LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Financial Statements
For the six months ended June 30, 1998
(Unaudited)
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Table of Contents
For the six months ended June 30, 1998
- ------------------------------------------------------------------------------
Page
Financial Statements:
(Unaudited)
Statements of Assets and Liabilities..................................1
Statements of Operations..............................................6
Statements of Changes in Net Assets..................................11
Notes to Financial Statements............................................16
(Unaudited)
- ------------------------------------------------------------------------------
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF ASSETS AND LIABILITIES
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
---------------------------------------------------------------
S&P 500 Money Total International
Index Market Return Equity
Assets Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S><C>
Investment in GE Investments Funds, Inc., at
fair value (note 2):
S&P 500 Index Fund (10,284,007 shares;
cost - $198,174,450) $ 232,418,549 - - -
Money Market Fund (154,109,227 shares;
cost - $154,100,833) - 154,109,227 - -
Total Return Portolio (3,693,287 shares;
cost - $53,201,733) - - 54,143,581 -
International Equity Fund (2,126,245 shares;
cost - $24,653,464) - - - 27,258,457
Real Estate Securities Fund (3,814,516 shares;
cost - $54,504,205) - - - -
Global Income Fund (698,009 shares; cost - $7,016,256) - - - -
Value Equity Fund (2,288,523 shares; cost - $30,674,282) - - - -
Income Fund (1,967,316 shares; cost $23,916,240) - - - -
U.S. Equity Fund (4,601 shares; cost $145,444) - - - -
Receivable from affiliate (note 3) 152,808 - 42,899 12,531
Receivable for units sold 489,768 19,902,737 134,869 25,354
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $ 233,061,125 174,011,964 54,321,349 27,296,342
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 631,052 934,185 140,684 32,813
Payable for units withdrawn - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 631,052 934,185 140,684 32,813
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets $ 232,430,073 173,077,779 54,180,665 27,263,529
- -----------------------------------------------------------------------------------------------------------------------------------
Analysis of net assets:
Attributable to:
Variable deferred annuity contractholders 232,430,073 173,077,779 54,180,665 11,752,485
The Life Insurance Company of Virginia - - - 15,511,044
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets 232,430,073 173,077,779 54,180,665 27,263,529
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,018,776 5,392,814 597,294 1,188,615
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 46.31 15.08 31.95 14.95
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 4,103,912 6,241,778 1,126,714 637,164
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 45.14 14.70 31.15 14.90
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-----------------------------------------------------------------------
Real Estate Global Value U.S.
Securities Income Equity Income Equity
Assets Fund Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S><C>
Investment in GE Investments Funds, Inc., at
fair value (note 2):
S&P 500 Index Fund (10,284,007 shares;
cost - $198,174,450) - - - - -
Money Market Fund (154,109,227 shares;
cost - $154,100,833) - - - - -
Total Return Portolio (3,693,287 shares;
cost - $53,201,733) - - - - -
International Equity Fund (2,126,245 shares;
cost - $24,653,464) - - - - -
Real Estate Securities Fund (3,814,516 shares;
cost - $54,504,205) 55,119,760 - - - -
Global Income Fund (698,009 shares;
cost - $7,016,256) - 7,133,648 - - -
Value Equity Fund (2,288,523 shares;
cost - $30,674,282) - - 33,893,029 - -
Income Fund (1,967,316 shares; cost $23,916,240) - - - 24,768,507 -
U.S. Equity Fund (4,601 shares; cost $145,444) - - - - 146,996
Receivable from affiliate (note 3) 22,513 6 - - -
Receivable for units sold - 387 75,106 11,162 -
- ----------------------------------------------------------------------------------------------------------------------------------
Total assets 55,142,273 7,134,041 33,968,135 24,779,669 146,996
- ----------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 100,037 4,771 120,786 141,000 122
Payable for units withdrawn 111,499 13 121 18,386 -
- ----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 211,536 4,784 120,907 159,386 122
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets 54,930,737 7,129,257 33,847,228 24,620,283 146,874
- ----------------------------------------------------------------------------------------------------------------------------------
Analysis of net assets:
Attributable to:
Variable deferred annuity contractholders 36,917,350 1,764,530 29,354,875 24,620,283 146,874
The Life Insurance Company of Virginia 18,013,387 5,364,727 4,492,353 - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets 54,930,737 7,129,257 33,847,228 24,620,283 146,874
- ----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,379,501 547,462 628,730 1,189,687 6,891
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 17.36 10.59 14.77 10.35 9.97
- ----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 1,798,177 126,102 1,667,406 1,191,387 7,840
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 17.23 10.56 14.73 10.33 9.97
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF ASSETS AND LIABILITIES, CONTINUED
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
-----------------------------------------------------------
Capital High
Bond Appreciation Growth Income
Assets Fund Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable Account Funds,
at fair value (note 2):
Bond Fund (3,834,120 shares;
cost - $44,732,748) $ 45,971,096 - - -
Capital Appreciation Fund (5,237,638 shares;
cost - $194,545,786) - 245,330,981 - -
Growth Fund (5,139,329 shares;
cost - $166,456,187) - - 177,872,191 -
High Income Fund (15,175,352 shares;
cost - $170,665,507) - - - 174,668,302
Multiple Strategies Fund (4,760,476 shares;
cost - $71,808,660) - - - -
Investment in Goldmans Sachs Variable
Insurance Trust, at fair value (note 2):
Growth & Income Fund (42,099 shares;
cost - $473,335) - - - -
Mid Cap Equity Fund (76,259 shares;
cost - $715,310) - - - -
Receivable from affiliate (note 3) - 31,280 - 64,666
Receivable for units sold 510 40,783 143,564 -
- -------------------------------------------------------------------------------------------------------------------------------
Total assets $ 45,971,606 245,403,044 178,015,755 174,732,968
- -------------------------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 134,848 1,151,400 520,844 422,594
Payable for units withdrawn 41,370 5,201,476 20,263 73,130
- -------------------------------------------------------------------------------------------------------------------------------
Total liabilities 176,218 6,352,876 541,107 495,724
- -------------------------------------------------------------------------------------------------------------------------------
Net assets $ 45,795,388 239,050,168 177,474,648 174,237,244
- -------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 847,356 2,409,508 1,298,234 1,826,157
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 21.62 42.63 43.78 32.63
- -------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 1,303,395 3,281,176 2,826,569 3,605,338
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 21.08 41.55 42.68 31.80
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Goldman Sachs Variable
Account Funds Insurance Trust
------------------ ------------------------
Multiple Growth & Mid Cap
Strategies Income Equity
Assets Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Oppenheimer Variable Account Funds,
at fair value (note 2):
Bond Fund (3,834,120 shares;
cost - $44,732,748) - - -
Capital Appreciation Fund (5,237,638 shares;
cost - $194,545,786) - - -
Growth Fund (5,139,329 shares;
cost - $166,456,187) - - -
High Income Fund (15,175,352 shares;
cost - $170,665,507) - - -
Multiple Strategies Fund (4,760,476 shares;
cost - $71,808,660) 81,499,341 - -
Investment in Goldmans Sachs Variable
Insurance Trust, at fair value (note 2):
Growth & Income Fund (42,099 shares;
cost - $473,335) - 479,507 -
Mid Cap Equity Fund (76,259 shares;
cost - $715,310) - - 716,839
Receivable from affiliate (note 3) 8,982 - 1
Receivable for units sold 37,150 35,470 15,602
- ------------------------------------------------------------------------------------------------------------
Total assets 81,545,473 514,977 732,442
- ------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 280,115 227 338
Payable for units withdrawn 554 - -
