(2_FIDELITY_LOGOS)
FIDELITY(REGISTERED TRADEMARK) INVESTMENTS
VARIABLE ANNUITY 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 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 ANNUITIES 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
ASSETS DECEMBER 31, 1999
Investments at current market
value:
Variable Insurance Products
Fund (VIP)
Money Market Portfolio - $ 1,034,800,366
1,034,800,366 shares (cost $
1,034,800,366)
High Income Portfolio - 261,740,986
23,142,439 shares (cost
$288,891,737)
Equity-Income Portfolio - 1,368,732,781
53,237,370 shares (cost
$1,054,223,689)
Growth Portfolio - 2,275,450,859
41,424,556 shares (cost
$1,404,711,711)
Overseas Portfolio - 379,505,600
13,830,379 shares (cost
$268,791,864)
Variable Insurance Products
Fund II (VIP II)
Investment Grade Bond 197,380,314
Portfolio - 16,231,934
shares (cost $205,244,503)
Asset Manager Portfolio - 801,919,715
42,952,315 shares (cost
$672,191,944)
Index 500 Portfolio - 1,322,070,644
7,897,202 shares (cost
$886,207,820)
Asset Manager: Growth 348,310,936
Portfolio - 18,950,541
shares (cost $277,009,021)
Contrafund Portfolio - 1,914,069,592
65,662,765 shares (cost
$1,129,015,399)
Variable Insurance Products
Fund III (VIP III)
Balanced Portfolio - 123,711,592
7,731,974 shares (cost
$119,578,899)
Growth & Income Portfolio - 588,502,063
34,017,460 shares (cost
$489,222,747)
Growth Opportunities 327,459,619
Portfolio - 14,145,124
shares (cost $271,733,805)
Morgan Stanley Dean Witter
Universal Funds (MSDWUF)
Emerging Markets Equity 64,896,080
Portfolio - 4,665,426 shares
(cost $49,298,981)
Emerging Markets Debt 3,407,039
Portfolio - 493,059 shares
(cost $4,397,335)
Global Equity Portfolio - 16,214,474
1,258,888 shares (cost
$16,881,750)
International Magnum 13,187,280
Portfolio - 949,408 shares
(cost $11,872,866)
PBHG Insurance Series Funds
(PBHG)
Growth II Portfolio - 124,988,707
5,422,504 shares (cost
$94,133,369)
Small Cap Value Portfolio - 41,373,038
3,073,777 shares (cost
$36,356,515)
Large Cap Value Portfolio - 36,317,922
2,390,910 shares (cost
$34,538,002)
Technology & Communications 1,429,027,945
Portfolio - 31,059,073
shares (cost $748,929,141)
Select 20 Portfolio - 677,661,395
20,723,590 shares (cost
$335,206,119)
Strong Variable Insurance
Funds (SVIF)
Discovery Fund II Portfolio 3,113,152
- - 273,563 shares (cost
$3,171,203)
Mid Cap Growth Fund II 243,753,053
Portfolio - 8,026,113 shares
(cost $175,773,315)
Opportunity Fund II 52,797,806
Portfolio - 2,031,466 shares
(cost $46,136,486)
Warburg Pincus Trust (WPT)
Small Company Growth 45,708,345
Portfolio - 1,744,593 shares
(cost $33,277,030)
International Equity 20,215,143
Portfolio - 1,210,488 shares
(cost $17,014,360)
Post-Venture Capital 12,722,297
Portfolio - 660,555 shares
(cost $9,178,217)
Total Assets $ 13,729,038,743
NET ASSETS COMPRISED OF:
Variable Annuity Contracts $ 12,871,054,665
Annuity Reserves 857,994,081
Payable to Variable Account (10,003)
by Fidelity Investments Life
Insurance Company
NET ASSETS $ 13,729,038,743
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP - VIP -
VIP - HIGH INCOME EQUITY-INCOME
MONEY MARKET
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99
INCOME:
Dividends $ 43,056,097 $ 32,096,882 $ 24,152,091 $ 23,805,612 $ 22,453,718
EXPENSES:
Mortality risk, expense risk 6,937,983 4,901,964 2,238,473 2,633,630 12,300,342
and administrative charges
Net investment income (loss) 36,118,114 27,194,918 21,913,618 21,171,982 10,153,376
Realized gain on sale of fund 0 0 182,459 4,318,426 165,178,034
shares
Realized gain distributions 0 0 902,883 15,126,483 49,634,534
Unrealized appreciation 0 0 (4,017,281) (57,719,667) (148,832,159)
(depreciation)
Net increase (decrease) in $ 36,118,114 $ 27,194,918 $ 18,981,679 $ (17,102,776) $ 76,133,785
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
VIP - VIP -
GROWTH OVERSEAS
12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 23,290,879 $ 2,554,613 $ 5,047,927 $ 3,847,399 $ 4,778,919
EXPENSES:
Mortality risk, expense risk 13,686,765 14,297,940 9,170,424 2,193,157 2,183,325
and administrative charges
Net investment income (loss) 9,604,114 (11,743,327) (4,122,497) 1,654,242 2,595,594
Realized gain on sale of fund 104,830,108 43,006,924 40,388,245 8,152,274 9,228,055
shares
Realized gain distributions 82,888,133 160,621,295 132,043,151 6,205,483 14,085,236
Unrealized appreciation (36,054,859) 380,135,317 204,627,266 87,545,263 (1,421,498)
(depreciation)
Net increase (decrease) in $ 161,267,496 $ 572,020,209 $ 372,936,165 $ 103,557,262 $ 24,487,387
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
VIP II - VIP II - VIP II -
INVESTMENT GRADE BOND ASSET MANAGER INDEX 500
12/31/99 12/31/98 12/31/99 12/31/98 12/31/99
INCOME:
Dividends $ 10,063,980 $ 5,744,010 $ 26,505,755 $ 24,381,840 $ 10,770,676
EXPENSES:
Mortality risk, expense risk 1,936,261 1,339,333 6,538,920 6,456,036 9,964,363
and administrative charges
Net investment income (loss) 8,127,719 4,404,677 19,966,835 17,925,804 806,313
Realized gain on sale of fund 244,359 2,547,932 25,832,009 16,078,991 85,020,408
shares
Realized gain distributions 3,157,327 681,493 33,573,955 73,145,521 7,308,673
Unrealized appreciation (16,237,106) 4,439,938 (2,415,965) (3,584,516) 124,508,783
(depreciation)
Net increase (decrease) in $ (4,707,701) $ 12,074,040 $ 76,956,834 $ 103,565,800 $ 217,644,177
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
VIP II - VIP II -
ASSET MANAGER: CONTRAFUND
GROWTH
12/31/98 12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 9,035,234 $ 7,827,870 $ 6,481,674 $ 7,541,601 $ 8,346,877
EXPENSES:
Mortality risk, expense risk 7,372,193 2,746,761 2,605,407 13,984,571 10,705,399
