Life of Virginia Separate Account IV
STATEMENT OF ASSETS
& LIABILITIES
(UNAUDITED)
June 30, 1997
A GE Capital Services Company
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
TABLE OF CONTENTS
For the six months ended June 30, 1997
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PAGE
Financial Statements:
Statement of Assets and Liabilities............... 1
Statement of Operations........................... 7
Statement of Changes in Net Assets............... 13
Notes to Financial Statements............................ 19
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<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Assets and Liabilities
As of June 30, 1997
<TABLE>
<CAPTION>
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GE Investments Funds, Inc.
---------------------------------------------------------------
S&P 500 Government Money Total
Index Securities Market Return
Assets Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc., at fair value (note 2):
S&P 500 Index Fund (5,544,936 shares;
cost - $98,198,880) $99,143,460 -- -- --
Government Securities Fund (1,184,148 shares;
cost - $12,027,641) -- 11,450,707 -- --
Money Market Fund (111,914,248 shares;
cost - $167,711,572) -- -- 111,914,248 --
Total Return Portolio (2,714,698 shares;
cost - $38,938,968) -- -- -- 38,141,509
International Equity Fund (1,886,951 shares;
cost - $21,020,382) -- -- -- 24,020,886
Real Estate Securities Fund
(2,529,043 shares; cost - $32,431,967) -- -- -- --
Global Income Fund
(506,628 shares; cost - $5,067,357) -- -- -- --
Value Equity Fund (369,896 shares; cost $3,781,813) -- -- -- --
Receivable from affiliate (note 3) 88,130 -- -- 26,008
Receivable for units sold 258,285 44,159 4,924,211 31,405
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Total assets $99,489,875 11,494,866 116,838,459 38,198,922
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Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 71,983 8,058 422,157 18,692
Payable for units withdrawn 2,554 1,000 -- --
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Total liabilities 74,537 9,058 422,157 18,692
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Net assets $99,415,338 11,485,808 116,416,302 38,180,230
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Analysis of net assets:
For variable deferred annuity policies $99,415,338 11,485,808 116,416,302 38,180,230
Attributable to The Life Insurance Company of Virginia -- -- -- --
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Net assets $99,415,338 11,485,808 116,416,302 38,180,230
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Outstanding units: Type I (note 2) 774,719 381,048 2,888,040 646,339
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Net asset value per unit: Type I $ 36.12 17.03 14.48 27.25
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Outstanding units: Type II (note 2) 2,023,540 299,899 5,272,111 772,609
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Net asset value per unit: Type II $ 35.30 16.66 14.15 26.63
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<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
--------------------------------------------------------------
International Real Estate Global Value
Equity Securities Income Equity
Assets Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in GE Investments Funds, Inc., at fair value (note 2):
S&P 500 Index Fund (5,544,936 shares;
cost - $98,198,880) -- -- -- --
Government Securities Fund (1,184,148 shares;
cost - $12,027,641) -- -- -- --
Money Market Fund (111,914,248 shares;
cost - $167,711,572) -- -- -- --
Total Return Portolio (2,714,698 shares;
cost - $38,938,968) -- -- -- --
International Equity Fund (1,886,951 shares;
cost - $21,020,382) 24,020,886 -- -- --
Real Estate Securities Fund
(2,529,043 shares; cost - $32,431,967) -- 38,744,938 -- --
Global Income Fund
(506,628 shares; cost - $5,067,357) -- -- 5,162,537 --
Value Equity Fund (369,896 shares; cost $3,781,813) -- -- -- 4,235,306
Receivable from affiliate (note 3) 2,321 21,224 29 360
Receivable for units sold 31,457 67,238 -- 25,991
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Total assets 24,054,664 38,833,400 5,162,566 4,261,657
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Liabilities
- ----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 5,558 9,533 26 328
Payable for units withdrawn 59 907 -- --
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Total liabilities 5,617 10,440 26 328
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Net assets 24,049,047 38,822,960 5,162,540 4,261,329
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Analysis of net assets:
For variable deferred annuity policies 10,262,714 21,515,390 67,540 826,329
Attributable to The Life Insurance Company of Virginia 13,786,333 17,307,570 5,095,000 3,435,000
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Net assets 24,049,047 38,822,960 5,162,540 4,261,329
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Outstanding units: Type I (note 2) 1,203,346 1,309,806 502,815 335,040
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Net asset value per unit: Type I 13.44 16.87 10.17 11.43
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Outstanding units: Type II (note 2) 586,054 996,301 4,762 37,859
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Net asset value per unit: Type II 13.43 16.79 10.17 11.42
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</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
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Oppenheimer Variable Account Funds
-----------------------------------------------------
Capital
Money Bond Appreciation
Assets Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable Account Funds, at fair value (note 2):
Money Fund (2,359,109 shares; cost - $2,359,109) $ 2,359,109 --
Bond Fund (2,914,562 shares; cost - $33,465,608) -- 33,663,197 --
Capital Appreciation Fund
(4,812,824 shares; cost - $161,168,883) -- -- 187,892,648
Growth Fund (3,477,959 shares; cost - $85,556,719) -- -- --
High Income Fund (9,714,145 shares;
cost - $105,953,448) -- -- --
Multiple Strategies Fund (3,896,944 shares;
cost - $55,105,069) -- -- --
Receivable from affiliate (note 3) 34,189 4,453 28,199
Receivable for units sold -- 92,356 144,211
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Total assets $ 2,393,298 33,760,006 188,065,058
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Liabilities
---------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 4,040 24,452 507,211
Payable for units withdrawn 19,154 -- 28,664
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Total liabilities 23,194 24,452 535,875
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Net assets for variable deferred annuity policies $ 2,370,104 33,735,554 187,529,183
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Outstanding units: Type I (note 2) 138,666 897,249 2,671,103
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Net asset value per unit: Type I $ 15.09 19.82 35.01
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Outstanding units: Type II (note 2) 18,796 823,588 2,747,977
---------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II $ 14.75 19.37 34.21
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<CAPTION>
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Oppenheimer Variable Account Funds
--------------------------------------------
High Multiple
Growth Income Strategies
Assets Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable Account Funds, at fair value (note 2):
Money Fund (2,359,109 shares; cost - $2,359,109) -- --
Bond Fund (2,914,562 shares; cost - $33,465,608) -- -- --
Capital Appreciation Fund
(4,812,824 shares; cost - $161,168,883) -- --
Growth Fund (3,477,959 shares; cost - $85,556,719) 102,251,987 -- --
