(2_FIDELITY_LOGOS)FIDELITY INVESTMENTS
VARIABLE ANNUITY ACCOUNT I
ANNUAL REPORT
DECEMBER 31, 1995
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF FIDELITY
INVESTMENTS LIFE INSURANCE COMPANY VARIABLE ANNUITY 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 ANNUITY NOR MUTUAL FUND
SHARES ARE BACKED OR GUARANTEED BY ANY BANK OR INSURED BY THE FDIC.
STATEMENT OF ASSETS AND LIABILITIES
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C>
DECEMBER 31, 1995
ASSETS
Investments at Current Market Value:
Variable Insurance Products Fund (VIP)
Money Market Portfolio - 389,090,566 shares (cost $389,090,566) $ 389,090,566
High Income Portfolio - 14,580,158 shares (cost $164,501,539) 175,690,900
Equity-Income Portfolio - 60,828,670 shares (cost $924,251,496) 1,172,168,564
Growth Portfolio - 24,523,521 shares (cost $554,598,145) 716,086,802
Overseas Portfolio - 10,727,425 shares (cost $169,954,198) 182,902,593
Variable Insurance Products Fund II (VIP II)
Investment Grade Bond Portfolio - 5,585,515 shares (cost $65,439,944) 69,707,228
Asset Manager Portfolio - 46,931,724 shares (cost $671,552,263) 741,051,925
Index 500 Portfolio - 1,553,826 shares (cost $101,029,768) 117,640,201
Asset Manager Growth Portfolio - 4,338,467 shares (cost $47,893,413) 51,107,139
Contrafund Portfolio - 33,186,202 shares (cost $400,203,737) 457,305,867
Total Assets $ 4,072,751,785
LIABILITIES
Total Liabilities 0
NET ASSETS
Variable Annuity Contracts $ 4,007,720,676
Annuity Reserves 61,168,184
Retained in Variable Account by Fidelity Investments Life Insurance Company 3,862,925
Total Net Assets $ 4,072,751,785
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP - VIP - VIP - VIP -
MONEY MARKET HIGH INCOME EQUITY-INCOME VIP - GROWTH OVERSEAS
12/31/95 12/31/94 12/31/95 12/31/94 12/31/95 12/31/94 12/31/95 12/31/94 12/31/95
INCOME:
Dividends $ 20,938,18 $ 11,686,93 $ 7,310,462 $ 9,735,149 $ 54,694,031 $ 31,623,79 $ 2,257,895 $ 17,356,33 $ 1,831,239
5 1 5 5
EXPENSES:
Mortality,
expense 3,678,351
risk and admin-
istrative
charges 2,723,808 1,424,671 991,614 8,919,504 4,897,920 5,588,458 3,309,856 2,035,083
Net
investment 17,259,834 8,963,123 5,885,791 8,743,535 45,774,527 26,725,875 (3,330,563) 14,046,479 (203,844)
income (loss)
Realized
gain 0 0 3,468,694 854,088 4,662,258 1,613,266 11,540,837 3,529,822 12,959,632
Unrealized appreciation
(depreciation) during
the
year 0 0 14,660,109 (12,216,01 205,095,093 (3,051,717) 132,834,43 (18,591,88 2,395,325
3) 6 6)
Net increase (decrease)
in net assets from
operat
ions 17,259,834 8,963,123 24,014,594 (2,618,390) 255,531,878 25,287,424 141,044,71 (1,015,585) 15,151,113
0
Payments received
from contract
owners 589,374,91 645,128,30 12,599,198 10,302,633 57,511,018 49,775,058 45,108,759 33,823,761 8,380,232
4 7
Transfers between
subaccounts,
net (537,429,1 (440,313,0 46,281,625 (7,640,512) 249,610,294 188,039,12 137,989,44 97,577,220 (86,638,42
37) 68) 1 1 6)
Transfers for contract
benefits and
terminat
ions (22,365,62 (10,448,76 (2,787,385) (1,753,628) (20,090,771) (8,045,269) (12,135,04 (6,747,012) (5,189,348)
0) 8) 7)
Other transfers (to)
from Fidelity Invest-
ments Life Insurance
Co., net (4,245,397) (6,617,738) 197,290 (335,197) (533,194) (1,005,641) (60,732) (733,767) (673,124)
Net increase in net
assets from contract
transact
ions 25,334,760 187,748,73 56,290,728 573,296 286,497,347 228,763,26 170,902,42 123,920,20 (84,120,66
3 9 1 2 6)
Retained in (returned
from) Variable
Annuity Account I,
net 78,923 83,389 77,233 (66,040) 602,520 (35,387) 338,618 38,235 (48,579)
Total increase
(decrease) 42,673,517 196,795,24 80,382,555 (2,111,134) 542,631,745 254,015,30 312,285,74 122,942,85 (69,018,13
in net assets 5 6 9 2 2)
Net assets at beginning
of period 346,417,04 149,621,80 95,308,345 97,419,479 629,536,819 375,521,51 403,801,05 280,858,20 251,920,72
9 4 3 3 1 5
Net assets at end
of period $ 389,090,5 $ 346,417,0 $ 175,690,9 $ 95,308,34 $ 1,172,168,5 $ 629,536,8 $ 716,086,8 $ 403,801,0 $ 182,902,5
66 49 00 5 64 19 02 53 93
VIP II -
VIP II - ASSET
