<PAGE> 1
STAGECOACH VARIABLE ANNUITY(TM)
STAGECOACH VARIABLE ANNUITY PLUS(TM)
------------------
ANNUAL REPORT
------------------
DECEMBER 31, 1995
------------------
NOT FDIC INSURED
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<S> <C>
Letter to Contract Holders..................................................................... 2
American Skandia Life Assurance Corporation
Variable Account B -- Class 1 Financial Statements........................................... 5
Life and Annuity Trust Financial Statements.................................................... 17
American Skandia Trust Financial Statements.................................................... 47
Alger American Fund Financial Statements....................................................... 95
</TABLE>
This report has been prepared to provide information to owners of American
Skandia Life Assurance Corporation's Stagecoach Variable Annuity and Stagecoach
Variable Annuity Plus. If it is used for any other purpose it must be
accompanied or preceded by a current prospectus, as applicable, which discloses
any charges and other important information about the Account, together with the
current applicable prospectus for the Life & Annuity Trust, the American Skandia
Trust, and the Alger American Growth Fund.
This booklet includes a prospectus supplement which appears on the last page of
this report.
The financial statements for the sub-accounts which invest in Portfolios of
American Skandia Trust reflect financial activity for the Stagecoach Variable
Annuity, the Stagecoach Variable Annuity Plus, and other products that use the
same sub-accounts.
The Alger American Growth Portfolio, Berger Capital Growth Portfolio, PIMCO
Limited Maturity Bond Portfolio, and the PIMCO Total Return Bond Portfolio
include financial information on portfolios which are not available to owners of
the Stagecoach Variable Annuity, only Stagecoach Variable Annuity Plus.
[NOT FDIC INSURED LOGO]
1
<PAGE> 3
STAGECOACH VARIABLE ANNUITY
STAGECOACH VARIABLE ANNUITY PLUS
ANNUAL REPORT
TO OUR CONTRACT HOLDERS:
1995 produced investment returns rarely captured in the history of U.S.
financial markets. The stock market had its biggest one year gain since 1958, as
measured by the Standard & Poor's 500 Index. Long-term bond returns were the
third best results since 1950, according to various bond indexes. The average
stock mutual fund generated total returns above 30%, and the average U.S.
Government bond fund posted returns above 18%.
The Stock Market
U.S. equities generated near record returns in 1995. The ingredients were
all there for a spectacular year: declining interest rates, low inflation,
increasing profit margins and a positive flow of funds into the market.
Technology stocks were winners in 1995, reflecting the strength of earnings
growth. Financial stocks were also market leaders, benefiting from falling
interest rates, industry consolidation and record profit levels. Strength was
seen in traditional consumer goods companies. Large U.S.-based multinationals,
companies with global name recognition and consistent positive financial
results, earned strong recommendations from industry analysts.
It is important to remain focused on the companies working effectively to
enhance shareholder value. A low inflation environment in 1996 may well support
the generous valuations carried in the market today, but investors are likely to
be less forgiving of profit shortfalls. As a result, stock price volatility, the
up-and-down swings over a short time period, is likely to increase in the coming
year. A repeat of 1995 is unlikely to occur; however, many of the elements for
attractive market returns are still present: a benign interest rate environment,
corporate restructuring, mergers and acquisitions and share repurchase programs,
and finally, the continual stream of contributions into mutual funds, retirement
plans and household savings. These elements suggest that investors are taking a
long-term approach to appreciation through investment in equities.
The Bond Market
For bond investors, 1995 essentially reversed much of their 1994 bond price
erosion. Short and long-term interest rates fell sharply during 1995. The two
year Treasury yield fell over 2.50% and the thirty year rate dropped almost 2%.
However, the investment outlook remains positive for fixed income markets in
1996. Sluggish economic growth and low inflation may lead to further easing of
monetary policy early in the year, and both short and long-term interest rates
may decline. Short-term rates will likely fall more sharply than long-term
rates.
Several broad trends continue to support a declining interest rate
environment. An aging "baby boomer" population appears increasingly focused on
savings and investments, not consumption. This has contributed to a slowdown in
the consumer sector of the economy. Further weakness in manufacturing activity
and consumer spending is expected to restrain overall growth. In addition,
pricing pressures should remain subdued by a variety of disinflationary trends,
including weak demand, intense foreign competition, and further gains in labor
productivity. Although any decline in interest rates in the months ahead is not
expected to be as impressive as the sharp drop seen over the past year, 1996
should reward bond investors.