and administrative charges
Net investment income (loss) 1,663,041 5,081,109 3,876,267 (6,442,970) (2,358,522)
Realized gain on sale of fund 42,436,975 19,404,288 15,999,371 93,340,810 53,814,041
shares
Realized gain distributions 20,927,197 12,982,809 30,311,357 55,305,071 61,409,174
Unrealized appreciation 146,192,653 7,512,419 (1,663,981) 219,949,013 223,438,815
(depreciation)
Net increase (decrease) in $ 211,219,866 $ 44,980,625 $ 48,523,014 $ 362,151,924 $ 336,303,508
net assets from operations
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP III -
VIP III - GROWTH &
BALANCED INCOME
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 2,668,561 $ 1,599,419 $ 3,801,304 $ 0
EXPENSES:
Mortality risk, expense risk 1,086,080 655,242 5,373,329 3,314,273
and administrative charges
Net investment income (loss) 1,582,481 944,177 (1,572,025) (3,314,273)
Realized gain on sale of fund 6,102,937 3,178,661 71,504,723 5,527,477
shares
Realized gain distributions 3,101,301 2,443,558 7,602,607 1,561,847
Unrealized appreciation (6,374,709) 6,090,310 (27,907,245) 99,729,988
(depreciation)
Net increase (decrease) in $ 4,412,010 $ 12,656,706 $ 49,628,060 $ 103,505,039
net assets from operations
MSDWUF - GLOBAL EQUITY MSDWUF - INTERNATIONAL
MAGNUM
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 196,524 $ 119,133 $ 87,571 $ 38,795
EXPENSES:
Mortality risk, expense risk 141,042 95,443 91,871 69,283
and administrative charges
Net investment income (loss) 55,482 23,690 (4,300) (30,488)
Realized gain on sale of fund 313,353 275,615 31,185 445,069
shares
Realized gain distributions 769,099 107,863 56,501 43,290
Unrealized appreciation (647,744) (13,408) 2,474,219 (1,107,058)
(depreciation)
Net increase (decrease) in $ 490,190 $ 393,760 $ 2,557,605 $ (649,187)
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP III - MSDWUF -
GROWTH EMERGING MARKETS
OPPORTUNITIES EQUITY
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 4,157,611 $ 3,366,752 $ 6,296 $ 24,349
EXPENSES:
Mortality risk, expense risk 3,214,105 2,888,523 183,185 31,210
and administrative charges
Net investment income (loss) 943,506 478,229 (176,889) (6,861)
Realized gain on sale of fund 41,356,198 7,155,764 2,228,308 198,635
shares
Realized gain distributions 7,772,926 11,703,472 0 0
Unrealized appreciation (37,906,680) 56,119,613 16,923,324 (1,271,839)
(depreciation)
Net increase (decrease) in $ 12,165,950 $ 75,457,078 $ 18,974,743 $ (1,080,065)
net assets from operations
PBHG - GROWTH II PBHG - SMALL CAP VALUE
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 0 $ 0 $ 0 $ 6,754
EXPENSES:
Mortality risk, expense risk 200,218 32,504 321,079 225,695
and administrative charges
Net investment income (loss) (200,218) (32,504) (321,079) (218,941)
Realized gain on sale of fund 867,275 225,669 2,287,120 1,376,831
shares
Realized gain distributions 0 0 0 40,814
Unrealized appreciation 30,717,543 68,354 3,650,843 1,169,066
(depreciation)
Net increase (decrease) in $ 31,384,600 $ 261,519 $ 5,616,884 $ 2,367,770
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MSDWUF -
EMERGING MARKETS
DEBT
12/31/99 12/31/98
INCOME:
Dividends $ 409,018 $ 245,208
EXPENSES:
Mortality risk, expense risk 21,575 20,510
and administrative charges
Net investment income (loss) 387,443 224,698
Realized gain on sale of fund 52,286 31,585
shares
Realized gain distributions 0 0
Unrealized appreciation 182,290 (1,105,348)
(depreciation)
Net increase (decrease) in $ 622,019 $ (849,065)
net assets from operations
PBHG - LARGE CAP VALUE
12/31/99 12/31/98
INCOME:
Dividends $ 1,033 $ 49,627
EXPENSES:
Mortality risk, expense risk 292,040 54,157
and administrative charges
Net investment income (loss) (291,007) (4,530)
Realized gain on sale of fund 2,987,992 495,109
shares
Realized gain distributions 882,489 104,635
Unrealized appreciation (585,169) 2,352,195
(depreciation)
Net increase (decrease) in $ 2,994,305 $ 2,947,409
net assets from operations
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
PBHG - TECHNOLOGY & PBHG - SELECT 20
COMMUNICATIONS
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 0 $ 2,529 $ 0 $ 2,946
EXPENSES:
Mortality risk, expense risk 2,762,048 114,064 3,174,141 853,459
and administrative charges
Net investment income (loss) (2,762,048) (111,535) (3,174,141) (850,513)
Realized gain on sale of fund 9,207,801 501,364 36,793,079 4,426,860
shares
Realized gain distributions 0 0 0 0
Unrealized appreciation 676,031,390 4,097,815 287,462,086 54,862,065
(depreciation)
Net increase (decrease) in $ 682,477,143 $ 4,487,644 $ 321,081,024 $ 58,438,412
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SVIF - DISCOVERY FUND SVIF - MID CAP GROWTH
II FUND II
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 0 $ 0 $ 0 $ 27
EXPENSES:
Mortality risk, expense risk 18,633 15,019 573,402 51,977
and administrative charges
Net investment income (loss) (18,633) (15,019) (573,402) (51,950)
Realized gain on sale of fund 42,846 29,945 1,320,568 177,519
shares
Realized gain distributions 292,833 23,062 29,051 0
Unrealized appreciation (87,515) 47,865 66,604,569 1,398,499
(depreciation)
Net increase (decrease) in $ 229,531 $ 85,853 $ 67,380,786 $ 1,524,068
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SVIF - OPPORTUNITY FUND
II
12/31/99 12/31/98
INCOME:
Dividends $ 0 $ 57,387
EXPENSES:
Mortality risk, expense risk 297,094 144,279
and administrative charges
Net investment income (loss) (297,094) (86,892)
Realized gain on sale of fund 1,045,329 178,312
shares
Realized gain distributions 2,985,965 1,317,403
Unrealized appreciation 7,090,430 (453,869)
(depreciation)
Net increase (decrease) in $ 10,824,630 $ 954,954
