Series Trust)("Trust"), the Lord Abbett Series Fund, Inc. ("Fund") or General
American Capital Company (GACC). The Trust consists of eleven portfolios of
which five portfolios are managed by Van Kampen American Capital Investment
Advisory Corp., five are managed by J.P. Morgan Investment Management, Inc.
and one portfolio is managed by Lord, Abbett & Co. During 1996 and prior, the
Trust portfolios available for investment were the Quality Income, High Yield,
Growth and Income, Money Market, Stock Index, Select Equity, Large Cap Stock,
Small Cap Stock, International Equity, Quality Bond, and Bond Debenture
Portfolios. The Fund had two portfolios available for investment during and
prior to 1996; the Growth and Income Global Equity Portfolios. GACC had the
Money Market Portfolio available for investment in 1996. Not all portfolios
of the Trust, Fund and GACC are available for investment depending upon the
nature and specific terms of the different contracts currently being offered
for sale. The Trust, Fund and GACC are all diversified, open-end, management
investment companies which are intended to meet differing investment
objectives.
The Trust Quality Income Portfolio invests in U.S. Government issued debt
obligations and in various investment-grade debt instruments, including
mortgage pass-through certificates and collateralized mortgage obligations.
The Trust High Yield Portfolio invests primarily in medium and lower-grade
debt securities and futures and options contracts. The Trust Growth and
Income Portfolio invests primarily in common stocks and futures and options
contracts. The Trust Money Market and GACC Money Market Portfolios invest in
short-term money market instruments. The Trust Stock Index Portfolio invests
in common stocks, stock index futures and options, and short-term securities.
The Trust Select Equity and Large Cap Stock Portfolios invest in stocks of
large and medium-sized companies holding from 60 to 90 and from 225 to 250
stocks, respectively. The Trust Small Cap Stock Portfolio invests primarily
in the common stock of small U.S. companies. The Trust International Equity
Portfolio invests primarily in stocks of established companies based in
developed countries. The Trust Quality Bond Portfolio investment objective is
to provide a high total return consistent with moderate risk of capital and
maintenance of liquidity. The Trust Bond Debenture Portfolio invests
primarily in convertible and discount debt securities. The Fund Growth and
Income Portfolio invests in common stocks. The Fund Global Equity Portfolio
invests primarily in both domestic and foreign common stocks and forward
currency contracts.
In order to satisfy diversification requirements and provide for optimum
policyholder returns, Cova Life has made periodic contributions to the Trust
and Fund to provide for the initial purchases of investments. In return, Cova
Life has been credited with accumulation units of the Separate Account. As
additional funds are received through policyholder deposits, Cova Life has, at
its discretion and without adversely impacting the investment operations of
the Trust and Fund, removed its capital investment in the Separate Account by
liquidating accumulation units. Since inception, $48,700,000 has been
contributed to the Separate Account by Cova Life of which, after subsequent
redemptions, $27,621,951 remains as of June 30, 1996.
2. SIGNIFICANT ACCOUNTING POLICIES:
A. INVESTMENT VALUATION
Investments in shares of the Trust, Fund and GACC are carried in the statement
of assets and liabilities at the underlying net asset value of the Trust, Fund
and GACC. The net asset value of the Trust, Fund and GACC has been determined
on the market value basis and is valued daily by the Trust, Fund and GACC
investment managers. Realized gains and losses are calculated by the average
cost method.
COVA VARIABLE ANNUITY ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1996 (Unaudited)
and for the year ended December 31, 1995
B. REINVESTMENT OF DIVIDENDS
Dividends received from net investment income and net realized capital gains
are reinvested in additional shares of the portfolio of the Trust, Fund or
GACC making the distribution or, at the election of the Separate Account,
received in cash. Dividend income and capital gain distributions are recorded
as income on the ex-dividend date.
C. FEDERAL INCOME TAXES
Operations of the Separate Account form a part of Cova Life, which is taxed as
a "Life Insurance Company" under the Internal Revenue Code ("Code"). Under
current provisions of the Code, no Federal income taxes are payable by Cova
Life with respect to earnings of the Separate Account.
Under the principles set forth in Internal Revenue Ruling 81-225 and Section
817(h) of the Code and regulations thereunder, Cova Life believes that it will
be treated as the owner of the assets invested in the Separate Account for
Federal income tax purposes, with the result that earnings and gains, if any,
derived from those assets will not be included in a contract owners gross
income until amounts are withdrawn or received pursuant to an Optional Payment
Plan.