- ------------------------------------------------------------------------------------------------------------
Total liabilities 280,669 227 338
- ------------------------------------------------------------------------------------------------------------
Net assets 81,264,804 514,750 732,104
- ------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,485,705 2,352 35,124
- ------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 28.14 9.63 9.37
- ------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 1,437,940 51,154 43,009
- ------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 27.44 9.62 9.37
- ------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF ASSETS AND LIABILITIES, CONTINUED
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
-----------------------------------------
Equity
Income Growth Overseas
ASSETS Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Variable Insurance Products Fund, at
fair value (note 2):
Equity-Income Portfolio (28,190,536 shares;
cost - $581,114,195) $ 709,555,798 - -
Growth Portfolio (9,510,696 shares;
cost - $280,228,383) - 364,449,852 -
Overseas Portfolio (5,889,452 shares;
cost - $111,459,299) - - 121,440,494
Investment in Variable Insurance Products
Fund II, at fair value (note 2):
Asset Manager Portfolio (29,510,263 shares;
cost - $441,480,405) - - -
Contrafund Portfolio (13,540,360 shares;
cost - $228,024,310) - - -
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (2,178,458 shares;
cost - $28,432,998) - - -
Growth Opportunities Portfolio
(1,724,635 shares; cost - $32,802,718) - - -
Receivable from affiliate (note 3) - 51,003 -
Receivable for units sold 198,130 97,207 -
- -------------------------------------------------------------------------------------------------------
Total assets $ 709,753,928 364,598,062 121,440,494
- -------------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,760,460 1,129,895 414,251
Payable for units withdrawn 144,020 - 5,081,275
- -------------------------------------------------------------------------------------------------------
Total liabilities 1,904,480 1,129,895 5,495,526
- -------------------------------------------------------------------------------------------------------
Net assets $ 707,849,448 363,468,167 115,944,968
- -------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 6,369,885 4,191,895 3,096,726
- -------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 41.06 46.66 24.40
- -------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 11,149,187 3,690,357 1,698,269
- -------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 40.03 45.49 23.78
- -------------------------------------------------------------------------------------------------------
</TABLE>
<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, at
fair value (note 2):
Equity-Income Portfolio (28,190,536 shares;
cost - $581,114,195) - - - -
Growth Portfolio (9,510,696 shares;
cost - $280,228,383) - - - -
Overseas Portfolio (5,889,452 shares;
cost - $111,459,299) - - - -
Investment in Variable Insurance Products
Fund II, at fair value (note 2):
Asset Manager Portfolio (29,510,263 shares;
cost - $441,480,405) 509,052,045 - - -
Contrafund Portfolio (13,540,360 shares;
cost - $228,024,310) - 297,210,895 - -
Investment in Variable Insurance Products
Fund III, at fair value (note 2):
Growth & Income Portfolio (2,178,458 shares;
cost - $28,432,998) - - 31,740,131 -
Growth Opportunities Portfolio
(1,724,635 shares; cost - $32,802,718) - - - 35,251,546
Receivable from affiliate (note 3) - 115,237 - 4,620
Receivable for units sold 71,314 135,981 253,089 26,164
- ------------------------------------------------------------------------------------------------------------------
Total assets 509,123,359 297,462,113 31,993,220 35,282,330
- ------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 2,370,132 755,204 119,728 89,388
Payable for units withdrawn 36,686 38,368 - -
- ------------------------------------------------------------------------------------------------------------------
Total liabilities 2,406,818 793,572 119,728 89,388
- ------------------------------------------------------------------------------------------------------------------
Net assets 506,716,541 296,668,541 31,873,492 35,192,942
- ------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 16,116,483 3,125,603 503,768 494,681
- ------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 26.65 23.76 14.40 13.61
- ------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 2,960,593 9,439,907 1,715,626 2,097,298
- ------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 26.08 23.56 14.35 13.57
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF ASSETS AND LIABILITIES, CONTINUED
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Federated Investors Insurance Series
------------------------------------------------------------------
American High
Leaders Income Bond Utility
ASSETS Fund II Fund II Fund II
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors Insurance Series,
at fair value (note 2):
American Leaders Fund II (2,895,623 shares;
cost - $55,513,186) $ 61,358,255 - -
High Income Bond Fund II (3,715,623 shares;
cost - $39,891,248) - 41,094,792 -
Utility Fund II (2,568,120 shares;
cost - $31,061,632) - - 36,107,766
Investment in Alger American,
at fair value (note 2):
Small Capitalization Portfolio (2,143,358 shares;
cost - $90,117,571) - - -
Growth Portfolio (2,209,972 shares;
cost - $86,613,619) - - -
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Large Cap Portfolio (599,967 shares;
cost - $7,352,658) - - -
PBHG Growth II Portfolio (844,253 shares;
cost - $9,333,596) - - -
Receivable from affiliate (note 3) 26,297 7,024 17,672
Receivable for units sold 221,837 56,412 30,860
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $ 61,606,389 41,158,228 36,156,298
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 160,146 121,663 98,808
Payable for units withdrawn - 20,570 14,649
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 160,146 142,233 113,457
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets $ 61,446,243 41,015,995 36,042,841
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 494,538 446,850 496,027
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 16.55 15.63 17.60
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 3,235,823 2,195,596 1,565,201
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 16.46 15.50 17.45
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
Alger American Fund
---------------------------------------------------
Small
Capitalization Growth
ASSETS Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------
<S> <C>
Investments in Federated Investors Insurance Series,
at fair value (note 2):
American Leaders Fund II (2,895,623 shares;
cost - $55,513,186) - -
High Income Bond Fund II (3,715,623 shares;
cost - $39,891,248) - -
Utility Fund II (2,568,120 shares;
cost - $31,061,632) - -
Investment in Alger American,
at fair value (note 2):
Small Capitalization Portfolio (2,143,358 shares;
cost - $90,117,571) 92,443,031 -
Growth Portfolio (2,209,972 shares;
cost - $86,613,619) - 100,907,314
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Large Cap Portfolio (599,967 shares;
cost - $7,352,658) - -
PBHG Growth II Portfolio (844,253 shares;
cost - $9,333,596) - -
Receivable from affiliate (note 3) 15,521 -
Receivable for units sold 3,893 140,974
- --------------------------------------------------------------------------------------------------------------
Total assets 92,462,445 101,048,288
- --------------------------------------------------------------------------------------------------------------
LIABILITIES
- --------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 246,273 382,386
Payable for units withdrawn 5,038,071 -
- --------------------------------------------------------------------------------------------------------------
Total liabilities 5,284,344 382,386
- --------------------------------------------------------------------------------------------------------------
Net assets 87,178,101 100,665,902
- --------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,351,221 1,045,232
- --------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 11.99 16.95
- --------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 5,964,451 4,928,653
- --------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 11.90 16.83
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<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 (2,895,623 shares;
cost - $55,513,186) - -
High Income Bond Fund II (3,715,623 shares;
cost - $39,891,248) - -
Utility Fund II (2,568,120 shares;
cost - $31,061,632) - -
Investment in Alger American,
at fair value (note 2):
Small Capitalization Portfolio (2,143,358 shares;
cost - $90,117,571) - -