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - SMALL COMPANY WPT - INTERNATIONAL
GROWTH EQUITY
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 0 $ 0 $ 139,563 $ 23,172
EXPENSES:
Mortality risk, expense risk 171,003 110,109 47,030 33,469
and administrative charges
Net investment income (loss) (171,003) (110,109) 92,533 (10,297)
Realized gain on sale of fund 840,101 365,092 179,279 131,244
shares
Realized gain distributions 1,164,244 0 0 0
Unrealized appreciation 12,968,059 (688,006) 3,699,852 (470,679)
(depreciation)
Net increase (decrease) in $ 14,801,401 $ (433,023) $ 3,971,664 $ (349,732)
net assets from operations
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - POST-VENTURE TOTAL
CAPITAL
12/31/99 12/31/98 12/31/99 12/31/98
INCOME:
Dividends $ 0 $ 0 $ 170,241,281 $ 148,545,952
EXPENSES:
Mortality risk, expense risk 55,782 39,091 91,162,428 69,802,783
and administrative charges
Net investment income (loss) (55,782) (39,091) 79,078,853 78,743,169
Realized gain on sale of fund 361,254 267,294 617,883,199 314,630,189
shares
Realized gain distributions 0 0 354,349,046 447,963,689
Unrealized appreciation 3,847,450 (324,010) 1,686,291,277 698,755,704
(depreciation)
Net increase (decrease) in $ 4,152,922 $ (95,807) $ 2,737,602,375 $ 1,540,092,751
net assets from operations
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP - HIGH INCOME
VIP - MONEY MARKET
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 36,118,114 $ 27,194,918 $ 21,913,618 $ 21,171,982
Net realized gain on 0 0 1,085,342 19,444,909
investments
Unrealized appreciation 0 0 (4,017,281) (57,719,667)
(depreciation)
Net increase (decrease) in 36,118,114 27,194,918 18,981,679 (17,102,776)
net assets from operations
Payments received from 1,286,021,535 807,653,915 10,344,306 19,052,726
contract owners
Transfers between (907,311,345) (484,805,719) (29,864,881) (34,335,132)
sub-accounts and the fixed
account, net
Transfers for contract (109,640,243) (81,249,209) (13,964,158) (11,355,372)
benefits and terminations
Other transfers (to) from 4,752 (59,095) (1,374) 16,131
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 269,074,699 241,539,892 (33,486,107) (26,621,647)
net assets from contract
transactions
Retained in (returned from) (66,104) (43,725) (53,692) 41,287
Variable Annuity Account I,
net
Total increase (decrease) in 305,126,709 268,691,085 (14,558,120) (43,683,136)
net assets
Net assets at beginning of year 729,673,657 460,982,572 276,299,106 319,982,242
Net assets at end of year $ 1,034,800,366 $ 729,673,657 $ 261,740,986 $ 276,299,106
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP - EQUITY-INCOME VIP - GROWTH
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 10,153,376 $ 9,604,114 $ (11,743,327) $ (4,122,497)
Net realized gain on 214,812,568 187,718,241 203,628,219 172,431,396
investments
Unrealized appreciation (148,832,159) (36,054,859) 380,135,317 204,627,266
(depreciation)
Net increase (decrease) in 76,133,785 161,267,496 572,020,209 372,936,165
net assets from operations
Payments received from 20,760,151 28,208,563 60,915,377 24,665,215
contract owners
Transfers between (248,038,028) (202,330,328) 318,329,136 19,580,093
sub-accounts and the fixed
account, net
Transfers for contract (66,840,847) (72,201,646) (59,702,522) (39,644,250)
benefits and terminations
Other transfers (to) from 49,660 (31,813) 187,727 43,976
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in (294,069,064) (246,355,224) 319,729,718 4,645,034
net assets from contract
transactions
Retained in (returned from) (113,160) 88,226 (41,670) 11,999
Variable Annuity Account I,
net
Total increase (decrease) in (218,048,439) (84,999,502) 891,708,257 377,593,198
net assets
Net assets at beginning of year 1,586,781,220 1,671,780,722 1,383,742,602 1,006,149,404
Net assets at end of year $ 1,368,732,781 $ 1,586,781,220 $ 2,275,450,859 $ 1,383,742,602
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
VIP - OVERSEAS
12/31/99 12/31/98
Net investment income (loss) $ 1,654,242 $ 2,595,594
Net realized gain on 14,357,757 23,313,291
investments
Unrealized appreciation 87,545,263 (1,421,498)
(depreciation)
Net increase (decrease) in 103,557,262 24,487,387
net assets from operations
Payments received from 7,513,162 6,532,880
contract owners
Transfers between 24,941,971 (17,347,796)
sub-accounts and the fixed
account, net
Transfers for contract (12,164,645) (8,696,657)
benefits and terminations
Other transfers (to) from 4,234 (19,610)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 20,294,722 (19,531,183)
net assets from contract
transactions
Retained in (returned from) (14,758) 2,875
Variable Annuity Account I,
net
Total increase (decrease) in 123,837,226 4,959,079
net assets
Net assets at beginning of year 255,668,374 250,709,295
Net assets at end of year $ 379,505,600 $ 255,668,374
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP II - INVESTMENT VIP II - ASSET MANAGER
GRADE BOND
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 8,127,719 $ 4,404,677 $ 19,966,835 $
17,925,804
Net realized gain on 3,401,686 3,229,425 59,405,964
89,224,512
investments
Unrealized appreciation (16,237,106) 4,439,938 (2,415,965)
(3,584,516)
(depreciation)
Net increase (decrease) in (4,707,701) 12,074,040 76,956,834
103,565,800
net assets from operations
Payments received from 11,926,064 11,683,573 11,134,826
12,519,190
contract owners
Transfers between (42,438,815) 127,113,509 (47,080,749)
(28,136,317)
sub-accounts and the fixed
account, net
Transfers for contract (18,481,934) (8,719,110) (51,761,153)
(50,593,986)
benefits and terminations