3. CONTRACT CHARGES:
There are no deductions made from purchase payments for sales charges at the
time of purchase. However, if all or a portion of the contract value is
withdrawn, a withdrawal charge is calculated and deducted from the contract
value. The withdrawal charge is imposed on withdrawals of contract values
attributable to purchase payments within five years after receipt and is equal
to 5% of the purchase payment withdrawn. After the first contract
anniversary, provided that the contract value prior to withdrawal exceeds
$5,000, an owner may make a withdrawal each contract year of up to 10% of the
aggregate purchase payments free from withdrawal charges. An annual contract
maintenance charge of $30 is imposed on all contracts with contract values
less than $50,000 on their policy anniversary. The charge covers the cost of
contract administration for the previous year and is prorated between the
sub-accounts to which the contract value is allocated.
Mortality and expense risks assumed by Cova Life are compensated by a charge
equivalent to an annual rate of 1.25% of the value of net assets. The
mortality risks assumed by Cova Life arise from its contractual obligation to
make annuity payments after the annuity date for the life of the annuitant,
and to waive the withdrawal charge in the event of the death of the contract
owner.
In addition, the Separate Account bears certain administration expenses, which
are equivalent to an annual rate of .15% of net assets. These charges cover
the cost of establishing and maintaining the contracts and Separate Account.
Cova Life currently advances any premium taxes due at the time purchase
payments are made and then deducts premium taxes from the contract value at
the time annuity payments begin or upon withdrawal if Cova Life is unable to
obtain a refund. Cova Life, however, reserves the right to deduct premium
taxes when incurred.
4. ACCOUNT TRANSFERS:
Subject to certain restrictions, the contract owner may transfer all or a part
of the accumulated value of the contract among other offered and available
account options of the Separate Account and fixed rate annuities of Cova Life.
If more than 12 transfers have been made in the contract year, a transfer fee
of $25 per transfer or, if less, 2% of the amount transferred will be deducted
from the account value. If the owner is participating in the Dollar Cost
Averaging program, such related transfers are not taken into account in
determining any transfer fee.
COVA VARIABLE ANNUITY ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1996 (Unaudited)
and for the year ended December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS:
The table below summarizes realized and unrealized gains and losses on
investments:
<TABLE>
<CAPTION>
REALIZED GAIN/(LOSS) ON INVESTMENTS (IN THOUSANDS OF DOLLARS):
For the Six Months For the Year
-------------------- --------------
Ended 6/30/96 Ended
-------------------- --------------
(Unaudited) 12/31/95
-------------------- --------------
<S> <C> <C>
Trust Quality Income Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 8,959 $ 21,223
- ------------------------------------------ -------------------- --------------
Aggregate Cost 8,972 21,207
- ------------------------------------------ -------------------- --------------
Net Realized Gain on Investments $ (13) $ 16
- ------------------------------------------ -------------------- ==============
Trust High Yield Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 21,062 $ 1,957
- ------------------------------------------ -------------------- --------------
Aggregate Cost 21,263 2,074
- ------------------------------------------ -------------------- --------------
Net Realized Loss on Investments $ (201) $ (117)
- ------------------------------------------ ==================== ==============
Trust Growth and Income Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 487 $ 1,127
- ------------------------------------------ -------------------- --------------
Aggregate Cost 434 1,082
- ------------------------------------------ -------------------- --------------
Net Realized Gain on Investments $ 53 $ 46
- ------------------------------------------ ==================== ==============
Trust Money Market Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 22,271 $ 71,027
- ------------------------------------------ -------------------- --------------
Aggregate Cost 22,271 71,027
- ------------------------------------------ -------------------- --------------
Net Realized Gain/(Loss) on Investments -- --