High Income Fund (9,714,145 shares;
cost - $105,953,448) -- 108,215,571 --
Multiple Strategies Fund (3,896,944 shares;
cost - $55,105,069) -- -- 62,857,712
Receivable from affiliate (note 3) -- 66,914 --
Receivable for units sold 193,010 -- 75,105
--------------------------------------------------------------------------------------------------------------------------------
Total assets 102,444,997 108,282,485 62,932,817
--------------------------------------------------------------------------------------------------------------------------------
Liabilities
--------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 72,063 46,474 95,247
Payable for units withdrawn -- 4,442,031 14,887
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Total liabilities 72,063 4,488,505 110,134
--------------------------------------------------------------------------------------------------------------------------------
Net assets for variable deferred annuity policies 102,372,934 103,793,980 62,822,683
--------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,252,042 1,379,426 1,586,116
--------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 34.30 29.40 24.76
--------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 1,773,360 2,200,617 973,703
--------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 33.52 28.74 24.19
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
---------------------------------------------------
Money High Equity
Market Income Income
Assets Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products Fund, at fair value (note 2):
Money Market Portfolio (18,639,613 shares;
cost - $18,639,613) $18,639,613 -- --
High Income Portfolio (1,918,521 shares;
cost - $21,410,942) -- 23,847,222 --
Equity-Income Portfolio (23,418,502 shares;
cost - $428,837,943) -- -- 516,612,148
Growth Portfolio (8,226,686 shares;
cost - $220,391,679) -- -- --
Overseas Portfolio (6,000,793 shares;
cost - $99,709,071) -- -- --
Accrued investment income 86,340 -- --
Receivable from affiliate (note 3) -- 447 104,775
Receivable for units sold -- -- 821,956
- -----------------------------------------------------------------------------------------------------------------------------
Total assets $18,725,953 23,847,669 517,538,879
- -----------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 134,093 11,096 239,378
Payable for units withdrawn 11,438 2,322 --
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities 145,531 13,418 239,378
- -----------------------------------------------------------------------------------------------------------------------------
Net assets for variable deferred annuity policies $18,580,422 23,834,251 517,299,501
- -----------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 994,023 653,936 7,341,667
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I $ 15.13 25.82 31.14
- -----------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 239,740 275,576 8,650,523
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II $ 14.78 25.23 33.37
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
------------------------------------
Growth Overseas
Assets Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products Fund, at fair value (note 2):
Money Market Portfolio (18,639,613 shares;
cost - $18,639,613) -- --
High Income Portfolio (1,918,521 shares;
cost - $21,410,942) -- --
Equity-Income Portfolio (23,418,502 shares;
cost - $428,837,943) -- --
Growth Portfolio (8,226,686 shares;
cost - $220,391,679) 281,352,676 --
Overseas Portfolio (6,000,793 shares;
cost - $99,709,071) -- 120,255,895
Accrued investment income -- --
Receivable from affiliate (note 3) 108,702 --
Receivable for units sold 94,898 85,599
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Total assets 281,556,276 120,341,494
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Liabilities
- -----------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 220,922 161,958
Payable for units withdrawn 33,429 26,191
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Total liabilities 254,351 188,149
- -----------------------------------------------------------------------------------------------------------
Net assets for variable deferred annuity policies 281,301,925 120,153,345
- -----------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 4,499,438 3,732,276
- -----------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 36.53 22.22
- -----------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 3,275,651 1,715,456
- -----------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 35.70 21.71
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Variable Insurance
Products Fund II Product Fund III
----------------------------- --------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Assets Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products Fund II,
at fair value (note 2):
Asset Manager Portfolio (27,925,375 shares;
cost - $405,175,838) $463,561,224 -- -- --
Contrafund Portfolio (10,646,616 shares;
cost - $158,779,340) -- 190,893,832 -- --
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (188,849 shares;
cost - $2,112,854) -- -- 2,169,872 --
Growth Opportunities Portfolio
(169,417 shares; cost - $2,818,534) -- -- -- 2,900,422
Investment in Advisers Management Trust,
at fair value (note 2):
Balanced Portfolio (1,850,845 shares;
cost - $27,207,968) -- -- -- 30,687,005
Bond Portfolio (620,712 shares; cost - $8,674,903) -- -- -- --
Growth Portfolio (419,628 shares; cost - $9,983,418) -- -- -- --
Receivable from affiliate (note 3) 2,842 116,062 1,211 2,699
Receivable for units sold 57,820 222,843 53,682 119,485
------------------------------------------------------------------------------------------------------------------------------
Total assets $463,621,886 191,232,737 2,224,765 3,022,606
------------------------------------------------------------------------------------------------------------------------------
Liabilities
------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,004,407 83,228 1,270 1,560
Payable for units withdrawn 182,552 7,282 -- --
------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,186,959 90,510 1,270 1,560
------------------------------------------------------------------------------------------------------------------------------
Net assets $462,434,927 191,142,227 2,223,495 3,021,046
------------------------------------------------------------------------------------------------------------------------------
Analysis of net assets:
For variable deferred annuity policies $462,434,927 191,142,227 2,223,495 3,021,046
Attributable to The Life Insurance Company of Virginia -- -- -- --
------------------------------------------------------------------------------------------------------------------------------
Net assets $462,434,927 191,142,227 2,223,495 3,021,046
------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 17,924,444 3,217,148 42,373 109,978
------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I $ 22.74 18.52 11.13 10.99
------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 2,457,747 7,149,219 157,729 165,012
------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II $ 22.30 18.40 11.11 10.98
------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Advisers Management Trust
----------------------------------------------
Balanced Bond Growth
Assets Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products Fund II,
at fair value (note 2):
Asset Manager Portfolio (27,925,375 shares;
cost - $405,175,838) -- -- --
Contrafund Portfolio (10,646,616 shares;
cost - $158,779,340) -- --
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (188,849 shares;
cost - $2,112,854) -- -- --
Growth Opportunities Portfolio
(169,417 shares; cost - $2,818,534) -- -- --
Investment in Advisers Management Trust,