Other transfers (to) from 7,162 (74,990) (159,301) (55,296)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in (48,987,523) 130,002,982 (87,866,377)
(66,266,409)
net assets from contract
transactions
Retained in (returned from) (6,429) 606 (35,795) 15,446
Variable Annuity Account I,
net
Total increase (decrease) in (53,701,653) 142,077,628 (10,945,338)
37,314,837
net assets
Net assets at beginning of year 251,081,967 109,004,339 812,865,053
775,550,216
Net assets at end of year $ 197,380,314 $ 251,081,967 $ 801,919,715 $
812,865,053
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP II - INDEX 500 VIP II - ASSET MANAGER:
GROWTH
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 806,313 $ 1,663,041 $ 5,081,109 $ 3,876,267
Net realized gain on 92,329,081 63,364,172 32,387,097 46,310,728
investments
Unrealized appreciation 124,508,783 146,192,653 7,512,419 (1,663,981)
(depreciation)
Net increase (decrease) in 217,644,177 211,219,866 44,980,625 48,523,014
net assets from operations
Payments received from 41,913,743 44,069,986 9,448,324 11,653,847
contract owners
Transfers between 32,545,382 105,883,805 (23,374,601) (45,226,128)
sub-accounts and the fixed
account, net
Transfers for contract (36,869,546) (35,534,283) (11,322,189) (10,573,682)
benefits and terminations
Other transfers (to) from 42,586 85,476 (40,329) 13,593
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 37,632,165 114,504,984 (25,288,795) (44,132,370)
net assets from contract
transactions
Retained in (returned from) (71,526) 65,307 (14,340) (4,565)
Variable Annuity Account I,
net
Total increase (decrease) in 255,204,816 325,790,157 19,677,490 4,386,079
net assets
Net assets at beginning of year 1,066,865,828 741,075,671 328,633,446 324,247,367
Net assets at end of year $ 1,322,070,644 $ 1,066,865,828 $ 348,310,936 $ 328,633,446
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
VIP II - CONTRAFUND
12/31/99 12/31/98
Net investment income (loss) $ (6,442,970) $ (2,358,522)
Net realized gain on 148,645,881 115,223,215
investments
Unrealized appreciation 219,949,013 223,438,815
(depreciation)
Net increase (decrease) in 362,151,924 336,303,508
net assets from operations
Payments received from 50,161,456 40,420,854
contract owners
Transfers between 37,507,774 (39,056,459)
sub-accounts and the fixed
account, net
Transfers for contract (54,008,095) (37,401,390)
benefits and terminations
Other transfers (to) from 107,751 6,747
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 33,768,886 (36,030,248)
net assets from contract
transactions
Retained in (returned from) (51,523) 35,076
Variable Annuity Account I,
net
Total increase (decrease) in 395,869,287 300,308,336
net assets
Net assets at beginning of year 1,518,200,305 1,217,891,969
Net assets at end of year $ 1,914,069,592 $ 1,518,200,305
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
VIP III - GROWTH &
VIP III - BALANCED INCOME
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 1,582,481 $ 944,177 $ (1,572,025) $ (3,314,273)
Net realized gain on 9,204,238 5,622,219 79,107,330 7,089,324
investments
Unrealized appreciation (6,374,709) 6,090,310 (27,907,245) 99,729,988
(depreciation)
Net increase (decrease) in 4,412,010 12,656,706 49,628,060 103,505,039
net assets from operations
Payments received from 6,988,735 6,770,357 29,125,121 35,584,695
contract owners
Transfers between 7,342,988 33,261,216 (55,352,241) 204,942,506
sub-accounts and the fixed
account, net
Transfers for contract (6,160,455) (3,139,722) (22,609,519) (10,371,919)
benefits and terminations
Other transfers (to) from 13,799 (22,185) 31,178 (29,796)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 8,185,067 36,869,666 (48,805,461) 230,125,486
net assets from contract
transactions
Retained in (returned from) (828) (1,989) (67,783) 55,231
Variable Annuity Account I,
net
Total increase (decrease) in 12,596,249 49,524,383 754,816 333,685,756
net assets
Net assets at beginning of year 111,115,343 61,590,960 587,747,247 254,061,491
Net assets at end of year $ 123,711,592 $ 111,115,343 $ 588,502,063 $ 587,747,247
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
VIP III - GROWTH MSDWUF - EMERGING MARKETS
OPPORTUNITIES EQUITY
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 943,506 $ 478,229 $ (176,889) $ (6,861)
Net realized gain on 49,129,124 18,859,236 2,228,308 198,635
investments
Unrealized appreciation (37,906,680) 56,119,613 16,923,324 (1,271,839)
(depreciation)
Net increase (decrease) in 12,165,950 75,457,078 18,974,743 (1,080,065)
net assets from operations
Payments received from 13,230,641 22,707,942 2,075,239 662,190
contract owners
Transfers between (103,481,122) 46,362,214 40,713,185 3,132,046
sub-accounts and the fixed
account, net
Transfers for contract (10,322,606) (7,734,200) (1,329,321) (41,665)
benefits and terminations
Other transfers (to) from 6,223 18,591 7,833 3,198
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in (100,566,864) 61,354,547 41,466,936 3,755,769
net assets from contract
transactions
Retained in (returned from) (67,342) 54,411 (137) 12
Variable Annuity Account I,
net
Total increase (decrease) in (88,468,256) 136,866,036 60,441,542 2,675,716
net assets
Net assets at beginning of year 415,927,875 279,061,839 4,454,538 1,778,822
Net assets at end of year $ 327,459,619 $ 415,927,875 $ 64,896,080 $ 4,454,538
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MSDWUF - EMERGING MARKETS
DEBT
12/31/99 12/31/98
Net investment income (loss) $ 387,443 $ 224,698
Net realized gain on 52,286 31,585
investments
Unrealized appreciation 182,290 (1,105,348)
(depreciation)
Net increase (decrease) in 622,019 (849,065)
net assets from operations
Payments received from 416,636 385,556