2
<PAGE> 4
Environment Remains "Friendly"
As we noted earlier, in the current economic environment, we expect the
stock and bond markets to continue to benefit from lower interest rates during
1996. Modest growth and historically low inflation should set the stage for
further interest rate declines over the next several months. The inflation
premium on bond yields remains above its long-term average. Recent encouraging
news on plans to reduce the federal deficit should have a positive effect on
investors. Lower interest rates and an improved outlook for economic growth and
corporate earnings should help support the stock market as well. Although we do
not foresee a recession, we expect a sustained period of slow growth. In this
environment, long-term rates should decline. Of course, the financial markets
are not without their risks and uncertainties, but with sluggish economic growth
and moderate inflation the risk of interest rates rising substantially appears
to be low.
A Commitment to Investment Quality
We believe a conservative, straightforward approach to be the most
effective long-term investment strategy, and we offer a variety of investment
options to meet a broad range of investment goals. On the following pages you
will find reports from the investment advisor and fund managers, offering
insight into individual fund performance and strategies, fund holdings and other
helpful information.
We appreciate your participation in Stagecoach Variable Annuity and
Stagecoach Variable Annuity Plus. We will continue working diligently to help
you realize your financial goals.
Sincerely,
Gordon C. Boronow
President & Chief Operating Officer
American Skandia Life Assurance Corporation
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)" are registered trademarks of
McGraw-Hill, Inc. The S&P 500 Index is an unmanaged index of 500 widely held
common stocks representing industrial, transportation, utility and financial
companies, listed or traded on national exchanges and the over-the-counter
market.
3
<PAGE> 5
INDEPENDENT AUDITORS' REPORT
To the Contractowners of
American Skandia Life Assurance Corporation
Variable Account B -- Class 1 (Stagecoach Variable Annuity and Stagecoach
Variable Annuity Plus) and the Board of Directors of American Skandia
Life Assurance Corporation Shelton, Connecticut
We have audited the accompanying statement of assets and liabilities of the
twelve sub-accounts of American Skandia Life Assurance Corporation Variable
Account B -- Class 1, referred to in Note 1, as of December 31, 1995, and the
related statements of operations and of changes in net assets for the periods
presented. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1995 with the managers of
the mutual funds. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the twelve sub-accounts of American Skandia
Life Assurance Corporation Variable Account B -- Class 1, referred to in Note 1,
as of December 31, 1995, the results of their operations and the changes in
their net assets for the periods presented in conformity with generally accepted
accounting principles.
DELOITTE & TOUCHE LLP
New York, New York
February 20, 1996
4
<PAGE> 6
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment in mutual funds at market value (Note 2):
Life & Annuity Trust (LAT):
U.S. Government Allocation Portfolio--466,933 shares (cost $4,758,812)...................... $ 4,809,412
Asset Allocation Portfolio--2,249,149 shares (cost $24,262,012)............................. 25,347,910
Growth & Income Portfolio--840,171 shares (cost $9,861,939)................................. 10,846,609
Money Market Portfolio--5,513,666 shares (cost $5,513,666).................................. 5,513,666
American Skandia Trust (AST):
JanCap Growth Portfolio--27,632,476 shares (cost $339,716,206).............................. 425,540,125
T. Rowe Price International Equity Portfolio--17,499,340 shares (cost $174,844,914)......... 186,367,971
Founders Capital Appreciation Portfolio--5,957,728 shares (cost $71,619,186)................ 84,897,630
INVESCO Equity Income Portfolio--13,696,413 shares (cost $146,831,553)...................... 171,205,167
PIMCO Total Return Bond Portfolio--18,929,196 shares (cost $203,363,785).................... 214,657,080
PIMCO Limited Maturity Bond Portfolio--14,918,580 shares (cost $154,976,091)................ 156,197,528
Berger Capital Growth Portfolio--3,599,220 shares (cost $40,392,302)........................ 44,630,334
The Alger American Fund (AAF):
Growth Portfolio--12,098,178 shares (cost $340,748,419)..................................... 376,979,213
--------------
TOTAL INVESTED ASSETS................................................................... 1,706,992,645
Receivable from American Skandia Life Assurance Corp................................................ 214,604,754