VIP - INVESTMENT VIP II - VIP II - MANAGER: VIP II -
OVERSEAS GRADE BOND ASSET MANAGER INDEX 500 GROWTH CONTRAFUND TOTAL
12/31/94 12/31/95 12/31/94 12/31/95 12/31/94 12/31/94 12/31/95* 12/31/95* 12/31/94
12/31/95 12/31/95
$ 927,365 $ 1,682,779 $ 146,009 $ 17,964,09 $ 43,505,78 $ 502,158 $ 31,421 $ 2,142,569 $ 5,839,546 $115,162,957 $115,012,794
3 9
2,337,367 565,912 493,299 7,872,594 9,305,324 599,028 203,190 285,667 2,454,097 33,423,365 24,262,378
1,116,867 (347,290) 10,091,499 34,200,465 (96,870) (171,769) 1,856,902 3,385,449 81,739,592 90,750,416
(1,410,002)
2,699,999 681,765 164,646 35,055,886 8,525,009 1,070,836 122,245 327,488 1,396,988 71,164,384 17,509,075
(3,980,894) 6,589,640 (2,318,772) 68,350,367 (111,856,42 15,941,637 116,393 3,213,726 57,102,130 506,182,463 (151,899,318)
9)
(2,690,897) 8,388,272 (2,501,416) 113,497,75 (69,130,955 16,915,603 66,869 5,398,116 61,884,567 659,086,439 (43,639,827)
2 )
36,453,091 3,797,513 2,843,791 14,616,755 74,008,649 9,671,827 2,126,520 7,219,229 66,578,676 814,858,121 854,461,810
68,743,917 12,841,617 (8,909,404) (259,695,7 97,040,979 67,738,298 5,461,747 38,762,122 330,539,95 0 0
89) 5
(4,757,369) (2,353,886) (1,772,096) (27,122,69 (19,839,734 (1,660,150) (553,236) (419,868) (2,976,326) (97,101,098) (53,917,112)
7) )
(321,867) (18,023) (282,453) (4,923,994) (4,640,807) 125,425 (50,148) 102,104 893,178 (9,136,467) (13,987,618)
100,117,77 14,267,221 (8,120,162) (277,125,7 146,569,08 75,875,400 6,984,883 45,663,587 395,035,48 708,620,556 786,557,080
2 25) 7 3
41,762 14,585 (84,606) (63,314) (365,925) 108,453 (17,417) 45,436 385,817 1,539,692 (405,989)
97,468,637 22,670,078 (10,706,18 (163,691,2 77,072,207 92,899,456 7,034,335 51,107,139 457,305,86 1,369,246,68 742,511,264
4) 87) 7 7
154,452,08 47,037,150 57,743,334 904,743,21 827,671,00 24,740,745 17,706,410 0 0 2,703,505,09 1,960,993,83
8 2 5 8 4
$251,920,7 $ 69,707,22 $ 47,037,15 $ 741,051,9 $ 904,743,2 $ 117,640,2 $ 24,740,74 $ 51,107,13 $ 457,305,8 $4,072,751,7 $2,703,505,0
25 8 0 25 12 01 5 9 67 85 98
</TABLE>
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
1. ORGANIZATION.
Fidelity Investments Variable Annuity 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 Utah Insurance Department. The Account is a funding vehicle for
individual Fidelity Retirement Reserves and Fidelity Income Advantage
variable annuity contracts. FILI is a wholly-owned subsidiary of FMR Corp.
Beginning in 1995, FILI added two new subaccounts to the Account; Asset
Manager: Growth and Contrafund.
2. SIGNIFICANT ACCOUNTING POLICIES.
Investments are made in the portfolios of the Variable Insurance Products
Fund and the Variable Insurance Products Fund II and are valued at the
reported net asset values of such portfolios. 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.
In addition to the Account, a contractholder may also allocate funds to the
Fixed Account, which is part of FILI's general account. Because of
exemptive and exclusionary provisions, interests in the Fixed Account have
not been registered under the Securities Act of 1933 and FILI's general
account has not been registered as an investment company under the
Investment Company Act of 1940.
Annuity reserves are computed for contracts in the income stage according
to the 1983a Individual Annuitant Mortality Table. The assumed investment
return is 3.5% unless the annuitant elects otherwise, in which case the
rate may vary from 3.5% to 7%, as regulated by the laws of the respective
states. The mortality risk is fully borne by FILI and may result in
additional amounts being transferred into the Account by FILI.
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).
3. EXPENSES.
FILI deducts a daily charge from the net assets of the Account (equivalent
to an effective annual rate of 1% of net assets) for administrative
expenses and for the assumption of mortality and expense risks. FILI also
deducts an annual maintenance
charge of $30 from the Fidelity Retirement Reserves contract value. The
maintenance charge is waived on certain contracts.