Growth Portfolio (2,209,972 shares;
cost - $86,613,619) - -
Investment in PBHG Insurance Series
Fund Inc., at fair value (note 2):
PBHG Large Cap Portfolio (599,967 shares;
cost - $7,352,658) 8,465,536 -
PBHG Growth II Portfolio (844,253 shares;
cost - $9,333,596) - 9,995,952
Receivable from affiliate (note 3) 22,408 234
Receivable for units sold 42,487 22,096
- ----------------------------------------------------------------------------------------------------------
Total assets 8,530,431 10,018,282
- ----------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 44,521 26,654
Payable for units withdrawn 54,734 48
- ----------------------------------------------------------------------------------------------------------
Total liabilities 99,255 26,702
- ----------------------------------------------------------------------------------------------------------
Net assets 8,431,176 9,991,580
- ----------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 80,376 94,164
- ----------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 13.92 11.68
- ----------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 526,826 763,240
- ----------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 13.88 11.65
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF ASSETS AND LIABILITIES, CONTINUED
As of June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
--------------------------------------------
Aggressive
Growth Growth
Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series, at fair value (note 2):
Aggressive Growth Portfolio (5,020,260 shares;
cost - $94,736,287) $ 120,988,261 -
Growth Portfolio (13,494,555 shares;
cost - $211,860,422) - 279,337,284
Worldwide Growth Portfolio (16,938,164 shares;
cost - $368,486,861) - -
Balanced Portfolio (5,765,970 shares;
cost - $99,395,986) - -
Flexible Income Portfolio (1,808,980 shares;
cost - $21,277,398) - -
International Growth Portfolio (3,349,679 shares;
cost - $69,348,497) - -
Capital Appreciation Portfolio (556,160 shares;
cost - $7,942,180) - -
Receivable from affiliate (note 3) 46,819 -
Receivable for units sold 37,435 100,218
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets $ 121,072,515 279,437,502
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 339,611 864,350
Payable for units withdrawn 40,248 -
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 379,859 864,350
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets $ 120,692,656 278,573,152
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 1,695,321 4,386,140
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 23.62 22.71
- -----------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 3,455,406 7,975,219
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 23.34 22.44
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
-------------------------------------------------------------
Worldwide
Growth Balanced
Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment in Janus Aspen Series, at fair value (note 2):
Aggressive Growth Portfolio (5,020,260 shares;
cost - $94,736,287) - -
Growth Portfolio (13,494,555 shares;
cost - $211,860,422) - -
Worldwide Growth Portfolio (16,938,164 shares;
cost - $368,486,861) 486,125,302 -
Balanced Portfolio (5,765,970 shares;
cost - $99,395,986) - 114,742,799
Flexible Income Portfolio (1,808,980 shares;
cost - $21,277,398) - -
International Growth Portfolio (3,349,679 shares;
cost - $69,348,497) - -
Capital Appreciation Portfolio (556,160 shares;
cost - $7,942,180) - -
Receivable from affiliate (note 3) 151,488 14,353
Receivable for units sold 420,076 230,329
- -------------------------------------------------------------------------------------------------------------------------------
Total assets 486,696,866 114,987,481
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- -------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 1,270,718 287,590
Payable for units withdrawn 4,941,008 139,111
- -------------------------------------------------------------------------------------------------------------------------------
Total liabilities 6,211,726 426,701
- -------------------------------------------------------------------------------------------------------------------------------
Net assets 480,485,140 114,560,780
- -------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 5,017,635 2,589,523
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 29.17 17.20
- -------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 11,593,363 4,097,191
- -------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 28.82 17.09
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<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 (5,020,260 shares;
cost - $94,736,287) - - -
Growth Portfolio (13,494,555 shares;
cost - $211,860,422) - - -
Worldwide Growth Portfolio (16,938,164 shares;
cost - $368,486,861) - - -
Balanced Portfolio (5,765,970 shares;
cost - $99,395,986) - - -
Flexible Income Portfolio (1,808,980 shares;
cost - $21,277,398) 21,635,404 - -
International Growth Portfolio (3,349,679 shares;
cost - $69,348,497) - 74,329,384 -
Capital Appreciation Portfolio (556,160 shares;
cost - $7,942,180) - - 9,198,889
Receivable from affiliate (note 3) 1,446 35,718 6,881
Receivable for units sold 20,819 149,395 310,662
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets 21,657,669 74,514,497 9,516,432
- ---------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------------------------------------------------------
Accrued expenses payable to affiliate (note 3) 56,050 194,315 51,299
Payable for units withdrawn 49,100 - -
- ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 105,150 194,315 51,299
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets 21,552,519 74,320,182 9,465,133
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type I (note 2) 375,074 1,089,015 164,686
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type I 13.14 16.63 16.37
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding units: Type II (note 2) 1,273,873 3,398,420 414,527
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value per unit: Type II 13.05 16.54 16.33
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF OPERATIONS
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-----------------------------------------------
S&P 500 Money
Index Market
Fund Fund
-----------------------------------------------
Six Months Six Months
Ended 6/30/98 Ended 6/30/98
- -----------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - 3,762,031
Expenses - Mortality and expense
risk charges (note 3) 1,255,257 896,016
- -----------------------------------------------------------------------------------------------------------------
Net investment income (expense) (1,255,257) 2,866,015
- -----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 3,446,026 536,978
Unrealized appreciation (depreciation)
on investments 26,580,620 (536,978)
- -----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 30,026,646 -
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations $ 28,771,389 2,866,015
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-------------------------------------------------------------------------
Total International Real Estate
Return Equity Securities
Fund Fund Fund
-------------------------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends - - -
Expenses - Mortality and expense
risk charges (note 3) 317,949 75,353 244,048
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (317,949) (75,353) (244,048)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) (91,239) 466,960 149,810
Unrealized appreciation (depreciation)
on investments 5,154,672 4,155,615 (3,188,593)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 5,063,433 4,622,575 (3,038,783)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations 4,745,484 4,547,222 (3,282,831)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-------------------------------------------------
Global Value
Income Equity
Fund Fund
-------------------------------------------------
Six Months Six Months
Ended 6/30/98 Ended 6/30/98
- -----------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends - -
Expenses - Mortality and expense
risk charges (note 3) 8,918 143,280
- -----------------------------------------------------------------------------------------------------------
Net investment income (expense) (8,918) (143,280)
- -----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) (2,186) 662,287
Unrealized appreciation (depreciation)
on investments 241,739 2,332,947
- -----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 239,553 2,995,234
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations 230,635 2,851,954
- -----------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-----------------------------------------
U.S.