--------------
TOTAL ASSETS............................................................................ $1,921,597,399
--------------
LIABILITIES:
Payable to American Skandia Trust............................................................... $ 149,570,847
Payable to The Alger American Fund.............................................................. 64,811,586
Payable to Life & Annuity Trust................................................................. 222,320
--------------
TOTAL LIABILITIES....................................................................... $ 214,604,753
--------------
</TABLE>
NET ASSETS:
<TABLE>
<CAPTION>
Unit
Contractowners' Equity Units Value
- -------------------------------------------------------------------------- ---------- ------
<S> <C> <C> <C>
LAT-U.S. Government Allocation........................................ 428,889 $11.21 $ 4,809,412
LAT-Asset Allocation.................................................. 1,991,150 12.73 25,347,910
LAT-Growth & Income................................................... 823,247 13.18 10,846,610
LAT-Money Market...................................................... 521,291 10.58 5,513,666
AST-JanCap Growth..................................................... 28,662,737 14.85 425,540,124
AST-T. Rowe Price International Equity................................ 17,935,251 10.39 186,367,972
AST-Founders Capital Appreciation..................................... 6,076,373 13.97 84,897,630
AST-INVESCO Equity Income............................................. 13,883,712 12.33 171,205,167
AST-PIMCO Total Return Bond........................................... 19,061,840 11.26 214,657,080
AST-PIMCO Limited Maturity Bond....................................... 15,058,644 10.37 156,197,528
AST-Berger Capital Growth............................................. 3,658,836 12.20 44,630,334
AAF-Growth............................................................ 12,092,291 31.18 376,979,213
--------------
TOTAL NET ASSETS.................................................. $1,706,992,646
==============
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
5
<PAGE> 7
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENT OF OPERATIONS
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing in:
----------------------------------------------
LAT-U.S.
Gov't
Asset LAT-Asset
Total Allocation Allocation
------------ ---------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income
Dividends.......................................................... $ 5,560,300 $125,008 $ 794,341
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note
4)............................................................... (14,368,862) (30,655) (206,064)
------------ -------- ----------
NET INVESTMENT INCOME (LOSS)........................................... (8,808,562) 94,353 588,277
------------ -------- ----------
REALIZED GAIN ON INVESTMENTS:
Proceeds From Sales................................................ 216,548,802 169,600 502,633
Cost of Securities Sold............................................ 186,569,621 166,978 446,616
------------ -------- ----------
Net Gain......................................................... 29,979,181 2,622 56,017
Capital Gain Distributions Received................................ 3,189,397 40,535 1,264,529
------------ -------- ----------
NET REALIZED GAIN...................................................... 33,168,578 43,157 1,320,546
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period................................................ (3,477,855) (28,982) (159,523)
End of Period...................................................... 190,103,760 50,600 1,085,898
------------ -------- ----------
NET UNREALIZED GAIN.................................................... 193,581,615 79,582 1,245,421
------------ -------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................... $217,941,631 $217,092 $3,154,244
============ ======== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
6
<PAGE> 8
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing In:
-----------------------------------------------------------------------------------------------------------------------
AST-T. Rowe
Price AST-Founders AST-PIMCO
LAT-Growth & LAT-Money AST-JanCap International Capital AST-INVESCO Total Return
Income Market Growth Equity Appreciation Equity Income Bond
-------------- ----------- ------------ ------------- -------------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 110,262 $ 111,971 $ 1,353,851 $ 118,043 $ 269,670 $ 1,036,385 $ 1,209,016
(77,657) (30,689) (4,808,745) (1,999,016) (746,747) (1,556,324) (1,373,085)
---------- ---------- ----------- ----------- ----------- ----------- -----------
32,605 81,282 (3,454,894) (1,880,973) (477,077) (519,939) (164,069)