at fair value (note 2):
Balanced Portfolio (1,850,845 shares;
cost - $27,207,968) 30,687,005 -- --
Bond Portfolio (620,712 shares; cost - $8,674,903) -- 8,454,091
Growth Portfolio (419,628 shares; cost - $9,983,418) -- 11,640,477
Receivable from affiliate (note 3) 1,994 -- 5,184
Receivable for units sold -- -- 18
-------------------------------------------------------------------------------------------------------------
Total assets 30,688,999 8,454,091 11,645,679
-------------------------------------------------------------------------------------------------------------
Liabilities
-------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 37,262 57,561 12,408
Payable for units withdrawn 4,680 11,084 4,471
-------------------------------------------------------------------------------------------------------------
Total liabilities 41,942 68,645 16,879
-------------------------------------------------------------------------------------------------------------
Net assets 30,647,057 8,385,446 11,628,800
-------------------------------------------------------------------------------------------------------------
Analysis of net assets:
For variable deferred annuity policies 30,044,558 8,385,446 11,628,800
Attributable to The Life Insurance Company of Virginia 602,499 -- --
-------------------------------------------------------------------------------------------------------------
Net assets 30,647,057 8,385,446 11,628,800
-------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,544,405 472,262 501,694
-------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 18.32 12.53 17.87
-------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 131,273 199,330 151,076
-------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 17.96 12.37 17.64
-------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Investors Insurance Series Alger American Fund
------------------------------------------- ---------------------------
American High Small
Leaders Income Bond Utility Cap Growth
Assets Fund II Fund II Fund II Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors Insurance Series,
at fair value (note 2):
American Leaders Fund II (884,490 shares;
cost - $14,121,047) $15,478,577 -- -- -- --
High Income Bond Fund II (1,844,405 shares;
cost - $18,620,132) -- 19,089,593 -- -- --
Utility Fund II (1,975,994 shares; -- -- 24,443,047 -- --
cost - $21,706,006)
Investment in Alger American,
at fair value (note 2):
Small Cap Portfolio (1,413,240 shares;
cost - $56,794,215) -- -- -- 55,865,365 --
Growth Portfolio (1,503,018 shares;
cost - $50,899,028) -- -- -- -- 59,414,308
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Large Cap Portfolio
(46,789 shares; cost - $491,605) -- -- -- -- --
PBHG Growth II Portfolio
(118,647 shares; cost - $1,208,397) -- -- -- -- --
Receivable from affiliate (note 3) 6,372 90 15,714 17,448 20,805
Receivable for units sold 100,892 166,404 26,267 97,016 60,415
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Total assets $15,585,841 19,256,087 24,485,028 55,979,829 59,495,528
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 6,714 25,325 11,185 37,922 60,001
Payable for units withdrawn 98,127 -- -- 2,610 101,852
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Total liabilities 104,841 25,325 11,185 40,532 161,853
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Net assets for variable deferred annuity policies $15,481,000 19,230,762 24,473,843 55,939,297 59,333,675
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 199,458 283,191 480,101 1,278,786 1,118,710
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I $ 12.98 14.17 14.61 9.67 12.48
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 996,047 1,081,054 1,202,880 4,527,376 3,652,837
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II $ 12.94 14.08 14.52 9.63 12.42
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
PBHG Insurance Series Fund
-----------------------------
PBHG PBHG
Large Cap Growth II
Assets Portfolio Portfolio
- ------------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors Insurance Series,
at fair value (note 2):
American Leaders Fund II (884,490 shares;
cost - $14,121,047) -- --
High Income Bond Fund II (1,844,405 shares;
cost - $18,620,132) -- --
Utility Fund II (1,975,994 shares; -- --
cost - $21,706,006)
Investment in Alger American,
at fair value (note 2):
Small Cap Portfolio (1,413,240 shares;
cost - $56,794,215) --
Growth Portfolio (1,503,018 shares;
cost - $50,899,028) --
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Large Cap Portfolio
(46,789 shares; cost - $491,605) 504,383 --
PBHG Growth II Portfolio
(118,647 shares; cost - $1,208,397) -- 1,239,862
Receivable from affiliate (note 3) 222 318
Receivable for units sold 18,967 44,885
- ---------------------------------------------------------------------------------------
Total assets 523,572 1,285,065
- ---------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 213 667
Payable for units withdrawn -- --
- ---------------------------------------------------------------------------------------
Total liabilities 213 667
- ---------------------------------------------------------------------------------------
Net assets for variable deferred annuity policies 523,359 1,284,398
- ---------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 4,961 35,265
- ---------------------------------------------------------------------------------------
Net asset value per unit: Type I 10.76 10.43
- ---------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 43,699 87,913
- ---------------------------------------------------------------------------------------
Net asset value per unit: Type II 10.76 10.43
- ---------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Assets and Liabilities, Continued
As of June 30, 1997
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
-------------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series, at fair value (note 2):
Aggressive Growth Portfolio
(4,868,777 shares; cost - $79,773,263) $91,143,506 -- -- --
Growth Portfolio (11,442,966 shares;
shares; cost - $159,567,917) -- 195,674,715 -- --
Worldwide Growth Portfolio
(12,717,192 shares; cost - $230,066,431) -- -- 290,206,327 --
Balanced Portfolio (1,936,869 shares;
cost - $28,541,060) -- -- -- 31,396,650
Flexible Income Portfolio
(773,493 shares; cost - $8,724,863) -- -- -- --
International Growth Portfolio
(2,236,360 shares; cost - $37,064,321) -- -- -- --
Capital Appreciation Portfolio
(35,422 shares; cost - $400,976) -- -- -- --
Receivable from affiliate (note 3) 31,009 32,097 80,861 17,458
Receivable for units sold 55,484 268,116 681,812 62,416
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets $91,229,999 195,974,928 290,969,000 31,476,524
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 39,636 179,129 140,017 13,568
Payable for units withdrawn 27,481 -- 168,806 14,952
- ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 67,117 179,129 308,823 28,520
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets for variable deferred annuity policies $91,162,882 195,795,799 290,660,177 31,448,004
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,871,129 4,698,310 4,891,961 537,421
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I $ 18.56 17.78 22.62 13.63
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 3,068,968 6,375,674 8,033,742 1,777,497
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II $ 18.39 17.61 22.41 13.57
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Janus Aspen Series
---------------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series, at fair value (note 2):
Aggressive Growth Portfolio
(4,868,777 shares; cost - $79,773,263) -- -- --
Growth Portfolio (11,442,966 shares;
shares; cost - $159,567,917) -- -- --
Worldwide Growth Portfolio