contract owners
Transfers between 273,396 (235,454)
sub-accounts and the fixed
account, net
Transfers for contract (59,988) (2,839)
benefits and terminations
Other transfers (to) from 910 12
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 630,954 147,275
net assets from contract
transactions
Retained in (returned from) 431 (11)
Variable Annuity Account I,
net
Total increase (decrease) in 1,253,404 (701,801)
net assets
Net assets at beginning of year 2,153,635 2,855,436
Net assets at end of year $ 3,407,039 $ 2,153,635
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MSDWUF - GLOBAL EQUITY MSDWUF - INTERNATIONAL
MAGNUM
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ 55,482 $ 23,690 $ (4,300) $ (30,488)
Net realized gain on 1,082,452 383,478 87,686 488,359
investments
Unrealized appreciation (647,744) (13,408) 2,474,219 (1,107,058)
(depreciation)
Net increase (decrease) in 490,190 393,760 2,557,605 (649,187)
net assets from operations
Payments received from 1,324,280 2,573,393 396,375 1,938,850
contract owners
Transfers between (3,422,048) 13,267,550 (1,092,928) 9,227,074
sub-accounts and the fixed
account, net
Transfers for contract (484,218) (145,036) (402,623) (174,277)
benefits and terminations
Other transfers (to) from (536) 6,688 2,993 (1,810)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in (2,582,522) 15,702,595 (1,096,183) 10,989,837
net assets from contract
transactions
Retained in (returned from) (161) 121 22 (20)
Variable Annuity Account I,
net
Total increase (decrease) in (2,092,493) 16,096,476 1,461,444 10,340,630
net assets
Net assets at beginning of year 18,306,967 2,210,491 11,725,836 1,385,206
Net assets at end of year $ 16,214,474 $ 18,306,967 $ 13,187,280 $ 11,725,836
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PBHG - GROWTH II PBHG - SMALL CAP VALUE
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (200,218) $ (32,504) $ (321,079) $ (218,941)
Net realized gain on 867,275 225,669 2,287,120 1,417,645
investments
Unrealized appreciation 30,717,543 68,354 3,650,843 1,169,066
(depreciation)
Net increase (decrease) in 31,384,600 261,519 5,616,884 2,367,770
net assets from operations
Payments received from 3,883,840 850,883 2,539,992 6,007,615
contract owners
Transfers between 85,042,612 1,772,018 (6,626,178) 25,244,658
sub-accounts and the fixed
account, net
Transfers for contract (345,883) (74,612) (1,238,687) (771,427)
benefits and terminations
Other transfers (to) from 12,078 (85) 2,701 (610)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 88,592,647 2,548,204 (5,322,172) 30,480,236
net assets from contract
transactions
Retained in (returned from) (138) (2) (155) 55
Variable Annuity Account I,
net
Total increase (decrease) in 119,977,109 2,809,721 294,557 32,848,061
net assets
Net assets at beginning of year 5,011,598 2,201,877 41,078,481 8,230,420
Net assets at end of year $ 124,988,707 $ 5,011,598 $ 41,373,038 41,078,481
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
PBHG - LARGE CAP VALUE
12/31/99 12/31/98
Net investment income (loss) $ (291,007) $ (4,530)
Net realized gain on 3,870,481 599,744
investments
Unrealized appreciation (585,169) 2,352,195
(depreciation)
Net increase (decrease) in 2,994,305 2,947,409
net assets from operations
Payments received from 3,588,662 1,617,512
contract owners
Transfers between 10,944,342 14,686,725
sub-accounts and the fixed
account, net
Transfers for contract (1,118,795) (75,122)
benefits and terminations
Other transfers (to) from 11,457 (38,316)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 13,425,666 16,190,799
net assets from contract
transactions
Retained in (returned from) 20 (20)
Variable Annuity Account I,
net
Total increase (decrease) in 16,419,991 19,138,188
net assets
Net assets at beginning of year 19,897,931 759,743
Net assets at end of year $ 36,317,922 $ 19,897,931
</TABLE>
FIDELITY INVESTMENTS VARIABLE ANNUITY ACCOUNT I
OF
FIDELITY INVESTMENTS LIFE INSURANCE COMPANY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUBACCOUNTS INVESTING IN:
PBHG - TECHNOLOGY & PBHG - SELECT 20
COMMUNICATIONS
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (2,762,048) $ (111,535) $ (3,174,141) $ (850,513)
Net realized gain on 9,207,801 501,364 36,793,079 4,426,860
investments
Unrealized appreciation 676,031,390 4,097,815 287,462,086 54,862,065
(depreciation)
Net increase (decrease) in 682,477,143 4,487,644 321,081,024 58,438,412
net assets from operations
Payments received from 51,059,274 2,914,877 33,137,434 22,652,708
contract owners
Transfers between 677,999,380 11,118,897 44,079,310 203,599,981
sub-accounts and the fixed
account, net
Transfers for contract (8,579,567) (214,261) (9,333,271) (1,977,564)
benefits and terminations
Other transfers (to) from 260,165 (1,544) 110,152 (152,719)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 720,739,252 13,817,969 67,993,625 224,122,406
net assets from contract
transactions
Retained in (returned from) 1,563 23 (669) (1,003,458)
Variable Annuity Account I,
net
Total increase (decrease) in 1,403,217,958 18,305,636 389,073,980 281,557,360
net assets
Net assets at beginning of year 25,809,987 7,504,351 288,587,415 7,030,055
Net assets at end of year $ 1,429,027,945 $ 25,809,987 $ 677,661,395 $ 288,587,415
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SVIF - DISCOVERY FUND SVIF - MID CAP GROWTH
II FUND II
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (18,633) $ (15,019) $ (573,402) $ (51,950)
Net realized gain on 335,679 53,007 1,349,619 177,519
investments
Unrealized appreciation (87,515) 47,865 66,604,569 1,398,499
(depreciation)
Net increase (decrease) in 229,531 85,853 67,380,786 1,524,068
