<PAGE> 1
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B
CLASS 1
Financial Statements
For the Periods Ended
December 31, 1995
This report has been prepared to provide information to owners of American
Skandia Life Assurance Corporation's LifeVest(R) Personal Security Annuities,
American Skandia Advisors Plan(SM) Annuities, American Skandia Advisors Plan
II(SM) Annuities, The Imperium(SM) Annuities and The Alliance Capital Navigator
Annuities. If it is used for any other purpose, it must be accompanied or
preceded by a current LifeVest(R) Personal Security Annuity prospectus, an
American Skandia Advisors Plan(SM) prospectus, an American Skandia Advisors
Plan IISM prospectus, an Imperium(SM) prospectus or The Alliance Capital
Navigator prospectus, as applicable, which discloses any charges and other
important information about the Account, together with the current applicable
prospectus for the Neuberger & Berman Advisors Management Trust, The Alger
American Fund, the American Skandia Trust or the Alliance Variable Products
Series Fund, Inc.
<PAGE> 2
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
PRESIDENT'S LETTER
FEBRUARY, 1996
Dear Contractholder:
What a year it was! The New York Stock Exchange hit a record high on 69 days, a
record number of record highs! The performance of the Variable Account B
sub-accounts also reflects these outstanding investment returns. Please read the
attached sub-account managers' reports carefully, for a better appreciation of
how your mutual fund investment options performed in 1995, and their respective
outlooks for 1996.
As we look ahead, we do not expect to repeat the stellar results of 1995. But
neither do we anticipate a dramatic sell off or cause for a collapse of those
prior gains. Instead we anticipate a "normal" investment climate, with "normal"
levels of returns, and "normal" volatility in returns. As before, our conviction
is that a winning strategy must include a long term view, and a diversified
approach to asset classes and investment markets. Our commitment is to offer a
choice of excellent managers and excellent funds in a wide range of asset
classes.
In the years past we have focused on adding asset class and investment style
choices to your retirement annuity. In 1995 we added the following four new
selections:
<TABLE>
<CAPTION>
SUB-ACCOUNT ASSET CLASS/INVESTMENT STYLE
- -------------------------------- -----------------------------------------------
<S> <C>
Seligman-Henderson Small Cap International Equities (small capitalization)
T. Rowe Price Natural Resources "Hard Assets"
PIMCO Limited Bond Intermediate Bonds
Neuberger & Berman Partners Value Style Equities
</TABLE>
These new selections have proven to be very popular, and the new portfolios
raised over $120 million of new assets in 1995.
From time to time, it also makes good sense to cease offering a fund. In 1995
American Skandia closed and consolidated assets from certain fund options to
other sub-accounts with similar investment objectives. We anticipate that the
substitutions will tend to result in cost savings to contractholders through
economies of scale, reduced expenses, and more effective management.
As we look ahead to 1996, we are committed to continuing to enhance the wide
range of choice in excellent investment options, among diversified asset
classes.
Gordon C. Boronow
<PAGE> 3
<TABLE>
<S> <C>
CONTENTS
I. American Skandia Life Assurance Corporation
II. The Alger American Fund
III. Neuberger & Berman Advisors Management Trust
IV. American Skandia Trust
V. Alliance Variable Product Series Fund, Inc.
VI. Scudder Variable Life Investment Fund
</TABLE>
<PAGE> 4
INDEPENDENT AUDITORS' REPORT
- -------------------------------------
To the Contractowners of
American Skandia Life Assurance Corporation
Variable Account B -- Class 1 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
thirty-six 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 thirty-six 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
<PAGE> 5
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
STATEMENT OF ASSETS AND LIABILITIES
AS OF DECEMBER 31, 1995
- --------------------------------------------------------------------------------
ASSETS
<TABLE>
<S> <C>
Investment in mutual funds at market value (Note 2):
Neuberger & Berman Advisers Management Trust (NBAMT):
Partners Portfolio -- 7,246,795 shares (cost $94,406,337)............................................ $ 95,875,095
The Alger American Fund (AAF):
Small Capitalization Portfolio -- 12,431,757 shares (cost $425,171,946).............................. 489,935,545
Growth Portfolio -- 12,098,178 shares (cost $340,748,419)............................................ 376,979,213
MidCap Growth Portfolio -- 8,110,421 shares (cost $145,078,834)...................................... 157,666,592
American Skandia Trust (AST):
Seligman Henderson International Equity Portfolio -- 14,414,570 shares (cost $250,210,045)........... 262,345,168
Seligman Henderson International Small Cap Portfolio -- 2,577,080 shares (cost $26,530,685).......... 26,621,232
Lord Abbett Growth & Income Portfolio -- 18,709,902 shares (cost $248,303,566)....................... 280,274,338
JanCap Growth Portfolio -- 27,632,476 shares (cost $339,716,206)..................................... 425,540,125
Money Market Portfolio -- 329,302,918 shares (cost $329,302,918)..................................... 329,302,918
Federated Utility Income Portfolio -- 8,829,132 shares (cost $92,405,310)............................ 105,419,840
Federated High Yield Portfolio -- 6,993,674 shares (cost $73,148,181)................................ 77,909,526
Phoenix Balanced Asset Portfolio -- 20,105,268 shares (cost $223,510,209)............................ 251,919,007
T. Rowe Price Asset Allocation Portfolio -- 4,833,777 shares (cost $51,549,956)...................... 58,053,656
T. Rowe Price International Equity Portfolio -- 17,499,340 shares (cost $174,844,914)................ 186,367,971
T. Rowe Price Natural Resources Portfolio -- 801,084 shares (cost $8,489,765)........................ 8,900,048
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
Scudder International Bond Portfolio -- 4,149,601 shares (cost $41,572,957).......................... 43,985,774
Berger Capital Growth Portfolio -- 3,599,220 shares (cost $40,392,302)............................... 44,630,334
Alliance Variable Products Series Fund (AVP):
Short-Term Multi-Market Portfolio -- 26,007 shares (cost $270,114)................................... 275,157
Premier Growth Portfolio -- 233,058 shares (cost $4,149,149)......................................... 4,148,435
Growth & Income Portfolio -- 245,236 shares (cost $3,627,236)........................................ 3,872,270
U.S. Government/High Grade Securities Portfolio -- 198,300 shares (cost $2,182,677).................. 2,312,179
Total Return Portfolio -- 229,364 shares (cost $2,797,213)........................................... 2,935,856
International Portfolio -- 154,090 shares (cost $2,073,154).......................................... 2,168,046
Money Market Portfolio -- 2,462,495 shares (cost $2,462,495)......................................... 2,462,495
North American Government Income Portfolio -- 64,818 shares (cost $632,862).......................... 679,293
Global Dollar Government Portfolio -- 64,333 shares (cost $684,101).................................. 768,779
Utility Income Portfolio -- 63,379 shares (cost $731,109)............................................ 761,182
Global Bond Portfolio -- 18,287 shares (cost $213,442)............................................... 222,183
Conservative Investors Portfolio -- 70,037 shares (cost $784,447).................................... 823,640
Growth Investors Portfolio -- 70,441 shares (cost $789,256).......................................... 836,132
Growth Portfolio -- 234,593 shares (cost $3,231,310)................................................. 3,338,260
Worldwide Privatization Portfolio -- 82,182 shares (cost $902,581)................................... 917,969
--------------
Total Invested Assets........................................................................ 3,875,205,663
Receivable from American Skandia Life Assurance Corp......................................................... 8,845,314
Receivable from Neuberger & Berman Advisers Management Trust................................................. 147,532,530
Receivable from Alliance Variable Products Series Fund....................................................... 84,492,113
Receivable from Scudder Variable Life Investment Fund........................................................ 43,386,382
--------------
Total Assets................................................................................. $ 4,159,462,002
==============
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
2
<PAGE> 6
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
STATEMENT OF ASSETS AND LIABILITIES (CONCLUDED)
AS OF DECEMBER 31, 1995
- --------------------------------------------------------------------------------
LIABILITIES
<TABLE>
<S> <C>
Payable to Contractowners (Note 5)............................................................................. $ 776,737
Payable to American Skandia Trust.............................................................................. 260,041,990