- ------------------------------------------ ==================== ==============
Trust Stock Index Portfolio:
- ------------------------------------------
Aggregate Proceeds From Sales $ 16,626 $ 19,097
- ------------------------------------------ -------------------- --------------
Aggregate Cost 13,710 16,508
- ------------------------------------------ -------------------- --------------
Net Realized Gain on Investments $ 2,916 $ 2,589
- ------------------------------------------ ==================== ==============
Trust Select Equity Portfolio
- ------------------------------------------
Aggregate Proceeds From Sales $ 1,635
- ------------------------------------------ --------------------
Aggregate Cost 1,649 N/A
- ------------------------------------------ -------------------- --------------
Net Realized Loss on Investments $ (14)
- ------------------------------------------ ====================
</TABLE>
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1996 (Unaudited)
and for the year ended December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS, CONTINUED:
<TABLE>
<CAPTION>
REALIZED GAIN/(LOSS) ON INVESTMENTS (IN THOUSANDS OF DOLLARS):
For the Six Months For the Year
-------------------- -------------
Ended 6/30/96 Ended
-------------------- -------------
(Unaudited) 12/31/95
-------------------- -------------
<S> <C> <C>
Trust Large Cap Stock Portfolio
- ------------------------------------
Aggregate Proceeds From Sales $ 90
- ------------------------------------ --------------------
Aggregate Cost 89 N/A
- ------------------------------------ --------------------
Net Realized Gain on Investments $ 1
====================
Trust Small Cap Stock Portfolio $ 1,675
Aggregate Proceeds From Sales 1,625 N/A
--------------------
Aggregate Cost $ 50
====================
Net Realized Gain on Investments
Trust International Equity Portfolio
Aggregate Proceeds From Sales $ 1,190
Aggregate Cost 1,160 N/A
--------------------
Net Realized Gain on Investments $ 30
====================
Trust Quality Bond Portfolio
Aggregate Proceeds From Sales $ 34
Aggregate Cost 34 N/A
--------------------
Net Realized Gain on Investments --
====================
Trust Bond Debenture Portfolio
Aggregate Proceeds From Sales $ 475
Aggregate Cost 470 N/A
--------------------
Net Realized Gain on Investments $ 5
====================
Fund Growth and Income Portfolio:
Aggregate Proceeds From Sales $ 476 $ 4,043
Aggregate Cost 401 3,660
Net Realized Gain on Investments $ 75 $ 383
==================== =============
Fund Global Equity Portfolio:
Aggregate Proceeds From Sales $ 110 $ 946
Aggregate Cost 99 883
Net Realized Gain on Investments $ 11 $ 63
==================== =============
</TABLE>
VARIABLE ANNUITY ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1996 (Unaudited)
and for the year ended December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS, CONTINUED:
<TABLE>
<CAPTION>
REALIZED GAIN/(LOSS) ON INVESTMENTS (IN THOUSANDS OF DOLLARS):
For the Six Months For the Year
-------------------- --------------
Ended 6/30/96 Ended
-------------------- --------------
(Unaudited) 12/31/95
-------------------- --------------
<S> <C> <C>
GACC Money Market Portfolio
- ----------------------------------------------------------------
Aggregate Proceeds From Sales $ 1
- ---------------------------------------------------------------- --------------------
Aggregate Cost 1 N/A
- ---------------------------------------------------------------- --------------------
Net Realized Gain on Investments --
====================
UNREALIZED GAIN/(LOSS) ON INVESTMENTS (IN THOUSANDS OF DOLLARS):
- ----------------------------------------------------------------
Trust Quality Income Portfolio:
End of Period $ (523) $ 1,469
Beginning of Period 1,469 (2,131)
Net Change in Unrealized Gain/(Loss) on Investments $ (1,992) $ 3,600
==============
Trust High Yield Portfolio:
End of Period $ (654) $ (461)
Beginning of Period (461) (2,247)
Net Change in Unrealized Gain/(Loss) on Investments $ (193) $ 1,786
==============
Trust Growth and Income Portfolio:
End of Period $ 2,850 $ 1,636
Beginning of Period 1,636 (612)
Net Change in Unrealized Gain/(Loss) on Investments $ 1,214 $ 2,248
==================== ==============
Trust Money Market Portfolio:
End of Period $ 35,860 --
Beginning of Period 35,860 (110)
Net Change in Unrealized Gain/(Loss) on Investments -- $ 110
==================== ==============
Trust Stock Index Portfolio:
End of Period $ 15,507 $ 10,976
Beginning of Period 10,976 (862)