Income Equity
Fund Fund
-----------------------------------------
Six Months Period from
Ended 6/30/98 5/04-6/30/98
- ---------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends - -
Expenses - Mortality and expense
risk charges (note 3) 142,977 120
- ---------------------------------------------------------------------------------------------------
Net investment income (expense) (142,977) (120)
- ---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 48,519 320
Unrealized appreciation (depreciation)
on investments 864,466 1,552
- ---------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 912,985 1,872
- ---------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations 770,008 1,752
- ---------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF OPERATIONS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
-----------------------------------------------------------------------
Capital High
Bond Appreciation Growth Income
Fund Fund Fund Fund
-----------------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 1,310,262 5,903,722 14,489,848 7,439,338
Expenses - Mortality and expense
risk charges (note 3) 263,249 1,365,867 1,008,531 1,008,733
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 1,047,013 4,537,855 13,481,317 6,430,605
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 200,519 10,744,265 22,390,934 628,089
Unrealized appreciation (depreciation)
on investments 130,372 19,787,986 (11,878,864) (753,277)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 330,891 30,532,251 10,512,070 (125,188)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $ 1,377,904 35,070,106 23,993,387 6,305,417
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Goldman Sachs Variable
Account Funds Insurance Trust
-------------------- -----------------------------
Multiple Growth & Mid Cap
Strategies Income Equity
Fund Fund Fund
--------------------------------------------------
Six Months Period from Period from
Ended 6/30/98 05/12-6/30/98 05/08-6/30/98
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 4,756,691 - -
Expenses - Mortality and expense
risk charges (note 3) 471,593 223 338
- -------------------------------------------------------------------------------------------------------------
Net investment income (expense) 4,285,098 (223) (338)
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain (loss) 1,133,086 121 (119)
Unrealized appreciation (depreciation)
on investments (651,754) 6,172 1,528
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 481,332 6,293 1,409
- -------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 4,766,430 6,070 1,071
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF OPERATIONS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
--------------------------------------------------
Equity
Income Growth Overseas
Portfolio Portfolio Portfolio
--------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ----------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 40,199,361 43,602,357 8,392,807
Expenses - Mortality and expense
risk charges (note 3) 4,221,917 2,042,229 685,087
- ----------------------------------------------------------------------------------------------------------------
Net investment income (expense) 35,977,444 41,560,128 7,707,720
- ----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain 30,166,068 7,851,875 10,665,189
Unrealized appreciation (depreciation)
on investments (4,013,502) 7,778,385 (1,715,674)
- ----------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 26,152,566 15,630,260 8,949,515
- ----------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $ 62,130,010 57,190,388 16,657,235
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
Variable Insurance
Products Fund II Variable Insurance Product Fund III
---------------------------------- -----------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
----------------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 61,032,559 14,347,723 102,863 948,628
Expenses - Mortality and expense
risk charges (note 3) 2,814,642 1,729,773 153,790 174,408
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 58,217,917 12,617,950 (50,927) 774,220
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain 7,318,237 6,218,461 655,612 184,574
Unrealized appreciation (depreciation)
on investments (23,951,543) 20,941,267 2,849,033 1,393,070
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (16,633,306) 27,159,728 3,504,645 1,577,644
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 41,584,611 39,777,678 3,453,718 2,351,864
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF OPERATIONS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<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 6/30/98 Ended 6/30/98 Ended 6/30/98
- --------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ 2,907,843 1,241,858 2,141,701
Expenses - Mortality and expense
risk charges (note 3) 324,681 278,223 220,974
- --------------------------------------------------------------------------------------------------------
Net investment income (expense) 2,583,162 963,635 1,920,727
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain 932,146 809,224 765,621
Unrealized appreciation (depreciation)
on investments 2,297,713 (503,603) (1,283,686)
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments 3,229,859 305,621 (518,065)
- --------------------------------------------------------------------------------------------------------
Increase in net assets from operations $ 5,813,021 1,269,256 1,402,662
- --------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
Alger American PBHG Insurance Series Fund
----------------------------------- ----------------------------
Small PBHG PBHG
Capitalization Growth Large Cap Growth II
Portfolio Portfolio Portfolio Portfolio
------------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 10,556,556 14,231,938 - -
Expenses - Mortality and expense
risk charges (note 3) 521,134 550,835 42,528 56,320
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) 10,035,422 13,681,103 (42,528) (56,320)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain 1,410,110 2,230,568 191,900 67,461
Unrealized appreciation (depreciation)
on investments (1,585,465) 3,946,938 962,980 752,185
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss)
on investments (175,355) 6,177,506 1,154,880 819,646
- ---------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 9,860,067 19,858,609 1,112,352 763,326
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF OPERATIONS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
--------------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
--------------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends $ - 16,918,805 16,445,382 3,439,526
Expenses - Mortality and expense
risk charges (note 3) 717,616 1,618,554 2,708,131 605,640
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (expense) (717,616) 15,300,251 13,737,251 2,833,886
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain 7,253,385 6,298,570 23,050,199 1,391,937
Unrealized appreciation on investments 10,889,349 20,805,711 57,619,298 10,374,940
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 18,142,734 27,104,281 80,669,497 11,766,877
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations $17,425,118 42,404,532 94,406,748 14,600,763
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
Janus Aspen Series
--------------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
--------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- -------------------------------------------------------------------------------------------------------------
<S> <C>
Investment income:
Income - Dividends 826,620 1,294,926 1,541
Expenses - Mortality and expense
risk charges (note 3) 118,717 423,413 34,463
- -------------------------------------------------------------------------------------------------------------
Net investment income (expense) 707,903 871,513 (32,922)
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain (loss) on investments:
Net realized gain 97,034 8,307,092 192,282
Unrealized appreciation on investments 21,957 3,158,627 1,244,526
- -------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 118,991 11,465,719 1,436,808
- -------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 826,894 12,337,232 1,403,886
- -------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF CHANGES IN NET ASSETS
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
--------------------------------------------------------------
S&P 500 Money Total International
Index Market Return Equity
Fund Fund Fund Fund
--------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) $ (1,255,257) 2,866,015 (317,949) (75,353)
Net realized gain (loss) 3,446,026 536,978 (91,239) 466,960
Unrealized appreciation (depreciation)
on investments 26,580,620 (536,978) 5,154,672 4,155,615
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 28,771,389 2,866,015 4,745,484 4,547,222
- ------------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 28,590,174 58,772,216 3,391,119 522,215
Loan interest - - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (316,328) (1,562,309) (148,331) (44,755)
Surrenders (4,582,934) (17,483,486) (1,840,445) (386,565)
Loans - - - -
Cost of insurance and administrative expense (note 3) (89,286) (102,700) (34,421) (7,587)
Transfer gain (loss) and transfer fees (21,129) 2,712 (717) (6,659)
Transfers (to) from the Guarantee Account (note 1) 16,300,404 13,034,725 3,566,182 736,639
Interfund transfers 10,351,459 (6,144,098) (25,323) (973,514)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 50,232,360 46,517,060 4,908,064 (160,226)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 79,003,749 49,383,075 9,653,548 4,386,996
Net assets at beginning of year 153,426,324 123,694,704 44,527,117 22,876,533
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 232,430,073 173,077,779 54,180,665 27,263,529
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-------------------------------------------------
Real Estate Global Value
Securities Income Equity
Fund Fund Fund
-------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- --------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) (244,048) (8,918) (143,280)
Net realized gain (loss) 149,810 (2,186) 662,287
Unrealized appreciation (depreciation)
on investments (3,188,593) 241,739 2,332,947
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (3,282,831) 230,635 2,851,954
- --------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 4,022,270 191,016 6,866,186
Loan interest - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (160,236) - (18,904)
Surrenders (663,907) (40,134) (523,345)
Loans - - -
Cost of insurance and administrative expense (note 3) (17,510) (260) (7,224)
Transfer gain (loss) and transfer fees (7,534) (4) (101,318)
Transfers (to) from the Guarantee Account (note 1) 3,925,507 313,027 3,611,840
Interfund transfers (1,568,819) 319,679 5,268,031
- --------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 5,529,771 783,324 15,095,266
- --------------------------------------------------------------------------------------------------------------------
Increase in net assets 2,246,940 1,013,959 17,947,220
Net assets at beginning of year 52,683,797 6,115,298 15,900,008
- --------------------------------------------------------------------------------------------------------------------
Net assets at end of year 54,930,737 7,129,257 33,847,228
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
-------------------------------
U.S.