Payable to The Alger American Fund............................................................................. 23,438,344
---------------
Total Liabilities.............................................................................. $ 284,257,071
---------------
</TABLE>
NET ASSETS
<TABLE>
<CAPTION>
UNIT
CONTRACTOWNERS' EQUITY UNITS VALUE
- ------------------------------------------------------------------------------------ ---------- ------
<S> <C> <C> <C>
NBAMT - Partners................................................................ 7,958,498 $12.05 $ 95,875,095
AAF - Small Capitalization...................................................... 12,317,364 39.78 489,935,545
AAF - Growth.................................................................... 12,092,291 31.18 376,979,213
AAF - MidCap Growth............................................................. 8,299,743 19.00 157,666,592
AST - Seligman Henderson International Equity................................... 14,393,137 18.23 262,345,168
AST - Seligman Henderson International Small Cap................................ 2,601,283 10.23 26,621,232
AST - Lord Abbett Growth & Income............................................... 18,411,759 15.22 280,274,338
AST - JanCap Growth............................................................. 28,662,737 14.85 425,540,124
AST - Money Market.............................................................. 30,564,442 10.77 329,302,918
AST - Federated Utility Income.................................................. 8,642,186 12.20 105,419,840
AST - Federated High Yield...................................................... 6,915,158 11.27 77,909,526
AST - Phoenix Balanced Asset.................................................... 20,163,848 12.49 251,919,007
AST - T. Rowe Price Asset Allocation............................................ 4,868,956 11.92 58,053,656
AST - T. Rowe Price International Equity........................................ 17,935,251 10.39 186,367,972
AST - T. Rowe Price Natural Resources........................................... 808,605 11.01 8,900,048
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 - Scudder International Bond................................................ 4,186,695 10.51 43,985,773
AST - Berger Capital Growth..................................................... 3,658,836 12.20 44,630,334
AVP - Short-Term Multi-Market................................................... 27,220 10.11 275,157
AVP - Premier Growth............................................................ 242,960 17.07 4,148,435
AVP - Growth & Income........................................................... 256,492 15.10 3,872,270
AVP - U.S. Government/High Grade Securities..................................... 196,478 11.77 2,312,090
AVP - Total Return.............................................................. 236,194 12.43 2,935,856
AVP - International............................................................. 159,749 13.57 2,167,965
AVP - Money Market.............................................................. 233,258 10.56 2,462,404
AVP - North American Government Income.......................................... 64,465 10.54 679,214
AVP - Global Dollar Government.................................................. 65,026 11.82 768,692
AVP - Utility Income............................................................ 64,410 11.82 761,094
AVP - Global Bond............................................................... 18,122 12.26 222,158
AVP - Conservative Investors.................................................... 70,909 11.61 823,545
AVP - Growth Investors.......................................................... 70,250 11.90 836,036
AVP - Growth.................................................................... 244,481 13.65 3,338,260
AVP - Worldwide Privatization................................................... 83,741 10.96 917,969
--------------
Total Net Assets.................................................... $ 3,875,204,931
==============
</TABLE>
- --------------------------------------------------------------------------------
3
<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:
-------------------------------------
NBAMT
TOTAL GROWTH
-------------- -----------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends........................................................................... $ 46,122,988 $ 128,840
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)................ (43,442,537) (972,137)
------------- -----------
NET INVESTMENT INCOME (LOSS)............................................................ 2,680,451 (843,297)
------------- -----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales................................................................... 1,945,092,584 96,804,895
Cost of Securities Sold............................................................... 1,779,409,969 83,561,353
------------- -----------
Net Gain (Loss)..................................................................... 165,682,615 13,243,542
Capital Gain Distributions Received................................................... 18,666,547 1,726,459
------------- -----------
NET REALIZED GAIN (LOSS)................................................................ 184,349,162 14,970,001
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period................................................................... (15,588,734) (3,347,126)
End of Period......................................................................... 367,501,352 0
------------- -----------
NET UNREALIZED GAIN (LOSS).............................................................. 383,090,086 3,347,126
------------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS......................... $ 570,119,699 $17,473,830
============= ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
4
<PAGE> 8
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- -----------------------------------------------------------------------------------------------------------
NBAMT
PARTNERS
NBAMT - LIMITED NBAMT (MAY 2* THRU AAF - INCOME AAF - SMALL
MATURITY BOND BALANCED DEC. 31, 1995) & GROWTH CAPITALIZATION AAF - GROWTH
--------------- ----------- -------------- ------------ -------------- ------------
<S> <C> <C> <C> <C> <C> <C>
$ 7,870,005 $ 1,120,253 $ 0 $ 317,267 $ 0 $ 428,668
(1,846,835) (923,613) (108,954) (477,778) (5,364,107) (3,047,035)
------------- ----------- ---------- ----------- ------------ -----------
6,023,170 196,640 (108,954) (160,511) (5,364,107) (2,618,367)
------------- ----------- ---------- ----------- ------------ -----------
187,379,011 75,500,885 16,809 44,996,471 223,476,728 86,281,204
184,158,573 63,871,923 14,688 37,483,781 178,750,614 71,397,776
------------- ----------- ---------- ----------- ------------ -----------
3,220,438 11,628,962 2,121 7,512,690 44,726,114 14,883,428
0 360,081 0 0 0 1,518,710
------------- ----------- ---------- ----------- ------------ -----------
3,220,438 11,989,043 2,121 7,512,690 44,726,114 16,402,138
(2,126,276) (526,315) 0 (2,132,292) (4,831) 752,833
0 0 1,468,758 0 64,763,599 36,230,794
------------- ----------- ---------- ----------- ------------ -----------
2,126,276 526,315 1,468,758 2,132,292 64,768,430 35,477,961
------------- ----------- ---------- ----------- ------------ -----------
$ 11,369,884 $12,711,998 $1,361,925 $ 9,484,471 $104,130,437 $49,261,732
============= =========== ========== =========== ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
5
<PAGE> 9
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
---------------------------------------
AAF AAF - MIDCAP
BALANCED GROWTH
----------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends...................................................................... $ 189,888 $ 9,721
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)........... (158,126) (1,461,227)
---------- -----------
NET INVESTMENT INCOME (LOSS)....................................................... 31,762 (1,451,506)
---------- -----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales.............................................................. 14,354,065 56,980,574
Cost of Securities Sold.......................................................... 12,015,109 41,258,899
---------- -----------
Net Gain (Loss)................................................................ 2,338,956 15,721,675
Capital Gain Distributions Received.............................................. 0 0
---------- -----------
NET REALIZED GAIN (LOSS)........................................................... 2,338,956 15,721,675
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period.............................................................. (151,154) 1,272,715
End of Period.................................................................... 0 12,587,758
---------- -----------
NET UNREALIZED GAIN (LOSS)......................................................... 151,154 11,315,043
---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 2,521,872 $25,585,212
========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
6
<PAGE> 10
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ---------------------------------------------------------------------------------------------
AST - SELIGMAN
AST - SELIGMAN HENDERSON INTL.