---------- ---------- ----------- ----------- ----------- ----------- -----------
52,262 2,417,893 46,929,431 24,433,812 4,789,770 8,819,781 35,874,313
47,386 2,417,893 38,189,700 24,264,691 3,804,447 7,648,084 32,426,533
---------- ---------- ----------- ----------- ----------- ----------- -----------
4,876 0 8,739,731 169,121 985,323 1,171,697 3,447,780
122,013 407 0 243,203 0 0 0
---------- ---------- ----------- ----------- ----------- ----------- -----------
126,889 407 8,739,731 412,324 985,323 1,171,697 3,447,780
10,502 0 (1,818,595) (2,989,688) 1,868,641 (891,893) (251,292)
984,670 0 85,823,919 11,523,057 13,278,444 24,373,614 11,293,295
---------- ---------- ----------- ----------- ----------- ----------- -----------
974,168 0 87,642,514 14,512,745 11,409,803 25,265,507 11,544,587
---------- ---------- ----------- ----------- ----------- ----------- -----------
$1,133,662 $ 81,689 $92,927,351 $13,044,096 $ 11,918,049 $25,917,265 $14,828,298
========== ========== =========== =========== ============ =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
7
<PAGE> 9
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENT OF OPERATIONS (CONCLUDED)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing in:
---------------------------------------------------
AST-PIMCO
Limited Maturity
Bond AST-Berger
(May 1* Thru Capital
Dec. 31, 1995) Growth AAF-Growth
---------------- ---------- -----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Income
Dividends....................................................... $ 0 $ 3,085 $ 428,668
Expenses
Mortality and Expense Risks Charges and Administrative Fees
(Note 4)...................................................... (196,743) (296,102) (3,047,035)
---------- ---------- -----------
NET INVESTMENT INCOME (LOSS)........................................ (196,743) (293,017) (2,618,367)
---------- ---------- -----------
REALIZED GAIN ON INVESTMENTS:
Proceeds From Sales............................................. 2,464,086 3,814,017 86,281,204
Cost of Securities Sold......................................... 2,389,194 3,370,323 71,397,776
---------- ---------- -----------
Net Gain...................................................... 74,892 443,694 14,883,428
Capital Gain Distributions Received............................. 0 0 1,518,710
---------- ---------- -----------
NET REALIZED GAIN................................................... 74,892 443,694 16,402,138
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period............................................. 0 30,142 752,833
End of Period................................................... 1,221,437 4,238,032 36,230,794
---------- ---------- -----------
NET UNREALIZED GAIN................................................. 1,221,437 4,207,890 35,477,961
---------- ---------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $1,099,586 $4,358,567 $49,261,732
========== ========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced
8
<PAGE> 10
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing In:
----------------------------------------------------------------------
LAT-U.S. Gov't
Total Asset Alloc.
--------------------------------- ------------------------------
Year Ended Year Ended
Year Ended Dec. 31, Dec. 31, Apr. 26* Thru
Dec. 31, 1995 1994 1995 Dec. 31, 1994
-------------- ------------ ---------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss).................... $ (8,808,562) $ (5,259,460) 94,353 $ 20,797
Net Realized Gain (Loss)........................ 33,168,578 11,477,769 43,157 (502)
Net Unrealized Gain (Loss) On Investments....... 193,581,615 (21,954,618) 79,582 (28,982)
-------------- ------------ ---------- --------
Net Increase (Decrease) In Net Assets
Resulting From Operations................... 217,941,631 (15,736,309) 217,092 (8,687)
-------------- ------------ ---------- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits.............. 468,129,668 304,108,141 3,814,952 841,458
Net Transfers Between Sub-accounts.............. 436,233,284 133,240,410 19,656 8,203
Surrenders...................................... (45,523,156) (18,542,701) (83,374) 112
-------------- ------------ ---------- --------
Net Increase In Net Assets Resulting From
Capital Share Transactions.................. 858,839,796 418,805,850 3,751,234 849,773
-------------- ------------ ---------- --------
TOTAL INCREASE IN NET ASSETS........................ 1,076,781,427 403,069,541 3,968,326 841,086
NET ASSETS:
Beginning of Period............................. 630,211,219 227,141,678 841,086 0
-------------- ------------ ---------- --------
End of Period................................... $1,706,992,646 $630,211,219 $4,809,412 $ 841,086
============== ============ ========== ========
- --------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
* Date Operations Commenced.