(12,717,192 shares; cost - $230,066,431) -- -- --
Balanced Portfolio (1,936,869 shares;
cost - $28,541,060) -- -- --
Flexible Income Portfolio
(773,493 shares; cost - $8,724,863) 8,724,997 -- --
International Growth Portfolio
(2,236,360 shares; cost - $37,064,321) -- 41,305,563 --
Capital Appreciation Portfolio
(35,422 shares; cost - $400,976) -- -- 416,205
Receivable from affiliate (note 3) 1,626 8,463 1
Receivable for units sold 16,488 58,327 --
- --------------------------------------------------------------------------------------------------------
Total assets 8,743,111 41,372,353 416,206
- --------------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 3,984 20,197 2,751
Payable for units withdrawn -- -- 83
- --------------------------------------------------------------------------------------------------------
Total liabilities 3,984 20,197 2,834
- --------------------------------------------------------------------------------------------------------
Net assets for variable deferred annuity policies 8,739,127 41,352,156 413,372
- --------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 167,645 949,284 24,587
- --------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 11.76 13.75 11.73
- --------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 578,352 2,064,810 10,664
- --------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 11.70 13.71 11.72
- --------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Operations
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-----------------------------------------------------------------
S&P 500 Government Money Total
Index Securities Market Return
Fund Fund Fund Fund
-----------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ -- -- 106,695,336 --
Expenses - Mortality and expense risk charges (note 3) 497,008 73,358 681,585 226,545
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (497,008) (73,358) 106,013,751 (226,545)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) (1,767,956) (293,781) (52,069,388) (500,306)
Unrealized appreciation (depreciation) on investments 14,892,238 410,124 (51,958,819) 4,073,192
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 13,124,282 116,343 (104,028,207) 3,572,886
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 12,627,274 42,985 1,985,544 3,346,341
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
------------------------------------------------------------------
International Real Estate Global Value
Equity Securities Income Equity
Fund Fund Fund Fund
------------------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/97 Ended 6/30/97 5/1-6/30/97 5/1-6/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends -- -- -- --
Expenses - Mortality and expense risk charges (note 3) 45,683 107,019 48 840
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income (45,683) (107,019) (48) (840)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 258,923 1,452,067 30 15,442
Unrealized appreciation (depreciation) on investments 2,985,743 1,203,706 95,180 453,493
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 3,244,666 2,655,773 95,210 468,935
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 3,198,983 2,548,754 95,162 468,095
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Operations, Continued
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
----------------------------------------------------------------
Capital
Money Bond Appreciation Growth
Fund Fund Fund Fund
-----------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 64,659 1,152,306 8,221,818 4,911,400
Expenses - Mortality and expense risk charges (note 3) 15,018 203,541 1,042,687 537,144
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income 49,641 948,765 7,179,131 4,374,256
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized (loss) gain on investments:
Net realized gain -- 37,697 2,019,150 1,866,878
Unrealized appreciation (depreciation) on investments -- (247,016) 1,654,178 5,021,556
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized (loss) gain on investments -- (209,319) 3,673,328 6,888,434
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $ 49,641 739,446 10,852,459 11,262,690
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
---------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
----------------------------------
High Multiple
Income Strategies
Fund Fund
-------------------------------
Six Months Six Months
Ended 6/30/97 Ended 6/30/97
- -------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 4,487,813 3,200,547
Expenses - Mortality and expense risk charges (note 3) 618,582 358,918
- -----------------------------------------------------------------------------------------------
Net investment income 3,869,231 2,841,629
- -----------------------------------------------------------------------------------------------
Net realized and unrealized (loss) gain on investments:
Net realized gain 542,257 578,285
Unrealized appreciation (depreciation) on investments (404,527) 1,435,986
- -----------------------------------------------------------------------------------------------
Net realized and unrealized (loss) gain on investments 137,730 2,014,271
- -----------------------------------------------------------------------------------------------
Increase in net assets from operations 4,006,961 4,855,900
- -----------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Operations, Continued
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
---------------------------------------------
Money High Equity
Market Income Income
Portfolio Portfolio Portfolio
-------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 533,649 1,930,318 42,510,439
Expenses - Mortality and expense risk charges (note 3) 120,794 146,041 2,886,874
- -------------------------------------------------------------------------------------------------------------
Net investment income (expense) 412,855 1,784,277 39,623,565
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) -- 227,338 6,549,906
Unrealized appreciation (depreciation) on investments -- (378,329) 21,218,206
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments -- (150,991) 27,768,112
- -------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 412,855 1,633,286 67,391,677
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
----------------------------------
Growth Overseas
Portfolio Portfolio
------------------------------
Six Months Six Months
Ended 6/30/97 Ended 6/30/97
- ---------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 9,229,913 9,303,257
Expenses - Mortality and expense risk charges (note 3) 1,625,741 675,605
- ---------------------------------------------------------------------------------------------
Net investment income (expense) 7,604,172 8,627,652
- ---------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 6,082,723 2,650,352
Unrealized appreciation (depreciation) on investments 19,054,444 5,462,412
- ---------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 25,137,167 8,112,764
- ---------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 32,741,339 16,740,416
- ---------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Operations, Continued
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Variable Insurance
Products Fund II Product Fund III
-------------------------------- ------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/97 Ended 6/30/97 5/1-6/30/97 5/1-6/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 52,909,448 4,672,962 -- --
Expenses - Mortality and expense risk charges (note 3) 2,609,802 1,080,369 2,107 3,085
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 50,299,646 3,592,593 (2,107) (3,085)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 3,390,487 3,581,126 12,071 6,700