HENDERSON SMALL CAP AST - LORD
INTERNATIONAL (MAY 1* THRU ABBETT GROWTH AST - JANCAP AST - MONEY
EQUITY DEC. 31, 1995) & INCOME GROWTH MARKET
--------------- -------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
$ 0 $ 0 $ 1,657,847 $ 1,353,851 $17,436,063
(3,574,633) (103,431) (1,988,406) (4,808,745) (4,703,313)
----------- --------- ----------- ----------- -----------
(3,574,633) (103,431) (330,559) (3,454,894) 12,732,750
----------- --------- ----------- ----------- -----------
97,730,012 555,565 5,451,838 46,929,431 593,444,290
99,570,937 545,997 3,975,930 38,189,700 593,444,290
----------- --------- ----------- ----------- -----------
(1,840,925) 9,568 1,475,908 8,739,731 0
12,552,955 0 1,656,966 0 0
----------- --------- ----------- ----------- -----------
10,712,030 9,568 3,132,874 8,739,731 0
(1,373,923) 0 3,616,951 (1,818,595) 0
12,135,123 90,547 31,970,772 85,823,919 0
----------- --------- ----------- ----------- -----------
13,509,046 90,547 28,353,821 87,642,514 0
----------- --------- ----------- ----------- -----------
$20,646,443 $ (3,316) $31,156,136 $92,927,351 $12,732,750
=========== ========= =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
7
<PAGE> 11
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-----------------------------------------
AST - FEDERATED AST - FEDERATED
UTILITY INCOME HIGH YIELD
--------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends...................................................................... $ 3,329,756 $ 1,151,380
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)........... (1,267,374) (624,969)
----------- ----------
NET INVESTMENT INCOME (LOSS)....................................................... 2,062,382 526,411
----------- ----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales.............................................................. 25,840,566 19,362,068
Cost of Securities Sold.......................................................... 26,368,662 18,260,851
----------- ----------
Net Gain (Loss)................................................................ (528,096) 1,101,217
Capital Gain Distributions Received.............................................. 0 0
----------- ----------
NET REALIZED GAIN (LOSS)........................................................... (528,096) 1,101,217
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period.............................................................. (4,420,441) (122,643)
End of Period.................................................................... 13,014,530 4,761,345
----------- ----------
NET UNREALIZED GAIN (LOSS)......................................................... 17,434,971 4,883,988
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $18,969,257 $ 6,511,616
=========== ==========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
8
<PAGE> 12
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ---------------------------------------------------------------------------------------------------
AST - T. ROWE
PRICE NATURAL
AST - T. ROWE AST - T. ROWE RESOURCES
AST - PHOENIX AST - PHOENIX PRICE ASSET PRICE INTERNATIONAL (MAY 1* THRU
BALANCED ASSET CAPITAL GROWTH ALLOCATION EQUITY DEC. 31,1995)
-------------- -------------- ------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
$ 3,837,709 $ 114,096 $ 513,045 $ 118,043 $ 0
(2,304,796) (277,758) (524,866) (1,999,016) (32,224)
------------ ------------ ----------- ----------- ---------
1,532,913 (163,662) (11,821) (1,880,973) (32,224)
------------ ------------ ----------- ----------- ---------
15,559,398 26,338,238 2,153,350 24,433,812 843,892
14,270,634 21,513,203 2,071,289 24,264,691 819,107
------------ ------------ ----------- ----------- ---------
1,288,764 4,825,035 82,061 169,121 24,785
0 0 0 243,203 0
------------ ------------ ----------- ----------- ---------
1,288,764 4,825,035 82,061 412,324 24,785
1,048,462 (385,057) 61,399 (2,989,688) 0
28,408,798 0 6,503,700 11,523,057 410,283
------------ ------------ ----------- ----------- ---------
27,360,336 385,057 6,442,301 14,512,745 410,283
------------ ------------ ----------- ----------- ---------
$ 30,182,013 $ 5,046,430 $ 6,512,541 $13,044,096 $ 402,844
============ ============ =========== =========== =========
</TABLE>
- --------------------------------------------------------------------------------
9
<PAGE> 13
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
----------------------------------------
AST - FOUNDERS
CAPITAL AST - INVESCO
APPRECIATION EQUITY INCOME
-------------- ---------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends................................................................ $ 269,670 $ 1,036,385
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)..... (746,747) (1,556,324)
----------- -----------
NET INVESTMENT INCOME (LOSS)................................................. (477,077) (519,939)
----------- -----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales........................................................ 4,789,770 8,819,781
Cost of Securities Sold.................................................... 3,804,447 7,648,084
----------- -----------
Net Gain (Loss).......................................................... 985,323 1,171,697
Capital Gain Distributions Received........................................ 0 0
----------- -----------
NET REALIZED GAIN (LOSS)..................................................... 985,323 1,171,697
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period........................................................ 1,868,641 (891,893)
End of Period.............................................................. 13,278,444 24,373,614
----------- -----------
NET UNREALIZED GAIN (LOSS)................................................... 11,409,803 25,265,507
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.............. $ 11,918,049 $25,917,265
=========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
10
<PAGE> 14
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- -----------------------------------------------------------------------------------------------------------
AST - PIMCO
AST - PIMCO LIMITED MATURITY
TOTAL BOND AST - SCUDDER
RETURN MAY 1* THRU INTERNATIONAL AST - EAGLE AST - BERGER AVP - ST
BOND DEC. 31, 1995) BOND GROWTH EQUITY CAPITAL GROWTH MULTI-MKT
----------- ---------------- ------------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C>
$1,209,016 $ 0 $ 258,689 $ 10,277 $ 3,085 $ 0
(1,373,085) (196,743) (389,161) (82,250) (296,102) (190,048)
----------- ---------- ---------- ----------- ---------- -----------
(164,069) (196,743) (130,472) (71,973) (293,017) (190,048)
----------- ---------- ---------- ----------- ---------- -----------
35,874,313 2,464,086 2,659,942 10,011,246 3,814,017 20,714,250
32,426,533 2,389,194 2,644,496 8,811,830 3,370,323 21,802,895
----------- ---------- ---------- ----------- ---------- -----------
3,447,780 74,892 15,446 1,199,416 443,694 (1,088,645)
0 0 0 0 0 0
----------- ---------- ---------- ----------- ---------- -----------
3,447,780 74,892 15,446 1,199,416 443,694 (1,088,645)
(251,292) 0 (240,434) (50,341) 30,142 (1,772,660)
11,293,295 1,221,437 2,412,817 0 4,238,032 5,043
----------- ---------- ---------- ----------- ---------- -----------
11,544,587 1,221,437 2,653,251 50,341 4,207,890 1,777,703
----------- ---------- ---------- ----------- ---------- -----------
$14,828,298 $1,099,586 $ 2,538,225 $ 1,177,784 $4,358,567 $ 499,010
=========== ========== ========== =========== ========== ===========
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE> 15
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
STATEMENT OF OPERATIONS (CONT'D)
FOR THE PERIODS ENDED DECEMBER 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
--------------------------------------
AVP - PREMIER AVP - GROWTH
GROWTH & INCOME
------------- ------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends....................................................................... $ 84,207 $ 355,890
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)............ (670,405) (538,256)
----------- -----------
NET INVESTMENT INCOME (LOSS)........................................................ (586,198) (182,366)
----------- -----------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales............................................................... 67,672,027 44,126,083
Cost of Securities Sold........................................................... 50,476,857 33,765,695
----------- -----------
Net Gain (Loss)................................................................. 17,195,170 10,360,388
Capital Gain Distributions Received............................................... 236,427 369,371
----------- -----------
NET REALIZED GAIN (LOSS)............................................................ 17,431,597 10,729,759
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period............................................................... 160,860 138,583
End of Period..................................................................... (714) 245,034
----------- -----------
NET UNREALIZED GAIN (LOSS).......................................................... (161,574) 106,451
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................... $16,683,825 $10,653,844
=========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
12
<PAGE> 16
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ---------------------------------------------------------------------------------------------------------
AVP - U.S. GOV'T/ AVP - NORTH AVP - GLOBAL
HIGH GRADE AVP - TOTAL AVP AVP - MONEY AMERICAN DOLLAR
SECURITIES RETURN INTERNATIONAL MARKET GOV'T INCOME GOV'T INCOME
----------------- ----------- ------------- ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
$ 13,275 $ 1,685 $ 1,911 $ 39,444 $ 7,097 $ 5,552
(16,867) (10,334) (14,798) (11,497) (5,142) (7,509)
-------- -------- -------- --------- -------- --------
(3,592) (8,649) (12,887) 27,947 1,955 (1,957)
-------- -------- -------- --------- -------- --------
622,623 18,289 270,873 1,483,317 631,965 198,106
598,438 16,836 231,612 1,483,317 623,081 184,232
-------- -------- -------- --------- -------- --------
24,185 1,453 39,261 0 8,884 13,874
0 0 2,375 0 0 0
-------- -------- -------- --------- -------- --------