9
<PAGE> 11
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENTS OF CHANGES IN NET ASSETS (CONT'D)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing In:
---------------------------------------------------------------
LAT-Asset LAT-Growth
Allocation & Income
---------------------------- ----------------------------
Apr. 15* Apr. 15*
Year Ended Thru Year Ended Thru
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss).......................... $ 588,277 $ 142,892 $ 32,605 $ 10,873
Net Realized Gain (Loss).............................. 1,320,546 71,651 126,889 1,269
Net Unrealized Gain (Loss) On Investments............. 1,245,421 (159,523) 974,168 10,502
----------- ---------- ----------- ----------
Net Increase (Decrease) In Net Assets Resulting From
Operations........................................ 3,154,244 55,020 1,133,662 22,644
----------- ---------- ----------- ----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits.................... 14,803,412 7,601,144 7,612,227 2,099,892
Net Transfers Between Sub-accounts.................... 491,844 135,954 205,236 21,913
Surrenders............................................ (541,317) (352,391) (215,054) (33,910)
----------- ---------- ----------- ----------
Net Increase In Net Assets Resulting From Capital
Share Transactions................................ 14,753,939 7,384,707 7,602,409 2,087,895
----------- ---------- ----------- ----------
TOTAL INCREASE IN NET ASSETS.............................. 17,908,183 7,439,727 8,736,071 2,110,539
NET ASSETS:
Beginning of Period................................... 7,439,727 0 2,110,539 0
----------- ---------- ----------- ----------
End of Period......................................... $25,347,910 $7,439,727 $10,846,610 $2,110,539
=========== ========== =========== ==========
- ----------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
* Date Operations Commenced.
10
<PAGE> 12
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing In:
------------------------------------------------------------------------------------------------------
LAT-Money AST AST-T. Rowe Price
Market JanCap Growth International Equity
------------------------------ ------------------------------- -------------------------------
Year Ended May 19* Thru Year Ended Year Ended Year Ended Jan. 3* Thru
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1995 Dec. 31, 1994
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
$ 81,282 $ 16,270 $ (3,454,894) $ (2,491,101) $ (1,880,973) $ (841,016)
407 4 8,739,731 1,587,144 412,324 (206,344)
0 0 87,642,514 (11,094,994) 14,512,745 (2,989,688)
---------- ---------- ------------ ------------ ------------ ------------
81,689 16,274 92,927,351 (11,998,951) 13,044,096 (4,037,048)
---------- ---------- ------------ ------------ ------------ ------------
7,128,031 3,111,318 88,067,295 89,693,814 53,649,285 65,204,510
(2,628,013) (1,057,200) 15,929,654 16,413,857 18,923,032 46,877,402
(533,891) (604,542) (15,318,172) (7,841,867) (5,180,566) (2,112,739)
---------- ---------- ------------ ------------ ------------ ------------
3,966,127 1,449,576 88,678,777 98,265,804 67,391,751 109,969,173
---------- ---------- ------------ ------------ ------------ ------------
4,047,816 1,465,850 181,606,128 86,266,853 80,435,847 105,932,125
1,465,850 0 243,933,996 157,667,143 105,932,125 0
---------- ---------- ------------ ------------ ------------ ------------
$ 5,513,666 $ 1,465,850 $425,540,124 $243,933,996 $186,367,972 $105,932,125
========== ========== ============ ============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE> 13
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing In:
------------------------------------------------------------------
AST-Founders Capital AST-INVESCO
Appreciation Equity Income
----------------------------- ------------------------------
Jan. 5* Jan. 3*
Year Ended Thru Year Ended Thru
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)....................... $ (477,077) $ (153,802) $ (519,939) $ (428,257)
Net Realized Gain (Loss)........................... 985,323 66,235 1,171,697 (1,642)
Net Unrealized Gain (Loss) On Investments.......... 11,409,803 1,868,641 25,265,507 (891,893)
----------- ----------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting
From Operations................................ 11,918,049 1,781,074 25,917,265 (1,321,792)
----------- ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits................. 29,337,377 14,103,413 52,541,497 48,411,425
Net Transfers Between Sub-accounts................. 17,878,947 11,996,947 33,377,835 18,185,796
Surrenders......................................... (1,763,301) (354,876) (4,408,157) (1,498,702)
----------- ----------- ------------ -----------
Net Increase In Net Assets Resulting From Capital
Share Transactions............................. 45,453,023 25,745,484 81,511,175 65,098,519
----------- ----------- ------------ -----------
TOTAL INCREASE IN NET ASSETS........................... 57,371,072 27,526,558 107,428,440 63,776,727
NET ASSETS:
Beginning of Period................................ 27,526,558 0 63,776,727 0
----------- ----------- ------------ -----------
End of Period...................................... $84,897,630 $27,526,558 $171,205,167 $63,776,727
=========== =========== ============ ===========
- ---------------------------------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements.