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. FILI incurs federal income taxes
on the difference between the financial statement carrying value of
reserves for contracts in the income stage and those reserves held for
federal income tax purposes. The tax effect of this temporary difference is
expected to be recovered by FILI. As such, 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.
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 is the distributor and 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 Co., 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, 1995:
PURCHASES SALES
Money Market $ $
236,741,106 194,067,589
High Income $ $
101,496,876 39,243,123
Equity-Income $ $
344,537,096 11,662,701
Growth $ $
198,936,009 31,025,534
Overseas $ $
10,616,367 94,989,474
Investment Grade $ $
26,555,526 11,156,850
Asset Manager $ $
18,248,586 285,346,129
Index 500 $ $
81,288,083 5,401,100
Asset Manager: $ $
Growth 51,152,381 3,586,459
Contrafund $ $
404,441,045 5,634,299
6. UNIT VALUES.
A summary of changes in accumulation unit values and accumulation units
outstanding for variable annuity contracts at December 31, 1995 and 1994
are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
PAYMENTS
BEGINNING RECEIVED TRANSFERS CONTRACT
BALANCE FROM CONTRACT BETWEEN TERMINATION ENDING BALANCE
OWNERS SUBACCOUNTS, S
NET
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
UNITS UNITS UNIT VALUE DOLLARS
JANUARY 1, 1995 TO DECEMBER 31, 1995
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Money Market Subaccount 24,546,739 38,644,291 (35,319,303) (1,602,881) 26,268,846 $14.66 $ 385,129,503
High Income Subaccount 5,106,950 605,925 2,334,094 (249,654) 7,797,315 $22.05 171,920,260
Equity-Income Subaccount 30,415,281 2,381,915 10,482,774 (1,342,848) 41,937,122 $27.44 1,150,938,872
Growth Subaccount 17,470,386 1,561,974 4,557,411 (569,902) 23,019,869 $30.80 708,919,066
Overseas Subaccount 14,336,196 467,953 (4,944,962) (298,811) 9,560,376 $19.00 181,618,833
Investment Grade Subaccount 3,151,087 239,183 796,388 (193,551) 3,993,107 $16.99 67,854,942
Asset Manager Subaccount 56,621,559 875,715 (15,993,891) (1,681,742) 39,821,641 $18.29 728,500,356
Index 500 Subaccount 2,102,667 687,171 4,837,242 (293,280) 7,333,800 $15.54 113,950,091
Asset Manager: Growth 0 646,949 3,573,788 (185,303) 4,035,434 $12.21 49,254,936
Subaccount*
Contrafund Subaccount* 0 5,345,476 27,832,893 (756,423) 32,421,946 $13.87 449,633,817
$ 4,007,720,67
6
JANUARY 1, 1994 TO DECEMBER 31, 1994
Money Market Subaccount 10,961,418 45,986,781 (31,511,315) (890,145) 24,546,739 $13.99 $ 343,347,546
High Income Subaccount 5,122,946 543,753 (428,508) (131,241) 5,106,950 $18.47 94,304,578
Equity-Income Subaccount 19,318,902 2,475,299 9,202,615 (581,535) 30,415,281 $20.52 624,110,772
Growth Subaccount 12,073,224 1,498,018 4,281,623 (382,479) 17,470,386 $22.98 401,457,004
Overseas Subaccount 8,857,429 2,027,482 3,743,391 (292,108) 14,336,196 $17.50 250,816,040
Investment Grade Subaccount 3,714,356 189,214 (615,576) (136,909) 3,151,087 $14.63 46,099,576
Asset Manager Subaccount 48,441,225 4,435,210 5,336,152 (1,591,026) 56,621,559 $15.80 894,583,891
Index 500 Subaccount 1,509,615 186,966 474,149 (68,063) 2,102,667 $11.44 24,053,586
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
$ 2,678,772,99
3
* FOR THE PERIOD JANUARY 3, 1995 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1995.
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contract Owners of Fidelity Investments
Variable Annuity Account I:
We have audited the accompanying statement of assets and liabilities of
Fidelity Investments Variable Annuity Account I (comprised of Money Market
Subaccount, High Income Subaccount, Equity-Income Subaccount, Growth
Subaccount, Overseas Subaccount, Investment Grade Bond Subaccount, Asset
Manager Subaccount, Index 500 Subaccount, Asset Manager: Growth Subaccount
and Contrafund Subaccount) of Fidelity Investments Life Insurance Company
as of December 31, 1995, and the related statements of operations and
changes in net assets for each of the periods indicated therein. These
financial statements are the responsibility of the Company'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. 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 the aforementioned
subaccounts comprising Fidelity Investments Variable Annuity Account I of
Fidelity Investments Life Insurance Company as of December 31, 1995, and
the results of their operations and the changes in their net assets for
each of the periods indicated therein, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
January 26, 1996
(registered trademark)
America's largest privately-held investment management organization.
Fidelity Retirement Reserves (policy form FVA-88200), Fidelity Variable
Annuity and Fidelity Income Advantage (policy form FVIA-92100) are 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