24,185 1,453 41,636 0 8,884 13,874
(28,921) (6,986) 16,417 0 (14,058) (11,116)
129,502 138,643 94,892 0 46,431 84,678
-------- -------- -------- --------- -------- --------
158,423 145,629 78,475 0 60,489 95,794
-------- -------- -------- --------- -------- --------
$ 179,016 $ 138,433 $ 107,224 $ 27,947 $ 71,328 $107,711
======== ======== ======== ========= ======== ========
</TABLE>
- --------------------------------------------------------------------------------
13
<PAGE> 17
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:
----------------------------------------
AVP - GLOBAL
BOND
AVP - UTILITY (APR. 18* THRU
INCOME DEC. 31, 1995)
------------- --------------
<S> <C> <C>
INVESTMENT INCOME:
Income
Dividends....................................................................... $ 844 $ 355
Expenses
Mortality and Expense Risks Charges and Administrative Fees (Note 4)............ (2,694) (990)
------- -------
NET INVESTMENT INCOME (LOSS)........................................................ (1,850) (635)
------- -------
REALIZED GAIN (LOSS) ON INVESTMENTS:
Proceeds from Sales............................................................... 26,551 58,944
Cost of Securities Sold........................................................... 22,837 56,154
------- -------
Net Gain (Loss)................................................................. 3,714 2,790
Capital Gain Distributions Received............................................... 0 0
------- -------
NET REALIZED GAIN (LOSS)............................................................ 3,714 2,790
UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Beginning of Period............................................................... (299) 0
End of Period..................................................................... 30,073 8,741
------- -------
NET UNREALIZED GAIN (LOSS).......................................................... 30,372 8,741
------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS..................... $32,236 $ 10,896
======= =======
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
14
<PAGE> 18
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- --------------------------------------------------------------------------------------------
AVP
CONSERVATIVE AVP - GROWTH AVP AVP - WORLDWIDE
INVESTORS INVESTORS GROWTH PRIVATIZATION
(MAY, 29* THRU (MAY, 23* THRU (FEB. 11* THRU (APR. 3* THRU
DEC. 31, 1995) DEC. 31, 1995) DEC. 31, 1995) DEC. 31, 1995) SVL - BOND
-------------- -------------- -------------- --------------- -----------
<S> <C> <C> <C> <C> <C>
$ 140 $ 69 $ 123 $ 808 $3,248,034
(3,457) (3,795) (10,753) (4,692) (741,545)
------- ------- -------- ------- ----------
(3,317) (3,726) (10,630) (3,884) 2,506,489
------- ------- -------- ------- ----------
16,694 10,477 127,135 17,727 96,231,266
16,241 9,851 109,674 16,531 93,092,804
------- ------- -------- ------- ----------
453 626 17,461 1,196 3,138,462
0 0 0 0 0
------- ------- -------- ------- ----------
453 626 17,461 1,196 3,138,462
0 0 0 0 (1,889,396)
39,193 46,876 106,950 15,388 0
------- ------- -------- ------- ----------
39,193 46,876 106,950 15,388 1,889,396
------- ------- -------- ------- ----------
$ 36,329 $ 43,776 $113,781 $12,700 $7,534,347
======= ======= ======== ======= ==========
</TABLE>
- --------------------------------------------------------------------------------
15
<PAGE> 19
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
----------------------------------------------------------------------------
NBAMT
TOTAL LIQUID ASSET
----------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
-------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................... $ 2,680,451 $ (2,304,906) $ 0 $ 43
Net Realized Gain (Loss)....................... 184,349,162 56,558,361 0 0
Net Unrealized Gain (Loss) On Investments...... 383,090,086 (101,980,777) 0 0
-------------- -------------- -- --------
Net Increase (Decrease) In Net Assets Resulting
From Operations.............................. 570,119,699 (47,727,322) 0 43
-------------- -------------- -- --------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits............. 1,266,602,756 1,136,301,461 0 (18,000)
Net Transfers Between Sub-accounts............. 1,911,277 891,130 0 18,533
Surrenders..................................... (226,498,569) (116,753,024) 0 (576)
-------------- -------------- -- --------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions.............. 1,042,015,464 1,020,439,567 0 (43)
-------------- -------------- -- --------
TOTAL INCREASE (DECREASE) IN NET ASSETS............ 1,612,135,163 972,712,245 0 0
NET ASSETS:
Beginning of Period............................ 2,263,069,768 1,290,357,523 0 0
-------------- -------------- -- --------
End of Period.................................. $3,875,204,931 $2,263,069,768 $ 0 $ 0
============== ============== == ========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
16
<PAGE> 20
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- -----------------------------------------------------------------------------------------------------------------------------
NBAMT NBAMT NBAMT NBAMT
GROWTH LIMITED MATURITY BOND BALANCED PARTNERS
------------------------------- ------------------------------- ------------------------------- -----------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED MAY 2* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (843,297) $ (423,242) $ 6,023,170 $ 3,517,651 $ 196,640 $ 5,270 $ (108,954)
14,970,001 2,596,283 3,220,438 (834,778) 11,989,043 1,676,917 2,121
3,347,126 (5,585,664) 2,126,276 (5,190,015) 526,315 (4,487,304) 1,468,758
------------ ----------- ------------- ------------ ------------ ----------- -----------
17,473,830 (3,412,623) 11,369,884 (2,507,142) 12,711,998 (2,805,117) 1,361,925
------------ ----------- ------------- ------------ ------------ ----------- -----------
8,373,298 13,584,312 20,053,844 86,631,572 4,424,442 13,564,002 13,540,471
(66,839,025) (4,839,790) (168,830,787) (73,112,599) (72,086,096) (4,728,960) 81,177,931
(4,487,389) (2,249,171) (10,634,962) (12,305,221) (4,025,298) (3,741,693) (205,232)
------------ ----------- ------------- ------------ ------------ ----------- -----------
(62,953,116) 6,495,351 (159,411,905) 1,213,752 (71,686,952) 5,093,349 94,513,170
------------ ----------- ------------- ------------ ------------ ----------- -----------
(45,479,286) 3,082,728 (148,042,021) (1,293,390) (58,974,954) 2,288,232 95,875,095
45,479,286 42,396,558 148,042,021 149,335,411 58,974,954 56,686,722 0
------------ ----------- ------------- ------------ ----------- ----------- -----------
$ 0 $45,479,286 $ 0 $148,042,021 $ 0 $58,974,954 $95,875,095
============ =========== ============= ============ ============ =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
17
<PAGE> 21
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:
----------------------------------------------------------------
AAF AAF
MONEY MARKET INCOME & GROWTH
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)............................... $ 0 $ 0 $ (160,511) $ (129,539)
Net Realized Gain (Loss)................................... 0 0 7,512,690 728,190
Net Unrealized Gain (Loss) On Investments.................. 0 0 2,132,292 (3,804,217)
------- ------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting From
Operations............................................... 0 0 9,484,471 (3,205,566)
------- ------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits......................... 0 0 2,395,584 6,717,881
Net Transfers Between Sub-accounts......................... 0 6 (36,041,302) (5,864,504)
Surrenders................................................. 0 (6) (2,306,979) (1,408,813)
------- ------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting From
Capital Share Transactions............................... 0 0 (35,952,697) (555,436)
------- ------- ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS........................ 0 0 (26,468,226) (3,761,002)
NET ASSETS:
Beginning of Period........................................ 0 0 26,468,226 30,229,228
------- ------- ------------ -----------
End of Period.............................................. $ 0 $ 0 $ 0 $26,468,226
======= ======= ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
18
<PAGE> 22
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- --------------------------------------------------------------------------------------------------------------------------
AAF AAF AAF AAF - MIDCAP
SMALL CAPITALIZATION GROWTH BALANCED GROWTH
------------------------------ ------------------------------ ------------------------------ -------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (5,364,107) $ (2,975,134) $ (2,618,367) $ (1,233,213) $ 31,762 $ (24,468) $ (1,451,506)
44,726,114 23,713,018 16,402,138 10,000,487 2,338,956 217,335 15,721,675
64,768,430 (30,043,148) 35,477,961 (8,447,531) 151,154 (681,436) 11,315,043
------------ ------------ ------------ ------------ ------------ ---------- ------------
104,130,437 (9,305,264) 49,261,732 319,743 2,521,872 (488,569) 25,585,212
------------ ------------ ------------ ------------ ------------ ---------- ------------
91,163,620 56,318,695 84,767,383 38,904,547 1,245,151 3,376,270 46,811,319
53,259,614 11,288,463 124,403,420 25,731,026 (12,198,567) (423,424) 33,476,913
(20,174,473) (7,290,412) (11,629,945) (4,253,228) (786,282) (669,880) (5,669,035)
------------ ------------ ------------ ------------ ------------ ---------- ------------
124,248,761 60,316,746 197,540,858 60,382,345 (11,739,698) 2,282,966 74,619,197
------------ ------------ ------------ ------------ ------------ ---------- ------------
228,379,198 51,011,482 246,802,590 60,702,088 (9,217,826) 1,794,397 100,204,409
261,556,347 210,544,865 130,176,623 69,474,535 9,217,826 7,423,429 57,462,183
------------ ------------ ------------ ------------ ------------ ---------- ------------
$489,935,545 $261,556,347 $376,979,213 $130,176,623 $ 0 $ 9,217,826 $157,666,592
============ ============ ============ ============ ============ ========== ============
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------
AAF - MIDCAP
GROWTH
---------------
YEAR ENDED
DEC. 31, 1994
---------------
<S> <C>
$ (536,764)
745,455
(321,790)
-----------
(113,099)
-----------
21,760,961
17,658,989
(1,777,070)
-----------