* Date Operations Commenced.
12
<PAGE> 14
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class 1 Sub-accounts Investing In:
----------------------------------------------------------------------------------------------------------------------------
AST-PIMCO
AST-PIMCO Limited Maturity AST-Berger
Total Return Bond Bond Capital Growth AAF Growth
------------------------------- ---------------- ------------------------------- -------------------------------
Year Ended Jan. 3* Thru May 1* Thru Year Ended Oct. 19* Thru Year Ended Year Ended
Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1995 Dec. 31, 1995 Dec. 31, 1994 Dec. 31, 1995 Dec. 31, 1994
------------- ------------- ---------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
$ (164,069) $ (299,678) $ (196,743) $ (293,017) $ (3,225) $ (2,618,367) $ (1,233,213)
3,447,780 (39,295) 74,892 443,694 (1,238) 16,402,138 10,000,487
11,544,587 (251,292) 1,221,437 4,207,890 30,142 35,477,961 (8,447,531)
------------ ----------- ------------ ----------- ---------- ------------ ------------
14,828,298 (590,265) 1,099,586 4,358,567 25,679 49,261,732 319,743
------------ ----------- ------------ ----------- ---------- ------------ ------------
72,691,543 32,923,290 28,824,536 24,892,130 1,213,330 84,767,383 38,904,547
87,302,875 13,167,453 127,366,630 12,962,168 1,759,059 124,403,420 25,731,026
(4,178,333) (1,487,781) (1,093,224) (577,822) (2,777) (11,629,945) (4,253,228)
------------ ----------- ------------ ----------- ---------- ------------ ------------
155,816,085 44,602,962 155,097,942 37,276,476 2,969,612 197,540,858 60,382,345
------------ ----------- ------------ ----------- ---------- ------------ ------------
170,644,383 44,012,697 156,197,528 41,635,043 2,995,291 246,802,590 60,702,088
44,012,697 0 0 2,995,291 0 130,176,623 69,474,535
------------ ----------- ------------ ----------- ---------- ------------ ------------
$214,657,080 $44,012,697 $156,197,528 $44,630,334 $ 2,995,291 $376,979,213 $130,176,623
============ =========== ============ =========== ========== ============ ============
</TABLE>
- --------------------------------------------------------------------------------
13
<PAGE> 15
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
1. ORGANIZATION
American Skandia Life Assurance Corporation Variable Account B -- Class 1 (the
"Account") is a separate investment account of American Skandia Life Assurance
Corporation ("American Skandia"). The Account is registered with the SEC under
the Investment Company Act of 1940 as a unit investment trust. The Account
commenced operations September 20, 1988.
As of December 31, 1995 the Account consisted of forty sub-accounts. These
financial statements report on the twelve sub-accounts offered in American
Skandia's Stagecoach Variable Annuity and Stagecoach Variable Annuity Plus. Each
of the twelve sub-accounts invests only in a single corresponding portfolio of
either the Life & Annuity Trust, the American Skandia Trust or The Alger
American Fund. Wells Fargo Bank N.A. is the investment manager for the Life &
Annuity Trust, while Wells Fargo Nikko Investment Advisors serves as a
sub-advisor for the U.S. Government Allocation Fund and Asset Allocation Fund.
American Skandia Investment Services, Incorporated is the investment manager for
American Skandia Trust, while Janus Capital Corporation, T. Rowe Price
Associates, Inc., Founders Asset Management, Inc., INVESCO Trust Company,
Pacific Investment Management Company and Berger Associates are the
sub-advisors. Fred Alger Management, Inc. is the advisor for The Alger American
Fund. The investment advisors are paid fees for their services by the respective
Trusts.
The AST-PIMCO Limited Maturity Bond sub-account commenced operations on May 1,
1995.