Unrealized appreciation (depreciation) on investments (8,707,492) 10,619,859 57,018 81,888
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (5,317,005) 14,200,985 69,089 88,588
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 44,982,641 17,793,578 66,982 85,503
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Advisers Management Trust
-------------------------------------------------
Balanced Bond Growth
Portfolio Portfolio Portfolio
-----------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 1,992,971 550,544 903,849
Expenses - Mortality and expense risk charges (note 3) 175,452 55,882 66,292
- ------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 1,817,519 494,662 837,557
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 327,472 (39,725) 78,834
Unrealized appreciation (depreciation) on investments 977,202 (244,337) 776,817
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 1,304,674 (284,062) 855,651
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 3,122,193 210,600 1,693,208
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Operations, Continued
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Federated Investors Insurance Series
------------------------------------------------
American High
Leaders Income Bond Utility
Fund II Fund II Fund II
------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 228,362 765,711 901,822
Expenses - Mortality and expense risk charges (note 3) 57,728 106,425 151,185
- -------------------------------------------------------------------------------------------------------------
Net investment income (expense) 170,634 659,286 750,637
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 88,581 310,804 379,715
Unrealized appreciation (depreciation) on investments 1,195,484 19,058 709,492
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 1,284,065 329,862 1,089,207
- -------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $1,454,699 989,148 1,839,844
- -------------------------------------------------------------------------------------------------------------
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Alger American Fund PBHG Insurance Series Fund
-----------------------------------------------------------
Small PBHG PBHG
Cap Growth Large Cap Growth II
Portfolio Portfolio Portfolio Portfolio
-----------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/97 Ended 6/30/97 5/1-6/30/97 5/1-6/30/97
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 2,044,748 528,437 -- --
Expenses - Mortality and expense risk charges (note 3) 327,109 339,045 447 1,213
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 1,717,639 189,392 (447) (1,213)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) (554,211) 1,062,209 347 1,607
Unrealized appreciation (depreciation) on investments (822,865) 6,263,687 12,778 31,464
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (1,377,076) 7,325,896 13,125 33,071
- ---------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 340,563 7,515,288 12,678 31,858
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Operations, Continued
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
---------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ -- 5,225,744 3,758,737 716,859
Expenses - Mortality and expense risk charges (note 3) 534,353 1,104,368 1,483,516 158,918
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (534,353) 4,121,376 2,275,221 557,941
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 1,245,821 3,930,706 4,597,923 269,927
Unrealized appreciation (depreciation) on investments 1,548,572 12,648,628 32,651,265 1,897,060
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments 2,794,393 16,579,334 37,249,188 2,166,987
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations $ 2,260,040 20,700,710 39,524,409 2,724,928
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
---------------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
-------------------------------------------------
Six Months Six Months Period from
Ended 6/30/97 Ended 6/30/97 5/2-6/30/97
- ------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 333,313 286,313 --
Expenses - Mortality and expense risk charges (note 3) 44,073 173,755 750
- ------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 289,240 112,558 (750)
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 34,643 850,200 10,347
Unrealized appreciation (depreciation) on investments (66,524) 3,654,626 15,228
- ------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments (31,881) 4,504,826 25,575
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 257,359 4,617,384 24,825
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-------------------------------------------------------------------
S&P 500 Government Money Total
Index Securities Market Return
Fund Fund Fund Fund
--------------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income $ (497,008) (73,358) 106,013,751 (226,545)
Net realized gain (loss) (1,767,956) (293,781) (52,069,388) (500,306)
Unrealized appreciation (depreciation) on investments 14,892,238 410,124 (51,958,819) 4,073,192
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 12,627,274 42,985 1,985,544 3,346,341
- ------------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 16,761,843 597,671 61,165,280 2,691,908
Loan interest -- -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (245,909) (16,916) (717,412) (158,057)
Surrenders (1,121,206) (255,371) (8,248,015) (1,293,347)
Loans -- -- -- --
Cost of insurance and administrative expense (note 3) (41,963) (9,765) (70,995) (31,033)
Transfer gain (loss) and transfer fees (note 3) (32,231) (5,584) 46,889 (37,859)
Transfers (to) from the Guarantee Account (note 1) 4,265,018 91,851 4,594,086 668,157
Interfund transfers 11,334,061 (2,089,033) (32,526,248) (600,341)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 30,919,613 (1,687,147) 24,243,585 1,239,428
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 43,546,887 (1,644,162) 26,229,129 4,585,769
Net assets at beginning of year 55,868,451 13,129,970 90,187,173 33,594,461
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 99,415,338 11,485,808 116,416,302 38,180,230
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
----------------------------------------------------------------
International Real Estate Global Value
Equity Securities Income Equity
Fund Fund Fund Fund
----------------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/97 Ended 6/30/97 5/1-6/30/97 5/1-6/30/97
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (45,683) (107,019) (48) (840)
Net realized gain (loss) 258,923 1,452,067 30 15,442
Unrealized appreciation (depreciation) on investments 2,985,743 1,203,706 95,180 453,493
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 3,198,983 2,548,754 95,162 468,095
- -------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 736,409 5,722,470 13,012 301,005
Loan interest -- -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (447) (2,483) -- --
Surrenders (165,940) (190,871) -- (1,050)
Loans -- -- -- --
Cost of insurance and administrative expense (note 3) (4,747) (8,298) (2) (87)
Transfer gain (loss) and transfer fees (note 3) 33,463 123,832 5,000,026 3,000,315
Transfers (to) from the Guarantee Account (note 1) 441,426 1,206,942 27,029 79,744
Interfund transfers 1,908,756 3,711,267 27,313 413,307
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 2,948,920 10,562,859 5,067,378 3,793,234
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 6,147,903 13,111,613 5,162,540 4,261,329
Net assets at beginning of year 17,901,144 25,711,347 -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year 24,049,047 38,822,960 5,162,540 4,261,329
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
-------------------------------------------------------------
Capital
Money Bond Appreciation