37,642,880
-----------
37,529,781
19,932,402
-----------
$57,462,183
===========
</TABLE>
- --------------------------------------------------------------------------------
19
<PAGE> 23
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:
------------------------------------------------------------------------------------
AST - SELIGMAN AST - SELIGMAN AST
HENDERSON HENDERSON LORD ABBETT
INTERNATIONAL EQUITY INTL. SMALL CAP GROWTH & INCOME
----------------------------- ---------------- -----------------------------
YEAR ENDED YEAR ENDED MAY 1* THRU YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)........... $ (3,574,633) $ (2,748,650) $ (103,431) $ (330,559) $ (440,246)
Net Realized Gain (Loss)............... 10,712,030 17,640,678 9,568 3,132,874 1,138,699
Net Unrealized Gain (Loss) On
Investments.......................... 13,509,046 (17,148,069) 90,547 28,353,821 (91,936)
------------ ----------- ------------ ------------ -----------
Net Increase (Decrease) In Net Assets
Resulting From Operations............ 20,646,443 (2,256,041) (3,316) 31,156,136 606,517
------------ ----------- ------------ ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits..... 45,096,265 87,148,737 12,245,099 56,242,569 34,884,203
Net Transfers Between Sub-accounts..... (24,213,795) 10,704,208 14,656,915 112,141,060 9,678,044
Surrenders............................. (15,178,799) (10,097,051) (277,466) (8,837,542) (3,815,649)
------------ ----------- ------------ ------------ -----------
Net Increase (Decrease) In Net Assets
Resulting From Capital Share
Transactions......................... 5,703,671 87,755,894 26,624,548 159,546,087 40,746,598
------------ ----------- ------------ ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS.... 26,350,114 85,499,853 26,621,232 190,702,223 41,353,115
NET ASSETS:
Beginning of Period.................... 235,995,054 150,495,201 0 89,572,115 48,219,000
------------ ----------- ------------ ------------ -----------
End of Period.......................... $262,345,168 $235,995,054 $ 26,621,232 $280,274,338 $89,572,115
============ =========== ============ ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
20
<PAGE> 24
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
----------------------------------------------------------------------------------------------------------------------
AST -
AST AST AST - FEDERATED FEDERATED
JANCAP GROWTH MONEY MARKET UTILITY INCOME HIGH YIELD
------------------------------ ------------------------------ ------------------------------ -------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (3,454,894) $ (2,491,101) $ 12,732,750 $ 5,946,221 $ 2,062,382 $ (73,541) $ 526,411
8,739,731 1,587,144 0 19,022 (528,096) (192,841) 1,101,217
87,642,514 (11,094,994) 0 0 17,434,971 (5,216,614) 4,883,988
------------ ----------- ------------ ------------ ------------ ------------ -----------
92,927,351 (11,998,951) 12,732,750 5,965,243 18,969,257 (5,482,996) 6,511,616
------------ ----------- ------------ ------------ ------------ ------------ -----------
88,067,295 89,693,814 369,971,905 320,036,373 16,083,128 28,831,445 31,799,099
15,929,654 16,413,857 (269,382,453) (120,635,658) 6,339,985 (6,473,719) 21,528,708
(15,318,172) (7,841,867) (68,678,873) (36,308,163) (6,365,421) (4,108,447) (2,061,195)
------------ ----------- ------------ ------------ ------------ ------------ -----------
88,678,777 98,265,804 31,910,579 163,092,552 16,057,692 18,249,279 51,266,612
------------ ----------- ------------ ------------ ------------ ------------ -----------
181,606,128 86,266,853 44,643,329 169,057,795 35,026,949 12,766,283 57,778,228
243,933,996 157,667,143 284,659,589 115,601,794 70,392,891 57,626,608 20,131,298
------------ ----------- ------------ ------------ ------------ ------------ -----------
$425,540,124 $243,933,996 $ 329,302,918 $ 284,659,589 $105,419,840 $70,392,891 $77,909,526
============ =========== ============ ============ ============ ============ ===========
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------
AST -
FEDERATED
HIGH YIELD
-------------
JAN 4* THRU
DEC. 31, 1994
-------------
<S> <C>
$ (182,878)
(198,100)
(122,643)
-----------
(503,621)
-----------
11,382,228
10,453,765
(1,201,074)
-----------
20,634,919
-----------
20,131,298
0
-----------
$20,131,298
===========
</TABLE>
- --------------------------------------------------------------------------------
21
<PAGE> 25
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:
-----------------------------------------------------------------------
AST - PHOENIX AST - PHOENIX
BALANCED ASSET CAPITAL GROWTH
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JAN. 4* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)........................ $ 1,532,913 $ (1,086,844) $ (163,662) $ (110,386)
Net Realized Gain (Loss)............................ 1,288,764 507,844 4,825,035 (63,342)
Net Unrealized Gain (Loss) On Investments........... 27,360,336 (907,982) 385,057 (385,057)
------------ ----------- ----------- -----------
Net Increase (Decrease) In Net Assets Resulting From
Operations........................................ 30,182,013 (1,486,982) 5,046,430 (558,785)
------------ ----------- ----------- -----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits.................. 24,218,451 60,895,715 4,086,095 10,939,730
Net Transfers Between Sub-accounts.................. 67,053,988 (843,326) (22,578,278) 4,540,747
Surrenders.......................................... (14,088,834) (5,573,851) (1,178,893) (297,046)
------------ ----------- ----------- -----------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions................... 77,183,605 54,478,538 (19,671,076) 15,183,431
------------ ----------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS................. 107,365,618 52,991,556 (14,624,646) 14,624,646
NET ASSETS:
Beginning of Period................................. 144,553,389 91,561,833 14,624,646 0
------------ ----------- ----------- -----------
End of Period....................................... $251,919,007 $144,553,389 $ 0 $14,624,646
============ =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
22
<PAGE> 26
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------------------------------------------------------
AST - T. ROWE
AST - T. ROWE PRICE AST - T. ROWE PRICE PRICE NATURAL AST - FOUNDERS CAPITAL
ASSET ALLOCATION INTERNATIONAL EQUITY RESOURCES APPRECIATION
------------------------------- ------------------------------- ------------- -------------------------------
YEAR ENDED JAN. 3* THRU YEAR ENDED JAN. 3* THRU MAY 1* THRU YEAR ENDED JAN. 5* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (11,821) $ (182,803) $ (1,880,973) $ (841,016) $ (32,224) $ (477,077) $ (153,802)
82,061 (14,957) 412,324 (206,344) 24,785 985,323 66,235
6,442,301 61,399 14,512,745 (2,989,688) 410,283 11,409,803 1,868,641
------------ ------------ ------------ ----------- ----------- ----------- -----------
6,512,541 (136,361) 13,044,096 (4,037,048) 402,844 11,918,049 1,781,074
------------ ------------ ------------ ----------- ----------- ----------- -----------
19,704,164 17,100,763 53,649,285 65,204,510 3,205,819 29,337,377 14,103,413
10,966,060 6,612,892 18,923,032 46,877,402 5,391,744 17,878,947 11,996,947
(1,870,265) (836,138) (5,180,566) (2,112,739) (100,359) (1,763,301) (354,876)
------------ ------------ ------------ ----------- ----------- ----------- -----------
28,799,959 22,877,517 67,391,751 109,969,173 8,497,204 45,453,023 25,745,484
------------ ------------ ------------ ----------- ----------- ----------- -----------
35,312,500 22,741,156 80,435,847 105,932,125 8,900,048 57,371,072 27,526,558
22,741,156 0 105,932,125 0 0 27,526,558 0
------------ ------------ ------------ ----------- ----------- ----------- -----------
$58,053,656 $22,741,156 $186,367,972 $105,932,125 $ 8,900,048 $84,897,630 $27,526,558
============ ============ ============ =========== =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
23
<PAGE> 27
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:
---------------------------------------------------------------------------
AST - INVESCO AST - PIMCO
EQUITY INCOME TOTAL RETURN BOND
------------------------------- -------------------------------
YEAR ENDED JAN. 3* THRU YEAR ENDED JAN. 3* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss).................... $ (519,939) $ (428,257) $ (164,069) $ (299,678)
Net Realized Gain (Loss)........................ 1,171,697 (1,642) 3,447,780 (39,295)
Net Unrealized Gain (Loss) On Investments....... 25,265,507 (891,893) 11,544,587 (251,292)
------------ ----------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting
From Operations............................... 25,917,265 (1,321,792) 14,828,298 (590,265)
------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits.............. 52,541,497 48,411,425 72,691,543 32,923,290
Net Transfers Between Sub-accounts.............. 33,377,835 18,185,796 87,302,875 13,167,453
Surrenders...................................... (4,408,157) (1,498,702) (4,178,333) (1,487,781)
------------ ----------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting
From Capital Share Transactions............... 81,511,175 65,098,519 155,816,085 44,602,962
------------ ----------- ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS............. 107,428,440 63,776,727 170,644,383 44,012,697
NET ASSETS:
Beginning of Period............................. 63,776,727 0 44,012,697 0
------------ ----------- ------------ -----------
End of Period................................... $171,205,167 $63,776,727 $214,657,080 $44,012,697
============ =========== ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
24
<PAGE> 28
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
----------------------------------------------------------------------------------------------------------------------------
AST - PIMCO
LIMITED MATURITY AST - SCUDDER AST - EAGLE AST - BERGER
BOND INTERNATIONAL BOND GROWTH EQUITY CAPITAL GROWTH
--------------- ------------------------------- ------------------------------- -------------------------------
MAY 1* THRU YEAR ENDED MAY 2* THRU YEAR ENDED MAY 3* THRU YEAR ENDED OCT. 19* THRU
DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
---------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (196,743) $ (130,472) $ (85,300) $ (71,973) $ (18,282) $ (293,017) $ (3,225)