2. VALUATION OF INVESTMENTS
The market value of the investments in the sub-accounts is based on the net
asset values of the Trust shares held at the end of the current period.
Transactions are accounted for on the trade date and dividend income is
recognized on an accrual basis. Realized gains and losses on sales of
investments are determined on a first-in first-out basis.
3. INCOME TAXES
American Skandia does not expect to incur any Federal income tax liability on
earnings, or realized capital gains attributable to the Account, therefore, no
charges for Federal income taxes are currently deducted from the Account. If
American Skandia incurs income taxes attributable to the Account, or determines
that such taxes will be incurred, it may make a charge for such taxes against
the Account.
Under current laws, American Skandia may incur state and local income taxes (in
addition to premium tax) in several states. The company does not anticipate that
these will be significant. However, American Skandia may make charges to the
Account in the event that the amount of these taxes change.
4. CONTRACT CHARGES
The following contract charges are paid to American Skandia:
Mortality and Expense Risk Charges -- Charged daily against the Account at an
annual rate of 1.25% of the net assets.
Administrative Fees -- Charged daily against the Account at an annual rate of
.15% of the net assets. A maintenance fee of $30 is deducted at the end of each
contract year and on surrender.
Contingent Deferred Sales Charges are computed as set forth in the Stagecoach
Variable Annuity prospectus and the Stagecoach Variable Annuity Plus prospectus.
These charges may be imposed on the full, or partial surrender of certain
contracts. There is no contingent deferred sales charge if all premiums were
received at least seven complete years prior to the date of the full or partial
surrender.
14
<PAGE> 16
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
NOTES TO FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
5. CHANGES IN THE UNITS OUTSTANDING
<TABLE>
<CAPTION>
Sub-accounts Investing In:
-------------------------------------------------------------
LAT-U.S. Gov't LAT-Asset
Allocation Allocation
--------------------------- ---------------------------
Apr. 26* Apr. 15*
Year Ended Thru Year Ended Thru
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period......................... 84,609 0 743,176 0
Units Purchased................................................... 350,226 83,844 1,248,819 753,432
Units Transferred Between Sub-accounts............................ 1,867 821 46,138 24,810
Units Surrendered................................................. (7,813) (56) (46,983) (35,066)
------- ------ --------- -------
Units Outstanding End of the Period............................... 428,889 84,609 1,991,150 743,176
======= ====== ========= =======
<CAPTION>
Sub-accounts Investing In:
-------------------------------------------------------------
LAT-Growth LAT-Money
& Income Market
--------------------------- ---------------------------
Apr. 15* May 19*
Year Ended Thru Year Ended Thru
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period......................... 204,067 0 144,050 0
Units Purchased................................................... 620,053 205,260 682,171 308,444
Units Transferred Between Sub-accounts............................ 16,982 2,113 (252,825) (139,226)
Units Surrendered................................................. (17,855) (3,306) (52,105) (25,168)
------- ------- ------- -------
Units Outstanding End of the Period............................... 823,247 204,067 521,291 144,050
======= ======= ======= =======
<CAPTION>
Sub-accounts Investing In:
-------------------------------------------------------------
AST-T. Rowe Price
AST-JanCap Growth International Equity
--------------------------- ---------------------------
Jan. 3*
Year Ended Year Ended Year Ended Thru
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period......................... 22,354,170 13,603,637 11,166,758 0
Units Purchased................................................... 6,507,267 7,976,529 5,451,722 6,643,509
Units Transferred Between Sub-accounts............................ 981,087 1,497,592 1,852,683 4,744,934
Units Surrendered................................................. (1,179,787) (723,588) (535,912) (221,685)
---------- ---------- ---------- ----------
Units Outstanding End of the Period............................... 28,662,737 22,354,170 17,935,251 11,166,758
========== ========== ========== ==========
<CAPTION>
Sub-accounts Investing In:
-------------------------------------------------------------
AST-Founders AST-INVESCO
Capital Appreciation Equity Income
--------------------------- ---------------------------
Jan. 5* Jan. 3*
Year Ended Thru Year Ended Thru
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1995 1994 1995 1994
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period......................... 2,575,105 0 6,633,333 0
Units Purchased................................................... 2,286,783 1,412,806 4,723,155 4,940,630
Units Transferred Between Sub-accounts............................ 1,357,850 1,198,628 2,932,812 1,851,061
Units Surrendered................................................. (143,365) (36,329) (405,588) (158,358)
--------- --------- ---------- ---------
Units Outstanding End of the Period............................... 6,076,373 2,575,105 13,883,712 6,633,333
========= ========= ========== =========
</TABLE>
- --------------------------------------------------------------------------------
*Date Operations Commenced.