Fund Fund Fund
-------------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets
From operations:
Net investment income $ 49,641 948,765 7,179,131
Net realized gain -- 37,697 2,019,150
Unrealized appreciation (depreciation) on investments -- (247,016) 1,654,178
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 49,641 739,446 10,852,459
- -----------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 440 1,942,110 15,947,984
Loan interest -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits -- (167,786) (170,792)
Surrenders (69,773) (1,043,548) (3,372,156)
Loans -- -- --
Cost of insurance and administrative expense (note 3) (2,921) (26,733) (135,030)
Transfer gain (loss) and transfer fees (note 3) (5,301) (4,017) (75,229)
Transfers (to) from the Guarantee Account (note 1) -- 903,811 5,977,188
Interfund transfers (352,658) (246,670) (339,422)
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions (430,213) 1,357,167 17,832,543
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets (380,572) 2,096,613 28,685,002
Net assets at beginning of period 2,750,676 31,638,941 158,844,181
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 2,370,104 33,735,554 187,529,183
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Oppenheimer Variable Account Funds
------------------------------------------------------------
High Multiple
Growth Income Strategies
Fund Fund Fund
-----------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase in net assets
From operations:
Net investment income 4,374,256 3,869,231 2,841,629
Net realized gain 1,866,878 542,257 578,285
Unrealized appreciation (depreciation) on investments 5,021,556 (404,527) 1,435,986
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 11,262,690 4,006,961 4,855,900
- ------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 16,608,358 13,043,158 4,696,930
Loan interest -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (140,722) (376,406) (194,117)
Surrenders (2,682,330) (2,748,106) (1,917,552)
Loans -- -- --
Cost of insurance and administrative expense (note 3) (60,838) (65,519) (59,341)
Transfer gain (loss) and transfer fees (note 3) (38,067) (15,263) (30,115)
Transfers (to) from the Guarantee Account (note 1) 4,271,965 3,995,801 1,409,275
Interfund transfers 5,292,509 190,717 (57,209)
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 23,250,875 14,024,382 3,847,871
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets 34,513,565 18,031,343 8,703,771
Net assets at beginning of period 67,859,369 85,762,637 54,118,912
- ------------------------------------------------------------------------------------------------------------------------
Net assets at end of period 102,372,934 103,793,980 62,822,683
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
------------------------------------------------------------------------------
Money High Equity
Market Income Income Growth Overseas
Portfolio Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------------------
Six Months Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ 412,855 1,784,277 39,623,565 7,604,172 8,627,652
Net realized gain (loss) -- 227,338 6,549,906 6,082,723 2,650,352
Unrealized appreciation (depreciation)
on investments -- (378,329) 21,218,206 19,054,444 5,462,412
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 412,855 1,633,286 67,391,677 32,741,339 16,740,416
- --------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums (28,722) 6,375 43,717,504 11,440,376 2,881,608
Loan interest -- -- -- -- --
Transfers (to) from the general account of
Life of Virginia:
Death benefits (54,722) (24,600) (1,600,460) (528,782) (264,692)
Surrenders (730,047) (1,246,844) (9,773,872) (6,232,148) (2,356,661)
Loans -- -- -- -- --
Cost of insurance and administrative
expense (note 3) (21,932) (24,254) (353,500) (240,701) (110,545)
Transfer gain (loss) and transfer fees
(note 3) (6,849) (9,109) (293,446) (143,229) (96,611)
Transfers (to) from the Guarantee Account (5,495) (7,084) 12,712,914 4,442,302 1,631,950
Interfund transfers (2,968,314) (1,294,620) 200,082 (11,722,599) (5,607,373)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
capital transactions (3,816,081) (2,600,136) 44,609,222 (2,984,781) (3,922,324)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets (3,403,226) (966,850) 112,000,899 29,756,558 12,818,092
Net assets at beginning of year 21,983,648 24,801,101 405,298,602 251,545,367 107,335,253
- --------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 18,580,422 23,834,251 517,299,501 281,301,925 120,153,345
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Variable Insurance
Products Fund II Product Fund III
-------------------------------------- ----------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/97 Ended 6/30/97 5/30-6/30/97 5/30-6/30/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income $ 50,299,646 3,592,593 (2,107) (3,085)
Net realized gain (loss) 3,390,487 3,581,126 12,071 6,700
Unrealized appreciation (depreciation) on investments (8,707,492) 10,619,859 57,018 81,888
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 44,982,641 17,793,578 66,982 85,503
- -----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 7,212,947 21,861,838 905,777 697,640
Loan interest -- -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (1,175,075) (309,626) -- --
Surrenders (11,890,573) (2,952,678) (4,628) (2,787)
Loans -- -- -- --
Cost of insurance and administrative expense (note 3) (591,629) (107,653) (337) (354)
Transfer gain (loss) and transfer fees (note 3) (2,872,453) (60,254) 732 2,247
Transfers (to) from the Guarantee Account 1,646,827 8,348,983 152,641 231,801
Interfund transfers (10,715,927) 3,701,346 1,102,328 2,006,996
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (18,385,883) 30,481,956 2,156,513 2,935,543
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 26,596,758 48,275,534 2,223,495 3,021,046
Net assets at beginning of year 435,838,169 142,866,693 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 462,434,927 191,142,227 2,223,495 3,021,046
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------
Advisers Management Trust
------------------------------------------------------
Balanced Bond Growth
Portfolio Portfolio Portfolio
------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income 1,817,519 494,662 837,557
Net realized gain (loss) 327,472 (39,725) 78,834
Unrealized appreciation (depreciation) on investments 977,202 (244,337) 776,817
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 3,122,193 210,600 1,693,208
- ---------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 455 1,199 --
Loan interest -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (46,517) (27,845) (18,084)
Surrenders (1,476,882) (289,537) (107,995)
Loans -- -- --
Cost of insurance and administrative expense (note 3) (38,810) (8,840) (11,371)
Transfer gain (loss) and transfer fees (note 3) (18,523) (5,135) (4,043)
Transfers (to) from the Guarantee Account (78,289) (69,030) --
Interfund transfers (1,579,034) (1,148,003) (425,011)
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (3,237,600) (1,547,191) (566,504)
- ---------------------------------------------------------------------------------------------------------------------
Increase in net assets (115,407) (1,336,591) 1,126,704
Net assets at beginning of year 30,762,464 9,722,037 10,502,096
- ---------------------------------------------------------------------------------------------------------------------
Net assets at end of year 30,647,057 8,385,446 11,628,800
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Federated Investors Insurance Series
-------------------------------------------------------------
American High
Leaders Income Bond Utility
Fund II Fund II Fund II
-------------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ 170,634 659,286 750,637