74,892 15,446 (14,892) 1,199,416 (3,648) 443,694 (1,238)
1,221,437 2,653,251 (240,434) 50,341 (50,341) 4,207,890 30,142
------------ ----------- ----------- ----------- ----------- ----------- -----------
1,099,586 2,538,225 (340,626) 1,177,784 (72,271) 4,358,567 25,679
------------ ----------- ----------- ----------- ----------- ----------- -----------
28,824,536 16,066,780 6,840,456 1,385,295 2,083,418 24,892,130 1,213,330
127,366,630 11,730,170 8,878,060 (5,725,108) 1,482,143 12,962,168 1,759,059
(1,093,224) (1,332,313) (394,979) (301,065) (30,196) (577,822) (2,777)
------------ ----------- ----------- ----------- ----------- ----------- -----------
155,097,942 26,464,637 15,323,537 (4,640,878) 3,535,365 37,276,476 2,969,612
------------ ----------- ----------- ----------- ----------- ----------- -----------
156,197,528 29,002,862 14,982,911 (3,463,094) 3,463,094 41,635,043 2,995,291
0 14,982,911 0 3,463,094 0 2,995,291 0
------------ ----------- ----------- ----------- ----------- ----------- -----------
$156,197,528 $43,985,773 $14,982,911 $ 0 $ 3,463,094 $44,630,334 $ 2,995,291
============ =========== =========== =========== =========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
25
<PAGE> 29
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:
-------------------------------------------------------------------
AVP AVP
ST MULTI-MKT PREMIER GROWTH
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)............................ $ (190,048) $ 603,557 $ (586,198) $ (277,768)
Net Realized Gain (Loss)................................ (1,088,645) (295,311) 17,431,597 328,106
Net Unrealized Gain (Loss) On Investments............... 1,777,703 (1,931,642) (161,574) (1,025,385)
------------ ----------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting From
Operations............................................ 499,010 (1,623,396) 16,683,825 (975,047)
------------ ----------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits...................... 2,647,063 12,466,700 10,108,774 15,122,332
Net Transfers Between Sub-accounts...................... (18,752,062) (12,047,999) (50,998,389) 7,312,981
Surrenders.............................................. (1,783,708) (1,584,844) (5,148,313) (981,711)
------------ ----------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting From
Capital Share Transactions............................ (17,888,707) (1,166,143) (46,037,928) 21,453,602
------------ ----------- ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... (17,389,697) (2,789,539) (29,354,103) 20,478,555
NET ASSETS:
Beginning of Period..................................... 17,664,854 20,454,393 33,502,538 13,023,983
------------ ----------- ------------ -----------
End of Period........................................... $ 275,157 $ 17,664,854 $ 4,148,435 $33,502,538
============ =========== ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
26
<PAGE> 30
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- -----------------------------------------------------------------------------------------------------------------------
AVP
AVP U.S. GOV'T/ AVP AVP
GROWTH & INCOME HIGH GRADE SECURITIES TOTAL RETURN INTERNATIONAL
----------------------------- ----------------------------- ----------------------------- -------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (182,366) $ 206,111 $ (3,592) $ 14,309 $ (8,649) $ 1,012 $ (12,887)
10,729,759 442,931 24,185 (1,423) 1,453 4,982 41,636
106,451 (1,194,217) 158,423 (54,167) 145,629 (23,507) 78,475
------------ ----------- ----------- --------- ----------- --------- -----------
10,653,844 (545,175) 179,016 (41,281) 138,433 (17,513) 107,224
------------ ----------- ----------- --------- ----------- --------- -----------
6,610,412 12,983,481 2,219,428 96,937 2,428,200 58,897 1,519,067
(40,950,663) 65,363 (445,353) (377,349) 167,151 (181,111) (164,092)
(2,353,444) (1,325,144) (179,310) (3,428) (8,142) (9,962) (34,528)
------------ ----------- ----------- --------- ----------- --------- -----------
(36,693,695) 11,723,700 1,594,765 (283,840) 2,587,209 (132,176) 1,320,447
------------ ----------- ----------- --------- ----------- --------- -----------
(26,039,851) 11,178,525 1,773,781 (325,121) 2,725,642 (149,689) 1,427,671
29,912,121 18,733,596 538,309 863,430 210,214 359,903 740,294
------------ ----------- ----------- --------- ----------- --------- -----------
$ 3,872,270 $29,912,121 $ 2,312,090 $ 538,309 $ 2,935,856 $ 210,214 $ 2,167,965
============ =========== =========== ========= =========== ========= ===========
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------
AVP
INTERNATIONAL
-------------
YEAR ENDED
DEC. 31, 1994
-------------
<S> <C>
$ (4,528)
4,971
(7,326)
---------
(6,883)
---------
80,370
463,342
(23,253)
---------
520,459
---------
513,576
226,718
---------
$ 740,294
=========
</TABLE>
- --------------------------------------------------------------------------------
27
<PAGE> 31
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:
--------------------------------------------------------------------
AVP AVP-NORTH AMERICAN
MONEY MARKET GOV'T INCOME
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JUL. 6* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)........................... $ 27,947 $ 1,531 $ 1,955 $ (2,351)
Net Realized Gain (Loss)............................... 0 0 8,884 (37,128)
Net Unrealized Gain (Loss) On Investments.............. 0 0 60,489 (14,058)
----------- --------- --------- ---------
Net Increase (Decrease) In Net Assets Resulting
From Operations...................................... 27,947 1,531 71,328 (53,537)
----------- --------- --------- ---------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits..................... 3,645,001 101,867 571,089 138,821
Net Transfers Between Sub-accounts..................... (1,341,382) 310,357 172,862 24,856
Surrenders............................................. (218,733) (64,184) (236,568) (9,637)
----------- --------- --------- ---------
Net Increase (Decrease) In Net Assets Resulting From
Capital Share Transactions........................... 2,084,886 348,040 507,383 154,040
----------- --------- --------- ---------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................... 2,112,833 349,571 578,711 100,503
NET ASSETS:
Beginning of Period.................................... 349,571 0 100,503 0
----------- --------- --------- ---------
End of Period.......................................... $ 2,462,404 $ 349,571 $ 679,214 $ 100,503
=========== ========= ========= =========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
28
<PAGE> 32
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ---------------------------------------------------------------------------------------------------------------------------
AVP
AVP - GLOBAL DOLLAR AVP - UTILITY AVP - GLOBAL CONSERVATIVE AVP - GROWTH
GOV'T INCOME INCOME BOND INVESTORS INVESTORS
------------------------------- ------------------------------- ------------ ------------- -------------
YEAR ENDED JUL. 6* THRU YEAR ENDED AUG. 29* THRU APR. 18* THRU MAY 29* THRU MAY 23* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1995
------------- ------------- ------------- ------------- ------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
$ (1,957) $ (2,425) $ (1,850) $ (42) $ (635) $ (3,317) $ (3,726)
13,874 126 3,714 0 2,790 453 626
95,794 (11,116) 30,372 (299) 8,741 39,193 46,876
--------- --------- --------- ------- --------- -------- --------
107,711 (13,415) 32,236 (341) 10,896 36,329 43,776
--------- --------- --------- ------- --------- -------- --------
431,237 129,166 729,387 13,739 253,264 794,514 793,019
(160,893) 305,882 (10,329) 5,970 (41,055) (5,538) 2,960
(21,497) (9,499) (9,568) 0 (947) (1,760) (3,719)
--------- --------- --------- ------- --------- -------- --------
248,847 425,549 709,490 19,709 211,262 787,216 792,260
--------- --------- --------- ------- --------- -------- --------
356,558 412,134 741,726 19,368 222,158 823,545 836,036
412,134 0 19,368 0 0 0 0
--------- --------- --------- ------- --------- -------- --------
$ 768,692 $ 412,134 $ 761,094 $19,368 $ 222,158 $823,545 $836,036
========= ========= ========= ======= ========= ======== ========
</TABLE>
- --------------------------------------------------------------------------------
29
<PAGE> 33
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:
---------------------------------------------------------------
AVP AVP - WORLDWIDE SVL
GROWTH PRIVATIZATION BOND
------------ --------------- -----------------------------
FEB. 11* THRU APR. 3* THRU YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994
------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net Investment Income (Loss)................................ $ (10,630) $ (3,884) $ 2,506,489 $ 2,154,872
Net Realized Gain (Loss).................................... 17,461 1,196 3,138,462 (2,955,123)
Net Unrealized Gain (Loss) On Investments................... 106,950 15,388 1,889,396 (1,727,194)
------------ --------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting From
Operations................................................ 113,781 12,700 7,534,347 (2,527,445)
------------ --------- ------------ -----------
CAPITAL SHARE TRANSACTIONS:
Transfers of Annuity Fund Deposits.......................... 2,566,865 672,906 7,729,086 22,576,061
Net Transfers Between Sub-accounts.......................... 674,694 236,237 (64,445,109) 6,483,428
Surrenders.................................................. (17,080) (3,874) (3,767,183) (3,083,956)
------------ --------- ------------ -----------
Net Increase (Decrease) In Net Assets Resulting From
Capital Share Transactions................................ 3,224,479 905,269 (60,483,206) 25,975,533
------------ --------- ------------ -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS......................... 3,338,260 917,969 (52,948,859) 23,448,088
NET ASSETS:
Beginning of Period......................................... 0 0 52,948,859 29,500,771
------------ --------- ------------ -----------
End of Period............................................... $ 3,338,260 $ 917,969 $ 0 $52,948,859
============== ============== ============ ===========
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
*Date Operations Commenced.