15
<PAGE> 17
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B--CLASS 1
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Sub-accounts Investing In:
------------------------------------------------------------
AST-PIMCO Total
Return Bond
--------------------------- AST-PIMCO Ltd.
Jan. 3* Maturity Bond
Year Ended Thru ---------------
Dec. 31, Dec. 31, May 1* Thru
1995 1994 Dec. 31, 1995
---------- ---------- ---------------
<S> <C> <C> <C>
Units Outstanding Beginning of the Period.......................... 4,577,708 0 0
Units Purchased.................................................... 6,858,117 3,383,108 2,833,131
Units Transferred Between Sub-accounts............................. 8,025,131 1,354,594 12,333,359
Units Surrendered.................................................. (399,116) (159,994) (107,846)
---------- --------- ----------
Units Outstanding End of the Period................................ 19,061,840 4,577,708 15,058,644
========== ========= ==========
</TABLE>
<TABLE>
<CAPTION>
Sub-accounts Investing In:
-------------------------------------------------------------
AST-Berger AAF-Growth
Capital Growth ---------------------------
------------------------------ Year Ended Year Ended
Year Ended Oct. 19* Thru Dec. 31, Dec. 31,
Dec. 31, 1995 Dec. 31, 1994 1995 1994
------------- --------------- ---------- ----------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period.......................... 301,267 0 5,614,760 2,997,458
Units Purchased.................................................... 2,242,838 123,907 2,850,077 1,718,430
Units Transferred Between Sub-accounts............................. 1,168,175 177,648 4,034,205 1,095,282
Units Surrendered.................................................. (53,444) (288) (406,751) (196,410)
---------- ------- ---------- ---------
Units Outstanding End of the Period................................ 3,658,836 301,267 12,092,291 5,614,760
========== ======= ========== =========
</TABLE>
- --------------------------------------------------------------------------------
*Date Operations Commenced.
16
<PAGE> 18
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE LIFE & ANNUITY TRUST FUND FOLLOW
AT THIS POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION VIA THE
EDGAR FORMAT ON MARCH 8, 1996; FORM TYPE N-30D; FILE #811-08118. THE FINANCIAL
STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE TO OWNERS
OF THE ADVISORS SELECT ANNUITY, THE ADVISORS CHOICE ANNUITY NOR THE ADVISORS
DESIGN ANNUITY.]
<PAGE> 19
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE AMERICAN SKANDIA TRUST FUND FOLLOW
AT THIS POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION VIA THE
EDGAR FORMAT ON MARCH 7, 1996; FORM TYPE N-30D; FILE # 811-05186. THE FINANCIAL
STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE TO OWNERS
OF THE LIFEVEST PERSONAL SECURITY ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN
ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN II ANNUITIES NOR THE ALLIANCE CAPITAL
NAVIGATOR ANNUITIES.]
<PAGE> 20
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE ALGER AMERICAN FUND FOLLOW AT THIS
POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE COMMISSION VIA THE EDGAR
FORMAT ON FEBRUARY 28, 1996; FORM TYPE N-30D; FILE # 811-5550. THE FINANCIAL
STATEMENTS INCLUDE INFORMATION ON PORTFOLIOS WHICH ARE NOT AVAILABLE TO OWNERS
OF THE LIFEVEST PERSONAL SECURITY ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN
ANNUITIES, AMERICAN SKANDIA ADVISORS PLAN II ANNUITIES NOR THE ALLIANCE CAPITAL
NAVIGATOR ANNUITIES.]
<PAGE> 21
American Skandia Life
Assurance Corporation
Tower One Corporate Drive
Shelton, CT 06484
----------------------
BULK RATE
U. S. POSTAGE
PAID
NEW YORK, NY
PERMIT NO. 8048
----------------------
-----------------------------------------------------------
-----------------------------------------------------------