Income Equity
Fund Fund
-------------------------------
Six Months Period from
Ended 6/30/98 5/04-6/30/98
- -------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) (142,977) (120)
Net realized gain (loss) 48,519 320
Unrealized appreciation (depreciation)
on investments 864,466 1,552
- -------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 770,008 1,752
- -------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 612,598 45,286
Loan interest - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (92,434) -
Surrenders (977,817) -
Loans - -
Cost of insurance and administrative expense (note 3) (17,462) (25)
Transfer gain (loss) and transfer fees 3,383 1,112
Transfers (to) from the Guarantee Account (note 1) 1,306,845 -
Interfund transfers 1,004,302 98,749
- -------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 1,839,415 145,122
- -------------------------------------------------------------------------------------------------
Increase in net assets 2,609,423 146,874
Net assets at beginning of year 22,010,860 -
- -------------------------------------------------------------------------------------------------
Net assets at end of year 24,620,283 146,874
- -------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
---------------------------------------------------------
Capital
Bond Appreciation Growth
Fund Fund Fund
------------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income $ 1,047,013 4,537,855 13,481,317
Net realized gain 200,519 10,744,265 22,390,934
Unrealized appreciation (depreciation) on investments 130,372 19,787,986 (11,878,864)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 1,377,904 35,070,106 23,993,387
- ---------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 2,893,280 5,890,077 11,057,720
Loan interest - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (217,284) (464,227) (424,800)
Surrenders (1,973,876) (6,074,076) (5,280,678)
Loans - - -
Cost of insurance and administrative expense (note 3) (29,089) (162,613) (100,334)
Transfer gain (loss) and transfer fees (10,670) (155,551) (109,100)
Transfers (to) from the Guarantee Account (note 1) 3,980,115 6,284,290 8,943,561
Interfund transfers 29,325 (9,185,074) 379,076
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 4,671,801 (3,867,174) 14,465,445
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 6,049,705 31,202,932 38,458,832
Net assets at beginning of period 39,745,683 207,847,236 139,015,816
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 45,795,388 239,050,168 177,474,648
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Goldman Sachs Variable
Account Funds Insurance Trust
--------------------------------- -----------------------------
High Multiple Growth & Mid Cap
Income Strategies Income Equity
Fund Fund Fund Fund
-----------------------------------------------------------------
Six Months Six Months Period from Period from
Ended 6/30/98 Ended 6/30/98 05/12-6/30/98 05/08-6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income 6,430,605 4,285,098 (223) (338)
Net realized gain 628,089 1,133,086 121 (119)
Unrealized appreciation (depreciation) on investments (753,277) (651,754) 6,172 1,528
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 6,305,417 4,766,430 6,070 1,071
- -----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 8,239,323 3,951,695 217,519 192,700
Loan interest - - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (369,601) (342,067) - -
Surrenders (5,133,235) (3,501,793) (102) (32)
Loans - - - -
Cost of insurance and administrative expense (note 3) (103,206) (67,238) (45) (5)
Transfer gain (loss) and transfer fees (34,420) (29,319) 889 (592)
Transfers (to) from the Guarantee Account (note 1) 9,686,281 4,519,650 91,199 39,795
Interfund transfers 7,361,059 (56,107) 199,220 499,167
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 19,646,201 4,474,821 508,680 731,033
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 25,951,618 9,241,251 514,750 732,104
Net assets at beginning of period 148,285,626 72,023,553 - -
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period 174,237,244 81,264,804 514,750 732,104
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Fund
----------------------------------------------------
Equity
Income Growth Overseas
Portfolio Portfolio Portfolio
----------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) $ 35,977,444 41,560,128 7,707,720
Net realized gain 30,166,068 7,851,875 10,665,189
Unrealized appreciation (depreciation) on investments (4,013,502) 7,778,385 (1,715,674)
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 62,130,010 57,190,388 16,657,235
- -----------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 32,122,103 8,184,252 1,123,295
Loan interest - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (1,842,947) (1,034,887) (196,033)
Surrenders (18,412,703) (12,080,121) (3,238,165)
Loans - - -
Cost of insurance and administrative expense (note 3) (457,093) (282,272) (106,717)
Transfer gain (loss) and transfer fees (715,503) (168,994) (61,814)
Transfers (to) from the Guarantee Account (note 1) 25,706,630 4,020,969 1,217,384
Interfund transfers (4,263,821) (7,374,775) (7,754,838)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 32,136,666 (8,735,828) (9,016,888)
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets 94,266,676 48,454,560 7,640,347
Net assets at beginning of year 613,582,772 315,013,607 108,304,621
- -----------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $ 707,849,448 363,468,167 115,944,968
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Variable Insurance Products Variable Insurance Product
Fund II Fund III
-------------------------------- -----------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) 58,217,917 12,617,950 (50,927) 774,220
Net realized gain 7,318,237 6,218,461 655,612 184,574
Unrealized appreciation (depreciation) on investments (23,951,543) 20,941,267 2,849,033 1,393,070
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from operations 41,584,611 39,777,678 3,453,718 2,351,864
- ----------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 6,410,390 14,108,947 6,323,142 5,885,680
Loan interest - - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (1,623,640) (937,965) (553,075) (10,931)
Surrenders (19,928,963) (6,377,843) (533,667) (598,347)
Loans - - - -
Cost of insurance and administrative expense (note 3) (615,568) (158,468) (10,114) (9,572)
Transfer gain (loss) and transfer fees (2,500,324) (65,849) (75,330) 7,056
Transfers (to) from the Guarantee Account (note 1) 4,404,930 12,707,391 3,809,693 4,548,368
Interfund transfers (4,889,707) (4,522,746) 3,750,903 5,931,049
- ----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (18,742,882) 14,753,467 12,711,552 15,753,303
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 22,841,729 54,531,145 16,165,270 18,105,167
Net assets at beginning of year 483,874,812 242,137,396 15,708,222 17,087,775
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year 506,716,541 296,668,541 31,873,492 35,192,942
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<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 6/30/98 Ended 6/30/98 Ended 6/30/98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) $ 2,583,162 963,635 1,920,727
Net realized gain (loss) 932,146 809,224 765,621
Unrealized appreciation (depreciation) on investments 2,297,713 (503,603) (1,283,686)
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 5,813,021 1,269,256 1,402,662
- ------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 11,247,662 4,989,462 2,595,196
Loan interest - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (101,940) (94,093) (119,919)
Surrenders (1,083,321) (1,395,991) (956,863)
Loans - - -
Cost of insurance and administrative expense (note 3) (21,099) (15,745) (19,613)
Transfer gain (loss) and transfer fees (note 3) 14,686 (493) 930
Transfers (to) from the Guarantee Account (note 1) 6,832,605 6,614,508 2,306,189
Interfund transfers 3,850,903 (5,546,256) 436,365
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 20,739,496 4,551,392 4,242,285
- ------------------------------------------------------------------------------------------------------------------------
Increase in net assets 26,552,517 5,820,648 5,644,947
Net assets at beginning of year 34,893,726 35,195,347 30,397,894
- ------------------------------------------------------------------------------------------------------------------------
Net assets at end of year $61,446,243 41,015,995 36,042,841
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Alger American PBHG Insurance Series Fund
---------------------------------------------------------------
Small PBHG PBHG
Capitalization Growth Large Cap Growth II
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) 10,035,422 13,681,103 (42,528) (56,320)
Net realized gain (loss) 1,410,110 2,230,568 191,900 67,461
Unrealized appreciation (depreciation) on investments (1,585,465) 3,946,938 962,980 752,185
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 9,860,067 19,858,609 1,112,352 763,326
- ------------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 3,706,446 4,937,082 1,238,450 1,169,059
Loan interest - - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (164,600) (296,457) (31,834) (94,280)
Surrenders (1,418,178) (2,030,910) (243,498) (83,888)
Loans - - - -
Cost of insurance and administrative expense (note 3) (43,674) (42,616) (3,020) (2,866)
Transfer gain (loss) and transfer fees (note 3) (79,765) (86,773) (16,965) (1,202)
Transfers (to) from the Guarantee Account (note 1) 4,217,409 4,208,521 867,202 1,348,885
Interfund transfers (2,727,294) 1,964,633 790,222 (59,394)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from capital transactions 3,490,344 8,653,480 2,600,557 2,276,314
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets 13,350,411 28,512,089 3,712,909 3,039,640
Net assets at beginning of year 73,827,690 72,153,813 4,718,267 6,951,940
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of year 87,178,101 100,665,902 8,431,176 9,991,580
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
STATEMENTS OF CHANGES IN NET ASSETS, CONTINUED
For the period ended June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
---------------------------------------------------------------
Aggressive Worldwide
Growth Growth Growth Balanced
Portfolio Portfolio Portfolio Portfolio
---------------------------------------------------------------
Six Months Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) $ (717,616) 15,300,251 13,737,251 2,833,886
Net realized gain (loss) 7,253,385 6,298,570 23,050,199 1,391,937
Unrealized appreciation (depreciation) on investments 10,889,349 20,805,711 57,619,298 10,374,940
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 17,425,118 42,404,532 94,406,748 14,600,763
- ------------------------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 2,769,551 11,383,893 23,787,183 10,827,413
Loan interest - - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (463,086) (669,795) (631,613) (444,360)
Surrenders (3,134,761) (6,006,934) (8,639,577) (3,958,879)
Loans - - - -
Cost of insurance and administrative expense (note 3) (70,260) (170,241) (252,123) (71,646)
Transfer gain (loss) and transfer fees (24,241) (183,049) (33,432) (13,649)
Transfers (to) from the Guarantee Account (note 1) 2,234,219 9,703,006 19,063,122 9,162,887
Interfund transfers (3,859,006) (1,957,177) 7,658,750 6,820,016
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions (2,547,584) 12,099,703 40,952,310 22,321,782
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 14,877,534 54,504,235 135,359,058 36,922,545
Net assets at beginning of period 105,815,122 224,068,917 345,126,082 77,638,235
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets at end of period $ 120,692,656 278,573,152 480,485,140 114,560,780
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
---------------------------------------------------
Flexible International Capital
Income Growth Appreciation
Portfolio Portfolio Portfolio
---------------------------------------------------
Six Months Six Months Six Months
Ended 6/30/98 Ended 6/30/98 Ended 6/30/98
- ---------------------------------------------------------------------------------------------------------------------
<S> <C>
Increase (decrease) in net assets From operations:
Net investment income (expense) 707,903 871,513 (32,922)
Net realized gain (loss) 97,034 8,307,092 192,282
Unrealized appreciation (depreciation) on investments 21,957 3,158,627 1,244,526
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 826,894 12,337,232 1,403,886
- ---------------------------------------------------------------------------------------------------------------------
From capital transactions:
Net premiums 1,935,808 4,601,172 1,829,687
Loan interest - - -
Transfers (to) from the general account of Life of Virginia:
Death benefits (22,188) (210,620) (10,982)
Surrenders (407,772) (1,104,506) (206,613)
Loans - - -
Cost of insurance and administrative expense (note 3) (9,976) (34,385) (2,486)
Transfer gain (loss) and transfer fees (3,569) 626 (14,390)
Transfers (to) from the Guarantee Account (note 1) 2,779,754 4,898,203 884,966
Interfund transfers 2,116,817 (833,266) 2,911,490
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from capital transactions 6,388,874 7,317,224 5,391,672
- ---------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets 7,215,768 19,654,456 6,795,558
Net assets at beginning of period 14,336,751 54,665,726 2,669,575
- ---------------------------------------------------------------------------------------------------------------------
Net assets at end of period 21,552,519 74,320,182 9,465,133
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to unaudited financial statements.