30
<PAGE> 34
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
NOTES TO
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 thirty-six sub-accounts offered in the LifeVest
Personal Security Annuity, the American Skandia Advisors Plan Annuity, the
American Skandia Advisors Plan II Annuity, the Imperium Annuity and The Alliance
Capital Navigator Annuity. Each of the thirty-six sub-accounts invests only in a
single corresponding portfolio of either the Neuberger and Berman Advisers
Management Trust, The Alger American Fund, the American Skandia Trust, or the
Alliance Variable Products Series Fund, Inc. (the "Trusts"). Neuberger and
Berman Management, Inc. is the advisor for the Neuberger and Berman Advisers
Management Trust. Fred Alger Management, Inc. is the advisor for The Alger
American Fund. American Skandia Investment Services, Incorporated is the
investment manager for American Skandia Trust, while Seligman Henderson Co.,
Lord Abbett & Co., Janus Capital Corporation, J. P. Morgan Investment Management
Incorporated, Federated Investment Counseling, Phoenix Investment Counsel, Inc.,
T. Rowe Price Associates, Inc., Rowe Price-Fleming International, Inc., Founders
Asset Management, Inc., INVESCO Trust Company, Pacific Investment Management
Company, Scudder, Stevens & Clark, Inc. and Berger Associates, Inc. are the sub-
advisors. Alliance Capital Management L.P. is the advisor for the Alliance
Variable Products Series Fund, Inc. The investment advisors are paid fees for
their services by the respective Trusts.
The following nine sub-accounts have commenced operations during 1995: the
NBAMT-Partners on May 2, 1995; the AST-Seligman Henderson International Small
Cap on May 1, 1995; the AST-T. Rowe Price Natural Resources on May 1, 1995; the
AST-PIMCO Limited Maturity Bond on May 1, 1995; the AVP-Global Bond on April 18,
1995; the AVP-Conservative Investors on May 29, 1995; the AVP-Growth Investors
on May 23, 1995; the AVP-Growth on February 11, 1995 and the AVP-Worldwide
Privatization on April 3, 1995.
Effective May 1, 1995 the AST-Seligman Henderson International Equity
sub-account changed its name from Henderson International Growth.
The following eight sub-accounts ceased operations on December 29, 1995: the
NBAMT-Growth; the NBAMT-Limited Maturity Bond; the NBAMT-Balanced; the
AAF-Income & Growth; the AAF-Balanced; the AST-Phoenix Capital Growth; the
AST-Eagle Growth Equity and the SVL-Bond.
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
31
<PAGE> 35
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
NOTES TO
FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
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 LifeVest
Personal Security Annuity, the American Skandia Advisors Plan Annuity, the
American Skandia Advisors Plan II Annuity, the Imperium Annuity or The
Alliance Capital Navigator Annuity. 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.
5. PAYABLE TO CONTRACTOWNERS
Under the exchange program, new contractowners are eligible to receive an
"Exchange Credit" for the surrender charge paid to surrender exchange
contracts, with specific limitations. This Exchange Credit is converted to
units on behalf of the contractowner 30 days following issuance of the contract
pursuant to the exchange program.
The balance of the Exchange Credit for contracts within their first thirty days
is equal to $776,737 as of December 31, 1995.
32
<PAGE> 36
[THIS PAGE INTENTIONALLY LEFT BLANK]
33
<PAGE> 37
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
NOTES TO
FINANCIAL STATEMENTS (CONT'D)
- --------------------------------------------------------------------------------
6. CHANGES IN THE UNITS OUTSTANDING
<TABLE>
<CAPTION>
-------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------
NBAMT - LIMITED
NBAMT - GROWTH MATURITY BOND
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................... 2,734,835 2,388,450 10,689,462 10,615,851
Units Purchased............................................. 448,525 792,315 1,396,229 6,223,007
Units Transferred Between Sub-accounts...................... (2,956,438) (310,529) (11,348,447) (5,248,072)
Units Surrendered........................................... (226,922) (135,401) (737,244) (901,324)
---------- --------- ----------- ----------
Units Outstanding End of the Period......................... 0 2,734,835 0 10,689,462
========== ========= =========== ==========
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------
AAF
AAF - BALANCED MIDCAP GROWTH
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................... 768,128 583,925 4,308,374 1,450,892
Units Purchased............................................. 94,924 276,819 2,610,647 1,672,798
Units Transferred Between Sub-accounts...................... (803,800) (36,274) 1,707,257 1,325,354
Units Surrendered........................................... (59,252) (56,342) (326,535) (140,670)
---------- --------- ----------- ----------
Units Outstanding End of the Period......................... 0 768,128 8,299,743 4,308,374
========== ========= =========== ==========
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------
AST - FEDERATED AST - FEDERATED
UTILITY INCOME HIGH YIELD
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JAN. 4* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................... 7,177,232 5,390,877 2,106,791 0
Units Purchased............................................. 1,476,370 2,825,121 2,963,225 1,166,363
Units Transferred Between Sub-accounts...................... 593,245 (624,103) 2,042,843 1,065,686
Units Surrendered........................................... (604,661) (414,663) (197,701) (125,258)
---------- --------- ----------- ----------
Units Outstanding End of the Period......................... 8,642,186 7,177,232 6,915,158 2,106,791
========== ========= =========== ==========
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------
AST - FOUNDERS AST - INVESCO
CAPITAL APPRECIATION EQUITY INCOME
----------------------------- -----------------------------
YEAR ENDED JAN. 5* THRU YEAR ENDED JAN. 3* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 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.