Net realized gain (loss) 88,581 310,804 379,715
Unrealized appreciation (depreciation) on investments 1,195,484 19,058 709,492
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 1,454,699 989,148 1,839,844
- -----------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 5,861,401 4,921,067 1,856,864
Loan interest -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits -- (79,097) (23,728)
Surrenders (67,691) (314,065) (712,194)
Loans -- -- --
Cost of insurance and administrative expense (note 3) (2,624) (7,144) (15,640)
Transfer gain (loss) and transfer fees (note 3) 2,165 (22,878) (4,055)
Transfers (to) from the Guarantee Account 805,817 805,836 519,663
Interfund transfers 3,652,215 (732,187) (1,495,621)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 10,251,283 4,571,532 125,289
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 11,705,982 5,560,680 1,965,133
Net assets at beginning of year 3,775,018 13,670,082 22,508,710
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 15,481,000 19,230,762 24,473,843
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------------------------
Alger American Fund PBHG Insurance Series Fund
------------------------------------------------------------------
Small PBHG PBHG
Cap Growth Large Cap Growth II
Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/97 Ended 6/30/97 5/1-6/30/97 5/1-6/30/97
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) 1,717,639 189,392 (447) (1,213)
Net realized gain (loss) (554,211) 1,062,209 347 1,607
Unrealized appreciation (depreciation) on investments (822,865) 6,263,687 12,778 31,464
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 340,563 7,515,288 12,678 31,858
- -----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 5,724,449 6,717,530 198,274 376,814
Loan interest -- -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (183,997) (179,091) -- --
Surrenders (892,373) (1,014,244) (295) (327)
Loans -- -- -- --
Cost of insurance and administrative expense (note 3) (31,840) (32,275) (20) (64)
Transfer gain (loss) and transfer fees (note 3) 24,779 (21,384) 199 139
Transfers (to) from the Guarantee Account 4,174,880 2,331,815 55,012 37,319
Interfund transfers (519,516) (704,357) 257,511 838,659
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 8,296,382 7,097,994 510,681 1,252,540
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 8,636,945 14,613,282 523,359 1,284,398
Net assets at beginning of year 47,302,352 44,720,393 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year 55,939,297 59,333,675 523,359 1,284,398
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Statement of Changes in Net Assets, Continued
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
-------------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
-------------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/97 Ended 6/30/97 Ended 6/30/97 Ended 6/30/97
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) $ (534,353) 4,121,376 2,275,221 557,941
Net realized gain (loss) 1,245,821 3,930,706 4,597,923 269,927
Unrealized appreciation (depreciation) on investments 1,548,572 12,648,628 32,651,265 1,897,060
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 2,260,040 20,700,710 39,524,409 2,724,928
- -----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 7,578,351 18,455,872 43,785,655 7,863,486
Loan interest -- -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (241,369) (1,332,618) (284,341) (18,136)
Surrenders (1,407,553) (3,451,139) (4,192,909) (463,416)
Loans -- -- -- --
Cost of insurance and administrative expense (note 3) (58,633) (128,629) (151,791) (13,643)
Transfer gain (loss) and transfer fees (note 3) (34,235) (156,226) (161,358) (708)
Transfers (to) from the Guarantee Account 2,140,651 6,764,675 11,249,046 1,736,364
Interfund transfers (3,037,907) 3,243,582 23,480,768 3,159,415
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 4,939,305 23,395,517 73,725,070 12,263,362
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 7,199,345 44,096,227 113,249,479 14,988,290
Net assets at beginning of period 83,963,537 151,696,572 177,410,698 16,459,714
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 91,162,882 195,792,799 290,660,177 31,448,004
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------------------
Janus Aspen Series
------------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
------------------------------------------------
Six Months Six Months Period from
Ended 6/30/97 Ended 6/30/97 5/2-6/30/97
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets
From operations:
Net investment income (expense) 289,240 112,558 (750)
Net realized gain (loss) 34,643 850,200 10,347
Unrealized appreciation (depreciation) on investments (66,524) 3,654,626 15,228
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 257,359 4,617,384 24,825
- ----------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 1,691,706 9,521,971 25,428
Loan interest -- -- --
Transfers (to) from the general account of Life of Virginia:
Death benefits (40,785) (100,302) --
Surrenders (245,353) (323,193) (4,012)
Loans -- -- --
Cost of insurance and administrative expense (note 3) (3,858) (13,324) (160)
Transfer gain (loss) and transfer fees (note 3) (255) (16,476) (2,628)
Transfers (to) from the Guarantee Account 609,221 2,327,862 17,534
Interfund transfers 1,462,773 11,826,056 352,385
- ----------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 3,473,449 23,222,594 388,547
- ----------------------------------------------------------------------------------------------------------------------
Increase in net assets 3,730,808 27,839,978 413,372
Net assets at beginning of period 5,008,319 13,512,178 --
- ----------------------------------------------------------------------------------------------------------------------
Net assets at end of period 8,739,127 41,352,156 413,372
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1997
- ------------------------------------------------------------------------------
(1) DESCRIPTION OF ENTITY
Life of Virginia Separate Account 4 (the Account) is a separate investment
account established in 1987 by The Life Insurance Company of Virginia (Life
of Virginia) under the laws of the Commonwealth of Virginia. The Account
operates as a unit investment trust under the Investment Company Act of
1940. The Account is used to fund certain benefits for flexible premium
variable deferred annuity life insurance policies issued by Life of
Virginia. The Life Insurance Company of Virginia is a stock life insurance
company operating under a charter granted by the Commonwealth of Virginia
on March 21, 1871. Eighty percent of the capital stock of Life of Virginia
is owned by General Electric Capital Assurance Corporation. The remaining
20% is owned by GE Life Insurance Group, Inc. General Electric Capital
Assurance Corporation and GE Life Insurance Group, Inc. are indirectly,
wholly-owned subsidiaries of General Electric Capital Corporation ("GE
Capital"). GE Capital, a New York corporation, is a diversified financial
services company.
In May 1997, seven new investment subdivisions were added to the Account,
for both Type I and II policies. The Growth & Income Portfolio and Growth
Opportunities Portfolio each invests solely in a designated portfolio of
the Variable Insurance Products Fund III. The Global Income Fund and the
Value Equity Fund each invests solely in a designated portfolio of the GE
Investments Funds, Inc. The Capital Appreciation Portfolio invests solely
in a designated portfolio of the Janus Aspen Series. The Growth II
Portfolio and the Large Cap Growth Portfolio each invests solely in a
designated portfolio of the PBHG Insurance Series Fund. All designated
portfolios described above are series type mutual funds.