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
- ------------------------------------------------------------------------------
(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 Financial Assurance Holdings, Inc. General
Electric Capital Assurance Corporation and GE Financial Assurance
Holdings, Inc. are indirectly, wholly-owned subsidiaries of General
Electric Capital ("GE Capital"). GE Capital, a diversified financial
services company, is a wholly-owned subsidiary of General Electric Company
(GE), a New York corporation. Prior to April 1, 1996, Life of Virginia was
an indirect wholly-owned subsidiary of Aon Corporation (Aon).
In May 1998, three new investment subdivisions were added to the Account,
for both Type I and Type II policies. The U.S. Equity Portfolio invests
solely in a designated portfolio of the GE Investments Funds, Inc. The Mid
Cap Equity Portfolio and Growth & Income Portfolio each invest solely in a
designated portfolio of the Goldman Sachs Variable Insurance Trust. 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.
(Continued)
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
(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.
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 and income
distributions are recorded on the ex-dividend 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, 1998 were:
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- --------------------------------------------------------------------------
GE Investment Funds, Inc.:
S&P 500 Index $ 77,825,387 $ 28,820,022
Money Market 640,337,774 604,565,123
Total Return 9,568,527 5,008,617
International Equity 8,584,591 8,922,318
Real Estate Securities 13,623,474 8,219,797
Global Income 1,122,913 255,387
Value Equity 22,548,333 7,378,286
Income 4,700,750 3,195,735
U.S. Equity 165,683 20,559
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
(2) Continued
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- --------------------------------------------------------------------------
Oppenheimer Variable Account Funds:
Bond 13,052,963 7,168,865
Capital Appreciation 62,107,285 55,605,105
Growth 147,600,584 119,159,350
High Income 47,702,753 21,021,355
Multiple Strategies 17,368,721 8,469,554
Variable Insurance Products Fund:
Equity-Income 254,131,320 184,635,109
Growth 71,850,821 38,242,467
Overseas 146,453,284 145,559,361
Variable Insurance Products Fund II:
Asset Manager 92,563,578 51,929,791
Contrafund 58,270,913 30,187,534
Variable Insurance Products Fund III:
Growth & Income 21,811,468 9,204,818
Growth Opportunties 19,951,678 3,310,117
Goldman Sachs Variable Insurance Trust
Growth & Income 494,124 20,910
Mid Cap Equity 735,153 19,724
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
(2) Continued
Cost of Proceeds
Shares from
Fund/Portfolio Acquired Shares Sold
- --------------------------------------------------------------------------
Janus Aspen Series:
Aggressive Growth 43,544,622 46,532,434
Growth 52,518,860 24,416,828
Worldwide Growth 142,871,788 82,735,760
Balanced 36,529,051 11,195,096
Flexible Income 9,415,848 2,252,762
International Growth 102,985,746 97,969,666
Capital Appreciation 8,313,048 3,262,971
Federated Insurance Series:
Utility Fund II 10,856,348 4,621,665
High Income Bond Fund II 24,978,087 19,407,263
American Leaders Fund II 32,366,460 8,924,333
The Alger American Fund
Small Capitalization 75,558,023 56,901,353
Growth 34,972,145 12,578,674
PBHG Insurance Series Fund, Inc.
PBHG Large Cap Growth 4,712,094 2,150,249
PBHG Growth II 5,095,211 2,685,770
Capital Transactions
The increase (decrease) in outstanding units for Type I and Type II from capital
transactions for the six months ended June 30, 1998 is as follows:
<PAGE>
Life of Virginia Separate Account 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
--------------------------------------------------------------------
S&P 500 Money Total International Real Estate Global
Index Market Return Equity Securites Income
Type I Units Fund Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 918,847 3,512,260 631,828 1,212,802 1,385,306 516,898
<S> <C>
From capital transactions:
Net premiums 24,788 1,672,233 8,882 8,759 11,898 3,277
Loan Interest - - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (1,905) (16,150) (1,863) (151) (208) -
Surrenders (32,983) (544,136) (38,542) (7,368) (7,921) (3,020)
Loans - - - - - -
Cost of insurance (1,202) (4,901) (792) (156) (238) (23)
Fixed Transfers 35,868 138,443 5,597 3,484 9,828 7,896
Interfund transfers 75,363 635,065 (7,816) (28,755) (19,164) 22,434
------ ------- ------ -------- ------ ------
Net increase (decrease) in units resulting
from capital transactions 99,929 1,880,554 (34,534) (24,187) (5,805) 30,564
------ --------- ------ -------- ------- ------
Units outstanding at June 30, 1998 1,018,776 5,392,814 597,294 1,188,615 1,379,501 547,462
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------
GE Investments Funds, Inc.
----------------------------
Value U.S.