34
<PAGE> 38
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
NBAMT AAF - INCOME AAF - SMALL
NBAMT - BALANCED PARTNERS & GROWTH CAPITALIZATION
------------------------------- -------------------- ------------------------------- -------------
YEAR ENDED YEAR ENDED MAY 2* THRU YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- -------------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
3,956,683 3,624,095 0 1,958,603 2,023,006 9,356,764
269,961 890,323 1,178,962 147,593 482,871 2,406,348
(3,986,078) (307,645) 6,797,769 (1,962,060) (441,752) 1,130,736
(240,566) (250,090) (18,233) (144,136) (105,522) (576,484)
---------- ---------- ---------- ---------- --------- ----------
0 3,956,683 7,958,498 0 1,958,603 12,317,364
========== ========== ========== ========== ========= ==========
<CAPTION>
-------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------
AAF - SMALL
CAPITALIZATION AAF - GROWTH
--------------- -------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- -------------------
<S> <C> <C> <C>
7,101,658 5,614,760 2,997,458
2,068,053 2,850,077 1,718,430
464,709 4,034,205 1,095,282
(277,656) (406,751) (196,410)
---------- ----------- -----------
9,356,764 12,092,291 5,614,760
========== =========== ===========
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
AST - SELIGMAN HENDERSON AST - SELIGMAN HEND. AST - LORD ABBETT AST - JANCAP
INTERNATIONAL EQUITY INTL. SMALL CAP GROWTH & INCOME GROWTH
------------------------------- -------------------- ------------------------------- -------------
YEAR ENDED YEAR ENDED MAY 1* THRU YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- -------------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
14,043,215 9,063,464 0 7,479,449 4,058,228 22,354,170
2,649,360 5,095,072 1,196,966 3,979,610 2,933,200 6,507,267
(1,401,250) 485,868 1,431,454 7,602,286 813,176 981,087
(898,188) (601,189) (27,137) (649,586) (325,155) (1,179,787)
---------- ---------- ---------- ---------- --------- ----------
14,393,137 14,043,215 2,601,283 18,411,759 7,479,449 28,662,737
========== ========== ========== ========== ========= ==========
<CAPTION>
-------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------
AST - JANCAP
GROWTH AST - MONEY MARKET
------------- ------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- -------------------
<S> <C> <C> <C>
13,603,637 27,491,389 11,422,783
7,976,529 34,937,859 31,347,755
1,497,592 (25,355,473) (11,832,144)
(723,588) (6,509,333) (3,447,005)
---------- ----------- -----------
22,354,170 30,564,442 27,491,389
========== =========== ===========
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
AST - PHOENIX AST - PHOENIX AST - T. ROWE PRICE
BALANCED ASSET CAPITAL GROWTH ASSET ALLOCATION
-------------------------------- -------------------------------------- -------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JAN. 4* THRU 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> <C>
13,986,604 8,743,758 1,587,862 0 2,320,063 0
2,134,234 5,868,183 406,857 1,148,001 1,756,929 1,738,663
5,317,549 (79,635) (1,883,135) 472,146 961,444 667,736
(1,274,539) (545,702) (111,584) (32,285) (169,480) (86,336)
---------- ---------- ---------- ---------- --------- ----------
20,163,848 13,986,604 0 1,587,862 4,868,956 2,320,063
========== ========== ========== ========== ========= ==========
<CAPTION>
--------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------
AST - T. ROWE PRICE AST - T. ROWE PRICE
INTERNATIONAL EQUITY NATURAL RESOURCES
------------------------------- -------------------
YEAR ENDED JAN. 3* THRU MAY 1* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- -------------------
<S> <C> <C> <C>
11,166,758 0 0
5,451,722 6,643,509 306,567
1,852,683 4,744,934 512,490
(535,912) (221,685) (10,452)
---------- ----------- -----------
17,935,251 11,166,758 808,605
========== =========== ===========
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
AST - PIMCO TOTAL AST - PIMCO LTD. AST - SCUDDER AST - EAGLE
RETURN BOND MATURITY BOND INTERNATIONAL BOND GROWTH EQUITY
------------------------------- -------------------- ------------------------------- -------------
YEAR ENDED JAN. 3* THRU MAY 1* THRU YEAR ENDED MAY 2* THRU YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995
------------- ------------- -------------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
4,577,708 0 0 1,562,364 0 351,319
6,858,117 3,383,108 2,833,131 1,596,914 703,494 134,138
8,025,131 1,354,594 12,333,359 1,162,185 899,756 (457,740)
(399,116) (159,994) (107,846) (134,768) (40,886) (27,717)
---------- ---------- ---------- ---------- --------- ----------
19,061,840 4,577,708 15,058,644 4,186,695 1,562,364 0
========== ========== ========== ========== ========= ==========
<CAPTION>
AST - EAGLE AST - BERGER
GROWTH EQUITY CAPITAL GROWTH
-------------- ------------------------------------
MAY 3* THRU YEAR ENDED OCT. 19* THRU
DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- -------------------
<S> <C> <C> <C>
0 301,267 0
205,932 2,242,838 123,907
148,564 1,168,175 177,648
(3,177) (53,444) (288)
---------- ----------- -----------
351,319 3,658,836 301,267
========== =========== ===========
</TABLE>
- --------------------------------------------------------------------------------
35
<PAGE> 39
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
VARIABLE ACCOUNT B -- CLASS 1
NOTES TO
FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
---------------------------------------------------------------
AVP - ST
MULTI-MKT AVP - PREMIER GROWTH
------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................ 1,839,569 1,963,502 2,802,431 1,042,445
Units Purchased.......................................... 277,962 1,204,060 698,547 1,241,198
Units Transferred Between Sub-accounts................... (1,902,437) (1,171,841) (2,892,802) 602,509
Units Surrendered........................................ (187,874) (156,152) (365,216) (83,721)
---------- --------- ----------- ----------
Units Outstanding End of the Period...................... 27,220 1,839,569 242,960 2,802,431
========== ========= =========== ==========
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
---------------------------------------------------------------
AVP - NORTH AMERICAN
AVP - MONEY MARKET GOV'T INCOME
-------------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED JUL. 6* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- --------------- ------------- --------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................ 34,276 0 11,541 0
Units Purchased.......................................... 348,552 10,126 58,642 14,000
Units Transferred Between Sub-accounts................... (128,439) 30,484 18,738 (1,485)
Units Surrendered........................................ (21,131) (6,334) (24,456) (974)
---------- --------- ----------- ----------
Units Outstanding End of the Period...................... 233,258 34,276 64,465 11,541
========== ========= =========== ==========
<CAPTION>
CLASS 1 SUB-ACCOUNTS INVESTING IN:
---------------------------------------------------------------
AVP AVP - WORLDWIDE
GROWTH PRIVATIZATION SVL - BOND
------------- -------------- -----------------------------
FEB. 11* THRU APRIL 3* THRU YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1995 DEC. 31, 1994
------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Units Outstanding Beginning of the Period................ 0 0 5,363,572 2,805,580
Units Purchased.......................................... 195,420 62,294 736,663 2,224,881
Units Transferred Between Sub-accounts................... 50,339 21,808 (5,742,035) 647,672
Units Surrendered........................................ (1,278) (361) (358,200) (314,561)
---------- --------- ----------- ----------
Units Outstanding End of the Period...................... 244,481 83,741 0 5,363,572
========== ========= =========== ==========
</TABLE>
- --------------------------------------------------------------------------------
* Date Operations Commenced.
36
<PAGE> 40
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
-------------------------------------------------------------------------------------------------------------
AVP - GROWTH AVP - U.S. GOV'T/
& INCOME HIGH GRADE SECURITIES AVP - TOTAL RETURN
------------------------------- ------------------------------- -------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994
------------- ------------- ------------- ------------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
2,652,224 1,632,107 53,792 81,644 20,623 33,503
498,906 1,135,476 198,877 9,403 201,820 5,616
(2,711,896) 1,946 (40,031) (36,866) 14,441 (17,497)
(182,742) (117,305) (16,160) (389) (690) (999)
---------- ---------- ---------- ----------- ---------- -----------
256,492 2,652,224 196,478 53,792 236,194 20,623
========== ========== ========== ========== ========= ==========
<CAPTION>
----------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
----------------------------------
AVP - INTERNATIONAL
------------------------------
YEAR ENDED
DEC. 31, YEAR ENDED
1995 DEC. 31, 1994
------------ -------------
<S> <C> <C>
59,089 19,040
116,244 6,274
(12,854) 35,623
(2,730) (1,848)
---------- -----------
159,749 59,089
========== ===========
<CAPTION>
--------------------------------------------------------------------------------------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
--------------------------------------------------------------------------------------------------------------
AVP - GLOBAL DOLLAR AVP - UTILITY AVP - GLOBAL AVP - CONSERVATIVE
GOV'T INCOME INCOME BOND INVESTORS
------------------------------- ------------------------------- --------------- -------------------
YEAR ENDED JULY 6* THRU YEAR ENDED AUG. 29* THRU APRIL 18* THRU MAY 29* THRU
DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1994 DEC. 31, 1995 DEC. 31, 1995
------------- ------------- ------------- ------------- -------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
42,277 0 1,963 0 0 0
39,607 12,888 64,163 1,371 21,540 71,578
(14,789) 30,339 (892) 593 (3,331) (514)
(2,069) (950) (824) (1) (87) (155)
---------- ---------- ---------- ----------- ---------- -----------
65,026 42,277 64,410 1,963 18,122 70,909
========== ========== ========== ========== ========= ==========
<CAPTION>
- ----------------------------------
CLASS 1 SUB-ACCOUNTS INVESTING IN:
- ----------------------------------
AVP - GROWTH
INVESTORS
------------
MAY 23* THRU
DEC. 31,
1995
------------
<S> <C>
0
70,305
267
(322)
-----------
70,250
==========
</TABLE>
- --------------------------------------------------------------------------------
37
<PAGE> 41
[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> 42
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED
DECEMBER 31, 1995 FINANCIAL STATEMENTS OF THE NEUBERGER & BERMAN ADVISORS
MANAGEMENT TRUST 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
#811-04255. 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> 43
[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> 44
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED DECEMBER
31, 1995 FINANCIAL STATEMENTS OF THE ALLIANCE VARIABLE PRODUCTS SERIES FUND,
INC. FOLLOW AT THIS POINT. THE FINANCIAL STATEMENTS WERE FILED WITH THE
COMMISSION VIA THE EDGAR FORMAT ON FEBRUARY 28, 1996; FORM TYPE N-30B-2; FILE
# 811-5398. 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> 45
[EDGAR REFERENCE - IN THE PRINTED VERSION OF THIS REPORT THE AUDITED DECEMBER
31, 1995 FINANCIAL STATEMENTS OF THE SCUDDER VARIABLE LIFE INVESTMENT 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 # 811-4257. 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> 46
American Skandia Life
Assurance Corporation
Tower One Corporate Drive
Shelton, CT 06484
----------------------
BULK RATE
U. S. POSTAGE
PAID
NEW YORK, NY
PERMIT NO. 8048
----------------------
-----------------------------------------------------------
-----------------------------------------------------------