net assets from operations
Payments received from 146,300 491,666 14,044,251 1,725,445
contract owners
Transfers between 289,032 1,159,295 152,381,500 7,060,545
sub-accounts and the fixed
account, net
Transfers for contract (57,132) (73,254) (1,723,645) (127,725)
benefits and terminations
Other transfers (to) from 2,370 1,767 19,917 264
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 380,570 1,579,474 164,722,023 8,658,529
net assets from contract
transactions
Retained in (returned from) (4) (72) (217) 314
Variable Annuity Account I,
net
Total increase (decrease) in 610,097 1,665,255 232,102,592 10,182,911
net assets
Net assets at beginning of year 2,503,055 837,800 11,650,461 1,467,550
Net assets at end of year $ 3,113,152 $ 2,503,055 $ 243,753,053 $ 11,650,461
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SVIF - OPPORTUNITY FUND
II
12/31/99 12/31/98
Net investment income (loss) $ (297,094) $ (86,892)
Net realized gain on 4,031,294 1,495,715
investments
Unrealized appreciation 7,090,430 (453,869)
(depreciation)
Net increase (decrease) in 10,824,630 954,954
net assets from operations
Payments received from 3,435,223 4,918,575
contract owners
Transfers between 12,840,283 18,289,352
sub-accounts and the fixed
account, net
Transfers for contract (1,256,287) (215,435)
benefits and terminations
Other transfers (to) from (5,623) (2)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 15,013,596 22,992,490
net assets from contract
transactions
Retained in (returned from) 80 (331)
Variable Annuity Account I,
net
Total increase (decrease) in 25,838,306 23,947,113
net assets
Net assets at beginning of year 26,959,500 3,012,387
Net assets at end of year $ 52,797,806 $ 26,959,500
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - SMALL COMPANY WPT - INTERNATIONAL
GROWTH EQUITY
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (171,003) $ (110,109) $ 92,533 $ (10,297)
Net realized gain on 2,004,345 365,092 179,279 131,244
investments
Unrealized appreciation 12,968,059 (688,006) 3,699,852 (470,679)
(depreciation)
Net increase (decrease) in 14,801,401 (433,023) 3,971,664 (349,732)
net assets from operations
Payments received from 1,350,991 3,197,677 842,164 691,255
contract owners
Transfers between 11,333,526 9,924,432 11,659,796 3,128,429
sub-accounts and the fixed
account, net
Transfers for contract (647,647) (217,900) (267,100) (35,648)
benefits and terminations
Other transfers (to) from (1,097) 2,322 647 41,204
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 12,035,773 12,906,531 12,235,507 3,825,240
net assets from contract
transactions
Retained in (returned from) (334) 832 112 (25,097)
Variable Annuity Account I,
net
Total increase (decrease) in 26,836,840 12,474,340 16,207,283 3,450,411
net assets
Net assets at beginning of year 18,871,505 6,397,165 4,007,860 557,449
Net assets at end of year $ 45,708,345 $ 18,871,505 $ 20,215,143 $ 4,007,860
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
WPT - POST-VENTURE TOTAL
CAPITAL
12/31/99 12/31/98 12/31/99 12/31/98
Net investment income (loss) $ (55,782) $ (39,091) $ 79,078,853 $ 78,743,169
Net realized gain on 361,254 267,294 972,232,245 762,593,878
investments
Unrealized appreciation 3,847,450 (324,010) 1,686,291,277 698,755,704
(depreciation)
Net increase (decrease) in 4,152,922 (95,807) 2,737,602,375 1,540,092,751
net assets from operations
Payments received from 346,462 1,694,793 1,678,070,564 1,123,846,738
contract owners
Transfers between 1,608,293 3,942,912 1,748,970 11,223,924
sub-accounts and the fixed
account, net
Transfers for contract (124,952) (40,972) (500,817,028) (381,403,163)
benefits and terminations
Other transfers (to) from 221 (2,354) 678,256 (250,256)
Fidelity Investments Life
Insurance Co., net
Net increase (decrease) in 1,830,024 5,594,379 1,179,680,762 753,417,243
net assets from contract
transactions
Retained in (returned from) 20 (128) (604,517) (707,597)
Variable Annuity Account I,
net
Total increase (decrease) in 5,982,966 5,498,444 3,916,678,620 2,292,802,397
net assets
Net assets at beginning of year 6,739,331 1,240,887 9,812,360,123 7,519,557,726
Net assets at end of year $ 12,722,297 $ 6,739,331 $ 13,729,038,743 $ 9,812,360,123
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
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 State of 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. 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.
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.
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.
ANNUITY RESERVES
Annuity reserves are computed for contracts in the payout stage
according to the 1983 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.
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. 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.
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 for
administrative expenses and for the assumption of mortality risk and
expense risk. The daily charge is equivalent to an annual effective
rate of 1% of net assets for Income Advantage contracts and is
equivalent to an annual effective rate of 0.8% of net assets for
Retirement Reserves contracts. FILI also deducts an annual maintenance
charge of $30 from the Retirement Reserves contract value. The
maintenance charge is waived on certain contracts.
In 1999, FILI began offering Retirement Reserves contractholders the
opportunity to elect a death benefit rider. If elected, FILI deducts a
quarterly charge which will not exceed 0.10% of the Retirement Reserve
contract value on the date of the charge. There will be no charges
made once the annuitant reaches their 85th birthday.
