(2_FIDELITY_LOGOS)(registered trademark)
FIDELITY(registered trademark) INVESTMENTS
VARIABLE LIFE ACCOUNT I
ANNUAL REPORT
DECEMBER 31, 1999
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION OF FIDELITY INVESTMENTS LIFE
INSURANCE COMPANY VARIABLE LIFE OWNERS. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO PROSPECTIVE INVESTORS UNLESS PRECEDED OR
ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. NEITHER FIDELITY INVESTMENTS
LIFE INSURANCE COMPANY NOR FIDELITY BROKERAGE SERVICES, INC. IS A
BANK, AND NEITHER THE LIFE INSURANCE POLICIES NOR MUTUAL FUND SHARES
ARE BACKED OR GUARANTEED BY ANY BANK OR INSURED BY THE FDIC.
STATEMENT OF ASSETS AND LIABILITIES
FIDELITY INVESTMENTS VARIABLE LIFE ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
DECEMBER 31, 1999
ASSETS
Investments at current market
value:
Variable Insurance Products
Fund (VIP)
Money Market Portfolio - $ 286,968
286,968 shares (cost
$286,968)
High Income Portfolio - 167,899
14,845 shares (cost $192,354)
Equity-Income Portfolio - 1,593,098
61,964 shares (cost
$1,426,449)
Growth Portfolio - 56,667 3,112,698
shares (cost $2,228,897)
Overseas Portfolio - 15,817 434,017
shares (cost $338,818)
Variable Insurance Products
Fund II (VIP II)
Investment Grade Bond 284,985
Portfolio - 23,436 shares
(cost $282,615)
Asset Manager Portfolio - 185,244
9,922 shares (cost $154,807)
Total Assets $ 6,064,909
NET ASSETS COMPRISED OF:
Variable Life Contracts $ 6,065,052
Payable to Variable Account (143)
by Fidelity Investments Life
Insurance Company
NET ASSETS $ 6,064,909
FIDELITY INVESTMENTS VARIABLE LIFE ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
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SUBACCOUNTS INVESTING IN:
VIP - MONEY MARKET VIP - HIGH INCOME
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 18,495 $ 18,404 $ 17,523 $ 17,704
EXPENSES:
Mortality risk, expense risk 3,119 2,933 1,636 1,945
and administrative charges
Net investment income (loss) 15,376 15,471 15,887 15,759
Realized gain (loss) on sale 0 0 696 (232)
of fund shares
Realized gain distributions 0 0 655 11,250
Unrealized appreciation 0 0 (3,679) (36,133)
(depreciation)
Net increase in net assets $ 15,376 $ 15,471 $ 13,559 $ (9,356)
from operations
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VIP - EQUITY-INCOME VIP - GROWTH
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 27,074 $ 26,132 $ 4,201 $ 8,637
EXPENSES:
Mortality risk, expense risk 15,203 15,575 22,199 14,757
and administrative charges
Net investment income (loss) 11,871 10,557 (17,998) (6,120)
Realized gain (loss) on sale 120,969 155,409 196,242 232,706
of fund shares
Realized gain distributions 59,848 92,999 264,131 225,912
Unrealized appreciation (103,461) (72,355) 392,405 140,966
(depreciation)
Net increase in net assets $ 89,227 $ 186,610 $ 834,780 $ 593,464
from operations
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VIP - OVERSEAS VIP II - INVESTMENT
GRADE BOND
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 5,736 $ 6,535 $ 10,706 $ 10,825
EXPENSES:
Mortality risk, expense risk 2,800 4,644 2,246 2,001
and administrative charges
Net investment income (loss) 2,936 1,891 8,460 8,824
Realized gain (loss) on sale (378) (31,690) 431 423
of fund shares
Realized gain distributions 9,252 19,259 3,359 1,284
Unrealized appreciation 111,238 (21,186) (16,958) 7,536
(depreciation)
Net increase in net assets $ 123,048 $ (31,726) $ (4,708) $ 18,067
from operations
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VIP II - ASSET MANAGER TOTAL
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 5,141 $ 5,222 $ 88,876 $ 93,459
EXPENSES:
Mortality risk, expense risk 1,447 1,294 48,650 43,149
and administrative charges
Net investment income (loss) 3,694 3,928 40,226 50,310
Realized gain (loss) on sale 4,493 5,949 322,453 362,565
of fund shares
Realized gain distributions 6,512 15,668 343,757 366,372
Unrealized appreciation 2,203 (4,249) 381,748 14,579
(depreciation)
Net increase in net assets $ 16,902 $ 21,296 $ 1,088,184 $ 793,826
from operations
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FIDELITY INVESTMENTS VARIABLE LIFE ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
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SUBACCOUNTS INVESTING IN:
VIP - MONEY MARKET VIP - HIGH INCOME
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 15,376 $ 15,471 $ 15,887 $ 15,759
Net realized gain (loss) on 0 0 1,351 11,018
investments
Unrealized appreciation 0 0 (3,679) (36,133)
(depreciation)