Equity Income Equity
Type I Units Fund Fund Fund
- -------------------------------------------------------------------------
Units outstanding at December 31, 1997 479,621 1,295,638
<S> <C>
From capital transactions:
Net premiums 34,757 9,821 -
Loan Interest - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (162) (7,501) -
Surrenders (4,270) (77,195) -
Loans - - -
Cost of insurance (308) (1,502) (3)
Fixed Transfers 25,766 3,520 -
Interfund transfers 93,326 (33,094) 6,894
------ -------- -----
Net increase (decrease) in units resulting
from capital transactions 149,109 (105,951) 6,891
------- --------- -----
Units outstanding at June 30, 1998 628,730 1,189,687 6,891
- -------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
------------------------------------------------------------
Capital High Multiple
Bond Appreciation Growth Income Strategies
Type I Units Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 929,630 2,591,419 1,291,813 1,869,843 1,553,549
<S> <C>
From capital transactions:
Net premiums 19,483 12,377 34,123 21,895 30,574
Loan Interest - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (3,497) (2,311) (3,687) (2,160) (3,969)
Surrenders (69,017) (89,609) (112,706) (78,229) (86,400)
Loans - - - - -
Cost of insurance (1,049) (3,014) (2,772) (2,244) (1,943)
Fixed Transfers 22,455 8,902 24,275 21,107 10,463
Interfund transfers (50,649) (108,256) 67,188 (4,055) (16,569)
------- ------- ------ ------ ------
Net increase (decrease) in units resulting
from capital transactions (82,274) (181,911) 6,421 (43,686) (67,844)
------ ------- ------ ------ ------
Units outstanding at June 30, 1998 847,356 2,409,508 1,298,234 1,826,157 1,485,705
- --------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
Variable Insurance Products Fund
------------------------------------
Equity
Income Growth Overseas
Type I Units Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------
Units outstanding at December 31, 1997 6,589,338 4,467,825 3,398,260
<S> <C>
From capital transactions:
Net premiums 62,136 18,954 17,553
Loan Interest - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (8,095) (5,254) (4,462)
Surrenders (245,612) (207,559) (98,724)
Loans - - -
Cost of insurance (7,849) (5,380) (3,881)
Fixed Transfers 33,722 6,336 2,925
Interfund transfers (53,755) (83,027) (214,945)
-------- -------- ---------
Net increase (decrease) in units resulting
from capital transactions (219,453) (275,930) (301,534)
-------- ------- -------
Units outstanding at June 30, 1998 6,369,885 4,191,895 3,096,726
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Variable Insurance Products Variable Insurance Products
Fund II Fund III
---------------------------------- ------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
Type I Units Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 17,101,510 3,296,201 294,329 341,417
<S> <C>
From capital transactions:
Net premiums 61,721 40,250 19,502 35,679
Loan Interest - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (48,999) (2,401) - -
Surrenders (700,181) (143,008) (16,570) (23,375)
Loans - - - -
Cost of insurance (22,895) (3,895) (491) (503)
Fixed Transfers 17,291 28,121 22,158 22,102
Interfund transfers (291,964) (89,665) 184,840 119,361
-------- ------- ------- -------
Net increase (decrease) in units resulting
from capital transactions (985,027) (170,598) 209,439 153,264
--------- --------- ------- -------
Units outstanding at June 30, 1998 16,116,483 3,125,603 503,768 494,681
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Federated Insurance Series Alger American
--------------------------------------------- --------------------------------
American High Small
Leaders Income Bond Utility Capitalization Growth
Type I Units Fund II Fund II Fund II Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 361,619 456,124 485,332 1,325,070 1,022,514
<S> <C>
From capital transactions:
Net premiums 33,435 30,225 11,993 47,269 17,945
Loan Interest - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits - (2,807) (4,355) (384) -
Surrenders (21,803) (13,663) (19,213) (28,813) (48,495)
Loans - - - - -
Cost of insurance (503) (507) (767) (1,249) (1,007)
Fixed Transfers 13,675 53,630 13,959 27,106 7,459
Interfund transfers 108,115 (76,152) 9,078 (17,778) 46,816
------- -------- ------ -------- ------
Net increase (decrease) in units resulting
from capital transactions 132,919 (9,274) 10,695 26,151 22,718
------- ------- ------ ------ ------
Units outstanding at June 30, 1998 494,538 446,850 496,027 1,351,221 1,045,232
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
---------------------------------------------------------------------------------
Aggressive Worldwide Flexible
Growth Growth Growth Balanced Income
Type I Units Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 1,817,576 4,505,765 4,938,272 2,481,552 280,878
<S> <C>
From capital transactions:
Net premiums 13,097 42,192 91,696 74,688 28,908
Loan Interest - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (1,143) (6,308) (7,295) (7,981) (1,737)
Surrenders (71,669) (154,073) (163,955) (182,000) (13,784)
Loans - - - - -
Cost of insurance (2,201) (5,587) (6,624) (3,584) (408)
Fixed Transfers 6,514 36,962 40,859 54,850 17,090
Interfund transfers (66,853) (32,811) 124,682 171,998 64,127
-------- -------- ------- ------- ------
Net increase (decrease) in units resulting
from capital transactions (122,255) (119,625) 79,363 107,971 94,196
--------- --------- ------ ------- ------
Units outstanding at June 30, 1998 1,695,321 4,386,140 5,017,635 2,589,523 375,074
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
Janus Aspen Series
----------------------------------
International Capital
Growth Appreciation
Type I Units Portfolio Portfolio
- ------------------------------------------------------------------------------
Units outstanding at December 31, 1997 1,004,669 49,257
<S> <C>
From capital transactions:
Net premiums 36,131 8,408
Loan Interest - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (2,575) -
Surrenders (27,957) (3,340)
Loans - -
Cost of insurance (1,112) (116)
Fixed Transfers 19,149 6,560
Interfund transfers 60,710 103,917
------ -------
Net increase (decrease) in units resulting
from capital transactions 84,346 115,429
------ -------
Units outstanding at June 30, 1998 1,089,015 164,686
- ------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
PBHG Insurance Series Fund, Goldman Sachs Variable Insurance
Inc. Trust
--------------------------- -------------------------------------
PBHG PBHG Growth & Mid Cap
Large Cap Growth II Income Equity
Type I Units Portfolio Portfolio Fund Fund
- --------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 55,997 76,611
<S> <C>
From capital transactions:
Net premiums 6,829 18,231 - -
Loan Interest - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits - - - -
Surrenders (5,693) (980) - -
Loans - - - -
Cost of insurance (99) (117) - (1)
Fixed Transfers 4,066 3,905 - 1,228
Interfund transfers 19,276 (3,486) 2,352 33,897
------ ------- ------ ------
Net increase (decrease) in units resulting
from capital transactions 24,379 17,553 2,352 35,124
------ ------ ------ ------
Units outstanding at June 30, 1998 80,376 94,164 2,352 35,124
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
NOTES TO FINANCIAL STATEMENTS
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------------
GE Investments Funds, Inc.
------------------------------------------------------------------------------
S&P 500 Money Total International Real Estate Global
Index Market Return Equity Securites Income
TYPE II UNITS Fund Fund Fund Fund Fund Fund
- --------------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 3,025,140 4,980,487 928,145 614,410 1,478,247 79,290
<S> <C>
From capital transactions:
Net premiums 645,657 2,322,026 103,101 26,792 203,231 15,289
Loan Interest - - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (5,520) (91,010) (2,975) (3,146) (8,578) -
Surrenders (74,614) (642,450) (20,857) (18,579) (22,764) (1,050)
Loans - - - - - -
Cost of insurance (897) (2,010) (316) (349) (547) (4)
Fixed Transfers 346,475 755,490 112,320 50,366 201,571 22,711
Interfund transfers 167,671 (1,080,755) 7,296 (32,330) (52,983) 9,866
-------- ----------- ------ -------- -------- ------
Net increase (decrease) in units resulting
from capital transactions 1,078,772 1,261,291 198,569 22,754 319,930 46,812
---------- ---------- -------- ------- -------- -------
Units outstanding at June 30, 1998 4,103,912 6,241,778 1,126,714 637,164 1,798,177 126,102
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
GE Investments Funds, Inc.
--------------------------------
Value U.S.