4. AFFILIATED COMPANY TRANSACTIONS
The contracts are distributed through Fidelity Brokerage Services,
Inc. (FBSI), Fidelity Insurance Agency, Inc. (FIA), and Fidelity
Investments Institutional Services Company, Inc. (FIIS), all of which
are affiliated with FMR Corp. FBSI, FIA, and FIIS 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 the VIP, VIP II and VIP III portfolios. Fidelity
Investments Institutional Operations Company, Inc., an affiliate of
FMR Corp., is the transfer and shareholder servicing agent for the
VIP, VIP II and VIP III 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 $ 761,591,353 $ 456,464,644
VIP - High Income 114,614,588 125,337,886
VIP - Equity-Income 181,351,922 415,746,236
VIP - Growth 554,076,266 85,510,250
VIP - Overseas 73,781,115 45,641,426
VIP II - Investment Grade Bond 82,497,677 120,206,583
VIP II - Asset Manager 106,566,746 140,928,128
VIP II - Index 500 221,435,138 175,759,513
VIP II - Asset Manager: Growth 65,188,960 72,428,177
VIP II - Contrafund 256,696,762 174,117,298
VIP III - Balanced 67,707,564 54,839,543
VIP III - Growth & Income 164,527,899 207,370,561
VIP III - Growth Opportunities 49,272,147 141,189,921
MSDWUF - Emerging Markets 62,474,483 21,184,573
Equity
MSDWUF - Emerging Markets Debt 8,145,756 7,126,928
MSDWUF - Global Equity 7,236,563 8,994,665
MSDWUF - International Magnum 11,726,626 12,770,586
PBHG - Growth II 93,891,460 5,499,169
PBHG - Small Cap Value 23,534,140 29,177,546
PBHG - Large Cap Value 30,255,243 16,238,075
PBHG - Technology & 743,673,703 25,694,936
Communications
PBHG - Select 20 183,360,841 118,542,026
SVIF - Discovery Fund II 3,804,697 3,149,931
SVIF - Mid Cap Growth Fund II 169,254,987 5,077,532
SVIF - Opportunity Fund II 30,210,304 12,507,757
WPT - Small Company Growth 25,543,796 12,515,116
WPT - International Equity 20,011,957 7,683,805
WPT - Post-Venture Capital 5,533,282 3,759,020
6. UNIT VALUES
A summary of changes in accumulation units and ending unit and
contract values for variable annuity contracts at December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
BEGINNING PAYMENTS TRANSFERS CONTRACT ENDING ENDING
BALANCE RECEIVED BETWEEN TERMINATIONS BALANCE BALANCE
UNITS FROM SUBACCOUNTS, UNITS UNIT
CONTRACT NET VALUE
OWNERS
JANUARY 1, 1999 TO DECEMBER
31, 1999
VIP - Money Market 42,335,962 65,024,585 (41,035,176) (8,887,660) 57,437,711 $ 17.441547
VIP - High Income 9,274,597 356,331 (1,152,725) (577,959) 7,900,244 $ 29.532615
VIP - Equity-Income 34,627,026 449,858 (5,652,786) (1,641,911) 27,782,187 $ 46.009566
VIP - Growth 22,783,884 917,019 4,471,613 (1,275,819) 26,896,697 $ 80.674535
VIP - Overseas 9,537,903 253,497 597,373 (505,710) 9,883,063 $ 37.223575
VIP II - Investment Grade Bond 11,642,575 594,181 (2,212,000) (1,098,275) 8,926,481 $ 19.870115
VIP II - Asset Manager 27,415,335 383,845 (1,751,559) (2,091,084) 23,956,537 $ 31.190611
VIP II - Index 500 32,083,136 1,235,693 661,926 (1,547,376) 32,433,379 $ 37.781601
VIP II - Asset Manager: Growth 14,675,155 433,529 (1,260,297) (799,765) 13,048,622 $ 23.934865
VIP II - Contrafund 55,426,745 1,771,928 970,357 (2,703,228) 55,465,802 $ 32.540456
VIP III - Balanced 6,933,405 490,301 166,077 (785,249) 6,804,534 $ 14.501916
VIP III - Growth & Income 32,986,321 1,728,512 (3,180,687) (2,214,891) 29,319,255 $ 17.646534
VIP III - Growth Opportunities 25,247,156 840,484 (6,314,478) (873,262) 18,899,900 $ 16.153367
MSDWUF - Emerging Markets 586,128 192,894 3,620,769 (244,810) 4,154,981 $ 14.679023
Equity
MSDWUF - Emerging Markets Debt 280,904 49,309 27,232 (11,517) 345,928 $ 9.552515
MSDWUF - Global Equity 1,504,399 113,578 (260,807) (55,665) 1,301,505 $ 11.916163
MSDWUF - International Magnum 998,415 34,400 (56,609) (33,180) 943,026 $ 13.230131
PBHG - Growth II 439,863 237,579 4,898,992 (59,641) 5,516,793 $ 21.422237
PBHG - Small Cap Value 3,428,665 226,116 (501,445) (218,824) 2,934,512 $ 13.200297
PBHG - Large Cap Value 1,331,167 249,185 780,998 (157,007) 2,204,343 $ 15.178062
PBHG - Technology & 1,929,033 2,150,661 28,462,505 (976,099) 31,566,100 $ 42.930574
Communications
PBHG - Select 20 16,529,457 1,757,084 1,889,829 (991,944) 19,184,426 $ 33.424799
SVIF - Discovery Fund II 215,120 15,494 32,424 (240) 262,798 $ 10.752497
SVIF - Mid Cap Growth Fund II 832,891 771,508 7,775,504 (185,340) 9,194,563 $ 24.646794
SVIF - Opportunity Fund II 2,219,038 257,304 858,223 (153,946) 3,180,619 $ 15.294116
WPT - Small Company Growth 1,848,787 116,290 791,446 (176,432) 2,580,091 $ 16.470689
WPT - International Equity 374,074 60,831 828,057 (18,380) 1,244,582 $ 15.725838
WPT - Post-Venture Capital 588,128 28,870 90,036 (12,779) 694,255 $ 17.570342
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
DOLLARS
JANUARY 1, 1999 TO DECEMBER
31, 1999
VIP - Money Market $ 1,001,802,532
VIP - High Income 233,314,877
VIP - Equity-Income 1,278,246,354
VIP - Growth 2,169,878,531
VIP - Overseas 367,882,944
VIP II - Investment Grade Bond 177,370,216
VIP II - Asset Manager 747,219,001
VIP II - Index 500 1,225,385,001