Policyowners may transfer cash values between the Account's portfolios and
the Guarantee Account that is part of the general account of Life of
Virginia. Amounts transferred to the Guarantee Account earn interest at the
interest rate in effect at the time of such transfer and remain in effect
for one year, after which a new rate may be declared.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
UNIT CLASSES
There are two unit classes included in the Account. Type I units are sold
under policy form P1140 and P1141. Type II units are sold under policy
forms P1142, P1142N and P1143. Type II unit sales began in the third
quarter of 1994.
<PAGE>
INVESTMENTS
Investments are stated at fair value which is based on the underlying net
asset value per share of the respective portfolios or funds. Purchases and
sales of investments are recorded on the trade date. Realized gains and
losses on investments are determined on the average cost basis. The units
and unit values are disclosed as of the last business day in the applicable
year or period.
The aggregate cost of investments acquired and the aggregate proceeds of
investments sold, for the six months ended June 30, 1997 was:
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- ---------------------------------------------------------------------------
GE Investment Funds, Inc.:
S&P 500 Index $ 69,015,338 $ 15,266,124
Government Securities 3,417,134 3,894,309
Money Market 345,144,014 229,240,220
Total Return 16,999,079 6,702,594
International Equity 9,913,910 6,006,666
Real Estate Securities 20,851,807 9,060,104
Global Income 5,074,354 7,027
Value Equity 3,916,879 150,508
Oppenheimer Variable Account Funds:
Money 123,353 480,756
Bond 6,651,286 4,421,036
Capital Appreciation 53,465,697 28,273,008
Growth 41,277,072 13,691,734
High Income 39,929,171 17,605,006
Multiple Strategies 12,064,726 5,374,754
Variable Insurance Products Fund:
Money Market 897,530 4,259,267
High Income 1,996,643 2,867,752
Equity-Income 133,573,350 49,923,574
Growth 40,807,022 35,931,203
Overseas 31,761,857 26,987,593
<PAGE>
Variable Insurance Products Fund II:
Asset Manager 68,521,940 36,181,211
Contrafund 62,144,321 28,037,404
Variable Insurance Products Fund III:
Growth & Income 2,709,185 608,402
Growth Opportunties 3,085,152 273,318
Advisers Management Trust:
Bond 575,565 1,641,371
Growth 933,640 671,449
Balanced 2,091,718 3,547,808
Janus Aspen Series:
Balanced 16,227,810 3,450,764
Aggressive Growth 33,372,123 28,891,026
Growth 49,475,957 21,888,906
Worldwide 100,697,574 25,122,524
Flexible Income 5,196,710 1,448,799
International Growth 34,057,170 10,543,121
Capital Appreciation 1,418,347 1,027,717
Federated Insurance Series:
American Leaders Fund II 11,909,323 1,441,606
High Income Bond Fund II 15,823,295 10,733,168
Utility Fund II 5,212,107 4,402,049
The Alger American Fund
Small Cap 21,589,330 11,533,487
Growth 21,444,043 14,216,396
PBHG Insurance Series Fund, Inc.
PBHG Large Cap Growth 510,817 19,559
PBHG Growth II 1,318,139 111,348
<PAGE>
Federal Income Taxes
The Account is not taxed separately because the operations of the Account
are part of the total operations of Life of Virginia. Life of Virginia is
taxed as a life insurance company under the Internal Revenue Code (the
Code). Life of Virginia is included in the General Electric Capital
Assurance Company consolidated federal income tax return. The Account will
not be taxed as a regulated investment company under subchapter M of the
Code. Under existing federal income tax law, no taxes are payable on the
investment income or on the capital gains of the Account.
Use of Estimates
Financial statements prepared in conformity with generally accepted
accounting principles require management to make estimates and asumptions
that affect amounts reported therein. Actual results could differ from
those estimates.
(3) Related Party Transactions
Net premiums transferred from Life of Virginia to the Account represent
gross premiums recorded by Life of Virginia on its flexible premium
variable deferred annuity products, less deductions retained as
compensation for premium taxes. For policies issued on or after May 1,
1993, the deduction for premium taxes will be deferred until surrender.
For Tyep I policies, during the first ten years following a premium
payment, a .20% charge is deducted monthly from the policy Account
values to reimburse Life of Virginia for certain distribution expenses.
In addition, a charge is imposed on full and certain partial surrenders
that occur within six years of any premium payment (seven years for certain
Type II policies) to cover certain expenses relating to the sale of a
policy. Subject to certain limitations, the charge equals 6% (or less)
of the premium surrendered, depending on the time between premium
payment and surrender.
Life of Virginia will deduct a charge of $30 per year and $25 plus .15%
per year from the policy account values for certain administrative expenses
incurred for policy. Type I and Type II, respectively. For Type II
policies, the $25 charge may be waived if the account value is greater
than $75,000. In addition, Life of Virginia charges the Account 1.15%
and 1.25% on policy Type I and Type II, respectively, for the mortality
and expense risk that Life of Virginia assumes. Administrative expenses
as well as mortality and risk charges are deducted daily and reflect
the effective annual rates.
<PAGE>
Gains or losses resulting from the processing time between the crediting
of an initial premium and the investment of that premium are charged to
Life of Virginia. In addition, any such gain or loss resulting from the
processing time between a request for policy surrender and the sale of
the underlying shares is also charged to Life of Virginia.
GE Investment Funds, Inc. (the Fund) is an open-end diversified management
investment company whose shares are sold to Life of Virginia's
Separate Accounts.
Forth Financial Securities Corporation (FFSC), an affiliate of Life of
Virginia, acts as principal underwriter (as defined in The Investment
Company Act of 1940) of the Account's policies pursuant to an agreement
with Life of Virginia.
GE Investment Management Incorporated currently serves as investment
adviser to GE Investment Funds, Inc. (formerly Life of Virginia Series
Fund, Inc.). Prior to May 1, 1997, Aon Advisors, Inc. served as
investment advisor to the Fund and had agreed to reimburse the Fund
for certain expenses of each of the Fund's portfolios. As compensation
for its services, the Investment Advisor is paid an investment advisory
fee by the Fund based on the average daily net assets at an effective
annual rate of .35% for the S&P 500 Index Fund, .10% for the Government
Securities Fund, .50% for the Money Market and Total Return Funds, 1.00%
for the International Equity Fund and .85% for the Real Estate Securities
Fund.
Certain officers and directors of Life of Virginia are also officers and
directors of FFSC and the Fund.