Net increase (decrease) in 15,376 15,471 13,559 (9,356)
net assets from operations
Transfers between (16,737) 39,732 (36,098) (32,776)
subaccounts, net
Transfers for contract (11,052) (1,356) 0 (15,937)
terminations
Transfers for cost of (3,514) (3,623) (1,161) (1,379)
insurance
Other transfers to (from) 16,378 (14,990) 88 1,578
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in (14,925) 19,763 (37,171) (48,514)
net assets from contract
transactions
Retained in (returned from) (2,009) (529) (890) (491)
Variable Life Account I,
net
Total increase (decrease) in (1,558) 34,705 (24,502) (58,361)
net assets
Net assets at beginning of 288,526 253,821 192,401 250,762
year
Net assets at end of year $ 286,968 $ 288,526 $ 167,899 $ 192,401
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VIP - EQUITY-INCOME VIP - GROWTH
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 11,871 $ 10,557 $ (17,998) $ (6,120)
Net realized gain (loss) on 180,817 248,408 460,373 458,618
investments
Unrealized appreciation (103,461) (72,355) 392,405 140,966
(depreciation)
Net increase (decrease) in 89,227 186,610 834,780 593,464
net assets from operations
Transfers between (153,318) (192,690) 167,098 168,543
subaccounts, net
Transfers for contract (155,156) (27,457) (240,173) (10,686)
terminations
Transfers for cost of (9,421) (10,081) (11,048) (8,677)
insurance
Other transfers to (from) 905 7,499 (3,088) (3,409)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in (316,990) (222,729) (87,211) 145,771
net assets from contract
transactions
Retained in (returned from) (1,386) (2,779) (1,385) (1,729)
Variable Life Account I,
net
Total increase (decrease) in (229,149) (38,898) 746,184 737,506
net assets
Net assets at beginning of 1,822,247 1,861,145 2,366,514 1,629,008
year
Net assets at end of year $ 1,593,098 $ 1,822,247 $ 3,112,698 $ 2,366,514
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VIP - OVERSEAS VIP II - INVESTMENT
GRADE BOND
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 2,936 $ 1,891 $ 8,460 $ 8,824
Net realized gain (loss) on 8,874 (12,431) 3,790 1,707
investments
Unrealized appreciation 111,238 (21,186) (16,958) 7,536
(depreciation)
Net increase (decrease) in 123,048 (31,726) (4,708) 18,067
net assets from operations
Transfers between (54,856) 24,230 81,389 (4,212)
subaccounts, net
Transfers for contract (21,408) (4) (30,254) 0
terminations
Transfers for cost of (2,030) (3,434) (2,155) (2,068)
insurance
Other transfers to (from) (1,014) 4,748 (1) (140)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in (79,308) 25,540 48,979 (6,420)
net assets from contract
transactions
Retained in (returned from) (957) (692) (1,379) (342)
Variable Life Account I,
net
Total increase (decrease) in 42,783 (6,878) 42,892 11,305
net assets
Net assets at beginning of 391,234 398,112 242,093 230,788
year
Net assets at end of year $ 434,017 $ 391,234 $ 284,985 $ 242,093
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VIP II - ASSET MANAGER TOTAL
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 3,694 $ 3,928 $ 40,226 $ 50,310
Net realized gain (loss) on 11,005 21,617 666,210 728,937
investments
Unrealized appreciation 2,203 (4,249) 381,748 14,579
(depreciation)
Net increase (decrease) in 16,902 21,296 1,088,184 793,826
net assets from operations
Transfers between 12,522 (2,827) 0 0
subaccounts, net
Transfers for contract 0 (24,075) (458,043) (79,515)
terminations
Transfers for cost of (1,236) (1,191) (30,565) (30,453)
insurance
Other transfers to (from) (55) (238) 13,213 (4,952)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 11,231 (28,331) (475,395) (114,920)
net assets from contract
transactions
Retained in (returned from) (1,326) (111) (9,332) (6,673)
Variable Life Account I,
net
Total increase (decrease) in 26,807 (7,146) 603,457 672,233
net assets
Net assets at beginning of 158,437 165,583 5,461,452 4,789,219
year
Net assets at end of year $ 185,244 $ 158,437 $ 6,064,909 $ 5,461,452
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FIDELITY INVESTMENTS VARIABLE LIFE ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
1. ORGANIZATION
Fidelity Investments Variable Life Account I (the "Account"), a unit
investment trust registered under the Investment Company Act of 1940
as amended, was established by Fidelity Investments Life Insurance
Company (FILI) on July 22, 1987 and exists in accordance with the
regulations of the State of Utah Insurance Department. The Account is
a funding vehicle for individual variable life insurance contracts.