Equity Income Equity
TYPE II UNITS Fund Fund Fund
- -------------------------------------------------------------------------------
Units outstanding at December 31, 1997 730,616 903,249
<S> <C>
From capital transactions:
Net premiums 456,467 51,724 4,584
Loan Interest - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (1,189) (1,886) -
Surrenders (33,142) (22,074) -
Loans - - -
Cost of insurance (204) (273) -
Fixed Transfers 232,499 127,481 -
Interfund transfers 282,359 133,166 3,256
-------- -------- -----
Net increase (decrease) in units resulting
from capital transactions 936,790 288,138 7,840
-------- -------- -----
Units outstanding at June 30, 1998 1,667,406 1,191,387 7,840
- -------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds
----------------------------------------------------------------------
Capital High Multiple
Bond Appreciation Growth Income Strategies
TYPE II UNITS Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 994,017 3,176,448 2,462,359 2,934,974 1,200,126
<S> <C>
From capital transactions:
Net premiums 119,660 146,526 259,164 239,084 114,451
Loan Interest - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (6,918) (10,037) (8,562) (9,507) (8,525)
Surrenders (24,973) (64,130) (67,199) (82,145) (39,416)
Loans - - - - -
Cost of insurance (336) (1,020) (907) (957) (460)
Fixed Transfers 169,030 161,206 211,564 285,863 156,520
Interfund transfers 52,915 (127,817) (29,850) 238,026 15,244
------- --------- -------- -------- -------
Net increase (decrease) in units resulting
from capital transactions 309,378 104,728 364,210 670,364 237,814
-------- -------- -------- -------- --------
Units outstanding at June 30, 1998 1,303,395 3,281,176 2,826,569 3,605,338 1,437,940
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
Variable Insurance Products Fund
--------------------------------------
Equity
Income Growth Overseas
TYPE II UNITS Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------
Units outstanding at December 31, 1997 10,074,173 3,614,598 1,762,588
<S> <C>
From capital transactions:
Net premiums 762,175 169,619 27,037
Loan Interest - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (38,998) (18,622) (3,410)
Surrenders (217,604) (72,730) (32,907)
Loans - - -
Cost of insurance (3,573) (1,175) (497)
Fixed Transfers 626,664 86,278 44,364
Interfund transfers (53,650) (87,611) (98,906)
-------- -------- --------
Net increase (decrease) in units resulting
from capital transactions 1,075,014 75,759 (64,319)
---------- ------- --------
Units outstanding at June 30, 1998 11,149,187 3,690,357 1,698,269
- ---------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
Variable Insurance Products Variable Insurance Products
Fund II Fund III
----------------------------------- --------------------------------
Asset Growth & Growth
Manager Contrafund Income Opportunities
TYPE II UNITS Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 2,678,933 8,595,677 976,086 1,049,540
<S> <C>
From capital transactions:
Net premiums 147,529 599,003 449,398 413,089
Loan Interest - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (10,973) (40,099) (41,006) (833)
Surrenders (56,574) (144,677) (23,071) (22,389)
Loans - - - -
Cost of insurance (745) (3,249) (261) (230)
Fixed Transfers 121,247 547,715 260,400 324,659
Interfund transfers 81,176 (114,463) 94,080 333,462
------- --------- ------- --------
Net increase (decrease) in units resulting
from capital transactions 281,660 844,230 739,540 1,047,758
-------- -------- -------- ----------
Units outstanding at June 30, 1998 2,960,593 9,439,907 1,715,626 2,097,298
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
Federated Insurance Series Alger American
--------------------------------------------- ---------------------------------
American High Small
Leaders Income Bond Utility Capitalization Growth
TYPE II UNITS Fund II Fund II Fund II Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 2,056,691 1,886,887 1,325,701 5,645,458 4,380,186
<S> <C>
From capital transactions:
Net premiums 679,309 292,072 142,110 289,084 303,668
Loan Interest - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (6,465) (2,943) (3,473) (14,015) (19,529)
Surrenders (46,521) (75,748) (40,357) (87,070) (75,511)
Loans - - - - -
Cost of insurance (826) (450) (524) (2,204) (1,597)
Fixed Transfers 419,410 371,647 123,597 350,334 268,274
Interfund transfers 134,225 (275,869) 18,147 (217,136) 73,162
-------- --------- ------ --------- -------
Net increase (decrease) in units resulting
from capital transactions 1,179,132 308,709 239,500 318,993 548,467
---------- -------- ------- -------- --------
Units outstanding at June 30, 1998 3,235,823 2,195,596 1,565,201 5,964,451 4,928,653
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series
------------------------------------------------------------------------------------------
Aggressive Worldwide Flexible International Capital
Growth Growth Growth Balanced Income Growth Appreciation
TYPE II UNITS Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 3,442,667 7,270,898 10,111,685 2,804,435 869,089 3,001,600 163,550
<S> <C>
From capital transactions:
Net premiums 344,685 504,285 818,656 606,199 122,198 268,183 116,487
Loan Interest - - - - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (60,734) (25,960) (17,341) (20,373) - (11,261) (751)
Surrenders (221,756) (138,220) (179,173) (79,866) (18,071) (43,127) (10,695)
Loans - - - - - - -
Cost of insurance (3,210) (2,733) (3,565) (1,179) (371) (1,076) (51)
Fixed Transfers 290,057 428,854 685,583 520,665 199,813 306,780 53,776
Interfund transfers (336,303) (61,905) 177,518 267,310 101,215 (122,679) 92,211
--------- -------- -------- -------- -------- --------- ------
Net increase (decrease) in units resulting
from capital transactions 12,739 704,321 1,481,678 1,292,756 404,784 396,820 250,977
------- -------- ---------- ---------- -------- -------- -------
Units outstanding at June 30, 1998 3,455,406 7,975,219 11,593,363 4,097,191 1,273,873 3,398,420 414,527
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------
PBHG Insurance Series Fund, Goldman Sachs Variable Insurance
Inc. Trust
---------------------------------- -------------------------------------
PBHG PBHG Growth & Mid Cap
Large Cap Growth II Income Equity
TYPE II UNITS Portfolio Portfolio Fund Fund
- -------------------------------------------------------------------------------------------------------------------
Units outstanding at December 31, 1997 346,833 576,010
<S> <C>
From capital transactions:
Net premiums 89,675 86,488 22,928 20,473
Loan Interest - - - -
Tranfers (to) from the
general acct. of Life of Virginia:
Death benefits (2,473) (8,508) - -
Surrenders (13,460) (6,548) (11) (3)
Loans - - - -
Cost of insurance (140) (137) (4) -
Fixed Transfers 63,479 117,659 9,613 3,014
Interfund transfers 42,912 (1,724) 18,628 19,525
------- ------- ------- ------
Net increase (decrease) in units resulting
from capital transactions 179,993 187,230 51,154 43,009
-------- -------- ------- ------
Units outstanding at June 30, 1998 526,826 763,240 51,154 43,009
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
(2) Continued
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 assumptions
that affect amounts and disclosures 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 Type I policies, during the first ten years following a premium
payment, a charge of .20% of the premium payment 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.
(Continued)
<PAGE>
LIFE OF VIRGINIA SEPARATE ACCOUNT 4
Notes to Financial Statements
June 30, 1998
(Unaudited)
(3) Continued
Administrative expenses as well as mortality and risk charges are deducted
daily and reflect the effective annual rates.
GE Investments Funds, Inc. (the Fund) is an open-end diversified
management investment company.
Capital Brokerage Corporation, an affiliate of Life of Virginia, is a
Washington Corporation registered with the Commission under the Securities
Exchange Act of 1934 as a broker-dealer and is a member of the National
Association of Securities Dealers, Inc. Capital Brokerage Corporation also
serves as principal underwriter for variable life insurance policies
issued by Life of Virginia.
GE Investment Management Incorporated (Investment Advisor), a wholly-owned
subsidiary of GE, currently serves as investment advisor to GE Investments
Funds, Inc. 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,
.50% for the Money Market, Income Fund and Total Return Funds, 1.00% for
the International Equity Fund, .85% for the Real Estate Securities Fund,
.60% for the Global Income Fund, .65% for the Value Equity Fund and .55%
for the U.S. Equity Fund.
Certain officers and directors of Life of Virginia are also officers and
directors of Capital Brokerage Corporation.
- ------------------------------------------------------------------------------