VIP II - Asset Manager: Growth 312,317,022
VIP II - Contrafund 1,804,882,506
VIP III - Balanced 98,678,783
VIP III - Growth & Income 517,383,238
VIP III - Growth Opportunities 305,297,025
MSDWUF - Emerging Markets 60,991,052
Equity
MSDWUF - Emerging Markets Debt 3,304,486
MSDWUF - Global Equity 15,508,952
MSDWUF - International Magnum 12,476,345
PBHG - Growth II 118,182,069
PBHG - Small Cap Value 38,736,436
PBHG - Large Cap Value 33,457,653
PBHG - Technology & 1,355,150,794
Communications
PBHG - Select 20 641,235,580
SVIF - Discovery Fund II 2,825,743
SVIF - Mid Cap Growth Fund II 226,616,507
SVIF - Opportunity Fund II 48,644,756
WPT - Small Company Growth 42,495,873
WPT - International Equity 19,572,101
WPT - Post-Venture Capital 12,198,288
$ 12,871,054,665
</TABLE>
6. UNIT VALUES - CONTINUED
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
BEGINNING PAYMENTS TRANSFERS CONTRACT ENDING ENDING
BALANCE RECEIVED BETWEEN TERMINATIONS BALANCE BALANCE
UNITS FROM SUBACCOUNTS, UNITS UNIT
CONTRACT NET VALUE
OWNERS
JANUARY 1, 1998 TO DECEMBER
31, 1998
VIP - Money Market 28,256,730 53,473,071 (31,221,377) (8,172,462) 42,335,962 $ 16.718442
VIP - High Income 10,481,116 651,046 (1,222,100) (635,465) 9,274,597 $ 27.525979
VIP - Equity-Income 40,838,032 680,307 (4,883,340) (2,007,973) 34,627,026 $ 43.619607
VIP - Growth 23,048,124 503,652 247,746 (1,015,638) 22,783,884 $ 59.172379
VIP - Overseas 10,512,524 249,861 (808,508) (415,974) 9,537,903 $ 26.308910
VIP II - Investment Grade Bond 5,524,907 601,825 6,493,163 (977,320) 11,642,575 $ 20.242828
VIP II - Asset Manager 30,320,855 477,314 (1,046,747) (2,336,087) 27,415,335 $ 28.302849
VIP II - Index 500 28,695,264 1,600,404 3,712,872 (1,925,404) 32,083,136 $ 31.604128
VIP II - Asset Manager: Growth 17,201,030 608,493 (2,402,390) (731,978) 14,675,155 $ 20.933935
VIP II - Contrafund 57,789,065 1,791,259 (1,947,601) (2,205,978) 55,426,745 $ 26.399736
VIP III - Balanced 4,649,810 524,844 2,527,177 (768,426) 6,933,405 $ 13.982944
VIP III - Growth & Income 18,798,233 2,515,821 14,337,709 (2,665,442) 32,986,321 $ 16.294958
VIP III - Growth 21,154,834 1,669,675 3,510,201 (1,087,554) 25,247,156 $ 15.616534
Opportunities
MSDWUF - Emerging Markets 176,936 69,786 348,445 (9,039) 586,128 $ 7.561799
Equity
MSDWUF - Emerging Markets 270,613 37,746 (18,180) (9,275) 280,904 $ 7.443062
Debt
MSDWUF - Global Equity 214,479 228,308 1,160,084 (98,472) 1,504,399 $ 11.539332
MSDWUF - International Magnum 126,071 175,181 806,757 (109,594) 998,415 $ 10.652996
PBHG - Growth II 198,868 83,110 167,957 (10,072) 439,863 $ 10.895644
PBHG - Small Cap Value 760,923 539,438 2,325,754 (197,450) 3,428,665 $ 11.477768
PBHG - Large Cap Value 71,061 134,930 1,218,750 (93,574) 1,331,167 $ 14.051655
PBHG - Technology & 746,784 277,870 978,928 (74,549) 1,929,033 $ 12.942126
Communications
PBHG - Select 20 551,473 1,714,311 15,088,136 (824,463) 16,529,457 $ 16.795293
SVIF - Discovery Fund II 69,087 49,186 115,355 (18,508) 215,120 $ 10.314283
SVIF - Mid Cap Growth Fund II 139,945 154,865 608,714 (70,633) 832,891 $ 13.084892
SVIF - Opportunity Fund II 277,353 444,329 1,651,011 (153,655) 2,219,038 $ 11.428140
WPT - Small Company Growth 596,845 317,788 1,001,041 (66,887) 1,848,787 $ 9.819912
WPT - International Equity 54,981 62,350 268,596 (11,853) 374,074 $ 10.331959
WPT - Post-Venture Capital 120,198 154,767 349,002 (35,839) 588,128 $ 10.833075
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
DOLLARS
JANUARY 1, 1998 TO DECEMBER
31, 1998
VIP - Money Market $ 707,791,321
VIP - High Income 255,292,340
VIP - Equity-Income 1,510,417,235
VIP - Growth 1,348,176,594
VIP - Overseas 250,931,855
VIP II - Investment Grade Bond 235,678,611
VIP II - Asset Manager 775,932,084
VIP II - Index 500 1,013,959,556
VIP II - Asset Manager: Growth 307,208,746
VIP II - Contrafund 1,463,251,419
VIP III - Balanced 96,949,417
VIP III - Growth & Income 537,510,714
VIP III - Growth 394,273,082
Opportunities
MSDWUF - Emerging Markets 4,432,182
Equity
MSDWUF - Emerging Markets 2,090,788
Debt
MSDWUF - Global Equity 17,359,758
MSDWUF - International Magnum 10,636,111
PBHG - Growth II 4,792,592
PBHG - Small Cap Value 39,353,426
PBHG - Large Cap Value 18,705,104
PBHG - Technology & 24,965,791
Communications
PBHG - Select 20 277,617,062
SVIF - Discovery Fund II 2,218,812
SVIF - Mid Cap Growth Fund II 10,898,297
SVIF - Opportunity Fund II 25,359,470
WPT - Small Company Growth 18,154,923
WPT - International Equity 3,864,918
WPT - Post-Venture Capital 6,371,227
$ 9,364,193,435
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Contractholders of Fidelity Investments Variable Annuity
Account I of Fidelity Investments Life Insurance Company:
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 Retirement Reserves (policy form NRR-96100), 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., Fidelity Investments Insurance Agency of
Texas, Inc. and Fidelity Investments Institutional Services Company,
Inc. are the distributors.
82 Devonshire Street, Boston, MA 02109