FILI is a wholly-owned subsidiary of FMR Corp. Under applicable
insurance law, the assets and liabilities of the Account are clearly
identified and distinguished from the other assets and liabilities of
FILI. The Account cannot be charged with liabilities arising out of
any other business of FILI.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed
consistently by the Account in preparation of the financial statements
in conformity with generally accepted accounting principles.
INVESTMENT VALUATION
Investments are made by the subaccounts in their corresponding mutual
fund portfolios and are valued at the reported net asset values of
such portfolios.
ACCOUNTING FOR INVESTMENTS
Investment transactions are recorded on the trade date. Income from
dividends is recorded on the ex-dividend date. Realized gains and
losses on the sales of investments are computed on the basis of the
identified cost of the investment sold.
FEDERAL INCOME TAXES
The operations of the Account are included in the federal income tax
return of FILI, which is taxed as a life insurance company under the
provisions of the Internal Revenue Code (the "Code").
Under the current provisions of the Code, FILI does not expect to
incur federal income taxes on the earnings of the Account to the
extent the earnings are credited under the contracts. Based on this,
no charge is being made currently to the Account for federal income
taxes. FILI will review periodically the status of such decision based
on changes in the tax law. Such a charge may be made in future years
for any federal income taxes that would be attributable to the
contracts.
ESTIMATES
The preparation of the statement of assets and liabilities and the
statements of operations and of changes in net assets in accordance
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the related amounts and
disclosures in the financial statements. Actual results could differ
from those estimates.
RECLASSIFICATIONS
Certain prior year balances have been reclassified to conform with the
current year presentation.
3. EXPENSES
FILI deducts a daily charge from the net assets of the Account
(equivalent to an effective annual rate of .85%) for administrative
expenses and for the assumption of mortality risk and expense risk. In
addition, the cost of providing insurance protection is deducted
monthly.
4. AFFILIATED COMPANY TRANSACTIONS
The contracts are distributed through Fidelity Brokerage Services,
Inc. (FBSI) and Fidelity Insurance Agency, Inc. (FIA), both of which
are affiliated with FMR Corp. FBSI and FIA are the distributors and
FBSI is the principal underwriter of the contracts. Fidelity
Management & Research Company, an affiliate of FMR Corp., acts as
investment advisor to each portfolio. Fidelity Investments
Institutional Operations Company, Inc., an affiliate of FMR Corp., is
the transfer and shareholder servicing agent for the portfolios.
5. PURCHASES AND SALES OF INVESTMENTS
The following table shows aggregate cost of shares purchased and
proceeds from sales of each subaccount for the year ended December 31,
1999:
PURCHASES SALES
VIP - Money Market $ 397,773 $ 399,331
VIP - High Income 21,993 43,512
VIP - Equity-Income 243,989 490,646
VIP - Growth 758,381 600,844
VIP - Overseas 108,293 176,370
VIP II - Investment Grade Bond 75,291 15,872
VIP II - Asset Manager 41,276 21,165
In our opinion, the accompanying statement of assets and liabilities
and the related statements of operations and of changes in net assets
present fairly, in all material respects, the financial position of
each of the subaccounts constituting the Fidelity Investments Variable
Annuity Account I of Fidelity Investments Life Insurance Company at
December 31, 1999, and the results of each of their operations and the
changes in each of their net assets for each of the two years in the
period then ended December 31, 1999, in conformity with accounting
principles generally accepted in the United States. These financial
statements are the responsibility of Fidelity Investments Life
Insurance Company's management; our responsibility is to express an
opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with auditing
standards generally accepted in the United States, which 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, assessing the
accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of investments at December 31, 1999 by correspondence with the funds,
provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 25, 2000
Fidelity Variable Life
is issued by Fidelity Investments Life Insurance Company
Fidelity Brokerage Services, Inc., member NYSE, SIPC, Fidelity
Insurance Agency, Inc., and Fidelity Investments Insurance
Agency of Texas, Inc. are the distributors.
82 Devonshire Street, Boston, MA 02109