Net Change in Unrealized Gain/(Loss) on Investments $ 4,531 $ 11,838
==================== ==============
Trust Select Equity Portfolio:
End of Period $ (80)
Beginning of Period -- N/A
Net Change in Unrealized Gain/(Loss) on Investments $ (80)
====================
</TABLE>
COVA VARIABLE ANNUITY ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1996 (Unaudited)
and for the year ended December 31, 1995
5. GAIN/(LOSS) ON INVESTMENTS, CONTINUED:
<TABLE>
<CAPTION>
UNREALIZED GAIN/(LOSS) ON INVESTMENT (IN THOUSANDS OF DOLLARS):
For the Six Months For the Year
Ended 6/30/96 Ended
(Unaudited) 12/31/95
<S> <C> <C>
Trust Large Cap Portfolio:
End of Period $ 276
Beginning of Period -- N/A
Net Change in Unrealized Gain/(Loss) on Investments $ 276
====================
Trust Small Cap Portfolio:
End of Period $ 123
Beginning of Period -- N/A
Net Change in Unrealized Gain/(Loss) on Investments $ 123
====================
Trust International Equity Portfolio:
End of Period $ 163
Beginning of Period -- N/A
Net Change in Unrealized Gain/(Loss) on Investments $ 163
====================
Trust Quality Bond Portfolio:
End of Period $ (64)
Beginning of Period -- N/A
Net Change in Unrealized Gain/(Loss) on Investments $ (64)
====================
Trust Bond Debenture Portfolio:
End of Period $ 13
Beginning of Period -- N/A
Net Change in Unrealized Gain/(Loss) on Investments $ 13
====================
Fund Growth and Income Portfolio:
End of Period $ 36,426 $ 22,469
Beginning of Period 22,469 285
Net Change in Unrealized Gain/(Loss) on Investments $ 13,957 $ 22,184
==================== =============
Fund Global Equity Portfolio:
End of Period $ 327 $ 152
Beginning of Period 152 147
Net Change in Unrealized Gain/(Loss) on Investments $ 175 $ 5
==================== =============
GACC Money Market Portfolio
End of Period -- N/A
Beginning of Period --
Net Change in Unrealized Gain/(Loss) on Investments --
====================
</TABLE>
<PAGE>
COVA VARIABLE ANNUITY ACCOUNT ONE
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1996 (Unaudited)
and for the year ended December 31, 1995
6. ACCOUNT UNIT TRANSACTIONS:
The change in the number of accumulation units resulting from account unit
transactions is as follows:
COVA
LORD ABBETT
SERIES TRUST
SERIES FUND, INC. GACC
_____________________________________________________________________________
______________ ______________ _______
<TABLE>
__
<CAPTION>
QUALITY HIGH GROWTH & MONEY STOCK BOND QUALITY INTL
INCOME YIELD INCOME MARKET INDEX DEBENTURE BOND EQUITY
---------- ---------- ---------- ----------- ---------- ---------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balances at
December 31, 1994 2,576,412 1,157,642 977,209 6,963,421 3,151,443 N/A N/A N/A
Redemptions by Cova Life -- -- -- -- --
Units Sold 181,275 195,356 162,687 2,450,650 163,890
Units Redeemed (362,174) (114,779) (55,487) (405,521) (300,704)
Units Transferred 295,120 632,013 258,424 (6,021,418) 2,422,351
Balance at
December 31, 1995 2,690,633 1,870,232 1,342,833 2,987,132 5,436,980 N/A N/A N/A
Contributions by Cova Life -- -- -- -- -- 50,000 500,000 500,000
Redemptions by Cova Life -- -- -- -- -- (50,000) -- (145,617)
Units Sold 82,515 65,480 108,657 1,888,137 126,982 123,347 21,986 148,011
Units Redeemed (103,688) (63,220) (26,529) (106,954) (124,136) (452) (38) (79)
Units Transferred 941,142 (347,942) 236,801 (1,689,701) (689,276) 60,595 26,068 164,976
Balance at June 30, 1996
(Unaudited) 3,610,602 1,524,550 1,661,762 3,078,614 4,750,550 183,490 548,016 667,291
SMALL LARGE SELECT GROWTH & GLOBAL MONEY
CAP STOCK CAP STOCK EQUITY INCOME EQUITY MARKET TOTAL
---------- ---------- --------- ----------- -------- ------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balances at
December 31, 1994 N/A N/A N/A 6,875,139 233,186 N/A 2,193,445
Redemptions by Cova Life -- (10,000) (10,000)
Units Sold 1,505,688 50,282 4,709,828
Units Redeemed (940,462) (91,135) 2,270,262
Units Transferred 1,506,743 (10,127) (916,893)
Balance at
December 31, 1995 N/A N/A N/A 8,947,108 172,206 N/A 23,447,124
Contributions by Cova Life 500,000 1,500,000 500,000 -- -- -- 3,550,000
Redemptions by Cova Life (263,687) (36,005) (345,326) -- -- -- (840,635)
Units Sold 138,080 14,366 217,785 736,492 5,137 1,488 3,678,463
Units Redeemed (118) -- (147) (240,032) (9,106) -- (674,499)
Units Transferred 146,052 22,651 168,702 1,101,074 (993) 3,212 143,361
Balance at June 30, 1996
(Unaudited) 520,327 1,501,012 541,014 10,544,642 167,244 4,700 29,303,814
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